Lagercrantz Group Ab Class B · OMXSTO:LAGR_B
Lagercrantz Group Ab Class B — FY2013/14 Earnings Presentation
20 slides from Lagercrantz Group Ab Class B's earnings presentation, May 8, 2014
Slide 1: Year-end report 2013/14
Year-end report 2013/14 1 April 2013 – 31 March 2014 (12 months) 8 May 2014 Jörgen Wigh, President and CEO Bengt Lejdström, CFO
Slide 2: Technology group with leading positions in niches
Introduction to Lagercrantz Group Technology group with leading positions in niches Lagercrantz Group Electronics Mechatronics Communications Niche Products 11 profit centres 7 profit centres 9 profit centres 6 profit centres 6 countries 5 countries 4 countries 2 countries Technology group in expa
Slide 3: Divisions
Introduction to Lagercrantz Group Divisions Electronics Mechatronics Communications Niche Products • Enclosures for electronics • Electrical connection systems • Digital image/technical security • Niche oriented product • Lighting control • Electrical security • Design software, access- and companie
Slide 4: Business conditions
Year-end Report Business conditions Group comments 2013/14 The market was basically stable during the year and characterised by gradual, slow improvement. Component volumes were stable during the early part of the year, but increased slowly during the remainder of the year. The underlying organi
Slide 5: Business conditions – Divisions
Year-end Report Business conditions – Divisions Comments fourth quarter (Jan-Mar 2014) Electronics: Sales of lighting-related products developed well during the period. Increased sales were also noted for products in the marine sector. Acquisitions contributed to the gains in earnings and sales.
Slide 6: Year-end Report 2013/14
Year-end Report 2013/14 April 2013–March 2014 Net revenue for the period increased by 9 percent to MSEK 2,546 (2,328). which meant organic growth of 3 percent, not including currency effects. Operating profit increased by 14 percent to MSEK 242 (213). Operating margin increased to 9.5 percen
Slide 7: Fourth quarter 2013/14
Year-end Report Fourth quarter 2013/14 January–March 2014 Net revenue for the fourth quarter increased by 12 percent to MSEK 694 (619). 8 percent of which was organic growth, not including currency effects. Operating profit increased with 14 percent to MSEK 67 (59). Operating margin was 9.7
Slide 8: Outcome by division
Year-end Report Outcome by division NET SALES 2013/14 2012/13 MSEK 12 months Q4 Q3 Q2 Q1 12 months Q4 Q3 Q2 Q1 apr - mar apr - mar Electronics 691 186 178 157 170 675 180 172 161 162 Mechatronics 749 186 190 185 188 651 165 156 162 168 Communications 802 229 212 169 192 785 216 210 178 181 Niche Pro
Slide 9: Growth organically and via acquisitions
Year-end Report Growth organically and via acquisitions April 2013 - March 2014 Apr - Mar 2012/13 FX Organic M&A 2013/14 MSEK Net sales 2 328 -3 74 147 2 546 y-o-y 0% 3% 6% 9% CM 812 -3 36 82 926 y-o-y 0% 4% 10% 14% EBIT 213 -1 6 25 242 y-o-y 0% 3% 12% 14% EBT 200 -1 13 19 230 y-o-y 0% 6% 9% 15% 9
Slide 10: Revenue and profit
Revenue and profit Moving 12-month quarterly data Net sales Result after finance items 3 000 250 Result after finance items, MSEK 2 500 200 Net sales, MSEK 2 000 Operative improvements Acquisitions 150 (product companies) 1 500 100 1 000 Action program Recovery during recession Acquisitions 50 500 D
Slide 11: Lagercrantz share – now on Mid Cap
Lagercrantz share – now on Mid Cap Market capitalisation as of 31/3 2014 was MSEK 2,861 Market capitalisation as of 31/3 2013 was MSEK 1,987 Market capitalisation as of 31/3 2005 was MSEK 465 On 2 January 2014 the Lagercrantz Group class B share was moved from the NASDAQ OMX Stockholm Stock Exchange
Slide 12: Important issues going forward
Important issues going forward Continue along the present path. Growth issues increasingly important. Focus on continued value added. Acquisitions – of leading companies in expansive niches. 12
Slide 13: 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 finance items Return on equity of not less than 25% 13
Slide 14: Situation-responsive strategies/measures
Situation-responsive strategies/measures We adapt measures to be taken to each company’s individual situation. Niche orientation involves different situations, opportunities and challenges for each individual company. Focus and flexibility close to markets, customers and suppliers. Dedicated
Slide 15: Focus on value added
Focus on value added Gross margin, % Focus on adding value 31.6 and gross margins. 30.5 Goal formulation 28.0 29.0 26.3 26.5 Training 24.5 25.3 20.8 21.2 Phase-out of products with low margins. Higher proportion of proprietary products. Acquisition of businesses with higher 04/05 05/06 0
Slide 16: Broadening operations
Broadening operations Distribution of consolidated sales, percent 3 3 9 6 14 Service and other 13 Systems integration 13 Niche production 33 Proprietary products Value-adding trade 62 44 2006/07 2013/14 16
Slide 17: Acquisitions
Acquisitions 2006 Nordic Alarm (Communications) Elpress-gruppen (Mechatronics) K&K Oy (Communications) 2007 Direktronik (Communications) System Solution AS (Electronics) 2008 CAD Kompagniet A/S (Communications) Cobs AB (Communications) 2010 Norwesco AB (Mechatronics) Three acquisitions during SwedWi
Slide 18: El-produkter
El-produkter El-produkter designs, markets and sells LED-lighting including, inter alia, lighting design support. The products are sold under its own brand for the professional installer market in Norway. The company is headquartered in Ullsteinvik and has aggregate annual sales of over MNOK 5
Slide 19: 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 gives more legs to stand on. Decentralisation makes for committed employees. St
Slide 20: Thank you!
Lagercrantz Group Thank you!