Beijer Ref — Interim / Quarterly Report 2021

Jan 27, 2022

Beijer Ref AB Q4-2021

English version

Beijer Ref AB

Q4 2021 – Published on 27 januari 2022 ¹

Beijer Ref AB Q4-2021

Strong end to the year

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.

Full year 2021

• Net sales increased by 20.2% compared to the same period last year and amounted to SEK 16,905 million (14,062). Organic growth was 14.4% (-6.2). Acquisition effects amounted to 7.8% (3.7). Currency effects amounted to -1.9% (-2.7).
• EBITA amounted to SEK 1,410 million (1,085), corresponding to an EBITA margin of 8.3% (7.7). The operating profit for the period amounted to SEK 1,361 million (1,036), which is an increase of 31.4% compared with the previous year. The operating margin amounted to 8.0% (7.4).
• Profit before tax was SEK 1,292 million (977). Interest costs are higher than earlier years due to increased borrowing due to the acquisitions performed.

• Cash flow from current activities before change in working capital was positive and amounted to SEK 1,550 million (1,112).

• Profit per share before dilution amounted to SEK 2.58 (1.90) and after dilution to SEK 2.56 (1.89), an increase of 35.4 and 35.6 per cent respectively.

• 2021 has been an active year and the company has made 10 acquisitions, six of them in APAC and four in Europe. Acquired annual sales amount to approximately SEK 1.8 billion, of which approximately SEK 1.1 billion has had an effect on 2021. The acquisitions contribute positively to the group's operating profit.
• Covid-19 has had a minor impact on the company's profit in 2021; individual regions have been affected such as Africa and Asia Pacific. The assessment is that there will be no major effects on profit due to COVID-19 in 2022, unless new outbreaks occur that the company has difficulty in predicting at present.

Key figures	Q4-21	Q4-20	∆%	FY 21	FY 20	∆%
Net sales, sek m	4 271	3 408	25.3	16 905	14 062	20.2
EBITA, sek m	338	271	24.9	1 410	1 085	29.9
EBITA, %	7.9	7.9	–	8.3	7.7	–
Operating profit, sek m	326	256	27.4	1 361	1 036	31.4
Profit margin, %	7.6	7.5	–	8.0	7.4	–
Net profit, sek m	243	180	34.8	990	729	35.9
Profit per share before dilution, sek	0.66	0.47	39.3	2.58	1.90	35.4
Profit per share after dilution, sek	0.65	0.47	39.5	2.56	1.89	35.6
Return on operating capital, %	3.7	3.4	–	15.4	13.9	–
Return on equity, %	5.0	4.1	–	20.3	16.5	–
Average number of employees	–	–	–	4 157	3 856	7.8

The total amount in tables and statements might not always sum-up 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.

Comments by the CEO

Full year 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.

Fourth quarter

Sales for the fourth quarter amounted to SEK 4.3 billion, an increase of 25% compared to the previous year. Organic growth was 12% and acquisition effects were 13%, which were mainly related to Sinclair (Czech Republic) and Inventor (Greece). Both these acquisitions broaden our offering and are a good complement to existing brands in HVAC.

All our product areas have experienced increased organic growth during the quarter. When it comes to commercial refrigeration, demand is largely related to the aftermarket and is relatively insensitive to economic cycles, which is largely because sales consist of spare parts for refrigeration systems in supermarkets and AC facilities in offices that need to function at all times regardless of the economic cycle. We also see that refrigerant prices are on a rising trend.

In commercial refrigeration, there is a technology shift in progress in which environmentally hazadours refrigerants are being phased out.

Beijer Ref is at the forefront of new solutions and has its own production of environmentally friendly refrigeration systems. Furthermore, the company operates in a fragmented market that allows for profitable growth through acquisitions. Both HVAC and OEM have had a very positive development and show double-digit growth figures. Our strategic partner, Toshiba, has successfully launched its indoor air/water heat pumps. The demand for these products is high and we clearly see how the green transition is accelerating the process of replacing old technology with new and relevant technologies.

Global impact

The present pandemic has affected us to a limited extent during the fourth quarter and most markets have been open. In EMEA and APAC, we note a sharp increase in both sales and pro fit.

However, the global situation con tinues to create disruptions in the supply chain with component shor tages, long lead times and high ship ping costs.

Acquisition-intensive

It is with great pleasure that I wel come Inventor, Clima Solutions and Airstream to the group. With these companies, we further expand our portfolio and create new and valua ble synergies for the organisation. We have also acquired the remaining 40% of the shares in Patton Albury, a com pany that offers high-performance and energy efficient products. In total, we have made 10 acquisitions in 2021 and the acquired sales correspond to SEK 1.8 billion on an annual basis.

We continue this high pace of acquisi tions and at the beginning of 2022 we acquired Deltron, a market-leading HVAC distributor in Croatia with good profitability. We have a well conceived acquisition process and are constant ly evaluating new prospects, in both existing markets and new geographi cal areas.

A sustainable world

The organisation has been strengthe ned with important key roles, so as to ensure a high level of delivery and knowledge. We have hired new employees in Sustainability, Supply Chain and IT. The organisation is in an expansive phase and in HVAC and OEM we continue to invest resources in sales, product development and technical support.

Education is an important part of our sustainability work and with the aid of the Beijer Ref Academy we educate the market about sustainable refrige rants. The response to our courses has been very positive and in Septem ber 2021 our Swedish subsidiary,

Kylma, opened the doors of a new CO2 academy.

In 2022, we will also implement our Beijer Ref Exchange Programme. This will be the second time we run our exchange programme and the ambition is to promote an inclusive workplace, identify new talents, build cross-border relationships and ex change knowledge.

The transformation to more sustaina ble refrigeration systems continues in Europe and to meet the increased demand, we inaugurated a new pro duction facility in Padua, Italy in July 2021. It is also gratifying that our sub sidiary Fenagy, which manufactures industrial heat pumps and cooling systems based on the environmen tally friendly refrigerant CO2, received several important key orders during the quarter.

A positive future

In conclusion, I would like to thank my predecessor Per Bertland and all our fantastic employees: you are our most important asset. I would also like to take this opportunity to welco me our 10 new companies to Beijer Ref: together we have an exciting time ahead of us. The board's proposal for an increased dividend is well in line with the positive belief we have in the future.

CEO Christopher Norbye

Fourth quarter 2021

NET SALES

Beijer Ref increased its net sales by 25.3 percent to SEK 4,271 million (3,408) in the fourth quarter of 2021. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 11.6 per cent.

All the company's product areas show double-digit organic growth, even though the company has been affected by component shortages. A weaker krona has led to exchange rate effects of SEK 26 million (-216),

corresponding to 0.8 per cent (-6.2). All regions have had a positive development during the quarter except Africa, which is due to a deteriorating economic situation.

Sales, sek m	Q4	%	FY	%
Net sales 2020	3 408		14 062
Organic change	400	11.6%	1 984	14.4%
Change through acquisitions¹	437	12.8%	1 097	7.8%
Exchange rate fluctuation	26	0.8%	-238	-1.9%
Change total	863	25.3%	2 843	20.2%
Net sales 2021	4 271		16 905

1) Acquisition effect is calculated 12 months after the date of takeover. The acquisitions relate to ACD Trade, which is included in the group's accounts from February 2020, Sinclair from January 2021, Complete Air Supply from February 2021, Coolair from March 2021, IRC from June 2021, Fenagy from July 2021, FCD from August 2021, Armcor from September 2021, Inventor from October 2021, Airstream from November 2021 and Clima Solutions from December 2021.

The figures above relate to the total distribution of net sales during the fourth quarter of 2021. Figures in brackets refer to the corresponding period last year.

PROFIT

The group's operating profit totalled SEK 326 million (256) during the fourth quarter, an increase of 27.4 per cent. The operating margin amounted to 7.6 per cent (7.5). Exchange rate effects of SEK 2.9 million (-19.2) are included in the operating profit figures. The margin is higher despite increased shipping costs and non-recurring costs of approximately SEK 35 million. Profit before tax amounted to SEK 303 million (239) and profit for the period was SEK 243 million

(180). Profit per share before dilution amounted to SEK 0.66 (0.47).

CASH FLOW

Cash flow from current activities before change in working capital during the fourth quarter amounted to SEK 335 million (210). Working capital increased by SEK 560 million during the quarter compared with a decrease of SEK 141 million during the corresponding period of the previous year. The change in working capital is mainly

due to build-up of inventory. Altogether, this gives cash flow from current operations after changes in working capital of SEK -226 million (350).

Cash flow from current operations before changes in working capital amounted to SEK 1,550 million during the year, compared with SEK 1,112 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

Cash flow, sek m	Q4 2021	Q4 2020	FY 2021	FY 2020
Cash flow from current operations before changes in working capital	335	210	1 550	1 112
Change in working capital	-560	141	-1 353	218
Cash flow from current operations	-226	350	197	1 330

1,353 million during 2021 compared to a decrease in 2020 of SEK 218 million, which is mainly due to higher goods in stock. Altogether, this gives cash flow from current operations after changes in working capital of SEK 197 million (1,330). At the end of the period, credit facilities amounted to SEK 4,912 million (4,259), of which unutilised credits amounted to SEK 1,020 million (1,516). In total, net liabilities have increased by SEK 1,641 million, mainly due to higher interest-bearing liabilities in connection with acquisitions, building up stocks and leasing liabilities. During the quarter, the company has taken up loans of SEK 600 million.

INVESTMENTS

Cash flow from investment activities during the quarter amounted to SEK -177 million (-54), which mainly relates to acquisitions and investments in non-current assets. Cash flow from investment activities during 2021 amounted to SEK -776 million (-352) which mainly relates to acquisitions during the period.

COMPANY ACQUISITIONS

Acquisitions are a priority area and

in 2021 a total of 10 companies have been acquired, made up of six in APAC and four in Europe.

Acquired annual sales in 2021 amount to approximately SEK 1.8 billion, of which approximately SEK 1.0 million has had an effect in 2021. The acquisitions contribute positively to the group's operating profit. Seasonal variations occur and mean that sales are highest in quarters two and three in Europe and that quarters one and four are strongest in APAC.

Companies	Acquisition date	Regions	Revenue*	Number of employees*
Sinclair	January	Eastern Europe	475	110
Complete Air Supply	January	Asia Pacific	130	40
Coolair	February	Central Europe	100	25
Industrial Refrigeration Components	June	Asia Pacific	20	2
Fenagy	June	Nordic	30	10
Froid et Clim Distribution (FCD)	June	Asia Pacific	25	5
Armcor	September	Asia Pacific	115	37
Inventor A.G.S.A	October	Southern Europe	800	80
Airstream	November	Asia Pacific	40	14
Clima Solutions	December	Asia Pacific	35	10
Total			1 770	333

*) Refers to estimated sales and the number of employees at the time of acquisition.

IMPORTANT EVENTS AFTER THE END OF THE QUARTER

After the end of the financial year, the company acquired 80% of the shares in Deltron, Croatia with an option to acquire the remaining shares. The company is active in HVAC and is expanding Beijer Ref's geographical coverage within this product segment. The company has sales of SEK 400 million, 110 employees and contributes positively to the company's profit. Deltron is included in the company's accounts from 1 January 2022. Beijer Ref already had a small presence in Croatia and now, through this acquisition, is also established in Bosnia-Herzegovina, which is a new market for the group.

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 outstanding shares of 380,468,980, each with a quota value of SEK 0.98. There are two types of share, A shares and B shares, which represent ten votes and one vote respectively. Beijer Ref had 13,781 (11,046) shareholders on 31 December 2021. The proportion of foreign shareholders amounts to 3.9% (4.3), with a capital shareholding of 44.9% (55.3). As per 31 December 2021, there were 27,956,160 class A shares and 354,347,910 class B shares. The company's ten largest shareholders held 78.6% (76.6) of the votes and 64.5% (61.1) of the capital. Average sales of the Beijer share in the quarter amounted to 325,177 shares (244,101) per day at an average purchase price of SEK 185 (98).

The closing price on 31 December 2021 was SEK 198 (125). As per 31 December 2021, the market value was SEK 75.2 billion (47.8). All amounts refer to value after the split and reconstruction of shares.

OPTIONS PROGRAMME 2021/2024

The company has an option programme that includes about 90 employees within the group. The programme runs from 2021 to 2024. The maximum number of options amounted to 2,262,000 and the number subscribed amounts to 1,476,000. A total of SEK 21.5 million has been paid in respect of the options to a price of SEK 14.10 and is recognised in equity. The company holds treasury shares so as to be able to deliver these when the options run out. The strike price for the shares is SEK 165.60 in May 2024.

ANNUAL GENERAL MEETING AND DIVIDEND

The board has decided that the Annual General Meeting will be held in Malmö on 7 April 2022. Notification will be duly issued.

The board proposes increasing dividend to 1.10 (1.00). The proposal is that the dividend is paid in two instalments, SEK 0.60 in April and SEK 0.50 in October, so as to allow for the company's seasonal variations. The proposal corresponds to 43% (53) of profit per share for the Group. The record dates for the right to dividend is proposed to be 11 April 2022 and 11 October 2022.

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 is environmentally friendly. The goal is for it to increase from today's 33% 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. During 2021 the Group was minor affected by Covid-19. The company predicts that Covid-19 will continue to have a minor affect on the result during 2022. The company has been taking the necessary steps to reduce its impact and is following the WHO recommendation

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, dependenceon 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 19M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The

two other holdings (SEK 25M) 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 327M 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 9 451M. Other long-term liabilities includes written put options identified at the acquisition.

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 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.

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

Summarised profit and loss account, sek m	Q4-21	Q4-20	FY 21	FY 20
Net sales	4 271	3 408	16 905	14 062
Other operating income	16	11	48	25
Operating expenses	-3 839	-3 053	-15 118	-12 610
Depreciation	-123	-111	-474	-442
Operating profit	326	256	1 361	1 036
Net financial income/expense	-22	-16	-69	-59
Profit before tax	303	239	1 292	977
Tax	-60	-59	-302	-248
Net profit	243	180	990	729
Net profit attributable to:
The parent company's shareholders	250	179	979	722
Non-controlling interests	-7	1	11	6
Net profit per share before dilution, sek	0.66	0.47	2.58	1.90
Net profit per share after full dilution, sek	0.65	0.47	2.56	1.89

The Group's summarised report on other comprehensive
income, sek m	Q4-21	Q4-20	FY 21	FY 20
Net profit	243	180	990	729
OTHER COMPREHENSIVE INCOME
Items which will not be reversed in the profit and loss account	18	-14	31	-17
Income tax relating to components in above item	-5	1	-5	3
Items which can later be reversed in the profit and loss account	92	-140	220	-372
Income tax relating to components in above item	-5	-9	-3	3
Total comprehensive income for the period	343	18	1 233	345
Attributable to:
The parent company's shareholders	347	20	1 218	348
Non-controlling interests	-4	-2	15	-3

Summarised balance sheet, sek m	31 Dec 2021	31 Dec 2020
ASSETS
Fixed assets:
Intangible fixed assets	3 470	2 103
Tangible fixed assets	703	544
Right of use assets	1 442	1 184
Deferred tax asset	224	180
Other fixed assets	156	144
Total fixed assets	5 995	4 156
Current assets:
Inventories	5 057	3 389
Trade debtors	2 660	2 069
Other receivables	584	633
Liquid funds	1 004	1 154
Total current assets	9 305	7 245
Total assets	15 300	11 401
EQUITY AND LIABILITIES
Equity	5 266	4 489
Total equity	5 266	4 489
Long term liabilities	4 982	3 755
Deferred tax liability	168	105
Total long term liabilities	5 150	3 860
Current liabilities:
Trade creditors	2 130	1 640
Other liabilities	2 755	1 412
Total current liabilities	4 885	3 052
Total equity and liabilities	15 300	11 401
Of which interest-bearing liabilities	5 589	4 097
Net debt	4 585	2 944
Authorised credit limit	4 912	4 259
Of which remains to be utilised	1 020	1 516

Key figures	31 Dec 2021	31 Dec 2020
Equity ratio, %	34.4	39.4
Equity per share before dilution, sek	14	12
Equity per share after full dilution, sek	15	12
Return on equity after tax, %	20.3	16.5
Return on capital employed, %	13.8	12.3
Return on capital employed in operations, %	15.4	13.9
Debt ratio	0.9	0.7
Interest coverage ratio	16.4	15.6
Net debt/EBITDA	2.5	2.0
Number of outstanding shares	380 468 980	379 610 130
Holding of own shares1	1 835 090	2 693 940
Total number of shares	382 304 070	382 304 070
Average number of outstanding shares	380 254 268	379 610 130

1) Holdings of own shares includes the delivery of shares to participants in the options programme 2021/24. The options programme falls due in June 2024.

Summarised consolidated cash flow analysis, sek m	FY 2021	FY 2020
Operating profit	1 361	1 036
Non-cash generated items	567	434
Paid interest	-84	-67
Paid income tax	-290	-288
Profit on sale of tangible fixed assets	-4	-2
Cash flow from current operations before changes in working capital	1 550	1 112
Changes in working capital	-1 353	218
Cash flow from investment operations	-776	-352
Cash flow from financial operations	1 105	-29
Amortisation of leasing liabilities	-336	-310
Dividend paid	-380	-221
Change in cash and bank	-191	417
Exchange rate difference in liquid funds	41	-59
Cash and bank on 1 January	1 154	795
Cash and bank at the period end	1 004	1 154

Equity, sek m	31 Dec 2021	31 Dec 2020
Opening balance	4 489	4 369
Total comprehensive income for the period	1 233	344
Dividend	-380	-221
Repurchase of options LTIP 2018-2021	-144	–
Sale of own shares in connection with maturity of option programme LTIP 2018-2021	45	–
Option premium obtained with the issue of option programme LTIP 2021-2024	21	–
Non-controlling interest arising on business combinations	11	–
Dividend to shareholders with no controlling influence	-10	-4
Closing balance	5 266	4 489

Reporting for segments Operating segments

The group's operations are divided into operating segments based on how the company's executive decision-makers, i.e. the CEO, follow the business. The group has the following segments: Nordic countries, Central Europe, Southern Europe, Eastern Europe, Africa and Asia Pacific. Segment reporting for the regions includes the income statement as far as operating profit and working capital. Internal sales in each segment are eliminated in

net sales, internal sales between segments are eliminated at the total level. Net sales are distributed by product area, i.e. Commercial and Industrial Refrigeration, HVAC and OEM. Working capital consists of goods in stock, accounts receivable and trade accounts payable and is an average based on monthly values for each period.

Q4	Nordic		Central		Southern		Eastern		Africa		Asia		Group
sek m			Europe		Europe		Europa				Pacific
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Net sales by ope
ration	477	400	845	703	1 459	1 084	233	108	318	321	1 017	857	4 349	3 474
- of which
Commercial and
industrial
refrigeration	237	210	529	433	501	433	87	77	203	229	354	321	1 911	1 702
- of which HVAC	176	153	291	241	826	530	134	26	62	59	456	378	1 944	1 385
- of which OEM	63	38	26	30	133	122	12	6	52	34	208	158	494	387
Internal sales
between
operations													-77	-66
Net sales													4 271	3 408
Operating profit by
operation	67	63	63	48	87	50	21	9	34	38	103	74	376	283
Group-wide expenses													-51	-27
Net profit													326	256
Net financial													-22	-16
Tax													-60	-59
Net profit													243	180
Working capital, aver
age for the period	506	428	1 068	859	1 934	1 319	384	165	435	381	1 246	842	5 572	3 993
Group eliminations													-10	-1
Total average
working capital													5 563	3 992

12 months	Nordic		Central		Southern		Eastern		Africa		Asia		Group
sek m			Europe		Europe		Europa				Pacific
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Net sales by ope
ration	1 813	1 693	3 860	3 375	6 008	4 941	1 087	462	1 106	1 017	3 387	2 825	17 261	14 313
- of which
Commercial and
industrial
refrigeration	945	974	2 222	1 929	2 046	1 795	377	322	736	715	1 168	1 076	7 494	6 811
- of which HVAC	671	556	1 535	1 314	3 391	2 646	684	120	196	189	1 516	1 175	7 991	6 001
- of which OEM	197	163	103	133	572	500	27	20	174	113	703	574	1 776	1 502
Internal sales
between
operations													-357	-251
Net sales													16 905	14 062
Operating profit by
operation	239	219	302	255	467	350	133	40	94	77	256	184	1 492	1 126
Group-wide expenses
													-131	-90
Net profit													1 361	1 036
Net financial													-69	-59
Tax													-302	-248
Net profit													990	729
Working capital, aver
age for the period	472	498	950	928	1 622	1 451	369	177	415	418	1 019	862	4 847	4 335
Group eliminations													-3	-3
Total average
working capital													4 844	4 332

Company acquisitions

For each acquisition, the company performs a materiality assessment based on sales, product area and market. It is our assessment that an acquisition is material in cases where the sales of the acquired company exceed 5% of total sales. During the first half, four acquisitions were added to the group's financial statements, each of which has been deemed to be immaterial. Information about the acquisitions is provided below.

2021

Sinclair

The Czech Sinclair Global Group has been part of the Beijer Ref group since 1 January 2021. Sinclair is 85% owned with an option to acquire the remaining shares; call and put options have been issued starting in April

1. Sinclair is headquartered in Brno in the Czech Republic with sales offices in Slovakia, Hungary, Austria and Croatia. The company has approximately 110 employees with annual sales of just under SEK 500 million.

Complete Air Supply

At the end of January 100% of the shares of Complete Air Supply (CAS) in Australia were acquired. This company is active in HVAC and has a range that complements our existing companies in Australia. CAS has annual sales of SEK 130 million, with 40 employees in 2 branches. This company is included in the company's accounts with effect from 1 February 2021.

Coolair

Beijer Ref acquired 60% of the shares in Coolair Germany at the end of February. A call and put option has been issued to acquire the remaining shares within the coming years. Coolair is included in the group's accounts from 1 March. Coolair's annual sales amount to approximately SEK 100 million and it has about 25 employees.

IRC

At the end of the second quarter, the assets of the Australian company Industrial Refrigeration Components (IRC) were acquired. IRC has been integrated into our existing company, Beijer Ref Australia. Annual sales amount to approximately SEK 20 million with two employees.

Fenagy

In July, Beijer Ref increased its holding in the Danish environmentally friendly refrigeration technology company Fenagy A/S. With an investment totalling SEK 38 million, Beijer Ref is the majority owner with just over 50% and Fenagy is included in the group's accounts as of 1 July. Fenagy A/S is a newly-formed company and manufactures industrial heat pumps and refrigeration systems based on the environmentally friendly refrigerant CO2.

Froid et Clim Distribution

At the end of July, 100% of Froid et Clim Distribution (FCD) was acquired and this has since been included in the group's accounts. FCD is an HVACR distribution company with operations in New Caledonia. The company has approximately SEK 25 million in annual sales and 5 employees.

Armcor

100% of the Australian climate and ventilation company Armcor was acquired as per 1 September. The company has annual sales of SEK 115 million and 37 employees.

Inventor

The transaction for Inventor A.G S.A was completed in the last quarter of the year. Beijer has acquired 80% of the shares in the air conditioning company Inventor, with an option to acquire the remaining 20% within a few years. Inventor, which is headquartered in Athens (Greece), with a second sales office in Bucharest (Romania), will continue to operate under its own brand. Inventor's annual sales amount to just over SEK 600 million and the company has approximately 80 employees.

Airstream

Airstream in Australia was acquired in November and has since been part of the group. Airstream is an important producer and distributor of ducts and associated air conditioning fittings. Annual sales amount to approximately SEK 40 million with 14 employees.

Clima Solutions

In December, the assets of Clima Solutions, which operates in New Zealand, were acquired. Clima is a distributor that provides refrigeration units (and related equipment) and industrial applications to the HVAC market. Annual sales amount to approximately SEK 35 million.

Patton Albury

In December, the remaining shares (40%) in Patton Albury, Australia were also acquired. Beijer has owned 60% of Patton Albury since 2015, since when the company has been consolidated into the group.

After the end of the quarter

At the beginning of January, Beijer Ref acquired 80% of the shares in Deltron, with an option to acquire the remaining shares. The company has sales of approximately SEK 400 million with good profitability. Its head office is located in Split (Croatia). Deltron's main business consists of air conditioning equipment for commercial and private use. The acquisition also includes a company with operations in Bosnia and Herzegovina.

Accounting of acquisitions

Identified customer lists are written off over 10 years, while brands are judged to have an indefinite lifespan and are not written off. During 2021, three acquisitions were made with an option to acquire the remaining shares within a few years (2023-2024). The options have been valued at the likely outcome and entered as non-current liability; this liability amounts to SEK 406 million. Acquisitions that include written put option where the ownership will amount to 100% are consolidated to 100% at the time of acquisition.

Acquisition costs in 2021 amounted to SEK 6 million and are included in other costs. The acquisition calculations for Sinclair, Complete Air Supply and Coolair have been completed during the quarter; other acquisition calculations are preliminary.

Acquisitions of companies 2021, sek m	FY 2021	FY 2020
Fair value in the Group:
Goodwill	979	103
Customer list	57	18
Brands	207	–
Tangible fixed assets	64	15
Deferred tax asset	14	8
Inventories	366	84
Other fixed assets	296	72
Liquid funds	293	31
Deferred tax liability	-15	-14
Provisions	-33	–
Other current liabilities	-656	-105
Total identifiable net assets	1 573	211
Non-controlling interest	-14	–
Effect on the cash flow
Consideration	-1 559	-211
Non paid purchase price	688	–
Liquid funds	293	31
Total	-578	-181

Effect of completed acquisitions, 2021 Net sales
Regions, sek m	Q4 2021	FY 2021
Nordic	17	31
Central Europe	16	85
Southern Europe	209	209
Eastern Europe	96	508
Asia Pacific	100	264
Effect on group	437	1 097
Acquisitions completed 2020	0	55
Acquisitions completed 2021	437	1 042
Effect on group	437	1 097

Parent company profit and loss account in summary, sek mkr		FY 2020
Operating income	83	54
Operating expenses	-100	-79
Depreciation	-3	-3
Operating profit	-20	-28
Net financial income/expense	18	10
Result of participations in Group companies	588	21
Profit before appropriations	586	3
Appropriations	52	53
Profit before tax	638	55
Tax	-11	-7
Net profit	627	48

Parent company balance sheet in summary, sek m		FY 2020
ASSETS
Intangible fixed assets	6	6
Tangible fixed assets	5	5
Financial fixed assets	5 694	3 891
Current assets	1 024	763
Total assets	6 729	4 665
EQUITY AND LIABILITIES
Shareholders' equity	1 959	1 789
Long-term liabilities	3 669	2 682
Current liabilities	1 101	194
Total equity and liabilities	6 729	4 665

Financial definitions

∆%	Change in percentage.	Net debt / EBITDA	Net debt in relation to R12 EBITDA.
Capital employed	Balance sheet total with a deduction for non-interest-bearing liabilities and deferred tax liability.	Operating capital	Capital employed minus liquid funds, financial assets and other interest-bea ring assets.
Debt/equity ratio	Net debt in relation to equity. The objec tive is to show borrowing in relation to book value of equity.	Operating margin	Operating profit in relation to net sales.
EBITA	Earnings before interest, taxes and amortisation of intangible fixed assets.	Organic change	Comparative figures year over year adju sted for translation effects on consolida tion and changes in the structure.
	The objective of reporting EBITA is that the Group regards it as a relevant mea sure for an investor who wants to under	Profit per share before / after dilution	Net profit in relation to average number of shares before/after dilution.
	stand the generation of earnings before investments intangible fixed assets.	R12	Rolling twelve is the latest 12 months.
EBITDA	Earnings before interest, taxes, depreci ation and amortisation of tangible and intangible fixed assets.	Return on capital employed	Profit before tax plus financial expenses (for each period) in relation to average capital employed.
Equity per share before / after dilution	Equity before / after dilution in relation to average number of outstanding shares	Return on equity	Earnings after tax (for each period) as a percentage of average equity. The objective of return on equity and other
Equity ratio	Equity at the end of the period in relation to balance sheet total.		return measures is to put the earnings in relation to important balance sheet items.
Interest-bearing liabilities	Interest-bearing liabilities include inte rest-bearing provisions.	Return on operating capital	Operating profit (for each period) as a percentage of average operating capital.
Interest coverage ratio	Earnings before tax plus financial expen ses in relation to financial expenses. The objective of this measure is to show the proportion of earnings allocated to paying interest expenses and other financial expenses.
Net debt	Interest-bearing liabilities less liquid funds including current investments. We are of the opinion that the net debt is useful for the users of the financial re port as a complement for assessing the possibility for a dividend, for carrying out strategic investments and for assessing the Group's possibilities for living up to financial commitments. Written put options are not included.

For more details including calculations, see www.beijerref.com/alternative-performance-measures/

Trade terms

ARW	Air Condition & Refrigeration Wholesale.
Chiller	Liquid refrigeration unit.
CO2 equivalent	A measurement of greenhouse gas emissions and how much car bon dioxide is needed to produce the same effect on the climate.
F-gas	Synthetic gases containing fluori ne, such as HCFCs and HFCs.
GWP	Global Warming Potential
HCFC	HydroChloroFluoroCarbons, which affects the ozone layer and contri bute to global warming.
HFC	HydroFluoroCarbons, Fluorised greenhouse gases which contri bute to global warming.
HFO	HydroFluoroOlefins, synthetic environmentally friendly refrigerants.
HORECA	Hotels, Restaurants, Catering
HVAC	Heating, Ventilation, Air Conditioning.
OEM	Original Equipment Manufacturer.
Transcritical	Heat transfer with gas cooler.

Geographic areas

Africa	Botswana, Ghana, Mozambique, Namibia, South Africa, Tanzania, Zambia
Asia Pacific	Australia, China, India, Malaysia, New Zealand, Singapore, Thailand
Central Europe	Belgium, Ireland, The Netherlands, Switzerland, Germany, UK
Eastern Europe	Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia
Nordic	Denmark, Finland, Norway, Sweden
Southern Europe	France, Italy, Portugal, Spain, Greece

Other

• CSR Corporate Social Responsibility.
• KPI Key Performance Indicator.
• PIM Product Information Management, centralised management of product information that is needed to market and sell the products through one or more distribution channels.

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 will be published on www.beijerref.com 17 March 2022
• • Annual General Meeting will be held on 7 April 2022
• • Interim report for the first quarter will be published on 21 April 2022
• • Interim report for the second quarter will be published on 15 July 2022
• • Interim report for the third quarter will be published on 20 October 2022
• • Interim report for the fourth quarter will be published on 26 January 2023

Stortorget 8, 211 34 Malmö Telefon 040-35 89 00 Organisationsnummer 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