Earnings Release • Feb 18, 2021
Earnings Release
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V ä s t e r å s , F e b r u a r y 1 8 , 2 0 2 1
| Strong resilience to Covid-19 effects and cyclical fluctuations |
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| Net sales decreased by 5.7% to SEK 4,819 million (5,113) |
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| Operating profit (EBIT) increased by 17.8% to SEK 401 million (340) |
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| Profit after financial items (EBT) increased by 14.8% to SEK 369 million (321) |
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| Profit margin before tax (EBT %) was 7.7% (6.3) |
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| Cash flow from operating activities increased by 21.9% to SEK 609 million (499) |
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| Earnings per share after tax increased by 20.0% to SEK 17.24 (14.37) |
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| Equity ratio was 57% (52) |
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| The Board of Directors proposes no dividend (previous year SEK 0.00 / share) |
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| Group overview, key figures | ||||||||||
| 2020 | 2019 | |||||||||
| Q1 | Q2 | Q3 | Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | |
| Net turnover, SEK thousands Operating profit (EBIT), SEK thousands |
1,341,888 97,947 |
1,116,486 80,643 |
1,104,425 97,463 |
1,256,203 125,185 |
4,819,001 401,238 |
1,252,861 95,707 |
1,313,431 93,363 |
1,246,556 86,676 |
1,299,754 64,749 |
5,112,602 340,495 |
| Profit after net financial items (EBT), SEK thousands | 86,964 | 78,160 | 92,966 | 111,014 | 369,104 | 92,949 | 88,478 | 82,007 | 57,978 | 321,412 |
| Profit for the period | 75,899 | 70,003 | 79,252 | 92,724 | 317,878 | 76,335 | 69,899 | 69,018 | 47,619 | 262,871 |
| Total equity Operating margin (EBIT %) |
2,176,452 7.3% |
2,128,976 7.2% |
2,206,215 8.8% |
2,190,632 10.0% |
2,190,632 8.3% |
1,896,417 7.6% |
1,928,490 7.1% |
2,020,893 7.0% |
2,015,157 5.0% |
2,015,157 6.7% |
| Profit margin before tax (EBT %) | 6.5% | 7.0% | 8.4% | 8.8% | 7.7% | 7.4% | 6.7% | 6.6% | 4.5% | 6.3% |
| Liquid ratio | 108% | 155% | 169% | 173% | 173% | 108% | 102% | 103% | 106% | 106% |
| Debt/equity ratio | 54% | 56% | 56% | 57% | 57% | 54% | 49% | 51% | 52% | 52% |
| Return on total assets 2) | 9.5% | 8.8% | 8.9% | 10.8% | 10.8% | 7.6% | 7.7% | 9.7% | 10.1% | 10.1% |
| Return on equity after tax 2) | 12.9% | 12.9% | 12.9% | 15.1% | 15.1% | 9.4% | 10.5% | 14.0% | 13.8% | 13.8% |
| Number of employees in Sweden Number of employees outside Sweden |
833 5,465 |
805 5,231 |
789 5,237 |
794 5,097 |
794 5,097 |
865 5,060 |
888 5,642 |
871 5,553 |
856 5,474 |
856 5,474 |
| Key indicators per share, SEK 1) | ||||||||||
| Profit for the period | 4.11 | 3.80 | 4.30 | 5.03 | 17.24 | 4.14 | 3.81 | 3.77 | 2.60 | 14.37 |
| Equity | 118.97 | 116.38 | 120.60 | 119.75 | 119.75 | 103.66 | 105.42 | 110.47 | 110.15 | 110.15 |
| Number of shares, thousands | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 |
| 1) There are no instruments that could lead to share dilution. | ||||||||||
| 2) Calculated based on 12 months rolling amounts. | ||||||||||
| - 2 - |
Net sales recovered well during the period, mainly driven by medical technology and commercial vehicles. We have a small organic growth of 0.4% compared to the fourth quarter last year. This together with lower costs gave a good profit in the period where the EBT margin is 8.8%. During the quarter, we also incurred costs for restructuring our unit in Mexico, where we have problems with declining demand for coach buses.
During the year, we have shown that we are able to adjust our costs in a downturn. AQ has a strong resilience to economic fluctuations thanks to our fast-paced and decentralized structure.
We also have a good spread of risk to many different businesses and a healthy exposure to the sustainable products and solutions that our customers develop to do something about the climate threat.
Investments in renewable energy continue to increase. We supply inductive components, sheet metal details and electrical cabinets to customers in wind and solar power. Renewable energy also drives the need for energy storage. Here we work with new solutions for several customers. When it comes to inductive components, we are also involved in developing the technology for our customers.
AQ has a particularly good position in electromobility. We know filter technology, electrification and automation, at the same time as we are a supplier of wire harnesses, sheet metal and inductive components for commercial vehicles. We participate in about twenty different development projects for electric vehicles. And these projects are now moving faster from development to serial deliveries.
Even more important to the climate is public transport. AQ is a significant supplier of components for trains and buses and works with interesting projects in Europe, Asia and North America. For example, we are a supplier to the large electric bus delivery in Gothenburg, Sweden. We are also a plastic supplier to a leading system for electric bicycles.
Automation and digitalization are central to controlling and using energy in a more environmentally friendly way. All automation requires electrical cabinets where you install automation components from leading suppliers. AQ has a strong global position in this supply chain. We can supply complete electrical cabinets including in-house made enclosures worldwide. Cloud-based software solutions also drive the need for electrical cabinets, and here we have developed a new business during the fourth quarter for a customer in the data center business.
The pandemic has affected AQ in many ways. Above all, we have lost net sales but also suffered from supply chain disruptions and additional costs. Particularly dramatic was the v-shaped up and down curve in the second quarter, where we are proud that we always managed to deliver to our customers. We have received subsidies for short-term work and compensation for lower volumes in several of the countries in which we operate. However, AQ's own cost savings are still more than twice as large than what we have received in support. The support measures have meant that we have been able to maintain our capacity and staff and thus continue to generate jobs and tax revenue in the communities in which we operate.
During the fourth quarter, the Group received SEK 25 million in support measures for Covid-19, primarily in Lithuania, Bulgaria and Canada. If we exclude this, we have an adjusted EBT margin for the quarter of 6.7% compared to 4.5% last year. The second wave of Covid-19 has meant a larger spread in the countries where we operate. So far, routines and measures have been sufficient to deal with the pandemic, but we are aware that we need to be persistent with this for a long time to come. Finally, we have benefited from increased deliveries to build up capacity for vaccine production during the year.
To ensure maximum financial freedom of action during the beginning of 2021, the Board of Directors proposes that no dividend is paid for 2020. However, the Board may return later in the year and propose a dividend. AQ's balance sheet is strong, but uncertainty about the development of the pandemic still remains.
In 2020, we have ensured that there are environmental management systems for all our operational manufacturing units. These include concrete goals, metrics and activities to reduce our environmental impact. One requirement is that there must be local targets for reducing CO2 emissions at each unit. It is gratifying that we are making concrete improvements that both reduce the environmental impact but also reduce our energy and material costs. In addition to climate and carbon dioxide, there is also a strong focus on water and chemicals. We have also improved the work environment and reduced our incidents and accidents, which helps us to recruit staff and to be an attractive employer. The work with the environment and the work environment will never be ready, so we will continue our work with this for a long time.
When the pandemic started, there was great financial uncertainty. We have since managed to generate a strong cash flow from operating activities, which continued during the fourth quarter. It is noteworthy that our inventories decreased in the fourth quarter even though sales returned to higher levels. AQ Group has a strong balance sheet with low net debt that will help the Group to continue to grow organically and to make acquisitions.
Finally, I would like to warmly welcome James Ahrgren back to AQ Group when he takes over as CEO on April 1. James and I are now working together to ensure that we do not lose pace and to make a good handover.
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, we have not succeeded in this, but we have laid a good foundation for continued growth in the years to come.
It has been extraordinarily fun and educational 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
Net sales for the fourth quarter were SEK 1,256 million (1,300), a decrease of SEK 44 million compared to the same period in the previous year. The total growth in the quarter was -3,4%, of which organic growth 0,4% and currency effects of -3,8%. The currency effect corresponds to about SEK -49 million and is mainly with the currencies EUR, PLN and HUF.
Operating margin (EBIT) in the fourth quarter was SEK 125 million (65), an increase of SEK 60 million, which is explained by a recovery in volumes, lower costs and support measures for Covid-19. The EBT margin for the period is 8.8%. The profit for the quarter was also charged with costs for restructuring our unit in Mexico.
Cash flow from operating activities was SEK 163 million (153) and inventory levels decreased in the fourth quarter despite sales returning to higher levels.
Cash flow from investing activities was SEK -17 million (-67), which relates mainly to investments in fixed assets of SEK 12 million (79).
Cash flow from financing activities was SEK -19 million (-47) which relates to decreased usage of overdraft facility and changes in leasing debts.
Net sales for the full year was SEK 4,819 million (5,113), a decrease of SEK 294 million compared to the previous year. Although net sales recovered during the last quarter, the large negative impact from the Covid-19 pandemic in the second quarter remains. For the full year the total growth was -5,7%, of which organic growth -8,6%, growth through acquisitions 4,6% and a currency effect of -1,8%. The currency effect corresponds to SEK -91 million and is mainly with the currencies PLN, HUF and EUR.
Operating margin (EBIT) for the full year was SEK 401 million (340) an increase of SEK 61 million compared to the previous year. Intensive work to reduce personnel costs and other external costs has led to the increased profit despite lower net sales. We have received subsidies and support measures to compensate for short-term work, extra costs and lower net sales. AQ's cost savings are more than twice as large than what we have received in subsidies. The result has also been negatively affected by restructuring in Smedjebacken and in Mexico.
The investments of the group in tangible fixed assets for the year were SEK 114 million (199) and relates to the construction of a new factory in Canada, capacity investments and improvement projects for a more efficient production. In total, tangible fixed assets amounted to SEK 913 million (1,012), where SEK 265 million (305) consists of the book value of right-of-use assets in accordance with IFRS 16.
Interest bearing liabilities of the group are SEK 797 million (916) and cash and cash equivalents amount 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 IFRS 16 amount to SEK 531 million (613).
Cash flow from operating activities amounted to SEK 609 million (499), an improvement of SEK 110 million, which is mainly comes from positive earnings development in combination with increased efficiency in working capital utilization.
Cash flow from investing activities was 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.
Equity at the end of the period was SEK 2,191 million (2,015) for the group.
On March 27, AQ Group announced that the AGM will be moved forward. The spread of the Covid-19 pandemic in the world has 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.
On April 22, AQ Group's Board of Directors decided to withdraw the previous dividend proposal and instead proposed that the Annual General Meeting on June 25 decides that no dividend 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 have 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 have also during the quarter closed a smaller unit in Serbia and moved this production to AQ in Bulgaria. 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 is negatively affected by the reduced demand for coach buses and the unit is 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 have consolidated the operations for inductive components to the same company and premises in Suzhou. At the same time, we have 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.
Apart from the continued uncertainty that generally exists in the world due to the ongoing Corona pandemic, no significant events have occurred after the end of the period.
The goal of the group is continued profitable growth. The Board of Directors is not giving any forecast for turnover or profit. Statements in this report can be perceived as forward looking and the real outcome can be significantly different.
The Board of Directors of AQ Group has set goals for the group. The goals mean that the group is managed towards good profit, high quality and delivery precision with strong growth with a healthy financial risk level. The dividend policy is to have dividends corresponding to about 25 % of profit after tax over a business cycle. However, the Group's financial consolidation must always be considered.
| Goal | Jan-Dec 2020 | |
|---|---|---|
| Product quality | 100% | 99.5% |
| Delivery precision | 98% | 94.7% |
| Equity ratio | >40% | 57% |
| Profit margin before tax, (EBT %) | 8% | 7.7% |
The parent company has a related party relationship with its subsidiaries. There are some sales activities concerning goods between the operating group companies. The parent company is charging a management fee to the subsidiaries. All invoicing is according to market level prices and results in claims and debts between the companies which are settled regularly. There are some long-term loans between the parent company and a few subsidiaries. These loans are given with market level interest rates. Most companies in the group are part of cash pool in the parent company. The companies are charged/given interest rates at market level.
During 2020, AQ Group AB did not pay any share dividends to its shareholders. No other transactions between AQ and related parties that significantly affected the company's position and results have taken place either. There are no loans to board members or other key people in senior positions.
At the annual general meeting on June 25, 2020, it was decided that a yearly fee of SEK 200 000 shall be paid to the members of the Board of Directors and a fee of SEK 450 000 to the chairman of the board. For the chairman of the Audit Committee, the remuneration shall be SEK 100,000 and to the other members of the Audit Committee, SEK 40,000. For the chairman of the Remuneration Committee, the remuneration shall be SEK 50,000 and to the other members of the Remuneration Committee, SEK 30,000. There are no other remunerations to the Board of Directors. There is no remuneration paid after a board assignment is completed.
People in management positions are paid a fixed salary and a variable element calculated in % of the group's profit maximized to one-year salary. There are no other benefits in addition to pension benefits for work performed via the employment contract. In individual cases and where there is special justification, the Board shall have the option of deviating from the above guidelines.
AQ is a global company with operations in sixteen countries. Within the group there are a number of risks and uncertainties of both operational and financial characteristics, which were described in the annual report of 2019. Since the annual report for 2019 was published, the Covid-19 pandemic has hit the world, resulting in increased risks and uncertainties that can have a significant impact on AQ's customers and suppliers, which in turn affects the outcome for AQ. In addition to the commented factors the real outcome can be affected by for example political events, business cycle effects, currency and interest rates, competing products and their pricing, product development, commercial and technical difficulties, delivery problems and large credit losses at our customers.
The risks that are most evident in a shorter perspective are the Covid-19 pandemic's impact on customers and suppliers, currency and price risks.
Transactions and assets and liabilities in foreign currency are managed centrally within AQ in order to create balance in the respective currency thereby achieving highest possible levelling effect within the group in order to minimize currency differences.
AQ is not buying any direct raw material, but only intermediate goods for further production such as sheet metal of steel and aluminium, cables, insulated wire etc. The risk is minimized through customer agreements with price clauses. Raw material price risk refers to the change in the price of material and its impact on earnings. The company's purchase of materials to different processes is significant. There is a risk of sharp price increases for raw materials where the Company is not able to compensate price increases, which may affect the Company's earnings negatively.
The group's credit risks are mainly connected to receivables from customers.
The parent company is indirectly affected by the same risks and uncertainties.
The Nomination Committee before the AGM 2021 consists of Hans Christian Bratterud (ODIN Fonder), Björn Henriksson (Nordea Fonder), Per Olof Andersson and Claes Mellgren.
Interim report Q1, 2021 April 21, 2021, at 08:00 Annual General Meeting 2021 April 21, 2021 Interim report Q2, 2021 July 15, 2021, at 08:00 Interim report Q3, 2021 October 21, 2021, at 08:00
The annual report for 2020 will be available on the company's website no later than March 30, 2021.
The Annual General Meeting will be held on April 21, 2021 at 18:00 in Västerås. Regarding participation in the Annual General Meeting for 2021, the Board has decided to apply the Swedish Corporate Governance Board's special regulations in connection with Covid-19, which means that the meeting is conducted via postal voting without physical participation. More information will be included in the notice convening the Annual General Meeting, which will be published on the company's website www.aqg.se no later than 4 weeks before the Annual General Meeting.
In light of the ongoing Covid-19 pandemic and to ensure maximum financial freedom of action during the beginning of 2021, the Board proposes that no dividend be paid for 2020. However, the Board may return later in the year and propose a dividend given the strong balance sheet of AQ Group.
The information in this interim report shall be made public in accordance with the EU Market Abuse Regulation and the Securities Market Act of Sweden. The information was released by CEO Anders Carlsson for publication at 08:00 hours on February 18, 2021.
AQ Group AB (publ) is listed on Nasdaq Stockholm's main market.
This report has not been reviewed by the company's financial auditors.
Further information can be given by AQ Group AB: CEO and IR, Anders Carlsson, telephone +46 70-513 42 99, [email protected] CFO, Christina Hegg, telephone +46 70-318 92 48, [email protected]
Financial reports and press releases are published in Swedish and English. If there are discrepancies between the two, the Swedish version shall prevail. They are available at www.aqg.se.
The Chief Executive Officer certifies that the interim report gives a true and fair overview of the Group's and the parent company's operations, financial position and results and describes material risks and uncertainties facing the parent company and the companies that form part of the Group.
Västerås, February 18, 2021
Anders Carlsson CEO
| Financial reports, summary | |||||
|---|---|---|---|---|---|
| Summary income statement for the Group | |||||
| SEK thousands | Note | Oct-Dec 2020 | Oct-Dec 2019 | Full year 2020 | Full year 2019 |
| Net sales | 1,256,203 | 1,299,754 | 4,819,001 | 5,112,602 | |
| Other operating income | 47,586 | 25,025 | 153,368 | 84,857 | |
| 1,303,789 | 1,324,778 | 4,972,369 | 5,197,459 | ||
| Change in inventory and work in progress | -7,132 | -15,261 | -18,374 | -8,787 | |
| Raw material and consumables | -581,835 | -644,856 | -2,351,525 | -2,579,663 | |
| Goods for resale | -39,495 | -23,758 | -88,720 | -66,215 | |
| Other external expenses | -122,019 | -133,924 | -468,834 | -534,998 | |
| Personnel costs | -355,259 | -372,226 | -1,352,532 | -1,406,937 | |
| Depreciation and amortisation | -56,984 | -59,886 | -233,996 | -220,191 | |
| Other operating expenses | -15,879 | -10,119 | -57,150 | -40,174 | |
| -1,178,603 | -1,260,030 | -4,571,131 | -4,856,964 | ||
| Operating profit | 125,185 | 64,749 | 401,238 | 340,495 | |
| Net financial income/expense | 5 | -14,171 | -6,771 | -32,134 | -19,084 |
| Profit before tax Taxes |
111,014 -18,290 |
57,978 -10,358 |
369,104 -51,226 |
321,412 -58,541 |
|
| Profit for the period | 92,724 | 47,619 | 317,878 | 262,871 | |
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Parent company shareholders | 92,099 | 46,865 | 315,420 | 260,878 | |
| Non-controlling interests | 625 | 755 | 2,458 | 1,992 | |
| 92,724 | 47,619 | 317,878 | 262,871 | ||
| Earnings per share 1) | 5.03 | 2.60 | 17.24 | 14.37 | |
| 1) There were no transactions during the year that might result in dilution effects. | |||||
| Statement of comprehensive income for the Group in summary | |||||
| SEK thousands | Oct-Dec 2020 | Oct-Dec 2019 | Full year 2020 | Full year 2019 | |
| PROFIT FOR THE PERIOD | 92,724 | 47,619 | 317,878 | 262,871 | |
| OTHER COMPREHENSIVE INCOME | |||||
| Items that cannot be transferred to the profit for the period | |||||
| -101 | -346 | -101 | -346 | ||
| Revaluation of defined benefit pension plans | |||||
| Revalutation of defined benefit pension plans, tax effect Items transferred or that can be transferred to the profit |
22 | 16 | 22 | 16 |
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||
|---|---|---|---|---|
| 1) There were no transactions during the year that might result in dilution effects. | ||||
| Statement of comprehensive income for the Group in summary | ||||
| PROFIT FOR THE PERIOD | 92,724 | 47,619 | 317,878 | 262,871 |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that cannot be transferred to the profit for the period | ||||
| Revaluation of defined benefit pension plans | -101 | -346 | -101 | -346 |
| Revalutation of defined benefit pension plans, tax effect | 22 | 16 | 22 | 16 |
| Items transferred or that can be transferred to the profit | ||||
| for the period Translation difference for foreign operations |
-108,230 | -53,026 | -142,324 | 20,213 |
| Other comprehensive income for the period after tax | -108,309 | -53,356 | -142,403 | 19,884 |
| Comprehensive income for the period | -15,585 | -5,736 | 175,475 | 282,754 |
| COMPREHENSIVE INCOME FOR THE PERIOD | ||||
| ATTRIBUTABLE TO: | ||||
| Parent company shareholders | -15,753 | -6,278 | 173,400 | 280,718 |
| Non-controlling interests | 168 -15,585 |
541 -5,736 |
2,075 175,475 |
2,036 282,754 |
| Summary balance sheet for the group | |||
|---|---|---|---|
| SEK thousands | Note | 31/12/2020 | 31/12/2019 |
| ASSETS | |||
| Goodwill | 330,244 | 353,246 | |
| Other intangible assets | 178,276 | 217,076 | |
| Tangible assets | 912,686 | 1,012,168 | |
| Financial assets | 1,676 | 2,123 | |
| Deferred tax assets | 53,990 | 54,244 | |
| TOTAL NON-CURRENT ASSETS | 1,476,872 | 1,638,858 | |
| Inventories | 815,731 | 889,952 | |
| Trade and other receivables | 995,212 | 1,043,903 | |
| Other current receivables | 125,103 | 118,269 | |
| 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 | |
| EQUITY AND LIABILITIES | |||
| 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 | |
| Non-current liabilities to credit institutions | 406,049 | 442,411 | |
| Non-current non-interest-bearing liabilities | 101,476 | 143,231 | |
| Total non-current liabilities | 507,525 | 585,642 | |
| Interest-bearing current liabilities | 390,660 | 474,004 | |
| Trade and other payables | 439,457 | 464,700 | |
| Other current liabilities | 5 | 336,189 | 312,802 |
| Total current liabilities | 1,166,306 | 1,251,506 | |
| TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES |
1,673,831 3,864,463 |
1,837,148 3,852,305 |
|
| Statement of changes in Equity for the Group | |||||||
|---|---|---|---|---|---|---|---|
| Share capital | Equity attributable to parent company shareholders | Subtotal | Total equity | ||||
| Other contributed | Translation reserve | Retained earnings incl. | Non-controlling interests | ||||
| SEK thousands | capital | profit | |||||
| 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 Revalutation of defined benefit pension plans |
20,159 | -336 | 20,159 -336 |
54 -10 |
20,213 -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 Other comprehensive income |
-141,937 | 22 -83 |
22 -142,020 |
-383 | 22 -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 |
| All shares, 18,294,058 pcs, are A-shares with equal voting rights and equal rights to the results. | |||||||
| Summary cash flow statement for the Group | Full year 2020 | Full year 2019 | |||||
| SEK thousands | Oct 1-Dec 31, 2020 | Oct 1-Dec 31, 2019 | 321,412 | ||||
| Profit before tax | 111,014 | 57,978 | 369,104 | ||||
| Adjustment for non cash generating items | 48,170 | 57,733 | 250,426 | 222,785 | |||
| Income tax paid Cash flow from operating activities before change in working |
-5,671 | -18,664 | -55,515 | -77,741 | |||
| capital | 153,520 | 97,047 | 564,015 | 466,456 | |||
| Increase (-)/decrease (+) in inventories | 23,563 | 34,144 | 31,402 | -8,866 | |||
| Increase (-)/decrease (+) in trade receivables | -27,540 | 50,038 | -2,691 | 105,725 | |||
| Increase (-)/decrease (+) in other receivables | -6,001 | 24,444 | -19,246 | 56,505 | |||
| Increase (+)/decrease (-) in trade payables | 14,777 | -50,549 | 2,858 | -65,015 | |||
| Increase (+)/decrease (-) in other liabilities Change in working capital |
4,948 9,748 |
-2,337 55,741 |
32,366 44,690 |
-55,648 32,701 |
| Dividends paid | |||||
|---|---|---|---|---|---|
| All shares, 18,294,058 pcs, are A-shares with equal voting rights and equal rights to the results. Summary cash flow statement for the Group |
|||||
| SEK thousands | Oct 1-Dec 31, 2020 | Oct 1-Dec 31, 2019 | Full year 2020 | Full year 2019 | |
| Profit before tax | 111,014 | 57,978 | 369,104 | 321,412 | |
| Adjustment for non cash generating items | 48,170 | 57,733 | 250,426 | 222,785 | |
| Income tax paid | -5,671 | -18,664 | -55,515 | -77,741 | |
| Cash flow from operating activities before change in working | |||||
| capital | 153,520 | 97,047 | 564,015 | 466,456 | |
| Increase (-)/decrease (+) in inventories | 23,563 | 34,144 | 31,402 | -8,866 | |
| Increase (-)/decrease (+) in trade receivables | -27,540 | 50,038 | -2,691 | 105,725 | |
| Increase (-)/decrease (+) in other receivables | -6,001 | 24,444 | -19,246 | 56,505 | |
| Increase (+)/decrease (-) in trade payables | 14,777 | -50,549 | 2,858 | -65,015 | |
| Increase (+)/decrease (-) in other liabilities Change in working capital |
4,948 9,748 |
-2,337 55,741 |
32,366 44,690 |
-55,648 32,701 |
|
| Cashflow from operating activities | 163,268 | 152,788 | 608,705 | 499,158 | |
| Aquisitions of shares in subsidiaries | - | - | -20,024 | -295,571 | |
| Acquisition of intangible non-current assets | -557 | -943 | -8,097 | -3,360 | |
| Acquisition of tangible non-current assets | -12,302 | -79,166 | -114,123 | -199,468 | |
| Sale of tangible non-current assets | -5,256 | 13,174 | 5,016 | 17,225 | |
| Försäljning av immateriella anläggningstillgångar | 405 | - | 406 | - | |
| Övriga förändringar i anläggningstillgångar | 836 | - | 111 | - | |
| Purchase/Sales of short-term investment in securities | - | 68 | - | 242 | |
| Cashflow from investing activities | -16,875 | -66,867 | -136,710 | -480,932 | |
| New borrowings, credit institutions | - | - | -600 | 299,115 | |
| Amortisation of loans | -1,462 | -31,723 | -20,122 | -62,132 | |
| Amortisation of loans (lease) | -22,872 | -23,129 | -91,180 | -85,418 | |
| Change in bank overdraft facilities | 4,360 | 7,821 | -58,714 | -59,675 | |
| Dividends to the parent company shareholders | - | - | - | -50,309 | |
| Other changes in financial activities | 1,124 | - | 1,124 | - | |
| -18,850 | -47,031 | -169,493 | 41,582 | ||
| Casflow from financing activities | 38,890 | 302,502 | 59,808 | ||
| Change in cash and cash equivalents for the period | 127,544 | 100,683 | |||
| Cash and cash equivalents at the beginning of the year Exchange rate difference in cash and cash equivalents |
332,748 -8,746 |
126,950 -4,517 |
161,323 -12,280 |
833 |
| Parent company development | |||||
|---|---|---|---|---|---|
| Parent company The parent company, AQ Group AB, focuses primarily on managing and developing the Group. As in previous years, the parent company's turnover consists almost exclusively of the sale of administrative services to subsidiaries. There are no purchases of any substance from subsidiaries. |
|||||
| Summary income statement for the Parent company | |||||
| SEK thousands | Note | Oct - Dec 2020 | Oct - Dec 2019 | Full year 2020 | Full year 2019 |
| Net sales | 11,264 | 9,609 | 43,442 | 43,113 | |
| Other operating income | 2,653 | 473 | 4,711 | 2,212 | |
| 13,916 | 10,082 | 48,154 | 45,326 | ||
| Other external expenses | -3,927 | -5,033 | -16,771 | -19,500 | |
| Personnel costs | -12,570 | -6,668 | -35,340 | -28,088 | |
| Other operating expenses | -101 | -53 | -413 | -711 | |
| -16,598 | -11,754 | -52,525 | -48,299 | ||
| Operating profit | -2,681 | -1,672 | -4,371 | -2,973 | |
| Net financial items | 5 | 11,460 | 19,370 | 51,692 | 137,091 |
| Earnings after net financial items | 8,779 | 17,698 | 47,321 | 134,118 | |
| Appropriations | 27,100 | 27,654 | 27,100 | 27,654 | |
| Profit before tax Taxes |
35,879 -3,893 |
45,352 -7,929 |
74,421 -641 |
161,772 -8,514 |
Net sales for the fourth quarter was SEK 11.3 million (9.6), higher than the same period in the previous year, because of increased invoicing of management fees (group common costs). Other external expenses were SEK 3.9 million (5.0). Personnel costs were SEK 12.6 million (6.7). Operating profit (EBIT) was SEK -2.7 million (-1.7). Costs for the resigning CEO have charged the quarter's personnel costs with SEK 2.7 million.
Net financial items were positive of SEK 11.5 million (19.4). Net financial items mainly consist of dividends, exchange rate losses and bank interest.
Net sales for the full year was SEK 43.4 million (43.1). Other external expenses were SEK 16.8 million (19.5). Personnel 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 income was 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).
| Summary balance sheet for the Parent company | |||||
|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | ---------------------------------------------- |
| Note | 31/12/2020 | 31/12/2019 |
|---|---|---|
| 1,272,356 | 1,199,083 | |
| - | 267 | |
| 1,199,350 | ||
| 387,523 | ||
| - | ||
| 387,523 | ||
| 1,586,873 | ||
| 37,745 | ||
| 610,645 | ||
| 648,389 | ||
| 52,400 | ||
| 353 | - | |
| 5 | - | 32,073 |
| 353 | 32,073 | |
| 210,000 | ||
| 210,000 | ||
| 609,118 2,766 |
||
| 32,126 | ||
| 644,010 | ||
| 886,083 | ||
| 1,753,359 | 1,586,873 | |
| Other current receivables are mainly receivables from Group companies MSEK 168 (376) and consist of | ||
| Non-current interest-bearing liabilities | Summary balance sheet for the Parent company 1,272,356 184,745 296,257 481,003 1,753,359 37,745 684,424 722,169 28,400 210,000 210,000 753,400 2,880 36,158 792,437 1,002,790 |
The increase in unrestricted equity of SEK 74 million compared to December 31, 2019 consists of profit for the period.
Untaxed reserves consist of accrual funds.
Non-current interest-bearing liabilities at the end of the period are unchanged from the previous year, SEK 210 million (210). Interest-bearing current liabilities refer to the short-term part of the non-current liabilities and the Group companies' cash pool balances.
Other current liabilities of SEK 36 million (32) consists of other liabilities and accrued expenses and prepaid income.
Other provisions referred to acquisition earnouts paid during the year.
The summary interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and applicable parts of the Swedish Annual Accounts Act. Information according to IAS 34.16A are presented in the financial reports and their notes as well as in other parts of the interim report. The interim report for the parent company has been prepared in accordance with Swedish Annual Accounts Act, chapter 9 Interim report. For the group and the parent company the accounting and valuation principles applied are the same as used in the latest annual report.
The total sum in tables and calculations do not always sum up of the parts due to rounding differences. The objective is that every interim row shall conform with the original source resulting in rounding differences.
The Group operates in two business segments: Component, which produces transformers, wiring systems, mechanical components, punched sheet metal and injection-molded thermoplastics and System, which produces systems, power and automation solutions and assembles complete machines in close collaboration with the customers.
For the segment Component, the total net sales for the fourth quarter was SEK 1,038 million (1,096), of which SEK 957 million (992) is external sales. The decrease of the external sales was SEK 35 million.
For the segment System, the total net sales for the fourth quarter was SEK 356 million (348), of which SEK 299 million (308) is external sales. The decrease of the external sales is SEK 8 million.
Operating profit (EBIT) in the fourth quarter was SEK 92 million (38) for Component, corresponding to an increase of SEK 54 compared to previous year. Operating profit (EBIT) for System was SEK 29 million (29), which was in line with last year.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| Oct-Dec 2020, SEK thousands | Component | System | eliminations | Group |
| Net sales, external | 956,909 | 299,294 | 1,256,203 | |
| Net sales, internal | 80,850 | 56,798 | -137,648 | |
| Total net turnover | 1,037,759 | 356,092 | -137,648 | 1,256,203 |
| Material costs, excl. purchases own segment | -502,578 | -242,972 | 117,087 | -628,463 |
| Depreciation | -47,214 | -9,597 | -173 | -56,984 |
| Other operating expenses/income | -395,932 | -74,885 | 25,246 | -445,571 |
| Operating profit | 92,035 | 28,639 | 4,512 | 125,185 |
| Net financial items | -14,171 | -14,171 | ||
| Profit before tax | 92,035 | 28,639 | -9,659 | 111,014 |
| Other comprehensive income plus tax | -126,600 | -126,600 | ||
| Comprehensive income for the period | 92,035 | 28,639 | -136,259 | -15,585 |
| Oct-Dec 2019, SEK thousands | ||||
| Net sales, external | 992,177 | 307,576 | 1,299,754 | |
| Net sales, internal | 104,400 | 40,794 | -145,194 | |
| Total net turnover | 1,096,577 | 348,370 | -145,194 | 1,299,754 |
| Material costs, excl. purchases own segment | -556,423 | -246,495 | 119,044 | -683,874 |
| Depreciation | -53,689 | -6,040 | -157 | -59,886 |
| Other operating expenses/income | -448,555 | -66,660 | 23,970 | -491,244 |
| Operating profit | 37,910 | 29,175 | -2,336 | 64,749 |
| Net financial items | -6,771 | -6,771 | ||
| Profit before tax | 37,910 | 29,175 | -9,107 | 57,978 |
| Other comprehensive income plus tax | -63,714 | -63,714 | ||
| Comprehensive income for the period | 37,910 | 29,175 | -72,821 | -5,736 |
| Full year | ||||
| For the segment Component, the total net sales for the full year were SEK 4,039 million (4,339), of | ||||
| which SEK 3,711 million (3,962) is external sales. The decrease of the external sales of totally SEK 252 | ||||
| million is mainly due to closed units and units affected by the automotive industry during the current | ||||
For the segment Component, the total net sales for the full year were SEK 4,039 million (4,339), of which SEK 3,711 million (3,962) is external sales. The decrease of the external sales of totally SEK 252 million is mainly due to closed units and units affected by the automotive industry during the current Corona pandemic.
For the segment System, the total net sales for the full year were SEK 1,299 million (1,300), of which SEK 1,108 million (1,150) is external sales. The decrease of the external sales of SEK 42 million is also due to units affected by the Corona pandemic.
Operating profit (EBIT) for the full year was SEK 268 million (244) for Component, which was SEK 23 million better than the same period last year. Operating profit (EBIT) for System was SEK 137 million (103), which was an improvement of SEK 35 million compared to the same period last year.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| Jan-Dec 2020, SEK thousands | Component | System | eliminations | Group |
| Net sales, external | 3,710,959 | 1,108,042 | 4,819,001 | |
| Net sales, internal | 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 Depreciation |
-1,998,086 -204,439 |
-889,440 -28,896 |
428,907 -661 |
-2,458,619 -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 period | 267,520 | 137,389 | -229,435 | 175,475 |
| Jan-Dec 2019, SEK thousands | ||||
| Net sales, external | 3,962,476 | 1,150,126 | 5,112,602 | |
| Net sales, internal | 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 Operating profit |
-1,718,564 244,430 |
-249,988 102,595 |
71,300 -6,530 |
-1,897,252 340,495 |
| 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 period | 244,430 | 102,595 | -64,271 | 282,754 |
| Sales divided by segment and geographical markets | ||||
| Fourth quarter | ||||
| The turnover divided among geographical markets in the fourth quarter: Sweden 35% (35), other | ||||
| European countries 50% (50) and other countries 15% (15). | ||||
| Unallocated and | ||||
| Component | System | eliminations | Group | |
| 245,821 | 230,047 | 11,264 | 487,132 | |
| Oct-Dec 2020, SEK Thousands | 71,302 | 700,343 | ||
| Sweden | ||||
| Other European countries | 629,041 | |||
| Other countries | 162,897 | 54,743 | 217,640 | |
| Net sales | 1,037,759 | 356,092 | 11,264 | 1,405,115 |
| Internal sales, eliminations Total net turnover |
1,037,759 | 356,092 | -148,912 -137,648 |
-148,912 1,256,203 |
| Sales divided by segment and geographical markets | ||||
|---|---|---|---|---|
| Fourth quarter | ||||
| The turnover divided among geographical markets in the fourth quarter: Sweden 35% (35), other | ||||
| European countries 50% (50) and other countries 15% (15). | ||||
| Unallocated and | ||||
| Oct-Dec 2020, SEK Thousands | Component | System | eliminations | Group |
| Sweden | 245,821 | 230,047 | 11,264 | 487,132 |
| Other European countries | 629,041 | 71,302 | 700,343 | |
| Other countries | 162,897 | 54,743 | 217,640 | |
| Net sales | 1,037,759 | 356,092 | 11,264 | 1,405,115 |
| Internal sales, eliminations | -148,912 | -148,912 | ||
| Total net turnover | 1,037,759 | 356,092 | -137,648 | 1,256,203 |
| Unallocated and | ||||
| Oct-Dec 2019, SEK Thousands | Component | System | eliminations | Group |
| Sweden | 279,195 | 220,205 | 9,609 | 509,008 |
| Other European countries | 645,367 | 87,290 | 732,657 | |
| Other countries | 172,016 | 40,875 | 212,891 | |
| Net sales | 1,096,577 | 348,370 | 9,609 | 1,454,556 |
| Internal sales, eliminations | -154,802 | -154,802 | ||
| Total net turnover | 1,096,577 | 348,370 | -145,194 | 1,299,754 |
| Geographical markets are based on where AQ Group's subsidiaries have their registered office. | ||||
| Unallocated and | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| eliminations | Group | ||||||||
| Full year | ||||
|---|---|---|---|---|
| The turnover divided among geographical markets for the full year: Sweden 33% (35), other | ||||
| European countries 52% (50) and other countries 15% (14). | ||||
| System | Unallocated and eliminations |
Group | ||
| Jan-Dec, SEK Thousands | Component | |||
| 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 Total net turnover |
4,038,672 | 1,298,820 | -561,933 -518,491 |
-561,933 4,819,001 |
| Unallocated and | ||||
| Jan-Dec 2019, SEK Thousands | Component | System | eliminations | Group |
| Sweden Other European countries |
1,146,703 2,519,117 |
822,634 334,105 |
43,113 | 2,012,451 2,853,222 |
| Full year | The turnover divided among geographical markets for the full year: Sweden 33% (35), other | ||||
|---|---|---|---|---|---|
| European countries 52% (50) and other countries 15% (14). | |||||
| Unallocated and | |||||
| eliminations | Group | ||||
| Net sales | 4,038,672 | 1,298,820 | 43,442 | 5,380,934 | |
| Internal sales, eliminations Total net turnover |
4,038,672 | 1,298,820 | -561,933 -518,491 |
-561,933 4,819,001 |
|
| Unallocated and | |||||
| Jan-Dec 2019, SEK Thousands | Component | System | eliminations | Group | |
| Sweden Other European countries |
1,146,703 2,519,117 |
822,634 334,105 |
43,113 | 2,012,451 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 Group's subsidiaries have their registered office. | |||||
| Note 3. Personnel | |||||
| Number of employees (full time yearly equivalents) in the Group per country: | |||||
| Jan-Dec 2020 | Jan-Dec 2019 | Jan-Dec 2018 | |||
| 1,233 | 1,308 | 1,268 | |||
| Bulgaria | |||||
| Poland | 940 | 1,123 | 1,147 | ||
| Sweden | 794 | 856 | 900 | ||
| Lithuania | 605 | 759 | 721 |
| Unallocated and | |||||||
|---|---|---|---|---|---|---|---|
| eliminations | Group | ||||||
| Geographical markets are based on where AQ Group's subsidiaries have their registered office. | |||||||
| Note 3. Personnel | |||||||
| Number of employees (full time yearly equivalents) in the Group per country: | |||||||
| Bulgaria | 1,233 | 1,308 | 1,268 | ||||
| Poland | 940 | 1,123 | 1,147 | ||||
| Sweden | 794 | 856 | 900 | ||||
| Lithuania | 605 | 759 | 721 | ||||
| Estonia | 581 | 596 | 420 | ||||
| China | 572 | 478 | 440 | ||||
| Hungary | |||||||
| 376 | 363 | 379 | |||||
| 205 | |||||||
| Mexico | 200 | 196 | |||||
| Finland | 187 | 215 | 121 | ||||
| Canada | 164 | 166 | 153 | ||||
| India | 137 | 129 | 133 | ||||
| USA | 72 | 78 | 105 | ||||
| Italy | 18 | 21 | 20 | ||||
| Brazil | 5 | 4 | - | ||||
| Serbia | 4 | 35 | 32 | ||||
| Germany | 3 | 3 | - | ||||
| Thailand | - 5,891 |
6,330 | - | 6,069 | 25 |
AQ's strategy is to grow in both segments. During the period January to December there were no acquisitions.
Financial instruments that are shown in the balance sheet include on the assets side mainly cash or cash equivalents, receivables from customers and other receivables. On the liabilities side they consist mainly of payables to suppliers, other payable, credit debts and provisions for additional purchase price.
Fair value is not separately shown as it is our assessment that the values shown are an acceptable estimation of the real value because of the short terms. Fair value of assets is established from market prices. Fair value is based on the listing at brokers. Similar contracts are being traded on an active market and the prices are reflecting actual transactions of comparable instruments.
The Group is only in exceptional cases using derivatives to reduce currency risks. Per December 31, the market value of derivatives amounted to SEK 0.9 million (-1.2) valued at level 2.
Additional purchase prices belong to valuation level 3 and have been valued at the amount they are estimated to turn out, based on terms in the acquisition agreements on future cash flows.
| B3CG | MiniCon | Total | |
|---|---|---|---|
| Debt opening balance 01/01/2020 | 32,073 | 900 | 32,973 |
| Payment of additional purchase price | -19,574 | -450 | -20,024 |
| Revaluation to fair value | -11,890 | -450 | -12,340 |
| Translation differences | -610 | - | -610 |
| Closing balance 31/12/2020 | - | - | - |
Information about events after the end of the reporting period are presented on page 6.
| Note 7. Calculation of key figures and definitions | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | 2020 Q3 |
Q4 | YTD | Q1 | Q2 | 2019 Q3 |
Q4 | Full year | |
| Operating margin, (EBIT %) Operating profit Net revenue Operating margin |
97,947 1,341,888 7.3% |
80,643 1,116,486 7.2% |
97,463 1,104,425 8.8% |
125,185 1,256,203 10.0% |
401,238 4,819,001 8.3% |
95,707 1,252,861 7.6% |
93,363 1,313,431 7.1% |
86,676 1,246,556 7.0% |
64,749 1,299,754 5.0% |
340,495 5,112,602 6.7% |
| EBITDA Profit before tax Depreciations/amortisations EBITDA |
97,947 -58,786 156,733 |
80,643 -59,443 140,087 |
97,463 -58,783 156,246 |
125,185 -56,984 182,169 |
401,238 -233,996 635,234 |
95,707 -47,543 143,250 |
93,363 -52,074 145,437 |
86,676 -60,687 147,363 |
64,749 -59,886 124,635 |
340,495 -220,191 560,686 |
| Profit margin before tax, (EBT %) Profit before tax Net revenue Profit margin before tax |
86,964 1,341,888 |
78,160 1,116,486 6.5% 7.0% |
92,966 1,104,425 8.4% |
111,014 1,256,203 8.8% |
369,104 4,819,001 7.7% |
92,949 1,252,861 7.4% |
88,478 1,313,431 6.7% |
82,007 1,246,556 6.6% |
57,978 1,299,754 4.5% |
321,412 5,112,602 6.3% |
| Liquid ratio, % Trade receivables Other current receivables Cash and cash equivalents Current liabilities Liquid ratio |
1,162,088 135,853 163,363 1,353,714 |
963,917 128,048 250,091 863,728 108% 155% |
1,003,649 140,764 332,748 875,934 169% |
995,212 125,103 451,545 1,166,306 135% |
995,212 125,103 451,545 1,166,306 135% |
1,102,473 130,916 114,916 1,251,913 108% |
1,172,077 133,749 122,807 1,402,806 102% |
1,111,759 151,642 126,950 1,343,761 103% |
1,043,903 118,269 161,323 1,251,506 106% |
1,043,903 118,269 161,323 1,251,506 106% |
| Debt/equity ratio, % Total equity Total assets Debt/equity ratio |
2,176,452 4,063,180 54% |
2,128,976 3,818,169 56% |
2,206,215 3,907,562 56% |
2,190,632 3,864,463 57% |
2,190,632 3,864,463 57% |
1,896,417 3,491,605 54% |
1,928,490 3,971,975 49% |
2,020,893 3,983,140 51% |
2,015,157 3,852,305 52% |
2,015,157 3,852,305 52% |
| Return on total assets, % Profit before tax, rolling 12 months Financial expenses, rolling 12 months Total equity and liabilities, opening balance for 12 months Total equity and liabilities, closing balance Total equity and liabilities, average Return on total assets |
315,426 -44,508 3,491,605 4,063,180 3,777,392 9.5% |
305,109 -38,732 3,971,975 3,818,169 3,895,072 8.8% |
316,068 -36,201 3,983,140 3,907,562 3,945,351 8.9% |
369,104 -47,963 3,852,305 3,864,463 3,858,384 10.8% |
369,104 -47,963 3,852,305 3,864,463 3,858,384 10.8% |
222,874 -19,547 2,904,192 3,491,605 3,197,898 7.6% |
255,941 -22,583 3,262,755 3,971,975 3,617,365 7.7% |
316,709 -27,215 3,104,465 3,983,140 3,543,803 9.7% |
321,412 -29,753 3,099,788 3,852,305 3,476,046 10.1% |
321,412 -29,753 3,099,788 3,852,305 3,476,046 10.1% |
| Return on equity after tax, % Profit for the period after tax, rolling 12 months Total equity, opening for 12 months Total equity, closing Total equity, average Return on equity after tax |
262,435 1,896,417 2,176,452 2,036,435 |
262,539 1,928,490 2,128,976 2,028,733 12.9% 12.9% |
272,773 2,020,893 2,206,215 2,113,554 12.9% |
317,878 2,015,157 2,190,632 2,102,894 15.1% |
317,878 2,015,157 2,190,632 2,102,894 15.1% |
171,292 1,759,434 1,896,417 1,827,925 9.4% |
194,180 1,754,072 1,928,490 1,841,281 10.5% |
262,738 1,736,971 2,020,893 1,878,932 14.0% |
262,871 1,782,711 2,015,157 1,898,934 13.8% |
262,871 1,782,711 2,015,157 1,898,934 13.8% |
| Net cash / Net debt Cash and cash equivalents Non-current interest bearing liabilities Current interest bearing liabilities Total interest bearing liabilities Net cash / Net debt |
163,363 419,767 411,897 831,664 -668,301 |
250,091 719,284 83,583 802,868 -552,776 |
332,748 721,066 77,327 798,394 -465,646 |
451,545 406,049 390,660 796,709 -345,164 |
451,545 406,049 390,660 796,709 -345,164 |
114,916 206,722 391,292 598,014 -483,098 |
122,807 496,249 533,659 1,029,907 -907,100 |
126,950 472,012 480,895 952,906 -825,956 |
161,323 442,411 474,004 916,416 -755,093 |
161,323 442,411 474,004 916,416 -755,093 |
| Growth, % Organic growth Net revenue - Effect of changes in exchange rates - Net revenue for last year - Net revenue for acquired companies |
1,341,888 14,028 1,252,861 141,559 |
1,116,486 -11,080 1,313,431 94,421 |
1,104,425 -44,443 1,246,556 - |
1,256,203 -49,282 1,299,754 - |
4,819,001 -90,777 5,112,602 235,981 |
1,252,861 32,407 1,090,122 95,224 |
1,313,431 25,307 1,223,542 37,667 |
1,246,556 18,195 1,137,327 134,417 |
1,299,754 25,530 1,216,228 132,989 |
5,112,602 101,439 4,667,220 400,297 |
| = Organic growth Organic growth divided by last year net revenue, % |
-66,560 -5.3% |
-280,288 -21.3% |
-97,688 -7.8% |
5,731 0.4% |
-438,804 -8.6% |
35,108 3.2% |
26,914 2.2% |
-43,384 -3.8% |
-74,994 -6.2% |
-56,354 -1.2% |
| Growth through acquisitions Net revenue for acquired companies divided by last year net revenue, % |
11.3% | 7.2% | 0.0% | 0.0% | 4.6% | 8.7% | 3.1% | 11.8% | 10.9% | 8.6% |
Calculated as operating profit divided by net sales.
This key figure shows the achieved profitability in the operative business of the company. Operating margin is a useful measure to follow up profitability and efficiency of the business before deduction of tied up capital. The figure is used internally for controlling and managing the business as well as a benchmark towards other companies in the industry.
Calculated as profit before tax divided by net sales.
This key figure shows the profitability of the business before tax. Profit margin before tax is an useful measure to follow up profitability and efficiency including tied up capital. The figure is used internally for controlling and managing the business as well as a benchmark towards other companies in the industry.
Calculated as current assets (excl. inventory) divided by current liabilities.
This key figure reflects the company's short-term solvency as it sets the company's current assets (except inventory) in relation to the short-term liabilities. If the liquid ratio exceeds 100%, it means that the assets exceed the liabilities in question.
Calculated as adjusted equity divided by balance sheet total.
This key figure reflects the company's financial position and its long-term solvency. To have a good equity ratio and thus a strong financial position is important for being able to manage business cycles with varying sales. To have a strong financial position is also important for managing growth.
Calculated as profit/loss after financial items plus financial costs divided by the average balance sheet total.
This key figure also shows the achieved profitability in the operative business. This number complements the operating margin as it includes tied up capital. It means that the number gives information on the return the business is given in relation to the capital tied in it. (Financial investments and cash and cash equivalents are also considered and the profit they give in the form of financial income.)
Calculated as profit/loss after tax divided by average equity including minority interest. This is a key figure showing the return of the capital that the owners have invested in the company (including retained earnings) after other stakeholders have received their dividends. This key figure shows how profitable the company is for its owners. This return also has significance for the company's opportunities to grow in a financial balance.
Calculated as the profit before tax and financial items.
Operating profit shows the result generated by the operative business and is used together with operating margin and return on total assets for evaluating and managing the operative business.
Calculated as the profit before tax.
The key figure shows the result generated by the operative business and financial income taking into account payments to creditors for the capital they are contributing to finance the business. The figure shows remaining profit to the owners taking into account that part of it will be deducted for tax payments.
Calculated as the difference between interest bearing debts and cash and cash equivalents. This key figure is reflecting how much interest-bearing debts the company has taking into account in cash and cash equivalents. The figure gives a good picture of the debt situation. Net cash means that cash and cash equivalents exceed interest bearing debts. Net debt means that interest bearing debts exceed cash and cash equivalents. AQ shows net debt both with and without regard of IFRS 16.
The company is using two key figures to describe growth; 1) organic growth and 2) growth through acquisitions.
Organic growth is calculated as the difference between the net sales of the current period and the net sales of the previous period, excluding currency effect and net sales of acquired units. Organic growth in % is calculated as the organic growth divided by the net sales in the same period in the 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 an important component in the company's strategy as growth is required to be a leading actor in the markets where the company is operating. Growth is partly through acquisition and partly organic. It's important to follow up and to present the different ways of achieving growth as it is two different ways to grow. Acquisitions are done when opportunities are given to expand the business in a certain geographic market or in a certain product area (in line with the company's strategic plan). Organic growth often has the character of a continued expansion within the existing operations.
Dividend per share is decided at the Annual General Meeting where the annual report is approved for the fiscal year. Number of shares are the thousands of shares issued at the set date for payment of dividends.
Is a measure of a company's operating profit before interest, tax, write-downs and depreciation of tangible and intangible assets. EBITDA stands for "earnings before interest, taxes, depreciation and amortization".
AQ is a leading supplier to demanding industrial customers and is listed on Nasdaq Stockholm's main market.
The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås, Sweden. AQ has, on December 31, 2020, in total about 5,900 employees in Sweden, Bulgaria, China, Estonia, Hungary, India, Italy, Lithuania, Mexico, Poland, Serbia, Finland, Canada, USA, Brazil and Germany.
In 2020 AQ had net sales of about SEK 4.8 billion, and the group has since its start in 1994 shown profit every quarter.
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