Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2008/09 Earnings Presentation
21 slides from Lagercrantz Group Ab Class B's earnings presentation, May 13, 2009
Slide 1: Year-end Report 2008/09
Year-end Report 2008/09 13 May 2009 Jörgen Wigh, President & CEO Niklas Enmark, Executive Vice President & CFO
Slide 2: Lagercrantz today
Lagercrantz today Value-creating technology companies with market-leading positions in niches Lagercrantz Group Electronics Mechatronics Communications 9 profit centres 5 profit centres 11 profit centres 9 countries 5 countries 4 countries Beijing Hong Kong Technology trading group in elechtronics
Slide 3: Divisions and product areas
Divisions and product areas Division Division Division Electronics Mechatronics Communications • Industrial wireless communication • Customized cable harnesses • Video conferencing, CCTV, technical • Embedded electronics • Electrical connection systems security • Electro mechanics, passive and conne
Slide 4: Strategic development
Strategic development From To • Value-creating technology trading • Pan-European component group distributor • Electronics, Electric and • Electronics Communication (High voltage, Technical security) • Large-scale operations • Autonomous units, decentralization and management by objective • Increase
Slide 5: Net revenue and operating profit
Net revenue and operating profit (before items affecting comparability) MSEK MSEK 2500 150 2000 120 1500 90 1000 60 500 30 0 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Nettomsättning Rörelseresultat 5
Slide 6: Niche focus gives diversification of markets, customers and geography
Niche focus gives diversification of markets, customers and geography Operations by… …market segment …market channel …business type Power gen and electric distrib 19% Electronics 16% Trade, hardware 45% Construction 11% Proprietory products 17% Telecom 10% Dirext to end customer 39% Trade, software
Slide 7: 2008/09 financial year
2008/09 financial year April–March Net revenue amounted to MSEK 2,138 (2,172) Acquired businesses contributed MSEK 53 Operating profit amounted to MSEK 126 (127) not including items affecting comparability: The operating margin was 5.9 percent (5.8) Forceful action to reduce costs and work
Slide 8: 2008/09 financial year (cont'd)
2008/09 financial year (cont’d) April–March Cash flow from operating activities amounted to MSEK 137 (120) corresponding to SEK 6.15 (5.17) per share Net loan liability as of 31 March 2009 amounted to MSEK 78 (93) Net debt equity ratio 0.2 (0.2) Equity ratio was 49 percent (44 percent) Equ
Slide 9: Fourth quarter 2008/09
Fourth quarter 2008/09 January–March 2009 Increased uncertainty, recession and financial crisis marked the second half of the year with lower volumes at many of the Group’s units. Net revenue for the fourth quarter amounted to MSEK 528 (562) Operating profit amounted to MSEK 27 (39) before ite
Slide 10: Outcome by division
Outcome by division Net Sales Operating profit Q4 Q4 12 months 12 months Q4 Q4 12 months 12 months MSEK 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 Electronics 187 195 727 778 7 13 24 38 D:o excl. Items affecting comparability 10 13 28 38 Operating margin (excl Items affecting co
Slide 11: Goals and strategies stand firm
Goals and strategies stand firm Goals Earnings growth of at least 15 percent per year Return on equity of at least 25 percent Strategies Decentralisation and management by objective Strong corporate culture Business acumen Strong positions in niches Increased value added Acquisit
Slide 12: Action program
Action program Personnel reductions General cost restraint Capital expenditure freeze except for replacement investments Merging subsbidiaries Offices in the UK and Switzerland integrated with other units Capacity reductions in manufacturing businesses Lower inventories New routines
Slide 13: Outlook for 2009/10
Outlook for 2009/10 Continued recession with pressure on our sales volumes is the most likely scenario. Still no improvement in the state of the market, even though some macro-economic signs point to a stabilisation. The markets developement will be followed closely by each unit. Further actio
Slide 14: Lagercrantz Group's model in times of downturn
Lagercrantz Group’s model in times of downturn ~ 25 niched businesses with varying business models in many geographic markets gives good risk diversification Small, focused units, proximity to customers and markets create flexibility and the ability to make prompt decisions High proportion of
Slide 15: Lagercrantz Group
Lagercrantz Group
Slide 16: Electronics
Division Share of 2008/09 Electronics 34% 20% Value-adding distributor of niche components and systems in electronics. Sales based on customised solutions where components are designed into customers’ products. Revenue Operating profit News for the year: Roll-out of ISIC’s new New venture by IWS in
Slide 17: Mechatronics
Division Share of 2008/09 Mechatronics Customised cable harnesses for the electric and electronics industries in the Nordic Region, producer of electric connection systems and value- 29% 38% adding distributor of electromechanical, passive components and Revenue Operating profit connectors. News for
Slide 18: Communications
Division Share of 2008/09 Communications •Video conferencing solutions, infrastructure CCTV and technical security. 37% 42% •Value-adding niche distributor of software. •Value-adding distributor of access products for telecom and broadband networks. Revenue Operating profit News for the year: Contin
Slide 19: Decentralisation and management by objectives
Decentralisation and management by objectives Successful benchmarking between units 6% 45 % ROS 15 % Margin P/WC Profitability REX Earnings growth Strategy and action adapted to conditions in each business unit Note: ROS Profit margin R/RK Return on working capital REX Earningsgrowth 19
Slide 20: Focus on margins
Focus on margins Strong gross margins, % Continued focus on gross margins 25.3 26.2 Higher margin business constitutes a 24.5 growing proportion of consolidated 20.8 21.2 revenue Phase-out of standard components and higher proportion of value-adding products, especially in division Electronics
Slide 21: Acquisitions – important part of the strategy
Acquisitions – important part of the strategy Goal of three to five acquired companies per year Two acquisitions during the year: COBS AB and CAD Kompagniet A/S Strong balance sheet makes for opportunities when the market changes Equity ratio of 49 percent and a generally strong financial po