Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q3 2007/08 Earnings Presentation
21 slides from Lagercrantz Group Ab Class B's earnings presentation, Feb 11, 2008
Slide 1: Lagercrantz Group AB Quarterly report 3 2007/08
Lagercrantz Group AB Quarterly report 3 2007/08 (April-December 9 months) 11 February 2008 Jörgen Wigh, CEO Niklas Enmark, EVP, CFO WWW.LAGERCRANTZ.COM
Slide 2: Period April-December 2007/08 (9 months)
Period April-December 2007/08 (9 months) Net revenue increased by 14 percent to MSEK 1,610 (1,417) For the third quarter (October-December) net revenue amounted to MSEK 562 (530) Order bookings showed a continued positive trend compared to the year before Operating profit increased by 38 per
Slide 3: Period April-December 2007/08 (9 months): Revenue and profit
Period April-December 2007/08 (9 months) 2,500 120 Net revenue, moving 12 months 100 2,000 Profit after finance items, moving 12 months Revenue, MSEK Profit, MSEK 80 1,500 60 1,000 40 500 20 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004/05 2005/06 2005/06 2005/06 2005/06 2006/07 2006/07 2006/07 2006/
Slide 4: Period April-December 2007/08 (9 months)
Period April-December 2007/08 (9 months) Net revenue Operating profit Q3 Q3 9 months 9 months Q3 Q3 9 months 9 months MSEK 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 Electronics 206 175 583 544 10 2 25 14 Operating margin 4,9% 1,1% 4,3% 2,6% Mechatronics 150 152 447 387 13 9 35
Slide 5: Period April-December 2007/08 (9 months)
Period April-December 2007/08 (9 months) Cash flow from operations during 9 months amounted to MSEK 38 (7) Own shares were repurchased during the period for MSEK 37, MSEK 29 of which during the third quarter. The number of shares outstanding has declined by 1,200,000 to 22,477,809 at the end o
Slide 6: Focus during 2007/08
Focus during 2007/08 Building three strong divisions Intensified decentralisation and management by objective Focus on margins Acquisitions WWW.LAGERCRANTZ.COM PAGE 6 2008-02-12
Slide 7: Electronics
Building three strong divisions Electronics Value-adding distributor of niche components and systems in electronics. Sales are based on customised solutions where components are designed into customer products. ELECTRONICS 9 months 9 months 12 months MSEK Comments: 2007/08 2006/07 2006/07 During Q
Slide 8: Mechatronics
Building three strong divisions Mechatronics Customised cable harnesses for the electric and electronics industries in the Nordic Region, producer of electrical connection systems and value-adding distributor of, among other things, electromechanical components. MECHATRONICS 9 months 9 months 12 mon
Slide 9: Communications
Building three strong divisions Communications Video conference solutions and infrastructure CCTV and technical security, Value-adding niche distributor of software and access & network products for telecom and broadband networks. COMMUNICATIONS 9 months 9 months 12 months MSEK 2007/08 2006/07 2006/
Slide 10: Intensified decentralisation and management by objective
Intensified decentralisation and managment by objective Strategies/action implemented based on each profit centre’s local premises ROS = Profit margin P/WC = Return on working capital 6% REX = Earnings growth 45 % 15 % ROS Margin P/WC Profitability REX Growth WWW.LAGERCRANTZ.COM PAGE 10 2008-02-12
Slide 11: Focus on margins
Focus on margins Higher gross margins, % Efforts to develop strong market positions in niches 25.3 24.5 Seeking new technology areas and business 21.2 models that allow good margins, restructure 20.8 poorly performing businesses. Increased value creation for customers and suppliers. Customis
Slide 12: Acquisitions
Acquisitions Goal of making 3-5 acquisitions per year Four companies were acquired in 2006/07; one so far this year. We focus on companies: With a well tested business model, earnings capacity and good growth prospects. That are leaders in their niche (a market of MSEK 200-500). That off
Slide 13: The Group's goals and strategies
The Group’s goals and strategies Earnings growth by at least 15 percent per year. Goals Goals Profitable, with 25 percent return on equity. Decentralisation and management by objective Strong corporate culture Business acumen Strategies Strategies Strong positions in niches Increased v
Slide 14: Sight set at achieving also the second of the Group's financial goals
”Sight set at achieving also the second of the Group’s two financial goals” Return on equity, moving 12-months on quarterly data 30.0% 25.0% Goal 25% Return on equity moving 12 months 20.0% % 15.0% 10.0% 5.0% 0.0% 5 6 6 6 6 7 7 7 7 8 8 8 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 04 05 05 05 05 06 06 06 06
Slide 15: Summary Lagercrantz Group – Continued strength during the year
Summary Lagercrantz Group – Continued strength during the year Eleven consecutive quarters with earnings improvement Increased net revenue and order bookings Operating margin 6.0 percent during the quarter Stronger operating margins in all divisions during the year Profit after net finance
Slide 16: Thank you!
Lagercrantz Group AB Thank you! Jörgen Wigh, CEO Niklas Enmark, EVP, CFO WWW.LAGERCRANTZ.COM
Slide 17: Summary 2007/08: Consolidated income statement
Summary 2007/08 CONSOLIDATED INCOME STATEMENT 3 months 3 months 9 months 9 months Moving 12 Financial year months MSEK Oct-Dec Oct-Dec Apr-Dec Apr-Dec Apr-Mar 2007/08 2006/07 2007/08 2006/07 Jan-Dec 2006/07 2006/07 Net revenues 562 530 1,610 1,417 2,167 1,974 Cost of goods sold -417 -398 -1,203 -1,0
Slide 18: Summary 2007/08: Consolidated balance sheet
Summary 2007/08 CONSOLIDATED BALANCE SHEET MSEK 2007 12 31 2006 12 31 2007 03 31 ASSETS Goodwill 139 127 128 Other intangible non-current assets 100 95 97 Tangible non-current assets 52 98 83 Financial non-current assets 39 43 39 Inventories 248 235 234 Short-term receivables 459 419 444 Cash and ca
Slide 19: Summary 2007/08: Consolidated cash flow
Summary 2007/08 CONSOLIDATED CASH FLOW 3 months 3 months 9 months 9 months Financial year MSEK Oct-Dec Oct-Dec Apr-Dec Apr-Dec Apr-Mar 2007/08 2006/07 2007/08 2006/07 2006/07 Operating activities Profit after finance items 32 22 84 61 90 Adjustments for items not included in cash flow etc -7 10 -14
Slide 20: Summary 2007/08: Key ratios
Summary 2007/08 KEY RATIOS 9 months Financial year Apr-Dec Apr-Dec 2006/07 2005/06 2004/05 2003/04 2002/03 2007/08 2006/07 Revenue growth % 13.6 20.4 22.8 5.9 -3.2 7.2 -26.2 EBIT margin % 5.7 4.7 5.0 3.5 0.3 1.7 1.8 Profit margin % 5.2 4.3 4.6 3.4 -0.1 1.5 1.1 Equity assets ratio % 39 37 39 52 51 47
Slide 21: Lagercrantz Group
Lagercrantz Group A leader in value-creating technology trade with market- leading positions in several expansive niches Lagercrantz Group Peking Hongkong Electronics Mechatronics Communications Technology trade group in electronics, electricity, communication and adjacent areas with revenue of ov