Third Quarter 2017 Earnings Conference

26 October, 2017

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Today’s presenters

JOHAN MENCKEL

CEO

Since: 2012Gränges since: 2004

OSKAR HELLSTRÖM

CFO

Since: 2011

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Gränges Group

• A global leader in the market for rolled products for aluminium heat exchangers

• Production in Sweden, China and in the US• R&I centres in Sweden and China• Headquarter in Stockholm• Gränges is represented all over the world

• 1,600 employees

• Net sales of SEK 11 billion and operating profit of SEK 925 million

• Listed on Nasdaq StockholmWe have a global market share of approximately 20% in rolled products for brazed aluminium heat exchangers.

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� Several important steps taken in our strategic growth plan

� Sales volume increased by 48% to 93 ktonnes

� Adjusted operating profit increased to SEK 227 million

� Cash flow before financing increased to SEK 148 million

� Net debt of 1.7 x EBITDA

Third quarter 2017 – Strong demand in all regions

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� Investment in Huntingdon, Tennessee to meet growing demand for Auto HEX, HVAC, and light gauge foil

� Huntingdon production capacity will increase from 160 to 200 ktonnes

� The expansion will create 85 permanent full-time jobs

� The project will take about two years to complete and contribute positively to operating profit in 2019

� The investment will be financed using existing cash and available credit facilities

Gränges will invest USD 110 million to expand capacity and capabilities in the Huntingdon plant

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Investment in advanced spray-forming production provides opportunities to expand within Active Brazing

� Investment together with ErbslöhAluminium to secure:

– Competence for spray-formingof aluminium billets

– Supply chain for next generation of materials for brazed heat exchangers

� Gränges invests EUR 4.4 millionfor 51% of GETEK GmbH

� Provides a platform to grow within Active Brazing and TRILLIUM®

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5%

Source: IHS Automotive, September 18, 2017

Market growth of 2% expected for full year 2017

Light vehicle production growth (YoY)

Region

Asia

Europe

Americas

Global

Q3 2017 Q4 2017 outlook FY 2017 outlook

+3%

+6%

+2%

+3%

+2%

±0%-4% -1%

-2%

+2% ±0%

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Strong demand across all regions

Asia Europe Americas

� Continued strong sales to Chinese automotive customers

� Strong demand from commercial vehicle market

� Growth in automotive heat exchanger materials and in materials for non-heat exchanger applications

� Organic growth in acquired business 4%

� Growth in existing automotive heat exchanger business 11%

Gränges sales volume (ktonnes)

2016 2017

+9%

19,0 20,7 22,7 22,3 20,7

Q3 Q4 Q1 Q2 Q3

15,0 15,2 16,9 17,9 15,5

Q3 Q4 Q1 Q2 Q3

28,9

48,855,3 58,5 56,8

Q3 Q4 Q1 Q2 Q3

+3%

+97%

2016 2017 2016 2017

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Positive trend continues in third quarter and is further strengthened by the US acquisition

Rolling 12 months sales volume and adjusted operating profit

Adjusted operating profit (SEK million)

Sale

s vol

ume

(kto

nnes

)

Sales volume Adjusted operating profit

199245

286362374348372371401437444463494521528541541563

632687

769879

925

0

200

400

600

800

1000

100

150

200

250

300

350

400

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012 2013 2014 2015 2016 2017

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1. Adjusted for items affecting comparability2. Diluted

Continued strong growth and profitability in third quarter

SEK million Q3

Financial overview

January - September

2017 2016 Change 2017 2016 Change

Sales volume (ktonnes) 93.0 62.8 48.0% 286.5 154.4 85.5%

Net sales 2,728 1,859 46.7% 8,701 4,662 86.7%

Adjusted operating profit1 227 181 25.1% 754 516 46.1%

Adjusted operating margin (%) 8.3 9.7 -1.4 ppt 8.7 11.1 -2.4 ppt

Adjusted operating profit per tonne (kSEK) 2.4 2.9 -0.4 2.6 3.3 -0.7

Operating profit 227 88 158.5% 754 397 89.9%

Profit for the period 151 189 -20.2% 500 397 26.0%

Earnings per share2 (SEK) 2.00 2.52 -0.52 6.62 5.30 1.32

Cash flow before financing activities 148 -2,285 n/a 530 -2,150 n/a

Return on capital employed, R12 (%) 16.6 18.7

Net debt / adjusted EBITDA, R12 1.7 2.2

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Cash flow before financing SEK 148 million

Net debt was SEK 2.3 billion at the end of third quarter

Change in net debt

-2 481 309

-42-46

-74 54

-2 280

-2 600

-2 500

-2 400

-2 300

-2 200

-2 100

-2 000MSEK

Net Debt30 Jun2017

Adjusted EBITDA

Change in working capital

Other operating

items

Investments & Divestments

of fixed assets

FX & Other Net Debt30 Sep2017

Net debt over adjusted R12 EBITDA

1.9 1.7

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� Global Light Vehicle Production is expected to remain stable in the fourth quarter – for the full year 2017 a growth of 2% is projected1

� Automotive HEX – lower sales volume is expected in Asia and the Americas, while growth in Europe is projected to be in line with the market rate in fourth quarter

� Acquired business – continued growth expected for the fourth quarter

� Several important growth initiatives announcedin third quarter

� Optimistic outlook for 2018 with positivedevelopment expected in all regions

Outlook

1. Source: IHS Automotive, September 18, 2017

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� Strong demand in all regions

� Acquired business in the US is performing very well

� Sales volume 93.0 ktonnes

� Adjusted operating profit rose to SEK 227 million

� Net debt of 1.7 x EBITDA

� Several important steps taken in strategic growth plan

Summary of third quarter

Q&AJohan Menckel, CEO

Oskar Hellström, CFO