Aq Group Ab · OMXSTO:AQ
Aq Group Ab — Q4 2023 Earnings Presentation
19 slides from Aq Group Ab's earnings presentation, 2024
Slide 1: AQ Group Investor presentation Q4 2023
Slide 2: Why invest in AQ Group
Why invest in AQ Group EPS CAGR +15% 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, energy transmission) Data Centers Defence Long history of acquistions. 2-4
Slide 3: Fourth Quarter, Oct-Dec 2023 in brief
=30= Fourth Quarter, Oct-Dec 2023 in brief —_— fe fe] Strong cash flow and the board proposes doubled dividend Net sales increased by 12% to SEK 2,221 million (1,974) e Goal 15% growth Operating profit (EBIT) increased by 30% to SEK 193 million (148) Profit after financial items (EBT) increased by 3
Slide 4: Full year 2023 in brief
=30= Full year 2023 in brief — aq BH Net sales increased by 27% to SEK 8,968 million (7,053) © Goal 15% growth B Operating profit (EBIT) increased by 61% to SEK 792 million (491) B& Profit after financial items (EBT) increased by 57% to SEK 757 million (482) B Profit margin before tax (EBT %) was 8.
Slide 5: EPS Growth
EPS Growth 15% CAGR EPS 2014-2023 CAGR 15% 2023 EPS growth of 54% vs 2022 Higher tax in Q4 2023 vs. 2022 due to earnings geography 5
Slide 6: Net sales
Net sales Ok turnover in the quarter. Growth +12,5% vs Q4 2022, whereoff 4% was currency. Still capacity and productivity constraints in Finland & Poland and in some parts of Sweden. Increases in the quarter mainly in electrification, defence industry, commercial vehicles, & marine. 6
Slide 7: Organic growth
Organic growth Organic growth was 8,6%, below our target of 10%. Two customers have postponed projects at the end of the quarter to Q1 2024. Main part of the growth Target 10%/ year comes from electrification, defence, commercial vehicles railway and marine. The growth countries in Q4 where Lithuani
Slide 8: Acquired Growth
Acquired Growth Several targets. Some closer than others. Same message as last quarter: We should be disappointed if we have not closed some good Target 5%/ year deals before Q2 2024. 8
Slide 9: EBT Margin
EBT Margin Disappointed in the margin in Q4 despite reaching our target. Extra costs for late deliveries and quality non conformaties press margin down in the quarter. Process improvements made that should improve situation going forward. Opportunities to improve operationally in India, China, Mexic
Slide 10: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Our actions improved inventory turnover as planned. We are currently at 3.2 turns/year and aim to reach our target in 2024. Main reason for high inventory turnover is to reduce risk of obsolescence in the inventory b
Slide 11: Net cash from operating activities and Net debt
Net cash from operating activities and Net debt Good operating cash flow of 239mSEK in the quarter which results in net debt (ex IFRS 16) of 25mSEK. Mainly driven by good profit level and increased inventory turnover. 11
Slide 12: Quality and delivery precision
Quality and delivery precision
Slide 13: On-time Delivery (OTD) Jan- Dec - Goal 98%
On-time Delivery (OTD) Jan- Dec - Goal 98% Result: 91.35% Still dissappointing. We have made big investments in increased capacity in many of our factories, with more people, machines and square meters but still we are unable to delivery as we have confirmed to our customers. However trend starts to
Slide 14: Battery systems in Bulgaria
Battery systems in Bulgaria We have done a very fast ramp up during 2023 with a large customer. Internal quality not satisfactory. A lot of efforts and extra costs to keep delivery times with good quality. Currently no new project with this customer in 2024. Volume for this customer was 250mSEK in 2
Slide 15: Projects for future growth and outlook
Projects for future growth and outlook
Slide 16: Electrification Global – Transm.+ Storage + charging + drives
Electrification Global – Transm.+ Storage + charging + drives 16
Slide 17: Enclosures, super cap racks & inductives for Data Centers
Enclosures, super cap racks & inductives for Data Centers 17
Slide 18: Defence US, EU – Wiring Systems, Inductive, Sheet Metal
Defence US, EU – Wiring Systems, Inductive, Sheet Metal 18
Slide 19: WE ARE RELIABLE
Q&A =30™ — aq WE ARE RELIABLE 19