Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2019/20 Earnings Presentation
24 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 23, 2019
Slide 1: Interim Report Q2 & H1 2019/20
Interim Report Q2 & H1 2019/20 April – September 2019 (6 months) October 23, 2019 Jörgen Wigh, President & CEO Kristina Elfström Mackintosh, CFO
Slide 2: Technology group with leading positions in niches
Introduction to Lagercrantz Group Techology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 15 profit centres 11 profit centres 15 profit centres 13 profit centres 8 countries 8 countries 5 countries 6 countries ◼ Technology group in ex
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • Electronics components • Electric components and • Technical security • Niched proprietary product • LED connection systems and • Control and access companies • IoT & M2M cable harnesses • Components
Slide 4: Revenues and profits
Interim report 2019/20 Revenues and profits Rolling 12 months, quarterly data Nettoomsättning Net sales Resultat efterfinancial Result after finansnetto items 4 500 450 Result after financial items, MSEK 4 000 400 3 500 350 Net sales, MSEK 3 000 Organic growth 300 More acquisitions 2 500 250 2 000 O
Slide 5: Business conditions Q2
Interim report 2019/20 Business conditions Q2 ◼ Market situation in the Group’s main markets in the Nordics was stable. Some slowdown in the Group’s minor market Germany and UK. Export sales to USA, Asia and the rest of Europe continued to develop well. ◼ The largest units Elpress, R-Con, Asept, ACT
Slide 6: Q2 2019/20 July – September 2019
Interim report 2019/20 Q2 2019/20 July – September 2019 ◼ Net revenues increased by 7% to MSEK 954 (895). ◼ Increase mainly due to acquisitions, where acquired units contributed with MSEK 52. ◼ Operating profits (EBITA) increased by 8% to MSEK 126 (117). ◼ Operating margin (EBITA) was 13.2% (13.1).
Slide 7: H1 2019/20 April – September 2019
Interim report 2019/20 H1 2019/20 April – September 2019 ◼ Net revenues increased by 7% to MSEK 1 969 (1 843). ◼ Organic growth was 2% and acquired businesses contributed with MSEK 88, +5%. ◼ Operating profits (EBITA) increased by 12% to MSEK 256 (229). ◼ Operating margin (EBITA) was 13.0% (12.4). ◼
Slide 8: Outcome per division
NET SALES 2019/20 2018/19 2017/18 MSEK Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Electronics 264 261 288 245 234 231 246 215 214 Mechatronics 266 288 288 278 267 289 272 268 236 Outcome per division Communications 215 226 252 247 196 223 222 218 161 Niche Products 209 240 250 241 198 205 214 187 164 Parent Company
Slide 9: Return on sales by unit
ROS* > 20%: 14 units Focus on growth, 15 – 20%: 10 units > 10% maintaining profitability 10 – 15%: 7 units Focus on profitability 6 – 10% 6 – 10%: 6 units and growth 3 – 6% 3 – 6%: 8 units Focus on < 3% profitability < 3%: 5 units *) ROS= Return on sales = (Earnings Before Taxes/ Sales)
Slide 10: Important issues going forward
Important issues going forward ◼ Adapt strategies, measures and actions in each company. ◼ Focus on growth. ◼ Continued focus on value added. ◼ Acquisitions – of leading companies in expansive niches. 10
Slide 11: Vision and goals for Lagercrantz
Vision and goals for Lagercrantz Leading supplier of value- adding technologies with market-leading positions in several expansive niches. ◼ Annual growth of not less than 15% in profit after financial items. ◼ Return on equity of not less than 25%. 11
Slide 12: Focus on value-add
Focus on value-add ◼ Focus on adding value Gross margin, % and gross margins 36.7 36.3 36.7 36.7 34.8 ◼ Setting goals 31.6 32.1 ◼ Training 30.5 28.0 29.0 ◼ Customisation 26.3 26.5 ◼ Service 24.5 25.3 ◼ Support 21.2 ◼ Phasing-out products with low margins ◼ Higher proportion of proprietary products ◼
Slide 13: Broadening of operations
Broadening of operations Percentage share of Group sales, Moving 12-months based on quarterly data 3 4 4 5 4 4 4 3 3 3 3 3 4 4 6 5 6 6 5 5 4 4 4 9 9 8 8 7 11 11 10 9 9 12 15 14 12 13 13 13 13 13 Proprietary products 29 28 28 33 32 Value adding distribution 41 44 54 50 47 59 57 54 Niche production 62
Slide 14: Acquisitions
45 acquisitions since 2006, including : Acquisitions 2013. Frontwall (asset deal for Steelo, Niche Products) Asept International AB (Niche Products) El-produkter AS (Electronics) 2014. LIAB Load Indicator AB (Communications) ◼ Focus on acquiring leading Precimeter Control AB (Communications) compani
Slide 15: G9
G9 ◼ Danish G9 designs and delivers products for park and urban environments including products such as automatic height-adjustable bollards and barriers and products for water and wetlands. ◼ G9 are located in Randers, Denmark and generate annual revenue of about MDKK 42 with good profitability. ◼
Slide 16: Frictape
Frictape ◼ Finnish Frictape is a leading supplier of safety products for helidecks, primarily landing and permeter nets and Circle and H Lights. ◼ Revenues of approx MEUR 7 of which 99% on exports. ◼ Frictape has its operations close to Helsinki with production in Tallin, Estonia. ◼ Part of the divi
Slide 17: Dorotea Mekaniska AB
Dorotea Mekaniska AB ◼ Dorotea Mekaniska (DMAB) produces and sells amphibian vehicles and tools, for cutting reed and other water plants, by the name Truxor. ◼ The selling is done via 49 sales representatives world wide. ◼ DMAB’s operations are in Dorotea, Sweden and it generates annual revenue of a
Slide 18: Schmitztechnik GmbH
Schmitztechnik GmbH ◼ Schmitztechnik is leading in a number of OEM segments with customer specific silicon, rubber, PUR and industrial plastic products primarily to manufacturers. ◼ The customer base is mainly German. ◼ Schmitztechnik is based in Mönchengladbach with a net sales of around 65 MSEK wi
Slide 19: Financial overview
Financial overview R12 Q2 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Nets Sales 2 265 2 328 2 546 2 846 3 057 3 096 3 410 3 932 4 058 EBITA 192 223 256 295 355 409 436 519 546 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% 12.8% 13.2% 13,5% EBT 171 200 230 265 307 351 358 431 449 EBT growth 25
Slide 20: Thank you!
Thank you! www.lagercrantz.com
Slide 21: Board and Management
Appendix Board and Management Board of Directors Management Jörgen Wigh Kristina Mackintosh Magnus Söderlind Per Ikov Carina Nordlöf Anders Börjesson Anna Almlöf Lennart Sjölund President & CEO CFO Executive VP VP Bus Development Group Controller Chairman of the Board (DK) Ulf Södergren Anna Marsell
Slide 22: The share & owners
The share & owners Owners 2019-09-30 Shares Votes • B share listed on Nasdaq Anders Börjesson & Stockholm, Mid Cap Tisenhult-gruppen 5,7% 29,3% • Ticker: LAGR B SEB Funds 13,9% 9,7% Swedbank Robur Funds 10,6% 7,4% Didner & Gerge Funds 9,1% 6,3% Lannebo Funds 7,4% 5,2% Fidelity Investments 5,1% 3,6%
Slide 23: Comments by division
Interim report 2019/20 Comments by division Electronics EBITA increased by 36% to MSEK 30. ACTE units (DK, NO, SE, PL) and ISIC developed positively during the quarter. Unitronic (DE) displayed a weaker performance and the Vanpee unit and El-produkter did not match the result for comparable period.
Slide 24: Cash flow
Interim report 2019/20 Cash flow Moving 12 Financial year MSEK Oct-Sept 2018/19 2018/19 Operating activites Profit after financial items 449 431 Adjustments for taxes paid, items not included in cash flow etc. 47 11 Cash flow from operating activities before changes in 496 442 working capital Cash f