Slides
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Why invest in AQ Group 2 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 engineering in Germany Michael Riedel Trafobau – factory in Germany Strong balance sheet – net cash position
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3 8,000 Employees ~8,5bSEK Turnover 7 Business areas 15+ Market segments Production in 17 countries +4000 customers globally Profit every quarter for 30 years 14% EPS CAGR 2-4 acquisitions / year UN Global compact since 2012
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6 AQ Group EPS Growth and DPS 14% CAGR EPS 2015-2025Q2R12 The target is to double EPS every 5 years. CAGR 14%
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Net sales development 7 Growth 4% vs Q2 2024, whereof organic growth was +0.3%, currency was -4% and +8% was acquired.
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Organic growth 8 Target 10%/ year Organic growth was +0,3%, below our target. Low demand from buses in North America and food equipment in Europe. Growing trucks (new won business), construction equipment (new won business), electrification (inductive &SM), railway and defense.
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Recent new customer/project wins 9
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Acquired Growth 10 Target 5%/ year We reached +8% acquired growth in Q2. Several targets in negotiation but hard to close at price level we want.
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+ update 2025-07-14 11 ▪ The turnover in June was affected by a hailstorm in Riedel that perforated the roof. It impacted two weeks of production. Roof is repaired and most costs will be taken by insurance company. ▪ Carveout of IT-systems done. Monitor ERP implementation is planned for Q1/2026. ▪ Refinancing of factoring and external loans has been initiated and should be completed in Q4. ▪ Merge of mdexx Weyhe and AQ Paderborn will be completed by end of 2025. ▪ New purchase prices (AQ group agreements) implemented in mdexx will start to give effect in Q3. ▪ Productivity improvements ongoing in mdexx Trutnov and Weyhe.
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AQ Group EBT Margin development 12 EBT Margin (%) goal is 8% The margin shall consistently be within 8±2% every quarter. EBT Margin in Q2 was 9,7%. 10 consecutive quarters above EBT target of 8%. Sale of real estate in Gävle improves EBT margin in the quarter with 1%. Cost control in focus. Opportunities to improve operationally in a few of our production sites. mdexx dilutes margin with 1% in the quarter. It will improve sequentially.
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Inventory value & turnover development 13 Inventory turnover target is 3.5 turns/year. Currently we are at 3.0 The addition of acquired companies has a negative impact. We have done improvements in US, Finland, AQ Magnit in Bulgaria but also in several sites in Sweden. Our improvement project continue with focus on Electric in Bulgaria, Canada, UK, India and Mexico to get all of them above 3.
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Net cash from operating activities and Net debt 14 Ok operating cash flow of 232 mSEK in the quarter which results in net cash of 219mSEK. We will see a slight working capital increase when mdexx factoring will stop.
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Quality and delivery precision
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On-time Delivery (OTD) Goal 98%, Quality Goal 100% Result OTD Q2: 95% (92%) Result Q% Q2: 99.6% (99.7%) Good to see an improved overall OTD compared to the same period last year but we still have potential to be better at several sites. We have capacity constraints in Rockford (UK), JIT Mech (SE), Transformer Solutions (US) and Inductives Hungary. Still challenging to deliver on time in India. Quality is on a good level but we always want to improve.
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Why invest in AQ Group 17 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
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Questions? 18