Interim Report 2021/22 Q2

Second quarter (1 July – 30 September 2021)

Net revenue increased by 31% to MSEK 1,201 (918).
➢ Organically, net revenue increased by 13%.
Operating profit (EBITA) increased to MSEK 192 (132), equivalent to an operating margin of 16.0% (14.4).
Profit after financial items increased by 50% to MSEK 156 (104).
Profit after taxes increased by 43% to MSEK 116 (81).
Cash flow from operating activities increased to MSEK 113 (80).
Return on equity was 28% (22). The equity ratio at the end of the period was 34% (40).

First six months (1 April – 30 September 2021)

Net revenue increased by 32% to MSEK 2,502 (1,895).
➢ Organically, net revenue increased by 16%.
Operating profit (EBITA) increased by 58% to MSEK 404 (256), equivalent to an operating margin of 16.1% (13.5).
Profit after financial items increased by 71% and amounted to MSEK 336 (197) and profit after taxes increased by 69% to MSEK 255 (151).
Earnings per share after dilution for the moving 12-month period amounted to SEK 2.41, compared to SEK 1.91 for the 2020/21 financial year.
Cash flow from operating activities amounted to MSEK 254 (326).
During the first six months, three acquisitions were carried out, CW Lundberg, Libra and AC Antennas, with a total annual business volume of approx. MSEK 390.

"A very strong first six months" – this is how we would like to summarise the beginning of the split financial year 2021/22. The recovery after the pandemic has strengthened and changed over to growth where all divisions are delivering good organic growth and we also see clearly positive effects from the acquired businesses. In numerical terms, the organic sales growth for the Group was a historically high 16% and a further 19% came from acquisitions. Of the increase in the operating profit (EBITA) of MSEK 148 in total, MSEK 88, equivalent to approximately 60% came from organic improvements. While well aware of the fact that the first six months of the previous year were negatively impacted by the effects of the pandemic, this is still very gratifying and stronger than we expected.

The half-year result was thus strong where the profit (after net financial items) reached MSEK 336, an increase of just over 70% compared to the year-earlier period (197). The operating margin reached 16.1% (13.5) and both earnings per share on a moving 12-month basis and the return on equity reached new all-time-highs of SEK 2.41 per share and 28%, respectively.

It was also positive during the first six months that we implemented our starting point for growth – what we are calling "Lagercrantz towards one billion". As of April 2021 we have established a new organisation with a new divisional structure, clearer growth ambitions, both organically and via acquisitions, and a clear focus with ambitions and goals relating to sustainability. By focusing the divisions on attractive areas with underlying structural growth and declared goals for sustainability, the intention is to create clarity and ambition that attracts the acquisition market, employees, customers, suppliers and the stock market and thereby further improve the potential for growth.

It is also important to highlight the three acquisitions we carried out during the first six months. We see along the way that Lagercrantz's approach to nurturing, internationalising and further developing owner-led product companies in particular, is perceived as increasingly attractive. We are therefore proud and happy that the owners of CW Lundberg in Sweden, Libra in Norway and now most recently AC Antennas in Denmark, have chosen to let their life's work become a part of Lagercrantz. These companies generate combined annual revenue of about MSEK 390 with good profitability and the intention in all three cases is to continue developing the export side of the businesses. During the previous year, a further eight owners decided to sell to Lagercrantz in particular as they have confidence in our ownership concept involving great responsibility, clear decentralisation and management by objectives.

Ahead of the coming quarters, I am still optimistic. So far we have handled the component shortage, rising raw material and freight costs confirmed by several of the Group's companies in an exceptional way through price adjustments and creativity in finding alternative delivery routes and in certain cases alternative suppliers. Incoming orders also remain strong, which taken together, gives me great confidence about Lagercrantz's prospects both in the short and long term.

Jörgen Wigh President and CEO

_____________________________________________________________________________________

NET REVENUE AND PROFIT

Quarter 2 (July – September 2021)

The business situation was generally strong in the Group's main markets in the Nordic countries and Northern Europe with good growth and a continued recovery after the pandemic. Strong growth was noted in many of the Group's businesses. Uncertainties in the supply chain with higher freight costs and increasing costs for components and input materials were handled well in the subsidiaries overall with maintained margins and earnings improvements.

Consolidated net revenue for the second quarter of the financial year increased by 31% and amounted to MSEK 1,201 (918). The currency effect on net revenue was MSEK -17. Acquired businesses made a contribution of MSEK 179. Net revenue in comparable units, measured in local currency, increased by 13% compared to the year-earlier period.

Operating profit (EBITA) for the quarter increased by 45% and amounted to MSEK 192 (132). The operating

margin amounted to 16.0% (14.4) Acquired businesses had, as expected, a positive impact on the profit for the quarter.

Consolidated profit after net financial items increased by 50% and amounted to MSEK 156 (104) in the quarter. The currency effect on the profit amounted to MSEK -2 (-1). Profit after taxes for the period increased to MSEK 116 (81). Earnings per share after dilution for the latest 12-month period amounted to SEK 2.41, compared to SEK 1.91 for the 2020/21 financial year.

Starting from the 2021/22 financial year, the new divisional structure will be implemented with five divisions, which was announced in March 2021. This has meant the move of some companies between the divisions and the businesses which are included in each division are shown in Appendix 1. Figures have been adjusted retroactively in view of these changes.

DIVISIONS

			Net revenue					Operating profit (EBITA)
	3 months	3 months*	6 months	6 months*	12 months*	3 months	3 months*	6 months	6 months*	12 months*
MSEK	Jul-Sep 2021/22	Jul-Sep 2020/21*	Apr-Sep 2021/22	Apr-Sep 2020/21*	Apr-Mar 2020/21	Jul-Sep 2021/22	Jul-Sep 2020/21*	Apr-Sep 2021/22	Apr-Sep 2020/21*	Apr-Mar 2020/21
Electrify	340	283	717	585	1,209	56	45	123	87	193
Operating margin						16.5%	15.9%	17.2%	14.9%	16.0%
Control	132	119	284	260	578	17	9	39	24	83
Operating margin						12.9%	7.6%	13.7%	9.2%	14.4%
TecSec	197	133	414	266	561	34	24	76	45	95
Operating margin						17.3%	18.0%	18.4%	16.9%	16.9%
Niche Products	299	212	630	450	1,034	62	44	129	95	209
Operating margin						20.7%	20.8%	20.5%	21.1%	20.2%
International	233	171	457	334	709	31	17	58	29	80
Operating margin						13.3%	9.9%	12.7%	8.7%	11.3%
Parent Company /consolidation items	-	-	-	-	-	-8	-7	-21	-24	-44
GROUP TOTAL	1,201	918	2,502	1,895	4,091	192	132	404	256	616
Operating margin						16.0%	14.4%	16.1%	13.5%	15.1%
Amortisation, intangible assets						-28	-21	-55	-43	-87
Financial items						-8	-7	-13	-16	-27
PROFIT BEFORE TAXES						156	104	336	197	502

*Five divisions have been established starting from 1 April 2021 (previously four divisions). The new divisional structure has resulted in the move of companies between the divisions (see Appendix 1). Comparable figures have been restated in view of this.

NET REVENUE AND PROFIT BY DIVISION SECOND QUARTER

Electrify

The Electrify division's net revenue for the quarter increased by 20% and amounted to MSEK 340 (283). Operating profit (EBITA) improved by 24% and amounted to MSEK 56 (45), which gave an operating margin of 16.5% (15.9).

The division has had a stable quarter with a positive development in the traditional home markets. The exporting companies are continuing to display strong profits and the business volume is increasing both organically and through acquisitions. Electrification of society is having a positive effect on the units in the division where for instance Norwesco, Esari and Elpress have performed well. Project transactions for the telecom industry were delivered by Cue Dee in the quarter.

Higher material prices and delivery challenges were handled well by the business during the quarter and operating profit improved.

Control

The Control division's net revenue increased by 11% and amounted to MSEK 132 (119). Operating profit (EBITA) increased by 89% to MSEK 17 (9), which increased the operating margin to 12.9% (7.6).

The business situation has been positive during the quarter with a strong improvement in earnings reported in most of the profit centres. Precimeter can be singled out in particular, which benefited from the willingness to invest among aluminium smelters and Excidor which supplies the construction and forestry industry in Sweden.

TecSec

The TecSec division's net revenue for the second quarter of the financial year increased by 48% and amounted to MSEK 197 (133). Operating profit (EBITA) increased by 42% to MSEK 34 (24) with an operating margin that amounted to 17.3% (18.0). The division's volume and earnings improvements came from existing businesses, mainly from ISG Nordic and R-Con and also from acquisitions. The acquisition CWL, in the roof safety segment, has made a successful entry to the division and

is performing above expectations. The businesses have proactively implemented price adjustments where possible and balanced the increased material and purchasing costs and have managed the supply chain in a business-like manner.

Niche Products

The Niche Products division increased its net revenue during the quarter by 41% to MSEK 299 (212). Operating profit (EBITA) increased by 41% to MSEK 62 (44), equivalent to an operating margin of 20.7% (20.8).

Increased demand and earnings improvements were noted among most businesses in the division. Even companies facing challenges with their supply chains and component shortages have performed well during the quarter. Dorotea Mekaniska can be singled out, reporting strong growth and improved earnings. Wapro's successes in the USA are continuing and the market situation has improved for Asept as restaurants are opening after the pandemic. Denmark-based Nikodan also delivered another strong quarter with good volume and profit growth.

International

The International division's net revenue increased by 36% and amounted to MSEK 233 (171) and the operating profit (EBITA) increased by 82% and amounted to MSEK 31 (17), which corresponds to an operating margin of 13.3% (9.9).

The businesses have handled disruptions in the supply and delivery chain well which together with strong demand explained the good earnings improvement during the quarter. The acquisition Libra had a positive impact on profit and the German and Danish businesses Schmitztechnik, ISIC and ACTE DK, as well as ACTE Solutions in Sweden performed well during the quarter. Unitronic in Germany turned last year's quarterly loss into a profit.

PROFITABILITY AND FINANCIAL POSITION

Return on equity for the latest 12-month period amounted to 28% (22) and the return on capital employed was 19% (16). The Group's metric for return on working capital (P/WC) was 74% (63).

Equity per share totalled SEK 9.15 at the end of the period, compared to SEK 9.12 at the beginning of the financial year. Aside from profit, this metric was also affected by dividends paid. The equity ratio was 34% compared to 40% at the start of the financial year.

During the quarter, the operating net indebtedness increased to MSEK 1,527 (992 at the start of the financial year) due to the completed acquisitions. The operating net debt equity ratio was 0.8 (0.5 at the start of the financial year). Net indebtedness including pension liability and the IFRS 16 effect amounted to MSEK 1,912 (1,314 at the start of the financial year). The pension liability amounted to MSEK 75 (76) and the IFRS 16 effect amounted to MSEK 310 (MSEK 246 at the start of the financial year).

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities during the quarter amounted to MSEK 113 (80). Gross investments in property, plant and equipment amounted to MSEK 20 (11) during the second quarter, of which the largest items related to production facilities and equipment.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's net revenue for the quarter amounted to MSEK 11 (9) and profit after net financial items and taxes was MSEK 227 (-7). The result includes exchange rate adjustments on intra-group lending of MSEK 0 (0) and dividends from subsidiaries of MSEK 239 (3).

The Parent Company's equity ratio was 49% (51).

Employees

At the end of the period, the number of employees in the Group was 1,802, compared to 1,626 at the beginning of the financial year. During the period, 134 employees were added through acquisitions.

Share capital

The share capital amounted to MSEK 49 at the end of the period.

The quota value per share amounted to SEK 0.23.

Classes of shares were distributed as follows on 30 September 2021:

Classes of shares	Number
A shares	9,791,406
B shares	198,768,375
Repurchased B shares	-5,024,226
Total	203,535,555

At 30 September 2021, Lagercrantz Group held 5,024,226 own Class B shares, equivalent to 2.4% of the total number of shares and 1.7% of the votes. Repurchased shares cover, inter alia, the company's obligations under outstanding call option programmes. No shares were repurchased during the second quarter of the financial year.

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 2018 were redeemed.

At the end of the period, there were three outstanding call option programmes as follows:

Option programme	Number of outstanding options*	Redemption price

2020/24	1,200,000	78.50
2019/22	1,253,700	52.10
2018/21	60,000	35.30
Total	2,513,700

*An option carries the right to purchase one share.

After the end of the period, 800,000 options for B shares with a redemption price of SEK 145.50 were issued in accordance with the resolution of the 2021 AGM. These options were acquired by about 80 managers and senior executives in the Group for a total of MSEK 9.

ACCOUNTING PRINCIPLES

The Interim Report for the Group has been prepared in accordance with IFRS standards with application of IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Markets Act.

Apart from in the financial statements and accompanying notes, disclosures according to IAS 34.16A are also presented in other parts of the report. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Markets Act, which is in accordance with the provisions of RFR 2, Accounting for Legal Entities.

The same accounting policies and judgement criteria have been applied as in the Lagercrantz Group's Annual Report 2020/21. In addition, new IFRS standards and IFRIC interpretations, were applied.

See the company's Annual Report for the 2020/21 financial year for further accounting policies.

ALTERNATIVE PERFORMANCE MEASURES

Lagercrantz 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. Therefore, they should 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, See page 16.

During the first six months, 100% of the shares in CW Lundberg AB with subsidiaries were acquired as well as 75% of the shares in Libra-Plast AS with subsidiaries (Libra) and 100% of the shares were acquired in the companies AC Antennas A/S and Strattman ApS (AC Antennas).

CW Lundberg is a leader in safety products for roofs and facades. In the 2020 calendar year, the group generated annual sales of about MSEK 185 with a pro forma operating profit (EBITA) of approx. MSEK 33. The acquisition is part of division TecSec as of April 2021.

Libra is a market leader in premium quality doors, hatches and storage units to the marine industry. The products are sold internationally and the customer base consists of shipyards. The group generated annual sales of about MNOK 175 with a pro forma operating profit (EBITA) of approx. MNOK 28. The acquisition was executed in May.

AC Antennas is leading within antennas for use in primarily the maritime market. The company started in 1970 and has had a good development for many years. As a subsidiary of ISIC, AC Antennas is part of Lagercrantz International. AC Antennas generates annual revenue of approx. MDKK 16 with good profitability. The acquisition is part of the division as of August 2021.

During the quarter, the difference between reserved, paid and remeasured contingent consideration amounted to MSEK 6 (0), which was taken up as income as other operating income.

During the quarter, MSEK 29 (32) was paid in contingent consideration for previous acquisitions.

Preliminary purchase price allocation last 12 months Oct 2020-Sep 2021

The purchase price allocation includes acquisitions during the quarter. The analysis is preliminary and includes Sajas Group, Nexlan, VP metall, Esari, Hovicon, Vihab, Proagria/Riawatech, CWL Group, Libra and AC Antennas.

Preliminary purchase price allocation

(RTM Oct-Sept 2021)
	Book value in	Fair value	Fair value
Acquired companies' net assets at the time of acquisition.	companies	adjustment	condsolidated
Intangible non-current assts	99	257	356
Other non-current assets	85		85
Inventories and work in progress	149		149
Other short-term receivables *)	254		254
Interest-bearing liabilities	-88		-88
Other liabilities	-229	-55	-284
Net of identified assets/liabilities	270	202	472
Goodwill	-	-	264
Estimated Purchase price	-	-	736

* .of which cash and cash equivalents MSEK 82.

**.the acquisitions include contingent consideration of MSEK 53, which represents 58% of the maximum outcome.

Transactions with related parties

Transactions between Lagercrantz and related parties with a significant impact on the company's financial position and results have not occurred.

Risks and uncertainty factors

The most important risk factors for the Group are the state of the economy, structural changes in the market, customer and supplier dependence, the competitive situation, IT risks/cyber attacks, pandemics 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 2020/21 Annual Report.

Covid-19 effects

The Group's operations have been able to be conducted without larger disruptions from the pandemic. A handful of the Group's approx. 60 businesses are still affected but sales have been characterised by a recovery in line with markets and customers reopening.

In the impacted businesses, situated-adapted measures are being implemented. No material impairment losses or bad debt losses have occurred during the quarter.

Post-balance sheet events

The incentive programme that was approved by the Annual General Meeting 2021, relating to call options on repurchased Class B shares, was fully subscribed for after the end of the period, see information under Share capital.

No other significant events for the company have occurred after the balance sheet date on 30 September 2021.

Annual General Meeting 2021

The 2021 Annual General Meeting (AGM) was held on 24 August 2021 in Stockholm. 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, 22 October 2021

Fredrik Börjesson Anna Almlöf Anders Claeson Chairman of the Board Board member Board member

Anna Marsell Jörgen Wigh Ulf Södergren Board member President and Board member Board member

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

Quarterly data by division *

Net revenue		2021/22			2020/21
MSEK	Q2	Q1	Q4	Q3	Q2
Electrify	340	377	320	304	283
Control	132	152	156	162	119
TecSec	197	217	136	159	133
Niche Products	299	331	313	271	212
International	233	224	193	182	171
Parent Company /consolidation items	-	-	-	-	-
GROUP TOTAL	1,201	1,301	1,118	1,078	918
EBITA		2021/22			2020/21
MSEK	Q2	Q1	Q4	Q3	Q2
Electrify	56	67	57	49	45
Control	17	22	30	29	9
TecSec	34	42	22	28	24
Niche Products	62	67	61	53	44
International	31	27	30	21	17
Parent Company /consolidation items	-8	-13	-8	-12	-7
GROUP TOTAL	192	212	192	168	132
EBITA margin		2021/22			2020/21
%	Q2	Q1	Q4	Q3	Q2
Electrify	16.5	17.8	17.8	16.1	15.9
Control	12.9	14.5	19.2	17.9	7.6
TecSec	17.3	19.4	16.2	17.6	18.0
Niche Products	20.7	20.2	19.5	19.6	20.8
International	13.3	12.1	15.5	11.5	9.9
Parent Company /consolidation items	-	-	-	-	-
GROUP TOTAL	16.0	16.3	17.2	15.6	14.4

*The new divisional structure has resulted in the move of companies between the divisions (see Appendix 1). Comparable figures have been restated in view of this.

Consolidated Income Statement – condensed

MSEK	3 months Jul-Sep 2021/22	3 months Jul-Sep 2020/21	6 months Apr-Sep 2021/22	6 months Apr-Sep 2020/21	Moving 12 months Oct-Sep 2021/22	Financial year 2020/21
Net revenue	1,201	918	2,502	1,895	4,698	4,091
Cost of goods sold	-750	-574	-1,546	-1,173	-2,886	-2,513
GROSS PROFIT	451	344	956	722	1,812	1,578
Selling expenses	-201	-166	-412	-347	-787	-722
Administrative expenses	-94	-79	-202	-173	-378	-349
Other operating income and operating expenses	8	12	7	11	18	22
PROFIT BEFORE NET FINANCIAL ITEMS *)	164	111	349	213	665	529
Net financial items	-8	-7	-13	-16	-24	-27
PROFIT AFTER FINANCIAL ITEMS	156	104	336	197	641	502
Taxes	-40	-23	-81	-46	-149	-114
NET PROFIT FOR THE PERIOD	116	81	255	151	492	388
*) Of which: - amortisation of intangible non-current assets arising in connection with acquisitions: - depreciation of other non-current assets:	(-28) (-47)	(-21) (-38)	(-55) (-95)	(-43) (-74)	(-99) (-179)	(-87) (-158)
Operating profit (EBITA)	192	132	404	256	764	616
Earnings per share, SEK	0.57	0.40	1.25	0.74	2.42	1.91
Earnings per share after dilution, SEK	0.57	0.40	1.25	0.74	2.41	1.91
Weighted number of shares after repurchases, ('000)	203,533	203,244	203,486	203,220	203,441	203,307
Weighted number of shares after repurchases adjusted after dilution ('000)	204,608	203,901	204,404	203,739	204,069	203,673
Number of shares at end of period after repurchases ('000)	203,536	203,244	203,536	203,244	203,536	203,421

In view of the redemption price on outstanding call options during the period (SEK 35.30, SEK 52.10 and SEK 78.50) and the average share price (SEK 85.74) during the latest 12-month period, there was a dilutive effect of 0.3% For the latest quarter, there was a dilutive effect of 0.5% (average share price SEK 112.34).

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

MSEK	3 months Jul-Sep 2021/22	3 months Jul-Sep 2020/21	6 months Apr-Sep 2021/22	6 months Apr-Sep 2020/21	Moving 12 months Oct-Sep 2021/22	Financial year 2020/21
Net profit for the period	116	81	255	151	492	388
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	9	-3	-5	-27	-29	-51
Debt instruments measured at fair value	-3	-7	-3	-7	-14	-18
Items that cannot be reposted to net profit for the period
Actuarial effects on pensions	-	-	-	-	-2	-2
Taxes attributable to actuarial effects	-	-	-	-	0	0
COMPREHENSIVE INCOME FOR THE PERIOD	122	71	247	117	447	317

Consolidated Balance Sheet – condensed

MSEK	30 Sep 2021	30 Sep 2020	31 Mar 2021
ASSETS
Goodwill	1,814	1,491	1,609
Other intangible non-current assets	959	729	785
Property, plant and equipment	695	447	586
Financial assets	27	18	21
Inventories	812	570	655
Trade receivables and contract assets	823	625	672
Other current receivables	145	129	131
Cash and bank balances	189	148	151
TOTAL ASSETS	5,464	4,157	4,610
EQUITY AND LIABILITIES
Equity	1,863	1,662	1,855
Non-current liabilities*	1,942	1,076	1,172
Trade payables and contract liabilities	460	312	402
Other current liabilities*	1,199	1,107	1,181
TOTAL EQUITY AND LIABILITIES	5,464	4,157	4,610
Interest-bearing assets	189	148	151
Interest-bearing liabilities, excluding pension liabilities*	2,025	1,321	1,389

*Including IFRS16 effect in the form of future lease and rental obligations.

Consolidated Statement of Changes in Equity

MSEK	6 months Apr-Sep 2021/22	6 months Apr-Sep 2020/21	Moving 12 months Oct-Sep 2021/22	Financial year 2020/21
Opening balance	1,855	1,684	1,662	1,684
Comprehensive income for the period	247	117	447	317
Shareholders' contributions from minority owners in subsidiaries	-	3	-	3
Dividend to minority owners in subsidiaries	-12	-3	-14	-5
Transactions with owners
Dividend	-204	-135	-204	-135
Redemption and acquisition of options on repurchased shares, net	-23	-4	-28	-9
Repurchase of own shares	-	-	-	-
CLOSING BALANCE	1,863	1,662	1,863	1,855

Consolidated Statement of Cash Flows

MSEK	3 months Jul-Sep 2021/22	3 months Jul-Sep 2020/21	6 months Apr-Sep 2021/22	6 months Apr-Sep 2020/21	Moving 12 months Oct-Sep 2021/22	Financial year 2020/21
Operating activities
Profit after financial items	156	104	336	197	641	502
Adjustments for taxes paid, items not included in cash flow, etc.	29	10	110	74	180	144
Cash flow from operating activities before changes in working capital	185	114	446	271	821	646
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories	-40	7	-86	-8	-80	-2
Increase (-)/Decrease (+) in operating receivables	6	-8	-84	97	-55	126
Increase (+)/Decrease (-) in operating liabilities	-38	-33	-22	-34	24	12
Cash flow from operating activities	113	80	254	326	710	782
Investing activities
Investment in businesses	-80	-57	-369	-70	-624	-325
Investments in/disposals of other non-current assets, net	-27	-13	-52	-27	-115	-90
Cash flow from investing activities	-107	-70	-421	-97	-739	-415
Financing activities
Dividends, redemption of options & repurchase of own shares/options	-212	-138	-239	-142	-244	-147
Financing activities	182	131	444	-56	314	-186
Cash flow from financing activities	-30	-7	205	-198	70	-333
CASH FLOW FOR THE PERIOD	-24	3	38	31	41	34
Cash and cash equivalents at the beginning of the period	212	145	151	117	148	117
Exchange difference in cash and cash equivalents	1	-	-	-	-	-
Cash and cash equivalents at the end of the period	189	148	189	148	189	151

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 and call options on minority interests, which are measured using discounted estimated cash flows and are therefore included in level 3 under IFRS 13.

Carrying amount, MSEK	30 Sep 2021	31 Mar 2021
Assets measured at fair value	-	-
Assets measured at amortised cost	974	792
TOTAL ASSETS, FINANCIAL INSTRUMENTS	974	792
Liabilities measured at fair value	221	175
Liabilities measured at amortised cost	2,120	1,509
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	2,341	1,684

Change in contingent considerations	6 months Apr – Sep 2021/22	Financial year 2020/21
Opening balance Liabilities settled during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange difference	175 -29 -3 82 -4	199 -70 10 41 -5
Carrying amount at end of the period	221	175

Parent Company Income Statement – condensed

MSEK	3 months Jul-Sep 2021/22	3 months Jul-Sep 2020/21	6 months Apr-Sep 2021/22	6 months Apr-Sep 2020/21	Moving 12 months Oct-Sep 2021/22	Financial year 2020/21
Net revenue	11	9	22	18	40	36
Administrative expenses	-21	-17	-42	-35	-83	-76
Other operating income and operating expenses	-	1	-	1	1	2
OPERATING PROFIT	-10	-7	-20	-16	-42	-38
Financial income	241	4	267	12	683	428
Financial expenses	-4	-4	-9	-16	-19	-26
PROFIT AFTER FINANCIAL ITEMS	227	-7	238	-20	622	364
Change in untaxed reserves	-	-	-	-	-36	-36
Taxes	2	2	5	6	-24	-23
NET PROFIT FOR THE PERIOD	229	-5	243	-14	562	305

Parent Company Balance Sheet – condensed

MSEK	30 Sep 2021	30 Sep 2020	31 Mar 2021
ASSETS
Property, plant and equipment	-	1	-
Financial assets	3,223	2,749	2,828
Current receivables	884	473	876
Cash and bank balances	-	-	-
TOTAL ASSETS	4,107	3,223	3,704
EQUITY AND LIABILITIES Equity Untaxed reserves Non-current liabilities	1,960 49 1,395	1,630 14 720	1,944 49 719
Current liabilities	703	859	992
TOTAL EQUITY AND LIABILITIES	4,107	3,223	3,704

Key ratios

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

	Moving 12 months Oct-Sep 2021/22	2020/21	2019/20	2018/19	2017/18
Revenue	4,698	4,091	4,180	3,932	3,410
Change in revenue, %	14.4	-2.1	6.3	15.3	10.1
Operating profit (EBITA)	764	616	565	519	436
Operating margin (EBITA), %	16.3	15.1	13.5	13.2	12.8
EBIT	665	529	483	451	378
EBIT margin, %	14.2	12.9	11.6	11.5	11.1
Profit after financial items	641	502	460	431	358
Profit margin, %	13.6	12.3	11.0	10.7	10.5
Profit after taxes	492	388	366	342	286
Equity ratio, %*	34	40	39	39	36
Return on working capital (P/WC), %	74	67	64	63	60
Return on capital employed, %	19	17	17	18	17
Return on equity, %	28	22	23	24	23
Net debt (+)/receivables (-), MSEK **	1,912	1,314	1,312	1,004	1,102
Net debt/equity ratio, times**	1.0	0.7	0.8	0.7	0.9
Operating net debt (+)/receivables (-), MSEK	1,527	992	1,056	928	1,035
Operating net debt/equity ratio, times	0.8	0.5	0.6	0.6	0.8
Interest coverage ratio, times	17.5	12	13	15	14
Number of employees at end of period	1,802	1,626	1,532	1,450	1,387
Revenue outside Sweden, MSEK	3,076	2,650	2,706	2,491	2,151

* The equity ratio includes the IFRS 16 effect from 1 April 2019.

** Net debt and net debt/equity ratio includes pensions. The effect of IFRS 16 is included from 1 April 2019.

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.	Financial year
	Moving 12 months
	Oct-Sep
	2021/22	2020/21	2019/20	2018/19	2017/18
Number of shares at end of period after repurchases ('000)	203,536	203,421	203,178	203,061	202,968
Weighted number of shares after repurchases, ('000)	203,441	203,307	203,151	203,046	203,604
Weighted number of shares after repurchases & dilution ('000)	204,069	203,673	203,616	203,046	203,772
Earnings per share, SEK	2.42	1.91	1.80	1.68	1.40
Earnings per share after dilution, SEK	2.41	1.91	1.80	1.68	1.40
Cash flow from operating activities per share after dilution, SEK*	3.48	3.84	2.49	2.28	1.38
Equity per share, SEK	9.15	9.12	8.29	7.43	6.42
Latest price paid per share, SEK	104.90	79.10	38.60	33.33	27.83

*Includes the IFRS 16 effect from 1 April 2019.

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)

Operating profit (EBITA) 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).

EBIT margin

Profit before net financial items 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 adjusted for 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 adjusted for dilution.

Net debt/receivables

Interest-bearing provisions and liabilities, including pension liabilities and including liabilities related to financial leases according to IFRS 16, less cash and cash equivalents and investments in securities.

Net debt/equity ratio

Interest-bearing provisions and liabilities including pension liabilities and including IFRS 16, less cash and cash equivalents and investments in securities, divided by equity plus non-controlling interests.

Operating net debt/receivables

Interest-bearing provisions and liabilities, excluding pensions and excluding liabilities related to financial leases according to IFRS 16, less cash and cash equivalents and investments in securities.

Operating net debt/equity ratio

Interest-bearing provisions and liabilities, excluding pensions and excluding effects of IFRS 16, 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.

Earnings per share

Net profit for the year attributable to the parent company's shareholders in relation to the weighted number of shares outstanding after repurchases.

Earnings per share after dilution

Profit for the year attributable to the Parent Company's shareholders in relation to the weighted number of shares outstanding after repurchases and dilution.

Interest coverage ratio

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

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.

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. The equity portion of untaxed reserves is included in the parent company's calculation of the equity ratio.

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 such 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 CET on 22 October 2021.

Reporting dates:

4 February 2022 Quarterly Report Q3 for the period 1 October 2021–31 December 2021 17 May 2022 Year-end Report for the period 1 April 2021–31 March 2022 19 July 2022 Quarterly Report Q1 for the period 1 April–30 June 2022

For further information, please contact: Jörgen Wigh, President, phone +46 8 700 66 70 Kristina Elfström Mackintosh, CFO, 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

This Interim Report is a translation from the Swedish version. Should there be any discrepancies, the Swedish version shall prevail.

Corporate structure

The new divisional structure applies starting from 1 April 2021 and the following businesses are part of each division.

ELECTRIFY

Cue Dee AB Dooman AB EFC Finland Oy Elfac A/S Elkapsling AB Elpress AB Enkom Active Oy Esari Oy (Oy Esari Ab) Exilight Oy KPRO AB Norwesco AB Steelo AB Swedwire AB VP metall AS

CONTROL

Direktronik AB Excidor AB Gasiq AB Leteng AS Load Indicator AB Precimeter AB Radonova Laboratories AB Vanpee A/S (DK) Vanpee AB (part of Direktronik AB as of 1July 2021) Vanpee AS (NO)

TECSEC

COBS AB CW Lundberg AB Frictape Net Oy Idesco Oy ISG Nordic AB (ISG and Nordic Alarm) R-Contracting AB STV AB

NICHE PRODUCTS

Asept International AB Dorotea Mekaniska AB Hovicon International B.V. Kondator AB Nikodan A/S Riawatech A/S (formerly Proagria Miljø A/S) Profsafe AB Plåt & Spiral Teknik AB Sajas Group Svenska Industriborstar AB Thermod AB Tormek AB Wapro AB Vendig AB

Appendix 1

INTERNATIONAL

AC Antennas A/S & Strattman ApS ACTE A/S (DK) ACTE AS (NO) ACTE Sp.o o. z. (PL) ACTE Solutions AB CAD Kompagniet A/S E-Tech Components Ltd G9 A/S ISIC A/S Libra-Plast AS NST DK A/S Schmitztechnik GmbH Skomø A/S Unitronic