G & L Beijer AB Six-Month Report January - June 2011

G & L Beijer AB Six-Month Report January - June 2011

- Net sales increased by 12 per cent to SEK 2,741.5M (2,455.6).

- Operating profit rose by 40 per cent to SEK 197.8M (141.5).

- Profit after tax increased to SEK 177.5M (106.2) including the capital
gain of SEK 51.7M from the divestment of shares in Beijer Alma.

- Profit per share rose to SEK 8.19 (5.01). Excluding the capital gain,
profit per share amounted to SEK 6.39 (5.01).

- Letter of intent to acquire Toshiba's distribution operations in
eleven European countries.

G & L Beijer is a technology-oriented trading Group which, through a
combination of added-value agency products and products of the company's
own development, offers competitive solutions for its customers.

In the previous year, operations were consolidated into comprising only
products within refrigeration and air conditioning. The operational
activities as a whole are carried out under the name of Beijer Ref.

Sales
The positive trend from the first quarter was consolidated during the
second quarter with strong growth and increased profit. Consolidated
sales for the first six months of the year increased by 12 per cent to
SEK 2,741.5M (2,455.6). Acquisitions contributed positively to sales
whilst the stronger Swedish currency had a negative effect. Organically,
sales increased by approximately 11 per cent. Sales for the second
quarter increased by 11 per cent to SEK 1,473.0M (1,325.7). Organically,
the increase was 10 per cent. At the end of the first quarter of 2010,
the Beijer Tech business area was divested, which means that Beijer
Tech's sales and results are not included in the comparative figures for
2010.

The organic growth remains extensive and comprises virtually all markets
in which G & L Beijer operates.France, which is the Group's largest
individual market, developed especially strongly as
didItalyandSpain.South Africa,FinlandandThailandalso developed very
positively.United KingdomandCentral Europereported good growth.Eastern
Europerecovered strongly, albeit from low levels. In comparison with the
other markets, the Scandinavian market did not show the same strength.
However, the Swedish operation had a large backlog of orders at the end
of the reporting period.

Results
Consolidated operating profit for the first six months increased by 40
per cent to SEK 197.8M (141.5). Operating profit for the second quarter
rose by 24 per cent to SEK 125.6M (101.0). The result improvement is
explained by rising volumes, acquisitions and continued strict cost
control.

The Group's financial income/expense amounted to SEK 50.3M (-0.8) for
the first half of the year, of which SEK 0.3M (-0.8) for the second
quarter. Financial income/expense includes the capital gain from the
divestment of shares in Beijer Alma, with SEK 51.7M (0) and a share in
profits of associated companies of SEK 3.0M (4.0) for the six-month
period. The second quarter included a share in profits of associated
companies of SEK 1.5M (2.0).

Profit before taxes increased to SEK 248.1M (140.7) for the first half
of the year, including the capital gain, of which SEK 125.9M (100.2) was
for the second quarter. Profit after tax amounted to SEK 177.5M (106.2)
for the half year and to SEK 89.7M (77.5) for the second quarter. Profit
per share increased to SEK 8.19 (5.01) for the first six months.
Excluding the capital gain, profit per share amounted to SEK 6.39
(5.01).

Other financial information
Consolidated capital expenditure including acquisitions amounted to SEK
97.8M (13.4) for the first half of the year. Liquid funds, including
unutilised bank overdraft facilities, were SEK 525.7M (436.2) on 30 June
2011. Shareholders' equity amounted to SEK 2,302.2M (2,190.1). Net
indebtedness amounted to SEK 372.9M (542.6). The equity ratio was 55.0
per cent (51.9). The average number of employees during the period was
1,817 (1,674).

Significant events
During the first quarter, G & L Beijer completed its acquisition of the
Italian SCM Frigo group. SCM Frigo designs, develops and builds
chillers. The company reports annual sales of approximately SEK 220M and
has 70 employees. Initially, G & L Beijer acquired 51 per cent of the
shares in SCM Frigo with an option to acquire the remaining 49 per cent.
SCM Frigo is included in G & L Beijer's accounts from 1 January 2011.

During the first quarter, G & L Beijer divested its entire holding of
2.7 million shares in Beijer Alma, equivalent to 9.0 per cent of capital
and 4.5 per cent of votes. The divestment of the shares generated sales
proceeds of approximately SEK 365M and G & L Beijer made a capital gain
of SEK 51.7M before tax and SEK 38.1M after tax. The shares in Beijer
Alma were received as part payment on the sale of Beijer Tech during the
spring of 2010. The divestment of the shares was another step forward in
creating increased scope to take action for the continued expansion
within the strongly growing refrigeration wholesale operation.

In June, G & L Beijer signed a letter of intent with Carrier Corporation
to acquire the distribution operation for Toshiba's products within the
refrigeration, heating and air-conditioning segment in eleven European
countries. Carrier Corporation, though a jointly-owned company with
Toshiba, has the exclusive distribution rights for Toshiba's products
within the heating, ventilation and air-conditioning segment (HVAC)
outsideJapan. The transaction means that Carrier will transfer staff and
assets related to Toshiba's operation to G & L Beijer. The price for the
acquisition amounts to nine times the operation's annual operating
profit. For the latest twelve-month period until the end of the first
quarter of 2011, sales of Toshiba's distributor operation in the
countries involved amounted to approximately EUR 130M (around SEK
1,200M) and operating profit to approximately EUR 10M (around SEK 93M).
The addition of the Toshiba distribution operations is expected to
increase profit per share by SEK 2.09 on a yearly basis. The final
purchase price is subject to a due-diligence process and a mutual
agreement between the parties.

The acquisition is important for G & L Beijer from several aspects. Air
conditioning and heating are growth areas driven by an increased need
for energy savings and greater consideration for the environment.
Through its distribution capacity and organisation, G & L Beijer can
significantly increase Toshiba's sales and, at the same time, benefit
from an increased size and expanded product portfolio. Carrier's
distribution of Toshiba's products comprises sales in eleven European
markets;Germany,France,Spain,Portugal,Italy,Sweden,Finland,Polandand the
threeBaltic States. The distribution rights in the countries involved
are exclusive. Assets relating to the operation and approximately 160
employees will be transferred. G & L Beijer can take advantage of its
strong balance sheet as the acquisition, which is made on a debt free
basis, will be financed with own funds and increased borrowing.

The transaction is subject to the customary due diligence processes and
to the parties reaching a final purchase agreement, which is expected to
be signed during the third quarter of 2011. The completion of the
transaction is also subject to obtaining regulatory clearance if
required. Carrier Corporation, which is G & L Beijer's largest
individual shareholder with 41.4 per cent of capital and 33.3 per cent
of votes, has two representatives on the G & L Beijer Board of
Directors. The transaction is, therefore, classified as a related-party
transaction and the Board Members who represent Carrier are not
participating in the Board of Directors' handling of the acquisition. In
addition, G & L Beijer will obtain a fairness opinion relating to the
transaction and its terms from an independent external party.

Risk assessment
The operations of the G & L Beijer 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 operations are
dependent on the general economic trend, especially inEurope, which
controls the demand for G & L Beijer's products and services.
Acquisitions are normally linked with risks, 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 operations, G & L Beijer 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.

Financial information
- The Nine-Month Report will be published on 21 October 2011.
- The Year-End Report for 2011 will be published in February 2012.
- The Annual Report for 2011 will be published in April 2012.

For further information, please contact:
Joen Magnusson, CEO
switchboard +46 40-35 89 00, mobile +46 709-26 50 91
Jonas Lindqvist, CFO
switchboard 040-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of an 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.

G & L Beijer AB continues to apply the same reporting principles and
valuation methods as those described in the latest Annual Report.

The Board of Directors and the Managing Director assure that this
Six-Month Report gives a true and fair view of the company's and the
Group's operations, position and results and describes significant risks
and factors of uncertainty which the company and the companies included
in the Group are facing.

Malmö, Sweden, 18 July 2011

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

www.beijers.com (http://www.beijers.com)