Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q3 2023/24 Earnings Presentation
25 slides from Lagercrantz Group Ab Class B's earnings presentation, Feb 6, 2024
Slide 1: Interim Report Q3 2023/24
Interim Report Q3 2023/24 April – December 2023 (9 months) February 6, 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 17 companies 16 companies 9 countries 8 countries 10 countries 9 countries 9 countries ◼ B2B Tech Gro
Slide 3: Revenues and profits
Interim report Q3 2023/24 Revenues and profits Rolling 12 months, quarterly data 11 000 1 100 10 000 1 000 Towards Profits after financial items, MSEK 2 Billion! 9 000 900 Net sales, MSEK 8 000 800 7 000 Towards 700 1 Billion 6 000 Organic growth & 600 Decentralisation, more acquisitions & Mgmt by o
Slide 4: Q3 - Business conditions
Interim report Q3 2023/24 Q3 - Business conditions ◼ The market situation remained stable for most of the businesses ◼ Order intake for comparable units was in line with net revenues in the quarter ◼ Security & safety, electrification and infrastructure segments developed well, while construction an
Slide 5: Q3 2023/24
Interim report Q3 2023/24 Q3 2023/24 October – December 2023 ◼ Net revenues increased by 6% to MSEK 2,054 (1,941) ◼ Acquisitions 7%, Organic growth -2%, Currency 1% ◼ EBITA increased 9% to MSEK 353 (323) ◼ EBITA-margin at 17.2% (16.6) ◼ Cashflow from operations of MSEK 367 (439) ◼ Profits after fina
Slide 6: 9M 2023/24
Interim report Q3 2023/24 9M 2023/24 April – December 2023 ◼ Net revenues increased by 15% to MSEK 5,970 (5,206) ◼ Acquisitions 11%, Organic growth 0.5%, Currency 3% ◼ EBITA increased 21% to MSEK 1,042 (863) ◼ EBITA-margin at 17.5% (16,6) ◼ Cashflow from operations increased by 46% to MSEK 951 (652)
Slide 7: Outcome by division
NET SALES 2023/24 2022/23 2021/22 MSEK Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Electrify 450 421 480 463 433 385 396 404 345 Control Outcome by division 204 163 184 203 204 163 175 189 187 TecSec 540 480 528 516 475 428 330 251 241 Niche Products 486 446 485 524 494 421 432 453 371 International 374 361 368 334
Slide 8: Comments by division
Interim report Q3 2023/24 Comments by division Electrify Revenues +4%, of which acquisitions 9% and organically -6%. EBITA +13% to MSEK 80 (71) i.e., an EBITA-margin of 17.8% (16.4). Favourable market situation driven by investments within electrification and infrastructure. Several units delivered
Slide 9: Comments by division
Interim report Q3 2023/24 Comments by division Control Revenues at 204 MSEK (204). EBITA -3% to MSEK 35 (36) i.e. an EBITA-margin of 17.2% (17.6). Stable market situation, with slow-down in demand for some business units, e.g., Precimeter was impacted by reduced aluminium production in Europe due to
Slide 10: Comments by division
Interim report Q3 2023/24 Comments by division Niche Products Revenues -2%, of which acquisitions 2% and organically -4%. EBITA -1% to MSEK 93 (94) i.e., an EBITA-margin of 19.1% (19.0). The business situation remained stable for most entities. Good earnings improvements were noted for Tormek, Asept
Slide 11: Net sales per market segment
Interim report Q3 2023/24 Net sales per market segment Share of group net sales, percent 100% = 100% = 7 246 MSEK 5 970 MSEK Other 12% 12% 5% Security 6% 4% 5% Telecom 7% 6% 7% 7% Service 1% 2% 5% 5% Electronics 6% 7% Building & Construction - Residental 14% 15% Building & Construction - Commercial
Slide 12: Raising the bar to two billion
Strategic platform Raising the bar to two billion Key themes; ✓ Clarifying strategies and financial goals ✓ 5 divisions with clear growth ambitions ✓ Increased capacity and scope within M&A ✓ Focus on sustainability www.lagercrantz.com 12
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 17 companies 16 companies 9 countries 8 countries 8 countries 9 countries 9 countries Niched companies Measure and Security and safety B2B pr
Slide 15: 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 5 5 4 4 3 3 3 9 9 6 5 7 6 6 6 8 5 5 8 8 9 10 8 10 12 15 14 12 12 13 13 13 13 15 14 13 13 Proprietary products 17 20 26 25 22
Slide 16: 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 17: Acquisitions
Lagercrantz towards Two billion Acquisitions 77 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 18: 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 19: Material Handling Modules
Material Handling Modules ◼ MHM is a leading supplier of modular conveyor and material handling systems in the Nordics. Customers are primarily integrators in the manufacturing, logistics and automation industry. ◼ Annual revenues of approx. 90 MSEK with good profitability. Located in Glemmingebro i
Slide 20: Suomen Diesel Voima
Suomen Diesel Voima ◼ A leading supplier of generator sets for backup power solutions and fire sprinkler pumps in Finland. ◼ Annual revenues of about 8 MEUR with good profitability. Based in Tampere with service locations in Helsinki, Oulu and Mikkeli, Finland. ◼ Generator sets are used to ensure th
Slide 21: DP Seals
DP Seals ◼ DP Seals is a leading supplier of rubber sealings, gaskets and mouldings for high specification applications. ◼ Annual revenues of approx. 5 MGBP with good profitability. Located in Poole in the UK. ◼ Adds to the rubber and sealings cluster with other companies like Schmitztechnik. ◼ DP S
Slide 22: Financial overview
Interim report Q3 2023/24 Financial overview RTM 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Q3 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 8,010 EBITA 223 256 295 355 409 436 519 565 616 895 1,205 1,385 EBITA,% 9.6% 10.1% 10.4% 11.6% 13.2%
Slide 23: www.lagercrantz.com
www.lagercrantz.com 10 BE KEPT CLOSED AT SEA
Slide 24: Board of Directors and Group Management
Appendix Board of Directors Group Mgmt Jörgen Wigh Peter Thysell President & CEO CFO Fredrik Börjesson Anna Almlöf Chairman of the Board Per Ikov Andreas Heder Jonas Ahlberg VP Bus Development VP Bus Development Executive VP Head of Niche Products Ulf Södergren Anna Marsell Division Mgmt Peter Baask
Slide 25: The share & owners
The share & owners • B share listed on Nasdaq Owners 2023-12-31 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 28.7% • Ticker: LAGR B Fidelity Investments (FMR) 9.8% 6.9% SEB Investment Funds 9.2% 6.5% Swedbank Robur Funds 9.0% 6.3% Lannebo Funds 6.4% 4.5% Jörgen Wigh 1.