NCAB Group Interim report January–June 2022


> Net sales increased by 47% to SEK 1,122.0 million (762.2). In USD, net sales increased 25%. For comparable units, net sales increased by 35%, and in USD 15%.
> Order intake decreased 2% to SEK 1,035.7 million (1,057.8). The decrease in USD was 17%. For comparable units, the decrease in order intake was 14% in SEK, and 27% in USD. Book to bill was 92%. Order intake in the second quarter 2021 was abnormally high due to longer lead times. Excl. the elevated order intake, the second quarter’s order intake in 2022 is estimated to have increased with 20% in SEK.
> EBITA increased 54% to SEK 160.2 million (103.8), representing an EBITA margin of 14.3% (13.6). In 2021, EBITA was positively impacted in an amount of SEK 11.0 million in PPP loans forgiven.
> EBITA was negatively impacted by acquisition costs of SEK 4.9 million. EBITA excluding acquisition costs was SEK 165.0 million, corresponding to a margin of 14.7% (12.3).
> Cash flow from operating activities was SEK 148.2 million (30.3).
> Operating profit was SEK 150.9 million (99.7).
> Profit after tax was SEK 141.1 million (77.9).
> Earnings per share* before and after dilution was SEK 0.75 (0.42).


> Net sales increased by 64% to SEK 2,263.3 million (1,379.3). In USD, net sales increased 44%. For comparable units, net sales increased by 46%, and in USD 28%.
> Order intake increased 8% to SEK 2,207.0 million (2,036.7). In USD, order intake decreased 5%. For comparable units, the decrease for order intake was 6% in SEK, and 18% in USD. Book to bill was 98%.
> EBITA increased to SEK 306.4 million (162.1), representing an EBITA margin of 13.5% (11.8). SEK 8.1 million was charged to EBITA relating to acquisition costs for META and Kestrel as well as the final payment for Prevent. Excluding these costs, EBITA amounted to SEK 314.5 million, representing an EBITA margin of 13.9% (11.2).
> Cash flow from operating activities was SEK 172.4 million (28.3).
> Operating profit was SEK 244.7 million (155.1).
> Profit after tax was SEK 207.3 million (118.7).
> Earnings per share *) was SEK 1.11 (0.63).


> The AGM voted in favour of a dividend of SEK 0.60 per share, 50% of which to be paid in May and 50% in October (in 2021, SEK 0.50* per share was paid as an ordinary dividend and SEK 1.00* as an extra dividend).
> A new loan facility was signed with Nordea after the end of the quarter for an additional SEK 300 million to strengthen future acquisition opportunities.
> On 8 April, NCAB divested its operations in Russia to the local Russian management for RUB 1. The divestment resulted in a loss of SEK 43.2 million, which was provisioned for in the first quarter of 2022.
> On 24 June, 100% of the shares in Kestrel International Circuits in the UK was acquired, thereby strengthening NCAB’s position in the UK market.
*) Calculated after 10:1 split

Key performance indicators Apr-mar Jan-june Full-year
2022 2021 % 2022 2021 % LTM 2021
Order intake, SEK million 1035.7 1057.8 -2 2207.0 2036.7 8 4209.3 4039.0
Order intake, USD million 104.9 126.2 -17 230.2 242.7 -5 458.2 470.7
Net sales, SEK million 1122.0 762.2 47 2263.3 1379.3 64 4103.4 3219.5
Net sales, USD million 114.0 90.9 25 236.1 164.4 44 447.2 375.5
Gross margin, % 31.3 31.6 30.8 30.6 30.7 30.7
EBITA, SEK million 160.2 103.8 54 306.4 162.1 89 550.4 406.1
EBITA margin, % 14,3 13,6 13,5 11,8 13,4 12,6
Operating profit, SEK million 150.9 99.7 51 244.7 155.1 58 476.8 38.2
Operating margin, % 13,4 13,1 10,8 11,2 11,6 12,0
Profit after tax, SEK million 141.1 77.9 81 207.3 118.7 75 373.9 285.3
Earnings per share* before dilution, SEK 0.75 0,42 81 1,11 0.63 75 2,00 1,52
Earnings per share* after dilution, SEK 0.75 0,42 81 1,11 0.63 75 2,00 1,52
Cash flow from operating activities, SEK million 148.2 30.3 389 172.4 28.3 509 192.4 48.3
Return on capital employed, % 30.8 28.6
Return on equity, % 43.2 38.7
USD/SEK – average 9.83 8.41 9.59 8.40 9.17 8.58
EUR/SEK – average 10.47 10.14 10.48 10.13 10.32 10.14


Continued strong order intake and sales with higher margins

During the second quarter, our good performance continued, and we are pleased to note strong net sales and very good cash flow. This is despite continued problems with component shortages that many of our customers are experiencing. We were able to convert the solid order book into sales with good gross margins and generated further increases in EBITA margin. As supply chains improved, we were also able to retain working capital levels, which led to very good cash flow in the quarter.

Our organic growth was high in all regions except for East. There, we noted lower net sales resulting from the divestment of the Russian operations and because some Chinese customers were encompassed by lockdowns. However, our Chinese factory partners have operated without interruption throughout the quarter, and we continued to offer good service to our customers. We are pleased to have acquired Kestrel International Circuits. Alongside NCAB, Kestrel has been the leading quality supplier in the UK with its experienced team. The acquisition of Kestrel will further strengthen our position in the UK and Europe.

Our growth in Nordic was strong, primarily due to the acquisition of Elmatica. The integration is progressing well, orders have a positive trend with new aerospace/defence contracts, and we are also beginning to see synergies materialise. In addition to Elmatica, developments were robust in most countries despite component shortages for some of our customers. Order intake in relation to net sales (book to bill) was 102 per cent and EBITA margin reached the high level of 20 per cent.

Europe demonstrated a continued solid performance with rising net sales and improved margins. Net sales growth was particularly impressive in Germany, the UK and the Netherlands. Orders declined compared with 2021 specifically in these countries as a result of the significant order increase in the second quarter of 2021 due to the longer lead times experienced at that time. However, overall book to bill was 88 per cent and EBITA margin for Europe increased to 12 per cent.

North America continued to demonstrate strong growth and sustained positive book to bill. EBITA margin rose to 15 per cent, which was a major improvement on prior years. This reflects the fact that we have now achieved a sufficient size and position in the US market and that NCAB’s model with value-based pricing has been introduced in acquired companies.

In East, figures now reflect our operations in Asia and the Pacific, and exclude our operations in Russia, which were divested on 8 April. Our customers’ businesses in the East segment were impacted by the zero-COVID policy in China with lockdowns in major regions. Despite this, net sales were stable with a very good EBITA margin of 19 per cent.

We have a continued good pipeline of possible acquisitions we are considering and are in discussions with. Acquisitions in recent years have helped to improve our ability to manage the acquired companies and effectively integrate them into our working methods. This know-how, our strong balance sheet and cash generation makes us well prepared for a continued high pace of acquisitions.

Our niche in the high-mix low-volume (HMLV) PCB market has experienced healthy growth and we are convinced that we are gradually gaining market share for a number of reasons. Our high quality and level of technology, delivery capacity and sustainability focus are all such factors, which are also supported by our presence in Asia close to factories. Our most recent major acquisition in Europe also further strengthened our brand and supported our organic growth.

Lastly, I was delighted that we during the second quarter could arrange our first global staff conference for our employees since 2019. A large part of NCAB’s strength lies with our employees and the relationships they build with customers and factory partners. The interaction and positive energy between old and new employees in our organisation and the exchange of knowledge and ideas was marvelous to see. I feel very convinced of our organisation’s capacity to handle future opportunities and challenges and to provide our customers with the support they need.

Peter Kruk,
President and CEO, NCAB Group AB
“We are pleased to see strong net sales and very good cash flow.”

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.

NCAB Group AB (publ)
Tel: +46 (0) 8 4030 0000
Löfströms Allé 5, SE-172 66 Sundbyberg, Sweden

NCAB Group is publishing the interim report for the first half of 2022, January–June, on Thursday 21 July at 7:30 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. To participate in the conference call, call the following numbers: from Sweden: SE: +46850558355, UK: +443333009261, US: +1 6319131422 US-PIN: 17297320#. The presentation and conference can also be followed from the following link:
Interim report third quarter 8 November 2022
Year-end report 17 February 2023

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. Revenues in 2021 amounted to SEK 3,220 million. Organic growth and acquisitions are part of NCAB’s strategy. For more information about NCAB Group, please visit us at