Aq Group Ab · OMXSTO:AQ
Aq Group Ab — Q3 2023 Earnings Presentation
18 slides from Aq Group Ab's earnings presentation, 2023
Slide 1: AQ Group Investor presentation Q3 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) Railway Defence Long history of acquistions. 2-4 fact
Slide 3: Third Quarter, July-Sept 2023 in brief
Third Quarter, July-Sept 2023 in brief Strong growth with good cash flow Net sales increased by 26% to SEK 2,149 million (1,711) e Goal 15% growth Operating profit (EBIT) increased by 63% to SEK 201 million (123) Profit after financial iterms (EBT) increased by 61% to SEK 195 million (121) Profit ma
Slide 4: First nine months, Jan-Sept 2023 in brief
First nine months, Jan-Sept 2023 in brief Net sales increased by 33% to SEK 6,747 million (5,078) e Goal 15% growth Operating profit (EBIT) increased by 75% to SEK 599 million (343) Profit after financial items (EBT) increased by 66% to SEK 575 million (346) Profit margin before tax (EBT %) was 8.5%
Slide 5: EPS Growth
EPS Growth 15% CAGR EPS 2014-2023 Q3 (R12) CAGR 15% R12 2023 Q3 EPS growth of 54% vs 2022 5
Slide 6: Net sales
Net sales Good turnover in the quarter. Growth +26% vs Q3 2022, whereoff 7% was currency. Q3 is always weakest quarter due to summer holiday in July/August at customers. Still capacity and productivity constraints in Finland, Bulgaria, Poland. Increases mainly in electrification, defence industry, c
Slide 7: Organic growth
Organic growth Organic growth was 17% We should have delivered more. Target 10%/ year Increases mainly due to new sales in electrification, storage of energy, components for defence industry, commercial vehicles, railway and marine. 7
Slide 8: Acquired Growth
Acquired Growth Several interesting prospect factories. We love new factories. Net debt is low. Cash flow is good. Target 5%/ year You should be disappointed if we have not closed some good deals before Q2 2024. 8
Slide 9: EBT Margin
EBT Margin Worst performers make more profit than last year because of improvement programs. Margin would have been better if we would have delivered everything that we should have. Still opportunities to improve in India and China. EBT Margin (%) goal is 8% The margin shall consistently be within 8
Slide 10: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Our actions improve the result and we are currently at 3.0 turns/year. We are working with our worst 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 339mSEK in the quarter which results in net debt (ex IFRS 16) of 170mSEK. Mainly driven by high profit and increased inventory turnover. 11
Slide 12: On-time Delivery (OTD) Jan-Sept - Goal 98%
On-time Delivery (OTD) Jan- Sept - Goal 98% Result: 90.5% This is really 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. Stronger actio
Slide 13: Projects for future growth
Projects for future growth WE ARE RELIABLE
Slide 14: AQ Inductive components
AQ Inductive components Consolidation of niches within inductive component market Acquired 14 companies since 1994. Turnover 2023 Sep R12 is 1.7bSEK. Factories in China, India, Estonia, Bulgaria, Hungary, Finland and USA. Design offices in Sweden, Finland, Germany, Italy, China, India, Bulgaria, USA
Slide 15: Electrification Global – Transm.+ Storage + drives + marine
Electrification Global – Transm.+ Storage + drives + marine 15
Slide 16: Railway - India, EU, US - Controls, el. cabs. Inductive + Wiring
Railway - India, EU, US - Controls, el. cabs. Inductive + Wiring 16
Slide 17: Defence US, EU – Wiring Systems, Inductive, Sheet Metal
Defence US, EU – Wiring Systems, Inductive, Sheet Metal 17
Slide 18: Q&A
Q&A WE ARE RELIABLE 18