Slide 1

Anders Martinsson, President and CEO

Andreas Karlsson, CFO

BE Q1

BE GROUP

INTERIM REPORT

JANUARY – MARCH 2016

Slide 2

Q1 – Strong operational cash-flow

Financial highlights

Shipped tonnage decreased by 5%

Net sales decreased by 11%

Gross profit of SEK 127 M (144)

Underlying operating result (uEBIT) of SEK 9 M (12)

Operating result (EBIT) of SEK -45 M (10) affected by one-off costs in amount of SEK 45 M

Net profit SEK -53 M (0)

Slide 3

Operational highlights

Increased underlying gross margin in the quarter and lower overhead costs

Decision to restructure the businesses in Czech Republic and Slovakia

Changes in structure and organization in order to create a clear link to the business models

Market situation

Challenging market conditions remains

Steel prices on significantly lower level than last year, but stabilized during the quarter

Underlying demand in the Swedish market stable, but affected by the Easter holidays

Demand in Finland recovered after Q4 slow-down

Slide 4

Non-recurring items

Q1 EBIT affected by non-recurring items of

45 MSEK

36 MSEK Restructuring of Czech and Slovak

operations

6 MSEK related to Reduction of employees

3 MSEK Closing cost Estonian production

operation

Approximately 16 MSEK will affect cash-flow

Slide 5

FINANCIALS IN DETAIL

Slide 6

Quarterly comparison to last year

SEK M Q1 Q2 Q3 Q4

Net sales 2015 1 104 1 104 966 981

Net sales 2016 978

Change -11%

Operating result 2015 10 10 -117 -17

Inventory losses 2 2 3 5

Non-recurring items 0 0 124 0

Underlying operating result 2015 12 12 10 -12

Tonnage-, price- and mix effects -17

Change in underlying gross margin 7

Change in overhead costs etc. 7

Underlying operating result 2016 9

Inventory gains/losses -9

Non-recurring items -45

Operating result 2016 -45

Slide 7

Q1 tonnage – Tonnage mainly affected by lower sales

in Czech and Slovakia

Growth in tonnage and sales (%) Net sales decreased by 11% vs Q1 2015

Q1

Change in Net Sales -11%

Tonnage -5%

Price/Mix -6%

Currency 0%

Stable tonnage main business areasQ1

Change in tonnage -5%

Sweden -2%

Finland 0%

Other Units -24%

-2%

-6%

-11% -11%-10%

-1% -1%

-3%

1%

-5%

-15%

-10%

-5%

0%

5%

10%

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Tonnage growth, % Sales growth, %

Slide 8

Gross margin – Improvement compared to 2015

Lower sales level affected gross profit negatively by SEK 17 M

Negative effect mitigated by strengthened underlying gross margin of 13.9% (13.2)

Mix of sales between business areas had positive effect on margins

Underlying margin improvement in both BA Sweden and BA Finland

Gross margin on same levels as last year 13.0% (13.0) despite significant inventory losses

Gross profit (SEK M) and gross margin (%)

127141 137

125 124

144 144

124112

127

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

16,0%

17,0%

18,0%

19,0%

20,0%

0

20

40

60

80

100

120

140

160

180

200

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Gross profit, SEK M Gross margin % uGross margin %

Slide 9

Working capital – Back to normal level

Working capital (SEK M)

Q1 Period-end working capital decreased by SEK 22 M compared to last year

Accounts payables back to normalized level after being unusually low levels at the end of 2015

Average working capital tied-up 12.6% (10.3)

Less sales in Czech and Slovakia has structural effect on W/C tied-up

388

436465 479

426

486512

575

525

464

0,0%

5,0%

10,0%

15,0%

20,0%

0

100

200

300

400

500

600

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

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

Slide 10

Cash-flow – Strong cash flow during the quarter

Q1 operating cash-flow of SEK 51 M (-54)

Investment cash-flow of SEK -2 M (-4)

Rolling twelve months operating cash flow of SEK 12 M

Net debt of SEK 565 M (804) and gearing of 77% (113)

Debt amortization of SEK 17 M during the period

Available cash 163 MSEK (110)

Cash-flow from operating activities (SEK M)

42

-48

-18 -8

49

-54

-28

-48

37

51

-120

-80

-40

0

40

80

120

-60

-40

-20

0

20

40

60

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

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

Slide 11

BUSINESS AREAS

STATUS Q1 2016

Slide 12

BA Sweden – Sales and earnings affected by lower

prices

Underlying market demand stable but Q1 was negatively affected by the Easter holidays

Tonnage decreased by 2% vs Q1 2015

Net sales fell by 11% compared to last year and amounted to SEK 430 M (485)

EBIT of SEK 6 M (12) and uEBIT of SEK 10 M (12) in Q1 2016

uEBIT (SEK M) and sales growth (%)

0

13

85 5

12 1310

6

10

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

-20

-15

-10

-5

0

5

10

15

20

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Underlying EBIT, SEK M Sales growth, %

Slide 13

BA Finland – Improved underlying result

Demand in Finland recovered after Q4 slow-down

Tonnage flat compared to Q1 2015

Net sales decreased by 7% compared to Q1 last year on the back of lower steel prices and amounted to SEK 430 M (461)

EBIT of SEK 2 M (8) and uEBIT of SEK 12 M (10) in Q1 2016

uEBIT (SEK M) and sales growth (%)

2

12

8

13

710 11 12

-3

12

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

-20

-15

-10

-5

0

5

10

15

20

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Underlying EBIT, SEK M Sales growth, %

Slide 14

Other Units – Restructuring in Czech and Slovak

initiated

Tonnage in Czech and Slovak markets affected by the restructuring decision of the business

Net sales decreased by 25% vs Q1 2015 and amounted to SEK134 M (178)

EBIT of SEK -46 M (-5) and uEBIT of SEK -7 M (-5) in Q1 2015

Decision to close the operations in Slovakia and to stop selling flat carbon steel and aluminium in the Czech market

The operations in Prerov, in the Czech Republic, are not affected by the decision

uEBIT (SEK M) and sales growth (%)

-9-5

-10-6 -7 -5 -5 -7

-9-7

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Underlying EBIT, SEK M Sales growth, %

Slide 15

OUTLOOK

Slide 16

Business outlook

Demand in Finland did recover from Q4 low level

No significant changes in demand expected in near future

Steel prices are increasing. Started with flat products but are now seen in all product

groups

With renewed focus on main markets and new Group structure

we are in a good position

Slide 17

Summary and conclusions

Strong operational cash-flow in quarter

and positive during rolling 12 months

Activities to increase margins and reduce

costs are giving results

Demand on a stable level and increasing

prices

Exit activities in Czech Republic and

Slovakia will have a positive effect on

operating result

New Group structure gives a decentralized

and focused organization

Slide 18

Q&A

Slide 19

APPENDIX

FINANCIAL

INFORMATION

Slide 20

Q1 Q1 Change

SEK M 2016 2015

Net sales 978 1,104 -126

Underlying EBIT 9 12 -3

% of Sales 1.0% 1.1% -0.1%

Inventory gains/losses -9 -2 -7

Non-recurring items -45 - -45

EBIT -45 10 -55

% of Sales Neg 0.9 -

Financial net -8 -10 +2

Earnings before tax -53 0 -53

Net earnings -53 0 -53

Number of shares period end (M) 259.7 74.2 +185,5

EPS (SEK) -0,20 0,0 -0,20

Operating Cash-flow 51 -54 +105

January – March

Slide 21

Mar Mar Change

SEK M 2016 2015

Non-current assets 895 1,073 -178

Inventories 535 584 -49

Accounts Receivable 469 596 -127

Other Receivables 59 74 -15

Cash 63 10 +53

Total Assets 2,021 2,337 -316

Equity 734 711 +23

Interest bearing liabilities 628 815 -187

Accounts payable 444 610 -166

Other liabilities 215 201 +14

Total Equity and liabilities 2,021 2,337 -316

Working Capital 464 486 -22

Net Debt 565 804 -239

Gearing 77% 113%

Balance sheet

Slide 22

Appendix: Tonnage development

Tonnage (‘000 tons)

108 109 110

95 97108 108

93 97103

-15%

-10%

-5%

0%

5%

0

20

40

60

80

100

120

140

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Tonnage Tonnage growth, %

Slide 23

Appendix: Sales per product area

Q1 Sales (SEK M)

310

382

177

47 62

346

447

202

52 570

100

200

300

400

500

Long Flat Stainless Aluminium Other

2016 2015

Slide 24

Appendix: Sales per business solution

Q1 Sales (SEK M)

118

456

404

140

536

428

0

100

200

300

400

500

600

Direct Inventory Service

2016 2015