BE GROUP YEAR-END REPORT 2011

BE GROUP YEAR-END REPORT 2011 - Including company presentation ti Roger Johansson, President and CEO Torbjörn Clementz, CFO and Executive Vice President Slide 1

Slide 2 BE GROUP PRESENTATION

BE Group Trading and service company in steel and other metals Broad range of steel, stainless and aluminum Increasing production service Strong logistics i 900 employees in 10 countries Wide range of customers Turnover SEK 5,9 billion Listed on NASDAQ OMX Stockholm BE Group China (Shanghai) Slide 3

Financials recovery of sales and earnings continues Sales 7 500 6 000 5 318 5 790 7 650 7 713 EBIT 6 681 750 550 550 532 5 941 5 129 600 4 500 4 168 304 394 472 510 454 4 308 450 3 000 1 500 0 144 300 265 136-3 98 75 131 96 300 150 0-150 Net sales, SEK M Underlying EBIT, SEK M EBIT, SEK M -266 2003 2004 2005 2006 2007 2008 2009 2010 2011-300 Slide 4

Shareholder structure December 31, 2011 Largest shareholders Largest countries Name #ofshares % % AB Traction 6,370,201 12.7 Sweden 86.8 Swedbank Robur Fonder 4,611,999 9.2 Great Britain 3.7 IF Skadeforsäkring AB 3,774,669 7.6 Luxembourg 3.7 Odin Fonder 2,686,658 5.4 USA 1.5 SEB 1,421,177 2.8 Isle of Man 0.9 Other shareholders 31,135,296 62.3 Other countries 3.4 Total number of shareholders 9,570 Slide 5

The foundation of the business concept Steel, stainless steel and aluminum Independent Efficient distribution Excellent service Production service Strengthening customers competitiveness Slide 6

Broad range of products and production service offerings Hot rolled plates Stainless steel Long products Thin sheets and coils Steel tubes Aluminum Reinforcement Engineering steel ~20,000 000 products Cutting and slitting Shot blasting and painting Laser cutting, bending, Sawing drilling etc. Slide 7

BE Group s added values Few steel producers Broad customer base Material knowledge Inventory Management Production service Logistics solutions Slide 8

Our business model Mission Improve our customers competitiveness Customer development Purchasing excellence Optimized inventory Competitive production service Effective pricing Improved earnings Slide 9

BE Group A solutions provider Design & Production planning Materials & Production Customized distribution Ready product Moving forward in the value chain Slide 10

Slide 11 BE GROUP YEAR-END REPORT 2011

Q4 Operating loss but strong cash-flow Financial Highlights Net sales increase of 2% Delivered tonnage increase of 5% Operating result of SEK -19 M (-8) Improvement in underlying operating result to SEK 18 M (7) Strong cash-flow from operating activities of SEK 162 M (58) Proposed dividend SEK 0.25 per share Slide 12

Market highlights Operational highlights Sales affected by uncertainty Inventory adjustment finalized regarding future steel prices and Transformation of Polish and Czech demand business ongoing Weakening price sentiment until Continued phasing in of other December operational investments Demand in Sweden and Finland Several internal initiatives launched to largely at Q3-levels improve gross margin Decent demand but heavy price Profitability program initiated and pressure in CEE running according to plan Slide 13

Slide 14 FINANCIALS IN DETAIL

Tonnage continued to increase 150 125 100 75 Tonnage ( 000 tons) 600 500 400 300 Demand more or less in-line with Q3 Increase of 5% vs Q4 2010 50 200 25 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 Quarterly (LHS) Rolling 12 months (RHS) 0 Slide 15

Downward price pressure continued during Q4 Average sales price (SEK/kg) 13,00 12,00 11 00 10,00 9,00 8,00 7,00 11,00 Weak price sentiment during the quarter Q4 average sales price decreased 3% 6,00 vs Q4 2010 and 1% vs Q3 2011 5,00 4,00 3,00 200 2,00 1,00 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 Quarterly Rolling 12 months Slide 16

Improvement of underlying EBIT Q4 Q4 Change Q3 SEK M 2011 2010 2011 Net sales 1,405 1,383 +22 1,420 Underlying EBIT 18 7 +11 23 % of Sales 1.3% 0.5% +0.8% 1.6% Inventory losses -26-15 -11-19 Non-recurring items -11 - -11 - EBIT -19-8 -11 4 % of Sales neg neg - 0.3% Earnings before tax -36-21 -15-9 Net earnings -37-18 -19-10 EPS (SEK) -0.74-0.37-0.37-0.20 Cash-flow before change in net debt 133 30 +103-68 Net debt 773 842-69 924 Net debt / Equity 96% 107% 108% Slide 17

High inventory level during fall affects EBIT Sales, EBIT and uebit (SEK M) Sales EBIT EBIT of SEK -19 M (-8) Inventory losses of SEK -26 M (-15) Underlying EBIT improved to SEK 18 M (7) Non-recurring items Profitability program SEK -26 M Reversal of provision SEK 15 M SEK -11 M Slide 18

Strong cash-flow due to working capital reduction Cash-flow (SEK M) Cash-flow from operating activities SEK 162 M (58) Working capital tied up of 9.4% (10.4) Investments t of SEK 28 M Net debt of SEK 773 M (842) Unused credit facilities and available cash of SEK 371 M Gearing of 96% (107) Slide 19

Full year comparison Jan-Dec Jan-Dec Change SEK M 2011 2010 Net sales 5,941 5,129 +812 Underlying EBIT 131 75 +56 % of Sales 2.2% 1.5% +0.7% Inventory gains/losses -20 23-43 Non-recurring items -15 - -15 EBIT 96 98-2 % of Sales 1.6% 1.9% -0.3% Earnings before tax 48 42 +6 Net earnings 20 29-9 EPS (SEK) 0.41 0.58-0.17 Cash-flow before change in net debt 76-110 +186 Net debt 773 842-69 Net debt / Equity 96% 107% Slide 20

Slide 21 BUSINESS AREAS STATUS Q4 2011

BA Sweden Stability in demand Sales, EBIT and uebit (SEK M) Sales EBIT Demand keeping up largely at Q3-levels with normal seasonal effect Net sales increase with 5% and tonnage increase by 2% Underlying EBIT-margin of 3.3% New production facility for Lecor Stålteknik in production Personnel cutbacks initiated Slide 22

BA Finland Cautiousness among customers Sales, EBIT and uebit (SEK M) Sales EBIT Demand largely at Q3-levels also in Finland Net sales decreased with 5% due to tonnage decrease Continued price pressure Extension of production facility in Lapua operational in March Personnel cutbacks ongoing Slide 23

BA CEE Ongoing profitability improvement program Sales, EBIT and uebit (SEK M) Sales EBIT Increase in net sales of 9% Increase in shipped tonnage of 28% with impact from sell-out activities Negative price trend during the quarter Inventory consolidation and streamlining product range in Czech Republic affected the result Operations started in Trebaczew, Poland Slide 24

Slide 25 OUTLOOK

Current business situation and outlook Slightly optimistic outlook from customers for H1 Stable demand expected in Sweden and CEE Steel producers continue to push prices Utilize positive price sentiment during Q1 Efficiency measures and profitability program continues and will have positive impact Slide 26

Current focus Yield from investments and acquisitions Operational excellence Continued working capital efficiency Win the market Slide 27

Our vision BE Group shall be the most: - Professional - Successful - Respected steel service company Slide 28

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Slide 30 APPENDIX FINANCIAL INFORMATION

Profitability improvement program Ongoing since October Personnel reductions in all business areas Approximately 100 employees impacted Inventory consolidation and reduction of product portfolio in Czech Republic Production service concentration ti in Poland Annual cost savings estimated to SEK 50 M Costs of SEK 26 M provided during Q4 Fully initiated and full impact during Q1 2012 Slide 31

Appendix: Financial summary 2010 2011 Full year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 Tonnage 114 133 116 126 140 143 131 132 489 546 Net Sales 1,074 1,399 1,273 1,383 1,519 1,597 1,420 1,405 5,129 5,941 Underlying EBIT -10 46 32 7 47 43 23 18 75 131 % of Sales -0.9% 3.3% 2.6% 0.5% 3.1% 2.7% 1.6% 1.3% 1.5% 2.2% EBIT -28 86 48-8 45 66 4-19 98 96 % of Sales -2.6% 6.2% 3.8% -0.6% 2.9% 4.2% 0.3% -1.4% 1.9% 1.6% Net earnings -25 46 26-18 23 44-10 -37 29 20 Earnings/share 1-0.50 0.92 0.52-0.37 0.46 0.89-0.20-0.74 0.58 0.41 Cash flow 2-60 -30-51 30 63-52 -68 133-110 76 Working Capital 3 473 557 632 519 478 569 628 430 519 430 Underlying EBITA(%) -0.8 3.4 2.9 0.8 3.3 3.1 1.9 1.6 1.7 2.5 Underlying ROOC(%) -3.8 21.3 15.8 5.0 24.2 22.7 11.5 10.5 9.8 17.1 1 Earnings per share after dilution 2 Cash flow before change in Net Debt 3 Period end working capital Slide 32

Appendix: Sales per customer segment January-December Q4 OEM & partners OEM & partners Project Project Preprocessing Preprocessing Retail Retail 2011 2010 2011 2010 Slide 33

Appendix: Sales per product area January-December Q4 Long steel +14 Flat steel +16 Long steel Flat steel -2-2 Reinforce- ment Reinforce- ment +37 +56 Stainless steel +14 Stainless steel +10 Aluminum -6 Aluminum -23 Other Other 2011 2010 Change % 2011 2010 Change % Slide 34

Appendix: Sales per channel January-December Q4 Direct +6 Direct +2 Inventory +17 Inventory +3 Service +27 Service +2 Sales outside scope of channels not included Sales outside scope of channels not included 2011 2010 Change % 2011 2010 Change % Slide 35