Beijer Ref Q1 2015

Oceania – a new market
Quarter 1 2015

Net sales amounted to SEK 1,845.7M (1,581.0).

Operating profit amounted to SEK 94.2M (71.3).

Net profit amounted to SEK 60.5M (45.6).

Profit per share amounted to SEK 1.39 (1.03).

Sales growth of 16.7 per cent and an operating profit improvement of 32.1 per
cent compared with the corresponding quarter in the previous year. Organic
increase in sales of 2.5 per cent and an organic increase in operating profit of
10.0 per cent.

Acquisition of the refrigeration wholesaler, RNA Engineering & Trading, in
Malaysia.

Acquisition of the refrigeration wholesaler, Patton, in New Zealand, Australia,
Thailand and India.

Exclusive distribution agreement with the American refrigeration group, Carrier
International Corporation, for comfort cooling products in Europe.

Comments by the CEO

Southern Europe thaws out?

Beijer Ref started 2015 with a strong first quarter where, maybe, the biggest
cause for rejoicing is that Southern Europe – which accounts for approximately
40 per cent of the Group’s total sales – shows signs of recovery from the
recession that began with the financial crisis in 2008. This, combined with the
fact that the acquisitions made during 2014 and in the first quarter of 2015,
contributes positively to the result. The market again shows underlying strength
and prices for refrigerants are increasing. These are the contributing factors
that enabled Beijer Ref to increase its sales for the first quarter by 16.7 per
cent and to achieve an operating profit of SEK 94.2M – an increase of 32.1 per
cent compared with the corresponding period in 2014.

     The Nordic markets also enjoyed a strong opening of the year, not least
because eco-friendly refrigeration systems of Beijer Ref’s own development
continue to gain ground. The Group’s strategy, with an increased focus on own
manufacturing of eco-friendly
refrigeration systems, has had a promising start. The Scandinavian countries are
at the forefront in the changeover to the new
technology.

     In Central Europe, operations also remain stable and Beijer Ref can now be
said to have gained a foothold in the important
German market. In Germany, we established an operation as late as in 2012. Since
then Beijer Ref in Germany has reported growth. Holland and Belgium also report
growth whereas the United Kingdom has stagnated slightly. Eastern Europe is
developing posi­tively, albeit at a slower rate.

     As I have already stated, the biggest cause for rejoicing in Europe is
Southern Europe where France and Italy especially are again enjoying growth
after a relatively long period of stagnation. In addition to stronger markets,
implemented market investments are beginning to generate results.

     In A&A (Africa and Asia), South Africa continues its positive development
and there appears to be good prospects for further strengthening its positions
in the neighbouring countries of Botswana, Namibia, Mozambique and Zambia.

The expansion continues

All companies acquired during 2014 are integrated into the Beijer Ref
organisation and the Group is looking forward towards new opportunities to
expand, both inside and outside Europe.

     In the European markets, the year started well with the important news that
Beijer Ref and the world-leading American
refrigeration group, Carrier International Corporation, have signed an exclusive
distribution agreement which gives Beijer Ref the distribution rights in most
European countries for Carrier’s competitive DX production series, including
spare parts, within the comfort cooling segment.

     Soon thereafter, the Group strengthened its position in Asia. At the same
time, Oceania became a new part of the global
operation following the acquisition of Patton, the leading refrigeration
wholesaler in New Zealand. The acquisition also comprises Patton’s companies in
Australia, Thailand and India, which is fully in line with Beijer Ref’s strategy
to grow outside Europe.

     The refrigeration wholesaler, RNA Engineering & Trading in Malaysia, was
also acquired during the first quarter. This
complements both Beijer Ref’s existing operation in Thailand and the acquisition
of Patton’s four companies in Asia and Oceania.

Continued aggressive investment

The European logistics project, which was initiated during the second half of
2014, continues according to plan. A comprehensive software system is being
implemented in some of the largest markets in Southern and Central Europe, with
the aim of reducing
capital tied up through more efficient logistics. The signals from the countries
which have made most progress are promising.

     The positive market development, the opportunities for new interesting
acquisitions and the effects of the favourable currency effects as a result of
the weak SEK all indicate that, at this moment in time, we can look forward to
the next quarter with cautious optimism.

Per Bertland

CEO, Beijer Ref AB

About Beijer Ref

Beijer Ref is one of the largest refrigeration wholesalers in the world and the
leading company in Europe. The Group offers competitive and innovative solutions
within refrigeration and air conditioning providing customer-adapted products,
environment-friendly and energy-efficient chillers developed by the company
itself and an efficient service.

Sales

Beijer Ref increased its sales by 16.7 per cent to SEK 1,845.7M (1,581.0) for
the first quarter of 2015. Adjusted for exchange rate fluctuations and
acquisitions, the organic change in sales was 2.5 per cent. The acquired growth
was 4.1 per cent.

Beijer Ref operates in three market areas: commercial refrigeration, industrial
refrigeration and HVAC (comfort cooling). The Group splits its operation in the
global market into six geographic segments: The Nordic countries, Central
Europe, Eastern Europe, Southern Europe, A&A (Africa and Asia) and Oceania.

Behind the quarter’s sales increase lies a positive development in Southern and
Central Europe, the Nordic countries and A&A, acquisitions and the weaker SEK.

Results

The Group’s operating profit amounted to SEK 94.2M (71.3) for the first quarter.
The result increase can mainly be explained by increased sales in the Nordic
countries, Southern and Central Europe and South Africa. When adjusted for
exchange rate fluctuations and acquisitions, the organic increase in operating
profit was 10.0 per cent.

The Group’s financial income/expense amounted to SEK -9.3M (-7.5) for the first
quarter. Increased debt because of acquisitions explains the difference. Profit
before tax was SEK 84.9M (63.8). Profit after tax was SEK 60.5M (45.6). Profit
per share amounted to SEK 1.39 (1.03).

Other financial information

Consolidated capital expenditure, including acquisitions, amounted to SEK 153.6M
(28.4) for the first three months of 2015. Of this, the major portion refers to
the acquisition of Patton. Liquid funds, including unutilised bank overdraft
facilities, were SEK 618.6M (420.4) on 31 March 2015. Shareholders’ equity
amounted to SEK 2,733.6M (2,467.2). The net debt was SEK 1,550.0M (1,234.8). The
equity ratio amounted to 44.0 per cent (46.6). The average number of employees
during the period was 2,243 (2,158).

Significant events during the year

In January, Beijer Ref signed an agreement with the world-leading American
refrigeration group, Carrier International Corporation. The agreement gives the
Swedish refrigeration wholesaler the exclusive right to distribute Carrier’s DX
product series within the comfort cooling segment, and all pertaining service of
these products in Europe.

In February, Beijer Ref acquired all the shares in the refrigeration wholesale
company, RNA Engineering & Trading, which has its head office in Kuala Lumpur,
Malaysia. The company reports sales of approximately SEK 45M. It is the leading
refrigeration whole­saler in the Malaysian market for commercial refrigeration,
which is estimated to be worth nearly SEK 480M with a stable growth of around
ten per cent per annum.

In March, Beijer Ref acquired all the shares in the refrigeration wholesale
company, Patton, which has its head office in Auckland, New Zealand, and
operations in New Zealand, Australia, India and Thailand. Patton was founded in
1923 and reports sales of approximately SEK 400M. It is the leading
refrigeration wholesaler in New Zealand with some sales of products manufactured
by the company itself. The acquisition gives Beijer Ref a foothold in the
important New Zealand, Australian and Indian markets and, at the same time,
strengthens the existing operation in Thailand.

Risk assessment

The operation of the Beijer Ref Group is 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

- The Six-Month Report for 2015 will be published on 17 July 2015.

- The Nine-Month Report for 2015 will be published on 22 October 2015.

- The Year-end Report for 2015 will be published in February 2016.

- The Annual Report for 2015 will be published in March 2016.

Malmö, 23 April 2015

Beijer Ref AB (publ)

Per Bertland, CEO

For further information, please contact:

Per Bertland

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.

www.beijerref.com