Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q3 2016/17 Earnings Presentation
23 slides from Lagercrantz Group Ab Class B's earnings presentation, Jan 26, 2017
Slide 1: Interim report Q3 2016/17
Interim report Q3 2016/17 1 April – 31 December 2016 (9 months) 26 January 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 11 profit centres 9 profit centres 14 profit centres 10 profit centres 6 countries 5 countries 4 countries 3 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: Revenues and profits, moving 12-month data
Interim Report Q3, 2016/17 Revenues and profits Moving 12-month quarterly data Net sales Result after finance items 3 500 350 Result after finance items, MSEK 3 000 300 Net sales, MSEK 2 500 250 2 000 Operative improvements 200 Acquisitions (product companies) 1 500 150 Action programme Recovery 1 0
Slide 5: Business conditions
Interim Report Q3, 2016/17 Business conditions The business situation in the main markets, Sweden and Denmark was stable. The operations in Germany performed well and market sentiment in Finland was more positive than before. In the Norwegian market, construction-related activity developed str
Slide 6: Interim Report Q3 2016/17
Interim Report Q3 2016/17 1 October – 31 December 2016 Net revenue was MSEK 798 (768). Growth in comparable units, measured in local currency, amounted to +1 %. Operating profit (EBITA) was up 17 % to MSEK 104 (89). Operating margin (EBITA) was 13.0 percent (11.6). Profits before financial
Slide 7: First nine months 2016/17
Interim Report Q3, 2016/17 First nine months 2016/17 Apr – Dec 2016 Net revenues was MSEK 2,264 (2,267), Growth was -3 percent for comparable units. Operating profit (EBITA) was up 12 % to MSEK 292 (260). Operating margin (EBITA) was 12.8 percent (11.4). Cash flow from operating activities
Slide 8: Outcome per division
Interim Report Q3, 2016/17 Outcome per division NET SALES 2016/17 2015/16 MSEK Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electronics 216 193 202 202 213 210 213 Mechatronics 241 223 280 247 225 254 281 Communications 184 135 134 175 216 147 181 Niche Products 157 133 165 166 114 100 113 Parent company/Consolidation item
Slide 9: Business conditions
Interim Report Q3, 2016/17 Business conditions Electronics; The business situation was largely unchanged from the previous quarter. The division’s companies in lighting control and LED lighting continued to perform well as did the division’s German electronics distribution unit. Mechatronics; The un
Slide 10: Cash Flow
Interim Report Q3, 2016/17 Cash Flow 9 months 9 months MTM Financial year Apr-Dec Apr-Dec Jan - Dec MSEK 2016/17 2015/16 2016 2015/16 Operating activities Profit after financial items 252 226 333 307 Adjustments for paid taxes, items not included in cash flow, etc. 27 -9 18 -18 Cash flow from operat
Slide 11: 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. 11
Slide 12: 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% 12
Slide 13: Focus on value-add
Focus on value-add Focus on adding value and gross margins Gross margin, % 36,4 34,8 Setting goals 31,6 32,1 Training 30,5 28,0 29,0 Customisation 25,3 26,3 26,5 24,5 Service 21,2 Support Phasing-out products with low margins Higher proportion of proprietary products 05/06 06/07 07/0
Slide 14: 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 2 5 6 6 5 5 9 9 8 8 6 7 11 11 12 15 14 12 13 13 13 13 13 Proprietary products 33 32 Value adding 41 distribution 44 54 50 47 54 Niche production 62 59 57 System Integration 48 50 38
Slide 15: Acquisitions
Acquisitions 34 acquisitions since 2006, including: Focus on acquiring leading 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) companies in expansive niches. Leteng AS (Communications) Vanpée & Westerberg A/S (Electronics) Long-term acquisition process 2011 Capax (inkråmsförvärv Ele
Slide 16: Exilight Oy
Exilight Oy Exilight develops, manufactures and markets emergency lighting systems, primarily to the building sector. Customers consist primarily of installation companies and wholesalers. The company’s operations are based in Tampere and Helsinki and it generates annual sales of about MEUR 2.
Slide 17: Skomø A/S
Skomø A/S Skomø develops, manufactures and markets graphic custom- designed imaging materials. Customers consist of car dealers, real estate agents and retail businesses in Denmark. The company’s operations are based in Ebeltoft in Jutland and generates annual sales equivalent to approx. MDKK
Slide 18: GasiQ AB
GasiQ AB The company develops and sells products, which are used in gas welding and soldering. Customers are gas companies, wholesalers and distributors. GasiQ’s head office is located outside Gothenburg Generates annual sales of about MSEK 45 with good profitability. Part of Lagercrantz G
Slide 19: Kondator AB
Kondator AB Kondator develops and markets ergonomic, computer-related accessories, which are primarily used in offices. Customers consist mainly of office furniture manufacturers, resellers of office furniture and specialised resellers in the ergonomics field. The company’s operations are base
Slide 20: Financial overview
Financial overview LTM 11/12 12/13 13/14 14/15 15/16 1612 Net Sales 2 265 2 328 2 546 2 846 3 057 3 054 EBITA 192 223 256 295 355 387 EBITA,% 8.5% 9.6% 10.1% 10.4% 11.6% 12.7% EBT 171 200 230 265 307 333 EBT growth 25% 17% 15% 15% 16% 11% Return on Equity 22% 24% 24% 24% 25% 25% Earnings per share 1
Slide 21: Thank you!
Lagercrantz Group y Thank you!
Slide 22: Board & Management
Appendix Board & Management Board of Directors Management Jörgen Wigh Bengt Lejdström Magnus Söderlind Anders Börjesson Anna Almlöf Lennart Sjölund CFO Executive VP President & CEO Chairman of the Board Roger Bergqvist Peter Hedelius Marika Rindborg Per Ikov Ulf Gladh Sten Alfredsson VP Bus Developm
Slide 23: The share & shareholders
The share & shareholders • The B share is listed on Nasdaq Owners, 31 Dec 2016 Shares Votes Stockholm, Mid Cap Anders Börjesson with family 3,8% 16.4% • Ticker: LAGR B Tom Hedelius 2.1% 14.7% • Liquidity (Dec): 2 MSEK/day Lannebo Funds 13.7% 9.8% SEB Investment Management 12.1% 8.7% Swedbank Robur F