Interim Report 2016/17 Q2

Second quarter (1 July – 30 September 2016)

Net revenue amounted to MSEK 684 (711).
EBITA increased by 15 percent to MSEK 94 (82), equivalent to an EBITA margin of 13.7 percent (11.5).
Cash flow from operating activities for the twelve-month period ending 30 September 2016 amounted to MSEK 311 compared to MSEK 257 for the 2015/16 financial year.
Operating profit (EBIT) increased by 12 percent to MSEK 82 (73), equivalent to an operating margin of 12.0 percent (10.3).
Profit after financial items increased by 11 percent to MSEK 81 (73) and profit after taxes increased by 12 percent to MSEK 63 (56).
Earnings per share after dilution for the latest 12-month period amounted to SEK 3.72, compared to SEK 3.54 for the 2015/16 financial year.
The return on equity was 26 percent (24). The equity ratio at the end of the period was 38 percent compared to 40 percent at the start of the financial year.
During the quarter, Skomø A/S was acquired, with annual revenue of about MDKK 45.

The first six months (1 April – 30 September 2016)

Net revenue for the first six months amounted to MSEK 1,466 (1,499).
EBITA increased by 10 percent to MSEK 188 (171), equivalent to an EBITA margin of 12.8 percent (11.4).
Cash flow from operating activities amounted to MSEK 138 (84)
Operating profit (EBIT) increased by 9 percent to MSEK 165 (152), equivalent to an operating margin of 11.3 percent (10.1).
Profit after financial items increased by 9 percent to MSEK 163 (149) and profit after taxes increased by 11 percent to MSEK 126 (114).

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

NET REVENUE AND PROFIT

Quarter 2 (July – September 2016)

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, but no clear signs of a recovery were noted.

Consolidated net revenue for the second quarter of the financial year amounted to MSEK 684 (711). The currency effect on net revenue was MSEK -1 (4). The comparison between years was impacted positively by MSEK 59 from acquired businesses and negatively by a divested business, which contributed MSEK 37 to net revenue last year. Growth in comparable units, amounted to -7 percent measured in local currency. The business volume was affected by the continued phase-out of low margin standard components in several parts of the Group and the fact that individual units found it difficult to reach the previous year's high sales level.

Operating profit (EBIT) for the quarter increased by 12 percent to MSEK 82 (73), equivalent to an operating margin of 12.0 percent (10.3). Since the listing on the stock market, this result represents a new all-time high for the Group on a moving 12-month basis. The improvement in profit was primarily explained by acquired units and a good margin development in the Mechatronics division. Some of the Danish units found it difficult to reach last year's strong results but margins were also generally strengthened by the phase-out of lower margin volumes and by the fact that the proportion of proprietary products accounts for an increasing share of Group sales.

Profit after net financial items increased by 11 percent to MSEK 81 (73). Total currency effects on the profit after net financial items amounted to MSEK 1 (3).

Profit after taxes during the period increased to MSEK 63 (56), equivalent to earnings per share after dilution of SEK 0.92 (0.82). Earnings per share after dilution for the latest 12-month period amounted to SEK 3.72, compared to SEK 3.54 for the 2015/16 financial year.

The first six months (April – September 2016)

Net revenue for the first six months of the financial year amounted to MSEK 1,466 (1,499). Operating profit for the first six months amounted to MSEK 165 (152), equivalent to an increase of 9 percent and an operating margin of 11.3 percent (10.1). Profit after financial items for the first six months increased by 9 percent to MSEK 163 (149). The total currency effect on the profit after net financial items amounted to MSEK -2 (5).

Profit after taxes during the first six months increased by 11 percent to MSEK 126 (114), equivalent to earnings per share after dilution of SEK 1.85 (1.67).

PROFITABILITY AND FINANCIAL POSITION

The return on equity for the latest 12-month period amounted to 26 percent (24) and the return on capital employed was 19 percent (21). The Group's metric for return on working capital (P/WC) was 53 percent (56).

Consolidated operating profit before amortisation of intangible assets (EBITA) during the second quarter of the financial year was MSEK 94 (82), equivalent to an EBITA margin of 13.7 percent (11.5). During the first six months of the financial year, EBITA amounted to MSEK 188 (171), equivalent to an EBITA margin of 12.8 percent (11.4).

The equity ratio was 38 percent compared to 40 percent at the start of the financial year. Equity per share totalled SEK 15.63 at the end of the period, compared to SEK 15.22 at the beginning of the financial year. Aside from profit, this metric was also affected by dividends paid, currency-related translation effects and redemption of options. A dividend of MSEK 119 (102) was paid during the period, equivalent to SEK 1.75 (1.50) per share.

At the end of the period, net financial indebtedness amounted to MSEK 720, excluding pension liability, compared to MSEK 551 at the beginning of the year. The increase was primarily attributable to acquisition of businesses. The net debt/equity ratio, excluding pension provisions, amounted to 0.7 (0.6). The pension liability amounted to MSEK 55 as of 30 September 2016, same as at the beginning of the financial year.

Divisions

Net revenue						Operating profit (EBIT)
	3				12					12
	months	3 months	6 months	6 months	months	3 months	3 months	6 months	6 months	months
MSEK	Jul-Sep 2016/17	Jul-Sep 2015/16	Apr-Sep 2016/17	Apr-Sep 2015/16	Apr-Mar 2015/16	Jul-Sep 2016/17	Jul-Sep 2015/16	Apr-Sep 2016/17	Apr-Sep 2015/16	Apr-Mar 2015/16
Electronics	193	210	395	423	838	13	20	29	40	71
Operating margin						6.7 %	9.5%	7.3 %	9.5%	8.5%
Mechatronics	223	254	503	535	1,007	43	40	88	83	150
Operating margin						19.3%	15.7%	17.5%	15.5%	14.9%
Communications	135	147	269	328	719	10	8	17	14	47
Operating margin						7.4%	5.4 %	6.3 %	4.3 %	6.5%
Niche Products	133	100	299	213	493	21	15	44	32	74
Operating margin						15.8%	15.0 %	14.7%	15.0 %	15.0 %
Parent Company/consolidati on items
	-	-	-	-	-	-5	-10	-13	-17	-27

GROUP TOTAL	684	711	1,466	1,499	3,057	82	73	165	152	315
Operating margin						12.0%	10.3%	11.3%	10.1%	10.3%
Financial items						-1	0	-2	-3	-8
PROFIT BEFORE TAXES						81	73	163	149	307

NET REVENUE AND PROFIT BY DIVISION, FIRST QUARTER

Electronics

Net revenue for the second quarter amounted to MSEK 193 (210). Operating profit amounted to MSEK 13 (20), equivalent to an operating margin of 6.7 percent (9.5). The business situation in the division is largely unchanged from before but with lower sales in two of the division's Danish units. One unit in electronic distribution is implementing a new generation on the technology side and the other unit is facing a weakened market in marine electronics. Within electronics distribution in Norway, a phase-out of lower margin standard components is also underway. The companies in lighting control and LED lighting continued to perform well as did the division's German unit.

Mechatronics

Net revenue for the quarter amounted to MSEK 223 (254). Operating profit for the quarter amounted to MSEK 43 (40), equivalent to an operating margin of 19.3 percent (15.7). A strong performance in electrical connection systems and electrical components were important reasons for the improvement in earnings. The division's enclosures business also performed well. The customised cabling units reported slightly lower demand, but are still delivering at a stable level. The division's unit in the supports and brackets area found it difficult to reach the previous year's good volume.

Communications

Net revenue for the second quarter amounted to MSEK 135 (147). The sale of the software distribution business during the fourth quarter last year impacted revenue negatively by about MSEK 37 compared to the year-earlier period.

Operating profit for the quarter amounted to MSEK 10 (8), equivalent to an operating margin of 7.4 percent (5.4). Improved profitability in digital imaging/technical security and network access products explained the increased profit. Most of the recently acquired units in control technology also performed well, however, some units found it difficult to repeat last year's strong results.

During the second quarter, the acquisition was completed in the division of Skomø A/S, which is described below under the item Acquisitions.

Niche Products

Net revenue for the second quarter increased to MSEK 133 (100). Operating profit for the quarter increased to MSEK 21 (15), equivalent to an operating margin of 15.8 percent (15.0). Revenue was positively impacted by acquisitions and strong sales of aseptic packaging solutions for the food processing industry. The division's industrial brushes unit performed well, while the division's units in spiral conveyors and steel wire showed a weaker development.

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities for the latest 12-month period amounted to MSEK 311 (249). For the first six months, the equivalent figure was MSEK 138 (84). Net investments in non-current assets amounted to MSEK 22 (33) during the first six months and mainly related to new production equipment.

No shares or options were repurchased during the second quarter, and no repurchased own Class B shares were sold, as no redemption of options occurred.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's internal net revenue for the first six months of the financial year amounted to MSEK 18 (17) and profit after net financial items was MSEK 258 (236). The result includes exchange rate adjustments on intra-Group lending of MSEK 3 (1) and dividends from subsidiaries of MSEK 272 (249).

Net investments in non-current assets amounted to MSEK 0 (0). The Parent Company's equity ratio was 51 percent (52).

Employees

At the end of the period, the number of employees in the Group was 1,264, compared to 1,230 at the beginning of the financial year. During the first six months of the financial year, 64 employees were added via acquisitions.

Share capital

The share capital amounted to MSEK 48.9 at the end of the period. The quota value per share amounted to SEK 0.70. Classes of shares were distributed as follows on 30 September 2016:

Classes of shares
A shares	3,263,802
B shares	66,256,125
Repurchased B shares	-1,582,400
Total	67,937,527

At 30 September 2016, Lagercrantz Group held 1,582,400 own Class B shares, equivalent to 2.3 percent of the total number of shares and 1.6 percent of the votes in the Lagercrantz Group. The average cost of the repurchased shares amounts to SEK 18.92 per share. Repurchased shares cover, inter alia, the company's obligations under outstanding call option programmes for repurchased shares, in which a total of 1,361,500 options have been acquired by senior executives. This refers to allocations in 2013, 2014 and 2015 of options still outstanding on 30 September 2016. The redemption price for each respective programme is SEK 41.80, SEK 53.90, and SEK 78.80 per share.

In conjunction with redemption of options, a total of 93,500 own Class B shares were sold during the first six months of the financial year for a total of MSEK 4. In addition, 167,500 outstanding options were repurchased for a total of MSEK 6.

After the end of the period, 584,875 options for B shares with a redemption price of SEK 100.10 were issued in accordance with the resolution of the 2016 AGM. These options were acquired by about 50 managers and senior executives in the Group. The total number of outstanding options after this and after final redemption in the 2013 programme of 25,000 options in early October 2016, amounts to 1,921,375.

Acquisitions

During the second quarter, the operations of Skomø A/S were acquired that develops, manufactures and markets graphic custom-designed imaging materials. Customers consist of car dealers, real estate agents and retail businesses. The company's operations are based in Ebeltoft in Jutland and it generates annual sales of about MDKK 45 with good profitability. Skomø forms part of the Lagercrantz Communications division as from September 2016.

Estimated consideration for the businesses acquired during the first six months of the financial year amounted to MSEK 194. This amount includes estimated contingent consideration of MSEK 44, which represents 65 percent of the maximum outcome. The outcome depends on the profit achieved by the companies.

Transactions costs for the acquisition during the second quarter amounted to about MSEK 1, and are included in Administrative expenses in the income statement, to the extent they arose during the period.

As a result of the acquisitions during the first six months of the financial year, goodwill in the Group increased by MSEK 79 on the balance sheet date and other intangible assets, mostly related to proprietary products and customer relationships, increased by MSEK 78. Other non-current assets increased by MSEK 20. The deferred tax liability related to the acquisitions amounted to MSEK 15.

The effect of the completed acquisition during the second quarter of the financial year, on consolidated revenue during the second quarter was MSEK 5 and the effect on profit before taxes was MSEK 0 after acquisition costs.

If the operations acquired during the first six months of the financial year had been consolidated as of 1 April 2016, the effect on revenue and profit before taxes would have been MSEK 77 and MSEK 8, respectively, after acquisition costs.

The acquisition analysis below is preliminary in terms of allocation of the surplus value for Kandator AB, GasIQ AB and Skomø A/S.

	Book value in	Fair value	Fair value
Acquired net assets at time of acquisition	companies	adjustment	condsolidated
Intangible non-current assts	1	78	78
Other non-current assets	14	5	20
Inventories and w ork in progress	25	0	25
Other short-term receivables *)	43	0	43
Interest-bearing liabilities	-6	0	-6
Other liabilities	-30	-15	-45
Net of identified assets/liabilities	47	68	115
Goodw ill	-	-	79
Estimated Purchase price	-	-	194

*) of which, cash and cash equivalents MSEK 19

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.

Apart from in the financial statements and accompanying notes, disclosures according to IAS 34.16A are also presented in other parts of the interim report.

In other respects, the same accounting policies have been used as in the 2015/16 Annual Report, including in relation to new IFRS standards and interpretations that only become effective during future periods.

ALTERNATIVE KEY RATIOS

The company presents certain financial metrics in the interim report that are not defined according to IFRS. The company considers that these metrics provide more valuable supplementary information to investors and shareholders as they enable evaluation of trends and the company's performance. Since not all companies calculate financial metrics in the same way, these are not always comparable with metrics used by other companies. These financial metrics should therefore not be regarded as a substitute for metrics defined according to IFRS. Expanded information has been provided in this report with regard to definitions of certain financial metrics.

OTHER INFORMATION

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 as described under Share capital above.

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 above-mentioned risks and uncertainty factors through its capacity as owner of subsidiaries. For additional information, please refer to the 2015/16 Annual Report.

Post-balance sheet events

No significant events for the company have occurred after the balance sheet date on 30 September 2016.

Annual General Meeting 2016

The 2016 AGM was held on 30 August 2016 in Stockholm. The meeting granted discharge from liability for the Board of Directors and the President & CEO for their administration during 2015/16. The notice convening the AGM was published on 22 July 2016.

Minutes from the AGM are published on the company's website.

Certification

The Board of Directors and the CEO believe that the undersigned interim report provides a true and fair overview of the Company's and the Group's operations, their financial position and performance and describes the material risks and uncertainty factors facing the Company and the Group.

Stockholm, 26 October 2016

Anders Börjesson Roger Bergqvist Chairman of the Board Board member

Marika Rindborg Holmgren Anna Almlöf Lennart Sjölund Board member Board member Board member

Fredrik Börjesson Peter Hedelius Jörgen Wigh

Board member Board member President and Board member

This report has not been subject to review by the company's auditors.

Segment information by quarter

Net revenue	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 TOTAL	684	781	790	768	711	788

Operating profit		2016/17
MSEK	Q2	Q1	Q4	Q3	Q2	Q1
Electronics	13	16	11	20	20	20
Mechatronics	43	45	36	31	40	43
Communications	10	8	16	17	8	6
Niche Products	21	23	27	15	15	17
Parent Company/consolidation items	-5	-8	-6	-4	-10	-7
GROUP TOTAL	82	84	84	79	73	79

Consolidated Income Statement – condensed

	3 months Jul-Sep	3 months Jul-Sep	6 months Apr-Sep	6 months Apr-Sep	MTM Oct-Sep	Financial year
MSEK	2016/17	2015/16	2016/17	2015/16	2015/16	2015/16
Net revenue	684	711	1,466	1,499	3,024	3,057
Cost of goods sold	-438	-457	-932	-977	-1,948	-1,993
GROSS PROFIT	247	254	534	522	1,076	1,064
Selling expenses	-125	-117	-264	-245	-542	-523
Administrative expenses	-42	-62	-109	-126	-228	-245
Other operating income and operating costs	2	-2	4	1	22	19
OPERATING PROFIT	82	73	165	152	328	315
Net financial items	-1	0	-2	-3	-7	-8
PROFIT AFTER FINANCIAL ITEMS	81	73	163	149	321	307
Taxes	-18	-17	-37	-35	-68	-66
NET PROFIT FOR THE PERIOD	63	56	126	114	253	241
*) Of which:
- amortisation of intangible assets that arose in
connection with acquisitions:	(-12)	(-9)	(-23)	(-19)	(-43)	(-40)
- depreciation of other non-current assets:	(-11)	(-10)	(-21)	(-18)	(-37)	(-37)

EBITA	94	82	188	171	372	355
Earnings per share, SEK	0.93	0.82	1.86	1.68	3.73	3.55
Earnings per share after dilution, SEK	0.92	0.82	1.85	1.67	3.72	3.54

Weighted number of shares after repurchases, ('000)	67,938	67,980	67,908	67,917	67,885	67,889
Weighted number of shares after repurchases adjusted after dilution ('000)	68,187	68,355	68,133	68,235	68,084	68,121
Number of shares after repurchases during the period ('000)	67,938	67,980	67,938	67,980	67,938	67,844

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 75.19) during the latest 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.3 percent for the latest 12-month period. For the past quarter, there was a dilutive effect of 0.4 percent as the average share price (SEK 80.80) was higher than the average redemption price for outstanding programmes.

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

MSEK	3 months Jul-Sep 2016/17	3 months Jul-Sep 2015/16	6 months Apr-Sep 2016/17	6 months Apr-Sep 2015/16	Moving 12 months, Oct-Sep 2015/16	Financial year 2015/16
Net profit for the period	63	56	126	114	127	241
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	32	-1	23	-11	20	-14
Translation differences transferred to net profit for the period	0		0		-4	-4
Items that cannot be reposted to net profit for the period
Actuarial effects on pensions	0	0	0	0	12	12
Taxes attributable to actuarial effects	0	0	0	0	-3	-3
COMPREHENSIVE INCOME FOR THE PERIOD	95	55	149	103	278	232

Consolidated Statement of Financial Position – condensed

MSEK	30 Sep 2016	30 Sep 2015	31 Mar 2016
ASSETS
Goodwill	896	778	802
Other intangible non-current assets	575	476	505
Property, plant and equipment	227	183	206
Financial assets	10	13	10
Inventories	405	345	379
Trade receivables and earned but not yet invoiced income	490	485	473
Other current receivables	112	96	140
Cash and bank balances	96	95	67
TOTAL ASSETS	2,811	2,471	2,582
EQUITY AND LIABILITIES
Equity	1,062	919	1,032
Non-current liabilities	257	230	230
Trade payables and advanced payments from customers	235	246	252
Other current liabilities	1,257	1,046	1,068
TOTAL EQUITY AND LIABILITIES	2,811	2,471	2,582

Interest-bearing assets	96	95	67
Interest-bearing liabilities	816	655	618

Consolidated Statement of Changes in Equity

MSEK	6 months Apr-Sep 2016/17	6 months Apr-Sep 2015/16	Moving 12 months, Oct-Sep 2015/16	Financial year 2015/16
Opening balance	1,032	917	919	917
Comprehensive income for the period	149	103	278	232
Transactions with owners
Dividend	-119	-102	-119	-102
Redemption and acquisition of options on repurchased shares, net	0	1	-6	-5
Repurchase of own shares	0	-	-10	-10
CLOSING BALANCE	1,062	919	1,062	1,032

Consolidated Statement of Cash Flows

MSEK	3 months Jul-Sep 2016/17	3 months Jul-Sep 2015/16	6 months Apr-Sep 2016/17	6 months Apr-Sep 2015/16	Moving 12 months, Oct-Sep 2015/16	Financial year 2015/16
Operating activities
Profit after financial items	81	73	163	149	321	307
Adjustments for taxes paid, items not included in cash flow, etc.	11	-5	17	2	-3	-18
Cash flow from operating activities before changes in working capital	92	68	180	151	318	289
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories	7	2	4	-19	-9	-32
Increase (-)/Decrease (+) in operating receivables	50	20	19	12	-16	-23
Increase (+)/Decrease (-) in operating liabilities	-69	-38	-65	-60	18	23
Cash flow from operating activities	80	52	138	84	311	257
Investing activities
Investment in businesses	-70	-60	-158	-207	-239	-288
Investments in/disposals of other non-current assets, net	-14	-15	-22	-33	-59	-70
Cash flow from investing activities	-84	-75	-180	-240	-298	-358
Financing activities
Dividends, redemption of options and repurchase of own shares/options	-117	-102	-119	-101	-135	-117
Financing activities	120	160	190	272	123	205
Cash flow from financing activities	3	58	71	171	-12	88
CASH FLOW FOR THE PERIOD	-1	35	29	15	1	-13

Cash and cash equivalents at the beginning of the period	97	60	67	80	95	80
Cash and cash equivalents at the end of the period	96	95	96	95	96	67

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 estimated cash flow and are therefore included in level 3 under IFRS 13.

Carrying amount, MSEK	30 Sep 2016	31 Mar 2016
Assets measured at fair value	-	-
Assets measured at amortised cost	562	537
TOTAL ASSETS, FINANCIAL INSTRUMENTS	562	537
Liabilities measured at fair value	190	184
Liabilities measured at amortised cost	1,025	852
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	1,215	1,036

Change in contingent consideration	6 months Apr – Sep 2016/17	Financial year 2015/16
Opening balance Liabilities settled during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange rate difference	184 -45 0 49 2	95 -12 -6 106 1
Carrying amount at end of the period	190	184

Parent Company Balance Sheet – condensed

MSEK	30 Sep 2016	30 Sep 2015	31 Mar 2016
ASSETS
Property, plant and equipment	1	1	1
Financial assets	1,944	1,859	1,809
Current receivables	370	197	281
Cash and bank balances	-	-	0
TOTAL ASSETS	2,315	2,057	2,091
EQUITY AND LIABILITIES
Equity	1,189	1,068	1,046
Untaxed reserves	4	5	4
Non-current liabilities	20	21	20
Current liabilities	1,102	963	1,021
TOTAL EQUITY AND LIABILITIES	2,315	2,057	2,091

Pledged assets	None	None	None
Contingent liabilities - Guarantee commitments, FPG/PRI	27	27	27

Parent Company Income Statement – condensed

MSEK	3 months Jul-Sep 2016/17	3 months Jul-Sep 2015/16	6 months Apr-Sep 2016/17	6 months Apr-Sep 2015/16	Moving 12 months, Oct-Sep 2015/16	Financial year 2015/16
Net revenue	10	9	18	17	40	39
Administrative expenses	-13	-14	-30	-28	-59	-57
Other operating income and operating costs	0	0	0	0	0	0
OPERATING PROFIT	-3	-5	-12	-11	-19	-18
Financial income	14	2	275	251	312	288
Financial expenses	-3	-1	-5	-4	-10	-9
PROFIT AFTER FINANCIAL ITEMS	8	-4	258	236	283	261
Change in untaxed reserves	0	0	0	0	0	0
Taxes	1	1	3	3	-3	-3
NET PROFIT FOR THE PERIOD	9	-3	261	239	280	258
Other comprehensive income for the period		-				-
COMPREHENSIVE INCOME FOR THE PERIOD	9	-3	261	239	280	258

Key ratios

In the table below, key ratios are partly presented that are not defined according to IFRS. For definition of these, see

below.	Moving 12		Financial year
	months, Oct Sep 2015/16	2015/16	2014/15	2013/14	2012/13
Revenue	3,024	3,057	2,846	2,546	2,328
Change in revenue, %	-1	7	12	9	3
EBITA	372	355	295	256	223
Profit after taxes	253	241	203	177	159
EBITA margin, %	12.3	11.6	10.4	10.1	9.6
Operating margin, %	10.8	10.3	9.7	9.5	9.1
Profit margin, %	10.6	10.0	9.3	9.0	8.6
Equity ratio, %	38	40	44	43	44
Return on working capital (P/WC), %	53	58	58	55	52
Return on capital employed, %	19	21	22	22	23
Return on equity, %	26	25	24	24	24
Debt/equity ratio, times	0.8	0.6	0.4	0.4	0.4
Net debt/equity ratio, times	0.7	0.5	0.3	0.4	0.4
Interest coverage ratio, times	23	20	18	16	13
Net interest-bearing liabilities (+)/receivables (-), MSEK	720	551	302	285	248
Number of employees at end of period	1,264	1,230	1,139	1,010	932
Revenue outside Sweden, MSEK	1,915	1,991	1,931	1,676	1,553

Per-share data

In the table below, key ratios are partly presented that are not defined according to IFRS. For definition of these, see

below.	Moving 12		Financial year
	months, Oct Sep 2015/16	2015/16	2014/15	2013/14	2012/13
Number of shares at end of period after repurchases ('000)	67,938	67,844	67,773	67,572	67,560
Weighted number of shares after repurchases, ('000)	67,885	67,889	67,719	67,632	67,278
Weighted number of shares after repurchases & dilution ('000)	68,084	68,121	67,965	67,995	67,503
Operating profit per share after dilution, SEK	4.82	4.63	4.06	3.56	3.16
Earnings per share, SEK	3.73	3.55	3.00	2.62	2.36
Earnings per share after dilution, SEK	3.72	3.54	2.99	2.60	2.36
Cash flow from operations per share after dilution, SEK	2.03	3.77	3.94	3.40	2.62
Cash flow per share after dilution, SEK	0.01	-0.19	0.62	0.03	0.00
Equity per share, SEK	15.63	15.22	13.53	11.90	10.33
Latest price paid per share, SEK	84.50	77.50	52.67	42.33	29.42

Definitions

Return on equity

Net profit for the year as a percentage of average equity (opening plus closing balance for the period, divided by two).

Return on working capital (P/WC)

Operating profit as a percentage of average working capital, (opening balance plus closing balance for the period, divided by two), where working capital consists of inventories, trade receivables and earned but not yet invoiced income, less trade payables and advanced payments from customers.

Return on capital employed

Profit after financial items, plus financial expenses as a percentage of

average capital employed (opening balance plus closing balance for the period, divided by two).

EBITA

Operating profit before amortisation of intangible assets arising in connection with acquisitions.

EBITA margin

EBITA as a percentage of net revenue.

Equity per share

Equity divided by the number of outstanding shares on the balance sheet date.

Cash flow per share after dilution

Cash flow for the year in relation to the weighted number of shares outstanding after repurchases and dilution.

Cash flow from operating activities per share

Cash flow from operating activities for the year in relation to the weighted number of shares outstanding after repurchases and dilution.

Net interest-bearing liabilities/receivables

Interest-bearing provisions and liabilities, excluding pensions, less cash and cash equivalents and investments in securities.

Net debt/equity ratio

Interest-bearing provisions and liabilities, excluding pensions, less cash and cash equivalents and investments in securities, divided by equity plus non-controlling interests.

Change in revenue

Change in net revenue as a percentage of the preceding year's net revenue.

Interest coverage ratio

Profit after financial items plus financial expenses divided by financial expenses.

Operating margin

Operating profit as a percentage of net revenue.

Debt/equity ratio

Interest-bearing liabilities divided by equity, plus non-controlling interests.

Equity ratio

Equity, plus non-controlling interests as a percentage of total assets.

Capital employed

Total assets, less non-interest-bearing provisions and liabilities.

Profit margin

Profit after finance items, less participations in associated companies as a percentage of net revenue.

This information is information that Lagercrantz Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 8:00 a.m. CET on 26 October 2016.

Reporting dates

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 was published on 1 July 2016 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