Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2015/16 Earnings Presentation
21 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 22, 2015
Slide 1: Interim report Q2 2015/16
Interim report Q2 2015/16 1 April 2015 – 30 September 2015 (6 months) 22 October 2015 Jörgen Wigh, President & CEO Bengt Lejdström, Chief Financial Officer
Slide 2: Technology group with leading positions in niches
Introduction to Lagercrantz Group Technology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 11 profit centers 8 profit centers 13 profit centers 8 profit centers 6 countries 5 countries 4 countries 2 countries Technology group in exp
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • RFID • Electrical connection • Digital image/technical • Steel and guy wire • LED lighting systems security • Conveyor • M2M • Custom cable harnesses • Design software, access- • Special doors • Medi
Slide 4: Revenues and profits
Interim 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 (product companies) 1 500 150 Action program 1 000 Recovery 100 during recession
Slide 5: Business conditions
Interim Report Business conditions Second quarter 2015/16 (Jul – Sep 2015) The business situation is generally considered to remain stable and no clear signs of a slowdown were noted due to turbulence on stock markets or on currency and commodity markets. Sales continued to develop positively in
Slide 6: Second quarter 2015/16
Interim Report Second quarter 2015/16 July–September 2015 Net revenue for the period increased by 9 percent to MSEK 711 (652). which meant organic growth of 1 percent, not including currency effects and excluding lower distribution volume of software Operating profit increased by 16 percent to
Slide 7: First six months 2015/16
Interim Report First six months 2015/16 April–September 2015 Net revenue for the period increased by 13 percent to MSEK 1 499 (1 329). which meant organic growth of 4 percent, not including currency effects and excluding lower distribution volume of software. Operating profit increased by 20 p
Slide 8: EBIT-margin
EBIT-margin Quarterly data 8
Slide 9: Outcome by division
Interim Report Outcome by division NET SALES 2015/16 2014/15 MSEK 6 mths Q2 Q1 Q4 Q3 Q2 Q1 Apr - Sep Electronics 423 210 213 226 204 189 184 Mechatronics 535 254 281 210 187 202 216 Communications 328 147 181 217 253 182 187 Niche Products 213 100 113 131 89 79 90 Parent company/Consolidation items
Slide 10: Cash flow
Interim Report Cash flow 3 mths 3 mths 6 mths 6 mths MSEK Jul-Sep 2015/16 Jul-Sep 2014/15 2015/16 2014/15 Operating activities Profit after financial items 73 61 149 122 Adjustments for paid taxes, items not included in cash flow, etc. -5 3 2 6 Cash flow from operating activities before changes in w
Slide 11: Important issues going forward
Important issues going forward Continue along the present path. Situation-responsive strategies/ measures. Focus on continued 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 finance items Return on equity of not less than 25% 12
Slide 13: Situation-responsive strategies/measures
Situation-responsive strategies/measures We adapt measures to be taken to each company’s individual situation. Niche orientation involves different situations, opportunities and challenges for each individual company. Focus and flexibility close to markets, customers and suppliers. Dedicated
Slide 14: Profitability and earnings growth strategies
ROS = Profit margin before tax 10% P/WC = Return on working capital REX = Earnings growth 6% 100% 3% 45% 25% ROS 10% 15% Net margin P/WC 0% Profitability REX Earnings growth Strategies and measures are adapted to the requirements of each business unit 14
Slide 15: Focus on value-add
Focus on value-add Gross margin, % Focus on adding value 34.8 and gross margins. 31.6 32.1 30.5 Setting ambitious goals 28.0 29.0 25.3 26.3 26.5 Training 24.5 20.8 21.2 Phasing-out products with low margins. Higher proportion of proprietary products. Acquisition of businesses with higher
Slide 16: Broadening of operations
Broadening of operations Percentage share of sales, Moving 12 months on quarterly data 3 4 4 5 4 4 4 3 3 3 9 6 5 7 6 6 5 9 8 8 12 10 12 15 13 14 13 13 13 13 Proprietary products 38 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integration 44 38 Service and other 29 33
Slide 17: Acquisitions
Acquisitions Continued focus on acquiring 29 acquisitions since 2006, of which: leading companies in the expansive niche. 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) Long-term acquisition process Leteng AS (Communications) from gross list to integration. Vanpée & Westerberg A/S
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: 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 20: Financial overview
Interim Report Financial overview (MSEK) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Net sales 1,720 2,029 2,265 2,328 2,546 2,846 Growth -20% 18% 12% 3% 9% 12% Operating profit (EBIT) 67 147 184 213 242 276 Operating margin (EBIT%) 3.9% 7.2% 8.1% 9.1% 9.5% 9.7% Result (EBT) 58 137 171 200 230 2
Slide 21: Lagercrantz Group
Lagercrantz Group