Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2018/19 Earnings Presentation
22 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 23, 2018
Slide 1: Interim Report Q2 & H1 2018/19
Interim Report Q2 & H1 2018/19 April – September 2018 (6 months) October 23, 2018 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 13 profit centres 10 profit centres 15 profit centres 13 profit centres 8 countries 8 countries 5 countries 5 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 3 500 350 Result after financial items, MSEK 3 000 300 Net sales, MSEK 2 500 250 Operational improvements Acquisitions 2 000 200 (product companies) 1 500 150 Action program
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 has improved except for some of the group’s entities in China. ◼ The business conditions continued to be strong for most units in al
Slide 6: Q2 2018/19 July – September 2018
Interim report 2018/19 Q2 2018/19 July – September 2018 ◼ Net revenue increased by 15 % to 895 MSEK (775). ◼ Organic growth was 6% excl FX and acquired businesses contributed with 42 MSEK, +5%. ◼ Operating profit (EBITA) increased by 19 % to 117 MSEK (98). ◼ Operating margin (EBITA) was 13,1 % (12,6
Slide 7: H1 2018/19 April – September 2018
Interim report 2018/19 H1 2018/19 April – September 2018 ◼ Net revenue increased by 17 % to 1 843 MSEK (1 569). ◼ Organic growth was 6% excl FX and acquired businesses contributed with 137 MSEK, +9%. ◼ Operating profit (EBITA) increased by 16 % to 229 MSEK (198). ◼ Operating margin (EBITA) was 12,4
Slide 8: Outcome per division
Interim report 2018/19 Outcome per division NET SALES 2018/19 2017/18 2016/17 MSEK Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Electronics 234 231 246 215 214 216 223 216 193 Mechatronics 267 289 258 247 222 246 259 241 223 Communications 196 223 222 218 161 185 177 184 135 Niche Products 198 205 228 208 178 147 174
Slide 9: Business conditions - comments by division
Interim report 2018/19 Business conditions - comments by division Electronics EBIT increased by 24% in the quarter. The division’s lighting control operations (Vanpee) in Denmark, Norway and Sweden and the German distribution entity strengthened their profits. The recent Danish acquisition within el
Slide 10: Cash Flow
Interim report 2018/19 Cash Flow Moving 12M Fin year MSEK Oct-Sept 2017/18 2017/18 Operating activities Profit after financial items 385 358 Adjustments for taxes paid, items not included in cash flow, etc. -10 -35 Cash flow from operating activities before changes in working capital 375 323 Cash fl
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 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
42 acquisitions since 2006, including : Acquisitions 2011 Capax (asset deal Electronics) Svensk Stålinredning AB (Niche Products) Vendig AB (Niche Products) ◼ Focus on acquiring leading 2012 Idesco Oy (Electronics) Plåt & Spiralteknik AB (Niche Products) companies in expansive niches. Vanpée AS och
Slide 16: 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 17: 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 18: 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 19: NST DK A/S
NST DK A/S ◼ NST is a niche player in the Danish market for electrical components and electromechanics. ◼ NST mainly sells to installation companies, but also to wholesalers and industrial customers. ◼ The company’s operations are based in Odense and it generates annual revenue of about MDKK 45 with
Slide 20: Wapro AB
Wapro AB ◼ Wapros innovative products prevent and regulate water flows in order to protect properties and infrastructure from flooding. ◼ Sales in Europe, North America and Australia. ◼ Wapro’s head office is located in Karlshamn and the company has a subsidiary in Chicago, USA. ◼ Wapro generates an
Slide 21: 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 3 684 EBITA 192 223 256 295 355 409 436 467 EBITA,% 8,50% 9,60% 10,10% 10,40% 11,60% 13,20% 12,80% 12,68% EBT tillväxt 171 200 230 265 307 351 358 385 EBT growth 25% 17% 15% 15% 16% 1
Slide 22: Thank you!
Thank you! www.lagercrantz.com