Slide 1: AQ Group Year-end report 2024
OF - AQ Group w—«_ Year-end report 2024 WE ARE RELIABLE
Slide 2: Why invest in AQ Group
Why invest in AQ Group EPS CAGR 14% over the past 10 years Profit every quarter since foundation in 1994 Exposure to industrial market segments with underlying growth; Electrification Railway Defense Med-Tech Long history of acquistions. 2-4 factories/year JIT Mech – 2 factories in Sweden Rockford –
Slide 3: AQ Group at a glance
Production 8,000 ~8,5bSEK 7 Business 15+ Market in 17 Employees Turnover areas segments countries +4000 Profit every 2-4 UN Global 14% EPS customers quarter for acquisitions compact CAGR globally 30 years / year since 2012 3
Slide 4: Fourth Quarter, Oct-Dec 2024 in brief
Fourth Quarter, Oct-Dec 2024 in brief Acquired nice factories in Germany and Czech Rep. Net sales decreased by 4% to SEK 2,126 million (2,221) e Goal >15% growth Operating profit (EBIT) increased by 7% to SEK 206 million (193) Profit after financial items (EBT) increased by 14% to SEK 209 million (1
Slide 5: Full year 2024 in brief
Full year 2024 in brief BH Net sales decreased by 5% to SEK 8,554 million (8,968) e Goal >15% growth B Operating profit (EBIT) increased by 6% to SEK 840 million (792) B Profit after financial items (EBT) increased by 9% to SEK 824 million (757) B Profit margin before tax (EBT %) was 9.6% (8.4) e Go
Slide 6: AQ Group EPS Growth
AQ Group EPS Growth 14,4% CAGR EPS CAGR 14% 2015-2024 The target is to continue to grow EPS every year on average by 15%. 6
Slide 7: AQ Group Net sales development
AQ Group Net sales development Growth -4% vs Q4 2023, whereof organic growth was -9%, -0.4% was currency and +5% was acquired. Decrease in demand from our market segments in construction equipment, trucks, buses, agriculture and food equipment particularly in Europe. Still strong in electrification,
Slide 8: Organic growth
Organic growth Organic growth in Q4vsQ4 was -9%, below our target of +10%. For the full year 2024 we had -7% org. growth vs 2023. Target 10%/ year Decreases in trucks, buses and construction equipment. Increases in electrification, railway and defence. New orders in buses and HVDC. 8
Slide 9: Recent new customer/project wins
Recent new customer/project wins 9
Slide 10: Acquired Growth
Acquired Growth We reached +5% acquired growth Q4 vs. Q4 last year. For the full year 2024 we had +2.5% which is below our target of +5%. Target 5%/ year On Jan 31, 2025 we completed the acquistion of mdexx and Michael Riedel. 10
Slide 11: M&A 2024 Summary
M&A 2024 JIT Mech on 2/5. Adds 200mSEK in Net sales and EBT >8%. 2 factories in Sweden Summary M&A 2024 Rockford on 10/7. Adds 14m£ in Net Sales and EBT >8%. 3 factories in UK TechROi on 31/10. Adds 50mSEK in Net Sales and EBT <8%. 2 design offices in Sweden Acquired 7 factories & mdexx and Michael
Slide 12: mdexx in short – What do they do?
+ in short – What do they do? ▪ No 1 company in Germany that design and manufacture custom dry type transformers and inductors. ▪ Typical applications – Industrial drives, metro and electrical locomotives, industrial robots, machines for medical imaging and cancer care. ▪ Design in Weyhe Germany (30
Slide 13: AQ Inductive components with mdexx and Riedel
AQ Inductive components with mdexx and Riedel main_logo Logo Mitsubishi Electric GE logo sandvik CAGR 30% 13
Slide 14: AQ Group EBT Margin development
AQ Group EBT Margin development EBT Margin in Q4 was 9,8%. For the full year it was 9,6%. EBT margin has averaged 8.13% for the last 20 quarters. Cost control is good. Low fixed costs, asset light manufacturing. We are fast to scale workforce up and down. Opportunities to improve operationally in a
Slide 15: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Currently we are at 3. The addition of acquired companies has a negative impact of 0.1 due to COGS only accounted for part of the year. Improvement actions are ongoing and prioritized, but we do not see enough result
Slide 16: Net cash from operating activities and Net debt
Net cash from operating activities and Net debt Ok operating cash flow of 288 mSEK in the quarter and 1 197 mSEK for the full year which results in net cash (incl. IFRS 16) of 284mSEK. Mainly driven by good profit level and decreasing working capital because of lower net sales. This means we will ha
Slide 17: Investments
WE ARE RELIABLE Investments
Slide 18: New transformer factory in Tallin
New transformer factory in Tallin ▪ Moving to a new factory building in Tallin for transformer production. Rented facility. Cost is same as previous building but 3,000m2 larger to facilitate growth, improve productivity and reduce energy consumption. Will be up and running in Q3-2025. 18
Slide 19: New Mazak 15kw laser cutting machine
New Mazak 15kw laser cutting machine ▪ 10mSEK investment. ▪ Enables growth and in sourcing of sheet metal processing for defense and electrification customers. ▪ Will enable us to cut sheets up to 60mm thick. ▪ Will reduce energy consumption compared to old CO2 laser cutting machine. 19
Slide 20: Investments in cost and CO reduction
2 Investments in cost and CO reduction 6 solar power installations in operation with 842 kWp capacity in Sweden, Finland, Poland, Estonia, Bulgaria and India Will add 2 more installations and 1,288kWp in 2025 Focus on high CO2 energy mix countries. Consume all generated power internally. ROI is <5 y
Slide 21: Quality and delivery precision
Quality and delivery precision
Slide 22: On-time Delivery and Quality results
Jan-Sep. On-time Delivery (OTD) Goal 98%, Quality Goal 100% Result OTD YTD: 93% Result Q% YTD: 99,61% Delays are shorter and trend is moving in right direction despite acquiring new businesses that lowers group OTD. We have capacity constraints in Rockford, JIT Mech, Transformer Solutions(US), Induc
Slide 23: Why invest in AQ Group
Why invest in AQ Group EPS CAGR +14% over the past 10 years Profit every quarter since foundation in 1994 Exposure to industrial market segments with underlying growth; Electrification Railway Defense Med-Tech Long history of acquistions. 2-4 factories/year JIT Mech – 2 factories in Sweden Rockford
Slide 24: Questions?
1004 3 (22 Questions? aa Q&a WE ARE RELIABLE ™