Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2009/10 Earnings Presentation
19 slides from Lagercrantz Group Ab Class B's earnings presentation, May 11, 2010
Slide 1: Year-end report 2009/10
Year-end report 2009/10 April 1 2009–March 31 2010 May 11 2010 Jörgen Wigh, President and CEO Niklas Enmark, Executive Vice President and CFO
Slide 2: Value-creating technology trading company with market-leading positions in niches
Introduction Value-creating technology trading company with market-leading positions in niches Lagercrantz Group Beijing Electronics Mechatronics Communications Hongkong 6 result units 6 result units* 9 result units 5 countries 5 countries 3 countries * Incl. Norwesco AB as of 20010/11 Technology
Slide 3: Divisions
Introduction Divisions Division Division Division Electronics Mechatronics Communications • Industrial wireless communication • Electrical connection systems • Video conferencing, CCTV, technical • Embedded electronic systems • Customised cable harnesses security • Electro-mechanical systems, materi
Slide 4: Current business trading
Interim Report Current business trading The recession has affected Lagercrantz and the decline in order volume has been in the order of 20%. An improvement of the business climate has been seen during the latter part of the financial year. During the financial third quarter the business climat
Slide 5: Fourth Quarter 2009/10
Interim Report Fourth Quarter 2009/10 January–March 2010 Net revenue amounted to MSEK 435 (528) Equivalent to a volume drop of 18%, i.e. slightly better than yearly average Operating profit amounted to MSEK 22 (10) and operating profit to 5.1% (1.9) Gradually increased operating profit durin
Slide 6: Financial year 2009/10
Interim Report Financial year 2009/10 April 2009–March 2010 Net revenue for 2009/10 amounted to MSEK 1 720 (2 138) Decreased with 20% due to weak economic situation and restructuring of operations Operating revenue for the year amount to MSEK 67 (105) Operating margin 3.9% (4.9) Items affe
Slide 7: Action program with focus on cost and capital employed
Interim Report Action program with focus on cost and capital employed Focus areas No. of employees Personnel reductions, restraints Sep/Oct 809 concerning cost and investments 2008 -25 % Restructuring, aggregations and Mar 608 some closing down of operations 2010 Focus on gross margins Focus
Slide 8: Electronics
Division Share of 2009/10 Electronics 32% 21% 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 : Twelve months 2009/10 • Stabilized sales for the majority
Slide 9: Mechatronics
Division Share of 2009/10 Mechatronics Customised cable harnesses for the electric and electronics industries in the Nordic Region, producer of electric connection systems and value-adding 30% 37% distributor of electromechanical, passive components and connectors. Revenue Operating profit Twelve mo
Slide 10: Communications
Division Share of 2009/10 Communications •Video conferencing solutions, infrastructure CCTV and technical security. 38% 42% •Value-adding niche distributor of software. •Value-adding distributor of access products for telecom and broadband networks. Revenue Operating profit Twelve months 2009/10 New
Slide 11: Results by division
Interim Report Results by division Net revenue Operating profit Q4 Q 4 12 months 12 months Q4 Q 4 12 months 12 months MSEK 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09¹ Electronics 135 187 552 727 7 7 17 24 Operating margin - - 5.2% 3.7% 3.1% 3.3% Mechatronics 124 140 511 628 8 4
Slide 12: Strategy
Future Strategy Broadening of operations Decentralisation and management by objectives Focus on value added Acquisitions 12
Slide 13: Niche focus means risk diversification
Broadening of operations Niche focus means risk diversification Revenue during the 2009/10 (2008/09) financial year by... …market segment …market channel …type of business Electronics 19 % (16) Power and distribution 17% (19) Trade hardware 40% (45) IT 12% (9) Own products 20% (17) Building and cons
Slide 14: Benchmarking among units
Decentralisation and management by objectives Benchmarking among units 6% 45 % 15 % Profit margin P/WC Profitability Profit growth Strategy and measures are adapted to conditions for each Note: business unit ROS Profit margin P/WC Return on working capital REX Profit growth 14
Slide 15: Higher gross margins
Focus on value added Higher gross margins % Continued focus on gross margins 24.5 25.3 26.3 26.5 Increase in the proportion of businesses with higher margins 20.8 21.2 Phase-out of standard components with low margins Project with goals to strenghten margins Increase element of system intr
Slide 16: Acquisitions
Acquisitions An important element of Lagercrantz 2000 Elfac and Enkom (Mechatronics) Group’s growth strategy 2001 KablageProduktion i Västerås (Mechatronics) Higher level of activity now and growing 2002 Unitronic (Electronics) interest 2003 ISG Systems (Communications) guarded attitude in 200
Slide 17: Norwesco
Norwesco Lagercrantz has acquired all shares in Norwesco AB. Norwesco develops, produces and market a niche assortment of electro- mechanical products for electronic and construction businesses. Norwesco has sales of MSEK 50 with good profitability. The company headquarter is in Täby and pro
Slide 18: Lagercrantz today
Conclusion Lagercrantz today Strong positions in niches with broad diversification in several product areas and market segments. Action programme completed. More stable development of sales with positive signals within certain areas. Maintained gross margin. Good opportunities for acquisit
Slide 19: Thank you!
Lagercrantz Group