Annual Report • Feb 17, 2023
Annual Report
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Net sales increased by 5% to SEK 1,026.1 million (976.6). In USD, net sales decreased 15%. For comparable units, net sales increased 2%, but in USD the decrease was 16%.
Order intake decreased 5% to SEK 1,009.2 million (1,067.1). The decrease in USD was 23%. Order intake was abnormally high in 2021 due to the increasing lead times. For comparable units, the decrease for order intake was 7% in SEK, and 24% in USD.
EBITA increased 17% to SEK 141.0 million (121.0), representing an EBITA margin of 13.7% (12.4). EBITA includes a positive one-off item of SEK 9.6 million following the final calculation of an additional purchase consideration. Excluding this one-off item, EBITA margin was 12.8% (12.7).
Cash flow from operating activities was SEK 189.4 million (19.8).
Operating profit was SEK 129.3 million (113.7).
Profit after tax was SEK 71.3 million (75.7).
Earnings per share before and after dilution was SEK 0.38 (0.40).
Net sales increased 38% to SEK 4,457.7 million (3,219.5). In USD, net sales increased 17%. For comparable units, net sales increased 26%, and in USD 6%.
Order intake increased 5% to SEK 4,227.2 million (4,039.0). In USD, order intake decreased 11%. For comparable units, the decrease of order intake was 6% in SEK, and 20% in USD. The decrease was mainly due to long lead times in 2021, which have since returned to normal levels.
EBITA increased to SEK 630.9 million (406.1), representing an EBITA margin of 14.2% (12.6). During the year, EBITA was positively impacted, net, by SEK 1.6 million in acquisition costs and final additional purchase considerations. Excluding these items, EBITA amounted to SEK 629.3 million, representing an EBITA margin of 14.1% (12.5, excl transaction cost and PPP loan for 2021).
On 8 April, NCAB divested its operations in Russia, which entailed impairment losses of SEK 43.2 million that did not impact EBITA.
Cash flow from operating activities was SEK 568.1 million (48.3).
Operating profit was SEK 546.4 million (387.2).
Profit after tax was SEK 417.1 million (285.3).
Earnings per share was SEK 2.23 (1.52).
Benjamin Klingenberg, MD of NCAB Germany was appointed VP of NCAB Europe and consequently is a new member of Group management as of 1 November. Howard Goff, former VP NCAB Europe was appointed VP Sales.
On 24 November, an agreement was signed to acquire 100% of the shares in Bare Board Consultants in Italy. The transaction was closed on 10 January.
The Board of Directors proposes a dividend of SEK 1.10 (0.60) per share to be paid in May.
| Key performance indicators | Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | % | 2022 | 2021 | % | |
| Order intake, SEK million | 1,009.2 | 1,067.1 | -5.4 | 4,227.2 | 4,039.0 | 4.7 |
| Order intake, USD million | 93.2 | 120.6 | -22.7 | 417.5 | 470.7 | -11.3 |
| Net sales, SEK million | 1,026.1 | 976.6 | 5.1 | 4,457.7 | 3,219.5 | 38.5 |
| Net sales, USD million | 94.4 | 111.3 | -15.2 | 440.3 | 375.5 | 17.3 |
| Gross margin, % | 34.1 | 30.6 | 32.2 | 30.7 | ||
| EBITA, SEK million | 141.0 | 121.0 | 16.5 | 630.9 | 406.1 | 55.4 |
| EBITA margin, % | 13.7 | 12.4 | 14.2 | 12.6 | ||
| Operating profit, SEK million | 129.3 | 113.7 | 13.7 | 546.4 | 387.2 | 41.1 |
| Operating margin, % | 12.6 | 11.6 | 12.3 | 12.0 | ||
| Profit after tax, SEK million | 71.3 | 75.7 | -5.8 | 417.1 | 285.3 | 46.2 |
| Earnings per share* before dilution, SEK | 0.38 | 0.40 | -5.7 | 2.23 | 1.52 | 46.4 |
| Earnings per share* after dilution, SEK | 0.38 | 0.40 | -5.7 | 2.23 | 1.52 | 46.2 |
| Cash flow from operating activities, SEK million | 189.4 | 19.8 | 568.1 | 48.3 | 1,076.6 | |
| Return on capital employed, % | 29.0 | 28.6 | ||||
| Return on equity, % | 42.4 | 38.7 | ||||
| USD/SEK - average | 10.73 | 8.86 | 10.12 | 8.58 | ||
| EUR/SEK - average | 10.94 | 10.13 | 10.63 | 10.14 |
Despite a turbulent macro environment and a global economic slowdown, we are proud to report a stable quarter. Net sales continued to rise, as did margins, and in addition we also had a strong cash flow. This gives us an excellent starting position for 2023.
After seven to eight quarters of very strong growth in the global PCB market, we saw some signs of a restraint during the quarter. Shortening lead times and increased focus on tied up capital among our customers and, in turn, their customers, have had a temporary negative impact on order intake. Supply chain problems in recent years have led to accumulation of inventory at several levels that are now being reduced.
The basic sentiment of our customer base remains positive with stable underlying demand. The majority of our customers are active in industrial applications, and we have very little exposure to consumer products and other more cyclical market segments.
We noted a continuing positive trend for net sales in our Nordic and Europe segments while North America and East were weaker. In the USA, the central bank began cooling down the American economy early in 2022 and this began to be reflected in customer demand in the fourth quarter. In East, demand remained weak, affected by COVID restrictions.
It is gratifying to see that the EBITA margin increased in all segments, which was made possible through close collaboration with our customers, and a high level of service and technology in deliveries as well as economies of scale resulting from our expansion. Our employees also were successful in reducing our working capital ensuring strong cash flow.
The weak economic development in China in 2022, led to lower utilisation levels in Chinese PCB factories, which together with a strong USD against the CNY resulted in lower prices in new projects. As China once again is opening up, we expect the Chinese economy to restart and utilisation levels to rise in factories.
We remain confident about the future. We have a strong financial position, an excellent result and good cash flow. Most of our customers are positive about their order situation and future growth opportunities. We have a good mix of countries, regions and industries and generally speaking, low market shares. We also have an active pipeline of acquisitions and were pleased to welcome Bare Board Consultants in Italy during the quarter.
Finally, I would like to extend my deep gratitude to our dedicated employees around the world who work tirelessly to deliver high value and good service to our customers.
Peter Kruk President and CEO, NCAB Group AB "
Proud of a stable quarter.
Q4 2022
5% Sales growth 1,026.1 Net sales, SEK million
"
141.0 EBITA, SEK million
13.7% EBITA margin
A slightly weaker market was discernible in the quarter. Lead times for both the production of PCBs and shipping have returned to normal levels, which exerted further pressure on order intake when order placement by our customers was adapted to the shorter delivery times. Following the strong price hike in 2020/2021, a slight downward price adjustment was also noted, primarily due to the lower utilisation rate in the Asian factories. As China opens up, local demand is expected to rise and increase utilisation levels in the factories.
Order intake for the quarter amounted to SEK 1,009 million (1,067). Order intake for comparable units decreased 7 per cent. The decrease in USD was 24 per cent. Book to bill was 98 per cent. Development in Nordic and Europe was stable, while NCAB noted a weaker trend in North America compared with the year-earlier period. East continued to be negatively affected by the repeated lockdowns for customers in China.
Net sales increased in the quarter by 5 per cent to SEK 1,026.1 million (976.6). In USD, net sales decreased 15 per cent. Net sales in comparable units increased 2 per cent while net sales in USD decreased 16 per cent. The East segment reported lower net sales year-on-year while all other segments displayed growth compared with the fourth quarter of 2021. In the East segment, Russia has been excluded since April. Customers in China were still affected by the lockdowns.
The fourth quarter again produced strong figures. EBITA increased to SEK 141.0 million (121.0) and EBITA margin grew to 13.7 per cent (12.4). EBITA margin improved in all segments and EBITA rose in all segments except East. Growth has led to efficiency enhancements and economies of scale. The gross margin continued to develop positively, which also contributed to improved profitability. The final additional purchase consideration for the acquisition of Elmatica, which took place in 2021, was lower than expected, which had a positive impact on earnings of SEK 9.6 million. Operating profit for the quarter increased 14 per cent to SEK 129.3 million (113.7).
Net financial items amounted to SEK -22.2 million (-17.3), interest expenses increased to SEK -10.5 million (-5.7) while the weakening USD entailed foreign exchange losses of SEK -13.2 million (-11.6). Tax amounted to SEK -35.8 million (-20.7). The average tax rate was 33.4 per cent (21.5). The increased tax rate was partly the result of periodic tax adjustments from previous quarters but also because a higher share of earnings came from countries with higher tax rates. Profit after tax for the period totalled SEK 71.3 million (75.7). Earnings per share were SEK 0.38 (0.40), before as well as after dilution.
Order intake rose 5 per cent during the year to SEK 4,227.2 (4,039.0) but decreased 11 per cent in USD. Order intake for comparable units decreased 20 per cent in USD. The decrease is primarily attributable to an abnormally high order intake in 2021 linked to lengthening lead times from both disturbances in the production chain and in logistics. Order intake in 2021 was, for these reasons, estimated to have been approximately SEK 500 million higher than normal. As lead times have decreased, the urgency among customers to place orders has fallen, which resulted in lower order intake than normal in 2022. Lead times have now returned to more normal levels.
Net sales increased in the year by 38 per cent to SEK 4,457.7 million (3,219.5), with growth in USD at about 17 per cent. Net sales in comparable units increased 26 per cent and 6 per cent in USD. Nordic, Europe and North America demonstrated strong growth, both including and excluding acquisitions. The East segment noted a reduction in net sales resulting from the divestment of the Russian operations and because many customers were impacted by lockdowns.
EBITA was SEK 630.9 million (406.1) and EBITA margin rose to 14.2 per cent (12.6). EBITA improved in all segments with the exception of East. Increased economies of scale, earnings improvements in the acquired companies as well as the positive impact of the strong USD against the SEK and EUR contributed to the improvement in earnings. EBITA was positively impacted by acquisition-related costs of SEK 1.6 million for acquisitions during the year and the final payment for Prevent and Elmatica. Operating profit increased to SEK 546.4 million (387.2). The divestment of Russian operations in April burdened operating profit in an amount of SEK 43.2 million. Adjusted for this, operating profit was SEK 589.6 million (387.2), corresponding to an operating margin of 13.2 per cent (12.0)
Net financial items amounted to SEK 3.8 million (-23.1). The improvement was mainly due to foreign exchange gains. Interest expenses increased to SEK -26.9 million (-10.7), while foreign exchange gains amounted to SEK 31.9 million (-8.5). Tax amounted to SEK -133.0 million (-78.9). The average tax rate rose to 24.2 per cent (21.7). Profit after tax for the period totalled SEK 417.1 million (285.3). Earnings per share was SEK 2.23 (1.52) both before and after dilution.
0% 2% 4% 6% 8% 10% 12% 14% 16%
Denmark, Finland, Norway, Sweden and all sales from Elmatica, which was acquired in October 2021. Approximately 60 per cent of Elmatica's net sales are from customers outside Nordic. As of 2023, net sales from outside Nordic will be reported in the Europe segment. The margin in this segment is high due to a high technology content and generally lower volumes per order.
Order intake was in line with the year-earlier period at SEK 256 million (257). In USD, however, order intake for the segment decreased 20 per cent. Order intake in comparable units increased 4 per cent, while in USD it decreased 23 per cent. Book to bill was 86 per cent, affected by shorter lead times and a slightly more cautious market.
Net sales in the quarter increased 10 per cent to SEK 295.6 million (269.4). However, in USD the decrease was 10 per cent. For comparable units, growth was 4 per cent, but in USD a decrease of 16 per cent was reported. Developments were broadly similar in all countries.
The segment reported sustained high profitability. During the quarter, EBITA rose to SEK 45.2 million (41.0) and the EBITA margin amounted to 15.3 per cent (15.2).
Order intake increased 41 per cent to SEK 1,166 million during the year, driven by acquisitions. For comparable companies, order intake was in line with 2021, but in USD was 16 per cent lower. The decrease was due to the abnormally high order intake in 2021 and adjustment to more normal lead times in 2022. Net sales for the year amounted to SEK 1,216 million. For comparable companies, net sales rose 25 per cent and in USD 5 per cent.
The general improvement in EBITA margin, and increased net sales yielded significantly higher earnings than in 2021. The integration of Elmatica required certain organisational changes that initially involved non-recurring costs. For the year, EBITA amounted to SEK 204.8 million (114.2), corresponding to an EBITA margin of 16.8 per cent (16.1).
| NORDIC | Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | % | 2022 | 2021 | % | |
| Net sales | 295.6 | 269.4 | 9.7 | 1,216.3 | 710.5 | 71.2 | |
| EBITA | 45.2 | 41.0 | 10.4 | 204.8 | 114.2 | 79.3 | |
| EBITA margin, % | 15.3 | 15.2 | 16.8 | 16.1 |
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 acquisition of PreventPCB in Italy in February 2021, two German acquisitions, sas – electronics in June 2021 and META Leiterplatten in January 2022, strengthened the Europe segment. Kestrel International Circuits in the UK was acquired in June 2022 and Bare Board Consultants in Italy in January 2023.
Order intake increased to SEK 536 million (510). In USD, however, order intake decreased 13 per cent. Order intake for comparable units decreased 5 per cent and by 23 per cent in USD, though this was compared with a strong order intake in the fourth quarter of 2021, which was driven by increasing lead times. The decrease was mainly noted in the UK, the Netherlands and Italy. Book to bill for the segment was 111 per cent.
36% EBITA growth
Net sales for the fourth quarter increased 19 per cent to SEK 483.8 million (406.5). In USD, the increase was 6 per cent but net sales for comparable units decreased 15 per cent. Germany and the UK accounted for most of this growth, partly linked to acquisitions. Distinct economies of scale have been generated in the segment, which enhanced profitability. The integration of Kestrel in the UK, that was acquired at the end of June, has gone well with synergies both in revenues and costs.
Earnings improved because of increased net sales and margin improvements. EBITA amounted to SEK 53.2 million (39.2), corresponding to an EBITA margin of 11.0 per cent (9.6). The gross margin clearly improved in most of the segment's companies.
Order intake for the year increased marginally compared with the year-earlier period and amounted to SEK 2,082 million (2,050). In USD, however, order intake decreased 14 per cent and for comparable units the decrease in order intake was 23 per cent in USD. Net sales for the year increased 49 per cent to SEK 2,192.6 million (1,476.0). For comparable companies, growth was 33 per cent and in USD 12 per cent.
Synergies from completed acquisitions and economies of scale from organic growth have together increased earnings and raised the EBITA margin. For the year, EBITA increased to SEK 271.8 million (156.2), corresponding to an EBITA margin of 12.4 per cent (10.6).
| EUROPE | Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | % | 2022 | 2021 | % |
| Net sales | 483.8 | 406.5 | 19.0 | 2,192.6 | 1,476.0 | 48.6 |
| EBITA | 53.2 | 39.2 | 35.9 | 271.8 | 156.2 | 74.0 |
| EBITA margin, % | 11.0 | 9.6 | 12.4 | 10.6 |
NCAB has five offices in the USA that cover the country from east to west. In September 2021, RedBoard Circuits in Arizona was acquired.
Order intake decreased 13 per cent to SEK 166 million (191). In USD, order intake decreased 30 per cent. In North America, order intake was also high in 2021 due to
changed lead times, but during the quarter a slight slowdown in demand was also seen from a number of customers. Book to bill was 87 per cent during the quarter.
Net sales for the segment increased 2 per cent to SEK 191.5 million (187.2). In USD the decrease was 17 per cent.
Earnings continued to improve and EBITA increased to SEK 33.9 million (21.9) while EBITA margin grew to 17.7 per cent (11.7). The main reason for the earnings impact was higher gross margin linked to a favourable product mix.
Order intake increased 9 per cent to SEK 730 million (672) during the year. In USD, however, the decrease was 8 per cent compared with 2021, and comparable companies noted a decrease of 13 per cent in USD. Net sales increased in the year by 31 per cent to SEK 778.8 million (594.0). In USD, the increase was 11 per cent and 7 per cent, respectively, for comparable units.
Higher gross margins and increased profitability in the previously acquired companies improved earnings in the segment. EBITA increased to SEK 118.0 million (74.0) during the year. 2021 included earnings from a one-off effect of SEK 11.0 million from the forgiven PPP loans. Excluding the effect of the PPP loans in 2021, the EBITA margin rose from 10.6 per cent to 15.1 per cent.
| NORTH AMERICA | Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | % | 2022 | 2021 | % |
| Net sales | 191.5 | 187.2 | 2.3 | 778.8 | 594.0 | 31.1 |
| EBITA | 33.9 | 21.9 | 54.6 | 118.0 | 74.0 | 59.3 |
| EBITA margin, % | 17.7 | 11.7 | 15.1 | 12.5 |
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. In conjunction with the invasion of Ukraine, NCAB decided to halt all deliveries to customers in Russia. Operations were divested to the local management on 8 April. The divestment resulted in a non-cash loss of SEK 43.2 million. NCAB made the assessment that the Russian operations no longer had any value in the short or medium term.
In the fourth quarter, NCAB's customers in China once again experienced lockdowns, which had a negative impact on order intake and net sales. Order intake for the quarter amounted to SEK 51 million (109). The decrease was largely explained by the discontinuation of operations in Russia, though order intake also fell in China. For comparable companies, order intake decreased 13 per cent and 29 per cent in USD. Book to bill for the segment was 92 per cent.
Net sales for the quarter amounted to SEK 55.2 million (113.5). Adjusted for the discontinuation of Russian operations, the decrease was 22 per cent and 37 per cent in USD.
Despite the decline in sales, costs were adapted and profitability improved. EBITA for the quarter amounted to SEK 11.6 million (15.4). This corresponded to an EBITA margin of 21.0 per cent (13.6). Adjusted for Russia, EBITA of SEK 11.6 million compares with SEK 10.4 million in 2021, corresponding to growth in EBITA margin from 14.8 per cent to 21.0 per cent.
The segment was affected by the divestment of the Russian operations and lower activity in China due to local lockdowns. Order intake for the period amounted to SEK 249 million (490). For comparable companies, order intake decreased 23 per cent and 35 per cent in USD. Net sales decreased to SEK 270.0 million (439.0), which means a decrease for comparable companies of 7 per cent and in USD a decrease of 21 per cent.
EBITA for the period amounted to SEK 47.1 million (64.5), corresponding to an EBITA margin of 17.5 per cent (14.7). Excluding Russia, EBITA was SEK 45.3 million for the full year of 2021. The divestment of NCAB's operations in Russia entailed a non-cash impairment of SEK 43.2 million that did not impact EBITA.
| EAST | Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | % | 2022 | 2021 | % | |
| Net sales | 55.2 | 113.5 | -51.4 | 270.0 | 439.0 | -38.5 | |
| EBITA | 11.6 | 15.4 | -25.0 | 47.1 | 64.5 | -26.9 | |
| EBITA margin, % | 21.0 | 13.6 | 17.5 | 14.7 |
-22%
In 2021, tied up working capital increased due to longer lead times in manufacturing operations and logistics problems. However, in 2022 lead times and logistics have recovered normal, which enabled a reduction in working capital. This reduction took place despite the fact that there was a shift from air to more sea freight, not least from a sustainability perspective. Together with increased earnings, this has improved cash flow significantly. Cash flow from operating activities in the quarter was SEK 189.1 million (19.8). Tied up working capital for the Group on 31 December 2022 corresponded to 8.8 per cent (11.0) of net sales over the past 12 months. Cash flow from operating activities for the full year was SEK 568.1 million (48.3). NCAB has credit insurance for most of the trade receivables outstanding. Cash flow from investing activities was SEK -22.4 million (-338.9) during the quarter. Cash flow for the year from investing activities was SEK -218.4 million (-575.9). Non-acquisitionrelated investments for the year amounted to SEK -40.0 million (-8.0). The increase is due to investments in new IT platforms.
Net debt at the end of the quarter was SEK 565.6 million (734.5). The equity/assets ratio was at year end, 39.3 per cent (29.1) and equity was SEK 1,195.8 million (773.8). At the end of the period, the Group had available liquidity, including undrawn acquisition credits and overdraft facilities, of SEK 1,033 million (657).
On 31 December 2022, NCAB had loans including the utilised overdraft facility totaling SEK 834.0 million. NCAB had a loan of SEK 550 million and two acquisition credits totalling SEK 750 million (of which SEK 290 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 December 2022, the company was in compliance with all covenants under the financing agreement.
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 2021 Annual Report for a more detailed description of the Group's risk exposure and risk management.
Following Russia's invasion of Ukraine, NCAB chose to halt all deliveries to customers in Russia from 28 February. After considering future opportunities and risks, NCAB decided to discontinue its operations in the country. NCAB believed that the Russian subsidiary had no value and therefore sold the company to the local management for RUB 1 on 8 April. The divestment resulted in loss of SEK 43.2 million, but with no impact on cash flow. The sold company have after the divestment not been able to use NCAB's brand nor benefit from the support of NCAB's Factory Management team in China or other parts of NCAB. The assessment is that no obligations remain for NCAB to the Russian operations. The Russian operations accounted for about 5 per cent of net sales and EBITA in 2021.
Benjamin Klingenberg, MD of NCAB Germany was appointed VP of NCAB Europe and consequently is a new member of Group management as of 1 November. Howard Goff, former VP NCAB Europe was appointed VP Sales.
On 24 November, an agreement was signed to acquire 100% of the shares in Bare Board Consultants in Italy. The transaction was closed on 10 January.
The Board of Directors proposes a dividend of SEK 1.10 (0.60) per share to be paid in May.
Apart from the sale of the Russian company to the Russian management, transactions with related parties took place to the same limited extent as previously and in accordance with the same principles as are described in the latest annual report. After the divestment of NCAB Russia, as of 8 April, there were no transactions with related parties.
On 31 December 2022, the number of employees was 587 (500), of whom 261 (228) were women and 326 (272) were men. The average number of employees in the organisation during the period was 583 (494), of whom 261 (224) were women and 322 (270) were men.
The Parent Company's net sales for the fourth quarter were SEK 68.9 million (44.7). Sales consist exclusively of internal billing. Profit after financial items was SEK 73.5 million (16.3) for the quarter. Net sales for the year amounted to SEK 143.3 million (97.9) and profit after financial items was SEK 154.8 million (34.7). The improvement was primarily due to increased dividends from subsidiaries. The divestment of the Russian operations entailed impairment of shares in subsidiaries of SEK 9.9 million, which burdened earnings in the first quarter.
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, 16 February 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
_____________________ _____________________
For further information, please contact: Anders Forsén, CFO +46 (0)8 4030 0051 Gunilla Öhman, IR Manager, +46 (0)70 763 81 25
This year-end report has 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 17 February 2023, at 7:20 a.m.
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 full-year 2022, January–December, on Friday 17 February at 7:20 a.m. A web-cast telephone conference will be held at 10:00 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/ncab-group-q4-2022
For those who wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. https://conference.financialhearings.com/teleconference/?id=5003283
Interim report first quarter 26 April 2023 Annual General Meeting 9 May 2023 Interim report second quarter 21 July 2023 Interim report third quarter 7 November 2023
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.
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | |
| Operating revenue | |||||
| Net sales | 1,026.1 | 976.6 | 4,457.7 | 3,219.5 | |
| Other operating income | 9.6 | 0.7 | 20.9 | 13.4 | |
| Total | 1,035.7 | 977.3 | 4,478.6 | 3,232.9 | |
| Raw materials and consumables | -686.2 | -678.0 | -3,043.3 | -2,245.4 | |
| Other external expenses | -58.3 | -37.4 | -218.6 | -148.1 | |
| Staff costs | -141.0 | -128.3 | -542.3 | -400.8 | |
| Dep. and amort of fixed assets | -20.8 | -14.8 | -76.8 | -41.4 | |
| Divestment of NCAB Russia | - | - | -43.2 | - | |
| Other operating expenses | -0.2 | -5.0 | -8.0 | -10.0 | |
| Total operating expenses | -906.4 | -863.6 | -3,932.2 | -2,845.8 | |
| Operating profit | 129.3 | 113.7 | 546.4 | 387.2 | |
| Net financial income/expense | -22.2 | -17.3 | 3.8 | -23.1 | |
| Profit before tax | 107.1 | 96.4 | 550.2 | 364.1 | |
| Income tax | -35.8 | -20.7 | -133.0 | -78.9 | |
| Profit for the period | 71.3 | 75.7 | 417.1 | 285.3 | |
| Profit attributable to: | |||||
| Shareholders of the Parent Company | 71.3 | 75.6 | 417.0 | 284.9 | |
| Non-controlling interests | 0.0 | 0.1 | 0.2 | 0.3 | |
| Average number of shares before dilution | 186,935,340 | 186,918,990 | 186,928,204 | 186,944,900 | |
| Average number of shares after dilution | 187,429,601 | 187,285,209 | 187,279,557 | 187,133,712 | |
| Earnings per share before dilution | 0.38 | 0.40 | 2.23 | 1.52 | |
| Earnings per share after dilution | 0.38 | 0.40 | 2.23 | 1.52 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | |
| Profit for the period | 71.3 | 75.7 | 417.1 | 285.3 | |
| Other comprehensive income, items that can subsequently be reclassified to profit or loss: |
|||||
| Foreign exchange differences | -13.5 | 29.8 | 119.2 | 69.5 | |
| - | - | -8.2 | - | ||
| Total comprehensive income | 57.8 | 105.5 | 528.1 | 354.7 | |
| Profit attributable to: | |||||
| Shareholders of the Parent Company | 57.8 | 105.4 | 527.9 | 354.4 | |
| Non-controlling interests | 0.0 | 0.1 | 0.2 | 0.3 |
SEK million
| ASSETS | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 1,057.5 | 923.9 |
| Other intangible assets | 171.7 | 153.2 |
| Leasehold improvement costs | 7.2 | 4.3 |
| Right-of-use Office and Cars | 85.5 | 34.4 |
| Plant and equipment | 11.0 | 7.5 |
| Financial assets | 5.5 | 8.2 |
| Deferred tax assets | 12.2 | 7.7 |
| Total non-current assets | 1,350.6 | 1,139.1 |
| Current assets | ||
| Inventories | 504.9 | 519.6 |
| Trade receivables | 760.7 | 789.6 |
| Other current receivables | 39.2 | 51.0 |
| Prepaid expenses and accrued income | 27.8 | 25.0 |
| Cash and cash equivalents | 357.8 | 136.7 |
| Total current assets | 1,690.5 | 1,521.9 |
| TOTAL ASSETS | 3,041.1 | 2,661.0 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to shareholders of the Parent Company | ||
| Share capital | 1.9 | 1.9 |
| Additional paid-in capital | 478.1 | 478.1 |
| Reserves | 124.0 | 13.1 |
| Retained earnings | 591.5 | 280.3 |
| Non-controlling interests | 0.3 | 0.4 |
| Total equity | 1,195.8 | 773.8 |
| Non-current liabilities | ||
| Borrowings | 833.8 | 644.0 |
| Leased liabilites | 57.6 | 24.5 |
| Deferred tax | 62.1 | 55.5 |
| Total non-current liabilities | 953.4 | 724.0 |
| Current liabilities | ||
| Current liabilities | 0.3 | 190.3 |
| Current right-of-use liabilities | 31.8 | 12.4 |
| Trade payables | 518.5 | 618.7 |
| Current tax liabilities | 108.9 | 57.8 |
| Other current liabilities | 83.5 | 168.6 |
| Accrued expenses and deferred income | 148.8 | 115.3 |
| Total current liabilities | 891.8 | 1,163.1 |
| TOTAL EQUITY AND LIABILITIES | 3,041.1 | 2,661.0 |
| SEK million | Share capital |
Additional paid-in capital |
Reserves | Retained earning |
Total | Non-controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|
| 1 Jan 2021 | 1.9 | 478.1 | -56.4 | 276.1 | 699.7 | 0.2 | 699.9 |
| Profit for the period | 284.9 | 284.9 | 0.3 | 285.3 | |||
| Other comprehensive income for the period Total comprehensive |
- | - | 69.5 | - | 69.5 | - | 69.5 |
| income | - | - | 69.5 | 284.9 | 354.4 | 0.3 | 354.7 |
| - | |||||||
| Dividend | -280.5 | -280.5 | -0.1 | -280.6 | |||
| Cost for Warrants | 2.2 | 2.2 | 2.2 | ||||
| Own shares | -2.4 | -2.4 | -2.4 | ||||
| Total transactions with shareholders, recognised directly in equity |
- | - | - | -280.7 | -280.7 | -0.1 | -280.8 |
| 31 Dec 2021 | 1.9 | 478.1 | 13.1 | 280.3 | 773.4 | 0.4 | 773.8 |
| 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 2022 | 1.9 | 478.1 | 13.1 | 280.3 | 773.4 | 0.4 | 773.8 | |
| Profit for the period | 417.0 | 417.0 | 0.2 | 417.1 | ||||
| Other comprehensive income for the period Total comprehensive |
- | - | 110.9 | - | 110.9 | - | 110.9 | |
| income | - | - | 110.9 | 417.0 | 527.9 | 0.2 | 528.1 | |
| Dividend | - | - | - | -112.2 | -112.2 | -0.3 | -112.5 | |
| Own shares | - | - | - | 0.7 | 0.7 | - | 0.7 | |
| Cost for Warrants | - | - | - | 5.7 | 5.7 | - | 5.7 | |
| Total transactions with shareholders, recognised |
||||||||
| directly in equity | - | - | - | -105.8 | -105.8 | -0.3 | -106.1 | |
| 31 Dec 2022 | 1.9 | 478.1 | 124.0 | 591.5 | 1,195.6 | 0.3 | 1,195.8 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 |
| Cash flow from operating activities | ||||
| Profit before net financial income/expense | 129.3 | 113.7 | 546.4 | 387.2 |
| Adjustment for non-cash items | 29.9 | 49.1 | 59.5 | 71.8 |
| Interest received | 2.3 | 0.0 | 2.6 | 0.1 |
| Interest paid | -10.5 | -6.8 | -26.9 | -15.0 |
| Income taxes paid | -56.2 | -10.2 | -91.2 | -35.2 |
| Cash flow from operating activities before changes in working capital | 94.9 | 145.8 | 490.3 | 408.8 |
| Change in inventories | 5.8 | -143.0 | 44.3 | -324.4 |
| Change in current receivables | 215.9 | 11.0 | 70.3 | -324.6 |
| Change in current operating liabilities | -127.1 | 5.9 | -36.8 | 288.4 |
| Total changes in working capital | 94.5 | -126.1 | 77.8 | -360.5 |
| Cash flow from operating activities | 189.4 | 19.8 | 568.1 | 48.3 |
| Cash flow from investing activities | ||||
| Investments in property, plant and equipment | -0.4 | -1.4 | -10.4 | -3.3 |
| Investments in intangible assets | -19.0 | -1.0 | -32.4 | -1.4 |
| Investments in subsidiaries | -3.6 | -335.0 | -178.3 | -567.9 |
| Investments in financial assets | 0.5 | -1.4 | 2.7 | -3.3 |
| Cash flow from investing activities | -22.4 | -338.9 | -218.4 | -575.9 |
| Cash flow from financing activities | ||||
| Change in overdraft facility | -15.5 | 189.0 | -189.0 | 189.0 |
| Borrowings | - | 650.0 | 190.0 | 650.0 |
| Transaction cost, loans | - | -6.2 | - | -6.2 |
| Repayment of loans | - | -308.0 | - | -335.4 |
| Repayment of leased liabilities | -8.4 | -5.6 | -29.6 | -16.3 |
| Dividend | -56.1 | -187.0 | -112.2 | -280.5 |
| Cash flow from financing activities | -80.0 | 332.3 | -140.8 | 200.8 |
| Decrease/increase in cash and cash equivalents | ||||
| Cash flow for the period | 87.0 | 13.2 | 208.9 | -326.9 |
| Foreign exchange difference in cash and cash equivalents | -19.3 | 2.9 | 12.2 | 14.6 |
| Cash and cash equivalents at beginning of period | 290.2 | 120.6 | 136.7 | 449.0 |
| Cash and cash equivalents at end of period | 357.8 | 136.7 | 357.8 | 136.7 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | |
| Operating revenue | |||||
| Net sales | 68.9 | 44.7 | 143.3 | 97.9 | |
| Total | 68.9 | 44.7 | 143.3 | 97.9 | |
| Other external expenses | -48.1 | -25.5 | -89.7 | -57.4 | |
| Staff costs | -13.6 | -13.8 | -56.2 | -46.9 | |
| Depreciation of property, plant and equipment, | |||||
| and amortisation of intangible assets | -0.1 | -0.1 | -0.5 | -0.5 | |
| Write down | - | - | -9.9 | - | |
| Total operating expenses | -61.8 | -39.4 | -156.3 | -104.8 | |
| Operating loss | 7.1 | 5.3 | -13.0 | -6.9 | |
| Income from investments in Group companies | 67.9 | 23.2 | 158.3 | 42.7 | |
| Other interest income and similar income | 11.4 | -3.2 | 25.8 | 8.4 | |
| Interest expense and similar charges | -12.9 | -9.0 | -29.3 | -16.4 | |
| Net financial income/expense | 66.5 | 11.0 | 154.8 | 34.7 | |
| Profit before tax | 73.5 | 16.3 | 141.8 | 27.7 | |
| Appropriations | 8.8 | 13.5 | 8.8 | 13.5 | |
| Tax on profit for the period | 0.2 | 0.1 | -0.2 | -0.4 | |
| Profit for the period | 82.5 | 29.9 | 150.3 | 40.8 |
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.
| ASSETS | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Non-current assets | ||
| Capitalised development costs | 28.6 | 0.5 |
| Plant and equipment | 0.1 | 0.0 |
| Non-current financial assets | 909.8 | 850.0 |
| Non-current financial assets from Group companies | 267.4 | - |
| Total non-current assets | 1,205.9 | 850.5 |
| Current assets | ||
| Receivables from Group companies | 164.1 | 474.0 |
| Other current receivables | 3.2 | 2.9 |
| Prepaid expenses and accrued income | 4.0 | 3.0 |
| Cash and cash equivalents | 42.9 | 0.1 |
| Total current assets | 214.1 | 480.0 |
| TOTAL ASSETS | 1,420.0 | 1,330.6 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Restricted equity | ||
| Share capital (186,971,240 shares) | 1.9 | 1.9 |
| Non-restricted equity | ||
| Share premium account | 478.1 | 478.1 |
| Retained earnings | -353.5 | -282.1 |
| Profit/ loss for the period | 150.3 | 40.8 |
| Total equity | 276.9 | 238.7 |
| Untaxed reserves | 1.0 | 3.8 |
| Non-current liabilities | ||
| Liabilities to credit institutions | 833.8 | 644.0 |
| Total non-current liabilities | 833.8 | 644.0 |
| Current liabilities | ||
| Liabilities to credit institutions | - | 189.5 |
| Trade payables | 14.1 | 2.9 |
| Liabilities to Group companies | 273.3 | 225.3 |
| Current tax liabilities | 0.4 | - |
| Other current liabilities | 2.0 | 4.0 |
| Accrued expenses and deferred income | 18.5 | 22.3 |
| Total current liabilities | 308.3 | 444.0 |
| TOTAL EQUITY AND LIABILITIES | 1,420.0 | 1,330.6 |
| Restricted equity | Non-restricted equity | |||
|---|---|---|---|---|
| SEK million | Share capital | Share premium account |
Retained earnings | Total |
| 1 January 2021 | 1.9 | 478.1 | -1.6 | 478.4 |
| Loss for the year Other comprehensive income for the |
- | - | 40.8 | 40.8 |
| year | - | - | - | - |
| Total comprehensive income | - | - | 40.8 | 40.8 |
| Dividend, shares | - | -280.5 | -280.5 | |
| Total transactions with shareholders, recognised directly in equity |
- | - | -280.5 | -280.5 |
| 31 Dec 2021 | 1.9 | 478.1 | -241.3 | 238.7 |
| 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 | - | - | 150.3 | 150.3 |
| Total comprehensive income | - | - | 150.3 | 150.3 |
| Dividend, shares | -112.2 | -112.2 | ||
| Total transactions with shareholders, recognised directly in equity |
- | - | -112.2 | -112.2 |
| 31 Dec 2022 | 1.9 | 478.1 | -203.1 | 276.9 |
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 2021 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 2021, 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 2022 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 1–29 is an integral part of this financial report.
For information on significant estimates and judgements made by management in preparing the consolidated financial statements, see Note 2 of the 2021 Annual Report.
For more information on financial assets and liabilities, see the 2021 Annual Report, Note 2. All of the Group's financial assets and liabilities are measured at amortised cost. There are no financial assets and liabilities which are measured 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". All financial liabilities are recognised in the category "Other financial liabilities".
As of December 2021, the Group no longer has any material pledged assets or contingent liabilities.
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:
Provides a broad range of PCBs from NCAB Group's companies in Sweden, Norway, Denmark and Finland and the recently acquired Elmatica. 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.
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.
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.
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-lowvolume (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 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.
| North | Central | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Nordic | Europe | America | East | functions | Group | ||||||
| SEK million | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Net sales | 296 | 269 | 484 | 407 | 191 | 187 | 55 | 113 | - | - | 1,026 | 977 |
| EBITA | 45 | 41 | 53 | 39 | 34 | 22 | 12 | 15 | -3 | 4 | 141 | 121 |
| EBITA margin, % | 15.3 | 15.2 | 11.0 | 9.6 | 17.7 | 11.7 | 21.0 | 13.6 | 13.7 | 12.4 | ||
| Amortis. intangible assets |
-12 | -7 | ||||||||||
| Operating profit | 129 | 114 | ||||||||||
| Operating margin, % |
0 | 0 | ||||||||||
| Net financial expense |
-22 | -17 | ||||||||||
| Profit before tax | 107 | 96 | ||||||||||
| Net working capital | 118 | 80 | 324 | 307 | 14 | 44 | 62 | 75 | -45 | -81 | 473 | 425 |
| Central | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nordic | Europe | North America | East | functions | Group | |||||||
| SEK million | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Net sales | 1,216 | 711 | 2,193 | 1,476 | 779 | 594 | 270 | 439 | - | - | 4,458 | 3,220 |
| EBITA | 205 | 114 | 272 | 156 | 118 | 74 | 47 | 65 | -11 | -3 | 631 | 406 |
| EBITA margin, % | 16.8 | 16.1 | 12.4 | 10.6 | 15.1 | 12.5 | 17.5 | 14.7 | 14.2 | 12.6 | ||
| Amortis. intangible assets |
-41 | -19 | ||||||||||
| Write down Russia | -43 | - | ||||||||||
| Operating profit | 546 | 387 | ||||||||||
| Operating margin, % | 12.3 | 12.0 | ||||||||||
| Net financial expense | 4 | -23 | ||||||||||
| Profit before tax | 550 | 364 | ||||||||||
| Net working capital | 118 | 80 | 324 | 307 | 14 | 44 | 62 | 75 | -45 | -81 | 473 | 425 |
| Fixed assets | 23 | 9 | 40 | 16 | 11 | 8 | 10 | 1 | 20 | 12 | 104 | 46 |
| Intangible assets | 445 | 448 | 434 | 344 | 313 | 275 | 8 | 9 | 29 | 1 | 1,229 | 1,077 |
| Q4 22 | Q3 22 | Q2 22 | Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | |
|---|---|---|---|---|---|---|---|---|
| Order intake, SEK million | 1,009.2 | 1,011.0 | 1,035.7 | 1,171.3 | 1,067.1 | 935.2 | 1,057.8 | 978.9 |
| Order intake, USD million | 93.2 | 94.1 | 104.9 | 125.3 | 120.6 | 107.3 | 126.2 | 116.5 |
| Net sales, SEK million | 1,026.1 | 1,168.3 | 1,122.0 | 1,141.3 | 976.6 | 863.6 | 762.2 | 617.1 |
| SEK annual growth, % | 5.1 | 35.3 | 47.2 | 84.9 | 89.7 | 60.9 | 31.3 | 27.7 |
| Net sales, USD million | 94.4 | 109.8 | 114.0 | 122.1 | 111.3 | 99.8 | 90.9 | 73.5 |
| USD annual growth, % | -15.2 | 10.0 | 25.4 | 66.2 | 87.1 | 65.5 | 51.5 | 46.9 |
| Gross margin, % | 34.1 | 32.2 | 31.3 | 30.2 | 30.6 | 30.8 | 30.1 | 29.4 |
| EBITA, SEK million | 141.0 | 183.5 | 160.2 | 146.3 | 121.0 | 123.2 | 103.8 | 58.4 |
| EBITA margin, % | 13.7 | 15.7 | 14.3 | 12.8 | 12.4 | 14.3 | 13.6 | 9.5 |
| Operating profit/loss, SEK million |
129.3 | 172.3 | 150.9 | 93.8 | 113.7 | 118.6 | 99.7 | 55.4 |
| Total assets, SEK million | 3,041.1 | 3,194.6 | 3,033.6 | 2,732.6 | 2,661.0 | 1,981.8 | 1,765.0 | 1,663.4 |
| Cash flow from operating activities, SEK million |
189.4 | 212.2 | 148.2 | 24.2 | 19.8 | 0.2 | 30.3 | -2.0 |
| Equity/assets ratio, % | 39.3 | 35.5 | 32.4 | 32.0 | 29.1 | 43.1 | 42.3 | 46.7 |
| Number of employees | 587 | 578 | 574 | 603 | 562 | 512 | 500 | 488 |
| Average exchange rate, SEK/USD |
10.73 | 10.55 | 9.83 | 9.33 | 8.86 | 8.65 | 8.41 | 8.39 |
| Average exchange rate, SEK/EUR |
10.94 | 10.63 | 10.47 | 10.48 | 10.13 | 10.19 | 10.14 | 10.11 |
On 2 January 2022, 100 per cent of the shares were acquired in META Leiterplatten in Germany. Operating profit together with assets and liabilities associated with the acquired company were consolidated from the transaction date. Goodwill of SEK 9.1 million arose in conjunction with the acquisition. META's net sales for 2021 amounted to approximately SEK 85 million and EBITA to about SEK 4.5 million. The purchase consideration for the shares amounted to SEK 18.6 million. META has 17 employees and operations in Germany. Acquisitions costs related to the acquisition amounted to approximately SEK 0.8 million and were expensed as central costs.
On 24 June 2022, 100 per cent of the shares in Kestrel International Circuits in the UK was acquired. Operating profit together with assets and liabilities associated with the acquired company were consolidated from the transaction date. Kestrel's net sales for 2021 amounted to approximately SEK 125 million and EBITA to about SEK 17 million. The purchase consideration for the shares amounted to SEK 104.1 million. In so doing, goodwill of SEK 44.5 million arose. Kestrel has 20 employees in the UK and five in China. Acquisitions costs related to the acquisition amounted to approximately SEK 4.1 million and were expensed as central costs.
On 24 November, an agreement was signed to acquire 100% of the shares in Bare Board Consultants in Italy. The transaction was concluded 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.
META Leiterplatten and Kestrel International Circuits together contributed SEK 167 million in net sales and SEK 9.7 million in EBITA. If the two companies had been consolidated on 1 January 2022, the Group's net sales for the January–December period 2022 would have increased by SEK 55 million to SEK 4,513 million and EBITA by SEK 7.8 million to SEK 638.7 million.
| Förvärv | META 2 januari 2022 |
Kestrel 24 juni 2022 |
BBC 10 januari 2023 |
|---|---|---|---|
| Total köpeskilling | 18,6 | 104,1 | 71,7 |
| Förvärvade tillgångar och | |||
| övertagna skulder Anläggningstillgångar |
0,9 | 0,6 | 0,3 |
| Kundrelationer | 3,5 | 15,2 | 17,1 |
| Övriga omsättningstillgångar | 13,8 | 48,4 | 42,9 |
| Likvida medel | 2,2 | 14,7 | 15,5 |
| Övriga rörelseskulder | -9,8 | -16,4 | -17,3 |
| Uppskjuten skatt | -1,1 | -2,9 | -5,7 |
| Summa nettotillgångar | 9,5 | 59,6 | 52,8 |
| Goodwill | 9,1 | 44,5 | 18,9 |
Redovisade belopp i tabellen ovan är preliminära värden.
Because of a favourable earnings trend in the acquired company, the additional purchase consideration was the maximum amount of SEK 24.8 million, which was SEK 3.2 million higher than the original estimate.
The additional purchase consideration for Elmatica was determined at SEK 63.1 million, which was SEK 9.6 million lower than estimated on the acquisition date.
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.
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | |
| Net sales | 1,026.1 | 976.6 | 4,457.7 | 3,219.5 | |
| Other operating income | 10.8 | 0.7 | 11.8 | 13.4 | |
| Cost of goods sold | -686.2 | -678.0 | -3,043.3 | -2,245.4 | |
| Translation differences | -1.2 | - | 9.1 | - | |
| Total gross profit | 349.5 | 299.3 | 1,435.3 | 987.5 | |
| Gross margin, % | 34.1 | 30.6 | 32.2 | 30.7 | |
| Gross margin excl PPP, % | 34.1 | 30.6 | 32.2 | 30.3 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 |
| Operating profit | 129.3 | 113.7 | 546.4 | 387.2 |
| Amortisation and impairment of intangible assets | 11.7 | 7.3 | 41.3 | 18.9 |
| Divestment Russia | - | - | 43.2 | - |
| EBITA | 141.0 | 121.0 | 630.9 | 406.1 |
| EBITA margin, % | 13.7 | 12.4 | 14.2 | 12.6 |
| EBITA margin excl PPP, % | 13.7 | 12.4 | 14.2 | 12.3 |
| Non-recurring items | - | - | - | - |
| Adjusted EBITA | 141.0 | 121.0 | 630.9 | 406.1 |
| Adjusted EBITA margin, % | 13.7 | 12.4 | 14.2 | 12.6 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | |
| Operating profit Depreciation, amortisation and impairment of property, plant and equipment, |
129.3 | 113.7 | 546.4 | 387.2 | |
| and intangible assets | 20.8 | 14.8 | 76.8 | 41.4 | |
| Divestment Russia | - | - | 43.2 | - | |
| EBITDA | 150.1 | 128.5 | 666.4 | 428.6 | |
| EBITDA margin, % | 14.6 | 13.2 | 14.9 | 13.3 | |
| EBITDA margin excl PPP, % | 14.6 | 13.2 | 14.9 | 13.0 |
| SEK million | Dec 2022 | Dec 2021 |
|---|---|---|
| Profit for the period — LTM | 417.1 | 285.3 |
| Equity (average) | 984.8 | 736.9 |
| Return on equity, % | 42.4 | 38.7 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Inventories | 504.9 | 519.6 |
| Trade receivables | 760.7 | 789.6 |
| Other current receivables | 39.2 | 51.0 |
| Prepaid expenses and accrued income | 27.8 | 25.0 |
| Trade payables | -518.5 | -618.7 |
| Current tax liabilities | -108.9 | -57.8 |
| Other current liabilities | -83.5 | -168.6 |
| Accrued expenses and deferred income | -148.8 | -115.3 |
| Net working capital | 472.9 | 424.7 |
| Non-current assets | 1,350.6 | 1,139.1 |
| Cash and cash equivalents | 357.8 | 136.7 |
| Deferred tax | -62.1 | -55.5 |
| Capital employed | 2,119.3 | 1,645.0 |
| SEK million | Dec 2022 | Dec 2021 |
|---|---|---|
| Operating profit/loss — LTM | 546.4 | 387.2 |
| Capital employed (average) | 1,882.2 | 1,354.3 |
| Return on capital employed, % | 29.0 | 28.6 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Equity | 1,195.8 | 773.8 |
| Untaxed reserves | - | - |
| Total | 1,195.8 | 773.8 |
| Total assets | 3,041.1 | 2,661.0 |
| Equity/assets ratio, % | 39.3 | 29.1 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Interest-bearing liabilities | 923.5 | 871.2 |
| Cash and cash equivalents | -357.8 | -136.7 |
| Total net debt | 565.6 | 734.5 |
| EBITDA LTM | 666.4 | 428.6 |
| Net debt / EBITDA | 0.8 | 1.7 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Interest-bearing liabilities excl IFRS 16 | 834.1 | 834.2 |
| Cash and cash equivalents | -357.8 | -136.7 |
| Total net debt excl IFRS16 | 476.2 | 697.5 |
| EBITDA LTM excl IFRS 16 | 636.8 | 412.4 |
| Net debt excl IFRS 16/ EBITDA excl IFRS 16 | 0.7 | 1.7 |
| Alternative | Definition | Purpose |
|---|---|---|
| performance | ||
| measure | ||
| 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 |
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.
PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost.
The Number 1 PCB producer – wherever we are.
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% of net profit (unchanged from before).
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