July 19th, 2018

Anders Martinsson, President and CEO

Daniel Fäldt, CFO

BE Q2

BE GROUP

INTERIM REPORT

APRIL – JUNE 2018

Agenda

Q2 Overview

Financials in Detail

Business Areas - Status

Outlook

Q&A

Net sales increased by 14% to SEK 1,312 M (1,147)

The underlying operating result increased to SEK 26 M (21)

The underlying operating result and the operating result were affected by a

provision for bad debt and inventory adjustment in the Baltics of SEK -12 M

The operating result included items affecting comparability of SEK -16M, no cash

flow impact, related to the exit of the operation in Prerov, Czech Republic

Operating result increased to SEK 22 M (-13)

Result after tax increased to SEK 7 M (-14)

Cash flow from operating activities increased to SEK 17 M (-49)

Earnings per share increased to SEK 0.54 (-1.03)

Financial highlights – Q2 2018

Market situation

Demand in our main markets remains strong with minor price increases

Customers in both main segments, Construction and Manufacturing,

have high production output

During the quarter, tonnage in business area Sweden & Poland grew by

14 percent and sales increased by 28 percent

During the quarter, tonnage in business area Finland & Baltics grew by

2 percent and sales increased by 9 percent

The tough competition in the thin sheets business has continued both in

Sweden and Finland

Operational highlights

Continued improvement measures in Lecor Stålteknik in addition to

close down of Produktion Eskilstuna had positive impact on result

compared to last year

Production site in Norrköping continuing to have good development

due to increased demand within OEM segment

Decision to exit remaining operations in Prerov, Czech Republic.

Operating result impact of -16 MSEK. SEK -9 M affecting the

Group’s consolidated statement of comprehensive income and

equity while SEK -7 M refers to translation differences from previous

fiscal years. Exit generates no negative cash flow impact

FINANCIALS

IN DETAIL

Growth in tonnage and sales (%)

Q2 Sales – Increase mainly due to tonnage growth in

BA Sweden & Poland

High increase in salesQ2

Change in Net Sales +14%

Tonnage +8%

Price/Mix +3%

Currency +3%

Tonnage growth in Sweden &

PolandQ2

Change in tonnage +8%

Sweden & Poland +14%

Finland & Baltics +2%

Op. under restructuring -

-3%

-13% -13%

-5%

-10%

1%

5%

0%

8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Tonnage growth, % Sales growth, %

Gross profit above last year SEK 179

M (159)

Gross margin 13.6% (13.8). Lower

underlying margin, 12.8% (13.2) due

to adjustment in Baltics

Main impact from volume growth in

both Business Areas

Profit improvement in Lecor

Inventory gains of SEK 12 M (8 M)

Gross profit (SEK M and %)

Gross Profit – Stronger than last year

163

138 133

174159

134

152

187179

10%

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

0

20

40

60

80

100

120

140

160

180

200

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Gross profit, SEK M Gross margin % uGross margin %

Quarterly comparison to last year

SEK M Q1 Q2 Q3 Q4 FY

Net sales 2017 1 138 1 147 968 1 095 4 348

Change BA Sweden & Poland 108 146

Change BA Finland & Baltics 26 53

Change Other -46 -34

Net sales 2018 1 226 1 312

Change +8% +14%

Operating result 2017 46 -13 19 5 57

Inventory gains (-)/ losses (+) -16 -8 3 -6 -27

Items affecting comparability - 42 - 10 52

Underlying operating result 2017 30 21 22 9 82

Change in sales 13 22

Change in underlying gross margin 4 -7

Change in overhead costs 1 -10

Underlying operating result 2018 48 26

Inventory gains (+)/losses (-) 7 12

Items affecting comparability - -16

Operating result 2018 55 22

Working capital (SEK M) Working capital decreased by

SEK 13 M compared to last year

Average working capital tied-up

improved to 10.8% (11.9)

Improved working capital tied-up %

454493 506 502

588

480 492

554575

0%

5%

10%

15%

20%

25%

30%

0

100

200

300

400

500

600

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

WC (period end), SEK M WC tied-up (average), %

Operating cash flow of SEK 17 M (-49)

Investment cash flow of SEK -5 M (-1)

Rolling twelve months operating cash flow

of SEK 123 M (-21)

Net debt of SEK 496 M (586) and gearing

of 57 percent (74)

Available cash SEK 151 M (113) incl.

overdraft facility

Operating cash flow (SEK M)

Operating cash flow – Improved working capital and

profitability

-1

36

-12

337

-49

97

10

-1

17

-120

-80

-40

0

40

80

120

-120

-70

-20

30

80

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Cash flow from Op. activities Cash flow from Op. activities R12

Financial Summary

Q2 Q2

SEK M 2018 2017 Change

Net sales 1 312 1 147 +165

Underlying EBIT 26 21 +5

% of Sales 2.0% 1.9% +0.1%

Inventory gains/losses 12 8 +4

Items affecting comparability -16 -42 +26

EBIT 22 -13 +35

% of Sales 1.6% -1.1% +2.7%

Financial net -5 -6 +1

Earnings before tax 17 -19 +36

Net earnings 7 -14 +21

Operating Cash-Flow R12 123 -21 +144

Net Debt 496 586 -90

Gearing 57% 74% -17%

BUSINESS AREAS

- STATUS Q2 2018

Tonnage up 14% vs Q2 2017

Net sales up 28%, and amounted to

SEK 675 M (529)

uEBIT of SEK 27 M (20)

Both business unit Production Sweden

& Poland and Distribution Sweden

delivers an improved underlying

operating result

Profit improvement in Lecor

EBIT of SEK 34 M (27)

uEBIT (SEK M) and sales growth (%)

BA Sweden & Poland – Strong sales & volume

growth gives improved uEBIT

48

2320

1513

35

27

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

-10

-5

0

5

10

15

20

25

30

35

Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Underlying EBIT, SEK M Sales growth, %

Tonnage up 2% vs Q2 2017

Net sales up 9% and amounted to SEK

629 M (576)

uEBIT of SEK 12 M (26), including one-

off effects of SEK -12 M (-) due to a

provision for bad debt and inventory

adjustment in the Baltics

Improved performance in Production

Finland

EBIT of SEK 18 M (31)

uEBIT (SEK M) and sales growth (%)

BA Finland & Baltic – Sales growth in Finland and

bad debt provision in Baltics

19

8

3026

22

12

26

12

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

-10

-5

0

5

10

15

20

25

30

35

Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Underlying EBIT, SEK M Sales growth, %

OUTLOOK

Demand and price trends are expected to

remain strong in the company’s main

markets in the next quarter.

Customs duties on steel and the announced

European protective measures have led to

continuing price increases.

We strongly believe that our ongoing

improvement measures will continue to

strengthen the Group.

Business outlook

Strong sales growth (14%) in Q2 2018 vs last

year

Improved underlying operating result SEK 26

M (21)

Excluding one-off effects in the Baltics and

Czech Republic, the result from the operating

activities corresponds to SEK 50 M (29)

Market demand and prices at good level

Summary and conclusions

Q&A

APPENDIX

FINANCIAL INFORMATION

BA Sweden & Poland; BE Group Sweden, Lecor Stålteknik and BE Group

Poland

BA Finland & Baltics; BE Group Finland, BE Group Estonia, BE Group

Latvia and BE Group Lithuania

Parent Company and consolidated items; BE Group AB, Group

eliminations and Operations under restructuring (BE Group Czech Republic,

BE Group Slovakia and RTS Estonia), BE Group Produktion Eskilstuna (since

Q4 2017)

Description of segments

Tonnage (‘000 tons)

Appendix: Tonnage development

105

81 85

98 94

8289

98 102

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Tonnage Tonnage growth, %

Balance sheet

Jun Jun

SEK M 2018 2017 Change

Non-current assets 863 857 +6

Inventories 697 598 +99

Accounts receivable 663 649 +14

Other receivables 49 41 +8

Cash 51 13 +38

Total assets 2 323 2 158 +165

Equity 863 794 +69

Interest bearing liabilities 588 586 +2

Accounts payable 635 519 +116

Other liabilities 237 259 -22

Total equity and liabilities 2 323 2 158 +165

Working capital 575 588 -13

Net debt 496 586 -90

Gearing 57% 74% -17%