Slide 1: AQ Group Investor presentation Q2 2023
Slide 2: Why invest in AQ Group
Why invest in AQ Group EPS growth of average 17%/year over the past 10 years Profit every quarter since foundation in 1994 Exposure to industrial market segments with underlying growth; Electrification (E-mobility, renewables, energy storage) Long history of acquistions. 2-4 factories/year Strong ba
Slide 3: Second Quarter, April-June 2023 in brief
Second Quarter, April-June 2023 in brief led e Strong growth with good profitability e Net sales increased by 36% to SEK 2,345 million (1,721) © Goal 15% growth e Operating profit (EBIT) increased by 90% to SEK 203 million (107) e Profit before tax (EBT) increased by 80% to SEK 195 million (108) e P
Slide 4: First six months, Jan-June 2023 in brief
First six months, Jan-June 2023 in brief led e Net sales increased by 37% to SEK 4,598 million (3,367) e Goal 15% growth e Operating profit (EBIT) increased by 81% to SEK 398 million (220) e Profit before tax (EBT) increased by 69% to SEK 380 million (225) e Profit margin before tax (EBT %) was 8.3%
Slide 5: EPS Growth
EPS Growth 19% Average EPS Growth 2013-2023 Q2 (R12) R12 2023 Q2 EPS growth of 36% vs 2022 FY 5
Slide 6: Net sales
Net sales Good turnover in the quarter. Growth +36% vs Q2 2022, whereoff 8% was currency. Still capacity and productivity constraints. Ramp up on battery systems from Bulgaria and wiring systems truck project in Lithuania is done. Increases mainly in electrification, defence industry, commercial veh
Slide 7: Organic growth
Organic growth Organic growth was 28%! Target 10%/ year Increases mainly due to new sales in electrification, storage of energy, components for defence industry, commercial vehicles and railway. 7
Slide 8: Acquired Growth
Acquired Growth Focus has been on organic growth. Working hard to find the right ones with good valuation. Target 5%/ year 8
Slide 9: EBT Margin
EBT Margin Higher focus on internal productivity in high growth factories. Low profit subsidiaries make more profit than last year. Closure in Falköping. Reduction of staff in China. Price optimization work continue. Still opportunities to improve in Asia and EBT Margin (%) goal is 8% Americas and i
Slide 10: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Our actions are starting to show and we are currently at 2.7 turns/year. Project team is working with our ”problem” companies to help them improve. 10
Slide 11: Net cash from operating activities and Net debt
Net cash from operating activities and Net debt Good operating cash flow of 177mSEK in the quarter and a net debt (ex IFRS 16) of 403mSEK. 11
Slide 12: Investments in increased capacity
Investments in increased capacity Extension of Wiring Systems Factory in Lodz, Poland Increase with 5,500m² of rented factory area. Finished September 2023. Will enable 30%/20mEuro increase capacity. Customers: Fork lifts, agriculture equipment, drive trains for boats. Investments in new punching ca
Slide 13: On-time Delivery (OTD) Jan- June - Goal 98%
On-time Delivery (OTD) Jan- June - Goal 98% We are increasing capacity rapidly to handle increasing volumes but not fast enough. We are still falling short despite big volume output increase. We have full focus on this area at the moment in all our sites with poor delivery performance.
Slide 14: Projects for future growth
Projects for future growth WE ARE RELIABLE
Slide 15: Electrification (Storage + Transmission)
Electrification (Storage + Transmission) Battery Energy Storage Systems Batteries and control cabinets for storage of renewable energy. Deliveries to US, EU and Taiwan. Capacity : 1000pcs battery modules. 500 pcs control cabinets. Turnover at full speed 40mEuro. Full speed in Q2. Second customers wo
Slide 16: Electrification (Railway)
Electrification (Railway) Several new railway projects won Inductives for Chennai Metro, extension of NYC Metro, and first order from Stadler rail in Switzerland during Q2. Deliveris from our factories in US, India and Hungary. Electrical cabinets for DNB Hamburg New order for electrical cabinets fo
Slide 17: Defence
Defence Wiring Systems Strong growth in Sweden and Poland for wiring systems to tanks and all- terrain vehicles. Several projects recieved with order value of SEK 100m over 4 years. Sheet metal fabrication Strong growth in Sweden and Estonia for sheet metal fabrication and assembly of parts to tanks
Slide 18: Questions
Questions WE ARE RELIABLE 18
Slide 19: Questions?
WE ARE RELIABLE Questions? aQ