Aq Group Ab · OMXSTO:AQ
Aq Group Ab — Q3 2022 Earnings Presentation
18 slides from Aq Group Ab's earnings presentation, 2022
Slide 1: AQ Group Investor presentation Q3 2022
AQ Group Investor presentation Q3 2022
Slide 2: Second quarter, Jul-Sept 2022 in brief
Second quarter, Jul-Sept 2022 in brief • Strong demand for electrification • Net sales increased by 31.0% to SEK 1,711 million (1,306) • Goal +15% Growth • Operating profit (EBIT) increased by 30.8% to SEK 123 million (94) • Profit after financial items (EBT) increased by 33.7% to SEK 121 million (9
Slide 3: Six months, January-Sept 2022 in brief
Six months, January-Sept 2022 in brief • Net sales increased by 27.8% to SEK 5,078 million (3,974) • Goal +15% Growth • Operating profit (EBIT) increased by 2.9% to SEK 343 million (333) • Profit after financial items (EBT) increased by 4.6% to SEK 346 million (331) • Profit margin before tax (EBT %
Slide 4: EPS Growth
EPS Growth 16% Average EPS Growth 2011-2021 2022 R12 is flat vs. full year 2021. Improvements in progress. Our target is as always to increase EPS with >15%/year 4
Slide 5: Net sales
Net sales Good turnover in the quarter. Growth QoQ with +30%. Supply of PLC’s limits us especially in Electric Cabinet, System Products. Big customer in US/Canada had strike which affects volume in Jul/Aug with 18mSEK. Increases mainly in electrification – Batteries, components for drives, inverters
Slide 6: Organic growth
Organic growth Organic growth target updated to 10%/ year. ”Real” organic growth in Q3 is approximately 15% and 12% is price increases to compensate for higher costs for material, energy and transportation. 6
Slide 7: Acquired Growth
Acquired Growth The integration of the Schaffner acquisition is completed. Strong Acquired growth QoQ with 20%. growth Profit normalized to be target lowered to at par with rest of 5%/ year. group. Focus on organic growth and await lower prices on acquisition targets. 7
Slide 8: EBT Margin
EBT Margin More price adjustments needed towards audomotive customers to compensate for cost increases in raw material, energy, transportation and labor. Finalize price adjusmtents for automotive customers in Q4. 3 companies with detailed improvement program to improve profitability. EBT Margin (%)
Slide 9: Net cash from operating activities
Net cash from operating activities Organic growth makes NWC grow. Inventory grow also due to component shortages. A program for reduction of inventory launched. Will be run during Q4 and 2023FY. 9
Slide 10: Inventory & Inventory turnover
Inventory & Inventory turnover Inventory turnover target is 3,5 turns/year. Inventory increase in mainly raw material and semi-finnised goods. Due to; Growth Price increases on raw materials Missing components. Action plans put in place at all companies. Aim is to get back to >3 turns/year by end of
Slide 11: Investments in increased capacity
Investments in increased capacity Wiring Systems Factory in Lithuania Factory building was finished in April 2022. Investments in machines and production lines in progress. Also recruting 800 operators. Full production from Q1 in 2023. Turnover in this factory should increase with 40mEuro in 2023. C
Slide 12: Net Debt excl IFRS16
Net Debt excl IFRS16 Net debt (excl IFRS16) Sept 2022 SEK 623Million. Capacity increase investments (90mSEK) in combination with low NCFOA increase net debt. 12
Slide 13: On-time Delivery(OTD) Jan- Sept - Goal 98%
On-time Delivery(OTD) Jan- Sept - Goal 98% We are increasing capacity rapidly to handle increasing volumes. Still issues with material but somewhat better in Wiring Systems. Still a challenge to get PLC’s in Electrical Cabinets and System Products due to chip shortage at our suppliers.
Slide 14: Projects for future growth
Projects for future growth WE ARE RELIABLE
Slide 15: Electrification (Storage)
Electrification (Storage) Battery storage Batteries and control cabinets for storage of reneable energy. Deliveries to US, EU and Taiwan. First battery module prototype built in Bulgarian in the photo. Expected capacity : 1000pcs battery modules. 500 pcs control cabinets. Turnover at full speed 40mE
Slide 16: Electrification (Wind Power)
Electrification (Wind Power) Pole shoes for wind power stator Our site in Hungary is in negotiations with one of the major players in wind turbine manufacturing. AQ will manufacture pole shoes for their bigges wind turbine. AQ is selected supplier but contracts not signed. Water cooled transformers
Slide 17: Electrification (Bikes, Trains, Bus and Truck)
Electrification (Bikes, Trains, Bus and Truck) Railway Strong growth in US with inductive components for battery electric locomotive. E-bike New contract, 15mEuro over three years from Bosch for parts to their drive line for E-bikes. Bus+Truck Increased volumes for high voltage cable harnesses for V
Slide 18: Questions?
WE ARE RELIABLE Questions? aQ@