Byggmax Group

Quarterly Report • Apr 15, 2011

Interim report January - March 2011

In the first quarter, Byggmax's sales increased by 14 percent and its profit before tax improved with SEK 7 M.

January 1 - March 31

• Net sales amounted to SEK 369.5 (324.5) M, up 13.9 percent
• The gross margin was 29.1 (29.7) percent
• EBIT totaled SEK -13.1 (-11.1) M
• The EBIT margin was -3.5 (-3.4) percent
• Profit after tax amounted to SEK -15.1 (-14.5) M
• Earnings per share amounted to SEK -0.2 (-0.3) per share

Significant events during the quarter

• During the quarter, three (two) new stores opened: Porvoo, Pori (Finland) and Lidköping (Sweden).

Earnings overview		January - March	12 months	Full year
	2011	2010	April 2010 - March 2011	2010
Net sales, SEK M	369.5	324.5	2,817.9	2,773.0
Gross margin, percent	29.1	29.7	29.7	29.7
EBIT, SEK M	-13.1	-11.1 (-8.01 )	272.8	274.8 (291.51 )
EBIT margin, percent	-3.5	-3.4 (-2.51 )	9.7	9.9 (10.51 )
Profit after tax, SEK M	-15.1	-14.5 (-12.51 )	171.6	172.2 (182.71 )
Earnings per share, SEK2	-0.2	-0.3 (-0.21 )	2.8	2.8 (3.01 )
Return on equity	-2.0	-4.3	32.2	31.7
Cash flow operating activities per share	-1.0	-0.8	3.2	3.4
Shareholders´equity per share2	12.1	6.0	12.1	12.3
Numbers of stores at the en of the period	76	63	76	73
New stores opened during the period	3	2	13	12

1 Earnings overview excluding listing costs 2 Comparative figures have been adjusted for the share split carried out on June 2, 2010.

President's comments on results

The 14-percent increase in total sales was attributable to new store openings and increased sales from existing stores. Sales in comparable stores increased by a healthy 4.4-percent. In addition, a less harsh winter than in the year-earlier period had a positive impact on sales, which were negatively affected by currency effects. Sales were weakest at the start of the quarter and strongest in February. The gross margin for the quarter was lower than in the year-earlier period, but higher than in the corresponding quarter of 2009. The low margins were due to downward price pressure on seasonal items that are traditionally strong in the winter period. The increase in the number of stores gave rise to an increase in overheads.

Goals and strategies

Byggmax plans to open five new stores in the second quarter of 2011. For the entire year, Byggmax plans to open 12 to 15 new stores six in Sweden, three to five in Norway and three to four in Finland.

The Annual General Meeting took place on April 1 in Stockholm. In conjunction with the AGM, the new service, online goods with direct delivery, was launched with an exhibition and the range will gradually be expanded during the year. At present, Byggmax holds a strong position in heavy building supplies and online goods furnishes Byggmax with a cost-efficient method of offering additional products, principally high-quality products, or in other words building supplies that have a high value in relation to their transport costs. The Annual General Meeting resolved to adopt an incentive program encompassing 20 senior executives. The strong interest in the program is evidence of great confidence in the company.

Outlook

The Nordic economies remain strong in the view of the majority of analysts. This state of affairs combined with a continued positive do-it-yourself trend favors Byggmax. The company continues to pursue its strategy of establishing successful new stores and strengthening its market position while remaining highly cost conscious.

Magnus Agervald President of Byggmax Group AB (publ)

BYGGmax in brief

Business concept

Byggmax business concept is to sell high-quality building supplies at the lowest price possible.

Business model and key factors for success

Byggmax is positioned as a discount provider of building materials in the Nordic DIY market. Since the start in 1993, the organisation has been characterized by the so called "Byggmax concept" which has been decisive fo the company's developtment. The concept is built on a limited product range, a resource efficient administration, strong company culture and competitive and effective prizing strategy as well as the stores distinguished shape and design.

Goals and strategies

Byggmax has determined it's long term goals for the Group as follows:

• organic growth to exceed 15 percent per year in net sales through expansion of the chain of stores and increased sales in comparable stores, and

•maintenance of an EBIT margin in relation to net sales that exceeds 11 percent.

Byggmax's strategy for achieving its financial goals is to expand the chain of stores in existing markets, to improve operating activities and to maintain continuous focus on business development.

Byggmax is planning on opening 12-15 new stores during 2011, six in Sweden, three to five in Norway and three to four in Finland. The image below shows how the store network has expanded since Byggmax was established in 1993.

Consolidated sales and earnings

January 1 - March 31

Revenues

The operation's net sales amounted to SEK 369,5 (324.5) M, up 13.9 percent. Operating income totaled SEK 370.0 (325.1) M, up 13.8 percent. Net sales for comparable stores3 rose 4.4 percent in local currency. Net sales amounted to SEK 297.4 (267.2) M in Sweden and SEK 72.1 (57.3) M in the other Nordic markets.

The sales increase of 13.9 percent was divided according to the following:
Comparable stores, local currency, percent	4.4
Non-comparable units, percent	11.4
Exchange rate effects, percent	-1.9
Total	13.9

The Group opened three (two) stores during the quarter. Accordingly, the total number of stores in the Group at March 31 2011 amounted to 76 (63).

EBIT

EBIT amounted to SEK -13.1 (-11.1) M. The EBIT margin was -3.5 (-3.4) percent. The gross margin amounted to 29.1 percent, compared with 29.7 percent for the same period the previous year. The low margins were primarily attributable to downward price pressure on seasonal items which are traditionally strong in the winter period.

Personnel costs and operating expenses increased by a total of SEK 11,7 M, primarily due to SEK 13.0 M in expenses for stores opened after the first quarter of 2010. The first quarter 2010 was burdened with expenses related to the IPO process (SEK 3.1 M).

EBIT

Profit after financial items totaled SEK -20.7 (-27.3) M. Net financial items amounted to an expense of SEK -7.6 (-16.2) M. The improvement in net financial items was attributable to low interest expenses subsequent to the conversion of half of the Group's shareholder loan to equity in June 2010.

Cashflow and financial position

Cash flow from operating activities for the January to March period amounted to SEK -59.8 (-44.2) M, down SEK 15.6 M compared with the year earlier period. The decline is primarily attributable to paid tax TAX 2010 (final tax TAX 2009 was paid in December 2009). At the end of the period, inventory amounted to SEK 371.8 (318.6) M. Compared with the end of the year earlier period, 13 new stores and inventory associated to these amounted to SEK 46.0 M. Construction of a property in Norrtälje is ongoing and was reported as an inventory item of SEK 8.7 M. The property in Norrtälje will be divested on completion.

At March 31, 2011 consolidated shareholders' equity amounted to SEK 732.7 (333.2) M. The Group's net indebtedness amounted to SEK 514.2 (392.4) M having increased by SEK 121.8 M compared with the year-earlier period. The increase in net indebtedness derived from half the Group's shareholder loan being replaced by an external bank loan in 2010. The equity/assets ratio was 43.1 (50.0) percent. Unutilized credits totaled SEK 104.2 (51.9) M.

Investments (excluding financial leasing) during the first quarter amounted to SEK 5.4 (4.5) M, of which SEK 1.1 (3.5) M comprised investments in new stores and SEK 2.6 (0.2) M related to IT equipment.

Acquisitions and establishments

Three new stores were opened during the period; Porvoo, Pori (Finland) and Lidköping (Sweden)

3 A store is classified as comparable as of the second year-end after the store was opened. Stores that are relocated to new premises in existing locations are handled in the same manner.

The Byggmax workforce

The number of employees arose to 611 (515) at the end of the period, due to an increase in the number of stores.

Seasonal fluctutations

Consumer demand for basic building goods and the company´s operations are affected by strong seasonal variations. As a result of the weather´s impact on demand, Byggmax´s sales and cash flow are generally higher in the second and third quarters, when about two thirds of the company´s sales are generated, while these usually decline in the fourth and first quarters. Although seasonal variations do not normally affect Byggmax´s earnings and cash flow from year to year, earnings and cash flow may be impacted during the year by unusually harsh or mild weather conditions, or by excessive or insufficient precipitation. Byggmax endeavors to balance the seasonal effects during the year by launching new products that are not as susceptible to seasonal variations.

Risks and uncertainties

A number of factors can impact Byggmax's earnings and operations. Most of these factors can be managed through internal

procedures, while certain factors are largely governed by external circumstances. For a more detailed description of the Group's risks and risk management, we refer to the Annual Report for 2010. Besides the risks described in the Annual Report, no material risks arose during the period.

Parent Company

The Parent Company is a holding company. Parent Company sales amounted to SEK 0.1 (0.1) M during the first quarter. The Parent Company reported a loss/profit after financial items of SEK -4.0 (-14.3) M for the first quarter of 2011. The company's earnings 2010 were charged with expenses totaling SEK 3.1 M associated with preparatinos for the stock exchange listing. The improvement in net financial items was attributable to low interest expenses subsequent to the conversion of half of the Group's shareholder loan to equity in June 2010.

Events after the close of the reporting period There were no significant events after the close of the reporting period.

Accounting policies

Byggmax Group AB (publ) applies International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report was prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1.3 Supplementary Accounting Rules for Groups.

Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act and recommendation RFR 2.3 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies were applied for the Parent Company as for the Group, except in the cases stated under "Parent Company accounting policies" in Note 2.22 of the Annual Report for 2010.

The following amendments of standards became obligatory for the first time for the fiscal year that commenced on January 1, 2011. The Group's and Parent Company's assessments of the impact of these new standards and interpretations are specified below.

Revised IAS 24 Related Party Disclosures issued in November 2009 replaced IAS 24 Related Party Disclosures issued in 2003. The Group applies the revised standard from and including January 1, 2011

For a more detailed description of the accounting policies applied for the Group and the Parent Company in this interim report, refer to Notes 1-4 of the Annual Report for the 2010 fiscal year.

All figures in parentheses above and below refer to the corresponding period or date in the preceding year.

Stockholm April 14, 2011

Magnus Agervald President

This report is unaudited.

Financial calender

Second quarter 2011 July 14, 2011 Third quarter 2011 October 19, 2011

Contacts

For further information, please contact the following individuals by telephone on +46-8-514 930 60 or by calling the direct numbers listed below:

Magnus Agervald, President Tel: +46-76-11 90 020 magnus.agervald@byggmax.se

Pernilla Valfridsson, CFO Tel: +46-76-11 90 040 pernilla.walfridsson@byggmax.se

Background information about Byggmax and press photos are available at www.byggmax.com

Byggmax Group AB (publ) Box 6063, 171 06 Solna Visiting address: Armégatan 40 Tel: +46-8-514 930 60, fax: +46-8-514 930 79, e-mail: info@ byggmax.se Corporate Registration Number: 556656-3531 Registered office: Solna

Consolidated summary of comprehensive income

Amount in SEK M	Jan - Mar	Jan - Mar	12 months	Jan - Dec
			April 2010 -
Note	2011	2010	March 2011	2010
Operating income
Net Sales 1	369.5	324.5	2,817.9	2,773.0
Other operating income	0.5	0.6	3.0	3.1
Operating income	370.0	325.1	2,820.9	2,776.1
Operating expenses
Goods for sale	-262.1	-228.2	-1,982.1	-1,948.2
Other external and operating expenses	-60.3	-56.0	-303.4	-299.1
Personnel costs	-50.6	-43.1	-222.2	-214.7
Depreciation and ammortization of tangible and
intangible fixed assets	-10.0	-8.9	-40.3	-39.2
Total operating expenses	-383.1	-336.2	-2,548.1	-2,501.3
EBIT	-13.1	-11.1	278.8	274.8
Loss from financial items	-7.6	-16.2	-28.8	-37.4
Profit before tax	-20.7	-27.3	244.0	237.4
Income tax	5.6	12.8	-72.4	-65.2
Profit for the period	-15.1	-14.5	171.6	172.2
Other comprehensive income for the period
Translation differences	-0.8	-0.6	-3.3	-3.2
Total other comprehensive income for the period	-0.8	-0.6	-3.3	-3.2
Total comprehensive income for the period	-15.8	-15.1	168.3	169.0
Earnings per share, SEK2	-0.2	-0.3	2.8	2.8
Average number of share, 000s2	60,737	55,259	59,808	58,458
Number of shares at the end of the period2	60,737	55,269	60,737	60,737

2 Comparative figures have been adjusted for the share split carried out on June 2, 2010.

Consolidated summary of statement of financial position

Amounts in SEK M Note	Mar 2011	Mar 2010	Dec 2010
ASSETS
Fixed assets
Intangible fixed assets	1,065.8	1,061.1	1,064.2
Tangible fixed assets	123.3	109.9	126.0
Financial fixed assets	17.2	13.7	17.2
Total fixed assets	1,206.3	1,184.6	1,207.4
Current assets
Inventories	371.8	318.5	350.5
Derivatives	3.8	1.4	3.5
Current receivables	86.2	64.2	66.5
Cash and cash equivalents	33.4	27.6	34.1
Total current assets	495.2	411.7	454.6
TOTAL ASSETS	1,701.5	1,596.2	1,662.0
Amounts in SEK M Note	Mar 2011	Mar 2010	Dec 2010
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	732.7	333.2	748.5
LIABILITIES
Borrowing from credit institutions	197.6	312.3	239.3
Loans from related parties	0.0	468.9	0.0
Derivative instruments	0.0	7.3	0.0
Deferred tax liabilities	53.8	47.8	53.6
Long-term liabilities	251.3	836.2	292.9
Borrowing from credit institutions	350.1	107.8	240.0
Accounts payable	290.0	247.4	268.9
Current tax liabilites	0.0	9.3	42.4
Derivative instruments	5.8	2.6	4.9
Other liabilities	16.4	11.8	8.3
Accrued expenses and prepaid income	55.1	48.0	56.1
Current liabilities	717.4	426.8	620.6
TOTAL SHAREHOLDERS' EQUITY AND LIABILITES	1,701.5	1,596.2	1,662.0
Pledge assets - Shares in subsidiaries	645.8	449.1	658.7
Pledge assets - Chattel mortgages	120.0	45.5	120.0
Contingent liabilities	None	None	None

Consolidated statement of changes in shareholders' equity

Amounts in SEK M	Note	Mar 2011	Mar 2010	Dec 2010
Opening balance at the beginning of the period		748.5	337.8	337.8
Comprehensive income
Translation differences		-0.8	-0.6	-3.2
Profit for the period		-15.1	-14.5	172.2
Total comprehensive income		-15.8	-15.1	169.0
Transactions with new shareholders
New issue		0,0	0.0	1.5
Offset issue, including reversal of discounting		0.0	0.0	231.0
Unconditional shareholders' contribution		0.0	9.0	0.0
Non-cash issue		0.0	1.5	9.0
Total transactions with shareholders		0.0	10.5	241.5
Shareholders' equity at the end of the period		732.7	333.2	748.5

Consolidated cash flow statement

Amounts in SEK M	Jan - Mar	Jan - Mar	12 months	Jan - Dec
			April 2010 -
	2011	2010	March 2011	2010
Cash flow from operating activities
Operating activities	-13.1	-11.1	272,8	274.8
Non-cash items
- Depreciation/amortization of tangible and intangible
fixed assets	10.0	8.9	40.1	38.9
- Capital gains from divestment of subsidiaries	0.0	0.0	0.0	0.0
- Other non-cash items	-0.4	-1.3	-1.0	-1.8
Interest received	1.2	3.5	4.5	6.8
Interest paid	-8.3	-8.8	-31.8	-32.3
Tax paid	-47.2	-9.5	-82.5	-44.8
Cash flow from operating activities before changes in
working capital	-57.7	-18.2	202.1	241.6
Changes in working capital
Increase/decrease in inventories and work in process	-29.8	-21.6	-61.9	-53.8
Increase/decrease in other current receivables	-11.2	36.2	-13.4	34.0
Increase/decrease in other current payables	38.8	-40.6	66.0	-13.4
Cash flow from operating activities	-59.8	-44.2	192.8	208.4
Cash flow from investing activities
Investment in intangible fixed assets	-2.8	-0.3	-9.5	-7.0
Investment in tangible fixed assets	-2.7	-4.3	-22.9	-24.5
Divestment of tangible fixed assets	0.0	0.0	0.9	0.9
Acquisitions of financial fixed assets	0.0	0.1	0.0	0.0
Investment in other financial fixed assets	0.0	-0.5	-9.9	-10.4
Investment in subsidiaries	0.0	7.2	-1.0	6.2
Cash flow from investing activities	-5.5	2.3	-42.4	-34.7
Cash flow from financing activities
New issue	0.0	0.0	0.0	0.0
Change in overdraft facilities	71.1	43.1	202.1	174.2
Borrowings	0.0	0.0	249.7	249.7
Amortization of loans	-6.4	-5.1	-606.3	-605.0
Cash flow from financing activities	64.7	38.0	-154.4	-181.1
Cash flow for the period	-0.6	-4.0	-4.0	-7.4
Cash and cash equivalents at the beginning of the period	20.9	28.2	24.3	28.2
Cash and cash equivalents at the end of the period4	20.2	24.3	20.2	20.9

4 Note that cash and cash equivalents in the cash flow are adjusted for restricted bank funds

Parent Company income statement

Amounts in SEK M	Jan - Mar	Jan - Mar	12 months	Jan - Dec
Note	2011	2010	April 2010 - March 2011	2010
Operating income
Operating income	0.1	0.1	0.3	0.3
Operating expenses
Other external expenses	-1.0	-3.4	-16.4	-18.9
Personnel costs	-0.1	-0.1	-0.3	-0.3
Total operating expenses	-1.1	-3.5	-16.8	-19.2
EBIT	-1.0	-3.4	-16.5	-18.8
Loss from financial items	-3.0	-10.9	-13.1	-21.0
Loss before tax	-4.0	-14.3	-29.6	-39.9
Tax on loss	1.1	0.3	11.2	10.5
Loss for the period	-2.9	-13.9	-18.4	-29.4
Other comprehensive income for the year
Translation differences	0.0	0.0	0.0	0.0
Total comprehensive income/loss for the year	-2.9	-13.9	-18.4	-29.4

Parent Company balance sheet

Amounts in SEK M Note	Mar 2011	Mar 2010	Dec 2010
ASSETS
Fixed assets
Financial fixed assets	712.1	674.1	712.1
Total fixed assets	712.1	674.1	712.1
Current assets
Total current assets	3.4	2.1	13.5
TOTAL ASSETS	715.5	676.2	725.6
Amounts in SEK M Note	Mar 2011	Mar 2010	Dec 2010
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	445.0	204.1	447.9
Provisions	0.0	7.4	0.0
Total long-term liabilities	170.0	460.3	210.0
Current liabilities	100.5	4.3	67.7
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	715.5	676.2	725.6
Pledge assets	358.0	320.1	358.0
Contingent liabilities	None	None	None

Notes to the interim report

Note 1 Segments

Amounts in SEK M	Jan - Mar	Jan - Mar	12 months	Jan - Dec
			April 2010 -
Net sales	2011	2010	March 2011	2010
Nordic region	369.5	324.5	2,817.9	2,773.0

The Group has only one identified operating segment, which is the Nordic segment.

Note 2 Disclosures about transactions with related parties

Related parties to Byggmax are Lindorff Customer Services AB and Dustin Financial Services AB. Purchases carried out during the period did not amount to any significant amounts. Transactions were conducted on market-based terms.

Note 3 Disclosure on the acquisition of Svea Distribution AB

During the first quarter of 2010, an acquisition was made of Svea Distribution AB. The acquisition was completed in March 2011 and the purchase consideration has been paid.

Note 4 Income per quarter

	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4	Q 1
Amounts in SEK M	2009	2009	2009	2009	2010	2010	2010	2010	2011
Net Sales	299.8	733.1	896.5	514.1	324.5	856.2	1,043.2	549.1	369.5
Gross margin, percent	27.9	29.9	30.2	29.9	29.7	29.1	30.3	29.7	29.1
EBIT	0.6	88.7	145.6	37.8	-11.1	82.6	165.4	37.9	-13.1
EBIT margin, percent	0.2	12.1	16.2	7.4	-3.4	9.6	15.9	6.9	-3.5
Working capital	-7.1	-186.4	-167.9	21.5	66.1	-200.7	-148.9	41.1	87.7
Return on equity	-2.5	28.0	33.4	5.3	-4.3	11.7	16.5	2.7	-2.0
Cashflow from operating activi
ties per share	-0.9	4.8	1.7	-2.6	-0.8	5.5	1.1	-2.4	-1.0
Shareholders' equity per share	3.1	4.2	5.8	6.1	6.0	10.2	12.0	12.3	12.1
Number of stores	54	55	60	61	63	68	73	73	76

Definition of key ratios and figures

• Cash flow from operating activities per share: cash flow from operations divided by the number of shares at the balance-sheet date
• Earnings per share: profit after tax / number of outstanding share at the end of the accounting period
• EBIT margin: EBIT / net sales
• Return on equity: earnings after tax divided by average equity
• Shareholders' equity per share: Shareholders´equity divided by the number of shares on the balance-sheet date
• Shareholders' equity ratio: shareholders' equity / total assets

• Working capital: working capital assets (inventories, current receivables) – working capital liabilities (accounts payable, current tax liabilities, other liabilities, accrued expenses and deferred income)

Definition of market specific ratios and figures

• Comparable stores: a store is classified as comparable as of the second year-end after the store was opened. Stores that are relocated to new

premises in existing locations are handled in the same manner

• Gross margin: (net sales - goods for sale) / net sales

The information in this Interim Report is that which Byggmax Group (publ) is required to disclose under Sweden's Securities Market Act. It will be released for publication at 8.00 (CET) on 15 April 2011.