Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — Q2 2016/17 Earnings Presentation
23 slides from Lagercrantz Group Ab Class B's earnings presentation, Oct 26, 2016
Slide 1: Interim report Q2 2016/17
Interim report Q2 2016/17 1 April – 30 September 2016 (6 months) 26 October 2016 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 8 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
Interim Report Q2, 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 Q2, 2016/17 Business conditions The business situation in the Group’s main markets, Sweden and Denmark was stable. The operations in Germany also performed well. In Norway and Finland, sentiment is slightly more positive than before. Proprietary products share of the Group’s sal
Slide 6: Interim Report Q2 2016/17
Interim Report Q2 2016/17 1 July – 30 September 2016 Net revenue was MSEK 684 (711), Growth in comparable units, measured in local currency, amounted to -7 %. EBITA was up 15 % to MSEK 94 (82). EBITA margin was 13.7 percent (11.5). Operating profit was up 12% to MSEK 82 (73). Operating m
Slide 7: First Half Year 2016/17
Interim Report Q2, 2016/17 First Half Year 2016/17 Apr – Sep 2016 Net revenue was MSEK 1,466 (1,499), Growth in comparable units, measured in local currency, amounted to -4 %. EBITA was up 10 % to MSEK 188 (171). EBITA margin was 12.8 percent (11.4). Cash flow from operating activities amo
Slide 8: Outcome per division
Interim Report Q2, 2016/17 Outcome per division NET SALES 2016/17 2015/16 MSEK Q2 Q1 Q4 Q3 Q2 Q1 Electronics 193 202 202 213 210 213 Mechatronics 223 280 247 225 254 281 Communications 135 134 175 216 147 181 Niche Products 133 165 166 114 100 113 Parent company/Consolidation items - - - - - - Group
Slide 9: Business conditions
Interim Report Q2, 2016/17 Business conditions Electronics; Largely unchanged conditions but with lower sales in two of the division’s Danish units. One unit relating to a new generation on the technology side and one unit is facing a weakened market in marine electronics. Within electronics distrib
Slide 10: Cash Flow
Interim Report Q2, 2016/17 Cash Flow 6 months 6 months MTM Financial year MSEK Oct-Sep 2016/17 2015/16 2015/16 2015/16 Operating activities Profit after financial items 163 149 321 307 Adjustments for paid taxes, items not included in cash flow, etc. 17 2 -3 -18 Cash flow from operating activities b
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-added
Focus on value-added 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
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 3 9 6 5 7 6 6 5 5 9 8 8 12 11 11 12 15 13 14 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 49 38
Slide 15: Acquisitions
Acquisitions 33 acquisitions since 2006, including: Focus on acquiring leading companies in expansive niches. 2010 Norwesco AB (Mechatronics) SwedWire AB (Niche Products) Leteng AS (Communications) Long-term acquisition process Vanpée & Westerberg A/S (Electronics) from gross list to integration
Slide 16: 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 17: 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 18: 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 19: Financial overview
Financial overview LTM 11/12 12/13 13/14 14/15 15/16 Sep -16 Net sales 2 265 2 328 2 546 2 846 3 057 3 024 Operating profit (EBITA) 192 223 256 295 355 372 Operating margin (EBITA%) 8.5% 9.6% 10.1% 10.4% 11.6% 12.3% Result (EBT) 171 200 230 265 307 321 EBT growth 25% 17% 15% 15% 16% 10% Return on Eq
Slide 20: Thank you!
Lagercrantz Group y Thank you!
Slide 21: 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 22: The share & shareholders
The share & shareholders • The B share is listed on Nasdaq Owners, 30 Sep 2016 Shares Votes Stockholm, Mid Cap Anders Börjesson with family 3.9% 16.4% • Ticker: LAGR B Tom Hedelius 2.1% 14.7% • Liquidity (Sep): 4.7 MSEK/day Lannebo Funds 13.9% 9.7% • Management and other Board Swedbank Robur Funds 8
Slide 23: Lagercrantz today
Lagercrantz today Stable platform built on a well-functioning business concept and a number of strong market positions in interesting niches. Growing proportion of proprietary products allows for higher margins and strengthens the Group. Decentralisation makes for committed employees. Strategi