Financial report for the year ended March 31, 2003

5/14/2003 9:54 AM EST

· Net revenues amounted to MSEK 1 463 (1 983).
· Operating income amounted to MSEK 27 (81).
· Cash flow from current operations amounted to MSEK 70 (158).
· The Group's financial position is strong and the equity ratio
stands at 56 percent (53).
· After the period's repurchases of own shares, Lagercrantz owns 10
percent of the number of shares outstanding and 7.4 percent of the votes
in the Company.
· Additional cost containment measures will have a positive effect on
income for the current year.
· A dividend of SEK 0.90 is proposed (0.90).


NET REVENUES AND RESULT
Net revenues amounted to MSEK 1 463 (1 983). Operating income was MSEK
27 (81), with a profit margin of 1.8 percent (4.1).
Income after financial items amounted to MSEK 16 (79). The declining
trend in the USD/SEK exchange rate lowered the Group's net of financial
items by MSEK 8.
Earnings per share were SEK 0.34 (1.96).
The market situation for the Group's operations was stable during the
year. However, a low level of order


bookings in division Electronics had the effect of weak profitability
for the Group. A new round of cost containment measures and efficiency-
improvement actions will therefore be taken during the first quarter in
Electronics. These measures are expected to lower costs by about MSEK 15
on an annual basis.
Positive effects of the Group's initiatives in the field of industrial
communication (M2M) were noticeable during the latter part today. This
area is expected to contribute significantly to the Group's future
earnings performance.


ELECTRONICS
Net revenues amounted to MSEK 843 (1 261).
Operating income amounted to MSEK 3 (55), with an operating margin of
0.4 percent (4.4).
The market for the division's operations was stable during the year, but
weak. The cost containment program initiated during the previous year
was completed during the early part of the year The year's program
included personnel cutbacks by about 30 persons and a lowered cost level
of MSEK 20 on an annual basis.
The process to improve profit continues. A weak economy with low demand
had a negative effect on operations. Also structural changes, such as
moving production from the Nordic Region, had a negative effect on
earnings.
Efforts in the division for growth area industrial communication (M2M)
continue. The year was marked by increased focus on total solutions, a
stronger international presence and continuing streamlining of the
Group's product offerings.
A significant increase in order bookings in the area of industrial
communication during the latter part of the year has not yet been
delivered. A positive effect on earnings of this development will be
seen during the current year.
The division's level of results is not satisfactory, however, and during
the first quarter of the current year additional cost containment
measures will be taken in conjunction with a structural streamlining of
the organization. These measures are expected to have a positive effect
on the division's earnings for the current year.
It may also be noted that to indicate the division's shift of main
focus, it changed its name at the end of the year from Components to
Electronics.

PRODUCTION SERVICES
Net revenues amounted to MSEK 183 (198) and operating income was MSEK 7
(9). The operating margin was 3.8 percent (4.5).


The cable harness operations, which makes customized cable harnesses,
was stable during the year with good profitability.
The 2B Electronics operation that offers complete solutions for
electronics applications had a negative result for the year.
This investment in the Group's ability to add value has been well
received in the marketplace, however, and the 2B Electronics companies
in Denmark and Hong Kong were transferred to division Electronics
effective as of April 1, 2003.
We believe that the opportunities for developing customer synergies and
new projects will increase by integrating the holistic concept of 2B
Electronics in a broader sales organization.

COMMUNICATION
Net revenues amounted to MSEK 437 (524). Operating income was MSEK 14
(14) with a profit margin of 3.2 percent (2.7).
The operations of the division are organized in three areas: Security,
Communication and Infrastructure, and Software and Consulting.
The Security area provides security solutions for large data networks.
This business is established throughout the Nordic Region via the Heath
Comm group and revenues amounted to about MSEK 90. A significant
increase in revenue and income is expected for the current year.
The Communication and Infrastructure area offers products and solutions
in the following areas: access and test, video and telecommunications.
The area's revenues amount to MSEK 175. It enjoys a leading market
position in the Swedish market.
Software and Consulting builds solutions for customer service and
process management, and also provides consulting services and solutions
in the area of design. Revenues amounted to about MSEK 175 and the
profitability was good. This business saw a very positive development
during the year and we are expecting more of the same for the current
year.


Stockholm, May 13, 2003
Jan Friis
President & CEO

AUDITORS STATEMENT
We have reviewed this year-end financial report in accordance with the
recommendation issued by the Swedish Institute of Authorizrd Public
Accountants. A review is significantly limited in comparison to an
audit. Nothing has come to our attention that causes us to believe that
the year-end financial report does not comply with the requirements of
the Swedish Securities and Clearing Operations Act and the Swedish
Annual Accounts Act.
Stockholm, May 13, 2003

George Pettersson Thomas Thiel
Authorized Public Authorized Public
Accountant Accountant


An Interim Report for the period April 1 - June 30, 2003 will be
presented August 26, 2003.
The Annual General Meeting will be held in Stockholm August 26, 2003.
The Group's Annual report will be distributed to the shareholders in mid-
July 2003 and will be available at the Company's Web site at the same
time.

Lagercrantz Group AB (publ) P.O. Box 3508 Torsgatan 2 SE-103 69
Stockholm, Sweden
Telephone +46-8-700 66 70 Telefax +46-8-28 18 05  
www.lagercrantz.com
Organization number 556282-4556