Beijer Ref — Earnings Release 2024

Jan 31, 2025

Beijer Ref Q4 2024

English version

Beijer Ref Q4 2024

Fourth quarter

• Net sales increased by 15 per cent and amounted to SEK 8,808 million (7,627). Organic sales increased by 6 per cent in the quarter compared with the corresponding period last year. Acquisition effects amounted to 8 per cent and currency effects amounted to 1 per cent.
• EBITA, excluding items affecting comparability, amounted to SEK 810 million (721), which is an increase of 12 per cent compared with the corresponding period last year. The EBITA margin, excluding items affecting comparability, amounted to 9.2 per cent (9.5). The EBITA margin was negatively affected by foreign exchange effects and the dilution effect of recently acquired companies in North America.
• Operating cash flow was strong and amounted to SEK 1,298 million (1,810).
• Profit per share after dilution, excluding items affecting comparability, amounted to SEK 0.89 (0.76), an increase of 17 per cent. Profit per share after dilution amounted to SEK 0.89 (1.50).
• After the end of the quarter, the transaction of the leading Hungarian HVAC distributor Cool4U was completed, and the company will be consolidated as of January 3, 2025.
• The Board of Directors proposes a dividend of SEK 1.40 per share (1.30), corresponding to 32 per cent (31) of net profit for the year, excluding items affecting comparability. This corresponds to an increase in the dividend of 8 per cent.

Key figures1 , SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
Net sales	8,808	7,627	15.5	35,662	32,150	10.9
Organic sales, %	6.3	-4.1		1.9	1.4
EBITA excluding items affecting comparability	810	721	12.3	3,776	3,398	11.1
EBITA margin excluding items affecting comparability, %	9.2	9.5		10.6	10.6
Items affecting comparability	-	-60		-	-60
EBITA	810	661	22.5	3,776	3,338	13.1
Operating profit (EBIT)	756	611	23.8	3,571	3,159	13.0
Net profit excluding items affecting comparability	457	393	16.3	2,259	2,136	5.8
Net profit	457	768	-40.4	2,259	2,400	-5.9
Profit per share after dilution, SEK2
Excluding items affecting comparability	0.89	0.76	17.2	4.39	4.33	1.4
Including items affecting comparability	0.89	1.50	-40.6	4.39	4.88	-9.9
Operating cash flow	1,298	1,810	-	3,464	2,490	-
Return on operating capital, excluding items affecting comparability, %	-	-		10.8	10.7	-

The totals in tables and calculations do not always add upp due to rounding differences. The aim is for each sub-row to conform to its source of origin and therefore rounding differences may occour.

1For impact of items affecting comparability, see the table on page 15.

2The average number of outstanding shares has increased due to the rights issue completed in March 2023. For more information, see page 15.

CEO comments

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.

We ended the year with a good fourth quarter and reported strong organic growth of 6 per cent. Total sales amounted to SEK 8,808 million, which is an increase of 15 per cent. EBITA, excluding items affecting comparability, amounted to SEK 810 million, corresponding to an increase of 12 per cent. The EBITA margin, excluding items affecting comparability, amounted to 9.2 per cent (9.5). The EBITA margin was negatively affected during the quarter by foreign exchange effects, attributable to the strengthening of the US currency against the euro, and the dilution effect of recently acquired companies in North America. The underlying EBITA margin was in line with the same period last year.

Operating cash flow in the quarter remained strong, despite the extra inventory build-up in the US, related to the ongoing transition to more environmentally friendly refrigerants, and amounted to SEK 1,298 million. The strong cash flow supports our continued investments in strategic growth areas moving forward.

Organic growth for all product segments was good during the period: HVAC and OEM increased by 8 and 8 per cent respectively, while commercial and industrial refrigeration increased by 4 per cent.

During the quarter, we have seen a continued positive trend towards sustainable and energy-efficient solutions. This trend is reflected in all operating segments through innovative product launches, increased interest in natural and energy-efficient solutions and close co-operation with partners to support the transition to more eco-friendly products.

In October, our OEM companies, SCM Frigo and Fenagy, introduced a ground-breaking heat pump with a new CO2 solution (R744), specifically developed for the European and US markets. This innovation targets a broad customer base, including supermarkets, food production, offices and apartment blocks. In addition, Fenagy expanded its production with two new buildings, which will increase the total production area to 5 000 m².

During the period, digital sales continued to increase, and we reported growth of 18 per cent, compared to the same period last year. We continue to drive our digital transformation with a focus on developing and supporting initiatives in data analytics and AI.

After the end of the quarter, the transaction of the leading Hungarian HVAC distributor Cool4U was completed. The work of integrating the company into the Group has now begun and the operations will be included into the Beijer Ref Group's accounts as of 3 January 2025.

I would like to extend my sincere thanks to Beijer Ref's colleagues and partners. We have made significant progress, both operationally and financially, and demonstrated that our commitment and co-operation are producing good results. I would also like to take this opportunity to welcome our new companies to the Group. With new initiatives and investments, we have laid the foundation for continued strong growth and success in the coming years.

Christopher Norbye CEO

"With new initiatives and investments, we have laid the foundation for continued strong growth and success in the coming years."

Fourth quarter 2024

15% Sales increase	6% Organic growth	12%* EBITA increase				17%* Change result/share
Financial overview1 , SEK M		Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
Net sales		8,808	7,627	15.5	35,662	32,150	10.9
Organic change, %		6.3	-4.1		1.9	1.4
Change through acquisition2 , %		8.2	32.8		9.5	35.2
Currency effect, %		0.9	2.4		-0.4	5.4
Change total, %		15.5	31.1		10.9	42.0
EBITA excluding items affecting comparability		810	721	12.3	3,776	3,398	11.1
EBITA margin, excluding items affecting comparability, %		9.2	9.5		10.6	10.6
Items affecting comparability		-	-60		-	-60
EBITA		810	661	22.5	3,776	3,338	13.1
Operating profit (EBIT) excluding items affecting comparability		756	671	12.7	3,571	3,219	10.9
Operating profit (EBIT)		756	611	23.8	3,571	3,159	13.0
Net financial income/expense, excluding items affecting comparability		-130	-117		-563	-438
Net financial income/expense		-130	-117		-563	-576
Tax, excluding items affecting comparability		-169	-160		-749	-645
Tax		-169	274		-749	-183
Net profit excluding items affecting comparability		457	393	16.3	2,259	2,136	5.8
Net profit		457	768	-40.4	2,259	2,400	-5.9
Profit per share after dilution, SEK3
Excluding items affecting comparability		0.89	0.76	17.2	4.39	4.33	1.4
Including items affecting comparability		0.89	1.50	-40.6	4.39	4.88	-9.9

Net sales

Net sales increased by 15.5 per cent and amounted to SEK 8,808 million (7,627). Organic sales increased by 6.3 per cent in the quarter, compared with the corresponding period last year. Acquisition effects amounted to 8.2 per cent and currency effects amounted to 0.9 per cent.

The EMEA and APAC operating segments reported sales growth of 8 per cent and 17 per cent respectively in the quarter. The North America operating segment reported sales growth of 36 per cent in the quarter, mainly driven by acquisitions.

All product segments reported positive organic growth in the quarter. The HVAC and OEM product segments reported organic growth of 8 and 8 per cent respectively, while commercial and industrial refrigeration reported organic growth of 4 per cent.

Result for the quarter

The Group's EBITA, excluding items affecting comparability, amounted to SEK 810 million (721) in the fourth quarter, which is an increase of 12 per cent. Currency effects4 are included in EBITA in the amount of SEK 7 million (11). The EBITA margin, excluding items affecting comparability, amounted to 9.2 per cent (9.5). The EBITA margin was negatively affected during the quarter by foreign exchange effects4, attributable to the strengthening of the US currency against the euro, and the dilution effect of recently acquired companies in North America. The underlying EBITA margin was in line with previous year.

Net financial items amounted to SEK -130 million (-117). The tax rate for the quarter, excluding items affecting comparability, amounted to 27 per cent (29).

Profit for the period, excluding items affecting comparability, amounted to SEK 457 million (393) and profit for the period amounted to SEK 457 million (768). Profit per share before and after dilution, excluding items affecting comparability, amounted to SEK 0.89 (0.76), an increase of 17 per cent. Profit per share before and after dilution amounted to SEK 0.89 (1.50).

* Excluding items affecting comparability

1For the impact of items affecting comparability, see the table on page 15.

2Acquisition effect is calculated 12 months after the date of takeover. For details on Beijer Ref's acquisitions, see the acquisition table on page 19

3Average number of outstanding shares has increased due to the rights issue completed in March 2023. For more information, see page 15.

4Currency effects refer only to exchange rate changes arising from the translation of foreign subsidiaries, while foreign exchange effects refer to exchange rate changes on operating receivables and liabilities.

Operating cash flow and net debt, SEK M	Q4 24	Q4 23	12M 24	12M 23
Operating profit, excl. items affecting comparability (EBIT)	756	671	3,571	3,219
Depreciation/write-downs on tangible assets	205	180	785	693
Amortisation/write-downs on intangible assets	53	50	205	179
EBITDA excl. items affecting comparability	1,015	901	4,560	4,090
Changes in working capital	520	1,159	-127	-765
Investments in tangible fixed assets	-100	-119	-428	-346
Payments related to amortisation of lease liabilities	-143	-130	-543	-490
Non-cash generated items	6	-1	3	0
Operating cash flow	1,298	1,810	3,464	2,490
EBITDA impact of leasing (IFRS 16)			-653	-579
EBITDA excl. leasing (IFRS 16) and items affecting comparability			3,908	3,511
Net debt			9,741	8,400
Of which:
Pension debt			131	107
Leasing liabilities, according to IFRS 16			2,466	2,371
Net debt excl. pension and leasing liabilities			7,144	5,922
Authorised credit limit			16,294	13,183
Of which remains to be utilised			6,407	4,668
Net debt/EBITDA excl. items affecting comparability			2.14	2.05
Net debt/EBITDA excl. leasing liabilities, pension liability and items affecting comparability			1.83	1.69

Cash flow and net debt

Operating cash flow during the quarter was strong and amounted to SEK 1,298 million (1,810), despite the extra inventory build-up in the US related to the ongoing transition to more environmentally friendly refrigerants with lower GWP values.

Net debt at the end of the quarter amounted to SEK 9,741 million (8,400). The increase since last year is mainly attributable to acquisition activities. Excluding lease liabilities (IFRS 16) and pension, net debt amounted to SEK 7,144 million (5,922). The net debt to EBITDA ratio, excluding items affecting comparability, amounted to 2.14 (2.05). Net debt, excluding lease liabilities (IFRS 16) and pension, in relation to EBITDA, excluding leases (IFRS 16) and items affecting comparability, amounted to 1.83 (1.69).

At the end of the period, the company had credit facilities amounting to SEK 16,294 million (13,183), of which unutilised credit facilities amounted to SEK 6,407 million (4,668).

January - December 2024

Net sales during the year amounted to SEK 35,662 million (32,150), which is an increase of 10.9 per cent compared with the corresponding period last year. Organic sales increased by 1.9 per cent, acquisition effects amounted to 9.5 per cent and currency effects amounted to -0.4 per cent.

The Group's EBITA, excluding items affecting comparability, amounted to SEK 3,776 million (3,398) during the year, which is an increase of 11 per cent. Currency effects of SEK -16 million (146) are included in EBITA. The EBITA margin, excluding items affecting comparability, amounted to 10.6 per cent (10.6).

Net financial items, excluding items affecting comparability, amounted to SEK -563 million (-438), affected by higher debt and interest rates. The tax rate, excluding items affecting comparability, amounted to 25 per cent (23).

Profit for the period, excluding items affecting comparability, amounted to SEK 2,259 million (2,136) and profit for the period amounted to SEK 2,259 million (2,400). Profit per share before and after dilution, excluding items affecting comparability, amounted to SEK 4.39 (4.33). Profit per share before and after dilution amounted to SEK 4.39 (4.88).

The average number of outstanding shares has increased to 506,858,226 (486,922,447), impacted by the rights issue completed in March 2023. Excluding items affecting comparability and adjusted to reflect the same average number of shares outstanding for both periods, the change in profit per share before and after dilution amounted to 6 per cent.

Operating cash flow amounted to SEK 3,464 million (2,490), driven by lower tied-up working capital.

Operating segment EMEA

SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
Net sales	4,934	4,563	8.1	20,819	20,254	2.8
Of which currency effect, %	1.1	3.2		-0.1	6.4
EBITA	474	472	0.4	2,299	2,294	0.2
EBITA margin, %	9.6	10.3		11.0	11.3

Jonas Steen COO EMEA

During the quarter, the EMEA operating segment reported a sales increase of 8 per cent. The largest increase was in the HVAC product segment, which reported growth of 11 per cent, driven mainly by strong sales in Eastern Europe and Africa, good sales of our own brands and acquisitions.

EBITA in the quarter amounted to SEK 474 million (472) with an EBITA margin of 9.6 per cent (10.3). The margin was negatively affected during the period by the significant strengthening of the US dollar against the euro during the quarter and slight price pressure on heat pumps, particularly in Eastern Europe. We expect the price pressure on heat pumps in Eastern Europe to be temporary and to have a limited negative impact in 2025.

The OEM segment continued to show stable growth, with a reported sales increase of 6 per cent. The increase was mainly driven by proprietary compressor units and heat pumps based on natural refrigerants. The commercial and industrial refrigeration product segment reported a sales increase of 5 per cent during the period. Furthermore, several new products based on environmentally friendly technology were launched in the heating range during the period.

The integration of GIA Group, which was consolidated in the third quarter, has progressed according to plan and we look forward to unlocking significant synergies that will strengthen our long-term growth.

After the end of the quarter, the transaction of the leading Hungarian HVAC distributor Cool4U was completed, and the company will be consolidated as of January 3, 2025.

External net sales per product segment

Operating segment APAC

SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
Net sales	1,891	1,613	17.2	6,551	5,633	16.3
Of which currency effect, %	0.7	-0.6		-1.4	1.2
EBITA	204	159	28.9	642	489	31.4
EBITA margin, %	10.8	9.8		9.8	8.7

Wayne Ferguson Interim COO APAC

During the quarter, the APAC operating segment reported a sales increase of 17 per cent, mainly driven by increased market activity in our seasonally stronger regions in the southern hemisphere, especially in Australia.

EBITA increased by 29 per cent to SEK 204 million (159), with an EBITA margin of 10.8 per cent (9.8). The improved EBITA margin can mainly be attributed to a broader focus on our own brands and greater demand for complete HVAC solutions.

During the period, we secured our first cold storage project in Korea based on environmentally friendly CO2 technology. The project has the potential to become a reference facility for natural solutions in the Korean market, with installations planned to start in the second half of 2025.

Overall, the APAC operating segment saw a positive trend in demand for commercial refrigeration and HVAC. In Asia, the market for large projects remains weak, but across the region we noted a positive outlook for energy efficient and natural solutions in the fourth quarter.

In the southern hemisphere, our strong summer season continues, and we are well positioned to meet customer demand with a broad portfolio in air conditioning.

Operating segment North America

SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
Net sales	2,001	1,468	36.3	8,363	6,336	32.0
Of which currency effect, %	0.8			-0.5
EBITA	168	142	18.3	1,006	799	25.8
EBITA margin, %	8.4	9.7		12.0	12.6

Alex Averitt Managing Director North America

During the quarter, the North America operating segment reported a sales increase of 36 per cent, mainly driven by acquisitions, good demand and increased activity in the commercial and project-based sectors.

EBITA in the quarter amounted to SEK 168 million (142) with an EBITA margin of 8.4 per cent (9.7). The lower margin was primarily driven by the dilution effect of recently acquired companies and lower year end volume-related supplier bonuses.

The transition to more environmentally friendly refrigerants with lower GWP is progressing. To meet growing demand, we will continue to work with leading US players in 2025 to develop greener products.

We continue to focus on scaling our e-commerce platform and optimising the digital customer journey, while evaluating opportunities to open new branches in markets close to our existing operations.

There is a positive trend for high-efficiency HVAC systems, and we are well positioned to meet the demand; both through organic growth and our strong acquisition pipeline.

Significant events during the quarter

There were no significant events during the quarter.

Significant events after the end of the period

After the end of the quarter, the transaction of the leading Hungarian HVAC distributor Cool4U was completed. The company will be consolidated as of January 3, 2025.

Annual General Meeting and dividend

The Board of Directors proposes a dividend of SEK 1.40 per share (1.30), corresponding to 32 per cent (31) of the profit for the year, excluding items affecting comparability. This is an increase in the dividend of 8 per cent. The Board proposes that the dividend be paid in two installments to meet the Group's seasonal variations. The Board's final proposal on the dividend per share will be presented at the latest in connection with the notice of the Annual General Meeting.

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 organization. Beijer Ref's sustainability strategy is based on the UN's global goals in Agenda 2030 and includes; economy, society and environment.

Beijer Ref makes the assessment that it is in the environmental area that the Group can make the biggest difference. To further strengthen the work of developing environmentally friendly refrigeration technology, the Group measures the proportion of Beijer Ref's OEM sales that are environmentally friendly. The goal is for environmentally friendly OEM sales to account for at least 50 per cent of total OEM sales by 2025.

Risk description

The Beijer Ref Group's operations are affected by several external factors, the effects of which on the Group's operating profit can be controlled to varying degrees. The Group's operations are dependent on the general economic development in the regions where the business is present, which determines the demand for Beijer Ref's products and services.

Acquisitions are normally associated with risks, such as the loss of key personnel. Other operational risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, personal dependency and others, are analyzed continuously. If necessary, measures are taken to reduce the Group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as currency risk, interest rate risk and liquidity risk. The parent company's risk profile 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 and valuation methods as described in the latest annual report. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and their associated notes but also in other parts of the interim report.

Other related parties

Transactions with related parties

There have been no significant changes in the Group's or the Parent Company's transactions or relationships with related parties compared to those described in note 30 of the 2023 Annual Report.

Significant judgments and assumptions for accounting purposes

Management and the Board of Directors make estimates and assumptions about the future. These estimates and assumptions affect the reported amounts of assets and liabilities, income and expenses, and other disclosures. These assessments are based on historical experience and the various assumptions that are considered reasonable under the circumstances. The areas identified as significant have not changed since the publication of the 2023 Annual Report and are described in more detail in Note 4.

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-andpresentations/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.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, at 08.00 CET on 31 January 2025.

Financial overview

OEM 8% (9)

Commercial and industrial refrigeration 32% (34)

1Excluding items affecting comparability 2Exklusive leasing liabilities, pension liability and items affecting comparability

Summarised profit and loss account, SEK M	Q4 24	Q4 23	12M 24	12M 23
Net sales	8,808	7,627	35,662	32,150
Other operating income	35	27	135	117
Operating expenses	-7,829	-6,814	-31,236	-28,236
Depreciation and write-down of intangible and tangible fixed assets	-258	-230	-989	-872
Operating profit (EBIT)	756	611	3,571	3,159
Net financial income/expense	-130	-117	-563	-576
Profit before tax	626	494	3,008	2,583
Tax	-169	274	-749	-183
Net profit	457	768	2,259	2,400
Net profit attributable to:
The parent company's shareholders	451	759	2,227	2,375
Non-controlling interests	6	9	32	25
Net profit per share before diluation, SEK1	0.89	1.50	4.39	4.88
Net profit per share after diluation, SEK1	0.89	1.50	4.39	4.88

1The average number of shares outstanding has increased due to the rights issue finalised in March 2023. For more information, see page 15.

The group's summarised report on other comprehensive income, SEK M	Q4 24	Q4 23	12M 24	12M 23
Net profit	457	768	2,259	2,400
Other comprehensive income	1,236	-1,370	1,449	-755
Items which will not be reversed in the profit and loss account:
Revaluation of the net pension commitment	-14	3	-14	3
Changes in the fair value of equity investments through other comprehensive income	0	-1	0	-2
Income tax relating to components in above item	3	-1	3	-1
Items which can later be reversed in the profit and loss account:
Exchange rate differences	800	-962	1,063	-475
Hedging of net investments	563	-516	498	-353
Income tax relating to components in above item	-116	106	-103	73
Other comprehensive income	1,236	-1,370	1,449	-755
Total comprehensive income for the period	1,694	-602	3,708	1,645
Attributable to:
The parent company's shareholders	1,692	-607	3,698	1,624
Non-controlling interests	2	5	10	21

Summarised balance sheet, SEK M	31 Dec. 24	31 Dec. 23
ASSETS
Intangible fixed assets	20,216	17,439
Tangible fixed assets	2,428	1,687
Right of use assets	2,372	2,308
Deferred tax asset	363	419
Other fixed assets	191	208
Total fixed assets	25,570	22,061
Inventories	11,723	9,961
Trade debtors and other receivables	5,797	5,192
Liquid funds	3,058	1,957
Total current assets	20,577	17,109
Total assets	46,147	39,170
EQUITY AND LIABILITIES
Equity	24,216	21,443
Total equity	24,216	21,443
Long-term liabilities	10,595	9,314
Deferred tax liabilities	545	439
Total long-term liabilities	11,140	9,754
Trade creditors	3,196	2,728
Other liabilities	7,595	5,245
Total current liabilities	10,791	7,973
Total equity and liabilities	46,147	39,170
Of which interest-bearing liabilities	12,799	10,357

Specification for changes to equity, SEK M

	31 Dec. 24			31 Dec. 23
	The parent company's shareholders	Non controlling interest	Total	The parent company's shareholders	Non controlling interest	Total
On 1 January	21,323	120	21,443	6,603	111	6,714
Net profit	2,227	32	2,259	2,375	25	2,400
Other comprehensive income	1,439	10	1,449	-756	1	-755
Total comprehensive income for the year	3,665	43	3,708	1,620	26	1,645
Rights Issue	-	-	-	13,756	-	13,756
Dividend to shareholders	-659	-	-659	-477	-	-477
Option premium obtained, LTIP 2023-2026	-	-	-	7	-	7
Share-related compensation, LTIP 2024-2027	7	-	7	-	-	-
Repurchase options, LTIP 2021-2024	-28	-	-28	-	-	-
Purchase of own shares	-	-	-	-39	-	-39
Sales of own shares, LTIP 2021-2024	14	-	14	-	-	-
Change in fair value of liabilities linked to acquisitions	-256	-	-256	-148	-	-148
Dividends to shareholders' with non-controlling Interest	-	-13	-13	-	-17	-17
Total	-922	-13	-935	13,099	-17	13,083
On 31 December	24,066	150	24,216	21,323	120	21,443

Summarised consolidated cash flow analysis, SEK M	Q4 24	Q4 23	12M 24	12M 23
Current operations
Operating profit	756	611	3,571	3,159
Non-cash generated items included in operating profit	267	83	1,028	635
Operating profit adjusted for non-cash generated items	1,023	694	4,599	3,794
Paid interest	-137	-15	-572	-618
Paid income tax	-350	-185	-819	-658
Cash flow from current operations before changes in working capital	537	495	3,208	2,518
Changes in working capital	520	1,159	-127	-765
Cash flow from current operations	1,056	1,654	3,080	1,753
Cash flow from investment operations	-150	-576	-2,730	-9,235
Cash flow from financial operations1	201	-1,005	665	7,967
Cash flow for the period	1,108	73	1,016	485
Liquid funds at the beginning of the period	1,901	1,950	1,957	1,518
Cash flow for the period	1,108	73	1,016	485
Exchange rate difference, liquid funds	49	-66	85	-46
Liquid funds at the end of the period	3,058	1,957	3,058	1,957

1Financing Operations 2023 has received SEK 13,707 million in a rights issue.

Key figures

Beijer Ref uses a number of alternative performance measures. The group believes that the key figures are useful to users of the financial statements as a complement to the profit and loss account and balance sheet and cash flow statement. Examples of alternative key figures linked to financial position: return on equity and operating capital, net debt, debt to equity ratio and equity/assets ratio. The group also uses the cash flow measurement of operating cash flow to give an indication of the funds that the business generates to be able to carry out strategic investments, make amortisations and provide returns to shareholders. The performance measurements EBITDA, EBITA and EBIT are measurements that Beijer Ref considers relevant for investors who wish to understand the business's profit generation. For further description including calculations and key figures, see the following Alternative performance measures

Key figures1	31 Dec. 24	31 Dec. 23
Equity ratio, %	52.5	54.7
Return on equity (R12), %	9.8	11.2
Return on operating capital, excluding items affecting comparability, (R12), %	10.8	10.7
Return on operating capital, excluding intangible assets and items affecting comparability, (R12), %	23.4	23.3
Net debt/EBITDA excluding leasing liabilities, pension liability and items affecting comparability	1.83	1.69
Average number of employees	6,597	6,024
Number of outstanding shares	506,905,526	506,810,926
Holding of own shares2	2,180,400	2,275,000
Total number of shares	509,085,926	509,085,926
Average number of outstanding shares3	506,858,226	486,922,447

1The table contains alternative key figures.

2Holdings of own shares ensure the delivery of shares to participants in the options programs. The option programes expire in June 2025 and June 2026. 3The average number of outstanding shares has increased due to the rights issue completed in March 2023.

Impact of items affecting comparability, SEK M	Q4 24	Q4 23	12M 24	12M 23
EBITA, excluding items affecting comparability	810	721	3,776	3,398
Items affecting comparability included in operating costs1	-	-60	-	-60
EBITA	810	661	3,776	3,338
Operating profit (EBIT), excluding items affecting comparability	756	671	3,571	3,219
Items affecting comparability included in operating costs1	-	-60	-	-60
Operating profit (EBIT)	756	611	3,571	3,159
Net financial income/expense, excluding items affecting	-130	-117	-563	-438
comparability Items affecting comparability included in net financial
income/expense2	-	-	-	-138
Net financial income/expense	-130	-117	-563	-576
Profit before tax, excluding items affecting comparability	626	554	3,008	2,781
Items affecting comparability included in profit before tax	-	-60	-	-198
Profit before tax	626	494	3,008	2,583
Tax, excluding items affecting comparability	-169	-160	-749	-645
Items affecting comparability included in tax3	-	434	-	463
Tax	-169	274	-749	-183
Net profit, excluding items affecting comparability	457	393	2,259	2,136
Items affecting comparability for the period	-	374	-	265
Net profit	457	768	2,259	2,400

1Items affecting comparability included in the operating costs for 2023 relate to consulting costs for the tax restructuring in the USA and costs related to structural changes in the operational organisation.

2Items affecting comparability included in the net financial items for 2023 relate to costs for the temporary financing relating to the acquisition of Heritage Distribution.

3Items affecting comparability included in tax for 2023 relate to the tax impact of the above-mentioned items affecting comparability and the effect of the tax restructuring carried out in the USA during 2023.

Overview per segment

The group's operations are divided into operating segments based on how the company's executive decision-makers, i.e. the CEO, follow the operations. The group has the following operating segments: EMEA, APAC and North America.

The segment report for the regions contains net sales, EBITA and EBITA per cent. Internal sales within each segment are eliminated in net sales, internal sales between segments are eliminated at the total level.

Reporting per operating segment

Net sales, SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
EMEA	4,934	4,563	8	20,819	20,254	3
APAC	1,891	1,613	17	6,551	5,633	16
North America	2,001	1,468	36	8,363	6,336	32
Eliminations	-18	-17		-71	-74
Group	8,808	7,627	15	35,662	32,150	11

EBITA, SEK M	Q4 24	Q4 23	∆%	12M 24	12M 23	∆%
EMEA	474	472	0	2,299	2,294	0
APAC	204	159	29	642	489	31
North America	168	142	18	1,006	799	26
Other	-37	-52		-171	-184
Group	810	721	12	3,776	3,398	11
Items affecting comparability	0	-60	0	0	-60	0
Group incl. items affecting comparability	810	661	23	3,776	3,338	13

EBITA, %	Q4 24	Q4 23	∆	12M 24	12M 23	∆
EMEA	9.6	10.3	-0.7	11.0	11.3	-0.3
APAC	10.8	9.8	1.0	9.8	8.7	1.1
North America	8.4	9.7	-1.3	12.0	12.6	-0.6
Group	9.2	9.5	-0.3	10.6	10.6	0.0
Group incl. items affecting comparability	9.2	8.7	0.5	10.6	10.4	0.2

Overview per segment

Reporting per operating segment

Net sales, SEK M	Q4 24	Q3 24	Q2 24	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
EMEA	4,934	5,499	5,736	4,650	4,563	5,268	5,520	4,903	4,492
APAC	1,891	1,575	1,519	1,566	1,613	1,314	1,317	1,389	1,350
North America	2,001	2,428	2,447	1,486	1,468	1,924	1,827	1,118	-
Eliminations	-18	-9	-21	-22	-17	-15	-10	-32	-24
Group	8,808	9,493	9,681	7,680	7,627	8,491	8,654	7,378	5,818

EBITA, SEK M	Q4 24	Q3 24	Q2 24	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
EMEA	474	659	718	448	472	635	698	490	480
APAC	204	131	135	171	159	100	89	141	126
North America	168	332	355	150	142	262	274	121	-
Other	-37	-38	-60	-36	-52	-38	-45	-50	-36
Group	810	1,084	1,148	733	721	959	1,016	702	570
Items affecting comparability	-	-	-	-	-60	-	-	-	-245
Group incl. items affecting comparability	810	1,084	1,148	733	661	959	1,016	702	325

EBITA, %	Q4 24	Q3 24	Q2 24	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
EMEA	9.6	12.0	12.5	9.6	10.3	12.0	12.6	10.0	10.7
APAC	10.8	8.3	8.9	10.9	9.8	7.6	6.8	10.1	9.3
Nordamerika	8.4	13.7	14.5	10.1	9.7	13.6	15.0	10.9	-
Group	9.2	11.4	11.9	9.5	9.5	11.3	11.7	9.5	9.8
Group incl. items affecting comparability	9.2	11.4	11.9	9.5	8.7	11.3	11.7	9.5	5.6

Sales per product segment

In the tables below, net sales are distributed by respective product segment, i.e. HVAC, OEM and commercial and industrial refrigeration

Net sales, SEK M			Q4 24	Q4 23	∆%		12M 24	12M 23	∆%
HVAC			5,221	4,338		20	20,719	18,423	12
OEM			736	662		11	2,866	2,526	13
Commercial and industrial refrigeration			2,851	2,627		9	12,078	11,201	8
Group			8,808	7,627		15	35,662	32,150	11
Net sales, SEK M	Q4 24	Q3 24	Q2 24	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22
HVAC	5,221	5,488	5,728	4,282	4,338	4,852	5,122	4,110	3,030
OEM	736	707	748	676	662	608		649 608	599
Commercial and industrial refrigeration	2,851	3,299	3,205	2,722	2,627	3,031	2,883	2,660	2,189
Group	8,808	9,493	9,681	7,680	7,627	8,491	8,654	7,378	5,818

Acquisitions of companies

The company makes a materiality assessment for each acquisition based on turnover, product area and market. Our assessment is that an acquisition is material if the acquired company's sales exceed 5 per cent of the Group's total sales. During the year, five acquisitions were consolidated in the Group's accounts. Information on the acquisitions is provided in the table on page 19.

2024

First quarter

Beijer Ref acquired 60 per cent of the shares in Quality Air Equipment (QAE), with a put/call option to acquire the remaining share. During the first quarter, Beijer Ref also acquired 70 per cent of the shares in Chillaire Solutions, with an option to acquire the remaining share.

Second quarter

Beijer Ref acquired the company Young Supply, a North American distributor within commercial refrigeration and HVAC. Young Supply has annual sales of approximately SEK 1.4 billion. Furthermore, Beijer Ref acquired 60 per cent of the shares in Luyten BV, with a put/call option to acquire the remaining share.

Beijer Ref also signed an agreement to acquire 80 per cent of the shares in Cool4U, with a put/call option to acquire the remaining share. Cool4U is a leading HVAC distributor in Hungary with annual sales of approximately SEK 500 million. The company will be consolidated as of January 3, 2025.

Third quarter

During the third quarter, Beijer Ref acquired 75 per cent of the shares in GIA Group, with a put/call option to acquire the remaining share. GIA Group is an air conditioning company and one of Spain's largest distributors with several strong brands of its own. Sales in the closed financial year 2023 amounted to SEK 1.1 billion with good profitability.

2023

First quarter

Beijer Ref acquired Heritage Distribution and Transport Cooling. Beijer Ref acquired approximately 95 per cent of the shares in Heritage Distribution and holds a put/call option to acquire the remaining share. In addition, Beijer Ref acquired Roobear Ltd and the assets of AFM (Belgium). AFM has been integrated into the company Beijer Ref Belgium.

Second quarter

Beijer Ref acquired 100 per cent of the assets of Shravan Engineering (India) and also entered into a binding agreement to acquire 70 per cent of the shares in Condex (Bulgaria) and holds a put/call option to acquire the remaining share. In addition, Beijer Ref acquired all the shares in CFD (France) and GMC Airconditioning (South Africa).

Third quarter

During the third quarter of last year, Beijer Ref acquired 95 per cent of the shares in Industrifiber (Norway), and holds a put/call option to acquire the remaining share. Furthermore, Beijer Ref acquired 100 per cent of the operations in DS Maref (South Korea) and AMSCO Supply (North America) during the quarter. DS Maref and AMSCO Supply did not have any impact on the Group's income statement in the third quarter of the previous year.

Fourth quarter

During the fourth quarter of the previous year, Beijer Ref acquired 100 per cent of the operations in Turner Engineering (Australia). Beijer Ref also acquired 51 per cent of the shares in Grönt Klima (Norway) and holds a put/call option to acquire the remaining share. Additional acquisitions include 100 per cent of the assets of Webb Supply (USA).

Accounting for acquisitions

Identified customer relationships are amortized over 10-15 years while trademarks are deemed to have an indefinite life and are not amortized. Most of the acquisition goodwill arising is motivated by synergies with the Group's existing businesses. The valuation technique applied to put/call options and contingent considerations discounts the present value of expected future cash flows using a riskadjusted discount rate. Expected cash flows are determined based on likely scenarios for future performance measures, the amounts that will be paid in each outcome and the probability of each outcome. Put/call options and contingent considerations are recognized at valuation level 3.

During 2024, five acquisitions have been completed where the final purchase price will be paid via options within the time span 2027-2033. The options have been valued at the probable outcome and recorded as a long-term liability, the liability totaling SEK 773 million. Acquisitions that include a put/call option where ownership will be 100 per cent are consolidated in full at the time of acquisition.

Acquisition costs for acquisitions completed in 2024 and charged to profit 2024 amount to approximately SEK 22 million (42) and are included in other costs. Acquisition costs and acquisition calculations are preliminary for acquisitions in 2024. Acquisition calculations for the companies acquired in 2023 have now been established. No significant adjustments have been made to the calculations.

Consolidated acquisitions	Consolidated from	Operating segments	Net sales, SEK M	No. of employees
2024
Companies
QAE Group	March	APAC	140	74
Young Supply	April	North America	1,400	200
Luyten BV	May	EMEA	63	3
Chillaire Solutions	July	APAC	120	20
GIA Group	August	EMEA	1,100	100
Acquisitions not yet consolidated	Consolidated from	Operating segments	Net sales, SEK M	No. of employees
Companies
Cool4U	Q1 2025	EMEA	500	58
Consolidated acquisitions	Consolidated from	Operating segments	Net sales, SEK M	No. of employees
2023
Companies
Heritage Distribution	January	North America	6,492	800
Transport Cooling SA (asset deal)	February	EMEA	150	90
Roobear Ltd	February	EMEA	3	1
AFM (asset deal)	March	EMEA	20	4
Shravan Engineering (asset deal)	April	APAC	53	22
CFD	June	EMEA	75	10
GMC Airconditioning	June	EMEA	40	17
Industrifiber	July	EMEA	8	2
Condex	August	EMEA	350	41
DS Maref (asset deal)	September	APAC	375	82
AMSCO Supply (asset deal)	September	North America	500	50
HVAC Depot (asset deal)	October	APAC	20	13
Turner Engineering	November	APAC	200	17
Grönt Klima	December	EMEA	95	5
Webb Supply (asset deal)	December	North America	200	40

Acquisitions of companies, SEK M	12M 24	Heritage Distribution	Other acquisitions	12M 23
Fair value in the Group:
Intangible assets	506	4,435	369	4,805
Tangible and financial fixed assets	604	1,135	226	1,361
Deferred tax asset	26	-	1	1
Inventories	1,007	1,773	663	2,436
Other current assets	362	570	258	827
Liquid funds	106	432	71	504
Deferred tax liability	-151	-494	-18	-512
Provisions	-1	-	-2	-2
Other current liabilities	-434	-1,073	-451	-1,524
Liabilities to credit institutions	-337	-5,619	-104	-5,723
Total identifiable net assets:	1,688	1,160	1,014	2,174
Goodwill	938	6,798	1,017	7,815
Effect on the cash flow:
Consideration	-2,626	-7,958	-2,031	-9,989
Non-paid consideration	848	313	465	778
Paid consideration for previous years' acquisitions	-431	-	-225	-225
Repaid consideration for previous years' acquisitions	0	-	14	14
Liquid funds in acquired companies	106	432	71	504
Total	-2,103	-7,213	-1,706	-8,919

The table shows the total cash flow effect from acquisition activities. The presentation of identifiable net assets refers to acquisitions made during 2024 and 2023 respectively. Other acquisitions include the effects of all acquisitions consolidated in 2023 excluding Heritage Distribution. These companies have been aggregated in the above table as the respective acquisitions are not material individually.

Parent company profit and loss account in summary, SEK M	Q4 24	Q4 23	12M 24	12M 23
Operating income	50	104	140	111
Operating expenses	-49	-36	-195	-203
Depreciation and write-down of intangible and tangible fixed assets	-1	0	-2	-2
Operating profit (EBIT)	1	68	-57	-94
Net financial income/expense	621	-447	801	-238
Result of participations in Group companies	3	-	396	534
Profit before appropriations	625	-379	1,141	202
Appropriations	-15	199	-15	199
Profit before tax	610	-180	1,126	401
Tax	-124	55	-199	74
Net profit	486	-125	927	475

Parent company balance sheet in summary, SEK M	31 Dec. 24	31 Dec. 23
ASSETS
Intangible fixed assets	15	7
Tangible fixed assets	4	4
Financial fixed assets	24,397	21,857
Current assets	2,859	2,669
Total assets	27,274	24,567
EQUITY AND LIABILITIES
Shareholders' equity	16,103	15,842
Long-term liabilities	6,889	6,591
Current liabilities	4,282	2,134
Total equity and liabilities	27,274	24,567

Trade terms

ARW

Air Condition & Refrigeration Wholesale.

Chiller Liquid refrigeration unit.

CO2 equivalent

A measurement of greenhouse gas emissions and how much carbon dioxide is needed to produce the same effect on the climate.

F-gas

Synthetic gases containing fluorine, such as HCFCs and HFCs.

GWP

Global Warming Potential.

HCFC HydroChloroFluoroCarbons, which affects the ozone layer and contribute to global warming.

Operating segments

EMEA

APAC

North America

HFC

HydroFluoroCarbons, Fluorised greenhouse gases which contribute 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.

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.

This is Beijer Ref

The Beijer Ref Group is focused on trade and distributor activities within refrigeration products, air conditioning and heat pumps. The product range mainly consists of products from leading international manufacturers and in addition some manufacturing of our own products combined with service and support for the products. The group creates added value by adding technical expertise to the products, providing knowledge and experience about the market and providing efficient logistics and warehousing.

Beijer Ref supplies customers across large parts of the world with a wide range of products. Through its more than 150 subsidiaries across Europe, North America, Africa, Asia, and Oceania, the company manages sales, purchasing, logistics, and distribution. A portion of sales comes from its own production.

The business is divided into three operating segments: EMEA, APAC and North America. Growth occurs both organically and through the acquisition of companies that complement current operations.

Financial calender

April 2, 2025	The Annual report and sustainability report is published on Beijer Ref's website www.beijerref.com
April 24, 2025	First quarter, 2025
April 24, 2025	Annual General Meeting
July 18, 2025	Second quarter, 2025
October 24, 2025	Third quarter, 2025
January 30, 2026	Fourth quarter, 2025

For information about the Beijer Ref Group, financial reports, press releases, and more, please visit our website: www.beijerref.com.

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.

Stortorget 8, 211 34 Malmö Telephone 040-35 89 00 Corporate ID 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.