===== SIDA 1 ===== INTERIM REPORT Q1 2023/24 FIRST QUARTER (1 APRIL – 30 JUNE 2023) • Net revenue increased by 28% to MSEK 2,045 (1,597), where the organic growth amounted to 6%. • Operating profit (EBITA) increased by 35% to MSEK 357 (265), equivalent to an EBITA margin of 17.5% (16.6). • Profit after financial items (EBT) increased by 19% to MSEK 277 (232). • Cash flow from operating activities amounted to MSEK 286 (2). • Profit after taxes increased by 17% to MSEK 209 (179). Earnings per share after dilution for the latest 12-month period amounted to SEK 3.83 (3.70 for the financial year 2022/23). • Return on equity for the latest 12-month period amounted to 28% (28) and the equity ratio at the end of the period was 38% (34). • During the first quarter, three acquisitions were carried out with total annual revenue of approximately MSEK 280. • The Annual General Meeting will be held on 29 August 2023 at 4.00 p.m. at IVA’s Conference Centre in Stockholm. The Board of Directors proposes a dividend of SEK 1.60 (1.30) per share. GROUP OVERVIEW 3 months Moving 12 months Amounts in MSEK 30 Jun 2023 30 Jun 2022 Δ 30 Jun 2023 31 Mar 2023 Net revenue 2,045 1,597 28% 7,694 7,246 EBITA 357 265 35% 1,297 1,205 EBITA margin, % 17.5 16.6 16.9 16.6 Profit after financial items 277 232 19% 1,012 968 Net profit for the period 209 179 17% 787 758 Earnings per share after dilution, SEK 1.01 0.88 15% 3.83 3.70 Return on equity, % - - 28 29 Equity ratio, % 38 34 38 37 35% EBITA growth Q1 6% Organic growth Q1 ===== SIDA 2 ===== CEO COMMENT “A strong start to the year and we reached our billion target” Lagercrantz’s first quarter (April – June) 2023 represented a strong start to the 2023/24 financial year. The market situation remained at a good level for most of the businesses. With good contributions from the acquisitions and strengthened margins, we delivered the highest quarterly result ever with operating profit (EBITA) increasing by 35% to MSEK 357 (265) and the EBITA margin increasing to a record high of 17.5% (16.6). The success means that we now reach our target of SEK 1 billion in profit after net financial items on a rolling 12-month basis. The target was launched in April 2021, to double the result to one billion within 5 years, something that has now been fulfilled at the level of SEK 1,012 million, almost 3 years earlier than planned. The fact that we reach our billion target ahead of schedule really shows the strength of our business concept, our vision, our corporate culture and our organisation. As a serial acquirer without an exit horizon, we are growing by acquiring profitable and well-run technology companies in sustainable and expansive niches, which we nurture with clear ambitions in terms of growth and improvements. We also see that Lagercrantz’s approach to developing owner- led product companies in particular, is attracting more and more entrepreneurs as they have faith in our ownership concept of clear decentralisation and management by objectives, among other things. Acquisition activity has been high and in the first quarter we have welcomed three new niche-focused businesses to the Group with total annual revenue of approximately MSEK 280. In the International division, we have acquired Denmark-based Glova Rail, which manufactures vacuum toilets for railway vehicles and the UK company Supply Plus, which manufactures ladders and hose reels for the fire and rescue services. In the TecSec division, UK-based Fireco was acquired which manufactures components for fire doors, primarily fire door retainers. Cash flow from operating activities was strong and amounted to MSEK 286 during the quarter. Thus, Lagercrantz continues to have a strong financial position with the financial scope for further value-creating acquisitions. The acquisition situation is considered interesting and we have several attractive transactions under evaluation. I am optimistic about the future despite the current global and economic situation. Market conditions have remained stable for most of the Group’s businesses and the feared downturn has still not materialised. The situation is hard to judge, however, and there is considerable uncertainty surrounding inflation, currencies, interest rates, and the economic development going forward, but we have strong confidence in the ability of our decentralised organisation to rapidly adapt its offerings and costs. The Group’s broad exposure with niche B2B technology companies in attractive sectors such as electrification, infrastructure and safety products provides stability and good growth opportunities. Should an economic slowdown have a greater impact on us in the future, we are well-prepared to implement action plans that are adapted to the situation in each company. To sum up, we will therefore continue on our chosen path of building a strong technology group with leading positions in sustainable and expansive niches. 19 July 2023 Jörgen Wigh President and CEO ===== SIDA 3 ===== GROUP PERFORMANCE NET REVENUE AND PROFIT First quarter (April – June 2023) The market situation remained stable at a good level for most of the Group’s businesses during the first quarter of the financial year. Demand was strongest in the Electrify, Niche Products and International divisions. In comparable units, incoming orders were in line with the previous year and were also in line with the invoicing during the quarter. The Group's broad focus with many different end- customer markets and geographies with an emphasis on electrification and infrastructure, safety products and specialised products in niches constitutes a strong base and provides good growth opportunities. Net revenue in the first quarter increased by 28% to MSEK 2,045 (1,597). Organic growth amounted to 6% and acquired growth contributed 19%. Exchange rate fluctuations impacted net revenue positively by 4%. Profitability improved and the operating profit (EBITA) increased by 35% to MSEK 357 (265). The increase in EBITA in comparable units amounted to 11% in local currency, where the Electrify, TecSec and International divisions contributed most. Acquisitions made a contribution of 19% and exchange rate fluctuations had a positive impact of 5%. The EBITA margin increased to 17.5% (16.6), which is the highest level ever, and was primarily explained by strong organic revenue growth and improved gross margins as well as good profitability in recently acquired companies. Profit after financial items increased by 19% to MSEK 277 (232). Net financial items amounted to MSEK -39 (-2), of which net interest items amounted to MSEK -28 (-12) and currency translation effects, primarily on loans in foreign currency, amounted to MSEK -9 (10). Profit after taxes increased by 17% to MSEK 209 (179). Earnings per share after dilution for the latest 12-month period amounted to SEK 3.83, compared to SEK 3.70 for the 2022/23 financial year. 0 100 200 300 400 500 600 700 800 900 1000 1100 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 11 000 Profit after financial items, MSEK Net revenue, MSEK Net revenue and profit after financial items, moving 12 months Net revenue Profit after financial items ===== SIDA 4 ===== PERFORMANCE BY DIVISION Net revenue Operating profit (EBITA) and operating margin MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 12 months Apr-Mar 2022/23 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 12 months Apr-Mar 2022/23 Electrify 480 396 1,677 87 65 283 Operating margin 18.1% 16.4% 16.9% Control 184 175 746 21 26 119 Operating margin 11.4% 14.9% 16.0% TecSec 528 330 1,748 95 56 303 Operating margin 18.0% 17.0% 17.3% Niche Products 485 432 1,871 104 89 375 Operating margin 21.4% 20.6% 20.0% International 368 264 1,204 57 38 185 Operating margin 15.5% 14.4% 15.4% Parent Company/consolidation items - - - -7 -9 -60 GROUP TOTAL 2,045 1,597 7,246 357 265 1,205 Operating margin 17.5% 16.6% 16.6% Amortisation, intangible assets -41 -31 -143 Financial items -39 -2 -94 PROFIT BEFORE TAXES 277 232 968 NET REVENUE AND PROFIT BY DIVISION FIRST QUARTER Electrify The Electrify division’s net revenue increased by 21% to MSEK 480 (396), of which 8% was organic growth. Operating profit (EBITA) increased by 34% to MSEK 87 (65), equivalent to an operating margin of 18.1% (16.4). Electrify delivered a strong first quarter. The division’s largest unit Elpress and several Finnish units delivered another good quarter, while Elfac in Denmark continued to be impacted by lower volumes to the wind power industry. In infrastructure, Cue Dee delivered a strong profit with project deliveries to an international network operator. The new acquisition from last winter, Tykoflex, reported strong demand and contributed with a good profit. Control The Control division’s net revenue increased by 5% to MSEK 184 (175), of which -5% was organic growth. Operating profit (EBITA) amounted to MSEK 21 (26), equivalent to an operating margin of 11.4% (14.9). The market situation was challenging for different reasons with lower sales, seasonal variations and component shortages in several businesses within Control. Meanwhile, several businesses reported a positive development, e.g. Direktronik and Leteng as well as Load Indicator and GasiQ. The new acquisition Stegborgs also delivered according to plan. TecSec The TecSec division’s net revenue increased by 60% to MSEK 528 (330), of which 6% was organic growth. Operating profit (EBITA) increased by 70% to MSEK 95 (56), equivalent to an operating margin of 18.0% (17.0). The business situation remained favourable in most businesses. R-CON, ISG Nordic and Frictape all performed particularly well. The recently acquired businesses PcP in Denmark and Door & Joinery and Fireco in the UK also delivered good profit contributions according to plan. ===== SIDA 5 ===== Niche Products The Niche Products division’s net revenue increased by 12% to MSEK 485 (432), of which 3% was organic growth. Operating profit (EBITA) increased by 17% to MSEK 104 (89), equivalent to an operating margin of 21.4% (20.6). The business situation remained stable in most of the division’s units with good improvements in earnings in many businesses. Asept, Tormek, the brush businesses SIB and Sajas as well as Thermod all performed very well. The new acquisition Waterproof has also got off to a good start in Lagercrantz and delivered an excellent result. International The International division’s net revenue increased by 39% to MSEK 368 (264), of which 12% was organic growth. Operating profit (EBITA) increased by 50% to MSEK 57 (38), equivalent to an operating margin of 15.5% (14.4). International reported another quarter with strong demand and is delivering margin improvements on a broad basis. The business situation was particularly favourable for the marine businesses Libra in Norway and ISIC Group in Denmark. The ACTE companies in Denmark, Norway, Sweden, G9 in Denmark and E-tech in the UK all contributed good improvements in earnings. The recent acquisitions Tebul in Finland and Supply Plus in the UK contributed good profits according to plan. PROFITABILITY AND FINANCIAL POSITION Return on equity for the latest 12-month period amounted to 28% (28) and the return on capital employed was 21% (19). The Group’s metric for return on working capital (P/WC) amounted to 72% (68). The equity ratio at the end of the period was 38% (34). Equity per share amounted to SEK 15.91 (11.80). The Group’s operating net debt at the end of the period amounted to MSEK 1,972 (2,170). The operating net debt equity ratio was 0.6 (0.9) and operating net debt / EBITDA was 1.3 (1.9). The Group’s net indebtedness including pension liability of MSEK 55 (63) and the IFRS 16 effect of MSEK 384 (338), amounted to MSEK 2,411 (2,571) at the end of the period. CASH FLOW AND CAPITAL EXPENDITURES Cash flow from operating activities increased to MSEK 286 (2), where the change was mainly explained by an increased profit and lower build-up of working capital. Acquisitions and disposals, including settlement of contingent consideration relating to acquisitions carried out in previous years, amounted to MSEK 237 (446). Net investments in non-current assets amounted to MSEK 34 (25). OTHER FINANCIAL INFORMATION Parent Company and other consolidation items The Parent Company’s net revenue during the quarter amounted to MSEK 17 (14) and profit after financial items amounted to MSEK 416 (243). The Parent Company’s equity ratio was 49% (46). Employees At the end of the period, the number of employees in the Group was 2,562 (2,411 at the end of the 2022/23 financial year), where 149 employees were added through acquisitions during the first quarter. ===== SIDA 6 ===== 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 June 2023: Classes of shares Number A shares 9,791,406 B shares 199,426,827 Repurchased B shares -3,287,969 Total number of shares after repurchases 205,930,264 At 30 June 2023, 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 in the Lagercrantz Group. Lagercrantz’s own holdings of repurchased B shares cover the company’s obligations in outstanding call option programmes. No shares were repurchased during the first quarter of the financial year. At the end of the period, Lagercrantz had three outstanding call option programmes for a total of 2,714,000 shares: Option programme Number of outstanding options* Redemption price 2022/26 800,000 127.70 2021/25 714,000 145.80 2020/24 1,200,000 78.50 Total 2,714,000 * An option carries the right to purchase one share. Issued call options on repurchased shares had a dilutive effect of approximately 0.25% of the total number of shares in the company. ACQUISITIONS From and including the 2022/23 financial year, the following acquisitions have been carried out (including subsidiaries); Acquisition Takeover Equity interest, % Annual revenue at acquisition date, MSEK Number employees Division 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 Agentuuri Neumann (asset acquisition), Finland December 2022 100 11 - Electrify Tykoflex AB, Sweden December 2022 100 140 63 Electrify Sassenus Packaging (asset acq.), Netherlands March 2023 100 14 - Niche Products Glova Rail A/S, Denmark April 2023 100 90 18 International Fireco Ltd, UK April 2023 95 90 64 TecSec Supply Plus Ltd, UK June 2023 80 100 67 International In early April, Glova Rail A/S in Denmark was acquired for the International division. Glova Rail is a leading supplier of vacuum toilets for railway vehicles which generates annual revenue of about MDKK 58. In late April, an agreement was signed to acquire 80% of the shares of Supply Plus Limited in the UK for the International Division. Supply Plus is a market leading manufacturer of fire rescue equipment, mainly ladders and hose reels to the fire and rescue services, which generates annual revenue of about MGBP 7. After approval by the UK public authorities, the acquisition was completed in June 2023. At the end of April/start of May, 95% of the shares of Fireco Ltd in the UK were acquired for the TecSec division. Fireco is a leading manufacturer of components for fire doors, primarily fire door retainers which generates annual revenue of about MGBP 7. 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 and has a set maximum level. Not yet paid contingent considerations for acquisitions amounted to MSEK 237. The contingent considerations fall due for payment within three years and the maximum outcome can be MSEK 339. Remeasurement of contingent considerations had a net effect in the period of MSEK 6 (3). The effect on earnings is recognised in other operating income and other operating expenses. During the first quarter, MSEK 9 (0) was paid in contingent consideration and MSEK 47 (0) in the exercise of call options for the acquisition of outstanding minority shares in Frictape. ===== SIDA 7 ===== Preliminary purchase price allocation The preliminary purchase price allocations for the latest 12-month period in the table below (including subsidiaries) include Stegborgs El-evator AB, Door and Joinery Solutions Ltd, Water Proof Diving International AB, Tebul Oy, Tykoflex AB, Glova Rail A/S, Fireco Ltd and Supply Plus Ltd. Acquired net assets at time of acquisition (MSEK) Book value in companies Fair value adjustment Fair value consolidated Intangible non-current assets 0 419 419 Other non-current assets 54 54 Inventories 101 101 Other current assets 238 238 Interest-bearing liabilities -11 -11 Other liabilities -117 -90 -207 Net of identified assets/liabilities 265 329 594 Goodwill 396 Estimated Purchase price 990 Less: cash and cash equivalents in acquired businesses -122 Less: consideration not yet paid -249 Less payment via newly issued B-shares -70 Effect on the Group’s cash and cash equivalents 548 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 for 2023/2024. 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 that have the 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, cyber security risks as well as geopolitical uncertainty close to the main markets. For more information, please see the Risks and uncertainty factors section on pages 50-52 in the 2022/23 Annual Report. The Parent Company is impacted by the above- mentioned risks and uncertainty factors through its capacity as owner of subsidiaries. ===== SIDA 8 ===== Post-balance sheet events No significant events for the company have occurred after the end of the period. Annual General Meeting 2023 and dividend The 2023 Annual General Meeting (AGM) will be held on 29 August 2023, at 4.00 p.m. at IVA’s Conference Centre, Grev Turegatan 16 in Stockholm. Notice for the AGM will be published in July 2023 and will be available on the company’s website www.lagercrantz.com. The Board of Directors proposes a dividend of SEK 1.60 (1.30) per share, which is in line with Lagercrantz’s dividend policy. Notice of participation must be given to the company in accordance with the notice. Stockholm, 19 July 2023 Jörgen Wigh, President and CEO This report has not been subject to review by the company’s auditors. ===== SIDA 9 ===== Quarterly data by division Net revenue 2023/24 2022/23 2021/22 MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electrify 480 463 433 385 396 404 345 340 377 Control 184 203 204 163 175 189 187 132 152 TecSec 528 516 475 428 330 251 241 197 217 Niche Products 485 524 494 421 432 453 371 299 331 International 368 334 335 271 264 278 261 233 224 Parent Company/consolidation items - - - - - - - - - GROUP TOTAL 2,045 2,040 1,941 1,668 1,597 1,575 1,405 1,201 1,301 Operating profit (EBITA) 2023/24 2022/23 2021/22 MSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electrify 87 78 71 69 65 69 54 56 67 Control 21 39 36 17 26 41 38 17 22 TecSec 95 95 78 74 56 48 37 34 42 Niche Products 104 107 94 84 89 83 77 62 67 International 57 49 54 45 38 37 39 31 27 Parent Company/consolidation items -7 -25 -10 -14 -9 -13 -19 -8 -13 GROUP TOTAL 357 343 323 275 265 265 226 192 212 Operating margin (EBITA) 2023/24 2022/23 2021/22 % Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Electrify 18.1 16.8 16.4 17.9 16.4 17.1 15.8 16.5 17.8 Control 11.4 19.2 17.6 10.4 14.9 21.7 20.3 12.9 14.5 TecSec 18.0 18.4 16.4 17.3 17.0 19.1 15.4 17.3 19.4 Niche Products 21.4 20.4 19.0 20.0 20.6 18.3 20.8 20.7 20.2 International 15.5 14.7 16.1 16.5 14.4 13.3 14.9 13.3 12.1 GROUP TOTAL 17.5 16.8 16.6 16.5 16.6 16.8 16.1 16.0 16.3 ===== SIDA 10 ===== Consolidated Income Statement - condensed MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 Mov. 12 months, Jul-Jun 2023/24 Financial year 2022/23 Net revenue 2,045 1,597 7,694 7,246 Cost of goods sold -1,244 -995 -4,756 -4,506 GROSS PROFIT 801 602 2,938 2,740 Selling expenses -318 -252 -1,161 -1,095 Administrative expenses -176 -125 -641 -590 Other operating income and operating expenses 9 9 7 7 PROFIT BEFORE NET FINANCIAL ITEMS* 316 234 1,143 1,062 Net financial items -39 -2 -131 -94 PROFIT AFTER FINANCIAL ITEMS 277 232 1,012 968 Taxes -68 -53 -225 -210 NET PROFIT FOR THE PERIOD 209 179 787 758 * Of which: - amortisation of intangible non-current assets arising in connection with acquisitions: -41 -31 -154 -143 - depreciation of other non-current assets: -66 -55 -256 -246 Operating profit (EBITA) 357 265 1,297 1,205 Earnings per share, SEK 1.01 0.88 3.84 3.71 Earnings per share after dilution, SEK 1.01 0.88 3.83 3.70 Weighted number of shares after repurchases, (’000) 205,930 203,637 205,002 204,439 Weighted number of shares after repurchases adjusted after dilution (’000) 206,443 203,963 205,354 204,718 Number of shares at end of period after repurchases (’000) 205,930 203,637 205,930 205,930 In view of the redemption price on outstanding call options during the period (SEK 78.50, SEK 145.80 and SEK 127.70) and the average share price (SEK 111.10) during the latest 12-month period when the option programmes were outstanding, there was a dilutive effect of 0.17%. For the latest quarter, there was a dilutive effect of 0.25% (average share price SEK 132.03). Consolidated Statement of Comprehensive Income - condensed MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 Mov. 12 months, Jul-Jun 2023/24 Financial year 2022/23 Net profit for the period 209 179 787 758 Other comprehensive income Items that have been reposted or that may be reposted to net profit for the period Change in translation reserve 95 12 152 69 Debt instruments measured at fair value 1 - 7 6 Items that cannot be reposted to net profit for the period Actuarial effects on pensions - 13 13 Taxes attributable to actuarial effects - -2 -2 COMPREHENSIVE INCOME FOR THE PERIOD 305 191 957 844 ===== SIDA 11 ===== Consolidated Balance Sheet - condensed MSEK 30 Jun 2023 30 Jun 2022 31 Mar 2023 ASSETS Goodwill 2,632 2,241 2,446 Other intangible non-current assets 1,675 1,214 1,519 Property, plant and equipment 1,015 873 973 Financial assets 21 20 22 Inventories 1,249 1,143 1,166 Trade receivables and contract assets 1,330 1,133 1,237 Other current receivables 294 255 310 Cash and bank balances 397 260 360 TOTAL ASSETS 8,613 7,139 8,033 EQUITY AND LIABILITIES Equity 3,276 2,403 3,009 Non-current liabilities* 2,899 2,970 2,980 Trade payables and contract liabilities 671 591 673 Other current liabilities* 1,767 1,175 1,371 TOTAL EQUITY AND LIABILITIES 8,613 7,139 8,033 Interest-bearing assets 397 260 360 Interest-bearing liabilities, excluding pension liabilities* 2,752 2,769 2,632 * Including IFRS 16 effect in the form of future lease and rental obligations. Changes in Consolidated Equity - condensed MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 Mov. 12 months, Jul-Jun 2023/24 Financial year 2022/23 Opening balance 3,009 2,228 2,403 2,228 Comprehensive income for the period 305 191 958 844 Dividend to minority shareholders in subsidiaries -38 -14 -47 -23 Transactions with owners New issue - - 70 70 Dividend - - -265 -265 Redemption and acquisition of options on repurchased shares, net - -2 157 155 Closing balance 3,276 2,403 3,276 3,009 ===== SIDA 12 ===== Consolidated Statement of Cash Flows - condensed MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 Mov. 12 months, Jul-Jun 2023/24 Financial year 2022/23 Operating activities Profit after financial items 277 232 1,012 968 Adjustment for items not included in the cash flow 112 66 460 414 Income tax paid -7 -74 -188 -255 Cash flow from operating activities before changes in working capital 382 224 1,285 1,127 Cash flow from changes in working capital Increase (-)/Decrease (+) in inventories -13 -104 83 -8 Increase (-)/Decrease (+) in operating receivables -22 -69 -7 -54 Increase (+)/Decrease (-) in operating liabilities -61 -49 -7 5 Cash flow from operating activities 286 2 1,354 1,070 Investing activities Investments in businesses -237 -446 -637 -846 Net investments in other non-current assets -34 -42 -163 -171 Cash flow from investing activities -271 -488 -800 -1,017 Financing activities Dividend, sale/repurchase of own shares/options - -16 -117 -133 Other financing activities 7 550 -324 219 Cash flow from financing activities 7 534 -441 86 CASH FLOW FOR THE PERIOD 22 48 113 140 Cash and cash equivalents at the beginning of the period 360 210 260 210 Exchange difference in cash and cash equivalents 15 2 24 10 Cash and cash equivalents at the end of the period 397 260 397 360 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 30 Jun 2023 31 Mar 2023 Assets measured at fair value - - Assets measured at amortised cost 1,618 1,513 TOTAL ASSETS, FINANCIAL INSTRUMENTS 1,618 1,513 Liabilities measured at fair value 567 400 Liabilities measured at amortised cost 3,326 3,218 TOTAL LIABILITIES, FINANCIAL INSTRUMENTS 3,793 3,618 Change in contingent considerations and call options 3 months Apr-Jun 2023/24 Financial year 2022/23 Opening balance 400 269 Settled liabilities during the year -56 -37 Remeasurement of liabilities during the year -4 4 Year’s liabilities from acquisitions during the year 113 144 Exchange difference 14 20 Closing balance 467 400 ===== SIDA 13 ===== Parent Company Income Statement - condensed MSEK 3 months Apr-Jun 2023/24 3 months Apr-Jun 2022/23 Mov. 12 months, Jul-Jun 2023/24 Financial year 2022/23 Net revenue 17 14 65 63 Administrative expenses -27 -23 -121 -118 Other operating income and operating expenses - - - - OPERATING PROFIT -10 -9 -56 -55 Financial income 485 261 998 774 Financial expenses -59 -9 -155 -105 PROFIT AFTER FINANCIAL ITEMS 416 243 787 614 Change in untaxed reserves 0 -4 -80 -84 Taxes -1 2 -55 -52 NET PROFIT FOR THE PERIOD 415 241 652 478 Parent Company Balance Sheet - condensed MSEK 30 Jun 2023 30 Jun 2022 31 Mar 2023 ASSETS Property, plant and equipment 2 - 2 Financial assets 4,744 4,045 4,598 Current receivables 1,328 1,278 1,365 Cash and bank balances - - - TOTAL ASSETS 6,074 5,323 5,965 EQUITY AND LIABILITIES Equity 2,976 2,362 2,561 Untaxed reserves 198 114 198 Non-current liabilities 2,119 2,328 2,244 Current liabilities 781 519 962 TOTAL EQUITY AND LIABILITIES 6,074 5,323 5,965 ===== SIDA 14 ===== Key ratios In the table below, key ratios are partly presented that are not defined according to IFRS. For definition of these, see Definitions, Moving 12 months Financial year Jul-Jun 2023/24 2022/23 2021/22 2020/21 2019/20 Revenue 7,694 7,246 5,482 4,091 4,180 Change in revenue, % 33.2 32.2 34.0 -2.1 6.3 EBITDA 1,553 1,451 1,094 774 717 Operating profit (EBITA) 1,297 1,205 895 616 565 Operating margin (EBITA), % 16.9 16.6 16.3 15.1 13.5 EBIT 1,143 1,062 781 529 483 EBIT margin, % 14.9 14.7 14.2 12.9 11.6 Profit after financial items 1,012 968 741 502 460 Profit margin, % 13.2 13.4 13.5 12.3 11.0 Profit after taxes 787 758 572 388 366 Equity ratio, % 38 37 36 40 39 Return on working capital (P/WC), % 72 78 79 67 64 Return on capital employed, % 21 22 20 17 17 Return on equity, % 28 29 28 22 23 Operating net debt (+)/receivables (-), MSEK 2,411 2,327 2,014 1,314 1,312 Net debt/equity ratio, times 0.7 0.8 0.9 0.7 0.8 Operating net debt (+)/receivables (-), MSEK 1,972 1,902 1,621 992 1,056 Operating net debt/equity ratio, times 0.6 0.6 0.7 0.5 0.6 Operating net debt / EBITDA, times 1.3 1.3 1.5 1.7 1.8 Interest coverage ratio, times 6 8 15 12 13 Number of employees at end of period 2,562 2,425 1,953 1,654 1,532 Revenue outside Sweden, MSEK 5,168 4,830 3,559 2,650 2,706 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 Jul-Jun 2023/24 2022/23 2021/22 2020/21 2019/20 Number of shares at end of period after repurchases (’000) 205,930 205,930 203,637 203,421 203,178 Weighted number of shares after repurchases, (’000) 205,002 204,439 203,547 203,307 203,151 Weighted number of shares after repurchases & dilution (’000) 205,354 204,718 204,102 203,673 203,616 Earnings per share before dilution, SEK 3.84 3.71 2.81 1.91 1.80 Earnings per share after dilution, SEK 3.83 3.70 2.80 1.91 1.80 Cash flow from operating activities per share after dilution, SEK 6.59 5.23 2.91 3.84 2.49 Equity per share, SEK 15.91 14.61 10.94 9.12 8.29 Latest price paid per share, SEK 139.0 129.7 106.80 79.10 38.60 ===== SIDA 15 ===== 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 contract assets less trade payables and contract liabilities. 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. EBITDA1 Operating profit before depreciation and impairment. 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. Operating net debt/EBITDA1 The operating net debt divided by EBITDA for the latest 12-month period. 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 Net 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. ===== SIDA 16 ===== Reconciliation tables for alternative performance measures EBITA and EBITDA 12 months through Group, MSEK 30 Jun 2023 31 Mar 2023 30 Jun 2022 31 Mar 2022 30 Mar 2021 Profit before net financial items according to the quarterly report 1,143 1,062 830 781 529 Amortisation, intangible non-current assets relating to acquisitions (+) 154 143 118 114 87 EBITA 1,297 1,205 948 895 616 Depreciation of property, plant and equipment 256 246 206 199 158 EBITDA 1,553 1,451 1,154 1,094 774 Working capital and return on working capital (P/WC) Group, MSEK 30 Jun 2023 31 Mar 2023 30 Jun 2022 31 Mar 2022 31 Mar 2021 EBITA (moving 12 months) 1,297 1,205 948 895 616 Inventories, annual average (+) 1,198 1,058 951 802 608 Trade receivables and contract assets, annual average (+) 1,232 1,105 978 822 694 Trade payables and contract liabilities, annual average* (-) 631 621 527 486 384 Working capital (annual average) 1,798 1,542 1,402 1,138 918 Return on working capital (P/WC), (%) 72% 78% 68% 79% 67% Acquired and organic net revenue growth Group, MSEK, % 3 months Apr-Jun 2023/24 3 months Jan-Mar 2022/23 3 months Oct-Dec 2022/23 3 months Jul-Sep 2022/23 Acquired net revenue growth 296 19% 271 18% 331 12% 282 24% Organic net revenue growth 88 6% 148 9% 135 9% 135 11% Exchange rate effects 65 4% 46 3% 70 2% 50 4% Total net revenue growth 449 28% 465 30% 537 23% 467 39% Revenue distribution Electrify Control TecSec Niche Products International Group total Net revenue by product type 3 mths Apr- Jun 2023/24 Financial year 2022/23 3 mths Apr- Jun 2023/24 Financial year 2022/23 3 mths Apr- Jun 2023/24 Financial year 2022/23 3 mths Apr- Jun 2023/24 Financial year 2022/23 3 mths Apr- Jun 2023/24 Financial year 2022/23 3 mths Apr- Jun 2023/24 Financial year 2022/23 Total net revenue 480 1,677 184 746 528 1,748 485 1,871 368 1,203 2,045 7,246 Of which, share Proprietary products 74% 71% 43% 46% 80% 78% 97% 98% 63% 57% 76% 75% Trading 5% 6% 50% 49% 4% 4% 2% 2% 37% 42% 14% 15% Niche production 20% 22% 5% 4% - - - - - - 5% 5% System integration - - - - 10% 12% - - - 3% 3% Other net revenue 1% 1% 1% 1% 6% 6% 1% - - 1% 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 19 July 2023. Reporting dates: 29 August 2023 Annual General Meeting for the 2022/23 financial year 25 October 2023 Interim Report 1 April – 30 September 2023 6 February 2024 Interim Report 1 April – 31 December 2023 17 May 2024 Year-end Report 1 April – 31 March 2024 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