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Resolutions at Beijer Ref’s Annual General Meeting 2025
The annual general meeting of Beijer Ref AB (publ) today made the following resolutions. Income statement and balance sheet as well as discharge from liability The meeting adopted the income statement and the balance sheet as well as the consolidated income statement and the consolidated balance sheet for 2024. The members of the board of directors and the CEO were discharged from liability for their administration of the company during the financial year 2024. Dividend In accordance with the board of directors’ proposal, the meeting resolved to pay a dividend of SEK 1.40 per share for the financial year 2024. The dividend shall be paid in two instalments, the first with SEK 0.70 per share with 28 April 2025 as record date and the second with SEK 0.70 per share with 27 October 2025 as record date. The dividend is expected to be distributed by Euroclear Sweden AB on 2 May 2025 and on 30 October 2025. Remuneration report for 2024 The meeting approved the board of directors’ report regarding compensation pursuant to Chapter 8, Section 53 a of the Swedish Companies Act. Election of board of directors The meeting resolved, in accordance with the Nomination Committee’s proposal, to re-elect the board members Per Bertland, Nathalie Delbreuve, Albert Gustafsson, Kerstin Lindvall, Joen Magnusson, Frida Norrbom Sams, William Striebe and Kate Swann, until the end of the next annual general meeting. Kate Swann was re-elected as chairperson of the board. Board of directors’ fees The meeting resolved, in accordance with the Nomination Committee’s proposal, on fees to the members of the board of directors, as well as fees for work in the Committees of the board of directors as follows: SEK 1,150,000 to the chairperson of the board SEK 550,000 to each board member SEK 275,000 to the chairperson of the Audit Committee SEK 175,000 each to the other members of the Audit Committee SEK 135,000 to the chairperson of the Remuneration Committee SEK 75,000 each to the other members of the Remuneration Committee Auditor The meeting resolved, in accordance with the Nomination Committee’s proposal, to re-elect the accounting firm Deloitte AB as auditor until the end of the next annual general meeting. The authorised auditor, Richard Peters, will continue as the auditor in charge. The fees to the auditor shall be paid according to approved invoice. Resolution to authorise the board of directors to resolve on a new share issue The meeting resolved in accordance with the board of directors’ proposal on authorisation for the board of directors to, on one or more occasions during the period up to the next annual general meeting, resolve to issue as many new shares as correspond to a maximum of 10 percent of the company’s total number of shares at the time of the resolution. The share issue may be with or without deviation from the shareholders’ preferential right, by payment in cash, by contribution in kind or by set-off. The purpose of the authorisation and the reason for the deviation from the shareholders’ preferential right is to pursue the company's acquisition strategy by enabling acquisitions by payment in Beijer Ref shares (contribution in kind) or flexibility in the financing of acquisitions. The share issue price shall be determined in accordance with market conditions, which may include customary discounts. LTI 2025 The meeting resolved, in accordance with the board of director’s proposal, to establish a long-term share-based incentive program LTI 2025. The program comprises a maximum of 470,000 B shares in Beijer Ref and include approximately 150 participants whereof group management (currently 8 persons) and other key individuals of the group. LTI 2025 is a performance-based incentive program with an element of personal financial investment. The performance targets used to assess the outcome of the program are growth in profit per share and a measurable sustainability target to reduce Beijer Ref's Scope 3 greenhouse gas emissions, which have a clear link to the long-term interests of the shareholders. The overall purpose of LTI 2025 is to strengthen the company’s growth by motivating and retaining personnel with key competence In order to ensure Beijer Ref’s obligations in connection with LTI 2025 and any future incentive programs, the meeting resolved, in accordance with the board of director’s proposal, to authorise the board of directors to resolve on the repurchase of a maximum of 470,000 class B shares in the company and on the transfer of a maximum of 470,000 class B shares of Beijer Ref to the participants in LTI 2025. Minutes with complete resolutions from the annual general meeting will be made available on the company’s website, www.beijerref.com no later than 8 May 2025. For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Notice to the Annual General Meeting in Beijer Ref AB (publ)
Notice to the Annual General Meeting in Beijer Ref AB (publ) The shareholders of Beijer Ref AB (publ), corporate ID no. 556040-8113, are hereby invited to the Annual General Meeting (the “AGM”) to be held on 24 April 2025, at 14.00 at Glasklart, Dockplatsen 1, in Malmö, Sweden. Registration for the AGM will begin at 13.30. The board of directors has resolved, in accordance with the provisions of the company’s Articles of Association, that shareholders may exercise voting rights in advance by so-called postal voting. A. RIGHT TO PARTICIPATE, NOTIFICATION OF ATTENDANCE AND POSTAL VOTING A shareholder who wishes to attend the AGM venue or who wishes to exercise its voting rights by postal voting, must be recorded in the share register maintained by Euroclear Sweden AB as per 14 April 2025; and must (i) in the event of participation at the AGM venue: give notice of attendance to the company no later than by 16 April 2025, kindly before 16:00. Notice of attendance is submitted by regular mail to Beijer Ref AB, “AGM”, c/o Computershare AB, P.O. Box 5267, SE-102 46 Stockholm, Sweden, by email to proxy@computershare.se, by telephone +46 (0)771 24 64 00, or through the company’s website, https://www.beijerref.com/annual-general-meeting/annual-general-meeting-2025. The notice of attendance shall include name of shareholder, personal or corporate identity number, address, telephone number, and if relevant, name of proxy holder and number of any assistants (not more than two); and/or (ii) in the event of exercising voting rights by postal voting: give notice hereof by submitting its postal vote to the company no later than by 16 April 2025, kindly before 16:00. A special form shall be used for postal voting. The form is available on the company’s website, https://www.beijerref.com/annual-general-meeting/annual-general-meeting-2025. The completed and signed form shall be sent to Beijer Ref by regular mail to Beijer Ref AB, “AGM”, c/o Computershare AB, P.O. Box 5267, SE-102 46 Stockholm, Sweden or by e-mail to proxy@computershare.se. Shareholders may also cast their votes electronically by verifying with BankID via the company’s website, https://www.beijerref.com/annual-general-meeting/annual-general-meeting-2025. A shareholder who wishes to attend the AGM venue in person or by proxy must give notice of this in accordance with the instructions in (i) above. Hence, a notice of participation only through postal voting is not sufficient for a person who wishes to attend the AGM venue. If a shareholder is represented by proxy, a written and dated power of attorney signed by the shareholder must be issued to the proxy and submitted to the company. A proxy form is available on the company’s website, https://www.beijerref.com/annual-general-meeting/annual-general-meeting-2025. Further, if the shareholder is a legal entity, a registration certificate or other authorisation document must be submitted to the company. In order to facilitate the registration process, proxies and registration certificates and any other authorisation documents is requested to be received by the company at the above address in connection with submitting the notice of attendance or postal vote. The shareholder may not provide a postal vote with specific instructions or conditions. If so, the entire vote is invalid. Further instructions and conditions are included in the form for postal voting. Shareholders whose shares are nominee-registered must temporarily re-register their shares in their own name in the shareholders’ register maintained by Euroclear Sweden AB in order to participate in the AGM (so called voting rights registration). The shareholders’ register as of the record date 14 April 2025 will include voting rights registrations made no later than 16 April 2025. Therefore, shareholders must, in accordance with the respective nominee's routines, in due time before said date request their nominee to carry out such voting rights registration. B. AGENDA FOR THE MEETING PROPOSAL FOR AGENDA 1. Election of the chairperson of the meeting 2. Drawing up and approval of the voting register 3. Approval of the agenda 4. Election of two persons to attest the minutes 5. Determination that the meeting has been duly convened 6. Address by the CEO 7. Presentation of the annual accounts and audit report of the company and the group, and the statement by the auditor on the compliance of the guidelines for remuneration to senior executives 8. Resolution regarding: (a) adoption of the profit and loss account and balance sheet of the company and of the consolidated profit and loss account and consolidated balance sheet of the group (b) allocation of the company’s profit or loss in accordance with the adopted balance sheet and determination of record date for dividend (c) approval of the remuneration report (d) discharge from liability for the members of the board of directors and the managing director 9. Determination of the number of board members 10. Determination of the remuneration to the board members elected by the general meeting 11. Determination of remuneration to the auditors 12. Election of board members (a) Per Bertland (re-election) (b) Nathalie Delbreuve (re-election) (c) Albert Gustafsson (re-election) (d) Kerstin Lindvall (re-election) (e) Joen Magnusson (re-election) (f) Frida Norrbom Sams (re-election) (g) William Striebe (re-election) (h) Kate Swann (re-election) (i) Kate Swann as the chairperson of the board (re-election) 13. Election of auditors 14. Resolution to authorise the board of directors to resolve on a new share issue 15. Resolution on (A) implementation of a long-term share-based incentive program LTI 2025, (B) acquisition and transfer of own shares, alternatively (C) other hedging measures 16. Closing of the Meeting PROPOSALS Item 2 - Drawing up and approval of the voting register The voting list proposed for approval is the voting list drawn up by Computershare AB on behalf of the company, based on the Annual General Meeting's register of shareholders, shareholders having given notice of participation and being present at the meeting venue, and postal votes received. Item 8 (b) - Dividend From the available unappropriated earnings of SEK 15,602,667,729, dividend shall be paid in the total amount of SEK 1.40 per share. Payment shall be made in two instalments of SEK 0.70 per share for the first instalment and SEK 0.70 per share for the second instalment. It is proposed that the record date for the first instalment be 28 April 2025 and for the second instalment 27 October 2025. If the Annual General Meeting resolves to accept this proposal, the first instalment will be due to be paid from Euroclear on 2 May 2025 and the second instalment on 30 October 2025. Item 1, 9 -13 – Election and fees The Election Committee, consisting of the chairperson of the Election Committee Juho Frilander (EQT), Joen Magnusson (own and related holdings), Per Bertland (own and related holdings), Vegard Torsnes (Norges Bank) and Patrica Hedelius (AMF Tjänstepension och Fonder), has submitted the following proposals. Item 1 - The Election Committee proposes the lawyer Madeleine Rydberger, as chairperson of the Annual General Meeting. Item 9 - The board of directors shall consist of eight members and no deputy board members. Item 10 - Fees shall be paid in the amount of SEK 1,150,000 to the chairperson of the board and SEK 550,000 to each of the members of the board. Fees paid to the Audit Committee of the board of directors will be the additional amount of SEK 275,000 to the chairperson of the Committee and SEK 175,000 to the members of the Committee. Fees paid to the Remuneration Committee of the board of directors will be the additional amount of SEK 135,000 to the chairperson of the Committee and SEK 75,000 to the members of the Remuneration Committee. Item 11 - The auditors’ fees shall be paid according to approved invoice. Item 12 – Per Bertland, Nathalie Delbreuve, Albert Gustafsson, Kerstin Lindvall, Joen Magnusson, Frida Norrbom Sams, William Striebe and Kate Swann shall be re-elected as members of the board of directors, until the end of the next Annual General Meeting. Kate Swann shall be re-elected as chairperson of the board of directors. Further information about the proposed board members can be found on the company’s website https://www.beijerref.com/investors/corporate-governance/board-and-group-management. Item 13 – The registered accounting firm Deloitte AB shall be re-elected for a term of office to last until the end of the following Annual General Meeting. If the proposed auditing company is elected, it has been informed that the authorised auditor Richard Peters will be the auditor in charge. Item 14 - Resolution to authorise the board of directors to resolve on a new share issue The board of directors proposes that the general meeting authorise the board of directors to, on one or more occasions during the period up to the next Annual General Meeting, resolve to issue as many new shares as correspond to a maximum of 10 percent of the company’s total number of shares at the time of the resolution. The share issue may be with or without deviation from the shareholders’ preferential rights, by payment in cash, by contribution in kind or by set-off. The purpose of the authorisation and the reason for the deviation from the shareholders’ preferential right is to pursue the company's acquisition strategy by enabling acquisitions by payment in Beijer Ref shares (contribution in kind) or flexibility in the financing of acquisitions. The share issue price shall be determined in accordance with market conditions, which may include customary discounts. Other terms may be resolved by the board of directors. The board of directors, or anyone appointed by the board of directors, shall be authorised to make such minor adjustments of the resolution that may be necessary in connection with registration with the Swedish Companies Registration Office. The proposal is subject to the support of shareholders representing at least two-thirds of the votes cast and the shares represented at the meeting. Item 15 - Resolution on (A) implementation of a long-term share-based incentive program LTI 2025, (B) acquisition and transfer of own shares, alternatively (C) other hedging measures The board of directors of Beijer Ref AB (“Beijer Ref”) proposes that the annual general meeting 2025 resolves to establish a long-term share-based incentive program (“LTI 2025” or the “Program”) for group management and other key individuals with the Beijer Ref group of companies (the “Group”). The proposed program is in all material respects consistent with the previous year’s program, except that the performance period is now uniformly three years (i.e. the interim two year vesting period has been removed) and a sustainability performance target has been introduced. LTI 2025 is a performance-based incentive program with an element of personal financial investment. The performance targets used to assess the outcome of the Program are (i) growth in profit per share and (ii) a measurable sustainability target to reduce Beijer Ref's Scope 3 greenhouse gas emissions, both as further determined by the Board of Directors. Both performance targets have a clear link to the long-term interests of the shareholders. The overall purpose of LTI 2025 is to strengthen the company’s growth by motivating and retaining personnel with key competence. The board of directors is of the opinion that recurring long-term incentive programs are an important part of the Group’s total remuneration package and therefore intends to annually propose incentive programs for approval by the annual general meeting. (A) Resolution on the establishment of LTI 2025 LTI 2025 is proposed to include approximately 150 participants whereof group management (currently 8 persons) and other key individuals of the Group. LTI 2025 comprises a maximum of 470,000 B-shares in Beijer Ref which may be transferred to participants based on performance targets under the terms and conditions of the Program and as dividend compensation in accordance with the terms and conditions of the Program and/or which may be transferred on the market, in order to, in terms of liquidity, hedge costs for the Program, mainly social security contributions and cash settlement in certain countries. Participants and own investment In order to be entitled to participate in LTI 2025, the participants are required to acquire and allocate own B-shares in Beijer Ref to the Program or to allocate shares already held by the participant (and not allocated to other LTI-programs) (hereinafter referred to as “Investment Shares”), as set out below. For each Investment Share, the company will allocate a maximum number of so-called performance share rights, corresponding to the same number of underlying B-shares in Beijer Ref (“Performance Share Rights”). Allocated Performance Share Rights are vested during the duration of the Program based on achieved performance targets. The vested number of Performance Share Rights at the end of the program entitles the holder to receive a corresponding number of B shares in Beijer Ref, free of charge, as follows. Investment Shares may be allocated to LTI 2025 during the period 2 May 2025 – 30 May 2025 (the “Investment Period”). If a participant enters into employment after the Investment Period or if a participant possesses inside information and is therefore prevented from acquiring Investment Shares during the Investment Period, the board of directors shall be entitled to extend or postpone the Investment Period in individual cases, however no later than 31 December 2025. LTI 2025 shall include the following employee categories and the participant may allocate a maximum of the following number of Investment Shares to LTI 2025. Based on the number of Investment Shares, the participant receives the following allocation of a certain number of Performance Share Rights per Investment Share. At the time of this proposal, the maximum number of Investment Shares corresponds in value to approximately 6-10 per cent of the participant’s fixed annual salary. Position Maximum number of Investment Shares (per participant) Allocated Performance Share Rights per Investment Share / Total CEO (1 person) 6,600 9 / 59,400 Part of group management and other key individuals (category A) (around 7 individuals) 1,500 7.5 / 11,250 Part of group management and other key individuals (category B) (around 13 individuals) 750 7.5 / 5,625 Other key individuals (category C) (around 24 individuals) 675 6 / 4,050 Other key individuals (category D) (around 40 individuals) 450 4.5 / 2,025 Other key individuals (category E) (around 65 individuals) 300 3 / 900 Performance targets and vesting Allocated Performance Share Rights are subject to vesting during the term of the Program, with duration up to and including the date of Beijer Ref’s annual general meeting 2028. Allocated shares, together with any dividend compensation as described below, will be distributed to the participant after the annual general meeting 2028. The number of allocated Performance Share Rights that may be vested depends on achievement of performance targets relating to (i) the growth of profit per share[1] (90% weight in the allotment) and (ii) the reduction of emissions (10% weight in the allotment). Prior to the start of the Investment Period, the board of directors will decide on performance targets as described above. This takes place in the form of a minimum target level and a stretch target level relating to (i) each of the financial years 2025, 2026 and 2027 and (ii) minimum target levels and stretch target levels for the entire period 2025–2027 (based on the targets per financial year). If the minimum target level for any performance period is not reached, no Performance Share Rights shall be vested. If the stretch target level for a financial year is reached, one third of the total number of allocated Performance Share Rights shall be vested. If the stretch target level for the entire performance period 2025–2027 is achieved, the entire number of allocated Performance Share Rights shall be vested. If the outcome falls between the minimum and stretch target level in any case, the profit shall be calculated linearly. The participant’s individual vesting of allocated Performance Share Rights is thereby determined as the highest of the outcome for each individual financial year 2025, 2026 and 2027 compared to the entire performance period 2025–2027. Receiving B-shares in Beijer Ref Each Performance Share Right vested entitles the participant to receive allotment and payment of one share of series B in Beijer Ref, free of charge. The number of vested Performance Share Rights and the corresponding allotment of shares is determined by the board of directors in connection with the company’s year-end report for 2025, 2026, 2027, respectively, based on the terms and conditions of the Program, but subject to continued vesting up to and including the annual general meeting 2028. In addition, a dividend compensation is received corresponding to the share dividend during the vesting period on the allotted number of shares up to and including the time of payment. The company shall have the right to pay the dividend compensation in cash or in shares of series B, where the number of shares is determined based on the closing price during the first day the share is traded without the right to (first) dividend in 2026, 2027 and 2028, respectively. Example: An employee in category C has invested in and allocated 675 Investment Shares to LTI 2025. The employee can thus vest a maximum of 4,050 Performance Share Rights, either a maximum of 1,350 per financial year 2025, 2026 and 2027 or a maximum of 4,050 for the period 2025–2027. The employee’s individual vesting of allocated Performance Share Rights is determined as the highest of the outcome for each individual financial year 2025, 2026 and 2027 compared to the entire performance period 2025–2027. The number of vested Performance Share Rights and the corresponding allotment of shares is subject to continued vesting up to and including the annual general meeting 2028 and will be distributed to the participant thereafter. A condition for receiving allotment and payment of shares is that the Participant has retained all of his/her Investment Shares up to and including the annual general meeting 2028, and at such date remains employed by the Group and has not terminated his/her employment (with customary exceptions). The number of B shares that each Performance Share Right may entitle the participant to receive shall be subject to recalculation due to corporate events such as new issues, splits, mergers or similar dispositions. Performance Share Rights are not transferable or possible to pledge. Preparation and administration The board of directors shall be responsible for preparing the details of the terms and conditions of LTI 2025, in accordance with the mentioned terms and guidelines. The board of directors shall be entitled to make reasonable adjustments to meet specific regulations or market conditions abroad, such as deviating from the investment requirement and/or offering cash settlement to participants. To this end, the board of directors shall have the right to implement an alternative incentive arrangement for employees in such countries where participation in LTI 2025 is not appropriate, whereby the alternative arrangement shall, as far as practically possible, correspond to the terms and conditions of LTI 2025. The board of directors shall also be entitled to make other reasonable adjustments if there are significant changes to the Group’s operations, external factors or similar, that would lead to that the decided terms and conditions of LTI 2025 are no longer appropriate. Such adjustments also include the right for the board of directors to resolve on a reduction of the allocation of shares if, taking into account Beijer Ref’s results and financial position, the Group’s development in general and the conditions on the stock market, the allocation would be clearly unreasonable. In the event that the board of directors considers that delivery of shares under LTI 2025 in any individual case cannot be made at reasonable costs, with reasonable administrative efforts or due to specific market conditions or specific rules, participants may instead be offered cash settlement. Participation in LTI 2025 requires that the participation can legally take place and that the participation, according to Beijer Ref’s assessment, can be carried out with reasonable costs. In the event of a public takeover bid, sale of the company’s business, liquidation, merger or similar events, the board of directors shall be entitled to resolve that the Performance Share Rights shall be (fully or partially) vested and shares allotted in connection with the completion of such transaction. The board of directors shall make this decision based on the level of achievement of the performance targets, the remaining duration of the Program and other factors deemed relevant by the board of directors. Scope and cost of the program LTI 2025 comprises a maximum of 470,000 shares of series B which corresponds to approximately 0.09 percent of the total outstanding shares in the company. The costs for LTI 2025, which are reported in the income statement, are calculated in accordance with the accounting standard IFRS 2 and UFR 7 and are accrued over the vesting period. The calculation has been carried out with the following assumptions: (i) a share price for Beijer Ref’s B-shares of SEK 160.50 upon implementation of the program (corresponding to the closing price on 28 February 2025), (ii) an annual share price increase for Beijer Ref’s B-share of 10 per cent per year, (iii) an annual dividend based on the consensus estimate 2025–2027, (iv) full participation in the program and (v) average social security contributions of 25 per cent. Furthermore, assuming an average achievement of the performance targets of 50 per cent and an annual employee turnover of 10 per cent, this entails an estimated accounting cost for LTI 2025 of approximately SEK 35.6 million, of which approximately SEK 9.0 million relates to social security contributions. At maximum fulfillment of the performance targets and an annual share price increase of 20 per cent, the corresponding cost is approximately SEK 76.2 million, of which SEK 23.0 million relates to social security contributions. In the scenarios described, LTI 2025 would affect profit per share by SEK -0.02 and SEK -0.04 per share, respectively on pro forma basis for 2024. The board of directors intends to present fulfilment of performance-based conditions in its future Annual Reports and Remuneration Reports. The board of directors considers that the positive results expected to arise from executives and other key individuals increasing their shareholding through LTI 2025 outweigh the costs attributable to LTI 2025. Hedging measures and dilution The board of directors proposes that the general meeting as a main alternative resolves that the company’s obligations in connection with LTI 2025 are fulfilled through acquisition and transfer of own shares in accordance with item (B) below. In the event that the required majority for item (B) below cannot be met, the board of directors proposes that Beijer Ref shall be able to enter into so-called share swap agreement with a third party, in accordance with item (C) below. None of the hedging alternatives entail an increase in the number of shares in the company and consequently no dilution effect in the number of issued shares will arise for existing shareholders. (B) Resolution on authorisation for the board of directors to resolve on acquisition of own shares and transfer of own shares to participants in the Program. (i) Acquisition of own shares In order to ensure Beijer Ref’s delivery of shares to participants in both LTI 2025 and any future incentive programs, as well as to secure the payment of future social security contributions attributable to the delivery of shares, the board of directors proposes that the annual general meeting resolves to authorise the board of directors to acquire a maximum of 470,000 shares of series B in the company before the annual general meeting 2026. Acquisitions shall take place at Nasdaq Stockholm in accordance with Nasdaq Stockholm’s rulebook at a price within the price range registered at any time. Acquisitions shall be paid for in cash and may take place on one or several occasions. (ii) Transfer of repurchased shares to participants in the Program In the view of LTI 2025, the board of directors proposes that the annual general meeting resolves to transfer shares in Beijer Ref as follows. A maximum of 470,000 B-shares may be transferred. The right to acquire B-shares shall, with deviation from the preferential rights of the shareholders, be granted to the persons participating in LTI 2025, with the right for each participant to acquire a maximum number of shares that follows from the terms and conditions of LTI 2025. Transfer of B-shares to participants in LTI 2025 shall be made free of charge at the time and on the terms and conditions of LTI 2025 that participants in LTI 2025 are entitled to be allotted shares. The number of shares that may be transferred shall be recalculated in the event of an intervening bonus issue, share split, rights issue and similar corporate actions. The transfer of own shares is part of the proposed LTI 2025 and the board of directors considers it to be beneficial to the company and the shareholders that participants in the Program are offered the opportunity to become shareholders in the company under the terms and conditions of LTI 2025. Since LTI 2025 is initially not expected to give rise to a need for cash settlement or payment of social security contributions, the board of directors has decided not to propose to the annual general meeting 2025 to resolve on transfers of own shares on a regulated market to secure such payments in terms of liquidity. However, before any transfers of Beijer Ref shares take place to participants in LTI 2025, the board of directors may propose to a later general meeting to resolve that transfers may be made of own shares on a regulated market to secure such payments. (C) Share swap agreement with a third party The board of directors proposes that the general meeting, in the event that a sufficient majority according to item (B) above cannot be met, resolves to hedge the financial exposure that LTI 2025 is expected to entail by Beijer Ref being able to enter into a so-called share swap agreement with third party on market terms, whereby the third party in its own name shall be able to acquire and transfer shares in Beijer Ref to the participants. *** For a description of the company’s other ongoing incentive programs, please refer to note 6 in the annual report for 2024 and the board’s remuneration report for 2024. In addition to the programs described therein, there are no other long-term incentive programs in the company. LTI 2025 has been prepared by the remuneration committee of the board of directors, discussed at board meetings and prepared with external advisors. The resolution of the meeting under item (A) above requires a majority of more than half of the votes cast. For a valid resolution under item (B) above, the resolution must be supported by shareholders holding at least nine tenths of both the votes cast and the shares represented at the meeting. A valid resolution in accordance with the proposal under item (C) above requires a majority of more than half of the votes cast. The resolution of the meeting on LTI 2025 under item (A) above is conditional upon the general meeting either resolving in accordance with the board of directors’ proposal under item (B) above or in accordance with the board of directors’ proposal under item (C) above. C. AVAILABLE DOCUMENTS ETC The Election Committee’s reasoned statement, proxy form and postal voting form are available at the company’s website, https://www.beijerref.com/annual-general-meeting/annual-general-meeting-2025. The accounting documents, the auditors’ report and other documents to be held available for shareholders according to the Swedish Companies Act, will be available at the company and on the company’s website no later than three weeks before the AGM. The documents will be distributed free of charge to shareholders who so request and state their postal address. At the time of publication of this notice, the total number of shares in the company is 509,085,926 representing a total of 760,639,526 votes, of which 27,950,400 are shares of series A, representing 279,504,000 votes, and 481,135,526 are shares of series B, representing an equal amount of votes, of which 2,180,400 shares of series B are held by the company which may not be represented at the meeting. D. SHAREHOLDERS’ RIGHT TO REQUEST INFORMATION The board of directors and the managing director shall, if any shareholder so requests, and if the board of directors considers that this can be done without significant harm for the company, give information on circumstances that may affect the judgement of an item on the agenda, circumstances that may affect the judgement of the company’s or subsidiary’s financial situation and the company's relationship with other group companies. E. PROCESSING OF PERSONAL DATA For information on how your personal data is processed, see https://www.euroclear.com/dam/ESw/Legal/Privacy-notice-bolagsstammor-engelska.pdf. If you have questions regarding our processing of your personal data, you can contact us by emailing info@beijerref.com. Beijer Ref AB (publ) has corporate ID no. 556040-8113 and the Board’s registered office is in Malmö. _________________________ Malmö, March 2025 The Board of Directors Beijer Ref AB (publ) [1] Profit per share after dilution excluding items affecting comparability.
Beijer Ref completes the acquisition of Cool4U
Beijer Ref has completed the transaction of leading Hungarian HVAC distributor Cool4U. In June 2024, Beijer Ref signed a binding agreement to acquire 80% of the shares in Cool4U, with an option to acquire the remaining share. The Hungarian Competition Authority has now unconditionally approved the acquisition of the business and thus the transaction was subsequently completed. Cool4U, which is headquartered in Szarvas (Hungary), will continue to operate under its own brand. The business will be included in the Beijer Ref Group's accounts as of January 3, 2025. Malmö, January 3, 2025 Beijer Ref AB (publ) For more information, please contact: Joel Davidsson CFO Phone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Phone +46 40-35 89 00 Email nwd@beijerref.com
Change in the number of shares and votes in Beijer Ref
In accordance with Beijer Ref AB's Articles of Association, shareholders of series A-shares have the right to convert such shares to series B-shares. Such conversion reduces the total number of votes in the company. During October 2024, 5,760 series A-shares were converted to series B-shares at the request of shareholders. Accordingly, the total number of votes in the company thereafter amounts to 760,639,526. The total number of shares in the company amounts to 509,085,926, of which 27,950,400 are series A-shares and 481,135,526 are series B-shares. For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the Swedish Financial Instruments Trading Act (1991:980). The information was submitted for publication, through the agency of the contact person, on 31-10-2024 08:30 CET.
Nomination Committee appointed for Beijer Ref AB:s Annual General Meeting 2025
In accordance with the decision by the Annual General Meeting, Beijer Ref Nomination Committee shall consist of five members. The members should be one representative of each of the five largest shareholders in terms of voting rights based on the known shareholding as per the last trading day in August, that wish to participate in the committee. This year’s Nomination Committee consists of the following members: Juho Frilander (EQT) Joen Magnusson (own and related parties’ holdings) Per Bertland (own and related parties’ holdings) Vegard Torsnes (Norges Bank) Patricia Hedelius (AMF Tjänstepension och Fonder) Juho Frilander has been appointed Chairperson of the Nomination Committee. The Nomination Committee will prepare proposals for the Annual General Meeting in 2025 regarding Board members, Chairperson of the Board of Directors, Chairperson of the Annual Meeting, Auditors, remuneration of the Board of Directors, the Auditors, Committee work, and to the extent deemed necessary, proposal regarding amendments of the current instruction for the Nomination Committee. The Annual General Meeting will be held on April 24, 2025, in Malmö. Shareholders who wish to contact the Nomination Committee to propose candidates for election as members of the Beijer Ref Board of Directors should contact Juho Frilander, EQT, telephone: +358 969 62 470, or e-mail: juho.frilander@eqtpartners.com or info@beijerref.com. Malmö, October 16, 2024 For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Beijer Ref acquires leading air conditioning company in Spain
Beijer Ref has signed an agreement to acquire 75 per cent of the shares in GIA Group, with an option to acquire the remaining shares. GIA Group is an air conditioning company and one of Spain’s largest distributors with several own strong brands. The turnover during the completed fiscal year 2023 amounted to SEK 1.1 billion with good profitability. GIA Group was founded in 2000 and has since established itself as a leading entity in Spain in the development of high-performance and innovative air conditioning products. The company provides a professional team that possesses great expertise and has many years of experience in the industry. GIA Group is headquartered in Barcelona (Spain) and will continue to operate under its own brand, in both distribution and marketing. The acquisition is expected to have a minor positive impact on Beijer Ref’s result. GIA Group employs approximately 100 people. Christopher Norbye, CEO Beijer Ref, comments: “We are pleased to welcome GIA Group to the Beijer Ref Group. Their innovative products will be a strong complement to our existing range. The acquisition aligns with Beijer Ref’s overall acquisition strategy and provides us with access to many strong brands in Southern Europe. With GIA Group’s good prospects for continued growth, we look forward to realising significant synergies and further developing the company together with the existing management.†Malmö, 2 August, 2024 Beijer Ref AB (publ) For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Record quarter with positive organic growth and strong profitability
"After a stable start to the year, we reported a good performance in the second quarter. This resulted in our best quarter ever, with record profitability. The group's total sales amounted to SEK 9,681 million, which corresponds to an increase of 12 per cent. Both EBITA and EBITA margin performed well, with a result of SEK 1,148 million (corresponding to an increase of 13 per cent) and 11.9 per cent respectively. Organic sales increased by 2 per cent over the period. We reported a positive operating cash flow of SEK 354 million (-196), despite negative seasonal effects,” says CEO Chritopher Norbye. Webcast and Telephone conference Q2 2024 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the second quarter of 2024. The presentation will be held in english and lasts for about 20 minutes. The meeting is on July 19, at 10.00 CET. If you wish to participate via webcast, please use the following link: https://ir.financialhearings.com/beijer-ref-q2-report-2024/register If you wish to participate via teleconference, please register on the below link: https://conference.financialhearings.com/teleconference/?id=50049043 After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. A presentation will be available on the company’s website www.beijerref.com from 08.30 on July 19, 2024. This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the CEO assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. Media contact: Niklas Willstrand Director of Global Communications Telephone 040-35 89 00 Email nwd@beijerref.com IR Joel Davidsson CFO Telephone 040-35 89 00 Email jdn@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 19-07-2024 08:30 CET.
Beijer Ref acquires leading HVAC distributor in Hungary
Beijer Ref has signed an agreement to acquire 80 per cent of the shares in Cool4U, with an option to acquire the remaining shares. Cool4U is a leading HVAC distributor in Hungary, providing solutions for both residential and commercial projects. The company has an annual turnover of approximately SEK 500 million and with good profitability. Founded in 2001, Cool4U is headquartered in Szarvas (Hungary) and offers a comprehensive product range within the HVAC sector. With many years of experience, they provide a professional and dedicated team committed to ensuring the highest quality and customer satisfaction. Cool4U will continue to operate under its own brand, in both distribution and marketing. The acquisition is expected to have a minor positive impact on Beijer Ref’s results. The parties have signed a binding agreement; however, the transaction needs to be approved by the competition authority in Hungary and an FDI (Foreign Direct Investment) screening will also be carried out as conditions of closing. Christopher Norbye, CEO Beijer Ref, comments: "Cool4U has strong brand recognition in the region and further enhances our offering in the HVAC sector. The company’s wide range of products, coupled with their extensive experience and dedication, allows us to provide even more solutions to our customers. The acquisition supports our acquisition strategy to diversify our product portfolio and extend our market presence. We look forward to continuing to develop the company and its brand together with the existing management team." Malmö, June 19, 2024 Beijer Ref AB (publ) For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Exercise of Beijer Ref call options LTIP 2021/2024
As part of its incentive program LTI 2021/2024, Beijer Ref AB (publ) has in May 2021 issued 1,476,000 call options to management and key employees with expiration date 14 June 2024. Following recalculations made due to the rights issue in 2023, the call options correspond to 1,623,000 underlying shares of series B and the recalculated exercise price is SEK 150.40 per share. As an alternative to the exercise of the call options and as approved by the extraordinary general meeting on 22 May 2024, Beijer Ref has offered to repurchase call options at market value, calculated based on the share price average 31 May-7 June 2024, and accordingly determined to SEK 20.51 per option. Upon the expiration of the call options on 14 June, 86,000 call options have been exercised for 94,600 shares of series B. Following the settlement hereof, Beijer Ref continues to hold 2,180,400 own shares of series B. Further, 1,369,000 call options have been repurchased by Beijer Ref. Each selling option holder has undertaken to reinvest the purchase price received (net of taxes) in Beijer Ref shares. For more information, please contact: Joel Davidsson CFO Telefon: +46 40-35 89 00 Email jdn@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Resolutions at the Extraordinary General Meeting in Beijer Ref on 22 May 2024
The extraordinary general meeting of Beijer Ref AB (publ) today made the following resolutions. Repurchase of call options in LTIP 2021/2024 The meeting resolved in accordance with the board of directors’ proposal to offer to repurchase all 1,623,600 call options in LTIP 2021/2024 as of 10 June 2024 at a price per option that corresponds to the volume-weighted average price of the share during the period of 31 May – 7 June 2024 according to Nasdaq Stockholm’s official price list minus the exercise price, subject to the condition that the participant shall acquire shares in Beijer Ref for the proceeds received net after tax. The call options have an exercise price of SEK 150.40 per share and may be exercised during the period 1-14 June 2024. The purpose of the repurchase of the call options is to facilitate for employees to realise the potential value of the options and thereby also, among other things, facilitate participation in future incentive programs. Previously repurchased shares remain for hedging of remaining and future incentive programs. Minutes with complete resolutions from the meeting will be made available on the company’s website, www.beijerref.com no later than 5 June 2024. For more information, please contact: Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com
Beijer Ref’s annual report and sustainability report 2024
Beijer Ref's annual report and sustainability report for 2024 is now available for download on Beijer Ref's website www.beijerref.com. Printed copies of the annual report can be ordered at the following email: info@beijerref.com Malmö, 2 April 2025 Beijer Ref AB (publ) For more information, please contact: Joel Davidsson CFO Telephone: +46 40-35 89 00 Email: jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone: +46 40-35 89 00 Email: nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.comThis disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 02-04-2025 14:00 CET.
Beijer Ref’s annual report and sustainability report 2023
Beijer Ref's annual report and sustainability report for 2023 is now available for download on Beijer Ref's website www.beijerref.com. Printed copies of the annual report can be ordered at the following email: api@beijerref.com Malmö, 28 March 2024 Beijer Ref AB (publ) For more information, please contact: Joel Davidsson CFO Telephone: +46 40-35 89 00 Email: jdn@beijerref.com Niklas Willstrand Director of Global Communications Telephone: +46 40-35 89 00 Email: nwd@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 45 countries in Europe, North America, Africa and Asia and Oceania. Website: www.beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 28-03-2024 11:35 CET.
Annual report and sustainability report 2022
Beijer Ref's Annual report and sustainability report for 2022 is now available for download on Beijer Ref's website www.beijerref.com. Printed copies of the annual report kan be ordered at the following email adress api@beijerref.com. Malmö, April 4, 2023 For more information, please contact: Christopher Norbye CEO Telephone: +46 40-35 89 00 Email: cne@beijerref.com Ulf Berghult CFO Telephone: +46 40-35 89 00 Email: ubt@beijerref.com Niklas Willstrand Global Corporate Communications Manager Telephone: +46 40-35 89 00 Email: nwd@beijerref.com About Beijer Ref BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 43 countries in Europe, North America, Africa and Asia and Oceania. This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 04-04-2023 14:00 CET.
Annual report and Sustainability report 2021
Beijer Ref´s Annual report and Sustainability report for 2021 is now available on www.beijerref.com. The printed version will be available in April. Malmö, 17 March 2022 Beijer Ref AB (publ) For further information, please contact: Christopher Norbye, CEO Telephone +46 40-35 89 00 Email cne@beijerref.com Ulf Berghult, CFO Telephone +46 40-35 89 00 Email ubt@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 41 countries in Europe, Africa, Asia and Oceania. www.beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 17-03-2022 16:53 CET.
Annual report 2020
Beijer Ref´s Annual Report for 2020 is now available on www.beijerref.com. The printed version will be available in April. Malmö, 25 March 2021 Beijer Ref AB (publ) For further information, please contact: Per Bertland, CEO Telephone +46 40-35 89 00 Email pbd@beijerref.com Maria Rydén, CFO Telephone +46 40-35 89 00 Email mrn@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 37 countries in Europe, Africa, Asia and Oceania. www.beijerref.com
Annual report 2019
Beijer Ref´s Annual Report for 2019 is now available on www.beijerref.com. The printed version will be available in April. Malmö, 26 March 2020 Beijer Ref AB (publ) For further information, please contact: Per Bertland, CEO Telephone +46 40-35 89 00 Email pbd@beijerref.com Maria Rydén, CFO Telephone +46 40-35 89 00 Email mrn@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 36 countries in Europe, Africa, Asia and Oceania. www.beijerref.com
Annual report 2018
Beijer Ref´s Annual Report for 2018 is now available on www.beijerref.com. The printed version will be available the first week in April. Malmö, 20 March 2019 Beijer Ref AB (publ) For further information, please contact: Per Bertland, CEO Telephone +46 40-35 89 00 Email pbd@beijerref.com Maria Rydén, CFO Telephone +46 40-35 89 00 Email mrn@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 36 countries in Europe, Africa, Asia and Oceania. www.beijerref.com
Annual report 2017
Beijer Ref´s Annual Report for 2017 is now available on www.beijerref.com. The printed version will be available the first week in April. Malmö, 15 March 2018 Beijer Ref AB (publ) For further information, please contact: Per Bertland, CEO Telephone +46 40-35 89 00 Email pbd@beijerref.com Maria Rydén, CFO Telephone +46 40-35 89 00 Email mrn@beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 34 countries in Europe, Africa, Asia and Oceania. www.beijerref.com
Annual report 2016
Beijer Ref´s Annual Report for 2016 is now available on www.beijerref.com. The printed version will be available the first week in April. Malmö, 14 March 2017 Beijer Ref AB (publ) For further information, please contact: Per Bertland, CEO Telephone +46 40-35 89 00 or Jonas Lindqvist, CFO Telephone +46 40-35 89 00 BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 33 countries in Europe, Africa, Asia and Oceania. www.beijerref.com
A good quarter with strong earnings growth
“The group's total sales during the quarter amounted to SEK 8,898 million, with an EBITA of SEK 832 million – an increase of 16 and 13 per cent respectively compared with the corresponding period last year. The quarter had good profitability with an EBITA margin of 9.4 per cent. A strong growth in EPS of 20 per cent indicates good underlying profitability. Organic sales growth was 4 per cent in the quarter,” says CEO Christopher Norbye. Webcast and Telephone conference Q1 2025 The company invites investors, analysts, and the media to attend a combined webcast and telephone conference, during which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the first quarter of 2025. The presentation will be held in English and will last approximately 20 minutes. The meeting will take place on 24 April at 09:00 CET. Link to the webcast and telephone conference is available on the company’s website:https://www.beijerref.com/cal/webcast-q1-2025 A presentation will be available on the company’s website https://www.beijerref.com/investors/reports-and-presentations/interim from 07:30 CET on 24 April. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö 24 April, 2025 Beijer Ref AB (publ) Christopher Norbye, CEO Contact: IR Joel Davidsson CFO Telephone +4640 35 89 00 Email jdn@beijerref.com Media contact Niklas Willstrand Director of Global Communications nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 24-04-2025 07:30 CET.
Record cash flow and a good organic growth trend in 2024
"During the full year 2024, the Group continued to perform well, and we conclude a year with a good organic growth trend. Sales and EBITA, excluding items affecting comparability, increased by 11 and 11 per cent respectively and the EBITA margin, excluding items affecting comparability, amounted to 10.6 per cent. Operating cash flow for 2024 was record high and amounted to SEK 3,464 million. During the year, five new companies were integrated into the business, further strengthening our position as a leading global player within HVAC and cooling technology," says CEO Christopher Norbye. Webcast and Telephone conference Q4 2024 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the fourth quarter of 2024. The presentation will be held in English and lasts for about 20 minutes. The meeting is on January 31, at 10.00 CET. Link to the webcast and telephone conference is available on the company’s website: https://www.beijerref.com/cal/webcast-q4-2024 A presentation will be available on the company’s website https://www.beijerref.com/investors/reports-and-presentations/interim from 08:00 on January 31. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö, 31 January 2025 Beijer Ref AB (publ) Christopher Norbye, CEO Contact: IR Joel Davidsson CFO Telephone +46 40-35 89 00 Email jdn@beijerref.com Media Niklas Willstrand Director of Global Communications Telephone +46 40-35 89 00 Email nwd@beijerref.comThis disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 31-01-2025 08:00 CET.
Stable quarter with good profitability
"We leave behind us a stable quarter, with sales growth in all operating segments together with continued good profitability. The Group's total sales amounted to SEK 9,493 million, corresponding to a growth of 12 per cent. EBITA amounted to SEK 1,084 million, corresponding to an increase of 13 per cent, and the EBITA margin was 11.4 per cent (11.3). Organic sales increased by 3 per cent during the period. A good operating cash flow of SEK 1,231 million continues to support expansionary possibilities in the market," says CEO Christopher Norbye.
Record quarter with positive organic growth and strong profitability
"After a stable start to the year, we reported a good performance in the second quarter. This resulted in our best quarter ever, with record profitability. The group's total sales amounted to SEK 9,681 million, which corresponds to an increase of 12 per cent. Both EBITA and EBITA margin performed well, with a result of SEK 1,148 million (corresponding to an increase of 13 per cent) and 11.9 per cent respectively. Organic sales increased by 2 per cent over the period. We reported a positive operating cash flow of SEK 354 million (-196), despite negative seasonal effects,” says CEO Chritopher Norbye. Webcast and Telephone conference Q2 2024 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the second quarter of 2024. The presentation will be held in english and lasts for about 20 minutes. The meeting is on July 19, at 10.00 CET. If you wish to participate via webcast, please use the following link: https://ir.financialhearings.com/beijer-ref-q2-report-2024/register If you wish to participate via teleconference, please register on the below link: https://conference.financialhearings.com/teleconference/?id=50049043 After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. A presentation will be available on the company’s website www.beijerref.com from 08.30 on July 19, 2024. This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the CEO assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. Media contact: Niklas Willstrand Director of Global Communications Telephone 040-35 89 00 Email nwd@beijerref.com IR Joel Davidsson CFO Telephone 040-35 89 00 Email jdn@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 19-07-2024 08:30 CET.
Solid start to the year with good profitability and positive cash flow
“The group’s total sales during the quarter amounted to SEK 7,680 million, which is an increase of 4 per cent compared with the same period last year. EBITA amounted to SEK 733 million, which is an increase of 4 per cent compared with the same period last year. The EBITA margin was in line with the same period last year and amounted to 9.5 per cent. The quarter was affected by high comparative figures and two fewer trading days. Organic sales amounted to -4 per cent (+15%), mainly related to negative growth in HVAC of 7 per cent (+17%). Despite high comparative figures, OEM reported good organic growth of 9 per cent (+24%). Commercial and industrial refrigeration had a slight negative organic growth of 3 per cent (+10%). Towards the end of the quarter, we noted a normalization of the high comparative figures. A controlled inventory build-up, adapted to seasonal variations, contributed to a strong operational cash flow of SEK 582 million,†says CEO Christopher Norbye. Webcast and Telephone conference Q1 2024 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the first quarter of 2024. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 23 April, at 13.00 CET. If you wish to participate via webcast please follow this link: Beijer Ref Q1 Report 2024 (financialhearings.com) If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. Call Access (financialhearings.com). A presentation will be available on the company’s website www.beijerref.com from 12.00 on April 23, 2024. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö April 23, 2024 Beijer Ref AB (publ) Christopher Norbye, CEO For more information, please contact: Niklas Willstrand Director of Global Communications Telephone +4640-35 89 00 Email nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-04-2024 12:00 CET.
Beijer Ref Q4 2023
In summary, we closed an eventful 2023 in which we grew sales by 42 per cent and EBITA, excluding items affecting comparability, by 53 per cent. Sales during the quarter amounted to SEK 7,627 million, which is an increase of 31 per cent compared with the corresponding period the previous year. EBITA before items affecting comparability amounted to SEK 721 million, which is an increase of 26 per cent compared to the corresponding period the previous year. The EBITA margin, excluding items affecting comparability, was 9.5 per cent compared with 9.8 per cent the previous year. There was a negative effect on EBITA during the quarter caused by high acquisition-related costs of approximately SEK 25 million,†says CEO Christopher Norbye. Webcast and Telephone conference Q4 2023 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Joel Davidsson will present the interim report for the fourth quarter of 2023. The presentation will be held in English and lasts for about 20 minutes. The meeting is on January 31, at 10.00 CET. If you wish to participate via webcast please follow this link: Beijer Ref Q4 Report 2023 (financialhearings.com) If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. Call Access (financialhearings.com) A presentation will be available on the company’s website www.beijerref.com from 08:40 on January 31. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö, 31 January, 2024 Beijer Ref AB (publ) Christopher Norbye, CEO For more information, please contact: Niklas Willstrand Director of Global Communications Telephone +4640-35 89 00 Email nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 31-01-2024 08:30 CET.
Beijer Ref Q3 2023
"Compared with the same period last year, total sales increased by 42 per cent. Operating profit (EBITA) amounted to SEK 959 million, which is an increase of 54 per cent over the same period last year. Operating margin (EBITA margin) was 11.3 per cent, marking a 90-basis point increase compared to the same period previous year (10.4 per cent). Given the high comparison figures (19 per cent), as well as one fewer sales day, underlying organic sales were slightly negative. However, we noted good margins and a strong cash flow," says CEO Christopher Norbye. Webcast and Telephone conference Q3 2023 The company invites investors, analysts and the media to attend a combined webcast and telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the third quarter of 2023. The presentation will be held in English and lasts for about 20 minutes. The meeting is on October 24, at 10.00 CET. If you wish to participate via a telephone conference, please register using the following link. After registration, you will receive a phone number, a conference ID and a user ID to log into the conference. During the telephone conference, you will have the opportunity to ask questions. To follow the live webcast, please register using the following link. A presentation will be available on the company’s website www.beijerref.com from 08:30 on October 24. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has been subject to a general review by the company’s auditor. Malmö, October 24, 2023 Beijer Ref AB (publ) Christopher Norbye, CEO For more information, please contact: Niklas Willstrand Global Corporate Communications Manager Telefon 040-35 89 00 E-post nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 24-10-2023 08:30 CET.
Beijer Ref Q2 2023
"Total sales increased by 46 per cent compared with the same period last year, of which 2 per cent was organic. Commercial and industrial cooling/heating and HVAC reported stable development, while OEM continued its strong trend from the first quarter and reported organic growth of 19 per cent. Operating profit (EBITA) amounted to SEK 1 016 million, which is an increase of 64 per cent over the same period last year. Operating margin (EBITA margin) amounted to 11.7 per cent. Overall, sales, profit and operating margin are Beijer Ref’s highest ever in one quarter", says Christopher Norbye, CEO. Teleconference Q2 2023 The company invites investors, analysts and the media to attend a web meeting at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the second quarter of 2023. The presentation will be held in English and lasts for about 20 minutes. The meeting is on July, 20, at 10.00 CET. The presentation can be followed live on this link: Beijer Ref Q2 Report 2023 (financialhearings.com) If you wish to participate via teleconference please register on the following link: Call Access (financialhearings.com). After registration, you will be provided with a phone number, a conference ID and a user ID to access the conference. You will be able to ask questions via the teleconference. A presentation will be available on the company’s website www.beijerref.com from 08:30 on 20 July. This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. For further information, please contact: Ulf Berghult CFO Telephone 040-35 89 00 Email ubt@beijerref.com Niklas Willstrand Global Corporate Communications Manager Telephone 040-35 89 00 Email nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 20-07-2023 08:30 CET.
Beijer Ref Q1 2023
First quarter • Organic sales increased 14.5 per cent in the quarter compared to the previous year. Acquisition effects amounted to 30.2 per cent and currency effects were 5.8 per cent. Net sales increased by 50.5 per cent and amounted to SEK 7,378 million (4,903). • EBITA amounted to SEK 702 million (407), which is an increase of 72.4 per cent compared to the same period last year. The EBITA margin amounted to 9.5 per cent (8.3). • This is Beijer Ref’s best first quarter ever, excluding items affecting comparability, in both absolute terms and margin, based on the current structure. • The first quarter includes non-recurring costs related to the temporary financing regarding the acquisition of the North American operation Heritage Distribution of SEK 138 million, which is reported under the item “Net financial income/expenseâ€. • Operating cash flow amounted to SEK -209 million (-295) during the quarter. Operating cash flow in the quarter was still affected by the effects of the unstable supply chain in 2022. • Profit per share after dilution, and adjusted for items affecting comparability in the net financial income/expense, amounted to SEK 1.08 (0.65), which is an increase of 66.6 per cent. • The previously announced acquisitions of the HVACR company Heritage Distribution (North America), as well as Transport Cooling (South Africa) were completed in the first quarter. Heritage Distribution was completed and consolidated per January 20. • The announced rights issue was completed during the quarter. The rights issue was subscribed to 99.7 per cent with the support of subscription rights. Other shares were allotted to those who subscribed for shares without subscription rights. Overall, the rights issue was oversubscribed by 44 per cent. CEO comments During the first quarter, we have continued to build on the success of 2022. All markets have shown positive growth and total sales amounted to SEK 7,378 million, which is an increase of 50 per cent over the same period last year, with organic growth of 15 per cent. Operating profit (EBITA) amounted to SEK 702 million, which is an increase of 72 per cent compared to the same period last year. All segments recorded strong organic growth: HVAC 17 per cent, OEM 24 per cent and Commercial and Industrial Refrigeration 10 per cent. During the quarter, we continued to have good demand for air/air (AC products), primarily for heating. Increased awareness of energy efficiency and improved indoor environments are contributing factors. Also, the rising electricity prices in Europe have led to more and more people starting to see the cost benefits of using air/air as a complement to heating. We continue to focus on creating simple and seamless e-commerce experiences for our customers, resulting in increased sales and customer satisfaction. During the quarter, our digital sales continued their very good growth and we have had good development on both existing and new e-commerce platforms. Sales increased by 40 per cent, compared with the same period last year. Uncertain supply chains are something the industry is still struggling with and which have had a negative impact on our warehouse stocks; we continue to see improvements, especially regarding lead times for products and components. We expect a normalisation of warehouse stocks, adjusted for our seasonal variations, in the second half of 2023. I am pleased to inform that during the quarter (January 20) we completed the acquisition of the North American HVAC company Heritage Distribution, subject to customary completion conditions. This acquisition is an important step for Beijer Ref and reflects our commitment to expanding our global reach and meeting the needs of our customers in all corners of the world. Heritage Distribution has been integrated in line with our expectations and reported good development in the first quarter. The integration of AAD (Australia) has also gone according to plan. The Beijer Ref Exchange Programme for 2023 has been concluded. The programme has enabled participants to gain valuable insights from other parts of the organisation, learn new skills and build relationships with colleagues from different countries. A big thank you to all participants whose contributions have been crucial to the success of the program. Finally, I would like to take this opportunity to welcome Heritage Distribution to the Beijer Ref family. They have an ambitious and dedicated team that brings many years of industry experience. Europe and the North America are now moving towards their summer season and, with a well thought-out strategy behind us and purposeful employees, we continue to create good conditions for long-term growth. CEO Christopher Norbye Telephone conference Q1 2023 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the first quarter of 2023. The presentation is held in English. The meeting is on April 25 at 13.30 CET. Connect to the presentation at the link below. Webcast: https://financialhearings.com/event/46503 To participate in the telephone conference, call the number: SE: +46 8 505 163 86 US: +1 412 317 6300 UK: +44 20 319 84884 Pin code: 9905201# The presentation will also be available on the company’s website www.beijerref.com from 12.00 on April 25. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö April 25, 2023 Beijer Ref AB (publ) Christopher Norbye, CEO For more information on this report: Ulf Berghult, CFO Telephone 040-35 89 00 E-mail ubt@beijerref.com Niklas Willstrand, Global Corporate Communications Manager Telephone 040-35 89 00 E-mail nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25-04-2023 12:00 CET.
Beijer Ref Q4 2022
Fourth quarter • Organic sales rose 17.9 per cent in the quarter compared to the previous year. Acquisition effects amounted to 8.9  per cent and currency effects were 9.3 per cent. Net sales increased by 36.2 per cent and amounted to SEK 5,818 million (4,271). • EBITA before items affecting comparability amounted to SEK 570 million (338), which is an increase of 69 per cent compared to the same period the previous year. The EBITA margin amounted to 9.8 per cent (7.9). • This is Beijer Ref’s best fourth quarter ever, excluding items affecting comparability, both in absolute terms and margin, based on current structure. • The fourth quarter includes non-recurring costs related to the acquisition of the North American operation Heritage Distribution of SEK 245 million, which is reported under the item â€Items affecting comparabilityâ€. • EBITA including items affecting comparability in the quarter amounted to SEK 325 million (338). • The operating cash flow amounted to SEK 633 million (-313) during the quarter and was affected by a normal seasonal effect. • Profit per share after dilution and before items affecting comparability amounted to SEK 0.96 (0.65), which is an increase of 47 per cent. • Profit per share after dilution amounted to 0.38 SEK (0.65). • The previously announced acquisition of AAD and HVAC Consolidated (Australia) was completed during the fourth quarter. During the quarter, Beijer Ref announced the acquisition of Easy Air Conditioning (UK) and Beijer Ref signed an agreement to acquire the HVACR company Heritage Distribution (North America). • After the end of the period, the acquisition of Heritage Distribution was completed, which is intended to be refinanced by a fully underwritten rights issue. • The board proposes a dividend amounting to a total of SEK 475 million (419), corresponding to 38 per cent (43) of the year’s profit. Full year 2022 • Organic sales rose 16.4 per cent compared to the previous year. Acquisition effects amounted to 10.7 per cent and currency effects were 6.8 per cent. Net sales increased by 33.9 per cent to SEK 22,638 million (16,905). • The group’s EBITA before items affecting comparability amounted to SEK 2,217 million (1,410), which is an increase of 57.2 per cent. Positive exchange rate effects of SEK 85 million (-22) are included in EBITA. The EBITA margin amounted to 9.8 per cent (8.3). • The group’s EBITA including items affecting comparability amounted to SEK 1,971 million (1,410). • Items affecting comparability amounted to SEK -245 million (0). Financial net amounted to SEK -179 million (-69). Profit after tax for the group was SEK 1,266 million (990). Profit per share in total for the group after dilution before items affecting comparability amounted to SEK 3.86 (2.56). Profit per share total for the group after dilution amounted to SEK 3.28 (2.56).Operating cash flow amounted to SEK 176 million (-59). • 2022 has been an active year and the company has made eight acquisitions. The acquisitions contribute positively to the group’s net profit. CEO Kommenterar  "We are leaving behind a strong fourth quarter. Sales amounted to SEK 5,818 million, which is an increase of 36 per cent compared with the corresponding period the previous year. Organic growth was 18 per cent and operating profit (EBITA), before items affecting comparability, amounted to SEK 570 million, which is an increase of 69 per cent. The EBITA margin was 9.8 per cent, compared to 7.9 per cent the previous year. Both operating profit and operating margin are Beijer Ref’s best to date for a fourth quarter. Operating cash flow of SEK 633 million was positive during the quarter compared with the corresponding period the previous year. Our work to normalise our operating capital has begun and will continue in 2023.  Of our geographical regions, Europe stood out above all and has had an accelerating demand for HVAC and OEM. Both of these product areas are in an expansive phase and during the quarter we invested in a build-up of stocks of critical components. All our markets in the southern hemisphere have experienced strong growth in environmentally friendly solutions in our OEM segment. During the quarter, we completed the previously announced acquisition of the Australian HVAC company AAD and HVAC Consolidated.  To respond to the prevailing inflation, we have been working proactively on both internal and external efficiency. During the quarter, the supply of materials, including semiconductors, improved and the price of raw materials stabilised. There are still long lead times, but we have good expectations that this will normalise in 2023.  We established ourselves in the North American market on 15 December through the acquisition of the HVACR company Heritage Distribution. The transaction, which was finalised on 20 January, represents a significant milestone in Beijer Ref’s history and an important strategic step in our continued growth journey. Heritage Distribution offers an excellent platform from which we can continue to pursue consolidation. Work is now underway to integrate the company and benefit from value-creating synergies and common points of contact, such as environmentally friendly and innovative HVAC technologies.  To ensure that we continue to operate a sustainable business model, we signed letters of commitment to the Science Based Targets initiative (SBTi) during the quarter. The ambition is to set goals and definable action to limit global warming to a maximum of 1.5 degrees. Beijer Ref is actively working to contribute to sustainable societal development and has an important role when it comes to electrification and the programme to phase out F-gases. During the quarter, we also renewed our partnership with Danfoss, which includes an increased focus on sustainability.  It is with pleasure that I can sum up a successful 2022. Net sales totalled just over SEK 22,6 billion, which is an increase of 34 per cent compared with 2021. Organic growth was 16 per cent and, in parallel with organic growth, we have added eight new companies to the group. EBITA, excluding items affecting comparability, for the full year was SEK 2,217 million, which is an increase of 57.2 percent, and the corresponding margin was 9.8 percent.  In conclusion, I would like to extend a big thank you to our fantastic employees and welcome all new companies to the Beijer Ref group. Now our journey continues: towards a larger and even more profitable group with new and exciting opportunities."  Christopher Norbye CEO Telephone conference Q4 2022 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the fourth quarter of 2022. The presentation is held in English. The meeting is on 31 January at 10.00 CET. Join the presentation using the link or telephone number below:  Webcast: https://financialhearings.com/event/45869 Dial-in-number: SE: +46 8 505 163 86 US: +1 412 317 6300 UK: +44 20 319 84884  The pin code is: 8259671#  The presentation will also be available on the company’s website www.beijerref.com from 08.30 on 31 January.  This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors.  This interim report has been subject to a general review by the company’s auditor.  Malmö, 31 January, 2023  Beijer Ref AB (publ) Christopher Norbye, CEO  For more information on this report, contact:  Christopher Norbye CEO Telephone +46 40-35 89 00 Email cne@beijerref.com  Ulf Berghult CFO Telephone +46 40-35 89 00 Email ubt@beijerref.com  Niklas Willstrand Global Corporate Communications Manager Telephone +46 40-35 89 00 Email nwd@beijerref.com This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 31-01-2023 08:30 CET.
Beijer Ref Q3 2022
Third quarter • Organic sales rose 18.6 per cent in the quarter compared to the previous year. Acquisition effects were 12.0 per cent and currency effects were 7.1 per cent. Net sales increased by 37.7 per cent to SEK 5,979 million (4,341).  • EBITA amounted to SEK 622 million (366), which is an increase of 70 per cent over the same period the previous year. The EBITA margin amounted to 10.4 per cent (8.4).  • This is Beijer Ref’s best ever third quarter in absolute numbers and terms, based on current structure.  • Operating cash flow amounted to 307 (182). Cash flow has been affected by the higher level of business activity during the quarter. • Earnings per share before and after dilution amounted to SEK 1.12 (0.65) and SEK 1.12 (0.65), respectively, which represents an increase of 72 percent. • During the quarter, Beijer Ref announced three more acquisitions: AAD & HVAC Consolidated (Australia), Transport Cooling SA (South Africa) and EID (France).  • After the end of the period Beijer Ref acquired another company, Easy Air Conditioning (England).  Telephone conference Q3 2022 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the third quarter of 2022. The presentation is held in English and lasts about 20 minutes. The meeting is on 20 October at 10.00 CET.  Audiocast & telekonferens Webcast: https://financialhearings.com/event/43427  Teleconference: Dial-in-number: SE: +46 8 566 42 695 UK: +44 333 300 92 62 US: +1 646 722 49 02  The presentation will also be available on the company’s website www.beijerref.com from 08.30 on 20 October.  Malmö, 20 October 2022 Beijer Ref AB (publ) Christopher Norbye CEO  For more information on this report, contact:  Christopher Norbye CEO +46 40-35 89 00 Ulf Berghult CFO +46 40-35 89 00 Niklas Willstrand Corporate Communications Manager +46 40-35 89 00   This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 20-10-2022 08:30 CET.
Beijer Ref Q2 2022
“We started 2022 well and it is with pleasure that I can confirm that the positive development continued during the second quarter. Most of our key segments have seen continued high market activity, reflecting clear demand for our products. During the quarter, we reported organic sales growth of 13 per cent, which is a good development even compared to the corresponding period last year when we had strong growth of 34 per cent. We work actively to compensate for delivery disruptions and price increases to our customers.†Christopher Norbye, CEO. Second quarter • Organic sales rose 13.3 per cent in the quarter compared to the previous year. Acquisition effects were 11.6 per cent and currency effects were 5.3 per cent. Net sales increased by 30.2 per cent to SEK 5 938 million (4 561). • EBITA amounted to SEK 618 million (431), which is an increase of 43 per cent compared to the same period the previous year. EBITA margin amounted to 10.4 per cent (9.4). • Operating cash flow has been negative during the quarter and was -358 (-207). Cash flow has been affected by higher business activity during the quarter. • Profit per share before dilution was SEK 1.07 (0.79), which is an increase of 35 per cent. Telephone conference Q2 2022 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the second quarter of 2022. The presentation is held in English and lasts about 20 minutes. The meeting is on 15 July at 10.00 CET. Audiocast & teleconference: Webcast: https://financialhearings.com/event/43426 Teleconference: Dial-in-number: SE: +46 8 505 163 86 US: +1 412 317 6300 UK: +44 20 319 84 884 Note that you must use the following pin code in order to participate: 8993122# The presentation will also be available on the company’s website www.beijerref.com from 08.40 on 15 July. For more information on this report, contact: Christopher Norbye, CEO +46 (0) 40-35 89 00 Ulf Berghult, CFO +46 (0) 40-35 89 00 Niklas Willstrand, Corporate Communications Manager +46 (0) 40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. Malmö, 15 July 2022 This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 15-07-2022 08:30 CET.
Beijer Ref Q1 2022
"We began the year strongly with organic sales increase of 16 per cent. All of our geographical segments had positive developments and we report total sales growth of 31 per cent compared with the same period last year. Our southern hemisphere markets had a good summer season and the acquisitions in Asia Pacific (APAC) show good growth", says Christopher Norbye, CEO Beijer Ref. FIRST QUARTER • Organic sales rose 15.8 per cent in the quarter compared to the previous year. Acquisition effects were 10.0 per cent and currency effects were 5.6 per cent. Net sales increased by 31.4 per cent to SEK 4,903 million (3,731). • EBITA amounted to SEK 407 million (275), which is an increase of 48,3 per cent over the same period last year. The EBITA margin amounted to 8.3 per cent (7.4). This is Beijer Ref’s best ever first quarter, in absolute terms. • Operating cash flow has been negative during the quarter and was -295 (386). Cash flow has been affected by the higher business activity during the quarter, as well as by a conscious increased service level on inventory ahead of the coming peak season. • Profit per share was SEK 0.71 (0.47), which is an increase of 49.4 per cent. • During the quarter, an acquisition of 80 per cent of the shares in Deltron in Croatia was completed, with an option to acquire the remaining shares. The company has annual sales of approximately SEK 400 million with good profitability. At the end of the quarter, two small supplementary acquisitions were also made in Australia. TELEPHONE CONFERENCE Q1 2022 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the first quarter of 2022. The presentation is held in English and lasts about 30 minutes. The meeting is on 21 April at 10.00 CET. Audiocast & teleconference: Webcast: https://financialhearings.com/event/43189 Teleconference: Dial-in-number: SE: +468 505 58 373 UK: +44 33 330 09 034 US: +16 46 722 49 56 The presentation will also be available on the company’s website www.beijerref.com from 08.40 on 21 April. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 21 April 2022 Beijer Ref AB (publ) Christopher Norbye, CEO For more information on this report: Christopher Norbye, CEO +4640 35 89 00 or Ulf Berghult, CFO +4640 35 89 00 www.beijerref.com BEIJER REF AB is a technology-oriented trading Group which, through added-value products, offers its customers competitive solutions within refrigeration and climate control. Beijer Ref is one of the largest refrigeration wholesalers in the world, and is represented in 41 countries in Europe, Africa, Asia and Oceania. This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 21-04-2022 08:30 CET.
Beijer Ref Q4-2021
“2021 was a successful year for Beijer Ref, despite major disruptions in the supply chain and a number of lockdowns in our markets. With our decentralised business model and our dedicated employees, we have managed to achieve a sales increase of 20%. In 2021, we delivered both strong organic growth and acquisition growth, while operating profit increased by 31%. It is particularly gratifying that all product areas show organic growth during the year. Overall, the company had a good end to 2021 and we are entering 2022 with a strong order book”, says Christopher Norbye, CEO Beijer Ref. Fourth quarter • Net sales increased by 25.3% (-0.8) in the fourth quarter compared to the same period the previous year and amounted to SEK 4,271 million (3,408). Organic growth was 11.6% (-0.6). Acquisition effects amounted to 12.8% (6.1) and currency effects amounted to 0.8% (-6.2). • EBITA amounted to SEK 338 million (271), corresponding to an EBITA margin of 7.9% (7.9). Operating profit amounted to SEK 326 million (256), an increase of 27.4% compared with the previous year. The operating margin amounted to 7.6% (7.5). • Profit before tax was SEK 303 million (239). Interest costs are higher than in the previous year due to completed acquisitions. Net debt/EBITDA amounted to 2.5 (2.0). • Cash flow from current activities before change in working capital was positive and amounted to SEK 335 million (210). The company’s liquidity has been good and the company has built up stocks during the quarter to meet the increased demand. Unused credit facilities to SEK 1,020 million (1,516). During the quarter, the company has taken up loans of SEK 600 million. • Profit per share before and after dilution was SEK 0.66 (0.47) and SEK 0.65 (0.47) respectively. • The acquisition of 80% of the shares in the air conditioning company Inventor AG in Greece was completed during the fourth quarter. The company has sales of just over SEK 800 million and about 80 employees. The company is included from 1 October in the company’s accounts in the southern region of EMEA. The company has also made two additional acquisitions: Airstream and Clima Solutions, both in the APAC region. • Acquired annual sales during the fourth quarter amount to approximately SEK 900 million; in total the acquisitions have contributed SEK 437 million in sales to the fourth quarter. TELEPHONE CONFERENCE Q4 2021 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Maria Rydén will present the interim report for the fourth quarter of 2021. The presentation is held in English and lasts about 30 minutes. The meeting is on 27 January at 10.00 CET. Audiocast & teleconference: Webcast: https://financialhearings.com/event/13651 Teleconference: Dial-in-number: SE: +468 505 583 55 UK: +44 333 30 092 70 US: +16 46 722 49 57 The presentation will also be available on the company’s website www.beijerref.com from 08.40 on 27 January. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 27 January 2022 Beijer Ref AB (publ) Christopher Norbye, CEO For more information on this report: Christopher Norbye, CEO – 076-736 00 64 Maria Rydén, CFO – 073-429 25 65 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 27 January 2022. www.beijerref.com
Beijer Ref AB Q3-2021
Stable organic growth Third quarter Net sales increased by 13.1% (-2.9) in the third quarter compared to the same period last year and amounted to SEK 4,341 million (3,837). Organic growth amounted to 6.4% (-1.7) Acquisition effects amounted to 7.0% (3.3) and currency effects amounted to -0.3% (-4.5). EBITA amounted to SEK 366 million (353), corresponding to an EBITA margin of 8.4% (9.2). The operating profit amounted to SEK 354 million (342), an increase of 3.6% compared with the previous year. The operating margin amounted to 8.2% (8.9%). Profit before tax was SEK 339 million (329). Interest costs are higher than the previous year due to increased borrowing because of the acquisitions performed. Net debt/EBITDA amounted to 2.1 (2.0). Cash flow from current activities before change in working capital was positive and amounted to SEK 393 million (381). The company's liquidity remained good and the company's balance sheet is strong, with unutilized credit amounting to SEK 444 million (1,484). After the quarter, the company has taken up loans of SEK 600 million. Profit per share before and after dilution was 0.65 (0.64). During the quarter, Beijer Ref increased its holding to just over 50 per cent in the Danish refrigeration technology company Fenagy A/S, which produces industrial heat pumps based on environmentally friendly refrigeration technology. An agreement has been signed to acquire 80% of the shares of the air conditioning company Inventor AG in Greece. The company has sales of just over SEK 750 million and about 80 employees. This will be Beijer Ref's 38th market and an important complement to Beijer Ref's existing product portfolio in HVAC. At the end of July, Beijer Ref acquired 100% of the shares of the distribution company Froid et Clim Distribution (FCD). The company has annual sales of SEK 20 million with five employees and a profitability that exceeds the region's profitability in APAC. On 31 August, 100% of the shares of the climate and ventilation company Armcor were acquired. The company has annual sales of approximately SEK 105 million with good profitability and 37 employees in Australia. During the quarter, Beijer Ref and Alfa Laval renewed their partnership and distribution agreement in a new three-year partnership agreement covering the entire group. Christopher Norbye, new President and CEO of Beijer Ref, joined the company on 30 August 2021. He comes most recently from a position as Executive Vice President and Head of Entrance Systems Division at Assa Abloy and succeeds Per Bertland. Nine-month period 2021 Net sales increased by 18.6% during the period compared to the same period last year and amounted to SEK 12,633 million (10,654). Organic growth was 15.3% (-7.8). Acquisition effects amounted to 6.2% (3.0). Currency effects amounted to -2.9% (1.6). EBITA amounted to SEK 1,072 million (815), corresponding to an EBITA margin of 8.5% (7.6). The operating profit for the period amounted to SEK 1,035 million (780), which is an increase of 32.7% compared with the previous year. The operating margin amounted to 8.2% (7.3). Profit before tax was SEK 989 million (738). Interest costs are higher than earlier years due to increased borrowing because of the acquisitions performed. Profit per share before dilution amounted to SEK 1.92 (1.43) and after dilution to SEK 1.91 (1.42), an increase of 34.1 and 34.3 per cent respectively. 2021 has been an active year and the company has made eight acquisitions, four of them in APAC and four in Europe. Acquired annual sales amount to approximately SEK 1.6 billion, of which approximately SEK 850 million will have an effect on the current year. The acquisitions contribute positively to the group's operating profit. Seasonal variations occur and mean that demand and earnings are highest in quarters two and three in Europe and that quarters one and four are strongest in APAC. Covid-19 has had some effect on the company's profit during the period; individual regions such as South Africa, Southeast Asia and Oceania have been affected. The assessment is that there will be no major impact on profits from Covid-19 in the fourth quarter, unless new outbreaks occur or existing lockdowns are extended. TELEPHONE CONFERENCE Q3 2021 Beijer Ref invites investors, analysts and the media to attend a web meeting at which CEO Christopher Norbye and CFO Maria Rydén present the interim report for the third quarter of 2021. The presentation will be held in English and lasts for about 30 minutes. The meeting is on 19 October at 10.00 CET. Audiocast with teleconference: Webcast: https://financialhearings.com/event/13650 Teleconference dial-in number: SE: +46 8 505 583 51 UK: +44 33 330 092 62 US: +1 646 722 4904 A presentation will be available on the company's website from 08.40 CET on 19 October. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors Malmö, 19 October 2021 Beijer Ref AB (publ) Christopher Norbye, CEO For more information on this report, please contact: Christopher Norbye, CEO – +46 (0) 76-736 00 64 Maria Rydén, CFO – +46 (0) 73-429 25 65 www.beijerref.com
BEIJER REF Q2 2021
Strong second quarter Second quarter Net sales increased by 36.6% in the second quarter compared to the same period last year and amounted to SEK 4,561 million (3,338). Organic growth was strong at 33.8%. Acquisition effects amounted to 6.4%, which is offset by currency effects amounting to -3.5%. EBITA amounted to SEK 431 million (253), corresponding to an EBITA margin of 9.4% (7.6%). The operating profit amounted to SEK 418 million (241), an increase of 73.5% compared with the previous year. The operating margin amounted to 9.2% (7.2%). Profit before tax was SEK 402 million (227). Net financial items were slightly more affected than in previous years because of increased financing in connection with completed acquisitions. Net debt/EBITDA amounted to 2.1 (2.1). Cash flow from current activities before change in working capital was positive and amounted to SEK 499 million (303). The company's liquidity remained good and the company's balance sheet is strong, with unutilised credit amounting to SEK 1,206 million (1,029). Profit per share before dilution amounted to SEK 0.79 (0.44) and after dilution to SEK 0.79 (0.43), which is an increase of 81%. Beijer Ref and Emerson signed a three-year partnership agreement for the European market, covering 25 markets in Europe and more than 260 branches. The company also extended its agreement with Tecumseh for two years. At the end of June, the assets of Industrial Refrigeration Components (IRC) were acquired; the company has sales of SEK 20 million and two employees. In connection with the acquisition, Beijer Ref signed an exclusive agreement with LU-VE products in Australia and New Zealand, one of Beijer Ref's partners in heat exchangers. The company's CEO Per Bertland announced his resignation in the first quarter of 2021 and the recruitment of a successor was completed during the second quarter. Christopher Norbye, new President and CEO of Beijer Ref, will join the company on 30 August. He comes most recently from a position as Executive Vice President och Head of Entrance Systems Division på Assa Abloy. First half 2021 Net sales increased by 21.6% in the first half compared to the same period last year and amounted to SEK 8,292 million (6,816). Organic growth amounted to 20.4% (-10.9%). Acquisition effects amounted to 5.7% (2.9%). Currency effects amounted to -4.5% (-0.3%). EBITA amounted to SEK 706 million (462), corresponding to an EBITA margin of 8.5% (6.8%). The operating profit for the period amounted to SEK 681 million (438), which is an increase of 55.4% compared with the previous year. The operating margin amounted to 8.2% (6.4%). Profit before tax was SEK 649 million (409). Net financial items are slightly higher compared to previous years due to increased borrowing in connection with completed acquisitions during the period. Profit per share before dilution amounted to SEK 1.27 (0.79) and after dilution to SEK 1.26 (0.78), an increase of 61%. At the end of 2020, the acquisition of 85% of the shares of Sinclair in the Czech Republic was completed, which is included in the group's financial statements with effect from 1 January 2021. During the period, the acquisition of all shares of Complete Air Supply in Australia and 60% of the shares of Coolair in Germany were concluded; these are included in the company's accounts from February and March 2021 respectively. At the end of June, the assets and liabilities of Industrial Refrigeration Components (IRC) in Australia were acquired. After the end of the period, Beijer Ref entered into an agreement to increase its holding in the Danish refrigeration technology company Fenagy A/S, which produces environmentally friendly industrial heat pumps. With an investment of DKK 19 million, Beijer Ref expands its ownership to just over 50 per cent and thus becomes the majority shareholder. The company will be included in the financial statements with effect from 1 July 2021 and will have a minor impact on the company's results and position. After the end of the period, an agreement was signed to acquire 80% of the shares in the air conditioning company Inventor AG in Greece, with the takeover expected in autumn 2021. The company has sales of just over SEK 600 million and about 80 employees. This will be Beijer Ref's 38th market and an important complement to Beijer Ref's existing product portfolio. Thus far, acquired annual sales amount to approximately SEK 1.4 billion, of which approximately SEK 800 million has an effect on the current year, and contributes positively to the group's operating margin. Covid-19 has had little effect on the company's profit during the period, although individual regions such as South Africa, Southeast Asia and Australia have been affected. The company does not expect any major impact on earnings related to Covid-19 in 2021 unless new outbreaks occur. Comments from the CEO All Time High To begin with, I would like to emphasise that it is gratifying to see how we are now approaching the light at the end of the pandemic tunnel. The world seems to be moving towards a gradual recovery and there are clear signs that societies are slowly but surely opening up; restrictions are easing, travel is increasing and everyday life is starting to normalise once again. In these circumstances, it feels good to report our strongest quarter to date, in terms of both sales and profit. Sales in the second quarter, compared to the corresponding period last year, increased by 37%, of which 34% is organic (an increase of 14% compared to Q2 2019). It is positive that large markets such as the Netherlands, France and Italy have performed well. It is gratifying that we have been able to obtain majority ownership of Fenagy, a company that manufactures industrial air heat pumps based on environmentally friendly CO2 technology. Developments in the company have exceeded expectations and optimism for the future is great. Another exciting piece of news is that after the end of the quarter we have signed an agreement to acquire Inventor, one of the leading air conditioning distributors in Greece, which is highly profitable. The acquisition is in line with our strategy and means that Beijer Ref is establishing itself in a new market, the 38th in the world. I am also happy with the acquisition of Sinclair, which was made in the first quarter. The investment in own brands is becoming increasingly important for Beijer Ref and it is satisfying to see how we have successfully launched Sinclair in our markets. The own brand for line components, Freddox, will also be gradually launched in an increasing number of markets. In the beginning of July, it was an honour to inaugurate our new and energy efficient factory in Italy, which mainly produces sustainable refrigeration units based on natural refrigerants. As a result, we are doubling our capacity to produce environmentally friendly refrigeration units. At the same time, we are seeing prices of traditional refrigerants stabilise. In our assessment, future changes in the price of refrigerants will not have a significant impact on profit. I see this as a turning point for falling refrigerant prices. Digital sales are increasing, partly as a result of the Covid-19 pandemic. During the quarter, our e-commerce accounted for 10% of sales, compared to 6% last year. This is an area Beijer Ref will continue to invest in and where we see great development opportunities. Like many other companies, Beijer Ref had to adapt quickly to prevailing conditions during the pandemic. Although we are in an industry that is quite insensitive to economic fluctuations, I think we have handled the situation well. We have largely compensated for price increases that have partly been due to component shortages in the world. Our assessment is that the component shortage has only affected the quarter to a limited extent. I would also like to draw attention to all our ambitious and talented employees. Throughout the pandemic, our core values have clearly permeated everyone's commitment: we have been committed, engaged, straightforward and united. Everyone within the organisation has shown enterprise and innovation. Beijer Ref continues to consolidate its position as a world-leading refrigeration wholesaler and I look forward with hope to both the next quarter and the future. A big thank you Q2 2021 will be my last report as CEO of Beijer Ref and I would like to extend a big thank you to all the people I have had the privilege of working with. The milestones are many, as are my memories. Far too many to fit into this text. I am very proud that we, as a decentralised organisation, have succeeded in creating a unified corporate culture, with common values and behaviour. Together we have taken a fantastic journey and laid the foundation for continued success. All my Beijer Ref colleagues will be missed. I would also like to thank my family, who have been by my side for all these years. It is also with pride that I note that the concept of sustainability continues to be an important and integral part of Beijer Ref's strategy. Our ambition is to contribute to sustainable social development that creates long-term values for future generations. It is an honour to have been CEO of a company that actively works on these important issues. In my new role as a board member, I will continue to engage in Beijer Ref's development. It is now with great confidence that I will hand over to our new CEO, Christopher Norbye, on 30 August. I am convinced that Christopher, together with our experienced employees, will continue to drive Beijer Ref's spirit and strategy forward. He has many years of experience in both global operations and decentralised organisations. Per Bertland CEO Second quarter of 2021 NET SALES Beijer Ref increased its net sales by 36.6 per cent to SEK 4,561 million (3,338) during the second quarter of 2021. Adjusted for exchange rate fluctuations and acquisitions, organic sales growth amounted to 33.8 per cent (-17.8), mainly due to price and volume increases. The group has had no negative effects from the falling prices for refrigerants during the quarter. A stronger Swedish krona resulted in currency effects of SEK -87 million (-63), corresponding to -3.5 per cent (1.3), since most sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 418 million (241) during the second quarter, an increase of 73.5 per cent. Exchange rate effects of SEK -9.4 million (-2.3) are included in the operating profit figures. The operating margin amounted to 9.2 per cent (7.2). Aside from acquisition effects, the improved profit is mainly due to volume increases. Profit before tax amounted to SEK 402 million (227) and profit for the period was SEK 308 million (168). Profit per share before dilution amounted to SEK 0.79 (0.44). CASH FLOW Cash flow from current activities before change in working capital during the second quarter amounted to SEK 499 million (303). Working capital increased by SEK 653 million during the quarter compared with a decrease of SEK 24 million during the corresponding period of the previous year. Normally, the group binds more capital in the first half of the year and frees up capital in the second half of the year. The change in working capital between the years is due primarily to higher accounts receivable. Altogether, this gives cash flow from current operations after changes in working capital of SEK -154 million (327). Cash flow from current operations before changes in working capital amounted to SEK 823 million during the period, compared with SEK 521 million for the corresponding period in 2020. The change is mainly due to a higher operating profit in 2021. Working capital has increased by SEK 639 million in 2021 compared to a decrease of SEK 3 million the previous year, mainly due to more acquisitions and higher accounts receivable as a result of the increase in sales. Altogether, this gives cash flow from current operations after changes in working capital of SEK 183 million (524). At the end of the period, credit facilities amounted to SEK 4,253 million (4,041), of which unutilised credits amounted to SEK 1,206 million (1,029). In total, net debts increased by SEK 606 million, mainly due to lower cash and cash equivalents due to dividends paid and increased interest-bearing liabilities in connection with acquisitions. INVESTMENTS Cash flow from investment activities during the quarter amounted to SEK -55 million (-48), which relates to business combinations and investments in non-current assets. During the second quarter, the company acquired Industrial Refrigeration Components. Cash flow from investment activities during the period amounted to SEK -371 million (-267) and relates to Sinclair Global Group, Complete Air Supply, Coolair and Industrial Refrigeration Components. COMPANY ACQUISITIONS Acquisitions are a priority area and in 2021 a number of companies have been acquired. At the end of 2020, the acquisition of 85% of the shares of Sinclair in the Czech Republic was completed, which is included in the group's financial statements with effect from 1 January 2021. During the period, the acquisition of all shares of Complete Air Supply in Australia and 60% of the shares of Coolair in Germany were concluded; these are included in the company's accounts from February and March 2021 respectively. At the end of June, the assets and liabilities of Industrial Refrigeration Components were acquired. After the end of the period, Beijer Ref entered into an agreement to increase its holding in the Danish environmentally friendly refrigeration technology company Fenagy A/S. With an investment of DKK 19 million, Beijer Ref expands its ownership to just over 50 per cent and thus becomes the majority shareholder. The company will be included in the financial statements with effect from 1 July 2021 and will have a minor impact on the company's results and position. After the end of the period, Beijer Ref signed an agreement to acquire 80% of the shares in the air conditioning company Inventor AG in Greece. The takeover is expected to take place during the autumn of 2021. The company has sales of just over SEK 600 million and about 80 employees. This will be Beijer Ref's 38th market and an important complement to the group's existing product portfolio. In total, these companies have annual sales of approximately SEK 1.4 billion and contribute positively to the group's operating margin. ANNUAL GENERAL MEETING The annual general meeting was held on 15 April 2021 and the meeting decided, in accordance with the board's proposal, on a dividend totalling SEK 3.00, divided into SEK 1.80 with payment in April and SEK 1.20 (0.40 after split) with payment in October. Total dividend amounts to SEK 380 million, where of SEK 228 million has been paid during the quarter. The meeting also decided to perform a share split 3:1 with 26 April 2021 as the record date. The meeting also decided to introduce a long-term share-based incentive programme LTIP 2021/2024 for key employees in the group. In accordance with the board's proposal, it was decided to offer the participants in LTIP 2018/21 repurchase of purchase options, which occurred during May. THE SHARE Beijer Ref’s B share is listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,684,512, made up of 382,304,070 shares, each with a quota value of SEK 0.97. There are two types of share, A shares and B shares, which represent ten and one vote respectively. Beijer Ref had 11,948 shareholders on 30 June 2021 (10,246). The proportion of foreign shareholders amounts to 4.0% (4.3), with a capital shareholding of 53.73% (59.5). As of 30 June 2021, there were 27,956,160 class A shares and 354,347,910 class B shares. The company's ten largest shareholders hold 72% (80) of the votes and 65% (67) of the capital. Average sales of the Beijer share in the quarter amounted to 405,869 shares (281,976) per day at an average purchase price of SEK 140 (94). The closing price on 30 June 2021 was SEK 153 (95). As of 30 June 2021, the market value was SEK 58 billion (36). All amounts refer to value after the split and reconstruction of shares. OPTIONS PROGRAMME 2018/2021 The company's first option program expired in June 2021 and included about 60 employees. The maximum number of options after the split amounted to 2,574,000. In accordance with the Board's proposal, the participants have been offered to repurchase their own shares or to sell the options back. The sale of shares had a positive effect on liquidity of SEK 45 million and the repurchase of options had a negative effect on the company's liquidity of SEK 144 million. The effect of the option programme is included in equity. OPTIONS PROGRAMME 2021/2024 The company has a new call option programme that includes about 90 employees within the Group. The programme runs for a three-year period from 2021 to 2024. The maximum number of options amounts to 2,262,000 and the number of subscribed options amounts to 1,476,000. A total of SEK 21.5 million has been received in respect of the options, and is included in equity. SUSTAINABILITY Sustainability is a well-integrated part of Beijer Ref. Doing business based on sound standards is a responsibility that the group takes very seriously, while at the same time it is woven in as a natural approach in all parts of the organisation. Beijer Ref's sustainability strategy is based on the UN's sustainable development goals in Agenda 2030, which cover economy, society and the environment. Beijer Ref believes that it is in the environmental field that Beijer Ref can make the biggest difference. In order to further strengthen the work to develop environmentally friendly refrigeration technology, the group measures the proportion of Beijer Ref's OEM sales that shall be environmentally friendly. The goal is for it to increase from today's 35% to 50%. On our website and in the annual report, we give more information about our goals and how we perform in relation to the goals. RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the group was affected by Covid-19. The company’s assessment is that Covid-19 is having a smaller effect on earnings in 2021. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etcetera, are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of three holdings, one of which (SEK 20M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The two other holdings (SEK 34M) is unlisted holdings and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 4,550M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 7,997M. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q2 2021 Beijer Ref invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the second quarter of 2021. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 15 July at 10.00 CET. Audiocast with teleconference Webcast: https://financialhearings.com/event/13649 Teleconference: Dial-in number SE: +46 8 566 427 06 UK: +44 33 330 092 70 US: +1 646 722 4904 A presentation will be available on the company's website from 08.40 CET on 15 July. For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. Malmö, Sweden, 15 July 2021 Kate Swann Chair Albert Gustafsson Board Member William Striebe Board Member Frida Norrbom Sams Board Member Joen Magnusson Board Member Kerstin Lindvall Board Member Per Bertland Board Member & CEO 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 persons set out above, at 08.30 CET on 15 July 2021. 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 Interim Report for the third quarter 2021 will be published on 19 October 2021. • The Interim Report for the fourth quarter 2021 will be published on 27 January 2022. • The Annual Report for 2021 will be published in March 2022. • The Annual General Meeting will be held in April 2022 in Malmö (Sweden). BEIJER REF Stortorget 8, 211 34 Malmö Telefon 040-35 89 00 Organisationsnummer 556040-8113 www.beijerref.com
Beijer Ref Q1 2021
Recovery First quarter Net sales increased by 7.3% in the first quarter compared to the same period last year and amounted to SEK 3,731 million (3,478). Organic growth was strong at 7.3%. Acquisition effects amounted to 5.1%, which is offset by currency effects amounting to -5.2%. EBITDA amounted to SEK 377 million (309), corresponding to an EBITDA margin of 10.1% (8.9%). The operating profit for the quarter amounted to SEK 263 million (197), an increase of 33% compared with the previous year. The operating margin amounted to 7.0% (5.7%). Profit before tax was SEK 248 million (182). Net financial items are in line with previous year despite increased borrowings in connection with completed acquisitions and costs for the granted credit capacity. Cash flow from current activities was positive during the quarter and amounted to SEK 323 million (218). The company's liquidity remained good during the quarter and the company's balance sheet is strong, with unutilised credit amounting to SEK 1,608 million (1,383). Profit per share before and after dilution amounted to SEK 1.42 (1.05) and SEK 1.41 (1.05) respectively, which is an increase of 35%. At the end of 2020, the acquisition of 85% of the shares of Sinclair in the Czech Republic was completed, which is included in the group's financial statements from 1 January 2021. During the first quarter of 2021, the acquisition of all shares of Complete Air Supply in Australia and 60% of the shares of Coolair in Germany was concluded; these are included in the company's accounts from February and March 2021 respectively. In total, these companies have annual sales of approximately SEK 650 million and strengthen the group's operating margin. Covid-19 has had a small effect on the company's results during the first quarter. The savings programme that was implemented in 2020 has led to cost savings of approximately SEK 20 million during the first quarter. The company does not expect any major impact on earnings related to Covid-19 in 2021 unless new unforeseen outbreaks occur. The company's CEO Per Bertland announced his resignation in the first quarter and the recruitment of a successor is ongoing and is expected to be completed after summer 2021. The company has also signed a new partnership agreement with Bitzer in Germany, which is an important supplier of compressors to the company. Beijer Ref and Bitzer are among the leaders in the refrigeration and air conditioning industry and have extended their partnership agreement for a further three years. The annual general meeting was held on 15 April 2021 and the meeting decided, in accordance with the board's proposal, on a dividend totalling SEK 3.00, divided into SEK 1.80 with payment in April and SEK 1.20 with payment in October. The meeting also decided to perform a share split 3:1 with 26 April 2021 as the record date. The meeting also decided to introduce a long-term share-based incentive programme LTIP 2021/2024 for key employees in the group. In accordance with the board's proposal, it was decided to offer the participants in LTIP 2018/21 repurchase of purchase options. Comments by the CEO Organic growth The first quarter of the year was strong and a clear sign of recovery. Sales amounted to SEK 3.7 billion, an increase of 7.3% compared to the same period last year and our best Q1 report ever. Organic growth in the quarter amounted to 7.3%, which is a statement of strength, given that several of our markets are still partially closed down. This shows that our products and our offering, which have a societal function, are also in demand in the present circumstances. My assessment is that there is a pent-up need for our products on the market and that in the coming quarters there will be an increased demand for repair and maintenance work which has not been performed, provided that the restrictions are gradually lifted and we move towards normalisation. The organic growth has a positive effect on operating profit, but the improvement in profit is also a result of the adjustments we have made in the form of efficiency improvements, which have resulted in cost savings. Of the geographical markets, southern Europe stands out with organic sales growth of 17%. Asia Pacific has also had a strong quarter with organic growth of 10%. In terms of our product areas, HVAC accounts for the largest sales increase with organic growth of 15% in the quarter. The OEM product area is in an expansive phase and growth was double digits during the period, especially with the environmentally-friendly product range. Beijer Ref's new production facility in Padua, Italy, has produced its first units and the group's total OEM capacity for sustainable production is now twice as large as before. This gives us a strong position in the market when the refrigeration systems of Europe and the rest of the world are to be gradually converted to become sustainable. After ten quarters of falling purchase prices for refrigerants, which has had a sharp negative impact on earnings, the trend is that prices have started to rise, which means that the impact on earnings in the first quarter is marginal. Beijer Ref is driven by creating growth, both organically and through acquisitions. During the period, we have consolidated our most recently added companies – the Czech company Sinclair, Complete Air Supply in Australia and Coolair in Germany – with good results. Our strong cash flow enables an even greater focus on acquisitions in the future. We continuously evaluate potential acquisitions in both existing and new markets. At the end of last year, EQT became the new principal owner and the board was given a partly new composition. This gives Beijer Ref good conditions to continue its successful journey, which means that we will continue to have a strong focus on acquisitions, ESG matters and digitalisation. E-commerce is growing continuously and during the first quarter it amounted to approximately 9%. I am optimistic about achieving our long-term goal of e-commerce making up at least 20% of our total sales by 2023. As I have previously announced, I have chosen to leave my role as CEO in 2021 and instead become a member of the board. The recruitment process for my successor is ongoing. I will remain in position until the new CEO takes office, which hopefully will be sometime after the summer. We have had a good start to the year and I am looking forward to the future. We are a strong team with new principal owners, motivated employees and an offering that is in demand on the market. Megatrends in the form of regulatory provisions and an increased need worldwide for HVAC are putting the wind in our sails. Together with the fact that after the pandemic there is a pent-up need for our products, especially when the HORECA segment also starts to reopen its operations, it gives me every reason to look forward with optimism. Per Bertland CEO First quarter of 2021 NET SALES Beijer Ref increased its net sales by 7.3 per cent to SEK 3,731 million (3,478) in the first quarter of 2021. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 7.3 per cent (-3.2). Sales growth has been greatest in air conditioning and OEM as well as in the company's largest markets in southern Europe. A stronger Swedish krona resulted in negative currency effects of SEK 168 million (41), corresponding to 5.2 per cent (1.2), since most sales are in currencies other than Swedish kronor. The company has experienced growth in all product areas, due to both price and volume increases. Refrigerants have had a less negative effect on sales during the quarter compared to previous quarters. Air conditioning has developed strongly during the quarter and has grown organically by 14.5%, largely thanks to good collaboration with Toshiba, Mitsubishi Heavy, Carrier and Gree. Sales growth in air conditioning has been strong, with the exception of Africa and Eastern Europe. OEM has experienced strong growth in the first quarter, thanks not least to the F-gas phasing-out programme that is underway in Europe. The group has also produced its first units at the new factory in Padua, Italy, doubling its capacity in environmentally-friendly refrigeration technology. The group's company in China have also had good sales development on the domestic market. PROFIT The group’s operating profit totalled SEK 263 million (197) during the first quarter, which is an increase of 33 per cent (-19). Negative exchange rate effects of SEK 10.3 million (3) are included in the operating profit figures. The operating margin amounted to 7.0 per cent (5.7). The improved profit is due to volume increases, implemented savings and positive acquisition effects. Profit before tax was SEK 248 million (182). Profit for the period totalled SEK 184 million (135). Profit per share before dilution amounted to SEK 1.42 (1.05). CASH FLOW Cash flow from current operations before changes in working capital amounted to SEK 323 million in 2021, compared with SEK 218 million in 2020. The change is due to higher earnings during the quarter and less tax paid. Working capital decreased by SEK 13 million during the first quarter compared with an increase of SEK 21 million the previous year. This gives cash flow from current operations of SEK 337 million (197). The change in working capital between the years is due primarily to a lower build-up of stocks during the quarter. At the end of the period, the company had credit facilities amounting to SEK 4,273 million (4,165), of which unutilised credits amounted to SEK 1,608 million (1,383). In total, net liabilities decreased by SEK 314 million. The group has a balanced maturity structure and no loans that fall due in 2021. INVESTMENTS Cash flow from investment activities amounted to SEK -317 million (-219), which relates primarily to business combinations and investments in fixed assets. Sinclair Global Group, Complete Air Supply and Coolair were acquired during the first quarter (ACD Trade was acquired the previous year). Thanks to the good cash flow, the group has used less of the granted credit capacity and amortised loans by SEK 111 million. COMPANY ACQUISITIONS At the end of 2020, 85% of Sinclair Global Group was acquired and this is included in the group's financial statements with effect from 1 January 2021. Sinclair is headquartered in Brno in the Czech Republic with sales offices in Slovakia, Hungary and Croatia. Sinclair sells air conditioning and heat pumps to a number of countries and most of the sales consist of HVAC products of its own Sinclair brand. Annual sales amounts to SEK 410M and they have 110 employees. During the first quarter, the company acquired 100% of the shares of Complete Air Supply (CAS) in Australia. This company is active in HVAC and has a range that in particular complements ACD Trade well and which makes what Beijer offers for residential and commercial properties more comprehensive. CAS has annual sales of SEK 140 million, with 40 employees in 2 branches. The company is included in the group's financial statements with effect from 1 February 2021. Air conditioning is a priority growth area for Beijer Ref and the group is growing steadily in this area both organically and through acquisitions. The growth strategy is strengthened by the acquisition of 60% of the shares of Coolair Klimasysteme GmbH in Germany, which has sales of approximately SEK 100 million and more than 25 employees. The company is included in the group's financial statements with effect from 1 March 2021 and strengthens Beijer Ref's presence in Germany, which is a large and important market in Europe. SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER Beijer Ref is relatively insensitive to economic cycles as about half of the company's sales are made to end customers active in the food industry. Any decline is offset by the need for the food industry to switch to environmentally friendly systems, which increases the demand for the company’s products. This, together with an increased standard of living, is driving our sales development. The company’s current assessment is that Covid-19 will have a smaller effect on earnings in 2021. Beijer Ref’s assessment is that net savings of approximately SEK 20 million had an effect during the quarter, including support measures of SEK 2 million, but that sales were not significantly affected in 2021. Per Bertland has informed the board of Beijer Ref AB that he will step down as CEO. The transition will take place once a successor has been appointed, which is expected to occur after summer 2021. ANNUAL GENERAL MEETING The annual general meeting was held on 15 April 2021. The meeting decided, in accordance with the proposal of the board, on a dividend of SEK 3.00 per share for the 2020 financial year. Of the proposed amount, SEK 2.50 per share corresponds to an ordinary dividend and SEK 0.50 is an extraordinary dividend. Payment of the dividend shall be made in two instalments: the first of SEK 1.80 per share and the second of SEK 1.20 per share (0.40 after split). Total dividend amounts to SEK 379.6M based on total number of outstanding shares. The record dates are 19 April 2021 and 8 October 2021. Payment from Euroclear Sweden AB is expected to be made on 22 April 2021 for the first payment and 13 October 2021 for the second payment. The meeting also decided to perform a share split 3:1 with 26 April 2021 as the record date. The meeting also decided to introduce a long-term share-based incentive programme LTIP 2021/2024 for key employees in the group. In accordance with the board's proposal, it was decided to offer the participants in LTIP 2018/21 repurchase of purchase options issued in LTIP 2018/2021. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 11,520 shareholders on 31 March 2021 (9,101). The proportion of foreign shareholders amounts to 4.1% (4.5), corresponding to a capital shareholding of 54.9% (59.6). As of 31 March 2021, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 77.2% (78.6) of the votes and 62.1% (64.5) of the capital. Average sales of the Beijer share in the quarter amounted to 149,369 shares (184,243) per day at an average purchase price of SEK 363 (233). The closing price on 31 March 2021 was SEK 383 (179). As of 31 March 2021, the market value was SEK 48.8 billion (22.8). RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the group was affected by Covid-19. The company’s assessment is that Covid-19 is having a smaller effect on earnings in 2021. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etcetera, are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of three holdings, one of which (SEK 15M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The two other holdings (SEK 29M) is unlisted holdings and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 4,049M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 7,165M. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q1 2021 Beijer Ref invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the first quarter of 2021. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 22 April at 10.00 CET. Audiocast with teleconference Webcast: https://financialhearings.com/event/13648 Teleconference: Dial-in number SE: +46 8 505 583 69 UK: +44 33 330 092 65 US: +1 833 249 8406 A presentation will be available on the company's website from 08.40 CET on 22 April. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 22 April 2021 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)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 22 April 2021. This interim report has not been the subject of examination by the Company’s Auditors. 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 Interim Report for the second quarter 2021 will be published on 15 July 2021. • The Interim Report for the third quarter 2021 will be published on 19 October 2021. • The Interim Report for the fourth quarter 2021 will be published on 27 January 2022. www.beijerref.com
Beijer Ref AB Q4-2020
Stable profits and increased dividend Fourth quarter Net sales decreased by 0.8% in the fourth quarter compared to the same period last year and amounted to SEK 3,408 million (3,435). Operating profit before depreciation, interest and tax (EBITDA) amounted to SEK 367million (363), corresponding to an EBITDA margin of 10.8% (10.6). Operating profit for the quarter amounted to SEK 256 million (256). The operating margin amounted to 7.5% (7.4%). Profit before tax was SEK 239 million (242). Net financial items are SEK 3 million higher (-16M vs -13M) than in the previous year, mainly due to financing acquisitions and costs of an extended credit capacity. Profit per share before and after dilution amounted to SEK 1.42 (1.42) and SEK 1.41 (1.41) respectively, which is unchanged from the previous year. Cash flow from current activities was positive during the quarter and amounted to SEK 559 million (480). Unused credit amounted to SEK 1,516 million (1,752). During the fourth quarter of 2020, Beijer Ref invested in a minority holding in Fenagy A/S in Denmark, which develops environmentally friendly industrial pumps. Beijer Ref also acquired 85% of the air conditioning company Sinclair in the Czech Republic. The company has an annual turnover of SEK 400 m with good profitability. Consolidated in the group from 2021. The board will propose to this year's Annual General Meeting an increased dividend to SEK 2.50 (1.75) and an additional dividend of 0.50 to compensate for lower dividend in 2020. Full year 2020 Net sales decreased by 5.1% during 2020 compared to the same period last year and amounted to SEK 14,062 million (14,817). Organic change was -6.2% (0.9%). EBITDA amounted to SEK 1,477 million (1,655), corresponding to an EBITDA margin of 10.5% (11.2%). The operating profit for the period amounted to SEK 1,036 million (1,230), a decrease of 15.8% compared with last year. The operating margin amounted to 7.4% (8.3%). Profit before tax was SEK 977 million (1,174). Net financial items are SEK 3 million higher (-59M vs -56M) than in the previous year, mainly due to financing acquisitions and an extended credit capacity. Profit per share before and after dilution amounted to SEK 5.71 (6.82) and SEK 5.67 (6.78) respectively, which is a decrease of 16.4%. The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has 60 employees across 9 branches. The company is included in the group's financial statements with effect from 1 February 2020 and it has contributed SEK 554 million to sales. 2020 has been greatly marked by the Covid-19 pandemic and its effects. Measures have been taken in all parts of the business to fend off the effects, in the second and third quarters in particular. Comments by the CEO Stable conclusion to a challenging year 2020 was a year largely marked by the corona pandemic and we took swift action to mitigate the negative effects of a market that was characterised by tough restrictions and shutdowns. Our savings programme and rapid reorganisation have paid off. Compared to the second quarter, which was the period most affected by closures, markets have remained relatively stable in the last few months in spite of new restrictions. The group's net sales for the fourth quarter are in line with sales in the same period last year and amounted to SEK 3.4 billion. Organically, our Central Europe and Asia Pacific regions have experienced growth and southern Europe is in line with the previous year. Operating profit amounted to SEK 256 million in the fourth quarter, which is in line with the corresponding quarter of 2019. Apart from the acquisition of ACD Trade, it is mainly the effects of Covid-19 and lower prices of refrigerants that have affected earnings. Volume, but above all the fall in the price of refrigerants, has led to a loss of sales of approximately SEK 60 million in the quarter, and almost SEK 450 million on an annual basis. There are some indications that refrigerant prices are stabilising. The EU rules for phasing out f-gases, which regulate the permissible amount of CO2 equivalent emissions, were further tightened at the end of the year, which may affect the price. However, we do not expect the same development as in 2018. My assessment is that future price changes will not affect Beijer Ref's performance to the same degree as they have in the last two years. Our HVAC product area shows growth of just over 3 per cent in the fourth quarter. In general, the demand for air conditioning and heat pumps is rising and therefore it is positive that we succeeded in performing an acquisition in this area at the end of the year. The Czech HVAC company Sinclair is from 1 January 2021 part of our group, which strengthens our overall offering. The company distributes products to several countries in Europe, mainly through its own brand. A brand that we will further develop and launch in other Beijer Ref markets. It is also gratifying that our Dutch company Coolmark had one of its strongest quarters ever with an organic sales increase of 14 per cent. Coolmark's profits increased by approximately 50 per cent for the full year, which shows that there will be a big impact on profits as sales increase. Apart from lower refrigerant prices, the Commercial refrigeration product area grew by approximately 2 per cent in the quarter. This part of our business is socially important, which has allowed us to keep activity at a stable level even during periods of shutdowns. The entire OEM product area had an organic sales loss of 6 per cent compared to the same quarter last year. The decrease can be attributed to geographical areas such as the Nordic region and Africa, where restrictions due to the pandemic have made investment decisions delayed for a quarter. In Italy, we are now preparing to open operations in our new, environmentally friendly production facility, which will double capacity in the sustainable self-produced segment. Orders received in Q4 have been strong, meaning that we are entering the new year with a well-stocked order book. OEM is a focus area and it is therefore positive that we were able to perform another acquisition that strengthens our offering in the product area. By investing in the Danish company Fenagy, with the option to take over as principal owner within a few years, we will be able to offer sustainable industrial heat pumps on the northern European market based on the environmentally friendly refrigerant CO2. At the end of the year, Beijer Ref had a new principal owner in EQT when Carrier decided to sell its holding. This is a statement of strength and a recognition that what we have built up is considered to be viable for a long time to come. EQT will greatly contribute to Beijer Ref's continued journey of growth, through its knowledge and broad network. I would also like to take this opportunity to thank Carrier for eleven years of successful cooperation. They have been involved in the globalisation of Beijer Ref and have opened many doors for us. I am pleased that in the future we will continue our cooperation, since Carrier is an important supplier. As I mentioned, 2020 has been a special year in many ways. When we sum up the year, we still have a lot to be proud of. The rapid adaptation to a new reality has required a great deal from our employees, who made it possible through their sacrifices, carried out with great loyalty. Our balance sheet is strong and we have every opportunity to continue growing, both organically and through acquisitions. The board's proposal for an increased dividend reflects our optimistic confidence in the future and hopefully 2021 will be the year in which the business returns to normal. Per Bertland, CEO Fourth quarter of 2020 NET SALES Net sales decreased by 0.8 per cent to SEK 3,408 million (3,435) in the fourth quarter of 2020. The decrease in sales has been greatest in the Nordic region, southern Europe and Africa and is due to exchange rate changes and Covid-19. Apart from exchange rate changes and acquisitions, the organic change in net sales was -0.6 per cent (0.9). Air conditioning has however developed strongly during the quarter and has grown organically by 3.4%, largely thanks to good cooperation with Toshiba, Mitsubishi Heavy, Carrier and Gree. Sales development in air conditioning has been strong in all regions except Africa and Eastern Europe, and particularly strong in the Nordic region and Central Europe. A stronger Swedish krona resulted in exchange rate effects of SEK -216 million (111), corresponding to -6.2 per cent (3.4), since most sales are in currencies other than Swedish kronor. Net sales decreased by 5.1 per cent to SEK 14,062 million (14,817) during 2020. Adjusted for exchange rate changes and acquisitions, the organic change in net sales was -6.2 per cent (4.4). The main reasons are the effects of Covid-19 and lower prices for refrigerants. The decrease in sales has affected all geographical segments and had the greatest impact in Southern and Central Europe. PROFIT The group's operating profit amounted to SEK 256m (256) in the fourth quarter, which is unchanged compared to the previous year, thanks to savings achieved and positive acquisition effects of SEK 19.7m. The operating margin amounted to 7.5% (7.4%). Exchange rate effects of SEK -19.2 million (7.5) are included in the operating profit figures. Profit before tax was SEK 239 million (242) and profit for the period was SEK 180 million (183). Profit per share before dilution amounted to SEK 1.42 (1.42). The group's operating profit for the full year 2020 was SEK 1,036m (1,230), which is 16 per cent lower than in the previous year. Exchange rate effects of SEK -32.8 million (36.1) are included in the operating profit figures. The operating margin amounted to 7.4 per cent (8.3). In 2020, the company made net savings of approximately SEK 300 m. The operating profit also includes positive acquisition effects of SEK 39.6 million for the year. Profit before tax was SEK 977 million (1,174) and profit for the year was SEK 729 million (873). Profit per share before dilution amounted to SEK 5.71 (6.82). CASH FLOW Cash flow from current operations before changes in working capital during the fourth quarter was similar to the previous year at SEK 210 million (250). Working capital decreased by SEK 350 million during the quarter compared with SEK 231 million during the corresponding period of the previous year. Normally, the group binds capital in the first half of the year and frees up capital in the second half of the year. The change in working capital between the years is due primarily to a decrease in goods in stock. Altogether, this gives cash flow from current operations after changes in working capital of SEK 559 million (480). Cash flow from current operations before changes in working capital amounted to SEK 1 112 million in 2020, compared with SEK 1,280 million for the corresponding period in 2019. The change is mainly due to a lower operating profit. Working capital decreased by SEK 426 million in 2020 compared with an increase of SEK 25 million the previous year. Altogether, this gives cash flow from current operations after changes in working capital of SEK 1,538 million (1,255). At the end of the period, credit facilities amounted to SEK 4,259 million (4,040), of which unutilised credits amounted to SEK 1,516 million (1,752). In total, net liabilities decreased by SEK 263 million. Refinancing of SEK 2.9 billion of the company's granted credit facilities occurred, divided over four different banking partners and with an average maturity of 3 years 5 months. INVESTMENTS Cash flow from investment activities during the fourth quarter amounted to SEK 265 million (33), which relates primarily to acquisitions and investments in fixed assets. Cash flow from investment activities during 2020 amounted to SEK 560 million (137), which relates primarily to business combinations and investments in fixed assets. COMPANY ACQUISITIONS In the fourth quarter of 2020, two acquisitions were made, a minority holding in Fenagy A/S in Denmark and 85% of the shares in the Czech company Sinclair. Fenagy is newly formed and is in the process of developing and launching a new industrial product range in industrial heat pumps and cooling systems based on the environmentally friendly refrigerant CO2.The company is included in the consolidated financial statements with effect from 1 December and is reported as a financial asset. Sinclair is headquartered in Brno in the Czech Republic with sales offices in Slovakia, Hungary and Croatia. Sinclair sells air conditioning and heat pumps to a number of countries and most of the sales consist of HVAC products of its own Sinclair brand. IMPORTANT EVENTS 2020 The year has been greatly marked by the Covid-19 pandemic and its effects, although effects in the fourth quarter were less marked. Measures to counter the effects of the pandemic were taken immediately during the first quarter to mitigate the effects. It is estimated that the company will lose sales by approximately SEK 500 million as a result of the pandemic in 2020. Beijer Ref estimates that net savings of SEK 70 million have been effected during the quarter, including support measures of SEK 7 million. For 2020, the net savings amount to SEK 300 million, including support measures of SEK 57 million, which have been reported as a reduction in costs. Beijer Ref is relatively insensitive to economic cycles as about half of the company's sales are made to end customers active in the food industry. The general economic situation is having an effect, not least in the main markets of southern Europe. However, a possible decline is offset by the need for the food industry to switch to environmentally friendly systems, which increases the demand for the company’s products. This, together with an increased standard of living, is driving our sales development. The company’s current assessment is that Covid-19 will have a smaller effect on earnings 2021. Carrier sold its entire holding of shares in Beijer Ref in December, corresponding to 29.6% of the capital and 26.4% of the votes, to EQT, a Swedish investment company, listed on Nasdaq in Stockholm. IMPORTANT EVENTS AFTER THE END OF THE YEAR After the end of the financial year, the company acquired 100% of the shares of Complete Air Supply (CAS) in Australia. This company is active in HVAC and has a range that in particular complements ACD Trade well and which makes what Beijer offers for residential and commercial properties more comprehensive. CAS has annual sales of SEK 140 million, with 40 employees in 2 branches. The company will be included in the company's financial statements with effect from 1 February 2021. Per Bertland has informed Beijer Ref AB’s (publ) Board of Directors that he plans to step down as CEO. The transition will take place when a successor has been found or during the latter part of 2021 at the latest. DIVIDEND The board will propose to this year's Annual General Meeting an increased dividend to SEK 2.50 (1.75) and an additional dividend of 0.50 to compensate for lower dividend in 2020. The proposal is that the dividend is paid in two instalments, SEK 1.75 in April and SEK 1.25 in October, so as to meet the company's seasonal variations. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,684,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 11,046 shareholders on 31 December 2020 (8,750). The proportion of foreign shareholders amounts to 4.3% (4.5), with a capital shareholding of 55.3% (59.8). As of 31 December 2020, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 76.6% (78.2) of the votes and 61.1% (63.8) of the capital. Average sales of the Beijer share in the quarter amounted to 244,101 shares (207,819) per day at an average purchase price of SEK 295 (252). The closing price on 31 December 2020 was SEK 376 (275). As of 31 December 2020, the market value was SEK 47.8 billion (35.0). RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the Group was affected by Covid-19. The company has been taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etc., are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of three holdings, one of which (SEK 11M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The two other holdings (SEK 29M) is unlisted holdings and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 3,953M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 6,517M. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q4 2020 The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the fourth quarter of 2020. The presentation is held in English and lasts about 20 minutes. The meeting is on 28 January at 10.00 CET. Follow the link: https://financialhearings.com/event/12924. Teleconference: Dial-in number SE: +46 8 505 583 53 UK: +44 33 330 092 61 US: +1 833 526 8397 The presentation will also be available on the company's webÂsite www.beijerref.com from 08.40 on 28 January. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 28 January 2021 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)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 28 January 2021. This interim report has not been the subject of examination by the Company’s Auditors. 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 Annual Report 2020 will be published in March 2021. AGM will be held in Malmö on 15 April 2021. The Interim Report for the first quarter 2021 will be published on 22 April 2021. The Interim Report for the second quarter 2021 will be published on 15 July 2021. The Interim Report for the third quarter 2021 will be published on 19 October 2021. The Interim Report for the fourth quarter 2021 will be published on 27 January 2022. www.beijerref.com
Beijer Ref Q3 2020
Third quarter Net sales decreased by 2.9% in the third quarter compared to the same period last year and amounted to SEK 3,837M (3,953). Acquisition effects amounted to 3.3% (1.7%). Currency effects amounted to -4.5% (2.7%). Organic growth was -1.7% (5.2%), mainly due to lower refrigerant prices. Covid-19 has also had a negative impact, but the end of the quarter shows sales on a par with the previous year. The company's product area in HVAC business shows organic growth of 8.5%. The operating profit for the quarter amounted to SEK 342M (358), a decrease of 4.5% compared with the same period last year, which was mainly due to lower refrigerant prices. The operating margin amounted to 8.9% (9.1%). Profit before tax was SEK 329M (344). Net financial items are better than in the previous year, mainly due to improved cash flow and lower net liabilities. Profit per share before and after dilution amounted to SEK 1.92 (2.00) and SEK 1.91 (1.99) respectively, which is a decrease of 4%. Cash flow from current activities was positive during the quarter and amounts to SEK 381M (371). Unused credit amounts to SEK 1,484M (1,480). During the quarter, Beijer Ref has performed refinancing of SEK 2.9 billion of the granted credit facilities, originally maturing in November 2020. The refinancing is distributed among four different banking partners and with average maturity of three years and eight months. During the third quarter, Beijer Ref signed a new exclusive agreement with Carrier International Corporation until 2023 regarding the continued sale and distribution of Carrier's comfort cooling product lines on the European market. Nine-month period 2020 Net sales decreased by 6.4% during the period compared to the same period last year and amounted to SEK 10,654M (11,383). Acquisition effects amounted to 3.0% (8.5%). Currency effects amounted to -1.6% (3.0%). Organic growth was -7.8% (5.6%). The operating profit for the period amounted to SEK 780M (975), a decrease of 20% compared with the previous year. The operating margin amounted to 7.3% (8.6%). The reason is mainly lower net sales due to Covid-19 and lower prices of refrigerants. The operating profit includes net savings of approximately SEK 230M. Profit before tax was SEK 738M (932). Net financial items are better than in the previous year, mainly due to improved cash flow and lower net liabilities. Profit per share before and after dilution amounted to SEK 4.29 (5.41) and SEK 4.26 (5.37) respectively, which is a decrease of 21%. The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has annual sales of SEK 540M with 60 employees across 9 branches. The company is included in the group's financial statements with effect from 1 February 2020 and it has contributed SEK 346M to sales. The first nine months of the year have been greatly marked by the Covid-19 pandemic and its effects. Measures have been taken in all parts of the business to fend off some of the effects. Comments by the CEO The second quarter of the year was largely marked by closed markets with gradual recovery, a trend that has continued in the third quarter. Organic growth was -1.7% in the quarter. This is an acceptable figure in view of the ongoing Covid-19 pandemic and the continued fall in the price of refrigerants. It must also be taken into account that we have a challenging comparison with the previous year's heat wave in July. We regard August and September as normal months in terms of organic growth. The refrigeration segment shows negative organic growth of 8.5%, most of which can be explained by lower prices of refrigerants. Towards the end of the period, we have seen signs of some stabilisation in prices and a cautious assessment is that refrigerant prices will not have as great an impact on future quarters. The next reduction in the permitted amount of f-gases will take place in January 2021 when the permissible volume is reduced by a further 29% in Europe, which can affect the market. One cause for celebration is the HVAC business, which shows organic sales growth of 8.5%. Sales development has been strong in all geographical regions except Africa. In general, the OEM business is in a positive phase, even though organic growth was negative by 5% in the third quarter. This is an effect of temporarily deferred investment decisions by end customers due to the Covid-19 crisis. During the third quarter, orders received have gradually increased and are now at a relatively high level. The cost-cutting program launched at the end of March has reduced costs during the period by approximately SEK 80 million. The majority of the savings are from reduced personnel costs and consist of permanent as well as temporary reductions. We continue to work according to our global digitalisation strategy and during the period the business in Australia has implemented the same cloud-based platform as our companies in New Zealand. Europe is next and work on further implementations is already underway. Experience from the installations in Australia and New Zealand contributes to a smooth process. In parallel, e-commerce is being developed and this is constantly growing stronger. Despite an expanded security system, our operations in France suffered a cyber attack, which led to a shutdown of computer systems for a week. We estimate that the total effect of the outage amounts to approximately SEK 25 million in lower sales and approximately SEK 8 million in lower profits. We are now further reviewing operational security to avoid this type of attack in the future. A strong cash flow and a strong balance sheet make us well prepared for new acquisitions. There are a number of possibilities that we are analysing at the moment. In September, the largest shareholder Carrier sold approximately 9 million shares in one placement, which corresponds to 7.9% of the total number of shares. The offer was quickly oversubscribed, which we see as proof that the market has confidence in our business and our share and sees potential for further development. Carrier remains the largest shareholder and, as in the past, will be an important trading partner for us. It is important to point out that the transaction does not affect our good business relations. Although the outside world is currently uneasy, we have a positive outlook for the future. Megatrends benefit us, a decentralised organisation with motivated employees gives power for growth and a strong balance sheet opens up business opportunities for acquisitions. Per Bertland, CEO Third quarter of 2020 NET SALES Beijer Ref net sales decreased by 2.9 per cent to SEK 3,837 million (3,953) in the third quarter of 2020. Adjusted for exchange rate changes and acquisitions, organic change in net sales was -1.7 per cent (5.2). The main reason is lower prices of refrigerants. Covid-19 has also had a negative impact. The decrease in sales has affected all geographical segments but had the greatest impact in southern Europe and Africa and the least impact in Asia Pacific. Air conditioning has developed strongly in 2020 and has grown organically by 8.5%, largely thanks to good cooperation with Toshiba, Mitsubishi Heavy, Carrier and Gree. Sales development within HVAC has been strong in all regions except Africa. It has been particularly strong in the Nordic countries and Eastern Europe. A stronger Swedish krona resulted in currency effects of SEK -182 million (91), corresponding to -4.5 per cent (2.7), since most sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 342 million (358) during the third quarter, which is a decrease of 4.5 per cent. Exchange rate effects of SEK -14.1 million (9.7) are included in the operating profit figures. The operating margin amounted to 8.9 per cent (9.1). The reduction in profit is due to the effects of Covid-19, lower prices of refrigerants and a shift in the mix to a higher proportion of air conditioning. This is offset by net savings of approx. SEK 80 million. Operating profit also includes positive acquisition effects of SEK 7.5 million for the quarter. Profit before tax was SEK 329 million (344) and profit for the period was SEK 246 million (256). Profit per share before dilution amounted to SEK 1.92 (2.00). CASH FLOW Cash flow from current operations before changes in working capital during the third quarter was similar to previous years at SEK 381 million (371). Working capital decreased by SEK 73 million during the quarter compared with SEK 212 million during the corresponding period of the previous year. Normally, the Group binds capital during the first half of the year and frees up capital in the second half of the year, but during the current pandemic, cash flow has been positive in previous quarters. The change in working capital between the years is due primarily to a decrease in capital tied up in stock. Altogether, this gives cash flow from current operations after changes in working capital of SEK 455 million (583). Cash flow from current operations for the first nine months of the year before changes in working capital amounted to SEK 903 million in 2020, compared with SEK 1,030 million for the corresponding period in 2019. The change is mainly due to lower profit during the quarter. Working capital decreased by SEK 77 million during the first nine-month period compared with an increase of SEK 256 million the previous year. The change in working capital between the years is due primarily to improved supplier conditions. Altogether, this gives cash flow from current operations after changes in working capital of SEK 979 million (774). At the end of the period, credit facilities amounted to SEK 4,356 million (4,100), of which unutilised credits amounted to SEK 1,484 million (1,480). In total, net liabilities decreased from SEK 3,362 million to SEK 2,942 million. Refinancing of SEK 2.9 billion of the company's granted credit facilities occurred, divided over four different banking partners and with average maturity of three years and eight months. INVESTMENTS Cash flow from investment activities during the third quarter amounted to SEK -31 million (-36), which relates primarily to investments in fixed assets. Cash flow from investment activities during the period amounted to SEK -298 million (-103), which relates primarily to business combinations and investments in fixed assets. During the first quarter, the company acquired ACD Trade. COMPANY ACQUISITIONS During the third quarter of 2020 no acquisitions were made, but the company continuously evaluates different acquisition candidates in order to increase its range and consolidate the market. Acquisition activity has naturally been hampered by the ongoing pandemic and travel restrictions, but the company has intensified its acquisition discussions. SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER The first nine months of the year have been greatly marked by the Covid-19 pandemic and its effects, although effects in the third quarter were less marked. Measures to counter the effects of the pandemic were taken quickly in the first quarter to mitigate the effects. Beijer Ref estimates that net savings of SEK 80 million have been effected during the quarter, including support measures of SEK 6 million. For the nine-month period, the net savings amount to SEK 230 million, including support measures of SEK 50 million, which have been reported as a reduction in costs. Beijer Ref is relatively insensitive to economic cycles, but the general economic situation is having an effect, not least in our main markets in southern Europe. However, a possible decline is offset by the need for the food industry to switch to environmentally friendly systems, which increases the demand for our products. This, together with an increased standard of living, is driving our sales development forward. The company’s assessment is that Covid-19 will have a smaller effect on earnings for the remainder of 2020. During the third quarter, Beijer Ref signed a new exclusive agreement with Carrier International Corporation until 2023 regarding the continued sale and distribution of Carrier's comfort cooling product lines on the European market. The agreement has been drawn up on market terms. Carrier sold approximately 9 million shares in Beijer Ref in September, representing 7.9% of the total number of shares, but remains the largest shareholder and the distribution agreement with them is not affected by the sale. In early September, the company's subsidiary in France was the subject of a cyber attack caused by a computer virus. This meant that the subsidiary could not deliver any products for a week. The total effect of the interruption is estimated to amount to approximately SEK 25 million in reduced sales and SEK 8 million in reduced profit. Beijer Ref is now further reviewing operational security to avoid this type of intrusion in the future. DIVIDEND Due to the increasing spread of Covid-19, there is still uncertainty about how the markets will develop and the Board's previous ambition to call shareholders to an extraordinary general meeting in 2020 to decide on an extra dividend has therefore been reconsidered. The board considers that, under the circumstances, liquidity should remain in the company, thereby strengthening the company's scope for carrying out acquisitions. The Board will not call for an extraordinary general meeting. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,684,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 10,434 shareholders on 30 September 2020 (7,716). The proportion of foreign shareholders amounts to 4.5% (4.4), with a capital shareholding of 56.6% (57.6). As of 30 September 2020, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 77.1% (79.6) of the votes and 61.9% (66) of the capital. Average sales of the Beijer share in the quarter amounted to 177,558 shares (153,440) per day at an average purchase price of SEK 325 (217). The closing price on 30 September 2020 was SEK 296 (224). As of 30 September 2020, the market value was SEK 37.7 billion (28.5). RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the Group is affected by Covid-19. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etc., are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of two holdings, one of which (SEK 10M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The second holding (SEK 25M) is an unlisted holding and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 4,193M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 6,747M. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q3 2020 The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the third quarter of 2020. The presentation is held in English and lasts about 20 minutes. The meeting is on 20 October at 10.00 CET. Follow the link: https://financialhearings.com/event/12923. Teleconference: Dial-in number SE: +46 8 566 427 04 UK: +44 33 330 092 71 US: +1 833 823 05 90 The presentation will also be available on the company's webÂsite www.beijerref.com from 08.40 on 20 October. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 20 October 2020 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)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 20 October 2020. AUDITOR’S REPORT Beijer Ref AB (publ), corp. reg. no. 556040-8113 INTRODUCTION We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2020 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. SCOPE OF REVIEW We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Malmö, 20 October 2020 Deloitte AB Richard Peters Authorized Public Accountant 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 Interim Report for the fourth quarter 2020 will be published on 28 January 2021. Annual Report 2020 will be published in March 2021. AGM will be held in Malmö in April 2021. www.beijerref.com
Beijer Ref Q2 2020
Second quarter Net sales decreased by 16.5% in the second quarter compared to the same period last year and amounted to SEK 3,338M (3,996). Acquisition effects amounted to 2.6% (6.9%). Negative currency effects amounted to -1.3% (2.6%). Organic growth was negative at -17.8% (4.4%). The end of the quarter shows a recovery and sales on a par with the previous year. The operating profit for the quarter amounted to SEK 241 M (373), a decrease of 35% compared with the same period last year. The operating margin amounted to 7.2% (9.3%). The main reason is the effects of Covid-19, but also to some extent lower prices for refrigerants. Profit before tax was SEK 227M (359). Net financial items are in line with previous years despite increased borrowing in connection with the acquisition of ACD Trade at the beginning of the year. Profit per share before and after dilution amounted to SEK 1.31 (2.08) and SEK 1.30 (2.06) respectively, which is a decrease of 37%. Cash flow was positive during the quarter and cash flow from current operations amounts to SEK 327M (-45). Unutilised credits amount to SEK 913M (1,427). Beijer Ref has performed a procurement and will after the end of the quarter extend the outstanding credits that fall due in November 2020. During the quarter, the group entered into a partnership with compressor manufacturer Bitzer in Australia and New Zealand; the group has previously entered into partnerships for Europe, Asia and Africa. Under the new agreement, Beijer Ref will be able to offer a complete range of Bitzer's product portfolio. After the end of the quarter, Beijer Ref signed a new exclusive agreement with Carrier International Corporation until 2023 regarding the continued sale and distribution of Carrier's comfort cooling product lines on the European market. First half 2020 Net sales decreased by 8.3% in the first half compared to the same period last year and amounted to SEK 6,816M (7,430). Acquisition effects amounted to 2.9% (12.4%). Negative currency effects amounted to -0.3% (3.3%). Organic growth was negative at -10.9% (5.8%). The operating profit for the period amounted to SEK 438M (617), a decrease of 29% compared with the same period last year. The operating margin amounted to 6.4% (8.3%). The main reasons are the effects of Covid-19 and lower prices for refrigerants. Profit before tax was SEK 409M (588). Net financial items are unchanged compared with previous years despite increased borrowing in connection with the acquisition of ACD Trade at the beginning of the year. Profit per share before and after dilution amounted to SEK 2.37 (3.40) and SEK 2.35 (3.38) respectively, which is a decrease of 30%. The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has annual sales of SEK 540M with 60 employees across 9 branches. The company is included in the consolidated accounts with effect from 1 February 2020. Beijer Ref has been affected by Covid-19 since the middle of March. Measures have been taken in all parts of the business to fend off some of the effects. This has led to net savings amounting to approximately SEK 150M during the period and the total net savings for 2020 are estimated to be approximately SEK 200M. The assessment is that Covid-19 will have a smaller effect on the group's earnings for the remainder of 2020, but the situation is difficult to assess. Comments by the CEO Impact of Covid-19 in the second quarter As expected, the effects of Covid-19 have had full impact in the second quarter, a period characterised by virtually completely closed markets. Lost sales during the first half of the year amount to approximately SEK 1 billion, of which SEK 700 M can be attributed to the second quarter, where April and the first half of May were particularly heavily affected by the effects of the Corona pandemic. Since then, we have been able to monitor week by week how the markets have gradually opened up and sales at the end of June were on a par with the corresponding period last year, which is a faster recovery than our previous estimates. Covid-19 has undoubtedly been a severe test for Beijer Ref and the world at large and I am proud and grateful for how our organisation and employees have shown loyalty, drive and flexibility in a situation that has been extreme. It shows once again our strength as a global group. When we realised that the world was facing a pandemic, major cost adjustments were immediately performed. During the first half of the year, these measures resulted in a saving of approximately SEK 150 M. We are prepared and have planned for further savings, but are awaiting developments to see at what level the market stabilises during the third quarter. Although the period has been very different from previous years, we see clear signs that our HVAC segment is growing ever stronger. This is not only in the current year; if we look back, we can see several consecutive years in which air conditioning has seen increasing sales growth. We are seeing structural changes in the market, which means that air conditioning has in many respects gone from being something that was previously regarded as a luxury, but which is now increasingly regarded as a general everyday need. This becomes particularly clear during the summer months, even this year. It is therefore gratifying that we have concluded a new exclusivity agreement with Carrier for comfort cooling. During the period, we also signed an agreement with the compressor manufacturer Bitzer for the distribution of their products in Australia and New Zealand. Both partnerships strengthen Beijer Ref's global growth and presence. In general, our market is relatively insensitive to cyclical changes. It will continue to be driven by a number of megatrends, not least the phasing-out programme for environmentally hazardous HFC gases. The transition to greener alternatives is continuing, and we are working actively to provide the market with such offers. The digitalisation of our business is currently developing slightly faster than our previous estimates, partly due to the fact that we have launched e-commerce in new markets. The closures due to Covid-19 are also judged to have had an effect. During the quarter, our e-commerce has set new sales records. Price levels for refrigerants have so far this year been under some pressure but have still been relatively stable. However, the level is significantly lower than the corresponding period last year. Next year, the permitted volume of CO2 equivalents in Europe will fall further, which may mean some stock build-up at our customers in the autumn. Historically, business opportunities have arisen in times of crisis. In Beijer Ref's case, this may mean openings for new acquisitions in the coming quarters. We are following developments closely in order to be able to act quickly if opportunities arise. Beijer Ref has previously become stronger in difficult times. Now too, I see opportunities for Beijer Ref to consolidate its position in the market as a leading global refrigeration wholesaler. We continue to work methodically according to our established strategy so to ensure positive long-term development for Beijer Ref. Per Bertland, CEO Second quarter of 2020 NET SALES Beijer Ref’s net sales decreased by 16.5 per cent to SEK 3,338M (3,996) during the second quarter of 2020. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was negative at -17.8 per cent (4.4). The main reasons are the effects of Covid-19 and lower prices of refrigerants, since most of the largest markets, which together account for about 70 per cent of sales, were almost completely shut down from mid-March to early May. Beijer Ref estimates that sales have decreased by approximately SEK 700M mainly as a result of Covid-19. The decrease in sales has affected all geographical segments and had the greatest impact in southern Europe and Africa and the least impact in Asia Pacific. A stronger Swedish krona resulted in negative currency effects of SEK -63M (85), corresponding to -1.3 per cent (2.6), since most sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit amounted to SEK 241M (373) during the second quarter, which is a decrease of 35 per cent. Negative exchange rate effects of SEK -2M (11) are included in the operating profit figures. The operating margin amounted to 7.2 per cent (9.3). The reduction in profit is due to the effects of Covid-19, lower prices of refrigerants and a shift in the mix to a higher proportion of air conditioning. Profit before tax was SEK 227M (359) and profit for the period was SEK 168M (265). Profit per share before dilution amounted to SEK 1.31 (2.08). CASH FLOW Cash flow from current operations for the first 6 months of the year before changes in working capital amounted to SEK 521M in 2020, compared with SEK 659M in 2019. The change is mainly due to lower earnings during the quarter. Working capital increased by SEK 3M during the first half of the year compared with SEK -468M during the corresponding period of the previous year. Normally, the group binds capital in the second quarter and frees up capital in the second half of the year due to seasonal variations. The change in working capital between the years is due primarily to a smaller build-up of stocks and longer credit periods at suppliers. Altogether, this gives cash flow from current operations of SEK 524M (-191). At the end of the period, credit facilities amounted to SEK 3,925M (3,939), of which unutilised credits amounted to SEK 913M (1,427). The unutilised part has decreased due to borrowing in connection with the acquisition of ACD Trade and decided unpaid dividend. Net debt has increased from SEK 3,824M to SEK 3,087M. Of the total credit facilities, 70% are due in November 2020 and the remainder in 2022 and 2023. Beijer Ref performed a procurement during the quarter and will extend outstanding credits after the end of the quarter with a differentiated maturity structure. INVESTMENTS Cash flow from investment activities amounted to SEK -267M (-67), which relates primarily to business combinations and investments in fixed assets. During the first quarter, the company acquired ACD Trade. COMPANY ACQUISITIONS During the second quarter of 2020 no acquisitions were made, but Beijer Ref continuously evaluates different acquisition candidates in order to increase its range and consolidate the market. Acquisition activity has naturally been hampered by the ongoing pandemic and travel restrictions, but the group plans to resume this as soon as possible. SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER The second quarter of the year has in many ways been marked by Covid-19 and its effects on society and the stock market. At the beginning of 2020, macroeconomic conditions were relatively good, although a slight slowdown could be observed. However, the spread of the Covid-19 virus changed the situation drastically and the market reacted with sharp stock market falls and lower interest rates. So far, the consequences have been significant and it is too early at present to assess the overall effects the outbreak will have on Beijer Ref. From the middle of March to the beginning of May, markets representing 70% of the group's operations have been closed. It is estimated that the group's net sales have decreased by approximately SEK 700 M as a result of Covid-19. Measures have been taken to address the effects, including in the following areas: • Adjusted purchasing and inventory build-up, as well as extended credit periods • Postponed investment plans at our central warehouse in Lyon, France • Negotiations with landlords • Temporarily reduced working hours for employees • Redundancies and reductions in pay The group estimates that savings amounting to approximately SEK 150M have taken effect during the period and the total net savings for 2020 are estimated to be approximately SEK 200M. Received subsidy amount to SEK 44.8M and received rental discounts amount to SEK 2.5M. These has been reported as reduction of cost. The group’s assessment is that Covid-19 will have a smaller effect on earnings for the remainder of 2020, but the situation is difficult to assess. ANNUAL GENERAL MEETING The Annual General Meeting was held in special circumstances in Malmö on 25 June 2020. In view of the present uncertainty caused by the Covid-19 pandemic, the board decided to halve the dividend proposed to the Annual General Meeting. The dividend amounting to SEK 221M (190) was taken into account in figures as at 30 June 2020. The settlement date for the dividend was as previously announced 2 July 2020. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 10,246 shareholders on 30 June 2020 (7,893). The proportion of foreign shareholders amounts to 4.3% (4.5), with a capital shareholding of 59.5% (56.9). As of 30 June 2020, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 80% (79.1) of the votes and 66.9% (65.3) of the capital. Average sales of the Beijer share in the quarter amounted to 220,647 shares (208,173) per day at an average purchase price of SEK 234 (198). The closing price on 30 June 2020 was SEK 281 (229). As of 30 June 2020, the market value was SEK 35.6 billion (29.0). RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the Group will be affected by Covid-19. Most of the largest markets, which together make up about 70% of sales, has been almost completely shut down during part of March. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etc., are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of two holdings, one of which (SEK 11M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The second holding (SEK 25M) is an unlisted holding and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 4,183M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 7,205M. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q2 2020 The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the second quarter of 2020. The presentation is held in English and lasts about 20 minutes. The meeting is on 15 July at 10.00 CET. Follow the link: https://financialhearings.com/event/12922. Teleconference: Dial-in number SE: +46 8 50558355 UK: +44 33 330 090 32 US: +1 833 526 83 81 The presentation will also be available on the company's webÂsite www.beijerref.com from 08.40 on 15 July. For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report provides a fair overview of the operations, position and results of the Group and Parent Company, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group. Malmö, Sweden, 15 July 2020 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Greg Alcorn Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President 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 persons set out above, at 08.30 CET on 15 July 2020. 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
Beijer Ref AB Q1-2020
Impact of Covid-19 in the first quarter First quarter Net sales increased by 1.3% in the first quarter compared to the same period last year and amounted to SEK 3,478 million (3,434). Acquisition effects amounted to 3.3%. Positive currency effects amounted to 1.2%, while organic growth was negative by -3.2%. The operating profit for the quarter amounted to SEK 197 million (244), a decrease of 19% compared with the same period last year. The operating margin amounted to 5.7% (7.1%). The main reasons for this are the effects of Covid-19 and a lower share of refrigerant sales. Profit before tax was SEK 182 million (228). Net financial items are in line with previous years despite increased borrowing in connection with the acquisition of ACD Trade. Profit per share before and after dilution amounted to SEK 1.05 (1.33 and 1.32 respectively), a decrease of 21%. The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has annual sales of SEK 540 million with 60 employees across 9 branches. The company is included in the consolidated accounts with effect from 1 February 2020. The company's liquidity remained good during the quarter and the company's balance sheet is strong, with unutilised credits amounting to SEK 1,272million (1,588). The second quarter will be affected by the effects of Covid-19. Measures have been taken in all parts of the business to fend off some of the effects. The action programme will have an effect in the second quarter and the company expects net savings of approximately SEK 250 million in 2020. Due to the present uncertainty about the effects of Covid-19, the board has decided to postpone the Annual General Meeting and proposes that the dividend is halved to SEK 1.75. The new date for the Annual General Meeting is 25 June 2020. Comments by the CEO We shall come out of this crisis stronger The first quarter of the year had a strong start before the Covid-19 pandemic made an impact on the global economy. It is a scenario that we could not have foreseen, but which is nonetheless a reality to which we must relate. As soon as we realised the extent of the situation, necessary measures were taken to address these new market conditions. Our strong cohesion that characterises the group plays an especially important role now, because such rapid changes require teamwork and loyalty from our employees. They are our greatest asset and their safety and well-being will always be of the highest priority. Sales in the first two months of the quarter followed our expectations until the effects of Covid-19 became felt in the second half of March. Overall, net sales including acquisitions are slightly higher than in the same period last year. The operating margin for the quarter has been negatively affected and two factors in particular have had an effect. Refrigerant prices have continued to fall and are at a lower level than in the previous year. However, we are beginning to sense some stabilisation of this trend and in historical terms prices are still at a high level. The effect of Covid-19 has obviously also had an impact, with most of the largest markets, which together make up about 70% of sales, being almost completely shut down during part of March. Nevertheless, sales of air conditioning have been relatively strong during the quarter, especially in Central Europe, Eastern Europe and Asia Pacific. Our HVAC product area has thus experienced growth during the quarter, including the effects of the acquisition of ACD Trade in Australia at the beginning of the year. In the OEM business we see a slight increase in sales during the quarter, despite the fact that our factories in China and Italy had to close for a short period in February and March respectively. Since Beijer Ref's business is considered to be essential to society – our products are necessary for the proper functioning of the food industry – most of our 450 branches are open in order to provide service and maintenance, in some cases in very restrictive forms. Our assessment is that the effects of Covid-19 will have an even greater impact on the business in the second quarter. For this reason, we have taken measures in the form of cost savings. Examples of such measures are that management and most employees have voluntarily reduced their salaries. A large proportion of our employees have temporarily reduced working hours, the number of employees has been reduced and major investment projects have been temporarily paused. We have also negotiated improved terms with our suppliers. All in all, our cost base has been reduced in both the short and long term, while we will be able to gear up quickly again when the market turns up. We hope and believe that the third quarter will be more stable and that the market will return to a more normalised state by the end of the year. Historically, Beijer Ref has come out stronger after a crisis. We are part of an industry that is important to society, which means that the business does not come to a stop despite the fact that we are in an extreme situation. In circumstances such as these, there may be acquisition opportunities that would otherwise not have been possible. Our e-commerce has increased significantly during this period, which gives us a clear indication that our initiatives in digitalisation have been well worth the investment costs and here we will of course continue to invest for the future. Beijer Ref has always been and will remain a company that stands for stability, in both good and bad times. Due to the present Covid-19 crisis, the board has proposed halving the dividend and postponing the Annual General Meeting until the end of June. The group's strong balance sheet and cash flow provide us with security even in the present circumstances and we are determined to learn lessons from what we are going through now, in order to be even better in the future. 2020 will be challenging, but we see a bright future and will be strong on the day things turn. Per Bertland, CEO First quarter of 2020 NET SALES Beijer Ref increased its net sales by 1.3 per cent to SEK 3,478 million (3,434) in the first quarter of 2020. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was negative at -3.2 per cent (7.8). The main reasons are falling refrigerant prices and the effect of Covid-19, with most of the largest markets, which together make up about 70% of sales, being almost completely shut down during part of March. The company estimates that sales have decreased by approx. SEK 200 million as a result of Covid-19. A weakened Swedish krona resulted in positive currency effects of SEK 41 million (104), corresponding to 1.2 per cent (4.3), since most of the company’s sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 197 million (244) during the first quarter, which is a decrease of 19 per cent. Positive exchange rate effects of SEK 3 million (8) are included in the operating profit figures. The operating margin amounted to 5.7 per cent (7.1). The reduction in profit is due to lower prices of refrigerants, a shift in the mix to a higher proportion of air conditioning and the effects of Covid-19. Profit before tax was SEK 182 million (228). Profit for the period was SEK 135 million (170). Profit per share before dilution amounted to SEK 1.05 (1.33). CASH FLOW Cash flow from current operations before changes in working capital amounted to SEK 218 million in 2020, compared with SEK 278 million in 2019. The change is due to lower earnings during the quarter and a higher proportion of tax paid. Working capital increased by SEK 21 million during the quarter compared with SEK 42 million the previous year. This gives cash flow from current operations of SEK 197 million (236). The change in working capital between the years is due primarily to a smaller build-up of stocks during the quarter. At the end of the period, the company had credit facilities amounting to SEK 4,044 million (4,114), of which unutilised credits amounted to SEK 1,272 million (1,588). Of the total credit facilities, 70% are due in November 2020 and the remainder in 2022 and 2023. INVESTMENTS Cash flow from investment activities amounted to SEK -218 million (-27), which relates primarily to business combinations and investments in fixed assets. During the first quarter, the company acquired ACD Trade, while no acquisitions were made in the corresponding period last year. COMPANY ACQUISITIONS The acquisition of the wholesale company ACD Trade in Australia was completed in the first quarter of 2020. The company has annual sales of SEK 540 million with 60 employees across 9 branches. The company is included in the consolidated accounts with effect from 1 February 2020. With the acquisition, Beijer Ref will be an even stronger player in Australia and the Asia Pacific region will account for about 20 per cent of the company's future sales. SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER The first quarter of the year has in many ways been marked by the new Covid-19 virus and its effects on society and the stock market. At the beginning of 2020, macroeconomic conditions were relatively good, although a slight slowdown could be observed. However, the spread of the Covid-19 virus changed the situation drastically and the market reacted with sharp stock market falls and lower interest rates. So far, the consequences have been significant and it is too early at present to assess the overall effects the outbreak will have on Beijer Ref. From mid-March onwards, markets representing 70% of the company's operations have been closed. In China, which was the first out, production is in full swing and demand is increasing. The factory in Italy is also open from 6 April and has a good stock of orders. The company estimates that sales have decreased by approx. SEK 200 million as a result of Covid-19. Measures have been taken to address the effects, including in the following areas: • Adjusted purchasing and inventory build-up, as well as extended credit periods • Postponed investment plans at the company's central warehouse in Lyon, France • Negotiations with landlords • Temporarily reduced working hours for employees • Redundancies and reductions in pay The action programme will have an effect from the second quarter onwards and the company expects net savings of approximately SEK 250 million during 2020. ANNUAL GENERAL MEETING The Annual General Meeting will be held in Malmö on 25 June 2020. The venue will be advised later. For safety reasons, the meeting will be kept as short as possible to reduce the risk of infection. In view of the present uncertainty caused by the Covid-19 pandemic, the board has decided to halve the dividend proposed to the Annual General Meeting. It is the board’s ambition to call shareholders to an extraordinary general meeting later this year to decide on an additional dividend, if the market has stabilised and normalised. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 9,101 shareholders on 31 March 2020 (7,313). The proportion of foreign shareholders amounts to 4.5% (4.6), corresponding to a capital shareholding of 59.6% (54.8). As of 31 March 2020, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 78.6% (80.4) of the votes and 64.5% (67.5) of the capital. Average sales of the Beijer share in the quarter amounted to 184,243 shares (210,805) per day at an average purchase price of SEK 233 (150). The closing price on 31 March 2020 was SEK 179 (150). As of 31 March 2020, the market value was SEK 22.8 billion (19.4). RISK DESCRIPTION Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services. Like other global companies, Beijer Ref is affected by pandemics and in 2020 the Group will be affected by Covid-19. Most of the largest markets, which together make up about 70% of sales, has been almost completely shut down during part of March. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations. Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etc., are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report. Financial assets and liabilities by category and level of valuation The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value. Financial assets valued at fair value through other comprehensive income consist of two holdings, one of which (SEK 6 million) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 3,731 million on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 6,934 million. Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates. TELEPHONE CONFERENCE Q1 2020 The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the first quarter of 2020. The presentation is held in English and lasts about 20 minutes. The meeting is on 21 April at 10.00 CET. Follow the link: https://financialhearings.com/event/12675. Teleconference: Dial-in number SE: +46 8 566 426 93 UK: +44 33 330 090 32 US: +1 833 526 83 81 The presentation will also be available on the company's webÂsite www.beijerref.com from 08.40 on 21 April. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 21 April 2020 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This report 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 21 April 2020. This interim report has not been the subject of examination by the Company’s Auditors. 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 new date for the Annual General Meeting is 25 June 2020. • The Interim Report for the second quarter 2020 will be published on 15 July 2020. • The Interim Report for the third quarter 2020 will be published on 20 October 2020. • The Interim Report for the fourth quarter 2020 will be published on 28 January 2021. www.beijerref.com 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.
Beijer Ref AB Q4-2019
Increased profits, acquisition and increased dividend Fourth quarter Net sales increased by 4.3% in the fourth quarter compared to the same period last year and amounted to SEK 3,435 million (3,293). Organic growth amounted to 0.9% and the rest of the increase represents positive currency effects. The operating profit for the quarter amounted to SEK 256 million (229), an increase of 11.8% compared with the same period last year. The operating margin amounted to 7.4% (6.9%). Net profit totalled SEK 183 million (164). Profit per share amounted to SEK 1.42 (1.28). The company's cash flow has been strong during the quarter. Unused credit amounts to SEK 1,631 million (1,433). After the quarter, ACD Trade in Australia with an annual net turnover of SEK 540 million has been acquired. Full year 2019 Net sales increased by 13.9% in 2019 compared to the previous year and amounted to SEK 14,817 million (13,015). Organic growth amounted to 4.4%, acquisition effects to 6.3% and the rest represents positive currency effects. The operating profit for the year amounted to SEK 1,230 million (1,085) despite fall in refrigerant prices. This is an increase of 13% compared with the previous year. The operating margin amounted to 8.3% (8.3%). Net profit totalled SEK 873 million (780). Profit per share amounted to SEK 6.82 (6.07). With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change. The Board of Directors proposes to the Annual General Meeting an increased dividend of SEK 3.50 per share (3.00). Comments by the CEO Strong end to a good year 2019 was yet another strong year for Beijer Ref. The group's net sales amounted to SEK 14.8 billion, an increase of almost 14% compared with the previous year. Organic growth for the year amounted to 4.4%. The operating margin was 8.3%, which is in line with previous years, despite the fact that both prices and volume of the refrigerants have gradually fallen during the year. Operating profit increased by 13.3% compared with the previous year. The fourth quarter began somewhat slowly, while the second half was significantly stronger. During the period, the group's sales and profit increased compared with the same quarter the previous year. Net sales increased by 4.3%. The increase in sales is mainly due to increased sales of HVAC and OEM. The operating margin was 7.4%, which is 0.5 percentage points better than the previous year. The period does not contain any acquisition effects. Both the quarter and the year as a whole have been marked by a fall in the price level of refrigerants and a decrease in demand for refrigerants, which has had a negative impact on Beijer Ref's earnings. At the same time, HVAC and OEM have developed well during the quarter. Commercial cooling, apart from refrigerants, is stable and together with HVAC and OEM more than well compensates for the negative development of refrigerants. Nevertheless, it is reasonable to assume that refrigerant prices will be at a historically high level until 2030 when the phasing-out of F-gases under EU regulations will be completed. Meanwhile, Beijer Ref is well equipped to provide the market with environmentally friendly alternatives. Demand for such solutions is increasing and we act accordingly; among other things, we are doubling our OEM production capacity by investing in a new plant in Padua, Italy. We are also investing in our plant in Gothenburg to meet the increased demand for natural refrigerants such as CO2 and propane. At the same time, we are expanding the group's educational academies, where we are increasing knowledge about natural refrigerants. During the year we have opened new academies in Europe and China, which is also a good way to build relationships with our customers and suppliers. All regions show sales growth in the fourth quarter, in particular Africa and Asia Pacific, which had peak season during the period. The acquisition of Tecsa Reco in South Africa has developed well and is now contributing to improving the group’s margins. In Australia, the restructuring of Kirby has gone according to plan, which has led to improved margins compared to the same period in the previous year. During the quarter, it became clear that our Australian operations will be coordinated under one headquarters and one distribution and logistics centre, an initiative that will provide synergies in an important market. Southern Europe has also had a positive increase in sales and profit during the quarter, which is mainly driven by demand for air conditioning. The Nordic region, Central Europe and Eastern Europe have been the most affected by lower refrigerant prices. However, the Nordic region remains our most profitable region, and it is also the most advanced in conversion to new environmental technologies. Acquisitions are always high on our list of priorities. 2018 was an acquisition-intensive year and 2019 was largely devoted to consolidating the new companies into our group structure. It therefore feels good to start the new year with the acquisition of ACD Trade in Australia. A highly interesting company with annual sales of approximately SEK 540 million that distributes well-known HVAC brands. With a strong cash flow and a strong balance sheet behind us, we have every opportunity to continue to grow, both organically and through acquisitions. Together with cost control and a growing market in great need of our products, we are entering 2020 with confidence. Finally, I am pleased to confirm to our shareholders that Beijer Ref's Board of Directors proposes an increase in dividend to SEK 3.50 (3.00). Per Bertland, CEO Fourth quarter of 2019 NET SALES Beijer Ref increased net sales by 4.3 per cent to SEK 3,435million (3,293) in the fourth quarter of 2019, of which 0.9% was organic sales growth. All regions demonstrate an increase in sales. Both Australia and Africa show strong sales growth during the quarter, which offsets the Group's seasonal variations. Commercial refrigeration represents 54% (56%) of the company's sales, 35% (33%) is HVAC and OEM accounts for 11% (11%) of total sales. The latter two show organic growth of approximately 7% and 6% respectively during the quarter. Refrigerants’ share of total business continues to decline. A weakened Swedish krona resulted in positive currency effects of SEK 111 million (117), corresponding to 3.4% (5.3%), since most of the company’s sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 256 million (229) during the fourth quarter, which is an increase of 12%. The operating margin amounted to 7.4% (6.9%). Adjusted for IFRS 16 effects, the company's net financial items are SEK -6 million (-12), which is lower than the previous year in spite of increased borrowing. The pre-tax profit was SEK 242 million (216). The effective tax rate for the full year is 25.7% (26.1%). Net profit was SEK 183 million (164). Profit per share amounted to SEK 1.42 (1.28), an increase of 11%. CASH FLOW Cash flow from current operations before changes in working capital amounted to SEK 1,280 million in 2019, compared with SEK 949 million in 2018. Operating profit is higher in the quarter, but non-cash items increased by SEK 297 million in respect of depreciation of usage rights assets due to the transition to IFRS 16. Tax paid during the quarter is also higher, due to higher profits. Working capital increased by SEK 231 million during the quarter, compared with a decrease of SEK 326 million the previous year. This gives a positive cash flow from operating activities of SEK 481 million, compared with SEK 447 million the previous year. The change in working capital between the years is mainly explained by a lower build-up of stocks. The company has not extended SEK 150 million for the certificate programme, which was launched at the end of 2018. At the end of the period, the group had unutilised credit facilities totalling SEK 1,631 million (1,433). INVESTMENTS The group's net investments in fixed assets including operating acquisitions amounted to SEK 33m (70) during the quarter and mainly relate to investments in ongoing new installations at the company's production unit and a new ERP system in the Netherlands and Australia. COMPANY ACQUISITIONS The company continuously evaluates new acquisition opportunities but has not completed any acquisitions during the period. For further information, see significant events after the quarter. SIGNIFICANT EVENTS AFTER THE QUARTER Beijer Ref AB has entered into an agreement to acquire the shares of the Australian HVAC company ACD Trade. ACD Trade is a leading company in HVAC distribution in Australia with some 60 employees. The company provides the market with well-known brands and a wide product range that includes both plant and components. Sales are made via a distribution network with nine branches. Reported annual sales amount to approximately SEK 540 million. Beijer Ref acquires ACD Holding Company Pty Ltd. from Cliplight US Holdings, Inc. The group is already established in Australia through Beijer Ref Australia and Kirby. The acquisition strengthens the group's presence in the Asia Pacific region. The parties have reached a binding agreement with effect from 27 January and the takeover is scheduled for 31 January 2020. ACD Trade will continue to be run in its existing form and will be included in the company's accounts with effect from 1 February 2020. The acquisition is not expected to significantly affect the group's earnings or financial position, but makes a positive contribution to the company's profit development. Beijer Ref has decided to build a common central warehouse at the company's distribution centre in Lyon, France. Construction begins in autumn 2020 and the plant will be completed by the end of 2022. The investment is estimated to amount to approximately €10M. The facility will have a clear green profile. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one vote respectively. Beijer Ref had 8,750 shareholders on 31 December 2019 (6,721). The proportion of foreign shareholders amounts to 4.4% (4.7%), corresponding to a capital shareholding of 57.6% (54.4%). As per 31 December 2019, there are 9,918,720 A shares and 117,515,970 B shares. The company's ten largest shareholders hold 63.8% (68.9%) of the votes and 78.3% (81.2%) of the capital. Average sales of the Beijer share in the quarter amounted to 207,819 shares (190,930) per day at an average purchase price of SEK 252 (149). The closing price on 31 December was SEK 275 (149). RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. IFRS 16 Leases IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use. The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years. Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease. Financial assets and liabilities by category and measurement level Financial assets and liabilities consist of financial assets valued at fair value and also financial assets and liabilities valued to discounted acquisition cost. Financial assets valued at fair value consist of two holding, one of which (SEK 16 million) refers to listed shares and is valued at market value on the balance sheet date (measurement level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (measurement level 3). Financial assets valued at discounted acquisition cost, such as accounts receivables including other receivables and liquid funds, amount to SEK 3 466 million on the balance sheet date and financial liabilities, such as trade creditor including other liabilities, borrowing and other long-term liabilities, amount to SEK 6 256 million. Financial interest-bearing liabilities such as borrowing linked to financing are valued at discounted acquisition cost and are considered representing a reasonable approximation of the fair value. WEB MEETING Q4 2019 The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the fourth quarter of 2019. The presentation is held in English and lasts about 20 minutes. The meeting is on 30 January at 10.00 CET. Webcast: https://tv.streamfabriken.com/beijer-ref-q4-2019 Teleconference: Dial-in number SE: +46 8 566 426 95 UK: +44 33 330 090 30 US: +1 833 526 83 83 The presentation will also be available on the company's webÂsite www.beijerref.com. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 30 January 2020 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)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 30 January 2020. This interim report has not been the subject of examination by the Company’s Auditors. 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 • Annual Report 2019 will be published on 26 March 2020. • AGM will be held in Malmö on 16 April 2020. • The Interim Report for the first quarter 2020 will be published on 21 April 2020. • The Interim Report for the second quarter 2020 will be published on 15 July 2020. • The Interim Report for the third quarter 2020 will be published on 20 October 2020. • The Interim Report for the fourth quarter 2020 will be published on 28 January 2021. www.beijerref.com
Beijer Ref AB Q3-2019
Growth despite lower prices for refrigerants Net sales increased by 9,6% in the third quarter compared to the same period last year and amounted to SEK 3,953 million (3,607). Organic growth was 5.2%. The operating profit for the quarter amounted to SEK 358 million (339), an increase of 5.5% compared with the same period last year. The operating margin was 9.1% (9.4%), of which 0.2% is a positive IFRS 16 effect. Profit for the period totalled SEK 256 million (240). Profit per share amounted to SEK 2.00 (1.88). The company's liquidity is good and unutilised credit amounts to SEK 1,453 million (589). With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change. The conversion had a positive effect of SEK 7 million on operating profit and of SEK 0.5 million on net profit. Comments by the CEO Sustainable growth During the third quarter, the group's sales and profit increased compared with the same period the previous year. Net sales amounted to SEK 3,953 million (SEK 3,607 million), which is an increase of 9.6%, of which 5.2% is organic. The increase in sales is mainly due to increased sales of HVAC and OEM. Operating profit during the quarter amounted to SEK 358 million (SEK 339 million) and the operating margin was 9.1% (9.4%). The margin is slightly lower than the previous year. The main reason is a continuing downward price trend for refrigerants. Our assessment has always been that the price level will become stabilised, something that we have not yet seen. In the long run, the phasing-out programme under the European F-gas regulation, which runs until 2030, should mean a price increase for refrigerants. There are also tougher measures to prevent the illegal trade in refrigerants, something about which we take a positive view. The percentage of refrigerants in total sales is falling and is expected to continue to decrease. Of the group's other product segments, corresponding to approximately 90% of the total business, sales in HVAC now account for 38% (34%) of the company's turnover. The company's OEM product range also continues to increase its share of sales and now accounts for approximately 10% (9%). To be able to satisfy the market's growing demand for environmentally friendly refrigeration technology, Beijer Ref has decided to invest in a new production facility for OEM manufacturing in Padua, Italy. As well as production and storage, the building will accommodate offices and a training and development centre for natural refrigerants. The facility is expected to be ready by the end of 2020. We will also invest in a production line to handle natural, environmentally friendly refrigerants such as CO2 and propane at the company's filling unit in Gothenburg. All regions except the Nordic region show growth in both sales and profit. If we look at our geographical regions, the outcome is affected to some extent by seasonal variations. It is gratifying that both Asia Pacific and Africa are showing profit improvements. In Asia Pacific, we have also implemented a number of measures that have contributed to both sales growth and better margins. In Africa, we have received new orders for green, environmentally friendly technology. The market's interest in our environmentally friendly refrigeration technology continues to increase, for which reason we are educating customers, suppliers and our own personnel in handling natural refrigerants. Our training concept Beijer Ref Academy, which is concentrating on exactly this, is highly appreciated. Our first academy was inaugurated about a year ago in Italy. Now we have established further academies in France and China and more are in the pipeline. Beijer Ref has grown to be active today in 36 countries. Although the companies work independently, we also work as a group with common basic values and centralised projects. To contribute to development and increase knowledge, we have launched the Beijer Ref Exchange Programme during the quarter. Employees from different parts of Beijer Ref have the opportunity to try a new job at another company within the group. I am convinced that this type of activity strengthens us as a group and helps to increase motivation and team spirit and provides us with new insights. My assessment is that we have good opportunities for continued growth, despite uncertain external factors. Acquisitions are an important part of the strategy and are evaluated continuously. The company's liquidity is good and the group has a strong cash flow, which means that we have the capacity to perform further acquisitions. Overall, we have coped very well with the conditions prevailing in the market. Our strategy is firmly anchored within the company, which puts us in a strong position for the future. Per Bertland, CEO Third quarter of 2019 NET SALES Beijer Ref increased its net sales by 9.6 per cent to SEK 3,953 million (3,607) in the third quarter of 2019, 1.7% of which is explained by the acquisitions made in 2018. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 5.2 per cent. All regions except the Nordics show sales growth. Commercial refrigeration represents 52% (57%) of the company's sales, 38% (34%) is HVAC and OEM accounts for 10% (9%) of total sales. The latter two show organic growth of 18% and 14% respectively during the quarter. Refrigerants continue to decrease and represent 12% (14%) of total sales. A weakened Swedish krona resulted in positive currency effects of SEK 91 million (195), corresponding to 2.7% (8.8%), since most of the company’s sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 358 million (339) during the third quarter, an increase of 5.5 per cent. The operating margin was 9.1% (9.4%), for which the main explanation is lower prices for refrigerants. Adjusted for IFRS 16 effects, the company's net financial items are in principle unchanged compared with the previous year despite increased borrowing. The pre-tax profit was SEK 344 million (331). Profit for the period was SEK 256 million (240). Profit per share amounted to SEK 2.00 (1.88). CASH FLOW Cash flow from current operations before changes in working capital amounted to SEK 371 million in 2019, compared with SEK 390 million in 2018. Operating profit is higher in the quarter, but non-cash items increased by SEK 76 million in respect of depreciation of usage rights assets due to the transition to IFRS 16. Taxes paid during the quarter are higher, which explains the decrease. Working capital decreased by SEK 212 million during the quarter compared with an increase of SEK 198 million the previous year. This gives a positive cash flow from operating activities of SEK 583 million, compared with SEK 191 million the previous year. The change in working capital between the years is mainly explained by a lower build-up of stocks. At the end of the period, the group had unutilised credit facilities totalling SEK 1,453 million (589). INVESTMENTS The group’s investments in fixed assets including business combinations totalled SEK 36 million (36) during the quarter and refer primarily to investments in fixed assets. COMPANY ACQUISITIONS The group has made a minor supplementary acquisition during the quarter of the remaining shares (40%) in AC & Ref Parts CQ Patton Pty Ltd in Australia and now owns 100% of the company. The company has annual sales of approximately SEK 25 million through two sales branches. The company is included in its entirety in the consolidated accounts with effect from 1 July 2019. SIGNIFICANT EVENTS AFTER THE QUARTER Beijer Ref has taken a decision and received planning permission to invest in a new factory for green refrigeration technology so as to be able to satisfy market demand for refrigeration units based on natural refrigerants. Production capacity is therefore increased at the subsidiary SCM Frigo S.p.a., outside Padua in Italy, one of Beijer Ref's fastest growing subsidiaries. The company develops refrigeration units that are based on the environmentally friendly refrigerant CO2. SCM Frigo is one of the global leaders in the market. Demand for environmentally friendly refrigeration units is driven by the European F-gas regulation and a general green trend. The regulation means that F-gases, which are the most important refrigerants for industrial and commercial cooling, must be reduced by 80% by 2030. Construction begins in the autumn of 2019 and the plant will be completed at the end of the fourth quarter of 2020. The investment is estimated to amount to approximately 10 million euros. The facility will have a clear green profile. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one vote respectively. Beijer Ref had 7,716 shareholders on 30 September 2019 (7,214). The proportion of foreign shareholders amounts to 4.4% (4.9%), corresponding to a capital shareholding of 57.6% (57.0%). As per 30 September 2019, there are 9,918,720 A shares and 117,515,970 B shares. The company's ten largest shareholders hold 79.7% (80.7%) of the votes and 66.1% (68.1%) of the capital. Average sales of the Beijer share in the quarter amounted to 153,439 shares (113,766) per day at an average purchase price of SEK 217 (181). The closing price on 30 September was SEK 224 (185). RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. IFRS 16 Leases IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use. The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years. Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease. Financial assets and liabilities by category and measurement level Financial assets and liabilities consist of financial assets valued at fair value and also financial assets and liabilities valued to discounted acquisition cost. Financial assets valued at fair value consist of two holding, one of which (SEK 19 million) refers to listed shares and is valued at market value on the balance sheet date (measurement level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (measurement level 3). Financial assets valued at discounted acquisition cost, such as accounts receivables including other receivables and liquid funds, amount to SEK 4 175 million on the balance sheet date and financial liabilities, such as trade creditor including other liabilities, borrowing and other long-term liabilities, amount to SEK 7 200 million. Financial interest-bearing liabilities such as borrowing linked to financing are valued at discounted acquisition cost and are considered representing a reasonable approximation of the fair value. WEB MEETING Q3 2019 The company invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the third quarter of 2019. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 22 October at 10.00 CET. Email your wish to participate at info@beijerref.com and a link will be distributed before the meeting. Internet connection is required. The presentation will be available on the company's website www.beijerref.com. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 22 October 2019 Beijer Ref AB (publ) Per Bertland, CEO & President For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)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 22 October 2019. AUDITOR’S REPORT Beijer Ref AB (publ), corp. reg. no. 556040-8113 INTRODUCTION We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2019 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. SCOPE OF REVIEW We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Malmö, 22 October 2019 PricewaterhouseCoopers AB Cecilia Andrén Dorselius Mikael Nilsson Authorized Public Accountant Authorized Public Accountant Auditor in charge 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 Interim Report for the fourth quarter 2019 will be published on 30 January 2020. Annual Report 2019 will be published in March 2020. AGM will be held in Malmö on 16 April 2020. The Interim Report for the first quarter 2020 will be published on 21 April 2020. The Interim Report for the second quarter 2020 will be published on 15 July 2020. The Interim Report for the third quarter 2020 will be published on 20 October 2020. The Interim Report for the fourth quarter 2020 will be published on 28 January 2021. www.beijerref.com
Beijer Ref AB Q2-2019
Continued strong growth Net sales increased by 14% in the second quarter compared to the same period last year and amounted to SEK 3,996 million (3,510). Organic growth was 4.4%. The operating profit for the quarter amounted to SEK 373 million (345), an increase of 8% compared with the same period last year. The operating margin was 9.3% (9.8%), of which 0.2% is a positive IFRS 16 effect. Profit for the period totalled SEK 265 million (255). Profit per share amounted to SEK 2.08 (1.98). The company's liquidity is good and unutilised credit amounts to SEK 1427 million (393). With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change. The conversion affected operating profit positively by SEK 7 million and net profit by SEK 0.1 million. The equity ratio has decreased by 3.3 percentage points as a result of an increased balance sheet total. Comments by the CEO Environmentally-friendly refrigeration technology and air conditioning drive growth The market during the quarter was characterised by continuing strong demand and both sales and profit increased, both organically and through acquisitions. In total, net sales amounted to SEK 3,996 million (3,510), an increase of 14% of which 7% is acquired sales and more than 4% is organic growth. The operating margin, including the effect of IFRS 16, amounted to 9.3% (9.8%). The margin is slightly lower than in the previous year, mainly due to the price of refrigerants not being at the same high level as in 2018. One of the main features of the quarter is that our OEM and HVAC segments are moving forward strongly, especially in Europe. Both segments are driven by the EU's phasing-out programme for HFC gases, which are being gradually replaced by environmentally friendly alternatives. The OEM segment grew in total by 32% during the quarter and accounted for 10% of the group's sales. The warm summers of recent years in Europe have contributed to an increased interest in heat pumps, since these are also used for air conditioning. This, combined with a generally high demand, contributes to the strong development of the HVAC segment. Long-term partnerships with strong brands, such as Toshiba, Carrier and Mitsubishi Heavy Industries, give us a good market position. In total, sales in HVAC increased by 37% and now represent 41% of the group's sales. The quarter has tough comparative figures, since 2018 was a year when the price of refrigerants was at a historically high level. From autumn 2018 and during the first half of 2019, prices have gradually fallen, which affects the commercial refrigeration segment negatively, although volume sales did not decline at the same rate. The decline in sales is well offset by the growth of other segments, which means that the importance for the group of the price trend for refrigerants is declining. The assessment is that the price of refrigerants will stabilise during the autumn. The phasing-out period runs until 2030, with the next major reduction in import quotas in 2021. All of our geographical regions show growth apart from Eastern Europe, which has been most affected by the price trend for refrigerants. It is positive that the African market is showing growth after having previously been in recession, and we see potential for continuing improvement in earnings. In general, we can see how more and more countries outside Europe are committing to resolutions that involve phasing out HFC gases. Recently, for example, Cuba became the 73rd country to sign the Kigali agreement and more are being added on an ongoing basis. The agreement means that the consumption of HFC gases is to be reduced by more than 80% over the next 30 years. During the autumn, we will start a project to expand our production capacity in OEM in order to better meet the increasing demand for eco-friendly refrigeration technology. We will also invest in our own production line, which will handle natural, environmentally friendly refrigerants at the company's filling unit in Gothenburg. Our market is growing globally and we have much left to do. The group's liquidity is good, which opens up opportunities for new acquisitions. Overall, we are entering the third quarter in excellent shape. Per Bertland, CEO Second quarter of 2019 NET SALES Beijer Ref increased its net sales by 14 per cent to SEK 3,996 million (3,510) in the second quarter of 2019, 7% of which is explained by the acquisitions made in 2018. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 4.4 per cent. All regions except Eastern Europe show sales growth. Commercial refrigeration represents 49% of the company's sales, 41% is air conditioning and OEM accounts for 10% of total sales. The latter two show a 20% increase in sales during the quarter, while dependence on refrigerants has decreased. A weakened Swedish krona resulted in positive currency effects of SEK 85 million (133), corresponding to 2.6% (5.8), since most of the company’s sales are in currencies other than Swedish kronor. PROFIT The group’s operating profit totalled SEK 373 million (345) during the second quarter, an increase of 8 per cent. The operating margin was 9.3% (9.8%), the main explanation for which is lower prices for refrigerants and that companies acquired during 2018 have a slightly lower margin. Adjusted for IFRS 16 effect, the company's net financial items are in principle unchanged compared with the previous year despite increased borrowing. The pre-tax profit was SEK 359 million (342). Profit for the period was SEK 265 million (255). Profit per share amounted to SEK 2.08 (1.98). CASH FLOW Cash flow from current operations before changes in working capital amounted to SEK 381 million in 2019, compared with SEK 286 million in 2018. The increase is due to improved profits during the quarter and a positive effect of SEK 74 million attributable to depreciation of usage rights assets arising from the transition to IFRS 16 (leasing). The corresponding amount of SEK 74 m is reported as a decrease in financing activities. Working capital increased by SEK 426 million during the quarter compared with SEK 275 million the previous year. This gives cash flow from operating activities of SEK -45 million, compared with SEK 11 million the previous year. The change in working capital from year to year is due primarily increasing capital build-up during the quarter. At the end of the period, the group had unutilised credit facilities totalling SEK 1,427 million (393). INVESTMENTS The group’s investments in fixed assets including business combinations totalled SEK 40 million (626) during the quarter and refer primarily to investments in fixed assets. In the previous year, Kirby HVAC & Refrigeration Pty Ltd was acquired during the quarter. COMPANY ACQUISITIONS No major acquisitions were made during the quarter, but the company is continuously evaluating new opportunities for growth and complementary acquisitions. The group made a small asset acquisition in Switzerland of a distributor of insulation materials, Durissol, amounting to SEK 3.6 m, which gives the company exclusive rights to their products for five years. SIGNIFICANT EVENTS AFTER THE QUARTER The group has made a minor supplementary acquisition after the quarter of the remaining shares in AC & Ref Parts CQ Patton Pty Ltd in Australia and now owns 100% of the company. The company has annual sales of approximately SEK 25 million through two sales branches. The company is included in its entirety in the consolidated accounts with effect from 1 July 2019. THE SHARE Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, with ten and one vote respectively. Beijer Ref had 7,893 shareholders on 28 June 2019. At present there are 9,918,720 A shares and 117,515,970 B shares. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. IFRS 16 Leases IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use. The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years. Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease. Financial assets and liabilities by category and measurement level Financial assets and liabilities consist of financial assets valued at fair value and also financial assets and liabilities valued to discounted acquisition cost. Financial assets valued at fair value consist of two holding, one of which (SEK 22 million) refers to listed shares and is valued at market value on the balance sheet date (measurement level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (measurement level 3). Financial assets valued at discounted acquisition cost, such as accounts receivables including other receivables and liquid funds, amount to SEK 4 131 million on the balance sheet date and financial liabilities, such as trade creditor including other liabilities, borrowing and other long-term liabilities, amount to SEK 7 432 million. Financial interest-bearing liabilities such as borrowing linked to financing are valued at discounted acquisition cost and are considered representing a reasonable approximation of the fair value. WEB MEETING Q2 2019 The company invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the second quarter of 2019. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 12 July at 10.00 CET. Email your wish to participate at info@beijerref.com and a link will be distributed before the meeting. Internet connection is required. The presentation will be available on the company's website www.beijerref.com. For more information on this report: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden, 12 July 2019 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Chris Nelson Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President 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 12 July 2019. 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
Beijer Ref AB Q1-2019
Continued strong development Net Sales increased by 32 per cent in the first quarter compared to the same period last year and amounted to SEK 3,434 million (2,605). Organic growth was 8%. The operating profit for the quarter amounted to SEK 244 million (172), an increase of 42% compared with the same period last year. The operating margin was 7.1% (6.6%), of which 0.2% is a positive IFRS 16 effect. Profit for the period totalled SEK 170 million (121). Profit per share totalled SEK 1.33 (0.92). With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change. The conversion affected operating profit positively by SEK 7 million and net profit by SEK 1 million. The equity ratio has decreased by 4 percentage points due to the increased balance sheet total. As of 2 January 2019, the Beijer Ref share is being traded on Nasdaq Stockholm's Large Cap. Comments by the CEO The acquisitions deliver The first quarter of 2019 lived up to the targets we had set. In total, net sales amounted to SEK 3.4 billion (2.6 billion), an increase of 32%, of which 20 per cent is from acquisitions and 8 per cent is an organic increase in sales. Operating margin, including the effect of IFRS 16, amounted to 7.1% (6.6%), which is higher than the corresponding period last year, in spite of falling prices for refrigerants. All regions show growth. It is particularly positive to see that the major acquisitions in the southern hemisphere that were conducted in 2018, TecsaReco in South Africa and Heatcraft in Australia, both contribute to our profits and also equalise seasonal variations. We are following developments in South Africa, which has been in recession for some years. Certain signs suggest that the country is moving towards GDP growth again, although other factors such as the forthcoming national elections may have effects. All of the group's market segments is growing and in the first quarter the area of commercial refrigeration represents 54% of Beijer Ref’s sales. Air conditioning, HVAC, is growing by two-digit numbers and now accounts for about 36% of the group's sales. Prices of refrigerants continue to decline but they still remain at high levels. One effect of this is that the refrigerants' share of our total sales is more and more returning to normal. We are well prepared for the progressively changing market conditions, for which we have compensated with increasing sales of our sustainable product range. The significance for the group of the price trend for refrigerants has therefore gradually declined. The general market assessment is that prices may become stabilised during Q2 and then possibly rise slightly in the autumn. Conversion to sustainable solutions continues to drive demand for our environmentally friendly technology. The permitted quantity of CO2 equivalents is restricted even more tightly for 2021. This generates increased pressure on the market to adapt to the new rules and we see a steadily arising awareness of this when we meet our customers. As a result, increased orders have been good for the company's OEM range. We continuously look at how we can expand our own production capacity, which is a requirement for being able to meet the expected future demand for sustainable refrigeration installations. Interest in the market for environmentally friendly refrigerants is great, and we see it as our task and our responsibility to inform and educate customers and partners in how to handle such refrigerants. Our training programme "Beijer Ref Academy", which we launched last year in Italy, has been a success. We will be setting up similar programmes in more countries during 2019. We continue to work on digitalisation and have launched an e-commerce platform in Germany, the United Kingdom and Switzerland, among others. We will launch e-commerce in a number of other markets during the year. Beijer Ref is now a well-known market leader, not only in Europe but also on other continents. As a natural consequence, we are spreading our name to a greater extent, so that some of our subsidiaries are successively changing their names to Beijer Ref. The latest in the line is our Indian company, which from March this year is called Beijer Ref India. Also new is that we have taken a global approach to certain products and components by creating a dedicated product series, which will be launched later in the year. One date that stands out during the quarter was 2 January, when our share moved up onto Nasdaq's Large Cap list. This was a milestone in the group's history and the list change has been an objective. This is proof that our long-term global strategy is working. The quarter did not contain any new acquisitions, but we are continuously evaluating a number of opportunities. Liquidity is good and cash flow has been positive during the quarter. Conditions for the second quarter are favourable and we are following our expressed strategy so as to create further profitable growth. The team spirit in the group is strong. This provides the conditions for being able to continue to deliver good returns for our shareholders. Per Bertland, CEO First quarter of 2019 NET SALES Beijer Ref increased sales by 32 per cent to SEK 3,434 million (2,605) during the first quarter of 2019, 20% of which is explained by the acquisitions made during 2018, which have a high season during the winter months, as well as generally favourable economic conditions in the company's other markets. All regions show growth in net sales. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 8 per cent. A weakened Swedish krona resulted in positive currency effects of SEK 104 million, corresponding to 4%, since most of the company’s sales are in currencies other than Swedish kronor. PROFIT The Group’s operating profit totalled SEK 244 million (172) during the first quarter, which is an increase of 42 per cent. The operating margin was 7.1% (6.6%), in spite of falling refrigerant prices. The profit before tax was SEK 228 million (167). Profit for the period was SEK 170 million (121). Profit per share totalled SEK 1.33 (0.92). CASH FLOW Cash flow from operating activities before change in working capital was SEK 278 million in 2019 compared with SEK 153 million for 2018. The increase is due to improved profit during the quarter and a positive effect of SEK 71 million related to depreciation of rights of use assets arising from the transition to the IFRS 16 (lease). The corresponding amount of SEK 71 million is reported as a decrease in the financing operations. Working capital increased by SEK 42 million during the quarter compared with SEK 112 million the previous year. This gives cash flow from operating activities of SEK 236 million, compared with SEK 41 million the previous year. The change in working capital between the years is mainly due to a smaller build-up of stocks during the quarter. At the end of the period, the company had unutilised credit facilities totalling SEK 1,588 million (205). INVESTMENTS The Group’s investments in fixed assets including business combinations totalled SEK 27 million (349) during the first quarter and relate primarily to investments in fixed assets. In the previous year, TecsaReco was acquired during the quarter. COMPANY ACQUISITIONS No acquisitions were made during the quarter, but the company is continuously evaluating new opportunities for growth and complementary acquisitions. In the first quarter of 2018, the acquisition of the wholesale company TecsaReco in South Africa was completed. The company has annual sales of SEK 450 million with 300 employees across 23 branches. The company is included in the consolidated accounts with effect from 1 March 2018. SIGNIFICANT EVENTS DURING THE QUARTER As of 2 January 2019, the Beijer Ref share is being traded on Nasdaq Stockholm's Large Cap. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. IFRS 16 Leases IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use. The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years. Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease. WEB MEETING Q1 2019 The company invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the first quarter of 2019. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 16 April at 10.00 CET. Email your wish to participate at info@beijerref.com and a link will be distributed before the meeting. Internet connection is required. The presentation will be available on the company's website www.beijerref.com. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 16 April 2019 Beijer Ref AB (publ) Per Bertland, CEO & President For more information: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. 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 16 April 2019. www.beijerref.com
Beijer Ref AB Q4-2018
Increased profit and dividend Net sales for the fourth quarter of 2018 increased by 37% compared with the corresponding period in the previous year and totalled SEK 3,293 million (2,401). The operating profit for the fourth quarter of 2018 totalled SEK 229 million (179), an increase of 28% compared with the same period last year. The profit for the period totalled SEK 164 million (146). Profit per share totalled SEK 1.28 (1.13). During the fourth quarter, Beijer Ref AB issued a commercial paper scheme totalling SEK 700 million as part of the company’s existing financing. Repurchases of 123,171 class B shares took place during the quarter. The company has now secured access to shares in accordance with the company’s long-term incentive scheme, which runs between 2018 and 2021. As of 2 January 2019, the Beijer Ref share is being traded on Nasdaq Stockholm's Large Cap. The Board of Directors is proposing an increased dividend of SEK 3.00 per share (1.92) to the AGM. Comments by the CEO 2018 - a record year 2018 was a year of historical success for Beijer Ref. Net sales totalled just over SEK 13 billion, an increase of 32 per cent compared with the previous year. Organic growth was 13.4 per cent and the operating margin was 8.3 per cent. The profit for the year totalled SEK 780 million (521), an increase of 50 per cent. Profit per share totalled SEK 6.07 (4.02). This makes 2018 Beijer Ref’s strongest year to date. During the fourth quarter, net sales increased by 37 per cent, 9.4 per cent of which comprised organic growth. The operating margin for the period was 6.9 per cent, slightly lower than in the previous year, primarily because the overseas share of sales increased due to the acquired companies in Africa, Australia and China. Comparative figures are also at a relatively high level, as the prices of refrigerants started to rise in the autumn of 2017. The profit represents the Group’s best-ever fourth quarter. Both the full year and the fourth quarter were affected positively by the European phasing-out programme, which has driven demand for our green technology. It is now evident that the EU’s F-Gas regulation is starting to make its mark outside Europe. In December, the UN held its major climate meeting in Katowice, Poland. This confirmed the content of the Paris agreement, including the more than 200 Member States being subjected to increased control with regard to follow-up on the regulatory framework. It is my assessment that the outcome will have positive consequences for our business in the years ahead. We are seeing more and more interest in and curiosity about both green, natural refrigerants and newly developed, synthetic so-called HFOs on other continents. We have already sold our green technology to customers in Australia, China and South Africa. I am convinced that we have only seen the beginning of this transition. The new technologies will gradually become established outside Europe as well. All of Beijer Ref’s regions are reporting good growth, and the strong growth trend of the previous period is continuing in the Nordic region and Europe. It is also pleasing to see South Africa reporting growth again. The Asia Pacific region is also reporting satisfactory sales figures. The integration of the acquisitions TecsaReco in South Africa and Heatcraft in Australia has gone well, and both companies are now contributing to our profit. Both commercial and comfort cooling have seen strong growth during the period. The after-sales market is stable, and project activities in the OEM business area continue to have high order input for green refrigeration installations. Work to implement our green refrigeration technology outside Europe is under way, and the plan is for the first non-European systems to be manufactured in South Africa in early 2019. Work is continuing to expand European production capacity in order to meet the growing demand in Europe. Comfort cooling has performed well during the quarter with growth of almost 50 per cent, of which 22 per cent was organic. Successful partnerships with our strategic suppliers Toshiba, Mitsubishi Heavy Industries and Carrier are having an effect. Together we have gained additional market shares. Refrigerant prices have fallen slightly compared with the previous quarter, but they remain at a high level. Our earlier assessment, that prices will stabilise during the second quarter of 2019, still holds true. We face 2019 with confidence. With a growing market and an increased need for our products and technology, opportunities for growth are good, both organically and through acquisitions. We are working continuously to analyse opportunities to add strategic companies to our Group. This year’s strong cash flow and balance sheet create the conditions for this. All in all, 2018 was another record year. The Board of Beijer Ref proposes an increased dividend of SEK 3.00 (1.92). Per Bertland, CEO Fourth quarter of 2018 NET SALES Beijer Ref increased its net sales by 37 per cent to SEK 3,293 million (2,401) in the fourth quarter of 2018, primarily due to a higher proportion of sales outside Europe, which has its high season during the winter months, and continued high prices, especially of refrigerants. All regions report growth in net sales. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 9.4 per cent. A weakened Swedish krona resulted in currency effects of SEK 117 million, corresponding to 5.3% since most of the company’s net sales take place in currencies other than Swedish kronor. Net sales during the year increased by 32 per cent to SEK 13,015 million (9,830). Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 13.4 per cent. PROFIT The Group’s operating profit totalled SEK 229 million (179) during the fourth quarter, an increase of 28 per cent. The company had a higher share of sales in Asia Pacific at lower margins during the quarter. Comparative figures for refrigerants are at a relatively high level, as prices had already started to rise in the autumn of 2017. The operating profit increased during the year by 50 per cent to SEK 1,085 million (725). Adjusted for exchange rate changes and acquisitions, the organic increase in the operating profit was 36 per cent. During the year, the Group’s net financial items totalled SEK -31 million (-26) due to increased borrowing, mainly because of the acquisitions completed during the year. The pre-tax profit was SEK 1,055 million (699). The profit for the year was SEK 780 million (521). Profit per share totalled SEK 6.07 (4.02). CASH FLOW Cash flow from operating activities before change in working capital was SEK 949 million in 2018 compared with SEK 642 million for 2017, primarily due to the improved profit. Working capital increased by SEK 282 million during the year compared with SEK 140 million the previous year. This produces cash flow from operating activities of SEK 667 million, compared with SEK 502 million the previous year. The change in working capital between the years is due primarily to growth in net sales and some build-up of stocks. At the end of the year, the company has unutilised credit facilities totalling SEK 1,433 million (496). INVESTMENTS The Group’s investments in fixed assets including business combinations totalled SEK 1,057 million (101) during the year and relate primarily to the acquisitions of TecsaReco, Heatcraft and Lumelco. During the year the company also invested SEK 87 million (0) in the repurchase of its own shares after deduction of the option premium received. DIVIDEND The Board of Directors proposes a dividend for 2018 of SEK 3.00 (1.92) per share, corresponding to a total dividend payment of SEK 380M (244) based on the number of outstanding shares at the end of 2018. It is also proposed that the dividend is to be paid in two installments, in April and October, in order to better match the Group's seasonality. The proposed record dates are 12 April and 11 October 2019 respectively. SIGNIFICANT EVENTS DURING THE QUARTER No acquisitions were made during the quarter, but the company is continuously evaluating new opportunities for growth and complementary acquisitions. During the quarter, the integration of Heatcraft in Australia in particular was implemented, which is expected to produce additional profit improvements in future. The company has exercised the AGM’s authorisation to repurchase its own shares following a decision on a long-term incentive scheme for senior executives. In total, the company repurchased 123,171 shares during the quarter and now holds 897,980 shares at an average purchase value of SEK 111. The incentive scheme runs between 2018 and 2021. The total cost of the scheme is in line with the Board’s proposal and the AGM’s decision, i.e. SEK 8 million, and was charged to the company’s operating profit in 2018. In the fourth quarter, Beijer Ref AB set up a commercial paper scheme with a financial envelope of SEK 1,500 million as part of Beijer Ref’s financing. The organiser of the scheme was Handelsbanken and the issuing agents are Handelsbanken and Nordea. The company has available credit facilities corresponding to the amount issued, which totalled SEK 700 million. The scheme will have a positive effect on the company’s net financial income. OTHER SIGNIFICANT EVENTS DURING THE YEAR The company's acquisition of TecsaReco in South Africa was completed on 1 March 2018, since when it has been included in the company’s accounts. Annual net sales total approximately SEK 450 million and the company has approximately 300 employees and 23 branches. Beijer Ref acquired Heatcraft Australia Pty Ltd in May 2018. The company has just over 300 employees and net sales of approximately SEK 1.1 billion. The acquisition also included operations in China and Singapore. In July 2018, Beijer Ref and Mitsubishi Heavy Industries Air Conditioning Europe Ltd completed the formation of the subsidiary 3D Plus, with Beijer Ref as the majority shareholder. The company only had a marginal impact on the profit in 2018. The acquisition of the Spanish air conditioning company Lumelco S.A. is included in the company's accounts as of August 2018 and strengthens Beijer Ref’s position in the comfort cooling segment. The company has annual net sales of approximately SEK 400 million and over 60 employees. The acquisition is expected to generate long-term positive effects in terms of both net sales and profit. All in all, these acquisitions represent an increase in net sales of approximately SEK 2 billion and 660 full-time equivalent employees. SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD As of 2 January 2019, the Beijer Ref share is being traded on Nasdaq Stockholm's Large Cap. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Effects regarding the implementation of IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial Instruments have been analysed at both Group and subsidiary level. The new standards do not have any material impact on the Group’s financial statements other than increased disclosure requirements. The prospective method has been applied from January 2018. Estimated effects of the transition to IFRS 16 Leases Beijer Ref has assessed the effect of the transition to the new accounting standard IFRS 16 Leases, which will be applied as of 1 January 2019. The initial assessment is that IFRS 16 will have a positive effect on the operating profit and a minor positive effect on the profit after financial items. The estimated effects on the balance sheet are described in the table below. The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined for each per country. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with a acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 30 January 2019 Beijer Ref AB (publ) Per Bertland, CEO & President For more information: Per Bertland, CEO – switchboard, +46 (0)40-35 89 00 Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. 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 30 January 2019. Financial calendar • The Annual Report for 2018 will be published in March 2019. • The Annual Meeting of shareholders will be held on 10 April 2019 in Malmö. • The Interim Report for the first quarter 2019 will be published on 16 April 2019. • The Interim Report for the second quarter 2019 will be published on 12 July 2019. • The Interim Report for the third quarter 2019 will be published on 22 October 2019. • The Interim Report for the fourth quarter 2019 will be published on 30 January 2020. www.beijerref.com
Beijer Ref AB Q3-2018
Continued strong quarter Net sales for the third quarter of 2018 increased by 41% compared with the corresponding period in the previous year and totalled SEK 3,607 million (2,555). The operating profit for the third quarter of 2018 totalled SEK 339 million (217), an increase of 57% compared with the same period last year. The profit for the period totalled SEK 240 million (149). Profit per share totalled SEK 1.88 (1.16). Beijer Ref AB and Mitsubishi Heavy Industries Air Conditioning Europe LTD completed the formation of the subsidiary 3D Plus in the UK, with Beijer Ref as the majority shareholder. The acquisition of the Spanish air conditioning company Lumelco S.A. strengthens the Group’s position in field of air conditioning in Southern Europe. Repurchases of 181,559 class B shares took place during the quarter. The purpose of the repurchase is to secure access to shares in accordance with the company’s long-term incentive scheme, 2018-2021. Comments by the CEO Growing market creates strong quarter We can look back on another quarter of strong growth. Net sales increased by 41 per cent and the profit increased by 57 per cent compared with the same period in 2017. This is our strongest third quarter ever. Adjusted for acquisitions and currency effects, net sales increased organically by approximately 16 per cent and the profit by 42 per cent. All regions are reporting growth in line with our expectations, although Europe does stand out. Of the European regions, the Nordic region has distinguished itself just a little extra. An unusually warm summer resulted in record net sales and profits for the region, with an organic increase in net sales of 30 per cent, while the profit doubled. The profit for the quarter shows once again that our market is strong. The F-gas regulation in Europe is accelerating the phasing out of existing refrigerants, known as fluorinated gases, and is one of the main reasons why demand for Beijer Ref’s products is increasing. The phase-out programme is continuing, and we see no signs of reduced activity. The UN recently issued an updated climate report highlighting how urgent it is that global warming remains at a maximum of 1.5 degrees by the year 2100. This is half a degree lower than the goal of the Paris Agreement. Achieving this new goal requires substantially increased measures, according to the IPCC, the UN’s climate panel. Our industry has a great responsibility in this matter and we must be proactive if this goal is to be achieved. Beijer Ref’s focus on developing eco-friendly solutions therefore feels even more urgent. We have a long tradition and a great deal of knowledge of such technology in Europe. We are now passing on this know-how to our companies on other continents. The fact that the economy remains strong also means that end customers are prepared to invest and upgrade their refrigeration and air-conditioning systems to an even greater extent, which benefits us. We also want to grow through acquisitions in Europe and in the rest of the world. During the quarter, Beijer Ref acquired the Spanish air conditioning distributor Lumelco. This deal consolidates the Group’s position within the HVAC segment in Beijer Ref’s biggest region, Southern Europe. The company distributes several strong brands, but primarily has exclusive distribution rights with Mitsubishi Heavy Industries, one of Beijer Ref’s strategic partners. Strengthening and developing relationships with our main suppliers is in line with our strategy. Lumelco is included in our accounts as of August this year. During the transfer phase to eco-friendly refrigeration technology, we have seen sharp increases in the price of HFC refrigerants with the most negative environmental impact. These price increases are a direct consequence of the European regulatory framework for the phasing out of F-gases. At present these price rises have slowed down, and the assessment is that prices will remain stable over the next few quarters. Our logistics chain is one of our strengths, and we are working to create sustainable, modern solutions that deliver efficiency throughout the entire flow. At the beginning of the year we opened a new, large, automated logistics centre in the Netherlands, known as the Beijer Ref Support Center. This enables us to achieve efficiency improvements above all in the areas of purchasing, logistics and back office. As another step in the same direction, we recently opened a similar centre in Auckland, New Zealand. Passing on best practice within the Group is important and an advantage that we want to use to the maximum. All in all, we are satisfied with the period and we enter the fourth quarter with both humility and strong self-belief. Going forward, we want to grow further. With increased profits, low interest rates and a strong cash flow, we are well placed to make more supplementary acquisitions. Per Bertland CEO Third quarter of 2018 NET SALES Beijer Ref increased its net sales by 41 per cent to SEK 3,607 million (2,555) in the third quarter of 2018. A strong global economy, favourable weather conditions that increase demand for air conditioning, and price rises in particular for refrigerants have resulted in continued strong growth in net sales. All regions report an increase in net sales of more than 20 per cent in the third quarter. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 16 per cent. A weakened Swedish krona resulted in currency effects of SEK 195 million (-22), corresponding to 8.8% since most of the company’s net sales take place in currencies other than Swedish kronor. PROFIT The Group’s operating profit totalled SEK 339 million (217) during the third quarter, an increase of 57 per cent. The ongoing transition to eco-friendly refrigeration systems had a positive impact on the profit for the period and also resulted in increased demand for HVAC and OEM, which are future growth segments for Beijer Ref. Adjusted for exchange rate changes and acquisitions, the organic improvement in the operating profit was 42 per cent. CASH FLOW Cash flow from operating activities before change in working capital was SEK 829 million during the first nine-month period of 2018, compared with SEK 500 million for 2017, primarily due to the significantly improved profit. Working capital increased by SEK 585 million during the first nine-month period compared with SEK 134 million the previous year. This produces cash flow from operating activities of SEK 243 million, compared with SEK 366 million the previous year. The change in working capital between the years is due primarily to sales growth and some build-up of stocks. INVESTMENTS The Group’s investments in fixed assets including business combinations totalled SEK 1,011 million (72) during the first nine-month period and relate primarily to the acquisitions of Tecsa, Heatcraft and Lumelco, which were financed by external borrowing from existing bank partners. During the period the company also invested the net sum of SEK 70 million in the repurchase of own shares after deduction of the option premium received. SIGNIFICANT EVENTS DURING THE QUARTER On 2 July 2018, Beijer Ref AB and Mitsubishi Heavy Industries Air Conditioning Europe Ltd completed the formation of the subsidiary 3D Plus, with Beijer Ref as the majority shareholder. The new company is now operating under the leadership of a new CEO. 3D Plus’s head office is in Slough, with regional offices planned in the UK and Ireland. The formation of the subsidiary is only having a marginal effect on net sales in 2018, but it is considered to have good growth potential. The acquisition of the Spanish air conditioning company Lumelco S.A. is included in the company’s accounts as of August and strengthens the Group’s position in the HVAC segment in Beijer Ref’s biggest region, Southern Europe. The company is a long-time distributor of Mitsubishi Heavy Industries’ products in Spain and Portugal, one of Beijer Ref’s strategic suppliers. The company has net sales of approximately SEK 400 million and over 60 employees. The takeover has only a marginal effect on the profit in 2018. The acquisition is, however, expected to generate long-term positive effects in terms of both net sales and profit. During the quarter, the company exercised the AGM’s authorisation to repurchase its own shares following a decision on a long-term incentive scheme for senior executives. In total, the company repurchased 181,559 shares during the quarter and now holds 774,809 shares at an average purchase value of SEK 107. The incentive scheme runs between 2018-2021. The costs of the scheme are in line with the Board’s proposal and the AGM’s decision, i.e. SEK 8 million, and were charged to the company’s operating profit in 2018. IMPORTANT EVENTS AFTER THE END OF THE PERIOD In the fourth quarter, Beijer Ref AB will establish a commercial paper scheme with a financial envelope of SEK 1,500 million as a complement to Beijer Ref’s bank financing. The organiser of the scheme is Handelsbanken and the issuing agents are Handelsbanken and Nordea. The company will guarantee available credit facilities corresponding to the amount issued. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Analyses of effects regarding the implementation of IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial Instruments have been performed at both Group and subsidiary level. The analyses show that the new standards do not have any material impact on the Group’s financial statements other than increased disclosure requirements. The prospective method is applied from January 2018. IFRS 16 Leases – a new leasing standard that comes into effect on January 1, 2019. This standard requires that assets and liabilities attributable to all leases and rental agreements be recorded in the balance sheet. The Group is currently evaluating the effects. The Group’s total assets will increase and at the same time, operating profit will increase compared with the current amount because some of the leasing payments will be recognized as interest expenses. Also, a several of the Group’s key figures will be impacted by the new standard. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 22 October 2018 Beijer Ref AB (publ) Per Bertland, CEO & President For more information: Per Bertland, CEO – +46 (0)705-98 13 73 Maria Rydén, CFO - +46 (0)73-429 25 65 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 22 October 2018. AUDITOR’S REPORT Beijer Ref AB (publ), corp. reg. no. 556040-8113 INTRODUCTION We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2018 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. SCOPE OF REVIEW We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Malmö, 22 October 2018 PricewaterhouseCoopers AB Lars Nilsson Mikael Nilsson Authorized Public Accountant Authorized Public Accountant Auditor in charge Financial calendar The Interim Report for the fourth quarter 2018 will be published on 30 January 2019. The Annual Report for 2018 will be published in March 2019. The Annual Meeting of shareholders will be held on 10 April 2019 in Malmö. The Interim Report for the first quarter 2019 will be published on 16 April 2019. The Interim Report for the second quarter 2019 will be published on 12 July 2019. The Interim Report for the third quarter 2019 will be published on 22 October 2019. www.beijerref.com
Beijer Ref AB Q2-2018
All in all, our best quarter so far. Net sales for the second quarter of 2018 increased by 32% compared with the corresponding period in the previous year and totalled SEK 3,510 million (2,657). The operating profit for the second quarter of 2018 totalled SEK 345 million (223), an increase of 55% compared with the same period last year. The profit for the period totalled SEK 255 million (154). Profit per share for the quarter was SEK 1.98 (1.19). The acquisition of Heatcraft Australia Pty Ltd is included in the company’s accounts as of 5 May. The acquisition of the French HVAC distributor GH2C is included in the company’s accounts as of 1 May, but has little impact on the company’s profit and financial status. A 3:1 share split was carried out on 25 April in order to increase the liquidity in the share. Comments by the CEO More good news. Beijer Ref continues to develop strongly. Net sales increased by a total of 32 per cent compared with the corresponding period last year. At the same time, the profit for the period increased by 65 per cent. All European regions are seeing strong organic growth in excess of 20 per cent. All in all, this is our strongest quarter so far. We are now seeing the F-gas regulation having a more and more of an impact on the European markets. This was particularly noticeable this quarter in the Nordic and Eastern European regions. Our biggest region, Southern Europe, is also performing strongly, which has a positive impact on profits. The ongoing regulation of F-gases and the time-specific phase-out programme benefit us. The fact that we have a large, eco-friendly offering for our customers during the actual transition phase means that we are well-positioned to meet the increasing demand in the market. Our OEM activities are also growing, the production of eco-friendly technology based primarily on natural refrigerants is running at full capacity, and we will continue to expand this production capacity. In addition to our existing plants in Europe, Africa and Asia, following the acquisition of Heatcraft we now also have production plants in Sydney, Australia and in Wuxi, China. We have a carefully considered plan describing how we will transfer our European knowledge in order to increase production in Asia Pacific, a process that is already under way. The same applies for South Africa, where we have production facilities in Johannesburg and Cape Town. Another factor that is having a positive impact on the profit is price increases in certain refrigerants that took place because of the imbalance between supply and demand, which was caused by the F-gas regulation. We acted early here and made sure that we can offer our customers reliable deliveries. Furthermore, we have a strong range of air conditioning products that are winning market shares in a growing market. The acquisition of the French HVAC company GH2C, which was completed during the period, is a good fit with our strategy. In the second quarter we completed the acquisition of one of Australia’s biggest refrigeration wholesalers, Heatcraft. Australia is in its winter period at the moment, and the company is therefore contributing primarily to increased net sales for Beijer Ref. At the same time, work on integration is going according to plan. The same applies for the acquisition of Tecsa in South Africa, which was incorporated into the books as of 1 March this year. In July we completed the formation of our joint venture together with Mitsubishi Heavy Industries, which gives us exclusive rights, and the organisation is now in place to sell in the UK and Ireland. The completion of two major acquisitions means that we have increased our borrowing. Despite this, I believe that there is plenty of scope for more transactions. The strategy of acquiring additional companies in our segments of refrigeration, HVAC and OEM is firmly in place. The acquisitions, combined with price rises of refrigerants, have resulted in a slight increase in tied-up capital. Despite this, the return on operating capital has increased from 14 to 16 per cent. During the period we carried out a share split. Following this, both the share price and trading in the share increased, which meant that foreign interest in Beijer Ref has increased, which we feel is positive. After the AGM, key personnel were also offered the opportunity to participate in an option scheme. There is a high level of participation in the scheme, which I view as evidence that we are a cohesive team that believes in and is working for the development of Beijer Ref into an even more successful company. Per Bertland CEO Second quarter of 2018 NET SALES Beijer Ref increased its net sales by 32 per cent to SEK 3,510 million (2,657) in the second quarter of 2018. A favourable economic situation and price rises, especially in refrigerants, have resulted in continued strong growth in demand, especially in Europe. All regions report an increase in net sales of more than 20 per cent in the second quarter. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 16 per cent. PROFIT The Group’s operating profit totalled SEK 345 million (223) during the second quarter, an increase of 55 per cent. The ongoing transition to eco-friendly refrigeration systems had a positive impact on the profit for the period and also increased demand for HVAC and OEM, which are future growth segments for Beijer Ref. Adjusted for exchange rate changes and acquisitions, the organic improvement in the operating profit was 47 percent. CASH FLOW Cash flow from operating activities before change in working capital was SEK 439 million during the first half of 2018 compared with SEK 308 million for 2017, primarily due to the improved profit. Working capital increased by SEK 387 million during the first half of the year compared with SEK 247 million the previous year. This produces cash flow from operating activities of SEK 52 million, compared with SEK 60 million the previous year. The change in working capital between the years is primarily due to the fact that working capital at the beginning of 2017 was at a higher than normal level, combined with some build-up of stocks. INVESTMENTS The Group’s investments in fixed assets including business combinations totalled SEK 975 million (50) during the first half of the year and relate primarily to the acquisitions of Heatcraft and Tecsa, which were financed by external borrowing. SIGNIFICANT EVENTS DURING THE QUARTER Beijer Ref has completed the agreement to acquire Heatcraft Australia Pty Ltd. The company has just over 300 employees and net sales in 2017 totalled approximately SEK 1.1 billion. Sales take place through a large distribution network with more than 65 branches. This transaction sees Beijer Ref doubling its net sales in the Asia Pacific region. The acquisition also includes an operation in Singapore and a manufacturing unit in China. The company’s profits are included in the company’s accounts as of 5 May. The company makes a positive contribution to the increase in net sales, albeit with a slightly lower operating profit than other sections. Following a resolution at the Annual General Meeting, Beijer Ref carried out a 3:1 share split on 25 April, which increased interest in the company’s share and its liquidity. The company also exercised the AGM’s authorisation to repurchase its own shares following a decision on a long-term incentive scheme for senior executives. In total, the company bought back 331,650 shares during the quarter and now holds 593,250 shares. IMPORTANT EVENTS AFTER THE END OF THE PERIOD After the end of the period, Beijer Ref completed the formation of 3D Plus, a joint venture with Mitsubishi Heavy Industries Air Conditioning Europe Ltd, and a new organisation has been appointed for sales in the UK and Ireland. Beijer Ref has a holding of 67 per cent in 3D Plus. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report. For more information on accounting policies and future standards applied as from 1 January 2018, see note 2 of the 2017 Annual Report. For more information: Per Bertland, CEO – +46 (0)705-98 13 73 Maria Rydén, CFO - +46 (0)73-429 25 65 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden 13 July 2018 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Ross B Shuster Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President 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 13 July 2018. Financial calendar - The Interim Report for the third quarter 2018 will be published on 22 October 2018. - The Interim Report for the fourth quarter 2018 will be published on 30 January 2019. - The Annual Meeting of shareholders will be held on 10 April 2019 in Malmö. 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
Beijer Ref AB Q1-2018
A good start to the year. Net sales for the first quarter of 2018 increased by 18 per cent compared with the corresponding period in the previous year and amounted to SEK 2,605M (2,218). The operating profit for the first quarter of 2018 amounted to SEK 172M (107), an increase of 61% compared with the same period last year. The profit for the period amounted to SEK 121M (72). Profit per share amounted to SEK 2.77 (1.63). The acquisition of Tecsa (Pty) Ltd in South Africa is included in the company’s accounts as of 1 March 2018. Beijer Ref has been granted exclusive rights to distribute Mitsubishi Heavy Industries’ HVAC products in the UK, as well as the distribution rights in Ireland. During the quarter, Beijer Ref signed an agreement to acquire Heatcraft Australia Pty Ltd. The takeover is expected to take place at the beginning of May 2018. Comments by the CEO A strong first quarter. A good start to the year. That is how the first quarter of 2018 can be summarised. All regions report a double-digit increase in net sales, and the result is our best-ever first quarter. Net sales increased by a total of 18 per cent compared with the corresponding period last year. Organic growth reached almost 13 per cent. At the same time, the profit increased by 69 per cent, a record in our company’s history. All of our regions except Africa report a double-digit increase in profits compared with the same quarter last year. Africa is still feeling the effects of the weak economic situation, although there are some signs that the market is recovering. Northern, Central and Eastern Europe report profit increases of more than 100 per cent. The shift now under way to sustainable refrigeration and freezer solutions is particularly distinctive in these areas. This trend can be explained by various factors. One is the strong economy. Even if our products are very much related to food products and therefore relatively insensitive to economic fluctuations, a positive market does of course contribute to our growth. Another one is the F-Gas Regulation in Europe, which means a gradual phasing out of existing refrigerants, known as fluorinated gases. This Regulation extends until 2030 and is having increasingly noticeable effects on the market. Actors that use refrigeration and freezer systems must plan for a technology shift in which the new technology is based on eco-friendlier alternatives. Beijer Ref is in a good position to provide customers with sustainable solutions, which puts the Group in a favourable position in the market. Only a small part of the market has converted to the new technology. It is therefore our assessment that we have only seen the beginning of the transition. The quarter also saw a company acquisition, which is a feature of our growth strategy. The fact that in March we were able to conclude an agreement to acquire Heatcraft, one of Australia’s biggest refrigeration wholesalers, which also has a manufacturing unit in China, gives us good opportunities to grow in the Asia Pacific region. The acquisition of the refrigeration wholesaler TecsaReco in South Africa, which we completed at the end of last year, was formally approved during the first quarter and consolidated into our books as of March. It is also pleasing that we have been granted exclusive distribution rights to Mitsubishi Heavy Industries’ HVAC products in the UK, as well as distribution rights in Ireland. Following these acquisitions, the European market will comprise 70 per cent of Beijer Ref’s net sales, while Asia Pacific will account for 20 per cent and Africa for 10 per cent. Our initiative in the field of OEM manufacturing, primarily of eco-friendly refrigeration systems and condensers, continues according to the agreed plan. We want to pursue innovation and develop new products. Last year we launched a new condenser, CUBO2 Smart, which is an alternative for both refrigeration and freezer installations. Sales are now starting to take off, and I believe that we have designed a high-volume product of the future, which is pleasing. In total, the OEM segment reported growth of around 21 per cent compared with the same period last year. In recent years we have been methodically expanding our OEM activities under the brand name SCM Ref. This is now established in all of our regions. Building an international platform for our eco-friendly technology is of major strategic importance and something on which we will continue to focus. We are well-positioned if F-gas regulations corresponding to the European one come into force outside Europe. On the same subject, we recently inaugurated a unique training centre – Beijer Ref Academy – near Padua in Italy. It is focused entirely on natural refrigerants and is equipped with the very latest in green technology. We will be inviting both customers and our own employees there in order to study and learn about this important area within our industry. This initiative is our way of showing how seriously we view environmental issues, and I hope that the centre will contribute to increased knowledge in the market in general. We are growing strongly and have a sense of cohesion in the Group that contributes to our positive development. Thanks to our engaged employees, we can continue to aim even higher. Per Bertland CEO & President First quarter of 2018 NET SALES Beijer Ref increased its net sales by 18 per cent to SEK 2,605 million (2,218) in the first quarter of 2018. A favourable economic situation and price rises, especially in refrigerants, have resulted in continued strong growth in demand in our key European markets. All regions report a double-digit increase in net sales in the first quarter. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 13 per cent. PROFIT The Group’s operating profit totalled SEK 172 million (107) during the fourth quarter, an increase of 61 per cent. The phasing-out of refrigerants has resulted in price rises, which combined with continued healthy growth in HVAC and OEM had a positive impact on the profit in the period. Adjusted for exchange rate changes and acquisitions, the organic improvement in the operating profit was 56 per cent. CASH FLOW Cash flow from operating activities before change in working capital was SEK 153 million during the first quarter of 2018 compared with SEK 95 million for 2017, primarily due to the improved profit. Working capital increased during the first quarter by SEK 112 million, compared with a fall in working capital of SEK 88 the previous year. This produces cash flow from operating activities of SEK 41 million, compared with SEK 183 million the previous year. The change in working capital between the years is primarily due to the fact that working capital at the beginning of 2017 was at a higher than normal level, combined with a build-up of refrigerant stocks. INVESTMENTS The Group’s investments in fixed assets including business combinations totalled SEK 349 million (21) during the first quarter and relate primarily to the acquisition of the shares in TecsaReco. SIGNIFICANT EVENTS DURING THE QUARTER The company’s acquisition of TecsaReco, a wholesaler based in South Africa that offers a wide range of products and brands in commercial and comfort refrigeration, air conditioning and spare parts for white goods, is consolidated into the company’s accounts as of 1 March 2018, after the competition authorities in South Africa, Botswana and Namibia gave their approval. Total consideration for the acquired operation in Tecsa amounted to SEK 298 million. The acquired net assets, which mainly consist of stock and operating receivables and liabilities, amounted to SEK 145 million and give a surplus value of SEK 153 million. The surplus value relates to goodwill and other intangibles. Total yearly sales in Tecsa amounts to appr SEK 450 million. The business have around 300 employees and 23 branches. The acquisition has affected the Group’s net sales by SEK 40 million during the quarter. In March 2018 a joint venture was formed between Beijer Ref AB and Mitsubishi Heavy Industries Air-Conditioning Europe, Ltd (MHIAE). Beijer Ref has been granted exclusive rights to distribute Mitsubishi Heavy Industries’ range of air conditioning and heat pumps in the UK, as well as distribution rights in Ireland. During the quarter, Beijer Ref signed an agreement to acquire Heatcraft Australia Pty Ltd. The company has just over 300 employees and net sales in 2017 totalled approximately SEK 1.1 billion. Sales take place through a large distribution network with more than 65 branches. This transaction sees Beijer Ref doubling its net sales in the Asia Pacific region. The acquisition also includes an operation in Singapore and a manufacturing unit in China. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report. For more information on accounting policies and future standards applied as from 1 January 2018, see note 2 of the 2017 Annual Report. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 23 April 2018 Beijer Ref AB (publ) Per Bertland, CEO & President For more information: Per Bertland, CEO – +46 (0)705-98 13 73 Maria Rydén, CFO - +46 (0)73-429 25 65 This interim report has not been the subject of examination by the Company’s Auditors. 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 23 April 2018. Financial calendar The Interim Report for the second quarter 2018 will be published on 13 July 2018. The Interim Report for the third quarter 2018 will be published on 22 October 2018. The Interim Report for the fourth quarter 2018 will be published on 30 January 2019. The Annual Meeting of shareholders will be held on 10 April 2019 in Malmö. 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
Beijer Ref Q4 2017
Strongest-ever fourth quarter Net sales for the fourth quarter of 2017 increased by 9 per cent compared with the corresponding period in the previous year and amounted to SEK 2,401M (2 199). Operating profit for the fourth quarter of 2017 amounted to SEK 179M (145). It is an improvement of 24 per cent compared with the same period last year. Profit for the quarter amounted to SEK 146M (100). Profit per share amounted to SEK 3.39 (2.29). The acquisition of Tecsa (Pty) Ltd has now been approved by the competition authority in South Africa and the planned takeover date is expected to be 1 March 2018. The Board of Directors proposes that the Annual Meeting of shareholders resolves that an increased dividend of SEK 5.75 (5.50) per share shall be paid. Comments by the CEO Strong end to the year brings record profit. Beijer Ref ends 2017 with its strongest year and strongest fourth quarter so far. Net sales for the full year increased by 8.7 percent and reached almost SEK 10 billion, while we also achieved improved margins and a strong operating profit. Organic growth for the quarter was almost 11 percent. Earnings per share for the year exceeded SEK 12, which is a record for us. WE DEVELOP THE TECHNOLOGY OF THE FUTURE A couple of factors stand out in the year and the quarter, both of which have a positive impact on the Group’s profit. The regulatory phasing-out of HFC refrigerants is one of them. The Climate Agreement signed in Paris in 2015 states that more than half of the HFC gases in EU Member States shall be phased out by 2020.Although it is our assessment that most countries will not be able to keep to that schedule, an intensive phase is expected in which many companies will need to upgrade their technology at the same time. Beijer Ref is well-equipped to meet the market’s needs during the transition and can provide the market with alternatives to both maintain existing technology and upgrade to new technology. Above all, we are working actively to provide customers with green technology that is developed and manufactured within our OEM activities. The economic upturn with low interest rates and high consumption has also contributed to the increase in the Group’s sales. Virtually all of Beijer Ref’s regions report growth compared with the fourth quarter last year. PERFORMANCE IN THE REGIONS Southern Europe, which is our biggest single region, grew by 16 percent. Activities in France had a strong quarter, with the HVAC segment accounting for most of the growth in sales. We have also been working to identify smarter solutions for logistics and purchasing. This is now starting to have an impact on the profit. The acquisition of the Toshiba distributor DX Por in Portugal has given us another market to operate in and has already made a positive contribution to our sales in Southern Europe. The Central Europe region grew by 13 percent during the quarter. Our companies in the UK and Ireland continue to report improved profits, partly because of sales of refrigerants, which are gradually becoming more expensive because of the quota system. At the end of the year we opened a large new logistics centre in the Southern Netherlands, which will hold stocks of products and articles for the whole region, resulting in both cost savings and more efficient delivery flows in the years ahead. Growth in the Nordic region grew by 3 percent. The off-shore business in Norway is still experiencing an economic downturn, bringing down the growth figure for the region, while the businesses in Sweden, Denmark and Finland have performed well. The transition to new environmental technology is part of the reason for increased sales. The trend indicates that demand for natural refrigerants will continue to rise even more quickly in 2018. The Eastern Europe region grew strongly, by 27 percent. Here too, we see a general increase in consumption, leading to higher demand for environmental technology and comfort cooling. Asia Pacific reports stable growth. Our own green air conditioning system, CUBO2 Smart, was recently installed for the first time in Australia. This is a good indication that our OEM activities have good prospects for growth there as well. Africa is the only one of our regions not reporting growth. Consumption in general is being held back by the economic recession in South Africa. We still believe that Africa is an extremely interesting market for Beijer Ref. An expanding middle class will want to invest in comfort cooling again once the temporary downturn in the market has passed. It is therefore pleasing that the competition authority in South Africa has now announced that they have approved our acquisition of the air conditioning wholesaler TecsaReco. Formal approval is still being awaited from the competition authorities in Namibia and Botswana. But as they represent less than five percent of Tesca’s business, any possible impact will be marginal for us. We are preparing the takeover of the company, which is expected to be incorporated into our accounts as of 1 March this year. A BIGGER BEIJER REF IS THE FUTURE SCENARIO We have a generally positive view of the future, with markets growing rapidly and continuing to demand our products more and more. We analyse acquisitions continuously and would like to add more companies that can supplement and enhance our presence in expansive markets. In summary, 2017 was a record-breaking year for Beijer Ref, with both net sales and profit exceeding the previous year’s figures. Beijer Ref’s Board of Directors proposes an increased dividend of SEK 5.75 kronor (5.50), which reflects our strong year and good market prospects. We are well prepared to face 2018. Per Bertland CEO & President Fourth quarter of 2017 NET SALES Beijer Ref increased its net sales by 9.1 percent to SEK 2,401 million (2,199) in the fourth quarter of 2017. A favourable economic situation has resulted in continued strong growth in demand in our key European markets. Virtually all regions report growth in net sales during the fourth quarter. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 10.7 percent. Net sales during the year increased by 8.7 percent to SEK 9,830 million (9,045). Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 5.2 percent. PROFIT The Group’s operating profit totalled SEK 179 million (145) during the fourth quarter, an increase of 23.5 percent. The phasing-out of refrigerants has resulted in dramatic price rises in refrigerants with a high GWP value, which has had a positive impact on the profit in the period. Adjusted for exchange rate changes and acquisitions, the organic improvement in the operating profit was 25.6 percent. The operating profit increased during the year by 22.3 percent to SEK 725 million (593). Adjusted for exchange rate changes and acquisitions, the organic increase in the operating profit was 19.4 percent. Group net financial items during the year totalled SEK -26 million (-33). The pre-tax profit was SEK 699 million (560). The profit for the year was SEK 521 million (399). Earnings per share totalled SEK 12.06 (9.17). CASH FLOW Cash flow from operating activities before change in working capital was SEK 635 million for the 12 months of 2017, compared with SEK 478 million during the corresponding period of the previous year. During 12 months, the working capital increased by SEK 135 million against an increase of SEK 413 million during the same period of the previous year. This results in cash flow from operating activities of SEK 500 million, compared with SEK 65 million in the previous year. The improved profit and greater focus on operating capital have contributed to an improved cash flow. INVESTMENTS Group investments in fixed assets amounted to SEK 99 million (80) for the year. DIVIDEND The Board of Directors proposes that the Annual Meeting of shareholders resolves that a dividend of SEK 5.75 (5.50) per share shall be paid for the 2017 financial year. This is equivalent to a total of SEK 243.7M if the shares currently held by the company are excluded. SIGNIFICANT EVENTS DURING THE YEAR As part of Beijer Ref’s objective to be at the cutting edge of the transition to environmentally friendly refrigeration technology, the first environmentally friendly, carbon dioxide-based refrigeration system was delivered to Chile at the beginning of the year. This was the Group’s first supply in South America and is in line with Beijer Ref’s focus on carbon dioxide and other environmentally friendly refrigeration technology to contribute to lower impact on the greenhouse effect. During the second quarter, Maria Rydén was appointed as the new CFO and member of the Group management team. The assets of the Portuguese HVAC distribution company DX Por, which has its head office in Porto, were acquired in September. The company is a main distributor for Toshiba HVAC (Heating, Ventilation, Air Conditioning) in Portugal. DX Por is being integrated in Beijer Ref’s organisation and is included in the consolidated accounts from September 2017. The refrigerants HCFC and HFC are being actively phased out in China. The German retail chain Metro AG has therefore selected Beijer Ref’s Italian subsidiary SCM Frigo to supply the chain’s first transcritical CO2 refrigeration system in China. In October, Beijer Ref AB signed a contract to acquire Tecsa (Pty) Ltd and its assets. Tecsa (Pty) Ltd, owned by Westbrooke Investment and operating under the brand TecsaReco, is a wholesaler based in South Africa which offers a wide range of products and brands for commercial and comfort refrigeration and air conditioning and spare parts for white goods. The parties have signed a binding contract, and the takeover is planned for 1 March 2018. The acquisition is estimated to have a long-term positive impact on both sales and profit. The competition authority in South Africa (CompCom SA) has examined the transaction and given its final approval. This confirms that the acquisition will not affect the competition situation in the South African air conditioning wholesale market. It is conditional upon the disposal of two branches in Polokwane and Rustenburg in South Africa. The competition authorities in Botswana and Namibia are expected to respond with their announcements shortly. RISK DESCRIPTION The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. ACCOUNTING POLICIES This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report, except as specified in the following. New and amended standards applied as from 1 January 2017 are not expected to have any material effect on the Group’s or Parent’s profit or financial position. For more information on future standards that have not yet entered into force, see page 43 of the 2016 Annual Report. ACCOUNTING PRINCIPLES IN 2018 A number of new and amended standards are effective for periods beginning after January 1, 2018. The company has analyzed the consequences of the accounting standards “IFRS 9 Financial Instruments” and “IFRS 15 Revenue from Contracts with Customers”. None of these is expected to have a significant effect on the consolidated financial statements of the Group or the Parent company. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 31 January 2018 Beijer Ref AB (publ) Per Bertland, CEO For more information: Per Bertland, CEO – +46 (0)705-98 13 73 Maria Rydén, CFO - +46 (0)73-429 25 65 This interim report has not been the subject of examination by the Company’s Auditors. 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 31 January 2018. Financial calendar - The Annual Report for 2017 will be published in March 2018. - The Interim Report for the first quarter 2018 will be published on 23 April 2018. - The Interim Report for the second quarter 2018 will be published on 13 July 2018. - The Interim Report for the third quarter 2018 will be published on 22 October 2018. - The Annual Meeting of shareholders will be held at 3 pm on 5 April 2018 in Malmö Börshus. www.beijerref.com
Beijer Ref Q3 2017
Rising demand means a strong quarter Net sales in the third quarter of 2017 increased by 4 percent compared with the same period last year, amounting to SEK 2,555 million (2,461). The operating profit for the third quarter of 2017 was SEK 217 million (173). This is an increase of 25 percent on the same period last year. The profit for the period was SEK 149 million (117), an increase of 28 percent on the same period last year. Earnings per share amounted to SEK 3.47 (2.71). Acquisition of DX Portugal. Since the end of the reporting period, a contract has been signed to acquire the South African company Tecsa. Comments by the CEO Rising demand means a strong quarter We have ended another strong quarter. A warm summer in Southern Europe helped increase the need for air conditioning even further, and some of our biggest markets had double-digit growth. Our strong, established brands are well positioned to meet increased demand. The phase-out of refrigerants with a negative climate impact is continuing. Import restrictions are also causing rising prices for these refrigerants, which had a positive impact on the Group’s profit. In parallel, demand for greener alternatives is growing. Investment in our own production of green refrigeration systems is continuing. Organic growth for our OEM activities is almost 6 percent. Demand is high not only in Europe. During the quarter, the green light was given for Beijer Ref to supply the first transcritical CO2 refrigeration system to the retail giant Metro in China. This paves the way for considerably more orders on this huge market. Our CUBO2 Smart refrigeration system, one of the greenest products on the market for small stores, has also been well received in several European countries. It is being launched in Australia in the next quarter. This is a good indicator that we are helping drive the development of the industry in a more environmentally friendly direction. The warm summer was most obvious in Southern and Central Europe. Consequently, France, our biggest, most important market, which also benefited from a strong economy, reported organic growth of 9 percent. Central Europe reported growth of 7 percent, with the UK accounting for a double-digit increase of approximately 16 percent. The increasing pace of the phase-out of refrigerants with a high GWP value is largely behind this growth. Our sales are increasing by 3 percent in the Nordic region and 5 percent in Eastern Europe. There is also stable development in Asia Pacific, with growth of 5 percent. Sales of air conditioning units are high, and the restructuring of operations in Australia is now having a positive impact on profit. Africa continued to develop slowly, primarily on account of the weak economic situation. However, the potential of this market remains very high. Consequently, it is extremely gratifying that in mid-October we signed a contract for the biggest acquisition of the year so far, of Tecsa in South Africa. We are now building a solid base on a big market that is adjudged to have considerable growth potential as the population’s standard of living gradually improves. Another important acquisition is the Portuguese company DX Por. This means yet another country for our map of Toshiba distributors, and it will gradually produce higher market shares in Portugal. We take a generally very positive view of the future, with markets that are developing fast and rising demand for our products. We have our cost base well under control and are extremely well placed to enter the fourth quarter. Per Bertland Third quarter 2017 Sales Beijer Ref increased its sales by 3.8 percent to SEK 2,555 million (2,461) during the third quarter of 2017. The increase in sales is due to continued strong growth in demand on our European key markets. Adjusted for exchange rate fluctuations and acquisitions, there was a 4.6 percent organic increase in sales. During the first three quarters of the year, sales increased by 8.5 percent to SEK 7,429 million (6,845). Adjusted for exchange rate fluctuations and acquisitions, there was a 3.5 percent organic increase in sales. Profit Group operating profit amounted to SEK 217 million (173) during the third quarter, an increase of 25.4 percent. A warm summer, primarily in southern Europe, resulted in increased demand for air conditioning, and this had a positive impact on the profit for the period. Dramatic price rises for refrigerants with a high GWP value also had a positive impact on profit. Adjusted for exchange rate fluctuations and acquisitions, there was a 26.0 percent organic increase in operating profit. During the first three quarters of the year, operating profit increased by 21.9 percent to SEK 546 million (448). Adjusted for exchange rate fluctuations and acquisitions, there was a 17.5 percent organic increase in operating profit. During the first nine months of the year, Group net financial items amounted to SEK -22 million (-25). Pre-tax profit was SEK 525 million (423). The profit for the period was SEK 375 million (299). Earnings per share amounted to SEK 8.67 (6.88). Cash flow Cash flow from operating activities before change in working capital was SEK 500 million during the first nine months of 2017, compared with SEK 381 million during the corresponding period of the previous year. During the first nine months of the year, the working capital increased by SEK 130 million against an increase of SEK 352 million during the same period of the previous year. This results in cash flow from operating activities of SEK 366 million, compared with SEK 29 million in the previous year. Working capital at the beginning of 2017 was higher than at the beginning of 2016, which meant higher cash flow than during the corresponding period of the previous year. Investments Group investments in fixed assets amounted to SEK 72 million (61) in the first nine months of the year. Significant events during the year As part of Beijer Ref’s objective to be at the cutting edge of the transition to environmentally friendly refrigeration technology, the first environmentally friendly, carbon dioxide-based refrigeration system was delivered to Chile at the beginning of the year. This was the Group’s first supply in South America and is in line with Beijer Ref’s focus on carbon dioxide and other environmentally friendly refrigeration technology to contribute to lower impact on the greenhouse effect. During the second quarter, Maria Rydén was appointed as the new CFO and member of the Group management team. Her most recent position was as CEO of Ikano Vårdboende and she was previously CFO of Ikano Fastigheter, Dole and Switchcore. Maria Rydén will take up her position on 1 November 2017. The assets of the Portuguese HVAC distribution company DX Por, which has its head office in Porto, were acquired in September. DX Por was founded in 2005 and has annual sales of approximately SEK 40 million. The company is a main distributor for Toshiba HVAC (Heating, Ventilation, Air Conditioning) in Portugal. The Portuguese HVAC market, which has gradually recovered since the crisis in 2008, is estimated to be worth almost SEK 900 million. DX Por is being integrated in Beijer Ref’s organisation and is included in the consolidated accounts from September 2017. The refrigerants HCFC and HFC are being actively phased out in China. The German retail chain Metro AG has therefore selected Beijer Ref’s subsidiary SCM Frigo to supply the chain’s first transcritical CO2 refrigeration system. The technology will be installed in Metro’s wholesale store in Beijing later in the year. This will be a major milestone in the carbon dioxide emissions field in China. Metro AG previously communicated its target to reduce the use of F-gases in stores worldwide by 95 percent by 2030. Events after the reporting period In October, Beijer Ref AB signed a contract to acquire Tecsa (Pty) Ltd and its assets. Tecsa (Pty) Ltd, owned by Westbrooke Investment and operating under the brand TecsaReco, is a wholesaler based in South Africa which offers a wide range of products and brands for commercial and comfort refrigeration and air conditioning and spare parts for white goods. Tecsa was founded in 1965 as a wholesaler of parts and accessories for household appliances. In 2013, Tecsa acquired Reco, a refrigeration and air conditioning wholesaler that began operating in 1947. The company’s head office is in Johannesburg and sales are via a number of branches, one of which is in Namibia and another in Botswana. The parties have signed a binding contract, and the takeover is planned for 1 March 2018. The acquisition is estimated to have a long-term positive impact on both sales and profit. The acquisition is subject to approval by the competition authorities in South Africa, Namibia and Botswana. Risk description The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. Malmö, 20 October 2017 Beijer Ref AB (publ) Per Bertland, CEO For more information: Per Bertland, CEO – switchboard +46 (0)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 20 October 2017. Accounting policies This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report, except as specified in the following. New and amended standards applied as from 1 January 2017 are not expected to have any material effect on the Group’s or Parent’s profit or financial position. For more information on future standards that have not yet entered into force, see page 43 of the 2016 Annual Report. Auditor’s report Introduction We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2017 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Malmö, 20 October 2017 PricewaterhouseCoopers AB Lars Nilsson Authorized Public Accountant Auditor in charge Mikael Nilsson Authorized Public Accountant 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 2017 will be published on 31 January 2018. • The Annual Report for 2017 will be published in March 2018. • The Interim Report for the first quarter 2018 will be published on 23 April 2018. • The Interim Report for the second quarter 2018 will be published on 13 July 2018. • The Interim Report for the third quarter 2018 will be published on 22 October 2018. Beijer Ref AB (publ) Stortorget 8, SE-211 34 Malmö, Sweden Telephone +46 40-35 89 00 Corporate ID number 556040-8113 www.beijerref.com 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.
Beijer Ref Q2 2017
The strongest quarter to date Net sales in the second quarter of 2017 increased by 10 percent compared with the same period last year, amounting to SEK 2,657 million (2,417). The increase is due to strong growth in demand on several of our key markets and positive currency effects. The OEM and Comfort Cooling product segments continued the year strong, while Commercial Cooling remains stable. The operating profit for the second quarter of 2017 was SEK 223 million (186). This is an increase of 20 percent on the same period last year. The profit for the period was SEK 154 million (121), an increase of 27 percent on the same period last year. Earnings per share amounted to SEK 3.56 (2.82). Comments by the CEO Our strongest quarter to date Despite a slightly weak start to April, the second quarter of 2017 ended up being the strongest quarter in Beijer Ref’s history. We had double-digit growth in both sales and profit and saw growth in both geographical segments and our product segments. The warm spring on the major markets in Southern Europe and increased focus on air conditioning are two of the reasons for the good growth. Another important factor is that HFCs, the refrigerants which have a negative climate impact, have dramatically increased in price as a result of import restrictions. The recently initiated phasing-out of HFC refrigerants means a faster switchover to greener alternatives, both natural and synthetic. A step in the right direction. Europe is leading developments and, as many non-European countries are following suit, we expect a corresponding increase in demand on these markets as well. We therefore continue to develop our own solutions and have presented CUBO2 Smart during the year. This is an environmentally friendly cooling unit for installation in small stores, petrol stations and other small premises. Our own-developed heat pump TripleAqua also attracted attention during the quarter, winning several innovation prizes. It uses the natural refrigerant propane. We enjoyed strong, double-digit growth for our two product segments OEM and HVAC. The growth in the Commercial Cooling product segment was also positive but at a slower rate. Positive on many markets In France, which is our biggest market, we enjoyed strong growth during the quarter. One factor was the warm weather, which boosted sales of air conditioning units. There has also been excellent growth in the Netherlands and the UK/Ireland. In the UK/Ireland we have seen major commercial effects of our integration work after the acquisition of HRP. Our concentration on factors such as back office and logistics has produced good results in terms of costs, while we are also seeing sales growth. Asia Pacific is another region with stable growth and an organic increase in profit. Our work to restructure operations in Australia has begun to have an impact on costs. In Africa, we had weak growth for the second quarter in a row. We estimate that this is a temporary decline and retain our confidence in the African market. We are planning to expand and supplied our first transcritical CO2 solution to South Africa in the quarter. We estimate that there are good opportunities to expand sales of environmentally friendly CO2 solutions on the African market as well in the long term. The good growth on most of our key markets, combined with increasing demand for green solutions, means that we begin the third quarter with confidence. Per Bertland Second quarter 2017 Sales Beijer Ref increased net sales by 9.9 percent to SEK 2,657 million (2,417) during the second quarter of 2017. The increase in sales is due to strong growth in demand on our European key markets and positive currency effects. Adjusted for exchange rate fluctuations and acquisitions, there was a 2.5 percent organic change in sales. During the first half of the year, net sales increased by 11.2 percent to SEK 4,874 million (4,384). Adjusted for exchange rate fluctuations and acquisitions, there was a 2.9 percent organic change in sales. Profit Group operating profit amounted to SEK 223 million (186) during the second quarter, an increase of 19.6 percent. The growth in profit is due to the warm spring having contributed to increased demand for air conditioning, primarily in Southern Europe and there have been price rises for refrigerants with a severe negative impact on global warming. Cost savings as a result of increased coordination in administration and logistics also contributed to the higher profit. Adjusted for exchange rate fluctuations and acquisitions, there was a 13.7 percent organic increase in operating profit. During the first half of the year, the operating profit increased by 19.7 percent to SEK 330 million (275). Adjusted for exchange rate fluctuations and acquisitions, there was a 12.6 percent organic increase in operating profit. During the first half of the year, Group net financial items amounted to SEK -14 million (-15). Pre-tax profit was SEK 316 million (260). The profit for the period was SEK 226 million (182). Earnings per share amounted to SEK 5.20 (4.17). Cash flow Cash flow from operating activities before change in working capital was SEK 308 million during the first half of 2017, compared with SEK 230 million during the corresponding period of the previous year. During the first half of the year, the working capital increased by SEK 247 million against an increase of SEK 340 million during the same period of the previous year. This results in cash flow from operating activities of SEK 60 million, compared with SEK -110 million in the previous year. Working capital at the beginning of 2017 was higher than at the beginning of 2016, which meant higher cash flow than during the corresponding period of the previous year. Investments Group investments in non-current assets amounted to SEK 50 million (50) in the first six months. Significant events during the year As part of Beijer Ref’s objective to be at the cutting edge of the transition to environmentally friendly cooling technology, the first environmentally friendly, carbon dioxide-based cooling system was delivered to Chile at the beginning of the year. This was the Group’s first installation in South America and is in line with Beijer Ref’s focus on carbon dioxide and other environmentally friendly cooling technology to contribute to lower impact on the greenhouse effect. During the second quarter, Maria Rydén was appointed as the new CFO and member of the Group management team. Her most recent position was as CEO of Ikano Vårdboende and she was previously CFO of Ikano Fastigheter, Dole and Switchcore. Maria Rydén will take up her position no later than 1 December 2017. Risk description The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. Accounting policies This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report, except as specified in the following. New and amended standards applied as from 1 January 2017 are not expected to have any material effect on the Group’s or Parent’s profit or financial position. For more information: Per Bertland, CEO – switchboard +46 (0)40-35 89 00 This interim report has not been reviewed by the Company’s auditors. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden, 14 July 2017 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Ross B Shuster Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President 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 14 July 2017. 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 Interim Report for the third quarter 2017 will be published on 20 October 2017. The Year-End Report for 2017 will be published on 31 January 2018. The Annual Report for 2017 will be published in March 2018. Beijer Ref Stortorget 8, SE-211 34 Malmö, Sweden Telephone +46 40-35 89 00 Corporate ID number 556040-8113 www.beijerref.com The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corresponding to the source and it might therefore be rounding differences in the total. 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.
Beijer Ref Q1 2017
A good start to the year Net sales in the first quarter of 2017 increased by 13 percent compared with the same period last year, amounting to SEK 2,218 million (1,967). The increase is due to acquisitions and good growth on the European markets. The OEM and Comfort Cooling market areas have enjoyed a strong start to the year. The Commercial Cooling market area is stable. The operating profit for the first quarter of 2017 was SEK 107 million (89). This is an increase of 20 percent compared to the same period last year. The profit for the period was SEK 72 million (61), an increase of 18 percent compared to the same period last year. Earnings per share amounted to SEK 1.63 (1.35). Comments by the CEO A good start to the year Both sales and operating profit shows a double-digit increase in the first quarter. Although there is uncertainty in market, partly on account of the Presidential elections in France and the Brexit negotiations, we can see generally good growth both macroeconomically and in our own sector. The Purchasing Managers’ Index (PMI) is strong on all our major markets, and the ongoing transition to more environmentally friendly refrigerants is providing good business opportunities with both new and existing customers. Strong in Europe Organic growth for the quarter was just over 3%. On the European markets, growth was healthy, and we expect continued positive growth there in the coming quarter. Demand for environmentally friendly carbon dioxide-based solutions continues to increase. This is the result of the EU decision to phase out refrigerants with a high impact on the greenhouse effect. The summer in South Africa was unusually wet and cold. Sales of air-conditioning equipment are weather-dependent and did not meet our expectations in South Africa on account of the poor weather. The Asia Pacific region is on a par with last year. A decision was recently made in Australia to begin phasing out older refrigerants in 2018, which is expected to have long-term positive market effects. The delivery of the first environmentally friendly carbon dioxide-based cooling system to Chile was a milestone during the quarter. The order was performed by our subsidiary SCM Frigo and is the Group’s first installation in South America. Strong growth for OEM and Comfort Cooling The growth in the OEM and Comfort Cooling market areas is continuing. During the first quarter, sales in Comfort Cooling increased by 20% (of which 10% organic growth). For the OEM market area, growth was 22% (of which 17% organic growth), and we consider that OEM manufacture has further potential. In recent years, we have seen increased demand for customised, environmentally friendly solutions for large installations, for example large supermarkets. The focus on the OEM range is being enhanced in 2017, partly by expanding the product portfolio with environmentally friendly solutions for small and medium-sized stores. Work on digitalisation continues Our new organisation is in place, with country managers for all major markets. This gives us a better opportunity to coordinate purchasing, logistics and marketing. On several markets, we are working with a number of separate brands in stores to allow us to adapt our offering in the best possible way to different customer segments and regions. We are continuing to digitalise our operations and expect to launch our first Group-wide e-commerce solution during the year. This will offer customers new ways of placing orders and may help us reach new customer groups. Parallel to this, we are continuing to free up capital by reviewing stocks and credit periods. During the year, we will also intensify our sustainability work and create support systems and procedures for the organisation. We are accelerating our work on acquisitions and hope to be able to present new ones during the year. The above factors, combined with favourable macroeconomic conditions, mean that we are optimistic about 2017. Per Bertland First quarter 2017 Sales Beijer Ref increased net sales by 12.7 percent to SEK 2,218 million (1,967) during the first quarter of 2017. The increase in sales comes primarily from the acquired company HRP. Adjusted for exchange rate fluctuations and acquisitions, there was a 3.1 percent increase in organic sales. The increase in organic sales is explained primarily by improvement on the majority of the European markets. Profit Group operating profit amounted to SEK 107 million (89) during the first quarter, an increase of 20.3 percent. The increase in profit is a result of the good growth on the European markets. The operating margin for the quarter is slightly higher than the same period last year at 4.8 percent (4.5 percent). Adjusted for exchange rate fluctuations and acquisitions, there was a 10.2 percent organic increase in operating profit during the quarter. During the first quarter, Group net financial items amounted to SEK -7 million (-4). Profit before tax was SEK 100 million (85). Net profit for the period was SEK 72 million (61). Earnings per share amounted to SEK 1.63 (1.35). Cash flow Cash flow from operating activities before change in working capital was SEK 95 million during the first quarter of 2017, compared with SEK 87 million during the corresponding period of the previous year. During the first quarter, the working capital decreased by SEK 88 million, compared with an increase of SEK 95 million during the corresponding period of the previous year. This results in cash flow from operating activities of SEK 183 million, compared with SEK -8 million in the previous year. Working capital at the beginning of 2017 were higher than at the beginning of 2016, which meant lower capital requirements than during the corresponding period of the previous year. Investments Group investments in non-current assets amounted to SEK 21 million (21) in the first quarter. Significant events during the year As part of Beijer Ref’s objective to be at the cutting edge of the transition to environmentally friendly cooling technology, the first environmentally friendly, carbon dioxide-based cooling system was delivered to Chile during the quarter. This was the Group’s first installation in South America and is in line with Beijer Ref’s focus on carbon dioxide and other environmentally friendly cooling technology to contribute to lower impact on the greenhouse effect. Risk description The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example staff departures. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report. Malmö, 24 April 2017 Beijer Ref AB (publ) Per Bertland, President and CEO For more information: Per Bertland, CEO – switchboard +46 (0)40-35 89 00 This interim report has not been reviewed by the Company’s auditors. 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 24 April 2017. Accounting policies This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 ‘Accounting for legal entities’. Beijer Ref continues to apply the same accounting policies and valuation methods as those described in the most recent annual report, except as specified in the following. New and amended standards applied as from 1 January 2017 are not expected to have any material effect on the Group’s or Parent’s profit or financial position. 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 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. Beijer Ref AB Stortorget 8, SE-211 34 Malmö, Sweden Telephone +46 40-35 89 00 Corporate ID number 556040-8113 www.beijerref.com The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corresponding to the source and it might therefore be rounding differences in the total. 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.
Beijer Ref Q4 2016
Stable quarter ends a good year Net sales for the fourth quarter of 2016 increased by 8.5 per cent compared with the corresponding period in the previous year and amounted to SEK 2,199M (2,027). The increase is mainly due to the acquired companies, HRP and Realcold. Good development for Commercial & Industrial refrigeration. Slightly weaker development for HVAC. Operating profit for the fourth quarter of 2016 amounted to SEK 145M (134). It is an improvement of 8.0 per cent compared with the same period last year. Profit for the quarter amounted to SEK 100M (84), an increase of 18.6 per cent compared with the same period last year. Profit per share amounted to SEK 9.17 (8.64). The Board of Directors proposes that the Annual Meeting of shareholders resolves that an increased dividend of SEK 5.50 (5.25) per share shall be paid. Comments by the CEO Stable quarter ends a good year Beijer Ref ended 2016 with a stable quarter and a profit increase. The development was especially positive during November and December and we are of the opinion that this trend will continue into the new year. Our largest market segment, Commercial & Industrial refrigeration, enjoyed a positive development during the quarter, whilst HVAC was slightly weaker than in the corresponding quarter of the previous year. Viewed over the full year, however, HVAC enjoyed a stronger development than Commercial & Industrial refrigeration. Strong quarter in Central Europe In Central Europe, the restructuring work with HRP in the United Kingdom is beginning to generate an effect. We were delayed by the examination by the Competition & Markets Authority in the UK (CMA), but were able to complete our work of integrating HRP during the autumn and contributed to a positive result for the fourth quarter. The other companies in the region also enjoyed a positive development. In the Nordic countries, the result was slightly lower than for the corresponding period in the previous year. This is mainly because the comparative figures for the corresponding quarter in the previous year were unusually high. The result in Southern Europe was affected by the fact that we took on costs in order to achieve better logistics and a more cost-efficient organisation in France. In addition, demand in the market for indoor climate control slowed down slightly. On a full year basis, however, the region reports a positive stable development. Asia Pacific developed strongly in line with forecasts and Africa shows a stable positive development. During the quarter, we opened an operation in Tanzania, which becomes our seventh market in Africa. Taken together, it is gratifying that we have reversed the development in the newly-acquired company in the United Kingdom. This acquisition now shows positive results. Important resolution in Kigali At a summit meeting in the capital of Rwanda, Kigali, in October, 170 countries agreed to phase out hydrogen fluoride carbon gases (HFC gases), which contribute to global warning. A decision to phase out HFC has already been taken within the EU, but through the agreement in Kigali the phasing out of HFC will also be initiated in other large markets such as the USA and Japan starting as early as 2019. Other countries in the agreement will follow in accordance with an established timetable, with a final start in 2028 in countries such as India and Pakistan. Through our broad offer of eco-friendly alternatives to HFC solutions, the decision provides good opportunities for Beijer Ref in a growing global market. Continued investment in OEM During the quarter, we continued to expand the range of products manufactured internally and will launch new products during 2017. This operation is now increasing more rapidly than the traditional distribution operation. The OEM investment strengthens our offer in the market towards, among others, food stores. The OEM offer is important in enabling us to meet the increasing demand for eco-friendly solutions which we see in Europe and also increasingly in Australia and New Zealand. We are also continuing our work in digitalising our operation, which will lead to cost savings and increased efficiency in the long term. Our local presence is decisive for good customer relations, but through the digitalisation we also see new market opportunities. Taken together, I look back on a good last quarter of 2016 and a year that has involved an all-time-high for both sales and results. Beijer Ref’s Board of Directors proposes an increased dividend to SEK 5.50 (5.25), which should be seen as a confirmation of yet another good year for the Group. We stand well equipped to face the future and are looking forward to 2017 with confidence. Per Bertland Fourth quarter of 2016 Sales Beijer Ref increased its net sales by 8.5 per cent to SEK 2,199M (2,027) for the fourth quarter of 2016. The sales increase emanates mainly from the acquired companies, HRP and Realcold. When adjusted for exchange rate fluctuations and acquisitions, the organic sales change was -1.0 per cent. The decrease in organic sales is attributable to the weaker HVAC market in Europe. In 2015, the HVAC market in Europe was strongly influenced by the heat wave, the effects of which on demand continued into the fourth quarter and gave strong comparative figures in 2016. The market segment, Commercial & Industrial refrigeration, increased by one per cent. During the year, net sales increased by 8.2 per cent to SEK 9,045M (8,361). When adjusted for exchange rate fluctuations and acquisitions, the organic sales change was 2.8 per cent. Results The Group’s operating profit amounted to SEK 145 M (134) for the fourth quarter, equivalent to an increase of 8.0 per cent. The increase in profit is partly explained by the contribution from the acquired companies, HRP and Realcold. The operating margin in the quarter is on a par with the same period in the previous year, 6.6 per cent (6.6). When adjusted for exchange rate fluctuations and acquisitions, the organic change in operating profit was -1.7 per cent for the quarter, for the same reason as sales. For the full year, operating profit increased by 4.5 per cent to SEK 593M (567). When adjusted for exchange rate fluctuations and acquisitions, the organic operating profit increase was 2.7 per cent. The Group’s financial income/expense amounted to SEK -33M (-42) for the year. Profit before tax was SEK 560M (525). Profit for the period was 399M (373). Profit per share amounted to SEK 9.17 (8.64). Dividend The Board of Directors proposes that the Annual Meeting of shareholders resolves that a dividend of SEK 5.50 (5.25) per share shall be paid for the 2016 financial year. This is equivalent to a total of SEK 232.7M if the shares currently held by the company are excluded. Cash flow Cash flow from the current operation before change in working capital was SEK 481M for the 12 months of 2016 compared with SEK 488M for the corresponding period in the previous year. During 12 months, the working capital has increased by SEK 416M (-7), partly as a result of the increased business volume and the acquired companies, HRP and Realcold. This gives a cash flow from the current operation of SEK 65M compared with SEK 495M in the previous year. Investments The Group’s capital expenditure including business combinations amounted to SEK 80M (237) for the year. The difference when compared with the previous year is due to minor influence from acquisitions. Significant events during the year During the first quarter, the UK Competition & Markets Authority (CMA) began 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. The planned restructuring work could therefore begin. HRP is included in the consolidated 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, 16 February 2017 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 interim report has not been the subject of examination by the Company’s Auditors. 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 16 February 2017. 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 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. The Annual Meeting of shareholders will be held on 6 April 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
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
Beijer Ref Q2 2016
A strong quarter Net sales increased by 12.3 per cent compared with the corresponding quarter last year and amounted to SEK 2,417M (2,153). The increase is mainly due to a continued positive development in the Southern Europe market region relating to air-conditioning products. Operating profit amounted to SEK 186M (158). The improved profit is mainly the result of increased sales. In June, the UK Competition & Markets Authority (CMA) approved the acquisition of HRP Ltd which was consolidated in the Group’s operation from June. Net profit for the period increased to SEK 121M (107). Profit per share amounted to SEK 2.82 (2.48). Comments by the CEO A strong quarter The second quarter of 2016 was our strongest quarter so far, mainly due to a good development in our largest region, Southern Europe. Markets which reported a weaker start to the year are beginning to gain speed and we continue to see a positive development, especially for sales of air conditioning. Southern Europe enjoys organic growth of 18 per cent compared with the second quarter of 2015. Sales in Spain and Italy are performing very well and France is also enjoying a stable trend. The positive development in Germany for the first quarter was strengthened still further in the second quarter with a very strong sales and profit increase. In the Nordic markets, sales recovered in the second quarter and are now on a par with our expectations. However, we have not yet compensated for the weak start to the year. In Asia Pacific and Africa, the development continues in accordance with the plan. In June, the UK Competition & Markets Authority (CMA) approved our acquisition of HRP Ltd and we will, therefore, be able to continue with the restructuring work in accordance with the plan. The operation in HRP was consolidated in the Group in June but this influences only sales, as HRP’s operation in June generated a zero result. The resource-demanding CMA process had the effect that our other acquisition work slowed down during the period. However, we are now intensifying the work of identifying potential acquisitions in both new and existing markets. Our results are to some extent affected by negative currency effects. The underlying negative currency effect is -3.6 per cent which is, however, some improvement compared with the previous quarter. The operating margin continues to increase which, in addition to the volume increase, is a result of the extensive review of our logistics flows initiated last year. As a result of this, we see an increased return on capital employed in operations. A large proportion of the sales increase is explained by increased demand for air conditioning. Toshiba, especially, but also other brands, contributed to the increase where the Southern Europe region remains the engine. During the period, sales of air conditioning increased by 40 per cent compared with the second quarter of 2015. We are continuing our work of developing our offer relating to eco-friendly and energy-efficient systems. The interest for these solutions is considerable, not least in Australia and New Zealand where this technology is still not established to the same degree as in the more mature European markets. The United Kingdom is an important market for us and we are keeping ourselves continually updated ahead of Brexit. Our operation in the United Kingdom mainly consists of commercial refrigeration, with an emphasis on the food sector. It is a long-term stable market and our current evaluation is, therefore, that Brexit will have a limited influence on our operation. We are now facing the third quarter which, together with the second quarter, is traditionally the most important period for us during the financial year. Last year’s exceptionally warm weather in Southern Europe generated a strong sales increase, which had a significant influence on the profit for the third quarter of 2015. It remains to be seen if the weather this summer will be as favourable for Beijer Ref. Per Bertland CEO, Beijer Ref Second quarter of 2016 Sales Beijer Ref increased its net sales by 12.3 per cent to SEK 2,417M (2,153) for the second quarter of 2016. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was 11.3 per cent. Behind the sales increase lies a strong development demand in Southern and Central Europe, especially with regard to air conditioning. For the first half of the year, net sales increased by 9.6 per cent to SEK 4,384M (3,999). Adjusted for exchange rate fluctuations and acquisitions, the organic sales change was 7.7 per cent. Results The Group’s operating profit amounted to SEK 186M (158) for the second quarter, equivalent to an increase of 17.7 per cent. The result increase can mainly be explained by the strong development in demand in Southern and Central Europe. Italy and Spain enjoyed an especially positive development during the second quarter. Adjusted for exchange rate fluctuations and acquisitions, the organic increase in operating profit was 22.4 per cent. For the first half of the year, operating profit increased by 9.1 per cent to SEK 275M (252). Adjusted for exchange rate fluctuations and acquisitions, the organic increase in operating profit was 12.3 per cent. The Group’s financial income/expense amounted to SEK -15M (-16) for the half of the year. Profit before tax was SEK 260M (236). Net profit for the period was SEK 182M (168). Profit per share amounted to SEK 4.17 (3.87). Cash flow Cash flow from the current operation before change in working capital is SEK 230M for the first half of 2016 compared with SEK 235M for the corresponding period in the previous year. During the first half of the year, the working capital increased by SEK 340M compared with SEK 191M for the same period in the previous year, mainly as a result of the increased business volume. This gives a cash flow from the current operation of SEK -110M compared with SEK 44M in the previous year. Investments Consolidated capital expenditure, including acquisitions, amounted to SEK 54M (173) for the first half 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. Our restructuring work could, therefore, continue in accordance with the plan. During the examination period, HRP was not included in the Group’s accounts, but was consolidated in 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. Accounting principles This interim report has been prepared in accordance with IAS 34, the Swedish 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 2016 are not deemed to have any significant effect on the Group’s or the parent company’s results or financial position. For further information, please contact: Per Bertland, CEO – switchboard +40 35 89 00 Jonas Lindqvist, CFO – switchboard +40 35 89 00 This interim report has not been the subject of examination by the Company’s Auditors. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden, 15 July 2016 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Ross B Shuster Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President 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 15 July 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 Interim Report for the third quarter will be published on 19 October 2016. - The Year-End Report for 2016 will be published in February 2017. - The Annual Report for 2016 will be published in March 2017. Beijer Ref AB Stortorget 8, SE-211 34 Malmö, Sweden Telephone +46 40-35 89 00 Corporate ID number 556040-8113 www.beijerref.com 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.
Beijer Ref Q1 2016
Stable start to the year Net sales increased by 6.6 per cent compared with the corresponding quarter of the previous year and amounted to SEK 1,967M (1,846). The increase is largely due to the previous year’s acquisitions and organic growth in the Southern Europe market region as well as within the air-conditioning segment. Operating profit amounted to SEK 89M (94). The lower result is mainly due to negative currency effects in South Africa and Norway. Net profit was unchanged, SEK 61M (61). Profit per share amounted to SEK 1.35 (1.39). Comments by the CEO Stable start to the year The year has started with organic growth in most of our geographic markets and with a positive sales development of air-conditioning products. Our largest region, Southern Europe, reports organic growth of six per cent compared with the first quarter of 2015. In Germany, we also saw a better than expected sales development, whilst our Nordic markets started the year slightly weaker than the previous year. This year, Easter fell in the first quarter which gives slightly fewer sales days than the corresponding quarter last year. We saw negative currency effects due to the weaker NOK. However, especially in Africa the result is affected by negative currency effects. Here, the ZAR has weakened so strongly that, in spite of organic growth of 13 percent, our sales was 15 per cent lower counted in SEK compared with the same period in the previous year. In Asia Pacific, the integration work of our new operations in Australia and New Zealand is proceeding in line with the plan and will contribute positively to sales and results during the year. During the period, we have seen a sales increase within air conditioning, where Toshiba and other brands are developing well with Southern Europe as the engine. During the period, sales of air conditioning increased by 19 per cent compared with the first quarter of 2015. Demand for air-conditioning products is to some extent cyclical and we now see the effect of the strengthened market development in Southern Europe. During the first quarter, we continued our work of developing our offer related to eco-friendly and energy-efficient refrigeration systems. We are also continuing our work of making our logistics flows more efficient, which will involve continued capital rationalisation. During 2015, the work on making our logistics flows more efficient generated a net decrease of SEK 140M in the working capital. During the first quarter of 2016, capital tied up continues to decrease. During Q1, the UK Competition & Markets Authority (CMA) has initiated an examination of our acquisition of HRP Ltd with 15 branches in the United Kingdom. Our assessment is that the examination will be completed during the second quarter of this year and that the integration of the operation can then be initiated. April has started strongly and we enter the second quarter with confidence. We enjoy stable organic growth in many of our key markets. Our integration work in Asia Pacific is proceeding well, which could reduce the seasonal variations in the Group’s sales in the long term. Taken together, 2016 looks like being an exciting year for Beijer Ref. Per Bertland CEO, Beijer Ref First quarter of 2016 Sales Beijer Ref increased its net sales by 6.6 per cent to SEK 1,967M (1,846) for the first quarter of 2016. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was 3.3 per cent. Behind the sales increase lies a good development in the Southern Europe market region and stable organic growth in several other markets. Results The Group’s operating profit amounted to SEK 89M (94) for the first quarter. The result decrease can partly be explained by currency effects in Africa and Norway, one-off expenses for legal advice in connection with CMA’s examination of the acquisition of HRP Ltd in the United Kingdom and a slightly calmer first quarter in the Nordic countries. The newly-acquired companies in Australia and New Zealand have contributed positively to the result. When adjusted for exchange rate fluctuations, the organic decrease in operating profit was 5.3 per cent. The Group’s financial income/expense amounted to SEK -4M (-9) for the first quarter. Profit before tax was SEK 85M (85). Net profit was SEK 61M (61). Profit per share amounted to SEK 1.35 (1.39). Cash flow Cash flow from the current operation before change in working capital was SEK 87M for the first quarter of 2016 compared with SEK 83M for the corresponding quarter in the previous year. The increase emanated mainly from lower tax payments in the current year. During the first quarter, the working capital increased by SEK 95M compared with SEK 74M in the previous year. This gives a cash flow from the current operation of SEK -8M compared with SEK 9M in the previous year. The first quarter of every year normally has a negative cash flow due to the build-up of working capital ahead of the strongest part of the year. Investments Consolidated capital expenditure amounted to SEK 21M (154) for the first three months of 2016. No acquisitions were made during the period. Significant events during the year During the first quarter, the UK Competition & Markets Authority (CMA) has initiated an examination of our acquisition of HRP Ltd with 15 branches in the United Kingdom. Our assessment is that the examination will be completed during the second quarter of this year and that the integration of the operation can then be initiated. 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. 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 2016 are not deemed to have any significant effect on the Group’s or the parent company’s results or financial position. Malmö, 20 April 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 interim report has not been the subject of examination by the Company’s Auditors. 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 Interim Report for the second quarter will be published on 15 July 2016. - The Interim Report for the third quarter will be published on 19 October 2016. - The Year-End Report for 2016 will be published in February 2017. - The Annual Report for 2016 will be published in March 2017. Stortorget 8, SE-211 34 Malmö, Sweden Telephone +46 40-35 89 00 Corporate ID number 556040-8113 www.beijerref.com 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.
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
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
Beijer Ref Q2 2015
Southern Europe on the right track Quarter 2 2015 Net sales amounted to SEK 2,152.9M (1,870.8). Operating profit amounted to SEK 158.3M (136.9). Net profit amounted to SEK 107.2M (89.3). Profit per share amounted to SEK 2.48 (2.03). Continued positive trend in the second quarter with sales growth of 15.1 per cent and an operating profit improvement of 15.6 per cent compared with the corresponding quarter in the previous year. Strong development in the Nordic countries, a continued positive trend in Southern Europe and positive contributions from the acquisitions made during the first quarter in New Zealand, Australia, Thailand, India and Malaysia. Comments by the CEO Beijer Ref’s second quarter in 2015 consolidates the positive trend from the first quarter. It is especially pleasing that Beijer Ref’s largest market region Southern Europe, which accounts for nearly 40 per cent of the Group’s total sales, continues on a good trend. Beijer Ref’s operation is partly weather dependent and warm summers bring about increased sales, but the result in Southern Europe is especially due to an increased demand as a result of stronger markets. It seems as if the economic reform work, especially in Spain, but also in the other countries in the region, is beginning to impact, which gives a reason for cautious optimism about continued growth in Southern Europe. This, combined with continued strong growth in Sweden, the acquisitions made and continued good development in southern Africa, contributed to enabling Beijer Ref to increase its sales for the second quarter by 15.1 per cent and to an increased operating profit of SEK 158.3M – an increase of 15.6 per cent compared with the same period in 2014. This is the so far strongest quarter ever for Beijer Ref. Beijer Ref’s investment in carbon dioxide-based refrigeration systems continues to capture market share, especially in the Nordic countries. Compared with the second quarter in 2014, sales of eco-friendly refrigeration systems have trebled in Sweden, a success that can be attributed to the Group’s investment in eco-friendly refrigeration systems developed by the company. This manufacturing is currently carried out in Italy, Sweden and, since May, also in France, where the newly established manufacturing company, SCM REF France, delivers chillers to the Beijer Ref companies in Southern Europe. Beijer Ref’s OEM investment continues with expansion in additional geographic markets. Breakthrough order in Poland In Central Europe, especially Holland and Belgium report stable growth. In Eastern Europe, the market concern that can be attributed to the Ukraine crisis remains evident. However, a gratifying and future-oriented message came at the beginning of July when Beijer Ref in Poland signed its first order for carbon dioxide-based refrigeration systems. These are manufactured by Beijer Ref’s OEM division and installed in a logistics centre for a leading food chain in Europe. Beijer Ref’s objective is to be a proactive participant in the changeover to eco-friendly refrigeration technology in Europe. The Polish order should be regarded as something of a breakthrough in the Polish refrigeration market. Beijer Ref has previously delivered carbon dioxide-based refrigeration systems manufactured by the company in the Estonian and Latvian markets. The company’s own manufacturing of eco-friendly refrigeration systems are currently growing faster than any other activity. Successful integration of acquisitions The acquisitions made in the first quarter – of the refrigeration wholesaler Patton’s operations in New Zealand, Australia, Thailand and India, and of RNA Engineering & Trading in Malaysia – are already well integrated within the Beijer Ref organisation and the work involved with the realisation of synergies continues. For example, the production in Thailand is under evaluation for the possible introduction of European technology. All one-off and structural costs related to the acquisitions are taken in the second quarter. Hot July bodes well With an initially hot July in Southern Europe, the continuing general strong market development and a breakthrough for eco-friendly refrigeration systems in Poland, I am looking forward with confidence to the third quarter for Beijer Ref. 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 15.1 per cent to SEK 2,152.9M (1,870.8) for the second quarter of 2015. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was three per cent. The Group increased its sales by 15.8 per cent to SEK 3,998.6M (3,451.8) during the period January to June which organically is an increase of two 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 this quarter’s sales increase lies a positive development in Southern Europe, the Nordic countries and A&A as well as acquisitions. Results The Group’s operating profit amounted to SEK 158.3M (136.9) for the second quarter. The result increase can mainly be explained by increased activity in the Nordic countries, Southern Europe and South Africa as well as acquisitions. For the first six months, operating profit amounted to 252.5M (208.2). The main reason why the increase in the profit calculated as a percentage was not higher in relation to the sales increase is that the majority of the sales increase comes from acquisitions and currency effects. The acquisitions give the same proportional increase in the profit as in the sales as the margins of the acquisitions are close to the Group’s total margin. Exchange rate fluctuations have the same percentage effect on the sales as on the profit as long as this has largely the same distribution as the sales, which is the case. The Group’s financial income/expense amounted to SEK -6.9M (-8.6) for the second quarter. Profit before tax was SEK 151.3M (128.3). Net profit was SEK 107.2M (89.3). Profit per share amounted to SEK 2.48 (2.03). For the first six months of the year, the Group’s financial income/expense amounted to SEK -16.2M (-16.1). Profit before tax was SEK 236.3M (192.1). Net profit amounted to SEK 167.7M (134.9). Profit per share was SEK 3.87 (3.06). Other financial information Consolidated capital expenditure, including acquisitions, amounted to SEK 172.6M (40.2) for the first six months of the year. Shareholders’ equity amounted to SEK 2,588.9M (2,431.7). The net debt was SEK 1,776.3M (1,607.5). The equity ratio amounted to 40.7 per cent (41.9). The average number of employees during the period was 2,361 (2,169). Significant events during the first six 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. 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 participate in the changeover to eco-friendly refrigeration technology in Europe. 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 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. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden, 17 July 2015 Bernt Ingman Chairman Peter Jessen Jürgensen Board Member Frida Norrbom Sams Board Member William Striebe Board Member Philippe Delpech Board Member Monica Gimre Board Member Joen Magnusson Board Member Per Bertland President For further information, please contact: Per Bertland, CEO 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 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.
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
Beijer Ref AB
Q4 2014 Strong end to the year Quarter 4 2014 Net sales amounted to SEK 1,789.7M (1,589.2). Operating profit amounted to SEK 115.5M (98.9). Net profit amounted to SEK 82.5M (61.1). Profit per share amounted to SEK 1.91 (1.38). Sales growth of 12.6 per cent and operating profit improvement of 16.7 per cent compared with the corresponding quarter in the previous year. Organic growth in sales of 4.8 per cent and organic increase in operating profit of 13.0 per cent. New acquisition, GFOI on the Réunion Island in the southern hemisphere. The Board of Directors proposes a dividend of SEK 5.00 (4.75) per share. Comments by the CEO Strong growth in several markets With increased sales of 13 per cent, of which an organic growth of five per cent and an operating profit of SEK 115.5M, the fourth quarter showed the strongest rate of increase during 2014, both organically and totally – a convincing end to the year characterised by a number of strategically important decisions and events such as the EU’s resolution about a new f-gas ordinance. In some of the Group’s geographic segments, the increase was considerable. In the Nordic countries, sales increased by 23 per cent, in Central Europe by 10 per cent and in A&A (Africa and Asia), Thailand achieved six per cent and South Africa 18 per cent. The Nordic countries lead the development with regard to the changeover from f-gases to environment-friendly refrigerants. This favours Beijer Ref which has a strong position in the sector. The United Kingdom continues to convince with its extensive domestic service concept. In the largest market in Europe, Germany, the operation established from scratch by Beijer Ref a few years ago has gained a solid foothold. However, the individually largest market region, Southern Europe, has continuing difficulties in achieving the levels that prevailed prior to the conflict between Russia and Ukraine and the European financial crisis. The five countries, South Africa, Namibia, Botswana, Mozambique and Zambia showed that Africa with its considerable requirement for modern refrigeration systems remains a highly interesting market for Beijer Ref with 10 per cent organic growth in the fourth quarter. New acquisition in the southern hemisphere In October, Beijer Ref acquired all the shares in the French refrigeration wholesaler GFOI (Générale Frigorifique Océan Indien), which is based on the Réunion Island and located approximately 800 kilometres east of Madagascar in the Indian Ocean. GFOI reports sales of approximately SEK 50M and is the leading refrigeration wholesaler on Réunion, which is a French département with more than 840,000 inhabitants and a rapidly expanding tourist industry. GFOI will be integrated into Beijer Ref and will serve as a branch of the Group’s French refrigeration wholesaler, GFF. With the acquisition, Beijer Ref reaches sales of more than SEK 700M in the southern hemisphere. Own manufacturing restructured Since the acquisition of the remaining 49 per cent of the shares in SCM Frigo in July 2014, the Group’s newly-established Beijer Ref OEM business area, under the management of the Italian company, has increased its venture into own production of both standardised and customer-adapted environment-friendly refrigeration systems as well as the training of customers and suppliers in environment-friendly refrigeration technology under the name, Beijer Ref Academy. The first company in addition to SCM Frigo to adapt the new manufacturing concept was DEM in Vislanda, under the name SCMREF AB. During 2015, Beijer Ref’s own operation will be made more efficient under the management of its Italian production company. Carrier DX ready for launch during the first quarter of 2015 During the fourth quarter, the work of relaunching Carrier’s technically updated DX products (comfort cooling) has been completed. We are now ready to start up sales and distribution of Carrier’s heat-pump and air-conditioning programme in most European countries on an exclusive basis. 2015 The weaker SEK has favoured us as more than 95 per cent of invoicing is made in foreign currency. Current exchange rates will most probably signify further positive exchange effects, at least during the first quarter of the year. The EU’s resolution about a new f-gas ordinance involves the phasing out of old refrigerants which means that a comprehensive adaptation of the refrigeration sector is likely. New environment-friendly refrigerants – either natural, such as carbon dioxide, or synthetic, will replace the current HFC-based technology. Beijer Ref stands well equipped for this change-over with its long experience within carbon dioxide-based solutions. In line with the company’s dividend policy, the Beijer Ref Board of Directors proposes an increased dividend of SEK 5.00 (4.75). 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 12.6 per cent to SEK 1,789.7M (1,589.2) for the fourth quarter of 2014. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was 4.8 per cent. Accumulated for twelve months, the organic growth amounts to 3.1 per cent. For the 2014 full year, the Group’s turnover amounted to SEK 7,189.0M (6,595.4). 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 five geographic segments: The Nordic countries, Central Europe, Eastern Europe, Southern Europe and A&A (Africa and Asia). Behind the quarter’s sales increase lies a positive development in Central Europe, the Nordic countries and A&A whereas the southern and east European markets report a weak demand. Results The Group’s operating profit amounted to SEK 115.5M (98.9) for the fourth quarter. The result increase can mainly be explained by increased sales, especially in the Nordic countries, Central Europe and A&A. When adjusted for exchange rate fluctuations and acquisitions, the organic increase in operating profit was 13 per cent. In the previous year’s figures, the accumulated operating result is charged with one-time costs of SEK 34.2M. For the 2014 full year, the operating profit amounted to SEK 481.4M (377.7). Excluding one-time costs, the operating profit was SEK 411.9M in the previous year. The organic increase for the 2014 full year was 23.0 per cent. The Group’s financial income/expense amounted to SEK -8.3M (-7.4) for the fourth quarter. Profit before tax was SEK 107.2M (91.5). Profit after tax was SEK 82.5M (61.1). Profit per share amounted to SEK 1.91 (1.38). For the 2014 full year, the Group’s financial income/expense amounted to SEK -34.9M (-31.1). Profit before tax was SEK 446.5M (346.6). Profit after tax amounted to SEK 324.5M (244.2). Profit per share was SEK 7.46 (5.51). Dividend The Board of Directors proposes that the Annual Meeting of shareholders resolves that a dividend of SEK 5.00 (4.75) per share shall be paid for the 2014 financial year. This is equivalent to a total of SEK 212.0M if the shares currently held by the company are excluded. Other financial information Consolidated capital expenditure, including acquisitions, amounted to SEK 182.6M (57.6) for the 2014 full year. Of this, the major portion refers to the acquisition of the remaining 49 per cent in SCM Frigo. Liquid funds, including unutilised bank overdraft facilities, were SEK 503.8M (563.2) on 31 December 2014. Shareholders’ equity amounted to SEK 2,618.6M (2,417.0). The net debt was SEK 1,429.8M (1,211.5). The equity ratio amounted to 46.0 per cent (47.3). The average number of employees during the period was 2,207 (2,137). Significant events during the year In January, Beijer Ref acquired all the shares in Eurocool (Pty) Ltd, a leading refrigeration wholesaler in South Africa. Eurocool was founded in 1999 and currently holds a strong market position within Beijer Ref’s priority segments. The company reports sales of approximately SEK 65M and has 36 employees. The acquisition is estimated to provide cost synergies, increased efficiency and increased purchasing volumes through the co-ordination with Beijer Ref’s existing operation in southern Africa. The acquisition is deemed to have a marginal positive effect on Beijer Ref’s profit per share in 2014. Eurocool is included in Beijer Ref’s accounts from January 2014. On 12 March, the EU Parliament voted ‘yes’ to the proposal about a new f-gas ordinance which was confirmed by the Council of Ministers in a vote on 14 April. As a result, the decision to phase out refrigerants with fluorised greenhouse gases (f-gases) has come into force which is predicted to have a positive effect on Beijer Ref through the investments in new technology which the end customers will gradually need to make and where Beijer Ref is well prepared for the new rules and regulations. On 14 May, the Swedish Companies Registration Office approved the Group’s change of name from G & L Beijer to Beijer Ref. A classic Swedish industrial company’s modern operation is now also reflected in the company name. In July, Beijer Ref acquired the remaining 49 per cent of the shares in the Italian SCM Frigo Group, a leading manufacturer in Europe of, among other things, chillers based on environment-friendly technology. The company reports sales of around SEK 240M and has 90 employees. The acquisition is deemed to have a positive effect on Beijer Ref’s net income already in 2014. In August, Beijer Ref acquired all the shares in a leading refrigeration wholesaler in Norway, Børresen Cooltech AS. Børresen Cooltech reports sales of SEK 60M, has 20 employees and will be integrated into Beijer Ref’s organisation. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. Børresen Cooltech is included in the consolidated accounts from August 2014. In September, Beijer Ref strengthened its position in the rapidly growing German refrigeration wholesale market when it acquired the net assets in Grün Großhandel für Kälte- und Klimazubehör. The company reports sales of approximately SEK 25M, has seven employees and gives the Group a strategically important presence in Stuttgart. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. The company is included in the consolidated accounts from October 2014. In October, Beijer Ref acquired all the shares in the French refrigeration wholesaler, GFOI (Générale Frigorifique Océan Indien). GFOI is located on the Réunion Island approximately 800 kilometres east of Madagascar in the Indian Ocean. The company reports sales of around SEK 50M, has seven employees and is a step in the Group’s expansion outside Europe. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. Events after the end of the reporting period In January 2015, Beijer Ref signed a new exclusive distribution agreement with Carrier the world-leading American refrigeration group. The agreement gives Beijer Ref the exclusive right to sales and service of the DX comfort cooling products in Europe. Beijer Ref already has the sole right for the distribution of Toshiba’s air-conditioning units, heat pumps and ventilation systems, and the agreement with Carrier further strengthens the Group’s product supply. Risk assessment The operations of the Beijer Ref 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 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 2014 will be published in March 2015. - The Three-Month Report for 2015 will be published on 23 April 2015. Malmö, 10 February 2015 Beijer Ref AB (publ) Board of Directors For further information, please contact: Per Bertland, CEO 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 an examination by the company’s auditors. www.beijerref.com
Beijer Ref AB Q3 2014
Supplementary acquisitions deliver growth Quarter 3 2014 • Net sales amounted to SEK 1,947.4M (1,830.4). • Operating profit amounted to SEK 157.8M (146.7). • Net profit amounted to SEK 107.0M (100.2). • Profit per share amounted to SEK 2.49 (2.30). • Sales growth of 6.4 per cent and an operating profit improvement of 7.6 per cent compared with the corresponding quarter in the previous year. Organic decrease of turnover by 1.1 per cent and organic increase of operating profit by 1.4 per cent. • Three new acquisitions and the creation of the new Beijer Ref OEM business area for own manufacturing. Comments by the CEO Slower growth in troubled Europe The third quarter of 2014 shows that Beijer Ref continues to deliver growth with an increase in sales of 6.4 per cent and an operating profit of SEK 157.8M in spite of an unusually cold summer in southern Europe and the slowdown in demand due to the Ukraine crisis. In Central Europe, the Group’s companies in the United Kingdom continue to report good results with strong sales as well as increased market share. In three years, Beijer Ref has progressed from third place to a position as leader in the British market. Beijer Ref’s business concept, where rapid service and security of delivery are decisive for end customers such as leading supermarkets, together with acquisitions, important reasons for the increased market share. Holland and Germany developed well during the third quarter and continue to report growth and increased market share. In Eastern Europe, Poland continues to pull the region in a positive direction whilst sales in Southern Europe were affected by a squeezed macro-economy as well as bad summer weather throughout the region. The cold and rainy summer in France, Spain and Italy affected both demand within comfort cooling, HVAC (heating, ventilation and air conditioning), and commercial refrigeration. After the expectant start of the first six months for Beijer Ref’s Nordic market region, the trend changed during the third quarter with increased sales of 21 per cent. In Africa and Asia (A&A), Thailand fell slightly, whereas southern Africa reported strong growth. In this region, all integration costs relating to the acquisition of Eurocool have been absorbed and, with a sales increase of 13 per cent, the operation in southern Africa currently exceeds the plans. Significant acquisitions During the third quarter, Beijer Ref strengthened its position as one of the three largest refrigeration wholesalers with three important acquisitions. Among other things, the Group chose to bring forward the option to acquire the remaining 49 per cent of the shares in the Italian SCM Frigo Group, a leading manufacturer in Europe of refrigeration units based on environment-friendly technology. In addition Beijer Ref in August acquired all the shares in Børresen Cooltech AS, a leading refrigeration wholesaler in Norway. Børresen Cooltech reports sales of just under SEK 60M, has 20 employees and will be integrated into of Beijer Ref’s Norwegian organisation. In September, Beijer Ref strengthened its growing position in the German refrigeration wholesale market when it acquired the net assets in Grün Großhandel für Kälte- und Klimazubehör in Stuttgart. With this, Beijer Ref has acquired operations in Düsseldorf, Nuremberg, Munich and Leipzig since it established an operation in Germany in 2011 and now also an excellent geographic location in Stuttgart. In addition to the aforementioned, the Group has made yet another acquisition after the end of the reporting period when it acquired all the shares in the French refrigeration wholesaler, GFOI (Générale Frigorifique Océan Indien) in October. GFOI is located on the Réunion Island approximately 800 kilometres east of Madagascar in the Indian Ocean, a French département with a rapidly expanding tourist industry. Own manufacturing becomes a new business area With SCM Frigo as the base, the Group has created the new business area, Beijer Ref OEM, during the third quarter with the aim of carrying out own manufacturing of customer-adapted refrigeration systems. Since it was established in 1979, SCM Frigo has built up a unique technical competence and is currently one of the leading manufacturers in the world of environment-friendly refrigeration systems. Several companies within the Beijer Ref Group already carry out own manufacturing of customer-adapted refrigeration systems. However, with the creation of Beijer Ref OEM this operation will be carried out in an even more structured and efficient form under the leadership of the leading manufacturer in Europe, which is expected to provide a number of positive synergy effects. Logistics the next focus area In an increasingly borderless and homogenous Europe, logistics is increasingly becoming a decisive factor for competitiveness. With more than 200 branches in Europe, Beijer Ref will, in the future, place a strong focus on making the flow of products still more efficient with increased service and reduced costs as the objective. Per Bertland CEO, Beijer Ref AB About Beijer Ref Beijer Ref is one of the three 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, refrigeration units developed by the company itself and an efficient service. Sales Beijer Ref increased its sales by 6.4 per cent to SEK 1,947.4M (1,830.4) for the third quarter of 2014. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was minus one per cent. Accumulated for nine months, the organic growth amounts to three 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 five geographic segments: The Nordic countries, Central Europe, Eastern Europe, Southern Europe and A&A. Behind the quarter’s sales increase lie acquisitions and a weaker Swedish krona as well as a good development in Central Europe, Nordic countries and A&A. However, sales for the quarter were affected by the slightly weaker south European markets and a cold summer in Europe. Results The Group’s operating profit amounted to SEK 157.8M (146.7) for the third quarter. The result increase can mainly be explained by increased sales, especially in Central Europe and Eastern Europe where Poland continues to be a driving market. Adjusted for exchange rate fluctuations and acquisitions, the organic change in operating profit was 1.4 per cent. In the previous year’s figures, the accumulated operating result is charged with one-time costs of SEK 34.2M. For the first nine months, the operating profit amounted to SEK 366.0M (278.8). Excluding one-time costs, the operating profit was SEK 313.0M in the previous year. The Group’s financial income/expense amounted to SEK -10.6M (-9.0) for the third quarter. Profit before tax was SEK 147.2M (137.9). Profit after tax was SEK 107.0M (100.2). Profit per share amounted to SEK 2.49 (2.30). For the nine months of the year, the Group’s financial income/expense amounted to SEK -26.7M (-24.0). Profit before tax was SEK 339.3M (255.0). Profit after tax amounted to SEK 242.0M (183.0). Profit per share was SEK 5.56 (4.13). Other financial information Consolidated capital expenditure, including acquisitions, amounted to SEK 136.5M (41.2) for the first nine months of 2014. Of this, the major portion refers to the acquisition of the remaining 49 per cent in SCM Frigo. Liquid funds, including unutilised bank overdraft facilities, were SEK 598.9M (513.1) on 30 September 2014. Shareholders’ equity amounted to SEK 2,457.5M (2,305.1). The net debt was SEK 1,528.9M (1,302.2). The equity ratio amounted to 41.6 per cent (44.0). The average number of employees during the period was 2,194 (2,119). Significant events during the year In January, Beijer Ref acquired all the shares in Eurocool (Pty) Ltd, a leading refrigeration wholesaler in South Africa. Eurocool was founded in 1999 and currently holds a strong market position within Beijer Ref’s priority segments. The company reports sales of approximately SEK 65M and has 36 employees. The acquisition is estimated to provide cost synergies, increased efficiency and increased purchasing volumes through the co-ordination with Beijer Ref’s existing operation in southern Africa. The acquisition is deemed to have a marginal positive effect on Beijer Ref’s profit per share in 2014. Eurocool is included in Beijer Ref’s accounts from January 2014. On 12 March, the EU Parliament voted ‘yes’ to the proposal about a new F-gas ordinance which was confirmed by the Council of Ministers in a vote on 14 April. As a result, the decision to phase out refrigerants with fluorised greenhouse gases (F-gases) has come into force which is predicted to have a positive effect on Beijer Ref through the investments in new technology which the end customers will gradually need to make and where Beijer ref is well prepared for the new rules and regulations. On 14 May, the Swedish Companies Registration Office approved the Group’s change of name from G & L Beijer to Beijer Ref. A classic Swedish industrial company’s modern operation is now also reflected in the company name. In July, Beijer Ref acquired the remaining 40 per cent of the shares in the Italian SCM Frigo Group, a leading manufacturer in Europe of, among other things, refrigeration units based on environment-friendly technology. The company reports sales of around SEK 240M and has 90 employees. The acquisition is deemed to have a positive effect on Beijer Ref’s profit per share already in 2014. In August, Beijer Ref acquired all the shares in a leading refrigeration wholesaler in Norway, Børresen Cooltech AS. Børresen Cooltech reports sales of SEK 60M, has 20 employees and will be integrated into Beijer Ref’s organisation. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. Børresen Cooltech is included in the consolidated accounts from August 2014. In September, Beijer Ref strengthened its position in the rapidly growing German refrigeration wholesale market when it acquired the net assets in Grün Großhandel für Kälte- und Klimazubehör. The company reports sales of approximately SEK 25M, has seven employees and gives the Group a strategically important presence in Stuttgart. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. The company is included in the consolidated accounts from October 2014. After the end of the reporting period In October, Beijer Ref acquired all the shares in the French refrigeration wholesaler, GFOI (Générale Frigorifique Océan Indien). GFOI is located on the Réunion Island approximately 800 kilometres east of Madagascar in the Indian Ocean. The company reports sales of around SEK 50M, has seven employees and is a step in the Group’s expansion outside Europe. The acquisition is deemed to have a marginally positive effect on Beijer Ref’s net income. Risk assessment The operations of the Beijer Ref 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 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 2014 will be published on 10 February 2015. - The Annual Report for 2014 will be published in April 2015. Malmö, 22 October 2014 Beijer Ref AB (publ) Per Bertland, CEO For further information, please contact: Per Bertland, CEO 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
Beijer Ref AB Q2 2014
Continued positive development for Beijer Ref Quarter 2 2014 • Net sales amounted to SEK 1,870.8M (1,711.9). • Operating profit amounted to SEK 136.9M (83.4). • Net profit amounted to SEK 89.3M (50.4). • Profit per share amounted to SEK 2.03 (1.14). • The positive trend continued for the second quarter with a growth in sales of nine per cent and an improved operating profit of 64 per cent compared with the corresponding quarter in the previous year. Excluding one-time costs in 2013, operating profit increased by 16 per cent. • Strong increase of HVAC (comfort cooling) in Europe during the second quarter. Comments by the CEO Continued positive trend in Europe The second quarter of 2014 consolidates the positive trend from the first quarter with a sales increase of 9.3 per cent. The operating profit of SEK 136.9M shows that Beijer Ref continues to strengthen its position as the largest refrigeration wholesaler in Europe. Among our regions, Central Europe enjoyed a good development during the second quarter. The United Kingdom continued to develop positively with both increased sales and increased market share. In the UK, Beijer Ref’s competitive distribution and service concept to nationally operating customers is achieving increased penetration in the market. Holland strengthened its position during the quarter and Germany continues its positive development. Southern Europe accounts for around 40 per cent of Beijer Ref’s sales and in this region both sales and results are also increasing. At this moment in time, Spain is the fastest expanding market in Southern Europe, especially with increased demand for HVAC (heating, ventilation and air conditioning, also called comfort cooling), which drives growth. In the Eastern European market, Poland is leading the development with a significant increase in sales within both commercial & industrial refrigeration and HVAC. In the Nordic market, the trend in the Swedish market has been ‘wait-and-see’, but a strong end to the quarter is a positive signal. Denmark and Finland developed well. Sweden and Norway started the quarter slightly weaker but turned the trend during June and there is reason for cautious optimism in both countries. In the Rest of the World, Thailand’s development has stabilised after the recent disturbances and South Africa is developing according to plan. One contributing reason to the quarter’s results, albeit a minor influence, is the positive currency effects of the stronger Euro, something that must be seen as welcome after a long period with the opposite situation. Increased investment in refrigeration units produced by the company Refrigeration units produced by the company itself is a growing and increasingly prioritised segment within Beijer Ref. As one of the largest and most modern refrigeration wholesalers in the world, an understanding of our customers’ refrigeration requirements has been built up within the Group. We are transferring this refrigeration competence to a growing portfolio with refrigeration units produced by the company. Our ambition is that Beijer Ref will increasingly be able to offer even more competitive energy-efficient solutions, both with regard to individual standard units and customer-adapted overall concepts with the most modern environment technology. Toshiba increasingly strong brand within HVAC The demand for HVAC (comfort cooling) is slightly more dependent on the economic situation than other operations within Beijer Ref and, therefore, the increased sales during the second quarter within this market segment can be seen as a sign of a continued economic upturn in Europe. Toshiba HVAC is one of the many world-leading brands within comfort cooling represented by Beijer Ref. Like Beijer Ref, the world-leading Japanese high-tech company, Toshiba, has its roots in the innovative company culture of the late 19th century. It currently consists of more than 740 companies with 210,000 employees all over the world. We are pleased to note the development for Toshiba’s products within comfort cooling was strong in all markets during the second quarter. It should also be emphasised that our sales of both Samsung and Mitsubishi enjoyed a similar development. Interesting acquisition opportunities With the European recession hopefully behind us, a stronger market position, increased operating margin, and positive effects of the previous year’s cost savings, Beijer Ref has after the first two quarters of the year consolidated its operation and is well prepared for future acquisitions. It should also be mentioned that after 136 years of operation as G & L Beijer, the Group officially changed its name to Beijer Ref which, as previously announced, better reflects the consolidated operation (ref = refrigeration). At the same time, the Group’s new website was ready with more lucid and easily accessible information. Please visit our website on www.beijerref.com. Per Bertland CEO, Beijer Ref AB Quarterly report Q2 2014 About Beijer Ref Beijer Ref is one of the three largest refrigeration wholesalers in the world and the leading company in Europe. The Group offers competitive and innovative solutions within refrigeration and air conditioning with customer-adapted products, refrigeration units developed by the company itself and efficient logistics. Sales Beijer Ref increased its sales by nine per cent to SEK 1,870.8M (1,711.9) for the second quarter of 2014. Adjusted for exchange rate fluctuations and acquisitions, the organic sales increase was four per cent. The Group also increased its sales by nine per cent to SEK 3,451.8M (3,175.7) for the period January to June which, organically, is an increase of five per cent. Beijer Ref operates in three market areas: commercial & industrial refrigeration and HVAC (comfort cooling). The Group splits its operation in the global market into five geographic segments: The Nordic countries, Central Europe (including the United Kingdom and Ireland) Eastern Europe, Southern Europe and the Rest of the World (currently consisting of southern Africa and Thailand). Behind the quarter’s sales increase lies increased demand in virtually all of these markets, where especially Central Europe (including the United Kingdom and Ireland), reported strong growth. Eastern Europe also developed well, with Poland as the largest market. Southern Europe also enjoyed a positive development. HVAC, which accounts for approximately 30 per cent of Beijer Ref’s sales, continued to increase during the second quarter. Results The Group’s operating profit amounted to SEK 136.9M (83.4) for the second quarter. The result increase can be explained as a combination of implemented savings measures taken during 2013, increased market share in the United Kingdom and strengthened demand, especially for HVAC, but also for commercial & industrial refrigeration in Europe. In the previous year’s figures, the operating result is charged with one-time costs of SEK 34.2M. Excluding these one-time costs, the operating profit for the second quarter of 2013 amounted to SEK 117.6M. For the first half year, the operating profit amounted to SEK 208.2M (132.1). Excluding one-time costs, the operating profit was SEK 166.3M in the previous year. The Group’s financial income/expense amounted to SEK -8.6M (-9.6) for the second quarter. Profit before tax was SEK 128.3M (73.8). Profit after tax was SEK 89.3M (50.4). Profit per share amounted to SEK 2.03 (1.14). For the first half of the year, the Group’s financial income/expense amounted to SEK -16.1M (-15.0). Profit before tax was SEK 192.1M (117.1). Profit after tax amounted to SEK 134.9M (82.8). Profit per share was SEK 3.06 (1.83). Other financial information Consolidated capital expenditure, including acquisitions, amounted to SEK 40.2M (34.4) for the first half of 2014. Liquid funds, including unutilised bank overdraft facilities, were SEK 373.6M (433.1) on 30 June 2014. Shareholders’ equity amounted to SEK 2,431.7M (2,247.5). The net debt was SEK 1,607.5M (1,479.3). The equity ratio amounted to 41.9 per cent (41.7). The average number of employees during the first half of the year was 2,169 (2,106). Significant events during the year In January, G & L Beijer acquired all the shares in Eurocool (Pty) Ltd, a leading refrigeration wholesaler in South Africa. Eurocool was founded in 1999 and holds a strong market position within G & L Beijer’s priority segments. The company reports sales of approximately SEK 65M and has 36 employees. The acquisition is estimated to provide cost synergies, increased efficiency and increased purchasing volumes through co-ordination with Beijer Ref’s existing operation in southern Africa. The acquisition is deemed to have a marginal positive effect on Beijer Ref’s profit per share in 2014. Eurocool is included in G & L Beijer’s accounts from January 2014. On 12 March, the EU Parliament voted ‘yes’ to the proposal about a new F-gas ordinance which was confirmed by the Council of Ministers in a vote on 14 April. As a result, the decision to phase out refrigerants with fluorised greenhouse gases (F-gases) has come into force which is predicted to have a positive effect on Beijer Ref through the investments in new technology which the end customers will gradually need to make and where Beijer ref is well prepared for the new business opportunities. On 14 May, the Swedish Companies Registration Office approved the Group’s change of name from G & L Beijer to Beijer Ref. A classic Swedish industrial company’s modern operation is now also reflected in the company name. Risk assessment The operations of the Beijer Ref 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 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 - Quarterly Report Q3 2014 will be published on 22 October 2014. - The Year-end Report for 2014 will be published in February 2015. - The Annual Report for 2014 will be published in April 2015. For further information, please contact: Per Bertland, CEO 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. The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report. Malmö, Sweden, 18 July 2014 Bernt Ingman, Chairman Peter Jessen Jürgensen, Board Member Anne-Marie Pålsson, Board Member William Striebe, Board Member Philippe Delpech, Board Member Harald Link, Board Member Joen Magnusson, Board Member Per Bertland, President Reporting 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 and valuation methods as those described in the latest Annual Report, with the exception of what is stated below. The Group’s operation is split into operating segments based on how the company’s chief operating decision maker, i.e. the President, monitors the operation. A decision has been taken about a new segment classification when, as from 1 January 2014, the highest executive decision maker monitors the operation based on the following segments: South Europe, Central Europe, the Nordic Countries, Eastern Europe and the Rest of the World. New and changed standards applicable as of 1 January 2014 are not expected to have any material effect on the financial position of either the group or the parent company. www.beijerref.com