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Three-Month Report January – March 2010

- Net sales increased by 17 per cent to SEK 1,129.9M (967.4).
- Operating profit increased to SEK 180.5M (34.1), including a capital gain of SEK 140M.
- Profit after tax amounted to SEK 168,7M (22.3), including a capital gain of SEK 140M.
- Profit per share amounted to SEK 7.96 (1.22).
- Profit per share, excluding a capital gain, was SEK 1.35 (1.22).
- Divestment of the Beijer Tech business area.
- Further strengthened financial position.

The above refers to remaining operations and a capital gain from the divestment of Beijer Tech.

The G & L Beijer Group reported a strong development during for the first quarter. During the period, the Beijer Tech business area was divested. This means that Beijer Tech’s sales and results are not included in the figures reported below. Consolidated sales increased by 17 per cent to SEK 1,129.9M (967.4). Operating profit rose to SEK 180.5M (34.1). Operating profit for 2010 includes a capital gain of SEK 140M from the divestment of Beijer Tech. Excluding this gain, operating profit amounted to SEK 40.5M. The positive trend, including an increase in demand, has strengthened in April.

Beijer Ref
Beijer Ref’s sales increased by 17 per cent to SEK 1,129.9M (967.4). When adjusted for acquisitions and currency effects, the increase amounted to four per cent. Acquisitions affected sales positively
(Carrier ARW was not included in the figures for January 2009) whilst the currency effects had a negative influence. The markets in southern Europe, where the downturn at the end of 2008 started, are among the first to experience the upturn. Italy and Spain reported two-digit growth figures in local currency. South Africa, United Kingdom and Holland also developed strongly. The Nordic markets were stable. The East European markets experienced some degree of recovery during the period.

Beijer Ref’s operating profit increased by 24 per cent to SEK 46.3M (37.2) for the quarter. The improved result is explained by increased sales and the continuing effects of savings measures. If acquired units had been included in the reported result from 1 January 2009, the profit improvement is significantly larger. Historically, Beijer Ref has a marked seasonal pattern with relatively weak first and fourth quarters and strong second and third quarters. In addition, Beijer Ref has historically been positioned late in the business cycle.

Consolidated profit before and after tax
The Group’s financial income/expense amounted to SEK 0.1M (-4.6). Financial income/expense includes a share in the profits of associated companies of SEK 2.0M (1.8). Profit before tax rose to SEK 180.6M (29.5). Excluding a capital gain of SEK 140M, profit amounted to SEK 40.6M. Profit after tax amounted to SEK 168.7M (22.3). Profit per share increased to SEK 7.96 (1.22). Excluding a capital gain of SEK 140M, profit per share amounted to SEK 1.35 for the remaining operations for the first quarter of 2010.

Other financial information
Consolidated capital expenditure amounted to SEK 5.0M (14.1). Liquid funds, including unutilised bank overdraft facilities, were SEK 498.3M (363.5) at the end of the quarter. Shareholders’ equity amounted to SEK 2,279.3M (2,077.8). Net indebtedness amounted to SEK 376.1M (595.4). The equity ratio was 57.8 per cent (49.5). The average number of employees during the period was 1,658 (1,412).

Significant events
During the quarter, G & L Beijer divested its Beijer Tech business area to Beijer Alma. G & L Beijer received a consideration of 2.7 million newly-issued B shares in Beijer Alma and SEK 38.7M in cash. In total, the transaction is valued at approximately SEK 345M and G & L Beijer’s capital gain amounted to SEK 140M. The divestment of Beijer Tech was a move forward in the consolidation of G & L Beijer towards the strongly growing refrigeration wholesale operation. As a result of the transaction, G & L Beijer became a significant shareholder in Beijer Alma.

Beijer Tech’s sales amounted to SEK 141.8M (140.1) for the first quarter of 2010 and the average number of employees was 175. Operating profit amounted to SEK 6.3M (6.5).

Risk assessment
The operations of the G & L Beijer Group are affected by a number of external factors, the effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operations are dependent on the general economic trend, especially in Europe, which controls the demand for Beijer Ref’s products and services. Acquisitions are normally linked with risks, for example staff defection. Other operating risks such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, dependence on individuals, etc, are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operations, G & L Beijer AB is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group.

Financial information
- The Annual Meeting of shareholders will held in Malmö on Wednesday 28 April 2010.
- The Six-Month Report for 2010 will be published on 16 July 2010.
- The Nine-Month Report for 2010 will be published on 21 October 2010.
- The Year-End Report for 2010 will be published in February 2011.

Malmö, 27 April 2010
G & L Beijer AB (publ)
Joen Magnusson, Managing Director

For further information:
Switchboard +46 40-35 89 00, mobile +46 709-26 50 91

This Interim Report has not been the subject of special 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 2.3.

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