Other information

Significant events during the first quarter

During the quarter, BE Group has signed an agreement to acquire the assets of Hercules Rebar in Norrköping from Hercules Grundläggning AB, a subsidiary within NCC. Hercules Rebar offers reinforcement in the shape of straight steel, reinforcement mesh and cut and bent reinforcement to projects all over Sweden and the turnover in 2021 amounted to approximately SEK 140 M. The acquisition include machines, inventory, employees and rental agreement for the reinforcement facility and a multi-year cooperation agreement on reinforcement with NCC.

The transfer of possession takes place on May 1 at the latest and the business will be a part of BE Group Sverige AB. The acquisition is estimated to have a marginally positive impact on the underlying result for 2022. More information about the aquisition will be released in connection with the report for the second quarter.

Significant events after the end of the period

No significant events have taken place after the end of the period.

Transactions with related parties

No transactions took place between BE Group and related parties that had a material impact on the company’s financial position and results.

Annual General Meeting 2022

BE Group’s Annual General Meeting will take place on April 21, 2022, at 4:00 pm in Malmö, Sweden. Please visit www.begroup.com for more information.

Proposed dividend

According to BE Group’s dividend policy, the Group will distribute at least 50 percent of profit after tax, over time. Dividends shall be distributed taking BE Group´s financial position and prospects into account. The Board of Directors proposes dividend of SEK 12 (-) to be paid for the financial year of 2021 which corresponds to approximately SEK 156 M.

Proposed composition of the Board

The Nominating Committee has proposed re-election of Board members Lars Olof Nilsson, Mats O Paulsson, Petter Stillström and Jörgen Zahlin and new election of Monika Gutén. It is proposed that Jörgen Zahlin be re-elected as Chairman.

Proposal for election of auditors

Based on the recommendation of the Audit Committee, the Nominating Committee proposes re-election of the auditing firm Öhrlings PricewaterhouseCoopers AB as the Company’s auditor.

Significant risks and uncertainties

Through its operations, BE Group is exposed to global macroeconomic factors, the competitive situation, structural changes in the market and the economy, as well as financial risks such as currency risks, interest risks, credit and counterparty risks. Within the companies of the Group, continuous processes are ongoing to identify existing risks and assess how these should be handled. The risk exposure is explained in the 2021 Annual Report, which was published in March 2022. Risks related to the war in Ukraine is described below.

The war in Ukraine

As Russia and Ukraine are major producers of iron ore and other inputs and European manufacturers are importing parts of their coal needs from Russia, the war will continue to have a major impact on the European steel market with shortages and sharp price increases as a possible consequence. About 10% of BE Group’s total steel purchases in 2021 came from Russian-controlled steel producers. The imposed sanctions resulted in BE Group immediately stopping orders and payments to companies subject to it. BE Group is monitoring the development closely and are working proactively with finding alternatives to secure the deliveries of steel. The effect of sanctions and potentially other consequences connected to the war may affect the company’s financial position.

Accounting principles

The interim report was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company’s interim report is prepared in compliance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities.

Refer to the 2021 Annual Report for details of the Group’s other accounting principles and definitions of certain terms. The principles applied are unchanged in relation to the Annual Report. In other regards, the new standards and interpretations that have come into effect from the financial year 2022 have had no significant effect on the financial reporting.