YEAR-END REPORT 2015/16

1 April 2015 –31 March 2016 (12 months)

Net revenue increased by 7 percent to MSEK 3,057 (2,846).
Operating profit increased by 14 percent to MSEK 315 (276), which means an operating margin of 10.3 percent (9.7).
Profit after financial items increased by 16 percent to MSEK 307 (265).
Profit after taxes amounted to MSEK 241 (203). Earnings per share after dilution increased by 18 percent and amounted to SEK 3.54 (2.99).
The return on equity was 25 percent (24). The equity ratio at the end of the period was 40 percent compared to 44 percent at the start of the financial year.
Three acquisitions were made during the 2015/16 financial year, with combined annual revenue of approximately MSEK 370. In addition, the company Betch Data A/S was divested, with annual sales of about MDKK 180.
After the end of the period, Kondator AB was acquired with annual revenue of about MSEK 60.
During the period, a 3:1 share split was completed.
The Board of Directors proposes an increase in the dividend to SEK 1.75 (1.50) per share.

1 January – 31 March 2016 (fourth quarter)

Net revenue for the fourth quarter amounted to MSEK 790 (784).
Operating profit increased by 8 percent to MSEK 84 (78), equivalent to an operating margin of 10.6 percent (10.0).
Profit after financial items increased by 9 percent to MSEK 81 (74) and profit after taxes amounted to MSEK 66 (56).

Lagercrantz Group AB (publ) PO Box 3508 SE-103 69 Stockholm, Sweden Phone +46 8 700 66 70 Corporate identity no. 556282-4556 Registered office Stockholm www.lagercrantz.com

STATEMENT OF THE CHIEF EXECUTIVE

AN ACQUISITION-INTENSIVE YEAR

The past year

During the 2015/16 financial year, Lagercrantz continued to perform well. Profit reached MSEK 307, before taxes, which is a new record level for the sixth consecutive year. The increase in profit for the year amounted to 16 percent. The operating margin, (EBIT percent) of 10.3 percent was also an all-time high and earnings per share amounted to SEK 3.54 (2.99).

The trend in terms of business volume was stable overall during the year despite a turbulent external environment. Low interest rates are stimulating the economies where the Group operates, but economic activity still did not gain momentum due to global and geopolitical uncertainty. The Group's largest markets Sweden and Denmark showed a positive development while the Norwegian market weakened due to the low oil price ‒ indirectly affecting construction markets, which the Group's companies are focused on. The Finnish market, which is a smaller one for the Group, still remained at a low level.

During the calendar year 2015 and so far in 2016, we attracted seven more companies to become a part of our Group. It is evident that our concept is attractive for many sellers. Companies can continue to operate independently after they have joined the Group, with their own profile and brand and previous location, which are usually the most important factors explaining why they want to be part of the Lagercrantz Group. We integrate them smoothly and methodically support them with growth-related questions, etc. More sellers have gradually come to understand and appreciate our increasingly clear focus on product companies with growth and export ambitions.

The stock market took notice of Lagercrantz during the year, leading to new all-time highs in respect of the share price. The market capitalisation as of 31 March 2016 amounted to approx. MSEK 5,300, equivalent to SEK 77.50 per share. The B share is listed on Nasdaq Stockholm's Mid-Cap segment and in October 2015 we also carried out a 3:1 split, which has resulted in increased focus on Lagercrantz from the stock market and investors.

Consistent strategy behind successes

Behind Lagercrantz Group's strong performance and ability to grow in a stagnant external environment, lies the strategy that we have been pursuing consistently for the past few years. The organisational model involving decentralisation and management by objectives is well-established. Each subsidiary works according to clearly defined earnings and

working capital targets as part of a business plan, which is adopted annually, including concrete actions and initiatives. Management by objectives also encourages the identification of new opportunities when the market shows limited growth.

The acquisition strategy is another important success factor. We are continuing to acquire profitable technology companies with strong market positions in niches. The seven acquisitions we completed during 2015 and 2016, will add about MSEK 530 to our business volume on an annual basis. Of the seven acquisitions, Cue Dee and Nikodan were slightly larger. They will serve as key building blocks in the development of the Mechatronics and Niche Products divisions. During the financial year, we also decided to leave the software distribution business through the divestment of Betech Data A/S. The divestment was carried out in February 2016 and will reduce the business volume of the Communications division by about MDKK 180 on an annual basis, but it will raise the margins of the division and the Group.

Ultimately, the focus on increasing added value is an important reason behind the Group's success. With very specialised companies, we want to quickly meet customer demands by developing and adapting products and solutions that create added value. Value added in the Group also increases as the proportion of proprietary products rises. Proprietary products currently represent almost 50 percent of sales and the gross margin has risen consistently since 2004/2005 from 21 percent to about 35 percent of sales.

I want to end the year by expressing my heartfelt thanks to all our dedicated employees for their outstanding work and fantastic efforts during the year.

Future

Our business concept is strong and with a continued positive underlying trend in the market, the opportunities for Lagercrantz are still good. Growth in existing units is high on the agenda and our balance sheet allows for further acquisitions. By continuing to boost the proportion of proprietary products through acquisitions of market-leading niche product companies, there is good potential to continue growing our margins and profitability. The overall situation gives me a strong belief in the future of Lagercrantz.

May 2016

Jörgen Wigh President and CEO

NET REVENUE AND PROFIT

12 months, April 2015 – March 2016

Consolidated net revenue for the financial year amounted to MSEK 3,057 (2,846), an increase of 7 percent. The business situation is generally estimated to remain stable and no clear signs of a slowdown were noted. The Group's units in Sweden and Denmark continued to develop positively, through domestic sales and exports, while the performance was weak in Norway and Finland. Through the acquired units, the Group has a larger presence in the North American and Chinese markets, where sales have developed positively.

Acquired businesses made a contribution of MSEK 376 to net revenue. Growth in comparable units, i.e. excl. acquisitions and divested operations, was 1 percent measured in local currency. The currency effect on net revenue was MSEK 4.

Operating profit for the financial year increased by 14 percent to MSEK 315 (276). Operating margin increased to 10.3 percent (9.7). The improvement in profit was primarily explained by acquired units and a continued strong performance by a number of the Group's product companies, mainly in the Mechatronics and Niche Products divisions. After the divestment of the software distributor Betech Data A/S, proprietary products represent an increasingly large proportion of the Group's sales, equivalent to 48 percent of sales during the most recent 12-month period.

Profit after net financial items increased by 16 percent to MSEK 307 (265), which is an all-time high for a 12-month period. Total currency effects on the profit after net financial items amounted to SEK 5 M (5).

Profit after taxes for the financial year amounted to MSEK 241 (203). Earnings per share (after split) after dilution for the 2015/16 financial year increased by 18 percent and amounted to SEK 3.54, compared to SEK 2.99 for the 2014/15 financial year.

Fourth quarter, January – March 2016

Net revenue for the fourth quarter of the financial year amounted to MSEK 790 (784), equivalent to an increase of 1 percent. Acquired businesses made a contribution of MSEK 106 to net revenue. Growth in comparable units, measured in local currency, was -4 percent. The currency effect on net revenue was MSEK -7. The weaker performance compared to the previous year was mainly related to the electronics distribution units in the Electronics division, and the fact that project sales in the Niche Products division had an exceptionally strong year-earlier period. During the quarter, the software distribution business was divested in Denmark

and Norway, which had a negative impact on revenue during the period compared to the previous year of about MSEK 65.

Operating profit for the fourth quarter of the financial year amounted to MSEK 84 (78), equivalent to an increase of 8 percent and an operating margin of 10.6 percent (10.0). Operating profit for the quarter, excluding net non-recurring effects, was MSEK 82. Non-recurring effects included the divestment of Betech Data A/S with pertaining remeasurement of intangible values and restructuring costs, net MSEK +10, conversion of contingent consideration MSEK +5, goodwill impairment MSEK -9, and other structural measures MSEK - 4. These items are recognised in the income statement under consolidation items.

Profit after net financial items for the fourth quarter increased by 9 percent to MSEK 81 (74). Total currency effects on the profit after net financial items amounted to MSEK 0 (2).

Profit after taxes for the fourth quarter increased by 18 percent to MSEK 66 (56), equivalent to earnings per share (after split) after dilution of SEK 0.97 (0.82). Profit after taxes was positively impacted by a new corporation tax rate in Denmark.

Divisions

	Net revenue			Operating profit
	3 months	3 months	12 months	12 months	3 months	3 months	12 months	12 months
MSEK	Jan-Mar 2015/16	Jan-Mar 2014/15	Apr-Mar 2015/16	Apr-Mar 2014/15	Jan-Mar 2015/16	Jan-Mar 2014/15	Apr-Mar 2015/16	Apr-Mar 2014/15
Electronics	202	226	838	803	11	19	71	66
Operating margin					5.6%	8.4%	8.5%	8.2%
Mechatronics	247	209	1,007	815	36	30	150	120
Operating margin					14.6%	14.4%	14.9%	14.7%
Communications	175	218	719	839	16	10	47	53
Operating margin					8.9%	4.6%	6.5%	6.3%
Niche Products	166	131	493	389	27	28	74	61
Operating margin					16.1%	21.4%	15.0%	15.7%
Parent Company /consolidation items	-	-	-	-	-6	-9	-27	-24

GROUP TOTAL	790	784	3,057	2,846	84	78	315	276
Operating margin					10.6%	10.0%	10.3%	9.7%
Financial items					-3	-4	-8	-11
PROFIT BEFORE TAXES					81	74	307	265

NET REVENUE AND PROFIT BY DIVISION, FOURTH QUARTER

Electronics

Net revenue for the fourth quarter decreased to MSEK 202 (226). Operating profit was MSEK 11 (19), equivalent to an operating margin of 5.6 percent (8.4). The change was mainly explained by lower sales in the division's electronics distribution units, and the development in the Norwegian market was particularly weak. The division's result was also charged with restructuring costs in Norway of about MSEK 2.

Mechatronics

Net revenue for the quarter increased by 18 percent to MSEK 247 (209). Operating profit for the quarter increased by 20 percent to MSEK 36 (30), equivalent to an operating margin of 14.6 percent (14.4). Additional business volume from acquisitions and a strong performance in electrical connection systems and enclosures were important reasons for the improvement.

Communications

Net revenue for the fourth quarter decreased to MSEK 175 (218). Operating profit for the quarter increased by 60 percent to MSEK 16 (10), which is equivalent to an operating margin of 8.9 percent (4.6). The divestment of Betech Data A/S impacted revenue negatively by about MSEK 65 compared to the previous year. The divestment will reduce the business volume in the Communications division, but will raise the

division's margins. The business was divested on 31 January 2016 with only a marginal impact on the division's earnings. Higher revenue and improved profitability in digital imaging/technical security explained the increased profit. Most of the recently acquired control technology units also performed well.

Niche Products

Net revenue for the fourth quarter increased by 27 percent to MSEK 166 (131). Operating profit for the quarter amounted to MSEK 27 (28), equivalent to an operating margin of 16.1 percent (21.4). The previous year's result was positively impacted by project-related sales of storage solutions for the food processing industry.

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities during the financial year amounted to MSEK 257, compared to MSEK 268 for the 2014/15 financial year.

Gross investments in non-current assets amounted to MSEK 73 (38) during the financial year. Larger items related to a new product platform in digital imaging/technical security and new production equipment in the Mechatronics division.

PROFITABILITY AND FINANCIAL POSITION

Consolidated operating profit before amortisation of intangible assets (EBITA) during the financial year amounted to MSEK 355 (295), equivalent to an EBITA margin of 11.6 percent (10.4). EBITA for the fourth quarter of the financial year amounted to MSEK 95 (84), equivalent to an EBITA margin of 12.0 percent (10.7).

The return on equity for the financial year amounted to 25 percent (24) and the return on capital employed was 21 percent (22). The Group's metric for return on working capital (P/WC) was 58 percent (58).

Equity per share (after split) totalled SEK 15.22 at the end of the financial year, compared to SEK 13.53 at the beginning of the financial year. Aside from profit, this metric was also affected by dividends paid, currency-related translation effects, redemption of options and repurchase of own shares. During the period, 675,000 options for B shares were issued for a premium of MSEK 3, and 150,000 own shares were repurchased for a total of MSEK 10.

The equity ratio was 40 percent, compared to 44 percent at the start of the financial year.

At the end of the period, net financial indebtedness amounted to MSEK 551 (302), excluding pension liability. The increase was primarily attributable to acquisition of businesses. The net debt/equity ratio, excluding provisions for pensions, amounted to 0.5 (0.3). The pension liability at the end of the financial year amounted to MSEK 55 (68) and was mainly impacted by actuarial assumptions.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's internal net revenue for the financial year amounted to MSEK 39 (34) and profit after net financial items was MSEK 261 (234). The result includes exchange rate adjustments on intra-Group lending of MSEK 2 (1) and dividends from subsidiaries of MSEK 249 (218).

Net investments in non-current assets amounted to MSEK 0 (0). The Parent Company's equity ratio was 50 percent (56).

Employees

At the end of the period, the number of employees in the Group was 1,230, which can be compared to 1,139 at the beginning of the financial year. During the financial year, 102 employees were added through acquisitions.

Share capital

The share capital amounted to MSEK 48.9 at the end of the period. During the third quarter, a 3:1 share split was completed, which means that the number of shares in the company increased when each share was split into three (3) shares.

The quota value per share (after split) was SEK 0.70. Classes of shares were distributed as follows on 31 March 2016:

Classes of shares
-------------------	--

A shares	3,263,802
B shares	66,256,125
Repurchased B shares	-1,675,900
Total	67,844,027

At 31 March 2016, Lagercrantz Group held 1,675,900 own Class B shares (after split), equivalent to 2.4 percent of the total number of shares and 1.7 percent of the votes in the Lagercrantz Group. During the financial year, 221,450 repurchased own Class B shares were sold in connection with redemption of options in outstanding incentive programmes for MSEK 6 in total, and 150,000 own Class B shares were repurchased for MSEK 10 in total. In addition, 502,950 outstanding options (after split) were repurchased for a total of MSEK 13. Repurchased shares cover, inter alia, the company's obligations under outstanding call option programmes for repurchased shares, in which a total of 1,622,500 options (after split) have been acquired by senior executives. This refers to allocations in 2013, 2014 and 2015 of options still outstanding on 31 March 2016. The redemption price for each respective programme is SEK 41.80, SEK 53.90, and SEK 78.80 per share (after split).

During the third quarter, 675,000 options were issued for Class B shares with a redemption price of SEK 78.80 (after split) in accordance with the resolution of the 2015 AGM. These options were acquired by some 40 managers and senior executives in the Group for MSEK 3 in total.

In connection with Lagercrantz completing the split, the outstanding option programmes were restated as follows:

The 2013/16 programme: the number of options was restated to 675,000 in total, with a redemption price of SEK 41.80.
The 2014/17 programme: the number of options was restated to 675,000 in total, with a redemption price of SEK 53.90.
The 2015/18 programme: the number of options was restated to 675,000 in total, with a redemption price of SEK 78.80.

Acquisitions

In total, three business acquisitions were carried out during the financial year.

During the first quarter, the operations in Cue Dee AB were acquired along with a subsidiary in China. Cue Dee primarily develops and sells aluminium brackets that meet strict requirements in terms of endurance and flexibility. The customers are global and are mainly found in the telecommunications sector and consist of network providers, operators and installers. Cue Dee generates annual sales of about MSEK 180 with good profitability. The business has been part of Lagercrantz's Mechatronics division as from April 2015.

During the second quarter, the operations in Landauer Nordic AB were acquired with a pertaining subsidiary in the USA. The company develops and sells products and services for radon monitoring. The company has its head office in Uppsala and a subsidiary in Chicago, USA. Landauer Nordic generates annual sales of about MSEK 40 with good profitability. Landauer Nordic forms part of the Lagercrantz Communications division as from September 2015.

In addition, the Danish company Nikodan Conveyor Systems A/S was acquired during the third quarter. Nikodan develops, sells and manufactures customised conveyor belt solutions and product handling systems. Nikodan's customers are industrial customers with high demands for automation. Annual sales amount to about MSEK 150 with good profitability. Nikodan forms part of the Niche Products division as from December 2015.

Estimated consideration for the businesses acquired during the financial year amounted to MSEK 450. This amount includes estimated contingent consideration of MSEK 106, which represents 85 percent of the maximum outcome. The outcome depends on the profit achieved by the companies.

Transactions costs for the three acquisitions made during the financial year amounted to MSEK 2, and are included in Administrative expenses in the income statement.

As a result of the acquisitions carried out during the financial year, goodwill in the Group increased by MSEK 203 on the balance sheet date and other intangible non-current assets, mostly related to proprietary products and customer relationships, increased by MSEK 190. Other non-current assets increased by MSEK 27. The deferred tax liability related to the acquisitions amounted to MSEK 43.

The effect of the completed acquisitions on consolidated revenue during the financial year was MSEK 269 and the effect on profit before taxes was MSEK 42 after acquisition costs. Had the acquired operations been consolidated as of 1 April 2015, the effect on revenue and profit before taxes would have been MSEK 376 and MSEK 58, respectively, after acquisition costs.

During the financial year, the difference between contingent consideration reserved and paid of MSEK 5 was taken up as revenue as other operating income. The annual impairment testing resulted in impairment losses of MSEK 9 in respect of goodwill, which are recognised as other operating expenses in the consolidated income statement. During the financial year, MSEK 7 (20) was paid in contingent consideration for previous acquisitions.

	Redovisat värde i	Verkligt värde	Verkligt värde i
Förvärvade bolags nettotillgångar vid förvärvstidpunkten	bolagen	justering	koncernen
Immateriella anläggningstillgångar	6	184	190
Övriga anläggningstillgångar	21	6	27
Varulager och upparbetad men ej fakturerad intäkt	31	0	31
Övriga omsättningstillgångar *)	142	0	142
Räntebärande skulder	-6	0	-6
Övriga skulder	-94	-43	-137
Netto identifierbara tillgångar/skulder	100	147	247
Koncerngoodw ill	-	-	203
Beräknad köpeskilling	-	-	450

The acquisition analysis below is preliminary in terms of allocation of the surplus value for Cue Dee AB, Landauer Nordic AB and Nikodan Conveyor Systems A/S:

*) of which, cash and cash equivalents MSEK 64

Accounting policies

The Interim Report for the Group has been prepared in accordance with IAS 34, Interim Financial Reporting. The Interim Report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act, the Swedish Securities Markets Act and the provisions of RFR 2, Accounting for Legal Entities.

The same accounting policies have been applied as in the Annual Report for 2014/15, including with regard to new IFRS standards or interpretations that will only become effective in future periods.

Related-party transactions

Transactions between Lagercrantz and related parties with a significant impact on the company's financial position and results have not occurred, aside from the issuance of options described under Share capital above. In addition, a divestment of a minor industrial property has been made at book value. The buyer is an employee and former owner of one of the Group's subsidiaries.

Risks and uncertainty factors

The most important risk factors for the Group are state of the economy, structural changes in the market, supplier and customer dependence, the competitive situation and foreign exchange trends. The Parent Company is impacted by the abovementioned risks and uncertainty factors through its capacity as owner of subsidiaries. For additional information, please refer to the 2014/15 Annual Report.

Post-balance sheet events

Lagercrantz acquired Kondator AB on 27 April 2016. The company develops and markets ergonomic, computer-related accessories that are mainly used in offices. Customers mainly consist of office furniture manufacturers, resellers of office furniture and specialised resellers within the ergonomics field. The company's operations are based in Tyresö outside Stockholm and it generates annual sales equivalent to about MSEK 60 with good profitability.

Kondator forms part of the Lagercrantz Niche Products division as from April 2016.

Annual General Meeting 2016

The 2016 Annual General Meeting (AGM) will be held on 30 August 2016. In order to have a matter addressed at the AGM a request must be received from the shareholder no later than 10 July 2016. The Annual Report will be published at the end of June/beginning of July 2016.

Notice for the AGM will be published on the company's website not earlier than six weeks and not later than four weeks before the AGM. All shareholders whose names are recorded in the share register five days before the AGM can participate in person, or by proxy. Notice of participation must be given to the company in accordance with the convening notice.

Election Committee

An election committee has been appointed for the 2016 AGM. Suggestions to the election committee from shareholders may be sent to: [email protected]

More information is available at www.lagercrantz.com

Dividend

The Board of Directors in Lagercrantz Group proposes a dividend of SEK 1.75 (1.50) per share. The dividend is equivalent to a total of MSEK 119 (102).

Stockholm, 10 May 2016

Jörgen Wigh President and CEO

REVIEW REPORT

Introduction

We have reviewed the summary interim financial information (interim report) of Lagercrantz Group AB (publ) as of 31 March 2016 and the twelve-month period then ended. The Board of Directors and the President are responsible for the presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

The focus and scope of the review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of the interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope

than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Interim Report, in all material respects, is not prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act.

Stockholm, 10 May 2016

KPMG AB

George Pettersson Jenny Jansson

Authorised Public Accountant Authorised Public Chief Auditor Accountant

Segment information by quarter

The subsidiary K&K Active Oy was moved to the Mechatronics division from the Communications division as of 1 April 2015. Historical earnings data for the divisions have been adjusted accordingly.

Net revenue		2015/16			2014/15
MSEK	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Electronics	202	213	210	213	226	204	189	184
Mechatronics	247	225	254	281	210	187	202	216
Communications	175	216	147	181	217	253	182	187
Niche Products	166	114	100	113	131	89	79	90
Parent Company/consolidation items	-	-	-	-	-	-	-	-
GROUP TOTAL	790	768	711	788	784	733	652	677

Operating profit			2015/16			2014/15
MSEK	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Electronics	11	20	20	20	19	19	15	13
Mechatronics	36	31	40	43	30	26	29	35
Communications	16	17	8	6	10	20	13	10
Niche Products	27	15	15	17	28	13	10	10
Parent Company/consolidation items	-6	-4	-10	-7	-9	-7	-4	-4
GROUP TOTAL	84	79	73	79	78	71	63	64

Consolidated Income Statement, condensed

MSEK	3 months Jan-Mar 2015/16	3 months Jan-Mar 2014/15	Financial year 2015/16	Financial year 2014/15
Net revenue	790	784	3.057	2,846
Cost of goods sold	-517	-530	-1.993	-1,932
GROSS PROFIT	273	254	1.064	914
Selling expenses	-140	-124	-523	-462
Administrative expenses	-66	-56	-245	-188
Other operating income and operating costs	17	4	19	12
OPERATING PROFIT	84	78	315	276
(of which depreciation/amortisation)	(-20)	(-13)	(-77)	(-51)
Net financial items	-3	-4	-8	-11
PROFIT AFTER FINANCIAL ITEMS	81	74	307	265
Taxes	-15	-18	-66	-62
NET PROFIT FOR THE PERIOD	66	56	241	203
EBITA	95	84	355	303

The following information pertains to conditions after the 3:1 split
Earnings per share, SEK	0.97	0.83	3.55	3.00
Earnings per share after dilution, SEK	0.97	0.82	3.54	2.99
Weighted number of shares after repurchases, ('000)	67,844	67,740	67,889	67,719
Weighted number of shares after repurchases adjusted after dilution ('000)	68,109	67,932	68,121	67,965
Number of shares after repurchases during the period ('000)	67,844	67,773	67,844	67,773

In view of the redemption price on outstanding call options during the period (SEK 41.80, SEK 53.90 and SEK 78.80) and the average share price (SEK 66.47) during the most recent 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.3 percent for the most recent 12-month period. For the past quarter, there was a dilutive effect of 0.4 percent as the average share price (SEK 69.72) was higher than the average redemption price for outstanding programmes.

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

MSEK	3 months Jan-Mar 2015/16	3 months Jan-Mar 2014/15	Financial year 2015/16	Financial year 2014/15
Net profit for the period	66	56	241	203
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	14	-2	-14	13
Translation differences transferred to net profit for the period	-4		-4
Items that cannot be reposted to net profit for the period
Actuarial effects on pensions	12	-14	12	-14
Taxes attributable to actuarial effects	-3	4	-3	4
COMPREHENSIVE INCOME FOR THE PERIOD	85	44	232	206

Consolidated Statement of Financial Position, condensed

MSEK	31 March 2016	31 March 2015
ASSETS
Goodwill	802	628
Other intangible non-current assets	505	355
Property, plant and equipment	206	167
Financial assets	10	11
Inventories	379	313
Current receivables	613	552
Cash and bank balances	67	80
TOTAL ASSETS	2,582	2,106
EQUITY AND LIABILITIES
Equity	1,032	917
Non-current liabilities	230	195
Current liabilities	1,320	994
TOTAL EQUITY AND LIABILITIES	2,582	2,106
Interest-bearing assets	67	80
Interest-bearing liabilities, excl. pension liabilities	618	382

Consolidated Statement of Changes in Equity

MSEK	Financial year 2015/16	Financial year 2014/15
Opening balance	917	805
Comprehensive income for the period	232	206
Transactions with owners
Dividend	-102	-90
Redemption and acquisition of options on repurchased shares, net	-5	-4
Repurchase of own shares	-10	-
CLOSING BALANCE	1,032	917

Consolidated Statement of Cash Flows

	3 months Jan-Mar	3 months Jan-Mar	Financial year	Financial year
MSEK	2015/16	2014/15	2015/16	2014/15
Operating activities
Profit after financial items	81	74	307	265
Adjustments for paid taxes, items not included in cash flow, etc.	-9	4	-18	-6
Cash flow from operating activities before changes in working capital	72	78	289	259
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories	-10	10	-32	1
Increase (-)/Decrease (+) in operating receivables	-45	-38	-23	11
Increase (+)/Decrease (-) in operating liabilities	47	45	23	-3
Cash flow from operating activities	64	95	257	268
Investing activities
Investments in businesses	29	-54	-288	-128
Investments in/disposals of other non-current assets, net	-18	-13	-70	-38
Cash flow from investing activities	11	-67	-358	-166
Financing activities
Dividends, redemption of options and repurchase of own shares/options	1	0	-117	-94
Financing activities	-62	0	205	34
Cash flow from financing activities	-61	0	88	-60
CASH FLOW FOR THE PERIOD	14	28	-13	42
Cash and cash equivalents at the beginning of the period	53	52	80	38
Cash and cash equivalents at the end of the period	67	80	67	80

Financial instruments

For all of the Group's financial assets, fair value is estimated to equal the carrying amount. Liabilities measured at fair value consist of contingent consideration payments, which are measured at discounted expected cash flow and are therefore included in level 3 under IFRS 13.

Carrying amount, MSEK	31 March 2016	31 March 2015
Assets measured at fair value	-	-
Assets measured at amortised cost	537	519
TOTAL ASSETS, FINANCIAL INSTRUMENTS	537	519
Assets measured at fair value	184	95
Liabilities measured at amortised cost	852	647
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	1,036	742

Change in contingent consideration	Financial year 2015/16	Financial year 2014/15
Opening balance Liabilities settled during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange rate difference	95 -12 -6 106 1	97 -30 -24 51 1
Carrying amount at end of the period	184	95

Key ratios

			Financial year
	Financial year 2015/16	2014/15	2013/14	2012/13	2011/12
Revenue	3,057	2,846	2,546	2,328	2,265
Change in revenue, %	7	12	9	3	12
Profit after taxes	241	203	177	159	126
Operating margin, %	10.3	9.7	9.5	9.1	8.1
Profit margin, %	10.0	9.3	9.0	8.6	7.5
Equity ratio, %	40	44	43	44	46
Operating profit/Working capital (P/WC), %	58	58	55	52	48
Return on capital employed, %	21	22	22	23	22
Return on equity, %	25	24	24	24	22
Debt/equity ratio, times	0.6	0.4	0.4	0.4	0.3
Net debt/equity ratio, times	0.5	0.3	0.4	0.4	0.2
Interest coverage ratio, times	20	18	16	13	11
Net interest-bearing liabilities (+)/receivables (-), MSEK	551	302	285	248	135
Number of employees at end of period	1,230	1,139	1,010	932	780
Revenue outside Sweden, MSEK	1,991	1,931	1,676	1,553	1,533

Per-share data (after 3:1 split)

		Financial year
Financial year 2015/16	2014/15	2013/14	2012/13	2011/12
67,844	67,773	67,572	67,560	66,651
67,889	67,719	67,632	67,278	66,726
68,121	67,965	67,995	67,503	67,176
4.63	4.06	3.56	3.16	2.74
3.55	3.00	2.62	2.36	1.89
3.54	2.99	2.60	2.36	1.88
3.77	3.94	3.40	2.62	2.61
-0.19	0.62	0.03	0.00	-0.30
15.22	13.53	11.90	10.33	9.30
77.50	52.67	42.33	29.42	19.08

Definitions are found in the 2014/15 Annual Report.

Parent Company Balance Sheet

MSEK	31 March 2016	31 March 2015
ASSETS
Property, plant and equipment	1	1
Financial assets	1,809	1,499
Current receivables	281	109
Cash and bank balances	0	0
TOTAL ASSETS	2,091	1,609
EQUITY AND LIABILITIES
Equity	1,046	905
Untaxed reserves	4	5
Non-current liabilities	20	21
Current liabilities	1,021	678
TOTAL EQUITY AND LIABILITIES	2,091	1,609

Parent Company Income Statement

MSEK	3 months Jan-Mar 2015/16	3 months Jan-Mar 2014/15	Financial year 2015/16	Financial year 2014/15
Net revenue	14	9	39	34
Administrative expenses	-14	-12	-57	-47
Other operating income and operating costs	0	-1	0	-1
OPERATING PROFIT	0	-4	-18	-14
Financial income	35	35	288	258
Financial expenses	-3	-3	-9	-10
PROFIT AFTER FINANCIAL ITEMS	32	28	261	234
Change in untaxed reserves	0	0	0	0
Taxes	-7	-6	-3	-4
NET PROFIT FOR THE PERIOD	25	22	258	230
Other comprehensive income for the period	-	-	-	-
COMPREHENSIVE INCOME FOR THE PERIOD	25	22	258	230

This information is disclosed in accordance with the Swedish Securities Markets Act, the Financial Instruments Trading Act or the regulations of Nasdaq Stockholm. The information was submitted for publication at 1.00 p.m. on 10 May 2016.

Reporting dates

20 July 2016	Quarterly Report Q1 for the period 1 April 2016 –30 June 2016
30 August 2016	Annual General Meeting for the 2015/16 financial year
	26 October 2016 Quarterly Report Q2 for the period 1 July 2016–30 September 2016
	26 January 2017 Quarterly Report Q3 for the period 1 October 2016–31 December 2016
10 May 2017	Year-end Report for the period 1 April 2016–31 March 2017

The Annual Report for the 2015/16 financial year will be published at the end of June/beginning of July on www.lagercrantz.com.

For additional information, please contact Jörgen Wigh, President, phone +46 8 700 66 70 Bengt Lejdström, Chief Financial Officer, phone +46 8 700 66 70

Lagercrantz Group AB (publ) Box 3508, 103 69 Stockholm Phone +46 8 700 66 70 Corporate identity number 556282-4556 www.lagercrantz.com