Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2023/24 Earnings Presentation
28 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 25, 2023
Slide 1: Interim Report Q2 2023/24
Interim Report Q2 2023/24 April – September 2023 (6 months) October 25, 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 16 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 Q2 2023/24 Revenues and profits Rolling 12 months, quarterly data 11 000 1 100 10 000 1 000 Profits after financial items, MSEK 9 000 900 Net sales, MSEK 8 000 800 Towards One Billion! 7 000 700 6 000 Organic growth & 600 Decentralisation, more acquisitions & Mgmt by objectives Acquis
Slide 4: Q2 - Business conditions
Interim report Q2 2023/24 Q2 - Business conditions ◼ The market situation remained stable on a good level for most of the businesses ◼ Order intake for comparable units was slightly above the same period in the previous year and in line with net revenues during the quarter ◼ Lagercrantz broad focus
Slide 5: Q2 2023/24 July – September 2023
Interim report Q2 2023/24 Q2 2023/24 July – September 2023 ◼ Net revenues increased by 12% to MSEK 1,871 (1,668) ◼ Organic growth -1%, Acquisitions 9%, Currency 5% ◼ EBITA increased 21% to MSEK 333 (275) ◼ EBITA-margin at 17.8% (16.5) ◼ All 5 divisions recorded improved EBITA and EBITA-margins ◼ Cas
Slide 6: 6M 2023/24 April – September 2023
Interim report Q2 2023/24 6M 2023/24 April – September 2023 ◼ Net revenues increased by 20% to MSEK 3,917 (3,265) ◼ Organic growth 2%, Acquisitions 13%, Currency 4% ◼ EBITA increased 28% to MSEK 690 (540) ◼ EBITA-margin at 17.6% (16.5) ◼ Cashflow from operations increased by 137% to MSEK 505 (213) ◼
Slide 7: Outcome by division
NET SALES 2023/24 2022/23 2021/22 MSEK Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Electrify 421 480 463 433 385 396 404 345 340 Control Outcome by division 163 184 203 204 163 175 189 187 132 TecSec 480 528 516 475 428 330 251 241 197 Niche Products 446 485 524 494 421 432 453 371 299 International 361 368 334 335
Slide 8: Comments by division
Interim report Q2 2023/24 Comments by division Electrify Revenues +9%. EBITA +16% to MSEK 80 (69) i.e., an EBITA-margin of 19.0% (17.9). Stable, positive market situation for electrification and infrastructure. Most units within division Electrify delivered strong results, while a couple of entities
Slide 9: Comments by division
Interim report Q2 2023/24 Comments by division TecSec Revenues +12%. EBITA +20% to MSEK 89 (74) i.e., an EBITA-margin of 18.5% (17.3). The market situation was still favourable for most business units, where R-CON, ISG Nordic and COBS performed particularly well, while PcP and CWL made the greatest
Slide 10: Net sales per market segment
Interim report Q2 2023/24 Net sales per market segment Share of group net sales, percent 100% = 100% = 7 246 MSEK 3 917 MSEK Other 12% 12% 5% Security 6% 4% 5% Telecom 7% 7% 7% 7% Service 1% 2% 5% 5% Electronics 6% 7% Building & Construction - Residental 14% 15% Building & Construction - Commercial
Slide 11: Strategic platform: 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 11
Slide 12: 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 13: Continue building the divisions
Lagercrantz towards Two billion Continue building the 5 divisions Electrify Control TecSec Niche Products International 16 companies 11 companies 11 companies 16 companies 15 companies 9 countries 8 countries 8 countries 9 countries 9 countries Niched companies Measure and Security and safety B2B pr
Slide 14: Return on sales by unit
Lagercrantz towards Two billion ROS* > 20%: 20 (18) units Focus on growth, 15 – 20%: 15 (9) units > 10% maintaining profitability 10 – 15%: 12 (21) units Focus on profitability 6 – 10%: 13 (7) units 6 – 10% and growth 3 – 6% 3 – 6%: 2 (2) units Focus on < 3% profitability < 3%: 3 (4) units *) ROS= R
Slide 15: 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 5 5 5 4 4 3 3 3 9 9 6 5 7 6 6 6 8 5 5 8 8 9 10 8 10 12 15 14 12 12 13 13 13 13 15 14 13 13 Proprietary products 17 20 26 25 22
Slide 16: Continued focus on value-add
Lagercrantz towards Two billion Continued focus on value-add Gross margin, % 38.5 38.2 37.8 39.4 ◼ Focus on adding value 36.7 36.3 36.7 37.4 and gross margins 34.8 ▪ Setting goals 31.6 32.1 ▪ Training 30.5 29.0 ▪ Customisation 28.0 26.3 26.5 ▪ Service/Support 25.3 24.5 ◼ Phasing-out business 21.2 wi
Slide 17: Acquisitions
Lagercrantz towards Two billion Acquisitions 74 acquisitions since 2006, including: 2020 UNRO/SDP (Asept Group, Niche Products) Nexlan (Direktronik, Control) Sajas Group (Niche Products) ◼ Actively acquiring leading B2B Tech 2021 VP metall (Electrify) companies in expansive niches. Oy Esari (Electri
Slide 18: Increased capacity within M&A
Lagercrantz towards Two billion Increased capacity within M&A ◼ Approx. 1/3 of the growth will be organic the remaining 2/3 will be from acquiring 8 – 12 businesses per year, adding approx 10% of Sales every year ◼ Central M&A resources and increased capacity and responsibility in the divisions. ◼ C
Slide 19: Letti
Letti ◼ Letti is a leading manufacturer of installation materials and brackets for cables and cable ducts. ◼ Annual revenues of approx. MNOK 30 with good profitability. Located in Søndeled, Norway. ◼ Letti is known for its high-quality and easy-to-use system consisting of tools and consumables. ◼ Sa
Slide 20: Glova Rail
Glova Rail ◼ 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 tech
Slide 21: 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 22: 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 23: Framework for sustainable development
Lagercrantz towards Two billion Framework for sustainable development SUSTAINABILITY GOVERNANCE Training and knowledge-sharing, networking, Code of Conduct, policies and guidelines, materiality analysis, risk analysis, Board meetings, Group-wide and company-specific goals, data reporting and follow-
Slide 24: Ambitions
Lagercrantz towards Two billion Ambitions Lagercrantz Group Electrify Control TecSec Niche Products International EBT of + SEK 2 billion within 5 years ~ 100 profit centers, each leading in its niche > 85% proprietary products > 5% organic growth > 15% EBITA margin Company level still most important
Slide 25: Financial overview
Interim report Q2 2023/24 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 Q2 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 7,897 EBITA 223 256 295 355 409 436 519 565 616 895 1,205 1,356 EBITA,% 9.6% 10.1% 10.4% 11.6% 13.2%
Slide 26: www.lagercrantz.com
www.lagercrantz.com 10 BE KEPT CLOSED AT SEA
Slide 27: 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 28: The share & owners
The share & owners • B share listed on Nasdaq Owners 2023-09-30 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 28.7% • Ticker: LAGR B SEB Investment Funds 9.8% 6.9% Fidelity Investments (FMR) 9.8% 6.9% Swedbank Robur Funds 9.4% 6.6% Lannebo Funds 6.3% 4.5% Jörgen Wigh 1.