Aq Group Ab · OMXSTO:AQ
Aq Group Ab — Q1 2023 Earnings Presentation
17 slides from Aq Group Ab's earnings presentation, 2023
Slide 1: AQ Group Investor presentation Q1 2023
Slide 2: First Quarter, Jan-Mar 2023 in brief
First Quarter, Jan-Mar 2023 in brief led e Good start of the year results in growth, improved margin and cash flow e Net sales increased by 36.8% to SEK 2,253 million (1,646) e Goal 15% Growth e Operating profit (EBIT) increased by 72.3% to SEK 194 million (113) e Profit after financial items (EBT)
Slide 3: EPS Growth
EPS Growth 17% Average EPS Growth 2013-2023Q1 R12 2023 Q1 EPS growth of 15,8% vs 2022 FY 3
Slide 4: Net sales
Net sales Good turnover in the quarter. Growth +37% vs Q1 2022 and +14% vs Q4 2022. Still several projects that we could not deliver in the quarter due to capacity/productivity in new projects. Serial deliveries started and is ramping up on battery systems from Bulgaria and wiring systems truck proj
Slide 5: Organic growth
Organic growth ”Real” organic growth in Q1 is approximately 21% and 10% is price increases vs. same quarter last year. Target 10%/ year Increases mainly in electrification, storage of energy, components for defence industry and systems for Med-tech. 5
Slide 6: Acquired Growth
Acquired Growth Focus on organic growth. But we are as always oppurtunistic and trying to make deals. Target 5%/ year AQ companies acquired from Schaffner group is now at good EBT and strong growth due to mining, railway and UPS projects in US, EU and China. 6
Slide 7: EBT Margin
EBT Margin Higher focus on internal productivity in high growth factories. Has managed to make loss-makers profitable. This takes us over 8% in the quarter. Still we need to work smarter and with higher productivity to reach full potential. EBT Margin (%) goal is 8% The margin shall consistently be
Slide 8: Net cash from operating activities
Net cash from operating activities Good operating cash flow in the quarter. Our program for increasing inventory turnover is effective but we can do more. 8
Slide 9: Inventory value & turnover development
Inventory value & turnover development Inventory turnover target is 3,5 turns/year. Our actions are starting to show improvement but we have some way to go before we reach our target. Dedicated resources put in place. Low performers are being educated and improvements are made. 9
Slide 10: Investments in increased capacity
Investments in increased capacity Total investments in fixed assets in the first quarter was SEK 48m (SEK 66m) Extension of Wiring Systems Factory in Lodz Poland Increase with 5500m2 of rented factory area. Finished September 2023. Will enable 30%/20mEuro increase capacity. Customers: Fork lifts, ag
Slide 11: Net Debt excl IFRS16
Net Debt excl IFRS16 Net debt (excl IFRS16) Mar 2023 SEK 439 Million. Good cash flow decreased the net debt in the quarter. 11
Slide 12: On-time Delivery (OTD) Jan-Mar - Goal 98%
On-time Delivery(OTD) Jan- Mar - Goal 98% We are increasing capacity rapidly to handle increasing volumes. New larger projects need to improve productivity. Material availability back to normal. We have full focus on this area at the moment in all our sites with poor delivery performance.
Slide 13: Projects for future growth
Projects for future growth WE ARE RELIABLE
Slide 14: Electrification (Storage)
Electrification (Storage) Battery storage Batteries and control cabinets for storage of reneable energy. Deliveries to US, EU and Taiwan. Expected capacity : 1000pcs battery modules. 500 pcs control cabinets. Turnover at full speed 40mEuro. Cooling of wind turbines Serial production of aluminum fram
Slide 15: Electrification (Wind Power & motor drives)
Electrification (Wind Power & motor drives) Inductors and mechanical enclosures for motor drives Strong increase in demand for motor drives. Our customers tell us that when their customer exchange an old drive for a new one they can save between 20-40% in energy consumption. We see a 40% increase in
Slide 16: Defence
Defence Wiring Systems Strong growth in Sweden and Poland for wiring systems to tanks and all- terrain vehicles. Several projects recieved with order value of SEK 100m over 4 years. Sheet metal fabrication Strong growth in Sweden and Estonia for sheet metal fabrication and assembly of parts to tanks
Slide 17: Questions?
WE ARE RELIABLE Questions? aQ