Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2017/18 Earnings Presentation
19 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 25, 2017
Slide 1: Interim report Q2 2017/18
Interim report Q2 2017/18 1 April – 30 September 2017 (6 months) 25 October 2017 Jörgen Wigh, CEO and President Bengt Lejdström, CFO
Slide 2: Technology group with leading positions in niches
Introduction to Lagercrantz Group Techology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 12 profit centres 9 profit centres 15 profit centres 12 profit centres 8 countries 8 countries 5 countries 5 countries Technology group in exp
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • RFID • Electonic connection • Digital imaging/technical • Niched product • LED lighting systems security companies, e.g. steel and • M2M • Custom cable harnesses • Design software, access- guy wire,
Slide 4: Business conditions
Interim report 2017/18 Business conditions The units in Sweden, Denmark and Finland developed positively, while the Group’s units in Norway showed a slightly weaker performance. Generally speaking, we noted a weaker July and August, while most units ended the quarter stronger than the previous y
Slide 5: Q2 2017/18 July – September 2017
Interim report 2017/18 Q2 2017/18 1 July – 30 September 2017 Net revenue was up 13 % MSEK 775 (684), Growth in comparable units, measured in local currency, amounted to +2 %. Operating profit (EBITA) was up 4 % to MSEK 98 (94). EBITA margin was 12.6 percent (13.7). Profit before financial
Slide 6: First Half Year 2017/18
Interim Report 2017/18 First Half Year 2017/18 Apr – Sep 2016 Net revenue was up 7 % MSEK 1,569 (1,466), Operating profit (EBITA) was up 5 % to MSEK 198 (188). EBITA margin was 12.6 percent (12.8). Profit before financial items (EBIT) was MSEK 170 (165). EBIT margin was 10.8 percent (11.3)
Slide 7: Outcome per division
Interim report 2017/18 Outcome per division NET SALES 2017/18 2016/17 2015/16 MSEK Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Electronics 214 216 223 216 193 202 202 213 210 Mechatronics 222 246 259 241 223 280 247 225 254 Communications 161 185 177 184 135 134 175 216 147 Niche Products 178 147 174 157 133 165 166
Slide 8: Business conditions - comments by division
Interim report 2017/18 Business conditions - comments by division Electronics The division developed positively, in particular, the Danish operation in marine electronics strengthened its sales. The Danish and Norwegian units in electronic distribution also reported an improvement, mainly due to int
Slide 9: Cash Flow
Interim report 2017/18 Cash Flow Moving 12 months Financial year MSEK Oct – Sep 2016/17 2016/17 Operating activities Profit after financial items 348 351 Adjustments for paid taxes, items not included in cash flow, etc. -7 18 Cash flow from operating activities before changes in 341 369 working capi
Slide 10: Important issues going forward
Important issues going forward Continue along the present path. Situation-responsive strategies/ measures in each company. Continued focus on value added. Acquisitions – of leading companies in expansive niches. 10
Slide 11: Vision and goals for Lagercrantz
Vision and goals for Lagercrantz Leading supplier of value- adding technology with market-leading positions in several expansive niches Annual growth of not less than 15% in profit after financial items Return on equity of not less than 25% 11
Slide 12: Focus on value-add
Focus on value-add Focus on adding value and gross margins Gross margin, % Setting goals 36.7 36.5 Moving 12-months 34.8 Training 31.6 32.1 30.5 Customisation 28.0 29.0 25.3 26.3 26.5 Service 24.5 21.2 Support Phasing-out products with low margins Higher proportion of proprietary pro
Slide 13: Broadening of operations
Broadening of operations Percentage share of Group sales, Moving 12-months based on quarterly data 3 4 4 5 4 4 4 3 3 3 3 3 6 5 6 6 5 5 4 9 9 8 8 7 11 11 11 12 15 14 12 13 13 13 13 13 Proprietary products 33 32 32 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integratio
Slide 14: Acquisitions
39 acquisitions since 2006, including : Acquisitions 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) Leteng AS (Communications) Vanpée & Westerberg A/S (Electronics) Focus on acquiring leading 2011 Capax (asset deal Electronics) Svensk Stålinredning AB (Niche Products) companies in ex
Slide 15: Wapro AB
Wapro AB Wapros innovative products prevent and regulate water flows in order to protect properties and infrastructure from flooding. Sales in Europe, North America and Australia. Wapro’s head office is located in Karlshamn and the company has a subsidiary in Chicago, USA. Wapro generates an
Slide 16: R-Contracting AB
R-Contracting AB R-Contracting develops and markets pumping systems for sprinkler installations. R-Contracting also has some engagements in infrastructure-related pump or hydropower projects. Most sales take place in Sweden but also some sales in Norway and Denmark. The company’s operations
Slide 17: Profsafe AB
Profsafe AB Profsafe develops and markets safes and security products in areas such as fire protection, burglary prevention, cash handling and weapon storage cabinets. Most sales take place in Sweden but also in the other Nordic markets. The company’s operations are based in Anderstorp and it
Slide 18: Financial overview
Financial overview 11/12 12/13 13/14 14/15 15/16 16/17 Net Sales 2 265 2 328 2 546 2 846 3 057 3 096 EBITA 192 223 256 295 355 409 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 13.2% EBT 171 200 230 265 307 351 EBT growth 25% 17% 15% 15% 16% 14% Return on Equity 22% 24% 24% 24% 25% 25% Earnings per share 1.88
Slide 19: Thank you!
Thank you! Appendix - Lagercrantz a. > fe) = LY) www.lagercrantz.com