Beijer Ref — Interim / Quarterly Report 2021

Apr 22, 2021

Beijer Ref AB

Q1-2021

English version

BEIJER REF

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Beijer Ref AB Q1-2021

Recovery

First quarter

Net sales increased by 7.3% in the first quarter compared to the same period last year and amounted to SEK 3,731 million (3,478). Organic growth was strong at 7.3%. Acquisition effects amounted to 5.1%, which is offset by currency effects amounting to -5.2%.

EBITDA amounted to SEK 377 million (309), corresponding to an EBITDA margin of 10.1% (8.9%). The operating profit for the quarter amounted to SEK 263 million (197), an increase of 33% compared with the previous year. The operating margin amounted to 7.0% (5.7%).

Profit before tax was SEK 248 million (182). Net financial items are in line with previous year despite increased borrowings in connection with completed acquisitions and costs for the granted credit capacity.

Cash flow from current activities was positive during the quarter and amounted to SEK 323 million (218). The company's liquidity remained good during the quarter and the company's balance sheet is strong, with unutilised credit amounting to SEK 1,608 million (1,383).

Profit per share before and after dilution amounted to SEK 1.42 (1.05) and SEK 1.41 (1.05) respectively, which is an increase of 35%.

Key figures	Q1-21	Q1-20	Δ%	R12	FY 20
Net sales, sek m	3 731	3 478	7.3	14 315	14 062
EBITDA, sek m	377	309	22.2	1 546	1 477
EBITDA, %	10.1	8.9		10.8	10.5
Operating profit, sek m	263	197	33.4	1 101	1 036
Profit margin, %	7.0	5.7		7.7	7.4
Net profit, sek m	184	135	36.2	777	729
Earnings per share before dilution, sek	1.42	1.05	35.2	6.08	5.71
Earnings per share after dilution, sek	1.41	1.05	35.2	6.04	5.67
Return on operating capital, %	3.4	2.5		13.8	13.9
Return on equity, %	3.9	3.0		16.6	16.5
Average number of employees	4 015	3 843			3 856

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
Q1 2021 – Published on 22 April 2021

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At the end of 2020, the acquisition of 85% of the shares of Sinclair in the Czech Republic was completed, which is included in the group's financial statements from 1 January 2021. During the first quarter of 2021, the acquisition of all shares of Complete Air Supply in Australia and 60% of the shares of Coolair in Germany was concluded; these are included in the company's accounts from February and March 2021 respectively. In total, these companies have annual sales of approximately SEK 650 million and strengthen the group's operating margin.

Covid-19 has had a small effect on the company's results during the first quarter. The savings programme that was implemented in 2020 has led to cost savings of approximately SEK 20 million during the first quarter. The company does not expect any major impact on earnings related to Covid-19 in 2021 unless new unforeseen outbreaks occur.

The company's CEO Per Bertland announced his resignation in the first quarter and the recruitment of a successor is ongoing and is expected to be completed after summer 2021.

The company has also signed a new partnership agreement with Bitzer in Germany, which is an important supplier of compressors to the company. Beijer Ref and Bitzer are among the leaders in the refrigeration and air conditioning industry and have extended their partnership agreement for a further three years.

The annual general meeting was held on 15 April 2021 and the meeting decided, in accordance with the board's proposal, on a dividend totalling SEK 3.00, divided into SEK 1.80 with payment in April and SEK 1.20 with payment in October. The meeting also decided to perform a share split 3:1 with 26 April 2021 as the record date. The meeting also decided to introduce a long-term share-based incentive programme LTIP 2021/2024 for key employees in the group. In accordance with the board's proposal, it was decided to offer the participants in LTIP 2018/21 repurchase of purchase options.

Beijer Ref AB
Q1 2021 – Published on 22 April 2021

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Comments by the CEO

Organic growth

The first quarter of the year was strong and a clear sign of recovery. Sales amounted to SEK 3.7 billion, an increase of 7.3% compared to the same period last year and our best Q1 report ever.

Organic growth in the quarter amounted to 7.3%, which is a statement of strength, given that several of our markets are still partially closed down. This shows that our products and our offering, which have a societal function, are also in demand in the present circumstances. My assessment is that there is a pent-up need for our products on the market and that in the coming quarters there will be an increased demand for repair and maintenance work which has not been performed, provided that the restrictions are gradually lifted and we move towards normalisation.

The organic growth has a positive effect on operating profit, but the improvement in profit is also a result of the adjustments we have made in the form of efficiency improvements, which have resulted in cost savings.

Of the geographical markets, southern Europe stands out with organic sales growth of 17%. Asia Pacific has also had a strong quarter with organic growth of 10%. In terms of our product areas, HVAC accounts for the largest sales increase with organic growth of 15% in the quarter.

The OEM product area is in an expansive phase and growth was double digits during the period, especially with the environmentally-friendly product range. Beijer Ref's new production facility in Padua, Italy, has produced its first units and the group's total OEM capacity for sustainable production

is now twice as large as before. This gives us a strong position in the market when the refrigeration systems of Europe and the rest of the world are to be gradually converted to become sustainable.

After ten quarters of falling purchase prices for refrigerants, which has had a sharp negative impact on earnings, the trend is that prices have started to rise, which means that the impact on earnings in the first quarter is marginal.

Beijer Ref is driven by creating growth, both organically and through acquisitions. During the period, we have consolidated our most recently added companies – the Czech company Sinclair, Complete Air Supply in Australia and Coolair in Germany – with good results. Our strong cash flow enables an even greater focus on acquisitions in the future. We continuously evaluate potential acquisitions in both existing and new markets.

At the end of last year, EQT became the new principal owner and the board was given a partly new composition. This gives Beijer Ref good conditions to continue its successful journey, which means that we will continue to have a strong focus on acquisitions, ESG matters and digitalisation. E-commerce is growing continuously and during the first quarter it amounted to approximately 9%. I am optimistic about achieving our long-term goal of e-commerce making up at least 20% of our total sales by 2023.

As I have previously announced, I have chosen to leave my role as CEO in 2021 and instead become a member of the board. The recruitment process for my successor is ongoing. I will remain in position until the new CEO takes office, which hopefully will be sometime after the summer.

We have had a good start to the year and I am looking forward to the future. We are a strong team with new principal owners, motivated employees and an offering that is in demand on the market.

Megatrends in the form of regulatory provisions and an increased need worldwide for HVAC are putting the wind in our sails. Together with the fact that after the pandemic there is a pent-up need for our products, especially when the HORECA segment also starts to reopen its operations, it gives me every reason to look forward with optimism.

Per Bertland
CEO

Beijer Ref AB
Q1 2021 – Published on 22 April 2021

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First quarter of 2021

7.3%
Organic growth

10.1%
EBITDA

1.42
Earnings per share

39%
Equity ratio

NET SALES

Beijer Ref increased its net sales by 7.3 per cent to SEK 3,731 million (3,478) in the first quarter of 2021. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 7.3 per cent (-3.2). Sales growth has been greatest in air conditioning and OEM as well as in the company's largest markets in southern Europe. A stronger Swedish krona resulted in negative currency effects of SEK 168 million (41), corresponding to 5.2 per cent (1.2), since most sales are in currencies other than Swedish kronor.

The company has experienced growth in all product areas, due to both price and volume increases. Refrigerants have had a less negative effect on sales during the quarter compared to previous quarters.

Sales, sek m	Q1	%
Net sales 2020	3 478
Organic change	243	7.3
Change through acquisitions 1	178	5.1
Exchange rate fluctuation	-168	-5.2
Change total	253	7.3
Net sales 2021	3 731

1) The acquisitions relates to ACD Trade, which is included in the consolidated financial statements from February 2020, Sinclair which is included from January 2021, Complete Air Supply which is included from February 2021 and Coolair which is included from March 2021.

Air conditioning has developed strongly during the quarter and has grown organically by 14.5%, largely thanks to good

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

Beijer Ref AB
Q1 2021 – Published on 22 April 2021

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collaboration with Toshiba, Mitsubishi Heavy, Carrier and Gree. Sales growth in air conditioning has been strong, with the exception of Africa and Eastern Europe.

OEM has experienced strong growth in the first quarter, thanks not least to the F-gas phasing-out programme that is underway in Europe. The group has also produced its first units at the new factory in Padua, Italy, doubling its capacity in environmentally-friendly refrigeration technology. The group's company in China have also had good sales development on the domestic market.

PROFIT

The group's operating profit totalled SEK 263 million (197) during the first quarter, which is an increase of 33 per cent (-19). Negative exchange rate effects of SEK 10.3 million (3) are included in the operating profit figures. The operating margin amounted to 7.0 per cent (5.7). The improved profit is due to volume increases, implemented savings and positive acquisition effects.

Profit before tax was SEK 248 million (182). Profit for the period totalled SEK 184 million (135). Profit per share before dilution amounted to SEK 1.42 (1.05).

CASH FLOW

Cash flow from current operations before changes in working capital amounted to SEK 323 million in 2021, compared with SEK 218 million in 2020. The change is due to higher earnings during the quarter and less tax paid.

Working capital decreased by SEK 13 million during the first quarter compared with an increase of SEK 21 million the previous year. This gives cash flow from current operations of SEK 337 million (197). The change in working capital between the years is due primarily to a lower buildup of stocks during the quarter.

At the end of the period, the company had credit facilities amounting to SEK 4,273 million (4,165), of which unutilised credits amounted to SEK 1,608 million (1,383). In total, net liabilities decreased by SEK 314 million. The group has a balanced maturity structure and no loans that fall due in 2021.

INVESTMENTS

Cash flow from investment activities amounted to SEK -317 million (-219), which relates primarily to business combinations and investments in fixed assets. Sinclair Global Group, Complete Air Supply and Coolair were acquired during the first quarter (ACD Trade was acquired the previous year). Thanks to the good cash flow, the group has used less of the granted credit capacity and amortised loans by SEK 111 million.

COMPANY ACQUISITIONS

At the end of 2020, 85% of Sinclair Global Group was acquired and this is included in the group's financial statements with effect from 1 January 2021. Sinclair is headquartered in Brno in the Czech Republic with sales offices in Slovakia, Hungary and Croatia. Sinclair sells air conditioning and heat pumps to a number of countries and most of the sales consist of HVAC products of its own Sinclair brand. Annual sales amounts to SEK 410M and they have 110 employees.

During the first quarter, the company acquired 100% of the shares of Complete Air Supply (CAS) in Australia. This company is active in HVAC and has a range that in particular complements ACD Trade well and which makes what Beijer offers for residential and commercial properties more comprehensive. CAS has annual sales of SEK 140 million, with 40 employees in 2 branches. The company is included in the group's financial statements with effect from 1 February 2021.

Air conditioning is a priority growth area for Beijer Ref and the group is growing steadily in this area both organically and through acquisitions. The growth strategy is strengthened by the acquisition of 60% of the shares of Coolair Klimasysteme GmbH in Germany, which has sales of approximately SEK 100 million and more than 25 employees. The company is included in the group's financial statements with effect from 1 March 2021 and strengthens Beijer Ref's presence in Germany, which is a large and important market in Europe.

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

Beijer Ref is relatively insensitive to economic cycles as about half of the company's sales are made to end customers active in the food industry. Any decline is offset by the need for the food industry to switch to environmentally friendly systems, which increases the demand for the company's products. This, together with an increased standard of living, is driving our sales development. The company's current assessment is that Covid-19 will have a smaller effect on earnings in 2021. Beijer Ref's assessment is that net savings of approximately SEK 20 million had an effect during the quarter, including support measures of SEK 2 million, but that sales were not significantly affected in 2021.

Per Bertland has informed the board of Beijer Ref AB that he will step down as CEO. The transition will take place once a successor has been appointed, which is expected to occur after summer 2021.

ANNUAL GENERAL MEETING

The annual general meeting was held on 15 April 2021. The meeting decided, in accordance with the proposal of the board, on a dividend of SEK 3.00 per share for the 2020 financial year. Of the proposed amount, SEK 2.50 per share corresponds to an ordinary dividend and SEK 0.50 is an extraordinary dividend. Payment of the dividend shall be made in two instalments: the first of SEK 1.80 per share and the second of SEK 1.20 per share (0.40 after split). Total dividend amounts to SEK 379.6M based on total number of outstanding shares. The record dates are 19 April 2021 and 8 October 2021. Payment from Euroclear Sweden AB is expected to be made on 22 April 2021 for the first payment and 13 October 2021 for the second payment.

The meeting also decided to perform a share split 3:1 with 26 April 2021 as the record date. The meeting also decided to introduce a long-term share-based incentive programme LTIP 2021/2024 for key employees in the group. In accordance with the board's proposal, it was decided to offer the participants in LTIP 2018/21 repurchase of purchase options issued in LTIP 2018/2021.

THE SHARE

Since 2 January 2019, Beijer Ref's B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92. There are two types of share, A shares and B shares, which represent ten and one votes respectively. Beijer Ref had 11,520 shareholders on 31 March 2021 (9,101). The proportion of foreign shareholders amounts to 4.1% (4.5), corresponding to a capital shareholding of 54.9% (59.6). As of 31 March 2021, there were 9,918,720 class A shares and 117,515,970 class B shares. The company's ten largest shareholders hold 77.2% (78.6) of the votes and 62.1% (64.5) of the capital. Average sales of the Beijer share in the quarter amounted to 149,369 shares (184,243) per day at an average purchase price of SEK 363 (233). The closing price on 31 March 2021 was SEK 383 (179). As of 31 March 2021, the market value was SEK 48.8 billion (22.8).

RISK DESCRIPTION

Beijer Ref group's operations are affected by a number of external factors whose effects on the group's operating profit can be monitored to varying degrees. The group's operations depend on general economic developments in Europe in particular, which govern demand for Beijer Ref's products and services.

Like other global companies, Beijer Ref is affected by pandemics and in 2020 the group was affected by Covid-19. The company's assessment is that Covid-19 is having a smaller effect on earnings in 2021. The company is taking the necessary steps to reduce its impact and is following the WHO recommendations.

Acquisitions are normally associated with risks, such as loss of key personnel. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, guarantees, dependence on individuals etcetera, are continuously analysed. If necessary, measures are taken to reduce the group's risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk.

The parent company's risk pattern is the same as that of the group. For further information, see the group's annual report.

ACCOUNTING POLICIES

This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report. Information pursuant to IAS 34.16A, in addition to disclosure in the financial reports and their associated notes, also appears in other parts of the interim report.

Financial assets and liabilities by category and level of valuation

The group's financial assets and liabilities consist of financial assets measured at fair value through other comprehensive income and financial assets and liabilities valued at accrued acquisition value.

Financial assets valued at fair value through other comprehensive income consist of three holdings, one of which (SEK 15M) refers to listed shares and is valued at market value on the balance sheet date (valuation level 1). The two other holdings (SEK 29M) is unlisted holdings and is valued at estimated fair value (valuation level 3). Financial assets valued at accrued acquisition value, such as trade receivables and other receivables, as well as cash and cash equivalents, amount to SEK 4,049M on the balance sheet date and financial liabilities valued at accrued acquisition value such as accounts payable, leasing liabilities and borrowings, as well as other long-term liabilities, amount to SEK 7,165M.

Financial interest-bearing liabilities such as loans linked to financing are entered at accrued acquisition value and are considered to constitute a good estimate of fair value taking into account the fixed terms and the setting of interest rates.

Beijer Ref AB
Q1 2021 - Published on 22 April 2021

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8
Beijer Ref AB
Q1 2021 – Published on 22 April 2021

TELEPHONE CONFERENCE Q1 2021

Beijer Ref invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the first quarter of 2021. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 22 April at 10.00 CET.

Audiocast with teleconference

Webcast: https://financialhearings.com/event/13648

Teleconference: Dial-in number SE: +46 8 505 583 69

UK: +44 33 330 092 65 US: +1 833 249 8406

A presentation will be available on the company's website from 08.40 CET on 22 April.

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

Malmö, 22 April 2021

Beijer Ref AB (publ)

Per Bertland, CEO & President

For more information on this report:

Per Bertland, CEO – switchboard, +46 (0)40-35 89 00

Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00

This information is information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 22 April 2021.

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

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Summarised profit and loss account, sek m	Q1-21	Q1-20	R12	FY 20
Net sales	3 731	3 478	14 315	14 062
Other operating income	11	8	27	25
Operating expenses	-3 364	-3 178	-12 796	-12 610
Depreciation	-115	-112	-444	-442
Operating profit	263	197	1 101	1 036
Net financial income/expense	-15	-15	-59	-59
Profit before tax	248	182	1 043	977
Tax	-64	-47	-265	-248
Net profit	184	135	777	729
Net profit attributable to:
The parent company's shareholders	180	133	769	722
Non-controlling interests	4	2	8	6
Net profit per share before dilution, sek	1,42	1,05	6,08	5,71
Net profit per share after full dilution, sek	1,41	1,05	6,04	5,67
The Group's summarised report on other comprehensive income, sek m	Q1-21	Q1-20	R12	FY 20
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Net profit	184	135	777	729
OTHER COMPREHENSIVE INCOME
Items which will not be reversed
in the profit and loss account	4	-12	-3	-19
Income tax relating to components in above item	-1	3	1	5
Items which can later be reversed
in the profit and loss account	185	-3	-184	-372
Income tax relating to components in above item	-4	21	-22	3
Total comprehensive income for the period	368	143	569	344
Attributable to:
The parent company's shareholders	360	142	566	348
Non-controlling interests	8	1	3	-3

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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Summarised balance sheet, sek m	31 March 2021	31 March 2020	31 Dec 2020
ASSETS
Fixed assets:
Intangible fixed assets	2 281	2 298	2 103
Tangible fixed assets	599	519	544
Right of use assets	1 299	1 059	1 184
Deferred tax asset	196	221	180
Other fixed assets	161	137	144
Total fixed assets	4 536	4 235	4 156
Current assets:
Inventories	4 019	4 022	3 389
Trade debtors	2 529	2 549	2 069
Other receivables	467	378	633
Liquid funds	1 012	782	1 161
Total current assets	8 027	7 732	7 253
Total assets	12 563	11 967	11 408
EQUITY AND LIABILITIES
Shareholders' equity	4 882	4 512	4 489
Total equity	4 882	4 512	4 489
Long term liabilities	3 880	1 101	3 755
Deferred tax liability	110	117	105
Total long term liabilities	3 990	1 217	3 860
Current liabilities:
Trade creditors	2 198	1 978	1 640
Other liabilities	1 493	4 259	1 419
Total current liabilities	3 691	6 237	3 059
Total equity and liabilities	12 563	11 967	11 408
Of which interest-bearing liabilities	4 145	4 229	4 105
Net debt	3 133	3 447	2 944
Authorised credit limit	4 273	4 165	4 259
Of which remains to be utilised	1 608	1 383	1 516

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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Key figures	31 March 2021	31 March 2020	31 Dec 2020
Equity ratio, %	38.9	37.7	39.3
Equity per share before dilution, sek	39	36	35
Equity per share after full dilution, sek	39	37	36
Return on equity after tax, %	3.9	3.0	16.5
Return on capital employed, %	3.0	2.3	12.3
Return on capital employed in operations, %	3.4	2.5	13.9
Debt ratio	0.6	0.8	0.7
Interest coverage ratio	14.9	11.9	15.6
Number of outstanding shares	126,536,710	126,536,710	126,536,710
Holding of own shares 1	897,980	897,980	897,980
Total number of shares	127,434,690	127,434,690	127,434,690
Average number of outstanding shares	126,536,710	126,536,710	126,536,710

1) Holdings of own shares ensure the delivery of shares to participants in the options programme. The options programme falls due in June 2021.

Summarised consolidated cash flow analysis, sek m	3 months 2021	3 months 2020	FY 2020
Operating profit	263	197	1 036
Non-cash generated items	127	113	434
Paid interest	-18	-17	-67
Paid income tax	-44	-75	-288
Profit on sale of tangible fixed assets	-4	—	-2
Cash flow from current operations before changes in working capital	323	218	1 112
Changes in working capital	13	-21	426
Cash flow from investment operations	-317	-219	-560
Cash flow from financial operations	-111	76	-22
Amortisation of leasing liabilities	-81	-79	-310
Dividend paid	—	—	-221
Change in cash and bank	-173	-24	426
Exchange rate difference in liquid funds	31	11	-59
Cash and bank on 1 January	1 154	795	795
Cash and bank at the period end	1 012	782	1 161
Shareholders' equity, sek m	31 March 2021	31 March 2020	31 Dec 2020
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Opening balance	4 489	4 369	4 369
Total comprehensive income for the period	368	143	344
Dividend	—	—	-221
Non-controlling interest arising on business combinations	26	—	—
Dividend to shareholders with no controlling influence	—	—	-4
Closing balance	4 882	4 512	4 489

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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Q1 sek m	Nordic		Central Europe		Southern Europe		Eastern Europe		Africa		Asia Pacific		Group
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Net sales by operation	386	418	820	813	1 317	1 186	189	112	269	335	834	686	3 816	3 550
- of which Commercial and industrial refrigeration	222	261	481	496	451	447	76	80	182	218	300	280	1 712	1 781
- of which HVAC	120	104	319	275	714	617	109	29	55	78	372	277	1 690	1 380
- of which OEM	44	53	20	42	151	122	4	4	32	39	163	129	414	389
Internal sales between operations													-85	-72
Net sales													3 731	3 478
Operating profit by operation	43	37	49	38	82	59	14	7	25	28	69	51	282	219
Group-wide expenses													-19	-22
Net profit													263	197
Net financial													-15	-15
Tax													-64	-47
Net profit													184	135
Working capital, average for the period	423	549	861	1 005	1 267	1 442	339	190	402	500	830	920	4 122	4 606
Group eliminations													-1	-1
Total average working capital													4 122	4 606

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.

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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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 period, three acquisitions were added to the group's accounts, each of which has been deemed to be immaterial. Information about the acquisitions is provided below.

2021

First quarter

The Czech Sinclair Global Group has been part of the Beijer Ref Group since 1 January 2021. Sinclair is 85% owned with the option to acquire the remaining shares within three years; both buy and sell options have been issued. 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 approximately SEK 410 million and good profitability. The purchase price amounts to SEK 209 million and the net assets amount to SEK 151 million, giving a surplus value of SEK 58 million. The surplus value consists mainly of synergy effects and the majority (SEK 50 million) relates to goodwill; some (SEK 8 million) has been allocated to intangible assets as customer lists. The acquisition calculation prepared is preliminary. The acquisition cost amounts to SEK 0.7 million. Since the acquisition, Sinclair Group has contributed SEK 88 million to group sales and SEK 8 million to operating profit.

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 140 million, with 40 employees in 2 branches. This company is included in the company's financial statements with effect from 1 February 2021. The purchase price amounts to SEK 58 million and the net assets amount to SEK 31 million. The acquisition cost amounts to SEK 0.3 million. Of the surplus value of SEK 27 million, SEK 25 million relates to goodwill in the form of synergies and the remainder relates to customer lists and is allocated as intangible assets. The acquisition calculation prepared is preliminary. Since 1 February 2021, CAS has contributed SEK 26 million to sales and SEK 3 million to operating profit.

Beijer Ref acquired 60% of the shares of Coolair Germany. A purchase and sales option has been issued to acquire the remaining shares within the next few years. The acquisition was made at the end of February 2021 and is included in the group's accounts with effect from 1 March. Coolair's annual sales amount to approximately SEK 100 million and it has more than 25 employees. The purchase price amounts to SEK 37 million and the net assets amount to SEK 4 million. The acquisition cost for Coolair amounts to SEK 0.4 million. Of the surplus value of SEK 33 million, SEK 30 million relates to goodwill in the form of synergies and the remainder relates to customer lists and is allocated as intangible assets. The acquisition calculation prepared is preliminary. During March, Coolair has contributed SEK 9 million to sales and SEK 1 million to profit.

2020

First quarter

During the quarter, Beijer Ref acquired ACD Trade, a leading company in HVAC distribution in Australia with some 60 employees. With the acquisition of ACD Trade, the group's presence in Australia has been further strengthened. Sales are made through nine branches. The total purchase price amounts to SEK 211M and is included in the consolidated financial statements with effect from 1 February 2020. ACD Trade contributed SEK 165M to the group's net sales for the first quarter 2021 and made a positive contribution to operating profit of SEK 11M.

Acquisitions of companies, sek m	Q1 2021	Q1 2020
Fair value in the Group:
Goodwill	107	103
Intangible assets	17	18
Tangible fixed assets	13	15
Deferred tax assets	5	8
Inventories	147	84
Other current assets	56	72
Liquid funds	20	31
Deferred tax liability	-5	-14
Provisions	-1	—
Other current liabilities	-56	-105
Total identifiable net assets	304	211
Effect on the cash flow
Consideration	-301	-211
Non paid purchase price	-3	—
Liquid funds	20	31
	-283	-181

Beijer Ref AB
Q1 2021 – Published on 22 April 2021

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Parent company profit and loss account in summary, sek m	3 months 2021	3 months 2020	FY 2020
Operating income	—	—	54
Operating expenses	-20	-19	-79
Depreciation	-1	-1	-3
Operating profit	-21	-20	-28
Net financial income/expense	18	-96	10
Result of participations in Group companies	—	—	21
Profit before appropriations	-3	-116	3
Appropriations	—	—	53
Profit before tax	-3	-116	55
Tax	—	—	-7
Net profit	-3	-116	48
Parent company balance sheet in summary, sek m	31 March 2021	31 March 2020	31 Dec 2020
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ASSETS
Intangible fixed assets	6	6	6
Tangible fixed assets	5	4	5
Financial fixed assets	4 162	3 888	3 891
Current assets	377	995	771
Total assets	4 550	4 894	4 672
EQUITY AND LIABILITIES
Shareholders’ equity	1 787	1 847	1 789
Long-term liabilities	2 703	1 210	2 682
Current liabilities	60	1 837	201
Total equity and liabilities	4 550	4 894	4 672

Beijer Ref AB

Q1 2021 - Published on 22 April 2021

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Financial definitions

Δ%	Change in percentage.	Operating capital	Capital employed minus liquid funds, financial assets and other interest-bearing assets.
Capital employed	Balance sheet total with a deduction for non-interest-bearing liabilities and deferred tax liability.	Operating margin	Operating profit in relation to net sales.
Debt/equity ratio	Net debt in relation to equity. The objective is to show borrowing in relation to book value of equity.	Organic change	Comparative figures year over year adjusted for translation effects on consolidation and changes in the structure.
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.	Profit per share before / after dilution	Net profit in relation to average number of shares before/after dilution.
		R12	Rolling twelve is the latest 12 months.
Equity before / after dilution	Equity before / after dilution in relation to average number of outstanding shares	Return on capital employed	Profit before tax plus financial expenses (for each period) in relation to average capital employed.
Equity ratio	Equity at the end of the period in relation to balance sheet total.
Interest-bearing liabilities	Interest-bearing liabilities include interest-bearing provisions.	Return on equity	Earnings after tax (for each period) 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.
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.
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.	Return on operating capital	Operating profit (for each period) as a percentage of average operating capital.

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

Beijer Ref AB
Q1 2021 – Published on 22 April 2021
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Beijer Ref AB
Q1 2021 – Published on 22 April 2021

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.

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.

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

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.

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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

• The Interim Report for the second quarter 2021 will be published on 15 July 2021.
• The Interim Report for the third quarter 2021 will be published on 19 October 2021.
• The Interim Report for the fourth quarter 2021 will be published on 27 January 2022.

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
Q1 2021 – Published on 22 April 2021