Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — 9M 2009/10 Earnings Presentation
18 slides from Lagercrantz Group Ab Class B's earnings presentation, Feb 9, 2010
Slide 1: Interim Report 1 April–31 December 2009
Interim Report 1 April–31 December 2009 9 months 9 February 2010 Jörgen Wigh, President & CEO Niklas Enmark, Executive Vice President & CFO
Slide 2: Value-creating technology trading company with market-leading positions in niches
Value-creating technology trading company with market- leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Peking 6 profit centres 5 profit centres 9 profit centres Hongkong 5 countries 5 countries 3 countries Technology trading group in electronics, electrics, co
Slide 3: Divisions
Introduction Divisions Division Division Division Electronics Mechatronics Communications • Industrial wireless communication • Customised cable harnesses • Video conferencing, CCTV, technical • Embedded electronic systems • Electrical connection systems security • Electro-mechanical systems, passiv
Slide 4: Business conditions
Interim Report Business conditions The recession has impacted Lagercrantz since November 2008. The drop in volume has been in the order of 20 percent. A measure of stabilisation was noted during the second quarter and some businesses saw marginally improved demand. An improved climate than e
Slide 5: First three quarters 2009/10
Interim Report First three quarters 2009/10 April–December 2009 Net revenue for the nine-month period amounted to MSEK 1,285 (1,610) Drop by 20 percent due to the weak economy. Operating profit for the first nine months amounted to MSEK 45 (95). Operating margin 3.5 percent (5.9). Profit a
Slide 6: Action program focused on costs and capital tied up
Action program focused on costs and capital tied up Personnel reductions, general cost restraint and capital spending Number of employees freeze Sep/Oct Restructuring, combinations and 2008 809 some winding up of businesses. Dec 626 2009 Focus on gross margins Focus on reducing inventories a
Slide 7: Third quarter 2009/10
Interim Report Third quarter 2009/10 October–December 2009 Net revenue amounted to MSEK 448 (557). Equivalent to a volume decrease of 20 % Operating profit amounted to MSEK 20 (30). Balance between lower revenue and costs Operating margin was 4.5 percent (5.4). Items affecting comparabil
Slide 8: Electronics
Division Share of 2008/09 Electronics 34% 20% Value-adding distributor of niche components and systems in electronics. Sales based on customised solutions where components are designed into customers’ products. Revenue Operatiing profit News Nine months 2009/10 • Stabilised sales and for majority of
Slide 9: Mechatronics
Division Share of 2008/09 Mechatronics Customised cable harnesses for the electric and electronics industries in the Nordic Region, producer of electric connection systems and value-adding 29% 38% distributor of electromechanical, passive components and connectors. Revenue Operating profit Nine mont
Slide 10: Communications
Division Share of 2008/09 Communications •Video conferencing solutions, infrastructure CCTV and technical security. 37% 42% •Value-adding niche distributor of software. •Value-adding distributor of access products for telecom and broadband networks. Revenue Operating profit Nine months 2009/10 News
Slide 11: Results by division
Interim Report Results by division Net revenue Operating profit Q3 Q3 9 months 9 months 12 months Q3 Q3 9 months 9 months 12 months* MSEK 2009/10 2008/09 2009/10 2008/09 2008/09 2009/10 2008/09 2009/10 2008/09 2008/09 Electronics 132 181 417 540 727 5 3 10 17 24 Operating margin 3.8% 1.7% 2.4% 3.1%
Slide 12: Four important strategies for Lagercrantz
Framtid Four important strategies for Lagercrantz 1. Broadening of operations 2. Enhanced decentralisation and management by objective 3. Focus on value added 4. Acquisitions 12
Slide 13: Niche focus means risk diversification
Niche focus means risk diversification Revenue during the 2008/09 financial year by... …market segment …market channel …type of business Power and distribution 19% Electronics 16% Hardware trade 45% Construction 11% Proprietary products 17% Telecommunication 10% Direct to end users 39% Software trad
Slide 14: Decentralisation and management by objective
Future Decentralisation and management by objective with benchmarking among units 6% 45% 15% Profit margin P/WC Profitability Profit growth Strategy and measures are adapted to conditions for Note: each business unit ROS Profit margin P/WC Return on working capital REX Profit growth 14
Slide 15: Focus on value added
Future Focus on value added Revenue by business type Continued focus on gross Higher gross margins, % 9 months 2009/10 (2008/09) margins 26.3 26.2 Increase in the proportion 24.5 25.3 of businesses with higher 20.8 21.2 margins Phase-out of standard components with low margins Projects aimed
Slide 16: Acquisitions
Future 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 2002 Unitronic (Electronics) growing interest – guarded attitude in 2003 ISG Systems (Communicatio
Slide 17: Situation
Situation Strong positions in niches with broad diversification in several product areas and market segments. Action programme completed. Stabilised sales development and positive signs in certain areas. Sustained gross margin. Good opportunities for acquisitions with dedicated team and st
Slide 18: Thank you!
Lagercrantz Group