NCAB Group AB (publ)

Thank you very much and welcome everyone. My name is Peter Kruk and together with Timothy Benjamin, we will be presenting the second quarter results for NCAB Group. Starting point, NCAB, we are a company focused on supplying printed circuit boards. Printed circuit boards are the foundation that you see to the left in all electronics, which forms the brain in any intelligent product. And what is unique with our product is that every PCB is unique to the product in which it is used. So there are no standard components. But everything is our engineered product where we provide value to our customers, both in the design phase as well as through the supply of products. As a company, we are operating globally with a strong local presence in 19 entities. We are serving some 45 markets and we are around 645 employees. And we use some 36 main factories to supply our customers with different technologies and from different geographies. We don't own any in-house manufacturing. In fact, we're using only extended partisan, which makes us flexible in order to support our customers in varying needs, both in terms of technology, but also always being able to give our customers the best supply chain possible for their specific needs. If we then move over to the specifically the second quarter. So I'm glad to see that we have another quarter of positive order intake. We have had in the second quarter a very significant headwind from the weakening dollar, as the dollar has dropped roughly 10% since Q1. But if we look upon the order intake, we continue to have a second quarter of growth in order intake for the group. The continued positive development in Nordic and East has continued, and we also see actually Europe to show ordering take growth in US dollar. Our ordering take in the USA was weak compared to last year, but beside the FX, this is partly due to the tough comparables that we've had in the quarter. Q1 for us was very strong, so I'll come back later to show that full year status. Net sales also devalued by the US dollar movement, but we see growth in the dollar terms in all regions excluding Europe, which is still down. So it's lagging a little bit from the order intake. The impact of US dollar on net sales is around 90 million SEC in the quarter. Gross margin remains stable, improving slightly versus Q1, but the EBITDA is impacted by the weak dollar. The EBITDA would have been some 17 million higher, excluding the US dollar impact. M&A activities, as we have reported earlier, have continued. We were able to close the acquisition of B&B Leiterplatten service in Germany here earlier in the spring, and that integration has now commenced. And we have also, during the quarter, renewed and increased our financing at better terms and with the validity until 2030. If we look more specifically on the numbers for the quarter, we can see that our order intake in Swedish kronor is up by 5% to 985 million. If we look upon US dollar, the order intake is up some 16% versus last year. And it's also positive that we have a book to bill of 105 in the quarter. Net sales are stable in Swedish kronor versus last year. But if we look upon organic growth, excluding acquisitions in US dollars, we actually see organic growth of 8% in the quarter. EBITDA, as we said, is impacted by the FX. So we are down to 94 million SEK or an EBITDA margin of 10%. Gross margin has gone down versus last year, where we had extraordinary margins in the first two quarters of the year. But we are moving up slightly from our Q1. We were at 34.7. And as we mentioned, the negative FX is 17 million SEK in the quarter. Cash flow good at 93.6 million in comparison to last year's 101. Our working capital is up slightly. We are up partly due to the acquisition of BNB, and we also see some effects from the tariffs in the US impacting working capital there. A little bit more information briefly about B&B Latter Button Service is a company based in Eastern Germany with its main customer base also in Germany. It's a company that was started in the 90s and was running production up until 2022. That means the company has a very deep knowledge around technology for manufacturing, which is also valuable in the dialogue with customers. Revenue in 24 was around 150 million SEK and they had an EBITDA north of 20 million SEK in that year. and with the company comes some 25 employees predominantly in germany but also in china and the the transaction was announced and signed on april 23rd and it was now closed on june 3rd so has contributed somewhat in the quarter then i give it over to you tim to continue

Thank you, Peter. So I think you heard a little bit from Peter that we had sales around 934 million SEC in the quarter, fairly flat with quarter two last year. However, when you look at it in US dollars, which is more of a fixed currency comparison for us, since we do so much trading in US dollars, we were up to 10% year over year growth with M&A contributing nicely as well. We did have an EBITDA at 93.9 million SEC, down 22%. And you heard a little bit from Peter that some of the impacts there were both FX and then also a little bit of price product mix. So we ended the quarter at around 10% or about down to 2.9 percentage points. If you look at our gross margins over time, we're running at around 36% last 12 months. And that's compared to around 36, 37 for the past two years. But in the longer term, we've been able to drive up gross margins quite nicely. When we turn our heads then to order intake and sales, it was really nice to see the order intake increasing 5% year over year to 985. But again, in a more fixed currency comparison with US dollars, it's actually up 8%. We did see some very nice positive indications on the Nordic side, as well as Europe and also on the East. And then a little hesitation on the North American side with all the tariff movements back and forth in that country. As mentioned, net sales were flat for the quarter, and that presented the third quarter in a row of positive book-to-bill, which we were happy to see, as well as a good trend in new part numbers in customers' one. When we then look at the result, as said, we were down to around 94 million SEC. That's partially an impact of the lower US dollar. In total, 17 million SEC. But then also around 22 million SEC coming from a negative translation effect as the US dollar weekend offset by a little bit of positivity on the balance sheet revaluation of 5 million SEC. And the balance sheet revaluation is something that isn't expected to repeat. It really just happens. has to do with how much AP and AR we have on the books in US dollars at the end of every quarter, whereas the translation effect is something that we expect to continue wherever the US dollar is. So that one continues forward. EBITDA margin, as said, 10%, with a gross margin slightly improving over quarter one. But we did see gross margins decreasing year over year, which was mainly attributable besides FX to the pricing and product mix, which was quite elevated in H1 2024. And then we thought we'd give you a little extra detail here since we do have big FX movements within the quarter. So if you take a look at the US dollar compared to prior year down around 10%, so down to 9.66 on average during the quarter versus 10.68 last year. So that gives us a full 90 million sec impact on revenue. And as we've said for a while now, we tend to have our revenue coming from the prior quarter's order intake. And when you have a prior quarter order intake that translates into a different exchange rate, you tend to get impacts like this. So we saw a 90 million sec impact on revenue versus prior year from FX. That then resulted in around 27 million sec total impact to gross profit, of which minus 32 translation and plus five on the revaluation side. which, again, the revaluation side is the one that's not expected to repeat, whereas translation we do expect to see repeating as long as the US dollar stays this low. And then SG&A also repeats, and that was at a positive 10. Some of our SG&A converts into less SEC. That gave us a total EBITDA impact in the quarter compared with the prior year quarter, quarter two, at the higher exchange rates of around minus 17 million SEC. With that, over to you, Peter.

so if we look a little bit closer to the segments i mean we can see nordic has had a fantastic order intake in the quarter being up 15 in sec and around 26 in us dollars i think positive development in a number of the countries and i think like denmark but we've also seen good orders from aerospace and defense but this also means that some of the order intake that we've seen now will have a longer digestion time so we'll primarily or part of it will primarily impact 2026 rather than the second half of 2025. Net sales up 4% in Swedish kronor to 250 million sec versus 207 last year. EBITDA around 23 million sec versus 29.6 and margin down to 10.7 and versus 14.3 margin last year we have significant effects in in in the quarter as tim highlighted both the translation part but the revaluation part has hit different segments differently so Whilst we have for the group a positive of five, we actually have a negative in the Nordic segment, but positive more in the European segment. So FX or EBITDA would have been on par or better than last year's EBITDA had we not had the FX in the segment. So Nordic's doing quite well operationally. Looking at Europe, we can see here positive here actually that order intake started to grow and that we also see positive order intake in development in US dollar. Europe has been the segment lagging in the turnaround and we're positive to see that this is is changing and in US dollars, even though we have to say that there is uncertainty in a number of our markets, also in Europe, not just in the US from the tariff situation and what this may impact the general demand sentiment. So some hesitation in the market, but still positive that we are showing growth on the order intake. And some countries like Spain and Benelux have been more clear in their turnaround. if we look upon net sales we are here still lagging behind we're down seven percent in swedish kronor and organically if you then take away the impact of the acquisitions we're actually in swedish kronor down still 18 versus last year or nine percent in us dollar and there are here of course there's one part which is the time lag between order intake development which is positive and when it translates into revenue and we can see that say the the markets where we are still sort of trailing behind primarily are some of the bigger ones like germany italy and uk but hopefully that order intake trend will start to move the needle here as well so ebita is down quite significantly to 33.6 versus 56.7. And it corresponds to a margin of 7.6 versus 12.0. And so the decrease is say a big portion of this is coming from the revenue further enhanced by the effects, but then also some product mix and pricing. If we then look on North America here, I think we're doing quite okay. Order intake is showing a big decrease versus last year. Beside FX, there's also here quite a bit of a kind of timing activity of larger orders. We were up 18% versus prior year. So if you actually look upon the full year, we are 9% up in US dollar. So it's more some part of it, this is timing. But there is also a little bit of that anticipation or hesitation in the market. from the from from from pending on the the tariff situation and also to remember is that the tariffs are not booked in the order intake as they are only visible or only become known when they are actually imported into the concrete products so we will have tariff showing up as part of net sales but not in our order intake If we look upon net sales here based on the order backlog we've had, we've had a good sales increase. We're up 12% to 225 million sec versus last year of 200. And here we've been successful in transferring tariffs to customers, but we're also very well positioned to benefit from our global supply base. I mean, NCAB has over the years invested in building a factory network also outside China in various parts of Asia and other parts of the world. And this is a big strength for us right now, being able to help customers who may want to shift their supply. Right now, there's still a lot of discussions ongoing and many customers still waiting a little bit because there are still a lot of the tariffs that are up for discussion and are not confirmed. And since moving production is a big step for many of our customers, it means that many are in the kind of holding position to make those switches. If you look at the beta, we are up to 32 million SEC, up versus 28.1 last year, and our beta margin stable at 14.2, up then from quarter one and on par with last year's 14.1%. If we then look finally on our East segment, also here positive to see that we see growth in order intake despite the FX movement. So the order taking US dollar is up a full 12%. And I think we are, the market is starting to grow in high tech. And I think it's, we are able to capitalize on our supply base. We have a strong network of factories in this area and are able to sort of provide good service to customers. Net sales decreased 2% to 54 million SEC, but in US dollars, we're up 7% in revenue. And our EBITDA is down a little bit to 9.5 versus 11, but we're still a very healthy EBITDA margin of 17.4. And this is a little bit of a mixed situation. And I think we continue to be able to drive high margins since our East segment is the area where maybe we are doing more engineering support than other regions for high-tech applications. Over to you, Tim.