Interim Report 2017/18 Q1

1 April – 30 June 2017

Net revenue amounted to MSEK 794 (781).
Operating profit (EBITA) amounted to MSEK 100 (96), equivalent to an operating margin of 12.6 percent (12.3).
Profit before financial items amounted to MSEK 87 (83), equivalent to an EBIT margin of 11.0 percent (10.6).
Profit after financial items amounted to MSEK 82 (82).
Profit after taxes amounted to MSEK 65 (64).
Earnings per share after dilution amounted to SEK 0.95 (0.94) for the quarter and for the moving 12-month period to SEK 4.06, compared to SEK 4.02 for the 2016/17 financial year.
Return on equity was 22 percent (24). The equity ratio at the end of the period was 40 percent compared to 41 percent at the start of the quarter.
Three companies were acquired early in the financial year. Profsafe AB and R-Contracting AB are part of the Group since June 2017 while Wapro was acquired in the beginning of July. These acquisitions will provide total annual revenue to the Group of about MSEK 240.
The Annual General Meeting will be held on 29 August 2017 at 4.00 p.m. at IVA's Conference Centre in Stockholm.
The Board of Directors in the notice convening the Annual General Meeting intends to propose an increase in the dividend to SEK 2.00 (1.75) per share.

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

NET REVENUE AND PROFIT

First quarter (April – June 2017)

The market situation in the Group's main markets was stable overall during the quarter. All Nordic markets performed positively while the Group's units in Germany reported a slightly weaker development. However, some units, primarily in Mechatronics and Niche Products, reported lower sales to a small number of large customers, which impacted the Group negatively during the quarter.

Consolidated net revenue for the first quarter of the financial year amounted to MSEK 794 (781). The currency effect on net revenue was MSEK 14. Acquired businesses made a contribution of MSEK 72. Net revenue in comparable units, i.e. excluding acquisitions, amounted to -10 percent measured in local currency. The decrease was largely related to lower volumes from a small number of large customers during the quarter.

Operating profit before amortisation of intangible assets (EBITA) amounted to MSEK 100 (96) during the first quarter. Operating margin amounted to 12.6 (12.3) percent. The positive impact on profit was mainly due to acquired units and a strong performance by a number of units in the Communications division. The negative impact on the year-onyear comparison related to a few units in Mechatronics and Niche Products, which found it difficult to match last year's strong results.

Consolidated profit before financial items (EBIT) for the first quarter amounted to MSEK 87 (83), equivalent to an EBIT margin of 11.0 percent (10.6). Profit after financial items amounted to MSEK 82 (82). The currency effect on profit amounted to MSEK 2 (-2) during the quarter.

Profit after tax for the period amounted to MSEK 65 (64), equivalent to earnings per share after dilution of SEK 0.95 (0.94). Earnings per share after dilution for the latest 12-month period amounted to SEK 4.06, compared to SEK 4.02 for the 2016/17 financial year.

PROFITABILITY AND FINANCIAL POSITION

The return on equity for the latest 12-month period amounted to 22 percent (24) and the return on capital employed was 18 percent (20). The Group's metric for return on working capital (P/WC) was 54 percent (52).

Equity per share totalled SEK 18.57 at the end of the period, compared to SEK 17.61 at the beginning of the financial year. Aside from profit, this metric was also affected by currencyrelated translation effects and redemption of options.

The equity ratio was 40 percent compared to 41 percent at the start of the financial year.

At the end of the period, operational net indebtedness amounted to MSEK 728, excluding pension liability, compared to MSEK 565 at the beginning of the year. The increase was primarily attributable to acquisition of businesses. The operational net debt/equity ratio, excluding pension provisions, amounted to 0.6 (0.5). The pension liability amounted to MSEK 63 as of 30 June 2017, compared to MSEK 55 at the end of the year-earlier period.

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities for the latest 12-month period amounted to MSEK 429 (283) and MSEK 111 (58) during the first quarter. Gross investments in non-current assets amounted to MSEK 24 (8) during the first quarter.

No shares were repurchased during the first quarter. However, a total of 43,600 repurchased own Class B shares were sold in connection with redemption of options for MSEK 2 (4) in total. In addition, outstanding options were repurchased for a total of MSEK 6 (6).

Divisions

Net revenue			Operating profit
	3 months	3 months	12 months	3 months	3 months	12 months
MSEK	Apr-Jun 2017/18	Apr-Jun 2016/17	Apr-Mar 2016/17	Apr-Jun 2017/18	Apr-Jun 2016/17	Apr-Mar 2016/17
Electronics	216	202	834	17	16	66
Operating margin				7.9%	7.9%	7.9%
Mechatronics	246	280	1,003	39	45	163
Operating margin				15.9%	16.1%	16.3%
Communications	185	134	630	15	7	61
Operating margin				8.1%	5.2%	9.7%
Niche Products	147	165	629	21	23	104
Operating margin				14.3%	13.9%	16.5%
Parent Company/consolidation items
	-	-	-	-5	-8	-33
GROUP TOTAL	794	781	3,096	87	83	361
Operating margin				11.0%	10.6%	11.7%
Financial items				-5	-1	-10
PROFIT BEFORE TAXES				82	82	351

NET REVENUE AND PROFIT BY DIVISION, FIRST QUARTER

Electronics

Net revenue for the first quarter amounted to MSEK 216 (202). Operating profit was MSEK 17 (16), equivalent to an EBIT margin of 7.9 percent (7.9). The business situation in the division was largely unchanged from the previous quarter. The division's Danish and Norwegian units in electronic distribution reported an improvement compared to the previous year and the Danish unit in marine electronics strengthened its sales. However, the division's companies in lighting control and LED lighting displayed a weaker performance, as did the division's German electronics distribution unit.

Mechatronics

Net revenue for the quarter amounted to MSEK 246 (280). Operating profit was MSEK 39 (45), corresponding to an EBIT margin of 15.9 percent (16.1). The division's largest unit, in electrical connection systems, continued to perform well. However, the units in masts and aerial brackets for mobile telephony, as well as safety switches and enclosures, displayed weaker sales. The weaker performance was related to a small number of large customers, which had a negative impact on the division. The division's customised harness units reported more stable demand compared to previous quarters.

Communications

Net revenue for the first quarter amounted to MSEK 185 (134). Operating profit for the quarter amounted to MSEK 15 (7),

equivalent to an EBIT margin of 8.1 percent (5.2). The improvement was due to acquisitions and a good performance by several units in control/access technology, especially in measurement equipment for casting shops and in control equipment for forest and construction vehicles. However, some of the digital imaging/technical security units found it difficult to match last year's strong results.

At the end of the quarter, the acquisition was completed in the division of R-Contracting AB, which is described below under the item Acquisitions.

Niche Products

Net revenue for the first quarter amounted to MSEK 147 (165). Operating profit for the quarter amounted to MSEK 21 (23), equivalent to an EBIT margin of 14.3 percent (13.9). Revenue and profit were negatively impacted by the fact that the division's unit in aseptic packaging solutions for the food processing industry and the Danish unit in conveyor belt solutions both reported weaker sales to a small number of large customers than the previous year.

Late in the quarter, Profsafe AB was acquired and Wapro was acquired after the period. Both companies are described below under the item Acquisitions.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's net revenue for the quarter amounted to MSEK 9 (9) and profit after net financial items was MSEK 331 (250). The result includes exchange rate adjustments on intra-Group lending of MSEK 0 (1) and dividends from subsidiaries of MSEK 329 (260).

Net investments in non-current assets amounted to MSEK 0 (0). The Parent Company's equity ratio was 57 percent (55).

Employees

At the end of the period, the number of employees in the Group was 1,330, compared to 1,247 at the beginning of the financial year. During the financial year, 48 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 June 2017:

Classes of shares
A shares	3,263,802
B shares	66,256,125
Repurchased B shares	-1,491,100
Total	68,028,827

At 30 June 2017, Lagercrantz Group held 1,491,100 own Class B shares, equivalent to 2.1 percent of the total number of shares and 1.5 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 1,310,075 options have been acquired by senior executives. This refers to allocations in 2014, 2015 and 2016 of options still outstanding. The redemption price for each respective programme is SEK 53.90, SEK 78.80, and SEK 100.10 per share.

During the first quarter, parts of the incentive programme based on options on repurchased Class B shares acquired by senior executives in the Group during 2014 were redeemed. In conjunction with redemption of options, 43,600 repurchased own Class B shares were sold for a total of MSEK 2. In addition, 142,800 outstanding options were repurchased for a total of MSEK 6.

Acquisitions

During the first quarter, the operations were acquired in Profsafe AB, which develops and markets safes and security products in areas such as fire protection, burglary prevention, cash handling and weapon storage cabinets. Most sales take place in Sweden but the company also has some sales in the other Nordic markets. The company's operations are based in Anderstorp and it generates annual sales of about MSEK 85 with good profitability. Profsafe is part of the Lagercrantz Niche Products division since June 2017.

Late in the quarter, the operations in R-Contracting AB were also acquired. The company develops and markets pumping systems for sprinkler installations. R-Contracting also has some engagements in infrastructure-related pump or hydropower projects. Most sales take place in Sweden but the company also has some sales in Norway and Denmark. The company's operations are based in Norrköping and it generates annual sales of about MSEK 110 with good profitability. R-Contracting is part of the Lagercrantz Communications division since June 2017.

Estimated consideration for the businesses acquired during the quarter amounted to MSEK 222. This amount includes estimated contingent consideration of MSEK 37, which represents 78 percent of the maximum outcome. The outcome depends on the profit achieved by the companies.

Transaction costs for the acquisitions 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 period, goodwill in the Group increased by MSEK 122 on the balance sheet date and other intangible assets, mostly related to proprietary products and customer relationships, increased by MSEK 80. Other noncurrent assets increased by MSEK 4. The deferred tax liability related to the acquisitions amounted to MSEK 18.

The effect of the completed acquisitions on consolidated revenue during the first quarter was MSEK 31 and the effect on profit before taxes was MSEK 2 after acquisition costs.

If the operations acquired during the quarter of the financial year had been consolidated as of 1 April 2017, the effect on revenue and profit before taxes would have been MSEK 60 and MSEK 5, respectively, after acquisition costs.

During the first quarter of the financial year, the difference between reserved/paid and remeasured contingent consideration of MSEK 14 was expensed as other operating income under the Mechatronics and Niche Products divisions. During the quarter, MSEK 27 (25) was paid in contingent consideration for previous acquisitions.

The acquisition analysis below is preliminary in terms of allocation of the surplus value for Profsafe AB and R-Contracting AB:

	Book value in	Fair value	Fair value
Acquired net assets at time of acquisition	companies	adjustment	condsolidated
Intangible non-current assts	0	80	80
Other non-current assets	2	2	4
Inventories and w ork in progress	23	0	23
Other short-term receivables *)	42	0	42
Interest-bearing liabilities	-2	0	-2
Other liabilities	-29	-18	-47
Net of identified assets/liabilities	36	64	100
Goodw ill	-	-	122
Estimated Purchase price	-	-	222

*) of which, cash and cash equivalents MSEK 14

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 2016/17 Annual Report, including in relation to new IFRS standards and interpretations that only become effective during future periods. Reclassification of current liabilities has been made to non-current liabilities. Comparative figures have been restated and the effect amounted to MSEK 300 for the Group and MSEK 300 for the Parent Company as of 30 June 2016.

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 redemption and repurchase of options as described 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 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 2016/17 Annual Report.

Post-balance sheet events

Lagercrantz acquired Wapro AB on 6 July 2017. The company's innovative products prevent and regulate water flows in order to protect properties and infrastructure from flooding during storms and rising water levels. Wapro's head office is located in Karlshamn and the company has a subsidiary in Chicago, USA. Wapro generates annual revenue of approximately MSEK 40 with good profitability and it has sales in Europe, North America and Australia. Wapro will form part of the Lagercrantz Niche Products division as from July 2017.

The Annual Report was published on 7 July 2017.

Annual General Meeting 2017

The 2017 Annual General Meeting (AGM) will be held on 29 August 2017 at 4.00 p.m. at IVA's Conference Centre, Grev Turegatan 16, in Stockholm. The notice convening the AGM will be published on 21 July 2017.

The Board of Directors in the convening notice intends to propose an increase in the dividend to SEK 2.00 (1.75) per share, and an extended incentive programme in the form of call options on repurchased shares to senior executives.

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.

Stockholm, 19 July 2017

Jörgen Wigh President and CEO

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

Segment information by quarter

Net revenue	2017/18	2016/17
MSEK	Q1	Q4	Q3	Q2	Q1
Electronics	216	223	216	193	202
Mechatronics	246	259	241	223	280
Communications	185	177	184	135	134
Niche Products	147	174	157	133	165
Parent Company/consolidation items	-	-	-	-	-
GROUP TOTAL	794	833	798	684	781

Operating profit	2017/18	2016/17
MSEK	Q1	Q4	Q3	Q2	Q1
Electronics	17	17	20	13	16
Mechatronics	39	38	37	43	45
Communications	15	24	19	10	7
Niche Products	21	37	24	21	23
Parent Company/consolidation items	-5	-12	-8	-5	-8
GROUP TOTAL	87	104	92	82	83

Consolidated Income Statement – condensed

MSEK	3 months Apr-Jun 2017/18	3 months Apr-Jun 2016/17	Moving 12 months, Jul Jun 2016/17	Financial year 2016/17
Net revenue	794	781	3,109	3,096
Cost of goods sold	-512	-494	-1,977	-1,959
GROSS PROFIT	282	287	1,132	1,137
Selling expenses	-147	-139	-563	-555
Administrative expenses	-63	-67	-233	-237
Other operating income and operating expenses	15	2	29	16
OPERATING PROFIT *)	87	83	365	361
Net financial items	-5	-1	-14	-10
PROFIT AFTER FINANCIAL ITEMS	82	82	351	351
Taxes	-17	-18	-75	-77
NET PROFIT FOR THE PERIOD	65	64	276	274
*) Of which: - amortisation of intangible assets that arose in connection
with acquisitions: - depreciation of other non-current assets:	(-13) (-11)	(-12) (-9)	(-49) (-45)	(-48) (-43)

EBITA	100	96	409	409
Earnings per share, SEK	0.96	0.94	4.02	4.02
Earnings per share after dilution, SEK	0.95	0.94	4.01	4.03
Weighted number of shares after repurchases, ('000)	68,001	67,877	67,971	67,941
Weighted number of shares after repurchases adjusted after dilution ('000)	68,135	68,089	68,042	68,097
Number of shares at end of period after repurchases ('000)	68,029	67,980	68,029	67,985

In view of the redemption price on outstanding call options during the period (SEK 53.980, SEK 78.80 and SEK 100.10) and the average share price (SEK 85.32) during the latest 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.1 percent for the latest 12-month period. For the past quarter, there was a dilutive effect of 0.2 percent as the average share price (SEK 94.46) was higher than the average redemption price for outstanding programmes.

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

MSEK	3 months Apr-Jun 2017/18	3 months Apr-Jun 2016/17	Moving 12 mths, Jul-Jun 2016/17	Financial year 2016/17
Net profit for the period	65	64	276	274
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	5	-9	34	20
Translation differences transferred to net profit for the period	0		0	0
Items that cannot be reposted to net profit for the period
Actuarial effects on pensions	0	0	-6	-6
Taxes attributable to actuarial effects	0	0	2	2
COMPREHENSIVE INCOME FOR THE PERIOD	70	55	305	290

Consolidated Statement of Financial Position – condensed

MSEK	30 Jun 2017	30 Jun 2016	31 Mar 2017
ASSETS
Goodwill	1,045	849	912
Other intangible non-current assets	634	540	567
Property, plant and equipment	235	216	224
Financial assets	10	11	10
Inventories	449	406	401
Trade receivables and earned but not yet invoiced income	540	516	519
Other current receivables	125	137	136
Cash and bank balances	145	97	122
TOTAL ASSETS	3,183	2,772	2,891
EQUITY AND LIABILITIES
Equity	1,263	1,085	1,197
Non-current liabilities	778	545	658
Trade payables and advance payment from customers	295	273	261
Other current liabilities	847	869	775
TOTAL EQUITY AND LIABILITIES	3,183	2,772	2,891

Interest-bearing assets	145	97	122
Interest-bearing liabilities, excluding pension liabilities	873	697	687

Consolidated Statement of Changes in Equity

MSEK	3 months Apr-Jun 2017/18	3 months Apr-Jun 2016/17	Moving 12 mths, Jul-Jun 2016/17	Financial year 2016/17
Opening balance	1,197	1,032	1,085	1,032
Comprehensive income for the period	70	55	305	290
Transactions with owners
Dividend	0	0	-119	-119
Redemption and acquisition of options on repurchased				-6
shares, net	-4	-2	-8
Repurchase of own shares	0	0	0	0
CLOSING BALANCE	1,263	1,085	1,263	1,197

Consolidated Statement of Cash Flows

	3 months Apr-Jun	3 months Apr-Jun	Moving 12 mths, Jul-Jun	Financial year
MSEK	2017/18	2016/17	2016/17	2016/17
Operating activities
Profit after financial items	82	83	351	351
Adjustments for taxes paid, items not included in cash flow, etc.	6	5	19	18
Cash flow from operating activities before changes in working capital	88	88	370	369
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories	-19	-3	-1	15
Increase (-)/Decrease (+) in operating receivables	19	-31	57	7
Increase (+)/Decrease (-) in operating liabilities	23	4	3	-16
Cash flow from operating activities	111	58	429	375
Investing activities
Investment in businesses	-241	-88	-361	-208
Investments in/disposals of other non-current assets, net	-24	-8	-63	-47
Cash flow from investing activities	-265	-96	-424	-255
Financing activities
Dividends, redemption of options & repurchase of own shares/options	-4	-2	-127	-125
Financing activities	181	70	171	60
Cash flow from financing activities	177	68	44	-65
CASH FLOW FOR THE PERIOD	23	30	48	55

Cash and cash equivalents at the beginning of the period	122	67	97	67
Cash and cash equivalents at the end of the period	145	97	145	122

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 using discounted estimated cash flows and are therefore included in level 3 under IFRS 13.

Carrying amount, MSEK	30 Jun 2017	31 Mar 2017
Assets measured at fair value	-	-
Assets measured at amortised cost	654	630
TOTAL ASSETS, FINANCIAL INSTRUMENTS	654	630
Liabilities measured at fair value	159	165
Liabilities measured at amortised cost	1,166	939
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	1,325	1,104

Change in contingent consideration	3 months Apr – Jun 2017/18	Financial year 2016/17
Opening balance Liabilities settled during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange difference	165 -27 -15 37 -1	184 -64 -5 51 -1
Carrying amount at end of the period	159	165

Parent Company Balance Sheet – condensed

MSEK	30 Jun 2017	30 Jun 2016	31 Mar 2017
ASSETS
Property, plant and equipment	0	1	1
Financial assets	2,133	1,924	1,903
Current receivables	544	422	365
Cash and bank balances	0	0	-
TOTAL ASSETS	2,677	2,347	2,269
EQUITY AND LIABILITIES
Equity	1,530	1,297	1,200
Untaxed reserves	0	4	-
Non-current liabilities	520	320	421
Current liabilities	627	726	648
TOTAL EQUITY AND LIABILITIES	2,677	2,347	2,269

Parent Company Income Statement – condensed

MSEK	3 months Apr-Jun 2017/18	3 months Apr-Jun 2016/17	Moving 12 mths, Jul-Jun 2016/17	Financial year 2016/17
Net revenue	9	9	37	37
Administrative expenses	-17	-17	-70	-70
Other operating income and operating expenses	12	0	12	0
OPERATING PROFIT	4	-8	-21	-33
Financial income	330	261	389	316
Financial expenses	-3	-3	-9	-9
PROFIT AFTER FINANCIAL ITEMS	331	250	359	274
Change in untaxed reserves	0	0	0	4
Taxes	2	2	-2	-2
NET PROFIT FOR THE PERIOD	333	252	357	276

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, Jul-Jun 2016/17	2016/17	2015/16	2014/15	2013/14
Revenue	3,109	3,096	3,057	2,846	2,546
Change in revenue, %	0.4	1.3	7	12	9
Operating profit (EBITA)	414	409	355	295	256
Profit after taxes	276	274	241	203	177
Operating margin (EBITA), %	13.3	13.2	11.6	10.4	10.1
EBIT margin, %	11.7	11.7	10.3	9.7	9.5
Profit margin, %	11.3	11.3	10.0	9.3	9.0
Equity ratio, %	40	41	40	44	43
Return on working capital (P/WC), %	54	58	58	58	55
Return on capital employed, %	18	20	21	22	22
Return on equity, %	22	25	25	24	24
Debt/equity ratio, times	0.7	0.6	0.6	0.4	0.4
Operational net debt/equity ratio, times	0.6	0.5	0.5	0.3	0.4
Interest coverage ratio, times	20	22	20	18	16
Operational net debt (+)/receivables (-), MSEK	728	565	551	302	285
Number of employees at end of period	1,262	1,247	1,230	1,139	1,010
Revenue outside Sweden, MSEK	1,952	1,940	1,991	1,931	1,676

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, Jul-Jun 2016/17	2016/17	2015/16	2014/15	2013/14
Number of shares at end of period after repurchases ('000)	68,029	67,985	67,844	67,773	67,572
Weighted number of shares after repurchases, ('000)	67,971	67,941	67,889	67,719	67,632
Weighted number of shares after repurchases & dilution ('000)	68,042	68,097	68,121	67,965	67,995
EBIT-earnings per share after dilution, SEK	5.36	5.30	4.63	4.06	3.56
Earnings per share, SEK	4.06	4.03	3.55	3.00	2.62
Earnings per share after dilution, SEK	4.06	4.02	3.54	2.99	2.60
Cash flow from operations per share after dilution, SEK	6.30	5.51	3.77	3.94	3.40
Cash flow per share after dilution, SEK	0.70	0.81	-0.19	0.62	0.03
Equity per share, SEK	18.57	17.61	15.22	13.53	11.90
Latest price paid per share, SEK	92.25	87.00	77.50	52.67	42.33

Definitions

Return on equity

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

Return on working capital (P/WC)

Profit before net financial items (EBIT) 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 claims on customers less trade payables and advance payment 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).

Operating profit (EBITA)

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

Operating margin

Operating profit (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 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 in relation to the weighted

number of shares outstanding after repurchases and dilution.

Operational net debt/receivables

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

Operational 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.

EBIT margin

Profit before net financial items 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 financial 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 08.00 CET on 19 July 2017.

Reporting dates

29 August 2017 Annual General Meeting for the 2016/17 financial year. 25 October 2017 Quarterly Report Q2 for the period 1 July 2017–30 September 2017 25 January 2018 Quarterly Report Q3 for the period 1 October 2017–31 December 2017 8 May 2018 Year-end Report for the period 1 April 2017–31 March 2018

The Annual Report for the 2016/17 financial year was published on 7 July 2017 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