Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2015/16 Earnings Presentation
24 slides from Lagercrantz Group Ab Class B's earnings presentation, May 10, 2016
Slide 1: Year-end Report 2015/16
Year-end Report 2015/16 The period, 1 April 2015 – 31 March 2016 10 May 2016 Jörgen Wigh, President & CEO Bengt Lejdström, Chief Financial Officer
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 11 profit centres 8 profit centres 12 profit centres 9 profit centres 6 countries 5 countries 4 countries 3 countries Technology group in expa
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 Revenues and profits Moving 12-month quarterly data Net sales Result after finance items 3 000 300 Result after finance items, MSEK 2 500 250 Net sales, MSEK 2 000 200 Operative improvements Acquisitions 1 500 (product companies) 150 1 000 Action programme Recovery 100 during recessi
Slide 5: Year-end Report 2015/16
Year-end Report 2015/16 April 2015 – Mars 2016 Net revenue increased by 7 percent to MSEK 3,057 (2,846), Growth in comparable units, measured in local currency, amounted to 1 percent. Operating profit increased by 14 percent to MSEK 315 (276). Operating margin was 10.3 percent (9.7). Profi
Slide 6: Business conditions
Year-end Report Business conditions The business volume trend was stable overall during the year despite a turbulent external environment. Sweden and Denmark showed a positive development while the Norwegian market weakened due to the low oil price. The electronics distribution units in Denmar
Slide 7: Fourth quarter 2015/16
Year-end report Fourth quarter 2015/16 January – March 2016 Net revenue in the fourth quarter amounted to MSEK 790 (784) Growth in comparable units, measured in local currency, was -4 percent. Divestment of Betech impacted revenue negatively by approx. MSEK 65. Operating profit increased by
Slide 8: Outcome per division
Year-end Report Outcome per division NET SALES 2015/16 2014/15 MSEK 12 mths Q4 Q3 Q2 Q1 12 mths Q4 Q3 Q2 Q1 Apr - Mar Apr - Mar Electronics 838 202 213 210 213 803 226 204 189 184 Mechatronics 1 007 247 225 254 281 815 210 187 202 216 Communications 719 175 216 147 181 839 217 253 182 187 Niche Prod
Slide 9: Cash flow
Year-end Report Cash flow 3 mths 3 mths Financial year Financial year MSEK Jan-Mar Jan-Mar 2015/16 2014/15 2015/16 2014/15 Operating activities Profit after financial items 81 74 307 265 Adjustments for paid taxes, items not included in cash flow, etc. -9 4 -18 -6 Cash flow from operating activities
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 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: Focus on value-added
Focus on value-added Focus on adding value 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 20,8 21,2 Support Phasing-out products with low margins Higher proportion of proprietary products 04/05 05/06 06
Slide 13: 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 9 6 5 7 6 6 5 9 8 8 12 11 12 15 13 14 13 13 13 13 Proprietary products 33 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integration 48 38 Service and
Slide 14: Acquisitions
Acquisitions 31 acquisitions since 2006, including: Focus on acquiring leading companies in expansive niches. 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) Leteng AS (Communications) Long-term acquisition process Vanpée & Westerberg A/S (Electronics) from gross list to integration
Slide 15: 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 16: Nikodan Conveyor Systems A/S
Nikodan Conveyor Systems A/S Nikodan develops, sells and manufactures customised conveyor belt solutions and product handling systems. The company’s customers are industrial companies with high demands in respect of automation. The company’s operations are based in Jylland and it generates ann
Slide 17: Landauer Nordic AB
Landauer Nordic AB Landauer Nordic develops and sells products and services for radon monitoring. The company’s products are mainly sold via resellers and distributors of monitoring products and monitoring services. The company's head office is in Uppsala and it has a subsidiary in Chicago, US
Slide 18: Cue Dee AB
Cue Dee AB Cue Dee develops and sells, primarily, supports & brackets with high strength and flexibility The support brackets are used for mounting e.g. mobile devices in masts, on roofs or in other exposed areas. Customers are global, mainly within the Telecom sector, and consists of network
Slide 19: Divestment of Betech Data A/S
Divestment of Betech Data A/S Betech Data is a software distributor in Denmark and Norway and its business is primarily focused on Autodesk distribution of CAD/CAM applications, The market changed fundamentally in recent years due to new business models and the growth of cloud-based services.
Slide 20: The share & shareholders
The share & shareholders • The B share is listed on Nasdaq Owners, 31 Mar 2016 Shares Votes Stockholm, Mid Cap Anders Börjesson with family 4.0% 16.4% • Ticker: LAGR B Tom Hedelius 2.1% 14.7% • Liquidity (Q4): 2.5 MSEK /per day Lannebo Funds 14.5% 10.1% • Management and other Board Swedbank Robur Fu
Slide 21: Financial overview
Ýear-end Report Financial overview (MSEK) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Net sales 1 720 2 029 2 265 2 328 2 546 2 846 3 057 Growth -20% 18% 12% 3% 9% 12% 7% Operating profit (EBIT) 67 147 184 213 242 276 315 Operating margin (EBIT%) 3,9% 7,2% 8,1% 9,1% 9,5% 9,7% 10,3% Resul
Slide 22: Lagercrantz Group
Lagercrantz Group
Slide 23: Board & Management
Appendix Board & Management Board of Directors Management Magnus Söderlind Per Ikov Jörgen Wigh Bengt Lejdström VP Bus Development Anders Börjesson Pirkko Alitalo Lennart Sjölund CFO Executive VP President & CEO Chairman of the Board Roger Bergqvist Tom Hedelius Marika Rindborg Ulf Gladh Sten Alfred
Slide 24: 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 strengthens the Group. Decentralisation makes for committed employees. Strategi