Slide 1

Anders Martinsson, President and CEO

Andreas Karlsson, CFO

BE Q2

BE GROUP

INTERIM REPORT

JANUARY – JUNE 2016

Slide 2

Q2 – Improved result and continued strong cash-flow

Financial highlights

Net sales decreased by 5%

Gross profit improved to SEK 163 M (144)

Underlying operating result (uEBIT) improved to SEK 21 M (12)

Inventory gains of SEK 10 M after years with inventory losses

Operating result (EBIT) improved to SEK 31 M (10)

Net profit SEK 19 M (-13)

Cash flow-from operations improved to SEK 36 M (-28)

Slide 3

Operational highlights

Increased underlying gross margin in the quarter

Restructuring of the businesses in Czech Republic and Slovakia follows plan

New Group structure and organization based on the company’s business models

Market situation

Demand on main markets stable to small improvement

Increasing steel prices during the year but average level still below last year

Slide 4

FINANCIALS IN DETAIL

Slide 5

Revised Segment reporting due to restructuring and new organisation

New segments applied from Q2 2016

Historical data for 2015 and Q1 2016 restated

BA Sweden&Poland; BE Group Sweden, BE Group Produktion Eskilstuna, 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 Eesti)

Reporting according to new segments

Slide 6

Operations under restructuring

Scope

Operations in Slovakia will be closed

Sales of carbon steel and aluminum och Czech market will be discontinued

Small production facility in Estonia will be closed

Status

Progress according to plan

Finalized during second half 2016

Financial impact

Q2 sales of SEK 53 M (102)

EBIT of SEK 0 M (-3)

Non-recurring cost of SEK -45 M taken in Q1 2016 - no further costs expected

Slide 7

Quarterly comparison to last yearSEK M Q1 Q2 Q3 Q4 YTD

Net sales 2015 1 104 1 104 966 981 2 208

Change BA Sweden&Poland -49 -22 -71

Change BA Finland&Baltics -31 +17 -14

Change Other -46 -52 -98

Net sales 2016 978 1 047 2 025

Change -11% -5% -8%

Operating result 2015 10 10 -117 -17 20

Inventory gains (-)/ losses (+) 2 2 3 5 4

Non-recurring items - - 124 - -

Underlying operating result 2015 12 12 10 -12 24

Change in sales -17 -8 -25

Change in underlying gross margin 7 16 23

Change in overhead costs 7 1 8

Underlying operating result 2016 9 21 30

Inventory gains (+)/losses (-) -9 10 1

Non-recurring items -45 - -45

Operating result 2016 -45 31 -14

Slide 8

Q2 tonnage – Strong tonnage in Finland & Baltics,

stable in Sweden & Poland

Growth in tonnage and sales (%) Decreasing average sales price

effectQ2 YTD

Change in Net Sales -5% -8%

Tonnage -3% -4%

Price/Mix -2% -4%

Currency 0% 0%

Lower tonnage due to restructuringQ2 YTD

Change in tonnage -3% -4%

Sweden & Poland 0% 0%

Finland & Baltic 11% 5%

Op. under restructuring -47% -37%

-11% -11%-10%

-1% -1%

-3%

1%

-5%-3%

-15%

-10%

-5%

0%

5%

10%

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

Tonnage growth, % Sales growth, %

Slide 9

Gross margin – Continued improvement compared to

2015

Gross profit improved to SEK 163 M (144) despite lower sales

Gross margin improved to 15.5% (13.1) with help from inventory gains

Underlying gross margin improved to 14.6% (13.2)

Mix of sales between business areas had positive effect on margins

Underlying margin improvement in both Business areas

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

137125 124

144 144

124112

127

163

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

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

Gross profit, SEK M Gross margin % uGross margin %

Slide 10

Working capital – remains on a good level

Working capital (SEK M)

June-end working capital decreased by SEK 58 M compared to last year

Q2 average working capital tied-up 11.0% (11.3)

Restructuring in Czech and Slovakia and lower average prices drives W/C reduction

465 479

426

486512

575

525

464 454

0,0%

5,0%

10,0%

15,0%

20,0%

0

100

200

300

400

500

600

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

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

Slide 11

Cash-flow – Strong cash flow during the quarter

Q2 operating cash-flow of SEK 36 M (-28)

Investment cash-flow of SEK -3 M (-4)

Rolling twelve months operating cash flow of SEK 76 M

Net debt of SEK 540 M (590) and gearing of 71% (63)

Available cash 192 MSEK (167)

Cash-flow from operating activities (SEK M)

-18-8

49

-54

-28

-48

37

51

36

-120

-80

-40

0

40

80

120

-60

-40

-20

0

20

40

60

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

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

Slide 12

Q2 Q2 Change R12

SEK M 2016 2015

Net sales 1,047 1,104 -57 3,972

Underlying EBIT 21 12 9 28

% of Sales 2.0% 1.1% 0.9% 0.7%

Inventory gains/losses 10 -2 12 -7

Non-recurring items 0 0 0 -169

EBIT 31 10 21 -148

% of Sales 2.9% 1.0% 1.9% -3.7%

Financial net -6 -24 18 -28

Earnings before tax 25 -14 39 -176

Net earnings 19 -13 32 -190

Number of shares period end (M) 12.98 12.98 - 12.9

EPS (SEK) 1.47 -0.96 2.43 -14.64

Operating Cash-Flow R12 76 -41 117 76

P&L Summary

Slide 13

BUSINESS AREAS

STATUS Q2 2016

Slide 14

BA Sweden & Poland – Strong margin development

Market demand stable

Tonnage flat vs Q2 2015

Net sales down 4% due to lower average prices and amounted to SEK 531 M (553)

uEBIT of SEK 8 M (11)

Underlying result includes SEK 5 M cost due to a settlement and an anticipated customer loss in project business

EBIT of SEK 13 M (10)

uEBIT (SEK M) and sales growth (%)

911

52

7 8

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

-20

-15

-10

-5

0

5

10

15

20

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Underlying EBIT, SEK M Sales growth, %

Comments Q2 2016

Slide 15

10 11 12

-3

12

21

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

-20

-15

-10

-5

0

5

10

15

20

25

30

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Underlying EBIT, SEK M Sales growth, %

BA Finland & Baltic – Significantly improved result

Market demand slightly up

Tonnage up 11%

Net sales up 4% despite lower average prices and amounted to SEK 470 M (453)

uEBIT of SEK 21 M (11)

Underlying result improved by higher tonnage and significantly improved margins

EBIT of SEK 25 M (9)

uEBIT (SEK M) and sales growth (%) Comments Q2 2016

Slide 16

OUTLOOK

Slide 17

Business outlook

Continued stable market demand expected

Normal seasonal effect in Q3 due to summer holidays

Further price increases expected during Q3

Focus on main markets and new Group structure

will improve performance

Slide 18

Summary and conclusions

Market demand on a stable level with

increasing prices

Improved underlying gross margin

Restructuring following plan

Positive profit after tax of SEK 19 M (-13)

Improved cash-flow

New Group structure will improve

performance

Slide 19

Q&A

Slide 20

APPENDIX

FINANCIAL

INFORMATION

Slide 21

Q2 Q2 Change

SEK M 2016 2015

Net sales 1,047 1,104 -57

Underlying EBIT 21 12 9

% of Sales 2.0% 1.1% 0.9%

Inventory gains/losses 10 -2 12

Non-recurring items 0 0 0

EBIT 31 10 21

% of Sales 2.9% 1.0% 1.9%

Financial net -6 -24 18

Earnings before tax 25 -14 39

Net earnings 19 -13 32

Number of shares period end (M) 12.98 12.98 0

EPS (SEK) 1.47 -0.96 2.43

Operating Cash-flow 36 -28 64

April – June

Slide 22

Jun Jun Change

SEK M 2016 2015

Non-current assets 890 1,064 -174

Inventories 494 571 -77

Accounts Receivable 524 572 -48

Other Receivables 52 62 -10

Cash 92 67 +25

Total Assets 2,052 2,336 -284

Equity 756 943 -187

Interest bearing liabilities 633 657 -24

Accounts payable 437 522 -85

Other liabilities 226 214 +12

Total Equity and liabilities 2,052 2,336 -284

Working Capital 454 512 -58

Net Debt 540 590 -50

Gearing 71% 63%

Balance sheet

Slide 23

Appendix: Tonnage development

Tonnage (‘000 tons)

110

95 97108 108

93 97103 105

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

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

Tonnage Tonnage growth, %

Slide 24

Appendix: Sales per product area

Q2 Sales (SEK M)

349380

182

54 82

339

452

194

51 680

100

200

300

400

500

Long Flat Stainless Aluminium Other

2016 2015

YTD Sales (SEK M)

659

762

359

101 144

685

899

396

103 1250

100

200

300

400

500

600

700

800

900

1000

Long Flat Stainless Aluminium Other

2016 2015

Slide 25

Appendix: Sales per business solution

Q2 Sales (SEK M)

130

467 450

153

508

443

0

100

200

300

400

500

600

Direct Inventory Service

2016 2015

248

923854

293

1044

871

0

200

400

600

800

1000

1200

Direct Inventory Service

2016 2015

YTD Sales (SEK M)