Beijer Ref Q4 2015

Continued positive development in Southern Europe
Quarter 4 2015

Net sales amounted to SEK 2,026.6M (1,789.7).

Operating profit amounted to SEK 133.9M (115.5).

Net profit amounted to SEK 84.0M (82.5).

Profit per share amounted to SEK 1.95 (1.91).

Sales growth of 13.2 per cent and operating profit improvement of
15.9 per cent compared with the corresponding quarter of the previous year.
Organic increase in sales of four per cent and organic increase in operating
profit of six per cent.

Agreement for the acquisition of the remaining 56 per cent of the shares in the
UK refrigeration wholesale company, HRP Ltd, which will be finalized in 2016.

Acquisition of the remaining 40 per cent of the shares in the Thai company,
PattonAero, which manufactures chillers, evaporators and condensers.

Breakthrough order for eco-friendly refrigeration systems in New Zealand.

Strong development in Southern Europe and Africa and continued positive
development for the Toshiba distribution.

The Board of Directors proposes that the Annual Meeting of share­holders
resolves that a dividend of SEK 5.25 (5.00) per share shall be paid.

Comments by the CEO

   We ended 2015 with a strong fourth quarter, with continued positive
development for Toshiba and for the Southern Europe and Africa market regions.
The sales increase for Beijer Ref amounted to 13 per cent, of which four per
cent is organic and nine per cent consists of acquisitions. Operating profit
increased to SEK 134M – an increase of 16 per cent compared with the
corresponding period in 2014 and a figure which means that we make our highest
annual profit ever.

Spain strong in Southern Europe

   Southern Europe is our most important market region and I am pleased that the
strong demand in the region is maintained. In the fourth quarter, both Italy and
France did well and especially Spain enjoyed a positive development. Africa’s
stable development also continues. In the fourth quarter, the Nordic markets
were slightly weaker compared with the corresponding quarter in the previous
year.

   Apart from sales in the stronger market in Southern Europe, the positive
development for Toshiba’s sales is due to successful product launches. We have
the sole right for the distribution of Toshiba’s air-conditioning units and heat
pumps in eleven countries in Europe.

Acquisitions in the United Kingdom and Thailand

   In November, Beijer Ref signed an agreement to acquire the remaining 56 per
cent of the shares in the refrigeration wholesale company, HRP Ltd, which has 15
branches in the United Kingdom. Since its acquisition of Carrier’s refrigeration
wholesale operation in Europe and South Africa in 2009, Beijer Ref has owned 44
per cent of HRP. With HRP as a complement to the Group’s existing UK
refrigeration wholesalers, Dean & Wood and RW Refrigeration, we consolidate our
position in the United Kingdom. This also strengthens its position in Europe.
HRP will be included in Beijer Ref’s accounts in 2016.

   Since our acquisition of Patton in spring 2015, we have owned 60 per cent of
the shares in the Thai company, PattonAero, which manufactures chillers,
evaporators and condensers. In December, we acquired the remaining 40 per cent
of the shares in the
company. With its own manufacturing unit in Asia, this becomes another step
forward in the development of Beijer Ref’s OEM activity.

Important steps for eco-friendly refrigeration technology

   At the end of October, we received its first order for eco-friendly
refrigeration systems through its subsidiary, Patton, in New Zealand. The
refrigeration installation was manufactured by our Italian company, SCM Frigo,
and installed in a leading food chain in New Zealand during the fourth quarter.
This first order for eco-friendly refrigeration technology in Oceania is in line
with our strategy to be a part of the changeover to eco-friendly refrigeration
technology with its own manufacturing and, as a result, to
contribute to more eco-friendly refrigeration installations.

   During the fourth quarter, were given the opportunity, through our Dutch
refrigeration wholesalers, Coolmark and Uniechemie, to participate in a pilot
project, initiated by a research team which had developed a new propane-based
technology for more energy-efficient and eco-friendly refrigeration
installations and which had sought to work in collaboration with us. The concept
has been successfully launched in a leading food chain in Europe under the
Triple Aqua brand. The interest is increasing and deliveries are also made to
other customers.

   Beijer Ref’s Board of Directors proposes an increased dividend of SEK 5.25
(5.00). I am pleased with these positive events and a record profit. With a
satisfactory fourth quarter and a new strong year for Beijer Ref, I look forward
towards a year which is at least as exciting in 2016.

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.

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.

Sales

Beijer Ref increased its sales by 13.2 per cent to SEK 2,026.6M (1,789.7) for
the fourth quarter of 2015. Adjusted for exchange rate fluctuations and
acquisitions, the organic change in sales was four per cent.

The quarter’s sales increase is mainly due to acquisitions, but also to a
positive development, especially in Southern Europe and Africa, and to the
distribution of Toshiba’s air-conditioning products.

For the period January to December, sales increased by 16.3 per cent to SEK
8,360.6M (7,189.0), which organically is an increase of four per cent. The
year’s sales increase is mainly due to strengthened demand during the hot summer
in Southern Europe, combined with a stronger market in general and acquisitions.

Results

The Group’s operating profit amounted to SEK 133.9M (115.5) for the fourth
quarter, equivalent to an increase of 15.9 per cent, of which 6.2 per cent is
organic and 9.7 per cent relates to acquisitions.

The Group’s financial income/expense amounted to SEK -15.5M (-8.3) for the
fourth quarter. The difference in the Group’s financial income/expense is mainly
due to acquisitions and allocations between the quarters. Profit before tax was
SEK 118.4M (107.2). Net income was SEK 84.0M (82.5). Profit per share amounted
to SEK 1.95 (1.91). For the twelve months of the year, the Group’s financial
income/expense amounted to SEK -42.3M (-34.9). The change consists mainly of
increased interest expenses as a result of financing of acquisitions and
translation differences on loans in foreign currency. Profit before tax was SEK
524.8M (446.5). Profit after tax amounted to SEK 373.1M (324.5). The increase in
the year’s tax expense is mainly due to profit increases in Southern Europe,
which from a general point of view has higher corporation tax. Profit per share
was SEK 8.64 (7.46).

Dividend

The Board of Directors proposes that the Annual Meeting of shareholders resolves
that a dividend of SEK 5.25 (5.00) per share shall be paid for the 2015
financial year. This is equivalent to a total of SEK 222.6M if the shares
currently held by the company are excluded.

Other financial information

Consolidated capital expenditure, including acquisitions, amounted to SEK 316.6M
(182.6) for the 2015 full year. Of this, the major portion refers to the
acquisitions of Patton and Realcold. Shareholders’ equity amounted to SEK
2,634.2M (2,618.6). The net debt was SEK 1,483.7M (1,429.8). The equity ratio
amounted to 43.6 per cent (46.0). The strong cash flow is mainly due to
increased profit and improved working capital.

During the autumn of 2015, Beijer Ref renegotiated its entire bank financing
with its principal banks and increased the financing scope in order to have
readiness for further expansion of the Group’s operation.

Significant events during 2015

In January, Beijer Ref signed an agreement with Carrier International
Corporation, the world-leading American refrigeration group. The agreement gives
Beijer Ref 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 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.

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 for 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, which has
its starting point in the Italian company, SCM Frigo. 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
contribute to eco-friendly refrigeration technology in Europe.

In July, Beijer Ref acquired the refrigeration wholesale company, Realcold,
which has its head office in Auckland, New Zealand, and around 20 branches in
New Zealand and Australia.

In October, Beijer Ref continued to develop its operation in Africa by
establishing an operation in Ghana.

In October, Beijer Ref also signed the first order for carbon dioxide-based
refrigeration systems manufactured by the Group itself through its subsidiary,
Patton, in New Zealand. The refrigeration installation is manufactured in
accordance with modern refrigeration technology by Beijer Ref’s Italian company,
SCM Frigo, for installation in a leading food chain in New Zealand.

In November, Beijer Ref signed an agreement to acquire the remaining 56 per cent
of the shares in the refrigeration wholesale company, HRP Ltd, which has 15
branches in the United Kingdom. Beijer Ref has previously owned 44 per cent of
HRP since its acquisition of Carrier Corporation’s refrigeration wholesale
operation in Europe and South Africa in 2009. As a result, Beijer Ref
strengthened its position in Europe and, with HRP as a complement to the Group’s
existing UK refrigeration wholesalers, Dean & Wood and RW Refrigeration, Beijer
Ref consolidated its position as the market leader in the United Kingdom.

In December, Beijer Ref acquired the remaining 40 per cent of the shares in the
Thai company, PattonAero, which manufactures chillers, evaporators and
condensers. The acquisition of Patton in March 2015 included an ownership of 60
per cent and, with a wholly-owned manufacturing company, the opportunity also
increases for Beijer Ref’s OEM division to develop eco-friendly refrigeration
technology in Asia.

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 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.

The Annual Meeting of shareholders will be held on 7 April 2016.

Malmö, 10 February 2016

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

This interim report has not been the subject of examination by the Company’s
Auditors.

Accounting 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 as those described in the latest Annual Report, with the exception of
what is stated below.

New and amended standards applied from 1 January 2015 are not deemed to have any
significant effect on the Group’s or the parent company’s results or financial
position.

www.beijerref.com