Lacroix Group Sa · EURONEXT:LACR
Lacroix Group Sa — Investor Presentation (April 2021)
39 slides from Lacroix Group Sa's investor presentation, Apr 7, 2021
Slide 1: Strategic plan presentation Leadership 2025
APRIL 7 2021 Strategic plan presentation Leadership 2025
Slide 2: A family-owned company with a mid-term vision
A family-owned company with a mid-term vision SHAREHOLDERS 70% BEDOUIN Family 25% Public 4% Treasury shares 1% Employee ownership 1/3 of employee shareholders, 2/3 in France Vincent BEDOUIN Chairman and CEO Nicolas BEDOUIN COO & EVP Finance 2 This document is proprietary and confidential to LACROIX
Slide 3: Contents
01 LACROIX short presentation 02 AMBITION 2020 retrospective 03 LEADERSHIP 2025 - Vision & markets CONTENTS 04 LEADERSHIP 2025 - 5 pillars 05 LEADERSHIP 2025 - Key takeaways 06 Q&A This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization. 3
Slide 4: Short presentation
01 SHORT PRESENTATION AT THE HEART OF LACROIX This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 5: Technology should contribute to simple, safer and sustainable environments
At LACROIX, we believe technology should contribute to simple, safer and sustainable environments Since 2015, we focus our energy only on markets with high societal and environmental stakes ENVIRONMENT MOBILITY INDUSTRY 4.0 5 This document is proprietary and confidential to LACROIX and may not be re
Slide 6: An international, industrial and innovative technological equipment provider
An international, industrial and innovative technological equipment provider €441M * revenue of which 60% out of France * Proforma revenue Jan-Dec 2020 ~4,000 employees in 10 countries IMPLANTATIONS A renowned actor in innovation and industry NAFTA EMEA : APAC : USA ; FRANCE (1 233 emp.) ; SPAIN (95
Slide 7: Our ambition: Become a leader of professional connected equipment (IIoT)
Our ambition : Become a leader of professional connected equipment (IIoT) MARKET POSITIONING EXPERTISE Electronics activity Connected devices - IIoT Smart sensors & actuators Embedded and connected electronics for Smart power For industrial customers the industry LED lighting City Device management
Slide 8: A complementary positioning on dynamic markets
A complementary positioning on dynamic markets 1 engine 2 accelerators €275m * €166m * City Environment activity activity 3,300 8 sites 900 11 sites Electronics activity Design, industrialization Deep understanding of our and manufacturing customers’ applications expertise 22% 15% 63% % total revenu
Slide 9: One group harvesting natural synergies between its activities
One group harvesting natural synergies between its activities CONVERGING WORLD CLASS CRITICAL SIZE & FINANCIAL CUSTOMERS AND PARTNERS HEALTH BASE Activité Activité City Environment Activité Electronics ROBUSTNESS OF OUR DEEP COMPLEMENTARY END-TO-END TECH EXPERTISE SOLUTIONS This document is propriet
Slide 10: Looking back at Ambition 2020
02 LOOKING BACK AT AMBITION 2020 2016 – 2020 This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 11: We've achieved profitable growth over the last years, excluding COVID
We’ve achieved profitable growth over the last 5 years, excluding COVID 2015 – 2020 Turnover (€m) and EBIT %* * Starting from 2019, « CVAE » recategorized as « IS » (not impacting EBIT anymore) %EBIT ENVI CITY ELEC 2016 and 2019 EBIT by activity, €m Turnover, €m EBIT,% ENVI CITY ELEC Corp. COVID 600
Slide 12: Supported by acquisitions reinforcing our positioning of technological leader
Supported by acquisitions reinforcing our positioning of technological leader Electronics City Environment R&D activity Industrial activity SOGEXI DSTA Neavia Smartnodes Leader in connectivity Leader in dynamic Leader in V2X (« Vehicle-to- X = Start-up focusing on solutions for street traffic signs
Slide 13: While preserving a healthy financial balance
While preserving a healthy financial balance Own funds, €M Gearing ratio 120 1.0 108 100 103 99 100 94 86 0.8 80 0.54 0.6 €11m 60 0.40 of dividend paid over 0.33 0.32 0.4 2015 - 2020 40 0.34 0.29 0.2 20 0 0.0 2015 2016 2017 2018 2019 2020 Own funds Gearing • A gearing ratio maintained below 0.54 ove
Slide 14: While preserving and nurturing human capital
While preserving and nurturing human capital SUCCESS OF THE FIRST EMPLOYEE SHARE OWNERSHIP PLAN • 40 000 shares from treasury (1%) 37% • 37% participation rate of total eligible staff, 2017 66% in France and 46% in Germany INTERNAL SATISFACTION SURVEY • From 69% in 2016 to 72% in 2020 MASSIVE 72% •
Slide 15: Profitable growth and resilience in IoT & Electronics: Commercial strategy (1/2)
Profitable growth and resilience in IoT & Electronics #1 COMMERCIAL STRATEGY COMBINING RECURRENCE & CONQUEST (1/2) • Gaining new customers / business CONQUEST • Growing international footprint + • Focus on strategic customers, 60% of revenue DEVELOPMENT • Leaders in markets that they often outperfor
Slide 16: Profitable growth and resilience in IoT & Electronics: Commercial strategy (2/2)
Profitable growth and resilience in IoT & Electronics #1 COMMERCIAL STRATEGY COMBINING RECURRENCE & CONQUEST (2/2) Electronics City Environment AN IDEAL SHARE OF ACTIVITY 2020 TURNOVER WITH TOP 15 ACCOUNTS, % 100% 100% 100% Others 27% Others 52% Others 86% Top 15 73% Top 15 48% Top 15 14% This docum
Slide 17: An increasing share of smart & connected offers and IP
Profitable growth and resilience in IoT & Electronics #2 AN INCREASING SHARE OF SMART & CONNECTED OFFERS AND IP Turnover, €m 2016 – 2019 CAGR, % 566 +4.0% 468 482 428 441 9% Products with LACROIX design 245 185 210 164 177 321 1% . Products with customer design 264 264 283 271 2016 2017 2018 2019 20
Slide 18: Leadership 2025: Vision & markets
03 LEADERSHIP 2025 VISION & MARKETS This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 19: Leadership 2025
LEADERSHIP 2025 This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization 19
Slide 20: Our mission is a strong guideline
Our mission is a strong guideline Enable our customers to build & manage smarter life ecosystems thanks to useful, robust & secured connected technologies 20 This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization 20
Slide 21: Industrial IoT will be the main driver for smart applications
Industrial IoT will be the main driver for smart applications GLOBAL BOOM OF IOT MARKET We enter a new maturity phase Non IoT" includes all mobile phones, tablets, PC and landlines Positive growth outlook in our focus markets (CAGR 19-25) IoT includes all B2C and • +27% Shared mobility B2B connected
Slide 22: Technological & societal trends driving smart applications growth in our markets
Technological & societal trends driving smart applications growth in our markets ACCELERATED NEW USES : SMART ENVIRONMENTAL REGULATORY DIGITALISATION MOBILITIES, GRIDS, … PRESSURE FRAMEWORK Massive deployment of Leading to increased Rising resource costs and Stricter, particularly as sensors and ele
Slide 23: Leadership 2025 for Electronics: growth drivers
Leadership 2025 for Electronics MAJOR ELECTRONIC GROWTH DRIVERS IN OUR FOCUS MARKETS Automotive Home & building Industry Industrial IoT Defense Avionics • Electrification • Interoperability of • Digitalization & real Focus on Industry • Strategic national • Aircraft • Connected cars home equipment t
Slide 24: Leadership 2025 for Electronics: revenue growth and profitability
Leadership 2025 for Electronics SIGNIFICANT IMPROVEMENTS BOTH IN REVENUE GROWTH AND PROFITABILITY ▪ Driven by international growth, staying focused on our core markets 3-4% CAGR 19-25 ▪ Including cleaning of our customer base to focus on profitable business Organic revenue ▪ Increasing share of LACR
Slide 25: Leadership 2025 for City and Environment: growth drivers
Leadership 2025 for City and Environment MAJOR GROWTH DRIVERS IN OUR FOCUS MARKETS Traffic Public Lighting V2X Traffic signs Water HVAC Smart Grid management (Heating networks) Detection • Switch to LED • Connected Dynamic signage International HVAC • Renewable segment • Remote control highways grow
Slide 26: Leadership 2025 for City and Environment: profitable growth through new products
Leadership 2025 for City and Environment PROFITABLE GROWTH THROUGH NEW PRODUCTS • Driven by international growth • Driven by and smart offers international growth 5-7% (with double-digit growth) 8-10% • Enabled by indirect CAGR 19-25 CAGR 19-25 Organic revenue Organic revenue sales • Despite stable
Slide 27: Leadership 2025 strategic pillars
04 LEADERSHIP 2025 5 STRATEGIC PILLARS TO SUPPORT OUR AMBITION This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 28: 1 – Develop our technological leadership
1 – Develop our technological leadership STRENGTHENING LACROIX INNOVATION AND R&D CAPABILITIES • Technological synergies & mutualized platforms 2025 • Specific applications per segment • Stepping up of IP management & funding from collaborative projects >50% Revenue from new • Mobilizing all domains
Slide 29: 2 – Accelerate our Industry 4.0 leadership
2 – Accelerate our Industry 4.0 leadership Symbiose • Continuous performance improvement through: • Increased robotization & digitalization of operational flows and data exchange with stakeholders • State-of-the art communication, data systems and artificial intelligence INDUSTRY 4.0 • Serving clear
Slide 30: 3 – Leverage strategic geographical positions
3 - Leverage strategic geographical positions 3 DOMESTIC MARKETS WITH EXTENSIVE LOCAL FOOTPRINT • Local development of our 3 activities on 2025 largest (potential) markets • Active local presence & ecosystem FRANCE DACH North America participation and communication Leader Established player New mark
Slide 31: 4 – Boost all 3 activities through significant M&A
4 – Boost all 3 activities through significative M&A INVESTMENT CRITERIA Reinforcing international presence Focus on our niche Adding value-added of existing business segments or technological bricks or complementary markets solutions Consolidate our leadership Stay focused on our strategic Expandin
Slide 32: 5 – Prepare the move from equipment to end-to-end solution provider
5 – Prepare the move from equipment to end-to-end solution provider Common technological bricks End-to-end Solutions to address specific applications Application Alarms Visualization Predictive API Smart City Platforms Platform User mgt IA Analytics Device mgt OBJECTIFS Connectivity COM Protocol Bus
Slide 33: Pillars supporting a powerful ambition
5 pillars supporting a powerful ambition “ Become a global leader... …in industrial IoT and electronic equipment… …for critical applications ” 33 This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization 33
Slide 34: Leadership 2025: Key takeaways
05 LEADERSHIP 2025 KEY TAKEAWAYS This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 35: What makes LACROIX unique and with an ideal profile to become a leader
What makes LACROIX unique and with an ideal profile to become a leader More dedicated to our niche markets than the global players More global than the small players specialized in a single segment Right-sized: critical enough to stay at the edge of technology and pioneer Industry 4.0 investments An
Slide 36: The path to Leadership 2025
The path to Leadership 2025 x Contribution ranked by order of importance 800 2 ~500 441 Revenue (€m) 1 Return to Smart International Portfolio M&A 2020 normative 2021B offers expansion rebalancing 2025P Pf 12m levels ~9% 2 3 1 >6.5% EBITDA Margin (%) 5.9% Return to Smart R&D Industry 4.0 M&A 2020 no
Slide 37: LACROIX in 2025 – Key figures
LACROIX in 2025 – Key figures €800m ~9% <0.8 Revenue EBITDA Margin Gearing ratio >75% >70% >5% Internal satisfaction Share of revenue Revenue out of France invested in R&D ~ 30% Profits distributed This document is proprietary and confidential to LACROIX and may not be reproduced without prior autho
Slide 38: Q&A
06 Q&A This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 39: This document is proprietary and confidential to LACROIX and may not be reproduced without
This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization. 39