Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2013/14 Earnings Presentation
19 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 24, 2013
Slide 1: Interim Report Q2 2013/14
Interim Report Q2 2013/14 Period 1 April – 30 September 2013 24 October 2013 Jörgen Wigh, President & CEO Bengt Lejdström, Chief Financial Officer
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 10 profit centres 7 profit centres 9 profit centres 6 profit centres 6 countries 5 countries 4 countries 2 countries Technology group in expa
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • Enclosures for electronics • Electrical connection systems • Digital image/technical security • Niched steel products • Lighting control • Electrical security • Design software, access- and • Compone
Slide 4: Divisions: share of revenue and operating profit
Share of 2013/14 Division 28% 18% Electronics Offers specialised products in embedded technology, industrial wireless communication, RFID and lighting control. Revenue Operating profit Share of 2013/14 Division Mechatronics 31% 46% Offers electric connection systems, electric installation materials,
Slide 5: Business situation
Interim Report Business situation The business situation was stable overall during the quarter. The slow improvement reported earlier became somewhat stronger in early autumn. Net revenue for the second quarter increased by 4 percent. Organic growth in sales measured in local currency was -2 p
Slide 6: Second quarter 2013/14
Interim Report Second quarter 2013/14 July - September 2013 Net revenue increased by 4 percent to MSEK 577 (556). Organic growth in sales measured in local currency was -2 percent. Operating profit increased by 9 percent to MSEK 58 (53). This brought the operating margin to 10.1% (9.5), an a
Slide 7: Outcome by division
Interim Report Outcome by division NET REVENUE 2013/14 2012/13 MSEK 12 months Q2 Q1 12 months Q4 Q3 Q2 Q1 Oct - Sep Apr - Mar Electronics 679 157 170 675 180 172 161 162 Mechatronics 694 185 188 651 165 156 162 168 Communications 787 169 192 785 216 210 178 181 Niche Products 234 66 61 217 58 49 55
Slide 8: Growth organically and via acquisitions
Interim Report Growth organically and via acquisitions Q2 Jul - Sep 2012/13 FX Organic M&A 2013/14 MSEK Revenue 556 -2 -11 34 577 y-o-y -0.3% -2.1% 6.2% 3.8% CM 193 -1 -2 19 209 y-o-y -0.5% -1.1% 9.8% 8.2% EBIT 53 -1 -2 8 58 y-o-y -1.9% -4.5% 15.9% 9.4% EBT 49 -1 1 6 55 y-o-y -2.0% 0.7% 12.4% 11.2%
Slide 9: Important issues going forward
Important issues going forward Continue along the present path. Growth issues increasingly important. Focus on continued value added. Acquisitions – of leading companies in expansive niches. 9
Slide 10: 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 finance items Return on equity of not less than 25% 10
Slide 11: Situation-responsive strategies/measures
Situation-responsive strategies/measures We adapt measures to be taken to each company’s individual situation. Niche orientation involves different situations, opportunities and challenges for each individual company. Focus and flexibility close to markets, customers and suppliers. Dedicated
Slide 12: Focus on value added
Focus on value added Gross margin, % Focus on adding value 31.8 and gross margins. 30.5 Goal formulation 28.0 29.0 26.3 26.5 Training 24.5 25.3 20.8 21.2 Phase-out of products with low margins. Higher proportion of proprietary products. Acquisition of businesses with higher 04/05 05/06 0
Slide 13: Broadening operations
Broadening operations Distribution of consolidated sales, percent 3 3 9 7 13 Service and other 13 Systems integration 13 Niche production 30 Proprietary products Value-adding trade 62 47 2006/07 R12 2013/14 13
Slide 14: Acquisitions
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) 2010 Norwesco AB (Mechatronics) Three acquisitions during SwedWi
Slide 15: Asept
Asept Asept is a niched product company that offers dispenser systems used primarily for liquid food products. The patented products are found among food producers, restaurant chains and others with a need for customised packaging and dispenser solutions. Asept is the market leader in its nich
Slide 16: Asept – recorded results
Asept – recorded results MSEK, adjusted for exchange rate* Income Statement Financial year: Jan - Dec 2009 2010 2011 2012 Revenue 58.5 60.0 55.3 64.7 Operating profit (EBIT) 15.2 15.3 15.4 14.1 EBIT margin, % 26.0% 25.5% 27.9% 21.8% * USD and EUR are normalized to the 2012 average level against the
Slide 17: Revenue and profit: result after finance items
Revenue and profit Moving 12-month quarterly data Net sales Result after finance items 2 500 200 Result after finance items, MSEK 2 000 Net sales, MSEK Operative improvements 150 1 500 Acquisitions (product companies) 100 1 000 Recovery Action program Acquisitions during recession 50 500 Decentralis
Slide 18: Lagercrantz today
Lagercrantz today Stable platform built on a well-functioning business concept and a number of strong market positions in interesting niches. Growing proportion of proprietary products allows for higher margins and gives more legs to stand on. Decentralisation makes for committed employees. St
Slide 19: Thank you!
Lagercrantz Group Thank you!