Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q4 2018/19 Earnings Presentation
21 slides from Lagercrantz Group Ab Class B's earnings presentation, May 9, 2019
Slide 1: Year-end Report Q4 2018/19
Year-end Report Q4 2018/19 April 2018 – March 2019 (12 months) May 9, 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 14 profit centres 10 profit centres 15 profit centres 13 profit centres 8 countries 8 countries 5 countries 6 countries ◼ Technology group in ex
Slide 3: Revenues and profits
Year-end report 2018/19 Revenues and profits Rolling 12 months, quarterly data Net sales Result after financial items 4 500 450 4 000 400 Result after financial items, MSEK 3 500 350 Net sales, MSEK 3 000 300 Organic growth 2 500 More acquisitions 250 2 000 200 Operational improvements Acquisitions
Slide 4: Business conditions
Year-end report 2018/19 Business conditions ◼ Business conditions on all main markets in the Nordics and Northern Europe continue to be positive. Also, the export sales to Europe, USA and China has improved. ◼ The business conditions continued to be strong for most units in all divisions, where sale
Slide 5: Q4 2018/19 January – March 2019
Year-end report 2018/19 Q4 2018/19 January – March 2019 ◼ Net revenues increased by 13% to MSEK 1,078 (954). ◼ Organic growth was 9% (excl FX) and acquired businesses contributed with MSEK 21. ◼ Operating profit (EBITA) increased by 20% to MSEK 153 (128). ◼ Operating margin (EBITA) was 14.2% (13.4).
Slide 6: FY 2018/19 April 2018 – March 2019
Year-end report 2018/19 FY 2018/19 April 2018 – March 2019 ◼ Net revenues increased by 15% to MSEK 3,932 (3,410). ◼ Organic growth was 7% (excl FX) and acquired businesses contributed with MSEK 201, 6%. ◼ Operating profit (EBITA) increased by 19% to MSEK 519 (436). ◼ Operating margin (EBITA) was 13.
Slide 7: Outcome per division
NET SALES 2018/19 2017/18 MSEK Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electronics 288 245 234 231 246 215 214 216 Mechatronics 288 278 267 289 272 268 236 257 Communications 252 247 196 223 222 218 161 185 Outcome per division Niche Products 250 241 198 205 214 187 164 136 Parent Company/consolidation - - - - - -
Slide 8: Of importance ahead
Of importance ahead ◼ Continue on the chosen path. ◼ Strategies and measures adjusted to the situation in each company. ◼ Continued focus on organic growth and value added. ◼ Acquisitions – of leading companies in expansive niches. 8
Slide 9: Vision and goals for Lagercrantz
Vision and goals for Lagercrantz Leading supplier of value- adding technology 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%. 9
Slide 10: Electronics
Share of 2018/19 Division 25% 18% Electronics Offers special products and embedded solutions, industrial wireless communications, RFID, LED lighting control. Net Sales EBITA 10
Slide 11: Mechatronics
Share of 2018/19 Division Mechatronics 29% 31% Offers electrical connection systems, installation materials, electrics components- and electromechanical products, enclosures and cable harnesses. Net Sales EBITA 11
Slide 12: Communications
Division Share of 2018/19 Communications 23% 24% Offers products, systems, services and support within network access and control, software and technical security. Net Sales EBITA 12
Slide 13: Niche Products
Share of 2018/19 Division Niche Products 23% 27% Niche-oriented product companies with strong market positions, either through strong product portfolios or geographcially Net Sales EBITA 13
Slide 14: Measure, compare, challenge
Measure, compare, challenge ROS* > 20%: 12 units Focus on growth, 15 – 20%: 12 units > 10% maintaining profitability 10 – 15%: 6 units Focus on profitability 6 – 10% 6 – 10%: 7 units and growth 3 – 6% 3 – 6%: 6 units Focus on < 3% profitability < 3%: 5 units *) ROS= Return on sales = (Earnings Befor
Slide 15: Focus on value-add
Focus on value-add ◼ Focus on adding value and gross margins ◼ Setting goals Gross margin, % ◼ Training 36.7 36.3 36.7 34.8 ◼ Customisation 30.5 31.6 32.1 ◼ Service 28.0 29.0 ◼ Support 25.3 26.3 26.5 24.5 ◼ Phasing-out products 21.2 with low margins ◼ Higher proportion of proprietary products ◼ Acqu
Slide 16: 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 3 6 5 6 6 5 5 4 4 9 9 8 8 7 11 11 10 9 12 15 14 12 13 13 13 13 13 Proprietary products 29 29 33 32 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System I
Slide 17: Acquisitions
44 acquisitions since 2006, including : Acquisitions 2012. Idesco Oy (Electronics) Plåt & Spiralteknik AB (Niche Products) Vanpée AS och AB (Electronics) Thermod-gruppen (Niche Products) ◼ Focus on acquiring leading Elkapsling AB (Mechatronics) companies in expansive niches. 2013. Frontwall (asset d
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: 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 20: Financial overview
Financial overview 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Nets Sales 2 265 2 328 2 546 2 846 3 057 3 096 3 410 3 932 EBITA 192 223 256 295 355 409 436 519 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% 12.8% 13.2% EBT 171 200 230 265 307 351 358 431 EBT growth 25% 17% 15% 15% 16% 14% 2% 20% Retu
Slide 21: Thank you!
Thank you! www.lagercrantz.com