Slide 1: N\ (2) ® S e) _ ® ~~ — 14°) > ‘o) Oo Oo
N\ (2) ® S e) _ ® ~~ — 14°) > ‘o) 2 5 2 Oo Oo |
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; JIT Mech Electrification Railway Marine Long history of acquistions. 2-4 factories/year Strong balance sheet 2
Slide 3: First Quarter, Jan-Mar 2024 in brief
=30= First Quarter, Jan-Mar 2024 in brief —_— fe fe] Net sales decreased by 1% to SEK 2,225 million (2,253) e Goal 15% growth Operating profit (EBIT) increased by 15% to SEK 223 million (194) Profit after financial items (EBT) increased by 20% to SEK 221 million (184) Profit margin before tax (EBT %
Slide 4: EPS Growth
EPS Growth 14% CAGR EPS 2015-2024QR12 CAGR 14% EPS growth of 17% vs Q1 2023 and 37% vs. Q4 2023. 4
Slide 5: Net sales
Net sales Flat turnover vs Q1 2023 and Q4 2024. Growth -1% vs Q1 2023. whereof +1% was currency. Capacity and demand more balanced. Our delayed orders have decreased in the quarter. 5
Slide 6: Organic growth
Organic growth Organic growth was -2%, below our target of 10%. Lost business for battery systems. Also lower volumes in some market segements. Decrease in inductors for Target 10%/ year frequency drives, components for contruction vehicles. Increases in the quarter mainly in electrification, defenc
Slide 7: Acquired Growth
Acquired Growth We have signed agreement with JIT Mech to purchase their two factories in Robertfors and Örnsköldsvik. It will add +1% growth in 2024. Target 5%/ year We have more prospects in the pipeline but are as always very strict in what we pay and what we buy. 7
Slide 8: EBT Margin
EBT Margin Happy with margin in the quarter. Low costs for for late deliveries and quality non conformaties in the quarter. Implemented process improvements have increased delivery precision and quality. Big improvements in Finland and China in the quarter. Hard work from our purchasing team also ha
Slide 9: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Slight increase in inventory in Q1. Work continues to improve further to reach our target in 2024. 9
Slide 10: Net cash from operating activities and Net debt
Net cash from operating activities and Net debt Good operating cash flow of 244 mSEK in the quarter which results in net debt (ex IFRS 16) of -181 mSEK. Mainly driven by good profit level and inventory turnover. Note, in Q2 planned dividend of 122 mSEK and the payment for JIT Mech (40 mSEK). 10
Slide 11: Quality and delivery precision
Quality and delivery precision
Slide 12: On-time Delivery (OTD) Jan-Mar - Goal 98%
On-time Delivery (OTD) Jan- Mar - Goal 98% Result Q1: 93.1% Improvement in several companies. Currently we still have three companies with bigger problems. We focus on getting them back on track. By end of Q2 I expect that there will only be two companies left with delivery issues.
Slide 13: Examples of projects for future growth
Examples of projects for future growth
Slide 14: JIT Mech + AQ - Background
JIT Mech + AQ - Background ▪ JIT Mech: ▪ Supplier of big welded and machined components for demanding industrial customers Robertsfors ▪ Low volume high mix ▪ High technical competence that work closely with customers R&D. Ö-Vik ▪ Good, well-maintained equipment ▪ Factories in Robertsfors and Örnskö
Slide 15: Customers and typical products
Customers and typical products 2024-04-17 15
Slide 16: Electrification – Inverters - HVDC + Storage + Charging
Electrification – Inverters - HVDC + Storage + Charging 16
Slide 17: Electrical cabinets and Inductive components for railway
Electrical cabinets and Inductive components for railway 17
Slide 18: Electrical cabinets & Inductive components for Ro-Ro and other marine vessels
Electrical cabinets & Inductive components for Ro-Ro and other marine vessels 18
Slide 19: 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; JIT Mech Electrification Railway Marine Long history of acquistions. 2-4 factories/year Strong balance sheet 19
Slide 20: Questions?
04 3 () 2 Questions? — fe fe] Qé&G WE ARE RELIABLE 20