Slide 1

Anders Martinsson, President and CEO

Andreas Karlsson, CFO

BE Q4

BE GROUP

YEAR-END REPORT 2016

Slide 2

Q4 – Volume growth on main markets and

improved operating result

Financial highlights

Net sales decreased by 3 percent

Tonnage growth of 4 percent when excluding

operations under restructuring

Gross profit improved to SEK 133 M (112)

Underlying operating result (uEBIT) of SEK -7 M (-12)

Operating result (EBIT) improved to SEK 4 M (-17)

Full year cash-flow from operations improved to

SEK 78 M (-93)

Net debt reduced to SEK 562 M (609)

Slide 3

Operational highlights

Tonnage growth in fourth quarter when

excluding operations under restructuring

Positive development in Distribution

business

Restructuring of the businesses in Czech

Republic and Slovakia follows plan but has a

negative effect on topline growth.

Negative development in Lecor and

BE Group Produktion Eskilstuna

Market situation

Market growth in main distribution markets

during the year

Increasing steel prices during the year.

Continued also in fourth quarter

Trade barriers make the steel market more

regional and have given a more healthy

balance between supply and demand.

Slide 4

FINANCIALS IN DETAIL

Slide 5

Operations under restructuring

Scope

Operations in Slovakia closed

Sales of carbon steel and aluminum och Czech market discontinued

Small production facility in Estonia closed

Status

Progress according to plan

Sale of building in Czech Republic and liquidation in Slovakia remains

Financial impact

Q4 sales of SEK 14 M (84), YTD sales of 155 MSEK (386)

Q4 EBIT of SEK -2 M (-4), YTD EBIT of SEK -52 M (-32)

Non-recurring cost of SEK -39 M taken in Q1 2016 - no further costs expected

Slide 6

Q4 tonnage – Increased tonnage on main markets

Growth in tonnage and sales (%) Sales affected by restructuring

Q4 YTD

Change in Net Sales -3% -7%

Tonnage -13% -8%

Price/Mix +8% 0%

Currency +2% +1%

Lower tonnage due to restructuringQ4 YTD

Change in tonnage -13% -8%

Sweden & Poland +1% 0%

Finland & Baltic +5% +4%

Op. under restructuring -97% -60%

-10%

-1% -1%

-3%

1%

-5%-3%

-13% -13%-15%

-10%

-5%

0%

5%

10%

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

Tonnage growth, % Sales growth, %

Slide 7

Gross margin – continued improvement compared to 2015

Gross profit improved to SEK 133 M

(112) despite lower sales

Gross margin improved to 14.0% (11.4)

with help from inventory gains

Underlying gross margin improved to

13.0% (12.0)

Mix of sales between business areas had

positive effect on margins

Underlying margin improvement in BA

Finland and Baltics

0.4 percentage point negative impact

compared to Q3 from Lecor and BE

Group Produktion performance

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

124

144 144

124112

127

163

138 133

10%

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

0

20

40

60

80

100

120

140

160

180

200

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

Gross profit, SEK M Gross margin % uGross margin %

Slide 8

Quarterly comparison to last yearSEK M Q1 Q2 Q3 Q4 FY 2016

Net sales 2015 1 104 1 104 966 981 4 155

Change BA Sweden & Poland -49 -22 -26 -4 -101

Change BA Finland & Baltics -31 +17 +15 +48 +49

Change Other -46 -52 -63 -72 -233

Net sales 2016 978 1 047 892 953 3 870

Change -11% -5% -8% -3% -7%

Operating result 2015 10 10 -117 -17 -114

Inventory gains (-)/ losses (+) 2 2 3 5 12

Non-recurring items - - 124 - 124

Underlying operating result 2015 12 12 10 -12 22

Change in sales -17 -8 -10 -3 -38

Change in underlying gross margin 7 16 5 10 38

Change in overhead costs 7 1 5 -2 11

Underlying operating result 2016 9 21 10 -7 33

Inventory gains (+)/losses (-) -9 10 16 11 28

Non-recurring items -45 - - - -45

Operating result 2016 -45 31 26 4 16

Slide 9

Working capital – remains on a good level

Working capital (SEK M)

Year-end working capital decreased by

SEK 19 M compared to last year

Increase driven by tonnage growth

Structural reduction from restructuring

Czech and Slovakia

Q4 average working capital tied-up

13.1% (14.0)

426

486512

575

525

464 454493 506

0%

5%

10%

15%

20%

25%

30%

0

100

200

300

400

500

600

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

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

Slide 10

Cash-flow – FY operating cash-flow of SEK 78 M and

net debt reduction

Q4 operating cash-flow of SEK 3 M (37)

Investment cash-flow of SEK -3 M (-6) in Q4

Rolling twelve months operating cash flow of

SEK 78 M (-93)

Net debt of SEK 562 M (609) and gearing of

73% (78)

Debt amortization of SEK 66 M during the

year

Available cash SEK 127 M (133)

Cash-flow from operating activities (SEK M)

49

-54

-28

-48

37

51

36

-12

3

-120

-80

-40

0

40

80

120

-60

-40

-20

0

20

40

60

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

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

Slide 11

Q4 Q4 Change R12

SEK M 2016 2015

Net sales 953 981 -28 3,972

Underlying EBIT -7 -12 +5 28

% of Sales -0.7% -1.2% +0.5% 0.7%

Inventory gains/losses 11 -5 +16 -7

Non-recurring items - - - -169

EBIT 4 -17 +21 -148

% of Sales 0.4% -1.7% +2.1% -3.7%

Financial net -6 -9 +3 -28

Earnings before tax -2 -26 +24 -176

Net earnings -2 -23 +21 -190

Operating Cash-Flow R12 78 -93 +171 12.9

Net Debt 562 609 -47 -14.64

Gearing 73% 78% -5% 76

Financial Summary

Slide 12

BUSINESS AREAS

STATUS Q4 2016

Slide 13

BA Sweden & Poland – result affected by problems in

two units

Market demand above last year

Tonnage up 1% vs Q4 2015

Net sales down 1%, and amounted to SEK

490 M (494)

uEBIT of SEK -2 M (2)

Lower underlying result explained by

development in Lecor and BE Group

Produktion. Combined loss SEK -12 M (-4)

EBIT of SEK 2 M (1)

uEBIT (SEK M) and sales growth (%) Comments Q4 2016

911

52

7 81

-2

-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 Q3 16 Q4 16

Underlying EBIT, SEK M Sales growth, %

Slide 14

BA Finland & Baltic – Significantly improved result

Market demand above last year

Tonnage up 5% vs Q4 2015

Net sales up 12%, on the back of rising

average prices and a strengthened euro,

and amounted to SEK 455 M (407)

uEBIT of SEK 5 M (-3)

Underlying result improved due to higher

sales and margins

EBIT of SEK 12 M (-7)

uEBIT (SEK M) and sales growth (%) Comments Q4 2016

10 11 12

-3

12

21

16

5

-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 Q3 16 Q4 16

Underlying EBIT, SEK M Sales growth, %

Slide 15

OUTLOOK

Slide 16

Business outlook

Continued growth in market demand expected.

Restructuring will continue to have negative impact on

Group tonnage during first half of 2017

Prices expected to continue upwards in the beginning of the year

Distribution business expected to see continuous improvement

Focus to improve result in Lecor and BE Produktion Eskilstuna

Slide 17

Summary and conclusions

Market demand and price level have

upwards trend

Work with units under restructuring

coming to a end, savings will be fully

realized early 2017

Improvement actions in Lecor and

BE Production Eskilstuna

Positive Q4 EBIT of SEK 4 M (-17)

Positive cash-flow and net debt reduction

New Group structure and initiatives will

continue to improve performance

Slide 18

Q&A

Slide 19

APPENDIX

FINANCIAL

INFORMATION

Slide 20

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)

Description of new segments

Slide 21

FY FY Change R12

SEK M 2016 2015

Net sales 3 870 4 155 -285 3,972

Underlying EBIT 33 22 +11 28

% of Sales 0.9% 0.5% +1.4% 0.7%

Inventory gains/losses 28 -12 +40 -7

Non-recurring items -45 -124 +79 -169

EBIT 16 -114 +130 -148

% of Sales 0.4% -2.8% +3.2% -3.7%

Financial net -27 -48 +21 -28

Earnings before tax -11 -162 +151 -176

Net earnings -20 -169 +149 -190

Number of shares period end (M) 12.98 12.98 0 12.9

EPS (SEK) -1.56 -13.02 +11.46 -14.64

Operating Cash-Flow R12 78 -93 +171 76

P&L Summary January to December

Slide 22

Dec Dec Change

SEK M 2016 2015

Non-current assets 874 907 -33

Inventories 527 546 -19

Accounts Receivable 442 409 +33

Other Receivables 49 66 -17

Cash 27 33 -6

Total Assets 1 919 1 961 -42

Equity 771 785 -14

Interest bearing liabilities 590 642 -52

Accounts payable 375 353 +22

Other liabilities 183 181 +2

Total Equity and liabilities 1 919 1 961 -42

Working Capital 506 525 -19

Net Debt 562 609 -47

Gearing 73% 78%

Balance sheet

Slide 23

Appendix: Tonnage development

Tonnage (‘000 tons)

97108 108

93 97103 105

81 85

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

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

Tonnage Tonnage growth, %

Slide 24

Appendix: Sales per product area

Q4 Sales (SEK M) YTD Sales (SEK M)

305

357

178

48 65

302

370

198

46 650

100

200

300

400

500

Long Flat Stainless Aluminium Other

2016 2015

1260

1434

722

194 260

1284

1645

780

194 2520

500

1000

1500

2000

Long Flat Stainless Aluminium Other

2016 2015

Slide 25

Appendix: Sales per business solution

Q4 Sales (SEK M) YTD Sales (SEK M)

113

406434

136

466

379

0

100

200

300

400

500

600

Direct Inventory Service

2016 2015

479

1714 1677

567

1960

1628

0

500

1000

1500

2000

Direct Inventory Service

2016 2015