Beijer Ref Q3 2016

Weak start of the quarter but gradual improvement
Net sales for the third quarter of 2016 increased by 5.4 per cent compared with
the corresponding period in the previous year and amounted to SEK 2,461M
(2,335). The increase is mainly due to the acquisition of HRP in the United
Kingdom and Realcold in Australia/New Zealand.

Weak month of July. Organic growth in August and September.

Operating profit for the third quarter of 2016 amounted to SEK 173M (181).

Profit for the quarter amounted to SEK 117M (121).

Profit per share amounted to SEK 2.71 (2.82).

Comments by the CEO

Weak start of the quarter but gradual improvement

Although profit for the quarter did not reach the level of the previous year,
the third quarter of the year was one of our strongest quarters ever. Only the
month of July was the weak month of the quarter, whilst both August and
September showed growth, organically as well as incrementally. The heatwave
Europe experienced in July last year, which at the time had a strong impact on
demand, was not repeated this year.

In our regional markets, the Nordic countries stand out negatively, mainly due
to a weaker development in Sweden. We see this as a normal fluctuation as there
is no business cycle or structural signs that would indicate demand is
declining. Central Europe shows growth, mainly due to the fact that the
acquisition of HRP in the United Kingdom has been consolidated. In the region,
we can also see a positive development in markets such as the Netherlands,
Switzerland and Germany. The Southern Europe region was affected by the cooler
weather during July compared with the previous year. Eastern Europe shows a
positive development in Czech Republic, Slovakia, Romania and the Baltic States.
The markets in Africa also show growth in local currency and in Asia Pacific we
see an excellent development, especially in Malaysia and New Zealand.

The work of making our own organisation even more efficient continues through
the creation of a clear structure with a country manager and a joint back-office
in every country. The United Kingdom, France, the Netherlands and Norway are the
remaining countries in which we are currently implementing these measures which
will give us a more efficient organisation and clear cost savings.

During the quarter, we have initiated the work of strengthening our digital
competence. There are significant opportunities with digitalisation in our
sector and the objective is to develop our digital capacity.

We are working with our own organisation and our cost side, and are also
continually evaluating new acquisition opportunities. Taken together, the
outcome for the quarter is lower than anticipated. However, the development in
August and September gives us confidence for the next quarter.

Per Bertland

CEO, Beijer Ref

Third quarter of 2016

Sales

Beijer Ref increased its net sales by 5.4 per cent to SEK 2,461M (2,335) for the
third quarter of 2016. When adjusted for exchange rate fluctuations and
acquisitions, the organic change in sales was -2.0 per cent. The decrease in
sales is attributable to the fact that sales for the month of July did not reach
the previous year’s level. The month of July in the previous year was strongly
influenced by a heatwave through large parts of Europe.

Net sales for the first three quarters of the year increased by 8.1 per cent to
SEK 6,845M (6,334). When adjusted for exchange rate fluctuations and
acquisitions, the organic sales change was 4.1 per cent.

Results

The Group’s operating profit amounted to SEK 173M (181) for the third quarter,
equivalent to a decrease of 4.5 per cent. The result decrease is mainly
explained by the lower sales in the month of July as described above under the
section about sales.

The lower operating margin for the quarter, 7.0 per cent (7.7), is mainly
explained the fact that HRP and Realcold were acquired and that these companies
initially have lower margins that the average in the Group.

When adjusted for exchange rate fluctuations and acquisitions, the organic
decrease in operating profit was 6.7 per cent during the quarter. For the first
three quarters of the year, operating profit increased by 3.4 per cent to SEK
448M (443). When adjusted for exchange rate fluctuations and acquisitions, the
organic increase in operating profit was 4.1 per cent. The Group’s financial
income/expense amounted to SEK -25M (-27) for the first three months of the
year. Profit before tax was SEK 423M (406). Net profit for the period was SEK
299M (289). Profit per share amounted to SEK 6.88 (6.69).

Cash flow

Cash flow from the current operation before change in working capital was SEK
381M for the first nine months of 2016 compared with SEK 411M for the
corresponding period in the previous year. During the first nine months of the
year, the working capital increased by SEK 352M compared with SEK 130M for the
same period in the previous year, as a result of the increased business volume
and the acquisitions of HRP and Realcold. This gives a cash flow from the
current operation of SEK 29M compared with SEK 281M in the previous year.

Investments

Consolidated capital expenditure, including acquisitions, amounted to SEK 66M
(188) for the first nine months of 2016.

Significant events during the year

During the first quarter, the UK Competition & Markets Authority (CMA) initiated
an examination of our acquisition of HRP Ltd with 15 branches in the United
Kingdom. On 8 June, CMA announced that it had no objections to the transaction.
As a result, we were able to start our planned restructuring work. HRP is
included in the Group’s accounts as from June.

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.

Malmö, 19 October 2016

Beijer Ref AB (publ)

Per Bertland, CEO

For further information, please contact:

Per Bertland, CEO – switchboard +40 35 89 00

Jonas Lindqvist, CFO – switchboard +40 35 89 00

This information is information that Beijer Ref AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, at 08.30 CET on 19 October 2016.

Beijer Ref in short

The Beijer Ref Group is focused on trading and distribution operations within
refrigeration products, air conditioning and heat pumps. The product programme
consists mainly of agency products from leading international manufacturers and,
in addition, some manufacture of own products, combined with service and support
for the products. The Group creates added value by contributing: technical
competence to the products; accounting for knowledge and experience about the
market; and by providing efficient logistics and warehousing.

     Operations are carried out by region within the Beijer Ref, which comprises
Beijer Ref ARW (Air conditioning, refrigeration, wholesale) and Toshiba’s
distribution operation within air conditioning and heating. The Beijer Ref Group
is a leading operator within the refrigeration sector in Europe and has a
significant position within air conditioning in Europe. The operation is split
into six geographic segments: Nordic countries, Southern Europe, Central Europe,
Eastern Europe, Africa and Asia Pacific. Growth is achieved both organically and
through the acquisition of companies which supplement existing operations.

Seasonal effects

Beijer Ref’s sales are seasonally dependent as demand for refrigeration and air
conditioning is at its peak during the warm months of the year. It means that
demand in the northern hemisphere is at its peak during the second and third
quarters whilst demand in the southern hemisphere is at its peak during the
first and fourth quarters.

Financial calendar

The Year-End Report for 2016 will be published on 16 February 2017.

The Annual Report for 2016 will be published in March 2017.

The Interim Report for the first quarter 2017 will be published on 24 April
2017.

The Interim Report for the second quarter 2017 will be published on 14 July
2017.

The Interim Report for the third quarter 2017 will be published on 20 October
2017.

This document is a translation of the Swedish language version.

In the event of any discrepancies between this translation and the original
Swedish document, the latter shall be deemed correct.

www.beijerref.com