G & L Beijer Six-Month Report 2012

  · Net sales increased by 27 per cent to SEK 3,481.1M (2,741.5).
  · Operating profit rose by six per cent to SEK 210.1M (197.8).
  · The period’s result increased by eight per cent to SEK 150.4M (139.4)
excluding the capital gains. Including the capital gains, the period’s result
amounted to SEK 172.4M (177.5).
  · Profit per share amounted to SEK 3.42 (3.20) excluding the capital gains.
Including the capital gains, profit per share amounted to SEK 3.94 (4.10).
  · Share split 2:1 carried out in June.

G & L Beijer is a technology-oriented trading Group which, through a combination
of added-value agency products and products of the company’s own development,
offers competitive solutions within refrigeration and air conditioning.

Sales
G & L Beijer continued its positive trend with an increase in sales and
increasing operating profit for the second quarter compared with the
corresponding period in the previous year. The sales increase is explained by
acquisitions whilst sales for comparable units decreased due to a slowdown in
demand in some markets and currency adjustments from the stronger SEK.

Consolidated sales increased by 27 per cent to SEK 3,481.1M (2,741.5) for the
first half of the year. Sales for the second quarter rose by 24 per cent to SEK
1,826.3M (1,473.0). The large acquisitions of Toshiba’s operation within air
conditioning and heating, as well as United Refrigeration’s refrigeration
wholesale operation in France and the United Kingdom, accounted for the increase
in sales for the respective period.

Adjusted for currencies and excluding acquisitions, i.e. organic, sales fell by
approximately three per cent for the half-year period and by around seven per
cent for the second quarter compared with the corresponding periods in 2011. The
lower sales volume can mainly be attributed to Central Europe, including
Belgium, Holland and Switzerland, which also enjoyed a very strong first half in
2011. Volumes also fell slightly in France, Italy and Spain.

Sales in Southern Africa and Thailand continued to develop positively. Sales in
the Nordic countries, the United Kingdom and Eastern Europe were stable.

Together, the acquisitions contributed SEK 825M in sales for the first quarter
and SEK 457M for the second quarter. The integration of United Refrigeration’s
operations in France and the United Kingdom continue according to the plan. The
operations have been restructured, which has resulted in lower expenses.
Toshiba’s operation within air conditioning and heating has also developed in
line with the expectations. Sales for the Toshiba operation were lower for the
first half of 2012 compared with the same period in 2011 which was a strong six
months. Compared with the first six months of 2010, sales were higher than for
the corresponding period in 2012. Toshiba’s operation has a stronger business
cyclical component than G & L Beijer’s other operation.

Results
Consolidated operating profit for the first half of the year increased by six
per cent to SEK 210.1M (197.8) for the first half of the year. For the second
quarter, operating profit increased by three per cent to SEK 129.0M (125.6). The
result improvements are essentially explained by contributions from the acquired
operations.

The Group’s financial income/expense amounted to SEK 7.8M (50.3) for the half
-year period and to SEK -7.5M (0.3) for the second quarter. Financial
income/expense for the six-month period includes capital gains of SEK 22.0M from
the divestment of a participation in an associated company, Förvaltnings AB
Norra Vallgatan, during the first quarter of 2012. The first quarter of 2011
includes the divestment of shares in Beijer Alma of SEK 51.7M.

Profit before tax amounted to SEK 217.9M (248.1) for the first six months of the
year and to SEK 121.5M (125.9) for the second quarter. Profit after tax
decreased to SEK 172.4M (177.5) for the half-year period but increased to SEK
93.0M (89.7) for the second quarter. Profit per share amounted to SEK 3.94
(4.10) for the six-month period. Excluding the capital gains, profit per share
amounted to SEK 3.42 (3.20).

Other financial information
Consolidated financial expenditure, including acquisitions, amounted to SEK
55.1M (97.8) for the first half of 2012. Liquid funds, including unutilised bank
overdraft facilities, were SEK 492.0M (525.7). Shareholders’ equity amounted to
SEK 2,402.7M (2,302.2) on 30 June 2012. Net debt was SEK 1,383.9M (372.9). The
equity ratio amounted to 43.0 per cent (55.0). The average number of employees
during the period was SEK 2,120 (1,817).

Significant events
In January 2012, G & L Beijer acquired the Norwegian company, Ecofrigo AS. The
company reports annual sales of approximately SEK 35M and has six employees.
Ecofrigo is a project-oriented refrigeration distribution company which mainly
operates within the planning and distribution of environment-friendly chillers
and refrigerants. The acquisition complements G & L Beijer’s existing operation
in Norway both geographically and product wise. Ecofrigo is included in G & L
Beijer’s accounts from January 2012.

In June, G & L Beijer carried out a share split (2:1) which meant that each
share was divided into two shares of the same class. After the split, G & L
Beijer’s total number of shares amount to 42,478,230 distributed on 3,306,240 A
shares and 39,171,990 B shares. The total number of votes amounts to 72,234,390
after the split.

Risk assessment
The operations of the G & L Beijer Group are affected by a number of external
factors, the effects of which on the Group’s operating profit can be controlled
to a varying degree. The Group’s operations are dependent on the general
economic trend, especially in Europe, which controls the demand for G & L
Beijer’s products and services. Acquisitions are normally linked with risks such
as, for example, staff defection. Other operating risks, such as agency and
supplier agreements, product responsibility and delivery undertaking, technical
development, warranties, dependence on individuals, etc., are continually being
analysed and, when necessary, action is taken to reduce the Group’s risk
exposure. In its operations, G & L Beijer is exposed to financial risks such as
currency risk, interest risk and liquidity risk. The parent company’s risk
picture is the same as that of the Group.

Financial information
-  The Nine-Month Report will be published on 19 October 2012.
-  The Year-End Report for 2012 will be published in February 2013.
-  The Annual Report for 2012 will be published in April 2013.
For further information, please contact:
Joen Magnusson, CEO
switchboard +46 40-35 89 00, mobile +46 709-26 50 91
Jonas Lindqvist, CFO
switchboard 040-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of an examination by the company’s
auditors.


Accounting principles
This interim report has been prepared in accordance with IAS 34, the Annual
Accounts Act and RFR 2.
G & L Beijer AB continues to apply the same reporting principles and valuation
methods as those described in the latest Annual Report.

The Board of Directors and the Managing Director assure that this Six-Month
Report gives a true and fair view of the company’s and the Group’s operations,
position and results and describes significant risks and factors of uncertainty
which the company and the companies included in the Group are facing.

Malmö, Sweden, 17 July 2012

Peter Jessen Jürgensen, Chairman
Bernt Ingman, Board Member
Anne-Marie Pålsson, Board Member
William Striebe, Board Member
Philippe Delpech, Board Member
Harald Link, Board Member
Joen Magnusson, Board Member, Managing Director

www.beijers.com