Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2016/17 Earnings Presentation
22 slides from Lagercrantz Group Ab Class B's earnings presentation, May 10, 2017
Slide 1: Year-end Report 2016/17
Year-end Report 2016/17 1 April 2016 – 31 March 2017 (12 months) 10 May 2017 Jörgen Wigh, President and CEO Bengt Lejdström, CFO
Slide 2: Techology group with leading positions in niches
Introduction to Lagercrantz Group Techology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 12 profit centres 9 profit centres 14 profit centres 10 profit centres 8 countries 8 countries 5 countries 5 countries Technology group in exp
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • RFID • Electonic connection • Digital imaging/technical • Niched product • LED lighting systems security companies, e.g. steel and • M2M • Custom cable harnesses • Design software, access- guy wire,
Slide 4: Revenues and profits
Year-end Report 2016/17 Revenues and profits Moving 12-month quarterly data Net sales Result after finance items 4 000 400 3 500 350 Result after finance items, MSEK 3 000 300 Net sales, MSEK 2 500 250 Operative improvements 2 000 Acquisitions 200 (product companies) 1 500 150 Action programme Recov
Slide 5: Business conditions
Year-end Report 2016/17 Business conditions The business situation in the Group’s main markets was stable during the financial year, even though the Group’s operations in Denmark reported a slight slowdown. The Group’s German operations performed well and the market development in Finland was po
Slide 6: Interim Report Q4 2016/17
Year-end Report 2016/17 Interim Report Q4 2016/17 1 January – 31 March 2017 (3 months) Net revenue amounted to MSEK 833 (790). Growth in comparable units amounted to 0 percent, measured in local currency. Operating profit (EBITA) increased by 23 percent to MSEK 117 (95). Operating margin (EB
Slide 7: Year-end Report 2016/17
Year-end Report 2016/17 1 April 2016 – 31 March 2017 (12 months) Net revenue amounted to MSEK 3,096 (3,057). Growth in comparable units amounted to -2 percent, measured in local currency. Operating profit (EBITA) increased by 15 percent to MSEK 409 (355). Operating margin (EBITA) was 13.2 pe
Slide 8: Outcome per division
Year-end Report 2016/17 Outcome per division NET SALES 2016/17 2015/16 MSEK 12 mths Q4 Q3 Q2 Q1 12 mths Q4 Q3 Q2 Q1 Apr - Mar Apr - Mar Electronics 834 223 216 193 202 838 202 213 210 213 Mechatronics 1 003 259 241 223 280 1 007 247 225 254 281 Communications 630 177 184 135 134 719 175 216 147 181
Slide 9: Business conditions - comments by division
Year-end Report 2016/17 Business conditions - comments by division Electronics The division’s companies in lighting control and LED lighting continued to perform well as did the division’s German electronics distribution unit. The Danish unit in marine electronics saw an improved market situation to
Slide 10: Cash Flow
Year-end Report 2016/17 Cash Flow Financial year Financial year MSEK 2017 2015/16 Operating activities Profit after financial items 351 307 Adjustments for paid taxes, items not included in cash flow, etc. 17 -18 Cash flow from operating activities before changes in 368 289 working capital Cash flow
Slide 11: Important issues going forward
Important issues going forward Continue along the present path. Situation-responsive strategies/ measures in each company. Continued focus on value added. Acquisitions – of leading companies in expansive niches. 11
Slide 12: 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% 12
Slide 13: Focus on value-add
Focus on value-add Focus on adding value 36.7 and gross margins Gross margin, % 34.8 Setting goals 31.6 32.1 Training 30.5 28.0 29.0 Customisation 25.3 26.3 26.5 24.5 Service 21.2 Support Phasing-out products with low margins Higher proportion of proprietary products 05/06 06/07 07/0
Slide 14: 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 9 6 5 7 6 6 5 5 9 8 8 12 11 11 12 15 13 14 13 13 13 13 Proprietary products 33 32 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integration 48 49 38
Slide 15: Acquisitions
34 acquisitions since 2006, including: Acquisitions 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) Focus on acquiring leading Leteng AS (Communications) Vanpée & Westerberg A/S (Electronics) companies in expansive niches. 2011 Capax (inkråmsförvärv Electronics) Svensk Stålinredning A
Slide 16: E-Tech Components Ltd, and Apparatenfabriek Bereila B.V.
E-Tech Components Ltd, and Apparatenfabriek Bereila B.V. E-Tech is a distributor in the UK of cable accessories and products, electrical installation and related areas. The company is currently a distributor for Lagercrantz subsidiary Elpress AB’s products in the UK. E-Tech generates annual sa
Slide 17: Exilight Oy
Exilight Oy Exilight develops, manufactures and markets emergency lighting systems, primarily to the building sector. Customers consist primarily of installation companies and wholesalers. The company’s operations are based in Tampere and Helsinki and it generates annual sales of about MEUR 2.
Slide 18: Skomø A/S
Skomø A/S Skomø develops, manufactures and markets graphic custom- designed imaging materials. Customers consist of car dealers, real estate agents and retail businesses in Denmark. The company’s operations are based in Ebeltoft in Jutland and generates annual sales equivalent to approx. MDKK
Slide 19: GasiQ AB
GasiQ AB The company develops and sells products, which are used in gas welding and soldering. Customers are gas companies, wholesalers and distributors. GasiQ’s head office is located outside Gothenburg Generates annual sales of about MSEK 45 with good profitability. Part of Lagercrantz G
Slide 20: Kondator AB
Kondator AB Kondator develops and markets ergonomic, computer-related accessories, which are primarily used in offices. Customers consist mainly of office furniture manufacturers, resellers of office furniture and specialised resellers in the ergonomics field. The company’s operations are base
Slide 21: Financial overview
Financial overview 11/12 12/13 13/14 14/15 15/16 16/17 Net Sales 2 265 2 328 2 546 2 846 3 057 3 096 EBITA 192 223 256 295 355 409 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% EBT 171 200 230 265 307 351 EBT growth 25% 17% 15% 15% 16% 14% Return on Equity 22% 24% 24% 24% 25% 25% Earnings per share 1.88
Slide 22: Thank you!
Lagercrantz Group y Thank you!