Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2012/13 Earnings Presentation
22 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 25, 2012
Slide 1: Interim report Q2 2012/13
Interim report Q2 2012/13 1 April 2012 – 30 September 2012 (6 months) 25 October 2012 Jörgen Wigh, President and CEO Bengt Lejdström, CFO
Slide 2: Technology group with leading positions in niches
Introduction to Lagercrantz Group Technology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 9 profit centres 7 profit centres 9 profit centres 5 profit centres 7 countries 5 countries 4 countries 2 countries Technology group in electro
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • Embedded electronics • Electrical connection systems • Digital image transmission • Niched steel products • Lighting control • Electric security technology/technical security • Components for conveyo
Slide 4: Business conditions
Interim report Business conditions The improvement in earnings is explained by a growing proportion of proprietary products and the result of acquired businesses. Market demand was stable overall during the period in the Scandinavian countries, but marginally lower in Finland and Germany. The market
Slide 5: Second quarter 2012/13
Interim report Second quarter 2012/13 July–September 2012 Net revenue increased by 3 % to MSEK 556 (539) Operating profit increased by 18 % MSEK 53 (45) Operating margin reached 9,5 % (8,3), which is the highest margin so far for a single quarter. Profit after finance items increased by 19 % to MSEK
Slide 6: First half year 2012/13
Interim report First half year 2012/13 April–September 2012 Net revenue for the first six months increased by 3 percent to MSK 1,122 (1,094). Operating profit increased by 13 percent to MSEK 102 (90). The operating margin increased to 9.1 percent (8.2). Profit after finance items increased by 15 per
Slide 7: Revenue and profit
Revenue and profit Rolling 12 months, quarterly data Nettomsättning Net sales Resultat efter Profit after finansnetto finance items 2 500 200 180 2 000 160 Profit after finance items 140 Net Sales, MSEK Operational improvements 1 500 Acquisitions 120 (product companies) 100 1 000 80 Recovery Acquisi
Slide 8: Divisions: share of turnover and operating profit
Share of 6 mon. 2012/13 Division 26% 19% Electronics Offers special products in embedded electronics, industrial wireless communication, RFID and lighting control. Turnover Operating profit Share of 6 mon. 2012/13 Division Mechatronics 32% 39% Offers electrical connection systems, electrical install
Slide 9: Results by division
Interim report Results by division NET SALES 2012/13 2011/12 MSEK 6 months Q2 Q1 Q4 Q3 6 months Q2 Q1 Apr - Sep Apr – Sep Electronics 298 149 149 158 147 301 152 149 Mechatronics 355 174 181 199 197 374 192 182 Communications 359 178 181 203 188 348 169 179 Niche Products 110 55 55 42 37 71 26 45 Pa
Slide 10: Organic growth and growth via acquisitions
Interim report Organic growth and growth via acquisitions Apr – Sep TSEK 2011/12 FX Organic M&A 2012/13 Net sales 1 094 -21 -17 66 1 122 y-o-y -1,9% -1,5% 6,0% 2,6% CM 315 -5 1 32 343 y-o-y -1,6% 0,3% 10,2% 8,9% EBIT 90 -1 1 12 102 y-o-y -1,1% 1,1% 13,3% 13,3% 10
Slide 11: Acquisitions
Interim report Acquisitions 2006 Nordic Alarm (Communications) Elpress-gruppen (Mechatronics) K&K Oy (Communications) 2007 Direktronik (Communications) System Solution AS (Electronics) 2008 CAD Kompagniet A/S (Communications) Cobs AB (Communications) Five acquisitions 2010 Norwesco AB (Mechatronics)
Slide 12: Plåt & Spiralteknik
Interim report Plåt & Spiralteknik Plåt & Spiralteknik (PST) is a niched player PST develops, manufactures and markets shaftless spiral conveyors. Customers are found in biofuel handling, among sewage treatment plants, sawmills and in the recycling industry. PST has annual sales of more than MSEK 40
Slide 13: Thermod
Interim report Thermod The Thermod companies consists of Thermod AB and Ampol Serwis Sp.zo.o., with its subsidiary Thermod Polska Sp.zo.o. The Thermod companies develop, manufacture and sell niched inner doors made of high- quality durable fiberglass laminate for rooms with high demands for hygiene
Slide 14: Vanpee
Interim report Vanpee The Vanpee companies, includes Vanpee AB and Vanpee Norge AS. The Vanpee companies are value-adding distributors to the lighting industry, with leading component suppliers in the portfolio. Customers are found primarily among light fitting manufacturers, wholesalers and install
Slide 15: Important issues going forward
Important issues going forward Follow through the strategic focus Continue to broaden operations. Focus on adding value. Acquisitions Adjust policies and actions to the situation of each company Support the fine development of certain entities. Increased vigilance against changes in orders, prospect
Slide 16: Vision and goals for Lagercrantz
Vision and goals for Lagercrantz Leading supplier of value-creating technology with market-leading positions in expansive industries Annual growth of not less than 15 % profit after finance items Return on equity of at least 25% 16
Slide 17: Broadening of operations
Broadening of operations Share of consolidated sales, percent 3 4 9 5 Service & Other 13 15 System integration 13 Niche production 28 Proprietary products Trading 62 48 2006/07 Rolling 12, Sep 2012 17
Slide 18: Focus on value added
Focus on value added Gross margin, % 30,6 Focus on value creation and 28,0 29,0 26,3 26,5 gross margins. 24,5 25,3 20,8 21,2 Goal-setting Training Phasing out products with low margins. Increased element of proprietary products. 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Acquisition of bu
Slide 19: Acquisitions
Acquisitions Continued important part of Lagercrantz’ growth strategy. Supplementary acquisitions and new areas. Continued focus on product companies. Strong balance sheet, good quality and quantity concerning possible acquisitions. Dedicated organization in the Nordic countries. 19
Slide 20: Situation aligned strategies / actions
Situation aligned strategies / actions Niche specialization means different situations, opportunities and threats Different product groups, business models, geographies, segments and retail markets. Risk diversion. Business model with 30 autonomous companies Focus, flexibility, close to markets, cus
Slide 21: Lagercrantz today
Summary Lagercrantz today Well functioning business concept and a number of strong market positions in interesting niches. Decentralization generates dedicated employees. Policies and measures to adapt to the prevailing situation. Take-off with a new division. Increased share of own products allows
Slide 22: Thank you!
Lagercrantz Group