Annual Report • Feb 16, 2023
Annual Report
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Västerås, February 16, 2023
www.aqgroup.com
| 2022 | 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK M unless otherwise stated | Q1 | Q2 | Q3 | Q4 Full year | Q1 | Q2 | Q3 | Q4 Full year | ||
| Net turnover | 1,646 | 1,721 | 1,711 | 1,974 | 7,053 | 1,307 | 1,361 | 1,306 | 1,498 | 5,471 |
| Operating profit (EBIT) | 113 | 107 | 123 | 148 | 491 | 121 | 118 | 94 | 113 | 446 |
| Profit before tax (EBT) | 116 | 108 | 121 | 137 | 482 | 126 | 114 | 91 | 110 | 441 |
| Profit for the period | 93 | 87 | 100 | 134 | 413 | 109 | 96 | 76 | 87 | 368 |
| Total equity | 2,756 | 2,865 | 3,010 | 3,180 | 3,180 | 2,352 | 2,438 | 2,526 | 2,627 | 2,627 |
| Operating margin (EBIT), % | 6.9 | 6.2 | 7.2 | 7.5 | 7.0 | 9.3 | 8.7 | 7.2 | 7.6 | 8.2 |
| Profit margin before tax (EBT), % | 7.1 | 6.3 | 7.1 | 6.9 | 6.8 | 9.6 | 8.4 | 6.9 | 7.4 | 8.1 |
| Liquid ratio, % | 125 | 128 | 131 | 140 | 140 | 134 | 167 | 142 | 130 | 130 |
| Debt/equity ratio, % | 56 | 55 | 56 | 56 | 56 | 56 | 57 | 55 | 56 | 56 |
| Return on total assets, % 1) | 10.1 | 9.9 | 10.3 | 10.2 | 10.2 | 10.6 | 11.9 | 11.3 | 11.0 | 11.0 |
| Return on equtiy after tax, % 1) | 13.8 | 12.9 | 13.3 | 14.2 | 14.2 | 15.5 | 16.5 | 15.8 | 15.3 | 15.3 |
| Number of employees in Sweden | 834 | 853 | 847 | 851 | 851 | 782 | 792 | 794 | 821 | 821 |
| Number of employees outside Sweden | 6,233 | 6,269 | 6,293 | 6,371 | 6,371 | 5,298 | 5,206 | 5,711 | 5,656 | 5,656 |
| Key indicators per share, SEK | ||||||||||
| Profit for the period after dilution | 5.04 | 4.71 | 5.41 | 7.27 | 22.43 | 5.89 | 5.22 | 4.12 | 4.76 | 19.99 |
| Equity | 150.65 | 156.62 | 164.52 | 173.82 | 173.82 | 128.56 | 133.29 | 138.06 | 143.62 | 143.62 |
| Number of shares, thousands 2) | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 | 18,294 |
1) Calculated based on 12 months rolling amounts.
2) No dilution effect
It's fun to break records. Our goal is to beat our record in terms of turnover and profit every year. And we have succeeded in doing so in 2022 as well. We see this as proof that we are doing something good for our customers.
Our net sales have increased by SEK 1.5 billion compared to the previous year. We are mainly growing electrification of commercial vehicles, in the components for the defense industry. power
transmission and storage of renewable energy and in medical technology.
Our profit is also increasing, even if we do not reach our targets in terms of profit margin before tax. The profit margin before tax in the quarter amounted to 6.9%. It's not good enough. We shall earn 8%. Despite that, we are increasing our earnings per share by 12% for the full year. During the quarter, we implemented price adjustments for many of our customers to compensate for cost increases for energy, transport, and materials. We have a few companies where we have profitability problems. We have extra focus on these companies in order to improve the operations and thereby the results.
We continue to have material shortages and longer than normal lead times on certain components. It affects our delivery accuracy, which during the year was 90% compared to our target of 98%. To compensate for this, we work closely with customers and suppliers to minimize the problems that arise for our customers.
During the fourth quarter, we completed the renovation of our property in Pernik, Bulgaria. During the first quarter, 2023, welding robots, equipment for blasting, painting and an assembly line to produce battery systems will be installed. We have orders and capacity to produce and deliver battery systems for SEK 400 million in 2023.
Our factory in Lithuania starts serial production of wiring systems for heavy vehicles during the first guarter. Our ambition is that this factory will deliver a turnover growth of SEK 400 million in 2023.
Our ambition to identify and implement interesting acquisitions remains, in 2023 as well.
During the fourth quarter, our work to increase our inventory turnover rate has begun to bear fruit. This has resulted in a higher cash flow from operating activities. In 2022, our investment rate has been high to meet high demand. Despite this, we continue to have low net debt, which enables continued investments in expanded production capacity and acquisitions.
To secure maximum financial freedom to act in these times of historical high growth the board suggests an unchanged dividend of SEK 3.33 per share for 2022.
We don't have amazing products or patents. What makes AQ is our people. No other company can have the same people as us. That, combined with our core values, makes AQ unique. I am proud of our fantastic employees who this year managed to win new business, build new factories, and make our company stronger. We will continue to grow, make a profit, and have fun!
James Ahrgren CEO
Net sales for the fourth quarter was SEK 1,974 million (1,498), an increase of SEK 477 million compared to the same period in the previous year. The total growth in the quarter was 31.8%, of which organic growth 26.0% and currency effects of 5.8%. The currency effect corresponded to SEK 88 million and was mainly driven by the currencies EUR, CNY and USD.
Operating profit (EBIT) in the fourth quarter was SEK 148 million (113), an increase of SEK 35 million. A large part of the increase is attributable to the increased volumes from basically all our companies. Furthermore, we have improved the operating profit by SEK 4 million in our new units that were acquired from Schaffner the previous year, and SEK 13 million in Mexico where our measures beginning to show results, which has decreased the loss. Energy and transport costs have negatively affected the EBT margin by 1-percentage point compared to the corresponding quarter last year. Operative exchange rate effects have had a negative net effect on the operating profit of SEK 11 million in the quarter compared to the previous year. The EBT margin was 6.9%. Net financial items in the quarter amounted to SEK-11 million (-3).
Cash flow from operating activities was SEK 140 million (-105) and has been positively affected by activities to improve the inventory turnover. However, we are still negatively affected by continued component shortages within Electrical Cabinets and System Products that contribute negatively to the capital tie-up when we cannot final deliver according to plan.
Cash flow from investing activities was SEK -71 million (-82). which relates mainly to replacement and capacity investments of fixed assets of SEK-74 million (-66). These investments are mostly located in Europe.
Cash flow from financing activities was SEK 8 million (-37) and mainly refers to repayments of bank loans and leasing liabilities of SEK-42 and utilization of the revolving credit facility of SEK 55 million.
Net sales for the full year was SEK 7,053 million (5,471), an increase of SEK 1,581 million compared to previous year. The total growth during the full year was 28.9%, of which organic growth 23.6%, growth through acquisitions 3.4% and currency effects of 1.9%. The currency effect corresponded to SEK 103 million and was mainly driven by the currencies CNY, PLN and HUF.
Operating profit (EBIT) for the full year was SEK 491 million (446), an increase of SEK 44 million. The organic growth has been very high throughout the year in most of our companies, which results in higher volumes that positively affect the operating profit. Strongly increased energy and transport costs have negatively affected our operating profit by SEK 42 million compared to last year. Our new units from the acquisition previous year have made a positive contribution of SEK 15 million during the year. Operational exchange rate effects have had a positive net effect on the operating profit of SEK6 million during the period compared to the previous year. The EBT margin was 6.8%. Net financial items amounted to SEK-8 million (-5).
2022
2021
2022
$2022$
$2022$
The Group's investments in tangible fixed assets for the period amounted to SEK 297 million (205) and mainly pertain to replacement and capacity investments in Europe. The single largest investments are a new factory building and production equipment in Bulgaria of SEK 115 million and a new factory building in Lithuania of SEK 67 million. Total tangible fixed assets amounted to SEK 1,043 million (820).
Interest-bearing liabilities of the Group was SEK 1,040 million (844) and cash and cash equivalents amounted to SEK 231 million (283), which means that the Group have a net debt of SEK 810 million (561). The Group's interest-bearing liabilities without regard to leasing liabilities amounted to SEK 803 million (607), which means a net debt adjusted for leasing liabilities of SEK 572 million (325).
Cash flow from operating activities was SEK 208 million (238).
Cash flow from investing activities was SEK-283 million (-391) and relates mainly to replacement and capacity investments in fixed assets of SEK-284 million (-189).
Cash flow from financing activities was SEK 12 million (-26) and mainly refers to extended use of revolving credit facilities of SEK 234 million, repayments of bank loans and leasing liabilities of SEK-165 million and paid dividend of SEK-61 million.
Equity at the end of the period amounted to 3,180 million (2,627) for the Group.
The year has been characterized by great organic growth. During April, AQ in Lithuania completed a new property for wiring systems production which will double our capacity in the production of wiring harnesses for commercial vehicles in Europe. The new factory will be in full production in 2023 and will then have 1,500 employees. During the year, we recruited 650 new operators. It is natural that productivity will be lower for a while when we recruit so many new operators at once. A large part of the capacity in the new factory is already booked by new and existing customers.
On June 27, AQ Group signed an agreement to acquire a property in Pernik, Bulgaria in order to continue our growth in the business area Electrical Cabinets. Access took place at the beginning of the third quarter. The new AQ factory will produce sheet metal housings and carry out electrical installations for large battery systems used to store energy for the power grid. We have worked intensively to complete the new factory after the day of accession, and we expect to reach full production rate in the first quarter of 2023.
The invasion of Ukraine that began in February 2022 is still ongoing. AQ's direct financial impact has not been significant as we have no production units in Ukraine, Russia or Belarus. Neither does AQ have any significant customers or suppliers in these countries. However, AQ has received several orders from customers who are moving their production to our factories in, for example, Poland, Lithuania, Estonia and Bulgaria.
In mid-March, the spread of Covid-19 in China increased, and restrictions were introduced in the country which, among other things meant continued supply problems of semiconductor components throughout 2022. The spread of Covid-19 in China continued during April and the local restrictions that were introduced at the end of March/April meant that our factory in Shanghai, which accounts for about 1% of the group's turnover, was closed until the beginning of June. Both the long shutdown and the restrictions on transport and mobility in China have negatively affected the group's sales and earnings during the period from March to June.
At the Annual General Meeting on April 21, a decision was made to introduce a warrant-based incentive program for executive officers and other key personnel within AQ. The duration for the warrantincentive program is three years and expires on May 12, 2025. A total of 52,500 warrants were subscribed, each of which entitles to one new share upon redemption during the period from May 12 to June 10, 2025. The subscription price was set at SEK 351.20/share.
The high global inflation and the ongoing war in Ukraine affect the economic development in several of the countries where AQ operates. AQ has a large share of its business in Europe, where energy prices continue to be at a high level together with wage inflation. This affects AQ's production costs. We also see continued supply problems of semiconductor components. We constantly monitor and evaluate the situation in order to be prepared to act quickly to limit any impact on the company.
On February, 2023 the Nomination Committee in AQ Group AB informed the company that it is proposing existing board member Claes Mellgren as new board chairman, Kristina Willgård as new board member and that the number of board members will be reduced from eight to six, at the Annual General Meeting on April 20, 2023, Chairman of the board Patrik Nolåker and board members Annika Johansson-Rosengren and Vegard Søraunet will not run for re-election. Re-election is proposed for board members Gunilla Spongh, Lars Wrebo, Ulf Gundemark and Per Olof Andersson. Claes Mellgren was CEO of AQ Group between 2010 and 2018 and is now board member since 2018. Claes Mellgren is one of the founders of AQ Group. Kristina Willgård most recently came from a position as Group CEO at the Life-Science company AddLife and is currently board member in Mölnlycke Health Care. Ernströmgruppen, and the Addnode Group and is part of Aeternum Capital's advisory board. The Nomination Committee's complete proposal is presented in the notice of AQ Group's Annual General Meeting, which will be held on April 20, 2023.
The goal of the Group is continued profitable growth. The goal is a profit margin before tax (EBT) of 8%. 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.
| Target | Jan-Dec 2022 | |
|---|---|---|
| Product quality | 100% | 99.6% |
| Delivery precision | 98% | 90.0% |
| Equity ratio | $>40\%$ | 56% |
| Profit margin before tax, (EBT %) | 8% | 6.8% |
| Growth | 15% | 28.9% |
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 also part of a cash pool in the parent company. The companies are charged/given interest rates at market level.
AQ Group AB paid a dividend of SEK 61 million to its shareholders in April 2022 following a decision at the 2022 Annual General Meeting. Furthermore, the 2022 Annual General Meeting decided to introduce a warrant-based incentive program for executive officers and other key personnel within AQ. The subscription price was set at SEK 351.20 / share, which corresponded to 125 percent of the volumeweighted average price paid for the Company's share on Nasdaq Stockholm during the period from April 22 to May 5, 2022. A total of 52,500 warrants were subscribed for in the three-year warrant-based incentive program that expires May 12, 2025. Upon redemption, each warrant entitles to one share.
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 more detailed described in the Annual Report of 2021. The ongoing Covid-19 pandemic and the political tension between Russia, Belarus and Ukraine/NATO has mainly resulted in increased energy costs and other risks and uncertainties that could have a significant impact on AQ's customers and suppliers, which in turn affect the actual outcome for AQ. In addition to the commented factors the real outcome can be affected by for example other political events, business cycle effects, currency and interest rates, competing products and their pricing, product development, commercial and technical difficulties, events linked to cyber security and IT infrastructure, delivery problems, outbreak of other virus diseases and large credit losses at our customers.
The risks that are most prominent for AQ in a shorter perspective are the impacts of component shortages on delivery precision, lockdowns in China, the ongoing war between Russia, Belarus and Ukraine impact on customers, personnel and suppliers, the high global inflation and currency and price risks on e.g. energy, transport and material.
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 semi-finished products for further production such as sheet metal of steel and aluminum, 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 accounts receivable.
The parent company is indirectly affected by the same risks and uncertainties.
The Nomination Committee represents the shareholders and consists of members who are appointed by each of the four largest shareholders in terms of votes. The Nomination Committee's term of office extends until a new Nomination Committee has been appointed. The Nomination Committee for the Annual General Meeting 2023 was announced on October 18, 2022 and consists of Henrik Carlman (Aeternum Capital). Hans Christian Bratterud (ODIN Fonder). Per Olof Andersson (own holding) and Claes Mellgren (own holding) with Hans Christian Bratterud as chairman.
Annual Report, 2022 Interim report Q1, 2023 Annual General Meeting Interim report Q2, 2023 Interim report Q3, 2023
Week 13, 2023 April 20, 2023, at 08:00 April 20, 2023 July 14, 2023, at 08:00 October 19, 2023, at 08:00
The Annual Report for 2022 will be available on the company's website no later than March 29, 2023.
The Annual General Meeting will be held on April 20, 2023 at 18:00 in Västerås. More information will be available in the notice convening the AGM, which will be published on the company's website www.aggroup.com no later than 4 weeks before the AGM.
The Board of Directors proposes a dividend of SEK 3.33 per share for the financial year 2022. A total of SEK 60.919.213.
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 James Ahrgren for publication at 08:00 CET on February 16, 2023.
AQ Group AB (publ) is listed on Nasdag 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, James Ahrgren, telephone +46 76 052 58 88, [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.aggroup.com.
The Chief Executive Officer certify that the interim report gives a true and fair overview of the Group's and the parent company's operations, financial position and performance and describes material risks and uncertainties facing the parent company and the companies that form part of the Group.
Västerås, February 16, 2023
James Ahrgren CEO
Summary Income Statement for the Group
| Oct-Dec | Oct-Dec | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK M | Note | 2022 | 2021 | 2022 | 2021 |
| Net sales | 1,974 | 1,498 | 7,053 | 5,471 | |
| Other operating income | 43 | 61 | 180 | 143 | |
| Total income | 2,017 | 1,558 | 7,232 | 5,614 | |
| Change in inventory and work in progress | -8 | 79 | 82 | 184 | |
| Raw material and consumables | $-1,012$ | $-834$ | $-3,760$ | $-2,866$ | |
| Goods for resale | $-30$ | $-19$ | $-81$ | $-121$ | |
| Other external expenses | $-211$ | $-186$ | $-789$ | $-598$ | |
| Personnel costs | $-509$ | $-409$ | $-1,849$ | $-1,486$ | |
| Depreciation and amortisation | $-67$ | $-62$ | $-261$ | $-234$ | |
| Other operating expenses | $-32$ | $-15$ | $-85$ | $-46$ | |
| Total operating costs | $-1,869$ | $-1,445$ | $-6,742$ | $-5,168$ | |
| Operating profit | 148 | 113 | 491 | 446 | |
| Net financial income/expense | 5 | $-11$ | $-3$ | -8 | $-5$ |
| Profit before tax | 137 | 110 | 482 | 441 | |
| Taxes | $-3$ | $-23$ | $-69$ | $-73$ | |
| Profit for the period | 134 | 87 | 413 | 368 | |
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO | |||||
| Parent company shareholders | 133 | 87 | 410 | 366 | |
| Non-controlling interests | 1 | 0 | 3 | $\overline{2}$ | |
| EARNINGS PER SHARE, SEK | |||||
| Before dilution | 7.27 | 4.76 | 22.43 | 19.99 | |
| After dilution | 7.27 | 4.76 | 22.43 | 19.99 |
| SEK M | Oct-Dec 2022 |
Oct-Dec 2021 |
Full year 2022 |
Full year 2021 |
|---|---|---|---|---|
| PROFIT FOR THE PERIOD | 134 | 87 | 413 | 368 |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that cannot be transferred to the profit for the period | ||||
| Revaluation of defined benefit pension plans | 0 | $-1$ | $-1$ | |
| Revalutation of defined benefit pension plans, tax effect | -0 | 0 | -0 | 0 |
| Items transferred or that can be transferred to the profit | ||||
| Translation difference for foreign operations | 36 | 16 | 198 | 70 |
| Other comprehensive income for the period after tax | 37 | 15 | 198 | 69 |
| Comprehensive income for the period | 170 | 103 | 611 | 437 |
| COMPREHENSIVE INCOME FOR THE PERIOD | ||||
| ATTRIBUTABLE TO: | ||||
| Parent company shareholders | 169 | 102 | 607 | 434 |
| Non-controlling interests | 0 | 4 | $\overline{2}$ |
| Cost | |||||
|---|---|---|---|---|---|
| Customer Focus |
Simplicity | Entre- preneurial business |
Efficiency | Courage and Respect |
WE ARE RELIABLE |
| Dec 31 | Dec 31 | ||
|---|---|---|---|
| SEK M | Note | 2022 | 2021 |
| ASSETS | |||
| NON-CURRENT ASSETS |
|||
| Goodwill | 395 | 366 | |
| Other intangible assets | 144 | 162 | |
| Right-of-use assets | 233 | 232 | |
| Tangible assets | 1,043 | 820 | |
| Financial assets | 5 | 2 | |
| Deferred tax assets | 76 | 62 | |
| Total non-current assets | 1,896 | 1,644 | |
| Inventories | 1,629 | 1,305 | |
| Trade and other receivables | 1,745 | 1,295 | |
| Other current receivables | 204 | 173 | |
| Cash and cash equivalents | 231 | 283 | |
| Total current assets | 3,808 | 3,056 | |
| TOTAL ASSETS | 5,704 | 4,699 | |
| Equity attributable to parent company shareholders | 3,164 | 2,616 |
|---|---|---|
| Non-controlling interests | 16 | 12 |
| TOTAL EQUITY | 3,180 | 2,627 |
| Non-current liabilities to credit institutions | 861 | 632 |
| Other non-current liabilities | 113 | 98 |
| Total non-current liabilities | 973 | 730 |
| Interest-bearing current liabilities | 180 | 212 |
| Trade and other payables | 862 | 711 |
| Other current liabilities 5 |
510 | 419 |
| Total current liabilities | 1,551 | 1,342 |
| TOTAL LIABILITIES | 2,524 | 2,072 |
| TOTAL EQUITY AND LIABILITIES | 5,704 | 4,699 |
| Equity attributable to parent company shareholders | |||||||
|---|---|---|---|---|---|---|---|
| Other | Retained | Non- | |||||
| contributed | earnings incl. | controlling | |||||
| SEKM | Share capital | capital | Reserves | Profit | Subtotal | interests | Total equity |
| Equity, 01/01/2021 | 37 | 84 | 14 | 2,047 | 2,181 | 9 | 2,191 |
| Profit for the year | $\overline{a}$ | $\overline{\phantom{a}}$ | 366 | 366 | $\overline{2}$ | 368 | |
| Translation differences in foreign operations | -0 | 70 | -1 | 69 | 0 | 70 | |
| Revalutation of defined benefit pension plans | $-1$ | $-1$ | -0 | $-1$ | |||
| Revalutation of defined benefit pension plans, tax effect | ٠ | 0 | 0 | $\Omega$ | 0 | ||
| Other comprehensive income | -0 | 70 | $-2$ | 69 | 0 | 69 | |
| Comprehensive income for the year | -0 | 70 | 364 | 434 | $\overline{2}$ | 437 | |
| Dividends paid | -0 | $-0$ | |||||
| Transactions with shareholders | -0 | -0 | |||||
| Equity, 12/31/2021 | 37 | 84 | 84 | 2,411 | 2,616 | 12 | 2,627 |
| Equity, 01/01/2022 | 37 | 84 | 84 | 2,411 | 2,616 | 12 | 2,627 |
| Profit for the year | ٠ | 410 | 410 | 3 | 413 | ||
| Translation differences in foreign operations | 0 | 196 | 196 | 1 | 198 | ||
| Revalutation of defined benefit pension plans | 0 | 0 | $\Omega$ | 0 | |||
| Revalutation of defined benefit pension plans, tax effect | -0 | -0 | $-0$ | $-0$ | |||
| Other comprehensive income | 0 | 196 | 0 | 197 | 1 | 198 | |
| Comprehensive income for the year | 0 | 196 | 411 | 607 | 4 | 611 | |
| Issues of warrants | $\overline{2}$ | ٠ | $\overline{2}$ | 2 | |||
| Dividends paid | ٠ | $-61$ | $-61$ | $-61$ | |||
| Transactions with shareholders | 2 | ٠ | $-61$ | $-59$ | $-59$ | ||
| Equity, 12/31/2022 | 37 | 86 | 280 | 2,761 | 3,164 | 16 | 3,180 |
All shares, 18,294,058 pcs, are A-shares with equal voting rights and equal rights to the results. No dilution effect.
| Customer Focus |
Simplicity | Entre- preneurial business |
Cost Efficiency |
Courage and Respect |
WE ARE RELIABLE | |
|---|---|---|---|---|---|---|
| -- | --------------------------------- | ------------ | ----------------------------------------- | --------------------------- | --------------------------- | ------------------------ |
| Oct 1 - Dec 31 | Oct 1 - Dec 31 | Jan 1 - Dec 31 | Jan 1 - Dec 31 | |
|---|---|---|---|---|
| SEKM Note |
2022 | 2021 | 2022 | 2021 |
| Profit before tax | 137 | 110 | 482 | 441 |
| Adjustment for non cash generating items | 76 | 55 | 264 | 221 |
| Income tax paid | -9 | 1 | $-91$ | $-56$ |
| Cash flow from operating activities before change in working | ||||
| capital | 204 | 166 | 655 | 606 |
| Increase (-)/decrease (+) in inventories | $-19$ | $-138$ | $-239$ | $-370$ |
| Increase (-)/decrease (+) in trade receivables | $-111$ | $-161$ | $-357$ | $-191$ |
| Increase (-)/decrease (+) in other receivables | $-5$ | $\mathbf{1}$ | -9 | $-34$ |
| Increase (+)/decrease (-) in trade payables | 64 | 23 | 82 | 198 |
| Increase (+)/decrease (-) in other liabilities | 6 | 3 | 76 | 30 |
| Change in working capital | $-64$ | $-271$ | $-447$ | -368 |
| Cashflow from operating activities | 140 | $-105$ | 208 | 238 |
| Aquisitions of subsidiaries net of cash aquired and other | ||||
| businesses 4 |
$-17$ | -203 | ||
| Acquisition of intangible non-current assets | $-1$ | $-1$ | $-4$ | $-3$ |
| Acquisition of tangible non-current assets | $-74$ | -66 | $-284$ | $-189$ |
| Sale of tangible non-current assets | 3 | $\overline{2}$ | 6 | 3 |
| Other changes in non-current assets | $\mathbf 0$ | -0 | $\Omega$ | $-0$ |
| Cashflow from investing activities | $-71$ | $-82$ | $-283$ | -391 |
| New borrowings, credit institutions | 55 | 0 | 234 | 82 |
| Amortisation of Ioans | $-16$ | $-16$ | $-62$ | $-49$ |
| Amortisation of Ioans (lease) | $-26$ | $-25$ | $-103$ | -95 |
| Change in bank overdraft facilities | $-5$ | 4 | 2 | 36 |
| Payment of warrants | $\overline{2}$ | |||
| Dividends | -0 | $-61$ | -0 | |
| Casflow from financing activities | 8 | -37 | 12 | -26 |
| Change in cash and cash equivalents for the period | 77 | $-224$ | -63 | -178 |
| Cash and cash equivalents at the beginning of the year | 154 | 505 | 283 | 452 |
| Exchange rate difference in cash and cash equivalents | 0 | 2 | 11 | 10 |
| Cash and cash equivalents at the end of the period | 231 | 283 | 231 | 283 |
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
| Oct-Dec | Oct-Dec | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK M | Note | 2022 | 2021 | 2022 | 2021 |
| Net sales | 8 | 11 | 49 | 50 | |
| Other operating income | 0 | 2 | 5 | 4 | |
| Total income | 9 | 13 | 53 | 54 | |
| Other external expenses | -6 | $-13$ | $-19$ | -28 | |
| Personnel costs | -6 | -6 | $-31$ | $-28$ | |
| Depreciation and amortisation | -0 | -0 | |||
| Other operating expenses | -0 | $-1$ | $-1$ | $-2$ | |
| Total operating costs | $-12$ | $-20$ | $-51$ | -59 | |
| Operating profit | $-3$ | -7 | -4 | ||
| Net financial items | 5 | $-4$ | $-5$ | 53 | -8 |
| Earnings after net financial items | $-7$ | $-11$ | 55 | $-13$ | |
| Appropriations | $-2$ | 23 | $-2$ | 23 | |
| Profit before tax | -9 | 11 | 53 | 10 | |
| Taxes | $-7$ | $-2$ | -9 | ||
| Profit for the period | -8 | 5 | 51 | 1 |
The profit for the period is consistent with the total profit for the period.
Revenues during the fourth quarter amounted to SEK 8 million (11) and mainly pertained to internal services. Net financial items amounted to SEK-4 million (-5). The loss for the period amounted to SEK $-8$ million $(5)$ .
Revenues during the year amounted to SEK 49 million (50) and mainly pertained to internal services. Net financial items amounted to SEK 53 million (-8). Profit for the year amounted to SEK 51 million (1).
| Cost | |
|---|---|
| Simplicity Efficiency Courage Customer Entre- and Focus preneurial Respect business |
WE ARE RELIABLE |
Summary balance sheet for the Parent company
| Dec 31 | Dec 31 | ||
|---|---|---|---|
| SEKM | Note | 2022 | 2021 |
| ASSETS | |||
| Tangible assets | $\Omega$ | ||
| Financial fixed assets | 1,433 | 1,413 | |
| Total non-current assets | 1,433 | 1,413 | |
| Current receivables | 360 | 132 | |
| Cash and cash equivalents | 62 | 142 | |
| Total current assets | 423 | 274 | |
| TOTAL ASSETS | 1,856 | 1,687 | |
| EQUITY AND LIABILITIES | |||
| Restricted equity | 38 | 38 | |
| Non-restricted equity | 678 | 686 | |
| TOTAL EQUITY | 716 | 724 | |
| Untaxed reserves | 8 | 6 | |
| Non-current interest-bearing liabilities | 683 | 478 | |
| Total non-current liabilities | 683 | 478 | |
| Interest-bearing current liabilities | 427 | 457 | |
| Other current liabilities | 5 | 22 | 23 |
| Total current liabilities | 449 | 480 | |
| TOTAL LIABILITIES | 1,132 | 958 | |
| TOTAL EQUITY AND LIABILITIES | 1,856 | 1,687 |
The non-restricted equity amounts to SEK 678 million. The changes since 31 December 2021 consist of the profit for the year of SEK 51 million, paid dividend of SEK 61 million and additional capital related to the subscription of warrants of SEK 2 million.
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.
Unless otherwise stated, all amounts are rounded to the nearest million. 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, which can result 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 were SEK 1,724 million (1,312), of which SEK 1,595 million (1,209) are external sales. The increase of the external sales was SEK 386 million.
For the segment System, the total net sales for the fourth guarter were SEK 429 million (349), of which SEK 379 million (289) are external sales. The increase of the external sales was SEK 91 million.
Operating profit (EBIT) in the fourth guarter was SEK 108 million (68) for Component, corresponding to an increase of SEK 39 million compared to previous year. Operating profit (EBIT) for System was SEK 31 million (40), corresponding to a decrease of SEK 9 million compared to previous year.
In the column "Unallocated and eliminations" there are items related to the parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| Oct-Dec 2022, SEK M | Component | System | eliminations | Group |
| Net sales, external | 1,595 | 379 | 1,974 | |
| Net sales, internal | 129 | 50 | $-179$ | |
| Total net turnover | 1,724 | 429 | $-179$ | 1,974 |
| Material costs, excl. purchases own segment | $-908$ | $-301$ | 158 | $-1,050$ |
| Depreciation | -61 | -6 | -0 | $-67$ |
| Other operating expenses/income | $-648$ | $-91$ | 31 | $-709$ |
| Operating profit | 108 | 31 | 10 | 148 |
| Net financials items | $-11$ | |||
| Profit before tax | 137 |
| Customer Focus |
Simplicity | Entre- preneurial |
Cost Efficiency |
Courage and |
WF ARE RELIABLE |
|---|---|---|---|---|---|
| business | Respect |
| Unallocated and | |||||
|---|---|---|---|---|---|
| Oct-Dec 2021, SEK M | Component | System | eliminations | Group | |
| Net sales, external | 1,209 | 289 | 1,498 | ||
| Net sales, internal | 103 | 60 | $-163$ | ||
| Total net turnover | 1,312 | 349 | $-163$ | 1,498 | |
| Material costs, excl. purchases own segment | $-679$ | $-228$ | 134 | $-773$ | |
| Depreciation | -56 | -5 | -0 | $-62$ | |
| Other operating expenses/income | $-508$ | $-75$ | 34 | $-549$ | |
| Operating profit | 68 | 40 | 5 | 113 | |
| Net financials items | $-3$ | ||||
| Profit before tax | 110 |
Full year
For the segment Component, the total net sales for the year were SEK 6,165 million (4,739), of which SEK 5,710 million (4,382) are external sales. The increase of the external sales was SEK 1,328 million.
For the segment System, the total net sales for the year were SEK 1,521 million (1,374), of which SEK 1,342 million (1,089) are external sales. The increase of the external sales was SEK 253 million.
Operating profit (EBIT) for the year was SEK 315 million (289) for Component, corresponding to an increase of SEK 26 million compared to previous year. Operating profit (EBIT) for System was SEK 171 million (149), corresponding to an increase of SEK 21 million compared to previous year.
In the column "Unallocated and eliminations" there are items related to the parent company and group eliminations.
| Unallocated and | ||||
|---|---|---|---|---|
| Jan-Dec 2022, SEK M | Component | System | eliminations | Group |
| Net sales, external | 5,710 | 1,342 | 7,053 | |
| Net sales, internal | 455 | 178 | $-633$ | |
| Total net turnover | 6,165 | 1,521 | -633 | 7,053 |
| Material costs, excl. purchases own segment | $-3,289$ | $-1,007$ | 538 | $-3,759$ |
| Depreciation | $-236$ | $-24$ | $-1$ | $-261$ |
| Other operating expenses/income | $-2,324$ | $-319$ | 101 | $-2,542$ |
| Operating profit | 315 | 171 | 5 | 491 |
| Net financial items | -8 | |||
| Profit before tax | 482 |
| Unallocated and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Jan-Dec 2021, SEK M | Component | System | eliminations | Group | ||||
| Net sales, external | 4,382 | 1,089 | 5,471 | |||||
| Net sales, internal | 357 | 285 | $-642$ | |||||
| Total net turnover | 4,739 | 1,374 | $-642$ | 5,471 | ||||
| Material costs, excl. purchases own segment | $-2,415$ | $-945$ | 557 | $-2,802$ | ||||
| Depreciation | $-207$ | -26 | $-1$ | $-234$ | ||||
| Other operating expenses/income | $-1,828$ | $-254$ | 94 | $-1,988$ | ||||
| Operating profit | 289 | 149 | 8 | 446 | ||||
| Net financial items | $-5$ | |||||||
| Profit before tax | 441 |
The turnover divided among geographical markets in the fourth quarter; Sweden 29% (31), other European countries 54% (51) and other countries 17% (18).
| Unallocated and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Oct-Dec 2022, SEK M | Component | System | eliminations | Group | ||||
| Sweden | 352 | 258 | 8 | 618 | ||||
| Other European countries | 1,057 | 111 | $\overline{\phantom{0}}$ | 1,167 | ||||
| Other countries | 316 | 60 | $\overline{\phantom{0}}$ | 376 | ||||
| Net sales | 1,724 | 429 | 2,162 | |||||
| Internal sales, eliminations | $\overline{\phantom{a}}$ | -187 | $-187$ | |||||
| Total net turnover | 1.724 | 429 | -179 | 1,974 |
| Unallocated and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Oct-Dec 2021, SEK M | Component | System | eliminations | Group | ||||
| Sweden | 286 | 212 | 11 | 509 | ||||
| Other European countries | 779 | 75 | $\overline{\phantom{0}}$ | 854 | ||||
| Other countries | 247 | 61 | $\overline{\phantom{0}}$ | 308 | ||||
| Net sales | 1,312 | 349 | 11 | 1,671 | ||||
| Internal sales, eliminations | $\overline{\phantom{0}}$ | $-173$ | $-173$ | |||||
| Total net turnover | 1,312 | 349 | $-163$ | 1,498 |
Geographical markets are based on where AQ Group's subsidiaries have their registered office.
The turnover divided among geographical markets for the full year; Sweden 29% (31), other European countries 53% (51) and other countries 18% (18).
| Unallocated and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Jan-Dec 2022, SEK M | Component | System | eliminations | Group | ||||
| Sweden | 1,261 | 915 | 49 | 2,224 | ||||
| Other European countries | 3,749 | 379 | ۰ | 4,128 | ||||
| Other countries | 1,155 | 227 | $\overline{\phantom{a}}$ | 1,382 | ||||
| Net sales | 6,165 | 1,521 | 49 | 7,734 | ||||
| Internal sales, eliminations | - | $-682$ | $-682$ | |||||
| Total net turnover | 6,165 | 1.521 | -633 | 7.053 |
| Unallocated and | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Jan-Dec 2021, SEK M | Component | System | eliminations | Group | |||||
| Sweden | 1,066 | 789 | 50 | 1,905 | |||||
| Other European countries | 2,825 | 300 | $\overline{\phantom{a}}$ | 3,125 | |||||
| Other countries | 848 | 285 | $\overline{\phantom{a}}$ | 1,133 | |||||
| Net sales | 4,739 | 1.374 | 50 | 6,163 | |||||
| Internal sales, eliminations | $-691$ | $-691$ | |||||||
| Total net turnover | 4,739 | 1,374 | $-642$ | 5,471 |
Geographical markets are based on where AQ Group's subsidiaries have their registered office.
Number of employees (full time yearly equivalents) in the Group divided per country:
| Jan-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|
| Country | 2022 | 2021 | 2020 |
| Bulgaria | 1,394 | 1,303 | 1,233 |
| Poland | 1,157 | 1,027 | 940 |
| Lithuania | 998 | 678 | 605 |
| Sweden | 851 | 821 | 794 |
| China | 702 | 637 | 572 |
| Estonia | 574 | 547 | 581 |
| Hungary | 477 | 500 | 376 |
| Mexico | 335 | 229 | 200 |
| Finland | 188 | 185 | 187 |
| India | 174 | 156 | 137 |
| Canada | 161 | 167 | 164 |
| USA | 158 | 167 | 72 |
| Germany | 20 | 22 | $\mathsf{3}$ |
| Italy | 18 | 18 | 18 |
| Brazil | $\bf 8$ | 9 | 5 |
| Serbia | 7 | 11 | 4 |
| Totalsumma | 7,222 | 6,477 | 5,891 |
AQ's strategy is to grow in both segments. During 2022, no business acquisitions were made. In July 2021, Schaffner Group's Power Magnetics division was acquired for a total purchase price of SEK 208 million, which affected the cash flow by SEK-203 million for the full year, whereof SEK-17 million in the fourth quarter previous year.
Financial instruments that are shown in the balance sheet include on the assets side mainly cash or cash equivalents, accounts receivable and other receivables. On the liabilities side they consist mainly of accounts payable, 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 where those are available. 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, 2022, there are no remaining derivatives, previous year the market value amounted to SEK-0.0 million (valued at level 2).
Information about events after the end of the reporting period are presented on page 5.
WE ARE RELIABLE
$\cos$ Efficien
Entre
eneuria
husin
Courage
and
Respect
| 2022 | 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK M unless otherwise stated | Q1 | Q 2 | Q3 | Q4 | YTD | Q1 | Q 2 | Q3 | Q4 Full year | |
| Operating margin, (EBIT %) Operating profit |
113 | 107 | 123 | 148 | 491 | 121 | 118 | 94 | 113 | 446 |
| Net revenue | 1,646 | 1,721 | 1,711 | 1,974 | 7,053 | 1,307 | 1,361 | 1,306 | 1,498 | 5,471 |
| Operating margin | 6.9 | 6.2 | 7.2 | 7.5 | 7.0 | 9.3 | 8.7 | 7.2 | 7.6 | 8.2 |
| EBITDA Profit before tax |
113 | 107 | 123 | 148 | 491 | 121 | 118 | 94 | 113 | 446 |
| Depreciations/amortisations | $-65$ | $-65$ | $-64$ | $-67$ | $-261$ | $-55$ | $-56$ | $-62$ | $-62$ | $-234$ |
| EBITDA | 178 | 171 | 187 | 215 | 751 | 177 | 173 | 156 | 175 | 681 |
| Profit margin before tax, (EBT %) | ||||||||||
| Profit before tax | 116 | 108 | 121 | 137 | 482 | 126 | 114 | 91 | 110 | 441 |
| Net revenue Profit margin before tax, % |
1,646 7.1 |
1,721 6.3 |
1,711 7.1 |
1,974 6.9 |
7,053 6.8 |
1,307 9.6 |
1,361 8.4 |
1,306 6.9 |
1,498 7.4 |
5,471 8.1 |
| Liquid ratio, % | ||||||||||
| Trade receivables | 1,418 | 1,515 | 1,627 | 1,745 | 1,745 | 1,121 | 1,127 | 1,117 | 1,295 | 1,295 |
| Other current receivables | 187 | 203 | 197 | 204 | 204 | 132 | 151 | 194 | 173 | 173 |
| Cash and cash equivalents | 223 | 217 | 154 | 231 | 231 | 571 | 608 | 505 | 283 | 283 |
| Current liabilities | 1,459 | 1,513 | 1,513 | 1,551 | 1,551 | 1,361 | 1,132 | 1,279 | 1,342 | 1,342 |
| Liquid ratio, % | 125 | 128 | 131 | 140 | 140 | 134 | 167 | 142 | 130 | 130 |
| Debt/equity ratio, % | ||||||||||
| Total equity | 2,756 | 2,865 | 3,010 | 3,180 | 3,180 | 2,352 | 2,438 | 2,526 | 2,627 | 2,627 |
| Total assets | 4,920 | 5,165 | 5,392 | 5,704 | 5,704 | 4,196 | 4,281 | 4,577 | 4,699 | 4,699 |
| Debt/equity ratio, % | 56 | 55 | 56 | 56 | 56 | 56 | 57 | 55 | 56 | 56 |
| Return on total assets, % | ||||||||||
| Profit before tax, rolling 12 months | 431 | 426 | 456 | 482 | 482 | 408 | 444 | 442 | 441 | 441 |
| Financial expenses, rolling 12 months | $-31$ | $-43$ | $-59$ | $-48$ | $-48$ | $-31$ | $-36$ | -36 | $-28$ | $-28$ |
| Total equity and liabilities, opening balance for 12 months | 4,196 | 4,281 | 4,577 | 4,699 | 4,699 | 4,063 | 3,818 | 3,908 | 3,864 | 3,864 |
| Total equity and liabilities, closing balance | 4,920 | 5,165 | 5,392 | 5,704 | 5,704 | 4,196 | 4,281 | 4,577 | 4,699 | 4,699 |
| Total equity and liabilities, average | 4,558 | 4,723 | 4,984 | 5,202 | 5,202 | 4,130 | 4,049 | 4,242 | 4,282 | 4,282 |
| Return on total assets, % | 10.1 | 9.9 | 10.3 | 10.2 | 10.2 | 10.6 | 11.9 | 11.3 | 11.0 | 11.0 |
| Return on equity after tax, % | ||||||||||
| Profit for the period after tax, rolling 12 months | 352 | 343 | 367 | 413 | 413 | 351 | 377 | 373 | 368 | 368 |
| Total equity, opening for 12 months | 2,352 | 2,438 | 2,526 | 2,627 | 2,627 | 2,176 | 2,129 | 2,206 | 2,191 | 2,191 |
| Total equity, closing | 2,756 | 2,865 | 3,010 | 3,180 | 3,180 | 2,352 | 2,438 | 2,526 | 2,627 | 2,627 |
| Total equity, average | 2,554 | 2,652 | 2,768 | 2,904 | 2,904 | 2,264 | 2,284 | 2,366 | 2,409 | 2,409 |
| Return on equity after tax, % | 13.8 | 12.9 | 13.3 | 14.2 | 14.2 | 15.5 | 16.5 | 15.8 | 15.3 | 15.3 |
| Net cash / Net debt | ||||||||||
| Cash and cash equivalents | 223 | 217 | 154 | 231 | 231 | 571 | 608 | 505 | 283 | 283 |
| Non-current interest bearing liabilities | 605 | 686 | 769 | 861 | 861 | 381 | 611 | 670 | 632 | 632 |
| Current interest bearing liabilities | 226 | 238 | 234 | 180 | 180 | 415 | 170 | 201 | 212 | 212 |
| Total interest bearing liabilities Net cash / Net debt |
831 -608 |
924 -707 |
1,003 | 1,040 | 1,040 -810 |
796 $-225$ |
781 $-173$ |
872 -367 |
844 $-561$ |
844 -561 |
| -849 | -810 | |||||||||
| Growth, % | ||||||||||
| Organic growth | ||||||||||
| Net revenue | 1,646 | 1,721 | 1,711 | 1,974 | 7,053 | 1,307 | 1,361 | 1,306 | 1,498 | 5,471 |
| - Effect of changes in exchange rates | $-30$ | -9 | 55 | 88 | 103 | -67 | $-53$ | -6 | $-7$ | $-134$ |
| Net revenue for last year | 1,307 | 1,361 | 1,306 | 1,498 | 5,471 | 1,342 | 1,116 | 1,104 | 1,256 | 4,819 |
| Net revenue for acquired companies | 98 | 88 | 185 | $\overline{\phantom{a}}$ | 93 | 99 | 192 | |||
| = Organic growth Organic growth divided by last year net revenue, % |
273 20.9 |
282 20.7 |
350 26.8 |
389 26.0 |
1,293 23.6 |
32 2.4 |
298 26.7 |
115 10.4 |
149 11.9 |
594 12.3 |
| Growth through acquisitions | ||||||||||
| Net revenue for acquired companies divided by last year | ||||||||||
| net revenue, % | 7.5 | 6.4 | 0.0 | 0.0 | 3.4 | 0.0 | 0.0 | 8.4 | 7.9 | 4.0 |
Customer
Focu:
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 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 Group 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.
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 global manufacturer of components and systems to demanding industrial customers and is listed on Nasdag 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, 2022, in total 7,200 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, Brazil and Serbia.
In 2022 AQ had net sales of SEK 7 billion, and the Group has since its start in 1994 shown profit every quarter.
WF ARF RFI JARI F
Entr
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