Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q3 2018/19 Earnings Presentation
23 slides from Lagercrantz Group Ab Class B's earnings presentation, Jan 29, 2019
Slide 1: Interim Report Q3 2018/19
Interim Report Q3 2018/19 April – December 2018 (9 months) January 29, 2019 Jörgen Wigh, President & CEO
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 12 profit centres 8 countries 8 countries 5 countries 6 countries ◼ Technology group in ex
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • Industrial computers • Electric components and • Technical security • Niched product • RFID connection systems • Control and access companies • LED lighting • Infrastructure products systems • M2M &
Slide 4: Revenues and profits
Interim report 2018/19 Revenues and profits Rolling 12 months, quarterly data Net sales Result after financial items 4 000 400 Result after financial items, MSEK 3 500 350 Net sales, MSEK 3 000 300 Organic growth 2 500 250 More acquisitions 2 000 200 Operational improvements 1 500 Acquisitions 150 (
Slide 5: Business conditions
Interim 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 and USA has improved. ◼ The business conditions continued to be strong for most units in all divisions, where sales grew b
Slide 6: Q3 2018/19 October – December 2018
Interim report 2018/19 Q3 2018/19 October – December 2018 ◼ Net revenue increased by 14% to MSEK 1,011 (888). ◼ Organic growth was 7% excl FX and acquired businesses contributed with MSEK 42, +5%. ◼ Operating profit (EBITA) increased by 23% to MSEK 137 (111). ◼ Operating margin (EBITA) was 13.6% (12
Slide 7: 9 months 2018/19
Interim report 2018/19 9 months 2018/19 April – December 2018 ◼ Net revenue increased by 16% to MSEK 2,854 (2,457). ◼ Organic growth was 6% excl FX and acquired businesses contributed with MSEK 179, +7%. ◼ Operating profit (EBITA) increased by 18% to MSEK 366 (309). ◼ Operating margin (EBITA) was 12
Slide 8: Outcome per division
Interim report 2018/19 Outcome per division NET SALES 2018/19 2017/18 2016/17 MSEK Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Electronics 245 234 231 246 215 214 216 223 216 193 Mechatronics 278 267 289 258 247 222 246 259 241 223 Communications 247 196 223 222 218 161 185 177 184 135 Niche Products 241 198 205
Slide 9: Business conditions - comments by division
Interim report 2018/19 Business conditions - comments by division Electronics EBITA increased by 50% in the quarter. The division’s value-adding operations and the Finnish RFID unit strengthened their profits. The recent Danish acquisition within electromechanics and temporary electricity, NST, cont
Slide 10: Important issues going forward
Important issues going forward ◼ Continue along the present path. ◼ Situation-responsive strategies/ measures in each company. ◼ Continued focus on organic growth and value added. ◼ Acquisitions – of leading companies in expansive niches. 10
Slide 11: 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%. 11
Slide 12: Return on sales by unit
ROS* > 20%: 11 units Focus on growth, 15 – 20%: 8 units > 10% maintaining profitability 10 – 15%: 10 units Focus on profitability 6 – 10% 6 – 10%: 5 units and growth 3 – 6% 3 – 6%: 5 units Focus on < 3% profitability < 3%: 8 units *) ROS= Return on sales = (Earnings Before Taxes/ Sales)
Slide 13: Focus on value-add
Focus on value-add ◼ Focus on adding value and gross margins Gross margin, % ◼ Setting goals 36.7 36.3 36.5 34.8 ◼ Training 31.6 32.1 30.5 ◼ Customisation 28.0 29.0 25.3 26.3 26.5 ◼ Service 24.5 21.2 ◼ Support ◼ Phasing-out products with low margins ◼ Higher proportion of proprietary products 05/06
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 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 15: Acquisitions
43 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 16: 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 17: Tormek AB
Tormek AB ◼ Tormek is a leader within sharpening systems for edge tools such as knives, chisels as well as tools for woodcarving. ◼ The customers are mainly craftsmen and others who work with wood. ◼ The company’s products are sold in about 40 countries, with the USA, Germany and Sweden as the large
Slide 18: R-Contracting AB
R-Contracting AB ◼ R-Contracting develops and markets pumping systems for sprinkler installations. ◼ R-Contracting also has some engagements in infrastructure-related pump or hydropower projects. ◼ Most sales take place in Sweden but also some sales in Norway and Denmark. ◼ The company’s operations
Slide 19: Alf Bjurenwall AB
Alf Bjurenwall AB ◼ Bjurenwall is a leader within the cisterns, for storage of water connected to fire sprinkler systems. ◼ Bjurenwall is a supplementary acquisition to R-Contracting. ◼ Bjurenwall’s customers mainly consist of construction companies and companies specialised in fire safety technolog
Slide 20: Financial overview
Financial overview 11/12 12/13 13/14 14/15 15/16 16/17 17/18 LTM Net sales 2,265 2,328 2,546 2,846 3,057 3,096 3,410 3,807 EBITA 192 223 256 295 355 409 436 494 EBITA,% 8.50% 9.60% 10.10% 10.40% 11.60% 13.20% 12.80% 12.98% EBT tillväxt 171 200 230 265 307 351 358 408 EBT growth 25% 17% 15% 15% 16% 1
Slide 21: Thank you!
Thank you! www.lagercrantz.com
Slide 22: Board & Management
Appendix Board & Management Board Management Jörgen Wigh Kristina Elfström Magnus Söderlind Per Ikov Carina Nordlöf Anders Börjesson Anna Almlöf Lennart Sjölund Executive VP VP Bus Development Group Controller President & CEO Mackintosh Chairman (DK) CFO Roger Bergqvist Anna Marsell Ulf Gladh Bo Ras
Slide 23: The share & shareholders
The share & shareholders • The B share is listed on Nasdaq Owners 2018-12-31 Shares Votes Anders Börjesson & Stockholm, Mid Cap Tisenhult-gruppen 5,7% 29,3% • Ticker: LAGR B SEB Fonder 12,8% 8,9% • Liquidity (Dec-18): 5 MSEK/day corresponding to 0.08% of market Didner & Gerge Funds 9,5% 6,6% capital