[PPT] - Welcome to Ahlsells Capital Markets Day 2018 Stockholm, 4 September PowerPoint Presentation

SLIDE 1

Welcome to Ahlsell’s Capital Markets Day 2018

Stockholm, 4 September 2018 1

SLIDE 2

Karin Larsson

Head of IR and External Communication

2

Joined Ahlsell as Head of IR in 2017
Previous positions: IRO at Atlas

Copco, Stockholm, and Equity sales at SEB Enskilda and Barclays Capital, both positions in Frankfurt

SLIDE 3

Agenda for the day

3

Johan Nilsson CEO Kennet Göransson CFO Mikael Falk Head of M&A Q&A session 1 – 15 minutes Coffee break Claes Seldeby Head of operations Sweden Rune Flengsrud Head of operations Norway Mika Salokangas Head of operations Finland Branch insight tour Closing remarks / Walk to branch Dinner Q&A session 2 – 15 minutes Bus to dinner

SLIDE 4

Johan Nilsson

President and Chief Executive Officer

4

Appointed Group CEO in 2015
Joined Ahlsell in 2008 as Head of

Operations Sweden

Previously CCO of Sanitec, CEO of

IFÖ Sanitär and IDO

M. Sc. Business and Economics, Lund

University Sweden and M.Sc. Engineering, Lund Faculty of Engineering, Sweden

SLIDE 5 Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth

5

SLIDE 6

A strong success story… and the journey continues

1877 1970 1980 1990 2000 2010 2018 Geographical expansion Sweden Nordic Region Baltics Other strategic initiatives New roadmap developed for private label offering Web shop Product segment expansion Electrical Refrigeration Tools & Supplies HVAC & Plumbing DIY (Do it yourself) Customer segment expansion Construction China sourcing office Sustainability as business case PPE (Personal Protective Equipment)

6

SLIDE 7

Leading Nordic distributor in three product segments

7

45% 26%

Share of revenues RTM (rolling twelve months) 2018Q2

Tools & Supplies HVAC & Plumbing

29%

Electrical

SLIDE 8

Successful one-stop-shop for professionals

One-stop-shop

Strong sales force ~ 3 900 sales people (of 5 800)

8

SLIDE 9

For the customer: Unique distribution capacity

The broadest product offering in the Nordics
Strong local presence with specialist sales force
Accurate next morning delivery
Optimisation of transports
Value-added delivery
Lowering total cost

9

SLIDE 10

Fragmented and loyal customer base

1. Not to scale 2. SMEs refer to small and medium-sized enterprise customers. The definition of an SME varies across

Ahlsell’s product segments but is based on sales thresholds in some cases and the number of employees in other cases 3. Based on first historical registration date of customers that purchased from Ahlsell in 2015 Source: Company information as per financial year ended Dec 2015, Third Party/Company Analysis

80%

f sales derive from

customer relationships

longer than 5 years Top 10

customers account for

6%

f sales

SME customers

contribute to

45% of sales

More than 100 000 active customers 10

SLIDE 11

Cost-efficient access to a loyal customer base

in a geographically large and attractive market

The largest sales force in B2B in the Nordics
Strong omni-channel market access
Constant work towards improvements

For the supplier: Unique presence

11

SLIDE 12

12

For the employee: An attractive employer

Opportunity for development
Healthy values and good leadership
Work for increased diversity
A safe and sustainable workplace
Constant improvement

SLIDE 13 Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth

13

SLIDE 14 Net sales, EBITA and EBITA margin

Long track record of profitable growth

14

5yr CAGR ~6% 15yr CAGR ~8% ~2/3

rganic

CAGR is updated yearly. 1 2 3 4 5 6 7 8 9 10 11 12 5 000 10 000 15 000 20 000 25 000 30 000 27 484 2003 22 586 19 256 2004 21 779 20 434 9 883 2013 21 474 2005 2006 5.7% 29 315 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 8.7% 21 979 Q2 2018 RTM 11 119 18 958 16 245 18 985 20 639 20 435 24 606

Adj. EBITA margin, %

EBITA margin, % EBITA, MSEK Net sales, MSEK

SLIDE 15 Population and GDP growth Installation density increasing We have sucessfully increased both size and share of customer wallet Ahlsell growth vs. market growth

Historically, Ahlsell has outgrown the underlying market

15

Technical distribution growth

Volume growth

Ahlsell growth 4 9 12 14 3 4 7 6 2015 2016 2017 2018H1 Market growth, % Ahlsell sales growth, % We have sucessfully gained larger customer base Installation complexity increasing Distribution share

f market

stable ~70% Market growth is management’s best estimate

SLIDE 16 Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth

16

SLIDE 17

The Nordics is a good place to be

GDP outlook favourable for the coming years
Diversified industries throughout the different countries

create a stable business environment

Large current base of buildings and infrastructure to

maintain and develop for many years ahead

Population in main markets expected to

increase by 22% in ~20 years

17

SLIDE 18

Mixed directions, but aggregated points in positive direction

New construction Renovation Industrial Production Infrastructure Residential Non-residential Residential Non-residential

Population growth
Number of

dwellings

Interest rates
House prices
Vacancy levels
Number of

buildings/ commercial space

Number of

dwellings

Regulations and

subsidies

Housing stock age
Number of

transactions

Building stock age
Leasing renewals
Number of

transactions

Manufacturing
utput
Industry capex
Population growth
Urbanisation
Age of existing

infrastructure

Political initiatives

15% 15% 35% 20% 15%

f Sales
f Sales
f Sales
f Sales
f Sales

18

~Estimated 10y average exposure

SLIDE 19 2007 2008 2009 2010 2011 2012 2013 2014 2015

30
20
10

10 20 30 Swedish market cyclicality (2007-2015) y-o-y. Growth in real terms (%)

Std. dev. based on indexed figures (2007=100) based on El. and HVAC segments. Infrastructure treated as negative number in weighted average, as it is countercyclical.

Source: Eurostat, Prognoscentret, Economist Intelligence Unit, BCG analysis

Historical data shows that market is only moderately cyclical

Residential new build Civil engineering Industrial production Non-residential renovation Residential renovation Non-residential new build Wholesale market Industrial MRO Standard deviation vs. GDP 16 4 11 2 8

11

5 4

19

SLIDE 20 Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth

20

SLIDE 21

Create value for the customer!

21

Ahlsell makes it easier to be professional

SLIDE 22 Finland Norway Sweden Market position

1-2 2-4 3-5

Nordic market leader with bottom line potential

22

EBITA margin Market share and position Disadvantaged positions #4+ player with <10% ms ~3% EBITA Promising positions #2-4 player ~4-7% EBITA "Fortresses“ #1-2 player with >30% ms ~8+% EBITA % of group adj.EBITA

85 7 5

RTM = Rolling twelve months Illustration of the importance of market share % of group sales

66 19 12

SLIDE 23

Strategic direction in Denmark and segment Other

23

Denmark – strategic potential Estonia Other – mixed strategy

1% of revenues 2% of EBITA 4 branches

Poland Russia

2% of revenues 1% of EBITA 12 branches

SLIDE 24 Ahlsell Model Improvement Profitable Growth Ahlsell Way

Strategy for profitable growth

One Ahlsell

Sustainability in everything we do

The guiding principle

f our strategy is

"One Ahlsell"

“

24

SLIDE 25

Sustainability is an important element for value creation

‘”We’re not the

nes to solve

this problem” “We do what we have to do” “This is a part

f our core

business” ‘”It’s an advantage versus competitors” “We develop completely new techniques and think circular” Traditional Explorer Challenger Innovator Disrupter Value creation Risk of destroying value Ahlsell today Ahlsell 2008 Ahlsell 2012

25

SLIDE 26

Achievements within sustainability recognised

26

EcoVadis Rating: Silver Rating based on the normative principles of the UN Global Compact S-ray rating from 2018-08-08 sray.arabesque.com. Based on evaluation of 6874 listed companies. Average rating for Swedish companies (114) are ESG: 52 and GC: 55. Ecovadis evaluates Environment, Fair labor practices, ethics/fair business practices, and supply chain. Assessment of companies’ performance on financially material sustainability criteria s-ray ESG score: 68 vs. average 51 s-ray GC score: 65 vs. average 54 EcoVadis sustainable procurement program within global supply chains

SLIDE 27

Growth investments temporarily impacts operational leverage

27

Initiatives (digital etc.) Investing in processes and governance Sales T=0 Investing in proven model Sales T=1 High pace of acquisitions and

rganic initiatives

Profitable growth

Illustration of EBITA margin and potential impact of growth initiatives Ahlsell Model Ahlsell Way Improvement Profitable Growth

SLIDE 28

Organic initiatives driving profitability improvement

Leverage Scale

Central sourcing Customer interface Sales efficiency Private label Pricing Customer targeting

28

Cross sales Solutions and services

Larger customer base Increased size and share of customer wallet

SLIDE 29

Successful execution on M&A pipeline

29

~250 M&A

targets of varying size in pipeline corresponding to

~53 BSEK

f sales

~19 M&A targets

realized since listing corresponding to

~1,7 BSEK

f sales

Well-defined acquisition model Experience of tracking and maximising synergies

SLIDE 30

Meet demand and create customer value by additional services

Broad product

ffering and

availability Precision in full and quick delivery Digital services Work-site logistics Additional value enhancing services

Ahlsell today and into the future

30

SLIDE 31

Digital Market Leader in B2B e-commerce and digital services

31 Seamless

nline offering

enables strengthened customer relationships

E-commerce ~ 28%

f sales

22 22 21 23 26 28 5 10 15 20 25 30 2013 2014 2018 H1 2015 2016 2017 E-commerce of sales, % E-commerce of group sales

SLIDE 32 From this… … to this!

Construction site logistics in transformation

32

Delivery with marked pallets and packages… … lifted directly to the assembly place

SLIDE 33

Work-site logistics safeguards and improves market position

Traditional value chain Value chain with work-site logistics Ahlsell will: … … influence choice of material … offer a full assortment …assist with selection of installer Ahlsell has an important position in the value chain …increase efficiency and sustainability …decrease cost Supplier Distributor Installer Constructor Real estate owner Supplier Distributor Work-site logistics Installer Work-site logistics Constructor Work-site logistics Real estate

wner

33

SLIDE 34

34

Case example: Dalarö

Collaboration with BTH Bygg in the construction

f 13 multi-family houses in Dalarö, east of

Stockholm

Small area with limited storage capacity
Environmental sensitive area (and roads)

that cannot handle too much traffic

Tight time schedule

Full logistic solution provided by Ahlsell

SLIDE 35

Value-enhancing services to strengthen customer loyalty

35

SERVICES AND VALUE CREATION

Tryckt & Klart – Prints and embroidery on workwear and PPE Shop on Sit ite BEAst label – packaging label Customer branding – Ahlsell delivers in the name of the customer Kit packing and parcels Assembling

G PS-deli livery

Mediate cranes Consoli lidated

rder picki

icking

Track n’Trace – Notifications on delivery

Runners – Committed staff on site that perform simple tasks Terminal pick-up Offloading assistance Vending machines Ahls lsell ll Aca cadem y

E.g. co

courses to work k safely ly Technically integrated logistics

SLIDE 36 Ahlsell at a glance Long track record of profitable growth The Nordics is a good place to be Strategy for future profitable growth

36

SLIDE 37

Kennet Göransson

Chief Financial Officer

Joined Ahlsell as CFO in 2014
Previously CFO for Indutrade,

Addtech and Bergman & Beving

B.Sc. Business and Economics,

Linköping University, Sweden

37

SLIDE 38 Resilient and prepared Room to improve from current levels Committed to financial targets

38

SLIDE 39

Few financial adjustments and “business cycle resilient”

Net sales, EBITA and EBITA margin

39

5yr CAGR ~6% 15yr CAGR ~8% ~2/3

rganic

CAGR is updated yearly. 5 000 10 000 15 000 20 000 25 000 30 000 26 2 27 5 28 1 24 29 30 3 4 6 8 25 7 11 119 2003 21 779 2008 16 245 2009 2005 2016 9 883 2011 Q2 2018 RTM 2012 2007 2004 2006 8.7% 2010 21 474 2013 2014 2015 21 979 18 985 19 256 5.7% 20 435 22 586 24 606 27 484 29 315 18 958 20 639 2017 20 434

Adj. EBITA margin, %

Net sales, MSEK Gross margin, % EBITA margin, % EBITA, MSEK

SLIDE 40

Gross margin realisation impacted by a number of factors

Market share and scale + National market share in segment + Leverage on logistics + Local market share in segment + Proximity to customer (geographically) Customer mix + Market dynamics (small vs. large projects) + Customer segment (multi-assortment customers) + SME purchasing behaviour (also in large companies!) Delivery mix + Branches higher (due to cross-selling and private label) = Warehouse sales at average gross margin

Direct lower

(but also lower cost to handle) Product mix + Tools & Supplies + Private label + Cross-selling + Non-core products (e.g. infrequent, supplies)

Gross margin

26.9%

40

Q22018 RTM

SLIDE 41

Gross margin status per segment

Sweden 28.8% Norway 25.4% Finland 18.4% Market share and scale Product mix Customer mix Delivery mix

Q22018 RTM

41

SLIDE 42 Late cycle, flexible costs Case example: 2009 financial crisis (group)

Resilient business model with flexible cost structure

42

86 87 85 138 88 91 96 96 93 98 123 72 Gross profit Revenues Index (2008=100) EBITDA Cash conversion rate, % 2009 2010 2011 Resilient profit base Diversified market exposure with considerable renovation exposure Asset light operations Variable cost structure (leased locations and purchased transport) Continuous M&A activity with synergy realisation In a downturn

Reduce variable cost
Reduce working capital

In an upturn

Increase variable cost
Increase working capital
Organic initiatives

Profit

SLIDE 43 Resilient and prepared Room to improve from current levels Committed to financial targets

43

SLIDE 44

Operational leverage not clearly visible

18 000 19 000 20 000 21 000 22 000 23 000 24 000 25 000 26 000 27 000 28 000 29 000 30 000 8.0 10.0 7.0 7.5 9.5 8.5 9.0 2014Q4 2017Q4 2016Q1 2015Q1 2015Q2 2015Q3 2015Q4 2018Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2018Q2

Adj. EBITA margin, %, RTM

Net sales, MSEK, RTM Four rolling quarters

44

SLIDE 45

Drop through development is similar in main markets

45

Sweden Norway Finland 733 814 Cost increase MSEK Gross profit increase

Adj. EBITA

increase 1.547

53%

174 83 91 MNOK Gross proft increase Cost increase

Adj. EBITA

increase

52%

7,2 2,6 4,6 MEUR Gross profit increase Cost increase

Adj. EBITA

increase

64%

”Drop through” 2015Q2-2018Q2 (RTM).

SLIDE 46

Growth investments temporarily impacts operational leverage

46

Sales T=0 Investing in proven model High pace of acquisitions and

rganic initiatives

Investing in processes and governance Initiatives (digital etc.) Sales T=1

Profitable growth

Illustration of EBITA margin and potential impact of growth initiatives Ahlsell Model Ahlsell Way Improvement Profitable Growth

SLIDE 47 Scale advantage Lower cost to serve Spreading costs Scale advantage Value-added selling

What drives our operational leverage potential?

47

Other (organic initiatives and M&A) EBITA, % Full potential Pricing excellence Supply chain control Sales force effectiveness Cost control (variable and fixed)

SLIDE 48

Supply chain control

Examples of KPI’s and current trend:

Increase of private-label sales

(absolute)

Increase of portfolio effectiveness

(Gross margin / inventory)

Reduction of number of articles with

low annual turnover

Terms improvement

(yearly negotiations)

Continued assessment of suppliers

(sustainability goal)

48

100 113 109 123 139 151 20 40 60 80 100 120 140 160 H1 2018 2017 2013 2014 2016 2015 Private-label sales, index 100 =2013

SLIDE 49

Sales force effectiveness and pricing excellence

Examples of KPI’s and current trend:

SME targeting
Frequency pricing
Sales force efficiency

(Customer visits / external sales rep.) (Turnover / external sales rep.)

49

Sales force effectiveness further improved by:

Sales and Leadership training
Role descriptions and KPI’s
Coaching and feedback for performance
Common sales processes
New CRM and telephone system

SLIDE 50

Lean with cost control

50

Operational expenses Capital expenditure Capital requirements low as we grow further Increased focus on efficiency measures 71 60 91 81 68 58 86 79 10 20 30 40 50 60 70 80 90 100 % of gross profit consumed by costs Finland Group Sweden Norway 2015Q2 RTM 2018Q2 RTM

Sales force efficiency
Warehousing capacity utilisation
Benchmarking and follow up
Harvest synergies from acquisitions
Cost-saving and efficiency-improving

measures

Continued investments in efficient

warehousing

Already upgraded IT infrastructure
Asset-light operations

SLIDE 51 High pace of M&A impacting EBITA margin negatively in the short term Average EBITA margin on acquisitions

Other – Organic initiatives and M&A

8,1 8,4 8,7 8,1 6,4 5,9 6,9 6,8 1 2 3 4 5 6 7 8 9 2015 2016 2017 2018 H1 Ahlsell EBITA margin reported (incl. Acquisitions), RTM Average EBITA margin of acquisitions (when acquired) Dilutive Dilutive Dilutive Dilutive

51

SLIDE 52 Resilient and prepared Room to improve from current levels Committed to financial targets

52

SLIDE 53 What is IFRS 16? IFRS 16 will primarily affect lessees, and the main effect is that all leases currently accounted for as

perating leases are to be accounted for as finance

leases. When does it come into effect? As of 1 January 2019. Ahlsell figures for 2018 will not be recalculated. How will Ahlsell implement IFRS 16? Adjustments relating to IFRS 16 will only be made

n group level. Segment reporting will be based on

the same principles as today.

IFRS 16 and its impact on Ahlsell’s financial reporting

The above figures are preliminary and may change with changed assumptions about discount rates or when reviewing specific agreements. The above figures reflect the Group's best assessment at the present time. Gross margin +0,3 percentage points EBITDA margin +2,0 percentage points EBITA margin +0,3 percentage points EBIT margin +0,3 percentage points EPS Marginal impact Leverage +0,3x Balance sheet + BSEK 2,4 Equity/Assets ratio, %

3 percentage points

Estimated impact of IFRS 16

53

SLIDE 54

Cash conversion target unchanged

Negative inventory effect due to strong sales growth and growth initiatives (mainly in 2017)

Securing deliveries in a strong growth environment
Branch expansion
Private label expansion
Strategic purchases
Underperformance in some areas

(e.g. forecasting errors due to cold winter) Negative receivables effect (mainly in Q2 2018)

Strong (accelerating) growth environment
Calendar effect in connection with closing of period

Payables at good level

54

56 84 92 119 138 96 72 91 112 90 92 90 78 70 10 20 30 40 50 60 70 80 90 100 110 120 130 140 2010 2008 2005 2013 2009 2006 2017 2007 2016 2012 2011 2014 2015 2018Q2 RTM Target > 90 Cash conversion (Operating cash flow / EBITDA) Calculation: From 2019 onwards, the cash conversion calculation will use an EBITDA which is adjusted for IFRS16 impact. I.e. calculated in the same way as of today.

SLIDE 55 Leverage target 2-3x Proven deleveraging capacity Leverage (Net debt/EBITDA) Long term financing in place Maturity profile Of total 10 783 MSEK, 3 229 MSEK are unutilised

Leverage target unchanged

55

1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 2018 2019 2020 2021 2022 Term Loan A SEK Term Loan A EUR Term Loan A NOK Term Loan B Revolving facility A Revolving facility B MTN Bond 3,9 4,8 3,9 3,3 2,6 2,9 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 2015 2013 2014 2016 2017 Q2 2018

SLIDE 56

Financial targets and outcome

* Operating cash flow / EBITDA ** Net debt / Adj. EBITDA

56

4 9 12 14 3 4 7 6 2015 2016 2017 H1 2018 Ahlsell sales growth, % Market growth, % Total sales growth +2-3% above market

Adj. EBITA margin

Continuous increase 8,3 8,7 8,8 8,7 8,1 8,4 8,7 8,7 2015 2017 2016 2018Q2 RTM

Adj. EBITA margin, %

EBITA margin, % Cash conversion rate* Above 90% over time 92 90 78 70 2015 2016 2018Q2 RTM 2017 Cash conversion rate, RTM, % Target, % Leverage** 2-3x 3,9 3,3 2,6 2,9 H1 2018 2015 2016 2017 Net debt ratio, RTM Pay out ratio 40-60% of net profit 0,35 1,65 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 3,74 2015 2016 3,28 2017 Q2 2018 RTM 0,21 1,11 DPS, SEK EPS, SEK, RTM 40% 50% Target

SLIDE 57 Resilient and prepared Room to improve from current levels Committed to financial targets

57

SLIDE 58

Mikael Falk

Head of M&A

58

Joined Ahlsell in 2007. Appointed

Sales Director Sweden in 2008 and appointed Head of M&A in 2016

Previously Sales Director Ahlsell

Sweden, CEO Comfort and CEO Onninen AB

Officer’s degree, Swedish Defence

University

SLIDE 59 M&A is in our DNA Some examples M&A onwards

59

SLIDE 60

>500 MSEK in average turnover acquired p.a. last 10 years

60

The acquisitions in 2018 are announced, but in some cases not yet completed.

46

acquisitions in the last ten years

89

since 1996

166 1 542 326 1 359 138 1 434 337 30 3 256 1 265 964 1 504 173 850 73 1 278 426 96 600 777836 2 4 6 8 10 12 14 500 1 000 1 500 2 000 2 500 3 000 3 500 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 MSEK Acquisitions Acquired sales Number of acquisitions

SLIDE 61

2017: 11 acquisitions totalling 780 MSEK in turnover

61

SLIDE 62

2018: 7 acquisitions… and more to come!

62

Swedish acquisitions YTD:

MSEK 306

Norwegian acquisitions YTD:

MSEK 495

Finnish acquisitions YTD:

MSEK 35

Acquired revenues for Ahlsell Group YTD: MSEK 836 ~Annual revenues

SLIDE 63 M&A is in our DNA Some examples M&A onwards

63

SLIDE 64

Example: Add on Hjelmbergs

64

Hjelmbergs (nowadays Ahlsell) is a distributor towards professional customers in Karlshamn, south of Sweden. It has a strong position within tools and supplies – both with well-known brands and private label. Acquired 2014 with revenues ~55 MSEK and 22 employees. Rationale To strengthen position of the Ahlsell brand in the region whilst broadening the product range to attract more customers. Pre-valuation EV/EBITA 7,9 Post-valuation EV/EBITA 2,2 Strategy Increase level of cross-sales, private label and increase sales efficiency – in accordance with the Ahlsell strategy.

SLIDE 65

Example: Increasing presence

Prevex is a specialized wholesaler with a strong market position in Gothenburg and Malmö, south of Sweden. Acquired 2016 with revenues ~350 MSEK and 102 employees. Rationale To strengthen position in tools & personal protective equipment (PPE) in a geographical area with strong growth. Pre-valuation EV/EBITA 9,0 Post-valuation EV/EBITA 5,8 Strategy Expand the number of units in strategic locations and offer high service and accessibility to customers.

65

SLIDE 66

Example: Broadening product offering

HauCon is a leading supplier of specialty products and technical know-how for construction fastening. Acquired 2014 with revenues ~148 MSEK and 20 employees. Rationale Strengthening position and offering in Sweden while generating synergies in sales, customer base and logistics. Adding products for the early stages of construction projects. Strategy Gain lead position towards customers by providing a product assortment that is used already in the beginning of the construction projects.

66

Pre-valuation EV/EBITA: 6,4 Post-valuation EV/EBITA: 3,8

SLIDE 67

Example: Extending customer portfolio

67

Viacon supplies several major infrastructure customers with products within water and sewage, such as pipes, pumps, dwells, manholes, valves and fittings. Acquired 2017 with revenues ~320 MSEK and 81 employees. Rationale Valuable expertise in Water & Sewage operations. Strengthens initiatives to attractive customer segments. Strategy Strengthen position in HVAC further. Restructuring started in Q3 with full effect as of beginning of 2019. Pre-valuation EV/EBITA: 6,9 Post-valuation To be evaluated

SLIDE 68

Example: Key strategic move

68

100% online business directed towards professionals 17 000 articles upon acquisition

Strong correlation between amount of

products and increased sales

Ahlsell can provide better sourcing and

more products

30-40% growth p.a

Achieved by attractive sales channel,

analytics and targeting

Ahlsell will gain full insight and apply

superior digital knowledge on current Ahlsell channel

SLIDE 69 M&A is in our DNA Some examples M&A onwards

69

SLIDE 70

Current pipeline stronger than ever

HVAC & Plumbing
Electrical
Tools & Supply

~2,000 potential candidates ~250 selected candidates ~35-40 contacted ~20 ongoing discussions

Strong reputation, experienced team and a structured process enables a steady flow of

pportunities

MSEK 53 000 in target turnover

”

DK & Other

70

M&A targets of varying size in pipeline corresponding to:

19 000 10 000 13 000 11 000

MSEK of sales

SLIDE 71

Ahlsell has a clear competitive advantage in M&A

Strong reputation and presence Smooth transactions and able to pay cash Best synergies and integration Selective choices according to strategy Ahlsell Target Join a winning team Chances to grow further 71

SLIDE 72 Purchasing Almost immediate Administration ~3 months Logistics 3-6 months Working capital 3-6 months Sales ~3 months ~5-10% of sales Cost reduction: ~20-40% of costs ~30% of working capital Additional cross- selling Integration Timing Synergy

Well-developed and documented acquisition and integration model

Proven M&A strategy and strong track-record of integration

72

Pre valuation Post valuation ~4-5% EBITA margin ~7-8 EV/EBITA valuation EBITA margin in line with Group ~3-4 EV/EBITA valuation Thorough process – including sustainability metrics Due diligence

SLIDE 73 M&A is in our DNA Some examples M&A onwards

73

SLIDE 74

74

SLIDE 75

Claes Seldeby

Head of Operations Sweden

Joined Ahlsell in 2016 as

Head of Operations Sweden

Previously President and CEO at

FM Mattsson Mora Group and CEO Schneider Electric Sweden

M. Sc. Business and Economics in Lund

University, Sweden

75

SLIDE 76 Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth

76

SLIDE 77 Net sales, EBITA and EBITA margin

Long track record of profitable growth

77

5yr CAGR ~8%

CAGR is updated yearly 2 4 6 8 10 12 14 16 18 20 5 000 10 000 15 000 20 000 25 000 9 875 10 076 7,9% Q2 2018 RTM 2006 12 040 2016 2005 2007 2008 2009 2010 2011 19 280 2012 2013 2014 14 328 2015 2017 12,0% 8 873 10 989 11 245 10 715 12 134 12 398 13 210 15 874 18 087

Adj. EBITA margin, %

EBITA margin, % Net sales, MSEK EBITA, MSEK ~2/3

rganic

SLIDE 78

Sweden at a glance

78

RTM = Rolling twelve months 37% 31% 32% HVAC & Plumbing Electrical Tools & Supplies 54% 21% 25% Central warehouse Direct from suppliers Branches 2 683 2 834 2 886 3 154 3 522 3 632 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 2016 2013 2014 2015 Q2 2018 2017 94 100 102 110 121 133 20 40 60 80 100 120 140 2017 2015 2013 2014 Q2 2018 2016 Sales in % per product segment, RTM Distribution form in % of sales, RTM Employees, FTE, end of period Branches, end of period

E-commerce

30%

f sales

SLIDE 79

Success starts with our people

79 Motivation-index

74

Loyalty-index

82

We are continuously investing in leadership training and product competence

Sound values

Accountability Openness Simplicity

Employee survey 2018 made by Ennova. External benchmark (GELx) for motivation and loyalty are 66 and 74 respectively.

SLIDE 80

Strongest brand in the market

80

Electricity

#1

Spontaneous brand awareness

Heating & Plumbing

#1

Industry

#1

Construction

#5

Trustful Well-recognised Safe Structured Authoritarian

Facility Mgmt

#1

Sewage, infra

#1

Brand awareness study made in spring 2018 with more than 1000 respondents.

SLIDE 81

High customer satisfaction

81

Customer Satisfaction Index

82

Net Promoter Score

40

NPS: In a rating between 1-10; those voting 0-6 are “Detractors”, 7-8 are “Passives” and 9-10 are “Promoters”. In the calculation, the Detractors are detracted from the

Promoters. A NPS of 40 is hence considered to be a strong result.

CSI: The scale covers values between 1-100 on several metrics. The higher the better, why 82 is a good result for Ahlsell.

SLIDE 82

Ahlsell is the overall market leader in Sweden

82

30% Dahl HVAC & P Ahlsell Onninen Solar Other 27% Solar Other Electrical Ahlsell Onninen Elektroskandia Selga and Storel 33% Ahlsell Tools & S Momentum Swedol Other

Est. market size 2015:

BSEK ~50

Est. additional market

size based on current growth strategy POTENTIAL FOR FURTHER GROWTH Dahl Onninen Solar Elektroskandia Ahlsell Selga and Storel Momentum Swedol HVAC & P Electrical T&S             Company Ahlsell is the only B2B-distributor with a strong offering within three product segments Arrow indicates if Ahlsell has been gaining or loosing market share since 2015 Major owners of competitors in brackets: Dahl (St. Gobain), Onninen (Kesko), Elektroskandia (Sonepar), Selga and Storel (Rexel)

SLIDE 83 Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth

83

SLIDE 84

Forecast slowdown in the construction investments from 2019

84

353 387 420 458 499 507 491 100 200 300 400 500 600 Sweden 2013 2014 2015 2016 2017 2018e 2019e Total construction investments Infrastructure, residential and commercial, BSEK Sveriges Byggindustrier 2018-02-22 – ByggKonjunkturen Is there a reason to worry about anticipated slowdown? Not really.

SLIDE 85

The Swedish business is well diversified

New construction Renovation Industrial Production Infrastructure Residential Non-residential Residential Non-residential

~20% ~35% ~30% ~15%

f Sales
f Sales
f Sales
f Sales

85

Management’s best estimate of market exposure in 2018

SLIDE 86

Renovation is less cyclical and

utlook remains strong

Some ~300,000 apartments are in acute need of renovation (of a total 2,6 million apartments in multi-family houses). The government's long-term goal of zero GHG emissions in 2050 requires energy efficiency renovations

Demand looks promising in most markets looking forward…

86

Report ”Renoveringskompetens” published 2017-11-17 by SBUF and Industrifakta. Report ”Vi lagar när det går sönder” published by VA-Fakta in 2014.

Outlook for industrial activity and investments remains strong Infrastructure spend expected to continue driven by underlying need

July 2018 report by Swedbank and Silf Continued expansionary development in the manufacturing industry with a PMI of 57.4 (60.3 in previou s year) Population growth adds to an already existing investment

verhang in roads, power, trans-

mission, and water and sewage systems Examples:

Water and sewage systems:

Technical life ~80-100 years. Current replacement cycle is 260 years*

Huge infrastructure projects expected to

start in coming years

SLIDE 87 Increasing need for new homes

Around 93 000 new homes needed until 2020 to cover

underlying need (67 000 p.a. until 2025)

Urbanisation continuing with significant urban migration

to cities and suburbs expected to 2025

Social housing and rental apartments will be key drivers

in the coming years Large public investment need to accommodate migration and urbanisation

Schools, hospitals, nurseries, elderly homes, etc.

Commercial investment level expected to remain high Population increase, finalised housing units and unit starts

…And we remain optimistic on new construction in the long term

87

20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Finalised apartments Unit starts Population increase Population increase, unit starts and finalised units; 2018-08-21 - http://www.scb.se

Fundamental drivers remain in place for long term growth in new construction

Report ”Behov av nya bostäder”, Boverket 2018:24 57 800 in 2018Q2 (RTM)

SLIDE 88 Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth

88

SLIDE 89

Integrate acquisitions and realise synergies
Further acquisitions

Swedish management priorities

89

Acquire… Invest in processes and governance… Further invest in proven model…

Invest in multi-channel customer interface

with goal to boost sales in all sales channels

Increase cross-sales

Invest in initiatives…

Added-value services (e.g work-site logistics)
Private labels and sustainability
Improve cost efficiency
Competence development in leadership and sales
Expansion and modernisation of central warehouse in Hallsberg

… to meet future demand … to maximise synergies … to increase efficiency … to be the innovation leader

SLIDE 90 Branch sales up by

~50%

since 2014

Higher activity level to attract traffic
Refurbished branches
New branches
Even broader and more complete

assortment

… all while our competitors are

closing branches

Strengthen our unique multichannel by being innovation leader

90

Pioneering new concepts with our customers Construction logistics / Logistical services (service platform) / Industry Vendor Managed Inventory (VMI) E-commerce growing by

25%*

Investing in smooth buying process,

better product data and new digital services

Experimenting with agile

development methods to increase throughput of new development

Launched innovation lab to drive

exploration

Acquisition of Proffsmagasinet

* In 2017

SLIDE 91

Maximise acquisition synergies

91

M&A targets of varying size in pipeline corresponding to

~19 BSEK

f sales

~13 M&A targets

realized since listing corresponding to

~1,1 BSEK

f sales

Well-defined acquisition model Experience of tracking and maximising synergies

SLIDE 92 Revenues per sales FTE up 30% since 2016

We are capitalising on our strong position to drive efficiency

92

Operational efficiency realised but partially masked by investment and integration of acquisitions

Realising operational leverage

Sales efficiency up by

35%

same period Costs will consume a lower share of gross profit

nwards

Increasing cross sales

Increasing penetration

f our customers to:
Lower cost to

service

Increase loyalty

Increased number of multi-category customers to:

Increase profitability

Cross sales stable at

68%

At constant level despite acquired volumes Sales force efficiency is measured by, among others, Customer visits / external sales

rep. and Turnover / external sales rep.

Cross sales = customers with at least 5% of their purchases in more than one product segment

SLIDE 93

Expansion of central warehouse is key to meet future demand

Progress according to plan

Pipe storage hall finalised
Increased capacity for both inventory and production flow
Maximum utilization of storage space achieved
The current automation system is robust and future-proof
The “turn” will be done 2019

New! Plan to further develop the automation system to expand production capacity and efficiency

Additional 150 MSEK investments finalisation

beginning of 2020

Payback period for full project four years
Annual net savings of MSEK 60 when finalized,

at current volumes The total investment in the central warehouse will thus amount to approximately 450 MSEK, of which the property owner will finance approximately 200 MSEK. Of the part that will be financed by Ahlsell; MSEK 250, approximately MSEK 15 has already been invested. Of the part that will be financed by the property owner, approximately MSEK 95 has been invested so far.

93

SLIDE 94

94

Tightening the organisation further

Prioritise and being smarter:

Do more with less – staff, replacements etc.

Harvest on acquisitions to realise synergies

– e.g. ViaCon

Investment in Hallsberg

– to increase productivity considerably

New telephone system

– less resources while offering better customer availability

Increase level of smart meetings and conferencing
… and much more

Safeguard profitable growth while increasing efficiency

SLIDE 95 Ahlsell Sweden at a glance Sweden is a good place to be Strong platform to deliver further profitable growth

95

SLIDE 96

Rune Flengsrud

Head of Operations Norway

96

Joined Ahlsell as Head of Operations

Norway in 2015

Previously CEO and SVP Nordics and

Baltics at Schneider Electric

Engineering degree, NTNU in Gjovik,

Norway

SLIDE 97 Ahlsell Norway at a glance Norway is a good place to be Action plan for profitable growth

97

SLIDE 98 Net sales, EBITA and EBITA margin

Norway at a glance

98

1 2 3 4 5 6 7 8 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 6 000 4 909 2013 1,7% 2014 2015 4 690 2016 2017 3,5% Q2 2018 RTM 4 498 5 050 5 349 5 710

Adj. EBITA margin, %

EBITA, MSEK Net sales, MSEK EBITA margin, % 52% 31% 17% Electrical HVAC & Plumbing Tools & Supplies 50% 20% 30% Central warehouse Branches Direct from suppliers 1 082 1 036 1 012 1 004 1 044 1 220 200 400 600 800 1 000 1 200 1 400 2013 2014 2015 2016 2017 Q2 2018 76 61 51 49 48 55 10 20 30 40 50 60 70 80 2015 2013 2017 2014 2016 Q2 2018 Sales in % per product segment Distribution form in % of sales Employees, FTE, end of period Branches, end of period E-commerce 29% of sales All figures RTM, if not otherwise stated

SLIDE 99

Proud and engaged employees

99

Motivation index

76

Loyalty index

87

Employee survey 2018 made by Ennova. External benchmark (GELx) for motivation and loyalty are 66 and 74 respectively.

SLIDE 100

Position to capitalise on the Ahlsell model

100

23% Ahlsell Heidenreich HVAC & P Dahl Other 10% Elektroskandia Other BA Electrical Onninen Solar Ahlsell Sonepar 10% Tools & S Momentum Motek Würth Ahlsell AEO Other

Est. market size 2015:

BSEK ~33

Est. additional market

size based on current growth strategy POTENTIAL FOR FURTHER GROWTH Dahl Elektroskandia Onninen Solar Ahlsell BA Sonepar Momentum HVAC & P Electrical T&S          Company Ahlsell is the only B2B-distributor with an offering covering three product segments Arrow indicates if Ahlsell has been gaining or loosing market share since 2015 Major owners of competitors in brackets: Dahl (St. Gobain), Elektroskandia (Rexel), Onninen (Kesko) Heidenreich  Würth   Motek  AEO 

SLIDE 101 Ahlsell Norway at a glance Norway is a good place to be Action plan for profitable growth

101

SLIDE 102

Less diversified than Sweden…

Construction and renovation Industrial Infrastructure New construction Renovation Industrial production Infrastructure Residential Non-residential Residential Non-residential

~1/3 ~1/3 ~1/10 ~1/4

f Sales
f Sales
f Sales
f Sales

102

Management’s best estimate of market exposure in 2018

SLIDE 103

… but with an increasingly diversified exposure

103

Less dependent on HVAC & Plumbing as Electrical grows Acquistion of Bekken & Strøm made Ahlsell a market leader within PPE Increasing industry exposure by successful targeting of a broad range of customers Increasing exposure to infrastructure by winning sustainable deals Achievements drives diversification of market exposure

SLIDE 104

Still a good market outlook for the coming years

104

New construction and building starts promising* Expanding industry Strong infrastructure investments onwards* GDP growth expected to remain >2% until at least 2021* Oil and Salmon prices at high levels PMI at 55.9 20 40 60 80 100 120 140 160 180 2011 162 2013 154 2009 2008 2010 62 89 2015 63 2012 147 2014 2016 105 2017 2018e 2019e 2020e 155 136 61 87 124 72 139 83 61 152 151 144 97 64 167 163 164 73 82 65 71 93 65 74 63 64 61 83 67 74 90 90 New construction, residential, BNOK New construction, commercial, BNOK *Byggenaeringens landsforening, Markedsrapport 1-2018 (June 2018) 5 10 15 20 25 30 35 40 Housing starts, thousands 77 78 83 86 94 96 97 106111 126 140 149 50 100 150 2015 2010 2014 2009 2011 2016 2012 2013 2017 2018e 2019e 2020e Infrastructure investments, BNOK Need for renovation 80 BSEK expected to be invested in renovation within residential housing in 2018 50 000 houses in acute need

f renovation

Prognossenteret ” Norske boliger trenger oppussing” 2018-04-06 PMI June: DNB and Nima 2018-08-01

SLIDE 105 Ahlsell Norway at a glance Norway is a good place to be Action plan for profitable growth

105

SLIDE 106

Norwegian management priorities

106

Acquire… Invest in processes and governance… Further invest in proven model…

Integrate acquisitions and realise synergies
Conduct further strategic acquisitions to build position in

secondary segments Invest in initiatives…

Leverage new decentralised and result-oriented organisation
Competence development in leadership and sales
Better performing logistics (freight, working capital, availability, etc.)

… to meet future demand … to maximise synergies … to increase efficiency … and be the innovation leader

Continue building strong second leg(s) outside HVAC
Increase cross-sales
Improve branch network and safeguard competitive e-commerce
Multi-assortment customers (aquaculture, FM and builders)
Private labels, integrated logistics and sustainability advantages

SLIDE 107 A number of new projects won by being the most sustainable provider

A new competitive advantage successfully built in sustainability

107

Rationale to why Ahlsell got the deals:

Fossil-free working sites
Fewer truck deliveries due to ”filled loads”
Efficient usage of small spaces in urban areas
Long experience in time critical deliveries
Responsible sourcing
EPD documentation

Munch museum, Oslo National museum, Oslo An EPD (Environmental Product Declaration) is an independently verified and registered document which shows the Product’s environmental impact over its life-cycle.

SLIDE 108 M&A team and pipeline stronger than ever

M&A activity has increased significantly

108

M&A targets of varying size in pipeline corresponding to

~10 BNOK

f sales

~4 M&A targets

realized since listing corresponding to

~520 MNOK

f sales

SLIDE 109

Investments in proven model on yielding result on cross-sales

109

24 37 68 68 32 40 10 20 30 40 50 60 70 80 90 100 2015 2018 H1 +54% Cross sales as % of customers Cross-sales Norway Cross-sales Sweden Cross-sales Finland Cross sales = customers with at least 5% of their purchases in more than one product segment Example: Increase of profitable cross sales

SLIDE 110

Private label initiatives are successful

110

7 10 5 10 15 2015 2018 H1 +43% Private label sales continuously increase… Private label, % of sales …and acquisitions sometimes contributes to improvement

SLIDE 111 Scale advantage Lower cost to serve Value-added selling Spreading costs Scale advantage

What drives our operational leverage potential?

111

EBITA, % Other (organic initiatives and M&A) Supply chain control Sales force effectiveness Full potential Pricing excellence Cost control (variable and fixed) Reduce admin requirements

n sales people by

centralising customer support functions Scale advantage in sourcing (Electrical) Drive sales towards customer segments where Ahlsell offers value-add Optimize customer profitability Coordinate staffing needs better between branches New sourcing solution (indirect) implemented Some examples

SLIDE 112

Ambition: Back to previous margin levels in the mid-term

Adj. EBITA margin, %

112

6,5 3,8 2,2 3,0 3,3 3,5 6,2 3,8 1,7 2,9 3,3 3,5 1 2 3 4 5 6 7 8 2018 Q2 RTM 2013 2014 2015 2016 2017

Adj. EBITA margin

EBITA marginal

SLIDE 113 Ahlsell Norway at a glance Norway is a good place to be Action plan for profitable growth

113

SLIDE 114

Mika Salokangas

Head of Operations Finland

114

Joined Ahlsell as Head of Operations

Finland in 2006

Previously held managerial positions

at Saab-Auto, Cederroth and Wihhuri

M. Sc. (Econ.) Hanken School of

Economics, Helsinki, Finland

SLIDE 115 Ahlsell Finland at a glance Finland is a promising place to be Action plan for profitable growth

115

SLIDE 116 Net sales, EBITA and EBITA margin

Finland at a glance

116

1 2 3 4 5 6 7 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Q2 2018 RTM 2 768 2013 2014 3,3% 2015 2016 2017 3 401 3,8% 2 705 2 719 3 050 3 201 Net sales, MSEK

Adj. EBITA margin, %

EBITA margin, % EBITA, MSEK 68% 17% 15% HVAC & Plumbing Electrical Tools & Supplies 48% 19% 33% Central warehouse Branches Direct from suppliers 576 585 576 583 556 599 100 200 300 400 500 600 700 2016 2013 2014 2015 Q2 2018 2017 35 35 36 37 37 38 10 20 30 40 50 2017 2013 2014 Q2 2018 2015 2016 Sales in % per product segment Distribution form in % of sales Employees, FTE, end of period Branches, end of period E-commerce 13% of sales All figures RTM, if not otherwise stated

SLIDE 117

Position to capitalise on the Ahlsell model

117

17% HVAC & P Onninen Dahl Ahlsell Other 7% Elektroskandia Electrical SLO Onninen Ahlsell Other 8% Etra Momentum Tools & S Würth Ahlsell Other

Est. market size 2015:

BSEK ~22

Est. additional market

size based on current growth strategy POTENTIAL FOR FURTHER GROWTH Onninen SLO Ekektroskandia Würth Ahlsell Etra Momentum HVAC & P Electrical T&S         Company Ahlsell is the only B2B-distributor with an offering covering three product segments Arrow indicates if Ahlsell has been gaining or loosing market share since 2015 Major owners of competitors in brackets: Onninen (Kesko), Dahl (St. Gobain), SLO (Sonepar), Elektroskandia (Rexel) Dahl   

SLIDE 118 Ahlsell Finland at a glance Finland is a promising place to be Action plan for profitable growth

118

SLIDE 119

Larger exposure to the construction market…

Construction and renovation Industrial Infrastructure New construction Renovation Industrial production Infrastructure Residential Non-residential Residential Non-residential

~40% ~40% ~15% ~5%

f Sales
f Sales
f Sales
f Sales

119

Management’s best estimate of market exposure in 2018

… indicates an opportunity to diversify further into industry and infrastructure

SLIDE 120 GDP growth back again Per country, fixed prices, calendar-adjusted, %

Market development promising for the next years

120

Konjunkturinstitutet 2018-08-22, konj.se Statistics Finland 2012-2019F Confidence on the rise, and above EU levels European comission Economic Sentiment Indicators 2018-08-22

40
35
30
25
20
15
10
5

5 10 15 20 EU industrial confidence EU building confidence Finnish industrial confidence Finnish building confidence

1,4
0,8
0,6

0,1 2,3 2,7 2,9 1,9 2013 2012 2019e 2014 2017 2015 2016 2018e 2012 2013 2014 2015 2016 2017 2018-06 29 842 27 778 25 200 32 500 37 500 45 400 39 500 35 500 2014 2012 2019e 2016 2013 2015 2018e 2017 Residential start-ups remains on high level (units)

SLIDE 121 Ahlsell Finland at a glance Finland is a promising place to be Action plan for profitable growth

121

SLIDE 122

Finnish management priorities

122

Acquire… Invest in processes and governance… Further invest in proven model…

Integrate acquisitions and realise synergies
Conduct further strategic acquisitions to build position in

secondary segments Invest in initiatives…

Segment-specific initiatives (construction, facility management)
Increase sales of private labels
Leverage new decentralised and result-oriented organisation
Competence development in leadership and sales

… to meet future demand … to maximise synergies … to increase efficiency … and be the innovation leader

Recapture market share in HVAC & Plumbing and continue building

strong second leg(s) in Electrical and Tools & Supplies

Increase cross-sales towards installers, especially within T&S
Improved branch network and competitive e-commerce solutions

SLIDE 123

Multi-segment customers increasing in importance

123

32 40 5 10 15 20 25 30 35 40 45 50 2015 2018 H1 +25% Cross sales as % of customers Cross-sales Finland Cross sales = customers with at least 5% of their purchases in more than one product segment 100 132 20 40 60 80 100 120 140 2015 2017 32% Cross-sales (absolute) Index 100=2015 Cross sales development since 2015

SLIDE 124

Competitive e-commerce solution resulting in strong growth

124

4 3 5 8 11 13 2 4 6 8 10 12 14 2016 2013 2015 2014 H1 2018 2017 CAGR ~30% Share of total sales

The customer experience of Ahlsell is strengthened by offering well-functioning e-commerce

SLIDE 125

125

Profitable growth by successfully target customer groups

Photo: Vantaa Energy. About Vantaa Energy LTD: One of Finland's largest energy companies, co-owned by Vantaa City and Helsinki City. The company has a strong focus on sustainable energy, and their waste power plants handle nearly 400,000 tonnes of waste annually. The plants reduce the use of fossil fuels by 30% and the company's carbon dioxide emissions in Vantaa by 20%. Ahlsell has been cooperating with Vantaa Energy for more than 10 years in HVAC & Plumbing. Since the start of 2018, Ahlsell delivers "most" for maintenance, repair and operations as a direct result of successful targeting. Example: Vantaa Energy Benefits for Ahlsell to be the sole supplier to Vantaa Energy

Increased sales volumes to the customer (~10x)
Improved profitability through increased cross-sales

Benefits for Vantaa Energy to work solely with Ahlsell

Lower product cost by optimising volumes
Streamlining the supply chain (logistics) to make it

more efficient and sustainable

Simplify the ordering process (e.g. through e-commerce)

and reduce invoice handling

SLIDE 126 M&A team and pipeline stronger than ever

Increased M&A focus and a pipeline bigger than ever before

126

M&A targets of varying size in pipeline corresponding to

~13 BSEK

f sales

~2 M&A targets

realized since listing corresponding to

~75 MSEK

f sales

SLIDE 127 Scale advantage Lower cost to serve Spreading costs Scale advantage Value-added selling

What drives our operational leverage potential?

127

Sales force effectiveness Supply chain control EBITA, % Pricing excellence Cost control (variable and fixed) Other (organic initiatives and M&A) Full potential Centralise admin to ensure a more pro-active sales force Strengthen KAM function to meet high tendering activity in industrial Purchasing conditions Focus on pricing governance and on customers where we have a stronger value proposition than competitors (profitable customers) Re-allocate resources to profitable regions/units Improve cross-sales utilisation Close down low performing units Cost-saving program Some examples

SLIDE 128

Adj. EBITA margin, %

Ambition: Back to previous margin levels in the mid-term

128

6,2 4,4 3,3 3,7 4,0 3,8 5,7 4,4 3,3 3,7 3,7 3,8 1 2 3 4 5 6 7 8 2013 2014 2018 Q2 RTM 2017 2015 2016

Adj. EBITA margin

EBITA margin

SLIDE 129 Ahlsell Finland at a glance Finland is a promising place to be Action plan for profitable growth

129

SLIDE 130

130

SLIDE 131

Attractive total shareholder return proposition

Superior scale and unique value proposition driving operational and financial excellence Leader in Nordic markets with attractive structural growth dynamics Experienced and committed management team Integral M&A growth with proven track record and extensive active acquisition pipeline Tangible growth potential from market strength and initiatives Robust and resilient business model delivering strong cash generation Leadership Ahlsell model Strong cash flow Growth M&A machine Management Sustainability leader within Nordic distribution Sustainability

131

SLIDE 132

Joint walk to the branch ~100 meters
Meet up outside the hotel in groups no. 1-10
Bring all your belongings
Maybe a coffee to go?
11 stations in one hour (Swedish perspective)

1. Personal Protective Equipment 2. Private Label 3. HVAC & Plumbing 4. Coffee corner 5. Average branch 6. Electrical 7. Sustainability 8. Tools & Supplies 9. Campaign corner

10. Cashier and check-out
11. Credit handling

Branch insight tour

132

SLIDE 133

133

THANK YOU!