Slide 1: AQ Group Q1 report 2025
WE ARE RELIABLE Customer Simplicity AO. Group Q1 report 2025 aq
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 Mdexx – factory in Czech Rep. and engineeri
Slide 3: AQ Group at a glance
Production 8,000 ~8,6bSEK 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: First Quarter, Jan-Mar 2025 in brief
First Quarter, Jan-Mar 2025 in brief Net sales increased by 3% to SEK 2,290 million (2,225) Goal >15% growth Operating profit (EBIT) decreased by 4% to SEK 215 million (223) Profit after financial items (EBT) decreased by 7% to SEK 205 million (221) Profit margin before tax (EBT %) was 8.9% (9.9) Go
Slide 5: AQ Group EPS Growth and DPS
AQ Group EPS Growth and DPS CAGR 14% 14% CAGR EPS 2015-2024Q1R12 The target is to grow EPS every year by 15%. DPS proposal SEK 1.60/share increase with 20% vs PY 5
Slide 6: AQ Group Net sales development
AQ Group Net sales development Growth 3% vs Q1 2024, whereof organic growth was -5%, -0% was currency and +8% was acquired. Low demand from our market segments in construction equipment, trucks, buses, agriculture and food equipment particularly in Europe. Better at end of the quarter. Still high vo
Slide 7: Organic growth
Organic growth Organic growth in Q1 was -5%, below our target of +10%. Low volume in trucks, buses and construction equipment but improved in last months of the Target 10%/ year quarter. Good volume in electrification, railway and defence. New contract from major electrification customer for transfo
Slide 8: Recent new customer/project wins
Recent new customer/project wins 8
Slide 9: Acquired Growth
Acquired Growth We reached +8% acquired growth in Q1. Mdexx and Riedel 2 month turnover in the quarter. Target 5%/ year 9
Slide 10: Update
+ update ▪ The turnover for Feb-Mar has been ok. ▪ Carveout of IT-systems ready in Q3 with implementation of Monitor instead of SAP. ▪ Riedel margin is above AQ target. ▪ Mdexx margin is below 0%. ▪ Refinancing factoring will be done in Q2 improving margin in mdexx and Riedel. ▪ Part of new project
Slide 11: AQ Group EBT Margin development
AQ Group EBT Margin development EBT Margin in Q1 was 8,9%. 9 consecutive quarters above EBT target of 8%. Cost control is good. Opportunities to improve operationally in a few of our production sites. mdexx dilutes margin with 0.5% in the quarter. It will improve sequentially starting Q2. EBT Margin
Slide 12: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3.5 turns/year. Currently we are at 2.9 The addition of acquired companies has a negative impact. Our improvement project continue with focus on Bulgaria, Canada, UK, India and Mexico. 12
Slide 13: Net cash from operating activities and Net debt
Net cash from operating activities and Net debt Ok operating cash flow of 244 mSEK in the quarter which results in net cash (incl. IFRS 16) of 253mSEK. This is including payment of mdexx+Riedel acquisitions. 13
Slide 14: Comment on tariffs
Comment on tariffs WE ARE RELIABLE 1
Slide 15: We produce and deliver locally since 1994
We produce and deliver locally since 1994 15
Slide 16: Quality and delivery precision
Quality and delivery precision
Slide 17: On-time Delivery and Quality, Jan-Mar
Jan-Mar: On-time Delivery (OTD) Goal 98%, Quality Goal 100% Result OTD YTD: 94% (93%) Result Q% YTD: 99,64% (99,63%) 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) and Inductives
Slide 18: 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 Strong balance sheet – net cash position 1
Slide 19: Questions?
Questions? Q&a WE ARE RELIABLE 19