Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2011/12 Earnings Presentation
24 slides from Lagercrantz Group Ab Class B's earnings presentation, May 3, 2012
Slide 1: Year-end Report 2011/12
Year-end Report 2011/12 Period 1 April 2011–31 March 2012 3 May 2012 Jörgen Wigh, President & CEO Bengt Lejdström, Chief Financial Officer Anders Larsson, Group Controller
Slide 2: Introduction to Lagercrantz Group
Introduction to Lagercrantz Group Technology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 8 profit centres 7 profit centres 10 profit centres 3 profit centres 7 countries 5 countries 4 countries 1 country Beijing Hong Kong Technolo
Slide 3: Business conditions
Year-end Report Business conditions The overall business climate was favourable during the year as a whole Financial unrest in the euro area had a negative effect on the market. especially during the autumn of 2011. A weaker trend was recorded in Communications – restructuring action has been
Slide 4: Year-end Report 2011/12
Year-end Report 2011/12 April 2011–March 2012 Net revenue increased to MSEK 2.265 MSEK (2.029) (+12 percent). Organic growth measured in local currency was 7 percent . Operating profit amounted to MSEK 184 (147), equivalent to an operating margin of 8.1 percent (7.2). Profit after finance it
Slide 5: Fourth quarter 2011/12
Year-end Report Fourth quarter 2011/12 Jan–March 2012 Net revenue for the fourth quarter increased by 9 percent to MSEK 602 (551). The rate of organic growth was 5 percent during the quarter (5 percent during the year). In local currency sales increased organically by 7 percent during the quar
Slide 6: Organic growth and growth via acquisitions
Year-end Report Organic growth and growth via acquisitions Apr - Mar 2010/11 FX Organic M&A 2011/12 MSEK Net sales 2 029 -29 135 130 2 265 y-o-y -1.4% 6.7% 6.4% 11.6% EBIT 147 -2 15 24 184 y-o-y -1.4% 10.2% 16.3% 25.2% EBT 137 -2 14 23 171 y-o-y -1.5% 10.2% 16.8% 24.8% Q4 Jan - Mar 2010/11 FX Organi
Slide 7: Results by division
Year-end Report Results by division Net revenue Operating result Q4 Q 4 12 months 12 months Q4 Q4 12 months 12 months MSEK 2011/12 2010/11 2011/12 2010/11 2011/12 2010/11 2011/12 2010/11 Electronics 158 166 606 586 13 11 42 30 Operating margin - - 8.2% 6.6% 6.9% 5.1% Mechatronics 199 153 770 655 29
Slide 8: Important issues going forward
Important issues going forward Continue to broaden operations. Continue to pursue decentralisation and management by objective. Focus on adding value. Acquisitions. 8
Slide 9: Strategic development
Strategic development From To • Value-creating technology group • Pan-European • Autonomous units, decentralisation component distributor and management by objective • Electronics • Electronics, electricity and communication and adjacent areas • Scalability (high voltage current, technical security)
Slide 10: Vision and goals for Lagercrantz
Vision and goals for Lagercrantz Vision: Leader in value-creating technology with market-leading positions in expansive industries Goals: Annual growth of not less than 15 percent profit after finance items Return on equity of at least 25 percent 10
Slide 11: Electronics
Part of 2011/12 Division 27% 20% Electronics Offers special products in embedded electronics, industrial wireless communication, RFID and lighting control. Turnover Operating profit Q4 Q4 12 months 12 months 2011/ 2010/ 2011/ 2010/ MSEK 2012 2011 2012 2011 Net sales 158 166 606 586 Operating Profit
Slide 12: Mechatronics
Part of 2011/12 Division Mechatronics 34% 47% Offers electrical connection systems, electrical installation materials, electric and electro-mechanical products and cabling. Turnover Operating profit Q4 Q4 12 months 12 months 2011/ 2010/ 2011/ 2010/ MSEK 2012 2011 2012 2011 Net sales 199 182 770 740
Slide 13: Communications
Part of 2011/12 Division Communications 33% 20% Offers products, systems, services and support in network access, digital image transmission technology/technical security and software. Turnover Operating profit Q4 Q4 12 months 12 months 2011/ 2010/ 2011/ 2010/ MSEK 2012 2011 2012 2011 Net sales 203
Slide 14: Niche Products
Part of 2011/12 Division 7% 12% Niche Products The Group’s new division. Built primarily via acquisition of highly profitable Turnover Operating profit product companies with strong market positions in niches. Q4 Q4 12 months 12 months 2011/ 2010/ 2011/ 2010/ MSEK 2012 2011 2012 2011 Net sales 42 29
Slide 15: Broadening of operations
Broadening of operations Share of consolidated sales, percent 3 4 9 5 Service & Other 13 15 System integration 13 Niche production 26 Proprietary products Trading 62 50 15
Slide 16: Enhanced decentralisation and management by objective
Enhanced decentralisation and management by objective ROS = Margin on profit before taxes 10 % P/WC = Return on working capital REX = Earnings growth 6% 100 % 3% 45 % 25 % ROS 10 % 15 % Net margin P/WC 0% Profitability REX Earnings growth Strategy and action adapted to conditions in each business un
Slide 17: Focus on value added
Focus on value added Gross margin, % Focus on value creation 28.0 29.0 and gross margins. 26.3 26.5 24.5 25.3 Customisation, development and 20.8 21.2 combinations of different products contribute to the value added in the offer. Focus on training in businessmanship. Increased element of pro
Slide 18: Acquisitions
Acquisitions Important element of Lagercrantz År Genomförda förvärv Group’s growth strategy. 2006 Nordic Alarm (Communications) Elpress-gruppen (Mechatronics) Technology in well established as well K&K Oy (Communications) new areas are of interest. 2007 Direktronik (Communications) System Soluti
Slide 19: Idesco Oy
Idesco Oy Idesco develops and sells products based on RFID technology (Radio Frequency IDentification). Market leader in Finland in access control with products for high security industry and commercial properties. Also active in areas such as ID solutions for industry. Sales of MEUR 5.6 dur
Slide 20: Vendig AB
Vendig AB Vendig is a niche player Develops, manufactures and sells belt scrapers and other components for conveyors. Customers are found in, among other, the rock, gravel and mining industries. Vendig had 2010/11 sales of approximately MSEK 30 with good profitability. Included from Novemb
Slide 21: Revenue and profit
Revenue and profit Rolling 12 months, quarterly data 2 500 175 Net Sales Profit after finance items 155 Profit after finance items 2 000 135 Operational improvements 115 Acquisitions Net Sales 1 500 (product companies) 95 75 1 000 Recovery Action program 55 Acquisitions in recession Decentralisation
Slide 22: Thank you all! New division – Niche Products
Message to all Lagercrantz’ employees… Thank you all! Organic growth of 7% Gross and EBIT-margins at all-time- (local currencies) high, EBIT % at 8.6% in Q4 Profits up 25 % to a new record of 171 MSEK (EBT) Three good acquisitions in the last year adding150 MSEK of sales and net Strong cash flows, u
Slide 23: Lagercrantz today
Summary Lagercrantz today Well functioning business concept and strategic orientation on the direction of higher added value. A number of strong market positions in interesting niches. Improved business conditions – growing volumes, profit and margins. Take-off with a new division. Interes
Slide 24: Thank you!
Lagercrantz Group Thank you!