INTERIM REPORT 1 APRIL – 31 DECEMBER 2022

THIRD QUARTER (1 OCTOBER – 31 DECEMBER 2022)

Net revenue increased by 38% to MSEK 1,941 (1,405), of which organic growth amounted to 10%.
Operating profit (EBITA) increased by 43% to MSEK 323 (226), equivalent to an EBITA margin of16.6% (16.1).
Cash flow from operating activities amounted to MSEK 439 (172).
Profit after financial items (EBT) increased by 31% to MSEK 251 (191).
Profit after taxes increased by 34% to MSEK 199 (148).

NINE MONTHS (1 APRIL – 31 DECEMBER 2022)

Net revenue increased by 33% to MSEK 5,206 (3,907), of which organic growth amounted to 10%.
Operating profit (EBITA) increased by 37% to MSEK 863 (630), equivalent to an EBITA margin of 16.6% (16.1).
Profit after financial items (EBT) increased by 32% to MSEK 697 (527).
Profit after taxes increased by 35% to MSEK 546 (403). Earnings per share after dilution for the latest 12-month period amounted to SEK 3.50 (2.80 for the financial year 2021/22).
Return on equity for the latest 12-month period amounted to 30% (29) and the equity ratio was 35% (36).
Since the start of the financial year, six acquisitions of companies and one asset deal have been carried out with total annual revenue of approximately MSEK 1,005.

GROUP OVERVIEW		3 months		9 months			Moving 12 months
Amounts in MSEK	31 Dec 2022	31 Dec 2021	Δ	31 Dec 2022	31 Dec 2021	Δ	31 Dec 2022	31 Mar 2022
Net revenue	1,941	1,405	38%	5,206	3,907	33%	6,781	5,482
EBITA	323	226	43%	863	630	37%	1,128	895
EBITA margin, %	16.6	16.1		16.6	16.1		16.6	16.3
Profit after financial items	251	191	31%	697	527	32%	911	741
Net profit for the period	199	148	34%	546	403	35%	715	572
Earnings per share before dilution, SEK	0.97	0.73	33%	2.68	1.98	35%	3.51	2.81
Earnings per share after dilution, SEK	0.97	0.72	33%	2.67	1.97	36%	3.50	2.80
Return on equity, %	-	-		-	-		30	28
Equity ratio, %	35	36		35	36		35	36

10% Organic growth

growth Q3 32%

43% EBITA

EBT growth 9M

CEO COMMENT

"Another strong quarter with a record profit and strong cash flow"

The market situation continued to be positive for most of Lagercrantz's businesses in the third quarter. This resulted in organic revenue growth of 10% in the quarter, incoming orders in line with net revenue and continued strong margins. During the quarter, the Electrify division acquired Tykoflex, an exciting business in one of our prioritised sectors, which adds about MSEK 140 in annual business volume with good profitability. All in all, we delivered a quarterly profit after net financial items of a record high MSEK 251, equivalent to growth of 31% from the previous year. Earnings per share increased to SEK 3.50 on a moving 12-month basis and the return on equity amounted to 30%. In addition, cash flow from operating activities during the quarter was very strong and amounted to MSEK 439 (172).

During the third quarter of the financial year, consolidated net revenue increased by 38% to MSEK 1,941 (1,405). Apart from organic growth of 10%, acquired growth accounted for 24%. Operating profit (EBITA) increased by 43% to MSEK 323 (226) and the EBITA margin strengthened to 16.6% (16.1). Strategically, we are continuing to increase our share of proprietary products and have now reached 73% on a moving 12-month basis, which means that we are approaching our goal of 75%. Proprietary products are important as we see that they provide better opportunities for both good margins and organic growth, particularly on the export side.

The Group's acquisition activities continued in December when the Electrify division acquired Tykoflex AB, a leading manufacturer, in particular, of solutions for splicing and terminating fiber cables in air, soil and sea. The seven acquisitions that were completed during the financial year together add annual business volume of about MSEK 1 billion with good profitability. Lagercrantz has a good financial position and the balance sheet was further strengthened during the third quarter by a strong cash flow and sale of the 1.5 million repurchased B shares, which are not required as security for our outstanding incentive programmes. The acquisition situation is still considered interesting with several attractive transactions under evaluation.

Lagercrantz is thus continuing its journey towards the declared financial goal of SEK 1 billion in profit after net financial items. We started 21 months ago at MSEK 502 and we have now reached a level of MSEK 911 on a moving 12-month basis. We have strong confidence in our decentralised organisation and should the economic slowdown impact us more in the future, we are well-prepared to implement plans that are adapted to the situation in each company. Uncertainty is increasing due to geopolitical developments, the high inflation, electricity cost and interest rate trends but the situation is difficult to judge and the operations have shown good resilience to date. We have a high degree of confidence in our ability to quickly adapt our offerings and costs, and the Group's broad exposure with niche B2B products to attractive sectors such as electrification, infrastructure and safety products provides growth opportunities even if the general economic situation were to deteriorate.

To sum up, we will therefore continue on our chosen path of building a strong technology group with leading positions in different niches, and we are well prepared if a slowdown would affect the Group's companies.

Jörgen Wigh President and CEO

THE GROUP'S PERFORMANCE

NET REVENUE AND PROFIT

Third quarter (October – December 2022)

The market situation remained favourable in the third quarter for most of the Group's businesses in the main markets in the Nordic countries and Northern Europe. Incoming orders remained strong, especially in the TecSec and International divisions, but in comparable units the growth rate fell slightly compared to previous quarters and overall was at the same level in the quarter as net revenue. The Group's broad focus with different end-customer markets and with emphasis on electrification, infrastructure development and specialised products in niches in many different geographies, is generally considered to provide good resilience.

Net revenue in the third quarter increased by 38% to MSEK 1,941 (1,405). Organic growth amounted to 10% and acquired growth amounted to 23%. Exchange rate fluctuations impacted net revenue positively by 5%.

Operating profit (EBITA) increased by 43% to MSEK 323 (226) and the EBITA margin strengthened to 16.6% (16.1). The strong organic growth increased operating profit (EBITA) by 20% where the Electrify and TecSec divisions contributed the most.

Profit after financial items increased by 31% to MSEK 251 (191). Net financial items in the quarter amounted to MSEK -34 (-7), of which MSEK -14 (-1) was attributable to currency conversion effects relating to loans in foreign currency.

Profit after taxes for the quarter increased by 34% to MSEK 199 (148).

Nine months (April – December 2022)

In the first nine months of the financial year, consolidated net revenue increased by 33% to MSEK 5,206 (3,907). Organic growth amounted to 10% and acquired growth amounted to 19%. Exchange rate fluctuations impacted net revenue positively by 4%.

Operating profit (EBITA) increased by 37% to MSEK 863 (630) and the EBITA margin strengthened to 16.6% (16.1). All divisions contributed to the improvement in EBITA, which was mainly driven by strong organic growth, which increased EBITA by 19% during the ninemonth period, and also good contributions to earnings from recently acquired companies. The share of proprietary products on a moving 12-month basis increased to 73% (69%).

Profit after net financial items increased by 32% to MSEK 697 (527). Net financial items for the nine-month period amounted to MSEK -62 (-20), of which MSEK -13 (1) consisted of currency translation differences relating to loans in foreign currency.

Profit after taxes for the nine-month period increased by 35% to MSEK 546 (403). Earnings per share after dilution for the latest 12-month period amounted to SEK 3.50, compared to SEK 2.80 for the 2021/22 financial year.

PERFORMANCE BY DIVISION

Net revenue				Operating profit (EBITA) and operating margin
	3 months	3 months	9 months	9 months	12 mon.	3 months	3 months	9 months	9 months	12 mon.
MSEK	Oct-Dec 2022/23	Oct-Dec 2021/22	Apr-Dec 2022/23	Apr-Dec 2021/22	Apr-Mar 2021/22	Oct-Dec 2022/23	Oct-Dec 2021/22	Apr-Dec 2022/23	Apr-Dec 2021/22	Apr-Mar 2021/22
Electrify	433	345	1,214	1,062	1,466	71	54	205	177	246
Operating margin						16.4%	15.8%	16.9%	16.7%	16.8%
Control	204	187	542	471	660	36	38	79	77	118
Operating margin						17.6%	20.3%	14.6%	16.3%	17.9%
TecSec	475	241	1,233	655	906	78	37	208	113	161
Operating margin						16.4%	15.4%	16.9%	17.3%	17.8%
Niche Products	494	371	1,347	1,001	1,454	94	77	267	206	289
Operating margin						19.0%	20.8%	19.8%	20.6%	19.9%
International	335	261	870	718	996	54	39	137	97	134
Operating margin						16.1%	14.9%	15.7%	13.5%	13.5%
Parent Company/ consolidation items	-	-	-	-	-	-10	-19	-33	-40	-53
GROUP TOTAL	1,941	1,405	5,206	3,907	5,482	324	226	863	630	895
Operating margin						16.6%	16.1%	16.6%	16.1%	16.3%
Amortisation, intangible assets						-38	-28	-104	-83	-114
Financial items						-34	-7	-62	-20	-40
PROFIT BEFORE TAXES						251	191	697	527	741

NET REVENUE AND PROFIT BY DIVISION THIRD QUARTER

Electrify

The Electrify division's net revenue increased by 26% to MSEK 433 (345), of which 20% was organic growth. Operating profit (EBITA) increased by 31% to MSEK 71 (54), equivalent to an operating margin of 16.4% (15.8).

Electrify delivered a strong third quarter, even though the growth rate in incoming orders was slightly lower in some units towards the end of the period. Strong invoicing generated a good operating margin and the larger units Elkapsling and Elpress performed particularly well. In addition, the cabling businesses are continuing to perform well, aside from the fact that Elfac was affected by lower volumes from the wind power industry.

Within infrastructure, Cue Dee, with installation material for expansion of 5G telecom networks, delivered a strong quarter while Swedwire was negatively impacted by high electricity prices and lower steel rope volumes.

In December, Tykoflex was acquired, adding MSEK 140 in annual volume with good profitability (prel. EBITA MSEK 24 for FY 2022). The company got off to a good

start in the Group and delivered as planned. Enkom Active also carried out the acquisition in an asset deal of Agentuuri Neumann Oy, a Finnish company offering electrical safety products.

Control

The Control division's net revenue increased by 9% to MSEK 204 (187) and operating profit (EBITA) amounted to MSEK 36 (38), which is equivalent to an operating margin of 17.6% (20.3).

The development was particularly favourable for Direktronik with hardware for data and network communications and for Precimeter with solutions for molten metal level measurement and flow control, while several other units in the division were impacted by component shortages and long delivery times. Radonova began its seasonally strong winter period for radon measurement in line with the previous year. The new acquisitions Geonor and Stegborgs delivered good profits according to plan.

TecSec

The TecSec division's net revenue increased by 97% to MSEK 474 (241), of which 9% was organic growth. Operating profit (EBITA) increased by 111% to MSEK 78 (37), equivalent to an operating margin of 16.4% (15.4).

The business situation remained positive in most of the units; CWL, R-CON, Frictape, PcP and ISG Nordic, which all displayed strong organic growth. Even the smaller units COBS and Idesco reported good improvements in earnings.

The recently acquired businesses PcP and ARAS in Denmark and Door & Joinery in the UK, delivered good profit contributions according to plan.

Niche Products

The Niche Products division's net revenue increased by 33% to MSEK 494 (371), of which 4% was organic growth. Operating profit (EBITA) increased by 22% to MSEK 94 (77), equivalent to an operating margin of 19.0% (20.8).

The business situation in most of the division's units remained positive with organic sales growth and good improvements in earnings, even though the overall growth rate was slightly lower than before.

Wapro, which manufactures solutions for flow regulation and flood protection for water and sewerage networks, performed especially well and reported a strong quarter. Truxor (Dorotea) with multifunctional amphibious machines, Profsafe with storage cabinets and PST with shaftless spiral conveyors delivered good profit increases.

The new acquisition Waterproof, which manufactures advanced dry- and wetsuits to professional divers, had a very good start in Lagercrantz.

International

The International division's net revenue increased by 28% to MSEK 335 (261), of which 15% was organic growth. Operating profit (EBITA) increased by 38% to MSEK 54 (39), equivalent to an operating margin of 16.1% (14.9).

International is noting continued strong demand and is delivering fine margin improvements on a broad front. The business situation remained favourable for the marine units Libra in Norway and ISIC Group in Denmark. In addition, Schmitztechnik in Germany, the ACTE companies in Denmark, Norway, Sweden and Etech in the UK all contributed good improvements in earnings.

The new acquisition Tebul, a leading manufacturer of watertight electric sliding doors for ships, has got off to a good start in the Group.

PROFITABILITY AND FINANCIAL POSITION

Return on equity for the latest 12-month period amounted to 30% (29) and the return on capital employed was 21% (20).

The Group's metric for return on working capital (P/WC) amounted to 73% (81).

The equity ratio at the end of the period was 35% (36%). Earnings per share amounted to SEK 13.53 (9.83).

The Group's operating net debt at the end of the period amounted to MSEK 2,194, compared to MSEK 1,621 at the start of the financial year. The operating net debt equity ratio was 0.8 (0.7 at the start of the financial year).

The Group's net debt including pension liability of MSEK 63 (78) and the IFRS 16 effect of MSEK 378 (308) amounted to MSEK 2,634 at the end of the period, compared to MSEK 2,014 at the start of the financial year.

CASH FLOW AND CAPITAL EXPENDITURES

Cash flow from operating activities amounted to MSEK 439 (172) for the third quarter, where the change was mainly related to lower working capital and increased profit.

Acquisitions and disposals including settlement of contingent consideration relating to acquisitions carried out in previous years, amounted to MSEK 80 (35) for the third quarter and to MSEK 802 (404) for the nine-month period.

Net investments in non-current assets amounted to MSEK 43 (35) for the third quarter and to MSEK 118 (87) for the nine-month period.

OTHER FINANCIAL INFORMATION

Parent Company and other consolidation items

The Parent Company's net revenue during the ninemonth period amounted to MSEK 46 (34) and profit after financial items amounted to MSEK 251 (220). The Parent Company's equity ratio was 42% (46).

Employees

At the end of the period, the number of employees in the Group was 2,418, compared to 1,953 at the beginning of the financial year. During the nine-month period, 430 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 2022:

Total number of shares after repurchases	205,930,264
Repurchased B shares	-3,287,969
B shares	199,426,827
A shares	9,791,406
Classes of shares	Number

The 2022 Annual General Meeting authorised the Board to acquire and sell the Group's own shares and to decide on a new issue of up to 10% of the number of B shares. During the third quarter, 1.5 million repurchased B shares (which are not required as security for outstanding option programmes) were sold for a total of MSEK 157, and 658,452 B shares were issued for a total of MSEK 70 in connection with the acquisition of Tykoflex.

At 31 December 2022, Lagercrantz Group held 3,287,969 own Class B shares, equivalent to 1.6% of the total number of shares and 1.1% of the votes. Lagercrantz's own holdings of repurchased B shares cover the needs in the outstanding call option programmes.

During the third quarter, 800,000 call options with a redemption price of SEK 127.70 were issued in accordance with the resolution of the 2022 AGM. These options were acquired by about 80 senior executives for a total of MSEK 9.

During the first nine months, repurchases of call options amounted to MSEK 17 (70) and redemption of call options amounted to MSEK 7 (9).

At the end of the period, Lagercrantz had three outstanding call option programmes for a total of 2,719,000 shares:

Option programme	Number of outstanding options*	Redemption price
2022/26	800,000	127.70
2021/25	719,000	145.50
2020/24	1,200,000	78.50
Total	2,719,000

* An option carries the right to purchase one share.

Issued call options on repurchased shares had a dilutive effect of approximately 0.1% of the total number of shares in the company.

ACQUISITIONS DURING THE FIRST NINE MONTHS OF THE YEAR 2022/23

In June 2022, 95% of the shares in PcP Corporation A/S in Denmark were acquired for the TecSec division. PcP is a leading Northern European producer of safety solutions based on gratings, screening and staircases. PcP had annual net revenue of MDKK 423 and EBITA of MDKK 57 on a moving 12-month basis as of May 2022.

In July, Stegborgs EL-evator AB in Sweden was acquired for the Control division. Stegborgs offers products and solutions for renovation and rebuilding of elevators. The company generates annual revenue of about MSEK 60.

In July, Door and Joinery Solutions Ltd was acquired in the UK for the TecSec division. Door & Joinery manufactures high-quality doors, frames and windows for customers that require enhanced fire protection. The company has 26 employees and generates annual revenue of about MGBP 4.5.

In September, 93% of the shares in Water Proof Diving International AB in Sweden were acquired for the Niche Products division. Waterproof manufactures advanced dry- and wetsuits to professional divers. The company has 22 employees and generates annual revenue of about MSEK 90.

In September, 80% of the shares in Tebul Oy in Finland were acquired for the International division. Tebul is a leading manufacturer of sliding doors for ships, where the doors are part of the watertight bulkheads in the hull of the ships. The company has 21 employees and generates annual revenue of about MEUR 5.

In December, 100% of the shares in Tykoflex AB were acquired. Tykoflex is a leading manufacturer of high-quality solutions for splicing and terminating fiber cables in air, soil and sea, as well as connecting elements for piping systems where high demands are placed on durability and tightness. The company has 63 employees and generates annual revenue of about MSEK 140 and delivered prel. EBITA MSEK 24 for the FY 2022. The acquisition was partly financed by 658,452 newly issued B-shares in Lagercrantz, subscribed for by the seller Andor Intressenter AB. The subscription price amounted to SEK 106.31, which was the volumeweighted average price per B-share in Lagercrantz on Nasdaq Stockholm during the last eight trading days up to and including the third day before closing.

In December, Enkom Active acquired the assets of Agentuuri Neumann Oy, a Finnish company offering electrical safety products with annual revenue of about MEUR 1.

Lagercrantz normally uses an acquisition structure with a fixed purchase price and contingent consideration as well as call options on any minority shares. The outcome of contingent considerations depends on the future results achieved in the companies. Not yet paid contingent consideration related to acquisitions during the financial year amounted to MSEK 143 at the end of the period. The contingent considerations fall due for

payment within three years and the maximum outcome can be MSEK 251.

Reassessment of contingent considerations had a net effect in the nine-month period of MSEK 3 (30), which was recognised in the first quarter. The effect on earnings is recognised in other operating income and other operating expenses. During the quarter, MSEK 0 (0) was paid in contingent consideration for previous acquisitions.

During the past twelve months, the following acquisitions were completed;

		Equity
Acquisitions after December 2021	Takeover	interest, %	Net revenue, MSEK	Number of employees	Division
Westmatic Group, Sweden	January 2022	82	175	62	Niche Products
ARAS Security Group, Denmark	January 2022	100	68	13	TecSec
PcP Corporation A/S, Denmark	June 2022	95	595	284	TecSec
Stegborgs EL-evator AB, Sweden	July 2022	100	60	14	Control
Door and Joinery Solutions Ltd., UK	July 2022	100	56	26	TecSec
Water Proof Diving International AB, Sweden	September 2022	93	90	22	Niche Products
Tebul Oy, Finland	September 2022	80	54	21	International
Tykoflex AB	December 2022	100	140	63	Electrify

Preliminary purchase price allocation

The preliminary purchase price allocation for the latest 12-month period includes ARAS Security Group, Westmatic Group, PcP Corporation A/S, Stegborgs El-evator AB, Door and Joinery Solutions Ltd, Water Proof Diving International AB, Tebul Oy and Tykoflex AB.

	Book value in	Fair value	Fair value
Acquired net assets at time of acquisition (MSEK)	companies	adjustment	consolidated
Intangible non-current assets	5	677	682
Other non-current assets	149		149
Inventories	200		200
Other current assets	435		435
Interest-bearing liabilities	-37		-37
Other liabilities	-294	-141	-435
Net of identified assets/liabilities	458	536	994
Goodwill			524
Estimated Purchase price			1,518
Less: cash and cash equivalents in acquired businesses			-199
Less: consideration not yet paid			-199
Less payment via newly issued B-shares			-70
Effect on the Group's cash and cash equivalents			1,051

OTHER INFORMATION

Accounting principles

The Interim Report for the Group has been prepared in accordance with IFRS standards as adopted by the EU with application of IAS 34, Interim Financial Reporting. 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 calculation methods as in the most recent annual report have been applied in the interim report. There are no new IFRS standards or IFRIC interpretations approved by the EU, which are applicable for Lagercrantz, or that have a significant effect on the Group's results and financial position 2022/2023.

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 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. For definitions and reconciliation tables for the key ratios that Lagercrantz uses, see page 15.

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

Lagercrantz's results and financial position are affected by a number of internal factors, which Lagercrantz controls and a number of external factors where the possibility to influence the course of events is limited. The risk factors of greatest importance for the Group are the state of the economy combined with structural changes in the market, customer and supplier dependence, the competitive situation, pandemics, cybersecurity risks as well as geopolitical uncertainty close to the main markets.

It has been possible to conduct Lagercrantz's operations without larger disruptions during the pandemic and the Group has no exposure to the countries involved in the conflict in Ukraine.

For your information, the Group's electricity consumption for the units now owned totalled approximately 37 GWh during the 2021/22 financial year at a cost of about MSEK 27.

For more information, please see the section "Risks and uncertainty factors" on pages 40-42 in the 2021/22 Annual Report.

The Parent Company is impacted by the abovementioned risks and uncertainty factors through its capacity as owner of subsidiaries.

Post-balance sheet events

No significant events for the company have occurred after the end of the period.

Annual General Meeting 2022

The 2022 AGM was held on 30 August 2022 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 30 August 2022, the Chairman of the Board was entrusted with the task of contacting the five largest shareholders in terms of votes as of 31 December 2022, 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 2023: Fredrik Börjesson (Chairman of the Board), Anders Börjesson (Tisenhultgruppen), Leif Almhorn (SEB Fonder), Marianne Nilsson (Swedbank Robur Fonder) and Johan Lannebo (Lannebo Fonder).

Proposals to the Election Committee from shareholders may be sent by e-mail to [email protected]. More information is available on www.lagercrantz.com.

Stockholm, 1 February 2023.

Jörgen Wigh, President and CEO

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

Quarterly data by division

Net revenue	2022/23			2021/22				2020/21
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Electrify	433	385	396	404	345	340	377	320	304
Control	204	163	175	189	187	132	152	156	162
TecSec	475	428	330	251	241	197	217	136	159
Niche Products	494	421	432	453	371	299	331	313	271
International	335	271	264	278	261	233	224	193	182
Parent Company/consolidation items	-	-	-	-	-	-	-	-	-
GROUP TOTAL	1,941	1,668	1,597	1,575	1,405	1,201	1,301	1,118	1,078

Operating profit (EBITA)	2021/22 2022/23						2020/21
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Electrify	71	69	65	69	54	56	67	57	49
Control	36	17	26	41	38	17	22	30	29
TecSec	78	74	56	48	37	34	42	22	28
Niche Products	94	84	89	83	77	62	67	61	53
International	54	45	38	37	39	31	27	30	21
Parent Company/consolidation items	-10	-14	-9	-13	-19	-8	-13	-8	-12
GROUP TOTAL	323	275	265	265	226	192	212	192	168

Operating margin (EBITA)		2022/23		2021/22				2020/21
%	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Electrify	16.4	17.9	16.4	17.1	15.8	16.5	17.8	17.8	16.1
Control	17.6	10.4	14.9	21.7	20.3	12.9	14.5	19.2	17.9
TecSec	16.4	17.3	17.0	19.1	15.4	17.3	19.4	16.2	17.6
Niche Products	19.0	20.0	20.6	18.3	20.8	20.7	20.2	19.5	19.6
International	16.1	16.5	14.4	13.3	14.9	13.3	12.1	15.5	11.5
GROUP TOTAL	16.6	16.5	16.6	16.8	16.1	16.0	16.3	17.2	15.6

Consolidated Income Statement - condensed

MSEK	3 months Oct-Dec 2022/23	3 months Oct-Dec 2021/22	9 months Apr-Dec 2022/23	9 months Apr-Dec 2021/22	Moving 12 months, Jan-Dec 2022/23	Financial year 2021/22
Net revenue	1,941	1,405	5,206	3,907	6,781	5,482
Cost of goods sold	-1,216	-866	-3,252	-2,412	-4,229	-3,389
GROSS PROFIT	725	539	1,954	1,495	2,552	2,093
Selling expenses	-284	-224	-791	-636	-1,031	-876
Administrative expenses	-151	-123	-409	-325	-538	-454
Other operating income and operating expenses	-5	6	5	13	10	18
PROFIT BEFORE NET FINANCIAL ITEMS*	285	198	759	547	993	781
Net financial items	-34	-7	-62	-20	-82	-40
PROFIT AFTER FINANCIAL ITEMS	251	191	697	527	911	741
Taxes	-52	-43	-151	-124	-196	-169
NET PROFIT FOR THE PERIOD	199	148	546	403	715	572
* Of which: - amortisation of intangible non-current assets arising in connection with acquisitions: - depreciation of other non-current assets:	(-38) (-64)	(-28) (-47)	(-104) (-179)	(-83) (-142)	(-135) (-236)	(-114) (-199)
Operating profit (EBITA)	323	226	863	630	1,128	895
Earnings per share, SEK	0.97	0.73	2.68	1.98	3.51	2.81
Earnings per share after dilution, SEK	0.97	0.72	2.67	1.97	3.50	2.80
Weighted number of shares after repurchases, ('000)	204,438	203,579	203,951	203,517	203,874	203,547
Weighted number of shares after repurchases adjusted after dilution ('000)	204,660	204,250	204,187	204,084	204,121	204,102
Number of shares at end of period after repurchases ('000)	205,930	203,637	205,930	203,637	205,930	203,637

In view of the redemption price on outstanding call options during the period (SEK 78.50, SEK 145.50 and SEK 127.70) and the average share price (SEK 98.86) during the latest 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.1% For the latest quarter, there was a dilutive effect of 0.11% (average share price SEK 96.25).

Consolidated Statement of Comprehensive Income - condensed

MSEK	3 months Oct-Dec 2022/23	3 months Oct-Dec 2021/22	9 months Apr-Dec 2022/23	9 months Apr-Dec 2021/22	Moving 12 months, Jan Dec 2022/23	Financial year 2021/22
Net profit for the period	199	148	546	403	715	572
Other comprehensive income
Items that have been reposted or that may be reposted to net profit for the period
Change in translation reserve	29	17	47	12	75	40
Debt instruments measured at fair value	10	0	24	-3	39	12
Items that cannot be reposted to net profit for the period
Actuarial effects on pensions	-	-	-	-	19	19
Taxes attributable to actuarial effects	-	-	-	-	-4	-4
COMPREHENSIVE INCOME FOR THE PERIOD	238	165	617	412	844	639

Consolidated Balance Sheet - condensed

MSEK	31 Dec 2022	31 Dec 2021	31 Dec 2022
ASSETS
Goodwill	2,433	1,840	2,006
Other intangible non-current assets	1,545	952	1,085
Property, plant and equipment	975	708	741
Financial assets	21	25	19
Inventories	1,190	885	949
Trade receivables and contract assets	1,161	810	972
Other current receivables	318	189	225
Cash and bank balances	374	159	210
TOTAL ASSETS	8,017	5,568	6,207
EQUITY AND LIABILITIES
Equity	2,786	2,002	2,228
Non-current liabilities*	2,983	1,940	2,199
Trade payables and contract liabilities	482	475	569
Other current liabilities*	1,766	1151	1,211
TOTAL EQUITY AND LIABILITIES	8,017	5,568	6,207
Interest-bearing assets	374	159	210
Interest-bearing liabilities, excluding pension liabilities*	2,946	1,942	2,161

* Including IFRS 16 effect in the form of future lease and rental obligations.

Changes in Consolidated Equity - Condensed

MSEK	9 months Apr-Dec 2022/23	9 months Apr-Dec 2021/22	Moving 12 months, Jan-Dec 2022/23	Financial year 2021/22
Opening balance	2,228	1,855	2002	1,855
Comprehensive income for the period	617	412	844	639
Dividend to minority owners in subsidiaries	-20	-10	-20	-10
Other	1	1
Transactions with owners
New issue	70		70
Dividend	-265	-204	-265	-204
Redemption and acquisition of options on repurchased shares, net	155	-52	155	-52
Closing balance	2,786	2,002	2,786	2,228

Consolidated Statement of Cash Flows - condensed

MSEK	3 months Oct-Dec 2022/23	3 months Oct-Dec 2021/22	9 months Oct-Dec 2022/23	9 months Oct-Dec 2021/22	Moving 12 months, Jan Dec 2022/23	Financial year 2021/22
Operating activities
Profit after financial items	251	191	697	527	911	741
Adjustment for items not included in the cash flow	124	75	308	200	442	334
Income tax paid	-99	-84	-186	-99	-275	-188
Cash flow from operating activities before changes in working capital	276	182	819	628	1,078	887
Cash flow from changes in working capital
Increase (-)/Decrease (+) in inventories	45	-61	-32	-147	-62	-177
Increase (-)/Decrease (+) in operating receivables	45	5	-9	-79	-116	-186
Increase (+)/Decrease (-) in operating liabilities	73	46	-126	24	-80	70
Cash flow from operating activities	439	172	652	426	820	594
Investing activities
Investments in businesses	-80	-35	-802	-404	-1,051	-653
Net investments in other non-current assets	-43	-35	-118	-87	-143	-112
Cash flow from investing activities	-123	-70	-920	-491	-1,194	-765
Financing activities
Dividend, sale/repurchase of own shares/options	151	-27	-130	-266	-130	-266
Other financing activities	-426	-106	552	338	704	490
Cash flow from financing activities	-275	-133	422	72	574	224
CASH FLOW FOR THE PERIOD	41	-31	154	7	200	53
Cash and cash equivalents at the beginning of the period	330	189	210	151	159	151
Exchange difference in cash and cash equivalents	3	1	10	1	15	6
Cash and cash equivalents at the end of the period	374	159	374	159	374	210

Fair value of 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 2022	31 Dec 2022
Assets measured at fair value	-	-
Assets measured at amortised cost	1,455	1,097
TOTAL ASSETS, FINANCIAL INSTRUMENTS	1,455	1,097
Liabilities measured at fair value	384	269
Liabilities measured at amortised cost	3,049	2,328
TOTAL LIABILITIES, FINANCIAL INSTRUMENTS	3,473	2,597


Change in contingent considerations	9 months Apr - Dec 2022/23	Financial year 2021/22
Opening balance Settled liabilities during the year Remeasurement of liabilities during the year Year's liabilities from acquisitions during the year Exchange difference	269 0 3 144 8	175 -29 -25 146 2

Parent Company Income Statement - condensed

MSEK	3 months Oct-Dec 2022/23	3 months Oct-Dec 2021/22	9 months Apr-Dec 2022/23	9 months Apr-Dec 2021/22	Moving 12 months, Jan-Dec 2022/23	Financial year 2021/22
Net revenue	16	12	46	34	57	45
Administrative expenses	-26	-33	-74	-75	-103	-104
Other operating income and operating expenses	-	-	-	-	1	1
OPERATING PROFIT	-10	-21	-28	-41	-45	-58
Financial income	81	9	350	276	708	634
Financial expenses	-74	-6	-71	-15	-93	-37
PROFIT AFTER FINANCIAL ITEMS	-3	-18	251	220	570	539
Change in untaxed reserves	-	-	-4	-	-69	-65
Taxes	4	5	7	10	-42	-39
NET PROFIT FOR THE PERIOD	1	-13	254	230	459	435

Parent Company Balance Sheet - condensed

MSEK	31 Dec 2022	31 Dec 2021	31 Dec 2022
ASSETS
Property, plant and equipment	2	-	-
Financial assets	4,589	3,272	3,509
Current receivables	1,039	861	1,276
Cash and bank balances	0	-	-
TOTAL ASSETS	5,630	4,133	4,785
EQUITY AND LIABILITIES
Equity	2,338	1,918	2,123
Untaxed reserves	114	49	114
Non-current liabilities	2,235	1,407	1,608
Current liabilities	943	759	940
TOTAL EQUITY AND LIABILITIES	5,630	4,133	4,785

Key ratios

In the table below, key ratios are partly presented that are not defined according to IFRS. For definition of these, see	Moving
Definitions.	12 months	Financial year
	Jan-Dec 2022/23	2021/22	2020/21	2019/20	2018/19
Revenue	6,781	5,482	4,091	4,180	3,932
Change in revenue, %	34.9	34.0	-2.1	6.3	15.3
Operating profit (EBITA)	1,128	895	616	565	519
Operating margin (EBITA), %	16.6	16.3	15.1	13.5	13.2
EBIT	993	781	529	483	451
EBIT margin, %	14.6	14.2	12.9	11.6	11.5
Profit after financial items	911	741	502	460	431
Profit margin, %	13.4	13.5	12.3	11.0	10.7
Profit after taxes	715	572	388	366	342
Equity ratio,% *	35	36	40	39	39
Return on working capital (P/WC), %	73	79	67	64	63
Return on capital employed, %	21	20	17	17	18
Return on equity, %	30	28	22	23	24
Net debt (+)/receivables (-), MSEK **	2,634	2,014	1,314	1,312	1,004
Net debt/equity ratio, times**	0.9	0.9	0.7	0.8	0.7
Operating net debt (+)/receivables (-), MSEK	2,194	1,621	992	1,056	928
Operating net debt/equity ratio, times	0.8	0.7	0.5	0.6	0.6
Interest coverage ratio, times	9	15	12	13	15
Number of employees at end of period	2,418	1,953	1,654	1,532	1,450
Revenue outside Sweden, MSEK	4,510	3,559	2,650	2,706	2,491

* The equity ratio includes the IFRS 16 effect from the 2019/20 financial year.

** The effect of IFRS 16 is included from the 2019/20 financial year.

Key ratios per share

In the table below, key ratios are partly presented that are not defined according to IFRS. For definition of these, see below.	Moving 12 months		Financial year
	Jan-Dec 2022/23	2021/22	2020/21	2019/20	2018/19
Number of shares at end of period after repurchases ('000)	205,930	203,637	203,421	203,178	203,061
Weighted number of shares after repurchases, ('000)	203,874	203,547	203,307	203,151	203,046
Weighted number of shares after repurchases & dilution ('000)	204,121	204,102	203,673	203,616	203,046
Earnings per share before dilution, SEK	3.51	2.81	1.91	1.80	1.68
Earnings per share after dilution, SEK	3.50	2.80	1.91	1.80	1.68
Cash flow from operating activities per share after dilution, SEK*	4.02	2.91	3.84	2.49	2.28
Equity per share, SEK	13.53	10.94	9.12	8.29	7.43
Latest price paid per share, SEK	103.3	106.80	79.10	38.60	33.33

*Includes the effect of IFRS 16 from the 2019/20 financial year.

Key ratio definitions

Return on equity¹

Net profit for the year after tax as a percentage of average equity (opening plus closing balance for the latest 12-month period, divided by two).

Return on working capital (P/WC) ¹

Operating profit (EBITA) as a percentage of average working capital, (opening balance plus closing balance for the latest 12-month 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 employed¹

Profit after financial items, plus financial expenses as a percentage of average capital employed (opening balance plus closing balance for the latest 12-month period, divided by two).

EBIT margin

Profit before net financial items as a percentage of net revenue.

Equity per share¹

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

Cash flow per share after dilution¹

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

Cash flow from operating activities per share¹

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

Net debt/receivables¹

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 ratio¹

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/receivables¹

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 ratio¹

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 revenue¹

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 ratio¹

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

Operating profit (EBITA)¹

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

Operating margin¹

Operating profit (EBITA) as a percentage of net revenue.

Debt equity ratio¹

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

Equity ratio¹

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 employed¹

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

Profit margin¹

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

¹ The key ratio is an alternative performance measure according to ESMA's guidelines.

Reconciliation tables for alternative performance measures

EBITA	12 months through
Group, MSEK	31 Dec 2022	31 Mar 2022	31 Dec 2021	31 Mar 2021	31 Mar 2020
Profit before net financial items according to the quarterly report	993	781	716	529	483
Amortisation, intangible non-current assets relating to acquisitions (+)	135	114	106	87	82
EBITA	1,127	895	822	616	565

Working capital and return on working capital (P/WC)

Group, MSEK	31 Dec 2022	31 Mar 2022	31 Dec 2021	31 Mar 2021	31 Mar 2020
EBITA (moving 12 months)	1,127	895	822	616	565
Inventories, annual average (+)	1,037	802	725	608	545
Trade receivables, annual average (+)	985	822	693	694	702
Trade payables, annual average* (-)	479	486	403	384	370
Working capital (annual average)	1,544	1,138	1,015	918	877
Return on working capital (P/WC) (%)	73%	79%	81%	67%	64%

Acquired and organic net revenue growth

Group, MSEK, %	3 months Oct-Dec 2022/23		3 months Jul-Sep 2022/23	3 months Apr-Jun 2022/23
Acquired net revenue growth	331	23%	282	24%	148	12%
Organic net revenue growth	135	10%	135	11%	118	9%
Exchange rate effects	70	5%	50	4%	30	2%
Total net revenue growth	537	38%	467	39%	296	23%

Revenue distribution

	Electrify		Control		TecSec		Niche Products		International		Group total
Net revenue by product type	3 mon. Oct Dec 2022/23	Financial year 2021/22	3 mon. Oct Dec 2022/23	Financial year 2021/22	3 mon. Oct Dec 2022/23	Financial year 2021/22	3 mon. Oct Dec 2022/23	Financial year 2021/22	3 mon. Oct Dec 2022/23	Financial year 2021/22	3 mon. Oct Dec 2022/23	Financial year 2021/22
Total net revenue	433	1,466	204	660	475	906	494	1,454	335	996	1,941	5,482
Of which, share
Proprietary products	73%	68%	47%	38%	77%	71%	98%	97%	56%	54%	75%	70%
Trading	5%	5%	48%	56%	4%	3%	2%	3%	43%	41%	15%	17%
Niche production	21%	25%	4%	5%	-	-	-	-	0%	3%	5%	8%
System integration	-	-	-	-	12%	16%	-	-	-	-	3%	3%
Other net revenue	1%	1%	1%	1%	6%	10%	-	-	1%	2%	2%	2%
	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%

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 07.40 CET on 1 February 2023.

Reporting dates:

16 May 2023 Year-end Report 1 April 2022 – 31 March 2023 19 July 2023 Interim Report 1 April – 30 June 2023 29 August 2023 Annual General Meeting for the 2022/23 financial year

For further information please contact: Jörgen Wigh, President and CEO, phone +46 8 700 66 70 Peter Thysell, CFO, phone +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