Beijer Ref Q3 2015

Strong quarter after a hot summer
Quarter 3 2015

Net sales amounted to SEK 2,335.4M (1,947.4).

Operating profit amounted to SEK 180.7M (157.8).

Net profit amounted to SEK 121.3M (107.0).

Profit per share amounted to SEK 2.82 (2.49).

Continued positive trend during the third quarter with sales growth of 19.9 per
cent and an operating profit improvement of 14.5 per cent compared with the
corresponding quarter in the previous year.

Strong development in Southern Europe, breakthrough order for the recently
acquired company, Patton, in Australia and continued expansion in Africa with
establishment in Ghana.

After the end of the reporting period, the acquisition of the refrigeration
wholesale company, Realcold, was approved by the competition authority in New
Zealand.

Comments by the CEO

Beijer Ref’s third quarter of 2015 showed a continued stable growth. The hot
summer in Southern Europe, in combination with an improved economic cycle,
confirms the upward trend with yet another strong quarter for Beijer Ref’s
largest market region, Southern Europe. This, in combination with a positive
development in Eastern Europe, Thailand and Sweden, contributed to enabling
Beijer Ref to increase its sales for the third quarter by 20 per cent. Of the
sales increase, nine per cent is organic whereas seven per cent consists of
acquisitions. The operating profit increased to SEK 180.7M – an increase of 15
per cent compared with the same period in 2014 - and represents a new record for
Beijer Ref.

Strong quarter for Toshiba

Beijer Ref’s collaboration with the Japanese company, Toshiba, gives Beijer Ref
the sole right in eleven countries in Europe for the distribution of the
company’s air-conditioning units, heat pumps and ventilation systems. The
collaboration is both far-reaching and close, which gives Beijer Ref the
opportunity to influence the product range and development.

The Toshiba sales was also favoured by the hot summer in Southern Europe, as hot
periods drive demand for air-conditioning plants. During the autumn, Toshiba is
launching new products, which means that we are looking forward to the fourth
quarter with confidence.

The acquisition of Realcold approved

Beijer Ref’s acquisition of the refrigeration wholesale company, Realcold, which
has its head office in Auckland, New Zealand, and more than 20 branches in New
Zealand and Australia, was approved by the competition authority in New Zealand
at the beginning of October. As the conditions for the acquisition are,
therefore, complied with, the work of completing the transaction and integrating
Realcold with the previous acquisition of the refrigeration wholesale company,
Patton, based in New Zealand and Australia now begins. Realcold will be
consolidated into Beijer Ref’s accounts during the fourth quarter of 2015.

Patton, which was acquired in March this year, has now sold its first chiller
from Beijer Ref’s sector-leading Italian manufacturing company, SCM Frigo – a
synergy which is expected to increase in the future and is in line with Beijer
Ref’s OEM strategy. Both Patton and the refrigeration wholesale company, RNA
Engineering & Trading, which was acquired at the beginning of the year and has
its head office in Kuala Lumpur, Malaysia, are developing well in accordance
with the plan.

Global spread levels out the results

Beijer Ref’s strategy of global expansion through acquisition is partly aimed at
levelling out seasonal variations. With operations in both the northern and
southern hemisphere, these seasonally driven differences will reduce in the long
term. The year’s acquisitions of Patton, Realcold and RNA in Oceania were
supplemented during the third quarter with the establishment of a new operation
in Accra, capital of Ghana, in Africa. This is an exciting addition to our
ongoing expansion in Africa for Beijer Ref as a modern and environment-conscious
refrigeration group.

Our ambition is to continue this growth strategy and we look forward to being
able to present additional acquisitions in the future.

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 this sector in Europe. The Group offers competitive and
innovative solutions within refrigeration and air conditioning providing
customer-adapted products, chillers developed by the company itself, a high
level of service and efficient logistics.

Sales

Beijer Ref increased its sales by 20 per cent to SEK 2,335.4M (1,947.4) for the
third quarter of 2015. Adjusted for exchange rate fluctuations and acquisitions,
the organic change in sales was nine per cent.

The Group increased its sales by 17.3 per cent to SEK 6,334.0M (5,399.3) during
the period January to September which organically is an increase of five 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: Nordic countries, Central Europe,
Eastern Europe, Southern Europe, A&A (Africa and Asia) and Oceania.

Behind this quarter’s sales increase lies a positive development, especially in
Southern Europe. The segment which showed the biggest increase within Beijer Ref
during the quarter is air conditioning, demand for which was affected positively
by the hot summer.

Results

The Group’s operating profit amounted to SEK 180.7M (157.8) for the third
quarter. The result increase can mainly be explained by increased sales in
Southern Europe. When adjusted for exchange rate fluctuations and acquisitions,
the organic increase in operating profit was seven per cent.

The Group’s financial income/expense amounted to SEK -10.6M (-10.6) for the
third quarter. Profit before tax was SEK 170.1M (147.2). Net income was SEK
121,3M (107.0). Profit per share amounted to SEK 2.82 (2.49). For the first nine
months of the year, the Group’s financial income/expense amounted to SEK -26.8M
(-26.7). Profit before tax was SEK 406.4M (339.3). Profit after tax was SEK
406.4M (339.3). Net income amounted to SEK 289.1M (242.0). Profit per share was
SEK 6.69 ( 5.56).

Other financial information

Consolidated capital expenditure, including acquisitions, amounted to SEK 188.1M
(136.5) for the first nine months of the year. Shareholders’ equity amounted to
SEK 2,677.4M (2,457.5). The net debt was SEK 1,587.1 (1,528.9). The equity ratio
amounted to 42.5 per cent (41.6). The average number of employees during the
period was 2,419 (2,194).

Significant events during the first nine months of the year

In January, Beijer Ref signed an agreement with Carrier International
Corporation, the world-leading American refrigeration group. The agreement gives
the Swedish refrigeration wholesaler the exclusive right to distribute Carrier’s
DX product series within the comfort-cooling segment and to 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,
estimated to be worth nearly SEK 480M with a stable growth of around 10 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.

In May, Beijer Ref expanded its OEM division through the formation of the
company SCM REF France which, with its registered office in Lyon, will focus on
the development of an assembly operation to Beijer Ref’s subsidiaries in
Southern Europe. The Group transfers its collective refrigeration competence to
a growing portfolio with products manufactured by the company itself, modelled
on the Italian company’s, SCM Frigo, recipe for success. In Sweden, the
manufacturing company, SCM REF Sweden, already exists.

In June, Beijer Ref Poland signed its first order for carbon dioxide-based
refrigeration systems, which is a step forward in the Group’s ambition to be the
driving force in the changeover to eco-friendly refrigeration technology in
Europe.

In September, Patton Australia sold its first chiller from Beijer Ref’s sector
-leading Italian manufacturing company, SCM Frigo, which can be seen as a
breakthrough order.

In September, Beijer Ref strengthened its operation in Africa by establishing an
operation in Ghana.

The refrigeration wholesale company, Realcold, which has its head office in
Auckland, New Zealand, and around 20 branches in New Zealand and Australia was
acquired in July. In October, after the end of the reporting period, the
acquisition was approved by the competition authority in New Zealand.

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 Year-end Report for 2015 will be published on 10 February 2016.

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

- The Three-Month Report for 2016 will be published on 20 April 2016.

- The Six-Month Report for 2016 will be published on 15 July 2016.

- The Nine-Month Report for 2016 will be published on 19 October 2016.

Malmö, 22 October 2015

Beijer Ref AB

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

www.beijerref.com