Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q1 2023/24 Earnings Presentation
22 slides from Lagercrantz Group Ab Class B's earnings presentation, Jul 19, 2023
Slide 1: Interim Report Q1 2023/24
Interim Report Q1 2023/24 April – June 2023 (3 months) July 19, 2023 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 15 companies 11 companies 11 companies 16 companies 15 companies 9 countries 8 countries 10 countries 9 countries 9 countries ◼ B2B Tech Gro
Slide 3: Revenues and profits
Interim Report Q1 2023/24 Revenues and profits Rolling 12 months, quarterly data 11 000 1100 10 000 1000 Profits after financial items, MSEK 9 000 900 Net sales, MSEK 8 000 800 Towards the Billion! 7 000 700 6 000 Organic growth & 600 Decentralisation, more acquisitions & Mgmt by objectives Acquisit
Slide 4: Q1 - Business conditions
Interim Report Q1 2023/24 Q1 - Business conditions ◼ The market situation remained stable on a good level for most of the businesses. ◼ Demand was strongest in the Electrify, Niche Products and International divisions. ◼ Order intake was in line with the previous year and in line with net sales duri
Slide 5: Q1 2023/24 April – June 2023
Interim Report Q1 2023/24 Q1 2023/24 April – June 2023 ◼ Net revenues increased by 28% to MSEK 2,045 (1,597). ◼ Organic growth 6%, Acquisitions 19%, Currency 4%. ◼ EBITA increased 35% to MSEK 357 (265). ◼ EBITA-margin at 17.5% (16.6). ◼ Organic EBITA growth 11%, where Electrify, TecSec and Internati
Slide 6: Outcome by division
NET SALES 2023/24 2022/23 2021/22 MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electrify 480 463 433 385 396 404 345 340 377 Control Outcome by division 184 203 204 163 175 189 187 132 152 TecSec 528 516 475 428 330 251 241 197 217 Niche Products 485 524 494 421 432 453 371 299 331 International 368 334 335 271
Slide 7: Comments by division
Interim Report Q1 2023/24 Comments by division Electrify Revenues +21%. EBITA +34% to MSEK 87 (65) i.e. an EBITA-margin of 18.1% (16.4). A strong Q1 with 8% organic sales growth. The largest business unit Elpress and several Finnish companies performed well, while Elfac in Denmark was still affected
Slide 8: Comments by division
Interim Report Q1 2023/24 Comments by division TecSec Revenues +60%. EBITA +70% to MSEK 95 (56) i.e. an EBITA-margin of 18.0% (17.0). A strong Q1 with 6% organic sales growth. The market situation was favourable for most business units. R-CON, ISG Nordic and Frictape performed particularly well. The
Slide 9: Strategic platform
Strategic platform Lagercrantz towards the One billion Key themes; ✓ Clarifying strategies and financial goals ✓ Reorganizing into 5 divisions for clear growth ambitions ✓ Increase capacity within M&A ✓ Focus on sustainability www.lagercrantz.com 9
Slide 10: Vision and financial goals
Lagercrantz towards the One 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 5-8 acquisitions per year. ❖ Return on equity
Slide 11: Aim of 75% proprietary products
Lagercrantz towards the One billion Aim of 75% 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 5 5 5 4 4 3 3 9 9 6 5 7 6 6 6 8 5 8 8 9 10 8 10 12 15 14 12 12 13 13 13 13 13 13 15 17 Proprietary products 20 26 25 22 29 V
Slide 12: Continued focus on value-add
Lagercrantz towards the One billion Continued focus on value-add Gross margin, % 38.5 38.2 37.8 39.2 ◼ Focus on adding value 36.7 36.3 36.7 37.4 and gross margins 34.8 ▪ Setting goals 31.6 32.1 30.5 ▪ Training 29.0 28.0 ▪ Customisation 26.3 26.5 24.5 25.3 ▪ Service/Support 21.2 ◼ Phasing-out busines
Slide 13: Acquisitions
Acquisitions 73 acquisitions since 2006, including: 2020 UNRO/SDP (Asept Group, Niche Products) Nexlan (Direktronik, Control) Sajas Group (Niche Products) ◼ Focus on acquiring leading 2021 VP metall (Electrify) companies in expansive niches. Oy Esari (Electrify) Hovicon International B.V. (Asept Gro
Slide 14: Glova Rail A/S
Glova Rail A/S ◼ Glova Rail provides components, products and solutions within the niche area of vacuum toilets for trains. ◼ Annual revenues of approx. MDKK 60 with good profitability. Located in Odense, Denmark. ◼ Glova Rail is known for quality, and the only ones who can supply control panels or
Slide 15: Fireco
Fireco ◼ Fireco designs, engineers and manufactures fire door hardware. The major product line is the Dorgard® product, a fire door retainer. ◼ Based in Brighton, UK with annual revenues of approx GBP 7 million. ◼ Fireco created the first wireless hold- open device for fire doors and have since been
Slide 16: Supply Plus
Supply Plus ◼ Supply Plus is a product company of high-quality ladders and hose reels for the fire fighting and emergency rescue services. ◼ Leading market position in the UK and significant exports to many other countries in the world. ◼ Operations outside Cambridge, in the UK with annual revenues
Slide 17: 5 divisions
Lagercrantz towards the One billion 5 divisions Electrify Control TecSec Niche Products International 15 companies 11 companies 11 companies 16 companies 15 companies 9 countries 8 countries 8 countries 9 countries 9 countries Products for Measure and control Solutions for Niched product Niched comp
Slide 18: Net sales per market segment
Net sales per market segment Share of Group sales, percent 2022/23 Other; 13% Power & Electricity distribution; 21% Telecom; 4% Security; 6% Service; 7% Infrastructure; 16% Electronics; 7% Building & Construction - Residential; 1% Building & Construction - Commercial; 5% Transport; 14% Building & Co
Slide 19: Financial overview
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 Q1 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 7,694 EBITA 223 256 295 355 409 436 519 565 616 895 1,205 1,297 EBITA,% 9.6% 10.1% 10.4% 11.6% 13.2% 12.8% 13.2% 13.5% 15.1% 1
Slide 20: www.lagercrantz.com
www.lagercrantz.com 10 BE KEPT CLOSED AT SEA
Slide 21: 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 22: The share & owners
The share & owners • B share listed on Nasdaq Owners 2023-06-30 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 28.7% • Ticker: LAGR B Swedbank Robur Funds 11.0% 7.7% SEB Investment Funds 9.8% 6.9% Fidelity Investments (FMR) 9.8% 6.9% Lannebo Funds 6.3% 4.5% Jörgen Wigh 1