NCAB Group

Quarterly Report • Apr 26, 2023

Interim report January–March 2023

JANUARY–MARCH 2023

• Net sales were in line with the previous year, at SEK 1,146.4 million (1,141.3). In USD, net sales decreased 10%. For comparable units, the decrease for net sales was 2% in SEK, and 12% in USD.

• Order intake decreased 12% to SEK 1,029.6 million (1,171.3). The decrease in USD was 21%. Order intake was negatively impacted by shorter lead times back to normal and utilisation of the remaining orderbook from 2022. For comparable units, the decrease for order intake was 14% in SEK, and 23% in USD.

• EBITA increased 26% to SEK 183.7 million (146.3), representing an EBITA margin of 16.0% (12.8).

• Cash flow from operating activities was SEK 201.9 million (24.2).

• Operating profit was SEK 172.6 million (93.8).

• Return on equity was 43.8% (37.6).

• Profit after tax was SEK 125.0 million (66.2).

• Earnings per share before and after dilution was SEK 0.67 (0.35).

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• On 10 January, the acquisition of 100% of the shares in Bare Board Consultants in Italy was closed.

• The Board of Directors proposes a dividend of SEK 1.10 (0.60) per share to be paid in May.

Key performance indicators	Jan-Mar			Full-year
	2023	2022	%	LTM	2022
Order intake, SEK million	1,029.6	1,171.3	-12.1	3,897.4	4,227.2
Order intake, USD million	98.7	125.3	-21.2	444.1	417.5
Net sales, SEK million	1,146.4	1,141.3	0.4	4,462.8	4,457.7
Net sales, USD million	109.9	122.1	-10.0	363.3	440.3
Gross margin, %	33.6	30.2		33.1	32.2
EBITA, SEK million	183.7	146.3	25.6	668.4	630.9
EBITA margin, %	16.0	12.8		15.0	14.2
Operating profit, SEK million	172.6	93.8	84.0	625.2	546.4
Operating margin, %	15.1	8.2		14.0	12.3
Profit after tax, SEK million	125.0	66.2	89.0	476.0	417.1
Earnings per share before dilution, SEK	0.67	0.35	88.9	2.55	2.23
Earnings per share after dilution, SEK	0.67	0.35	88.8	2.54	2.23
Cash flow from operating activities, SEK million	201.9	24.2		745.7	568.1
Return on capital employed, %				31.0	29.0
Return on equity, %				43.8	42.4
USD/SEK - average	10.42	9.33		10.81	10.12
EUR/SEK - average	11.20	10.48		10.38	10.63

Strong result for NCAB in the first quarter

We are pleased that we in the first quarter of 2023 delivered significantly higher earnings than in 2022. Customer demand remained favourable during the quarter. The number of contracts for new articles won and new customers secured during the quarter were at very good levels. Some sectors, such as industrial automation and the defence industry, demonstrated particularly strong growth.

Order intake and sales were adversely impacted by lower prices for PCBs, due to low utilisation levels in the Asian factories. This was primarily the result of weaker business activity in China in 2022 and in the beginning of 2023. However, we saw clear signs of increased activity in China during the first quarter, which is why we believe prices will stabilise.

The effects of our customers' reduced inventory levels during the past two quarters have slowed down, and we noted a positive trend in order intake during the quarter.

In terms of our various regions, it is positive that all segments reported better earnings during the quarter compared to previous year. This is despite the strong first quarter of 2022. A lot has gone our way during this quarter, where cost efficiencies and improvements of gross margin have contributed to a strong result as well as a good product mix and benefits of scale.

Our two European regions, Nordic and Europe, both reported strong development. Companies acquired in recent years, including those in Germany, the UK and Norway, developed very well in terms of both sales and earnings. It is clear that our acquisitions also lead to higher organic growth and economies of scale. In the USA, the beginning of 2023 was in line with the end of 2022, meaning it was slightly weaker year-on-year. Contract manufacturers in the USA are still adjusting inventory levels, which had a negative impact on order intake and sales. We began to see a clear improvement in customer activity and order intake in the East segment, which mainly comprises China, which augurs well for upcoming quarters.

The acquisitions market is still full of opportunities. We have an active pipeline of potential acquisition targets and are taking part in a number of positive discussions.

Following the end of 2022 and beginning of 2023 marked by macroeconomic uncertainties, we are now seeing greater customer confidence and market stability and are entering the second quarter with good momentum. NCAB is making good progress towards our financial targets for 2026, which entail sales of SEK 8 billion and EBITA exceeding SEK 1 billion.

Peter Kruk President and CEO, NCAB Group AB

"

All segments reported higher earnings compared to last year

183.7 EBITA, SEK million

JANUARY–MARCH 2023

ORDER INTAKE

Order intake was still affected by the reduction in lead times to normal levels and customers with long lead times did not need to place new orders to a normal extent. NCAB believes that the order book remains slightly higher than before the pandemic. During the quarter, order intake had a positive monthly trend and most customers have a positive outlook. The Asian PCB factories had lower than normal utilisation levels during the quarter, which created downward price pressure. As China is now opening up again, activity levels are rising and prices are therefore expected to be adjusted upwards in 2023.

Order intake for the quarter amounted to SEK 1,030 million (1,171). Order intake for comparable units decreased 14 per cent. The decrease in USD was 23 per cent. Book to bill was 90 per cent. Order intake for East was positive, while order intake for other segments was lower year-on-year. During the first quarter of 2022, order intake increased when customers choose to place early orders to avoid logistic problems from Asia linked to new COVID-19 outbreaks.

NET SALES

Net sales increased slightly during the quarter to SEK 1,146.4 million (1,141.3). In USD, however, net sales decreased 10 per cent. Compared with the year-earlier period, net sales decreased in the North America segment while other segments were on par with or slightly better year-on-year. Net sales in comparable units decreased 2 per cent and net sales in USD decreased 12 per cent. Many customers have adjusted their inventory levels now that lead times for PCBs and other components have returned to normal levels.

EARNINGS

The year started with strong earnings once again. EBITA increased 26 per cent to SEK 183.7 million (146.3) and EBITA margin increased to 16.0 per cent (12.8). EBITA margin improved in all segments and EBITA rose in all segments except East. Clear economies of scale from growth in recent years helped to increase profitability, though the gross margin also continued to develop positively, partly from acquired companies and also from the effects of lower purchasing prices and freight costs. Operating profit for the quarter increased 94 per cent to SEK 172.6 million (93.8). Development cost for the Group's IT-system has affected the result by about SEK 10 million. Operating profit for the first quarter of 2022 was charged with SEK 43.2 million in impairment losses for the Russian operations, which were sold in 2022.

Net financial items amounted to SEK -9.8 million (-6.1), interest expenses increased to SEK -13.2 million (-5.0) while foreign currency conversion rates generated foreign exchange gains of SEK 4.3 million (-1.7). Tax amounted to SEK -37.8 million (-21.6). The average tax rate was 23.2 per cent (24.6). Profit after tax for the period totalled SEK 125.0 million (66.2). Earnings per share was SEK 0.67 (0.35) both before as well as after dilution.

BREAKDOWN BY SEGMENT, JANUARY–MARCH 2023

PERFORMANCE BY SEGMENT

NORDIC

Denmark, Finland, Norway, Sweden. The margin in this segment is high due to a high technology content and generally lower volumes per order. Sales in the acquired company Elmatica were integrated into each country's operations, meaning net sales from customers outside Nordic are now recognised in the Europe segment.

First quarter 2023

Order intake decreased compared with the year-earlier period and amounted to SEK 238 million (321). Adjusted for the transfer of customers to the Europe segment, order intake in 2022 was SEK 257 million, which meant a decrease of 7 per cent and in USD a decrease of 16 per cent.

Net sales amounted to SEK 261.5 million (307.5). However, adjusted for the transfer of customers to Europe, net sales increased during the

quarter by 5 per cent, though in USD it decreased by 5 per cent. Developments were broadly similar between countries, but with slightly better growth in Denmark.

The segment reported sustained high profitability and earnings improved sharply compared with the year-earlier period, which was charged with high costs following the acquisition of Elmatica. During the quarter, the product mix was favourable in terms of profitability. During the quarter, EBITA rose to SEK 56.2 million (43.1) and the EBITA margin amounted to 21.5 per cent (14.0).

NORDIC	Jan-Mar			Full-year
SEK million	2023	2022	%	LTM	2022
Net sales	261.5	307.5	-15.0	1,170.3	1,216.3
Adjusted Net sales*	261.5	249.3	4.9	988.2	976.0
EBITA	56.2	43.1	30.3	217.8	204.8
EBITA margin, %	21.5	14.0		18.6	16.8

*) Net sales for 2022 has been adjusted for Sales that was moved to segment Europe in 2023

EUROPE

France, Germany, Italy, Netherlands, North Macedonia, Poland, Spain, and the United Kingdom. All companies in the Europe segment have a strategic focus on continued growth. The Europe segment has been strengthened through a number of acquisitions in recent years. META Leiterplatten in Germany and Kestrel International Circuits in the UK were acquired in 2022. In January 2023, the acquisition of Bare Board Consultants (BBC) in Italy was completed. As of 2023, Elmatica's customers from outside Nordic are reported in the Europe segment.

First quarter 2023

Order intake decreased to SEK 560 million (567). Order intake in comparable units and adjusted for the transfer of customers to the Europe segment from Nordic decreased 19 per cent and by 28 per cent in USD. The decrease was mainly seen in the Netherlands and UK, where many customers had placed large orders with long lead times in 2021/2022. In addition, order intake was driven up in the first quarter of 2022, when many customers placed early orders to avoid logistics problem caused by new COVID-19 outbreaks in Asia.

39% EBITA growth

Net sales in the first quarter increased 19 per cent to SEK 674.1 million (567.4). In comparable units and adjusted for customers transferred to the segment, net sales decreased by 1 per cent and in USD by 12 per cent. Distinct economies of scale have been generated in the segment, which enhanced profitability. The integration of BBC in Italy has progressed according to plan and clear synergies could be seen in net sales and gross margin from the acquisition of Kestrel in the UK.

Earnings continued to improve and EBITA amounted to SEK 99.6 million (71.9), corresponding to an EBITA margin of 14.8 per cent (12.7). The gross margin clearly improved in most of the segment's companies, which contributed to increased profitability.

EUROPE	Jan-Mar			Full-year
SEK million	2023	2022	%	LTM	2022
Net sales	674.1	567.4	18.8	2,299.3	2,192.6
Adjusted Net sales*	674.1	625.6	7.7	2,481.4	2,432.9
EBITA	99.6	71.9	38.6	299.5	271.8
EBITA margin, %	14.8	12.7		13.0	12.4

*) Net sales for 2022 has been adjusted for Sales that was moved from segment Nordic in 2023

NORTH AMERICA

NCAB has five offices in the USA that cover the country from east to west.

First quarter 2023

Order intake decreased 14 per cent to SEK 170 million (198). In USD, order intake decreased 23 per cent. North America had relatively high order intake at the beginning of 2022 due to the longer lead times at the time. The slowdown in order intake noted at the end of 2022, partly caused by normalisation of lead times, continued into the beginning

of the quarter but has subsequently turned upward month after month. Book to bill was 107 per cent during the quarter.

Net sales for the segment decreased 14 per cent to SEK 158.7 million (184.1) due to the weaker order intake at the end of 2022. In USD, net sales decreased 23 per cent.

Despite the decrease in net sales, earnings continued to improve and EBITA increased to SEK 26.2 million (19.7) while EBITA margin grew to 16.5 per cent (10.7). Continued synergies from the acquired companies and improved gross margin linked to a favourable product mix contributed to increased profitability.

NORTH AMERICA	Jan-Mar			Full-year
SEK million	2023	2022	%	LTM	2022
Net sales	158.7	184.1	-13.8	753.4	778.8
EBITA	26.2	19.7	32.5	124.4	118.0
EBITA margin, %	16.5	10.7		16.5	15.1

EAST

China and Malaysia. In China, NCAB has sales offices in Shenzhen, Beijing, Suzhou and Wuhan. Operations in Malaysia started in 2019. The East segment had long-standing operations in Russia that were discontinued in 2022.

First quarter 2023

The Chinese market reopened after lengthy pandemic lockdowns. This led to a sharp rise in customer activity and opportunities for new business. Even if this was only partially seen in order intake for the quarter, it was the highest quarterly order intake for more than a year, at SEK 62 million (85). For comparable units, excluding Russia, growth was 8 per cent, but in USD was 2 per cent lower. Book to bill for the segment was 118 per cent.

Net sales for the quarter amounted to SEK 52.1 million (83.3). Adjusted for Russian operations in 2022, net sales were on par with the first quarter of 2022, but 10 per cent lower in USD.

Profitability remained at a high level. EBITA for the quarter amounted to SEK 8.9 million (9.4), corresponding to an EBITA margin of 17.1 per cent (11.5). In China, NCAB is generally selling with a higher technology content compared with other segments, which together with the high level of service and customer focus is reflected in the strong profitability.

EAST	Jan-Mar			Full-year
SEK million	2023	2022	%	LTM	2022
Net sales	52.1	82.3	-36.7	239.8	270.0
EBITA	8.9	9.4	-5.7	46.6	47.1
EBITA margin, %	17.1	11.5		19.4	17.5

FINANCIAL POSITION CASH FLOW AND INVESTMENTS

Working capital has continued to decrease as lead times and logistics have recovered to a normal level, even though a change has taken place from air to more ocean freight. Together with increased earnings, cash flow has improved significantly. Cash flow from operating activities in the quarter was SEK 201.9 million (24.2). Working capital for the Group on 31 March 2023 corresponded to 8.0 per cent (11.0) of net sales over the past 12 months. NCAB has credit insurance for most of the trade receivables outstanding. Cash flow from investing activities was SEK -73.7 million (-92.5) during the quarter. Non-acquisition-related investments for the period amounted to SEK -20.1 million (-10.5) and consisted mainly of investments in new IT platforms.

LIQUIDITY AND FINANCIAL POSITION

Net debt at the end of the quarter was SEK 447.8 million (816.2). The equity/assets ratio was 40.9 per cent (32.0) and equity was SEK 1,299.2 million (873.7). At the end of the period, the Group had available liquidity, including undrawn acquisition credits and overdraft facilities, of SEK 1,147 million (478). The proposed dividend is SEK 1.10 per share, corresponding to SEK 205.7 million.

At 31 March 2023, NCAB had loans including the utilised overdraft facility totalling SEK 834 million. NCAB had a loan of SEK 550 million and two acquisition credits totalling SEK 750 million (of which SEK 284 million was drawn). In addition, there was an overdraft facility of SEK 215 million. The credit of SEK 550 million is free of instalments and expires in 2026. The other credits are free of instalments until the end of June 2024. At the balance sheet date of 31 March 2023, the company was in compliance with all covenants under the financing agreement.

Other

SIGNIFICANT RISKS AND UNCERTAINTIES

Through its operations, the Group is exposed to risks of both a financial and an operational nature, which the Group can influence to a greater or lesser extent. Continuous processes are in place in the Group to identify any risks and assess how they should be managed.

Operational risks include commercial risks arising from changes in economic activity and demand as well as customer preferences and relationships to the company. Other risks are related to the production capabilities, capacity and order books of the company's manufacturers, and to the availability and prices of raw materials. The company is also dependent on the continued trust of its employees and its ability to recruit skilled employees.

Regarding financial risks, the Group is exposed to currency risk, primarily the exchange rates between USD, EUR and SEK, through the translation exposure of sales and purchase ledgers, and reported assets, liabilities and net investments in the operations. The Group is also exposed to other risks, such as interest rate risk, credit risk and liquidity risk.

There are also geopolitical risks, for example as a result of the large share of factories used by NCAB being located in China. See NCAB's 2022 Annual Report for a more detailed description of the Group's risk exposure and risk management.

EFFECTS OF CONFLICT BETWEEN RUSSIA AND UKRAINE

Following Russia's invasion of Ukraine, NCAB chose to halt all deliveries to customers in Russia from 28 February 2022. After considering future opportunities and risks, NCAB decided to discontinue its operations in the country and therefore sold the company on 8 April 2022.

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• On 10 January, the acquisition of 100% of the shares in Bare Board Consultants in Italy was closed.

• The Board of Directors proposes a dividend of SEK 1.10 (0.60) per share to be paid in May.

RELATED-PARTY TRANSACTIONS

No material related-party transactions took place during the period.

_____________________ _____________________

_____________________ _____________________

_____________________ _____________________

ORGANISATION

On 31 March 2023, the number of employees was 587 (603), of whom 267 (268) were women and 320 (335) were men. The average number of employees in the organisation during the quarter was 587 (583), of whom 264 (263) were women and 323 (320) were men.

PARENT COMPANY

The Parent Company's net sales for the first quarter were SEK 42.6 million (24.2). Sales consist exclusively of internal billing. Profit after financial items was SEK 2.7 million (-15.5) for the quarter. The preceding year's earnings were charged with costs for the impairment of assets in subsidiaries of SEK 9.9 million.

DECLARATION OF THE BOARD OF DIRECTORS AND CHIEF EXECUTIVE OFFICER

The Board of Directors and Chief Executive Officer provide their assurance that the interim report gives a true and fair view of the Group's and the Parent Company's operations, position and results and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Sundbyberg, 25 April 2023

Christian Salamon Jan-Olof Dahlén Chairman of the Board Director

Per Hesselmark Magdalena Persson Director Director

Director Director

_____________________ _____________________

Hans Ramel Gunilla Rudebjer

Hans Ståhl Peter Kruk

Director President and CEO

CONTACT

For further information, please contact: Anders Forsén, CFO +46 (0)8 4030 0051 Gunilla Öhman, IR Manager, +46 (0)70 763 81 25

This interim report has not been reviewed by the company's auditor.

This is information that NCAB Group AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on 26 April 2023, at 7:15 a.m.

NCAB Group AB (publ)

Tel: +46 (0)8 4030 0000 Löfströms Allé 5, SE-172 66 Sundbyberg, Sweden www.ncabgroup.com

NCAB Group is publishing the interim report for the first quarter of 2023, January–March, on Wednesday 26 April at 7:15 a.m. A web-cast telephone conference will be held at 8:30 a.m. on the same date, when President and CEO Peter Kruk and CFO Anders Forsén will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English. For those who wish to participate via webcast, please use the link below: https://ir.financialhearings.com/ncabgroup-q1-2023

For those who wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.financialhearings.com/teleconference/?id=200642

FINANCIAL CALENDAR

Annual General Meeting 9 May 2023 Interim report second quarter 21 July 2023 Capital Markets Day 4 September 2023 Interim report third quarter 7 November 2023 Year-end report 15 February 2024

About NCAB Group

NCAB is a worldwide leading supplier of printed circuit boards (PCBs), listed on NASDAQ Stockholm. NCAB offers PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterised by an entrepreneurial and cost-efficient culture and have showed strong growth and good profitability over time. Today, NCAB has a local presence in 15 countries in Europe, Asia and North America. Net sales in 2022 amounted to SEK 4,458 million. Organic growth and acquisitions are part of NCAB's strategy. For more information about NCAB Group, please visit us at www.ncabgroup.com.

Group

CONSOLIDATED INCOME STATEMENT

		Jan-Mar	Jan-Dec
SEK million	2023	2022	LTM	2022
Operating revenue
Net sales	1,146.4	1,141.3	4,462.8	4,457.7
Other operating income	0.8	0.4	21.2	20.9
Total	1,147.1	1,141.7	4,484.0	4,478.6
Raw materials and consumables	-761.4	-797.1	-3,007.6	-3,043.3
Other external expenses	-60.5	-52.4	-226.6	-218.6
Staff costs	-130.2	-134.6	-537.9	-542.3
Dep. and amort of fixed assets	-21.1	-15.7	-82.2	-76.8
Divestment of NCAB Russia	-	-43.2	-	-43.2
Other operating expenses	-1.5	-4.9	-4.6	-8.0
Total operating expenses	-974.5	-1,047.9	-3,858.8	-3,932.2
Operating profit	172.6	93.8	625.2	546.4
Net financial income/expense	-9.8	-6.1	0.1	3.8
Profit before tax	162.8	87.7	625.3	550.2
Income tax	-37.8	-21.6	-149.3	-133.0
Profit for the period	125.0	66.2	476.0	417.1
Profit attributable to:
Shareholders of the Parent Company	124.9	66.1	475.8	417.0
Non-controlling interests	0.1	0.0	0.2	0.2
Average number of shares before dilution	186,935,340	186,918,990	186,932,235	186,928,204
Average number of shares after dilution	187,385,190	187,222,785	187,319,602	187,279,557
Earnings per share before dilution	0.67	0.35	2.55	2.23
Earnings per share after dilution	0.67	0.35	2.54	2.23

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Jan-Mar		Jan-Dec
SEK million	2023	2022	LTM	2022
Profit for the period	125.0	66.2	476.0	417.1
Other comprehensive income, items that can subsequently be reclassified to profit or loss:
Foreign exchange differences	-23.8	32.8	62.5	119.2
	-	-	-8.2	-8.2
Total comprehensive income	101.2	99.0	530.3	528.1
Profit attributable to:
Shareholders of the Parent Company	101.1	99.0	530.0	527.9
Non-controlling interests	0.1	0.0	0.2	0.2

CONSOLIDATED BALANCE SHEET

SEK million

ASSETS	31 Mar 2023	31 Mar 2022	31 Dec 2022
Non-current assets
Goodwill	1,061.0	959.0	1,057.5
Other intangible assets	193.3	155.4	171.7
Leasehold improvement costs	8.3	4.5	7.2
Right-of-use Office and Cars	81.1	43.0	85.5
Plant and equipment	11.5	12.0	11.0
Financial assets	3.9	10.7	5.5
Deferred tax assets	12.5	7.8	12.2
Total non-current assets	1,371.6	1,192.4	1,350.6
Current assets
Inventories	400.1	469.0	504.9
Trade receivables	869.3	880.1	760.7
Other current receivables	36.1	32.0	39.2
Prepaid expenses and accrued income	27.8	32.1	27.8
Cash and cash equivalents	471.7	127.0	357.8
Total current assets	1,804.9	1,540.2	1,690.5
TOTAL ASSETS	3,176.5	2,732.6	3,041.1
EQUITY AND LIABILITIES
Equity attributable to shareholders of the Parent Company
Share capital	1.9	1.9	1.9
Additional paid-in capital	478.1	478.1	478.1
Reserves	100.2	46.0	124.0
Retained earnings	718.6	347.3	591.5
Non-controlling interests	0.4	0.5	0.3
Total equity	1,299.2	873.7	1,195.8
Non-current liabilities
Borrowings	834.2	744.2	833.8
Leased liabilites	53.4	29.9	57.6
Deferred tax	65.6	54.7	62.1
Total non-current liabilities	953.2	828.8	953.4
Current liabilities
Current liabilities	0.2	153.6	0.3
Current right-of-use liabilities	31.7	15.5	31.8
Trade payables	515.9	545.0	518.5
Current tax liabilities	135.8	70.4	108.9
Other current liabilities	120.3	84.0	83.5
Accrued expenses and deferred income	120.2	161.7	148.8
Total current liabilities	924.1	1,030.1	891.8
TOTAL EQUITY AND LIABILITIES	3,176.5	2,732.6	3,041.1

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK million	Share capital	Additional paid-in capital	Reserves	Retained earning	Total	Non-controlling interests	Total equity
1 Jan 2022	1.9	478.1	13.1	280.3	773.4	0.4	773.8
Profit for the period				66.1	66.1	0.0	66.2
Other comprehensive income for the period	-	-	32.8	-	32.8	-	32.8
Total comprehensive income	-	-	32.8	66.1	99.0	0.0	99.0-
Dividend							-
Cost for Warrants	-	-	-	0.9	0.9	-	0.9
Own shares							-
Total transactions with shareholders, recognised directly in equity	-	-	-	0.9	0.9	-	0.9
31 Mar 2022	1.9	478.1	46.0	347.3	873.3	0.5	873.7

Attributable to shareholders of the Parent Company

	Attributable to shareholders of the Parent Company
SEK million	Share capital	Additional paid-in capital	Reserves	Retained earning	Total	Non-controlling interests	Total equity
1 Jan 2023	1.9	478.1	124.0	591.5	1,195.6	0.3	1,195.8
Profit for the period				124.9	124.9	0.1	125.0
Other comprehensive income for the period Total comprehensive	-	-	-23.8	-	-23.8	-	-23.8
income	-	-	-23.8	124.9	101.1	0.1	101.2
Own shares	-	-	-	0.5	0.5	-	0.5
Cost for Warrants	-	-	-	1.7	1.7	-	1.7
Total transactions with shareholders, recognised
directly in equity 31 Mar 2023	- 1.9	- 478.1	- 100.2	2.2 718.6	2.2 1,298.8	- 0.4	2.2 1,299.2

	Jan-Mar			Jan-Dec
SEK million	2023	2022	LTM	2022
Cash flow from operating activities
Profit before net financial income/expense	172.6	93.8	625.2	546.4
Adjustment for non-cash items	27.6	4.7	82.4	59.5
Interest received	0.1	0.2	2.5	2.6
Interest paid	-13.2	-5.0	-35.2	-26.9
Income taxes paid	-13.4	-10.1	-94.5	-91.2
Cash flow from operating activities before changes in working capital	173.7	83.7	580.4	490.3
Change in inventories	104.8	59.8	89.3	44.3
Change in current receivables	-62.4	-73.2	81.0	70.3
Change in current operating liabilities	-14.2	-46.1	-5.0	-36.8
Total changes in working capital	28.1	-59.4	165.4	77.8
Cash flow from operating activities	201.9	24.2	745.7	568.1
Cash flow from investing activities
Investments in property, plant and equipment	-1.3	-5.7	-5.9	-10.4
Investments in intangible assets	-18.9	-2.4	-48.9	-32.4
Investments in subsidiaries	-53.6	-81.9	-150.0	-178.3
Investments in financial assets	-	-2.4	5.1	2.7
Cash flow from investing activities	-73.7	-92.4	-199.7	-218.4
Cash flow from financing activities
Change in overdraft facility	-	-36.6	-152.5	-189.0
Borrowings	-	100.0	90.0	190.0
Repayment of leased liabilities	-8.8	-5.0	-33.4	-29.6
Dividend	-	-	-112.2	-112.2
Cash flow from financing activities	-8.8	58.4	-208.1	-140.8
Decrease/increase in cash and cash equivalents
Cash flow for the period	119.3	-9.8	338.0	208.9
Foreign exchange difference in cash and cash equivalents	-5.4	0.1	6.7	12.2
Cash and cash equivalents at beginning of period	357.8	136.7	127.0	136.7
Cash and cash equivalents at end of period	471.7	127.0	471.7	357.8

Parent Company

PARENT COMPANY INCOME STATEMENT

	Jan-Mar	Jan-Dec
SEK million	2023	2022	2022
Operating revenue
Net sales	42.6	24.2	143.3
Total	42.6	24.2	143.3
Other external expenses	-23.2	-15.7	-89.7
Staff costs	-11.8	-11.6	-56.2
Depreciation of property, plant and equipment,
and amortisation of intangible assets	-0.0	-0.1	-0.5
Write down	-	-9.9	-9.9
Total operating expenses	-35.0	-37.4	-156.3
Operating loss	7.6	-13.2	-13.0
Income from investments in Group companies	-	-2.7	158.3
Net financial income/expense	-4.9	0.4	-3.6
Net financial income/expense	-4.9	-2.4	154.8
Profit before tax	2.7	-15.5	141.8
Appropriations	-	-	8.8
Tax on profit for the period	-0.6	-	-0.2
Profit for the period	2.1	-15.5	150.3

The Parent Company has no items which are accounted for as other comprehensive income. Total comprehensive income is therefore the same as profit for the period.

PARENT COMPANY BALANCE SHEET

SEK million

ASSETS	31 Mar 2023	31 Mar 2022	31 Dec 2022
Non-current assets
Capitalised development costs	47.3	0.6	28.6
Plant and equipment	0.1	0.1	0.1
Non-current financial assets	909.9	898.2	909.8
Non-current financial assets from Group companies	307.4		267.4
Total non-current assets	1,264.7	898.8	1,205.9
Current assets
Receivables from Group companies	100.2	501.8	164.1
Other current receivables	6.1	1.7	3.2
Prepaid expenses and accrued income	5.1	3.9	4.0
Cash and cash equivalents	94.1	0.1	42.9
Total current assets	205.6	507.6	214.1
TOTAL ASSETS	1,470.3	1,406.4	1,420.0
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital (186,971,240 shares)	1.9	1.9	1.9
Non-restricted equity
Share premium account	478.1	478.1	478.1
Retained earnings	-203.1	-241.3	-353.5
Profit/ loss for the period	2.1	-15.5	150.3
Total equity	279.0	223.2	276.9
Untaxed reserves	1.0	3.8	1.0
Non-current liabilities
Liabilities to credit institutions	834.2	744.2	833.8
Total non-current liabilities	834.2	744.2	833.8
Current liabilities
Liabilities to credit institutions	-	152.9	-
Trade payables	15.3	5.3	14.1
Liabilities to Group companies Current tax liabilities	324.2 0.9	256.1 -	273.3 0.4
Other current liabilities	7.6	8.6	2.0
Accrued expenses and deferred income	8.1	12.3	18.5
Total current liabilities	356.2	435.2	308.3
TOTAL EQUITY AND LIABILITIES	1,470.3	1,406.4	1,420.0

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

	Restricted equity	Non-restricted equity
SEK million	Share capital	Share premium account	Retained earnings	Total
1 January 2022	1.9	478.1	-241.3	238.7
Loss for the year Other comprehensive income for the	-	-	-15.5	-15.5
year	-	-	-	-
Total comprehensive income	-	-	-15.5	-15.5
Dividend, shares			-	-
Total transactions with shareholders, recognised directly in equity	-	-	-	-
31 Mar 2022	1.9	478.1	-256.8	223.2

	Restricted equity	Non-restricted equity
SEK million	Share capital	Share premium account	Retained earnings	Total
1 January 2023	1.9	478.1	-203.1	276.9
Loss for the year	-	-	2.1	2.1
Total comprehensive income	-	-	2.1	2.1
Dividend, shares			-	-
Total transactions with shareholders, recognised directly in equity	-	-	-	-
31 Mar 2023	1.9	478.1	-201.0	279.0

Notes

Note 1 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial statements of the Parent Company have been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board.

The applied accounting policies are consistent with the policies described in the annual report for the financial year ended 31 December 2022 and should be read in conjunction with these. With the exception of the accounting policies described below, the applied accounting policies are consistent with those described in the NCAB Group's annual report for 2022, which is available on NCAB Group's website.

None of the new IFRS standards, amended standards and interpretations that are applicable as of 1 January 2023 have had any material impact on the financial statements of the Group or the Parent Company. No new or amended standards have been applied prospectively.

Segments are accounted for in a way that is consistent with the internal reports submitted to the chief operating decision maker. The chief operating decision maker is the function that is responsible for allocating resources and assessing the results of segments. In the Group, this function has been identified as the Chief Executive Officer, who makes strategic decisions. The Group's operations are evaluated based on geography. The following four segments have been identified: Nordic, Europe, North America and East.

The interim financial information on pages 1–26 is an integral part of this financial report.

Significant estimates and judgements

For information on significant estimates and judgements made by management in preparing the consolidated financial statements, see Note 4 of the 2022 Annual Report.

Note 2 Information on financial assets and liabilities

For more information on financial assets and liabilities, see the 2022 Annual Report, Note 2. The Group's financial assets and liabilities are measured at amortised cost. There are temporary financial liabilities that are measured at fair value. For acquisitions, the purchase consideration may be determined based on future outcomes in the acquired company. The part of the consideration that is dependent on the future outcome of the acquired company is recognised at fair value. The carrying amounts of the Group's financial assets and liabilities are deemed to approximate their fair values. All financial assets are recognised in the category "Financial assets measured at amortised cost". Most of the company's financial liabilities are recognised in the category "Other financial liabilities", and any additional purchase considerations are recognised at fair value.

Note 3 Pledged assets and contingent liabilities

As of December 2022, the Group no longer has any material pledged assets or contingent liabilities.

Note 4 Segments

Description of segments and principal activities

In NCAB Group, the CEO is the Group's chief operating decision maker. The segments are based on the information that is handled by the CEO and used as a basis for decisions on the allocation of resources and evaluation of results. NCAB Group has identified four segments, which also constitute reportable segments in the Group's operations:

Nordic

NCAB Group AB (publ) | Interim Report January–March 2023 19 Provides a broad range of PCBs from NCAB Group's companies in Sweden, Norway, Denmark and Finland. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

Europe

Provides a broad range of PCBs from NCAB Group's companies in the UK, Poland, France, Italy, Germany, Spain, the Netherlands and North Macedonia. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

North America

Provides a broad range of PCBs from NCAB Group's companies in the USA. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

East

Provides a broad range of PCBs from NCAB Group's companies in China and Malaysia. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

Revenue

Revenue is generated from a large number of customers across all segments. There are no sales of goods between segments. However, minor amounts may be invoiced between the segments for freight and services, which are provided on market terms.

Quarter		Nordic		Europe		North America		East	Central functions		Group
SEK million	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Net sales	261	308	674	567	159	184	52	82	-	-	1,146	1,141
EBITA	56	43	100	72	26	20	9	9	-7	2	184	146
EBITA margin, %	21.5	14.0	14.8	12.7	16.5	10.7	17.1	11.5			16.0	12.8
Amortis. intangible assets											-11	-9
Operating profit											173	94
Operating margin, %											15.1	8.2
Net financial expense											-10	-6
Profit before tax											163	88
Net working capital	124	132	305	365	10	52	42	73	-39	-71	441	552

Sales and earnings of segments, January–March 2023

						North			Central
LTM		Nordic	Europe			America		East functions		Group
SEK million	2023 LTM	2022	2023 LTM	2022	2023 LTM	2022	2023 LTM	2022	2023 LTM	2022	2023 LTM	2022
Net sales	1,170	1,216	2,299	2,193	753	779	240	270	-	-	4,463	4,458
EBITA	218	205	300	272	124	118	47	47	-20	-11	668	631
EBITA margin, %	18.6	16.8	13.0	12.4	16.5	15.1	19.4	17.5			15.0	14.2
Amortis. intangible assets											-43	-41
Write down Russia											-	-43
Operating profit											625	546
Operating margin, %											14.0	12.3
Net financial expense											0	4
Profit before tax											625	550
Net working capital	124	118	305	324	10	14	42	62	-39	-45	441	473
Fixed assets	23	23	38	40	10	11	12	10	18	20	101	104
Intangible assets	419	445	471	434	309	313	8	8	47	29	1,254	1,229

Sales and earnings of segments, LTM

Note 5

Quarterly summary

	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22	Q4 21	Q3 21	Q2 21
Order intake, SEK million	1,030	1,009	1,011	1,036	1,171	1,067	935	1,058
Order intake, USD million	98.7	93.2	94.1	104.9	125.3	120.6	107.3	126.2
Net sales, SEK million	1,146	1,026	1,168	1,122	1,141	977	864	762
SEK annual growth, %	0.4	5.1	35.3	47.2	84.9	89.7	60.9	31.3
Net sales, USD million	109.9	94.4	109.8	114.0	122.1	111.3	99.8	90.9
USD annual growth, %	-10.0	-15.2	10.0	25.4	66.2	87.1	65.5	51.5
Gross margin, %	33.6	34.1	32.2	31.3	30.2	30.6	30.8	30.1
EBITA, SEK million	183.7	141.0	183.5	160.2	146.3	121.0	123.2	103.8
EBITA margin, %	16.0	13.7	15.7	14.3	12.8	12.4	14.3	13.6
Operating profit/loss, SEK million	172.6	129.3	172.3	150.9	93.8	113.7	118.6	99.7
Total assets, SEK million	3,176	3,041	3,195	3,034	2,733	2,661	1,982	1,765
Cash flow from operating activities, SEK million	201.9	189.4	212.2	148.2	24.2	19.8	0.2	30.3
Equity/assets ratio, %	40.9	39.3	35.5	32.4	32.0	29.1	43.1	42.3
Number of employees	587	587	578	574	603	562	512	500
Average exchange rate, SEK/USD	10.42	10.73	10.55	9.83	9.33	8.86	8.65	8.41
Average exchange rate, SEK/EUR	11.20	10.94	10.63	10.47	10.48	10.13	10.19	10.14

Note 6 Acquisitions

Bare Board Consultants

On 24 November 2022, an agreement was signed to acquire 100 per cent of the shares in Bare Board Consultants in Italy. The transaction was completed on 10 January 2023. Operating profit together with assets and liabilities associated with the acquired company were consolidated from the transaction date. The company reported net sales of just over SEK 90 million and EBITA of slightly more than SEK 9 million in 2022. The purchase consideration for the shares amounted to SEK 71.7 million and goodwill of SEK 18.9 million arose. As a result of the acquisition, three new employees joined us in Italy.

Acquisitions	BBC 10 January 2023
Total purchase consideration	71.7
Acquired assets and assumed liabilities
Non-current assets	0.3
Customer relationships	17.1
Other current assets	42.9
Cash and cash equivalents	15.5
Other operating liabilities	-17.3
Deferred tax	-5.7
Total net assets	52.8
Goodwill	18.9

Amounts reported in the table above are preliminary values.

Note 7 Alternative performance measures

Some of the information contained in this report that is used by management and analysts to assess the Group's performance has not been prepared in accordance with IFRS. Management believes that this information helps investors to analyse the Group's financial performance and financial position. Investors should regard this information as complementary rather than as replacing financial reporting in accordance with IFRS.

Gross profit

	Jan-Mar		Jan-Dec
SEK million	2023	2022	LTM	2022
Net sales	1,146.4	1,141.3	4,462.8	4,457.7
Other operating income	0.8	0.4	12.1	11.8
Cost of goods sold	-761.4	-797.1	-3,007.6	-3,043.3
Translation differences	-	-	9.1	9.1
Total gross profit	385.7	344.6	1,476.4	1,435.3
Gross margin, %	33.6	30.2	33.1	32.2

EBITA

	Jan-Mar		Jan-Dec
SEK million	2023	2022	LTM	2022
Operating profit	172.6	93.8	625.2	546.4
Amortisation and impairment of intangible assets	11.1	9.2	43.2	41.3
Divestment Russia	-	43.2	-	43.2
EBITA	183.7	146.3	668.4	630.9
EBITA margin, %	16.0	12.8	15.0	14.2

EBITDA

	Jan-Mar			Jan-Dec
SEK million	2023	2022	LTM	2022
Operating profit Depreciation, amortisation and impairment of property, plant and equipment, and	172.6	93.8	625.2	546.4
intangible assets	21.1	15.7	82.2	76.8
Divestment Russia	-	43.2	-	43.2
EBITDA	193.7	152.7	707.3	666.4
EBITDA margin, %	16.9	13.4	15.8	14.9

Return on equity

SEK million	Mar 2023	Mar 2022	Dec 2022
Profit for the period — LTM	476.0	310.7	417.1
Equity (average)	1,086.4	825.5	984.8
Return on equity, %	43.8	37.6	42.4

Net working capital and capital employed

SEK million	31 Mar 2023	31 Mar 2022	31 Dec 2022
Inventories	400.1	469.0	504.9
Trade receivables	869.3	880.1	760.7
Other current receivables	36.1	32.0	39.2
Prepaid expenses and accrued income	27.8	32.1	27.8
Trade payables	-515.9	-545.0	-518.5
Current tax liabilities	-135.8	-70.4	-108.9
Other current liabilities	-120.3	-84.0	-83.5
Accrued expenses and deferred income	-120.2	-161.7	-148.8
Net working capital	441.0	552.2	472.9
Non-current assets	1,371.6	1,192.4	1,350.6
Cash and cash equivalents	471.7	127.0	357.8
Deferred tax	-65.6	-54.7	-62.1
Capital employed	2,218.7	1,816.9	2,119.3

Return on capital employed

SEK million	Mar 2023	Mar 2022	Dec 2022
Operating profit/loss — LTM	625.2	425.6	546.4
Capital employed (average)	2,017.8	1,475.2	1,882.2
Return on capital employed, %	31.0	28.9	29.0

Equity/assets ratio

SEK million	31 Mar 2023	31 Mar 2022	31 Dec 2022
Equity	1,299.2	873.7	1,195.8
Total	1,299.2	873.7	1,195.8
Total assets	3,176.5	2,732.6	3,041.1
Equity/assets ratio, %	40.9	32.0	39.3

Net debt

SEK million	31 Mar 2023	31 Mar 2022	31 Dec 2022
Interest-bearing liabilities	919.5	943.1	923.5
Cash and cash equivalents	-471.7	-127.0	-357.8
Total net debt	447.8	816.2	565.6
EBITDA LTM	707.3	475.1	666.4
Net debt / EBITDA	0.6	1.7	0.8

Net debt excl. IFRS 16 adjustment

SEK million	31 Mar 2023	31 Mar 2022	31 Dec 2022
Interest-bearing liabilities excl IFRS 16	834.4	897.8	834.1
Cash and cash equivalents	-471.7	-127.0	-357.8
Total net debt excl IFRS16	362.6	770.8	476.2
EBITDA LTM excl IFRS 16	674.7	456.6	636.8
Net debt excl IFRS 16/ EBITDA excl IFRS 16	0.5	1.7	0.7

Alternative performance measure	Definition	Purpose
Gross profit	Net sales less raw materials and consumables and with the addition of other operating income, which includes translation differences on trade receivables and trade payables	Gross profit provides an indication of the surplus that is needed to cover fixed and semi fixed costs in the NCAB Group
Gross margin	Gross profit divided by net sales	The gross margin provides an indication of the surplus as a percentage of net sales that is needed to cover fixed and semi-fixed costs in the NCAB Group
EBITDA	Operating profit before depreciation, amortisation and impairment of property, plant and equipment, and intangible assets.	EBITDA along with EBITA provide an overall picture of operating earnings
Adjusted EBITDA	Operating profit before depreciation, amortisation and impairment of property, plant and equipment, and intangible assets adjusted for non-recurring items	Adjusted EBITDA is adjusted for extraordinary items. NCAB Group therefore considers that it is a useful performance measure for showing the company's operating earnings

EBITA	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets	EBITA provides an overall picture of operating earnings
Adjusted EBITA	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets adjusted for non recurring items	Adjusted EBITA is adjusted for non-recurring items. NCAB Group therefore considers that it is a useful performance measure for showing the company's operating earnings
Adjusted EBITA margin	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets adjusted for non recurring items, divided by net sales	Adjusted EBITA margin is adjusted for non recurring items. NCAB Group therefore considers that it is a useful performance measure for comparing the company's margin with other companies regardless of whether the business is driven by acquisitions or organic growth
Return on equity	Profit/loss for the past 12 months divided by average equity	Return on equity is used to analyse the company's profitability, based on how much equity is used
Net working capital	Current assets excluding cash and cash equivalents less non-interest-bearing current liabilities	This measure shows how much working capital is tied up in the business
Capital employed	Equity and interest-bearing liabilities	Capital from external parties
Return on capital employed	Profit/loss for the past 12 months divided by average capital employed	Return on capital employed is used to analyse the company's profitability, based on how much equity is used
Equity/assets ratio	Equity and untaxed reserves net of deferred tax, divided by total assets	NCAB Group considers that this is a useful measure for showing what portion of total assets is financed by equity. It is used by management to monitor the Group's long-term financial position
Net debt	Interest-bearing liabilities less cash and cash equivalents	Net debt is a measure which shows the company's total indebtedness
Net debt excl. IFRS 16 adjustment	Interest-bearing liabilities excluding liabilities for right-of-use assets less cash and cash equivalents	Net debt is a measure which shows the company's total indebtedness and has been adjusted for IFRS 16. Used in covenant calculations to the bank.
EBITDA excl. IFRS	EBITDA adjusted for lease expenses pertaining to assets classified as right-of-use assets	EBITDA along with EBITA provide an overall picture of operating earnings Used in covenant calculations to the bank.
Book to bill	Order intake for the period divided by net sales for the period	This provides a picture of how the order backlog changes over the period regardless of the effects of acquisitions or currency

ABOUT NCAB

A leading supplier of PCBs

NCAB is one of the world's leading suppliers of printed circuit boards (PCBs) with some 3,350 customers worldwide. It is important to achieve scale benefits, which is why NCAB has a strong focus on growth. NCAB is the leader in terms of expertise, service, sustainability and technology. Being the leading player also gives the strength to attract customers through important projects, skilled employees and the best factories.

NCAB works in deep relationships with its customers, where NCAB takes responsibility for the entire delivery so customers can focus on their manufacturing operations. NCAB does not own any factories, but because of its Factory Management team NCAB does "own" the most important element – the relationship with the factories and the entire manufacturing process, which

provides access to state-of-the-art technology and limitless capacity without the need for investments.

BUSINESS CONCEPT

PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost.

VISION

The Number 1 PCB producer – wherever we are.

FINANCIAL TARGETS

On 27 April 2022, NCAB set new financial objectives in the medium term.

• Net sales of SEK 8 billion in 2026, achieved by approximately equal part organic and acquired growth.

• EBITA of SEK 1 billion in 2026.

• Net debt less than 2x EBITDA (unchanged from before).

• Dividend based on available cash flow amounting to approximately 50 per cent of net profit (unchanged from before).