Lagercrantz Group — Interim / Quarterly Report 2014

May 8, 2014

Year-end Report 2013/14

1 April 2013 – 31 March 2014 (12 months)

• Net revenue in 2013/14 grew 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), equivalent to an operating margin of 9.5 percent (9.1).
• Profit after finance items increased by 15 percent to MSEK 230 (200).
• Profit after taxes amounted to MSEK 177 (159). Earnings per share after dilution increased by 10 percent and amounted to SEK 7.81 (7.07).
• Cash flow from operating activities amounted to MSEK 231 (177), equivalent to SEK 10.19 (7.87) per share.
• Return on equity came in at 24 percent (24). The equity ratio at the end of the period under review was 43 percent compared to 44 percent at the beginning of the financial year.
• Three acquisitions were made during the 2013/14 financial year, with aggregate annual revenue of approximately MSEK 150.
• The Board of Directors proposes an increase of the dividend to SEK 4.00 (3.25) per share.
• The Class B share of the Lagercrantz Group was moved up to NASDAQ OMX Stockholm Stock Exchange Mid Cap list, effective as of January 2014.

1 January – 31 March 2014 (fourth quarter)

• 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 by 14 percent to MSEK 67 (59), equivalent to an operating margin of 9.7 percent (9.5).
• Profit after finance items increased by 17 percent to MSEK 63 (54) and profit after taxes amounted to MSEK 49 (44).

Lagercrantz Group AB (publ)

P.O. Box 2508, SE-103 69 Stockholm, Sweden Phone: +46-8-700 66 70 Fax: +46-8-28 18 05 Corporate identity number: 556282-4556 Registered office: Stockholm www.lagercrantz.com

STATEMENT OF THE CEO

Continued success for Lagercrantz

The 2013/14 operating year brought more success for Lagercrantz Group. For the fourth consecutive year we managed to generate a record result. Profit for the year amounted to MSEK 230 after net finance items, an increase by 15 percent compared to the prior year's record level. The operating margin of 9.5 percent was also at an all-time high since going public in 2001. Earnings per share amounted to SEK 7.81 (7.07).

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. Project-related sales saw a boost only towards the end of the year. The underlying organic growth was marginally negative during the first two quarters, but increased to 7 percent and 8 percent, respectively, for the third and fourth quarter. These are historically good levels.

The stock market took notice of our successes during the year and new highs were reached for the share price. The market capitalisation of the Lagercrantz Group was approximately MSEK 2,900 as of 31 March, equivalent to SEK 127 per share. In January 2014 the Class B share was moved from the Small Cap List to the Mid Cap List of the Stockholm Stock Exchange, resulting in additional focus on Lagercrantz, particularly among international investors.

Consistent strategy behind the successes

Behind Lagercrantz Group's successes, and the ability to grow in a turbulent environment, lies the strategy which we have been implementing for many years now. The organisational model with decentralisation and management by objective is well established. All subsidiaries operate with clear growth, profit and working capital goals and an annually approved business plan with concrete measures and action plans. Management by objective makes for a challenge to find new opportunities, also when the market is showing modest growth. Successful acquisitions is another important reason for our successes. We are always on active lookout for profitable B2B companies with strong market positions in their respective niches. We made three additional acquisitions during the year, with annual sales which will add approximately MSEK 150 to the business volume. Just short of half of the year's

increase in earnings came as organic growth, while the remainder was generated by acquisitions.

Our focus on increasing value added is another important reason for the Group's successful development. With relatively small, flexible profit centres, we are able to meet our customers' requirements and can adapt our products and solutions, which creates added value for customers as well as suppliers. In our quest to increase value added, we have also in recent years increasingly been acquiring product companies. The proportion of proprietary products has grown and is today more than 30 percent of sales. This has contributed to the positive development of our margins. Since the 2004/05 financial year the gross margin has risen from 21 percent to almost 32 percent.

Future

The development over the last several years leaves us wanting more. Our business concept is strong and a continuing positive underlying trend in the market provides a solid foundation for future growth. Growth is in fact at the top of our agenda and our strong financial position enables us to make more interesting acquisitions. Especially by increasing the proportion of proprietary products, by acquiring market-leading niched product companies, there are good chances of continuing to increase margins as well as profitability. The situation gives me an overall strong belief in the future for Lagercrantz Group.

Future

I close out the year by extending my sincere thanks to all our dedicated employees for their fantastic work and many fine initiatives during the year.

May 2014

Jörgen Wigh President & CEO

NET REVENUE AND RESULT

12 Months April 2013 – March 2014

Consolidated net revenue for the 2013/14 financial year increased by 9 percent to MSEK 2,546 (2,328). Acquired units contributed MSEK 147, which means organic growth of 3 percent for comparable units, measured in local currency.

Gradual improvement of sales during the financial year resulted in stronger organic growth during the third as well as the fourth quarter. Acquired business volume also contributed to the positive development. The markets in Scandinavia showed a positive development for most of the Group's businesses. The German market was stable, while the Finnish market continued to be weak due to the current state of the domestic economy.

Operating profit for the financial year increased by 14 percent to MSEK 242 (213). The operating margin increased to 9.5 percent (9.1). The effect of foreign exchange rate changes on operating profit was MSEK –1 (–2) during the financial year.

Profit after net finance items increased by 15 percent to MSEK 230 (200), which is an all-time high profit for a twelve-month period. The improvement in earnings is explained primarily by acquired units and a positive development for several of the units in divisions Mechatronics and Niche Products. The sales mix continued to move in the direction of a growing proportion of proprietary products, which constituted 33 percent of sales and where the margins are higher. Net finance items was affected by currency effects in the amount of MSEK 0 (–1).

Profit after taxes for the financial year amounted to MSEK 177 (159). Profit after taxes for the prior year was positively affected by one-time effects of MSEK 10, due to recalculation of deferred taxes in accordance with a new tax rate in Sweden.

Earnings per share after dilution for the 2013/14 financial year increased by 10 percent and amounted to SEK 7.81, as compared with SEK 7.07 for the 2012/13 financial year.

Fourth quarter January – March 2014

Net revenue for the fourth quarter of the financial year amounted to MSEK 694 (619), equivalent to an increase of 12 percent. Organic growth, measured in local currency, was 8 percent.

Sales continued to improve at a slow pace, especially in the Scandinavian markets. Finnish market demand continued to be weak.

Operating profit for the quarter amounted to MSEK 67 (59), equivalent to an increase by 14 percent and an operating margin of 9.7 percent (9.5). The improvement in earnings is explained by increased sales of proprietary products in

divisions Mechatronics and Niche Products, and by the result of acquired businesses. The effect of foreign exchange rate changes on operating profit was MSEK 0 (–1) during the fourth quarter.

Profit after financial items for the fourth quarter increased by 17 percent to MSEK 63 (54). The effect of foreign exchange rate changes on net finance items was MSEK 0 (–2).

PROFITABILITY AND FINANCIAL POSITION

The return on equity for the most recent twelve-month period amounted to 24 percent (24) and the return on capital employed was 22 percent (23).

The Group's metric for return on working capital (P/WC) was 55 percent (52). This measurement is taken over a twelvemonth period as operating profit divided by average working capital, where the working capital consists of inventories, trade receivables and trade payables.

Equity per share amounted to SEK 35.74 at the end of the period, as compared with SEK 31.00 at the beginning of the financial year and, aside from by the profit number, was affected by dividend paid as well as currency-related translation effects.

The equity ratio stood at 43 percent as compared with 44 percent at the beginning of the financial year.

At the end of the period the financial net liability amounted to MSEK 285, not including a pension liability, compared with MSEK 248, not including a pension liability, at the beginning of the year. The increase is primarily due to acquisition of businesses. The Group's net debt to equity ratio stood at 0.4, unchanged compared with the situation at the beginning of the financial year.

Divisions

	Net revenue			Operating result
	3 months	3 months	12 months	12 months	3 months	3 months	12 months	12 months
MSEK	Jan-Mar 2013/14	Jan-Mar 2012/13	Apr-Mar 2013/14	Apr-Mar 2012/13	Jan-Mar 2013/14	Jan-Mar 2012/13	Apr-Mar 2013/14	Apr-Mar 2012/13
Electronics	186	180	691	675	18	14	56	48
Operating margin					9.7%	7.8%	8.1%	7.1%
Mechatronics	186	165	750	651	25	22	108	83
Operating margin					13.4%	13.3%	14.4%	12.7%
Communications	229	216	802	785	12	17	51	64
Operating margin					5.2%	7.9%	6.4%	8.2%
Niche Products	93	58	303	217	15	8	45	35
Operating margin					16.1%	13.8%	14.9%	16.1%
Parent Company/ consolidation items	-	-	-	-	–3	–2	–18	–17
GROUP TOTAL	694	619	2 546	2 328	67	59	242	213
Operating margin					9.7%	9.5%	9.5%	9.1%
Finance items					–4	–5	–12	–13
PROFIT BEFORE TAXES					63	54	230	200

NET REVENUE AND PROFIT BY DIVISION, FOURTH QUARTER

Electronics

Net revenue for the quarter amounted to MSEK 186 (180). Sales of lighting-related products developed well during the period. Increased sales were also noted for products in the marine sector.

Operating profit for the quarter increased by 29 percent to MSEK 18 (14). This is equivalent to an operating margin of 9.7 percent (7.8). The earnings and margin gains were mostly due to a growing proportion of lighting products and incremental revenue from acquisitions.

Mechatronics

Net revenue for the quarter increased by 13 percent to MSEK 186 (165). The strong sales growth was mainly due to increased sales of custom cable harnesses for the wind power industry and strong sales of electric enclosures and electric connection systems.

Operating profit for the quarter amounted to MSEK 25 (22), resulting in an operating margin of 13.4 percent (13.3). The strength in earnings is primarily due to good profitability during the quarter in electric enclosures and customised cable harnesses.

Communications

Net revenue for the quarter amounted to MSEK 229 (216). The sales growth was primarily due to increased sales of software for computer-aided design.

Operating profit for the quarter amounted to MSEK 12 (17), equivalent to an operating margin of 5.2 percent (7.9). The lower result was primarily due to a growing proportion of sales of software for computer-aided design at lower margins. In addition lower sales of sales of solutions for digital processing/surveillance and continuing low profitability on the Finnish market affected the result.

Niche Products

Net revenue for the quarter increased by 60 percent to MSEK 93 (58). Revenue was affected in a positive direction by acquisitions and the fact that sales of storage and exposure solutions showed a good development.

Operating profit for the quarter amounted to MSEK 15 (8), equivalent to an operating margin of 16.1 percent (13.8). The earnings and margin gains were mostly due to acquisitions and to increased sales of storage and exposure solutions.

OTHER FINANCIAL INFORMATION

Cash flow and capital expenditures

Cash flow from operating activities during the financial year amounted to MSEK 231 (177). The corresponding numbers for the fourth quarter were MSEK 39 (19). The difference compared to the year before is explained primarily by higher earnings and higher operating liabilities. Investments in noncurrent assets amounted to MSEK 45 (29) on a gross basis during the financial year.

A total of 101,000 own Class B shares were repurchased during the year at an average price of SEK 104.93. In connection with redemption options, a total of 105,250 repurchased Class B shares were sold for a total of MSEK 4. In addition, 136,750 outstanding options were repurchased for a total of MSEK 8 and MSEK 2 was received in connection with subscription of new call options.

MSEK 2 was paid during the year in supplementary purchase money for previous acquisitions.

Parent Company and other consolidation items

The Parent Company's internal net revenue for the year amounted to MSEK 34 (30) and profit after net finance items was MSEK 162 (140). This result includes exchange rate adjustments on intra-Group lending in the amount of MSEK 3 (–4) and dividend income from subsidiaries in the amount of MSEK 149 (138). Investments in non-current assets amounted to a net of MSEK 1 (0).

Available credit facilities were increased during the financial year by MSEK 200. MSEK 400 of the Parent Company's total available credit facilities in the amount of MSEK 700 is in the form of a committed credit facility, with an additional MSEK 300 in supplementary available credit. MSEK 308 (268) of the total credit facilities were utilised at the end of the period under review. The Parent Company's equity ratio stood at 54 percent (53).

Share capital

At the end of the period, the share capital amounted to MSEK 48.9. The quotient value per share is SEK 2.11. The distribution on classes of shares is as follows as of 31 March 2014:

Classes of shares
Class A shares	1,091,966
Class B shares	22,081,343
Class B shares held in treasury	–649,050
Total	22,524,259

As of 31 March 2014, Lagercrantz Group held 649,050 class B shares in treasury, which is equivalent to 2.8 percent of the number of shares outstanding and 2.0 percent of the votes in Lagercrantz Group. The average acquisition cost of the repurchased shares is SEK 43.17 per share. Shares held in treasury cover, inter alia, the Company's obligations under outstanding option programmes, where a total of 545,500 options have been acquired by members of senior management. This refers to awards for the years 2011, 2012 and 2013 on options that remain outstanding. The redemption price under each programme is SEK 57.20, SEK 70.30 and SEK 125.40 per share, respectively.

Employees

At the end of the quarter the number of employees in the Group was 1,010, as compared with 932 at the beginning of the financial year. During the year 38 employees were added through acquisitions.

Acquisitions

A total of three acquisitions of businesses were made during the financial year.

During the first quarter the business in Frontwall i Anderstorp AB was acquired in an asset transaction by Lagercrantz Group's subsidiary Steelo AB. Frontwall is a niched player that designs and delivers store interiors, including so-called shop-in-shop solutions and product displays. Frontwall had sales in 2012 of just over MSEK 30 and is a part of division Niche Products from June 2013.

The business in Asept International AB was acquired during the second quarter. Asept is a niched product company that offers dispenser systems primarily used for liquid foods. The patented products are found among global food producers, restaurant chains and other entities with a need for customised packaging and dispenser solutions. Asept has aggregate annual sales of approximately MSEK 65 and is a part of division Niche Products from August 2013.

The business in El-produkter AS was acquired during the third quarter. This company designs, markets and sell primarily LED lighting, including, among other things, light dimensioning support. The products are sold under proprietary brand names to the professional installer market in Norway. The company has total annual sales of approximately MNOK 50. The company is a part of division Electronics from December 2013.

Estimated consideration for the businesses acquired during the year amounted to MSEK 164. This amount

includes conditional consideration in the amount of MSEK 31 for the companies, which constitutes 55 percent of maximum outcome. The outcome depends on earnings achieved by the companies. Transaction costs for the acquisitions made during the period amounted to MSEK 1, which is included in Administrative costs in the Income Statement.

The acquisitions had the effect of increasing consolidated goodwill by MSEK 63 and other intangible non-current assets by MSEK 76, primarily relating to trademarks, patents and products. The deferred tax liability relating to the acquisitions amounted to MSEK 19.

The effect during the financial year of acquisitions made on the Group's revenue is MSEK 74 and on profit before taxes the effect was MSEK 5 after acquisition costs. Had the acquired businesses been consolidated from 1 April 2013, the effect on revenue and profit before taxes would have been MSEK 133 and MSEK 13, respectively, after acquisition costs.

The acquisition analysis below is preliminary with respect to allocation of surplus values.

	Book value in	Fair value	Fair value
Acquired net assets at time of acquisition	companies	adjustment	condsolidated
Intangible non-current assts	0	76	76
Other non-current assets	5	2	7
Inventories and w ork in progress	25	0	25
Other short-term receivables	39	0	39
Interest-bearing liabilities	- 7	0	- 7
Other liabilities	-20	-19	-39
Net of identified assets/liabilities	42	59	101
Goodw ill	-	-	63
Estimated Purchase price	-	-	164

Accounting policies

This 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 Market Act, and the provisions of RFR 2 Accounting for legal entities. In addition to the new accounting policies for 2014 described below, the same accounting policies are applied in this interim report as in the Annual Report for 2012/13.

The amended standards in IAS 19 regarding pension liabilities applied for the financial year starting 1 April 2013 have affected the Group's financial reports. The opening balance of the pension liability for the 2013/14 financial year increased by MSEK 8 and equity was reduced by MSEK 6, including tax effects taken into account.

The changes in IAS 19 relating to accounting for pensions, where the so-called corridor method disappears, will result in greater volatility in the pension liability and equity. As a consequence thereof Lagercrantz Group has changed its accounting for net liabilities and net indebtedness from the

beginning of the 2013/14 financial year, where the net loan liability is calculated not including provision for pensions. The net indebtedness, including pension liability amounted to MSEK 340 (307) at the end of the financial year.

The new IFRS 13 standard has had the effect of additional disclosure requirements, as described under the heading Financial Instruments on page 10.

Related party disclosures

Transactions between Lagercrantz Group and closely related parties with an effect on the financial position and profit have not occurred, except for writing options as reported under Share capital above.

Risks and uncertainty factors

The most important risk factors for the Group are the state of the economy, structural changes in the market, supplier and customer dependence, the competitive situation and foreign exchange trends.

The Group has adopted a cautious approach and follows changes in the world around us diligently. In other respects, reference is made to the 2012/13 Annual Report. The Parent Company is affected by the above-mentioned risks and

uncertainty factors by virtue of its function as owner of its subsidiaries.

Events after the end of the period

No events of significance for the Company have occurred after the balance sheet date, 31 March 2014.

Annual General Meeting 2014

The 2014 Annual General Meeting will be held 26 August 2014. In order to bring a matter before the Annual General Meeting, a request must be received from the shareholder not later than by 11 July 2014. The Annual Report will be published at the end of June/beginning of July 2014.

Notice for the Annual General Meeting will be published on the Company's website not later than four weeks and not earlier than six weeks before the Meeting. All shareholders whose names are entered in the share register five days before the Annual General Meeting may participate in person, or by proxy. Notice must be given in accordance with instructions contained in the notice.

Election Committee

An election committee has been appointed for the 2014 Annual General Meeting. Suggestions to the Election Committee may be sent to valberedningen@lagercrantz.com

More information is available at www.lagercrantz.com

Dividend

The Board of Directors of Lagercrantz Group AB propose a dividend of SEK 4.00 (3.25) per share. This is equivalent to a total of MSEK 90 (73).

Stockholm, 8 May 2014

Jörgen Wigh President & CEO

REVIEW REPORT

Introduction

We have reviewed the summary interim financial information (interim report) of Lagercrantz Group AB (publ) as of 31 March 2014 and the twelve-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

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

Stockholm, 8 May 2014

KPMG AB

Joakim Thilstedt Authorised Public Accountant

Segment Information by Quarter

Net revenue		2013/14			2012/13
MSEK	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q 1
Electronics	186	178	157	170	180	172	161	162
Mechatronics	186	190	185	188	165	156	162	168
Communications	229	212	169	192	216	210	178	181
Niche Products	93	83	66	61	58	49	55	55
Parent Company/consolidation eliminations
GROUP TOTAL	694	663	577	611	619	587	556	566

Operating profit				2013/14			2012/13
MSEK	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q 1
Electronics	18	15	11	11	14	13	10	11
Mechatronics	25	27	31	25	22	17	24	20
Communications	12	14	11	15	17	20	15	12
Niche Products	15	12	9	9	8	6	10	11
Parent Company/consolidation eliminations	–3	–5	–4	–6	–2	–4	–6	–5
GROUP TOTAL	67	63	58	54	59	52	53	49

Consolidated Income Statement

	3 months Jan-Mar	3 months Jan-Mar	Financial year	Financial year
MSEK	2013/14	2012/13	2013/14	2012/13
Net revenue	694	619	2,546	2,328
Cost of goods sold	–480	–434	–1,741	–1,617
GROSS PROFIT	214	185	805	711
Selling costs	–108	–94	–409	–364
Administrative costs	–42	–41	–161	–146
Other operating income and expense	3	9	7	12
OPERATING PROFIT	67	59	242	213
(of which depreciation)	(–5)	(–11)	(–37)	(–39)
Net finance items	–4	–5	–12	–13
PROFIT AFTER FINANCE ITEMS	63	54	230	200
Taxes	–14	–10	–53	–41
NET PROFIT FOR THE PERIOD	49	44	177	159
Earnings per share, SEK Earnings per share after dilution, SEK	2.18 2.16	1.95 1.94	7.85 7.81	7.09 7.07
Weighted number of shares outstanding after
repurchases ('000)	22,524	22,520	22,544	22,426
Weighted number of shares outstanding after repurchases adjusted for dilution ('000)	22,673	22,696	22,665	22,501

In view of the strike price on outstanding call options during the period (SEK 57.20, SEK 70.30 and SEK 125.40) and the average market price of the share during the most recent twelve-month period when the option programmes where outstanding (SEK 106.67), there was a dilutive effect of 0.5 percent for the most recent twelve-month period. For the most recent quarter, there was a dilutive effect of 0.7 percent as the average market price (SEK 123.74) was higher than the strike price for outstanding programmes.

Consolidated Statement of Comprehensive Profit

MSEK	3 months Jan-Mar 2013/14	3 months Jan-Mar 2012/13	Financial year 2013/14	Financial year 2012/13
Net profit for the period	49	44	177	159
Other comprehensive profit
Items that have been or may be converted into profit for the period
Change in translation reserve	2	–15	15	–23
Items that may not be converted into profit for the period
Actuarial effects on pensions	0	0	0	2
COMPREHENSIVE PROFIT FOR THE PERIOD	51	29	192	138

Consolidated Statement of Financial Position

MSEK	2014-03-31	2013-03-31
ASSETS
Goodwill	584	515
Other intangible non-current assets	296	228
Tangible non-current assets	140	125
Financial non-current assets	9	10
Inventories	279	232
Short-term receivables	531	459
Cash and cash equivalents	38	36
TOTAL ASETS	1,877	1,605
EQUITY AND LIABILITIES
Equity	805	699
Long-term liabilities	211	148
Current liabilities	861	758
TOTAL EQUITY AND LIABILITIES	1,877	1,605
Interest-bearing assets	38	36
Interest-bearing liabilities, not including pension liabilities	323	284

Financial Instruments

For all of the Group's financial assets fair value is estimated to equal carrying value. Liabilities at fair value are conditional consideration, valued as discounted estimated cash flow and are therefore included in level 3 in accordance with IFRS 13.

Carrying value, MSEK	2014-03-31	2013-03-31
Assets at fair value	-	-
Assets valued at accrued acquisition value	479	400
TOTAL ASSETS, FINANCIAL INSTRUMENTS	479	400
Liabilities at fair value	97	72
Liabilities valued at accrued acquisition value	535	475
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	632	547

Change in conditional consideration	Financial year 2013/14
Opening balance Liabilities settled during the year	72 –2
Revaluation of liabilities during the year	–4
The year's liabilities from acquisitions during the year Translation difference	31 0
Carrying value at end of period	97

Consolidated Statement of Cash Flows

Financial 3 months 3 months	Financial
Jan-Mar Jan-Mar year MSEK 2013/14 2012/13 2013/14	year 2012/13
Operating activities
Profit after finance items 63 54 230	200
Adjustment for paid taxes, items not
included in cash flow, etc. –7 –2 –15	–25
Cash flow from operating activities before
changes in working capital 56 52 215	175
Cash flow from changes in working capital
Increase (–)/Decrease (+) in inventories –6 18 –18	21
Increase (–)/Decrease (+) in operating receivables –77 –56 –30	3
Increase (+)/Decrease (–) in operating liabilities 66 5 64	–22
Cash flow from operating activities 39 19 231	177
Investment activities
Investment in businesses 0 –2 –130	–199
Investment in/disposal of other
non-current assets, net –21 –2 –45	–29
Cash flow from investment activities –21 –4 –175	–228
Financing activities
Dividend, option redemption & repurchase
of own shares/options 0 0 –86	–51
Other financing activities –16 –66 32	102
Cash flow from financing activities –16 –66 –54	51
CASH FLOW FOR THE PERIOD 2 –51 2	0
Cash and cash equivalents at beginning of period 36 88 36	37
Translation difference in cash and cash equivalents 0 –1 0	–1
Cash and cash at end of period 38 36 38

Statement of Changes in Consolidated Equity

	Financial	Financial
MSEK	year 2013/14	year 2012/13
Opening balance	699	620
Change in accounting policy IAS 19	-	–8
Comprehensive profit for the period	192	138
Transactions with owners
Dividend	–73	–62
Exercise and acquisition of options on repurchased shares, net	–2	11
Repurchase of own shares	–11	-
CLOSING BALANCE	805	699

Key Financial Indicators

	Financial year
	2013/14	2012/13	2011/12	2010/11	2009/10
Revenue	2,546	2,328	2,265	2,029	1,720
Change in revenue, %	9	3	12	18	-20
Profit after taxes	177	159	126	102	42
Operating margin, %	9.5	9.1	8.1	7.2	3.9
Profit margin, %	9.0	8.6	7.5	6.8	3.4
Equity ratio, %	43	44	46	42	56
Operating profit/Working capital(P/WC), %	55	52	48	45	20
Return on capital employed, %	22	23	22	21	11
Return on equity, %	24	24	22	20	8
Debt equity ratio	0.4	0.4	0.3	0.5	0.0
Net debt equity ratio	0.4	0.4	0.2	0.4	0.0
Interest coverage ratio	16	13	11	12	6
Net interest-bearing liabilities (+)/receivables (–), MSEK	285	248	135	193	-11
Number of employees at end of period	1,010	932	780	731	608
Revenue outside Sweden, MSEK	1,676	1,553	1,533	1,355	1,155

Per-share data

	Financial year
	2013/14	2012/13	2011/12	2010/11	2009/10
Number of shares outstanding at end of period after repurchases ('000)	22,524	22,520	22,217	22,196	21,978
Weighted number of shares outstanding after repurchases ('000)	22,544	22,426	22,242	22,046	21,978
Weighted number of shares outstanding after repurchases & dilution ('000)	22,665	22,501	22,392	22,133	21,978
Operating profit per share after dilution, SEK	10.68	9.47	8.22	6.64	3.05
Earnings per share, SEK	7.85	7.09	5.66	4.63	1.91
Earnings per share after dilution, SEK	7.81	7.07	5.63	4.61	1.91
Cash flow from operating activities per share after dilution, SEK	10.19	7.87	7.82	5.33	3.96
Cash flow per share after dilution, SEK	0.09	0.00	-0.89	1.22	–1.37
Equity per share, SEK	35.70	31.00	27.90	24.60	22.50
Latest market price per share, SEK	127.00	88.25	57.25	61.75	31.50

Definitions are found in the 2012/13 Annual Report.

.

Parent Company Balance Sheet

MSEK	2014-03-31	2013-03-31
ASSETS
Tangible non-current assets	0	0
Financial non-current assets	1,346	1,221
Short-term receivables	70	90
Cash and cash equivalents	0	0
TOTAL ASSETS	1,416	1,311
EQUITY AND LIABILITIES
Equity	769	696
Untaxed reserves	5	5
Long-term liabilities	72	25
Current liabilities	570	585
TOTAL EQUITY AND LIABILITIES	1,416	1,311

Parent Company Income Statement

MSEK	3 months Jan-Mar 2013/14	3 months Jan-Mar 2012/13	Financial year 2013/14	Financial year 2012/13
Net revenue	10	8	34	30
Administration costs	–13	–14	–48	–44
Other operating income and expense	–1	0	– 1	0
OPERATING RESULT	–4	–6	–15	–14
Financial income	36	39	190	179
Financial expense	–5	–16	–13	–25
PROFIT AFTER FINANCE ITEMS	27	17	162	140
Change in untaxed reserves	0	–2	0	–2
Taxes	–6	–6	–3	–2
NET PROFIT FOR THE PERIOD	21	9	159	136
Other items in comprehensive profit for the period	-	-	-	-
COMPREHENSIVE PROFIT FOR THE PERIOD	21	9	159	136

This information is being published in accordance with the Act on Trading in Financial Instruments or the regulations of NASDAQ OMX Stockholm. The information herein was provided for publication at 12.15 p.m., 8 May 2014.

Reporting Schedule 18 July 2014 Quarterly Report Q1 for the period 1 April 2014–30 June 2014 26 August 2014 Annual General Meeting for the 2013/14 financial year 24 October 2014 Quarterly Report Q2 for the period 1 July 2014–30 September 2014 29 January 2015 Quarterly Report Q3 for the period 1 October 2014–31 December 2014 7 May 2015 Year-end Report for the period 1 April 2014–31 March 2015

The Annual Report for the 2013/14 financial year will be published in June/July at www.lagercrantz.com.

For additional information, contact: Jörgen Wigh, President, telephone +46-8-700 66 70 Bengt Lejdström, CFO, telephone +46-8-700 66 70

Lagercrantz Group AB (publ) Box 3508, SE-103 69 Stockholm, Sweden Telephone: +46-8-700 66 70 • Fax +46-8-28 18 05 Corporate Identity Number: 556282-4556 www.lagercrantz.com