NCAB Group AB (publ)

Thank you very much and welcome all to our Q4 release. First, a few bit of information about NCAB. So we at NCAB, we are a supplier of printed circuit boards and those are the products that you see to the left of this slide, which basically creates the foundation in any electronic or intelligent product. So our customers are the ones placing components on the boards that could be either OEM customers or it could be contract manufacturers. Our focus is on printed circuit board for demanding customers. We are focusing on customers with high demands in terms of quality, technology, and we aim to supply them with zero defect products produced also sustainably, giving them the most competitive offer by offering an overall lowest total cost. We are aiming to be the number one PCB supplier wherever we are, and we are already the globally leading producer of printed circuit boards worldwide. We are operating with a local presence in around 19 countries. We are some 660 specialists in the group and we have no in-house manufacturing, but are working with a network of factories and our main factories, which are currently around 34, make up around 90% of our total deliveries. Besides looking at the demanding customers, we're also focused on the high mix, low volume segments of the market. So we are not involved in super high volume applications like consumer electronics, mobile phones or computers, but more typically industrial products. So products where generally the final product has a significantly higher value. The printed circuit board is a small part of the building material. Demands, however, can be very hard in terms of quality and environmental ability to withstand and also even if these our customers in these segments are very quite often large globally leading companies their spend on printed circuit boards is relatively limited and therefore they struggle both to have the internal expertise to manage this commodity but also to even get access to the leading factories and this is an area where we can help them and also by combining the spend of our portfolio of customers we can also get very good terms and and earn the margin on our business We have been going through a quite significant volatile market over the last five years. As you can see, I mean, overall, this is a globally long-term growing PCB market, as you can see in the green bars. We saw a tremendous spike or growth in the market following the pandemic. And we have for a few years been living off the backlash of that where inventories in the supply chain were full of product produced or semi-produced products at our customers and our customers' customers. We are happy to see that in 2025, this is starting to turn around and we can see that growth in our order intake also for the full year coming through and even more so in the fourth quarter. We also have a good mix in our portfolio. We are not biased on any specific segment, but I think we've seen in this year automotive has been one of the segments where there's still been some challenges. Whereas, however, we've seen good continued progress in areas like defense, power and medical applications. We're also handling the geopolitical risks by an increasingly diversified supply base. So we've been continuing to expand our sourcing in Asia outside China and making good progress here. And I think we expect that to continue to grow also in 2026. So coming more closely into Q4, and I think we're very pleased to see that we have good order intake and net sales growth in US dollars. We trade predominantly in US dollars and it's also both the market recovery, but also it's sequentially growth order intake for us during the last three quarters, which is quite positive and not just year over year. um we can see this as a general recovery across all of our regional segments and we see accelerated growth in certain areas or industries like defense medtech and power energy there is to the order intake an impact also here from some early ordering by customers we've seen as the market is growing and expanding especially driven globally by data center applications Lead times are extending and we also see prices going up now at the beginning of 2026 and therefore we also see customers who have the ability to forecast to place early order and that is influencing our order intake growth in the fourth quarter. We estimate that roughly one third of that order intake growth is related to these earlier order placements. Very good recovery in our EBITDA versus 2024 where we had a weak ending of the year. And I think we see here a good recovery despite a strong FX headwind. It's a combination of our gross margin improving sequentially. We are now basically on level where we were in Q4 2024. but really leveraging the growth now to our overhead structures and with that driving better performance in financial EBITDA. Also, M&A activities have continued. We were able to sign and close with Multiteknik here in fourth quarter. Multiteknik Mönsterkort is a Swedish company based in Gothenburg with a main customer base also in Sweden. It's a company that has a long history from 1975, which also included manufacturing, which was ended in 2008. They are mainly focused on industrial applications, automotive, telecom and medical. Revenue in their financial year 24-25 was approximately 110 million SEK, with NVIDIA just below 20 million. And with that comes 15 new employees, of which eight are in Sweden, five in China and two in Lithuania. And the deal was closed on December 19th. Looking then at Q4 in the numbers, we can see that our order intake is up a strong 20% to 1,092,000,000 SEK versus 907 prior year. That equates to 33% organic growth in US dollars and a book to build of 121. Net sales also grew by 9% in Swedish kronor to 902,000,000 versus 830 prior year. And also here we can see the growth now in organic in US dollars of more than 20%. And with EBITDA, our EBITDA increased to 98.6 versus 71.6 prior year. And now we have an EBITDA margin of 10.9 versus 8% of last year. And the gross margin, as can be seen, is equal to prior year, but having improved sequentially during the year. And you can also see our negative impact from FX in the quarter, which was a full 23 million SEC. And we'll elaborate on that a little bit later. Cash flow was at 22 million versus 45 prior year. Our working capital increased a little bit up versus last year, tied partly to the acquisitions, but also due to some temporary changes that we're doing with implementation of our ERP system. Net profit of 53 million versus 41.5 and EPS of 0.28 versus 0.22 last year. So with that, I give the word to you, Tim.

Thanks, Peter. So if we take a look at the full year, we saw order intake increasing 10% to just above 4 billion. We saw a positive book to bill, especially driven by the second half of the year of 1.09%. While sales increased 3.6% to 3.7 billion SEC versus 3.6 billion SEC the year before, when we look at the organic growth, it was actually 5% in US dollars. The EBITDA margin came out for the year at 10.8% versus 12.4% prior year, mostly impacted by an year at 53 million SEC over 20 in Q4 and that's just a result of FX rates being significantly different in quarter one of 2025. Operating cash flow at 287 million SEC impacted a little bit by the temporary increase in working capital in quarter four and then that all contributed to an earnings per share of 1.1 versus 1.36 in the prior year. board of directors has proposed a dividend of 1.1 sec per share. When we take a look a little bit over time at the gross margin, it's nice to see that we're stabilizing at a high level at 35.1% for 2025. It was a little bit weaker than that in the first part of the year and then developed well in the second half. And it's also nice to see the top line starting to grow as well. So when we take a look at it, we see that order intake increased by 20% in the fourth quarter, but actually for comparable units in US dollars, up 33%. And that wasn't just driven by one particular segment. We saw positive development in all segments. Especially so when you look at it in comparative units in US dollars, which is the typical trading currency in our industry. Net sales followed, but still significantly below where the order intake level is. So up 21% in USD, a positive book to build of 1.2. And there's a couple of particular industries to highlight here with a good positive trend in EV charging, as well as continued positive development in aerospace and defense. When we look at EBITDA, that developed well to 99 million sec in the fourth quarter, which is 72 in prior year. The FX was impacted negatively in that quarter by 23 million sec, which influenced the margin from where it would have otherwise been. Gross margin came in at 35.7, which is just a hair below where it was in the prior year, but slightly higher than quarter three. Acquired companies did have a slightly dilutive effect on gross margins. When we take a look and unpack the FX a little bit, I think it's interesting to look at where the US dollar versus the SEP was. 9.4 versus prior year at 10.8. So what that does for us is that impacts our revenue with basically negative 100 million sec on the top line side, which travels directly down to the gross profit side at minus 40. There's a small revaluation effect of minus 3, but most of it is just that pure translation effect at minus 37. Within our SG&A, though, we have a little bit of a negative hedge against that, so that actually boosted the result a little bit with 17, but the overall effect, you can see, is quite strong at minus 27.

Thank you, Tim. Moving over a little bit more in detail in the segments, starting with Nordics, we see again a continuous strong order intake development here with a growth of 24% in Swedish kronor. Here, though, there is some early order placement which further accelerates this growth. The countries with the most significant increases were Denmark, Finland and Norway. Net sales also grew nicely, even though we had significant FX impact in the markets here. And large drivers here are the defense side, but also the EV charging business, which is resuming after having had a low period during the early part of 2025 and later part of 2024. EBITDA amounted to 36.3 million SEC versus 31 in the prior year and the margin came back up north of 15% to 15.9 versus 15.7 and really the result of good leverage on the net growth offsetting the impact of FX in the quarter. Moving over to our largest segment, Europe, the order intake also here increased. It grew by 13% to 483 versus 428. That's an organic growth in the order intake of 5% in Swedish kronor, but 21% in US dollars. And it's a little bit of a mixed development here in the European segment, but clear positive trends in markets like Spain, Benelux and Germany, which are recovering from a weak end of 24. We can also see net sales growing 10% to 400 million SEK versus 365. Organically, the increase is 3% in Swedish kronor and 19% in US dollars. And the industry's tide connected to automotive is still weak, and that is impacting primarily for us regions like UK and Italy, but we see a recovery in most other areas. The EBITDA increased to 34 million SEC versus almost close to zero in end of Q4 2024. And the margin was now 8.5% versus only 1% in 2024. And still there's also here a negative impact from FX and some product mix on margins. North America, a very strong order intake in the North American business. We grew 31% over what was also a little bit of a weaker fourth quarter 2024 order intake wise, but nevertheless, very strong development. We're making good progress with our new product introduction model that we sort of acquired through phase three and are expanding across our US organization. Strong growth also here in defense, but also related to power applications, auxiliary solutions around our data centers. Even if NCAB is not in the high volume data center market, we can still be participating in parts of the auxiliary systems. Net sales are up 4% to 214 and 19% in US dollars and note here again as before tariffs are included in the revenue but are not registered as part of our order intake as the tariffs are only known when we bring the goods into the US market. Our share of China source products supplying for the US is continuing to decrease and it's now in the low 40s percent. EBITDA decreased to 26 million SEC versus 33, a margin of 12.1% versus 16. It's a bit of timing of costs and also adjusting a little bit to the higher pace that we're seeing in the order intake that has impacted the margin in the fourth quarter. East also here a continued positive development. Order intake growing by 32% to 72 million SEC versus 55 last year. Order intake in US dollars up a whole 49%. And we are capitalizing on the growth in high tech. We're leveraging our supply base where customers who may have been buying direct are now starting to get access, but they can have better access to the market through us. But we're also growing with NCAB global customers growing in China. And there's also here some pre-ordering effect that is also helping the numbers. Net sales grew 7% to 59 million SEC, so decreased 7% versus 63. Also here in US dollars down, but it's more timing of business and deliveries in the different quarters. So our EBITDA is down to 7.5 versus 11 and equivalent to still a healthy margin of 12.7% versus a very strong margin of 17.3 in the end quarter of the prior year. And there is some adverse mix here as well in product mix and pricing impacting the margins.