25 slides from Lagercrantz Group Ab Class B's earnings presentation, Jul 18, 2024
Slide 1: Interim Report Q1 2024/25
Interim Report Q1 2024/25 April – June 2024 (3 months) July 18, 2024 Jörgen Wigh, CEO Peter Thysell, CFO
Slide 2: Introduction to Lagercrantz Group
Introduction to Lagercrantz Group Tech Group with leading positions in expansive niches Lagercrantz Group Electrify Control TecSec Niche Products International 16 companies 14 companies 13 companies 16 companies 16 companies 9 countries 9 countries 10 countries 9 countries 9 countries B2B Tech Gro
Slide 3: Revenues and profits
Interim Report Q1 2024/25 Revenues and profits Rolling 12 months, quarterly data 12 000 1 200 Towards 11 000 2 Billion! 1 100 Profits after financial items, MSEK 10 000 1 000 9 000 Towards 900 Net sales, MSEK 1 Billion 8 000 800 7 000 700 Organic growth & Decentralisation, more acquisitions 6 000 60
Slide 4: Q1 - Business conditions
Interim Report Q1 2024/25 Q1 - Business conditions The market situation remained stable for most of the businesses Demand was strongest in the Electrify and Niche Products divisions and slightly weaker in the Control and TecSec divisions, where several businesses with a focus on the construction
Slide 5: Q1 2024/25 April - June 2024
Interim Report Q1 2024/25 Q1 2024/25 April - June 2024 Net revenues increased by 10% to MSEK 2,253 (2,045) Acquisitions 12%, organic growth -3%, currency 1% EBITA increased 8% to MSEK 386 (357) EBITA-margin at 17.1% (17.5) Cashflow from operations of MSEK 235 (286) Profits after financia
Slide 6: Outcome by division
NET SALES 2024/25 2023/24 2022/23 MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electrify 561 449 450 421 480 463 433 385 396 Control Outcome by division 264 284 255 219 249 276 267 220 228 TecSec 538 517 540 480 528 516 475 428 330 Niche Products 495 511 435 390 420 451 431 364 379 International 395 398 374 361
Slide 7: Comments by division: Electrify
Interim Report Q1 2024/25 Comments by division Electrify Revenues +17%, of which acquisitions 22% and organically -5%. EBITA +3% to MSEK 90 (87) i.e., an EBITA-margin of 16.0% (18.1). Electrify generally delivered a strong first quarter, however, without corresponding large project deliveries of abo
Slide 8: Comments by division: Control and TecSec
Interim Report Q1 2024/25 Comments by division Control Revenues +6% to 264 MSEK (249), incl Nikodan and MH Modules, of which acquisitions 8% and organically -3%. EBITA +9% to MSEK 35 (32) i.e. an EBITA-margin of 13.3% (12.8). Control delivered a stable quarter, where in particular Load Indicator, Ni
Slide 9: Comments by division: Niche Products and International
Year-end report 2023/24 Comments by division Niche Products Revenues +18%, excl Nikodan and MH Modules, of which acquisitions +16% and organically +1%. EBITA +8% to MSEK 100 (93) i.e., an EBITA-margin of 20.2% (22.2). Niche Products delivered a strong first quarter with a positive development and a
Slide 10: 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 11: Continue building the divisions
Lagercrantz towards Two billion Continue building the 5 divisions Electrify Control TecSec Niche Products International 16 companies 14 companies 13 companies 16 companies 16 companies 9 countries 9 countries 8 countries 9 countries 9 countries Niched companies Measure and Security and safety B2B pr
Slide 12: Acquisitions
Lagercrantz towards Two billion 80 acquisitions since 2006, including: Acquisitions 2020 as Group (Niche Products) 2021 VP metall (Electrify) Oy Esari (Electrify) Actively acquiring leading B2B Tech Hovicon International B.V. (Asept Group, Niche Products) Vihab (PST, Niche Products) companies in e
Slide 13: Principal Doorsets
Principal Doorsets Principal Doorsets Ltd is a growing and innovative manufacturer of bespoke fire doors in UK. Sales are about GBP 9 millions with good profitability. Headquarter and manufacturing are located in Barnstaple, Southwest Devon (UK). Fire doors are a crucial part of the passive fi
Slide 14: CP Cases
CP Cases CP Cases designs and manufactures high- performance protective cases and racks used for mission critical equipment for commercial and military applications. The cases are typically equipped with various climate and hazard control functions. Annual revenues of approx. GBP 12 million with
Slide 15: Prido
Prido Prido AB is a leading producer of industrial doors and gates, particularly folding doors, with about a third of the market in Sweden and 5—10% in Norway. Annual revenues of around 300 MSEK and good profitability. Located in Tråvad, Västergötland with sales office in Askim, Norway. Opti
Slide 16: 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. Revenues of approx. 350 MSEK and EBITA of 50 MSEK with P/WC* of 60% in 2023 (EV/EBITA at 6.5x)
Slide 17: Financial overview
Interim Report Q1 2024/25 Financial overview MSEK 24/25 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 RTM Q1 Net Sales 2,546 2,846 3,057 3,096 3,410 3,932 4,180 4,091 5,482 7,246 8,129 8,337 EBITA 256 295 355 409 436 519 565 616 895 1,205 1,431 1,462 EBITA,% 10.1% 10.4% 11.6% 13.
Slide 18: www.lagercrantz.com
www.lagercrantz.com
Slide 19: Board of Directors, Group and Division Management
Appendix Board of Directors Group Mgmt Jörgen Wigh Jonas Ahlberg President & CEO Executive VP Head of M&A Fredrik Börjesson Anna Almlöf Chairman of the Board Peter Thysell CFO Ulf Södergren Anna Marsell Division Mgmt Peter Baaske Andreas Heder Head of Electrify Head of Control Anders Claeson Jörgen
Slide 20: The share & owners
The share & owners • B share listed on Nasdaq Owners 2024-06-30 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 29.0% • Ticker: LAGR B Fidelity Investments (FMR) 10.1% 7.2% SEB Investment Funds 8.5% 6.0% Swedbank Robur Funds 8.2% 5.8% Lannebo Funds 6.4% 4.5% Jörgen Wigh 1
Slide 21: Net sales per market segment
Interim Report Q1 2024/25 Net sales per market segment Share of group net sales, percent 100% = 100% = 8,129 MSEK 2,253 MSEK 11% Other 12% 5% 5% Security 4% 4% 7% Telecom 6% 7% 6% Service 2% 1% 5% 5% Electronics 8% 9% Building & Construction - Residental 16% 16% Building & Construction - Commercial
Slide 22: 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 22
Slide 23: Continued focus on value-add
Lagercrantz towards Two billion Continued focus on value-add Gross margin, % 39.3 39.2 38.5 38.2 37.8 36.7 36.3 36.7 37.4 Focus on adding value 34.8 and gross margins 31.6 32.1 Setting goals 30.5 29.0 Training 28.0 26.3 26.5 Customisation 25.3 Service/Support 24.5 21.2 Phasing-out busine
Slide 24: 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 2 5 4 4 3 3 3 3 6 5 6 6 6 5 5 9 9 8 8 7 8 5 5 5 10 8 10 9 12 14 12 12 13 15 13 15 14 14 13 13 13 13 17 Proprietary 20 products
Slide 25: Measure, compare, challenge
Lagercrantz towards two billion Measure, compare, challenge No of units in each category Q1 2024/25 ROS* > 20%: 23 (15) units Focus on growth, 15 – 20%: 10 (16) units > 10% maintaining profitability 10 – 15%: 19 (16) units 6 – 10% Focus on profitability 6 – 10%: 13 (10) units and growth 3 – 6% 3 – 6