Interim Report 2021/22 Q3

Third quarter (1 October – 31 December 2021)

Net revenue increased by 30% to MSEK 1,405 (1,078).
- ➢ Organically, net revenue increased by 14%.
Operating profit (EBITA) increased by 35% to MSEK 226 (168), equivalent to an operating margin of 16.1% (15.6).
Profit after financial items increased by 37% to MSEK 191 (139).
Profit after taxes increased by 33% to MSEK 148 (111).
Cash flow from operating activities amounted to MSEK 172 (226).
Return on equity for the latest 12-month period amounted to 29% (22) and the equity ratio at the end of the period was 36% (40).

Nine months (1 April – 31 December 2021)

Net revenue increased by 31% to MSEK 3,907 (2,973).
- ➢ Organically, net revenue increased by 15%.
Operating profit (EBITA) increased by 49% to MSEK 630 (424), equivalent to an operating margin of 16.1% (14.3).
Profit after financial items increased by 57% to MSEK 527 (336) and profit after taxes increased by 54% to MSEK 403 (262).
Earnings per share after dilution for the latest 12-month period amounted to SEK 2.59, compared to SEK 1.91 for the 2020/21 financial year.
Cash flow from operating activities amounted to MSEK 426 (552).

• During the nine month period, five acquisitions were carried out, CW Lundberg, Libra, AC Antennas, Geonor and GM Scientific with a total annual business volume of approx. MSEK 420. After the end of the period, the acquisitions of Westmatic and ARAS Security were also carried out.

Lagercrantz Group AB (publ) PO Box 3508 SE-103 69 Stockholm, Sweden Phone +46 (0)8-700 66 70 Corporate identity no 556282-4556 Registered office Stockholm www.lagercrantz.com

STATEMENT OF THE CHIEF EXECUTIVE

The third quarter of the financial year offered a continued strong performance in most of the Group's businesses where the sales volume, both organically and including acquisitions, increased at about the same level as earlier in the year. In numerical terms, the total increase in net revenue was 30% in the quarter and 31% for the first nine months of the year, and organically the equivalent figure was 14% for the quarter and 15% for the nine-month period.

Earnings in the nine-month period were therefore strong where the operating profit (EBITA) increased by 49% to MSEK 630 (424). The majority of this, equivalent to approximately 60% of the improved operating profit, came from organic improvements. The operating margin amounted to 16.1% (14.3) and profit after net financial items increased by 57% to MSEK 527 (336) compared to the previous nine-month period. Taken together, these improvements mean that earnings per share, after dilution, increased by 45% in one year to SEK 2.59 per share – a new record level, and that the return on equity also reached a new all-time-high of 29% (22).

It is particularly gratifying that the improvements are continuing to come on a broad front from many parts of the Group. This is apparent, in the increased earnings in all five divisions, among other things. Our starting point for continued growth from last spring – what we call "Lagercrantz towards one billion" – has created a common goal. By further developing the focus of the divisions, we are concentrating on attractive product areas and markets with structural growth and clear goals regarding sustainability. This creates clarity and ambition that attracts the acquisition market, employees, customers, suppliers and the stock market, which further improves the potential for growth.

It is also important to highlight the twelve acquisitions we carried out in the past twelve months, of which seven were during the present financial year. We see along the way that Lagercrantz's ability to nurture, further develop and internationalise owner-led product companies in particular, is attracting more and more sellers of companies. We are therefore proud and happy that the owners of CW Lundberg in Sweden, Libra and Geonor in Norway, AC Antennas in Denmark, GM Scientific in the UK – and now most recently Westmatic in Sweden and ARAS Security in Denmark – have chosen to let their life's work become a part of Lagercrantz. In total, these companies add approximately MSEK 665 in business volume with good profitability. We are looking forward with great responsibility, clear decentralisation and management by objectives, in most cases together with the previous owners, to take these companies to new heights.

Ahead of the coming quarters, I am still optimistic. The pandemic is certainly reappearing with increased spread of infection and high absence due to illness within the Group and among our customers, but it already seems to be easing in the countries that were affected by Omicron early on. Incoming orders remain at a good level and so far we have effectively handled rising raw material and freight costs and component shortages through price adjustments and creativity. Taken together, this 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 3 (October – December 2021)

The market development during the third quarter of the financial year was generally strong in the Group's main markets in the Nordic countries and Northern Europe with good growth in most of the Group's businesses. Supply chain disruptions with component shortages, longer lead times and higher costs for input materials and freight were handled well during the period in the subsidiaries with largely maintained margins.

Consolidated net revenue for the third quarter of the financial year increased by 30% and amounted to MSEK 1,405 (1,078). The currency translation effect on net revenue was MSEK 0 and acquired businesses made a contribution of MSEK 175. Net revenue in comparable units, measured in local currency, thus increased by 14%.

Operating profit (EBITA) for the quarter increased by 35% and amounted to MSEK 226 (168). The operating

margin amounted to 16.1% (15.6) Acquired businesses had a positive impact on the profit for the quarter.

Consolidated profit after net financial items increased by 37% and amounted to MSEK 191 (139) in the quarter. The effect from currency translation on the profit amounted to MSEK -1 (-2). Profit after taxes for the period increased to MSEK 148 (111). Earnings per share after dilution for the latest 12-month period amounted to SEK 2.59, compared to SEK 1.91 for the 2020/21 financial year.

Starting from the 2021/22 financial year, the new divisional structure was implemented involving five divisions. The businesses that are part of each division are shown on our website www.lagercrantz.com. Figures have been adjusted retroactively in view of these changes.

DIVISIONS

	Net revenue				Operating profit (EBITA)
	3 months	3 months*	9 months	9 months*	12 months*	3 months	3 months*	9 months	9 months*	12 months*
MSEK	Oct-Dec 2021/22	Oct-Dec 2020/21*	Apr-Dec 2021/22	Apr-Dec 2020/21*	Apr-Mar 2020/21	Oct-Dec 2021/22	Oct-Dec 2020/21*	Apr-Dec 2021/22	Apr-Dec 2020/21*	Apr-Mar 2020/21
Electrify	345	304	1,062	889	1,209	54	49	177	136	193
Operating margin						15.8%	16.1%	16.7%	15.3%	16.0%
Control	187	162	471	422	578	38	29	77	53	83
Operating margin						20.3%	17.9%	16.3%	12.6%	14.4%
TecSec	241	159	655	425	561	37	28	113	73	95
Operating margin						15.4%	17.6%	17.3%	17.2%	16.9%
Niche Products	371	271	1,001	721	1,034	77	53	206	148	209
Operating margin						20.8%	19.6%	20.6%	20.5%	20.2%
International	261	182	718	516	709	39	21	97	50	80
Operating margin						14.9%	11.5%	13.5%	9.7%	11.3%
Parent Company /consolidation items
GROUP TOTAL	-	-	-	-	-	-19	-12	-40	-36	-44
Operating margin	1,405	1,078	3,907	2,973	4,091	226	168	630	424	616
Amortisation, intangible						16.1%	15.6%	16.1%	14.3%	15.1%
assets						-28	-21	-83	-64	-87
Financial items						-7	-8	-20	-24	-27
PROFIT BEFORE TAXES						191	139	527	336	502

*The Group's businesses are organised in five divisions starting from 1 April 2021 (see www.lagercrantz.com). Comparable figures have been restated in view of this.

NET REVENUE AND PROFIT BY DIVISION THIRD QUARTER

Electrify

The Electrify division's net revenue for the quarter increased by 13% to MSEK 345 (304). Operating profit (EBITA) improved by 10% to MSEK 54 (49), which represents an operating margin of 15.8% (16.1).

The division reported another strong quarter with a positive development. Electrification of society is having a positive effect on the larger units in the division and on the cabling businesses, which performed well. Within the infrastructure segment, Cue Dee delivered a strong quarter with new volumes of aerial brackets for the telecom sector and 5G expansion. Higher metal and raw material prices and high electricity and freight prices were offset by higher out-the-door prices and some build-up of safety stock.

Control

The Control division's net revenue increased by 15% during the quarter, mainly organic, and amounted to MSEK 187 (162). Operating profit (EBITA) increased by 31% to MSEK 38 (29), which increased the operating margin to 20.3% (17.9).

The business situation was positive during the quarter with a strong improvement in earnings in most of the profit centres. Direktronik and GasiQ can be singled out, but also Precimeter and Radonova – the latter has now begun the seasonally strong winter period for radon measurement. The newly acquired unit Geonor in Norway which joined the Group in November 2021, has got off to a good start in the Group.

TecSec

The TecSec division's net revenue for the third quarter of the financial year increased by 52% to MSEK 241 (159). Operating profit (EBITA) increased by 32% to MSEK 37 (28), which represents an operating margin of 15.4% (17.6).

The division's volume growth came both from existing businesses, mainly R-Con, Frictape and ISG Nordic, and from acquisitions. The acquisition CW Lundberg, which manufactures roof safety products is also continuing to perform well.

Niche Products

The Niche Products division increased its net revenue during the quarter by 37% to MSEK 371 (271). Operating profit (EBITA) increased by 45% to MSEK 77 (53), equivalent to an operating margin of 20.8% (19.6).

The business situation was positive in most businesses in the division, and companies with challenges in their supply chain also performed well during the quarter. Nikodan, PST, Wapro and Dorotea Mekaniska can be singled out, which are all showing strong organic sales growth and improvements in earnings. Tormek and Kondator are continuing to develop in a stable way and Asept recovered after a weak quarter last year.

International

The International division's net revenue increased by 43% to MSEK 261 (182) and the operating profit (EBITA) increased by 86% to MSEK 39 (21), which corresponds to an operating margin of 14.9% (11.5).

In many cases the businesses reported a strong development and most companies have handled the component shortage and supply chain disruptions well, although due to some build-up of safety stock. The acquisition of AC Antennas contributed positively to the subsidiary ISIC, and Libra, which was acquired in May 2021, adds both business volume and earnings at a good level. Taken together, this means that largely all profit centres contributed to the division's sales growth and improvement in earnings.

PROFITABILITY AND FINANCIAL POSITION

Return on equity for the latest 12-month period amounted to 29% (22) and the return on capital employed was 20% (17). The Group's metric for return on working capital (P/WC) amounted to 81% (67) for the latest 12-month period.

Equity per share totalled SEK 9.83 at the end of the period, compared to SEK 9.12 at the start of the financial year. The equity ratio was 36% compared to 40% at the start of the financial year.

During the quarter, the operating net indebtedness increased to MSEK 1,475 (992 at the start of the financial year), mainly due to completed acquisitions. The operating net debt equity ratio was 0.7 (0.5 at the start of the financial year). Net indebtedness including pension liability and the IFRS 16 effect amounted to MSEK 1,861 (1,314 at the start of the financial year). The pension liability amounted to MSEK 78 (76) and the IFRS 16 effect amounted to MSEK 308 (246 at the start of the financial year).

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities during the third quarter amounted to MSEK 172 (226). The higher business volume, higher raw material prices and an increase of safety stock have impacted the working capital during the year.

Gross investments in property, plant and equipment amounted to MSEK 31 (24) during the third quarter, of which the largest items related to production equipment and facilities.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's net revenue for the nine-month period amounted to MSEK 34 (27) and profit after net financial items and taxes amounted to MSEK 230 (186). The result includes exchange rate adjustments on intra-Group lending of MSEK 0 (-11) and dividends from subsidiaries of MSEK 267 (222).

The Parent Company's equity ratio was 47% (54).

Employees

At the end of the period, the number of employees in the Group was 1,849, compared to 1,654 at the beginning of the financial year. During the period, 143 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 31 December 2021:

Classes of shares	Number
A shares	9,791,406
B shares	198,768,375
Repurchased B shares	-4,923,056
Total	203,636,725

At 31 December 2021, Lagercrantz Group held 4,923,056 own Class B shares, equivalent to 2.4 percent of the total number of shares and 1.7 percent of the votes. Repurchased shares cover, inter alia, the company's obligations under outstanding call option programmes.

During the third quarter, 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.

During the third quarter, parts of the incentive programme based on options on repurchased Class B shares acquired by senior executives in the Group during 2018 and 2019 were redeemed. This means that 101,170 shares out of Lagercrantz's holdings of own Class B shares were sold to senior executives in connection with redemption of options.

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

Option programme	Number of outstanding options*	Redemption price

2021/25	800,000	145.50
2020/24	1,200,000	78.50
2019/22	486,500	52.10
Total	2,486,500

*An option carries the right to purchase one share.

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 15.

ACQUISITIONS

During the period April to December 2021, the following acquisitions were carried out (including subsidiaries);

		Equity interest,
Acquisition	Takeover	%	Division
CW Lundberg	April	100	TecSec
Libra	May	75	International
AC Antennas	August	100	International
Geonor AS	November	100	Control
GM Scientific Ltd.	November	100	Control

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

Libra is a market leader in premium quality doors, hatches and storage units to the marine industry. In the 2020 calendar year, the Libra Group generated annual sales of about MNOK 175 with a pro forma operating profit (EBITA) of approx. MNOK 28. The acquisition is part of the International division since May 2021.

AC Antennas is a leader within antennas for use in primarily the maritime market. The company was established in 1970 and generates annual revenue of approx. MDKK 16 with good profitability. As a subsidiary of ISIC, AC Antennas is part of Lagercrantz's International division since August 2021.

Geonor AS sells geotechnical, hydrological, meteorological and field equipment to customers in Norway and internationally. Geonor generates annual revenue of approximately MNOK 30 with good profitability and is part of the Control division since November 2021.

GM Scientific Ltd is a smaller supplementary acquisition to Radonova in the Control division which produces high-quality polymeric sensors used in radon measurement.

Preliminary purchase price allocation last 12 months Jan 2021-Dec 2021

The analysis is preliminary and includes VP metall, Esari, Hovicon, Vihab, Proagria/Riawatech, CW Lundberg Group, Libra, AC Antennas, Geonor and GM Scientific.

Preliminary purchase price allocation

(RTM Jan-Dec 2021)
	Book value in	Fair value	Fair value
Acquired companies' net assets at the time of acquisition.	companies	adjustment	condsolidated
Intangible non-current assts	96	273	369
Other non-current assets	67		67
Inventories and work in progress	130		130
Other short-term receivables *)	212		212
Interest-bearing liabilities	-83		-83
Other liabilities	-175	-59	-234
Net of identified assets/liabilities	247	214	461
Goodwill	-	-	346
Estimated Purchase price	-	-	807

* of which cash and cash equivalents MSEK 81.

** the acquisitions include contingent consideration of MSEK 49, which represents 63% 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, pandemics, IT risks/cyber attacks, structural changes in the market, customer and supplier 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 2020/21 Annual Report.

Covid-19 effects

It has been possible to conduct the Group's operations without larger disruptions from the pandemic. A handful of the Group's approximately 60 businesses are still affected by the pandemic and situated-adapted measures are being implemented in the impacted businesses. No material impairment losses or bad debt losses have occurred during the period.

Post-balance sheet events

Starting from 3 January 2022, the Lagercrantz Group's Class B share (LAGR B) is listed in Nasdaq Stockholm's Large Cap segment.

After the end of the period until the reporting date, Lagercrantz has acquired and taken over 82% of the shares in Westmatic Invest AB with subsidiaries and 100% of the shares in ARAS Security A/S with subsidiary.

Westmatic is a leading supplier of environmentally friendly automated washing systems for heavy-duty vehicles such as buses, trucks, construction equipment and trains. In the 2021 calendar year, the company generated annual revenue of approximately MSEK 175 with an operating profit (EBITA) of approx. MSEK 25. Westmatic is part of the Niche Products division since January 2022.

ARAS is a Danish security company and system developer specializing in combined alarm and access control systems, smart buildings and digitization. In the 2021 calendar year, the company generated annual revenue of approximately MDKK 50 with good profitability. ARAS is part of the TecSec division since January 2022.

No other significant events for the company have occurred after the balance sheet date on 31 December 2021.

Annual General Meeting 2021

The 2021 AGM was held on 24 August 2021 in Stockholm. Minutes from the AGM are published on the company's website.

Election Committee for appointment of directors

At the Annual General meeting on 24 August 2021, the Chairman of the Board was entrusted with the task of contacting the five largest shareholders in terms of votes as of 31 December 2021, and requesting them to appoint members, in order to form an Election Committee together with the Chairman of the Board. In accordance with this, the following persons were appointed as members of the Election Committee ahead of the Annual General Meeting 2022: Fredrik Börjesson (Chairman of the Board), Anders Börjesson (Tisenhult-gruppen), Patrik Jönsson (SEB Investment Management), Marianne Nilsson (Swedbank Robur Fonder), Johan Lannebo (Lannebo Fonder) and Jörgen Wigh. Proposals to the Election Committee from shareholders may be sent by email to [email protected]. More information is available on www.lagercrantz.com.

Stockholm, 4 February 2022.

Jörgen Wigh, President and CEO

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

Quarterly data by division *

Net revenue			2021/22		2020/21
MSEK	Q3	Q2	Q1	Q4	Q3
Electrify	345	340	377	320	304
Control	187	132	152	156	162
TecSec	241	197	217	136	159
Niche Products	371	299	331	313	271
International	261	233	224	193	182
Parent Company/ consolidation items	-	-	-	-	-
GROUP TOTAL	1,405	1,201	1,301	1,118	1,078
EBITA			2021/22		2020/21
MSEK	Q3	Q2	Q1	Q4	Q3
Electrify
Control	54	56	67	57	49
TecSec	38	17	22	30	29
	37	34	42	22	28
Niche Products	77	62	67	61	53
International Parent Company/	39	31	27	30	21
consolidation items	-19	-8	-13	-8	-12
GROUP TOTAL	226	192	212	192	168
EBITA margin					2020/21
%			2021/22
	Q3	Q2	Q1	Q4	Q3
Electrify	15.8	16.5	17.8	17.8	16.1
Control	20.3	12.9	14.5	19.2	17.9
TecSec	15.4	17.3	19.4	16.2	17.6
Niche Products	20.8	20.7	20.2	19.5	19.6
International	14.9	13.3	12.1	15.5	11.5
Parent Company/ consolidation items	-	-	-	-	-
GROUP TOTAL	16.1	16.0	16.3	17.2	15.6

*Current division structure applies from 1 April 2021 and is shown on www.lagercrantz.com. Comparable figures have been restated in view of this.

Consolidated Income Statement – condensed

MSEK	3 months Oct-Dec 2021/22	3 months Oct-Dec 2020/21	9 months Apr-Dec 2021/22	9 months Apr-Dec 2020/21	Moving 12 months, Jan-Dec 2021/22	Financial year 2020/21
Net revenue	1,405	1,078	3,907	2,973	5,025	4,091
Cost of goods sold	-866	-653	-2,412	-1,826	-3,099	-2,513
GROSS PROFIT	539	425	1,495	1,147	1,926	1,578
Selling expenses	-224	-187	-636	-534	-824	-722
Administrative expenses	-123	-92	-325	-265	-409	-349
Other operating income and operating expenses	6	1	13	12	23	22
PROFIT BEFORE NET FINANCIAL ITEMS *)	198	147	547	360	716	529
Net financial items	-7	-8	-20	-24	-23	-27
PROFIT AFTER FINANCIAL ITEMS	191	139	527	336	693	502
Taxes	-43	-28	-124	-74	-164	-114
NET PROFIT FOR THE PERIOD	148	111	403	262	529	388
*) Of which - amortisation of intangible non-current assets arising in connection with acquisitions	(-28)	(-21)	(-83)	(-64)	(-106)	(-87)
- depreciation of other non-current assets	(-47)	(-40)	(-142)	(-114)	(-186)	(-158)
Operating profit (EBITA)	226	168	630	424	822	616
Earnings per share, SEK	0.73	0.55	1.98	1.29	2.60	1.91
Earnings per share after dilution, SEK	0.72	0.54	1.97	1.29	2.59	1.91
Weighted number of shares after repurchases, ('000)	203,579	203,370	203,517	203,269	203,493	203,307
Weighted number of shares after repurchases adjusted after dilution ('000)	204,250	203,845	204,084	203,519	203,970	203,673
Number of shares at end of period after repurchases ('000)	203,637	203,421	203,637	203,421	203,637	203,421

In view of the redemption price on outstanding call options during the period (SEK 52.10, SEK 78.50 and SEK 145.50) and the average share price (SEK 98.77) during the latest 12-month period, there was a dilutive effect of 0.2%. For the latest quarter, there was a dilutive effect of 0.3% (average share price SEK 117.72).

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

MSEK	3 months Oct-Dec 2021/22	3 months Oct-Dec 2020/21	9 months Apr-Dec 2021/22	9 months Apr-Dec 2020/21	Moving 12 months, Jan-Dec 2021/22	Financial year 2020/21
Net profit for the period	148	111	403	262	529	388
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	17	-59	12	-86	47	-51
Debt instruments measured at fair value	0	-2	-3	-9	-12	-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	165	50	412	167	562	317

Consolidated Balance Sheet – condensed

MSEK	31 Dec 2021	31 Dec 2020	31 Mar 2021
ASSETS
Goodwill	1,840	1,473	1,609
Other intangible non-current assets	952	671	785
Property, plant and equipment	708	558	586
Financial assets	25	18	21
Inventories	885	565	655
Trade receivables and contract assets	810	575	672
Other current receivables	189	244	131
Cash and bank balances	159	136	151
TOTAL ASSETS	5,568	4,240	4,610
EQUITY AND LIABILITIES
Equity	2,002	1,705	1,855
Non-current liabilities*	1,940	1,134	1,172
Trade payables and contract liabilities	475	331	402
Other current liabilities*	1,151	1,070	1,181
TOTAL EQUITY AND LIABILITIES	5,568	4,240	4,610

Interest-bearing assets	159	136	151
Interest-bearing liabilities, excluding pension liabilities*	1,942	1,329	1,389

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

Consolidated Statement of Changes in Equity

MSEK	9 months Apr-Dec 2021/22	9 months Apr-Dec 2020/21	Moving 12 months, Jan-Dec 2021/22	Financial year 2020/21
Opening balance	1,855	1,684	1,705	1,684
Comprehensive income for the period	412	167	562	317
Shareholders' contributions from minority owners in subsidiaries	-	3	-	3
Dividend to minority owners in subsidiaries	-10	-5	-10	-5
Other	1	0	1	-
Transactions with owners
Dividend	-204	-135	-204	-135
Redemption and acquisition of options on repurchased shares, net	-52	-9	-52	-9
Repurchase of own shares	-	-	-	-
CLOSING BALANCE	2,002	1,705	2,002	1,855

Consolidated Statement of Cash Flows

MSEK	3 months Oct-Dec 2021/22	3 months Oct-Dec 2020/21	9 months Apr-Dec 2021/22	9 months Apr-Dec 2020/21	Moving 12 months, Jan-Dec 2021/22	Financial year 2020/21
Operating activities
Profit after financial items	191	139	527	336	693	502
Adjustments for taxes paid, items not included in cash flow, etc.	-9	48	101	122	128	144
Cash flow from operating activities before changes in working capital	182	187	628	458	821	646

Cash flow from changes in working capital Increase (-)/Decrease (+) in inventories	-61	12	-147	4	-157	-2
Increase (-)/Decrease (+) in operating receivables	5	36	-79	133	-91	126
Increase (+)/Decrease (-) in operating liabilities	46	-9	24	-43	83	12
Cash flow from operating activities	172	226	426	552	656	782

Investing activities
Investment in businesses	-35	-99	-404	-169	-560	-325
Investments in/disposals of other non-current assets, net	-35	-32	-87	-59	-118	-90
Cash flow from investing activities	-70	-131	-491	-228	-678	-415
Financing activities
Dividends, redemption of options & repurchase of own shares/options	-27	-4	-266	-146	-267	-147
Financing activities	-106	-103	338	-159	311	-186
Cash flow from financing activities	-133	-107	72	-305	44	-333
CASH FLOW FOR THE PERIOD	-31	-12	7	19	22	34
Cash and cash equivalents at the beginning of the period	189	148	151	117	136	117
Exchange difference in cash and cash equivalents	1	-	1	-	1	-
Cash and cash equivalents at the end of the period	159	136	159	136	159	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	31 Dec 2021	31 Mar 2021
Assets measured at fair value	-	-
Assets measured at amortised cost	930	792
TOTAL ASSETS, FINANCIAL INSTRUMENTS	930	792
Liabilities measured at fair value	227	175
Liabilities measured at amortised cost	2,035	1,509
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	2,262	1,684

Change in contingent considerations	9 months Apr – Dec 2021/22	Financial year 2020/21
Opening balance Settled liabilities during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange difference	175 -29 -3 87 -3	199 -70 10 41 -5
Carrying amount at end of the period	227	175

Parent Company Income Statement – condensed

MSEK	3 months Oct-Dec 2021/22	3 months Oct-Dec 2020/21	9 months Apr-Dec 2021/22	9 months Apr-Dec 2020/21	Moving 12 months, Jan-Dec 2021/22	Financial year 2020/21
Net revenue	12	9	34	27	43	36
Administrative expenses	-33	-21	-75	-56	-95	-76
Other operating income and operating expenses	-	1	0	2	0	2
OPERATING PROFIT	-21	-11	-41	-27	-52	-38
Financial income	9	216	276	228	476	428
Financial expenses	-6	-9	-15	-25	-16	-26
PROFIT AFTER FINANCIAL ITEMS	-18	196	220	176	408	364
Change in untaxed reserves	-	-	-	-	-36	-36
Taxes	5	4	10	10	-23	-23
NET PROFIT FOR THE PERIOD	-13	200	230	186	349	305

Parent Company Balance Sheet – condensed

MSEK	31 Dec 2021	31 Dec 2020	31 Mar 2021
ASSETS
Property, plant and equipment	-	-	-
Financial assets	3,272	2,750	2,828
Current receivables	861	646	876
Cash and bank balances	-	-	-
TOTAL ASSETS	4,133	3,396	3,704
EQUITY AND LIABILITIES Equity Untaxed reserves Non-current liabilities	1,918 49 1,407	1,824 14 720	1,944 49 719
Current liabilities	759	838	992
TOTAL EQUITY AND LIABILITIES	4,133	3,396	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 next page. Financial year

	Moving 12-months, Jan-Dec 2021/22	2020/21	2019/20	2018/19	2017/18
Revenue	5,025	4,091	4,180	3,932	3,410
Change in revenue, %	23.0	-2.1	6.3	15.3	10.1
Operating profit (EBITA)	822	616	565	519	436
Operating margin (EBITA), %	16.4	15.1	13.5	13.2	12.8
EBIT	716	529	483	451	378
EBIT margin, %	14.2	12.9	11.6	11.5	11.1
Profit after financial items	693	502	460	431	358
Profit margin, %	13.8	12.3	11.0	10.7	10.5
Profit after taxes	529	388	366	342	286
Equity ratio, % *	36	40	39	39	36
Return on working capital (P/WC) ,%	81	67	64	63	60
Return on capital employed, %	20	17	17	18	17
Return on equity, %	29	22	23	24	23
Net debt (+) /receivables (-), MSEK **	1,861	1,314	1,312	1,004	1,102
Net debt/equity ratio, times**	0.9	0.7	0.8	0.7	0.9
Operating net debt (+)/receivables (-), MSEK	1,475	992	1,056	928	1,035
Operating net debt/equity ratio, times	0.7	0.5	0.6	0.6	0.8
Interest coverage ratio, times	20	12	13	15	14
Number of employees at end of period	1,849	1,654	1,532	1,450	1,387
Revenue outside Sweden, MSEK	3,287	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 next page.			Financial year
	Moving 12-months, Jan-Dec 2021/22	2020/21	2019/20	2018/19	2017/18
Number of shares at end of period after repurchases ('000)	203,637	203,421	203,178	203,061	202,968
Weighted number of shares after repurchases, ('000)	203,493	203,307	203,151	203,046	203,604
Weighted number of shares after repurchases & dilution ('000)	203,970	203,673	203,616	203,046	203,772
Earnings per share, SEK	2.60	1.91	1.80	1.68	1.40
Earnings per share after dilution, SEK	2.59	1.91	1.80	1.68	1.40
Cash flow from operating activities per share after dilution, SEK*	3.22	3.84	2.49	2.28	1.38
Equity per share, SEK	9.83	9.12	8.29	7.43	6.42
Latest price paid per share, SEK	133.1	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 4 February 2022.

Reporting dates

17 May 2022 The 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 30 August 2022 Annual General Meeting for the 2021/22 financial year

For additional information, please contact Jörgen Wigh, President +46 8 700 66 70 Peter Thysell, CFO +46 70 661 05 59

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