FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2023
===== SIDA 1 ===== Beijer Ref AB Q1-2023 English version ===== SIDA 2 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 2 First quarter • Organic sales increased 14.5 per cent in the quarter compared to the previous year. Acquisition effects amounted to 30.2 per cent and currency effects were 5.8 per cent. Net sales increased by 50.5 per cent and amounted to SEK 7,378 million (4,903). • EBITA amounted to SEK 702 million (407), which is an increase of 72.4 per cent compared to the same period last year. The EBITA margin amounted to 9.5 per cent (8.3). • This is Beijer Ref’s best first quarter ever, excluding items affecting comparability, in both absolute terms and margin, based on the current structure. • The first quarter includes non-recurring costs related to the temporary financing regarding the acquisition of the North American operation Heritage Distribution of SEK 138 million, which is reported under the item “ Net financial income/expense”. • Operating cash flow amounted to SEK -209 million (-295) during the quarter. Operating cash flow in the quarter was still affected by the effects of the unstable supply chain in 2022. • Profit per share after dilution, and adjusted for items affecting comparability in the net financial income/expense, amounted to SEK 1.08 (0.65), which is an increase of 66.6 per cent. • The previously announced acquisitions of the HVACR company Heritage Distribution (North America), as well as Transport Cooling (South Africa) were completed in the first quarter. Heritage Distribution was completed and consolidated per January 20. • The announced rights issue was completed during the quarter. The rights issue was subscribed to 99.7 per cent with the support of subscription rights. Other shares were allotted to those who subscribed for shares without subscription rights. Overall, the rights issue was oversubscribed by 44 per cent. The total amount in tables and statements might not always sum-up as there are rounding differences. The aim is to have each line item correspon - ding to the source and it might therefore be rounding differences in the total. 1 Comparative figures are recalculated as a result of the rights issue that was completed in March 2023. 2 The measure has been adjusted for items affecting comparability regarding transaction costs, financial costs and tax related to the acquisition of Heritage Distribution. Key figures, SEK M Q1-23 Q1-22 ∆% R12 FY-22 Net sales 7 378 4 903 50.5 25 113 22 638 Organic sales, % 14.5 15.8 16.4 EBITA excluding items affecting comparability 702 407 72.4 2 511 2 217 EBITA margin excluding items affecting comparability, % 9.5 8.3 10.0 9.8 Items affecting comparability - - -245 -245 EBITA 702 407 72.4 2 266 1 971 Operating profit excluding items affecting comparability (EBIT) 666 393 69.6 2 418 2 145 Profit margin excluding items affecting comparability, % 9.0 8.0 9.6 9.5 Operating profit (EBIT) 666 393 69.6 2 173 1 900 Net profit 355 273 30.1 1 348 1 266 Profit per share after dilution, SEK 1 Excluding items affecting comparability 2 1.08 0.65 66.6 3.97 3.54 Including items affecting comparability 0.82 0.65 27.0 3.18 3.00 Operating cash flow -209 -295 - 262 176 Return on operating capital, excluding items affecting comparability, (R12), % - - - 13.7 16.2 Return on equity (R12), % - - - 13.6 20.4 Beijer Ref AB Q1-2023 ===== SIDA 3 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 3 During the first quarter, we have continued to build on the success of 2022. All markets have shown positive growth and total sales amounted to SEK 7,378 million, which is an increase of 50 per cent over the same period last year, with organic growth of 15 per cent. Operating profit (EBITA) amounted to SEK 702 million, which is an increase of 72 per cent compared to the same period last year. All segments recorded strong organic growth: HVAC 17 per cent, OEM 24 per cent and Commercial and Industrial Refrigeration 10 per cent. During the quarter, we continued to have good demand for air/ air (AC products), primarily for heating. Increased awareness of energy efficiency and improved indoor environments are contributing factors. Also, the rising electricity prices in Europe have led to more and more people starting to see the cost benefits of using air/air as a complement to heating. We continue to focus on creating simple and seamless e-commerce experiences for our customers, resulting in increased sales and customer satisfaction. During the quarter, our digital sales continued their very good growth and we have had good development on both existing and new e-commerce platforms. Sales increased by 40 per cent, compared with the same period last year. Uncertain supply chains are something the industry is still struggling with and which have had a negative impact on our warehouse stocks; we continue to see improvements, especially regarding lead times for products and components. We expect a normalisation of warehouse stocks, adjusted for our seasonal variations, in the second half of 2023. I am pleased to inform that during the quarter (January 20) we completed the acquisition of the North American HVAC company Heritage Distribution, subject to customary completion conditions. This acquisition is an important step for Beijer Ref and reflects our commitment to expanding our global reach and meeting the needs of our customers in all corners of the world. Heritage Distribution has been integrated in line with our expec - tations and reported good development in the first quarter. The integration of AAD (Australia) has also gone according to plan. The Beijer Ref Exchange Programme for 2023 has been concluded. The programme has enabled participants to gain valuable insights from other parts of the organisation, learn new skills and build relationships with colleagues from different countries. A big thank you to all participants whose contributions have been crucial to the success of the program. CEO comments We continue to build on the successes from 2022 Finally, I would like to take this opportunity to welcome Heritage Distribution to the Beijer Ref family. They have an ambitious and dedicated team that brings many years of industry experience. Europe and the North America are now moving towards their summer season and, with a well thought-out strategy behind us and purposeful employees, we continue to create good condi - tions for long-term growth. CEO Christopher Norbye ===== SIDA 4 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 4 50% Sales increase 1 Acquisition effect is calculated 12 months after the date of takeover. For more information regarding Beijer Ref’s acquisitions, please see acquisition table on p. 17. 2 Comparative figures are recalculated as a result of the rights issue that was completed in March 2023. 3 The measure has been adjusted for items affecting comparability regarding transaction costs, financial costs and tax related to the acquisition of Heritage Distribution. 15% Organic growth 72% EBITA-increase 67%* Increase result/share Net sales Organic sales increased 14.5 per cent in the quarter compared to the previous year. Acquisition effects amounted to 30.2 per cent and currency effects were 5.8 per cent. Net sales increased by 50.5 per cent to SEK 7,378 million (4,903). The EMEA and APAC regions reported growth of 26 per cent and 34 per cent, respectively, in the quarter. North America reported sales better than expected, in terms of seasonal variations. The first quarter is seasonally weaker, but this year the quarter has been influenced by good growth in the HVAC and OEM prod - uct segments, which reported organic growth of 17 per cent and 24 per cent respectively. Commercial and Industrial Refrigeration continues its stable development and reported organic growth of 10 per cent in the quarter. Result The group’s EBITA totalled SEK 702 million (407) during the first quarter, which is an increase of 72.4 per cent. Positive exchange rate effects of SEK 22.8 million (13.6) are included in EBITA. The EBITA margin amounted to 9.5 per cent (8.3). The improved profit is mainly due to higher organic growth and contributions from acquired companies. Net financial income/expense amounted to -207 MSEK (-25) affected by non-recurring costs relating to the temporary financ - ing regarding the acquisition of the North American operation Heritage Distribution of 138 MSEK. In addition, the net financial income/expense is affected by a higher indebtedness and interest rate as well as by a higher interest burden from IFRS 16, which in part comes from acquired operations. The tax rate in the quarter amounted to 23 per cent (26). Profit before tax was SEK 459 million (367). Profit for the period totalled SEK 355 million (273). Profit per share after dilution and before items affecting comparability amounted to SEK 1.08 (0.65), which is an increase of 66.6 per cent. Profit per share after dilution amounted to SEK 0.82 (0.65). Comparative figures related to profit per share are recalculated as a result of the rights issue that was completed in March 2023. Financial overview, SEK M Q1-23 Q1-22 ∆% R12 FY-22 Net sales 7 378 4 903 50.5 25 113 22 638 Organic change, % 14.5 15.8 16.4 Change through acquisition 1, % 30.2 10.0 10.7 Exchange rate fluctuation, % 5.8 5.6 6.8 Change total, % 50.5 31.4 33.9 EBITA, excluding items affecting comparability 702 407 72.4 2 511 2 217 EBITA margin excluding items affecting comparability, % 9.5 8.3 10.0 9.8 Items affecting comparability - - -245 -245 EBITA 702 407 72.4 2 266 1 971 Operating profit excluding items affecting comparability (EBIT) 666 393 69.6 2 418 2 145 Profit margin excluding items affecting comparability, % 9.0 8.0 9.6 9.5 Operating profit (EBIT) 666 393 69.6 2 173 1 900 Net financial income/expense , excluding items affecting comparability -69 -25 -222 -179 Net financial income/expense , items affecting comparability -138 - -138 - Net financial income/expense -207 -25 -360 -179 Tax -104 -95 -465 -456 Net profit 355 273 30.1 1 348 1 266 Profit per share after dilution, SEK 2 Excluding items affecting comparability 3 1.08 0.65 66.6 3.97 3.54 Including items affecting comparability 0.82 0.65 27.0 3.18 3.00 First quarter 2023 *Excluding items affecting comparability ===== SIDA 5 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 5 Operating cash flow and Net debt, SEK M Q1-23 Q1-22 R12 FY-22 Operating profit excl. items affecting comparability (EBIT) 666 393 2 418 2 145 Depreciation/write-downs on tangible assets 161 119 542 500 Amortisation/write-downs on intangible assets 36 14 93 72 EBITDA excluding items affecting comparability 863 526 3 054 2 717 Changes in working capital -892 -730 -2 132 -1 970 Investments in tangible fixed assets -65 -40 -220 -195 Payments related to amortisation of lease liabilities -114 -91 -408 -386 Non-cash generated items -2 40 -32 10 Operating cash flow -209 -295 262 176 Net debt 7 259 5 363 7 204 Of which: Pension debt 110 144 110 Leasing liabilities, according to IFRS 16 2 318 1 521 1 814 Net debt excluding pension and leasing liabilities 4 832 3 698 5 280 Authorised credit limit 10 010 4 990 22 620 Of which remains to be utilised 3 647 839 16 930 Net debt/EBITDA 2.58 2.70 2.92 Net debt/EBITDA excluding items affecting comparability 2.38 2.70 2.65 Net debt/EBITDA excl leasing liabilities , pension liability and items affecting comparability 1.86 2.30 2.30 Cash flow and net debt Operating cash flow amounted to SEK -209 million (-295). Operating cash flow in the quarter was still affected by the effects of the unstable supply chain in 2022. Our work to normalise our operating capital continues and will only have a significant effect in the second half of 2023. Net debts at the end of the quarter amounted to SEK 7,259 million (5,363) and were affected by a higher tie-up of working capital, as well as by acquisition activities. Net debt in relation to EBITDA amounted to 2.58 (2.70). Net debt in relation to adjusted EBITDA amounted to 2.38 (2.70). Excluding lease liabilities (IFRS 16) and pension liabilities, net debt amount to SEK 4,832 million (3,698). Adjusted net debt in relation to adjusted EBITDA amounted to 1.86 (2.30). At the end of the period, the company had credit facilities amounting to SEK 10,010 million (4,990), of which unutilised credits amounted to SEK 3,647 million (839). For approximately two months in the quarter, a bridge facility was used, amounting to SEK 13,600 million, which was included in connection with the acquisition of Heritage Distribution. The bridge facility was repaid using the proceeds from the rights issue. ===== SIDA 6 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 6 0 1 000 2 000 3 000 4 000 5 000 6 000 Operating segment EMEA Excluding items affecting comparability, SEK M Q1-23 Q1-22 ∆% R12 FY-22 Net sales 4 903 3 886 26.2 19 249 18 232 Of which exchange rate fluctuation , % 5.8 5.8 6.1 EBITA 490 340 44.0 2 141 1 991 EBITA margin, % 10.0 8.8 11.1 10.9 EBIT 476 329 44.8 2 080 1 932 EBIT, % 9.7 8.5 10.8 10.6 Sales increased by 26 per cent in the quarter. Good growth in all regions except Africa, which reported slightly lower growth. OEM reported a growth of 38 per cent and Commercial and Industrial Refrigeration a growth of 20 per cent. HVAC reported a growth of 30 per cent with good sales, especially in Central and Southern Europe. Currency effects contributed 5.8 per cent during the quarter. EBITA increased by 44 per cent to SEK 490 million (340), which mainly can be explained by good organic growth. The EBITA margin amounted to 10.0 per cent (8.8). During the quarter, the acquisition of the South African company Transport Cooling was completed and consolidated from 1 February. Net sales per product area Commercial and Industrial Refrigeration 42% (44) HVAC 50% (49) Q1 2022 OEM 8% (7) Q1 2023 Reported sales per product group Commercial and Industrial Refrigeration OEM HVAC Total 20% 38% 30% 26% SEK M ===== SIDA 7 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 7 0 200 400 600 800 1 000 1 200 1 400 1 600 Operating segment APAC Excluding items affecting comparability, SEK M Q1-23 Q1-22 ∆% R12 FY-22 Net sales 1 389 1 039 33.6 4 822 4 473 Of which exchange rate fluctuation , % 5.5 5.3 9.5 EBITA 141 96 47.0 422 377 EBITA margin, % 10.1 9.2 8.8 8.4 EBIT 137 93 46.4 410 367 EBIT, % 9.8 9.0 8.5 8.2 Commercial and Industrial Refrigeration 30% (34) HVAC 55% (48) OEM 16% (18) 16% 15% 53% 34% Sales during the quarter increased by 34 per cent compared to the same period last year. Australia in particular reported a strong quarter. HVAC reported growth of 53 per cent coming from acqui- sitions (AAD) and organic growth. OEM reports a growth of 15 per cent. Commercial and Industrial Refrigeration increased by 16 per cent during the quarter. Currency effects contributed 5.5 per cent during the quarter. EBITA increased by 47 per cent to SEK 141 million (96), which mainly can be explained by good organic growth and acquisitions. The EBITA margin amounted to 10.1 per cent (9.2). Net sales per product area Reported sales per product group Commercial and Industrial Refrigeration OEM HVAC Total Q1 2022 Q1 2023 SEK M ===== SIDA 8 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 8 Operating segment North America Excluding items affecting comparability, SEK M Q1-23 Q1-22 ∆% R12 FY-22 Net sales 1 118 - 1 118 - EBITA 121 - 121 - EBITA margin, % 10.9 - 10.9 - EBIT 104 - 104 - EBIT, % 9.3 - 9.3 - Heritage Distribution was consolidated from January 20 and the first quarter came in better than expected in terms of both sales and margin. Sales were SEK 1,118 million and an EBITA of SEK 121 million with an EBITA margin of 10.9 per cent. The first and fourth quarters are seasonally the weakest quarters. The market was characterised by lower volumes, above all in new construc- tion, while the replacement market and spare parts sales continue to be stable (majority of sales). There is a continuing component shortage, above all within com- mercial products but also within the replacement market related to the new environmental requirements. We expect this situation to improve during the latter part of the year. We continue to invest in our new platform in North America across systems, people, products and integration to drive our strategic agenda. ===== SIDA 9 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 9 Significant events during the quarter The previously announced acquisitions of the HVACR company Heritage Distribution (North America) and Transport Cooling (South Africa) were completed during the first quarter. The announced rights issue comprising 126,781,856 class B shares was completed in March. SEK 13,946 million has been raised through the issue. Costs for the issue net after tax amounted to SEK 186 million. The total impact on equity thus amounts to SEK 13,760 million. Significant events after the quarter On April 25, Beijer Ref entered into a binding agreement to acquire 70 per cent of the shares in Condex, with an option to acquire the remaining share. Annual General Meeting and dividend The Annual General Meeting is held in Malmö on 25 April 2023. The board proposes a dividend of SEK 477 million (419), corre - sponding to 38 per cent (43) of the net profit for 2022. Sustainability Sustainability is a well-integrated part of Beijer Ref. Doing business based on sound standards is a responsibility that the group takes very seriously, while at the same time it is woven in as a natural approach in all parts of the organisation. Beijer Ref’s sustainability strategy is based on the UN’s sustainable develop - ment goals in Agenda 2030, which cover economy, society and the environment. Beijer Ref believes that it is in the environmental field that Beijer Ref can make the biggest difference. In order to further strength - en the work to develop environmentally friendly refrigeration technology, the group measures the proportion of Beijer Ref’s OEM sales that is environmentally friendly. The goal is for it to increase from today’s 39 per cent to 50 per cent by 2025. On our website and in the annual report, we give more information about our goals and how we perform in relation to the goals. Risk description Beijer Ref group’s operations are affected by a number of external factors whose effects on the group’s operating profit can be monitored to varying degrees. The group’s operations depend on general economic developments, which govern demand for Beijer Ref’s products and services. 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 etc., are continuously analysed. If necessary, measures are taken to reduce the group’s risk exposure. In its operations, Beijer Ref is exposed to financial risks such as foreign exchange risk, interest rate risk and liquidity risk. The parent company’s risk pattern is the same as that of the group. For further information, see the group’s annual report. Accounting principles This interim report was prepared in accordance with IAS 34, the Swedish Annual Reports 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 instruments A financial asset or financial liability is recognised in the balance sheet when the company becomes a party to the instrument’s contractual terms. A financial asset is removed from the balance sheet once all the benefits and risks associated with ownership have been transferred. A financial liability is removed from the balance sheet when the obligation in the agreement is fulfilled or otherwise concluded. Financial instruments are initially valued at fair value and then at fair value or accrued acquisition value depending on clas - sification. Financial instruments reported at acquisition value are initially reported at an amount corresponding to the fair value of the instrument with an addition for transaction costs. Financial instruments reported at fair value are initially reported at an amount corresponding to the fair value of the instrument; transaction costs are expensed directly. A financial instrument is classified when first reported based on the purpose for which it has been acquired. The classification determines how the financial instrument is measured after the first entry as described below. All financial derivative instruments are reported on an ongoing basis at fair value. Purchases and sales of financial assets are recognised on the transaction date, which is the date when the group commits to purchase or sell the asset. Other Related party transactions No significant changes have occurred for the group or for the parent company regarding transactions or relationships with related parties, compared to what is described in Note 32 of the Annual Report for 2022. Key assessments and assumptions for accounting purposes The management and board make assessments and assump - tions about the future. These assessments and assumptions affect reported assets and liabilities, income and expenses and other information provided. These assessments are based on historical experience and the different assumptions deemed reasonable under the circumstances. The areas identified as important have not changed since the 2022 annual report was issued and are described in more detail in Note 4. ===== SIDA 10 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 10 This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, at 12.00 CET on April 25, 2023. Telephone conference Q1 2023 The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the first quar - ter of 2023. The presentation is held in English. The meeting is on April 25 at 13.30 CET. Connect to the presentation at the link below. Webcast: https://financialhearings.com/event/46503 To participate in the telephone conference, call the number: SE: +46 8 505 163 86 US: +1 412 317 6300 UK: +44 20 319 84884 Pin code: 9905201# The presentation will also be available on the company’s website www.beijerref.com from 12.00 on April 25. This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors. This interim report has not been the subject of examination by the Company’s Auditors. Malmö April 25, 2023 Beijer Ref AB (publ) Christopher Norbye, CEO For more information on this report: Ulf Berghult, CFO Telephone 040-35 89 00 E-mail ubt@beijerref.com Niklas Willstrand, Global Corporate Communications Manager Telephone 040-35 89 00 E-mail nwd@beijerref.com ===== SIDA 11 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 11 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Financial overview Net sales per product area Net sales per segment North America 15% (-) R12 Commercial and Industrial Refrigeration 36% (42) APAC 19% (21) HVAC 56% (49) EMEA 66% (79) Quarter OEM 8% (10) 0 5 000 10 000 15 000 20 000 25 000 30 000 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net sales, SEK M Net debt/EBITDA excl. items aff. comparability Operating cash flow, SEK M EBITA excl. items aff. comparability, SEK M 0,0 0,5 1,0 1,5 2,0 2,5 3,0 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Organic sales per product group 10% 24% 17% 15% Profit per share excl. items aff. comparability, SEK Q QQ QQR12 R12Ratio R12 -400 -200 0 200 400 600 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 500 1 000 1 500 2 000 2 500 3 000 0 100 200 300 400 500 600 700 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Commercial and Industrial Refrigeration OEM HVAC Total Q1 2022 Q1 2023 SEK M ===== SIDA 12 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 12 Summarised profit and loss account, SEK M Q1-23 Q1-22 R12 FY-22 Net sales 7 378 4 903 25 113 22 638 Other operating income 26 22 149 145 Operating expenses -6 540 -4 399 -22 453 -20 312 Depreciation and write-down of intangible and tangible fixed assets -197 -133 -635 -571 Operating profit (EBIT) 666 393 2 173 1 900 Net financial income/expense -207 -25 -360 -179 Profit before tax 459 367 1 813 1 721 Tax -104 -95 -465 -456 Net profit 355 273 1 348 1 266 Net profit attributable to: The parent company’s shareholders 351 270 1 330 1 248 Non-controlling interests 4 3 18 17 Net profit per share before diluation, SEK 1 0.82 0.65 3.18 3.00 Net profit per share after diluation, SEK 1 0.82 0.65 3.18 3.00 The Group’s summarised report on other comprehensive income, SEK M Q1-23 Q1-22 R12 FY-22 Net profit 355 273 1 348 1 266 Other comprehensive income: Items which will not be reversed in the profit and loss account -1 -4 51 48 Income tax relating to components in above item 0 1 -14 -13 Items which can later be reversed in the profit and loss account -87 208 313 608 Income tax relating to components in above items 11 -3 25 11 Total comprehensive income for the period 279 475 1 723 1 919 Attributable to: The parent copmany’s shareholders 275 477 1 690 1 892 Non-controlling interests 4 -2 33 27 1 Comparative figures are recalculated as a result of the rights issue that was completed in March 2023. ===== SIDA 13 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 13 Summarised balance sheet, SEK M 31 Mar 23 31 Mar 22 31 Dec 22 ASSETS Intangible fixed assets 16 663 3 955 5 484 Tangible fixed assets 1 492 724 872 Right of use assets 2 271 1 484 1 771 Deferred tax asset 333 240 299 Other fixed assets 167 155 167 Total fixed assets 20 926 6 558 8 592 Inventories 10 589 6 035 7 389 Trade debtors 4 821 3 279 3 681 Other receivables 683 695 685 Liquid funds 1 689 860 1 518 Total current assets 17 781 10 870 13 272 Total assets 38 707 17 427 21 864 EQUITY AND LIABILITIES Equity 20 675 5 743 6 714 Total equity 20 675 5 743 6 714 Long-term liabilities 7 023 5 435 6 975 Deferred tax liabilities 848 175 245 Total long-term liabilities 7 870 5 610 7 220 Trade creditors 3 896 2 696 2 586 Other liabilities 6 265 3 378 5 344 Total current liabilities 10 161 6 075 7 930 Total equity and liabilities 38 707 17 427 21 864 Of which interest-bearing liabilities 8 948 6 223 8 722 ===== SIDA 14 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 14 Equity, SEK M 31 Mar 2331 Mar 23 31 Mar 2231 Mar 22 31 Dec 2231 Dec 22 Opening balance 6 714 5 266 5 266 Net profit 355 273 1 266 Other comprehensive income for the period -76 202 654 Total comprehensive income for the period 279 475 1 919 Rights issue 13 760 - - Option premium obtained with the issue of option programme LTIP 2022-2025 - - 7 Purchase of own shares - - -21 Dividend to shareholders for 2021 - - -419 Dividend to shareholders’ with non-controlling interest -13 -1 -9 Non-controlling interest arising on business combinations - 3 - Change in fair value of liabilities linked to acquisitions -65 - -29 Closing balance 20 675 5 743 6 714 Summarised consolidated cash flow analysis, SEK M Q1-23 Q1-22Q1-22 R12R12 FY-22FY-22 Operating profit (EBIT) 666 393 2 173 1 900 Non-cash generated items 196 174 869 846 Paid interest -221 -30 -375 -184 Paid income tax -153 -90 -554 -491 Realisation result on sale of tangible fixed assets -1 - -20 -20 Changes in working capital -892 -730 -2 132 -1 970 Cash flow from current operations -405 -283 -40 81 Cash flow from investment operations -7 241 -357 -8 215 -1 331 Cash flow from financial operations -5 817 568 -3 874 2 511 Payments related to amortisation of lease liabilities -114 -91 -408 -386 Rights issue, net after costs and tax 13 760 - 13 760 - Dividend paid -13 -1 -446 -434 Change in liquid funds 170 -164 777 442 Exchange rate difference in liquid funds 0 21 51 72 Liquid funds at the beginning of the period 1 518 1 004 860 1 004 Liquid funds at the period end 1 689 860 1 689 1 518 Key figures* 31 Mar 23 31 Mar 22 31 Dec 22 Equity ratio, % 53.4 33.0 30.7 Return on equity (R12), % 13.6 20.9 20.4 Return on operating capital, excluding items affecting comparability, (R12), % 13.7 15.3 16.2 Debt/equity, ratio 0.4 0.9 1.1 Interest coverage, excluding items affecting comparability, ratio 7.6 13.3 11.8 Net debt/EBITDA 2.58 2.70 2.92 Net debt/EBITDA excluding items affecting comparability 2.38 2.70 2.65 Net debt/EBITDA excluding leasing liabilities , pension liability and items affecting comparability 1.86 2.30 2.30 Average number of employees 5 734 4 354 4 720 Number of outstanding shares 507 127 426 380 468 980 380 345 570 Holding of own shares1 1 958 500 1 835 090 1 958 500 Total number of shares 509 085 926 382 304 070 382 304 070 Average number of outstanding shares 2 425 571 846 415 512 175 415 478 482 1 Holdings of own shares includes the delivery of shares to participants in the options programme. The option programs expire in June 2024 and June 2025, respectively. 2 Comparative figures are recalculated as a result of the rights issue that was completed in March 2023. *The table contains alternative key figures, for more details see p. 19. ===== SIDA 15 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 15 Reporting for segments Operating segments The group’s operations are divided into operating segments based on how the company’s executive decision-makers, i.e. the CEO, follow the operations. As of the first quarter of 2023, the group has the following segments; EMEA, APAC and North America. The previous operating segments Nordics, Central Europe, Southern Europe, Eastern Europe and Africa, which were reported separately, are now included in EMEA. The former operating segment Asia Pacific is included in APAC and Heritage Distribution is included in North America. The segment report for the regions contains net sales, EBIT and EBIT per cent. Internal sales within each segment are eliminated in net sales, internal sales between segments are eliminated at the total level. Net sales, SEK M Q1-23 Q1-22 ∆% R12 FY-22 APAC 1 389 1 039 34 4 822 4 473 EMEA 4 903 3 886 26 19 249 18 232 North America 1 118 - - 1 118 - Eliminations -32 -23 - -76 -66 Group 7 378 4 903 50 25 113 22 638 Operating profit (EBIT), SEK M Q1-23 Q1-22 ∆% R12 FY-22 APAC 137 93 46 410 367 EMEA 476 329 45 2 080 1 932 North America 104 - - 104 - Other -51 -30 - -175 -154 Group 666 393 70 2 418 2 145 Items affecting comparability - - - -245 -245 Group incl. items affecting comparability 666 393 70 2 173 1 900 EBIT, % Q1-23 Q1-22 ∆ R12 FY-22 APAC 9.8 9.0 0.9 8.5 8.2 EMEA 9.7 8.5 1.2 10.8 10.6 North America 9.3 - 9.3 9.3 - Group 9.0 8.0 1.0 9.6 9.5 Group incl. items affecting comparability 9.0 8.0 1.0 8.7 8.4 ===== SIDA 16 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 16 Net sales, SEK M Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 Q2-21 Q1-21 APAC 1 389 1 350 1 090 993 1 039 1 017 778 757 834 EMEA 4 903 4 492 4 897 4 956 3 886 3 265 3 568 3 812 2 904 North America 1 118 - - - - - - - - Eliminations -32 -24 -8 -11 -23 -11 -5 -7 -8 Group 7 378 5 818 5 979 5 938 4 903 4 271 4 341 4 562 3 731 Operating profit (EBIT), SEK M Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 Q2-21 Q1-21 APAC 137 123 81 70 93 102 38 43 67 EMEA 476 457 576 570 329 264 342 389 211 North America 104 - - - - - - - - Other -51 -37 -50 -37 -30 -40 -26 -14 -15 Group 666 543 607 603 393 326 354 418 263 Items affecting comparability - -245 - - - - - - - Group incl. items affecting comparability 666 298 607 603 393 326 354 418 263 EBIT, % Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 Q2-21 Q1-21 APAC 9.8 9.1 7.4 7.0 9.0 10.0 4.9 5.6 8.0 EMEA 9.7 10.2 11.8 11.5 8.5 8.1 9.6 10.2 7.3 North America 9.3 - - - - - - - - Group 9.0 9.3 10.1 10.2 8.0 7.6 8.2 9.2 7.0 Group incl. items affecting comparability 9.0 5.1 10.1 10.2 8.0 7.6 8.2 9.2 7.0 Overview per segment Quarter Sales per product group In the tables below, net sales are distributed by respective product group, i.e. HVAC, OEM and Commercial and Industrial Refriger- ation Net sales, SEK M Q1-23 Q1-22 ∆% R12 FY-22 HVAC 4 110 2 387 72 13 447 11 724 OEM 608 469 29 2 310 2 172 Commercial and Industrial Refrigeration 2 660 2 047 30 9 356 8 742 Group 7 378 4 903 50 25 113 22 638 Net sales, SEK M Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Q3-21 Q2-21 Q1-21 HVAC 4 110 3 030 3 131 3 175 2 387 1 926 1 998 2 268 1 668 OEM 608 599 577 527 469 448 400 403 367 Commercial and Industrial Refrigeration 2 660 2 189 2 271 2 236 2 047 1 897 1 943 1 891 1 696 Group 7 378 5 818 5 979 5 938 4 903 4 271 4 341 4 562 3 731 ===== SIDA 17 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 17 Company acquisitions For each acquisition, the company performs a materiality assess- ment based on sales, product area and market. It is our assess- ment that an acquisition is material in cases where the sales of the acquired company exceed 5 per cent of the group’s total sales. During the year, four acquisitions were consolidated in the group’s accounts, of which Heritage Distribution was assessed as a material acquisition, the other three acquisitions were each deemed immaterial. Of the consolidated acquisitions for the year, two of the acquisitions are acquisitions of asset deals. Information about the acquisitions is provided in the table below. 2023 First quarter The previously announced acquisitions of Heritage Distribution and Transport Cooling were completed during the first quarter. Beijer Ref acquired approximately 95 per cent of the shares of Heritage Distribution and holds a put/call option to acquire the remaining shares. Beijer Ref also acquired Roobear Ltd and acquired assets of AFM (Belgium), during the quarter. AFM has been integrated into the company Beijer Ref Belgium. 2022 First quarter During the corresponding quarter last year, Beijer Ref acquired 80 per cent of the shares of Deltron, with an option to acquire the re- maining shares. Beijer Ref signed two new agreements to acquire all assets in Mackay Air Supply and GMR Supplies during the first quarter of 2022. Accounting for acquisitions Identified customer lists are written off over 10 years, while brands are judged to have an indefinite lifespan and are not written off. Most accrued acquisition goodwill is explained by synergy gains with the group’s existing operations. During the first quarter of 2023, one of the acquisitions was made with an option to acquire the remaining shares within the time span 2023–2027. The option has been valued at the likely outcome and entered as current and non-current liability; this liability amounts to SEK 509 million. Acquisitions that include a put/call option where ownership will amount to 100 per cent, are consolidated in their entirety at the time of acquisition. Acquisition costs for acquisitions completed during the first quar- ter in 2023 and burdened to 2023’s profit amount to approximately SEK 0.4 million and are included in other costs. Acquisition costs and the acquisition calculations are preliminary. The acquisition calculation for the company that was acquired during the first quarter of 2022 has now been determined. No significant adjust- ment has been made in the calculation. Acquisitions after the balance sheet date On the fifth of April, Beijer Ref entered into a binding agreement to acquire 100 per cent of the assets of Shravan Engineering, India. In connection with the acquisition, Beijer Ref is starting a new company in India, in which the sellers will reinvest 26 per cent of the purchase price. Annual sales amount to approximately SEK 53 million and operations will be included in Beijer Ref’s accounts from the second quarter of 2023. On April 25, Beijer Ref entered into a binding agreement to acquire 70 per cent of the shares in Condex, with an option to acquire the remaining share. Condex is a leading HVAC distribu- tor in Bulgaria with an annual turnover of approximately SEK 350 million and good profitability. The company will be consolidated during third quarter 2023. Consolidated acquisitions Consolidated from Segments Net sales, SEK M Number of employees 2023 Companies Heritage Distribution January 20 North America 6 492 800 Transport Cooling SA (asset deal) February EMEA 150 90 Roobear Ltd February EMEA 3 1 AFM (asset deal) March EMEA 20 4 2022 Companies Deltron January EMEA 400 110 Mackay Air Supply och GMR Supplies (asset deals) April APAC 50 8 EID August EMEA 170 20 Easy Air Conditioning October EMEA 70 8 AAD och HVAC Consolidated November APAC 800 125 Acquisitions not yet consolidated Consolidated from Segments Net sales, SEK M Number of employees Shravan Engineering (asset deal) Q2 2023 APAC 53 22 Condex Q3 2023 EMEA 350 41 ===== SIDA 18 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 18 Acquisitions of companies, SEK M Heritage Distribution Other acquisitions Q1-23 Q1-22 Fair value in the Group: Intangible assets 4 435 8 4 443 37 Tangible and financial fixed assets 1 135 14 1 149 16 Deferred tax asset - - - 1 Inventories 1 891 110 2 001 58 Other current assets 558 26 584 73 Liquid funds 432 1 433 82 Deferred tax liability -631 -2 -633 -6 Provisions - - - -1 Other current liabilities -1 013 -52 -1 064 -88 Liabilities to credit institutions -5 619 - -5 619 - Total identifiable net assets: 1 188 106 1 294 172 Goodwill 6 801 41 6 842 355 Effect on the cash flow: Consideration -7 989 -146 -8 135 -527 Non-paid consideration 509 - 509 207 Repaid consideration for previous years’ acquisitions - 14 14 - Liquid funds in acquired companies 432 1 433 82 Total -7 048 -132 -7 180 -238 Parent company balance sheet in summary, SEK M 31 Mar 23 31 Mar 22 31 Dec 22 ASSETS Intangible fixed assets 7 6 6 Tangible fixed assets 4 5 4 Financial fixed assets 19 457 6 398 7 472 Current assets 3 794 1 111 2 284 Total assets 23 261 7 520 9 766 EQUITY AND LIABILITIES Shareholders’ equity 15 811 1 948 2 119 Long-term liabilities 4 132 4 102 4 810 Current liabilities 3 318 1 470 2 837 Total equity and liabilities 23 261 7 520 9 766 Parent company profit and loss account in summary, SEK M Q1-23 Q1-22 R12 FY-22 Operating income 2 3 123 124 Operating expenses -58 -37 -198 -177 Depreciation and write-down of intangible and tangible fixed assets -1 -1 -3 -3 Operating profit (EBIT) -57 -35 -78 -56 Net financial income/expense -102 22 -219 -95 Result of participations in Group companies 56 - 688 632 Profit before appropriations -103 -13 391 481 Appropriations - - 102 102 Profit before tax -103 -13 493 583 Tax 34 - 44 10 Net profit -69 -13 537 593 The table shows the total cash flow impact from acquisition activities. The list of identifiable net assets refers to acquisitions made during the first quarter of 2023 and the first quarter of 2022, respectively. Other acquisitions include the impact of the acquisitions of Transport Cooling, Roobear and AFM. These companies have been merged in the above table as the respective acquisitions individually are not significant. ===== SIDA 19 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 19 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 contri - bute to global warming. HFO HydroFluoroOlefins, synthetic environmentally friendly refrige - rants. HORECA Hotels, Restaurants, Catering. HVAC Heating, Ventilation, Air Conditioning. OEM Original Equipment Manufacturer. Transcritical Heat transfer with gas cooler. EMEA APAC North America 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 pro - ducts through one or more distribution channels. Trade terms Operating segments Definitions of key figures Other Beijer Ref uses a number of alternative key figures. The group believes that the key figures are useful to users of the financial state - ments as a complement to the profit and loss account and balance sheet and cash flow statement. Examples of alternative key figures linked to financial position: return on equity and operating capital, net liabilities, debt to equity ratio and equity/assets ratio. The group also uses the cash flow measurement of operating cash flow to give an indication of the funds that the business generates in order to be able to carry out strategic investments, make amortisations and provide returns to shareholders. The performance measurements EBITDA, EBITA and EBIT are measurements that Beijer Ref considers relevant for investors who wish to understand the business’s profit generation. For further description including calculations and key figures, see https://www.beijerref.com/alternative-performan - ce-measures/. ===== SIDA 20 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 20 This is Beijer Ref The Beijer Ref Group is focused on trade and distributor activities within refrigeration products, air conditioning and heat pumps. The product range mainly consists of products from leading international manufacturers and in addition some manufacturing of our own products combined with service and support for the products. The group creates added value by adding technical expertise to the products, providing knowledge and experience about the market and providing efficient logistics and ware- housing. Beijer Ref supplies customers across large parts of the world with a wide range of products. Through its 143 subsidiaries in Europe, North America, Africa and Asia and Oceania, sales, purchasing, logistics and distribution are handled. Part of the sales comes from own production. The business is divided into three operating segments: EMEA, APAC and North America. Growth occurs both organically and through the acquisition of companies that complement current operations. Seasonal effects Beijer Ref’s sales are seasonally dependent as demand for refri - geration 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 calender 2023 • Beijer Ref’s AGM is held on April 25, 2023 • Interim report for the second quarter will be published July 20, 2023 • Interim report for the third quarter will be published October 24, 2023 • Interim report for the fourth quarter will be published January 31, 2024 Beijer Ref in brief ===== SIDA 21 ===== Beijer Ref AB Q1 2023 – Published on April 25, 2023 21 Stortorget 8, 211 34 Malmö Telephone 040-35 89 00 Corporate ID 556040-8113 www.beijerref.com This document is a translation of the Swedish language version. In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct.