Annual Report • Apr 13, 2021
Annual Report
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AQ Group AB Annual Report 2020
www.aqg.se
Our business is production, we have a long term view and we fully commit ourselves to live up to customer expectations for quality, delivery performance, technological development and service.
| AQ Group Business Concept | 4 |
|---|---|
| History | 5 |
| A Word from the CEO | 6 |
| Our values | 8 |
| Goals and strategies | 10 |
| Business model | 12 |
| Components and systems for a better environment | 13 |
| Market segments | 13 |
| Electric cabinets | 14 |
| System products | 14 |
| Precision stamping and injection molding | 15 |
| Inductive components | 15 |
| Wiring systems and electromechanical modules | 16 |
| Sheet metal processing | 16 |
| Special technologies and engineering | 17 |
| Growth and new geographical markets | 18 |
| The purchasing function | 19 |
| Acquisitions,acquisition process and integration | 20 |
| Sustainable enterprise | 21 |
| Shares, share capital and ownership | 27 |
| Corporate Governance Report | 30 |
| Board | 34 |
| Group management | 35 |
| Directors' report | 36 |
| Events during the year | 36 |
| Multi-year overview | 38 |
| Proposed appropriation of profit | 41 |
| Consolidated income statement | 42 |
| Consolidated comprehensive income | 43 |
| Consolidated balance sheet | 44 |
| Consolidated statement of changes in equity | 46 |
| Consolidated cash flow statement | 47 |
| Parent company's income statement | 48 |
| Parent company's balance sheet | 49 |
| Parent company's statement of changes in equity | 51 |
| Parent company's cash flow statement | 52 |
| Notes to the financial statements | 53 | |
|---|---|---|
| Note 1. General Information | 54 | |
| Note 2. Report on the application of accounting principles |
54 | |
| Note 3. Financial instruments and financial risk management |
58 | |
| Note 4. Amended accounting principles and future changes |
62 | |
| Note 5. Important estimates and assessments for accounting purposes |
62 | |
| Note 6. Operating segments and market distribution |
63 | |
| Note 7. Other operating income | 66 | |
| Note 8. Other external expenses | 66 | |
| Note 9. Personnel | 68 | |
| Note 10. Profit/loss from participations in group companies |
70 | |
| Note 11. Financial income | 71 | |
| Note 12. Financial expenses | 71 | |
| Note 13. Appropriations | 71 | |
| Note 14. Taxes | 72 | |
| Note15. Other intangible assets | 73 | |
| Note 16. Goodwill | 74 | |
| Note 17. Land and buidlings | 75 | |
| Note 18. Plant and machinery | 75 | |
| Note 19. Equipment, tools, fixtures and fittings | 76 | |
| Note 20. Construction in progress | 76 | |
| Note 21. Participations in group companies | 76 | |
| Note 22. Long-term receivables | 78 | |
| Note 23. Other receivables | 78 | |
| Note 24. Prepaid expenses and accrued income | 78 | |
| Note 25. Equity | 79 | |
| Note 26. Untaxed reserves | 80 | |
| Note 27. Pledged assets and contingent liabilities | 80 | |
| Note 28. Provisions - non-current and current | 81 | |
| Note 29. Other liabilities | 81 | |
| Note 30. Accrued expenses and prepaid income | 81 | |
| Note 31. Acquisitions | 82 | |
| Note 32. Cash flow analysis | 84 | |
| Note 33. Transactions with related parties | 85 | |
| Note 34. Proposed appropriation of profits | 85 | |
| Note 35. Post balance sheet events | 85 | |
| Group key figures | 86 | |
| Definitions | 88 | |
| The Board's certification | 89 | |
| Auditor's report | 90 | |
| Group structure | 95 |
AQ Group is a global manufacturer of components and systems for industrial customers with high demands.
To develop, manufacture and assemble components and systems for industrial customers with high demands.
With our commitment to Total Quality our customers become long-term partners.
The business consists of the System and Component segments. The System segment includes our Electric Cabinets and System Products business areas. The Component segment encompasses our business areas of Precision stamping and Injection Molding, Inductive Components, Wiring Systems, Sheet Metal Processing as well as Special Technologies and Engineering.
Since its inception in 1994, AQ Group has reported steady, rapid growth with good profitability. The Group has approximately 5,900 employees in total, around 85% of them in growth countries outside Sweden. Annual turnover is SEK 4.8 billion. The company is listed on Nasdaq Stockholm's main market since January 16, 2017 and has the highest credit rating AAA.
AQ currently has operations in Sweden, Bulgaria, Serbia, Hungary, Estonia, Poland, Lithuania, Mexico, Italy, India, China, Finland, USA , Canada, Brazil and Germany. The number of employees in the different countries are distributed as follows.
| 2020 | 2019 | 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Average number of employees | Women | Men | Total | Women | Men | Total | Women | Men | Total |
| Parent company, Sweden | 15 | 8 | 23 | 13 | 9 | 22 | 11 | 8 | 19 |
| Subsidiaries, Sweden | 173 | 598 | 771 | 237 | 597 | 834 | 169 | 712 | 881 |
| Brazil | 2 | 3 | 5 | 1 | 3 | 4 | - | - | - |
| Bulgaria | 645 | 588 | 1,233 | 695 | 613 | 1,308 | 690 | 578 | 1,268 |
| Estonia | 152 | 429 | 581 | 152 | 444 | 596 | 96 | 324 | 420 |
| Finland | 32 | 155 | 187 | 40 | 175 | 215 | 30 | 91 | 121 |
| India | 13 | 124 | 137 | 10 | 119 | 129 | 10 | 123 | 133 |
| Italy | 7 | 11 | 18 | 7 | 14 | 21 | 7 | 13 | 20 |
| Canada | 112 | 52 | 164 | 114 | 52 | 166 | 110 | 43 | 153 |
| China | 262 | 310 | 572 | 189 | 289 | 478 | 176 | 264 | 440 |
| Lithuania | 462 | 143 | 605 | 608 | 151 | 759 | 588 | 133 | 721 |
| Mexico | 125 | 75 | 200 | 162 | 34 | 196 | 139 | 66 | 205 |
| Poland | 544 | 396 | 940 | 656 | 467 | 1,123 | 684 | 463 | 1,147 |
| Serbia | - | 4 | 4 | 23 | 12 | 35 | 22 | 10 | 32 |
| Thailand | - | - | - | - | - | - | 17 | 8 | 25 |
| Germany | - | 3 | 3 | - | 3 | 3 | - | - | - |
| Hungary | 85 | 291 | 376 | 79 | 284 | 363 | 87 | 292 | 379 |
| USA | 27 | 45 | 72 | 31 | 47 | 78 | 44 | 61 | 105 |
| Total | 2,656 | 3,235 | 5,891 | 3,017 | 3,313 | 6,330 | 2,880 | 3,189 | 6,069 |
| 1994 | AQ Group is founded via a merger of Aros Kvalitetsplast and the transformer division of ABB. |
|---|---|
| 1995 | The AQ Group consists of AQ Plast, AQ Komponent and AQ Trafo |
| 1996 | Acquisition of a transformer factory in Bulgaria, AQ Magnit |
| 1997 | Acquisition of three companies in electric cabinets in Sweden, AQ Elautomatik |
| 2001 | AQ's stock listed on Aktietorget on June 6. Acquisition of a company in medical technology in Uppsala, AQ M-Tech |
| 2003 | Acquisition of a company in Bulgaria in mechanical components and electric cabinets, AQ Electric |
| 2004 | Acquisition of two companies in sheet metal and injection molding, with operations in Sweden and China, AQ Enclosure Systems och AQ Plast |
| 2006 | Acquisition of companies in sheet metal with operations in Sweden and in Pärnu, Estonia, AQ Special Sheet Metal, AQ Lasertool |
| 2008 | Acquisition of transformer manufacturer in Suzhou China, AQ Electric |
| 2010 | Acquisition of a company in wiring harness manufacturing in Poland, AQ Wiring Systems |
| 2011 | Start of a new company in wiring systems and mechanical components in Pune India, AQ Mechanical & Electrical |
| 2012 | Acquisition of a company in wiring systems manufacturing with operations in Lithuania and Mexiko, AQ Wiring Systems |
| 2013 | Acquisition of bankruptcy estate active in the assembly of packaging machines in Falköping, AQ Enclosure Systems .Acquisition of bankruptcy estate within special silencers in Lyrestad, AQ Special Sheet Metal |
| 2014 | Acquisition of companies in injection molding and assembly in Bulgaria, AQ Plastronic Acquisition of surface treatment company (ED) in Estonia, AQ Lasertool |
| 2015 | Acquisition of a company in injection molding and advanced mechanical components in Hungary, AQ Anton |
| 2016 | Acquisition of a Group within wiring systems and mechanical manufacturing, AQ Wiring Systems, AQ Components |
| 2017 | The share admitted to trading on Nasdaq Stockholm's main list, Mid Cap |
| 2018 | Acquisition of mechanical manufacturers in Finland and Estonia, AQ Mecanova, Acquisition of wiring systems manufacturers in Canada and the USA, AQ B3CG |
| 2019 | Acquisition of manufacturer of inductive components in Finland, Estonia, China, Brazil and Germany, AQ Trafotek. Acquisition of company specialized in sales of connection technology products in Sweden, AQ MiniCon |
Net turnover and profit before tax, MSEK
I would like to thank our customers, employees and suppliers for good business and excellent work during the year. Growth and profits are created through the collaboration between all talented people at our customers and AQ's companies. In particular, it is our technical know-how in production and engineering that is key to finding competitive production solutions for our world-leading customers. It has been a privilege to be involved with this during the year.
AQ Group reduced net sales with 5.7% in 2020 which is something that we are not used to. It started in China in February where we lost SEK 25 million in net sales because of Covid-19 and the prolonged Chinese new year. It continued with fully closed sites in India, Canada, US and Italy which impacted net sales negatively with SEK 42 million. Subsequently, the European automotive industry was forced to close during April and then opened up again in May and June. This impacted 9 of our larger sites in Europe and led to a reduction in net sales of SEK 187 million. Also, during June and July, the activity was lower and then demand gradually improved from September and onwards. Not the least, demand for commercial vehicles recovered well during the fourth quarter.
We implemented measures fast in our operational units to reduce the risk for spread of the virus and to maintain the health and safety of our employees. We are proud that we were able to maintain high OTD to our customers throughout this period in spite of large demand fluctuation, material shortages and personell changes. We have in this perspective, really been a "Reliable" supplier.
Covid-19 has impacted our business both in positive and negative direction during the year. We have grown in medical technology supporting the buildup of vaccine manufacturing capacity. We also sold more plastic components to power tools. Many customers continued normally during the first phase of the pandemic but were later exposed to a decline as investment decisions such as ships and industrial projects were postponed. We have also seen a decline in coach buses in Mexico.
It´s been rewarding to see many business streams developing in the right direction during 2020. Especially the orders coming from all the actions taken to improve the situation for the climate and reducing CO2 emissions. Renewables investments continue to increase. We supply inductive components, sheet metal parts and electrical cabinets to customers within wind power, solar power and energy storage.
AQ has an especially strong position within electrical vehicles. We know electrificion and automation well and at the same time we are a key supplier of wiring harnesses and sheet metal components for commercial vehicles. We are participating in more than 20 R&D projects for electrical drivelines at our customers.
Local transit solutions are even more important for the climate. AQ has a large business in buses and trains and work with many interesting projects both in Europe, Asia and North America. As an example, we are part of the large e-bus project in Gothenburg and we are also supplying plastic components for electrical bicycles.
Automation and digitalization are central technologies to control and utilize energy in the most environmentally friendly way. All automation solutions require electrical cabinets where automation components from leading vendors are assembled into cabinets. AQ has a strong global position in this supply chain. We can supply complete automation panels incl custom built enclosures in all regions of the world. Also cloud based software solutions require electrical cabinets. Here we have developed a new business with a datacenter customer during the year.
A contract manufacturer like AQ need to be very agile and manage both growth and decline as it happens in the market. This is something we have done well during the year.
Earnings before tax (EBT) grew 14.8 percent and Earnings per share after tax is on all-time high at 17.24 SEK/share. This profit improvement comes from a solid effort to reduce our costs, from new business and because of the fact that many of our customers have been very resilient and continued business well during the pandemic. In addition, we have received financial support from authorities to compensate for the extra cost and lost business we have had during the pandemic.
Net cash flow from operating activites were SEK 608 million which is an increase of 21.9%. Initially we had lower inventory turnover, but this improved towards the end of the year. During the second quarter, we took measures to strengthen our balance sheet in the uncertain situation that prevailed at that time. This together with continuous strong cashflow during the year, actions to postpone capital expenditure and the decision by the annual general meeting not to pay any dividend, led to a lower net debt and a stronger financial position.
We are pleased to note that on time delivery to our customers has improved to 94.7% in 2020, which is an improvement of 2.1 percentage points compared to 2019. This means that most of our manufacturing units have an OTD that is close to or above our target level. However, we are not satisfied and will continue to develop our processes and standards to be even more reliable and flexible during the years to come. In order to do this, we have continued to invest in capacity and machinery. As an example, we have;
The Pandemic led to a large financial uncertainty and a lower M&A activity. Our growth strategy is still the same. We want to grow both via acquisitions and from organic growth and continue to evaluate acquisition candidates on a regular basis.
AQ Group has a strong culture with core values that are for real in customer focus, entrepreneurship, simplicity, cost efficiency and courage and respect. We run our business in decentralized companies with entrepreneurial leaders that operate close to their customers and have a clear mandate to manage their company. In this way we can be fast and benefit from all the opportunities that exist in the market. MSEK
Our guideline is to be a long-term, reliable, growing and profitable group with an EBT-margin of 8% and a strong financial position. We like to do business with the customer in focus. We will further develop and strengthen our strong relations with world leading OEM customers. Our dedicated employees will do everything to grow organically and make new acquisitions. A continued important part of this is our core values and our pursuit of being a long-term and "Reliable"supplier to leading industrial customers.
Finally, I would like to warmly welcome James Ahrgren back to AQ Group when he takes over as CEO on April 1, 2021. James and myself have been working well together during the quarter to manage the transition. This together with James previous experience from AQ will guarantee that we will not lose any momentum in our business and improvement actions.
AQ's strategy and core values remain unchanged. We work long-term with demanding industrial customers who have high demands on quality and delivery security. We always want to do the "little extra" for our customers and help them become successful in their markets. The key to this is skilled employees who work in decentralized companies led by strong entrepreneurs. We are simple and cost-effective, which makes us competitive. Finally, we dare to go our own way and say things as they are, which helps us to address the problems and opportunities that arise in each company.
Our strategy is to grow organically and through acquisitions. In the pandemic year 2020 sales decreased, but we have laid a good foundation for continued growth in the years to come. It has been extraordinarily fun and a great learning experience to be the CEO of AQ Group. I'm sure that James, together with the board and employees, will continue to develop AQ to become an even more successful and "reliable" supplier to demanding industrial customers around the world.
Anders Carlsson CEO
Our values form an important basis for our business and unites AQ's companies worldwide. Our building blocks Customer focus, Simplicity, Entrepreneurial business, Courage and Respect and Cost efficiency are based on a fundamental respect for our customers, employees and partners. We have a decentralised organisation to strengthen the driving forces within innovation and ambition.
The core values help to create a unique corporate culture. They have been around since the start in 1994 and continue to permeate throughout the company. The values are based on a fundamental respect for the individual and a belief in people's abilities to take initiative. There is an openness to new ideas and a desire for continuous improvement throughout the company. Simplicity, cost efficiency and courage and respect are other examples of values that contribute to our prestige less culture. By sharing values, colleagues from all parts of the world can work together in a fast pace, rely on each other's knowledge and skills, develop together and create customer value the best way.
In 2020, we have continued to implement the values in our units. It happens e.g. via the CEO and HR Manager together meeting management teams and going through everything from AQ's history to reviews of AQ's values. Our values are documented in sixteen different languages. Our business is characterised by "We Are Reliable" no matter where or with whom at AQ that you meet.
Commitment by employees is the key to AQ's success worldwide. The primary basis for AQ's success is all our dedicated and talented employees with widely diverse backgrounds and nationalities. This combination of competencies is a prerequisite for AQ's future development in a challenging market. Each employee makes a difference in the workplace to create the best offering and best experience for customers. Everyone can contribute with their own ideas and new perspectives.
We target customers who are world leaders in their respective niches. For them to be world leaders, they must work with world-leading suppliers. AQ shall be the world leader in cost efficiency, quality, delivery precision, flexibility and service. This is the meaning of "We Are Reliable". AQ has no great patents or other protection, we live on the fact that we have the best employees. To deserve motivated and committed employees we must be honest, open, interested, have courage, give feedback and welcome views and ideas. The responsibility for this lies with everyone. Managers at AQ have an additional responsibility to lead by example and ensure good communication with employees.
Together we will be the world's best supplier! "
Customer Focus
Entrepreneurial business
Cost Efficiency Courage and Respect
To be a reliable growing partner for demanding industrial customers.
Our business concept is to develop, manufacture and assemble components and systems for industrial customers with high demands. With our commitment to TOTAL QUALITY, our customers become long-term partners.
Our Vision is to be a reliable growing partner for demanding industrial customers.
AQ Group's Board has set targets for the Group. The objectives assure that the Group is being managed towards a good profit, high quality and delivery reliability, and strong growth with a sound level of financial risk.
We aim to be a world leader in terms of quality, delivery precision and customer service
We strive for profitable growth
The main points in the strategy for profitable organic growth are:
| GOALS | TARGET | DESCRIPTION | FULFILLMENT |
|---|---|---|---|
| PRODUCT QUALITY | |||
| Our products shall be delive red without generating any disruptions for our custo mers.Product quality shall be perfect from the custo mers' point of view. |
100% | In order to assess product quality, we measure the number of disruptions that occur at the customer and compare it with the total number of deliveries. Over the last five years, our quality has remained at a steady level of around 99.5%. |
% 100.0 99.5 99.0 98.5 98.0 2016 2017 2018 2019 2020 |
| DELIVERY PRECISION | |||
| To perform according to expectations is the key to success. Our ability to deliver on time is our main priority. |
98% | Wemeasure the number of late deliveries made to a customer and compare it with the total number of deliveries. Our delivery performance have kept improving during 2020. We are working hard to reach our goal of 98% |
% 100 96 92 88 84 80 2016 2017 2018 2019 2020 |
| FINANCIAL STANDING | |||
| First, we make money, then we invest. AQ shall not be dependent on lenders. Our goal is to always have an equity ratio exceeding 40%. |
>40% | AQ has AAA rating from Bisnode. Our equity ratio has been above the target in the last five years. |
% 70 65 60 55 50 45 40 35 2016 2017 2018 2019 2020 |
| PROFITABILITY | |||
| AQ's goal is to reach a profit before tax of 8% over a business cycle. |
+8% | The assessment is that the goal of 8% profit before tax of 8% over a business cycle is challenging due to constant price pressure and strong competition, but the goal is possible to reach. |
% 9 8 7 6 5 4 3 2 1 0 2016 2017 2018 2019 2020 |
AQ's customers are often world leaders in what they do. Some of our largest customers are the driving force in the development of electric power transmissions,commercial and rail vehicles, construction machinery and telecom equipment. They depend on getting components and systems of good quality, delivered on time, from AQ. At the same time, they place high demands on us so that we produce our products in a sustainable way. AQ adds customer value in essentially four different areas.
| Design | Industrialisation | Purchasing/ Logistics |
Serial production |
|---|---|---|---|
| AQ can, thanks to its long experience in manufacturing, help customers with the design of components and systems. This works best when AQ is involved early in the product development process. |
In many cases AQ helps its clients to industri alise the prototype. It basically means that we set up an optimal production structure as close to customer mar kets as possible in one of our many factories. |
Through our global presence in many countries, we often help our customers find an equivalent component alternative at lower prices internally within AQ, but also externally. This allows us to reduce the total cost for our customers. |
AQ's many manu facturing units are focused on delivering the desired quality on time and as efficiently as possible. We often say that we sell reliability. It is our understanding that this is what our custo mers value most. |
AQ Group have many world class customers within many market segments. This means we have good risk diversification that helps us to manage demand fluctuations and makes us less cyclical. None of the 15 areas below is a dominating part of the net sales, our business is well distrbuted across these segments. We are working with commercial vehicles that operate both on and off public roads. We work more with vehicle customers that have an high mix and low volume profile operating in special applications. Most of these vehicle customers are currently developing electrical drivetrains and AQ is part of this development. We have business in Power, automation, railway and renewables which are key technologies to enable the sustainable society of the future. Our combined business to railway and bus customers means we have a certain exposure to local transit systems. Our marine deliveries are both for port infrastructure as well as ships. Finally we manufacture complete machines for food and beverage, medical and traffic infrastructure customers.
AQ has many customers who are leading in technology to improve our environment. We help them produce parts or complete products. Over the years, AQ has seen increased demand in these areas. In order for our customers to succeed, it is of the utmost importance that the products work for a long time, but also that they have as low a cost as possible. We help them with everything from realizing an idea to serial production with deliveries globally close to our customers' markets. We can most clearly see the trend in commercial vehicles where several of our customers switch to full or partial electrical propulsion. There, AQ can assist them with the expertise to produce for the automotive industry combined with our expertise in electric power and electrical automation.
Cleaning of ballast water means that ships can fulfill the UN's climate goals to preserve marine ecosystems.
AQ is a complete partner for customers who need electrical systems. Our equipment is used in a variety of applications that have been delivered worldwide.
Some examples are electric cabinets for demanding food processing, control and power equipment for ship cranes, control equipment for automated handling of goods in ports, monitoring and control systems for large motors and generators.
Through a common and long-term cooperation with our customers, we have developed products that are adapted to today's requirements for security and information technology. All units are certified to ISO 9000, and we can also deliver quality assured equipment according to UL standards.
We have an approach that is very customer focused and flexible. We are organised into customer teams, an organisational form that has streamlined decision-making and takes full responsibility for the customer. This allows us to undertake assignments that place high demands on flexibility and supply reliability with short lead times.
AQ offers a range of equipment and machines, an example of this is the ticket machines for parking and travel tickets as well as packaging machines.
The products, which are often technologically advanced, are developed and fine-tuned in close cooperation with customers to achieve cost-efficient and technically optimised solutions.
We work to create and maintain long-term relationships where we are the customers' manufacturing partner that creates added value in terms of cost, quality, development, delivery and logistics.
AQ is a global supplier of manufacturing and assembling tool-bound sheet metal and thermoplastic parts to demanding industrial customers. With our commitment to Total Quality, our customers become longterm partners.
We have a modern machine park with more than 120 injection molding machines with locking force from 25 to 1500 tons and 20 punching machines.
The series size can vary from a few to a million details per year. We process most construction plastics such as PC, PA, PBT, PC / ABS, PP, ABS, TPE, TPU, POM but also high-performance plastics that can withstand temperatures above 200°C, eg. PES, PEI and PEEK. We have extensive experience of punching complex materials with high tolerance requirements.
We also have the opportunity to injection mold plastic with up to 4 different materials in one and the same component.
Our customer base is made up of large industrial customers in various industries such as the automotive, medical, telecom and engineering industries. We have production units in Sweden, Hungary, China and Bulgaria for global deliveries.
Choosing AQ as a partner, is to work with enthusiastic and cooperating colleagues at every stage of the project - from idea to finished product.
Inductive components from AQ are found in some of the most demanding applications, such as in high-speed trains, in relay protection, aviation equipment and equipment for process automation. Our products are largely developed in cooperation with the customer. This possibility is used by more and more businesses because it provides the opportunity to realise economically and technically optimal solutions.
Is a global business area that provides wiring systems and electromechanical modules for demanding customers around the world.
We have extensive experience and knowledge when it comes to working with clients in the automotive, railway and general engineering industries. This has taught us to consistently strive to improve our processes and products, and has seen us assume a leading position in the market. In recent years, we have actively participated in the conversion to electrically powered vehicles.
Our global presence, together with our expertise and experience in producing all kinds of wiring systems and electromechanical modules makes AQ an ideal partner for customers with qualified demands.
AQ provides contract manufacturing of sheet metal components and complex sheet metal designs in the automotive,railway, telecommunication and electromechanical industries.
With high-tech equipment, knowledge, experience and creativity, we are an obvious choice in the industry.
Thickness levels from 0.2 mm to 20 mm in grades standard materials, high strength materials, aluminium and stainless steel.
Part of gas turbine
The business area Special Technologies and Engineering consists of AQ's operations involving a high level of technology and which supplies advanced technology products and services to demanding industrial customers.
AQ Anton is a leading supplier in machine processing of components for large industrial gas turbines for leading industrial customers. We use sophisticated equipment to process high-temperature materials such as nickel-cobalt alloys.
AQ M-Tech in Uppsala, Sweden develops and manufactures components and systems for medical applications and for industry. We have developed and patented our own products which are sold to medical applications worldwide.
AQ Engineering develops complete systems for the automotive industry and provides engineers with expertise in cost estimations, quality and mechanical design of both sheet metal and plastic components for the automotive and other industries. Our engineers can develop manufacturing processes and products in close cooperation with the customer.
AQ Magnetica Italy, AQ Trafo and AQ Trafotek are focused on the development and design of inductive components, both in terms of electrical and mechanical design. Our engineers have extensive experience in developing solutions together with customers to meet customer requirements. The design work occurs in Solid-Works where a 3D model of the product is created based on customer specifications. Verification of the design, both mechanically, electrically and thermally, is via FEM calculations.
Contract manufacturing is a competitive business. AQ can't rely on patents or its brand to gain market shares. Our strategy is with local production and sales near the customer to offer the most cost-effective solutions. Our customers are global suppliers of advanced technical
products. They have a continuous need to find reliable suppliers near their own production sites.
We see clearly that demand for local content is increasing on many of our customers' markets. Therefore, it is of utmost importance that we listen to our customers' request to be present on the local markets.
We believe that local sales and production where we eliminate intermediaries such as logistics companies, sales offices and distributors, makes our products more profitable for both us and our customers. It is of course also good for the environment.
All of AQ's business areas are close to their customers. Below it's described in which countriese we have activities for each area.
Inductive components: Bulgaria, China, India, Italy, Sweden, Finland, Serbia, Brazil, Estonia, Germany
Wiring systems: Poland, Lithuania, Sweden, India, China, Mexico, Canada, USA Electric cabinets: Bulgaria, Sweden, China, India, Poland, Canada
Sheet metal processing: Sweden, Bulgaria, Estonia, China, Finland, India Precision stamping and injection molding Sweden, Hungary, Bulgaria, China System products: Sweden, Bulgaria, China, Estonia Special Technologies and Engineering: Sweden, Hungary, China, Bulgaria, Italy
The purchasing function is of strategic importance in a company like AQ Group. In close cooperation with sales, we ensure cost effective and competent suppliers. It provide added value for our customers and strengthen AQ:s competitiveness.
In purchasing, we are working to build mutually beneficial longterm relationships with our suppliers. We are working to continuously develop and improve existing supplier base and we are looking for new more competitive suppliers, that want to grow together with AQ. We can offer manufacturing of components in low cost countries, often within AQ where we can benefit from AQ's competence and capacity.
Ongoing work continues to utilize volume advantages and synergies within components and equipment. Through a global and
close collaboration in procurement, we create the conditions for a common platform in how we develop our supplier base and achieve synergies. We strive to find suppliers with the lowest total cost and preferably with global support to ensure a global and cost-effective supplier base that can act both globally, regionally, and locally.
We have during the year continued to develop AQ:s purchasing function. Among other things, we have arranged online seminars. During these events, we have shared experience, knowledge and information from all AQ subsidiaries. Furthermore, we have engaged external competence to carry out in-depth legal commercial training. All with the aim to strengthen the purchasing function by developing our employees.
We have also continued the coordination in our business areas, thereby ensuring synergies and volume benefits between the companies and AQ's global supplier base.
Together with our suppliers, we strive to act and collaborate with the customer to further strengthen AQ:s capacity to provide added value. Since we have a strong focus on ensuring top quality and delivery precision to our customers, our suppliers must live up to high performance.
To live up to our customers' requirements, we ensure that our suppliers meet and develop
Digital meeting for AQ Purchasing team
our basic requirements in terms of cost-effective quality, reliability, capacity, service, ethics, sustainability and risk minimization.
In close cooperation with our suppliers, we develop our supplier base by performing supplier assessments and giving continuous feedback on performance. In cases where a supplier does not meet our requirements, we take action and replace them.
The capacity at our suppliers was good at the beginning of the year. We have worked actively with the whole supply chain to limit the effects of the temporary lockdowns, introduced by several countries due to the pandemic. At the end of the year, we did note a decrease in available capacity. Commodity prices have fluctuated during the year.
The year started with increasing commodity prices, which then temporarily fell back. During the second part of the year, raw material prices increased again.
AQ continues to focus on category management of strategically important components and services. This strategy strengthens and develops AQ's competitiveness and provides added value to our customers.
AQ's overall goal is to be a leading global contract manufacturer. An acquisition strategy is an important part of reaching the goal.
Acquisitions are an important part of AQ's strategy and an important building block in our goal of profitable growth. Acquisitions strengthen our competitiveness and results in a broader range of products and services, new customers and new geographic markets.
Acquisitions also give us opportunities for synergies in areas such as purchasing, IT and administration. We are committed and long-term industrial owners - our companies shall be prosperous and develop in a positive way. Our goal is 100% ownership of the companies we acquire.
Potential acquisitions are evaluated based on their profile, financial history, growth and profitability potential, as well as management. The companies shall be manufacturing companies in business-to-business sectors and ideally have interesting customerswith strong brands. We look positively on companies with a matching corporate culture and who are entrepreneur-owned where the entrepreneurs continue being active in the companies.
Our core values are a prerequisite for the successful integration of acquired companies. Group management holds, after an acquisition, briefings about AQ and our values with the management of acquired companies. Integration is also reinforced since staff in sales, purchasing, finance and IT rapidly become integrated into the internal networks of AQ. We see it as a way to create good relationships at various levels. The companies' part in the AQ's organisation with clear reporting lines are also a priority of integration.
There were no acquisitions made in 2020. The inflow of acquisition objects was very low after the Covid-19 pandemic began, but increased during the autumn.
The focus has instead been on integrating the Trafotek companies into AQ. The Trafotek group was acquired in 2019 and is a leading supplier of power electronics components, such as reactors, transformers and filters. Our head of the Inductive Components business areas has taken over the role of Managing Director of Trafotek Oy to facilittate integration and find synergies. Among other things, our factory in India has received orders from Trafotek's global customers and we are merging the factories in China to increase efficiency.
AQ will continue to grow through acquisitions. The challenge for AQ is to continue to make successful acquisitions. The acquisitions will be focused on two main areas. Partly to support our commitment to adapt our existing customer requirements and demands by being agile and adaptable, and finding companies that fit the customer requirements for production processes and market location. The other main area is to acquire companies with interesting new customers and markets, consistent with AQ's focus.
AQ is well positioned for new acquisitions, both from a financial and management perspective.
AQ was founded in Sweden in 1994 and consists today of about 5,900 employees, with a large share working in growth countries outside Sweden. We are a global manufacturer of components and systems for industrial customers with high demands around the world.
AQ consists of seven business areas which are Electric cabinets, Wiring systems, Precision stamping and Injection molding, Sheet metal processing, System products, Inductive components and Special technologies and Engineering. We take pride in being a reliable supplier by producing products with high quality, delivered on time in a sustainable way. AQ has been an active member of the UN global Compact since 2012.
AQ has set 10 principles and goals for its sustainability work. The principles correspond to the principles set forth by the UN Global Compact framework. In our sustainability report we will present the principles, how they are implemented and a presentation of goals and results.
Principle 1: Support and respect the protection of internationally proclaimed human rights Principle 2: Make sure that we are not complicit in human rights abuses
Source: UN Global Compact
AQ Group's goal is for all our employees and business partners to live up to the Universal Declaration of Human Rights. The goal is to have zero human rights violations reported.
Our core values and code of conduct outlines the way each of us should behave and clarifies our responsibility to report instances of human rights violations. The Code of Conduct is communicated to all employees within the company.
Also, our immediate supply chain should adhere to the same principles. The principles are clearly stated in the AQ Supplier Code of Conduct.
This year AQ Group continued implementation of its core values, which were established in early 2012, across all AQ companies. One of the cornerstones of the core values is "Courage and Respect" including the principles, "Every employee has the same status" and "We treat others as we like to be treated ourselves". A copy of the AQ Core Values booklet has been handed to each employee in their local language. Workshops have taken place to further strengthen the understanding of the core values across the company. This together with the AQ Code of Conduct gives guidance how to act within AQ Group in any given situation.
Suppliers are regularly audited using a standard template which contains a section on human rights and that they are required to adhere to the AQ Group Supplier Code of Conduct. Suppliers who have questionable ethics are not approved as an AQ supplier.
All employees and external stakeholders can report violations directly by sending a message to [email protected] if there are any violations against human rights.
In AQ Group there has been no reported incidents of human rights abuses during the year. If any issues should occur in the future they will be recorded and brought to the attention of group management and the relevant authorities. AQ Group is fully committed to handle any such occurrences objectively and to act quickly. In the last five years we have had zero human rights violation reports in AQ.
In addition to this, AQ is supporting the Hand in Hand foundation in India . We donate money to prospective entrepreneurs in the village to help them to a better life. During 2020 the support have been directed to prevent Covid-19 spread.
Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4: uphold the elimination of all forms of forced and compulsory labor
Principle 5: uphold the effective abolition of child labor
Principle 6: the elimination of discrimination in respect of employment and occupation
Source: UN Global Compact
AQ Group hires and treats its employees in a manner that does not discriminate regarding sex, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation, age, political opinion, social origin, HIV/AIDS status and trade union membership. Diversity in the workplace is encouraged at all levels.
Our Code of Conduct shows clearly employee rights and responsibilities. All employees work here willingly, and no employee is forced to work overtime unless it is ordered legally and according to contract. In AQ Group we have a non discrimination policy that take stand against all kind of discriminations and this is stated clearly in our code of conduct. We uphold the law and our ethical responsibility by only employing people of a legal working age.
The AQ Group goal for Labor Principles is to have an average self-assessment score higher than 3.5 and that no subsidiary should score below 3 in our yearly self-assessment where the lowest score is 1 and highest is 4.
The labor unions in AQ Group are working well. AQ applies collective agreements that are negotiated by the parties and follows laws and regulations in the countries where we operate. With regards to the safety of our employees we evaluate, and audit working conditions and make sure that the correct protective clothing and equipment is used.
We fully commit to providing a safe working environment. New employees receive relevant orientation training to carry out their tasks safely and existing employees receive continuous training at various intervals based on their need to be able to perform their respective tasks.
We have during the year increased our focus on health and safety. This is something that helps us becoming a more attractive employer as well as creates a better functioning business. Special focus has been put on working with identifying risks and leadership to getting more people involved with safety related work.
AQ Group Board of Directors consists of five men and two women. In the AQ Group management team four are women and eight are men (including the CEO). Within the entire AQ Group, we have an even gender distribution with 45% women and 55% men.
AQ has since 2015 implemented a company self-assessment that is done by the management of every subsidiary within the group. This gives the group management a good understanding of how well the principles in UN Global Compact are adhered to. The results from the survey 2020 show high scores on average. An action plan is made to strengthen the subsidiaries where the score is considered low.
In 2020 the score for Labor principles was on average 3,83 on a scale from 1 to 4 where 4 is highest. No subsidiary within the group has scored lower than 3.
AQ Group's subsidiaries are continuously being audited by our customers. During 2020 we have passed audits from but not limited to Volvo, Scania, ABB, Siemens, Bosch, Alstom, GE, Ericsson, Bombardier and Tetra Pak. These companies focus strongly on corporate social responsibility which helps us to comply with Labor Principles.
As a result of improved work environment, the number of accidents that led to sick leave has decreased by 40% between 2019 and 2020.
Principle 7: Support a precautionary approach to environmental challenges Principle 8: undertake initiatives to promote greater environmental responsibility Principle 9: encourage the development of environmentally friendly technologies
Source: UN Global Compact
In our environmental policy on our website, we explain AQ's view on how we will improve the environment. "Our business and processes are designed in such a way that energy and resources are used efficiently, and waste and rest products are minimized over the life cycle of our products"." We shall follow rules and legislation and constantly work on improvements to reduce or prevent our environmental impact, from design to delivery. A key environmental goal for AQ is that all production sites shall be ISO 14001 certified and have a higher environmental result than 3 on our annual self-assessment.
During 2020 it has been clear both within the Group, from shareholders and from other stakeholders that we need to do more to reduce carbon dioxide emission. Within the Group we have chosen to act through our environmental management system. During 2020 we have implemented ISO 14001 certificates in all our production units. We will also make sure that we have concrete goals and actions to reduce carbon dioxide emissions in all companies.
Environmental concerns and improvements are part of our daily work and continuously discussed during regular follow-up meetings in our subsidiaries. We conduct risk analysis when necessary and work according to our management systems. We work according to the precautionary principle by avoiding materials and methods related to possible environmental- and health risks when other alternatives are available.
We also share best practices between our sites through our CEO´s weekly newsletter. One example of this is the widespread implementation of LED lighting in most of the AQ production units and offices to reduce electricity consumption. Another example is the use of heat exchangers in our plants to reuse excess heat from production processes.
A major environmental impact is the truck transports that takes place between our suppliers, our factories and our customers. Here we work to reduce our truck transports through more efficient transport solutions. We offer production in many countries close to customers and suppliers. We also participate as a supplier in the transportation industry's transition to new fuels and technologies.
Prior to 2021 we have performed follow-up meetings with all our operational companies and reviewed the work with the environment management system, performance during 2020 and goals for 2021. Of the Groups 40 production units all have a certified ISO 14001 management system, and we have ensured that each company has at least one goal in its management system to reduce carbon dioxide emission.
All units are securing that national environmental laws are followed. This is secured on group management level through the AQ Group Self-assessment procedure. The environmental score for 2020 was 3.84 where 4 is highest.
Some of the concrete actions that have been done in the past years to improve the environment:
Principle 10: Work against corruption in all its forms, including extortion and bribery
Source: UN Global Compact
AQ Group puts great emphasis on building trust and longlasting relations with our employees, customers and suppliers. It lies in our business ethics to always follow laws and regulations as a minimum requirement in all countries we operate.
We do not, under any circumstances, accept bribery, extortion or any other kind of corrupt activities. It is stated in our code of conduct that we shall always conduct good business ethics and that we do not offer rewards or benefits, which conflict with laws or regulations, to customers, suppliers or authority representatives.
Every employee that is involved in business transactions receive training on our code of conduct and our supplier code of conduct which clearly indicates our stance on corruption: "If an employee is offered a gift, a bribe, an illegitimate commission, or any other form of personal payment, it must not be accepted."
A preliminary evaluation of the risk of corruption has been made. The biggest risks come in the form of gifts and bribes from suppliers. Therefore, we have made this clear to our suppliers that it is strictly forbidden to give personal gifts to our employees.
The AQ Goal for anti-corruption is to have zero reported corruption cases. We also stimulate a culture where you should raise your hand and advice your manager and colleagues if you are not sure what to do. This way we can advise and support the right behavior according to our Code of Conduct.
It is all managers' responsibility to inform employees about our anti-corruption policy and code of conduct. All managers shall furthermore encourage employees to report on indications of any type of violation regarding these policies. Such reports can be done anonymously to the [email protected] in accordance with our Whistleblower Policy.
To prevent the identified risks, we commit to several actions:
All suppliers shall read and commit to AQ Supplier Code of Conduct.
Periodic market research of prices of key materials to be compared against existing purchasing prices
We make it clear to our employees and supply chain partners that we will not accept corrupt behavior. If it were to happen in AQ Group, the relevant disciplinary and/or legal actions would be taken against the guilty parties.
Audits from senior management take place at various intervals to check that standard procedures are being followed. And to cement these principles the management of each subsidiary need to commit to our principles in our yearly self-assessment. The score from the 2020 self-assessment was 3.94 on a 4-grade scale.
AQ has a global whistleblower policy where internal and external stakeholders can report violations.
In 2020 we have received two reported cases. The AQ group management team has analyzed them and taken actions in line with the process.
AQ Group has a process where the group and each subsidiary of the group makes an annual self-assessment. This is the foundation for our sustainability risk assessment. AQ Group has below identified the risks that could cause a probable negative effect on the sustainability of the company.
There is a potential risk that violations of our principles may occur if AQ does not ensure that every employee understands and follows our Code of Conduct. In Sweden, acceptance of the Code of Conduct and AQ's Core Values are part of the employment contract.
AQ is doing its upmost to control that the full AQ supply chain respects and follows the rules set forth in the AQ Group Supplier Code of Conduct. We perform regular supplier audits and every supplier need to respect our code of conduct. It is a risk that our suppliers willfully or by lack of knowledge break our rules. AQ is committed to mitigate this risk by constant monitoring of the supply chain.
AQ has several surface treatment facilities with notifiable operations. An accident at a surface treatment facility can affect the environment. Furthermore, there is a risk that current and previous activities may have resulted in contamination of land where the activities have taken place from time to time. AQ Group is constantly monitoring the impact its operations have on the environment through the ISO 14001 management system approved productions sites. This mitigates most of the risks for that our operations may harm the environment.
There is more information on AQ's website for how AQ works with sustainability:
AQ's Core Values, Code of Conduct and Supplier Code of Conduct:
AQ's sustainability guideline:
https://www.aqg.se/en/aq-group/sustainability AQ's Policies:
AQ Whistleblower
Please contact us at [email protected] if you would like to report a violation of the AQ Code of Conduct or national laws and legislation. Your identity will be protected.
To the general meeting of the shareholders in AQ Group AB (publ), corporate identity number 556281-8830
It is the board of directors who is responsible for the sustainability report for the year 2020 on pages 22-26 and that it is prepared in accordance with the Annual Accounts Act. Det är styrelsen som har ansvaret för bolagsstyrningsrapporten för år 2016 på sidorna 28-31 och för att den är upprättad i enlighet med årsredovisningslagen.
Our examination has been conducted in accordance with FAR's auditing standard RevR 12 The auditor's opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is different and substantially less in scope than an audit conducted with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion. Vår granskning har skett enligt FARs uttalande RevU 16 Revisorns granskning av bolagsstyrningsrapporten. Detta innebär att vår granskning av bolagsstyrningsrapporten har en annan inriktning och en väsentligt mindre omfattning jämfört med den inriktning och omfattning som en revision enligt International Standards on Auditing och god revisionssed i Sverige har. Vi anser att denna granskning ger oss tillräcklig grund för våra uttalanden. Uttalande
A statutory sustainability report has been prepared årsredovisningslagen samt 7 kap. 31 § andra stycket samma lag är förenliga med årsredovisningen och koncernredovisningen samt är i överensstämmelse med årsredovisningslagen.
Västerås March 26, 2021 Västerås den 5 april 2017
KPMG AB
Helena Arvidsson Älgne Authorized Public Accountant KPMG AB
The designated company name is AQ Group AB (publ) and the share's short name is AQ. The company's Swedish corporate identity number is 556281-8830.
The company began operations on October 1, 1994 in Västerås, where it is also currently based. AQ Group's shares are since January 16, 2017 listed on NASDAQ OMX Nordic Exchange MidCap.
The shares entitle, at the shareholders' meeting, one vote each and the shares are freely transferable. Each share carry equal rights to dividends.
The quotient value is SEK 2 per share.
Share name: AQ Group / Short name: AQ / ISIN-kod: SE0000772956
Share capital per December 31, 2020 was SEK 36,588,116 distributed over 18,294,058 shares. There is only one type of shares and entitle shareholders to one vote. AQ Group holds no treasury shares.
There are no convertible bonds or option programs in AQ Group.
Per December 30, 2020 the number of shareholders in AQ Group was 5,444 (4,943). See table below:
| Number of shares |
Total amount of shares |
Percentage of equity (%) |
Number of shareholders |
Market value (TSEK) |
|---|---|---|---|---|
| 1-500 | 442,073 | 2.42 | 4,744 | 94,604 |
| 501-1,000 | 237,639 | 1.30 | 302 | 50,855 |
| 1,001-5,000 | 603,304 | 3.30 | 278 | 129,107 |
| 5,001-10,000 | 342,400 | 1.87 | 44 | 73,274 |
| 10,001-15,000 | 254,423 | 1.39 | 20 | 54,447 |
| 15,001-20,000 | 171,818 | 0.94 | 10 | 36,769 |
| 20,001- | 16,242,401 | 88.79 | 46 | 3,475,874 |
| Total | 18,294,058 | 100.00 | 5,444 | 3,914,928 |
Source: Euroclear
On the first trading day of the year, January 2, 2020, the closing price was SEK 235 per share and on the last trading day, December 30, 2020, it was SEK 214 per share, a decrease of 9 percent. The price was highest on January 2 at SEK 235 per share. The share development is shown in a diagram on page 29.
The share price can be monitored daily on the company's website at: https://www.aqg. se/en/investor/aq-shares.
Earnings per share after taxes and after dilution amounted to SEK 17.24 (14.37). AQ's dividend policy is to distribute approximately 25% of the average earnings over a business cycle. The company's financial consolidation needs must always be considered.
Management participate in meetings with analysts, investors, other shareholders and media. This is important in order to increase the interest for the share and to give both current and new shareholders good opportunities to value AQ as fair as possible. Press releases are published immediately after an important event for the business has occurred. These are also archived on the web page. Interim reports are also published as press releases and are archived on the web page. Year-end reports are published on the web page and are together with other financial data archived since 2006. On the web page there is also information about the share.
The Annual General Meeting (AGM) of 2020 authorised the board to, on one or more occasions until the next AGM, with or without deviation from the shareholders' preferential rights, decide to increase the company's share capital through the new issue of up to 1,500,000 new shares. This authorisation shall include the right to decide upon an issue with cash payment or payment in kind. The purpose of the authorisation and the reason that the deviation from shareholders' preferential rights can take place is to enable financing of acquisitions. The authorisation has not been utilized during the year.
The table below shows the 10 largest shareholders per December 30, 2020. The two main shareholders are Claes Mellgren 24.89 (24.89) percent och Per-Olof Andersson 24.51 (24.51) percent.
Other large shareholders are Verdipapirfonde Odin 9.40 (9.28) procent, Brown Brothers Harriman & Co. W9 9.29 (9.24) percent and Nordea Investment Funds 5.27 (6.77) percent.
Total number of shareholders per December 31, 2020 was 5,444 compared to previous year 4,943. This correpsonds to an increase in the number of shareholders with 10 percent.
| Owner | Number of shares | Number of shares (%) | Market value (SEK thousands) |
|---|---|---|---|
| Claes Mellgren with family | 4,553,095 | 24.89 | 974,362 |
| Per Olof Andersson | 4,483,975 | 24.51 | 959,571 |
| Verdipapirfonde Odin Sverige | 1,720,314 | 9.40 | 368,147 |
| Brown Brothers Harriman @ Co., W9 | 1,699,937 | 9.29 | 363,787 |
| Nordea Investment Funds | 963,693 | 5.27 | 206,230 |
| AVANZA Pension | 323,869 | 1.77 | 69,308 |
| Nordea Småbolagsfonden Sverige | 294,788 | 1.61 | 63,085 |
| Nordnet Pensionsförsäkring AB | 288,425 | 1.58 | 61,723 |
| Grenspecialisten Förvaltning AB | 281,022 | 1.54 | 60,139 |
| Carnegie fonder | 140,000 | 0.77 | 29,960 |
| Total of the 10 largest | 14,749,118 | 80.62 | 3,156,311 |
| Total Other | 3,544,940 | 19.38 | 758,617 |
| TOTAL SUM | 18,294,058 | 100.00 | 3,914,928 Source:Euroclear |
| Source: Euroclear |
| The share capital and its development, AQ Group AB | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amended share | ||||||||
| Year | Event | Shares | Sum Shares | capital | Total share capital | |||
| 1994 | AQ starts operations Fund and share issue |
4,500 | 5,000 | 450,000 | 500,000 | |||
| 1998 | Bonus issue | 20,000 | 25,000 | 2,000,000 | 2,500,000 | |||
| 1999 | Non-cash issue | 290 | 25,290 | 29,000 | 2,529,000 | |||
| 2000 | Non-cash issue | 360 | 25,650 | 36,000 | 2,565,000 | |||
| 2000 | Non-cash issue | 460 | 26,110 | 46,000 | 2,611,000 | |||
| 2000 | Bonus issue | 26,110 | 52,220 | 2,611,000 | 5,222,000 | |||
| 2000 | Split 10:1 | 469,980 | 522,200 | - | 5,222,000 | |||
| 2001 | New issue | 50,000 | 572,200 | 500,000 | 5,722,000 | |||
| 2002 | Non-cash issue | 6,000 | 578,200 | 60,000 | 5,782,000 | |||
| 2002 | Split 5:1 | 2,312,800 | 2,891,000 | - | 5,782,000 | |||
| 2004 | Bonus issue | 2,891,000 | 5,782,000 | 5,782,000 | 11,564,000 | |||
| 2006 | Non-cash issue | 57,000 | 5,839,000 | 114,000 | 11,678,000 | |||
| 2006 | Bonus issue | 11,678,000 | 17,517,000 | 23,356,000 | 35,034,000 | |||
| 2007 | Non-cash issue | 332,058 | 17,849,058 | 664,116 | 35,698,116 | |||
| 2010 | Non-cash issue | 110,000 | 17,959,058 | 220,000 | 35,918,116 | |||
| 2012 | Non-cash issue | 35,000 | 17,994,058 | 70,000 | 35,988,116 | |||
| 2013 | Non-cash issue | 40,000 | 18,034,058 | 80,000 | 36,068,116 | |||
| 2016 | Non-cash | 260,000 | 18,294,058 | 520,000 | 36,588,116 | |||
| Sum Shares: 18,294,058 | Sum Share capital: 36,588,116 |
Source:Euroclear
AQ Group is a Swedish public company listed on Nasdaq Stockholm's main market since January 16, 2017.
Corporate governance in AQ Group AB (publ) means to ensure that the company is managed on behalf of its shareholders as efficiently as possible, through a combination of written rules and practices. AQ Group follows the "Swedish Corporate Governance Code" that applies to Swedish companies whose shares are traded on a regulated market (Nasdaq Stockholm's main market).
AQ Group had at year-end 5,444 (4,943) shareholders. Information on share performance, ownership, dividends and more can be found under shares, share capital and ownership.
AQ Group primarily applies the Swedish Companies Act and the rules that apply due to the share being listed. AQ's articles of association contain no restrictions on how many votes a shareholder may cast at the Annual General Meeting regarding the appointment of Board members and amending the Articles of Association.
Notice of a general meeting is issued no earlier than six and no later than four weeks before the meeting. The notice contains information about registration and the right to participate in and vote at the meeting, as well as numbered agenda with the matters to be considered. Registration for the meeting is made in writing to the Company's address, or via e-mail. Proposals for the meeting should be addressed to the Board, with the address of its registered office, and submitted in good time before the notice is issued. The notice and agenda are also published on the website. Shareholders or representatives may vote for the full number of owned or represented shares.
The AGM shall be held within six months of the fiscal year's end. At the AGM, among other things decisions are made regarding the approval of the balance sheet and income statement, discharge from liability for the Board and CEO and the appropriation of retained earnings.
AQ Group's Annual General Meeting on June 25, 2020 was attended by 8 shareholders and representatives amounting to 59.75% of the total number of shares and votes in the Company. At the AGM, the CEO, parts of the Group Management Team and members of the Board were present. Representation were lower than in previous years due to Covid-19 restrictions. During the meeting, shareholders were given the opportunity to ask questions which were also answered during the meeting. In addition to the above menioned decisions, the AGM decided on remuneration to the Board of SEK 1,910 thousands in total. The Meeting resolved to approve the Board's proposal for remuneration to senior executives. The meeting authorised the Board to, until the Annual General Meeting for fiscal year 2020, on one or several occasions, with or without preferential rights for shareholders, to decide on a share issue of a maximum of 1,500,000 shares via allocation or by cash.
AQ Group has not had an extraordinary general meeting for the fiscal year in 2020.
The Nomination Committee represents the shareholders and shall consist of one member appointed by each of the four largest shareholders.
These four shall be members of the Nomination Committee for the AGM in 2021.
If any of the four largest shareholders waive their right to appoint a member to the nomination committee, the next shareholder in size shall be given the opportunity to appoint a member. In the event of a signifi cant change in the ownership structure after the Nomination Committee's constitution, the composition of the nomination committee must also be changed accordingly.
The nomination committee's task is to, before the AGM, submit proposals with respect to the number of board members which are to be elected by the Annual General Meeting, the Board's fees, the Board's composition, the Chairman, the Chairman of the Annual General Meeting and the selection of auditors and auditor fees. The nomination committee's term of office extends until a new committee is appointed. No fees shall be paid to the committee members.
The nomination committee consists of four members, of which two are not connected to the Company's Board of Directors. Furthermore, at least one must be independent of the Company.
The nomination commmitte consist of Chairman Per-Olof Andersson via own mandate. Hans Christian Bratterud, ODIN Fonder, Björn Henriksson elected from Nordea Fonder, and Claes Mellgren via own mandate until the AG Meeting for 2021.
The Nomination Committee shall submit proposals for the election of Chairman and other Board members and the fees awarded to the Chairman and the other members.
As a basis for its proposals, the Nomination Committee shall;
Upon publication of the Nomination Committee's proposals, information shall include age, other significant assignments, own share holdings and those of close relations, independent executives/shareholders in managing roles, number of years on the Board (upon re-election), and other items considered essential for assessing competence and independence.
At the AGM, the Nomination Committee shall submit a report on how the work was done, and present and motivate proposals. If no renewal is proposed, a special justification shall be provided.
The Board shall have, with regard to the company's business, development stage and other conditions, an appropriate composition, characterized by versatility and breadth regarding the competence, experience and background of the members elected by the Annual General Meeting. An even gender distribution should be strived for.
At the AGM, P-O Andersson, Ulf Gundemark, Gunilla Spongh, Lars Wrebo, Annika Johansson-Rosengren and Claes Mellgren were elected board members. Patrik Nolåker was elected Chairman of the Board.
The Board shall for its owners:
The Board's overall task is to manage the Company's affairs in such a way that the interests of the shareholders for good and longterm capital returns are realised in the best possible way.
The Board shall, according to the articles of association, consist of at least three and no more than seven members. The members are selected annually for the period until the next AGM. The majority of the members shall be independent of the Company and its management. The Board shall have the size and composition which is required in terms of competence and experience for the Company's business and development, as well as the independence required so that the Board can independently and effectively manage the Company's affairs.
In 2020, six scheduled meetings were held, one statutory meeting, four teleconferences and eight per capsulam meetings. Before Board meetings, Board members were provided with written information on the issues to be discussed at the meeting. The Board has, in 2020, devoted particular attention to activities related to Covid-19 and acquisition candidates.
Board's attendance in 2020:
| Patrik Nolåker | 19 of (19) possible |
|---|---|
| P-O Andersson | 18 of (19) possible |
| Ulf Gundemark | 19 of (19) possible |
| Gunilla Spongh | 19 of (19) possible |
| Lars Wrebo | 19 of (19) possible |
| Annika Johansson-Rosengren | 19 of (19) possible |
| Claes Mellgren | 19 of (19) possible |
The Remuneration Committee is composed of Patrik Nolåker (Chairman) and P-O Andersson.
The Remuneration Committee prepares the Board's proposal for guidelines for remuneration and other terms of employment for senior executives. The proposal is considered by the Board and submitted to the AGM for resolution. The Remuneration Committee also has the task of dealing with and preparing remuneration issues for the company management, which the Board then decides.
The Remuneration Committee prepares proposals for the CEO's terms of employment. The CEO consults with the Remuneration Committee on the terms of employment of other members of company management. The Remuneration Committee shall also monitor and evaluate current remuneration structures and remuneration levels in the Company and ensure that the Company's auditor submits a written opinion to the Board no later than three weeks before the Annual General Meeting on whether the guidelines for remuneration to senior executives that have been in force since the previous Annual General Meeting have been followed. In 2020, the Remuneration Committee held two minuted meetings.
The Audit Committe comprises of Gunilla Spongh (chairman), Claes Mellgren and Ulf Gundemark.
The Audit Committee has a monitoring role of the Company's financial reporting. The Audit Committee monitors the effectiveness of the Company's internal controls and risk management with respect to financial reporting. The Audit Committee's duties include keeping regular contact with the Company's auditors to ensure that the Company's internal and external accounting satisfies requirements made on market-listed companies and to discuss the scope and focus of auditing work, evaluate the completed audit activities and notify the Company's Board of Directors regarding the results of the audit and the results of the evaluation. The Audit Committee also assists the Nomination Committee in establishing proposals for auditors and fees for audit work. The Audit Committee, in 2020, held seven meetings where minutes were taken.
In addition to laws and regulations, the
Board's work is governed by the annual set work plan. The work plan contains guidelines for the work of the Board, instructions for the CEO and financial reporting.
The rules of procedure include:
The rules of procedure further describe how the minutes shall be prepared and distributed to members and how the Board will be informed upon, for example, press releases. The rules of procedure also include guidelines for the decisions the Board may delegate to the CEO and senior management.
External auditors are appointed by the AGM. The auditors' task is to, on behalf of shareholders, review the Company's annual report and accounting and the management of the Board of Director's and the CEO. The internal financial statements prepared on a monthly basis have also been submitted to the auditors.
The entire Board is involved in the internal control of the financial statements and is jointly responsible for other internal controls.The Company regularly informs how the Board's issued guidelines have been implemented in the business and how the internal control is designed. The auditors provide ongoing feedback and suggestions for improvements to the Company regarding the same.
The Board is responsible for the work with corporate governance and internal controls. The overall aim is to protect the company's assets and shareholders' investments. The Board is responsible for ensuring that financial statements are prepared in accordance with applicable law. Quality assurance of AQ's financial reporting is done by the Board dealing with accounting issues and the financial reports which the Company submits.
AQ Group's Board has therefore striven to provide effective and regular financial reporting. The Board's reporting instructions to the CEO regarding financial reporting include internal controls. In each subsidiary, there is an internal division of roles and responsibilities aimed at realising good internal controls of financial reporting. AQ's accounting departments of each subsidiary informs regularly management of the economic development of their respective companies. The Board is committed to realising that all financial managers have strong integrity, embrace good ethics and have high Read more about AQ's corporate governance on our website under investor / corporate governance.
expertise within respective areas of responsibility. AQ continuously works with the development of appropriate systems for administrative management. AQ has also developed an operations manual that describes the organisation, responsibilities, powers, policies, financial controls and more.
On a monthly basis, AQ establishes the appropriate reports with analysis and comments, which are reported for both group and individual subsidiaries. This gives the Board an excellent tool to monitor and control the ongoing development in AQ. Financial reports from management is a recurring item taken up at all Board meetings.
AQ's risk management is governed by a policy established by the management team, with the CFO responsible for compliance and reporting within the Group.
AQ's financial reporting complies with the laws and regulations applicable in Sweden and the local rules in each country where it operates. Besides external rules and recommendations, there are internal instructions and directions.
AQ Group's information to shareholders and other stakeholders through the Annual Report and interim reports are provided on the Company's website (www.aqg.se). There are also press releases and presentation materials relating to recent years. Information released by the Company follows the Board's established information and insider policy.
In addition to internal monitoring and reporting, AQ's external auditors report during the year to the CEO and Board. This gathered information mentioned in this report gives the board a good idea and a reliable basis regarding financial reporting in the annual report.
The Board has delegated operational responsibility for the Company and the Group to the CEO. An instruction concerning the division of duties between the Board and the CEO are decided annually by the Board. AQ's senior management consists of the management team which, during 2020 consisted of Anders Carlsson - CEO, Mia Tomczak - Finance (until April 30, 2020), Christina Hegg - Finance (from. April 1, 2020), Erik Mattsson - Purchasing, Paulina Duszel - Marketing and sales, Per Lindblad - Business development and IT, Katharina Frisk - HR. (until November 14, 2020) and Jenny Eivhammar (from. December 15, 2020), Åsa Lostorp - System products, Nerijus Olsauskas - Wiring Systems, Ola Olsson - Electric Cabinets, Niklas Ericsson - Inductive Components, Ragnar Koppel - Sheet Metal Processing and Per Wedel - Injection Molding. Remuneration for MDs of subsidiaries is decided by the Group CEO according to the principles established by the remuneration committee in the parent company. AQ has no incentives in the form of options or other share programmes for senior executives or other persons within or outside the Company.
During 2020, SEK 200 thousands (200) in Board remuneration was paid to Board members Per-Olof Andersson, Gunilla Spongh, Ulf Gundemark, Lars Wrebo, Annika Johansson-Rosengren and Claes Mellgren. The Chairman, Patrik Nolåker, was paid SEK 450 thousands (450).
Chairman of the Audit Committee, Gunilla Spongh has received SEK 100 thousands (100) and other members of the Audit Committee, Ulf Gundemark and Claes Mellgren have each received SEK 40 thousands (40). Chairman of the Remuneration Committee, Patrik Nolåker, has received SEK 50 thousands (50) and the other member of the Remuneration Committee, P-O Andersson, has received SEK 30 thousands (30). In addition to the above, no special remuneration or benefits were received by the Board. No benefits are payable to Board members after serving on the Board.
Salary and other remuneration to CEO Anders Carlsson for 2020 amounted to SEK 4,135 thousands (3,490). The CEO is entitled to a monthly pension provision equal to 35% of base salary. Pension costs in 2020 for Anders Carlsson amounted to SEK 785 thousands (722).
Guidelines for remuneration to senior executives is decided by the AGM. The decision means that AQ Group shall maintain remuneration levels and other employment conditions needed to ensure the company's access to executives with the competence and capacities to achieve set goals. The starting point for salary and other remuneration to senior executives of AQ Group AB is that they shall be at market level. The CEO's notice period is six months to the Group, and the Group's notice period is 12 months to the CEO. Salaries and other remuneration to other senior executives excluding the CEO in 2020 amounted to SEK 16,724 thousands (9,020). Pension costs in 2020 amounted to SEK 3,070 thousands excluding the CEO (2,140). Senior executives normally have six months' notice, regardless of whether the employee or the Company terminates the agreement. No compensation is paid after termination of employment.
The company's auditor is continuously informed about the Company's operations and include regular meetings with company management, Board material and minutes of meetings. The auditor provides ongoing feedback and recommendations to the Board and management based on observations made during the audit.
Since the 2014 AGM, the auditing company is KPMG AB auditors with authorised accountant Helena Arvidsson Älgne as Chief Auditor. Helena was born in 1962 and is a member of FAR, and has been an authorised accountant since 1997. KPMG's address:
KPMG AB, Box 382, 101 27 Stockholm, Sweden.
According to decisions at the Annual General Meeting, AQ's auditors receive compensation in accordance with the auditing assignment.
Västerås, Sweden on March 26, 2021
AQ Group AB (publ) Board of Directors
AQ's sustainability report for 2020 is described in more detail on pages 21-26 of this annual report.
Auditor's report on the corporate governance statement
To the general meeting of the shareholders in AQ Group AB (publ), corporate identity number 556281-8830
Till bolagsstämman i AQ Group AB (publ), org. nr 556281-8830 Uppdrag och ansvarsfördelning It is the board of directors who is responsible for the corporate governance statement for the year 2020 on pages 30 - 33 and that it has been prepared in accordance with the Annual Accounts Act.
Granskningens inriktning och omfattning Vår granskning har skett enligt FARs uttalande RevU 16 Revisorns granskning av bolagsstyrningsrapporten. Detta innebär att vår granskning av bolagsstyrningsrapporten har en annan inriktning och en väsentligt mindre omfattning jämfört med den inriktning och omfattning som en revision enligt International Standards on Auditing och god revisionssed i Sverige har. Vi anser att denna granskning ger oss tillräcklig grund för våra uttalanden. Uttalande En bolagsstyrningsrapport har upprättats. Upplysningar i enlighet med 6 kap. 6 § andra stycket punkterna 2-6 Our examination has been conducted in accordance with FAR's auditing standard RevU 16 The auditor's examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions.
Det är styrelsen som har ansvaret för bolagsstyrningsrapporten för år 2016 på sidorna 28-31 och för att den är A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the annual accounts and the consolidated accounts and are in accordance with the Annual Accounts Act.
Västerås den 26 March 2021 KPMG AB
Helena Arvidsson Älgne Authorized Public Accountant
PATRIK NOLÅKER (1963) Chairman of the Board
Education and experience M.Sc. Economics and MBA. Patrikhas a broad international experience. He has previously been CEO of Dywidag-Systems International, CEO of Alimak Hek Group, President Atlas Copco-Underground Rock Excavation Division, President Atlas Copco-Geotechnical Drilling and Exploration Division samt and leading positions within ABB in Sweden and abroad.
Chairman of Saferoad Group AS, Fibo Group AS and ViaCon Holding AB and board member of Systemair AB, iMPREG and Palmarosia AB. Holdings in AQ 7,000 shares
ULF GUNDEMARK (1951) Board member
M.Sc. in Engineering. Has international experience and worked as manager of Elektroskandia/ Hagemeyer Nordics, IBM Utilities and various positions within ABB. Has been Chairman of Nordic Waterproofing Group AB and Lindab International, and also board member of Swedish Stirling (publ), Opti Group AB, Scandi Standard AB, Solar Group AS and Lantmännen Ekonomisk Förening.
CLAES MELLGREN (1959) Board member
Dependent to the Company and its management since he has been employed by the company during the past three years. Dependent to major shareholders of the Company
MSc. Engineering and has previously been production, logistics and site manager at different ABB units in Västerås. Claes has been a Board member in AQ Group AB until 2015 and CEO from October 2010 to August 2018.
Founder of AQ
Ongoing assignments Board member of AQ subsidiaries, Note AB and Automation Region.
Holdings in AQ 4,553,095 shares
P-O ANDERSSON (1955) Board member
Chairman of the Board 2009-2018. Independent of the Company and the Company's management, not independent of major shareholders.
Education and experience Tool expert.
Founder of AQ.
Ongoing assignments
Board member of AQ subsidiaries and Trifilon.
Holdings in AQ 4,483,975 shares
GUNILLA SPONGH (1966) Board member
Elected 2014, independent*.
Education and experience Master of Industrial Economics. Former CFO Preem, chief international affairs and CFO Mekonomen, CFO CashGuard, CFO Enea, and senior positions within Fresenius Kabi and Electrolux.
Ongoing assignments Board member of Byggmax (publ), Lernia, Pierce Group, Swedish Stirling (publ), Momentum Group (publ), Consivo Group, Systemair (publ) and G Spongh Förvaltnings AB.
Holdings in AQ 100 shares
LARS WREBO (1961) Board member
Elected 2017, independent*.
Education and experience M.Sc. Engineering. Broad
international experience from the automotive industry. As part of the Group Management in Volvo Cars, responsible for purchasing and manufacturing, and for production and logistics within MAN Truck & Bus. He has also had a number of senior positions within Scania.
Ongoing assignments Board member of LEAX Group and Ålö AB.
Holdings in AQ 4,000 shares
ANNIKA JOHANSSON-ROSENGREN (1969) Board member
Elected 2018, independent*.
Economy and Social science background. Annika has worked in leading positions in Human Resources for more than 20 years. She has been HR manager at Valeo, HR Director at ASSA ABLOY and works today as HR Director at Bombardier Transportation, where she has the HR responsibility for 19 countries.
Holdings in AQ 300 shares
* Independent in relation to both the Company and the Company's management as well as to the Company's major shareholders.
Information regarding own and related parties' shareholdings refers to the situation as per December 31, 2020.
ANDERS CARLSSON (1967) CEO and Investor relations
M.Sc. Engineering Employed since 2018 Holdings in AQ: 18,000 shares
ERIK MATTSSON (1975) Purchasing Manager
B.Sc. Engineering Employed since 2014 Holdings in AQ: 0 shares
CHRISTINA HEGG (1970) CFO
M.Sc. Economics Employed sicnce April 1, 2020 Holdings in AQ: 0 shares
PAULINA DUSZEL (1981) Marketing and Sales Manager
MBA Employed since 2010 Holdings in AQ: 0 shares
PER LINDBLAD (1959) Manager Business Development and IT
M.Sc. Engineering Employed since 2008 Holdings in AQ: 2,020 shares
ÅSA LOSTORP (1964) BA Manager System Products
M.Sc Engineering and MBA Employed since 2014 Holdings in AQ: 252 shares
JENNY EIVHAMMAR (1974) HR Manager
Bsc. Human Resources Bsc. Media and Communication Employed since December 15, 2020 Holdings in AQ: 0 shares
PER WEDEL (1960) BA Manager Precision Stamping and Injection Molding
Techn. Lic., Chalmers Institute of Technology Employed since 2017 Holdings in AQ: 766 shares
NIKLAS ERICSSON (1972) BA Manager Inductive Components
Eng. degree in Power Electronics Employed since 1994 Holdings in AQ: 7,700 shares
NERIJUS OLSAUSKAS (1978) BA Manager Wiring Systems
Business Administration,Kaunas technical university Employed since 2012 Holdings in AQ: 0 shares
OLA OLSSON (1967) BA Manager Electric Cabinets
MBA Employed since 2011 Holdings in AQ: 540 shares
RAGNAR KOPPEL (1982) BA Manager Sheet Metal Processing
M.Sc Woodworking technology Employed since 2009 Holdings in AQ: 908 shares
Information regarding own and related parties' shareholdings refer to the situation as per December 31, 2020.
Chief auditor is Helena Arvidsson Älgne, born 1962. Chief auditor of AQ Group since the AGM in 2014. Helena is an authorized public accountant and member of FAR. Other audit assignments that Helena has include FM Mattsson Mora Group AB (publ), Assemblin, Momentum AB and Knowit (publ).
2020
The Board of Directors and the CEO of AQ Group AB (publ), corporate identity number 556281-8830, hereby submit annual accounts and consolidated accounts for the 2020 financial year.
The Group operates in two segments; Component , which produces transformers, wiring systems, mechanical parts, sheet metal processing and plastic injectionmolding, and System which produces systems, automation and power solutions, as well as complete machines in close cooperation with customers.
Net sales for the full year was SEK 4,819 million (5,113), a decrease of SEK 294 million compared to the previous year. The decrease in net sales can mainly be explained by the large negative impact from the Covid-19 pandemic in the second quarter.
For the full year, total growth was -5.7% (9.5), of which organic growth was -8.6% (-1.2), growth through acquisitions 4.6% (8.6) and a currency effect of -1.8% (2.1). The currency effect of -1.8% corresponds to approximately SEK -91 million and mainly relates to the currencies PLN, HUF and EUR.
Operating profit (EBIT) for the full year was SEK 401 million (340), an increase of SEK 61 million. Operating profit has increased despite reduced net sales thanks to rapid restructuring work and extensive cost control.
Goodwill and other intangible assets decreased during the year by SEK 62 million compared with the beginning of the year. The net change is due to currency translation effects and yearly depreciation of technology and customer relations.
The Group's investments in tangible fixed assets for the year amounted to SEK 114 million (199), the majority of which relates to the construction of a new factory in Canada and capacity investments and improvement projects for a more efficient production. In total, tangible fixed assets amounted to SEK 913 million (1,012), of which SEK 265 million (305) consists of the book value of rights of use in accordance with IFRS 16.
The Group's interest-bearing liabilities amount to SEK 797 million (916) and cash and cash equivalents to SEK 452 million (161), which means that the Group has a net debt of SEK 345 million (755). The Group's interest-bearing liabilities without regard to leasing liabilities amounted to SEK 531 million (613).
Cash flow from operating activities amounted to SEK 609 million (499), an improvement of SEK 110 million, which mainly comes from positive earnings development in combination with increased efficiency in working capital utilization.
Cash flow from investing activities amounted to SEK -137 million (-481), which mainly relates to investments in fixed assets and earnout for acquisitions.
Cash flow from financing activities amounted to SEK -169 million (42) and relates to reduced utilization of overdraft facilities, amortization of loans and payment of leasing debts.
At the end of the period, equity amounted to SEK 2,191 million (2,015) in the Group.
Development for each segment, see Note 6.
On March 27, AQ Group announced that the AGM will be moved forward. The spread of the Covid-19 pandemic in the world meant that our three units in China were closed for another 1-3 weeks in addition to the Chinese New Year. In addition, states in Canada and USA, India and Italy closed their communities at the end of March. The European automotive industry closed its production at the same time.
The first quarter was negatively affected by SEK 25 million lower net sales and SEK 5 million lower operating profit.
On April 1, Christina Hegg was appointed as new CFO. On April 22, AQ Group's Board of Directors decided to withdraw the previous dividend proposal and instead propose that the Annual General Meeting on June 25 decides that no dividend should be paid for 2019. On June 25, the Annual General Meeting decided in accordance with the Board's proposal.
The Covid-19 pandemic struck with great force and affected the second quarter with SEK 229 million lower net sales. To counteract the uncertainty in the outside world and with our customers, we continued the cost-saving programs we introduced at the end of last year and also postponed some investments. We also received SEK 35 million in subsidies and similar support measures from the authorities in different countries during the quarter.
On August 24, it was announced that the subsidiary AQ Components Västerås AB will begin union negotiations to close the business in Smedjebacken and move it to Estonia. We also closed a smaller unit in Serbia and moved this production to AQ in Bulgaria during the quarter. During the quarter, SEK 13 million was received in subsidies and similar support measures from the authorities of different countries because of the impact of the Covid-19 pandemic.
Our unit in Mexico was negatively affected by the reduced demand for coach buses and the unit was also charged with costs for restructuring operations. During the quarter, SEK 25 million was received in subsidies and similar support measures, primarily from the authorities in Bulgaria, Lithuania and Canada, to deal with the consequences of Covid-19. In China, we consolidated the operations for inductive components to the same company and premises in Suzhou. At the same time, we started a new company for Electric Cabinets and Sheet Metal Processing in new premises nearby.
On December 7, it was announced that Anders Carlsson will leave the position as CEO of AQ Group in 2021 and that James Ahrgren will take over as CEO no later than April 1, 2021.
On February 19, 2021, Aeternum Capital acquires 1,850,000 shares in AQ Group AB (publ) from AQ's founders Claes Mellgren and Per-Olof Andersson. The sale corresponds to 10.1% of the company's shares. After the transaction, the founders' shareholding amounts to 39.3 percent. The Nomination Committee proposes Vegard Søraunet from Aeternum Capital as a new board member of AQ Group to this year's Annual General Meeting.
Anders Carlsson will leave his position as President and CEO on March 31, 2021 and James Ahrgren will replace him as the new President and CEO on April 1, 2021.
The Covid-19 pandemic continues globally. The spread of infection continues in all the countries where AQ is active except in China where it is very low. The intensity of the spread of infection varies between different countries and goes up and down and also affects, among other things, the possibility for labour to cross national borders. Uncertainty about the continued impact on demand and our operations remains. We will continue with the measures we introduced in 2020 and are prepared to do so for a longer period of time. All our production units are up and running and we work closely with our customers to minimize the impact of the pandemic.
The Group's goal is continued profitable growth. The target is a profit margin before tax (EBT) of 8% during a business cycle. The Board does not submit any forecast of future sales and earnings. The statements in this report may be perceived as forward-looking and the actual outcome may be significantly different. In addition to the factors that have been commented on, the actual outcome can be affected by, for example, political events, economic effects, exchange rates and interest rates, competing products and their pricing, product development, commercial and technical difficulties, problems with deliveries, outbreaks of virus diseases and large credit losses.
Below is shown the development over the past five years. For Key indicators and definitions, see pages 86-88.
| 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|
| Net revenue, SEK thousands | 4,819,001 | 5,112,602 | 4,667,220 | 4,019,740 | 3,289,215 |
| Operating profit, SEK thousands | 401,238 | 340,495 | 208,184 | 263,282 | 281,353 |
| Profit after net financial items, SEK thousands | 369,104 | 321,412 | 198,322 | 255,828 | 279,344 |
| Operating margin, % | 8.3 | 6.7 | 4.5 | 6.5 | 8.6 |
| Liquid ratio, % | 135 | 106 | 111 | 125 | 142 |
| Debt/equity ratio, % | 57 | 52 | 58 | 61 | 60 |
| Return on total assets, % | 10.8 | 10.1 | 7.4 | 10.4 | 13.1 |
| Return on equity after tax, % | 15.1 | 13.8 | 8.9 | 13.2 | 17.9 |
| Number of employees in Sweden | 794 | 856 | 900 | 1,043 | 1,005 |
| Number of employees outside Sweden | 5,097 | 5,474 | 5,169 | 4,505 | 4,158 |
| Key indicators per share, SEK 1) | |||||
| Profit for the year | 17.24 | 14.37 | 8.26 | 11.14 | 13.01 |
| Dividend 2) | - | - | 2.75 | 2.75 | 2.75 |
| Equity | 119.75 | 110.15 | 97.45 | 89.82 | 79.98 |
| Number of shares, thousands | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 |
1) There are no instruments that could cause dilution.
2) Proposal presented for each year to the AGM.
AQ Group AB (publ) is the parent company in a group, herein called AQ, whose business concept is:
AQ is one of Sweden's leading suppliers of components and systems for demanding industrial customers. The company is listed on Nasdaq Stockholm.
2017 2018 2019 2020
2016
3289
Million SEK
4020
4667
4819
5113
AQ Group AB (publ) is the parent company in one group, herein called AQ, whose business concept is:
• To develop, manufacture and assemble components and systems for demanding industrial customers.
• With our commitment to Total Quality our customers become long-term partners
| 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|
| Net turnover, SEK thousands | 43,442 | 43,113 | 51,637 | 50,240 | 55,696 |
| Operating profit, SEK thousands | -4,371 | -2,973 | 7,992 | 17,190 | 19,716 |
| Profit after net financial items, SEK thousands | 47,321 | 134,118 | 210,691 | 98,946 | 118,074 |
| Liquid ratio, % | 61 | 60 | 68 | 58 | 50 |
| Equity ratio, % | 42 | 43 | 47 | 43 | 41 |
The parent company, AQ Group AB, is primarily focused on the management and development of the Group. Parent company's turnover consists, as in previous years, almost exclusively of sales of management services to subsidiaries. Purchases from subsidiaries do not occur to any significant extent.
Net sales for the full year amounted to SEK 43.4 million (43.1). Other external expenses amounted to SEK 16.8 million (19.5).
Personnell costs were SEK 35.3 million (28.1). Costs for the resigning CEO have charged the personnel costs with SEK 2.7 million.
Operating profit (EBIT) was SEK -4.4 million (-3.0). Net financial items were SEK 51.7 million (137.1) and consisted mainly of tax-free dividends from subsidiaries of SEK 79.7 million (158.0), exchange rate losses of SEK -22.6 million (-2.8), write-down of shares in subsidiary of SEK -4.6 million (-18.2), bank interest of SEK -7.9 million (-5.8) and internal interest of SEK 6.8 million (7.0).
Tax costs of SEK 0.6 million (8,5) are lower than in the previous year.
Other current receivables are mainly receivables from group companies SEK 168 million (376) and consist of cash pool, accrued interest, and accounts receivable.
The increase in unrestricted equity of SEK 74 million compared to December 31, 2019 consists of the period's profit.
Untaxed reserves consist of tax allocation funds.
Non-current interest-bearing liabilities at the end of the period are unchanged from the previous year, SEK 210 million (210), and is the long-term part of a bank loan relating to the acquisition of Trafotek.
Interest-bearing current liabilities increased by SEK 144 million compared to the same period last year, and consist of short-term bank loans of SEK 260 million (260), utilization of bank overdraft of SEK 0 million (56.1) and liabilities to subsidiaries in the cash pool SEK 449.3 million (233.8).
Other current liabilities SEK 36 million (32) consists of other liabilities and accrued costs and prepaid revenues.
The parent company's risks and uncertainties are essentially the same as for the other companies in the group. See Note 3 in the annual report. Regarding the company's financial risk management, cash flows etc., reference is made to the financial reports included in the annual report and Note 3.
The Parent company does not have any operations that require permits or reporting according to environmental laws. Within the Group, there are companies that conduct notifiable operations and companies that conduct permit operations. The notifiable operations are linked to the Environmental laws' guidelines regarding plastic manufacturing and machine processing, as well as emissions of non-chlorinated solvents via evaporation into the air. Such permit operations concern less emissions into waste water and the air e.g. in connection with powder coating.
AQ Group is an active member of UN Global Compact. Thus, AQ Group and all its subsidiaries are committed to following ten principles in terms of human rights, labor law, the environment and preventing corruption. In 2020, based on these principles, we have taken measures, see the section "sustainable enterprise", pages 21-26.
AQ does not conduct its own research.
The investments correspond to a normal need for the current production rate. In 2021, AQ intends to continue to invest in its existing business areas.
The health and well-being of our employees has
always been an important part in decision making at all levels within the Group. Each company has its own approach to encourage employees with measures that benefit health. In addition, ongoing training occurs based on the companies' needs.
The Board proposes that the dividend should correspond to approximately 25% of the average profit after tax over a business cycle. The company's financial consolidation needs must always be considered.
During the past year, the Board of Directors consisted of seven members, all elected at the Annual General Meeting 2020. The Board held nineteen minuted meetings during the year. The Board of Directors and the CEO work according to a set rules of procedure. Regarding remuneration to the Board of Directors and the CEO during 2020, see Note 9.
The Board's proposed guidelines for remuneration to senior executives of AQ in 2021, according to Swedish Companies Act Chapter 8, § 51, are as follows:
Regarding remuneration to the Board the following is proposed: The Chairman of the Board SEK 450 thousands (450) and SEK 200 thousands (200) for each of the Board's ordinary members. The Chairman of the Audit Committee SEK 100 thousands (100) and the members of the Audit Committee SEK 40 thousands (40). Chairman of the Remuneration Committee SEK 50 thousands (50) and the member of the Remuneration Committee SEK 30 thousands (30). AQ Group AB has no incentive programs.
Variable remuneration to AQ Group AB's management group consists of a variable cash salary (bonus). The AGM 2020 adopted the following principles for variable cash compensation: In addition to a fixed salary, variable remuneration, when applicable, shall be offered and linked to predetermined and clearly set measurable target criteria with the aim of promoting the company's longterm value creation. The remuneration may be paid in cash or additional premium payments to pension insurance. The total amount of variable remuneration shall not exceed the fixed salary paid to the executive concerned. The Board may deviate from the guidelines in individual cases should special reasons exist.
For the Annual General Meeting 2021, the Remuneration Committee proposes the following principles for variable remuneration: In addition to fixed salaries, variable remuneration can be offered where applicable, which must be linked to predetermined and clearly defined measurable target criteria with the aim of promoting the company's business strategy, sustainability and long-term value. These criteria currently include, among other things, profit and cash flow. The remuneration can be paid as cash compensation or extra premium payments to pension insurance. In total, the variable remuneration shall not exceed 100% of fixed salary. The Board may deviate from the guidelines if there are special reasons for this in individual cases.
Through its operations, the group is exposed to both operational and financial risks. A description of these is included in Note 3 and in Outlook at page 37. Within the next 12 months, we see no significant change in these risks.
All shares are held with equal voting rights, without restrictions other than those required by the Swedish Companies Act. There are no contracts, laws or clauses of the Articles of Association that restrict the transfer of shares.
The previous Annual General Meeting authorised the Board to, until the Annual General Meeting for fiscal year 2020, decide on a new issue of a total of 1,500,000 new shares via allocation or by cash.
There are no provisions in the Articles of Association or otherwise in agreements which govern the appointment and dismissal of Board directors or severance payment to them. There are also no limitations via agreements or Articles of Association regarding the amendment of the Articles of Association.
A table of the ten largest shareholders as of December 31, 2020 can be found on page 28.
The Board proposes that the retained earnings, 684,424,384, is distributed as follows:
| Available | Appropriation | ||
|---|---|---|---|
| Share premium reserve | 84,194,103 | Distributed to shareholders, | |
| Retained earnings | SEK 0 SEK per share | - | |
| incl. profit for the year | 600,230,281 | Carried forward 1) | 684,424,384 |
| Total free equity | 684,424,384 | Total | 684,424,384 |
1) of which returns to Share premium reserve 84,194,103
The Board's proposal for appropriation of profit is in accordance with chapter 18 § 4 of the Swedish Companies Act (2005:551). The Board of Directors proposes that the Annual General Meeting on April 21, 2021, decides that the profit according to the most recently approved balance sheet will be disposed of in such a way that SEK 0 is distributed to shareholders and that available profits of SEK 684,424,384 will be carried forward. Due to the ongoing Covid-19 pandemic and to ensure financial freedom during the beginning of 2021, the Board proposes that no dividend will be paid for 2020. However, the Board may return later in 2021 and propose a dividend given the strong balance sheet in AQ Group.
Regarding earnings and position in general, reference is made to subsequent income statements and balance sheets with accompanying year-end comments. The financial year refers to the period 1 January to 31 December. All amounts are in TSEK unless otherwise stated.
| 01/01/2020 | 01/01/2019 | ||
|---|---|---|---|
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
| OPERATING INCOME | |||
| Net sales | 6 | 4,819,001 | 5,112,602 |
| Other operating income | 7 | 153,368 | 84,857 |
| Total income | 4,972,369 | 5,197,459 | |
| OPERATING EXPENSES | |||
| Change in inventory of work in progress | -18,374 | -8,787 | |
| Raw material and consumables | -2,351,525 | -2,579,663 | |
| Goods for resale | -88,720 | -66,215 | |
| Other external expenses | 8 | -468,834 | -534,998 |
| Personnel costs | 9 | -1,352,532 | -1,406,937 |
| Depreciation and amortisation | 8,15,16, 17, 18, 19 | -233,996 | -220,191 |
| Other operating expenses | -57,150 | -40,174 | |
| Total expenses | -4,571,131 | -4,856,964 | |
| Operating profit | 401,238 | 340,495 | |
| PROFIT FROM FINANCIAL ITEMS | |||
| Financial income | 11 | 15,869 | 10,716 |
| Financial expenses | 12 | -48,002 | -29,800 |
| Net financial income/expense | -32,134 | -19,084 | |
| Profit before tax | 369,104 | 321,412 | |
| Taxes | 14 | -51,226 | -58,541 |
| Profit for the year | 317,878 | 262,871 | |
| PROFIT FOR THE YEAR ATTRIBUTABLE TO: | |||
| Parent company shareholders | 315,420 | 260,878 | |
| Non-controlling interests | 2,458 | 1,992 | |
| Profit for the year | 317,878 | 262,871 | |
| SHARE-RELATED REPORTING, SEK | |||
| Earnings per share 1) | 17.24 | 14.37 |
1) There were no transactions during the year that might result in dilution effects.
| 01/01/2020 | 01/01/2019 | |
|---|---|---|
| SEK thousands | 31/12/2020 | 31/12/2019 |
| PROFIT FOR THE YEAR | 317,878 | 262,871 |
| OTHER COMPREHENSIVE INCOME | ||
| Items that cannot be transferred to the profit for the year | ||
| Actuarial gains/losses related to defined benefit pension plans | -101 | -346 |
| Actuarial gains/losses related to defined benefit pension plans, tax | 22 | 16 |
| effect | ||
| Items transferred or that can be transferred to the profit for the year |
||
| Translation differences, foreign operations | -142,324 | 20,213 |
| Other comprehensive income for the year after tax | -142,403 | 19,884 |
| Comprehensive income for the year | 175,475 | 282,754 |
| COMPREHENSIVE INCOME FOR THE YEAR | ||
| ATTRIBUTABLE TO: | ||
| Parent company shareholders | 173,400 | 280,718 |
| Non-controlling interests | 2,075 | 2,036 |
| Comprehensive income for the year | 175,475 | 282,754 |
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | |||
| Goodwill | 16 | 330,244 | 353,246 |
| Customer relations | 15 | 84,508 | 109,060 |
| Technologies | 15 | 80,166 | 97,894 |
| Other intangible non-current assets | 15 | 13,602 | 10,122 |
| Total intangible assets | 508,520 | 570,322 | |
| Tangible assets | |||
| Land and buildings | 17 | 241,863 | 227,106 |
| Plant and machinery | 8, 18 | 590,675 | 672,431 |
| Equipment, tools, fixtures and fittings | 19 | 49,909 | 70,941 |
| Construction in progress | 20 | 30,239 | 41,690 |
| Total tangible assets | 912,686 | 1,012,168 | |
| Financial assets | |||
| Non-current receivables | 1,676 | 2,123 | |
| Deferred tax assets | 14 | 53,990 | 54,244 |
| Total financial assets | 55,666 | 56,367 | |
| TOTAL NON-CURRENT ASSETS | 1,476,872 | 1,638,858 | |
| CURRENT ASSETS | |||
| Inventories | 2 | ||
| Raw materials and consumables | 552,486 | 590,788 | |
| Work in progress | 128,132 | 137,432 | |
| Finished goods and goods for resale | 135,113 | 161,731 | |
| Total inventories | 815,731 | 889,952 | |
| Current receivables | |||
| Trade and other receivables | 3 | 995,212 | 1,043,903 |
| Current tax assets | 17,053 | 20,621 | |
| Other recievables | 23 | 54,216 | 62,409 |
| Prepaid expenses and accrued income | 24 | 53,834 | 35,239 |
| Total current receivables | 1,120,315 | 1,162,173 | |
| Cash and cash equivalents | 32 | 451,545 | 161,323 |
| Cash and cash equivalents | 451,545 | 161,323 | |
| TOTAL CURRENT ASSETS | 2,387,591 | 2,213,447 | |
| TOTAL ASSETS | 3,864,463 | 3,852,305 |
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| EQUITY | 25 | ||
| Share capital | 36,588 | 36,588 | |
| Other capital contributions | 84,194 | 84,194 | |
| Translation reserve | 13,606 | 155,543 | |
| Retained earnings incl. profit for the year | 2,046,747 | 1,731,410 | |
| Equity attributable to parent company shareholders | 2,181,135 | 2,007,735 | |
| Non-controlling interests | 9,497 | 7,422 | |
| TOTAL EQUITY | 2,190,632 | 2,015,157 | |
| LIABILITIES | |||
| Interest-bearing non-current liabilities | |||
| Non-current liabilities to credit institutions | 3, 32 | 406,049 | 442,411 |
| Non-current non-interest-bearing liabilities | |||
| Deferred tax liabilities | 14 | 84,293 | 96,281 |
| Provisions for pensions | 28 | 12,580 | 11,938 |
| Provisions for warranty | 28 | 3,569 | 2,938 |
| Other non-current liabilities | 3, 31 | 1,034 | 32,073 |
| Total non-current liabilities | 507,525 | 585,642 | |
| Interest-bearing current liabilities | |||
| Bank overdraft facilities | 3, 32 | 6,388 | 65,931 |
| Other liabilities to credit institutions | 3, 32 | 384,272 | 408,073 |
| Other current liabilities | |||
| Provisions for warranty undertakings | 28 | 5,030 | 3,600 |
| Advance payments from customers | 6 | 36,222 | 28,768 |
| Trade and other payables | 3 | 439,457 | 464,700 |
| Current tax liabilities | 13,333 | 10,754 | |
| Other liabilities | 29 | 79,871 | 72,800 |
| Accrued expenses / prepaid income | 30 | 201,733 | 196,879 |
| Total current liabilities | 1,166,306 | 1,251,506 | |
| TOTAL LIABILITIES | 1,673,831 | 1,837,148 | |
| TOTAL EQUITY AND LIABILITIES | 3,864,463 | 3,852,305 |
| Other contributed |
Retained | Non-control | |||||
|---|---|---|---|---|---|---|---|
| SEK thousands | Share capital |
capital | Translation reserve |
earnings incl. profit |
Subtotal | ling interests | Total equity |
| Equity, 01/01/2019 | 36,588 | 84,194 | 135,384 | 1,521,160 | 1,777,325 | 5,386 | 1,782,711 |
| Profit for the year | 260,878 | 260,878 | 1,992 | 262,871 | |||
| Translation differences in foreign operations |
20,159 | 20,159 | 54 | 20,213 | |||
| Revalutation of defined benefit pension plans |
-336 | -336 | -10 | -346 | |||
| Revalutation of defined benefit | |||||||
| pension plans, tax effect | 16 | 16 | 16 | ||||
| Other comprehensive income | 20,159 | -319 | 19,840 | 44 | 19,884 | ||
| Comprehensive income for the year | 20,159 | 260,559 | 280,718 | 2,036 | 282,754 | ||
| Dividends paid | -50,309 | -50,309 | -50,309 | ||||
| Transactions with shareholders | -50,309 | -50,309 | -50,309 | ||||
| Equity, 31/12/2019 | 36,588 | 84,194 | 155,542 | 1,731,410 | 2,007,735 | 7,422 | 2,015,157 |
| Equity, 01/01/2020 | 36,588 | 84,194 | 155,542 | 1,731,410 | 2,007,735 | 7,422 | 2,015,157 |
| Profit for the year | 315,420 | 315,420 | 2,458 | 317,878 | |||
| Translation differences in foreign operations |
-141,937 | -141,937 | -387 | -142,324 | |||
| Revalutation of defined benefit | |||||||
| pension plans | -105 | -105 | 4 | -101 | |||
| Revalutation of defined benefit | |||||||
| pension plans, tax effect | 22 | 22 | 22 | ||||
| Other comprehensive income | -141,937 | -83 | -142,020 | -383 | -142,403 | ||
| Comprehensive income for the year | -141,937 | 315,337 | 173,400 | 2,075 | 175,475 | ||
| Dividends paid | - | - | - | ||||
| Transactions with shareholders | - | - | - | ||||
| Equity, 31/12/2020 | 36,588 | 84,194 | 13,606 | 2,046,747 | 2,181,135 | 9,497 | 2,190,632 |
| SEK thousands | Note | 01/01/2020 31/12/2020 |
01/01/2019 31/12/2019 |
|---|---|---|---|
| CASH FLOW STATEMENT FOR THE GROUP | |||
| Profit before tax | 369,104 | 321,412 | |
| Adjustment for non-cash generating items | 32 | 250,426 | 222,785 |
| Income tax paid | 14 | -55,515 | -77,741 |
| Cash flow from operating activities before change | 564,015 | 466,456 | |
| in working capital | |||
| Change in inventories | 31,402 | -8,866 | |
| Change in trade receivables | -2,691 | 105,725 | |
| Change in other receivables | -19,246 | 56,505 | |
| Change in trade payables | 2,858 | -65,015 | |
| Change in other liabilities | 32,366 | -55,648 | |
| Change in working capital | 44,690 | 32,701 | |
| Cashflow from operating activities | 608,705 | 499,158 | |
| Aquisitions of shares in subsidiaries | 3, 31 | -20,024 | -295,571 |
| Acquisition of intangible non-current assets | -8,097 | -3,360 | |
| Acquisition of tangible non-current assets | -114,123 | -199,468 | |
| Sale of tangible non-current assets | 5,016 | 17,225 | |
| Sale of intangible non-current assets | 406 | - | |
| Other changes in non-current assets | 111 | - | |
| Sale of short-term investment in securities | - | 242 | |
| Cashflow from investing activities | -136,710 | -480,932 | |
| New borrowings | - | 299,115 | |
| Amortisation of loans | -20,722 | -62,132 | |
| Amortisation of loans (financial leases) | -91,180 | -85,418 | |
| Change in bank overdraft facilities | -58,714 | -59,675 | |
| Dividends to the parent company shareholders | - | -50,309 | |
| Other changes in financial activities | 1,124 | - | |
| Cashflow from financing activities | 32 | -169,493 | 41,582 |
| Increase/decrease in cash and cash equivalents | 302,502 | 59,808 | |
| Cash and cash equivalents at the beginning of the year | 161,323 | 100,683 | |
| Exchange rate differences in cash and cash equivalents | -12,280 | 833 | |
| Cash and cash equivalents at the end of the year | 451,545 | 161,323 |
| SEK thousands | Note | 01/01/2020 31/12/2020 |
01/01/2019 31/12/2019 |
|---|---|---|---|
| OPERATING INCOME | |||
| Net sales | 43,442 | 43,113 | |
| Other operating income | 7 | 4,711 | 2,212 |
| Total income | 48,154 | 45,326 | |
| OPERATING EXPENSES | |||
| Other external expenses | 8 | -16,771 | -19,500 |
| Personnel costs | 9 | -35,340 | -28,088 |
| Other operating expenses | -413 | -711 | |
| Total expenses | -52,525 | -48,299 | |
| Operating profit | -4,371 | -2,973 | |
| PROFIT FROM FINANCIAL ITEMS | |||
| Income from participation in grop companies | 10 | 75,128 | 139,805 |
| Financial income | 11 | 13,857 | 12,042 |
| Financial expenses | 12 | -37,293 | -14,756 |
| Net financial income/expense | 51,692 | 137,091 | |
| Earnings after financial items | 47,321 | 134,118 | |
| Appropriations | 13 | 27,100 | 27,654 |
| Profit before tax | 74,421 | 161,772 | |
| Taxes | 14 | -641 | -8,514 |
| Profit for the year 1) | 73,780 | 153,259 |
1) Profit for the year corresponds to the comprehensive income for the year
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| ASSETS | |||
| NON CURRENT ASSETS | |||
| Financial assets | |||
| Participations in group companies | 21 | 1,118,188 | 1,078,755 |
| Receivables from group companies | 22, 33 | 154,168 | 120,329 |
| Deferred tax assets | 14 | - | 267 |
| Total financial assets | 1,272,356 | 1,199,350 | |
| TOTAL NON-CURRENT ASSETS | 1,272,356 | 1,199,350 | |
| CURRENT ASSETS | |||
| Current receivables | |||
| Receivables from group companies | 33 | 167,936 | 375,473 |
| Current tax assets | 12,775 | 7,514 | |
| Other receivables | 23 | 1,904 | 2,757 |
| Prepaid expenses/accrued income | 24 | 2,130 | 1,778 |
| Total current receivables | 184,745 | 387,523 | |
| Cash and cash equivalents | 32 | 296,257 | - |
| TOTAL CURRENT ASSETS | 481,003 | 387,523 | |
| TOTAL ASSETS | 1,753,359 | 1,586,873 |
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| EQUITY | 25 | ||
| Share capital | 36,588 | 36,588 | |
| Statutory reserve | 1,156 | 1,156 | |
| Restricted equity | 37,745 | 37,745 | |
| Share premium reserve | 84,194 | 84,194 | |
| Retained earnings | 526,451 | 373,192 | |
| Profit for the year | 73,780 | 153,259 | |
| Non-restricted equity | 684,424 | 610,645 | |
| Total equity | 722,169 | 648,389 | |
| Untaxed reserves | 26 | 28,400 | 52,400 |
| Deferred tax liabilties | 14 | 353 | - |
| Other provisions | 3 | - | 32,073 |
| Provisions | 353 | 32,073 | |
| LIABILITIES | |||
| Interest bearing non-current liabilities | |||
| Non-current liabilities to credit institutions | 3, 32 | 210,000 | 210,000 |
| Total non-current liabilities | 210,000 | 210,000 | |
| Interest-bearing current liabilities | |||
| Current liabilities to credit institutions | 32 | 260,000 | 260,000 |
| Bank overddraft facilities | 3, 32 | - | 56,131 |
| Other liabilites to credit institutions | 32 | 44,052 | 59,205 |
| Interest-bearing current liabilities to Group companies |
33 | 449,348 | 233,782 |
| Other current liabilities | |||
| Trade and other payables | 3 | 2,880 | 2,766 |
| Liabilities to group companies | 33 | 21,925 | 19,137 |
| Current tax liabilities | - | 2,949 | |
| Other liabilities | 29 | 1,091 | 2,581 |
| Accrued expenses/deferred income | 30 | 13,143 | 7,459 |
| Total current liabilities | 792,437 | 644,010 | |
| TOTAL LIABILITIES | 1,002,790 | 886,084 | |
| TOTAL EQUITY AND LIABILITIES | 1,753,359 | 1,586,873 |
| Restricted equity | Non-restricted equity | ||||||
|---|---|---|---|---|---|---|---|
| SEK thousands | Share capital |
Statutory reserve |
Subtotal | Share premium reserve |
Other non restricted equity |
Subtotal | Total equity |
| Equity, 01/01/2019 | 36,588 | 1,156 | 37,745 | 84,194 | 423,501 | 507,695 | 545,439 |
| Profit for the year 1) | 153,259 | 153,259 | 153,259 | ||||
| Dividends paid | -50,309 | -50,309 | -50,309 | ||||
| Transactions with shareholders |
-50,309 | -50,309 | -50,309 | ||||
| Equity, 31/12/2019 | 36,588 | 1,156 | 37,745 | 84,194 | 526,451 | 610,645 | 648,389 |
| Equity, 01/01/2020 | 36,588 | 1,156 | 37,745 | 84,194 | 526,451 | 610,645 | 648,389 |
| Profit for the year 1) | 73,780 | 73,780 | 73,780 | ||||
| Dividends paid | - | - | - | ||||
| Transactions with shareholders |
- | - | - | ||||
| Equity, 31/12/2020 | 36,588 | 1,156 | 37,745 | 84,194 | 600,230 | 684,424 | 722,169 |
1) Profit for the year corresponds to the comprehensive income for the year
| SEK thousands | Note | 01/01/2020 31/12/2020 |
01/01/2019 31/12/2019 |
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Operating profit | 74,421 | 161,772 | |
| Adjustment for non-cash generating items | 32 | -22,500 | -11,093 |
| Income tax paid | 14 | -8,052 | -16,876 |
| Cash flow from operating activities before change | |||
| in working capital | 43,869 | 133,803 | |
| Change in other receivables | 170 | -36,222 | |
| Change in trade payables | -365 | -1,425 | |
| Change in other liabilities | -7,809 | 12,850 | |
| Change in working capital | -8,004 | -24,797 | |
| Cashflow from operating activities | 35,865 | 109,006 | |
| Acquisitions of shares in subisidiaries | 3, 31 | -20,184 | -317,521 |
| Shareholder contributions paid | 21 | -55,923 | -15,499 |
| Change in cashpool | 453,988 | 123,374 | |
| New borrowings to group companies | -62,834 | -68,496 | |
| Amortisation of loans to group companies | 13,977 | 2,107 | |
| Cashflow from investing activities | 329,023 | -276,034 | |
| New borrowings | - | 299,115 | |
| Amortisation of loans | -15,600 | -55,000 | |
| Change in bank overdraft facilities | -56,131 | -53,778 | |
| Group contributions | 3,100 | 27,000 | |
| Dividends to the parent company shareholders | - | -50,309 | |
| Cashflow from financing activities | 32 | -68,631 | 167,028 |
| Increase/decrease in cash and cash equivalents | 296,257 | - | |
| Cash and cash equivalents at the beginning of the year | - | - | |
| Cash and cash equivalents at the end of the year | 269,257 | - |
AQ Group AB (publ) and its subsidiaries operate under the brand AQ. AQ designs, manufactures and sells products in two segments; Component where the business areas Precision stamping and Injection molding, Inductive components, Wiring systems and Electromechanical modules, Sheet metal processing and Special Technologies and Engineering are included, as well as System where the business areas Electric cabinets and System Products are included.
AQ Group AB (publ) is the highest level parent company of the Group. Parent company's sales are, as in previous years, almost exclusively via sales of management services to subsidiaries. Purchases from subsidiaries do not occur to any significant extent. The parent company, which is listed on Nasdaq Stockholm's main market since January 16, 2017, is based in Vasterås, Sweden. The head office is located at Regattagatan 29, 723 48 Västerås, Sweden. The consolidated financial statements for AQ Group AB (publ) for the financial year 2020 have been approved by the Board for publication and are available on the company's website www.aqg.se from March 26, 2021. The website also provides further information.
A description of the accounting principles applied in the preparation of this annual report follows below. The principles have been applied consistently for all presented years unless otherwise stated.
The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS), published by the International Accounting Standards Board (IASB) as adopted by the EU. Furthermore, the Group also applies the Swedish Financial Reporting Board's recommendation RFR 1 (Supplementary Accounting Rules for Groups). Unless otherwise specified, the cost value method was appliedwhen valuing assets and liabilities. Unless otherwise specified below, the items in the income statement and balance sheet are recorded gross. The parent company does not have its own manufacturing operation, but serves as a holding company. The parent company applies the same accounting policies as the Group, with the addition of RFR 2 (Accounting for Legal Entities) instead of RFR 1.
The parent company's functional currency is the Swedish krona, which is also the reporting currency for the parent company
and the Group. Unless otherwise specified, all amounts are rounded to the nearest thousand.
The consolidated financial statements include all subsidiaries of AQ. A subsidiary is defined in accordance with IFRS 10, as a company in which AQ Group AB has a controlling interest. A controlling interest exists when AQ Group AB has an interest over investments, is exposed to or has a right to a variable return from its involvement, and can exert its interest in the investment in order to influence the return. When assessing whether a controlling interest exists, consideration is given to shares that potentially provide entitlement to vote and whether control exists.
A subsidiary is included starting from the date on which the Group gains a controlling interest in the company. Similarly, a subsidiary is excluded as of the date on which the controlling interest ceases. When incorporating a subsidiary's financial statements into the Group, IFRS 3, Business Combinations, is applied. When an acquisition takes place, an acquisition analysis is prepared in accordance with the acquisition method. The cost of acquisition comprises the fair value of assets issued as compensation, equity instruments issued for equity and debts incurred or taken over as at the transfer date. Transaction expenses incurred in connection with the acquisition are recorded directly as expenses. The excess amount between the acquisition value and the fair value of the Group's share of acquired net assets is recorded as goodwill. Any deficits, negative goodwill, is recorded directly in the income statement under Other operating income. Internal profits in inventories are eliminated in the consolidated financial statements.
Contingent considerations are valued at fair value on the acquisition date. If this is matched by a liability, this must be converted to fair value via the income statement for each report. Intra-Group balance sheet items as well as transactions and unrealised gains/ losses on these are eliminated.
Two business segments are presented in the segment report
– Component and System. Each has similar economic characteristics, products, production processes and customer categories. These segments are recorded in a manner which conforms to internal reporting, which is given to the senior executive decisionmaker. The senior executive decision-maker is the function responsible for the allocation of resources and assessment of the operating segment's financial results. In the Group this function has been identified as the CEO and the management team. Company management believes that this is consistent with the identification of operating segments in accordance with IFRS 8.
The parent company's turnover is derived almost exclusively from the subsidiaries. The parent company's financial statements are included in the adjustment item together with the real estate companies in segment reporting.
Note 6, Segment reporting, contains more detailed information.
Income includes the fair value of goods and services sold excluding Value Added Tax and discounts, as well as the elimination of intra-Group sales.
The Group's incomes essentially consist of sales of goods. Income for the sale of goods is recognized in profit for the year when control of a product or service is transferred to the customer, that is, when the goods have been delivered and accepted by the customer. The Group has no agreements with customers with right of return.
Income from service assignments is reported over time with the services being performed, i.e. based on the degree of completion. The degree of completion is determined by an assessment of work performed on the basis of made investigations.
Income is recognized at the fair value of what has been received, or is expected to be received, with deductions for discounts granted.
Financial income comprises interest income on bank deposits and receivables, as well as realised and unrealised exchange rate differences in the financial sector. Income is recorded when the right to receive payment and the size of the payment have been established.
Short-term benefits to employees are calculated without discounting and recorded as an expense when the related services are received. A provision is recorded for the expected cost of profitsharing and bonus payments when the Group has a valid legal or informal obligation to make such payments as a consequence of services having been received from employees and the obligation can be calculated reliably.
The Group's net obligation in respect of other long-term benefits, except pensions, comprises the value of future benefits that employees have earned as remuneration for the services they have performed during the current and previous periods.
This remuneration is discounted to present value and the fair value of any managed assets is deducted. The discount rate is established on the same basis used as for defined benefit pension plans. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recorded in the income
statement in the period when they occur. These include remuneration in connection with sabbatical leave, anniversaries and longterm inability to work. Long-term benefits also include remuneration issued in respect of a long period of service.
Defined contribution pension plans are classified as plans in which the company's obligation is limited to the contributions that the
company has undertaken to pay. In such cases the size of the employee's pension depends on the contributions that the company pays into the plan or to an insurance company and the return on capital that these contributions produce. Consequently, it is the employee who bears the actuarial risk (that the benefit will be lower than expected) and the investment risk (that the assets invested will be insufficient to produce the expected benefits). The company's obligations in respect of contributions to defined contribution plans are recorded as an expense in the income statement as they are earned by means of employees having performed services for the company during a period.
In 2020 the companies paid a total of SEK 7,121 thousand (6,671) in pension expenses to Alecta. The Group's share of the total contributions to the plan and the Group's share of the total number of active members in the plan amounts to 0.00151% and 0.00243% (2019: 0.00256% and 0.00245%). The contributions for the next reporting period are expected to be on a par with last year. In accordance with IAS 19 and UFR 10, the ITP pensions financed via Alecta must be treated as defined contribution pension plans until further notice, as information from Alecta does not enable reporting as defined benefit pension plans.
The premiums for Alecta are established using assumptions about interest rates, life expectancy, operating expenses and yield tax, and are calculated in such a way that the payment of a constant premium for the retirement date will be sufficient for all the target benefits, based on the insured party's current pensionable salary, to have been earned.
There is no established set of rules defining how a possible deficit should be treated, although in the first instance losses must be covered by Alecta's collective consolidation capital, and will therefore not result in increased expenses through an increase in agreed premiums. There are also no rules defining how a possible surplus or deficit is to be distributed in the event that the plan is discontinued or a company withdraws from the plan.
The information that must be provided in accordance with IAS 19, in addition to the above, relates to the consolidation ratio. Collective consolidation is a buffer for Alecta's insurance obligations against variations in return on capital and insurance risks. It comprises the difference between Alecta's assets and insurance obligations to policyholders and insured parties. The company accounts for an insignificant part of the plan.
The consolidation ratio reported below relates to Alecta's assets as a percentage of the insurance obligations. Alecta has provided the following information regarding the consolidation level: "The collective consolidation level can normally vary between 125% and 175%. The consolidation ratio for 2020 was 148% (148).
The Group has no substantial defined-benefit pension plans.
An expense for benefits in connection with staff redundancies is recorded at the earlier of when the company can no longer withdraw the offer to employees or when the company records restructuring expenses. Benefits that are expected to be settled after twelve months are recorded at their current value. Benefits that are not expected to be settled in full within twelve months are recorded under long-term benefits. There are no agreements regarding severance pay or the like within the Group.
A warrant scheme enables employees to acquire shares in the company. The fair value of the warrants allocated is recorded as a staff cost, with a corresponding increase in equity. There are no share-based benefits in the Group.
As of January 1, 2019, IFRS 16 Leasing Agreements is applied in the Group. When entering into an agreement, the Group assesses whether the agreement is, or contains, a lease agreement. An agreement is, or contains, a leasing agreement if the agreement assigns the right to decide, over a certain period, the use of an identified asset in exchange for compensation.
The Group reports a right-of-use asset and a leasing debt on the date of the lease agreement. The right-of-use is initially valued at acquisition value, which consists of the original value of the lease liability with addition for lease payments paid at or before the start date plus any initial expenses. The right-of-use asset is subsequently written off linearly from the start date to the earliest of the end of the asset's useful life and the end of the lease term.
The leasing liability - which is divided into long-term and shortterm - is initially valued at the present value of remaining leasing fees during the assessed leasing period. The leasing period is the non-cancellable period with the addition of additional periods in the agreement if it is deemed reasonably certain at the commencement date that these will be used. Leasing fees are discounted with the implicit interest rate of the lease. If this interest rate cannot be easily determined, the Group's marginal borrowing rate is used.
The lease debt is valued at amortized cost using the effective interest method. The lease liability is revalued if future lease payments change due to, among other things, changes in an index or a price. When the lease liability is revalued in this way, a corresponding adjustment is made to the carrying value of the right-of-use asset.
IFRS 16 has an amendment regarding how tenants report rent reductions due to Covid-19. The rent reduction does not need to be accrued over the remaining rental period, but can be reported in the same period as the rent was reduced. The Group has chosen to apply this rule.
Goodwill consists of the amount by which the acquisition value on acquisition of companies or operations exceeds the fair value of identified net assets at the time of acquisition. Goodwill and other intangible assets with an indeterminate useful life are valued at cost less any write-downs. Depreciation according to plan is not made on these assets, instead, any impairment needs are tested annually or more often if there is an indication of a significant decline in value, in accordance with IAS 36.
Other intangible assets relate primarily to acquired software. Software is depreciated linearly over five years.
Identified acquired customer relations and technology are depreciated linearly over 5-10 years.
Tangible fixed assets are depreciated on a straight-line basis over the estimated useful life; there is no depreciation of land. The Group applies component depreciation, which means that the components' estimated useful life forms the basis of depreciation.
| Plants and machinery | 5-12 years |
|---|---|
| Equipment, tools fixtures and fittings | 5-10 years |
Land and buildings include factories and offices. There are operational properties within the Group, but no investment properties.
The cost of acquisition includes expenses that can be attributed directly to the acquisition. Plant and machinery consist solely of assets intended for production, while equipment, tools, fixtures and fittings are divided between offices and production. Plant and machinery are recorded at the cost of acquisition with deductions for accumulated depreciation and amortisation. Regarding the recording of directly acquired net assets ("asset acquisition"), see Note 2.2 above. Expenses for repairs and maintenance to maintain and make marginal improvements to production capacity in the machinery are recorded as expenses directly in the income statement.
| Buildings | 10-60 years |
|---|---|
| Improvement expenses on leasehold property | 20 years |
| Land improvements | 20 years |
| Machinery | 5-10 years |
| Equipment, tools fixtures and fittings | 3-10 years |
The following main groups of components have been identified and form the basis of depreciation of buildings:
| Frame | 40-60 years |
|---|---|
| Supplements to the frame, internal walls, etc. | 20-40 years |
| Installations; HVAC, electricity, plumbing, | 20-40 years |
| Outer layer: façades, roofs, etc. | 20-30 years |
| Inner layer: mechanical equipment, etc. | 10-15 years |
| Depreciation methods, residual values and useful lives used are | |
| reviewed at the end of every year. |
Regarding differences between tax and book value, please refer to the section on income taxes, 2.11.
Accounts receivable and debt instruments issued are reported when they are issued. Other financial assets and financial liabilities are recognized when the Group becomes a party to the instrument's contractual terms. A financial asset (with the exception of accounts receivable that do not have a significant financing component) or financial liability is valued at initial recognition at fair value plus, in the case of financial instruments not measured at fair value through profit or loss, transaction costs directly attributable to the acquisition or issue. A trade receivable without a significant financing component is valued at the transaction price. The Group removes a financial asset from the statement of financial position when the contractual rights to the cash flows from the financial asset cease or if it transfers the right to receive the contractual cash flows. The Group discards a financial liability from the statement of financial position when the commitments specified in the agreement are fulfilled, cancelled or terminated. When a financial liability is derecognised, the difference between the carrying amount that has been removed and the remuneration paid (including transferred non-monetary assets or assumed liabilities) is reported in the income statement. For more information on financial instruments, see Note 3 and Note 4.
2.8.1 Goods for resale, raw materials and consumables and purchased finished/semi-finished products are valued at the cost of acquisition or the net realisable value, whichever is lower.
The acquisition value is calculated according to a weighted average calculation. Calculation of net realisable value arises when a risk of obsolescence has been identified in an inventory item, such as one with slow movement.
2.8.2 Finished products and work in progress are valued as direct costs and a reasonable proportion of indirect costs, based on normal utilisation capacity. The change is recorded in the income statement.
2.8.3 Work in progress on behalf of another party is valued as direct costs and an estimated proportion of indirect costs on the balance sheet date.
Of the recorded inventory values of raw materials and consumables of SEK 552.5 million (590.8), it is estimated that 95% will be turned over within one year. It is estimated that other inventories, such as work in progress, finished products and goods for resale, totalling SEK 263.2 million (299.2), will be turned over in their entirety within one year. The value of inventories was written down by SEK 100.5 million (89.1) on the balance sheet date. The valuation was based on the use of an obsolescence scale. The obsolescence scale is based on each company's historical obsolescence risks, quantities and maturity.
Transactions in foreign currency are translated at the exchange rate prevailing on the transaction date. Exchange rate profits and losses that arise when paying for such transactions, as well as monetary assets and liabilities in foreign currency that are translated at the closing day rate, are recorded gross in the income statement. To a lesser extent there are currency hedges within the Group on the balance sheet date.
Assets and liabilities in foreign businesses, including goodwill and other consolidated over and under values, are translated from the foreign operation's functional currency to the groups presentation currency, Swedish kronor (SEK), at the exchange rate as of the balance sheet date. Revenues and expenses in a foreign enterprise are translated into Swedish crowns at an average rate that constitutes an approximation of the exchange rate that prevails at each moment of transaction. Translation differences that occur upon translating currencies for foreign operations are posted separated in other comprehensive income and area accumulated in a separate component in equity, named the translation reserve. In the event that the foreign operation is not wholly owned, the translation difference is distributed to holdings without controlling influence based on its proportional share of ownership. When controlling influence, considerable influence or joint control ceases for a foreign business, they are realised at the accumulated translation difference by which they are reclassified from the translation reserve in equity to profits for the year.
A provision differs from other liabilities as there is uncertainty about the payment date and the amount to settle the provision. A provision is reported in the balance sheet when there is an existing legal or informal obligation as a consequence of an event, and it is probable that an outflow of financial resources will be required to settle the obligation and a reliable estimate of the amount can be produced. Provisions are made at the amount that represents the best estimate of what is required to settle the existing obligation on the balance sheet date. If the effect of when payment is made is significant, provisions are calculated by discounting the expected future cash flow at an interest rate before tax that reflects current market assessments of the money's timevalue and the risks associated with the liability. Pension provisions mainly occur in the Bulgarian, Lithuanian, Polish and Italian companies,and the size of these defined benefit pension plans has been assessed as being insignificant for the Group.
If there are a number of similar obligations, an individual assessment is usually made regarding the probability of whether an outflow of resources from the company will be required. A provision is recorded when the probability of outflow in respect of a special item in this group of obligations is likely. Provision is made at the amount that represents the best estimate of what is required to settle the existing obligation on the balance sheet date.
Recorded tax for the period comprises current tax and deferred tax. When the tax is based on an underlying transaction that is recorded directly against equity, the tax effect is also recorded directly against equity. Otherwise the tax is recorded in the income statement. Current tax is the tax payable or receivable for the year, adjusted for any correction of current tax from previous years.
Deferred tax is recorded in full, according to the balance sheet method, for all temporary differences that arise between the tax value of assets and liabilities and their reported values in the consolidated financial statements. Temporary differences are not recorded for differences arising on recording of consolidated goodwill or for the initial recording of assets and liabilities that are not acquisitions and that at the time of the transaction do not affect recorded or taxable profit.
Deferred taxes are calculated using the tax rates expected to apply when the tax is to be settled, which are normally the tax rates adopted on the balance sheet date. Deferred tax assets in respect of tax loss carryforwards are recorded only to the extent that it is likely that they can be utilised. Deferred tax liabilities consist mainly of untaxed reserves, which are divided into equity and deferred tax in the consolidated financial statements. The amount also includes deferred tax liabilities on the properties recorded at a higher value than the tax value.
The parent company's balance sheet items include deferred tax only as a component of untaxed reserves. Due to the connection between accounting and taxation, these are not reported separately. There are thus no deferred taxes recorded in the parent company's financial statements.
The Group's earnings in Estonia are not burdened with income tax since the current tax regime only taxes dividends. No deferred tax is reported for distributable funds where no dividend decision has been made.
Government grants are recorded in the balance sheet as deferred income when there is reasonable certainty that the grant will be received and the Group will fulfil the conditions associated with the grant. Grants are accrued systematically in the income statement in the same manner and over the same periods as the expenses the grants are intended to compensate. The income is accounted for in other operating income.
Government grants related to assets are recorded as a reduction in the carrying value of the asset.
Calculation of earnings per share is based on the consolidated profit/ loss for the year and the weighted average number of shares outstanding during the year.
Assets that have an indefinite useful life (for example, goodwill) are not depreciated, but are tested annually or more often when needed with respect to the need for impairment with a number of estimates such as assumed growth rate and assumed discount rate. For impairment testing, goodwill is allocated to the operating segments that were expected to benefit from the acquisition and where the goodwill item arose. IAS 36 is applied within AQ for testing impairment requirements except for the assets that are regulated via other standards such as financial assets (IFRS 9), inventories and deferred taxes. During the financial year, there was no impairment requirement in the Group linked to IAS 36.
For other assets, an assessment is made if there is a need for impairment when there are indications that an asset's value exceeds its estimated recoverable amount. The recoverable amount is the highest of an asset's net sales value and value in use. For assets that have previously been written down, a review is made on each balance sheet date if reversal should be made.
Impairment of financial assets is made in accordance with IFRS 9. The Group recognizes loss reserves for expected credit losses on financial assets valued at amortized cost. The reported gross value of a financial asset is depreciated when the Group has no reasonable expectation of recovering a financial asset in its entirety or part of it. The Group makes individual assessments regarding the time and amount for write-off based on whether there are reasonable expectations for recovery. However, financial assets that have been written off may still be subject to enforcement measures to comply with the Group's recovery procedures of recoverable amounts.
Regarding transactions between companies within the Group,
these take place at arm's length in accordance with the Group's internal pricing policy. See also Notes 2.3 and 6. There have been no transactions with owners beyond the benefits described in Note 9, Personnel.
AQ Group AB is the parent company in the AQ Group and has its head office in Västerås, Sweden. The operation includes administrative functions, holding operations and financing operations. AQ Group AB has prepared its Annual Report in accordance with the Swedish Annual Accounts Act and recommendation RFR 2 (Accounting for Legal Entities), hereinafter "RFR 2", which was issued by Swedish Financial Reporting Board. In accordance with RFR 2, a parent company whose consolidated financial statements comply with the International Financial Reporting Standards (IFRS), as approved by the EU, as long as these accounting policies comply with the Swedish Annual Accounts Act, can apply the exceptions from IFRS as defined in RFR 2 with regard to Swedish tax legislation.
The financial statements are presented in Swedish kronor (SEK), rounded to the nearest thousand Swedish Kronor. Unless otherwise specified, the parent company's accounting policies have been applied consistently for all periods. There is a more detailed description of the accounting policies applied in Notes 1 and 2. The descriptions below have been limited to deviations that occur.
Shares in subsidiaries are recorded in the parent company in accordance with the cost value method. The carrying amount for shares in subsidiaries undergoes impairment testing in accordance with IAS 36, Impairment of Assets. For further information see also the Group's accounting policies, Amortisation of financial assets, in respect of amortisation. Transaction expenses that arise in connection with an acquisition are recorded by the parent company as part of the cost of acquisition and are thus not recorded as an expense.
The Parent Company does not apply IFRS 16, according to the exception in RFR 2. As a lessee the lease expenses are reported on a straight-line basis over the lease period. Right-of-use assets and lease liabilities are therefore not reported in the balance sheet.
Financial warranties that the parent company has issued in favour of subsidiaries are not valued at their fair value. They are recorded as contingent liabilities, unless it is probable that the warranties will result in payments. In such cases, a provision is recorded.
Group contributions in Sweden are deductible, in contrast with shareholder contributions. Group contributions are recorded as appropriations in the income statement.
Financial instruments with a classification according to IAS 32 are presented below, accounting and valuation according to IFRS 9 and disclosures with risk information according to IFRS 7 and measurement at fair value according to IFRS 13. The financial assets and the carrying amount of the financial liabilities, respectively, constitute a reasonable estimate of the fair value, in respect of those recognized at amortized cost.
On initial recognition, a financial asset is classified as valued at: amortized cost, fair value through other comprehensive income or fair value through profit or loss. Financial assets are not reclassified after the initial recognition, except if the Group changes the business model for the management of the financial assets. A financial asset shall be valued at amortized cost if it meets both of the following conditions and has not been identified as valued at fair value through profit or loss:
comprehensive income if it meets both of the following conditions and has not been identified as valued at fair value through profit or loss:
All financial assets that are not classified as valued at amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss.
Financial assets valued at fair value through profit or loss. The subsequent valuation for these assets takes place at fair value. Net gains and losses, including all interest or dividend income, arereported in profit or loss.
The subsequent valuation for these assets is made at amortized cost using the effective interest method. The accrued acquisition value is reduced by write-downs. Interest income, foreign exchange gains and losses and impairment losses are recognized in profit or loss. Gains or losses arising from cancellation are reported in profit or loss.
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Long-term external receivables |
1,676 | 2,123 | - | - |
| Accounts receivable |
995,212 | 1,043,903 | - | - |
| Receivables from group companies |
- | - | 322,104 | 495,892 |
| Other receivables |
27,476 | 20,583 | 1,899 | 2,757 |
| Cash and cash equivalents |
451,545 | 161,323 | 296,257 | - |
| Total | 1,475,909 | 1,227,932 | 620,260 | 498,649 |
At closing, the need for impairment of unsecure receivables is tested, see credit risks at the next page.
Cash and cash equivalents consist of cash and immediately available balances with banks and corresponding institutions. There are no obstacles to the exploitation. The Group's unutilized overdraft facility amounts to SEK 164.1 million (108.6), see also note 32. Linked to the overdraft facility, two conditions are stipulated in a covenant, one relating to limitations in the Group's net debt in relation to operating profit before interest, tax, depreciation and write-downs (EBITDA) ). The second limits the debt to equity ratio, net debt / equity. During the full year 2020, AQ has met the conditions by a good margin.
Financial liabilities are classified as valued at amortized cost or fair value through profit or loss. A financial liability is classified at fair value through profit or loss if it is classified as a holding for trading purposes, as a derivative or it has been identified as such at the first accounting date. Financial liabilities measured at fair value through profit or loss are valued at fair value and net gains and losses, including interest, are recognized in profit or loss. Subsequent valuation of other financial liabilities takes place at amortized cost using the effective interest method. Interest expenses and foreign exchange gains and losses are recognized in profit or loss. Gains or losses on removal from the accounts are also reported in the profit and loss.
Additional purchase prices for acquisitions are recognized at fair value through profit or loss.
In the description of the liquidity risk, there is a maturity analysis for financial liabilities. For AQ, this means that almost all financial instruments are recognised at and any reporting of changes in value, such as foreign exchange, is carried through the income statement.
| Financial liabilities valued at amortized cost | Group | Parent company | |||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| Non-current liabilities to credit institutions | 406,049 | 442,411 | 210,000 | 210,000 | |
| Bank overdraft facilities | 6,388 | 65,931 | - | 56,131 | |
| Other debts to credit institutions | 384,272 | 408,073 | 304,052 | 319,205 | |
| Accounts payable - trade | 439,457 | 464,700 | 2,880 | 2,766 | |
| Other liabilities | 16,623 | 13,545 | - | 1,247 | |
| Liabilities to group companies | - | - | 471,273 | 252,918 | |
| Total | 1,252,789 | 1,394,660 | 988,204 | 842,267 |
The Group is exposed to various types of financial risks in its business.
Financial risk refers to fluctuations in the company's earnings and cash flow due to changes in exchange rates, interest rates, refinancing and credit risks. The Group's financial policy for managing financial risks has been prepared by group management and provides guidance in the form of risk mandates and limits for financial activities. The overall objective of the Group's financial policy is to provide cost-effective financing and to minimise negative effects on the Group's profit which derive from market risks. The following is a general description of risks and uncertainties, as well as how they are managed.
Group management classifies risks into the categories credit risk, liquidity risk and market risk. Market risk is in turn divided into interest rate risk, currency risk and price risk, the latter refers to both purchases and sales. Group management has decided, in certain cases, to work with hedging instruments. The goal is to address the risks through currency and raw material clauses in agreements with customers and suppliers. The experience from renunciation of hedging for the said risks has not meant that management intends to change the current policy.
The Group's credit risk is mainly related to trade receivables and cash and cash equivalents. For cash and cash equivalents, banks are counterparties. The expected credit losses in cash and cash equivalents have been assessed as insignificant.
According to the credit policy, a credit assessment of new customers is performed. An assessment is done via an external credit rating when available, and payment history. The Group's average collection period for external trade receivables during the year was 60 (60) days. A change in the credit period of 1 day, with current turnover rate, means a change in working capital and cash flow of approximately SEK 16 million.
Other measures of the Group's credit risk is illustrated by the total exposure to individual customers. At closing, the single largest receivable was SEK 209 million (230). The net sales of the Group's two largest customers amounted to 28% (30) of total net sales.
The Group's maximum exposure to credit risk is limited to the above stated value of accounts receivable. The following tables show the time aspect of the risk exposure of overdue accounts receivable. The management of credit risks is decentralised.
The Group reports loss reserves for expected credit losses on financial assets valued at amortized cost. The Group has a policy for when losses are reported. When it is determined whether a financial asset's credit risk has increased significantly since the first accounting date and when calculating expected credit losses, the Group assumes reasonable and verifiable information that is relevant and available without unnecessary costs or efforts. This includes both quantitative and qualitative information, analysis based on the Group's historical experience, credit assessment and forward-looking information. See Note 2.14 for more information on impairment of financial assets.
| Specification of trade receivables | Total | Loss reserves | ||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Not overdue | 873,583 | 862,121 | 2,227 | 2,349 |
| Total overdue by 1 - 30 days | 89,631 | 134,532 | - | - |
| Total overdue by 31 - 90 days | 25,800 | 36,214 | - | 198 |
| Total overdue by 91 - 180 days | 6,765 | 11,746 | - | 174 |
| Total overdue by more than 180 days | 15,978 | 16,539 | 14,319 | 14,528 |
| Total | 1,011,758 | 1,061,152 | 16,546 | 17,249 |
Accounts receivable are denominated in Swedish kronor, approximately SEK 333.8 million (347.1), thereafter, the main currencies are EUR, CNY and USD - converted to Swedish kronor - amount to approximately SEK 496.1 million (508.5), SEK 66.1 million (72.9) and SEK 42.1 million (52.6) respectively.
Loss reserves on balance date are reported as a total of SEK 16.5 million (17.2), and the year's profit includes losses of SEK 1.0 million (2.6). The loss reserve is calculated on the expected loss percentage according to historical experience and specific conditions based on the maturity of the receivables.
| Non-current liabilities | Group | ||
|---|---|---|---|
| SEK thousands | 2020 | 2019 | |
| Bank loans | 214,685 | 217,805 | |
| Leasing liabilities | 191,364 | 224,606 | |
| Total | 406,049 | 442,411 |
| Current liabilities | Group | |
|---|---|---|
| SEK thousands | 2020 | 2019 |
| Overdraft facility | 6,388 | 65,931 |
| Bank loan | 307,431 | 325,407 |
| Current leasing liabilities | 76,841 | 82,666 |
| Total | 390,660 | 474,004 |
Liquidity risk is the risk that the Group may face problems meeting its obligations associated with financial liabilities. See specification of financial liabilities at previous page. The goal is for the Group to be able to meet its financial obligations in favourable and unfavourable markets without substantial unforeseen costs.
Liquidity risks and associated interest rate risk is managed centrally for the whole group. The rating agency Bisnode has given a rating of AAA for the company's borrowing.
The following table shows the maturity of the Group's financial liabilities. The column called nominal amount relates to future non-discounted cash flows.
| 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|
| SEK thousands | Currency | Nom inte rest rate |
Due | Nom. Amount |
Booked Amount |
Nom. Amount |
Booked Amount |
| Revolving facility | SEK | 1.40% | 2021 | 263,640 | 260,000 | 262,054 | 260,000 |
| Bank loan, current part | SEK | 1.14% | 2021 | 15,170 | 15,000 | 60,576 | 59,820 |
| Bank loan, non-current part (amortized SEK 15 million / quarter) |
SEK | 1.14% | 2021-2024 | 242,726 | 240,000 | 212,031 | 209,385 |
| Bank loan | SEK | 1.33% | 2021-2022 | 2,040 | 2,014 | 3,804 | 3,749 |
| Bank loan | CAD | 6.00% | 2021-2024 | 6,413 | 6,050 | 10,823 | 10,259 |
| Leasing liabilities | 1.0-5.0% | 2021-2050 | 289,617 | 268,205 | 316,661 | 307,272 | |
| Overdraft facility | SEK | 0.49% | 2021 | 105,395 | 104,881 | 160,896 | 160,096 |
| Overdraft facility | EUR | 0.49% | 2021 | - | - | - | - |
| Overdraft facility | PLN | 0.49% | 2021 | - | - | 2,531 | 2,518 |
| Overdraft facility | USD/CNY/CAD | 0.49% | 2021 | - | - | - | - |
| Overdraft facility | CAD | 3.00% | 2021 | 6,580 | 6,388 | 9,871 | 9,800 |
| Accounts payable - trade | 2021 | 439,457 | 439,457 | 464,700 | 464,700 | ||
| Other liabilities | 2021 | 16,623 | 16,623 | 13,545 | 13,545, | ||
| Total | 1,387,662 | 1,358,619 | 1,517,492 | 1,501,144 |
| SEK thousands | Group | |
|---|---|---|
| Maturity | 2020 | 2019 |
| 0-6 months | 35,253 | 37,740 |
| 7-12 months | 47,786 | 47,842 |
| Withing 1 year | 83,039 | 85,582 |
| 1-2 years | 69,444 | 63,590 |
| 2-5 years | 100,174 | 119,634 |
| Over 5 years | 36,961 | 47,854 |
| Total undiscounted lease liabilities 31/12/2020 | 289,617 | 316,661 |
| Current | 76,841 | 82,666 |
| Non-current | 191,364 | 224,606 |
| Leasing liabilities according to balance sheet 31/12/2020 | 268,205 | 307, 272 |
| B3CG | MiniCon | Total | |
|---|---|---|---|
| Opening balance 01/01/2020 | 32,073 | 900 | 32,973 |
| Paid during the year | -19,574 | -450 | -20,024 |
| Revaluation to fair value | -11,890 | -450 | -12,340 |
| Exchange differences | -610 | - | -610 |
The additional purchase price belonged to valuation level 3 and was valued at fair value.
Market risks include the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks are divided into interest rate risk, currency risk and other price risk. The market risks that primarily affect the Group are interest rate risk, currency risk and other price risks such as commodity prices.
The Group's interest rate risk relates to the Group's financing with credit institutions. All Financing with credit institutions currently occur with variable interest, which is connected to the bank's base rate, which is related to Swedish National Bank's Repo rate with the net debt as per 31/12/2020, a change of 1 percentage point has an impact of about SEK 3.5 million.
The Group also includes subsidiaries in the Euro area and Bulgaria, India, China, Mexico, Hungary, Poland, Serbia, USA, Canada and Brazil. Transactions, assets and liabilities denominated in foreign currencies are monitored centrally at AQ to create balance in each currency and thereby achieve maximum equalisation effect within the Group which thus minimises exchange rate effects. The group only uses hedging instruments in exceptional cases.
A decision to hedge is made centrally, after which managing it can take place at the subsidiary level.
Without considering price adjustments in the sales contracts, a change in exchange rate of 10% totally on yearly basis means an impact on sales of about SEK 339 million (341).
Sales in other currencies than SEK is about 70% (67) of turnover.
| Exchange rates Average exchange rate 2016 |
BGN 4.84 |
BRL - |
CAD - |
CNY 1.29 |
EUR 9.47 |
HKD - |
HUF 0.03 |
INR 0.13 |
MXN 0.46 |
NOK 1.02 |
PLN 2.17 |
RSD 0.08 |
THB 0.24 |
USD 8.56 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Closing day rate 2016 | 4.89 | - | - | 1.31 | 9.57 | - | 0.03 | 0.13 | 0.44 | 1.05 | 2.17 | 0.08 | 0.25 | 9.10 |
| Average exchange rate 2017 | 4.93 | - | - | 1.26 | 9.63 | 1.10 | 0.03 | 0.13 | 0.45 | 1.03 | 2.26 | 0.08 | 0.25 | 8.54 |
| Closing day rate 2017 | 5.04 | - | - | 1.26 | 9.85 | 1.05 | 0.03 | 0.13 | 0.42 | 1.00 | 2.36 | 0.08 | 0.25 | 8.23 |
| Average exchange rate 2018 | 5.24 | - | 6.71 | 1.31 | 10.26 | 1.11 | 0.03 | 0.13 | 0.45 | 1.07 | 2.41 | 0.09 | 0.27 | 8.69 |
| Closing day rate 2018 | 5.25 | - | 6.59 | 1.31 | 10.28 | 1.15 | 0.03 | 0.13 | 0.46 | 1.02 | 2.39 | 0.09 | 0.28 | 8.97 |
| Average exchange rate 2019 | 5.41 | 2.40 | 7.13 | 1.37 | 10.59 | 1.21 | 0.03 | 0.13 | 0.50 | 1.07 | 2.46 | 0.09 | 0.30 | 9.46 |
| Closing day rate 2019 | 5.33 | 2.30 | 7.13 | 1.33 | 10.43 | 1.20 | 0.03 | 0.13 | 0.50 | 1.06 | 2.44 | 0.09 | 0.31 | 9.32 |
| Average exchange rate 2020 | 5.36 | 1.81 | 6.86 | 1.33 | 10.49 | 1.19 | 0.03 | 0.12 | 0.43 | 0.98 | 2.36 | 0.09 | 0.29 | 9.20 |
| Closing day rate 2020 | 5.13 | 1.57 | 6.40 | 1.25 | 10.04 | 1.06 | 0.03 | 0.11 | 0.41 | 0.95 | 2.22 | 0.09 | 0.27 | 8.19 |
Upon a conversion of foreign subsidiaries' currencies to SEK, there is a conversion effect. A five percent change, assuming no changes elsewhere, changes the Group's profit by SEK 14.3 million.
Three currencies are responsible for most of the conversion exposure, PLN where a five percent change gives an effect before tax of SEK 4.2 million, EUR which has a corresponding effect on the earnings by SEK 4.8 million and BGN by SEK 4.1 million. Other exchange rate changes have a minor affect.
The net effect on equity of a five percent change against SEK is SEK 54.2 million (51.4), which consists of a change in the translation reserve. The change from the previous year is mainly due to the increased exposure of net assets in BGN, CNY and EUR.
Commodity price risk refers to the change in prices of input goods and its impact on earnings. For the Group, it mainly involves changes in raw materials which constitute a commodity price risk.
AQ does not buy direct raw materials but only semi-finished products for further manufacturing such as sheet metal of steel and aluminium,cables, insulated winding wire, etc.
The raw material part (LME guided part) of semi-finished goods is estimated to be SEK 43.7 million, with the following assumptions: Aluminum: 1,114 tonnes x USD 1,750 x 9.20 = SEK 17.9 million Copper: 457 tonnes x USD 6,125 x 9.20 = SEK 25.8 million
The risk is minimised by price clauses in customer contracts.
Unless otherwise stated below, the Parent Company's accounting policies in 2020 changed in accordance with what is stated for the Group.
IFRS 16 has an amendment regarding how tenants report rent reductions due to Covid-19. The rent reduction does not need to be accrued over the remaining rental period, but can be reported in the same period as the rent was reduced. The Group has chosen to apply this rule.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The board makes estimations and assessments concerning the future. Upon signing of the financial statements, the Group is not involved in any significant litigation. The Board, upon the establishment of the annual report for 2020, found no item that would be particularly vulnerable in terms of a risk which could induce significant adjustments for the coming year, also see notes 2.4, 2.5, 2.7, 2.11, 3 and 16.
The product composition in the segment Component includes transformers, wiring systems, mechanical parts, sheet metal processing and plastic injection molding. The product composition in the segment System includes production of systems, automation and power solutions, and the assembly of complete machines.
All group companies are driven by common goals for growth and profitability. This means that all trade between the companies is done on market terms (at arm's length, see note 2.15). Segment reporting does not include any adjustments for internal profit and consolidated trading with other segments, these amounts are included as reconciliation items together with real estate companies and the parent company's numbers in the matrix below, under the heading Unallocated and eliminations.
Segment reporting includes deferred tax liabilities in the total line for Equity. Negative goodwill is taken up its entirety under the heading Other operating income in the Group during the year of acquisition while it is matched against the accrual of capitalised balance sheet items in the Segment reporting. Two of the group's customers has generated revenues that constitute 10 percent or more each of the Group's total revenue. These revenues amounted to SEK 675 million (836) and SEK 675 million (705) and are included in both segments.
Reported amounts below reflect the financial reports that the company's executive decision makers, the CEO and the management team, review on a continuous basis and which make up the control parameters in the allocation of resources and assessment of performance. To the extent that there is reporting of assets and liabilities for segments below Group level, to the executive decision-maker,these are valued in the same way as in the annual report.
| Unallocated and | ||||
|---|---|---|---|---|
| 2020 SEK thousands | Component | System | eliminations | Group |
| External invoicing within Sweden | 1,459,558 | 435,804 | - | 1,895,362 |
| External invoicing outside Sweden | 2,251,401 | 672,238 | - | 2,923,639 |
| Internal invoicing, other segments | 327,713 | 190,778 | -518,491 | - |
| Total net turnover | 4,038,672 | 1,298,820 | -518,491 | 4,819,001 |
| Material costs, excl. purchases own segment | -1,998,086 | -889,440 | 428,907 | -2,458,619 |
| Depreciation | -204,439 | -28,896 | -661 | -233,996 |
| Other operating expenses/income | -1,568,626 | -243,095 | 86,573 | -1,725,148 |
| Operating profit | 267,520 | 137,389 | -3,672 | 401,238 |
| Net financial items | - | - | -32,134 | -32,134 |
| Profit before tax | 267,520 | 137,389 | -35,805 | 369,104 |
| Other comprehensive income plus tax | - | - | -193,629 | -193,629 |
| Comprehensive income for the year | 267,520 | 137,389 | -229,435 | 175,475 |
| Unallocated and | ||||
|---|---|---|---|---|
| 2019 SEK thousands | Component | System | eliminations | Group |
| External invoicing within Sweden | 1,637,673 | 475,342 | - | 2,113,015 |
| External invoicing outside Sweden | 2,324,803 | 674,784 | - | 2,999,587 |
| Internal invoicing, other segments | 376,985 | 149,967 | -526,952 | - |
| Total net turnover | 4,339,461 | 1,300,093 | -526,952 | 5,112,602 |
| Material costs, excl. purchases own segment | -2,181,004 | -923,470 | 449,810 | -2,654,664 |
| Depreciation | -195,463 | -24,040 | -687 | -220,191 |
| Other operating expenses/income | -1,718,564 | -249,988 | 71,300 | -1,897,252 |
| Operating profit | 244,430 | 102,595 | -6,530 | 340,495 |
| Net financial items | - | - | -19,084 | -19,084 |
| Profit before tax | 244,430 | 102,595 | -25,613 | 321,412 |
| Other comprehensive income plus tax | - | - | -38,658 | -38,658 |
| Comprehensive income for the year | 244,430 | 102,595 | -64,271 | 282,754 |
| Unallocated and | ||||
|---|---|---|---|---|
| 2020 SEK thousands | Component | System | eliminations | Group |
| Cash and cash equivalents (incl. short-term investments) | 518,396 | 111,314 | -178,165 | 451,545 |
| Trade and other recievables | 752,406 | 242,803 | 2 | 995,212 |
| Inventories | 651,677 | 167,206 | -3,152 | 815,731 |
| Tangible assets in Sweden | 144,235 | 44,171 | -2,328 | 186,078 |
| Tangible assets in other countries | 659,930 | 66,678 | - | 726,608 |
| Other assets | 801,644 | 71,614 | -183,969 | 689,289 |
| Total assets | 3,528,288 | 703,787 | -367,611 | 3,864,463 |
| Current liabilities | 931,744 | 274,560 | -39,998 | 1,166,306 |
| Non-current liabilities | 378,103 | 32,784 | 96,639 | 507,525 |
| Equity | 2,218,441 | 396,443 | -424,252 | 2,190,632 |
| Total liabilities and equity | 3,528,288 | 703,787 | -367,611 | 3,864,463 |
| Unallocated and | ||||
|---|---|---|---|---|
| 2019 SEK thousands | Component | System | eliminations | Group |
| Cash and cash equivalents (incl. short-term investments) | 323,193 | 62,149 | -224,019 | 161,323 |
| Trade and other recievables | 812,882 | 231,021 | - | 1,043,903 |
| Inventories | 714,080 | 179,706 | -3,835 | 889,952 |
| Tangible assets in Sweden | 169,619 | 44,131 | -824 | 212,925 |
| Tangible assets in other countries | 736,895 | 62,348 | - | 799,243 |
| Other assets | 804,702 | 48,652 | -108,395 | 744,959 |
| Total assets | 3,561,371 | 628,007 | -337,073 | 3,852,305 |
| Current liabilities | 1,078,302 | 297,935 | -124,732 | 1,251,506 |
| Non-current liabilities | 374,135 | 35,134 | 176,374 | 585,642 |
| Equity | 2,108,933 | 294,939 | -388,715 | 2,015,157 |
| Total liabilities and equity | 3,561,371 | 628,007 | -337,073 | 3,852,305 |
Contract liabilities amount to SEK 36.2 million (28.8). They consist of advance payments from customers.
| Unallocated and | ||||
|---|---|---|---|---|
| 2020 SEK thousands | Component | System | eliminations | Group |
| Sweden | 961,105 | 785,899 | 43,442 | 1,790,446 |
| Other European Countries | 2,468,970 | 316,934 | - | 2,785,904 |
| Other countries | 608,597 | 195,987 | - | 804,584 |
| Net sales | 4,038,672 | 1,298,820 | 43,442 | 5,380,934 |
| Internal sales, eliminations | - | - | -561,933 | -561,933 |
| Total net turnover | 4,038,672 | 1,298,820 | -518,491 | 4,819,001 |
| Unallocated,and, | ||||
|---|---|---|---|---|
| 2019 SEK thousands | Component | System | eliminations | Group |
| Sweden | 1,146,703 | 822,634 | 43,113 | 2,012,451 |
| Other European Countries | 2,519,117 | 334,105 | - | 2,853,222 |
| Other countries | 673,640 | 143,354 | - | 816,994 |
| Net sales | 4,339,461 | 1,300,093 | 43,113 | 5,682,667 |
| Internal sales, eliminations | - | - | -570,065 | -570,065 |
| Total net turnover | 4,339,461 | 1,300,093 | -526,952 | 5,112,602 |
Geographical markets are based on where AQ's subsidiaries have their locations.
Sales are based on where the customer is located. Non-current assets are based on where the assets are located. No financial assets are included in the table
| Group | ||||
|---|---|---|---|---|
| SEK thousands | Sales | Tangible and intangible assets | ||
| Country | 2020 | 2019 | 2020 | 2019 |
| Sweden | 1,895,362 | 2,113,015 | 229,459 | 262,904 |
| Germany | 346,633 | 393,080 | - | - |
| Finland | 409,977 | 369,171 | 177,186 | 203,890 |
| Estonia | 88,033 | 183,333 | 193,644 | 224,665 |
| France | 139,646 | 165,945 | - | - |
| Poland | 165,097 | 141,822 | 130,341 | 163,404 |
| Netherlands | 96,050 | 112,003 | - | - |
| Hungary | 117,297 | 106,829 | 164,317 | 192,239 |
| Denmark | 155,719 | 100,820 | - | - |
| Belgium | 77,707 | 100,433 | - | - |
| Spain | 79,268 | 74,876 | - | - |
| Norway | 71,251 | 70,645 | - | - |
| Italy | 48,953 | 71,910 | 4,059 | 4,642 |
| Great Britain | 62,107 | 66,726 | - | - |
| Bulgaria | 31,125 | 30,777 | 129,462 | 123,420 |
| Lithuania | 9,783 | 7,196 | 99,846 | 105,595 |
| Serbia | 523 | 1,068 | 6,295 | 5,555 |
| Other countries in Europe | 127,692 | 101,950 | - | - |
| China | 410,237 | 372,396 | 58,140 | 48,816 |
| India | 102,961 | 75,533 | 26,616 | 36,479 |
| Thailand | 10,959 | 32,745 | - | - |
| Singapore | 15,738 | 19,767 | - | - |
| Hong Kong | 898 | 706 | - | - |
| Other countries in Asia | 24,872 | 13,549 | - | - |
| USA | 175,280 | 184,810 | 43,386 | 53,652 |
| Canada | 112,677 | 130,397 | 129,411 | 122,056 |
| Mexico | 15,245 | 27,867 | 15,348 | 17,035 |
| Other countries in Central America | 1,389 | 2,410 | - | - |
| Brazil | 9,021 | - | 13,695 | 18,141 |
| Other countries in South America | 260 | 11,305 | - | - |
| Australia | 8,675 | 20,084 | - | - |
| Africa | 8,568 | 9,436 | - | - |
| Total | 4,819,001 | 5,112,602 | 1,421,206 | 1,582,491 |
| Group | Parent company | ||||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| Exchange gains from operations, realised | 33,183 | 20,995 | 234 | 312 | |
| Exchange gains from operations, unrealised | 8,179 | 9,390 | 1 | - | |
| Capital gains on non-current assets | 940 | 896 | - | 0 | |
| Recovery of previously impaired trade and other receivables | 405 | 2,058 | - | - | |
| Rental income | 91 | 186 | - | - | |
| Sale of scrap and obsolete material | 19,580 | 27,112 | - | - | |
| Goverment grants 1) | 37,873 | 9,824 | - | - | |
| Other operating income 1,2) | 53,117 | 14,397 | 4,476 | 1,900 | |
| Total | 153,368 | 84,857 | 4,711 | 2,212 |
1) Received subsidies for Covid-19 are included.
2) Other operating income includes received insurance compensation, subsidies etc.
| 8.1 Remuneration to auditors |
Group | Parent company | |||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| KPMG | |||||
| Audit assignment | 2,674 | 2,055 | 691 | 445 | |
| Audit-related assignments | 62 | - | - | - | |
| Tax consultation/Other services | 18 | 338 | 18 | 192 | |
| 2,754 | 2,393 | 709 | 637 | ||
| PWC | |||||
| Audit assignment | - | 310 | - | - | |
| Audit-related assignments | - | 20 | - | - | |
| - | 330 | - | - | ||
| BDO | |||||
| Audit assignment | 983 | 429 | - | - | |
| 983 | 429 | - | - | ||
| Demers Beaulne | |||||
| Audit assignment | 1,119 | 957 | - | - | |
| 1,119 | 957 | - | - | ||
| FangBen CPA | |||||
| Audit assignment | 14 | 196 | - | - | |
| Tax consultation/Other services | 15 | 139 | - | - | |
| 29 | 335 | - | - | ||
| Other | |||||
| Audit assignment | 818 | 746 | - | - | |
| Audit-related assignments | 450 | - | - | - | |
| Tax consultation/Other services | 241 | 264 | - | - | |
| 1,509 | 1,010 | - | - | ||
| Total | 6,394 | 5,454 | 709 | 637 |
The audit assignment refers to the review of the annual report and accounting and the Board's and the CEO's management, which results in the established audit report. In addition, information is provided regarding compensation separately for audit activities and audit assignments besides audit tasks and tax services and other services, which may have been assigned to the main auditing company to process during the fiscal year.
The Group's leasing agreements mainly consist of properties used for production and offices.
| Right-of-use assets and lease liabilities | Group | ||||
|---|---|---|---|---|---|
| Reported value of right-of-use assets | 2020 | ||||
| SEK thousands | Real estate | Machinery | Vehicles | IT equipment | Total |
| Opening balance 01/01/2020 | 289,200 | 7,045 | 8,134 | 910 | 305,289 |
| Depreciation during the year | -80,834 | -2,562 | -3,413 | -715 | -87,524 |
| Closing value per December 31, 2020 | 253,862 | 5,442 | 4,891 | 336 | 264,530 |
| Right-of-use assets and lease liabilities | Group | ||||
|---|---|---|---|---|---|
| Reported value of right-of-use assets | 2019 | ||||
| SEK thousands | Real estate | Machinery | Vehicles | IT equipment | Total |
| Opening balance 01/01/2019 | 268,518 | 7,091 | 8,102 | 1,378 | 285,089 |
| Depreciation during the year | -76,199 | -1,701 | -2,861 | -841 | -81,603 |
| Closing value per December 31, 2019 | 289,200 | 7,045 | 8,134 | 910 | 305,289 |
During the year, acquisitions of right-of-use assets were made of SEK 63 million (105). The amount includes new contracts and increased payments due to an extended lease period. Last year new contracts of SEK 76 million were included in the acquisition of the Trafotek Group and MiniCon AB.
See note Note 3 where information regarding leasing liabilities can be found.
| Cost information | ||
|---|---|---|
| The income statement includes the following costs | Group | |
| SEK thousands | 2020 | 2019 |
| Depreciation of right-of-use assets | -87,524 | -81,603 |
| Interest on lease liabilities | -4,807 | -4,761 |
| Costs for short term leases | -4,343 | -5,229 |
| Costs for leases of lesser value | -1,653 | -1,424 |
| -98,328 | -93,017 |
| Group | ||
|---|---|---|
| Amounts reported in the cash flow report SEK thousands | 2020 | 2019 |
| Total cash flows attributable to lease agreements | -97,176 | -92,071 |
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| Average number of employees | Women | Men | Total | Women | Men | Total |
| Parent company, Sweden | 15 | 8 | 23 | 13 | 9 | 22 |
| Subsidiaries, Sweden | 173 | 598 | 771 | 237 | 597 | 834 |
| Brazil | 2 | 3 | 5 | 1 | 3 | 4 |
| Bulgaria | 645 | 588 | 1,233 | 695 | 613 | 1,308 |
| Estonia | 152 | 429 | 581 | 152 | 444 | 596 |
| Finland | 32 | 155 | 187 | 40 | 175 | 215 |
| India | 13 | 124 | 137 | 10 | 119 | 129 |
| Italy | 7 | 11 | 18 | 7 | 14 | 21 |
| Canada | 112 | 52 | 164 | 114 | 52 | 166 |
| China | 262 | 310 | 572 | 189 | 289 | 478 |
| Lithuania | 462 | 143 | 605 | 608 | 151 | 759 |
| Mexico | 125 | 75 | 200 | 162 | 34 | 196 |
| Poland | 544 | 396 | 940 | 656 | 467 | 1,123 |
| Serbia | - | 4 | 4 | 23 | 12 | 35 |
| Germany | - | 3 | 3 | - | 3 | 3 |
| Hungary | 85 | 291 | 376 | 79 | 284 | 363 |
| USA | 27 | 45 | 72 | 31 | 47 | 78 |
| Total | 2,656 | 3,235 | 5,891 | 3,017 | 3,313 | 6,330 |
| Gender distribution, executive officers | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Board | Women | Men | Total | Women | Men | Total |
| Parent company | 29% | 71% | 100 % | 29 % | 71 % | 100 % |
| Group | 14% | 86% | 100 % | 14 % | 86 % | 100 % |
| Group management and CEO | Women | Men | Total | Women | Men | Total |
| Parent company | 33% | 67% | 100 % | 36 % | 64 % | 100% |
| Group | 25% | 75% | 100 % | 25 % | 75 % | 100% |
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Salaries and remunertions, SEK thousands | |||||
| Sweden | |||||
| Board, CEO and other executive officers 1) | 46,230 | 36,065 | 12,781 | 12,777 | |
| Other employees | 271,869 | 299,458 | 9,156 | 8,853 | |
| Total in Sweden | 318,099 | 335,523 | 21,937 | 21,630 | |
| 1) Of which bonuses and the like to executive officers | 7,983 | 6,383 | 3,748 | 2,686 | |
| Other countries | |||||
| Board and CEO 1) | 56,441 | 55,175 | - | - | |
| Other employees | 711,505 | 730,867 | - | - | |
| Subsidiaries in other countries | 767,946 | 786,042 | - | - | |
| 1) Of which bonuses and the like to executive officers | 7,331 | 5,472 | - | - | |
| Total | |||||
| Board, CEO and other executive officers 1) | 102,671 | 91,240 | 12,781 | 12,777 | |
| Other employees | 983,374 | 1,030,324 | 9,156 | 8,853 | |
| Total | 1,086,045 | 1,121,564 | 21,937 | 21,630 | |
| 1) Of which bonuses and the like to executive officers. | 15,314 | 11,855 | 3,748 | 2,686 | |
| Payroll overhead, SEK thousands | |||||
| Sweden | |||||
| Pension expenses for Board, CEO and other executive officers | 7,663 | 7,300 | 3,430 | 2,391 | |
| Pension expenses for other employees | 17,961 | 18,222 | 997 | 826 | |
| Other payroll overhead | 100,741 | 113,669 | 7,914 | 7,159 | |
| Total in Sweden | 126,365 | 139,191 | 12,341 | 10,376 | |
| Other countries | |||||
| Pensions expenses for Board and CEO | 1,225 | 1,542 | - | - | |
| Pension expenses for other employees | 40,816 | 48,324 | - | - | |
| Other payroll overhead | 60,631 | 61,348 | - | - | |
| Subsidiaries in other countries | 102,673 | 111,214 | - | - | |
| Total | |||||
| Pensions expenses for Board and CEO | 8,888 | 8,842 | 3,430 | 2,391 | |
| Pension expenses for other employees | 58,777 | 66,547 | 997 | 826 | |
| Other payroll overhead | 161,372 | 175,017 | 7,914 | 7,159 | |
| Total | 229,037 | 250,406 | 12,341 | 10,376 |
| Remuneration to the Board, CEO and Group management SEK thousands |
Basic salary/fee |
Variable remuneration |
Other benefits |
Pension expenses |
Total |
|---|---|---|---|---|---|
| 2020 | |||||
| Chairman of the Board, Patrik Nolåker | 500 | - | - | - | 500 |
| Board member, Ulf Gundemark | 240 | - | - | - | 240 |
| Board member, Annika Johansson Rosengren | 200 | - | - | - | 200 |
| Board member, Claes Mellgren | 240 | - | - | - | 240 |
| Board member, Gunilla Spongh | 300 | - | - | - | 300 |
| Board member, Per Olof Andersson | 230 | - | - | - | 230 |
| Board member, Lars Wrebo | 200 | - | - | - | 200 |
| CEO, Anders Carlsson | 2,278 | 1,793 | 64 | 785 | 4,920 |
| Other executive officers, eleven | 11,846 | 4,490 | 388 | 3,070 | 19,794 |
| Total | 16,034 | 6,283 | 452 | 3,855 | 26,624 |
| Remuneration to the Board, CEO and Group management SEK thousands |
Basic salary/fee |
Variable remuneration |
Other benefits |
Pension expenses |
Total |
|---|---|---|---|---|---|
| 2019 | |||||
| Chairman of the Board, Patrik Nolåker | 500 | - | - | - | 500 |
| Board member, Ulf Gundemark | 240 | - | - | - | 240 |
| Board member, Annika Johansson Rosengren | 200 | - | - | - | 200 |
| Board member, Claes Mellgren | 240 | - | - | - | 240 |
| Board member, Gunilla Spongh | 300 | - | - | - | 300 |
| Board member, Per Olof Andersson | 230 | - | - | - | 230 |
| Board member, Lars Wrebo | 200 | - | - | - | 200 |
| CEO, Anders Carlsson | 2,231 | 1,189 | 70 | 722 | 4,212 |
| Other executive officers, ten, | |||||
| whereof BA-managers part of the year | 6,764 | 1,922 | 316 | 2,140 | 11,142 |
| Total | 10,905 | 3,111 | 386 | 2,862 | 17,265 |
No special pension benefits or severance pay agreements exist generally, in addition to normal pensions.
The Board's proposed guidelines for remuneration in 2021, according to Chapter 8, § 51 of the Swedish Companies Act, are presented in the management report. The remuneration paid to senior executives in 2020 are presented in the note.
The following decision on guidelines for remuneration in 2020 was made at the previous AGM; AQ Group AB has no incentive programme. Variable remuneration to AQ Group AB's management group consists of a variable cash salary (bonus). The AGM 2020 adopted the following principles for variable cash compensation: In addition to a fixed salary, variable remuneration, when applicable, shall be offered and linked to predetermined and clearly set measurable target criteria with the aim of promoting the company's long-term value creation. The remuneration may be paid in cash or additional premium payments to pension insurance. The total amount of variable remuneration shall not exceed the fixed salary paid to the executive concerned. The Board may deviate from the guidelines in individual cases should special reasons exist.
Anders Carlsson will leave his position as President and CEO on March 31, 2021 as agreed on December 8, 2020, and thereafter no duty to work until the end of the notice period of December 5, 2021. Remunerations during the notice period including benefits and pension provision continue under the same conditions as before but no costs related to this are included in the amounts shown in the table above. As regards variable remuneration, pro rata will be paid for the period January-March 2021. In the case of other full-time employment during the notice period, the remuneration from AQ Group shall be reduced by an amount corresponding to the new income during the period of termination pay. The cost of remuneration including benefits and pension provisions during the notice period without a duty to work amounts to SEK 2,745 thousands and has been expensed in 2020.
| Parent company | ||
|---|---|---|
| SEK thousands | 2020 | 2019 |
| Dividends from group companies | 79,728 | 158,046 |
| Impairment losses from shares in subsidiaries | -4,600 | -18,241 |
| Total | 75,128 | 139,805 |
| Write-downs | 2020 | 2019 |
| AQ Mechanical & Electrical Manuf India Pvt.Ltd | -4,600 | -16,117 |
| AQ Inductive Components India Pvt. Ltd | - | -2,124 |
| Total | -4,600 | -18,241 |
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Interest income, trade and other receivables | 346 | 1,150 | - | - |
| Interest income from Group companies | - | - | 7,956 | 7,856 |
| Other interest income 1) | 4,519 | 698 | 2,979 | 19 |
| Exchange rate gains, realized | 5,734 | 2,845 | - | 3 |
| Exchange rate gains, not realized | 5,269 | 6,023 | 2,923 | 4,164 |
| Total | 15,869 | 10,716 | 13,857 | 12,042 |
1) Valuation of forward agreements are included in the amount of SEK thousands 2,959 ( - ), see note 12.
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Interest expenses, trade and other payables | -266 | -464 | - | - |
| Interest expenses to Group companies | - | - | -1,158 | -858 |
| Other interest expenses1) | -19,065 | -14,775 | -10,607 | -6,944 |
| Exchange rate losses, realised | -5,337 | -5,488 | -1,126 | -1,574 |
| Exchange rate losses, unrealised | -23,335 | -9,073 | -24,403 | -5,380 |
| Total | -48,002 | -29,800 | -37,293 | -14,756 |
1) Valuation of forward agreements are included in the amount of SEK thousands 0 (-1,075), see note 11. No other interest expenses are attributable to items valued to fair value.
| SEK thousands | Parent company | |
|---|---|---|
| 2020 | 2019 | |
| Excess depreciation | - | 354 |
| Change in tax allocation reserve | 24,000 | 300 |
| Group contribution, received | 25,100 | 47,000 |
| Group contribution, paid | 22,000 | -20,000 |
| Total | 27,100 | 27,654 |
| Group | Parent company | ||||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| Current tax for the year | -61,897 | -57,706 | -22 | -5,580 | |
| Deferred tax | 11,172 | 1,873 | -619 | 225 | |
| Withholding tax on dividend | -501 | -2,708 | - | -3,159 | |
| Tax recorded for the period | -51,226 | -58,541 | -641 | -8,514 | |
| Specification of recorded tax | |||||
| Recorded profit before tax | 369,104 | 321,412 | 74,421 | 161,772 | |
| Estimated tax based on applicable tax rate in Sweden 21,4 % | -78,988 | -68,782 | -15,926 | -34,619 | |
| Tax effect of: | |||||
| Standard taxation, tax allocation reserve | -383 | -265 | -210 | -110 | |
| Non-deductible expenses | -3,951 | -7,218 | -2,200 | -3,970 | |
| Non-taxable income | 6,214 | 3,588 | 17,695 | 33,821 | |
| Adjusted tax from previous year | 1,103 | 495 | - | -477 | |
| Effect of other tax rates in foreign companies | 27,407 | 16,014 | - | - | |
| Change in non-recorded tax loss carryforwards | -4,893 | -3,428 | - | - | |
| Utilisation of tax loss carryforwards not previously capitalized | 945 | 3,854 | - | - | |
| Effect of changed tax rates | 1,231 | - | - | - | |
| Other | 590 | -90 | - | - | |
| -50,725 | -55,833 | -641 | -5,355 | ||
| Withholding tax on dividend | -501 | -2,708 | - | -3,159 | |
| Tax recorded for the period | -51,226 | -58,541 | -641 | -8,514 |
| Group | |||
|---|---|---|---|
| SEK thousands | 2020 | 2019 | |
| Non-recorded tax loss carryforwards | 72,422 | 104,471 | |
| Expires: | |||
| 2020 | - | 2,096 | |
| 2021 | 11,555 | 19,000 | |
| 2022 | 6,651 | 24,098 | |
| 2023 | 6,420 | 20,955 | |
| 2024 | 15,051 | 12,033 | |
| 2025 | 13,207 | - | |
| Later | 19,537 | 26,289 | |
| Total | 72,422 | 104,471 |
Non-recorded tax loss carryforwards relate primarly to subsidiaries in India and Mexico, which are in establishment phase and where it is currently not possible to convincingly assess where companies will be able to use them to offset future profits. The parent company has no tax loss.
11,734 24,152 -619 225
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Deferred tax asset | ||||
| Tangible assets | 1,833 | 1,633 | - | - |
| Inventories | 2,477 | 2,097 | - | - |
| Loss carry forwards | 23,602 | 41,182 | - | - |
| Other 1) | 26,077 | 9,332 | - | 267 |
| 53,990 | 54,244 | - | 267 | |
| 1) Included in Other are receivable write-downs and exchange rate differences | ||||
| Deferred tax liability | ||||
| Intangible assets | 38,005 | 46,367 | - | - |
| Tangible assets | 11,198 | 10,697 | - | - |
| Untaxed reserves | 33,604 | 38,212 | - | - |
| Others | 1,486 | 1,005 | 353 | - |
| 84,293 | 96,281 | 353 | - | |
| Change in deferred tax | ||||
| Reorded in the income statement | 11,172 | 1,873 | -619 | 225 |
| Acquisition of subsidiaries, surplus values | - | 28,187 | - | - |
Acquisition of subsidiaries, untaxed reserves - -4,352 - - Translation difference 561 -1,556 - -
| Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||
| SEK thousands | Customer relations |
Technology | Other | Total | Customer relations |
Technology | Other | Total |
| Opening accumulated cost of acquisition |
153,377 | 116,555 | 68,162 | 338,094 | 118,313 | 76,397 | 48,788 | 243,498 |
| Direct investments for the year | - | - | 8,097 | 8,097 | - | 44 | 3,316 | 3,360 |
| Acquisition of subsidiaries | - | - | - | - | 33,472 | 38,114 | 11,008 | 82,594 |
| Sales/retirements | - | - | -1 856 | -1 856 | - | - | -33 | -33 |
| Reclassifications | - | - | - | - | - | - | 4,356 | 4,356 |
| Translation difference | -11,321 | -8,517 | -3,991 | -23,829 | 1,593 | 2,001 | 726 | 4,320 |
| Closing accumulated cost of acquisition |
142,056 | 108,038 | 70,413 | 320,507 | 153,377 | 116,555 | 68,162 | 338,094 |
| Opening depreciation | -44,318 | -18,661 | -58,040 | -121,018 | -28,522 | -8,388 | -41,920 | -78,830 |
| Acquisition of subsidiaries | - | - | - | - | - | - | -9,380 | -9,380 |
| Sales/retirements | - | - | 1,660 | 1,660 | - | - | 34 | 34 |
| Reclassifications | - | - | - | - | - | - | -1,125 | -1,125 |
| Translation difference | 4,613 | 2,357 | 3,208 | 10,178 | -215 | 28 | -477 | -664 |
| Depreciation for the year | -17,843 | -11,568 | -3,639 | -33,050 | -15,580 | -10,301 | -5,170 | -31,051 |
| Closing accumulated depreciation |
-57,549 | -27,872 | -56,811 | -142,231 | -44,318 | -18,661 | -58,040 | -121,018 |
| Closing planned residual value | 84,508 | 80,166 | 13,602 | 178,276 | 109,060 | 97,894 | 10,122 | 217,076 |
| Group | ||
|---|---|---|
| SEK thousands | 2020 | 2019 |
| Opening accumulated cost of acquisition | 356,013 | 275,039 |
| Acquisition of subsidiaries | - | 76,969 |
| Sales/retirements | -955 | - |
| Translation difference | -22,291 | 4 ,005 |
| Closing accumulated costs of acquisition | 332,768 | 356,013 |
| Opening accumulated write-downs | -2,767 | -2,726 |
| Write-down for the year | -716 | - |
| Sales/retirements | 716 | - |
| Translation difference | 244 | -41 |
| Closing accumulated write-downs | 2,523 | -2,767 |
| Closing residual value | 330,244 | 353,246 |
During 2020 no acquisitions were made. More information on the acquisitions made in 2019 can be found in Note 31.
Management annually investigates whether any amortisation need exists in terms of goodwill. The recoverable amount of the underlying cash generating unit AQ Wiring Systems UAB, AQ Anton Kft., AQ Industrial Systems AB with subsidiaries (formerly Gerdins), AQ Mecanova OY, B3CG Interconnect and LTI Holding Oy with subsidiaries (Trafotek group) has been determined based on a calculation of the Group's value in use. There are no indications of decreased value. Other goodwill items are of lesser value.
The following cash-generating units have significant reported goodwill values in relation to the Group's total goodwill:
| 2020 | 2019 | |
|---|---|---|
| AQ Wiring Systems UAB | 70,202 | 72,973 |
| AQ Anton Kft | 41,223 | 47,219 |
| AQ Industrial Systems (f.d Gerdins) | 23,589 | 24,890 |
| AQ Mecanova OY | 44,304 | 46,053 |
| B3CG Interconnect | 68,319 | 76,596 |
| Trafotek | 71,292 | 74,105 |
The calculation was made based on estimated future cash flows equivalent to a four-year period. Cash flows beyond the four-year period have been extrapolated using an estimated growth rate of 2%.
| Estimated growth of cash flow beyond a four-year period |
Discount rate, before tax |
Discount rate, after tax |
|
|---|---|---|---|
| AQ Wiring Systems | 2% (2%) | 8% (8%) | 7% (7%) |
| AQ Anton Kft | 2% (2%) | 8% (8%) | 7% (7%) |
| AQ Industrial Systems (f.d Gerdins) | 2% (2%) | 9% (8%) | 7% (6%) |
| AQ Mecanova OY | 2% (2%) | 9% (8%) | 7% (6%) |
| B3CG Interconnect | 2% (2%) | 11% (10%) | 8% (7%) |
| Trafotek | 2% (2%) | 8% (8%) | 7% (6%) |
| Important variables Market share and growth |
Method used to estimate value The forecast for growth is based on the group's historic growth. The total market is expected to grow during the forecast period. Business areas' share of the total market is marginal. |
|---|---|
| Operating expenses | Operating expenses are estimated based on the planned operations for the forecast period, and reflect previous experience |
| Discount rate | The discount rate is prepared through a weighted average cost of capital for AQ Group and reflects current market assessments of the time value of money and the risks specifically related to AQ Group and thereaf ter take into account the risk of each tested entity. |
| Currency rates | Currency conversion has been performed at current exchange rates published by the riksbank in Sweden. |
The recoverable amount of AQ Wiring Systems UAB, AQ Anton Kft., AQ Industrial Systems AB with subsidiaries (formerly Gerdins), Mecanova OY, B3CG Interconect and LTI Holding Oy with subsidiaries (Trafotek group) exceeds the reported value by a significant amount. Management believes that no reasonable changes in the key assumptions may lead to the recovery value being lower than their reported value.
| Group | |||
|---|---|---|---|
| 2020 | 2019 | ||
| Opening cost of acquisition | 320,636 | 254,403 | |
| Direct investments for the year | 3,999 | 21,199 | |
| Acquisition of subsidiaries | - | 7,231 | |
| Sales/retirements | -12,667 | -4,396 | |
| Reclassifications | 44,540 | 41,515 | |
| Translation difference | -16,518 | 685 | |
| Closing accumulated cost of acquisition | 339,990 | 320,636 | |
| Opening accumulated depreciation | -93,531 | -79,754 | |
| Acquisition of subsidiaries | - | -6,408 | |
| Sales/retirements | 4,779 | 4,133 | |
| Translation difference | 3,904 | -261 | |
| Depreciation for the year | -13,280 | -11,241 | |
| Closing accumulated depreciation | -98,127 | -93,531 | |
| Closing planned residual value | 241,863 | 227,106 |
| Group | Parent company | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| SEK thousands | Machinery and equipment |
Machinery and equipment |
Leased machinery |
Leased machinery |
| Opening accumulated cost of acquisition | 865,415 | 607,209 | - | 1,897 |
| Direct investments for the year | 36,428 | 77,060 | - | - |
| Acquisition of subsidiaries | - | 199,267 | - | - |
| Sales/retirements | -22,924 | -33,751 | - | -1,897 |
| Reclassifications | 50,700 | 16,099 | - | - |
| Translation difference | -70,117 | -468 | - | - |
| Closing accumulated cost of acquisition | 859,502 | 865,415 | - | - |
| Opening accumulated depreciation | -498,054 | -309,966 | - | -532 |
| Acquisition of subsidiaries | - | -134,665 | - | - |
| Sales/retirements | 17,558 | 20,195 | - | 532 |
| Reclassifications | -17,306 | -136 | - | - |
| Translation difference | 46,320 | 1,763 | - | - |
| Depreciation for the year | -81,663 | -75,245 | - | - |
| Closing accumulated depreciation | -533,145 | -498,054 | - | - |
| Opening accumulated impairment | -220 | -217 | - | - |
| Amortisation for the year | - | - | - | - |
| Translation difference | 8 | -3 | - | - |
| Closing accumulated impairment | -212 | -220 | - | - |
| Closing planned residual value | 326,145 | 367,142 | - | - |
| Group | Parent company | ||||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| Opening accumulated cost of acquisition | 210,986 | 168,883 | 59 | 59 | |
| Direct investments for the year | 17,315 | 32,107 | - | - | |
| Acquisition of subsidiaries | - | 21,309 | - | - | |
| Sales/retirements | -9,756 | -13,006 | -59 | - | |
| Reclassifications | -31,080 | -336 | - | - | |
| Translation difference | -13,662 | 2,027 | - | - | |
| Closing accumulated cost of acquisition | 173,803 | 210,986 | - | 59 | |
| Opening accumulated depreciation | -140,045 | -113,953 | -59 | -59 | |
| Acquisition of subsidiaries | - | -17,356 | - | - | |
| Sales/retirements | 7,613 | 10,398 | 59 | - | |
| Reclassifications | 17,306 | 1,125 | - | - | |
| Translation difference | 8,994 | -1,310 | - | - | |
| Depreciation for the year | -17,763 | -18,950 | - | - | |
| Closing accumulated depreciation | -123,894 | -140,045 | - | -59 | |
| Closing plannes residual value | 49,909 | 70,941 | - | - |
| Koncernen | |||
|---|---|---|---|
| SEK thousands | 2020 | 2019 | |
| Opening accumulated cost of acquisition | 41,690 | 35,324 | |
| Direct investments for the year | 56,381 | 69,082 | |
| Acquisition of subsidiaries | - | 53 | |
| Sales/retirements | - | -975 | |
| Reclassifications | -64,996 | -61,558 | |
| Translation difference | -2,837 | -236 | |
| Closing accumulated costs of acquisition | 30,239 | 41,690 | |
| Opening accumulated depreciation | - | - | |
| Depreciation for the year | - | - | |
| Closing accumulated depreciation | - | - | |
| Closing planned residual value | 30,239 | 41,690 |
| SEK thousands 2020 Opening cost of acquisition 1,207,004 Shareholder contribution 55,923 Investment in subsidiaries -11,890 Closing accumulated costs of acquisition 1,251,037 Opening accumulated impairment -128,250 Impairment losses 1) -4,600 Closing accumulated amortisation -132,850 Closing book value 1,118,188 |
Parent company | |
|---|---|---|
| 2019 | ||
| 896,073 | ||
| 15,499 | ||
| 295,432 | ||
| 1,207,004 | ||
| -110,009 | ||
| -18,241 | ||
| -128,250 | ||
| 1,078,755 |
1) Refer to note 10.
| Companies | Corp. ID no. | Number of participa tion rights |
Share of equity |
Share of votes |
Book value SEK thousands |
|---|---|---|---|---|---|
| AQ Fastighet Tokarp AB, Gislaved, Sweden | 556220-0195 | 1,000 | 100% | 100% | 3,578 |
| AQ Fastighet i Pålsboda AB, Eskilstuna, Sweden | 556275-6212 | 14,200 | 100% | 100% | 5,580 |
| AQ Fastighet i Lund AB, Lund, Sweden | 556527-5228 | 10,000 | 100% | 100% | 3,942 |
| AQ Fastighet i Lyrestad AB, Eskilstuna, Sweden | 556443-9734 | 15,000 | 100% | 100% | 0 |
| AQ Fastighet i Torslanda AB, Göteborg, Sweden | 556690-3018 | 1,000 | 100% | 100% | 100 |
| AQ Elautomatik AB, Västerås, Sweden | 556272-8484 | 1,000 | 100% | 100% | 4,457 |
| AQ M -Tech AB, Uppsala, Sweden | 556358-1411 | 1,000 | 100% | 100% | 2,435 |
| AQ Enclosure Systems AB, Vaggeryd, Sweden | 556660-1844 | 20,000 | 100% | 100% | 2,000 |
| AQ Trafo AB, Enköping, Sweden | 556443-9726 | 26,000 | 100% | 100% | 0 |
| AQ Mekatronik AB, Västerås, Sweden | 556666-7829 | 1,000 | 100% | 100% | 100 |
| AQ ParkoPrint AB, Gävle, Sweden | 556574-6319 | 20,000 | 100% | 100% | 17,314 |
| - AQ Fastigheter i Gävle AB, Gävle, Sweden | 556448-3385 | ||||
| AQ Plast AB, Västerås, Sweden | 556497-2239 | 3,000 | 100% | 100% | 4,400 |
| AQ Special Sheet Metal AB, Hallsberg, Sweden | 559138-9753 | 1,000 | 100% | 100% | 45 100 |
| AQ Engineering AB, Göteborg, Sweden | 556622-8697 | 1,050 | 100% | 100% | 2,105 |
| AQ Welded Structures AB, Ludvika, Sweden | 556660-2016 | 1,000 | 100% | 100% | 100 |
| AQ Components Västerås AB, Västerås, Sweden | 556733-7216 | 5,000 | 100% | 100% | 11,365 |
| AQ Components Mjällom AB, Kramfors, Sweden | 556209-2634 | 10,000 | 100% | 100% | 11,162 |
| AQ Wiring Systems AB, Kramfors, Sweden | 556261-0955 | 10,000 | 100% | 100% | 16,192 |
| - AQ Wiring Systems STG Sp. Z.o.o., Linowiec, Poland | 0000043722 | ||||
| - MiniCon AB, Stockholm, Sweden | 556624-1054 | ||||
| AQ Enclosure Sollefteå AB, Sollefteå, Sweden | 556720-8466 | 10,000 | 100% | 100% | 13,888 |
| AQ Electric AD, Radomir, Bulgaria | 1135 61397 | 544,618 | 96% | 96% | 16,607 |
| AQ Magnit AD, Godech, Bulgaria | 1220 33267 | 679,382 | 99% | 99% | 40,318 |
| AQ Plastronic AD, Veliko Tarnovo, Bulgaria | 1040 11529 | 595,560 | 95% | 95% | 14,392 |
| AQ Wiring Systems UAB, Panevežys, Lithuania | 148 427 212 | 1,200 | 100% | 100% | 56,078 |
| AQ Electric Suzhou Co Ltd, Suzhou, China | 913205057859862000 | 169,730 | 100% | 100% | 23,298 |
| - AQ Electric & Enclosure Suzhou Co Ltd, Suzhou, China | 91320505MA22AAMD01 | ||||
| - Trafotek Suzhou Co, Ltd, Suzhou, China | 91320594783360415Y | ||||
| AQ Components Suzhou Co Ltd, Suzhou, China | 91320505717465227Y | 173,517 | 100% | 100% | 1,806 |
| - AQ Manufacturing Co., Ltd, Bangkok, Thailand | 0115 558 018 096 | ||||
| AQ Asia Ltd, Hong Kong, China | 2568747 | 100,000 | 100% | 100% | 108 |
| AQ Magnetica Italy S.r.l., Castelfidardo, Italy | 02591110420 | 30,000 | 100% | 100% | 3,127 |
| AQ Inductive Components d.o.o Pirot, Serbia | 21531723 | 100% | 100% | 5,838 | |
| - AQ Magnetica Technology d.o.o., Pirot, Serbia | 20993294 | ||||
| AQ Lasertool OÜ, Pärnu, Estonia | 10 930 852 | 40,000 | 100% | 100% | 8,525 |
| AQ Mechanical & Electrical M.I.Pvt.Ltd, Pune, India | U31909PN2011FTC139442 | 5,015,755 | 100% | 100% | 24,004 |
| AQ Wiring Systems SA DE CV, Tultitlan Edo, Mexico | DME051116H2A | 50,000 | 100% | 100% | 23,939 |
| AQ Wiring Systems Sp.z.o.o., Lodz, Poland | 0000199352 | 2,227 | 100% | 100% | 42,630 |
| AQ Anton Kft, Zalaegerszeg, Hungary | 20-09-061216 | *) | 100% | 100% | 235,672 |
| AQ Mecanova OY, Nivala, Finland | 0745938-3 | 494,854 | 100% | 100% | 39,624 |
| - Mecanova Inc |
*) AQ Anton Kft, has no shares. Instead the company has a "business quota" of HUF 12 millions.
Cont. next page
| Companies | Corp. ID no. | Number of participa tion rights |
Share of equity |
Share of votes |
Book value SEK thousands |
|---|---|---|---|---|---|
| Société de Gestion B3CG Interconnect Inc, Saint-Eustace, Canada |
807949219 RC0001 | 4,590,000 | 100% | 100% | 90,016 |
| - AQ B3CG Real Estate Inc, Saint-Eustace, Canada | 768141731 RC0001 | ||||
| - B3CG Interconnect Inc, Saint-Eustace, Canada | 136814217 RC0002 | ||||
| 8046000 Canada Inc, Saint-Eustace, Canada | 842130304 RC0001 | 441,620 | 100% | 100% | 34,482 |
| - B3CG Interconnect USA Inc, Plattsburgh, USA | 98-1035861 | ||||
| AQ Inductive Components India Pvt.Ltd, Pune, India | U29309PN2018FTC175319 | 338,664 | 100% | 100% | 19,024 |
| LTI Holding OY, Helsinki, Finland | 2368936-5 | 5,619,145 | 100% | 100% | 294,882 |
| - AQ Trafotek OY, Kaarina, Finland | 2359889-3 | ||||
| - AQ Trafotek AS, Harjumaa, Estonia | 12625219 | ||||
| - Trafotek Power Eletrônicos e Transformadores LTDA, Itu, Brazil |
22.119.284/0001-72 | ||||
| - Trafotek Corporation, Houston, USA | 80-2012450 | ||||
| 1,118,188 |
| Parent company | ||
|---|---|---|
| Receivables from group companies | 2020 | 2019 |
| Opening receivables | 120,329 | 53,940 |
| Lending during the year | 60,050 | 68,496 |
| Repayments during the year | -13,977 | -3,632 |
| Translation differense | -12,234 | 1,525 |
| Closing receivables | 154,168 | 120,329 |
| Group | Parent company | ||||
|---|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 | |
| VAT receivables | 26,740 | 41,827 | 5 | - | |
| Other current receivables | 27,476 | 20,582 | 1,899 | 2,757 | |
| 54,216 | 62,409 | 1,904 | 2,757 |
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2019 | |
| Prepaid rent | 5,876 | 7,114 | 63 | 63 |
| Prepaid leasing | 301 | 230 | - | - |
| Prepaid insurances | 833 | 1,453 | 278 | 256 |
| Customer owned equipment | 14,911 | 9,204 | - | - |
| Accrued income | 1,323 | 1,180 | - | - |
| Accrued government support | 11,541 | 571 | - | - |
| Prepaid IT expenses | 9,235 | 7,733 | 1,789 | 1,459 |
| Other interim receivables1) | 9,814 | 7,754 | - | - |
| 53,834 | 35,239 | 2,130 | 1,778 |
1) The item Other interim receivables refers to prepaid project, service and maintenance costs.
Equity is divided between the bids and the respective free funds. Share capital and reserve funds are restricted equity. Free funds consist of share premium, capitalized earnings and profit for the year.
According to the Board's policy, the Group's financial objective is to have a good capital structure and financial stability and thereby maintain investors, creditors and market confidence and to provide a basis for continued development of the business.
The parent company's share capital amounts to SEK 36,588 thousands (36,588), the reserve fund SEK 1,156 thousands (1,156), the share premium fund SEK 84,194 thousands (84,194), capitalized earnings SEK 526,451 thousands (373,192) and profit for the year SEK 73,780 thousands (153,259)
The Group's objective is to maintain an equity ratio of at least 40%. Group equity ratio at closing 31/12/2020 was 57% (52). The dividend policy is that the dividend should correspond to approximately 25% of the average profit after tax over a business cycle.
| Parent company | Number of shares | Share capital (SEK) |
|---|---|---|
| Number/Amount at year-end - 12/31/2011 | 17,959,058 | 35,918,116 |
| New issue (subscription) | 75,000 | 150,000 |
| Number/Amount at year-end - 12/31/2012 | 18,034,058 | 36,068,116 |
| Number/Amount at year-end - 12/31/2013 | 18,034,058 | 36,068,116 |
| Number/Amount at year-end - 12/31/2014 | 18,034,058 | 36,068,116 |
| Number/Amount at year-end - 12/31/2015 | 18,034,058 | 36,068,116 |
| New issue (subscription) | 260,000 | 520,000 |
| Number/Amount at year-end - 12/31/2016 | 18,294,058 | 36,588,116 |
| Number/Amount at year-end - 12/31/2017 | 18,294,058 | 36,588,116 |
| Number/Amount at year-end - 12/31/2018 | 18,294,058 | 36,588,116 |
| Number/Amount at year-end - 12/31/2019 | 18,294,058 | 36,588,116 |
| Number/Amount at year-end - 12/31/2020 | 18,294,058 | 36,588,116 |
| Group | ||
|---|---|---|
| 2020 | 2019 | |
| Profit for the year attributable to Parent company shareholders, SEK thousands | 315,420 | 260,878 |
| Number of shares at the beginning of the year | 18,294,058 | 18,294,058 |
| Number of shares at the end of the year | 18,294,058 | 18,294,058 |
| Average number of outstanding shares | 18,294,058 | 18,294,058 |
| Earnings per share, SEK | 17.24 | 14.37 |
There were no transactions during the year that might result in dilution effects.
Share quotient value is SEK 2. The company has no share-related programs for employees and all shares have equal voting rights and privileges.
Consolidated equity includes certain reserves, of which AQ uses the conversion reserve. The conversion reserve comprises of all foreign exchange differences arising from conversion of foreign entities' financial reports.
The Board has proposed a dividend of SEK 0.00 (0.00) per share to the Annual General Meeting for fiscal year 2020, which means that SEK 0 will be distributed to shareholders if the Annual General Meeting decides so in accordance with the Board's proposal. During the year, no change in the Group's capital management has taken place.
| Parent company | ||
|---|---|---|
| SEK thousands | 2020 | 2019 |
| Tax allocation reserve, SFL 2014 | - | 4,900 |
| Tax allocation reserve, SFL 2015 | - | 5,800 |
| Tax allocation reserve, SFL 2016 | - | 6,800 |
| Tax allocation reserve, SFL 2017 | 9,600 | 16,100 |
| Tax allocation reserve, SFL 2018 | 10,900 | 10,900 |
| Tax allocation reserve, SFL 2019 | 7,900 | 7,900 |
| 28,400 | 52,400 |
| Group Parent company |
|||||
|---|---|---|---|---|---|
| SEK thousands | 31/12/2020 | 31/12/2019 | 31/12/2020 | 31/12/2019 | |
| Pledged assets | |||||
| Property mortgages | 94,895 | 102,094 | - | - | |
| Floating charges | 321,450 | 1,362,351 | - | - | |
| of which in own custody | 404,575 | 1,380,405 | - | - | |
| Ownership reservation regarding leased machines | 3,714 | 3,860 | - | - | |
| Other ownership reservations | 1,740 | 4,164 | - | - | |
| Mortgaged trade and other receivables | - | 15,696 | - | - | |
| Contingent liabilities | |||||
| Other contingencies | 24,369 | 26,315 | 20,000 | 20,000 |
| Group | |||
|---|---|---|---|
| SEK thousands | 2020 | 2019 | |
| Opening pension provisions, non-current | 11,938 | 11,133 | |
| Provisions made during the year | 2,052 | 1,900 | |
| Used provisions | -673 | 226 | |
| Reversed provisions | -28 | -35 | |
| Reclassifications | - | -1,472 | |
| Translation difference | -708 | 185 | |
| Closing pension provisions, non-current | 12,580 | 11,938 | |
| Opening provisions for warranty obligations, non-current | 2,938 | 2,288 | |
| Provisions made during the year | 1,318 | 280 | |
| Reclassifications | -274 | 339 | |
| Translation difference | -414 | 31 | |
| Closing provisions for warranty obligations, non-current | 3,569 | 2,938 | |
| Opening other provisions, non-current | - | 1,512 | |
| Used provisions | - | -226, | |
| Reclassifications | - | -1,326 | |
| Translation difference | - | 40 | |
| Closing other provisions, non-current | - | - | |
| Opening provisions for warranty obligations, current | 3,600 | 3,710 | |
| Provisions made during the year | 2,317 | 1,052 | |
| Used provisions | -513 | -410 | |
| Reversed provisions | -285 | -444 | |
| Reclassifications | 274 | -339 | |
| Translation difference | -362 | 31 | |
| Closing provisions for warranty obligations, current | 5,030 | 3,600 |
The Group's pension obligations mainly consists of defined contribution plans and are described in note 2.5.3 Benefits after termination of employment. In addition to the defined contribution plans there are a few minor defined benefit plans in Bulgaria, Italy, Lithuania and Poland.
The net obligation at the end of the year of SEK 12.6 (11.9) million are recorded in Provisions for pensions in the balance sheet of the Group. It is mainly attributable to Bulgaria 50 percent (51), Italy 20 percent (24), Lithuania 12 percent (6) and Poland 11 percent (11).
| SEK thousands | Group | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Liability for VAT and personnel | 62,269 | 57,793 | 1,091 | 1,334 |
| Other current liabilities | 17,602 | 15,007 | - | 1,247 |
| 79,871 | 72,800 | 1,091 | 2,581 |
| SEK thousands | Group | Parent company | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Liability to personnel | 123,849 | 120,234 | 8,429 | 4,186 |
| Liability, social security contributions | 40,215 | 40,152 | 2,739 | 2,059 |
| Other interim liabilities | 37,670 | 36,493 | 1,975 | 1,214 |
| 201,733 | 196,879 | 13,143 | 7,459 |
There were no acquisitions made in 2020. The inflow of acquisition objects was very low after the Covid-19 pandemic began, but increased during the autumn. The focus has instead been on integrating the Trafotek companies into AQ.
Purchase prices and the impact on the Group's cash and cash equivalents was as follows:
| Fair value at time of acquisition | |||||
|---|---|---|---|---|---|
| Acquisition of subsidiaries | MiniCon AB | Trafotek group | Group | ||
| Intangible assets | - | 1,678 | 1,678 | ||
| Tangible assets | 11 | 148,888 | 148,899 | ||
| Financial non-current assets | - | 131 | 131 | ||
| Deferred tax assets loss carryforwards | - | 42,529 | 42,529 | ||
| Inventories | 3,971 | 78,169 | 82,140 | ||
| Other current assets | 1,773 | 38,581 | 40,354 | ||
| Cash and cash equivalents | 38 | 23,050 | 23,088 | ||
| Total assets | 5,793 | 333,026 | 338,819 | ||
| Non-current liabilities | - | 88,927 | 88,927 | ||
| Deferred tax liabilities | 62 | 4,307 | 4,369 | ||
| Interest-bearing current liabilities | 2,539 | 79,068 | 81,607 | ||
| Other current liabilities | 1,558 | - | 1,558 | ||
| Total provisions and liabilities | 4,159 | 172,302 | 176,461 | ||
| Total Net Assets | 1,634 | 160,724 | 162,358 | ||
| Purchase price shares: | |||||
| Cash paid | -4,500 | -292,070 | -296,570 | ||
| Total consideration paid | -4,500 | -292,070 | -296,570 | ||
| Customer relations | 1,799 | 31,673 | 33,472 |
| Total effect on cash and cash equivalents | -295,571 | ||
|---|---|---|---|
| Paid purchase price of previous years' acquisitions | -22,089 | ||
| Effect on cash and cash equivalents | -4,462 | -269,020 | -273,482 |
| Less: Cash and cash equivalents in the acquired business | 38 | 23,050 | 23,088 |
| Goodwill | 1,453 | 75,517 | 76,970 |
| Deferred tax on surplus values | -385 | -13,957 | -14,342 |
| Technologies | - | 38,114 | 38,114 |
| Date | Acquisitions | Number of employees* | |
|---|---|---|---|
| June 3, 2019 | Trafotek | ||
| LTI Holding OY | 3 | Finland | |
| Trafotek OY | 100 | Finland | |
| Trafotek OY | 3 | Germany | |
| Trafotek AS | 250 | Estonia | |
| Trafotek Suzhou, Co, Ltd | 40 | China | |
| Trafotek Power Eletronicos e Transformadores | 6 | Brazil | |
| Trafotek Corporation USA | - | USA | |
| July 1, 2019 | MiniCon AB | 3 | Sweden |
* Annual revenues and number of employes at time of acquisition was SEK 497 million, divided on Trafotek group SEK 487 million and MiniCon SEK 10 million.
AQ's strategy is to grow in both segments. During 2019, one major and one minor acquisitions were made. There were no divestments.
On June 3, 2019, AQ Group AB acquired 100% of the shares in the unlisted company LTI Holding Oy with its subsidiary Trafotek Oy in Finland and its subsidiaries Trafotek AS in Estonia, Trafotek Suzhou Co, Ltd in China, Trafotek Power Eletronicos e Transformadores in Brazil and Trafotek Corporation USA. The purpose of the acquisition is to expand AQ's customer base and broaden its offering within inductive components. The purchase price was EUR 27.5 million in cash.
The company has prepared a acquisition analysis which shows consolidated overvalues of approx. SEK 145.3 million divided into customer relations SEK 31.7 million, technology SEK 38.1million, goodwill SEK 75.5 million and a deferred tax liability of SEK 14.0 million. The depreciation rate is estimated to be 5 years for customer relations and 10 years for technology. The estimated goodwill value of SEK 75.5 million includes synergy effects in the form of more efficient production processes as well as the technical competence of personnel. No part of the goodwill is expected to be tax deductible.
External acquisition related expenses were incurred in connection with the acquisition of SEK 2.8 million, which are included in the Group's other external expenses.
Operating receivables are recognized at gross value, as there are no accounts receivable provisions, which corresponds to fair value. The acquisition was financed with a new bank loan.
During the period June to December, the acquired company contributed SEK 302 million to the Group's revenues and SEK 8.5 million to the Group's profit after tax, taking into account Group depreciation and amortization. The contribution to the Group's profit after tax without taking into account Group depreciation and amortization is SEK 14.2 million.
If the acquisition had occurred as of January 1, 2019, ie. including January to May, company management estimates that the Group's revenues would have been SEK 219 million higher and the profit for the period after tax taking into account Group depreciation and amortization would have been SEK 9 million better for the full year 2019. The contribution to the Group's profit after tax without taking into account Group depreciation and amortization would have been SEK 13.2 million better.
On July 1, 2019, AQ Wiring Systems AB acquired all shares in Mini-Con AB with annual sales of approximately SEK 10 million. The purpose of the acquisition is that MiniCon is a good complement to AQ Wiring Systems AB, through its component expertise. The purchase price was SEK 4.5 million in cash.
The company has prepared a acquisition analysis which shows consolidated overvalues of approx. SEK 3.3 million divided into customer relations SEK 1.8 million and goodwill SEK 1.5 million and a deferred tax liability of SEK 0.4 million. The depreciation rate is estimated to be 5 years for customer relations. The estimated goodwill value of SEK 1.5 million includes synergy effects in the form of more efficient production processes as well as the technical competence of personnel. No part of the goodwill is expected to be tax deductible.
No external acquisition related expenses were incurred in connection with the acquisition.
Operating receivables are recognized at gross value, as there are no accounts receivable provisions, which corresponds to fair value. The acquisition was financed without a new bank loan.
During the period July to December, the acquired company contributed SEK 2.8 million to the Group's revenues and negatively impacted the Group's profit after tax by SEK 1.8 million. If the acquisition had occurred as of January 1, 2019, ie. including January to June, company management estimates that Group revenues would have been SEK 3.4 million higher and profit for the period after tax would have been SEK 0.5 million better for the full year 2019.
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Cash and bank balances | 451,545 | 161,323 | 296,257 | - |
| Cash and cash equivalents recorded in the cash flow statement |
451,545 | 161,323 | 296,257 | - |
The Group's total unutilized limits on overdraft facilities at the end of the year amounted to SEK 164,1 million (108.6). AQ has a revolving loan facility of SEK 400 million, of which SEK 140 million (140) remains to be used.
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Opening long term interest-bearing liabilities | 442,411 | 16,667 | 210,000 | 683 |
| Acquisition of companies | - | 434 | - | - |
| Reclassification to/from short-term interest-bearing liabilities |
-82,721 | -1,662 | - | - |
| Items affecting cashflow from financing activities | -3,387 | 202,985 | - | 210,000 |
| Non-cash generating item, financial leases | 50,340 | 223,204 | - | -683 |
| Non-cash generating item, exchange rate differences | -594 | 784 | - | - |
| Closing long term interest-bearing liabilities | 406,049 | 442,411 | 210,000 | 210,000 |
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Opening short term interest-bearing liabilities | 474,004 | 417,480 | 375,336 | 395,521 |
| Acquisition of companies | - | 1,261 | - | - |
| Reclassification to/from short-term interest-bearing liabilities |
82,721 | 1,662 | - | - |
| Items affecting cashflow from financing activities | -167,230 | -28,659 | -71,285 | -19,574 |
| Non-cash generating item, financial leases | 2,343 | 80,811 | - | -611 |
| Non-cash generating item, exchange rate differences | -1,178 | 1,451 | - | - |
| Closing short term interest-bearing liabilities | 390,660 | 474,004 | 304,052 | 375,336 |
| Group | ||||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Depreciations and impairment losses | 233,982 | 220,191 | 4,600 | 18,241 |
| Result from sold fixed assets | 6,780 | 214 | - | 72 |
| Group contributions not paid | - | - | -3,100 | -27,000 |
| Provisions | 3,506 | 1,882 | -24,000 | -654 |
| Interest | 4,807 | 4,383 | - | - |
| Withholding tax dividends | 501 | - | - | -3,159 |
| Exchange rate differences | 851 | -3,885 | - | 1,408 |
| Non-cash generating items | 250,426 | 222,785 | -22,500 | -11,093 |
| Group | Parent company | |||
|---|---|---|---|---|
| SEK thousands | 2020 | 2019 | 2020 | 2019 |
| Received interest during the year | 7,640 | 4,693 | 7,976 | 7,878 |
| Paid interest during the year | -19,821 | -15,222 | -12,890 | -8,300 |
| Received dividend during the year | - | - | 79,728 | 158,046 |
The parent company has a close relationship with its subsidiaries. Some sales occur between the operating Group companies regarding goods. The parent company invoices a management fee to the subsidiaries. All sales occur at market prices and give rise to receivables and liabilities between the Group companies, which are controlled continuously. Between the parent company and a few Group companies, there is longterm lending and borrowing. These are charged with market interest rates. Most of the Group companies are also connected to a cash pool in the parent company. The connected companies receive/pay market interest rates. In 2020, AQ Group AB paid SEK 0 (50,308,660) in dividends to its shareholders. No other transactions between AQ and related parties that significantly affected the company's position and earnings have taken place.
Two of the company's Board members control as per December 30, 2020 about 49% (49) of the votes in the company. No loans to Board members or other key people in leading positions exist.
Other remuneration to the Board and group management, see Note 9.
| Parent company | ||
|---|---|---|
| SEK thousands | 2020 | 2019 |
| Billing | 47,802 | 44,862 |
| Purchase | 1,182 | 2,746 |
| Loans to group companies (non-current) | 154,168 | 120,329 |
| Receivables to group companies (current) | 167,936 | 375,473 |
| Interest-bearing liabilities to group companies (current) | 449,348 | 233,782 |
| Liabilities to group companies (current) | 21,925 | 19,137 |
| Interest revenue | 7,956 | 7,856 |
| Interest expense | 1,158 | 858 |
| Dividends from subsidiaries | 79,728 | 158,046 |
The Board proposes that the retained earnings, SEK 684,424,384 is distributed as follows:
| Available | Appropriation | ||
|---|---|---|---|
| Share premium reserve Retained earnings incl. |
84,194,103 | Distributed to shareholders, 0 SEK per share |
- |
| Profit for the year | 600,230,281 | Carried forward 1) | 684,230,281 |
| Total non-restricted equity | 684,424,384 | Total | 684,230,281 |
1) of which 84,194,103 returns to the shareholder premium reserve
On February 19, 2021, Aeternum Capital acquires 1,850,000 shares in AQ Group AB (publ) from AQ's founders Claes Mellgren and Per-Olof Andersson. The sale corresponds to 10.1% of the company's shares. After the transaction, the founders' shareholding amounts to 39.3 percent. The Nomination Committee proposes Vegard Søraunet from Aeternum Capital as a new board member of AQ Group to this year's Annual General Meeting.
Anders Carlsson will leave his position as President and CEO on March 31, 2021 and James Ahrgren will replace him as the new President and CEO on April 1, 2021.
The Covid-19 pandemic continues globally. The spread of infection continues in all the countries where AQ is active except in China where it is very low. The intensity of the spread of infection varies between different countries and goes up and down and also affects, among other things, the possibility for labour to cross national borders. Uncertainty about the continued impact on demand and our operations remains. We will continue with the measures we introduced in 2020 and are prepared to do so for a longer period of time. All our production units are up and running and we work closely with our customers to minimize the impact of the pandemic.
Key indicators defined by IFRS
| SEK thousands | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Net revenue, SEK thousands | 4,819,001 | 5,112,602 | 4,667,220 | 4,019,740 | 3,289,215 |
| Earnings per share, SEK | 17.24 | 14.37 | 8.26 | 11.14 | 13.01 |
The annual report includes certain key figures which are not defined according to IFRS. AQ's view is that the presented key figures are essential for investors, securities analysts and other stakeholders. Furthermore, the operating margin, cash liquidity and solidity are important measures in terms of AQ's monitoring of results, position and liquidity. AQ's key figures not calculated in accordance with IFRS are not necessarily comparable to similar measures presented by other companies, and have certain limitations as an analytical tool. They should therefore not be considered in isolation from, or as a substitute for, AQ's financial information prepared in accordance with IFRS.
| SEK thousands | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Operating margin, (EBIT %) | |||||
| Operating profit | 401,238 | 340,495 | 208,184 | 263,282 | 281,353 |
| Net revenue | 4,819,001 | 5,112,602 | 4,667,220 | 4,019,740 | 3,289,215 |
| Operating margin | 8.3% | 6.7% | 4.5% | 6.5% | 8.6% |
| Profit margin before tax, (EBT %) | |||||
| Profit before tax | 369,104 | 321,412 | 198,322 | 255,828 | 279,344 |
| Net revenue | 4,819,001 | 5,112,602 | 4,667,220 | 4,019,740 | 3,289 215 |
| Profit margin before tax | 7.7% | 6.3% | 4.2% | 6.4% | 8.5% |
| Liquid ratio, % | |||||
| Trade and other receivables | 995,212 | 1,043,903 | 1,081,833 | 900,387 | 805,186 |
| Other current receivables | 125,103 | 118,269 | 104,804 | 143,575 | 160,179 |
| Cash and cash equivalents | 451,545 | 161,323 | 100,683 | 142,049 | 162,812 |
| Current liabilities | 1,166,306 | 1,251,506 | 1,163,307 | 946,851 | 794,582 |
| Liquid ratio | 135% | 106% | 111% | 125% | 142% |
| Equity ratio, % | |||||
| Total equity | 2,190,632 | 2,015,157 | 1,782,711 | 1,643,193 | 1,463,195 |
| Total assets | 3,864,463 | 3,852,305 | 3,099,788 | 2,677,444 | 2,449,796 |
| Equity ratio | 57% | 52% | 58% | 61% | 60% |
| Return on total assets, % | |||||
| Profit before tax | 369,104 | 321,412 | 198,322 | 255,828 | 279,344 |
| Financial expenses | -47,963 | -29,753 | -14,715 | -10,741 | -12,977 |
| Total equity and liabilities, opening balance | 3,852,305 | 3,099,788 | 2,677,444 | 2,449,796 | 2,024,282 |
| Total equity and liabilities, closing balance | 3,864,463 | 3,852,305 | 3,099,788 | 2,677,444 | 2,449,796 |
| Total equity and liabilities, average | 3,858,384 | 3,476,046 | 2,888,616 | 2,563,620 | 2,237,039 |
| Return on total assets | 10.8% | 10.1% | 7.4% | 10.4% | 13.1% |
| Return on equity after tax, % | |||||
| Profit for the period after tax | 317,878 | 262,871 | 152,544 | 204,674 | 235,678 |
| Total equity, opening | 2,015,157 | 1,782,711 | 1,643,193 | 1,463,195 | 1,169,736 |
| Total equity, closing | 2,190,632 | 2,015,157 | 1,782,711 | 1,643,193 | 1,463,195 |
| Total equity, average | 2,102,894 | 1,898,934 | 1,712,952 | 1,553,194 | 1,316,465 |
| Return on equity after tax | 15.1% | 13.8% | 8.9% | 13.2% | 17.9% |
| Net cash / Net debt | |||||
| Cash and cash equivalents | 451,545 | 161,323 | 100,683 | 142,049 | 162,812 |
| Non-current interest bearing liabilities | 406,049 | 442,411 | 16,667 | 12,757 | 107,779 |
| Current interest bearing liabilities | 390,660 | 474,004 | 417,480 | 253,264 | 164,034 |
| Total interest bearing liabilities | 796,709 | 916,416 | 434,146 | 266,021 | 271,812 |
| Net cash / Net debt | -345,164 | -755,093 | -333,464 | -123,972 | -109,000 |
| SEK thousands | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Growth, % | |||||
| Organic growth | |||||
| Net revenue current period | 4,819,001 | 5,112,602 | 4,667,220 | 4,019,740 | 3,289,215 |
| - Effect of changes in exchange rates | -90,777 | 101,439 | 124,524 | 29,308 | -20,452 |
| - Net revenue last year | 5,112,602 | 4,667,220 | 4,019,740 | 3,289,215 | 2,931,878 |
| - Net revenue for acquired companies | 235,981 | 400,297 | 265,762 | 325,055 | 327,803 |
| = Organic growth | -438,804 | -56,354 | 257,194 | 376,162 | 49,987 |
| Organic growth divided by last year net revenue, % |
-8.6% | -1.2% | 6.4% | 11.4% | 1.7% |
| Growth through acquisitions | |||||
| Net revenue for acquired companies divided by last year net revenue, % |
4.6% | 8.6% | 6.6% | 9.9% | 11.2% |
| EBITDA | |||||
| Operating profit | 401,238 | 340,495 | 208,184 | 263,282 | 281,353 |
| Depreciation | -233,996 | -220,191 | -112,231 | -97,499 | -79,944 |
| EBITDA | 635,234 | 560,686 | 320,415 | 360,781 | 361,297 |
| SEK thousands | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Liquid ratio, % | |||||
| Account receivables | - | - | - | - | - |
| Current receivables | 184,745 | 387,523 | 420,157 | 316,805 | 251,503 |
| Cash and cash equivalents | 296,257 | - | - | - | - |
| Current liabilities | 792,437 | 644,010 | 621,082 | 547,433 | 502,146 |
| Liquid ratio, % | 61% | 60% | 68% | 58% | 50% |
| Debt/equity ratio, % | |||||
| Total equity | 722,169 | 648,389 | 545,439 | 371,476 | 395,676 |
| Equity part of untaxed reserves | 22,550 | 41,186 | 41,700 | 47,117 | 34,398 |
| Adjusted equity | 744,719 | 689,575 | 587,139 | 418,593 | 430,074 |
| Total assets | 1,753,359 | 1,586,873 | 1,261,569 | 979,472 | 1,039,360 |
| Debt/equity ratio, % | 42% | 43% | 47% | 43% | 41% |
Calculated as operating profit divided by net sales. This ratio indicates the profitability achieved in operations. Operating margin is a useful measure for monitoring profitability and efficiency of operations before deduction of bound capital. The ratio is used both internally in the control and monitoring of operations as well as benchmarking with other companies in the industry.
Calculated as profit before tax divided by net sales. This ratio shows the profitability achieved in operations before tax. Profit margin is a useful measure for monitoring profitability and operational efficiency including bound capital capital. The ratio is used both internally in the control and monitoring of operations as well as benchmarking with other companies in the industry.
Calculated as profit after financial items plus financial expenses divided by average total assets. This ratio also shows the profitability achieved in operations. This ratio complements the operating margin to the extent that even bound capital is taken into account. It therefore means that the ratio provides information about what return the company's operations give in relation to the amount of bound capital in operations. (In this context, financial investments, cash and cash equivalents and the surplus these give in the form of financial income are taken into account.)
Calculated as profit after tax divided by average equity including minority interests. This is a ratio that shows the company's return on the capital that the owners have invested in the business (including retained earnings) after other parties have received their remuneration. This ratio therefore shows how profitable the company is for its owners. This return is also important for the company's growth opportunities while having balanced finances.
Calculated as adjusted equity divided by total assets. This ratio reflects the company's financial position and thus its long-term solvency. Having a good equity ratio and thus a strong financial position is important for being able to manage periods of weak economic activity. To have a strong financial position is also important for managing growth.
Calculated as current assets (excl. Inventories) divided by current liabilities. This ratio reflects the company's short-term ability to make payments because it takes into account the company's current assets (excluding inventory) in relation to current liabilities. If the liquid ratio exceeds 100 %, it means that the assets exceed the liabilities in question.
Calculated as profit before tax and financial items. The operating profit shows the results generated from operations and is used with the operating margin and the return on total assets for evaluating and managing operations.
Calculated as profit before tax. The key figure shows the earnings generated by operations and financial income while taking into account payments to creditors for the capital they are contributing to finance the business The measure thus shows the remaining profit to the owners, yet takes into account that the public receives a share (tax) of this profit.
Calculated as the difference between interest-bearing debts and cash. This key figure reflects the amount of interest-bearing liabilities with regard to existing cash and cash equivalents. The ratio therefore provides a good picture of indebtedness.
The company uses two indicators to describe growth; 1) organic and 2) growth through acquisitions. Organic growth is calculated as the difference between net sales for the period and the preceding period, excluding currency effect and net sales of acquired units. Organic growth in%, is calculated as the organic growth divided by the net sales for the same period previous year. Growth through acquisitions is calculated as net sales of acquired companies divided by the net sales in the same period in the previous year. Growth is a key component of the company's strategy as growth is required to be one of the leading players in the markets where it operates. Growth is partly through acquisitions and partly organic. It is important to monitor and present the growth achieved by each growth method because these are two different ways to grow. Acquisitions are made when opportunities open up to expand the business in a particular geographic market or in a specific product area (which is in line with the company's strategic plan). Organic growth usually has the character of a continuous expansion of existing operations.
Dividend per share is decided at the Annual General Meeting where the annual report is approved for the fiscal year. The number of shares is the number of thousands of shares outstanding at the date of distribution.
Calculated as the period's net operating profit with the addition of depreciations and amortisation of tangible and intangible assets. The measure is used in the calculation of covenants towards the bank.
The consolidated financial statements and the annual report have been prepared in accordance with the international accounting standards referred to in the European Parliament's and Council's Regulation (EC) No 1606/2002 as of July 19, 2002 regarding the application of international accounting standards and generally accepted accounting principles in Sweden and provides a true and fair view of the group's and parent company's position and results. The Directors' Report for the Group and the Parent Company provide a fair overview of the development of the
Group's and the Parent Company's financial position and results and describes significant risks and uncertainties which the Parent company and the companies included in the Group are facing.
The annual report and the financial statements have, as stated above, been approved for publication by the Board and the CEO on March 26, 2021. Consolidated financial statements and the Parent company's income statement and balance sheet are subject to approval at the AGM on April 21, 2021.
Västerås, March 26, 2021
Anders Carlsson CEO
Patrik Nolåker Lars Wrebo Claes Mellgren Chairman of the Board Board member Board member
Annika Johansson-Rosengren Gunilla Spongh Ulf Gundemark Board member Board member Board member
Per-Olof Andersson Board member
Our audit report has been submitted on March 26, 2021 KPMG AB
Helena Arvidsson Älgne Authorised auditor
To the general meeting of the shareholders of AQ Group AB (publ), corp. id 556281-8830
Opinions We have audited the annual accounts and consolidated accounts of AQ Group AB (publ) for the year 2020. The annual accounts and Vi har utfört en revision av årsredovisningen och koncernredovisningen för AQ Group AB (publ) för år 2020. Bolagets årsredovisning och koncernredovisning ingår på sidorna 36-89 i detta dokument. We have audited the annual accounts and consolidated accounts of AQ Group AB (publ) for the year 2020. The annual accounts and consolidated accounts of the company are included on pages 36-89 in this document.
consolidated accounts of the company are included on pages 36-89 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act, and present fairly, in all material respects, the financial position of the parent company as of 31 December 2020 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2020 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. Enligt vår uppfattning har årsredovisningen upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av moderbolagets finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt årsredovisningslagen. Koncernredovisningen har upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av koncernens finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt International Financial Reporting Standards (IFRS), så som de antagits av EU, och årsredovisningslagen. Förvaltningsberättelsen är förenlig med årsredovisningens och koncernredovisningens övriga delar. Vi tillstyrker därför att bolagsstämman fastställer resultaträkningen och balansräkningen för moderbolaget och för koncernen. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act, and present fairly, in all material respects, the financial position of the parent company as of 31 December 2020 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2020 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Våra uttalanden i denna rapport om årsredovisningen och koncernredovisningen är förenliga med innehållet i den kompletterande rapport som har överlämnats till moderbolagets revisionsutskott i enlighet med revisorsförordningens (537/2014) artikel 11. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group.
Our opinions in this report on the the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company's audit committee in accordance with the Audit Regulation (537/2014) Article 11. Grund för uttalanden Our opinions in this report on the the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company's audit committee in accordance with the Audit Regulation (537/2014) Article 11.
Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. och har i övrigt fullgjort vårt yrkesetiska ansvar enligt dessa krav. Detta innefattar att, baserat på vår bästa kunskap och övertygelse, inga förbjudna tjänster som avses i revisorsförordningens (537/2014) artikel 5.1 har tillhandahållits det granskade bolaget eller, i förekommande fall, dess moderföretag eller dess kontrollerade företag inom EU. Vi anser att de revisionsbevis vi har inhämtat är tillräckliga och ändamålsenliga som grund för våra uttalanden. Särskilt betydelsefulla områden Särskilt betydelsefulla områden för revisionen är de områden som enligt vår professionella bedömning var de mest betydelsefulla för We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU.
Key Audit Matters revisionen av årsredovisningen och koncernredovisningen för den aktuella perioden. Dessa områden behandlades inom ramen för revisionen We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.
opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. Valuation of inventories See disclosure 2.8 and accounting principles on page 56 in the annual account and consolidated accounts for detailed information and description of the matter. Värdering av varulager Se not 2.8 och redovisningsprinciper på sidan 56 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av området. Beskrivning av området Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters.
Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual
av, och i vårt ställningstagande till, årsredovisningen och koncernredovisningen som helhet, men vi gör inga separata uttalanden om dessa
million, which represents 21% of total assets. Inventories consist mainly of raw materials and supplies as well as work in progress, finished goods and merchandise. supports the financial reporting of inventories. For example, we tested the general IT controls and the application controls in the financial främst av råvaror och förnödenheter samt därtill varor under tillverkning och färdiga varor och handelsvaror. testat generella IT-säkerhetskontroller och applikationskontroller i redovisningen såsom exempelvis prissättning samt in- och utleverans. See disclosure 2.8 and accounting principles on page 56 in the annual account and consolidated accounts for detailed information and description of the matter..
On the reporting date, the value of inventories was written down by SEK 101 million. The calculation of the amount written off is based on an established internal valuation model. The model is based on historical risks of obsolescence. lnkuranstrappan baseras på historiska inkuransrisker. Redovisning av varulagret bedöms vara ett särskilt belydelsefullt område då den stora transaktionsvolymen medför att avklipp vid in-och utleverans i lager samt rätt tillämpning av inkuranstrappan The Group reports per December 31, 2020 inventories of SEK 816 million, which represents 21% of total assets. Inventories consist mainly of raw materials and supplies as well as work in progress, finished goods and merchandise.
Financial reporting of inventories is considered to be key audit matter since the large volume of transactions means that the cut-off at arrival and dispatch of stock and the right application of the obsolescence calculation model is critical to ensure that a material misstatement in är kritiska för att ett väsentligt fel i den finansiella rapporteringen inte skall uppstå. Värderingar av kundfordringar On the reporting date, the value of inventories was written down by SEK 101 million. The calculation of the amount written off is based on an established internal valuation model. The model is based on historical risks of obsolescence.
the financial reporting should not arise. området. Beskrivning av området Koncemen redovisar per den 31 december 2020 kundfordringar om 995 MSEK, vilket utgör 26% av balansomslutningen. Financial reporting of inventories is considered to be key audit matter since the large volume of transactions means that the cut-off at arrival and dispatch of stock and the right application of the obsolescence calculation model is critical to ensure that a material misstatement in the financial reporting should not arise.
We have evaluated whether the Group's model for the obsolescence calculation correctly includes the overstocking that arise as a result of turnover rate as well as consumption. Furthermore, we have in our audit of the subsidiaries verified that the model has been used consistently across the Group. på att den fångar upp övertalighet utifrån såväl omsättningshastighet som förbrukning. Vidare har vi i vår revision av dotterbolagen följt upp att rnodellen har använts konsekvent. Vi har ockå kontrollerat fullständigheten i upplysningarna i årsredovisningen och bedömt om de överensstämmer med tillämpade principer. In our approach, we have focused on whether the Group's IT-system supports the financial reporting of inventories. For example, we tested the general IT controls and the application controls in the financial system linked to areas that are important to ensure correct reporting of inventory in the financial statements such as pricing, dispatches and arrival of goods.
We have also evaluated the completeness in the information contained in the annual report and assessed whether it is consistent with the principles applied. Se not 3 och redovisningsprinciper på sidan 58 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av Hur området har beaktats i revisionen Vi har bland annat följt upp erhållna betalningar efter balansdagen. Vidare har vi tagit del av kundfordringamas åldersstruktur för att utifrån denna identifiera och utvärdera om något ytter!igare reserveringsbehov föreligger utöver det som företagsledningen har beaktat i We have evaluated whether the Group's model for the obsolescence calculation correctly includes the overstocking that arise as a result of turnover rate as well as consumption. Furthermore, we have in our audit of the subsidiaries verified that the model has been used consistently across the Group. We have also evaluated the completeness in the information contained in the annual report and assessed whether it is consistent with the principles applied.
See disclosure 3 and accounting principles on page 56 in the annual account and consolidated accounts for detailed information and description of the matter.
The Group reports per December 31, 2020 trade receivables of SEK 995 million, which represents 26% of total assets. Till bolagsstämman i AQ Group AB (publ), org. nr 556281-8830
On the reporting date, trade receivables were written down by SEK 17 million. The valuation is based on a individually impairment test. This is considered as a key audit matter because the impairment test is reliant on significant levels of estimates performed by the management. Rapport om årsredovisningen och koncernredovisningen Uttalanden Vi har utfört en revision av årsredovisningen och koncernredovisningen för AQ Group AB (publ) för år 2020. Bolagets årsredovisning och koncernredovisning ingår på sidorna 36-89 i detta dokument.
We have for example reviewed payments received after closing date. Furthermore, we have examined the age of the accounts receivables in order to identify and evaluate whether any additional provision requirements exists in addition to those that management has taken into account in the annual report.
We have challanged management's assessment of recoverable amount of receivables for which the due date has passed.
We also verified the completeness of the information contained in the annual report and assessed whether it is consistent with the principles applied. Enligt vår uppfattning har årsredovisningen upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av moderbolagets finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt årsredovisningslagen. Koncernredovisningen har upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av koncernens finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt
This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1-29, 34-35 and 94-98. The other information comprises also of the remuneration report which we obtained prior to the date of this auditor's report. The Board of Directors and the Managing Director are responsible for this other information. Vi tillstyrker därför att bolagsstämman fastställer resultaträkningen och balansräkningen för moderbolaget och för koncernen. Våra uttalanden i denna rapport om årsredovisningen och koncernredovisningen är förenliga med innehållet i den kompletterande rapport som har överlämnats till moderbolagets revisionsutskott i enlighet med revisorsförordningens (537/2014) artikel 11.
Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. Grund för uttalanden
In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. Vi har utfört revisionen enligt International Standards on Auditing (ISA) och god revisionssed i Sverige. Vårt ansvar enligt dessa standarder beskrivs närmare i avsnittet Revisorns ansvar. Vi är oberoende i förhållande till moderbolaget och koncernen enligt god revisorssed i Sverige och har i övrigt fullgjort vårt yrkesetiska ansvar enligt dessa krav. Detta innefattar att, baserat på vår bästa kunskap och övertygelse, inga förbjudna tjänster som avses i revisorsförordningens (537/2014) artikel 5.1 har tillhandahållits det granskade bolaget eller, i förekommande fall, dess moderföretag eller dess kontrollerade företag inom EU.
If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Vi anser att de revisionsbevis vi har inhämtat är tillräckliga och ändamålsenliga som grund för våra uttalanden. Särskilt betydelsefulla områden
The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. revisionen av årsredovisningen och koncernredovisningen för den aktuella perioden. Dessa områden behandlades inom ramen för revisionen av, och i vårt ställningstagande till, årsredovisningen och koncernredovisningen som helhet, men vi gör inga separata uttalanden om dessa områden. Värdering av varulager området. Beskrivning av området Koncernen redovisar per den 31 december 2020 varulager om 816 MSEK, vilket utgör 21% av balansomslutningen. Varulagret består
In preparing the annual accounts and consolidated accounts The Board of Directors and the Managing Director are responsible for the främst av råvaror och förnödenheter samt därtill varor under tillverkning och färdiga varor och handelsvaror. På balansdagen är lagervärdet nedskrivet med 101 MSEK. Som
assessment of the company's and the group's ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. Se not 2.8 och redovisningsprinciper på sidan 56 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av Hur området har beaktats i revisionen
The Audit Committee shall, without prejudice to the Board of Director's responsibilities and tasks in general, among other things oversee the company's financial reporting process. I vår granskningsansats har vi fokuserat på att koncernen har systemstöd som stödjer redovisningen av varulager. Vi har bland annat testat generella IT-säkerhetskontroller och applikationskontroller i ekonomisyslemet kopplat till områden som är väsentllga tör
Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. Till bolagsstämman i AQ Group AB (publ), org. nr 556281-8830 Rapport om årsredovisningen och koncernredovisningen Uttalanden Vi har utfört en revision av årsredovisningen och koncernredovisningen för AQ Group AB (publ) för år 2020. Bolagets årsredovisning och koncernredovisning ingår på sidorna 36-89 i detta dokument. Enligt vår uppfattning har årsredovisningen upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av moderbolagets finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt årsredovisningslagen. Koncernredovisningen har upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: rättvisande bild av koncernens finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt med årsredovisningens och koncernredovisningens övriga delar.
related to events or conditions that may cast significant doubt on the company's and the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.
We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.
We must also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, measures that have been taken to eliminate the threats or related safeguards. revisionen av årsredovisningen och koncernredovisningen för den aktuella perioden. Dessa områden behandlades inom ramen för revisionen av, och i vårt ställningstagande till, årsredovisningen och koncernredovisningen som helhet, men vi gör inga separata uttalanden om dessa
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes disclosure about the matter. Se not 2.8 och redovisningsprinciper på sidan 56 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av Hur området har beaktats i revisionen I vår granskningsansats har vi fokuserat på att koncernen har systemstöd som stödjer redovisningen av varulager. Vi har bland annat testat generella IT-säkerhetskontroller och applikationskontroller i ekonomisyslemet kopplat till områden som är väsentllga tör
Vi har ockå kontrollerat fullständigheten i upplysningarna i
Hur området har beaktats i revisionen
In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of AQ Group AB (publ) for the year 2020 and the proposed appropriations of the company's profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. skall uppstå. principer. Värderingar av kundfordringar Se not 3 och redovisningsprinciper på sidan 58 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av området.
We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. 995 MSEK, vilket utgör 26% av balansomslutningen. På balansdagen är kundfordringama nedskrivna med 17 MSEK. Som grund för värderingen har en individuell nedskrivningsprövning gjorts. Vidare har vi tagit del av kundfordringamas åldersstruktur för att utifrån denna identifiera och utvärdera om något ytter!igare reserveringsbehov föreligger utöver det som företagsledningen har beaktat i redovisningen.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Värdering av kundfordringar anses vara ett särskilt betydelsefullt Vi har utmanat företagsledningens bedömning av återvinningsvärdet av fordringar där förfallodatum har passerats.
The Board of Directors is responsible for the proposal for appropriations of the company's profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the group's type of operations, size and risks place on the size of the parent company's and the group's equity, consolidation requirements, liquidity and position in general. Till bolagsstämman i AQ Group AB (publ), org. nr 556281-8830 Rapport om årsredovisningen och koncernredovisningen
The Board of Directors is responsible for the company's organization and the administration of the company's affairs. This includes among other things continuous assessment of the company's and Uttalanden Vi har utfört en revision av årsredovisningen och koncernredovisningen för AQ Group AB (publ) för år 2020. Bolagets årsredovisning och koncernredovisning ingår på sidorna 36-89 i detta dokument.
the group's financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company's financial affairs otherwise are controlled in a reassuring manner.
The Managing Director shall manage the ongoing administration according to the Board of Directors' guidelines and instructions and among other matters take measures that are necessary to fulfill the company's accounting in accordance with law and handle the management of assets in a reassuring manner.
Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: årsredovisningslagen. Koncernredovisningen har upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av koncernens finansiella ställning per den 31 december 2020 och av dess finansiella resultat och kassaflöde för året enligt med årsredovisningens och koncernredovisningens övriga delar. Vi tillstyrker därför att bolagsstämman fastställer resultaträkningen och balansräkningen för moderbolaget och för koncernen.
Our objective concerning the audit of the proposed appropriations of the company's profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. och har i övrigt fullgjort vårt yrkesetiska ansvar enligt dessa krav. Detta innefattar att, baserat på vår bästa kunskap och övertygelse, inga förbjudna tjänster som avses i revisorsförordningens (537/2014) artikel 5.1 har tillhandahållits det granskade bolaget eller, i förekommande fall, dess moderföretag eller dess kontrollerade företag inom EU.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company's profit or loss are not in Vi anser att de revisionsbevis vi har inhämtat är tillräckliga och ändamålsenliga som grund för våra uttalanden. Särskilt betydelsefulla områden Särskilt betydelsefulla områden för revisionen är de områden som enligt vår professionella bedömning var de mest betydelsefulla för revisionen av årsredovisningen och koncernredovisningen för den aktuella perioden. Dessa områden behandlades inom ramen för revisionen av, och i vårt ställningstagande till, årsredovisningen och koncernredovisningen som helhet, men vi gör inga separata uttalanden om dessa
accordance with the Companies Act.
As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company's profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company's situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors' proposed appropriations of the company's profit or loss we examined whether the proposal is in accordance with the Companies Act. International Financial Reporting Standards (IFRS), så som de antagits av EU, och årsredovisningslagen. Förvaltningsberättelsen är förenlig Våra uttalanden i denna rapport om årsredovisningen och koncernredovisningen är förenliga med innehållet i den kompletterande rapport som Vi har utfört revisionen enligt International Standards on Auditing (ISA) och god revisionssed i Sverige. Vårt ansvar enligt dessa standarder beskrivs närmare i avsnittet Revisorns ansvar. Vi är oberoende i förhållande till moderbolaget och koncernen enligt god revisorssed i Sverige
KPMG AB, Box 382, 101 27, Stockholm, was appointed auditor of AQ Group AB (publ) by the general meeting of the shareholders on June 25, 2020. KPMG AB or auditors operating at KPMG AB have been the company's auditor since 2014. Se not 2.8 och redovisningsprinciper på sidan 56 i årsredovisningen och koncernredovisningen för detaljerade upplysningar och beskrivning av området. Beskrivning av området Hur området har beaktats i revisionen
Västerås 26 March 2021 främst av råvaror och förnödenheter samt därtill varor under
KPMG AB lnkuranstrappan baseras på historiska inkuransrisker.
Helena Arvidsson Älgne Authorized Public Accountant är kritiska för att ett väsentligt fel i den finansiella rapporteringen inte skall uppstå.
The company, based in Västerås, is the parent company of the Group. The business consists of general corporate and financial management for Swedish subsidiaries. CEO: Anders Carlsson
The company develops, designs, manufactures and installs complete electric cabinets for controlling machines and processes. Operations are conducted in Västerås, Lund and Örnsköldsvik.
MD: Ola Olsson
The company develops, designs, manufactures and installs control equipment. The company has its own products such as sensors for detection of gas and liquid flows and heating jackets to avoid condensation in demanding filter applications. The company designs and manufactures mechanical components and systems for high-tech clients. The company's operations are conducted in Uppsala. MD: Tobias Hammar
The company is engaged in manufacturing and selling complete machines and sheet metal components. The company's operations are conducted in Vaggeryd and Falköping.
MD: Jonas Pellgaard
The company develops, designs and sells products for the rail industry, electrical products and relays. The company's operations are conducted in Västerås. MD: Ola Olsson
The company manufactures e.g. electromechanical products such as ticket vending machines and printers. Operations are conducted in Gävle. MD: Åsa Lostorp
The company designs and manufactures stamped metal components, injection molded thermoplastic components and combination products. Operations are conducted in Anderstorp, Torslanda and Västerås. MD: Per Wedel
The company develops and sells inductors and transformers. Operations are conducted in Enköping. VD: Niklas Ericsson
The company operates a consultancy business focusing on engineering work for demanding industrial customers. Operations are conducted in Torslanda. MD: Erik Olsson
The company designs, engineers and manufactures sheet metal parts ranging from simple components to complete systems. The company's operations are conducted in Västerås.
MD: Ragnar Koppel
The company processes and assembles sheet metal by pressing and cutting. The company's operations are conducted in Pålsboda and Lyrestad. MD: Lars Gäfvert
The company offers solutions in the development and manufacture of electrical systems (wiring systems, electronics and mechanics, etc.), for the Scandinavian and European markets. The Company's operations are conducted in Mjällom.
MD: Jenny Gerdin
The company designs, engineers and manufactures sheet metal parts ranging from simple components to complete systems. The company's operations are conducted in Sollefteå.
MD: Joakim Falk
The company provides high-quality welding to customers within cranes, trains, defence, forestry and construction equipment. Delivers mechanical components and parts within sheet metal and machining. The company's operations are conducted in Mjällom. MD: Peter Wallberg
The company specializes in the sales of connection technology products to the aerospace, defense and civilian industies.Operations are conducted in Stockholm. MD: Johan Lyrfalk
The company manages an industrial property in Lund of approximately 2,100 m2 , where AQ Elautomatik AB operates. MD: Ola Olsson
The company manages an industrial property in Lyrestad, Mariestad of 7,360 m2 , where AQ Special Sheet Metal AB operates.
MD: Lars Gäfvert
The company manages an industrial property in Pålsboda of approximately 3,000 m2 , where AQ Special Sheet Metal AB operates.
MD: Lars Gäfvert
The company is owned 96% by AQ Group AB (publ). The company designs, manufactures and sells electric cabinets and mechanical parts. Operations are conducted in own properties of 27,994 m2 in Radomir, Bulgaria. MD: Emil Nikolov
The company designs, manufactures and assembles wiring systems and inductive components. The company's operations are conducted in Suzhou, China, and focuses on external customers in Asia.
MD: Andreas Björk
The company designs, manufactures and assembles enclosures, sheet metal parts, electric cabinets, container-based electrical and automation solutions. The company's operations are conducted in Suzhou, China, and focuses on external customers in Asia. MD: Andreas Björk
The company manufactures and sells inductive components. The company's business is conducted in Pune, India. MD: Shreeniwas Bhide
The company manufactures and sells stamped metal components and injection molded thermoplastic parts. The company's operations are conducted in Suzhou, China, and are geared towards external customers in Asia. MD: Andreas Björk
The company manages an industrial property in Anderstorp of approximately 10,000 m2 , where AQ Plast AB operates. MD: Per Wedel
The company manages an industrial property in Torslanda of approximately 1,500 m2 , where AQ Plast AB and AQ Engineering AB operate. MD: Per Wedel
Subsidiary of AQ ParkoPrint AB. The company manages an industrial property in Gävle of 4,590 m2 , where AQ ParkoPrint AB operates. MD: Åsa Lostorp
The company is being liquidated. MD: Ragnar Koppel
The company manufactures and sells metal products and wiring systems. The company's business is conducted in Pune, India.
MD: Ajit Vibhandik
The company manufactures, assembles and sells processed sheet metal parts and performs surface treatment for industrial customers. The company operates in its own property of about 10,000 m2 in Pärnu, Jüri and Viimsi in Estonia. MD: Rein Volt
The company is owned 99,7% by AQ Group AB (publ). The company manufactures and sells inductive components and relays. The company operates in its own property of approximately 8,500 m2 in Godech, Bulgaria. MD: Ivan Stratiev
The company is owned 95 % by AQ Group AB (publ). The company produces electric instruments, electronics, injection molded thermoplastic components and maintains tools for injection molding. The company conducts operations in Veliko Tarnovo, Bulgaria. MD: Emil Nikolov
The company manufactures and sells wiring systems and electromechanical modules for industrial customers. The company conducts business in Tultitlan Edo, Mexico. MD: Aleksandra Wojdyn
The company manufactures and sells wiring systems and electromechanical modules for industrial customers. The company conducts operations in Lodz, Poland. MD: Mariusz Kopec´
The company manufactures and sells wiring systems and electromechanical modules. The company conducts business in Panevežys, Lithuania. MD: Nerijus Olsauskas
The company is a leading within the machine processing of components for large industrial gas turbines (IGT), in the production of complex molded components and in the design and manufacture of tools. The company operates in Zalaegerszeg, Hungary.
MD: András Németh
The company is a technology and sales company, primarily for inductive components. The company conducts business in Castelfidardo and Milan, Italy. MD: Giovanni Di Manici
The company manufactures components and details for inductive components. The company conducts business in Pirot, Serbia.
MD: Krasimir Cholakov
The company is a leading supplier of power transformers for marine applications and reactors for frequency converters and wind turbines. The company operates in Kaarina, Finland, with a sales department/branch in Germany. MD: Niklas Ericsson
The company is a leading supplier of specialized power electronics components, such as reactors, transformers and filters for industrial and marine applications. The company operates in Rae, Estland. MD: Tero Hankiala
The company is a leading supplier of specialized power electronics components, such as reactors, transformers and filters for industrial and marine applications. The company operates in Suzhou, China. MD: Sami Kannisto
The company is a leading supplier of specialized power electronics components, such as reactors, transformers and filters for industrial and marine applications. The company operates in Sao Paulo, Brazil. MD: Klaus Franco
The company manufactures and sells wiring systems and electromechanical modules for industrial customers. The company conducts business in Linowiec, Polen. MD: Ewa Sulewska
AQ Mecanova is a supplier of sheet metal and copper components. The company conducts business in Nivala, Finland.
MD: Ulla Landenperä-Koski
The company manufactures and sells wiring systems and electromechanical modules. The company conducts business in Montreal, Quebec, Canada. MD: Céline Brunet
The company manufactures and sells wiring systems and electromechanical modules. The company conducts business in Plattsburgh, New York, USA. MD: Céline Brunet
Holding company that owns B3CG Interconnect USA Inc. MD: Céline Brunet
Holding company that owns B3CG Interconnect Inc. MD: Céline Brunet
Holding company that owns AQ Trafotek OY. MD: Niklas Ericsson
Sales company in Hong Kong, without employees. MD: Andreas Björk
The company is being liquidated. MD: Ragnar Koppel
Resting company. MD: Ulla Landenperä-Koski
Resting company. MD: Krasimir Cholakov
AQ B3CG Real Estate Inc (768141731 RC0001) MD: Céline Brunet
By making our customers' life easy and by giving the "little extra" we will create a long term partnership.
We do our daily work without complexity and bureaucracy. Everything we do adds customer value.
Entrepreneurial business
Companies within the AQ Group shall, based on AQ core values, run their business as entrepreneurs and strive for profitability and growth.
Courage and respect
We have the courage to go our own way, we stand up for our positions, are prepared to make tough decisions, give constructive feedbackand admit own mistakes. We treat others as we like to be treated ourselves.
Cost efficiency We use the most cost effcient way to fulfll our customers' demands and work with continuous improvements. Our business is production, we have a long term view and we fully commit ourselves to live up to customer expectations for quality, delivery performance, technological development and service.
• Countries where AQ Groups has operations:
| Brazil | |
|---|---|
| Bulgaria | |
| Estonia | |
| India | |
| Italy | |
| Finland |
China Lithuania Mexico Poland Canada Serbia
Sweden Germany Hungary USA
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