Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2010/11 Earnings Presentation
18 slides from Lagercrantz Group Ab Class B's earnings presentation, May 10, 2011
Slide 1: Year-end report Q4 2010/11
Year-end report Q4 2010/11 Th period The i d1A Aprilil 2010 2010–31 31 M March h 2011 10 May 2011 Jö Jörgen Wigh, Wi h President P id t and d CEO
Slide 2: Technology company with leading positions in niches
Introduction to Lagercrantz Group Technology company with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications 7 profit units 9 profit units 10 p profit units 6 countries 5 countries 3 countries Beijing Hong Kong Technology trading group in electronics, electrics,
Slide 3: The divisions
Introduction to Lagercrantz Group The divisions Division Division Division Electronics Mechatronics Communications • Industrial wireless communication • Electrical connection systems • Video conferencing, CCTV, technical • Embedded electronic systems • Niche steel products security • Customised cabl
Slide 4: Business situation
Year-end report 2010/11 Business situation The business climate was favourable during the year and most of the Group’s businesses experienced stronger demand than during the preceding year year. Demand in division Mechatronics grew stronger during the fourth quarter, while demand in Electronics
Slide 5: Year-end report 2010/11
Year-end report p 2010/11 April 2010–March 2011 Net revenue increased 18% to MSEK 2,029 (1,720). R Revenue iin llocall currency iincreased dbby 25% 25%. Operating profit amounted to MSEK 147 (67), equivalent to an operating margin of 7.2% (3.9). Profit after finance items grew by 136% to MSE
Slide 6: Organic growth and growth by acquisitions
Year-end report Organic growth and growth by acquisitions April 2010–March 2011 Revenue Profit after finance items 2100 150 1900 205 120 23 1700 104 1500 90 Acquisitions Acquisitions 1300 56 60 1100 Organic Organic 900 growth growth 30 700 1720 1720 58 58 500 0 2009/10 2010/11 2009/10 2010/11 The pr
Slide 7: Fourth quarter 2010/11
Year-end report Fourth quarter 2010/11 January–March 2011 Net revenue for Q4 increased by 27% to MSEK 551 (435). The organic growth rate increased and reached 11% during Q4 (6% during the year). In local currency the organic growth rate increased to 21% during Q4 (13% during the year). Opera
Slide 8: Net revenue and profit by division
Year-end report Net revenue and profit by division Net revenue Operating profit Q4 Q 4 12 mon 12 mon Q4 Q 4 12 mon 12 mon MSEK 2010/11 2009/10 2010/11 2009/10 2010/11 2009/10 2010/11 2009/10 Electronics 166 135 586 552 11 7 30 17 Operating margin - - - 6.6% 5.2% 5.1% 3.1% Mechatronics 182 124 740 51
Slide 9: Strategic development
Future Strategic development From To • Value adding technology group. • Pan Pan-European European distributor of components • Electronics, electrics, communications and adjacent areas • Electronics ((high g voltage, g technical security). y) • Large-scale • Autonomous units, decentralisation and man
Slide 10: Net revenue and profit development since the IPO
Net revenue and profit development since the IPO Moving 12 months by quarter 3 000 150 Net revenue Profit after finance items 130 2 500 nance items 110 evenue 2 000 90 Profit after fin Net re 1 500 70 Recovery Rationalisation Decentralisation, Acquisitions50 1 000 Centralisation ICT Acquisitions, q
Slide 11: Clear goals and vision for Lagercrantz
Clear goals and vision for Lagercrantz Goals Growth of 15% per year of result after finance items. Return on equity of not less than 25% 25%. Vision A leader in value-creating g technology with market-leading positions in niches. 11
Slide 12: Of importance ahead
Of importance ahead Accomplish broadening of operations. Accomplish decentralisation and management by objectives. objectives Focus on value added. Acquisitions. 12
Slide 13: Broadening of operations
Broadening g of operations p Share of consolidated sales, % 3 3 9 6 12 Service and other 13 System integration 13 257 to 507 MSEK Niche production 25 Proprietary products Trade 62 54 2006/07 2010/11 13
Slide 14: Decentralisation and management by objectives
D Decentralisation t li ti and d managementt b by objectives bj ti ROS = Return On Sales (profit margin) 10 % R/WC= Return on Working Capital REX = Profit growth 6% 100 % 3% 45 % 25 % ROS 10 % 15 % Profit margin R/WC 0% P fi bili Profitability REX Profit growth Strategy and measures are adapted to p
Slide 15: Focus on value added
Focus on value added Gross margin, margin % 28.0 Focus on value creation and gross 26.3 26.5 margins. 24.5 25.3 Customisation, development 20.8 21.2 and combinations of different products contribute t ib t tto adding ddi value l iin th the offering. Focus on businessmanship training. Increas
Slide 16: Acquisitions
Acquisitions An important element of Year Acquisition q target g the growth strategy strategy. 2006 Nordic Alarm (Communications) In 2010/11, five companies were Elpress (Mechatronics) acquired with a combined business K&K (Communications) volume l off MSEK 300 300. 2007 Direktronik (Communicati
Slide 17: Lagercrantz today
Summary Lagercrantz today Well-functioning business concept and strategic focus towards increased value added added. A number of strong market positions in interesting niches. Improved business situation – increased volumes, profits and margins. Six interesting acquisitions completed during
Slide 18: Thank you!
Lagercrantz Group Thank you!