Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q4 2023/24 Earnings Presentation
24 slides from Lagercrantz Group Ab Class B's earnings presentation, May 17, 2024
Slide 1: Year-end Report 2023/24
Year-end Report 2023/24 April 2023 – March 2024 (12 months) May 17, 2024 Jörgen Wigh, CEO Peter Thysell, CFO
Slide 2: Tech Group with leading positions in expansive niches
Introduction to Lagercrantz Group Tech Group with leading positions in expansive niches Lagercrantz Group Electrify Control TecSec Niche Products International 16 companies 11 companies 12 companies 18 companies 16 companies 9 countries 8 countries 10 countries 9 countries 9 countries ◼ B2B Tech Gro
Slide 3: Revenues and profits
Year-end report 2023/24 Revenues and profits Rolling 12 months, quarterly data 12 000 1 200 Towards 11 000 2 Billion! 1 100 Profits after financial items, MSEK 10 000 1 000 Towards Net sales, MSEK 9 000 900 1 Billion 8 000 800 7 000 700 Organic growth & more acquisitions 6 000 Decentralisation, 600
Slide 4: Q4 - Business conditions
Year-end report 2023/24 Q4 - Business conditions ◼ The market situation remained stable for most of the businesses ◼ Order intake and sales were negatively affected by high comparative figures and by fewer working days compared to the previous year due to Easter. ◼ Fluctuations between different bus
Slide 5: Q4 2023/24
Year-end report 2023/24 Q4 2023/24 January – March 2024 ◼ Net revenues increased by 6% to MSEK 2,159 (2,040) ◼ Acquisitions 11%, organic growth - 6%, corresponding to approx. - 3% adjusted for calendar effects, currency 1% ◼ EBITA increased 14% to MSEK 390 (343) ◼ EBITA-margin at record high of 18.1
Slide 6: FY 2023/24
Year-end report FY 2023/24 April 2023 – March 2024 ◼ Net revenues increased by 12% to MSEK 8,129 (7,246) ◼ Acquisitions 11%, Organic growth -1%, Currency 2% ◼ EBITA increased 19% to MSEK 1,431 (1,205) ◼ EBITA-margin at 17.6% (16,6) ◼ Cashflow from operations increased by 24% to MSEK 1,327 (1,070) ◼
Slide 7: Outcome by division
NET SALES 2023/24 2022/23 2021/22 MSEK Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Electrify 449 450 421 480 463 433 385 396 404 Control Outcome by division 198 204 163 184 203 204 163 175 189 TecSec 518 540 480 528 516 475 428 330 251 Niche Products 596 486 446 485 524 494 421 432 453 International 398 374 361 368
Slide 8: Comments by division
Year-end report 2023/24 Comments by division Electrify Revenues -3%, of which acquisitions 5% and organically -8%. EBITA -15% to MSEK 66 (78) i.e., an EBITA-margin of 14.7% (16.8). Several units within Electrify reported weaker market conditions and challenges of generally strong comparative figures
Slide 9: Comments by division
Year-end report 2023/24 Comments by division Control Revenues at 198 MSEK (203). EBITA +3% to MSEK 40 (39) i.e. an EBITA-margin of 20.2% (19.2). A stable quarter, where in particular Radonova, Direktronik, Leteng and Load Indicator posted positive developments. At the same time, some businesses note
Slide 10: Comments by division
Year-end report 2023/24 Comments by division Niche Products Revenues +14%, of which acquisitions +14% and organically -1%. EBITA +25% to MSEK 134 (107) i.e., an EBITA-margin of 22.5% (20.5). A strong Q4 with a positive development and favorable market conditions for most of the businesses. Good earn
Slide 11: Profit over working capital (P/WC)
Year-end report 2023/24 Profit over working capital (P/WC) Return on working capital (P/WC) % 2023/24 2022/23 2021/22 Electrify 62 69 76 Control 75 76 88 TecSec 107 129 143 Niche Products 83 81 80 International 76 66 63 GROUP TOTAL 77 78 79 www.lagercrantz.com 11
Slide 12: Net sales per market segment
Year-end report 2023/24 Net sales per market segment Share of group net sales, percent 100% = 100% = 7,246 MSEK 8,129MSEK Other 12% 12% 5% Security 6% 4% 4% Telecom 7% 6% 7% Service 7% 2% 1% 5% 5% Electronics 6% 8% Building & Construction - Residental 14% 16% Building & Construction - Commercial Bui
Slide 13: Vision and financial goals
Lagercrantz towards Two billion Vision and financial goals Sustainable supplier of value- adding technologies with market-leading positions in several expansive niches. ❖ Annual profit (EBT) growth >15% At least 1/3 organically and the rest through 8-12 acquisitions per year. ❖ Return on equity (ROE
Slide 14: Continue building the divisions
Lagercrantz towards Two billion Continue building the 5 divisions Electrify Control TecSec Niche Products International 16 companies 11 companies 12 companies 18 companies 16 companies 9 countries 8 countries 8 countries 9 countries 9 countries Niched companies Measure and Security and safety B2B pr
Slide 15: ROS distribution of units
Lagercrantz towards Two billion ROS* > 20%: 24 (19) units Focus on growth, 15 – 20%: 8 (12) units > 10% maintaining profitability 10 – 15%: 23 (16) units 6 – 10% Focus on profitability 6 – 10%: 10 (8) units and growth 3 – 6% 3 – 6%: 1 (2) units Focus on < 3% profitability < 3%: 4 (4) units *) ROS= R
Slide 16: Aim of 85% proprietary products
Lagercrantz towards Two billion Aim of 85% proprietary products Percentage share of Group sales, Moving 12-months based on quarterly data 3 4 4 5 4 4 4 3 3 3 3 2 3 3 2 2 2 2 5 4 4 3 3 3 5 6 6 6 5 5 9 9 8 8 6 7 8 5 5 10 8 10 9 12 15 14 12 12 13 13 13 13 15 14 13 13 Proprietary products 17 20 26 25 22
Slide 17: Continued focus on value-add
Lagercrantz towards Two billion Continued focus on value-add Gross margin, % 38.5 38.2 37.8 39.3 ◼ Focus on adding value 36.7 36.3 36.7 37.4 and gross margins 34.8 ▪ Setting goals 31.6 32.1 ▪ Training 30.5 29.0 ▪ Customisation 28.0 26.3 26.5 ▪ Service/Support 25.3 24.5 ◼ Phasing-out business 21.2 wi
Slide 18: Acquisitions
Lagercrantz towards Two billion Acquisitions 78 acquisitions since 2006, including: 2020 as Group (Niche Products) 2021 VP metall (Electrify) ◼ Actively acquiring leading B2B Tech Oy Esari (Electrify) Hovicon International B.V. (Asept Group, Niche Products) companies in expansive niches. Vihab (PST,
Slide 19: Prido
Prido ◼ Prido AB is a leading producer of industrial doors and gates, particularly folding doors, with about a third of the market in Sweden and 5—10% in Norway. ◼ Annual revenues of around 300 MSEK and good profitability. ◼ Located in Tråvad, Västergötland with sales office in Askim, Norway. ◼ Opti
Slide 20: Nordic Road Safety
Nordic Road Safety ◼ NRS is a leading supplier of permanent road safety and noise barrier systems. ◼ Located in Timrå Sweden with 85% of sales in Sweden, the rest exported to other European countries. ◼ Expected revenues of approx. 350 MSEK and EBITA of 50 MSEK and P/WC* of 60% in 2023. (EV/EBITA 6.
Slide 21: Financial overview
Year-end report 2023/24 Financial overview MSEK 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 Net Sales 2,328 2,546 2,846 3,057 3,096 3,410 3,932 4,180 4,091 5,482 7,246 8,129 EBITA 223 256 295 355 409 436 519 565 616 895 1,205 1,431 EBITA,% 9.6% 10.1% 10.4% 11.6% 13.2% 12.
Slide 22: www.lagercrantz.com
www.lagercrantz.com 10 BE KEPT CLOSED AT SEA
Slide 23: Board of Directors and Group Management
Appendix Board of Directors Group Mgmt Jörgen Wigh Jonas Ahlberg President & CEO Executive VP Head of M&A Fredrik Börjesson Anna Almlöf Chairman of the Board Peter Thysell CFO Ulf Södergren Anna Marsell Division Mgmt Peter Baaske Andreas Heder Head of Electrify Head of Control Anders Claeson Jörgen
Slide 24: The share & owners
The share & owners • B share listed on Nasdaq Owners 2024-03-31 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 29.0% • Ticker: LAGR B Fidelity Investments (FMR) 9.8% 7.0% SEB Investment Funds 9.0% 6.4% Swedbank Robur Funds 8.1% 5.8% Lannebo Funds 6.4% 4.5% Jörgen Wigh 1.