Financial report for the period April 1, 2001 - March 31, 2002

LAGERCRANTZ GROUP Financial report for the period April 1, 2001 - March 31, 2002 Net revenues amounted to MSEK 1983 (2614) Operating income amounted to MSEK 81 (118). This result includes items affecting comparability in an amount of MSEK 0 (-45) Cost reduction measures implemented during the year have lowered overhead in the Group by about MSEK 70 on an annual basis. Cash flow from current operations amounted to MSEK 158 (203). After the repurchase of own shares, the Group's equity ratio stands at 55 percent (37). Earnings per share amounted to SEK 1.96 (2.69) A cash dividend of SEK 0,90 is proposed. From April 3, 2002 the Group is organized in three divisions. All comparative data are pro forma, based on the assumptions set forth in Information to the shareholders of Bergman & Beving AB relating to the distribution of the Lagercrantz Group AB. Comparative data for prior years have been adjusted for the effect of applying recommendation RR9 (Income taxes) of the Swedish Financial Accounting Standards Council. NET REVENUES AND INCOME Net revenues declined to MSEK 1983 (2614). Operating income amounted to MSEK 81 (118) with an operating margin of 4.1 percent (4.5). Income before financial items amounted to MSEK 79 (113). This result includes items affecting comparability in the amount of MSEK 0 (-45). Earnings per share were SEK 1.96 (2.69). A continued low level of demand in the telecom and electronics industries marks the Group's operations. The downward economic trend is seen most clearly in division Components, which is the Group's main business. The large loss of volume resulted in lower earnings despite forceful measures to reduce costs by approximately MSEK 70 on an annual basis. Sharp focus on the development of working capital has strengthened the Group's financial position. Restructuring costs of MSEK 39 were charged to the restructuring reserve set aside at financial year-end March 31, 2001. The entire reserve has thus been utilized. In order to increase future opportunities for profitable growth with the priority areas of electronics and communication the business within information and payment systems was disposed in March 2002. The Group is from April 1, 2002 organized in three divisions: Components, Production Services and Communication. BUSINESS AREA ELECTRONICS Net revenues declined to MSEK 1207 (1694). Operating income before items affecting comparability amounted to MSEK 58 (137), which is equivalent of an operating margin of 4.8 percent (8.1). COMPONENTS Net revenues declined to MSEK 1009 (1490) and operating income before items affecting comparability amounted to MSEK 49 (111). The operating margin was 4.9 percent (7.4). Components continues to be affected by the recession and the market's outlook is uncertain. An extensive cost savings program was implemented during the year. Among measures taken is a reduction in personnel by about 85 persons. The aggregate cost reduction is estimated to amount to about MSEK 55 on an annual basis. From April 1, 2002 the Group's business in industrially oriented systems components was integrated in Components. This business, which was previously a part of Systems, is included in the division's efforts in the area of industrial communication. PRODUCTION SERVICES Net revenues amounted to MSEK 198 (204) and operating income before items affecting comparability declined to MSEK 9 (26). The operating margin was 4.5 percent (12.7). After a deteriorating business trend during the third quarter, the flow of new orders has now stabilized. The number of employees was reduced by about 40 and the cost level has been reduced by about MSEK 10 on an annual basis. An investment in the expansion of value-adding services and products was made during the year by establishing the 2B Electronics business. The concept of offering holistic solutions with, among other things, development and production preparation of electronics applications has been well received in the marketplace. Some time and investment is required, however, to establish a new concept in the market. In order to strengthen further the division's contact network in the Asian electronics market, 2B Electronics Asia Ltd. was established in Hong Kong during the year. The company is a joint venture with a regional partner. BUSINESS AREA SOLUTIONS Net revenues amounted to MSEK 776 (920). Operating income before items affecting comparability amounted to MSEK 20 (22), which is equivalent to an operating margin of 2.6 percent (2.4). IT/COMMUNICATION Net revenues for the operating area amounted to MSEK 395 (400) and operating income before items affecting comparability amounted to MSEK 12 (19). The operating margin was 3.0 percent (4.8). Profitability was negatively affected by an unsatisfactory development of consulting operations in customer relationship management (CRM) and IT Service Management (ITSM). An action program for cost reduction has been implemented. Operations in security solutions and satellite and video communication saw a positive development, while the telecom-oriented communications business is experiencing postponement of projects. SYSTEMS Net revenues declined to MSEK 381 (520) and operating income amounted to MSEK 8 (3). The operating margin was 2.1 percent (0.6). As a result of the Group's ongoing process of evaluating future development opportunities, the business in information and payment systems was sold in March 2002. This business had revenues of about MSEK 100 per year and employed 20 persons in the Nordic region. The other operations in Systems (industry-oriented system components) were integrated April 1, 2002 in the Components division. Order bookings and profitability were positive in this business during the period. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/05/15/20020515BIT01600/wkr0001.doc Hela rapporten http://www.waymaker.net/bitonline/2002/05/15/20020515BIT01600/wkr0002.pdf Hela rapporten