Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2017/18 Earnings Presentation
29 slides from Lagercrantz Group Ab Class B's earnings presentation, May 8, 2018
Slide 1: Year-end Report 2017/18
Year-end Report 2017/18 1 April 2017 – 31 March 2018 (12 months) 8 May 2018 Jörgen Wigh, President and CEO Bengt Lejdström, CFO
Slide 2: Techology 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 13 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: Revenues and profits
Year-end Report 2017/18 Revenues and profits Moving 12-month quarterly data Net sales Result after finance items 4 000 400 3 500 350 Result after finance items, MSEK 3 000 300 Net sales, MSEK 2 500 250 Operative improvements 2 000 Acquisitions 200 (product companies) 1 500 150 Action programme Recov
Slide 5: Business conditions
Year-end Report 2017/18 Business conditions Sweden, Denmark and Finland developed well during the financial year. However, some of the Group’s units in Sweden and Norway showed a weaker development compared to the previous year. The export markets outside of northern Europe increased their propo
Slide 6: Year-end Report 2017/18
Year-end Report 2017/18 1 April 2017 – 31 March 2018 (12 months) Net revenue increased by 10 percent to MSEK 3,410 (3,096). Growth in comparable units amounted to -2 percent, measured in local currency. Operating profit (EBITA) increased by 7 percent to MSEK 436 (409). Operating margin (EBIT
Slide 7: Q4 2017/18 1 January – 31 March 2018 (3 months)
Year-end Report 2017/18 Q4 2017/18 1 January – 31 March 2018 (3 months) Net revenue increased by 15 percent to MSEK 954 (833). Acquired businesses made a contribution of MSEK 107. Operating profit (EBITA) was MSEK 128 (117), +9 percent. Operating margin (EBITA) was 13.4 percent (14.0). Pro
Slide 8: Outcome per division
Year-end Report 2017/18 Outcome per division NET SALES 2017/18 2016/17 MSEK 12 mths Q4 Q3 Q2 Q1 12 mths Q4 Q3 Q2 Q1 Apr - Mar Apr - Mar Electronics 891 246 215 214 216 834 223 216 193 202 Mechatronics 973 258 247 222 246 1 003 259 241 223 280 Communications 786 222 218 161 185 630 177 184 135 134 Ni
Slide 9: Business conditions - comments by division
Year-end Report 2017/18 Business conditions - comments by division Electronics The division’s Danish operations in marine electronics and electrical and electronics distribution strengthened their sales and profits, while some of the Norwegian and Swedish units in lighting and lighting control were
Slide 10: 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 11: Mechatronics
Division Part of 2017/18, YTD Mechatronics 33% Offers electric connection systems, Custom cable harnesses, Electrical 29% 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 12: Communications
Division Part of 2017/18, YTD Communications 23% 22% 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 13: Niche Products
Division Part of 2017/18, YTD Niche Products 22% 27% 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 14: Cash Flow
Year-end Report 2017/18 Cash Flow MSEK 2017/18 2016/17 Operating activities Profit after financial items 358 351 Adjustments for paid taxes, items not included in cash flow, etc. -35 18 Cash flow from operating activities before changes in working 323 369 capital Cash flow from changes in working ca
Slide 15: 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. 15
Slide 16: 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%. 16
Slide 17: Focus on value-add
Focus on value-add Focus on adding value and gross margins Gross margin, % Setting goals 36.7 36.3 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 18: 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 10 12 15 14 12 13 13 13 13 13 Proprietary products 29 33 32 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integratio
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: Financial overview
Financial overview 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Net Sales 2 265 2 328 2 546 2 846 3 057 3 096 3 410 EBITA 192 223 256 295 355 409 436 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% 12.8% EBT 171 200 230 265 307 351 358 EBT growth 25% 17% 15% 15% 16% 14% 2% Return on Equity 22% 24% 24% 24% 25
Slide 26: Thank you! Appendix - Lagercrantz
Thank you! Appendix - Lagercrantz a. > fe) = LY) www.lagercrantz.com
Slide 27: 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 Bo Ras
Slide 28: The share & shareholders
The share & shareholders Owners, 31 March 2018 Shares Votes • The B share is listed on Nasdaq Anders Börjesson & Stockholm, Mid Cap the Tisenhult-Group 3.8% 16.4% • Ticker: LAGR B Tom Hedelius 2.1% 14.8% • Liquidity (Mar-18): 2 MSEK/day SEB Investment Management 12.0% 8.6% corresponding to 0.03% of
Slide 29: Lagercrantz today
Lagercrantz today Stabe platform based on a well-functioning business concept and a number of strong market positions in interesting niches. Increasing proportion of proprietary products enables higher margins and more legs to stand on. Decentralisation ensures committed employees. Strategies