Beijer Ref AB Q2 2014

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| Source: Beijer AB, G & L
Continued positive development for Beijer Ref

Quarter 2 2014

  · Net sales amounted to SEK 1,870.8M (1,711.9).


  · Operating profit amounted to SEK 136.9M (83.4).


  · Net profit amounted to SEK 89.3M (50.4).


  · Profit per share amounted to SEK 2.03 (1.14).


  · The positive trend continued for the second quarter with a growth in sales
of nine per cent and an improved operating profit of 64 per cent compared with
the corresponding quarter in the previous year. Excluding one-time costs in
2013, operating profit increased by 16 per cent.


  · Strong increase of HVAC (comfort cooling) in Europe during the second
quarter.


Comments by the CEO

Continued positive trend in Europe
The second quarter of 2014 consolidates the positive trend from the first
quarter with a sales increase of 9.3 per cent.

The operating profit of SEK 136.9M shows that Beijer Ref continues to strengthen
its position as the largest refrigeration wholesaler in Europe.

Among our regions, Central Europe enjoyed a good development during the second
quarter. The United Kingdom continued to develop positively with both increased
sales and increased market share. In the UK, Beijer Ref’s competitive
distribution and service concept to nationally operating customers is achieving
increased penetration in the market. Holland strengthened its position during
the quarter and Germany continues its positive development.

Southern Europe accounts for around 40 per cent of Beijer Ref’s sales and in
this region both sales and results are also increasing. At this moment in time,
Spain is the fastest expanding market in Southern Europe, especially with
increased demand for HVAC (heating, ventilation and air conditioning, also
called comfort cooling), which drives growth.

In the Eastern European market, Poland is leading the development with a
significant increase in sales within both commercial & industrial refrigeration
and HVAC.

In the Nordic market, the trend in the Swedish market has been ‘wait-and-see’,
but a strong end to the quarter is a positive signal.

Denmark and Finland developed well. Sweden and Norway started the quarter
slightly weaker but turned the trend during June and there is reason for
cautious optimism in both countries.

In the Rest of the World, Thailand’s development has stabilised after the recent
disturbances and South Africa is developing according to plan.

One contributing reason to the quarter’s results, albeit a minor influence, is
the positive currency effects of the stronger Euro, something that must be seen
as welcome after a long period with the opposite situation.

Increased investment in refrigeration units produced by the company
Refrigeration units produced by the company itself is a growing and increasingly
prioritised segment within Beijer Ref. As one of the largest and most modern
refrigeration wholesalers in the world, an understanding of our customers’
refrigeration requirements has been built up within the Group. We are
transferring this refrigeration competence to a growing portfolio with
refrigeration units produced by the company.

Our ambition is that Beijer Ref will increasingly be able to offer even more
competitive energy-efficient solutions, both with regard to individual standard
units and customer-adapted overall concepts with the most modern environment
technology.

Toshiba increasingly strong brand within HVAC
The demand for HVAC (comfort cooling) is slightly more dependent on the economic
situation than other operations within Beijer Ref and, therefore, the increased
sales during the second quarter within this market segment can be seen as a sign
of a continued economic upturn in Europe.

Toshiba HVAC is one of the many world-leading brands within comfort cooling
represented by Beijer Ref. Like Beijer Ref, the world-leading Japanese high-tech
company, Toshiba, has its roots in the innovative company culture of the late
19th century. It currently consists of more than 740 companies with 210,000
employees all over the world. We are pleased to note the development for
Toshiba’s products within comfort cooling was strong in all markets during the
second quarter. It should also be emphasised that our sales of both Samsung and
Mitsubishi enjoyed a similar development.

Interesting acquisition opportunities
With the European recession hopefully behind us, a stronger market position,
increased operating margin, and positive effects of the previous year’s cost
savings, Beijer Ref has after the first two quarters of the year consolidated
its operation and is well prepared for future acquisitions.

It should also be mentioned that after 136 years of operation as G & L Beijer,
the Group officially changed its name to Beijer Ref which, as previously
announced, better reflects the consolidated operation (ref = refrigeration). At
the same time, the Group’s new website was ready with more lucid and easily
accessible information. Please visit our website on www.beijerref.com.

Per Bertland
CEO, Beijer Ref AB


Quarterly report Q2 2014

About Beijer Ref

Beijer Ref is one of the three largest refrigeration wholesalers in the world
and the leading company in Europe. The Group offers competitive and innovative
solutions within refrigeration and air conditioning with customer-adapted
products, refrigeration units developed by the company itself and efficient
logistics.

Sales
Beijer Ref increased its sales by nine per cent to SEK 1,870.8M (1,711.9) for
the second quarter of 2014. Adjusted for exchange rate fluctuations and
acquisitions, the organic sales increase was four per cent. The Group also
increased its sales by nine per cent to SEK 3,451.8M (3,175.7) for the period
January to June which, organically, is an increase of five per cent.

Beijer Ref operates in three market areas: commercial & industrial refrigeration
and HVAC (comfort cooling). The Group splits its operation in the global market
into five geographic segments: The Nordic countries, Central Europe (including
the United Kingdom and Ireland) Eastern Europe, Southern Europe and the Rest of
the World (currently consisting of southern Africa and Thailand).

Behind the quarter’s sales increase lies increased demand in virtually all of
these markets, where especially Central Europe (including the United Kingdom and
Ireland), reported strong growth. Eastern Europe also developed well, with
Poland as the largest market. Southern Europe also enjoyed a positive
development. HVAC, which accounts for approximately 30 per cent of Beijer Ref’s
sales, continued to increase during the second quarter.

Results
The Group’s operating profit amounted to SEK 136.9M (83.4) for the second
quarter. The result increase can be explained as a combination of implemented
savings measures taken during 2013, increased market share in the United Kingdom
and strengthened demand, especially for HVAC, but also for commercial &
industrial refrigeration in Europe. In the previous year’s figures, the
operating result is charged with one-time costs of SEK 34.2M. Excluding these
one-time costs, the operating profit for the second quarter of 2013 amounted to
SEK 117.6M. For the first half year, the operating profit amounted to SEK 208.2M
(132.1). Excluding one-time costs, the operating profit was SEK 166.3M in the
previous year.

The Group’s financial income/expense amounted to SEK -8.6M (-9.6) for the second
quarter. Profit before tax was SEK 128.3M (73.8). Profit after tax was SEK 89.3M
(50.4). Profit per share amounted to SEK 2.03 (1.14). For the first half of the
year, the Group’s financial income/expense amounted to SEK -16.1M (-15.0).
Profit before tax was SEK 192.1M (117.1). Profit after tax amounted to SEK
134.9M (82.8). Profit per share was SEK 3.06 (1.83).

Other financial information
Consolidated capital expenditure, including acquisitions, amounted to SEK 40.2M
(34.4) for the first half of 2014. Liquid funds, including unutilised bank
overdraft facilities, were SEK 373.6M (433.1) on 30 June 2014. Shareholders’
equity amounted to SEK 2,431.7M (2,247.5). The net debt was SEK 1,607.5M
(1,479.3). The equity ratio amounted to 41.9 per cent (41.7). The average number
of employees during the first half of the year was 2,169 (2,106).

Significant events during the year
In January, G & L Beijer acquired all the shares in Eurocool (Pty) Ltd, a
leading refrigeration wholesaler in South Africa. Eurocool was founded in 1999
and holds a strong market position within G & L Beijer’s priority segments. The
company reports sales of approximately SEK 65M and has 36 employees. The
acquisition is estimated to provide cost synergies, increased efficiency and
increased purchasing volumes through co-ordination with Beijer Ref’s existing
operation in southern Africa. The acquisition is deemed to have a marginal
positive effect on Beijer Ref’s profit per share in 2014. Eurocool is included
in G & L Beijer’s accounts from January 2014.

On 12 March, the EU Parliament voted ‘yes’ to the proposal about a new F-gas
ordinance which was confirmed by the Council of Ministers in a vote on 14 April.
As a result, the decision to phase out refrigerants with fluorised greenhouse
gases (F-gases) has come into force which is predicted to have a positive effect
on Beijer Ref through the investments in new technology which the end customers
will gradually need to make and where Beijer ref is well prepared for the new
business opportunities.

On 14 May, the Swedish Companies Registration Office approved the Group’s change
of name from G & L Beijer to Beijer Ref. A classic Swedish industrial company’s
modern operation is now also reflected in the company name.

Risk assessment
The operations of the Beijer Ref Group are affected by a number of external
factors, the effects of which on the Group’s operating profit can be controlled
to a varying degree. The Group’s operation is dependent on the general economic
trend, especially in Europe, which controls the demand for Beijer Ref’s products
and services. Acquisitions are normally linked with risks such as, for example,
staff defection. Other operating risks, such as agency and supplier agreements,
product responsibility and delivery undertaking, technical development,
warranties, dependence on individuals, etc., are continually being analysed and,
when necessary, action is taken to reduce the Group’s risk exposure. In its
operation, Beijer Ref is exposed to financial risks such as currency risk,
interest risk and liquidity risk. The parent company’s risk picture is the same
as that of the Group. For further information see the Group’s Annual Report.

Financial information
- Quarterly Report Q3 2014 will be published on 22 October 2014.
- The Year-end Report for 2014 will be published in February 2015.
- The Annual Report for 2014 will be published in April 2015.

For further information, please contact:
Per Bertland, CEO
switchboard +46 40-35 89 00, mobile +46 705-98 13 73
Jonas Lindqvist, CFO
switchboard +46 40-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of examination by the company’s
auditors.

The Board of Directors and the President assure that the six-month report is
prepared in accordance with generally accepted accounting principles for listed
companies. The information provided corresponds with the actual conditions in
the operation and nothing of significant importance has been left out which
could affect the picture of the Group and the parent company that has been
created by the six-month report.

Malmö, Sweden, 18 July 2014

Bernt Ingman, Chairman
Peter Jessen Jürgensen, Board Member
Anne-Marie Pålsson, Board Member
William Striebe, Board Member
Philippe Delpech, Board Member
Harald Link, Board Member
Joen Magnusson, Board Member
Per Bertland, President

Reporting principles
This interim report has been prepared in accordance with IAS 34, the Annual
Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting
principles and valuation methods as those described in the latest Annual Report,
with the exception of what is stated below.

The Group’s operation is split into operating segments based on how the
company’s chief operating decision maker, i.e. the President, monitors the
operation. A decision has been taken about a new segment classification when, as
from 1 January 2014, the highest executive decision maker monitors the operation
based on the following segments: South Europe, Central Europe, the Nordic
Countries, Eastern Europe and the Rest of the World.

New and changed standards applicable as of 1 January 2014 are not expected to
have any material effect on the financial position of either the group or the
parent company.

www.beijerref.com