Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2022/23 Earnings Presentation
29 slides from Lagercrantz Group Ab Class B's earnings presentation, May 16, 2023
Slide 1: Year-end Report 2022/23
Year-end Report 2022/23 April 2022 – March 2023 (12 months) May 16, 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 17 companies 15 companies 9 countries 7 countries 8 countries 9 countries 7 countries ◼ B2B Tech Grou
Slide 3: Revenues and profits
Year-end Report 2022/23 Revenues and profits Rolling 12 months, quarterly data 10 000 1000 9 000 900 Profits after financial items, MSEK 8 000 800 Net sales, MSEK 7 000 700 6 000 Operational improvements 600 Acquisitions Decentralisation, 5 000 (product companies) 500 Acquisitions, Mgmt by objective
Slide 4: Q4 - Business conditions
Year-end Report 2022/23 Q4 - Business conditions ◼ The market situation was generally stable and remained good for most of the businesses during Q4. ◼ Order intake was in line with the previous year and demand was strongest in electrification and for the TecSec and International divisions. ◼ Order i
Slide 5: Q4 2022/23 January – March 2023
Year-end Report 2022/23 Q4 2022/23 January – March 2023 ◼ Net revenues increased by 30% to MSEK 2,040 (1,575). ◼ Organic growth 9%, Acquisitions 17%, Currency 3%. ◼ EBITA increased 29% to MSEK 343 (265). ◼ EBITA-margin at 16.8% (16.8). ◼ Organic EBITA growth 9%, where International, TecSec and Niche
Slide 6: 12 months 2022/23
Year-end Report 2022/23 12 months 2022/23 April 2022 – March 2023 ◼ Net revenues increased by 32% to MSEK 7,246 (5,482). ◼ Organic growth 10%, Acquisitions 19%, Currency 3%. ◼ EBITA increased 35% to MSEK 1,205 (895). ◼ EBITA-margin at 16.6% (16.3). ◼ Organic EBITA growth 14%, where all divisions exc
Slide 7: Outcome by division
NET SALES 2022/23 2021/22 2020/21 MSEK Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Electrify 463 433 385 396 404 345 340 377 320 Control 203 204 163 175 189 187 132 152 156 Outcome by division TecSec 516 475 428 330 251 241 197 217 136 Niche Products 524 494 421 432 453 371 299 331 313 International 334 335 271 264
Slide 8: Comments by division
Year-end Report 2022/23 Comments by division Electrify Revenues +15%. EBITA +13% to MSEK 78 (69), i.e. an EBITA-margin of 16.8% (17.1). A good Q4 with 5% organic sales growth. Strong demand for the larger business units Elpress, Elkapsling and Norwesco. In addition, several Finnish companies and the
Slide 9: Comments by division
Year-end Report 2022/23 Comments by division TecSec Revenues +106%. EBITA +98% to MSEK 95 (48), i.e. an EBITA-margin of 18.4% (19.1). The market situation was favourable for most business units. Strong Q4 with 25% organic sales growth. The larger units CWL, R-CON, ISG Nordic and Frictape reported st
Slide 10: Outcome by division
Year-end Report 2022/23 Outcome by division April 2022 – March 2023 Profit on working capital (P/WC) % 2022/23 2021/22 2020/21 Electrify 69 76 68 Control 76 88 69 TecSec 129 143 116 Niche Products 81 80 76 International 66 63 49 GROUP TOTAL 78 79 67 www.lagercrantz.com 10
Slide 11: Lagercrantz towards the One billion
Strategy 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 11
Slide 12: 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 13: 5 divisions
Lagercrantz towards the One billion 5 divisions Electrify Control TecSec Niche Products International 15 companies 11 companies 11 companies 17 companies 15 companies 9 countries 7 countries 8 countries 9 countries 7 countries Products for Measure and control Solutions for Niched product Niched comp
Slide 14: 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 - Private; 1% Building & Construction - Commercial; 5% Transport; 14% Building & Constr
Slide 15: Net sales per market segment by division
Net sales per market segment by division Share of Group sales, percent Electrify Control TecSec Niche Products International Group total Net revenue per market 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 Total net revenue, MSEK 1,677 1,466 746 660
Slide 16: ROS by number of units
Lagercrantz towards the One billion ROS* > 20%: 19 (14) units Focus on growth, 15 – 20%: 12 (14) units > 10% maintaining profitability 10 – 15%: 16 (17) units 6 – 10% Focus on profitability 6 – 10%: 8 (5) units and growth 3 – 6% 3 – 6%: 2 (3) units Focus on < 3% profitability < 3%: 4 (3) units *) RO
Slide 17: 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 18: Acquisitions
Acquisitions 73 acquisitions since 2006, including: 2019 Dorotea Mekaniska (Niche Products) OJ:s Vågsystem (Vendig, Niche Products) G9 (International) ◼ Focus on acquiring leading Dynamo Free (Load Indicator, Control) companies in expansive niches. Frictape Group (TecSec) 2020 UNRO/SDP (Asept Group,
Slide 19: 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. 60 MDKK with good profitability. Located in Odense, Denmark. ◼ Glova Rail is known for quality, and the only ones who can supply control panels or
Slide 20: 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 21: Tykoflex
Tykoflex ◼ Tykoflex is a leading supplier of high quality solutions for optical fibre joints & enclosures as well as flexible couplings for pipe and water systems. ◼ Annual revenues of approx. 140 MSEK with good profitability. ◼ Strong market position in Sweden and the Nordics with exports to other
Slide 22: PcP Corporation
PcP Corporation ◼ A leading designer and producer of innovative and high-quality bespoke safety solutions within gratings, treads, and handrails. ◼ Annual revenues of approx. MDKK 425 with good profitability, P/WC exceeding 60%. ◼ Strong market position in key end markets ◼ Infrastructure within ind
Slide 23: Door & Joinery Solutions
Door & Joinery Solutions ◼ Door & Joinery is a UK based product provider of high-quality and customised fire- resistant doors, screens, and frames (offices in Burton-upon-Trent and Leicestershire). ◼ The products are largely sold through facility management companies and constructors. ◼ Typical end-
Slide 24: Waterproof Diving International
Waterproof Diving International ◼ Waterproof provides innovative dry and wet diving suits to professional and premium recreational divers. ◼ The company is located in Gothenburg, Sweden and has two smaller offices in Germany. ◼ Products are sold through selected resellers in 48 countries around the
Slide 25: Tebul
Tebul ◼ Tebul manufactures watertight electric sliding doors for ships. The doors are an integral part of the watertight bulkheads in the hull of the ships. ◼ The company is located in Lieto, in Southwest Finland. ◼ The customers are mainly leading European shipyards that build cruise ships and ferr
Slide 26: Financial overview
Financial overview 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Net Sales 2,328 2,546 2,846 3,057 3,096 3,410 3,932 4,180 4,091 5,482 7,246 EBITA 223 256 295 355 409 436 519 565 616 895 1,205 EBITA,% 9.6% 10.1% 10.4% 11.6% 13.2% 12.8% 13.2% 13.5% 15.1% 16.3% 16.6% EBT 200 230 26
Slide 27: www.lagercrantz.com
Lagercrantz Group www.lagercrantz.com
Slide 28: 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 29: The share & owners
The share & owners • B share listed on Nasdaq Owners 2023-03-31 Shares Votes Stockholm, Large Cap Anders Börjesson & Tisenhult-gruppen 5.6% 28.7% • Ticker: LAGR B Swedbank Robur Funds 12.1% 8.5% SEB Investment Funds 11.8% 8.3% Fidelity Investments (FMR) 10.0% 7.0% Lannebo Funds 6.3% 4.4% Jörgen Wigh