Beijer Ref — Interim / Quarterly Report 2019

Jan 30, 2020

BEIJER REF

Beijer Ref AB Q4-2019

English version

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Beijer Ref AB

Q4-2019

Increased profits, acquisition and increased dividend

Fourth quarter

• Net sales increased by 4.3% in the fourth quarter compared to the same period last year and amounted to SEK 3,435 million (3,293). Organic growth amounted to 0.9% and the rest of the increase represents positive currency effects.
• The operating profit for the quarter amounted to SEK 256 million (229), an increase of 11.8% compared with the same period last year. The operating margin amounted to 7.4% (6.9%). Net profit totalled SEK 183 million (164). Profit per share amounted to SEK 1.42 (1.28).
• The company's cash flow has been strong during the quarter. Unused credit amounts to SEK 1,631 million (1,433).
• After the quarter, ACD Trade in Australia with an annual net turnover of SEK 540 million has been acquired.

Full year 2019

• Net sales increased by 13.9% in 2019 compared to the previous year and amounted to SEK 14,817 million (13,015). Organic growth amounted to 4.4%, acquisition effects to 6.3% and the rest represents positive currency effects.
• The operating profit for the year amounted to SEK 1,230 million (1,085) despite fall in refrigerant prices. This is an increase of 13% compared with the previous year. The operating margin amounted to 8.3% (8.3%).
• Net profit totalled SEK 873 million (780). Profit per share amounted to SEK 6.82 (6.07).
• With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change.
• The Board of Directors proposes to the Annual General Meeting an increased dividend of SEK 3.50 per share (3.00).

Key figures 1	Q4-19	Q4-18	Δ%	FY 19	FY 18	Δ%
Net sales, sek m	3 435	3 293	4.3	14 817	13 015	13.9
EBITDA, sek m	363	258	40.7	1 655	1 191	38.9
Operating profit, sek m	256	229	11.8	1 230	1 085	13.3
Profit margin, %	7.4	6.9	—	8.3	8.3	—
Net profit, sek m	183	164	11.1	873	780	12.0
Profit per share, sek	1.42	1.28	11.2	6.82	6.07	12.5
Return on operating capital, %	—	—	—	17.8	19.4	—
Return on equity, %	—	—	—	21.4	22.0	—
Average number of employees	—	—	—	3 869	3 703	4.5

1) 2019 have been affected by IFRS 16 Leasing standard. For further information, see page 12.

The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corresponding to the source and it might therefore be rounding differences in the total.

Beijer Ref AB
Q4 2019 – Published on 30 January 2020

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Comments by the CEO

Strong end to a good year

2019 was yet another strong year for Beijer Ref. The group's net sales amounted to SEK 14.8 billion, an increase of almost 14% compared with the previous year. Organic growth for the year amounted to 4.4%. The operating margin was 8.3%, which is in line with previous years, despite the fact that both prices and volume of the refrigerants have gradually fallen during the year. Operating profit increased by 13.3% compared with the previous year.

The fourth quarter began somewhat slowly, while the second half was significantly stronger. During the period, the group's sales and profit increased compared with the same quarter the previous year. Net sales increased by 4.3%. The increase in sales is mainly due to increased sales of HVAC and OEM. The operating margin was 7.4%, which is 0.5 percentage points better than the previous year. The period does not contain any acquisition effects.

Both the quarter and the year as a whole have been marked by a fall in the price level of refrigerants and a decrease in demand for refrigerants, which has had a negative impact on Beijer Ref's earnings. At the same time, HVAC and OEM have developed well during the quarter. Commercial cooling, apart from refrigerants, is stable and together with HVAC and OEM more than well compensates for the negative development of refrigerants. Nevertheless, it is reasonable to assume that refrigerant prices will be at a historically high level until 2030 when the phasing-out of F-gases under EU regulations will be completed. Meanwhile, Beijer Ref is well equipped to provide the market with environmentally friendly alternatives. Demand for such solutions is increasing and we act accordingly; among other things, we are doubling our OEM production capacity by investing in a new plant in Padua, Italy. We are also investing in our plant in Gothenburg to meet the increased demand for natural refrigerants such as CO₂ and propane. At the same time, we are expanding the group's educational academies, where we are increasing knowledge about natural refrigerants. During the year we have opened new academies in Europe and China, which is also a good way to build relationships with our customers and suppliers.

All regions show sales growth in the fourth quarter, in particular Africa and Asia Pacific, which had peak season during the period. The acquisition of Tecsa Reco in South Africa has developed well and is now contributing to improving the group's margins. In Australia, the restructuring of Kirby has gone according to plan, which has led to improved margins compared to the same period in the previous year. During the quarter, it became clear that our Australian operations will be coordinated under one headquarters and one distribution and logistics centre, an initiative that will provide synergies in an important market. Southern Europe has also had a positive increase in sales and profit during the quarter, which is mainly driven by demand for air conditioning. The Nordic region, Central Europe and Eastern Europe have been the most affected by lower refrigerant prices. However, the Nordic region remains our most profitable region, and it is also the most advanced in conversion to new environmental technologies.

Acquisitions are always high on our list of priorities. 2018 was an acquisition-intensive year and 2019 was largely devoted to consolidating the new companies into our group structure. It therefore feels good to start the new year with the acquisition of ACD Trade in Australia. A highly interesting company with annual sales of approximately SEK 540 million that distributes well-known HVAC brands. With a strong cash flow and a strong balance sheet behind us, we have every opportunity to continue to grow, both organically and through acquisitions. Together with cost control and a growing market in great need of our products, we are entering 2020 with confidence.

Finally, I am pleased to confirm to our shareholders that Beijer Ref's Board of Directors proposes an increase in dividend to SEK 3.50 (3.00).

Per Bertland
CEO

Beijer Ref AB
Q4 2019 – Published on 30 January 2020

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Fourth quarter of 2019

4.3%
Increased sales

11.8%
Improved operating profit

17.8%
Return on operating capital

39.4%
Equity ratio

NET SALES

Beijer Ref increased net sales by 4.3 per cent to SEK 3,435 million (3,293) in the fourth quarter of 2019, of which 0.9% was organic sales growth. All regions demonstrate an increase in sales. Both Australia and Africa show strong sales growth during the quarter, which offsets the Group's seasonal variations.

Commercial refrigeration represents 54% (56%) of the company's sales, 35% (33%) is HVAC and OEM accounts for 11% (11%) of total sales. The latter two show organic growth of approximately 7% and 6% respectively during the quarter. Refrigerants' share of total business continues to decline.

Sales, sek m	Q4	%	FY	%
Net sales 2018	3 293		13 015
Organic change of which:	31	0.9	589	4.4
HVAC	74	6.5	647	14.4
OEM	20	5.6	181	14.9
Commercial & Industrial ref 1	-63	-3.3	-238	-3.1
Change through acquisitions 2	-	-	823	6.3
Exchange rate fluctuation	111	3.4	391	3.1
Change total	142	4.3	1 803	13.9
Net sales 2019	3 435		14 817

1) The reduction in commercial and industrial refrigeration is explained in its entirety by lower refrigerant prices, both for Q4 and for FY.
2) Refers to Tecsa which is included from 1 March 2018, Heatcraft which is included from 5 May 2018 and Lumelco which is included from 1 August 2018. After 12 months of holding, the acquisitions are transferred to organic change.

The figures above relate to the distribution of net sales during the fourth quarter of 2019. Figures in brackets refer to the corresponding period last year.

Beijer Ref AB
Q4 2019 - Published on 30 January 2020

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A weakened Swedish krona resulted in positive currency effects of SEK 111 million (117), corresponding to 3.4% (5.3%), since most of the company's sales are in currencies other than Swedish kronor.

PROFIT

The group's operating profit totalled SEK 256 million (229) during the fourth quarter, which is an increase of 12%. The operating margin amounted to 7.4% (6.9%). Adjusted for IFRS 16 effects, the company's net financial items are SEK -6 million (-12), which is lower than the previous year in spite of increased borrowing.

The pre-tax profit was SEK 242 million (216). The effective tax rate for the full year is 25.7% (26.1%). Net profit was SEK 183 million (164). Profit per share amounted to SEK 1.42 (1.28), an increase of 11%.

CASH FLOW

Cash flow from current operations before changes in working capital amounted to SEK 1,280 million in 2019, compared with SEK 949 million in 2018. Operating profit is higher in the quarter, but non-cash items increased by SEK 297 million in respect of depreciation of usage rights assets due to the transition to IFRS 16. Tax paid during the quarter is also higher, due to higher profits.

Working capital increased by SEK 231 million during the quarter, compared with a decrease of SEK 326 million the previous year. This gives a positive cash flow from operating activities of SEK 481 million, compared with SEK 447 million the previous year. The change in working capital between the years is mainly explained by a lower build-up of stocks. The company has not extended SEK 150 million for the certificate programme, which was launched at the end of 2018.

At the end of the period, the group had unutilised credit facilities totalling SEK 1,631 million (1,433).

INVESTMENTS

The group's net investments in fixed assets including operating acquisitions amounted to SEK 33m (70) during the quarter and mainly relate to investments in ongoing new installations at the company's production unit and a new ERP system in the Netherlands and Australia.

COMPANY ACQUISITIONS

The company continuously evaluates new acquisition opportunities but has not completed any acquisitions during the period. For further information, see significant events after the quarter.

SIGNIFICANT EVENTS AFTER THE QUARTER

Beijer Ref AB has entered into an agreement to acquire the shares of the Australian HVAC company ACD Trade. ACD Trade is a leading company in HVAC distribution in Australia with some 60 employees. The company provides the market with well-known brands and a wide product range that includes both plant and components. Sales are made via a distribution network with nine branches. Reported annual sales amount to approximately SEK 540 million. Beijer Ref acquires ACD Holding Company Pty Ltd. from Cliplight US Holdings, Inc.

The group is already established in Australia through Beijer Ref Australia and Kirby. The acquisition strengthens the group's presence in the Asia Pacific region. The parties have reached a binding agreement with effect from 27 January and the takeover is scheduled for 31 January 2020. ACD Trade will continue to be run in its existing form and will be included in the company's accounts with effect from 1 February 2020. The acquisition is not expected to significantly affect the group's earnings or financial position, but makes a positive contribution to the company's profit development.

Beijer Ref has decided to build a common central warehouse at the company's distribution centre in Lyon, France. Construction begins in autumn 2020 and the plant will be completed by the end of 2022. The investment is estimated to amount to approximately €10M. The facility will have a clear green profile.

Beijer Ref AB

Q4 2019 – Published on 30 January 2020

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Beijer Ref AB
Q4 2019 – Published on 30 January 2020

THE SHARE

Since 2 January 2019, Beijer Ref's B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one vote respectively. Beijer Ref had 8,750 shareholders on 31 December 2019 (6,721). The proportion of foreign shareholders amounts to 4.4% (4.7%), corresponding to a capital shareholding of 57.6% (54.4%). As per 31 December 2019, there are 9,918,720 A shares and 117,515,970 B shares. The company's ten largest shareholders hold 63.8% (68.9%) of the votes and 78.3% (81.2%) of the capital. Average sales of the Beijer share in the quarter amounted to 207,819 shares (190,930) per day at an average purchase price of SEK 252 (149). The closing price on 31 December was SEK 275 (149).

RISK DESCRIPTION

The Beijer Ref Group's operations are subject to a number of business environment factors, the effects of which on the Group's operating profit can be controlled to varying degrees. The Group's operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref's products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group's risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent's risk profile is the same as that of the Group. For further information, see the Group's Annual Report.

ACCOUNTING POLICIES

This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report.

IFRS 16 Leases

IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use.

The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years.

Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease.

Financial assets and liabilities by category and measurement level

Financial assets and liabilities consist of financial assets valued at fair value and also financial assets and liabilities valued to discounted acquisition cost.

Financial assets valued at fair value consist of two holding, one of which (SEK 16 million) refers to listed shares and is valued at market value on the balance sheet date (measurement level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (measurement level 3). Financial assets valued at discounted acquisition cost, such as accounts receivables including other receivables and liquid funds, amount to SEK 3 466 million on the balance sheet date and financial liabilities, such as trade creditor including other liabilities, borrowing and other long-term liabilities, amount to SEK 6 256 million.

Financial interest-bearing liabilities such as borrowing linked to financing are valued at discounted acquisition cost and are considered representing a reasonable approximation of the fair value.

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WEB MEETING Q4 2019

The company invites investors, analysts and the media to attend a telephone conference at which CEO Per Bertland and CFO Maria Rydén will present the interim report for the fourth quarter of 2019. The presentation is held in English and lasts about 20 minutes.

The meeting is on 30 January at 10.00 CET.

Webcast: https://tv.streamfabriken.com/beijer-ref-q4-2019

Teleconference: Dial-in number
SE: +46 8 566 426 95
UK: +44 33 330 090 30
US: +1 833 526 83 83

The presentation will also be available on the company's website www.beijerref.com.

This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors.

Malmö, 30 January 2020

Beijer Ref AB (publ)
Per Bertland, CEO & President

For more information on this report:
Per Bertland, CEO – switchboard, +46 (0)40-35 89 00
Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00

This information is information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 30 January 2020.

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

Beijer Ref AB
Q4 2019 – Published on 30 January 2020

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Summarised profit and loss account, sek m	Q4-19	Q4-18	FY 19	FY 18
Net sales	3 435	3 293	14 817	13 015
Other operating income	6	4	28	20
Operating expenses	-3 077	-3 039	-13 191	-11 843
Depreciation	-108	-30	-424	-106
Operating profit	256	229	1 230	1 085
Net financial income/expense	-13	-12	-56	-31
Profit before tax	242	216	1 174	1 055
Tax	-60	-52	-301	-275
Net profit	183	164	873	780
Net profit attributable to:
The parent company's shareholders	180	162	864	769
Non-controlling interests	3	2	9	10
Net profit per share before dilution, sek 1	1.42	1.28	6.82	6.07
Net profit per share after full dilution, sek 1	1.41	1.27	6.78	6.04

1) Conversion of number of shares has been performed following completion of share split 2018 in order to enable comparability between the years.

The Group's report on other comprehensive income, sek m	Q4-19	Q4-18	FY 19	FY 18
Net profit	183	164	873	780
OTHER COMPREHENSIVE INCOME
Items which will not be reversed in the profit and loss account:
Revaluation of the net pension commitment	-24	12	-24	12
Change in fair value in respect of equity instruments valued at fair value via other comprehensive income	-3	-7	-5	-7
Income tax relating to components of other comprehensive income	4	1	4	1
Items which can later be reversed in the profit and loss account:
Exchange rate differences	-86	-69	145	64
Hedging of net investment	11	-15	18	-44
Income tax relating to components of other comprehensive income	-3	4	-4	9
Other comprehensive income for the year	-100	-74	135	35
Total comprehensive income for the period	83	90	1 008	814
Attributable to:
The parent company's shareholders	83	89	990	801
Non-controlling interests	—	1	18	13

Beijer Ref AB

Q4 2019 - Published on 30 January 2020

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Summarised balance sheet, sek m	31 Dec 2019	31 Dec 2018
ASSETS
Fixed assets:
Intangible fixed assets	2 134	2 077
Tangible fixed assets	486	458
Other fixed assets	329	314
Right of use assets	998	—
Total fixed assets	3 947	2 849
Current assets:
Inventories	3 755	3 507
Trade debtors	2 247	2 204
Other receivables	334	375
Liquid funds	795	909
Total current assets	7 132	6 996
Total assets	11 079	9 845
EQUITY AND LIABILITIES
Shareholders’ equity	4 369	3 785
Total equity	4 369	3 785
Long term liabilities	3 533	3 090
Total long term liabilities	3 533	3 090
Current liabilities:
Trade creditors	1 538	1 451
Other liabilities	1 638	1 520
Total current liabilities	3 176	2 970
Total equity and liabilities	11 079	9 845
Of which interest-bearing liabilities	4 002	3 431
Net debt *	3 207	2 522
Authorised credit limit	3 918	4 085
Of which remains to be utilised	1 631	1 433

*) Of the increased net debt, 1 039 is referable to the new accounting standard IFRS 16. See Lease note on page 12.

Beijer Ref AB

Q4 2019 – Published on 30 January 2020

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Key figures	31 Dec 2019	31 Dec 2018
Equity ratio, %	39.4	38.4
Equity per share before dilution, sek^{1}	35	30
Equity per share after full dilution, sek^{1}	35	31
Return on equity after tax, %	21.4	22.0
Return on capital employed, %	15.9	17.3
Return on capital employed in operations, %	17.8	19.4
Debt ratio	0.7	0.7
Interest coverage ratio	18.4	25.0
Interest coverage ratio^{1}	126 536 710	126 536 710
Holding of own shares^{1}	897 980	897 980
Total number of shares^{1}	127 434 690	127 434 690
Average number of outstanding shares^{1}	126 536 710	126 802 780

1) Conversion of number of shares has been performed following completion of share split 2018 in order to enable comparability between the years.

Summarised consolidated cash flow analysis, sek m	FY 2019	FY 2018
Operating profit	1 230	1 085
Non-cash generated items	438	144
Paid interest	-67	-44
Paid income tax	-313	-236
Profit on sale of tangible fixed assets	-8	—
Cash flow from current operations before changes in working capital	1 280	949
Changes in working capital	-25	-259
Cash flow from investment operations	-137	-1 081
Cash flow from financial operations	-866	969
Dividend paid	-380	-244
Change in cash and bank	-127	335
Exchange rate difference in liquid funds	12	15
Cash and bank on 1 January	909	559
Cash and bank at the period end	795	909
Shareholders' equity, sek m	31 Dec 2019	31 Dec 2018
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Opening balance	3 785	3 294
Adjustment on adoption of IFRS 16	-32	—
Total comprehensive income for the period	1 008	814
Dividend	-380	-244
Repurchase of own shares	—	-98
Option premium received from exercising of option to purchase	—	11
Acquisitions from holders with no controlling influence	—	10
Transactions with holders with no controlling influence	1	-1
Dividend to shareholders with no controlling influence	-12	-1
Closing balance	4 369	3 785

Beijer Ref AB
Q4 2019 - Published on 30 January 2020

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Beijer Ref AB
Q4 2019 – Published on 30 January 2020

Q4sek m	Nordic		Central Europe		Southern Europe		Eastern Europe		Africa		Asia Pacific		Group
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Net sales by operation	427	425	740	735	1 131	1 087	122	105	391	366	679	625	3 490	3 342
- of which Commercial and industrial refrigeration	236	259	475	510	481	480	83	75	252	235	321	293	1 848	1 852
- of which HVAC	143	123	224	204	537	500	31	28	92	85	192	167	1 219	1 107
- of which OEM	48	42	41	21	114	108	8	2	47	46	166	165	423	383
Internal sales between operations													-55	-49
Net sales													3 435	3 293
Operating profit by operation	65	69	45	45	49	53	10	6	58	37	53	48	280	257
Group-wide expenses													-24	-28
Operating profit													256	229
Net financial													-13	-12
Tax													-60	-52
Net profit													183	164
Working capital, average for the period	554	483	1 040	1 010	1 527	1 506	192	191	544	482	861	821	4 717	4 493
Group eliminations													2	-6
Total average working capital													4 719	4 486
FYsek m	Nordic		Central Europe		Southern Europe		Eastern Europe		Africa		Asia Pacific		Group
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Net sales by operation	1 819	1 717	3 512	3 307	5 479	4 688	522	493	1 320	1 164	2 428	1 874	15 080	13 242
- of which Commercial and industrial refrigeration	1 046	1 116	2 182	2 244	2 152	2 158	383	370	861	765	1 137	891	7 760	7 544
- of which HVAC	594	454	1 176	966	2 800	2 092	118	106	286	246	673	540	5 648	4 404
- of which OEM	180	146	154	96	527	438	21	16	173	154	618	443	1 672	1 294
Internal sales between operations													-263	-227
Net sales													14 817	13 015
Operating profit by operation	279	282	277	274	449	409	53	59	119	68	142	99	1 319	1 191
Group-wide expenses													-89	-105
Operating profit													1 230	1 085
Net financial													-56	-31
Tax													-301	-275
Net profit													873	780
Working capital, average for the period	551	491	999	953	1 620	1 425	191	194	528	474	842	691	4 732	4 228
Group eliminations													-6	-7
Total average working capital													4 726	4 222

Reporting for segments

Operating segments

The Group's operation is split into operating segments based on how the company's highest executive decision maker, i.e. the CEO, monitors the operation. The Group has the following segments; the Nordic countries, Central Europe, Southern Europe, Eastern Europe, Africa and Asia Pacific.

The segments reporting for the regions contains the profit and loss account up to and including operating profit. Internal sales within each segment are eliminated in net sales by operation, internal sales between segments are eliminated on total level. Net sales are distributed by product area, i.e. Commercial and Industrial Refrigeration, HVAC and OEM. The working capital includes inventories, trade debtors and trade creditors and is an average based on monthly values for the period.

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Effects on implementation of IFRS 16, leasing

As of 1 January 2019, the new accounting standard related to lease are applied (IFRS 16). The lease standard requires that assets and liabilities attributable to all leasing agreement, with some exceptions, are reported in the balance sheet. For more information, please see Annual Report 2018 (page 67, 71 and 77). This new standard means that assets and liabilities in Balance sheet have increased with right of use assets and leasing liabilities (long- and shortterm). For certain contracts a retroactive approach has been applied, which has had a negative effect on opening equity. There is also an effect in the Profit and Loss account as the lease cost are reclassified to depreciation and interest expense.

The introduction of IFRS 16 also affects cash flow since depreciation gives a positive effect in current operations and the corresponding amount reduces financing activities. For Q4, the effect is SEK 76 million and for 12 months the effect amounts to SEK 297 million.

The effects in the Balance sheet and Profit and Loss account as well as in key figures, which the transition to the new leasing standard entails, are presented below.

Summarised profit and loss account, sek m	Q4-19 incl IFRS 16	Q4-19 IFRS 16 effect	Q4-19 excl IFRS 16	FY -19 incl IFRS 16	FY -19 IFRS 16 effect	FY -19 excl IFRS 16
Operating income	3 440	—	3 440	14 846	-1	14 845
Operating expenses	-3 077	-83	-3 160	-13 191	-325	-13 516
Depreciation	-108	76	-32	-424	297	-127
Operating profit	256	-7	248	1 230	-29	1 201
Financial net	-13	7	-6	-56	28	-28
Profit before tax	242	—	242	1 174	-1	1 173
Tax	-60	—	-60	-301	—	-301
Net profit for the year	183	—	182	873	-1	872
Attributable to:
The parent company’s shareholders	180	—	179	864	-1	863
Non-controlling interests	3	—	3	9	—	9
Summarised balance sheet, sek m	Q4-19 incl IFRS 16	Q4-19 IFRS 16 effect	Q4-19 excl IFRS 16	CB/OB-analysis OB 1812	IFRS 16 effect	CB 1901
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ASSETS
Fixed assets:
Total fixed assets	3 947	-1 009	2 938	2 849	1 033	3 882
Total current assets	7 132	—	7 132	6 996	—	6 996
Total assets	11 079	-1 009	10 070	9 845	1 033	10 878
EQUITY AND LIABILITIES
Total equity	4 369	30	4 400	3 785	-32	3 754
Total long term liabilities	3 533	-731	2 802	3 090	767	3 857
Total current liabilities	3 176	-308	2 868	2 970	297	3 267
Total equity and liabilities	11 079	-1 009	10 070	9 845	1 033	10 878
Net debt	3 207	-1 039	2 168
Key figures	Q4-19 excl IFRS 16 effect	Q4-18	Δ% excl IFRS 16 effect	FY -19 excl IFRS 16 effect	FY -18	Δ% excl IFRS 16 effect
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EBITDA, sek m	280	258	8.5	1 329	1 191	11.5
Operating profit, sek m	248	229	8.6	1 201	1 085	10.7
Profit margin, %	7.2	6.9		8.1	8.3
Net profit, sek m	182	164	10.9	872	780	11.9
Net profit per share before dilution, sek	1.42	1.28	11.1	6.82	6.07	12.5
Net profit per share after full dilution, sek	1.41	1.27	10.8	6.77	6.04	12.1
Equity ratio, %				43.7	38.4
Equity per share before dilution, sek				35	30
Equity per share after full dilution, sek				36	31
Return on equity after tax, %				21.3	22.0
Return on capital employed, %				16.6	17.3
Return on operating capital, %				18.8	19.4
Dept ratio				0.5	0.7
Interest coverage ratio				30.8	25.0

Beijer Ref AB
Q4 2019 - Published on 30 January 2020

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Parent company profit and loss account in summary, sek m	FY 2019	FY 2018
Operating income	57	60
Operating expenses	-74	-84
Depreciation	-3	-3
Operating profit	-20	-27
Net financial income/expense	53	-15
Result of participations in Group companies	448	347
Profit before appropriations	481	305
Appropriations	68	114
Profit before tax	549	419
Tax	-20	-16
Net profit	529	403
Parent company balance sheet in summary, sek m	31 Dec 2019	31 Dec 2018
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ASSETS
Intangible fixed assets	7	8
Tangible fixed assets	4	5
Financial fixed assets	3 800	3 707
Current assets	1 050	1 373
Total assets	4 860	5 093
EQUITY AND LIABILITIES
Shareholders' equity	1 963	1 814
Long-term liabilities	2 546	2 836
Current liabilities	351	443
Total equity and liabilities	4 860	5 093

Beijer Ref AB

Q4 2019 - Published on 30 January 2020

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14
Beijer Ref AB
Q4 2019 – Published on 30 January 2020

Financial definitions	Trade terms
Δ%
Change in percentage.	ARW
Air Condition & Refrigeration Wholesale.
Capital employed
Balance sheet total with a deduction for non-interest-bearing liabilities and deferred tax liability.	Chiller
Liquid refrigeration unit.
Debt/equity ratio
Net debt in relation to equity. The objective is to show borrowing in relation to book value of equity.	CO_{2} equivalent
A measurement of greenhouse gas emissions and how much carbon dioxide is needed to produce the same effect on the climate.
EBITDA
Earnings before interest, taxes, depreciation and amortisation of tangible and intangible fixed assets. The objective of reporting EBITDA is that the Group regards it as a relevant measure for an investor who wants to understand the generation of earnings before investments in fixed assets.	F-gas
Artificial gases containing fluorine, such as HCFCs and HFCs.
Equity ratio
Equity at the end of the period in relation to balance sheet total.	GWP
Global Warming Potential
Interest-bearing liabilities
Interest-bearing provisions.	HCFC
HydroChloroFluoroCarbons, which affects the ozone layer and contribute to global warming.
Interest coverage ratio
Earnings before tax plus financial expenses 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.	HFC
HydroFluoroCarbons, Fluorised greenhouse gases which contribute to global warming.
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 report 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.	HFO
HydroFluoroOlefins, synthetic environmentally friendly refrigerants.
Operating capital
Capital employed minus liquid funds, financial assets and other interest-bearing assets.	HVAC
Heating, Ventilation, Air Conditioning.
Operating margin
Operating profit in relation to net sales.	OEM
Original Equipment Manufacturer.
Organic change
Comparative figures year over year adjusted for translation effects on consolidation and changes in the structure.	Transcritical
Heat transfer with gas cooler.
Profit per share before/after dilution
Net profit in relation to average number of shares before/after dilution.	Geographic areas
Africa
Botswana, Ghana, Mozambique, Namibia, South Africa, Tanzania, Zambia
R12
Rolling twelve is the latest 12 months.	Asia Pacific
Australia, China, India, Malaysia, New Zealand, Singapore, Thailand
Return on capital employed
Profit before tax plus financial expenses (rolling 12 months) in relation to average capital employed.	Central Europe
Belgium, Ireland, The Netherlands, Switzerland, Germany, UK
Return on equity
Earnings after tax (rolling 12 months) as a percentage of average equity. The objective of return on equity and other return measures is to put the earnings in relation to important balance sheet items.	Eastern Europe
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia
Return on operating capital
Operating profit (rolling 12 months) as a percentage of average capital employed in operations.	Nordic
Denmark, Finland, Norway, Sweden
	Southern Europe
France, Italy, Portugal, Spain
	Other
CSR
Corporate Social Responsibility.
	The Kigali Agreement
Amendment to the Montreal Protocol. An agreement between countries that have committed themselves to reducing the production and consumption of HFCs by more than 80% over the next 30 years (2050).
	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.

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Beijer Ref in short

The Beijer Ref Group is focused on trading and distribution operations within refrigeration products, air conditioning and heat pumps. The product programme consists mainly of agency products from leading international manufacturers and, in addition, some manufacture of own products, combined with service and support for the products. The Group creates added value by contributing: technical competence to the products; accounting for knowledge and experience about the market; and by providing efficient logistics and warehousing.

Operations are carried out by region within the Beijer Ref, which comprises Beijer Ref ARW (Air conditioning, refrigeration, wholesale) and Toshiba's distribution operation within air conditioning and heating. The Beijer Ref Group is a leading operator within the refrigeration sector in Europe and has a significant position within air conditioning in Europe. The operation is split into six geographic segments: Nordic countries, Southern Europe, Central Europe, Eastern Europe, Africa and Asia Pacific. Growth is achieved both organically and through the acquisition of companies which supplement existing operations.

Seasonal effects

Beijer Ref's sales are seasonally dependent as demand for refrigeration and air conditioning is at its peak during the warm months of the year. It means that demand in the northern hemisphere is at its peak during the second and third quarters whilst demand in the southern hemisphere is at its peak during the first and fourth quarters.

Financial calendar

• Annual Report 2019 will be published on 26 March 2020.
• AGM will be held in Malmö on 16 April 2020.
• The Interim Report for the first quarter 2020 will be published on 21 April 2020.
• The Interim Report for the second quarter 2020 will be published on 15 July 2020.
• The Interim Report for the third quarter 2020 will be published on 20 October 2020.
• The Interim Report for the fourth quarter 2020 will be published on 28 January 2021.

BEIJER REF
Stortorget 8, SE-211 34 Malmö, Sweden
Telephone +46 40-35 89 00
Corporate ID number 556040-8113
www.beijerref.com

This document is a translation of the Swedish language version.
In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct.

Beijer Ref AB
Q4 2019 – Published on 30 January 2020