Earnings Release • Feb 23, 2017
Earnings Release
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V ä s t e r å s , F e b r u a r y 2 3 , 2 0 1 7
| 2016 | 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | |
| Net turnover, SEK thousands | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 878 |
| Operating profit (EBIT), SEK thousands | 76 712 | 92 326 | 52 646 | 59 669 | 281 353 | 51 649 | 56 269 | 39 162 | 54 905 | 201 985 |
| Profit after net financial items (EBT), SEK thousands | 75 954 | 90 758 | 53 050 | 59 583 | 279 344 | 56 136 | 57 216 | 43 655 | 54 728 | 211 736 |
| Operating margin (EBIT %) | 9,6% | 10,7% | 7,3% | 6,6% | 8,6% | 7,2% | 7,4% | 6,0% | 6,8% | 6,9% |
| Profit margin before tax (EBT %) | 9,5% | 10,6% | 7,3% | 6,6% | 8,5% | 7,8% | 7,5% | 6,7% | 6,8% | 7,2% |
| Liquid ratio | 157% | 153% | 164% | 142% | 142% | 150% | 146% | 149% | 143% | 143% |
| Debt/equity ratio | 60% | 60% | 64% | 60% | 60% | 62% | 61% | 62% | 58% | 58% |
| Return on total assets 2) | 12,6% | 14,0% | 14,5% | 13,1% | 13,1% | 12,9% | 13,3% | 13,1% | 12,0% | 12,0% |
| Return on equity excl. Tax 2) | 16,0% | 18,1% | 18,1% | 17,9% | 17,9% | 16,7% | 17,9% | 17,3% | 15,3% | 15,3% |
| Number of employees in Sweden | 815 | 803 | 791 | 1 005 | 1 005 | 805 | 858 | 903 | 812 | 812 |
| Number of employees outside Sweden | 3 817 | 3 865 | 3 888 | 4 158 | 4 158 | 3 149 | 3 189 | 3 224 | 3 706 | 3 706 |
| Key indicators per share, SEK 1) | ||||||||||
| Profit for the period | 3,46 | 4,18 | 2,58 | 2,79 | 13,01 | 2,47 | 2,61 | 1,95 | 2,41 | 9,44 |
| Equity | 68,82 | 71,56 | 75,79 | 79,98 | 79,98 | 62,06 | 61,58 | 64,08 | 64,86 | 64,86 |
| Number of shares, thousands 3) | 18 034 | 18 034 | 18 034 | 18 294 | 18 294 | 18 034 | 18 034 | 18 034 | 18 034 | 18 034 |
1) There are no instruments that could lead to share dilution. 2) Calculated based on 12 months rolling amounts.
3) In connection with the acquisition of Gerdins Industrial System AB, October 3 2016, 260 000 shares of the same category was issued.
The fourth quarter was our 89th consecutive quarter with profit.
We have increased our turnover every year since the start October 1, 1994 i.e. for 22 years. We have shown profit during all 89 quarters. 2016 shows yet again the highest turnover and profit in the history of the group.
Both turnover and profit is better than the same quarter in 2015, but we are not satisfied.
The fourth quarter is a quarter with substantially lower margins than the first and the second quarter. As I have previously communicated, we had an unusual number of projects with good operating margin during the first half of the year. Two of our production units in Sweden have profitability problems and action programs are ongoing, but it will take time to get them to satisfactory profitability. Including the acquisition of Gerdins Industrial System AB with subsidiaries the result of the fourth quarter should have been better.
Raw material prices, especially of steel, are increasing rapidly. Therefore, it is important that we can immediately adjust prices to our customers when prices of raw material are increasing.
The organic growth for the quarter was -4.6 % compared to the fourth quarter in 2015. This was mainly caused by decreasing sales to some of our customers in Sweden. Swedish industry is generally going well, but our customers in telecom and packaging machines have had lower sales and decreasing demands of mechanical parts caused by technical development.
As always, our focus is to adapt to our customers' requirements and real demand. It's a strategy we will continue to follow, to be fast movers and adaptable no matter of market conditions.
The Board has decided to let the goal for EBT margin before tax to remain at 8%.
Gerdins was acquired on October 3, 2016. It is our biggest acquisition so far when it comes to turnover. The subsidiaries of Gerdins have been integrated into AQ's existing business areas. Two of Gerdins' operations have not delivered results according to forecast. Improvements to rationalize administration and to reduce operating expenses are ongoing.
The acquisition brought a number of new exciting customers in industries such as defence, forestry and agriculture in Sweden and Germany. In the areas of marketing, purchasing and IT there are ongoing action plans. We have already seen savings within purchasing with the support of AQ's global purchasing organisation. Gerdins has a well-functioning sales organisation, which will help us to increase organic growth overall.
AQ Plast AB's transfer of production to Anderstorp from Vadstena is completed. The cost of the transfer has been higher than planned. There are still disturbances in the production in Anderstorp.
On January 16, the AQ share started trading on Nasdaq Stockholm Mid Cap. A movie from the bell ringing ceremony is available on our home page www.aqg.se.
Our organisation is built on entrepreneurship and it is a foundation of our core values.
India is a market with high growth. AQ sees a clear trend that many of our customers want to use India as an alternative to China also for deliveries to Europe. Our company in India grew strongly during 2016 and we believe in growth also for 2017. Profitability is still unsatisfactory though, but we saw a break in the trend at the end of the year. Quality and delivery precision have also improved.
Our company in Mexico is developing positively and has turned the loss in 2015 to a profit in 2016. We believe in solid growth for 2017 and the company is also delivering better value to the customers than earlier.
AQ was awarded mechanical supplier of the year in 2016 by Sony Mobile. Sony is assembling an increasing share of their mobile phones in Thailand instead of China. Our company in Thailand has thereby good opportunities for growth and profit improvements in 2017.
My feeling is, despite the negative organic growth in the fourth quarter, that we are gaining market shares in several areas and are also entering new markets. However, one shall be aware of the fact that AQ is acting in a global competition with subsequent price pressure.
With strong relations to world leading customers and engaged employees I am looking positively at the future with continued growth with stable profit level. An important part of this is our core values and our efforts to be a reliable supplier to leading industrial customers.
AQ is well positioned for new acquisitions from a financial as well as from a management view.
I would like to especially thank our customers for a good cooperation and our employees for their good work during 2016.
Claes Mellgren CEO
Net sales for the fourth quarter was SEK 905 million (803), an increase of SEK 102 million compared to the same period in the previous year. The increase in turnover is due to acquisitions SEK 128 million, whereof Anton Kft. accounted for SEK 24 million, Magnetica Italy for SEK 4 million and Gerdins Industrial System AB with subsidiaries accounted for SEK 100 million. In addition, sales in India, Poland and Mexico have increased compared to the same period last year. The sales in Sweden have decreased though. The total growth in the quarter was 12.6 %, of which organic growth -4.6 %, growth through acquisitions 15.9 % and currency effects of 1.3 %. The currency effect of 1.3 % corresponds to about SEK 10.4 million and is mainly with the currencies EUR, BGN and HUF.
Operating margin (EBIT) in the fourth quarter was SEK 60 million (55), an increase of SEK 5 million. The increase can mainly be explained by the acquisition of Anton Kft. in Hungary and AQ Wiring Systems in Mexico having turned last year's losses to profit. The Swedish companies showed a total EBIT, which was lower than the same period in the previous year. The companies in China and Poland showed a higher EBIT than last year. The EBIT of Gerdins was lower than expected.
Goodwill and other intangible assets have increased during the fourth quarter with SEK 48.1 million compared to September 30, 2016, an increase due to the acquisition of Gerdins 45.7 and currency effects. If goodwill in the fourth quarter of 2016 is compared with the fourth quarter in 2015, it has increased by SEK 59.7 million. The increase is due to the acquisitions of Gerdins, Magnetica in Italy and Serbia and currency effects.
Investments in material assets in the quarter in the group was SEK 32 million (34). Investments were made in metal-cutting machines in AQ Anton Kft. in Hungary, in a fibre-laser machine in AQ Holmbergs in China and in two robots in AQ Segerström & Svensson AB.
Interest bearing debts of the group are SEK 272 million (281) and cash and cash equivalents amount to SEK 163 million (136), which means that the group has a net debt of SEK 109 million. In the same period last year, the group had net debt of SEK 145 million. The positive change is due to higher amortization of the loan in conjunction with the acquisition of Anton Kft. in the fourth quarter of 2015 than the credit taken in conjunction with the acquisition of Gerdins in the fourth quarter of 2016.
Cash flow from operating activities was SEK 55 million (35). The positive cash flow from operating activities has been used for investments in fixed assets and to acquire subsidiaries.
Equity at the end of the period was SEK 1 463 million (1 170) for the group.
Net sales for the full year was SEK 3 289 million (2 932), an increase of SEK 357 million compared to the same period previous year. The largest part of the increase in turnover is due to the acquisition of Anton Kft. in Hungary last year and the acquisition of Gerdins at the end of this year. The sales in Poland, Mexico and India have also increased compared to the last year.
For the full year, the total growth was 12.2 %, of which organic growth 1.7 %, growth through acquisitions 11.2 % and currency effects of -0.7 %. The currency effects of -0.7 % correspond to about SEK -20 million and is mainly with the currencies CNY, PLN and MXN, offset by a positive effect in EUR.
Operating margin (EBIT) in the period was SEK 281 million (202), an increase of SEK 79 million. The increase can mainly be explained by the acquisition of Anton Kft. in Hungary and AQ Enclosure Systems AB and AQ Wiring Systems in Mexico having turned last year's losses to profit. The Swedish companies have a somewhat better result than last year; however, a few Swedish companies are making losses.
In conjunction with the liquidation of our Norwegian subsidiary AQ Wiring Systems AS, accumulated translation differences have had a negative effect on the result. These costs amount to SEK 6.7 million and are included in the item other operating costs.
Goodwill and other intangible assets have increased with SEK 60 million since the start of the year. The increase is due to the acquisition of Gerdins and Magnetica in Italy and Serbia, and some currency effects.
The investments in material assets of the group in the year were SEK 119 million (79). Investments during the year have been made in metal-cutting machines in Hungary and in injection moulding machines in Sweden and Bulgaria.
Interest bearing debts of the group are SEK 272 million (281 at the start of the year) and cash and cash equivalents amount to SEK 163 million (136 at the start of the year), which means that the group has a net debt of SEK 109 million (145 at the start of the year). This means that the interest-bearing debts have decreased with SEK 9 million since the start of the year and cash and cash equivalents have increased with SEK 27 million since the start of the year. Thus, net debt has decreased with SEK 36 million compared to end of 2015.
Cash flow from operating activities were SEK 290 million (166). The increase is due to AQ's good result.
Equity at the end of the period was SEK 1 463 million (1 170) for the group.
Result development for the respective segments, please see note 2.
AQ Group AB (publ) submitted on March 15, 2016 a preliminary application for admission to trading of its shares on Nasdaq Stockholm's main market. The shares of the company have been traded on AktieTorget since 2001. In conjunction with the application, Glen Nilsson was employed responsible for IR.
AQ Plast AB decided to close the manufacturing site in Vadstena. The background to the change was to improve the competitiveness of AQ Plast AB by having fewer production sites. Production was moved successively from Vadstena to Anderstorp and Västerås. In conjunction with the change a notice of redundancy was given for all 32 employees in Vadstena. Operations in Vadstena was closed during 2016.
Our operations in Mexico continued to develop positively. In our factory in India we started deliveries of complex aluminium enclosures to a train manufacturer. The enclosures are welded in our new FSW (Friction Stir Welding) equipment.
We received permit for our investment in ED (Electro Discharge) painting equipment in AQ Electric in Radomir. AQ will have the first ED facility in Bulgaria. It's an investment of about EUR 1 million. ED is a surface treatment method used in the automotive industry.
AQ Italy S.r.l acquired Magnetica S.r.l. and its subsidiary Magnetica Technology D.o.o. The companies design and manufacture electromagnetic components and power supplies and have operations in Italy and Serbia. Our operations in Mexico continued to develop positively and showed a positive result.
On September 21, AQ signed an agreement with Gerdins Holding AB to acquire 100% of the shares of Gerdins Industrial System AB with subsidiaries.
AQ Plast AB's transfer of production to Anderstorp from Vadstena was completed.
On October 3, 2016 AQ Group AB acquired 100% of the shares in Gerdins Industrial System AB with subsidiaries, see note 4.
On January 5, 2017 Nasdaq Stockholm's listing committee approved the trading of the shares of AQ Group AB (publ) on Nasdaq Stockholm's main market. The last trading day of the shares on AktieTorget was January 13, 2017. First trading day of the company's shares on Nasdaq was January 16, 2017.
The company's shareholders did not need to take any action because of the listing. The stock exchange listing was not combined with any issue, sale or other offering to the market.
AQ Group AB (publ) prepared a prospectus due to the listing, which has been approved and registered by Finansinspektionen (Swedish Financial Supervisory Authority). The prospectus is available at the company's homepage (www.aqg.se) and on the homepage of Finansinspektionen (www.fi.se/Register/Prospektregistret).
The goal of the group is continued profitable growth. The Board of directors are 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 and 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 2016 | |
|---|---|---|
| Product quality | 100 % | 99.6 % |
| Delivery precision | 98 % | 94.1 % |
| Equity ratio | >40 % | 60 % |
| Profit margin before tax (EBT %) | 8 % | 8.5 % |
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 2016 AQ Group AB has paid SEK 40.6 million in dividends to its shareholders. There have been no other transactions between AQ and closely related parties which significantly affected the position or result of the company. There are no loans to members of the board of directors nor to anyone in leading positions.
At the annual general meeting on April 21, 2016 it was decided that a yearly fee of SEK 120 000 shall be paid to the members of the board of directors and a fee of SEK 300 000 to the chairman of the board. 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 twelve 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 2015. No additional significant risks have been identified since the annual report of 2015 was published. 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 risks related to interest rates and currency. The exposure to risks related to interest rates are low and relates to the group's financing with credit institutions and are currently with floating interest, connected to the base interest of the bank which is connected to the interest rate of Sweden's central bank.
Transactions and assets and debts 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 Annual General Meeting 2017 consists of P-O Andersson, Claes Mellgren and Björn Henriksson. Chairman of the nomination committee is Björn Henriksson who represents Nordea Asset Management.
Interim report Q1, 2017 April 27, 2017 at 8:00 Annual General Meeting 2017 April 27, 2017 at 18:00 Interim report Q2, 2017 August 17, 2017 at 8:00
The Annual Report for 2016 will be available at the company's homepage latest April 3, 2017.
The Annual General Meeting will be held on April 27, 2017 at 18:00 at Aros Congress Center, Munkgatan 7 in Västerås.
The information of this year-end report shall be made public according to the Securities Market Act of Sweden. AQ Group AB (publ) is listed on Nasdaq Stockholm's main market.
The information was made public on February 23, 2017 at 8.30 AM. This report has not been reviewed by the company's financial auditors.
Further information can be given by AQ Group AB: CEO, Claes Mellgren, telephone +46 70-592 83 38, [email protected] or via CFO, Mia Tomczak, telephone +46 70-833 00 80, [email protected] or via IR, Glen Nilsson, telephone +46 70-654 40 03, [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 23, 2017
Claes Mellgren, CEO
| SEK thousands | Oct-Dec 2016 | Oct-Dec 2015 Full year 2016 Full year 2015 | ||
|---|---|---|---|---|
| Net sales | 904 575 | 803 281 | 3 289 215 | 2 931 878 |
| Other operating income | 21 686 | 14 223 | 47 650 | 34 005 |
| 926 261 | 817 505 | 3 336 866 | 2 965 883 | |
| Change in inventory and work in progress | 4 958 | 10 118 | -2 420 | 41 934 |
| Raw material and consumables | -440 744 | -409 903 | -1 575 262 | -1 513 009 |
| Goods for resale | -15 392 | -21 998 | -43 247 | -41 003 |
| Other external expenses | -131 869 | -115 816 | -439 285 | -389 620 |
| Personnel costs | -248 632 | -195 769 | -873 114 | -762 041 |
| Depreciation and amortisation | -25 337 | -17 843 | -79 944 | -60 980 |
| Other operating expenses | -9 576 | -11 387 | -42 241 | -39 177 |
| -866 592 | -762 599 | -3 055 513 | -2 763 897 | |
| Operating profit | 59 669 | 54 905 | 281 353 | 201 985 |
| Net financial income/expense | -86 | -177 | -2 008 | 9 751 |
| Profit before tax | 59 583 | 54 728 | 279 344 | 211 736 |
| Taxes | -8 415 | -11 295 | -43 666 | -41 283 |
| Profit for the period | 51 168 | 43 434 | 235 678 | 170 453 |
| PROFIT FOR THE PERIOD ATTRIBUTABLES TO: | ||||
| Parent company shareholders | 51 070 | 43 495 | 235 265 | 170 283 |
| Non-controlling interests | 98 | -61 | 413 | 170 |
| 51 168 | 43 434 | 235 678 | 170 453 | |
| Earnings per share 1) | 2,79 | 2,41 | 13,01 | 9,44 |
1) There were no transactions during the year that might result in dilution effects.
In conjunction with the acquisition of Gerdins Industrial System AB on October 3, 2016, 260 000 shares of the same kind were issued.
| SEK thousands | Oct-Dec 2016 | Oct-Dec 2015 Full year 2016 Full year 2015 | ||
|---|---|---|---|---|
| PROFIT FOR THE PERIOD | 51 168 | 43 434 | 235 678 | 170 453 |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that cannot be transferred to the profit for the period | ||||
| Revaluation of defined benefit pension plans | -303 | -219 | -303 | -219 |
| Items transferred or that can be transferred to the | ||||
| profit for the period | ||||
| Translation difference transferred to the profit | 6 737 | |||
| Translation difference for foreign operations | -5 188 | -29 824 | 41 304 | -20 317 |
| Other comprehensive income for the period after tax | -5 491 | -30 043 | 47 739 | -20 535 |
| Comprehensive income for the period | 45 677 | 13 391 | 283 417 | 149 918 |
| COMPREHENSIVE INCOME FOR THE | ||||
| PERIOD ATTRIBUTABLE TO: | ||||
| Parent company shareholders | 45 607 | 13 981 | 282 902 | 149 763 |
| Non-controlling interests | 70 | -591 | 515 | 155 |
| 45 677 | 13 391 | 283 417 | 149 918 |
| SEK thousands | 31/12/2016 | 31/12/2015 |
|---|---|---|
| ASSETS | ||
| Goodwill | 148 393 | 117 561 |
| Other intangible assets | 84 181 | 55 360 |
| Tangible assets | 495 915 | 402 749 |
| Financial assets | 2 147 | 2 053 |
| Deferred tax assets | 9 453 | 7 197 |
| TOTAL NON-CURRENT ASSETS | 740 089 | 584 920 |
| Inventories | 581 332 | 485 252 |
| Trade and other receivables | 805 186 | 670 438 |
| Other current receivables | 160 179 | 147 876 |
| Short term investments | 204 | 195 |
| Cash and cash equivalents | 162 812 | 135 602 |
| TOTAL CURRENT ASSETS | 1 709 712 | 1 439 362 |
| TOTAL ASSETS | 2 449 801 | 2 024 282 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to parent company shareholders | 1 460 455 | 1 167 429 |
| Non-controlling interests | 2 739 | 2 307 |
| TOTAL EQUITY | 1 463 195 | 1 169 736 |
| Non-current liabilities to credit institutions | 107 779 | 121 045 |
| Non-current non-interest-bearing liabilities | 84 246 | 65 338 |
| Total non-current liabilities | 192 025 | 186 382 |
| Interest-bearing current liabilities | 164 034 | 159 866 |
| Trade and other payables | 351 986 | 273 780 |
| Other current liabilities | 278 562 | 234 518 |
| Total current liabilities | 794 582 | 668 164 |
| TOTAL LIABILITIES | 986 607 | 854 546 |
| TOTAL EQUITY AND LIABILITIES | 2 449 801 | 2 024 282 |
| Equity attributable to parent company shareholders | |||||||
|---|---|---|---|---|---|---|---|
| Share capital | Other | Translation | Retained | Subtotal | Non | Total equity | |
| contributed | reserve | earnings incl. | controlling | ||||
| SEK thousands | capital | Profit | interests | ||||
| Equity, 01/01/2015 | 36 068 | 34 014 | 44 508 | 939 041 | 1 053 631 | 1 599 | 1 055 230 |
| Profit for the year | 170 283 | 170 283 | 170 | 170 453 | |||
| Translation differences in foreign operations | -20 205 | -20 205 | -112 | -20 316 | |||
| Remeasurements of defined benefit pension plans | -212 | -212 | - 7 |
-219 | |||
| Other comprehensive income | -20 205 | -212 | -20 416 | -119 | -20 535 | ||
| Total comprehensive income | -20 205 | 170 071 | 149 867 | -231 | 149 918 | ||
| Changes in non-controlling interests | 657 | 657 | |||||
| Dividends paid | -36 068 | -36 068 | -36 068 | ||||
| Transactions with shareholders | -36 068 | -36 068 | 657 | -35 412 | |||
| Equity, 01/01/2016 | 36 068 | 34 014 | 24 303 | 1 073 044 | 1 167 431 | 2 307 | 1 169 738 |
| Profit for the year | 235 265 | 235 265 | 413 | 235 678 | |||
| Translation differences in foreign operations | 47 933 | 47 933 | 109 | 48 042 | |||
| Remeasurements of defined benefit pension plans | -296 | -296 | - 7 |
-303 | |||
| Other comprehensive income | 47 933 | -296 | 47 637 | 102 | 47 739 | ||
| Comprehensive income for the year | 47 933 | 234 969 | 282 902 | 516 | 283 417 | ||
| Changes in non-controlling interests | -83 | -83 | |||||
| Issue | 520 | 50 180 | 50 700 | 50 700 | |||
| Dividends paid | -40 577 | -40 577 | -40 577 | ||||
| Transactions with shareholders | 520 | 50 180 | -40 577 | 10 123 | -83 | 10 040 | |
| Equity, 31/12/2016 | 36 588 | 84 194 | 72 236 | 1 267 437 | 1 460 455 | 2 739 | 1 463 195 |
All shares, 18 294 058 pcs, are A-shares with equal voting rights and equal rights to the results. In conjunction with the acquisition of Gerdins Industrial System AB on October 3, 2016, 260 000 shares of the same kind were issued.
| SEK thousands | 1 Oct - 31 Dec, 2016 | 1 Oct - 31 Dec, 2015 | Full year 2016 | Full year 2015 |
|---|---|---|---|---|
| Profit before tax | 59 583 | 54 728 | 279 344 | 211 736 |
| Adjustment for non cash generating items | 106 959 | 21 516 | 162 081 | 74 163 |
| Income tax paid | -6 995 | -1 597 | -45 182 | -39 605 |
| Cash flow from operating activities before change in | ||||
| working capital | 159 547 | 74 647 | 396 243 | 246 294 |
| Increase (-)/decrease (+) in inventories | -25 012 | 30 725 | -19 927 | -4 565 |
| Increase (-)/decrease (+) in trade receivables | -34 944 | -15 586 | -42 936 | -47 226 |
| Increase (-)/decrease (+) in other receivables | -66 750 | -1 936 | -66 030 | -58 204 |
| Increase (+)/decrease (-) in trade payables | 20 492 | -39 274 | 15 448 | 15 855 |
| Increase (+)/decrease (-) in other liabilities | 1 760 | -14 029 | 7 452 | 13 410 |
| Change in working capital | -104 452 | -40 100 | -105 993 | -80 730 |
| Cashflow from operating activities | 55 095 | 34 547 | 290 251 | 165 564 |
| Aquisitions of shares in subsidiaries | -64 069 | -183 377 | -64 035 | -189 177 |
| Acquisition of intangible non-current assets | -1 054 | -1 559 | -1 922 | -1 857 |
| Acquisition of tangible non-current assets | -31 816 | -34 247 | -119 436 | -78 613 |
| Sale of tangible non-current assets | 1 696 | 2 091 | 1 793 | 2 093 |
| Purchase/Sales of short-term investment in securities | 0 | 1 | 0 | -199 |
| Cashflow from investing activities | -95 243 | -217 092 | -183 600 | -267 754 |
| New borrowings | 39 594 | 149 771 | 39 715 | 149 771 |
| Amortisation of loans | -9 643 | -974 | -32 101 | -11 758 |
| Amortisation of loans (IAS 17 liability, leasing) | -1 304 | -3 450 | -2 786 | -5 121 |
| Change in bank overdraft facilities | 58 151 | 8 213 | -47 887 | -3 409 |
| Dividends to the parent company shareholders | 0 | 0 | -40 577 | -36 068 |
| Other changes in financial activities | -137 | 318 | -58 | 318 |
| Casflow from financing activities | 86 661 | 153 878 | -83 693 | 93 733 |
| Increase(Decrease in cash and cash equivalents | 46 513 | -28 667 | 22 958 | -8 457 |
| Cash and cash equivalents at the beginning of the year | 118 960 | 166 388 | 135 602 | 145 744 |
| Exchange rate difference in cash and cash equivalents | -2 660 | -2 119 | 4 252 | -1 684 |
| Cash and cash equivalents at the end of the year | 162 812 | 135 602 | 162 812 | 135 602 |
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.
| SEK thousands | Oct - Dec 2016 Oct - Dec 2015 Full year 2016 Full year 2015 | |||
|---|---|---|---|---|
| Net sales | 16 044 | 22 325 | 55 696 | 50 213 |
| Other operating income | 592 | 3 695 | 3 | |
| 16 636 | 22 325 | 59 391 | 50 216 | |
| Other external expenses | -3 957 | -3 674 | -21 169 | -16 685 |
| Personnel costs | -5 155 | -6 263 | -17 701 | -18 386 |
| Depreciation and amortisation | -390 | - 3 |
-390 | -12 |
| Other operating expenses | -54 | -102 | -415 | -1 538 |
| -9 556 | -10 043 | -39 675 | -36 621 | |
| Operating profit | 7 080 | 12 282 | 19 716 | 13 596 |
| Net financial items | -79 | 229 | 98 358 | 6 500 |
| Earnings after net financial items | 7 001 | 12 512 | 118 074 | 20 095 |
| Appropriations | 2 350 | -6 100 | 2 350 | -6 100 |
| Profit before tax | 9 351 | 6 412 | 120 424 | 13 995 |
| Taxes | -1 530 | -1 473 | -4 738 | -3 142 |
| Profit for the period | 7 821 | 4 938 | 115 686 | 10 854 |
Net sales for the fourth quarter was SEK 16.0 million (22.3), somewhat lower than the same period in the previous year, partly because of lower invoicing of management fees (group commons costs). Other external expenses were SEK 4.0 million (3.7). Personnel costs were SEK 5.2 million (6.3), the decrease of SEK 1.1 million is due to internal rationalization. Operating profit (EBIT) was SEK 7.1 MSEK (12.3). Net financial items were SEK -0.1 million (0.2).
Net sales for the full year were SEK 55.7 million (50.2), a consequence of higher invoicing of management fees than the same period previous year. Other external expenses of SEK 21.2 million (16.7), include costs related to the change of stock exchange from AktieTorget to Nasdaq Stockholm main market, which occurred on January 16, 2017. Personnel costs were SEK 17.7 million (18.4) and is in parity with the previous year. Net financial items for the full year 2016 were SEK 98.4 million (6.5), of which SEK 94.4 million are tax free dividends from subsidiaries and SEK 2.8 million is a liquidation profit of the Norwegian subsidiary AQ Wiring Systems AS. The parent company has received a repayment of purchase price of SEK 2 million for a previous acquisition. Appropriations consist of group contributions from subsidiaries and provisions to a tax allocation reserve.
| Summary balance sheet for the Parent company | |||||
|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | ---------------------------------------------- |
| SEK thousands | 31/12/2016 | 31/12/2015 |
|---|---|---|
| ASSETS | ||
| Tangible assets | 1 354 | - |
| Financial fixed assets | 785 990 | 662 251 |
| Deferred tax assets | 518 | 690 |
| TOTAL NON-CURRENT ASSETS | 787 861 | 662 941 |
| Other current receivables | 251 503 | 168 389 |
| Cash and cash equivalents | - | - |
| TOTAL CURRENT ASSETS | 251 503 | 168 389 |
| TOTAL ASSETS | 1 039 365 | 831 330 |
| EQUITY AND LIABILITIES | ||
| Restricted equity | 37 745 | 37 225 |
| Non-restricted equity | 357 931 | 229 528 |
| Total equity | 395 676 | 266 752 |
| Untaxed reserves | 44 100 | 41 300 |
| Deferred tax liabilities | 5 | - |
| Other provisions | 7 000 | - |
| Interest-bearing non-current liabilities | 90 439 | 119 681 |
| Total non-current liabilities | 97 444 | 119 681 |
| Interest-bearing current liabilities | 491 327 | 391 531 |
| Trade and other payables | 2 040 | 1 648 |
| Other current liabilities | 8 778 | 10 418 |
| Total current liabilities | 502 146 | 403 597 |
| TOTAL LIABILITIES | 599 589 | 523 278 |
| TOTAL EQUITY AND LIABILITIES | 1 039 365 | 831 330 |
The increase in financial fixed assets is related to the acquisition of Gerdins.
Other provisions of SEK 7 million consist of the calculated earnout payment of the acquisition of Gerdins.
The decrease of interest-bearing non-current liabilities is due to a yearly amortization of SEK 30 million. Interestbearing current liabilities have increased partly because the parent company has used its overdraft to finance the acquisition of Gerdins. The parent company has in parallel used the tax-free dividends to decrease the overdraft.
Other current liabilities have decreased with SEK 1.6 million compared to the same period previous year.
The summary interim report has been prepared in accordance with the Swedish Annual Accounts Act as well as IFRS, applying IAS 34, Interim Financial Reporting. 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.
AS of July 3, 2016, ESMAs (European Securities And Markets Authority) "Guidelines – Alternative performance measures" are applied. In accordance with these guidelines information about financial numbers have been added that are not defined by IFRS.
The Group operates in two business segments: Component, which produces transformers, wiring systems, mechanical components, punched sheet metal and injection-moulded thermoplastics and System, which produces systems, power and automation solutions and assembles complete machines in close collaboration with the customers.
| Unallocated and | ||||
|---|---|---|---|---|
| Q4 2016 | Component | System | eliminations | Group |
| Net sales, external | 712 171 | 192 404 | 904 575 | |
| Net sales, internal | 65 952 | 34 564 | -100 516 | |
| Total net turnover | 778 123 | 226 968 | -100 516 | 904 575 |
| Material costs, excl. purchases own segment | -393 770 | -149 947 | 92 539 | -451 178 |
| Depreciation | -23 730 | -773 | -835 | -25 337 |
| Other operating expenses/income | -331 002 | -60 307 | 22 918 | -368 390 |
| Operating profit | 29 621 | 15 941 | 14 107 | 59 669 |
| Net financial items | -86 | -86 | ||
| Profit before tax | 29 621 | 15 941 | 14 020 | 59 583 |
| Other comprehensive income plus tax | -13 906 | -13 906 | ||
| Comprehensive income for the period | 29 621 | 15 941 | 115 | 45 677 |
| Q4 2015 | ||||
| Net sales, external | 603 858 | 199 423 | 803 281 | |
| Net sales, internal | 48 698 | 36 553 | -85 251 | |
| Total net turnover | 652 556 | 235 977 | -85 251 | 803 281 |
| Material costs, excl. purchases own segment | -315 619 | -174 104 | 67 940 | -421 783 |
| Depreciation | -13 887 | -1 131 | -2 825 | -17 843 |
| Other operating expenses/income | -301 270 | -62 017 | 54 538 | -308 750 |
| Operating profit | 21 780 | -1 399 | 34 524 | 54 905 |
| Net financial items | -177 | -177 | ||
| Profit before tax | 21 780 | -1 399 | 34 347 | 54 728 |
| Other comprehensive income plus tax | -41 338 | -41 338 | ||
| Comprehensive income for the period | 21 780 | -1 399 | -6 990 | 13 390 |
For the segment Component, the total net sales for the fourth quarter was SEK 778 million (653), of which SEK 712 million (604) is external sales. The increase of the external sales of totally SEK 108 million is due to the acquisition of AQ Anton Kft. and Gerdins.
For the segment System, the total net sales for the fourth quarter was SEK 227 million (236), of which SEK 192 million (199) is external sales. The decrease of the external sales of SEK 7 million is due to reduced demand of assembly of packaging machines.
Operating profit (EBIT) was in the fourth quarter SEK 30 million (22) for Component, which was SEK 8 million better than the same period last year. The reason for the profit improvement of Component is mainly due to the acquisition of Anton Kft in Hungary and AQ Wiring Systems in Mexico having turned last year's losses to profit. Operating profit (EBIT) for System was SEK 16 million (-1) due to profitable projects within electrical assembly during the year.
Lower personnel costs in AQ Enclosure Systems AB due to reductions in force, have influenced EBIT positively both for System and Component.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, mainly real estate companies, parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| YTD 2016 | Component | System | eliminations | Group |
| Net sales, external | 2 542 355 | 746 860 | 3 289 215 | |
| Net sales, internal | 227 839 | 153 236 | -381 074 | |
| Total net turnover | 2 770 194 | 900 096 | -381 074 | 3 289 215 |
| Material costs, excl. purchases own segment | -1 360 904 | -618 628 | 358 603 | -1 620 929 |
| Depreciation | -75 871 | -3 770 | -303 | -79 944 |
| Other operating expenses/income | -1 147 573 | -197 532 | 38 116 | -1 306 990 |
| Operating profit | 185 846 | 80 165 | 15 342 | 281 353 |
| Net financial items | -2 008 | -2 008 | ||
| Profit before tax | 185 846 | 80 165 | 13 333 | 279 344 |
| Other comprehensive income plus tax | 4 073 | 4 073 | ||
| Comprehensive income for the period | 185 846 | 80 165 | 17 406 | 283 417 |
| YTD 2015 | ||||
| Net sales, external | 2 148 538 | 783 340 | 2 931 878 | |
| Net sales, internal | 191 184 | 127 837 | -319 021 | |
| Total net turnover | 2 339 722 | 911 177 | -319 021 | 2 931 878 |
| Material costs, excl. purchases own segment | -1 160 049 | -649 379 | 297 349 | -1 512 079 |
| Depreciation | -51 769 | -4 628 | -4 584 | -60 980 |
| Other operating expenses/income | -984 139 | -222 959 | 50 265 | -1 156 833 |
| Operating profit | 143 765 | 34 211 | 24 009 | 201 985 |
| Net financial items | 9 751 | 9 751 | ||
| Profit before tax | 143 765 | 34 211 | 33 760 | 211 736 |
| Other comprehensive income plus tax | -61 819 | -61 819 | ||
| Comprehensive income for the period | 143 765 | 34 211 | -28 058 | 149 918 |
For the segment Component, the total net sales for the period January to December was SEK 2 770 million (2 340), of which SEK 2 542 million (2 149) is external sales. The increase of the external sales of SEK 393 million is mainly due to the acquisition of AQ Anton Kft. in Hungary and Gerdins and an unusual number of projects.
For the segment System, the total net sales for the accumulated period was SEK 900 million (911), of which SEK 747 million (783) is external sales. The decrease of external sales of SEK 36 million is mainly due to reduced demand of assembly of packaging machines.
Operating profit (EBIT) was accumulated SEK 186 million (144) for Component, which was SEK 42 million better than the same period last year. The reason for the results improvement of Component is mainly due to the acquisition of Anton Kft in Hungary and AQ Enclosure Systems AB and AQ Wiring Systems in Mexico having turned last year's losses to profit. Operating profit (EBIT) for System was SEK 80 million (34) due to profitable projects within electrical assembly.
Lower personnel costs in AQ Enclosure Systems AB due to reductions in force, have influenced EBIT positively both for System and Component.
In the column" Unallocated and eliminations" there are items which have not been allocated to the two segments, mainly real estate companies, parent company and group eliminations.
Number of employees (full time yearly equivalents) in the Group per country.
| Jan-Dec 2016 | Jan-Dec 2015 | Jan-Dec 2014 | |
|---|---|---|---|
| Bulgaria | 981 | 966 | 903 |
| Sweden | 1 005 | 812 | 827 |
| Lithuania | 688 | 647 | 610 |
| China | 498 | 539 | 557 |
| Poland | 873 | 508 | 482 |
| Hungary | 447 | 411 | 0 |
| Estonia | 349 | 379 | 320 |
| India | 134 | 146 | 96 |
| Mexico | 127 | 94 | 101 |
| Italy | 24 | 4 | 4 |
| Thailand | 20 | 12 | 0 |
| Serbia | 17 | 0 | 0 |
| 5 163 | 4 518 | 3 900 |
AQ's strategy is to grow in both segments.
| Date | Acquisition | Annual turnover, million SEK* | Number of employees* |
|---|---|---|---|
| April 27,2016 | Magnetica S.r.l. | 14 | 19 Italy |
| Magnetica Technology D.o.o | 5 | 17 Serbia | |
| October 3, 2016 Gerdins Industrial System AB | 430 | 209 Sweden 229 Poland |
*Annual turnover and number of employees at time of acquisition.
On April 27, 2016 AQ Italy S.r.l. acquired 100 % of the shares in the private company Magnetica S.r.l with its subsidiary in Serbia, Magnetica Technology D.o.o. The price was EUR 100, and in conjunction with the acquisition AQ Italy S.r.l. capitalized Magnetica S.r.l with EUR 500 thousand. The companies design and manufacture electromagnetic components and power supplies.
During the period May to December the two acquired companies contributed with SEK 12.9 million to the group's sales and SEK 1.2 million to the group's profit after tax. If the acquisition had taken place on January 1, i.e. included January to April the management is estimating that the group's turnover would have been SEK 5.8 million higher and the result SEK 0.5 million lower for the full year 2016. The acquisition was made to obtain excellent competence in design of power supplies and small inductive components and also to obtain their interesting customers. The acquisition is expected to be a good complement to AQ's business within inductive components.
Acquired immaterial assets refer to customer relations and patents. Operating receivables are taken at their gross value, which correspond to real value. In the goodwill value, there are synergy effects included in the form of more efficient production processes and the technical competence of the personnel. No part of the goodwill is expected to be tax deductible. No acquisition-related expenses have occurred.
On October 3, 2016 AQ Group AB acquired 100 % of the shares of the private company Gerdins Industrial System AB with its subsidiaries Gerdins Components Västerås AB, Elektroprim AB, Plåxan AB, Gerdins Components AB, Gerdins Cable Systems AB, Gerdins Cable Systems Sp. z.o.o and Gerdins Nordkomponent AB.
Gerdins Industrial System AB is a prominent supplier of components and systems for demanding industrial customers. The company has net sales of about SEK 430 million and employs about 450 people. It has operations in Mjällom, Västerås and Sollefteå in Sweden and in Starogard/Gdanski in Poland.
The purpose of the acquisition was to extend AQ's customer base, to broaden our offering in sheet metal processing and to obtain reinforcement in manufacturing of wiring systems. The acquisition brought a number of new exciting customers in industries such as defence, forestry and agriculture in Sweden and Germany.
The purchase price consisted of SEK 82.1 million in cash plus 260 000 shares of AQ Group and an earnout, based on 50% of profit after tax for 2016.
The total price is valued at SEK 139.8 million. The company has established an acquisition analysis which shows consolidated overvalues of about SEK 45.7 divided in customer relations SEK 29.9 million, goodwill SEK 22.4 million and a deferred tax debt of SEK 6.6 million. The depreciation rate is estimated to ten years for the customer relations. The estimated goodwill value of SEK 22.4 million includes synergy effects in the form of more efficient production processes and the technical competence of personnel. No part of the goodwill is expected to be tax deductible.
There were no acquisition related expenses in conjunction with the acquisition. Operating receivables are taken at their gross value, which correspond to real value. The shares emitted were valued at the share price on the day of control.
The acquisition was partly financed by a bank loan of SEK 30 million. Gerdins Industrial System AB had at the time of the acquisition a net debt of SEK 9 million and an equity of 49%. The Polish subsidiary Gerdins Cable Systems Sp. z.o.o owns real estate with about 2 300 square meter production space.
During the period October to December Gerdins Industrial System AB and its subsidiaries contributed with SEK 100 million to the group's sales and SEK 2.8 million to the profit after tax. If the acquisition had been made on January 1, 2016 management is estimating that the group's sales would have been SEK 301 million higher and the profit would have been SEK 11.4 million higher for the full year 2016.
During the end of the year AQ has acquired minority shares in the Bulgarian company AQ Magnit AD.
The acquired company's net assets at time of acquisition:
| Gerdins | |||
|---|---|---|---|
| Magnetica S.r.l. | Industrial | Group | |
| Intagible assets | 2 456 | 76 | 2 532 |
| Tangible assets | 562 | 32 863 | 33 425 |
| Financial assets | 76 | 366 | 442 |
| Inventories | 3 790 | 63 652 | 67 442 |
| Operating receeivables | 3 475 | 77 740 | 81 215 |
| Operating liabilities | -13 885 | -72 315 | -86 200 |
| Liquid funds | 114 | 17 982 | 18 096 |
| Provisions | 0 | -7 454 | -7 454 |
| Net loans | -296 | -14 927 | -15 223 |
| Tax liability | 0 | -3 903 | -3 903 |
| Consideration paid | 1 | 139 830 | 139 831 |
| Customer relations | 29 945 | 29 945 | |
| Deferred tax on customer relations | -6 588 | -6 588 | |
| Goodwill | 3 709 | 22 393 | 26 102 |
| Cash flow effect | |||
| Consideration paid | |||
| Cash paid | - 1 |
-82 130 | -82 131 |
| Shares issued | -50 700 | -50 700 | |
| Earnout | -7 000 | -7 000 | |
| Total consideration paid | - 1 |
-139 830 | -139 831 |
| Liquid funds in the acquired company | 114 | 17 982 | 18 096 |
| 113 | -64 148 | -64 035 |
There have been no divestments of companies during the period.
During the last quarter of 2016, AQ M-Tech AB (Uppsala) was merged into AQ Elteknik AB. AQ 3-Elite AB was merged into AQ Staretor AB, which in turn was merged into AQ Group AB. In addition, AQ Wirings Systems AB (Västerås) was merged into AQ Group AB.
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 and credit debts.
Real 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. Real value of assets is established from market prices. Real 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. As per December 31 the market value of the derivatives was SEK -2.4 million (-3.1) valued according to level 2.
The earnout payment for the acquisition of Gerdins (SEK 7 million) has been valued at real value according to level 3. The earnout is based on 50% of the profit after tax 2016 of the acquired Gerdins group.
Information about events after the end of the reporting period are presented on page 7.
| 2016 | 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Full year | Q1 | Q2 | Q3 | Q4 | Full year | |
| Operating margin, (EBIT %) | ||||||||||
| Operating profit | 76 712 | 92 326 | 52 646 | 59 669 | 281 353 | 51 649 | 56 269 | 39 162 | 54 905 | 201 985 |
| Net revenue | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 878 |
| Operating margin | 9,6% | 10,7% | 7,3% | 6,6% | 8,6% | 7,2% | 7,4% | 6,0% | 6,8% | 6,9% |
| Profit margin before tax, (EBT %) | ||||||||||
| Profit before tax | 75 954 | 90 758 | 53 050 | 59 583 | 279 344 | 56 136 | 57 216 | 43 655 | 54 728 | 211 736 |
| Net revenue | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 878 |
| Profit margin before tax | 9,5% | 10,6% | 7,3% | 6,6% | 8,5% | 7,8% | 7,5% | 6,7% | 6,8% | 7,2% |
| Liquid ratio, % | ||||||||||
| Trade and other receivables | 687 538 | 749 032 | 697 938 | 805 186 | 805 186 | 674 021 | 665 436 | 632 477 | 670 438 | 670 438 |
| Other current receivables | 159 750 | 170 376 | 166 477 | 160 179 | 160 179 | 122 967 | 154 278 | 172 072 | 147 876 | 147 876 |
| Cash and cash equivalents | 147 614 | 116 631 | 118 960 | 162 812 | 162 812 | 149 425 | 150 897 | 166 388 | 135 602 | 135 602 |
| Current liabilities | 633 744 | 676 277 | 598 307 | 794 582 | 794 582 | 632 184 | 662 892 | 651 359 | 668 164 | 668 164 |
| Liquid ratio | 157% | 153% | 164% | 142% | 142% | 150% | 146% | 149% | 143% | 143% |
| Debt/equity ratio, % | ||||||||||
| Total equity | 1 241 016 | 1 290 577 | 1 366 832 | 1 463 195 | 1 463 195 | 1 119 233 | 1 110 539 | 1 155 688 | 1 169 736 | 1 169 736 |
| Total assets | 2 066 851 | 2 149 012 | 2 130 582 | 2 449 801 | 2 449 801 | 1 798 487 | 1 828 465 | 1 861 878 | 2 024 282 | 2 024 282 |
| Debt/equity ratio | 60% | 60% | 64% | 60% | 60% | 62% | 61% | 62% | 58% | 58% |
| Return on total assets, % | ||||||||||
| Profit before tax, rolling 12 months | 231 604 | 265 145 | 274 539 | 279 344 | 279 344 | 212 595 | 226 321 | 225 396 | 211 736 | 211 736 |
| Financial expenses, rolling 12 months | -12 570 | -13 160 | -14 962 | -12 977 | -12 977 | -5 080 | -5 379 | -6 246 | -10 565 | -10 565 |
| Total equity and liabilities, opening balance for 12 months | 1 798 487 | 1 828 465 | 1 861 878 | 2 024 282 | 2 024 282 | 1 575 617 | 1 667 529 | 1 666 909 | 1 678 724 | 1 678 724 |
| Total equity and liabilities, closing balance | 2 066 851 | 2 149 012 | 2 130 582 | 2 449 801 | 2 449 801 | 1 798 487 | 1 828 465 | 1 861 878 | 2 024 282 | 2 024 282 |
| Total equity and liabilities, average | 1 932 669 | 1 988 738 | 1 996 230 | 2 237 042 | 2 237 042 | 1 687 052 | 1 747 997 | 1 764 394 | 1 851 503 | 1 851 503 |
| Return on total assets | 12,6% | 14,0% | 14,5% | 13,1% | 13,1% | 12,9% | 13,3% | 13,1% | 12,0% | 12,0% |
| Return on equity after tax, % | ||||||||||
| Profit for the period after tax, rolling 12 months | 188 327 | 216 778 | 227 994 | 235 728 | 235 728 | 169 333 | 182 462 | 185 145 | 170 453 | 170 453 |
| Total equity, opening for 12 months | 1 119 233 | 1 110 539 | 1 155 688 | 1 169 736 | 1 169 736 | 909 711 | 929 765 | 979 666 | 1 055 230 | 1 055 230 |
| Total equity, closing | 1 241 016 | 1 290 577 | 1 366 832 | 1 463 195 | 1 463 195 | 1 119 233 | 1 110 539 | 1 155 688 | 1 169 736 | 1 169 736 |
| Total equity, average | 1 180 125 | 1 200 558 | 1 261 260 | 1 316 465 | 1 316 465 | 1 014 472 | 1 020 152 | 1 067 677 | 1 112 483 | 1 112 483 |
| Return on equity after tax | 16,0% | 18,1% | 18,1% | 17,9% | 17,9% | 16,7% | 17,9% | 17,3% | 15,3% | 15,3% |
| Net cash / Net debt | ||||||||||
| Cash and cash equivalents | 147 614 | 116 631 | 118 960 | 162 812 | 162 812 | 149 425 | 150 897 | 166 388 | 135 602 | 135 602 |
| Non-current interest bearing liabilities | 113 449 | 105 842 | 98 341 | 107 779 | 107 779 | 2 602 | 2 130 | 3 450 | 121 045 | 121 045 |
| Current interest bearing liabilities | 106 402 | 89 178 | 53 088 | 164 034 | 164 034 | 135 053 | 136 112 | 123 235 | 159 866 | 159 866 |
| Total interest bearing liabilities | 219 851 | 195 020 | 151 430 | 271 812 | 271 812 | 137 654 | 138 242 | 126 685 | 280 911 | 280 911 |
| Net cash / Net debt | -72 237 | -78 389 | -32 470 | -109 000 | -109 000 | 11 771 | 12 656 | 39 703 | -145 309 | -145 309 |
| Growth, % | ||||||||||
| Organic growth | ||||||||||
| Net revenue last year | 801 834 | 859 584 | 723 223 | 904 575 | 3 289 215 | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 877 |
| Effect of changes in exchange rates | -8 615 | -15 435 | -6 759 | 10 357 | -20 452 | 33 532 | 32 879 | 22 421 | 50 653 | 139 485 |
| Net revenue for acquired companies | 715 216 | 758 819 | 654 561 | 803 281 | 2 931 878 | 631 748 | 675 948 | 604 953 | 703 448 | 2 616 097 |
| Organic growth | 69 287 | 68 926 | 61 495 | 128 095 | 327 803 | 18 349 | 34 473 | 4 285 | 46 165 | 103 272 |
| Net revenue current period | 25 946 | 47 274 | 13 925 | -37 158 | 49 988 | 31 587 | 15 519 | 22 902 | 3 015 | 41 436 |
| Organic growth divided by last year net revenue, % | 3,6% | 6,2% | 2,1% | -4,6% | 1,7% | 5,0% | 2,3% | 3,8% | 0,4% | 1,6% |
| Growth through acquisitions | ||||||||||
| Net revenue for acquired companies divided by last year net | ||||||||||
| revenue, % | 9,7% | 9,1% | 9,4% | 15,9% | 11,2% | 2,9% | 5,1% | 0,7% | 6,6% | 3,9% |
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 a 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 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 exceeds interest bearing debts. Net debt means that interest bearing debts exceed cash and cash equivalents.
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.
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, 2016, in total about 5,100 employees in Sweden, Bulgaria, China, Estonia, Hungary, India, Italy, Lithuania, Mexico, Poland, Serbia and Thailand.
In 2016 AQ had net sales of SEK 3.3 billion and the group has since its start in 1994 shown profit every quarter.
AQ has the highest credit rating AAA according to Bisnode.
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