Slide 1

Anders Martinsson, President and CEO

Andreas Karlsson, CFO

BE Q3

BE GROUP

INTERIM REPORT

JANUARY – SEPTEMBER 2015

Slide 2

Q3 – Improved underlying result

Financial highlights

Net sales decreased by 3%

Gross profit of SEK 124 M (125)

Underlying operating result (uEBIT) of SEK 10 M (6)

Operating result (EBIT) of SEK -117 M (-3) affected by write-downs of assets in amount of SEK 124 M

Net profit SEK -133 M (-16)

Slide 3

Operational highlights

Increased shipped tonnage in both BA Sweden and BA Finland compared to Q3 2014

Weak invoicing in the Czech and Slovak markets due to low demand and more restrictive view on credit exposure

Gross margin in line with first half 2015 and improved compared to Q3 2014

Costs in line with Q3 2014

Market situation

Challenging market conditions

Demand in the Swedish market in line or slightly up compared to Q3 2014

Demand in the Finnish market somewhat lower than a year ago

Steel prices continued slightly downwards during the quarter

Slide 4

FINANCIALS IN DETAIL

Slide 5

Quarterly comparison to last year

SEK M Q1 Q2 Q3 Q4 YTD

Net sales 2014 1 083 1 112 998 3 193

Net sales 2015 1 104 1 104 966 3 174

Change 2% -1% -3% -1%

Operating result 2014 13 3 -3 13

Inventory losses 4 1 0 5

Non-recurring items 0 0 9 9

Underlying operating result 2014 17 4 6 27

Tonnage-, price- and mix effects 2 0 -4 -2

Change in underlying gross margin -1 7 8 14

Change in overhead costs etc. -6 1 0 -5

Underlying operating result 2015 12 12 10 34

Inventory gains/losses -2 -2 -3 -7

Non-recurring items 0 0 -124 -124

Operating result 2015 10 10 -117 -97

Slide 6

Asset Write-down

Based on the YTD September result compared to targets and a revised view on

future performance an adjustment to asset values has been identified:

Goodwill in Lecor and BE Production written-down by 54 MSEK

Value of investment in joint venture (ArcelorMittal BE Group SSC AB) written-down

by 50 MSEK

Material assets in BE Czech written-down by 20 MSEK

Total write-down of 124 MSEK affects operating profit in the period

Slide 7

Q3 tonnage – Sweden and Finland stronger than in

Q3 2014

Growth in tonnage and sales (%) Net sales decreased by 3% vs Q3 2014

Q3 Jan-Sep

Change in Net Sales -3% -1%

Tonnage -3% -2%

Price/Mix -1% -1%

Currency 1% 2%

Tonnage growth in main business areasQ3 Jan-Sep

Change in tonnage -3% -2%

Sweden +9% +5%

Finland +3% +4%

Other Units -32% -24%

-15% -17% -16%

-2%-4%

-2% -6%

-11% -11% -10%-1% -1%

-3%

-30%

-20%

-10%

0%

10%

20%

30%

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Tonnage Net Sales

Slide 8

Underlying gross margin – Improvement compared to Q3

2014

Q3 underlying gross margin improved to 13.2% (12.5)

YTD underlying gross margin 13.2% (12.8)

More sales in BA Sweden and BA Finland have positive effect on margin

Margin improvements continue to be a focus area in competitive market

Sales and administration costs below last year

Currency affect comparison vs last year

Continued tight cost control

Overhead costs (SEK M) and margin (%)

116

136130 134

120

134 135 134

118

5%

7%

9%

11%

13%

15%

0

50

100

150

200

250

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

Un

de

rlyin

g g

ros

s m

arg

in

Ov

erh

ead

co

sts

Overhead costs SEK M Underlying gross margin %

Slide 9

Working capital development

Working capital (SEK M)

Period-end working capital increased by SEK 96 M compared to last year

Inventory increase during quarter, correction should be completed during Q4

Less sales in Czech and Slovakia

Factoring used to limit credit risk

Longer payment terms to suppliers

Average working capital tied-up 14.1% (11.8)

438

388

436465 479

426

486512

575

0%

5%

10%

15%

0

100

200

300

400

500

600

700

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

Working capital (period end) Working capital tied-up (average)

Slide 10

Cash-flow

Q3 operating cash-flow ofSEK -48 M (-8)

Investment cash-flow of SEK -2 M (0)

Operating cash-flow R12 SEK -81 M

Net debt of SEK 649 M (785)

Cash-flow from operating activities (SEK M)

-34

42

-48

-18-8

49

-54

-28

-48

-100

-75

-50

-25

0

25

50

75

100

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

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

Slide 11

BUSINESS AREAS

STATUS Q3 2015

Slide 12

385439

485 497

414

-60

-40

-20

0

20

40

60

-600

-500

-400

-300

-200

-100

0

100

200

300

400

500

600

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

EB

IT

Sa

les

Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M

BA Sweden – Sales growth compared to last year

No or small improvement in market demand compared to last year

Tonnage increased by 9% vs Q3 2014

Net sales increased by 7% vs Q3 2014

EBIT of SEK -42 M (6) and uEBIT of SEK 10 M (5) in Q3 2015

Write-down of shares in JV in amount of SEK 50 M

Sales, EBIT and uEBIT (SEK M)

Slide 13

BA Finland – Increased tonnage in weak market

Market demand slightly down vs last year

Tonnage increased by 3% compared to Q3 2014

Net sales in line with Q3 last year

Lower prices to some extent countered by positive currency effect of 2%

EBIT of SEK 11 M (11) and uEBIT of SEK 12 M (13) in Q3 2015

Sales, EBIT and uEBIT (SEK M)

426 431461 453

424

0

5

10

15

20

25

30

0

100

200

300

400

500

600

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

EB

IT

Sa

les

Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M

Slide 14

202

154178 174

146

-100

-80

-60

-40

-20

0

20

40

60

80

100

-250

-200

-150

-100

-50

0

50

100

150

200

250

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

EB

IT

Sa

les

Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M

Other Units – Challenging conditions in Central Europe

continues

Challenging market in Central Europe

Tonnage down 32%, driven by lower sales on Czech and Slovak markets vs Q3 2014

Net sales decreased by 28% vs Q3 2014

EBIT of SEK -81 M (-8) and uEBIT of SEK -7 M (-6) in Q3 2015

Write-down of Goodwill and material assets of 74 MSEK

Sales, EBIT and uEBIT (SEK M)

Slide 15

OUTLOOK

Slide 16

Current business situation and outlook

Demand expected to remain on current level adjusted for normal seasonal pattern

Steel prices flat or slightly downwards

Structural changes in the market continue to give opportunities for BE Group

Slide 17

Current focus areas

Build on strong position on main markets

Inventory reduction

Margin improvements

Cost control

Turn Other Units profitable

Slide 18

Slide 19

APPENDIX

FINANCIAL

INFORMATION

Slide 20

Appendix: Financial summary

1 Earnings per share after dilution 3 Period end working capital2 Cash-flow after investments

FY

Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014Tonnage 109 110 95 97 108 108 93 411

Net sales 1,083 1,112 998 1,009 1,104 1,104 966 4,202

Underlying EBIT 17 4 6 -9 12 12 10 18

% of sales 1.5% 0.3% 0.6% -0.9% 1.1% 1.1% 1.0% 0.4%

EBIT 13 3 -3 -30 10 10 -117 -17

% of sales 1.2% 0.3% -0.3% -3.0% 0.9% 1.0% -12.1% -0.4%

Net earnings -5 -7 -16 -45 0 -13 -133 -73

Earnings/share1 -0.10 -0.10 -0.22 -0.61 0.00 -0.12 -0.51 -1.07

Cash-flow2 -48 -20 -8 46 -58 -32 -50 -30

Working capital3 436 465 479 426 486 512 575 426

2014 2015

Slide 21

Appendix: Tonnage development

Tonnage (‘000 tons)

107 108 109 110

95 97

108 108

93

0

100

200

300

400

500

0

25

50

75

100

125

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

Quarterly (LHS) Rolling 12 months (RHS)

Slide 22

Appendix: Sales per product area

257

375

39

186

45

64

249

383

52

191

44

79

0% 10% 20% 30% 40% 50%

Reinforce-

ment

Stainless

steel

Aluminum

Other

Flat

steel

Long

steel

2015 2014

Q3 – Share of total sales (MSEK)

Slide 23

Appendix: Sales per channel

Q3 – Share of total sales (MSEK)

138

450

378

135

492

371

0% 10% 20% 30% 40% 50% 60%

Service

Inventory

Direct

Note: Sales outside scope of channels not included

2015 2014