Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q3 2017/18 Earnings Presentation
24 slides from Lagercrantz Group Ab Class B's earnings presentation, Jan 25, 2018
Slide 1: Interim report Q3 2017/18
Interim report Q3 2017/18 1 April – 31 December 2017 25 January 2018 Jörgen Wigh, CEO and President Bengt Lejdström, CFO
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 9 profit centres 15 profit centres 12 profit centres 8 countries 8 countries 5 countries 5 countries Technology group in exp
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: Business conditions
Interim report 2017/18 Business conditions The conditions in Sweden, Denmark and Finland was stable, while some units in Germany and Norway showed a slightly weaker performance. The export markets outside of northern Europe performed well, especially in Asia and in the USA. Proprietary products
Slide 5: Q3 2017/18 October – December 2017
Interim report 2017/18 Q3 2017/18 1 October – 31 December 2017 Net revenue was up 11 % MSEK 888 (798), Acquired businesses made a contribution of MSEK 95. Operating profit (EBITA) was up 7 % to MSEK 111 (104). EBITA margin was 12.5 percent (13.0). Profit before financial items (EBIT) was M
Slide 6: Outcome per division
Interim report 2017/18 Outcome per division NET SALES 2017/18 2016/17 2015/16 MSEK Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Electronics 215 214 216 223 216 193 202 202 213 Mechatronics 247 222 246 259 241 223 280 247 225 Communications 218 161 185 177 184 135 134 175 216 Niche Products 208 178 147 174 157 133 165
Slide 7: Electronics
Part of 2017/18, YTD Division 26% 18% Electronics Offers special components within embedded electronics, industrial wireless communication, RFID, lighting and lighting control. Sales EBIT • Danish operations in marine electronics and electronics distribution strengthened their sales and profits. • L
Slide 8: Mechatronics
Division Part of 2017/18, YTD Mechatronics Offers electric connection systems, Custom cable harnesses, Electrical 29% 36% security & enclosures and Brackets for telecom equipment Sales EBIT • Electrical connection systems is still showing good development, especially on exports with the newly establ
Slide 9: Communications
Division Part of 2017/18, YTD Communications 23% 20% Offers Digital imaging/technical security, design software, access- and network products as well as Control systems Sales EBIT • Some of the units in control technology/network access performed well, especially in measurement equipment for metal f
Slide 10: Niche Products
Division Part of 2017/18, YTD Niche Products 22% 26% Niched product companies, e.g. steel and guy wire, dispenser systems, special doors and storage systems. Sales EBIT • A positive development compared to the previous year. • In particular, the units in conveyor belt solutions and conveyors reporte
Slide 11: Nine months
Interim Report 2017/18 Nine months Apr – Dec 2017 Net revenue was up 9 % MSEK 2,457 (2,264), Operating profit (EBITA) was up 6 % to MSEK 309 (292). EBITA margin was 12.6 percent (12.9). Profit before financial items (EBIT) was MSEK 266 (257). EBIT margin was 10.8 percent (11.4). EAT was
Slide 12: Cash Flow
Interim report 2017/18 Cash Flow Moving 12 months Financial year MSEK Jan – Dec 2017 2016/17 Operating activities Profit after financial items 350 351 Adjustments for paid taxes, items not included in cash flow, etc. -38 18 Cash flow from operating activities before changes in 312 369 working capita
Slide 13: 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. 13
Slide 14: 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%. 14
Slide 15: Focus on value-add
Focus on value-add Focus on adding value and gross margins Gross margin, % 37.0 Setting goals 36.7 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 06/07
Slide 16: 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 6 5 6 6 5 5 4 9 9 8 8 7 11 11 11 12 15 14 12 13 13 13 13 13 Proprietary products 32 30 33 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integratio
Slide 17: Acquisitions
Acquisitions 40 acquisitions since 2006, including : 2011 Capax (asset deal Electronics) Svensk Stålinredning AB (Niche Products) Vendig AB (Niche Products) Focus on acquiring leading 2012 Idesco Oy (Electronics) companies in expansive niches. Plåt & Spiralteknik AB (Niche Products) Vanpée AS och
Slide 18: 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 19: 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 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 Net Sales 2 265 2 328 2 546 2 846 3 057 3 096 EBITA 192 223 256 295 355 409 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% EBT 171 200 230 265 307 351 EBT growth 25% 17% 15% 15% 16% 14% Return on Equity 22% 24% 24% 24% 25% 25% Earnings per share 1.88
Slide 22: Thank you!
Thank you! Appendix www.lagercrantz.com
Slide 23: Board & Management
Appendix Board & Management Board of Directors Management Anders Börjesson Anna Almlöf Lennart Sjölund Jörgen Wigh Bengt Lejdström Magnus Söderlind Per Ikov VD & Koncernchef CFO Executive VP VP Bus Development (DK) Chairman of the Board Roger Bergqvist Peter Hedelius Marika Rindborg Ulf Gladh Sten A
Slide 24: The share & shareholders
The share & shareholders Owners, 31 December 2017 Shares Votes • The B share is listed on Nasdaq Anders Börjesson & the Tisenhult- Stockholm, Mid Cap Group 3.9% 16.4% • Ticker: LAGR B Tom Hedelius 2.1% 14.8% • Liquidity (Dec-17): 5 MSEK/day SEB Investment Management 10.8% 7.5% corresponding to 0.10%