AQ Group

Annual Report • Feb 13, 2025

AQ Group AB (publ)

Year-end Report

J a n u a r y – D e c e m b e r 2 0 2 4

F e b r u a r y 1 3 , 2 0 2 5

Fourth quarter, October-December 2024 in brief

• Net sales decreased by 4% to SEK 2,126 m (2,221)
• Operating profit (EBIT) increased by 7% to SEK 206 m (193)
• Profit before tax (EBT) increased by 14% to SEK 209 m (182)
• Profit margin before tax (EBT %) was 9.8% (8.2)
• Profit after tax amounted to SEK 154 m (134)
• Cash flow from operating activities amounted to SEK 288 m (239)
• Earnings per share before dilution amounted to SEK 1.69 (1.46)

Full year 2024 in brief

• Net sales decreased by 5% to SEK 8,554 m (8,968)
• Operating profit (EBIT) increased by 6% to SEK 840 m (792)
• Profit before tax (EBT) increased by 9% to SEK 824 m (757)
• Profit margin before tax (EBT %) was 9.6% (8.4)
• Profit after tax amounted to SEK 666 m (636)
• Cash flow from operating activities amounted to SEK 1,197 m (980)
• Earnings per share before dilution amounted to SEK 7.27 (6.91)
• Equity ratio was 67% (63)
• The Board of Directors proposes a dividend of SEK 1.60 /share (SEK 1.33 /share)

Group overview, key figures

	2024				2023
SEKm unless otherwise stated	Q1	Q2	Q3		Q4 Full year	Q1	Q2	Q3		Q4 Full year
Net turnover	2,225	2,254	1,949	2,126	8,554	2,253	2,345	2,149	2,221	8,968
Operating profit (EBIT)	223	222	188	206	840	194	203	201	193	792
Profit before tax (EBT)	221	218	177	209	824	184	195	195	182	757
Profit for the period	185	181	146	154	666	159	172	172	134	636
Total equity	4,082	4,083	4,178	4,409	4,409	3,391	3,671	3,734	3,762	3,762
Operating margin (EBIT), %	10.0	9.8	9.6	9.7	9.8	8.6	8.7	9.3	8.7	8.8
Profit margin before tax (EBT), %	9.9	9.7	9.1	9.8	9.6	8.2	8.3	9.1	8.2	8.4
Liquid ratio, %	163	174	192	204	204	146	152	161	162	162
Debt/equity ratio, %	64	64	65	67	67	55	58	61	63	63
Return on total assets, % 1)	13.5	13.4	13.3	13.8	13.8	10.9	12.1	13.0	13.8	13.8
Return on equtiy after tax, % 1)	17.7	17.3	16.3	16.3	16.3	15.6	17.3	18.9	18.3	18.3
Number of employees in Sweden	904	979	975	1,017	1,017	860	862	866	878	878
Number of employees outside Sweden	6,937	6,861	6,886	6,796	6,796	6,716	6,868	6,924	6,968	6,968
Key indicators per share, SEK
Profit related to parent company
shareholders	184	180	146	155	665	157	170	171	134	632
Profit for the period before dilution	2.01	1.97	1.60	1.69	7.27	1.72	1.86	1.87	1.46	6.91
Equity	44.63	44.63	45.67	48.20	48.20	37.08	40.13	40.83	41.12	41.12
Number of shares, thousands	91,470	91,470	91,470	91,470	91,470	91,470	91,470	91,470	91,470	91,470

1) Calculated based on 12 months rolling amounts.

A word from the CEO

2024 quite ok, we scrimp on

In 2024, we have had high margins, good cash flow and completed four acquisitions. We have managed to adapt costs to the current market situation in a good way. In the fourth quarter, our operating margin before tax was 9.8%, despite a 4% decline in sales compared to the same period previous year. During the year, we worked intensively to integrate our acquired companies. It is great to welcome new employees and customers to AQ. It's fantastic to see the power of entrepreneurship where satisfied customers choose AQ over other talented competitors.

Acquisition

During 2024, we have acquired seven factories and two engineering offices. The integration of Rockford, JIT Mech and TechROi is proceeding according to plan. These units contribute to long-term profitable growth in our markets of defense, electrification, forestry automation, aerospace and gas turbines.

At the end of December, we signed an agreement to acquire mdexx magnetronics and Michael Riedel, which develops, manufactures and sells inductive components for demanding customers in electrification, railway, automation and medical technology. With this acquisition, we strengthen AQ's ability to develop inductive components, and it increases our production capacity. This, combined with AQ's engineering and factory network, gives us a very strong offering to our customers. The German competition authority has approved the acquisition, and the companies are part of AQ since January 31, 2025 and are expected to increase our annual net sales by approximately SEK 500 m. We welcome our 400 new employees in Weyhe, Ilshofen and Trutnov to AQ.

Several of our acquisitions during the year are aimed at increasing the technology content of our delivery. In 2024, we have increased by 100 engineers in Europe. We believe this will strengthen our competitiveness and contribute to further business opportunities going forward.

Market and investments

In the quarter, we had a negative organic growth of 9% compared to the same quarter last year. That is far from our goal. Demand from our customers in trucks, buses and construction equipment was significantly lower than in the same period last year but on the same level as the volumes in quarter 3 2024.

Our employees do their utmost to be close to our customers and we win new orders and contracts in all market segments. During the fourth quarter, we have primarily received orders in power transmission, electrical automation of cranes and boats, as well as prototypes for all-electric construction equipment and trucks. We have also received new orders for components and systems for customers who manufacture machines for electronics production and industrial dishwashers. Our transformer factory in the US is growing well and has a full order book for 2025. We are expanding capacity there to be able to take more orders.

To meet increased demand, we have decided to invest SEK 10 m in an efficient 15 kW fiber laser cutting machine to be able to cut up to 40 mm thick sheet metal for the defense industry in Europe.

Cash flow and balance sheet

Our cash flow from operating activities is strong as expected when sales volumes decline. We have a net cash position of SEK 284 million, which means that we have plenty of capital to use for continued growth with our customers and to carry out acquisitions.

AQ 30 years of growth and profitability

In 2024, AQ as a company celebrated 30 years. We have grown sales from SEK 18 million to SEK 8.5 billion, with profit every quarter. We have proven that our business model and our culture of decentralized leadership close to the customer works. AQ is stronger than ever. We have a very strong balance sheet, modern and efficient production units, and fantastic employees. We look to the future with confidence and look forward to another 30 years of growth, profit and fun together with our demanding world-class industrial customers. But success does not come by itself. Therefore, I would like to thank all our customers, suppliers and employees - you are fantastic!

James Ahrgren, CEO

Net sales

Group's financial position and results

Fourth quarter

Net sales for the fourth quarter was SEK 2,126 m (2,221), a decrease of SEK 95 m compared to the same period in the previous year. The total growth in the quarter was -4.3%, of which organic growth -8.9%, growth through acquisitions +5.0% and currency effects of -0.4%. The currency effect corresponded to SEK 8 m and was mainly driven by the currencies HUF, PLN and MXN.

The quarter's organic growth of -8.9% is mainly attributable to reduced volume of components for buses and trucks, as well as energy storage projects compared to previous year.

Operating profit (EBIT) in the fourth quarter amounted to SEK 206 m (193), an increase of SEK 13 m, which is explained by less production disruptions than the previous year and product mix.

Net financial items in the quarter amounted to SEK +2 m (-11), which is explained by a more positive impact of currencies and lower interest expenses compared with the corresponding period last year. The EBT margin has increased and amounted to 9.8% (8.2), which is still above our target of 8%.

Cash flow from operating activities was SEK 288 m (239).

Cash flow from investing activities was SEK -71 m (-61) and relates mainly to replacement and capacity-increasing investments in the form of tangible fixed assets of SEK -45 m (-61) as well as acquisition of subsidiaries of SEK -25 m (0).

Cash flow from financing activities was SEK -127 m (-177) and mainly refers to repayments of bank loans and leasing liabilities of SEK -111 m (-184).

Full year

Net sales for the full year was SEK 8,554 m (8,968), a decrease of SEK 414 m compared the previous year. The total growth for the full year was -4.6%, of which organic growth -6.9%, growth through acquisitions +2.5% and currency effects of -0.2%. The currency effect corresponded to SEK -19 m and was mainly driven by the currencies PLN, HUF and CNY.

The organic growth of -6.9% for the full year, is mainly explained by reduced volume in energy storage projects, components for construction equipment, trucks, buses and frequency converters.

Operating profit (EBIT) for the full year amounted to SEK 840 m (792), an increase of SEK 48 m, which is explained by the product mix and higher delivery precision. Reduced interest expenses as a result of lower net debt resulted in net financial items for the full year amounting to SEK -15 m (-35). The EBT margin was 9.6% (8.4).

Interest-bearing liabilities of the Group was SEK 635 m (717) and cash and cash equivalents amounted to SEK 919 m (426), which means that the Group has a net cash position of SEK 284 m (-291). The Group's interest-bearing liabilities without regard to leasing liabilities amounted to SEK 309 m (451), which means a net cash position adjusted for leasing liabilities of SEK 610 m (-25).

Cash flow from operating activities was SEK 1,197 m (980) and was positively affected by the improved operating profit and reduced working capital.

Cash flow from investing activities was SEK -265 m (-252), which relates mainly to acquisition of subsidiaries of SEK -84 m (0) and replacement and capacity-enhancing investments of tangible fixed assets of SEK -185 m (-251). The single largest investments during the period are production equipment in Sweden of SEK 70 m, in Estonia of SEK 41 m and in Bulgaria of SEK 27 m.

Cash flow from financing activities was SEK -448 m (-528) and mainly refers to repayments of bank loans and leasing liabilities of SEK -457 m (-468), new bank loans SEK 160 m (0) and dividend of SEK -122 m (-61).

Equity at the end of the period amounted to SEK 4,409 m (3,762) for the Group.

Significant events during the year

On March 11, 2024, AQ Group AB signed an agreement with JIT Mech se Förvaltning AB and Monen Holding AB to acquire 100% of the shares in JIT Mech se Industri AB with the subsidiaries JIT Mech i Robertsfors AB and JIT Mech i Örnsköldsvik AB. The closing took place May 2, 2024. JIT Mech is a leading supplier of large and complex machined and welded components to customers in the electrification, forestry automation and defense industries. The companies had a consolidated turnover for 2023 of approximately SEK 130 m, an operating margin in line with the AQ average, and 75 employees. Operations are conducted in Robertsfors and Örnsköldsvik. The purchase price consisted of SEK 40 m in cash at closing, plus an earn-out based on the companies' earnings for the years 2024– 2026.

The Annual General Meeting, held on April 18, 2024, it was resolved to split the company's shares, meaning that each existing share is divided into five shares, a 5:1 share split. The share split was carried out in May 2024. As a result of the share split, the total number of shares during the month of May increased from 18,294,058 to 91,470,290 and the quota value of the share has changed from SEK 2 to SEK 0.40. Since May 31, 2024, the total number of shares and votes in the company amounts to 91,470,290.

The Annual General Meeting also resolved on a new round of warrant programs for senior executives and other key employees within AQ. The subscription price was set in May at SEK 760.50 per share (before the split), which after the 5:1 share split was recalculated to SEK 152.10 per share. A total of 13,500 warrants were subscribed for in the three-year warrant program that expires on May 12, 2027. Upon redemption, each warrant after the share split entitles the holder to five shares. When the average share price during the period is higher than the determined subscription price, the dilution effect for earnings per share is calculated in respect of these warrants. In 2024, no dilution effect has occurred for this program.

On July 10, 2024, AQ Group AB acquired and took over Rockford Components Holdings Limited, which manufactures and delivers wiring and electromechanical systems to customers in the defense, aerospace, and general industries. The company had a turnover in 2023 of SEK 95 m, an operating margin below the AQ average and 112 employees. Operations are conducted in Rendlesham, Worksop and Salisbury in England. The purchase price consisted of SEK 18 m in cash at closing and an earnout based on the company's results for the next 12 months, up to a maximum of SEK 15 m.

On September 26, 2024, the subsidiary of AQ Group, AQ Engineering AB signed an agreement with TechROi AB to acquire 100% of the shares in TechROi Engineering AB and TechROi Scandinavia AB, which develop and construct components and systems to demanding customers within vehicle, aerospace and gas turbine industries. The companies had a turnover of SEK 55 m in 2023, an operating margin below AQ average and 38 employees. Operations are conducted in Trollhättan and Gothenburg. The purchase price consisted of SEK 1 in cash at closing and a debt takeover of approximately SEK 30 m. The transaction was subject to approval by the Swedish Supervisory Authority in accordance with the FDI Act and closing took place on October 31, 2024.

On December 20, 2024, AQ Group entered into an agreement with Lafayette Mittelstand Capital to acquire 100% of the shares in mdexx inductive electronics GmbH, mdexx Magnetronic Devices GmbH, mdexx Magnetronic Devices s.r.o. and Michael Riedel, Transformatorenbau GmbH. mdexx is a leading supplier in the design and manufacture of specialized inductive components such as reactors, transformers and filters in the low to medium power and frequency range. Michael Riedel,

Transformatorenbau is a leading supplier in the design and manufacture of custom-made transformers, reactors and filters in the small to medium power range. The transaction was subject to governmental approvals and enterprise value amounted to approximately 5 x EBITDA for the financial year 2023 on a cash and debt free basis.

Significant events after the end of the period

On January 31, 2025, following regulatory approval, AQ Group AB completed the acquisition of the shares in mdexx inductive electronics GmbH, mdexx Magnetronic Devices GmbH, mdexx Magnetronic Devices s.r.o. and Michael Riedel, Transformatorenbau GmbH. mdexx companies have manufacturing in the Czech Republic and sales and design engineers in Germany, the Czech Republic and France. The turnover in 2023 amounted to EUR 47 million and the EBITDA margin amounted to 4%.The Michael Riedel company is located in Ilshofen, Germany. The turnover in 2023 amounted to EUR 17 million and the EBITDA margin was 8%. The preliminary purchase price, EUR 13 million, was paid in cash at closing. There is no conditional earn-out.

Goals

The goal of the Group is continued profitable growth. The goal is a profit margin before tax (EBT%) of at least 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 and 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.

		Oct-Dec	Oct-Dec	Full year	Full year
	Target	2024	2023	2024	2023
Product quality, %	100	99.6	99.5	99.6	99.5
Delivery precision, %	98	93.1	91.3	92.6	90.5
Equity ratio, %	>40	67.0	63.0	67.0	63.0
Profit margin before tax (EBT), %	> 8	9.8	8.2	9.6	8.4
Growth, %	>15	-4.3	12.5	-4.6	27.2

Transactions with related parties

The parent company has a related party relationship with its subsidiaries. There are some sales activities concerning goods and services between the operating group companies. The parent company is charging a business support service 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 122 m to its shareholders in April 2024 following a decision at the 2024 Annual General Meeting.

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 70.24 per share (after the share split). 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 five shares. The 2024 Annual General Meeting decided on a new round of warrant programs for senior executives and other key employees within AQ. The subscription price was set in May at SEK 760.50 per share (before the split), which after the 5:1 share split was recalculated to SEK 152.10 per share. A total of 13,500 warrants were subscribed for in the three-year warrant program that expires on May 12, 2027. Upon redemption,

each warrant after the share split entitles the holder to five shares. When the average share price during the period is higher than the determined subscription price, the dilution effect for earnings per share is calculated in respect of these warrants.

In addition to the above, there are customary remunerations for the board and other senior executives as well as individual related transactions regarding the purchase of products and consulting services which are at market conditions.

Risks and uncertainty factors

AQ is a global group 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 2023. In recent times, we have experienced pandemics, direct acts of war, hybrid acts of war and political threats and initiatives that are causing great concern in the world. This has resulted in increased and more unpredictable energy costs, sanctions, tariffs and other risks and uncertainties that can have a material impact on AQ's customers and suppliers. These, in turn, affect the actual outcome for AQ. In addition to the commented factors the actual 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, events linked to cyber security and IT infrastructure, delivery problems and large credit losses at our customers.

AQ does not have any production units in the Middle East, Ukraine, Russia or Belarus, nor any significant customers or suppliers in these countries. AQ has however production units in Mexico and Canada that might be directly or indirectly affected if the threats of trade barriers posed by the United States are implemented. However, the impact at Group level is deemed small due to the relative size of the units. The risks that are most prominent for AQ in the short term are the impact of component shortages on security of supply, the relatively uncertain political and economic global situation, and currency and price risks on, for example, customs, energy, transport and materials. We are constantly monitoring and evaluating the situation to be prepared to act quickly to limit any impact on AQ.

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 Group's purchase of materials to different processes is significant. There is a risk of sharp price increases for raw materials where the Group is not able to compensate price increases, which may affect the Group'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.

Global minimum tax

The legislation of Pillar II has been adopted in Sweden, where AQ Group AB is based, and entered into force on 1 January 2024. The turnover requirement of EUR 750 m for two of the last four years has been met after the end of the financial year 2024. As of 2025, the Group will thus be subject to the OECD model rules for Pillar II. The Group has significant operations in several countries that currently have a reported corporate income tax rate of less than 15%, including Bulgaria, Estonia, Lithuania and Hungary, hence we have made an analysis and calculation of the potential effect of the Pillar II rules for the Group going forward.

Nomination committee

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 2025 consists of Björn Henriksson (Nordea Fonder), Peter Nygren (ODIN Fonder), Per Olof Andersson (own holding) and Claes Mellgren (own holding) with Björn Henriksson as chairman.

Future reporting dates

Annual Report, 2024 Week 13, 2025 Interim report January-March 2025 April 23, 2025, at 08:00 CEST Interim report January-June,2025 July 15, 2025, at 08:00 CEST Interim report January-September 2025 October 16, 2025, at 08:00 CEST

Annual General Meeting April 23, 2025, at 18:00 CEST, in Västerås

The Annual Report, Annual General Meeting and dividend The Annual Report for 2024 will be available on the company's website no later than March 28, 2025.

The Annual General Meeting will be held on April 23, 2025 at 18:00 CEST in Västerås. More information will be available in the notice convening the AGM, which will be published on the company's website www.aqgroup.com no later than 4 weeks before the AGM.

The Board of Directors proposes a dividend of SEK 1.60 per share for the financial year 2024, a total of SEK 146,352,464.

Other information

The information in this Interim Report contains information that AQ Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act (2007:528). The information was submitted for publication by James Ahrgren at 08:00 CET on February 13, 2025.

AQ Group AB (publ) is listed on Nasdaq Stockholm's main market.

This report has not been reviewed by the company´s financial auditors.

Further information can be given by AQ Group AB:

CEO and IR, James Ahrgren, telephone +46 76 052 58 88, james.ahrgren@aqgroup.com CFO, Christina Hegg, telephone +46 70 318 92 48, christina.hegg@aqgroup.com

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.aqgroup.com.

Certification

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 13, 2025

James Ahrgren CEO

Financial reports

Summary Income Statement for the Group

		Oct-Dec	Oct-Dec	Full year	Full year
SEKm	Note	2024	2023	2024	2023
Net sales	2	2,126	2,221	8,554	8,968
Other operating income		42	38	141	165
Total income		2,168	2,258	8,695	9,133
Change in inventory and work in progress		-33	16	-73	-61
Raw material and consumables		-924	-1,106	-4,021	-4,511
Goods for resale		-62	-39	-166	-115
Other external expenses		-226	-229	-836	-936
Personnel costs	3	-618	-604	-2,388	-2,316
Depreciation and amortization		-83	-72	-306	-288
Other operating expenses		-14	-31	-65	-115
Total expenses		-1,961	-2,065	-7,855	-8,341
Operating profit		206	193	840	792
Net financial income/expense	5	2	-11	-15	-35
Profit before tax		209	182	824	757
Taxes		-54	-49	-159	-121
Profit for the period		154	134	666	636
PROFIT FOR THE PERIOD ATTRIBUTABLE TO
Parent company shareholders		155	134	665	632
Non-controlling interests		- 0	- 0	1	4
SHARE-RELATED REPORTING, SEK
Earnings per share before dilution		1.69	1.46	7.27	6.91
Earnings per share after dilution *)		1.69	1.46	7.25	6.89
AVERAGE NUMBER OF SHARES
Before dilution, thousands		91,470	91,470	91,470	91,470
After dilution, thousands *)		91,733	91,733	91,733	91,733

Statement of comprehensive income for the Group, summary

	Oct-Dec	Oct-Dec	Full year	Full year
SEKm	2024	2023	2024	2023
PROFIT FOR THE PERIOD	154	134	666	636
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to the income statement
Revaluation related to defined benefit pension plans	- 4	1	- 4	1
Revalutation related to defined benefit pension plans, tax effect	0	- 0	0	- 0
Items that subsequently may be reclassified to the income statement
Translation difference for foreign operations	80	-107	105	6
Other comprehensive income for the period after tax	77	-107	102	7
Comprehensive income for the period	231	27	767	643
COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO
Parent company shareholders	231	28	766	639
Non-controlling interests	- 0	- 1	1	3

*) Of the two outstanding warrant programs, a dilution effect for the first corresponding to 52,500 warrants has occurred. Upon redemption, these entitle to 262,500 shares. However, there has been no dilution effect for the second program corresponding to 13,500 warrants.

			Cost
Customer Focus	Simplicity	Entre- preneurial business	Efficiency	Courage and Respect	- Л ARE RETT

Summary Balance Sheet for the Group

		Dec 31	Dec 31
SEKm	Note	2024	2023
ASSETS
Goodwill		447	393
Other intangible assets		109	110
Right-of-use assets		320	262
Tangible assets		1,210	1,117
Non-current receivables		13	11
Deferred tax assets		51	55
Total non-current assets		2,149	1,950
Inventories		1,443	1,474
Accounts receivable - trade		1,844	1,879
Current tax assets		31	23
Other receivables		91	145
Prepaid expenses and accrued income		91	63
Cash and cash equivalents		919	426
Total current assets		4,418	4,010
TOTAL ASSETS		6,567	5,960
EQUITY AND LIABILITIES
Equity attributable to parent company shareholders		4,388	3,742
Non-controlling interests		21	19
TOTAL EQUITY		4,409	3,762
Interest-bearing liabilities to credit institutions		520	513
Deferred tax liabilities		115	95
Provisions for post-employement benefits		25	19
Other provisions		8	6
Other non-current liabilities	5	31	-
Total non-current liabilities		700	633
Interest-bearing liabilities to credit institutions		115	204
Provisions		23	38
Contract liabilities		92	112
Accounts payable - trade		716	763
Current tax liabilities		40	18
Other current liabilities	5	139	115
Accrued expenses and prepaid income		333	315
Total current liabilities		1,458	1,565
TOTAL LIABILITIES		2,158	2,198
TOTAL EQUITY AND LIABILITIES		6,567	5,960

Entre- preneurial		Courage and Respect	MF ARF RFI IAKI I
Simplicity	business	Cost	Efficiency

Statement of changes in Equity for the Group

	Equity attributable to parent company shareholders
	Other		Retained			Non
	Share	contributed		earnings		controlling	Total
SEK M	capital	capital	Reserves	incl. profit	Subtotal	interests	equity
Equity, 12/31/2022	37	86	280	2,761	3,164	16	3,180
Profit for the year	-	-	-	632	632	4	636
Translation differences, foreign operations	-	-	6	0	6	- 0	6
Revalutation of defined benefit pension plans Revalutation of defined benefit pension plans, tax	-	-	-	1	1	0	1
effect	-	-	-	- 0	- 0	- 0	- 0
Other comprehensive income for the year after tax	-	-	6	1	7	- 0	7
Comprehensive income for the year	-	-	6	633	639	3	643
Paid dividend	-	-	-	-61	-61	-	-61
Transactions with shareholders	-	-	-	-61	-61	-	-61
Equity, 12/31/2023	37	86	286	3,333	3,742	19	3,762
Equity, 12/31/2023	37	86	286	3,333	3,742	19	3,762
Profit for the year	-	-	-	665	665	1	666
Translation differences, foreign operations	-	-	66	39	105	1	105
Revalutation of defined benefit pension plans	-	-	-	- 4	- 4	- 0	- 4
Revalutation of defined benefit pension plans, tax
effect	-	-	-	0	0	0	0
Other comprehensive income for the year after tax	-	-	66	35	101	1	102
Comprehensive income for the year	-	-	66	700	766	1	767
Issue of warrants	-	2	-	-	2	-	2
Paid dividend	-	-	-	-122	-122	-	-122
Transactions with shareholders	-	2	-	-122	-120	-	-120
Equity, 12/31/2024	37	88	352	3,912	4,388	21	4,409

All shares, 91,470,290 pcs, are A-shares with equal voting rights and equal rights to the results.

Customer Focus	Simplicity	Entre- preneurial business	Cost Efficiency	Courage and Respect	1

Summary Cash flow statement for the Group

		Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEKm	Note	2024	2023	2024	2023
Profit before tax		209	182	824	757
Adjustment for non cash generating items		79	92	302	319
Income tax paid		-54	-27	-125	-98
Cash flow from operating activities before change in		234	248	1,002	978
working capital
Change in inventories		57	35	154	166
Change in trade receivables		76	- 0	143	-141
Change in other receivables		75	28	88	-28
Change in trade payables		-56	-26	-116	-64
Change in other liabilities		-97	-46	-74	70
Change in working capital		54	- 9	195	3
Cash flow from operating activities		288	239	1,197	980
Business acquisitions	4	-25	-	-84	-
Acquisition of intangible non-current assets		- 1	- 2	- 3	- 4
Acquisition of tangible non-current assets		-45	-61	-185	-251
Sale of intangible non-current assets		-	0	-	0
Sale of tangible non-current assets		0	2	7	2
Other changes in non-current assets		0	- 0	0	0
Cash flow from investing activities		-71	-61	-265	-252
New borrowings, credit institutions		-	-	160	-
Amortization of loans		-74	-156	-330	-358
Amortization of lease liabilities		-37	-27	-128	-110
Change in bank overdraft facilities		-16	7	-30	1
Payment of warrants		-	-	2	-
Dividends		-	-	-122	-61
Cash flow from financing activities		-127	-177	-448	-528
Change in cash and cash equivalents for the period		90	1	484	201
Cash and cash equivalents at the beginning of the year		818	436	426	231
Exchange rate difference in cash and cash equivalents		11	-11	9	- 6
Cash and cash equivalents at the end of the period		919	426	919	426

Parent company development

The parent company, AQ Group AB, focuses primarily on managing and developing the Group. As in previous years, the parent company's income 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
SEKm	Note	2024	2023	2024	2023
Net sales		16	15	67	57
Other operating income		8	0	9	2
Total income		24	15	77	59
Other external expenses		-10	- 7	-31	-26
Personnel costs		-10	-11	-40	-35
Depreciation and amortization		- 0	- 0	- 0	- 0
Other operating expenses		- 2	- 1	- 4	- 1
Total expenses		-23	-19	-75	-62
Operating profit		2	- 3	1	- 3
Net financial items	5	232	2	317	121
Earnings after net financial items		234	- 1	318	118
Appropriations		58	50	58	50
Profit before tax		292	49	376	168
Taxes		-14	-10	-12	-13
Profit for the period		277	39	364	155
STATEMENT OF COMPREHENSIVE INCOME
Profit for the period		277	39	364	155
Other comprehensive income for the period after tax		-	-	-	-
Comprehensive income for the period		277	39	364	155

Fourth quarter

Net sales during the fourth quarter amounted to SEK 16 m (15) and mainly pertained to internal services. Net financial items amounted to SEK 232 m (2). The profit for the period amounted to SEK 277 m (39).

Full year

Net sales during the full year amounted to SEK 67 m (57) and mainly pertained to internal services. Net financial items amounted to SEK 317 m (121). The profit for the period amounted to SEK 364 m (155).

			Cost
Customer Focus	Simplicity	Entre- preneurial business	Efficiency	Courage and Respect	V- AR- K- IA -

Summary balance sheet for the Parent company

		Dec 31	Dec 31
SEKm	Note	2024	2023
ASSETS
Tangible assets		0	0
Participations in group companies		1,317	1,227
Receivables from group companies		97	147
Total non-current assets		1,414	1,374
Receivables from group companies		291	409
Current tax asset		-	0
Other receivables		0	0
Prepaid expenses and accrued income		9	4
Cash and cash equivalents		599	192
Total current assets		899	604
TOTAL ASSETS		2,313	1,978
EQUITY AND LIABILITIES
Restricted equity		38	38
Non-restricted equity		1,016	773
TOTAL EQUITY		1,054	810
Untaxed reserves		35	22
Provisions	5	40	-
Interest-bearing liabilities to credit institutions		309	334
Total non-current liabilities		309	334
Interest-bearing liabilities to credit institutions		-	90
Interest-bearing liabilities to group companies		831	689
Accounts payable - trade		7	4
Liabilities to group companies		1	1
Current tax liability		4	1
Other current liabilities		9	9
Accrued expenses and deferred income		23	17
Total current liabilities		876	811
TOTAL LIABILITIES		1,184	1,146
TOTAL EQUITY AND LIABILITIES		2,313	1,978

The non-restricted equity amounts to SEK 1,016 m. The changes since 31 December 2023 consist of the profit for the period of SEK 364 m, paid dividend of SEK -122 m and additional paid in capital related to the subscription of warrants of SEK 2 m.

Notes to the financial statements in summary

Note 1. Accounting principles

The 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.

Note 2. Segment reporting and breakdown of revenue

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. There are no breakdown or analysis of assets and liabilities per segment.

SEGMENT REPORTING

Fourth quarter

For the segment Component, the total net sales for the fourth quarter was SEK 1,960 m (2,019), of which SEK 1,815 m (1,823) is external sales. The decrease of the external sales was SEK 9 m.

For the segment System, the total net sales for the fourth quarter was SEK 337 m (437), of which SEK 311 m (398) is external sales. The decrease of the external sales was SEK 87 m.

Operating profit (EBIT) in the fourth quarter was SEK 163 m (156) for Component, corresponding to an increase of SEK 7 m compared to same period previous year. Operating profit (EBIT) for System was SEK 25 m (23), corresponding to an increase of SEK 2 m compared to same period previous year.

In the column "Unallocated" there are items which have not been allocated to the two segments, parent company and group eliminations.

Oct-Dec 2024, SEKm	Component	System	Unallocated	Group
Net sales, external	1,815	311	-	2,126
Net sales, internal	145	26	-172	-
Total net sales	1,960	337	-172	2,126
Material costs, excl. purchases own segment	-953	-216	150	-1,019
Depreciation	-77	- 6	- 0	-83
Other operating expenses/income	-767	-90	41	-817
Operating profit	163	25	19	206
Net financials items	-	-	2	2
Profit before tax	163	25	21	209
Taxes	-	-	-54	-54
Profit for the period	163	25	-33	154

Oct-Dec 2023, SEKm	Component	System	Unallocated	Group
Net sales, external	1,823	398	-	2,221
Net sales, internal	196	40	-236	-
Total net sales	2,019	437	-236	2,221
Material costs, excl. purchases own segment	-990	-312	173	-1,129
Depreciation	-65	- 7	- 0	-72
Other operating expenses/income	-808	-96	78	-827
Operating profit	156	23	15	193
Net financials items	-	-	-11	-11
Profit before tax	156	23	4	182
Taxes	-	-	-49	-49
Profit for the period	156	23	-44	134

Full year

For the segment Component, the total net sales for the full year was SEK 7,754 m (7,838), of which SEK 7,186 m (7,210) is external sales. The decrease of the external sales was SEK 25 m.

For the segment System, the total net sales for the full year was SEK 1,494 m (1,955), of which SEK 1,368 m (1,758) is external sales. The decrease of the external sales was SEK 389 m.

Operating profit (EBIT) in the full year was SEK 680 m (663) for Component, corresponding to an increase of SEK 17 m compared to same period previous year. Operating profit (EBIT) for System was SEK 157 m (169), corresponding to a decrease of SEK 12 m compared to same period previous year.

In the column "Unallocated" there are items which have not been allocated to the two segments, parent company and group eliminations.

Jan-Dec 2024, SEKm	Component	System	Unallocated	Group
Net sales, external	7,186	1,368	-	8,554
Net sales, internal	568	126	-694	-
Total net sales	7,754	1,494	-694	8,554
Material costs, excl. purchases own segment	-3,849	-962	551	-4,260
Depreciation	-281	-24	- 1	-306
Other operating expenses/income	-2,943	-352	146	-3,148
Operating profit	680	157	3	840
Net financial items	-	-	-15	-15
Profit before tax	680	157	-13	824
Taxes	-	-	-159	-159
Profit for the period	680	157	-172	666
Jan-Dec 2023, SEKm	Component	System	Unallocated	Group
Net sales, external	7,210	1,758	-	8,968
Net sales, internal	628	198	-825	-

Total net sales	7,838	1,955	-825	8,968
Material costs, excl. purchases own segment	-3,951	-1,384	648	-4,687
Depreciation	-261	-26	- 0	-288
Other operating expenses/income	-2,963	-376	137	-3,202
Operating profit	663	169	-41	792
Net financial items	-	-	-35	-35
Profit before tax	663	169	-75	757
Taxes	-	-	-121	-121
Profit for the period	663	169	-197	636

SALES DIVIDED BY SEGMENT AND GEOGRAPHICAL MARKETS

Fourth quarter

The net sales divided among geographical markets in the fourth quarter; Sweden 29% (27), other European countries 55% (57) and other countries 16% (16).

Oct-Dec 2024, SEKm	Component	System	Unallocated	Group
Sweden	463	197	16	676
Other European countries	1,181	98		1,279
Other countries	316	43		ਤੇ ਉਹ
Net sales	1,960	337	16	2,313
Internal sales, eliminations			-188	-188
Total net sales	1,960	337	-172	2,126

Oct-Dec 2023, SEKm	Component	System	Unallocated	Group
Sweden	431	228	15	673
Other European countries	1,257	154		1,411
Other countries	332	56		387
Net sales	2,019	437	15	2,471
Internal sales, eliminations			-251	-251
Total net sales	2,019	437	-236	2,221

Full year

The net sales divided among geographical markets in the full year; Sweden 27% (26), other European countries 56% (57) and other countries 17% (17).

Jan-Dec 2024, SEKm	Component	System	Unallocated	Group
Sweden	1,636	853	67	2,556
Other European countries	4,747	447	-	5,194
Other countries	1,371	195	-	1,565
Net sales	7,754	1,494	67	9,315
Internal sales, eliminations	-	-	-761	-761
Total net sales	7,754	1,494	-694	8,554

Jan-Dec 2023, SEKm	Component	System	Unallocated	Group
Sweden	1,533	980	57	2,571
Other European countries	4,890	707	-	5,597
Other countries	1,414	269	-	1,683
Net sales	7,838	1,955	57	9,851
Internal sales, eliminations	-	-	-883	-883
Total net sales	7,838	1,955	-825	8,968

Geographical markets are based on where AQ Group's subsidiaries have their registered office.

Note 3. Personnel

Number of employees (full time yearly equivalents) in the Group divided per country:

	Jan-Dec	Jan-Dec	Jan-Dec
Country	2024	2023	2022
Bulgaria	1,543	1,584	1,394
Poland	1,341	1,338	1,157
Lithuania	1,220	1,259	998
Sweden	1,017	878	851
Estonia	585	604	574
Hungary	497	484	477
China	435	574	702
Mexico	286	330	335
Finland	205	207	188
USA	183	162	158
Canada	180	194	161
India	173	193	174
Great Britain	111	0	0
Italy	17	17	18
Germany	15	16	20
Brazil	5	6	8
Serbia	0	0	7
Total	7,813	7,846	7,222

Note 4. Business acquisitions

AQ's strategy is to grow in both segments. In May 2024, the JIT Mech group was acquired, in July 2024 Rockford Components Limited and in October 2024 TechROi was acquired. All acquisitions will be included in the Component segment. No divestments have been made. No acquisitions were made in 2023.

Acquisitions during the year

JIT Mech group

On May 2, 2024, AQ Group AB completed the transaction with JIT Mech se Förvaltning AB and Monen Holding AB to acquire 100% of the shares in JIT Mech se Industri AB with the subsidiaries JIT Mech i Robertsfors AB and JIT Mech i Örnsköldsvik AB. The companies have been renamed after the acquisition to AQ JIT Mech AB, AQ JIT Mech Robertsfors AB and AQ JIT Mech Örnsköldsvik AB. Operations are conducted in Robertsfors and Örnsköldsvik. At the time of the acquisition, approximately 75 employees were taken over.

The purpose of the acquisition is to expand AQ's customer base and broaden the offering within sheet metal processing. JIT Mech is a leading supplier of large and complex machined and welded components to customers in the electrification, forestry automation and defense industries.

The purchase price amounted to SEK 40 m in cash on the day of acquisition, plus an earn-out based on the companies' earnings over the next three years (estimated at SEK 25 m). Acquisition analysis has been prepared which shows consolidated surplus values of SEK 25 m divided into customer relations SEK 17 m, technologies SEK 3 m, goodwill SEK 9 m and a deferred tax liability of SEK 4 m. The depreciation rate is estimated at 7 years for customer relationships and 5 years for technologies. The goodwill value of SEK 9 m includes synergy effects in the form of more efficient production processes and the employees' technical knowledge.

External acquisition-related expenses in connection with the acquisition amounted to SEK 0.4 m, which are included in the Group's other external costs. Operating receivables are stated at gross value, as

there are no accounts receivable provisions, which corresponds to fair value. The acquisition was financed partly with own funds and partly with a new bank loan.

During the period May to December, the acquired business contributed SEK 132 m to the Group's revenues and SEK 5 m to the Group's profit after tax, taking into account consolidated acquisition depreciation. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation is SEK 6 m.

If the acquisition had occurred as of January 1, 2024, ie. including January to April, the company management estimates that the Group's revenues would have been SEK 84 m higher and the profit after tax for the period with regard to consolidated acquisition depreciation would have been SEK 10 m higher for the period January-December 2024. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation would have been SEK 10 m higher.

Rockford

On July 10, 2024, AQ Group AB acquired and took over Rockford Components Holdings Limited, which manufactures and delivers wiring and electromechanical systems to customers in the defense, aerospace, and general industries. The company had a turnover in 2023 of SEK 95 m, an operating margin below the AQ average and has 112 employees. Operations are conducted in Rendlesham, Worksop and Salisbury in England. The purchase price consists of SEK 18 m in cash at closing and an earn-out based on the company's results for the next 12 months, up to a maximum of SEK 15 m. The company has after the acquisition been renamed to AQ Wiring Systems Rockford Ltd.

An acquisition analysis has been prepared which shows consolidated surplus values of SEK 18 m divided into customer relations SEK 9 m, rent rebate SEK 6 m, goodwill SEK 7 m and a deferred tax liability of SEK 4 m. The depreciation rate is estimated at 10 years for customer relationships and 3 years for the rent rebate. The goodwill value of SEK 7 m includes synergy effects in the form of more efficient production processes and the employees' technical knowledge.

During the period July to December, the acquired business contributed SEK 87 m to the Group's revenues and SEK 7 m to the Group's profit after tax, taking into account consolidated acquisition depreciation. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation is SEK 8 m.

If the acquisition had occurred as of January 1, 2024, ie. including January to July 10, the company management estimates that the Group's revenues would have been SEK 52 m higher and the profit after tax for the period with regard to consolidated acquisition depreciation would have been SEK 5 m lower for the period January-December 2024. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation would have been SEK 5 m lower.

TechRoi

On October 31, 2024 the subsidiary of AQ Group, AQ Engineering AB acquired and took over 100% of the shares in TechROi Engineering AB and TechROi Scandinavia AB, who develop and construct components and systems to demanding customers within vehicle, aerospace and gas turbine industry. The companies had a turnover of SEK 55 m in 2023, an operating margin below AQ average and have 38 employees. Operations are conducted in Trollhättan and Gothenburg. The purchase price consists of SEK 1 in cash at closing and a debt takeover of approximately SEK 30 m.

An acquisition analysis has been prepared which shows consolidated surplus values of SEK 30 m divided into customer relations SEK 4 m, goodwill SEK 26 m and a deferred tax liability of SEK 1 m. The depreciation rate is estimated at 7 years for customer relationships. The goodwill value of SEK 26 m includes synergy effects in the form of more efficient production processes and the employees' technical knowledge. The acquisition analysis is preliminary due to the fact that a short time has elapsed since the acquisition.

During the period November to December, the acquired business contributed SEK 7 m to the Group's revenues and SEK -2 m to the Group's profit after tax, taking into account consolidated acquisition depreciation. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation is SEK -2 m.

If the acquisition had occurred as of January 1, 2024, ie. including January to October 31, the company management estimates that the Group's revenues would have been SEK 39 m higher and the profit after tax for the period with regard to consolidated acquisition depreciation would have been SEK 6 m lower for the period January-December 2024. The contribution to the Group's profit after tax without regard to consolidated acquisition depreciation would have been SEK 5 m lower.

Acquired net assets at the time of acquisition:

SEK m	JIT Mech	Rockford	TechROi	Totalt
Intangible assets	20	9	4	32
Tangible assets incl.right-of-use assets	36	9	7	52
Non-current receivables	-	5	1	6
Inventories	47	39	-	85
Other current assets	31	23	41	94
Cash and cash equivalents in the acquired business	0	2	0	2
Total assets	133	86	53	272
Interest-bearing non-current liabilities incl. leasing liabilities	-15	-33	-5	-53
Interest-bearing current liabilities incl. leasing liabilities	-12	-	-6	-17
Deferred tax	-42	-4	-1	-46
Other current liabilities	0	-22	-38	-60
Total provisions and liabilities	-78	-59	-49	-186
Total Net Assets	56	27	3	86
Cash paid	40	19	27	86
Debt purchase price	25	15	3	42
Total purchase price	65	34	30	128
Goodwill	9	7	26	43
Cash flow effect
Cash paid	-40	-19	-27	-86
Cash and cash equivalents in the acquired business	0	2	0	2
Total cash flow effect	-40	-17	-27	-84

Note 5. Financial instruments

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.

For financial instruments that are listed, fair value is determined on the basis of the instrument's quoted price on an active market, level 1. The Group had no items in this category either as of the balance sheet date this year or the previous year.

The Group exceptionally uses derivatives, forward exchange agreement, to reduce currency risks. As of December 31, 2024, there are no outstanding derivatives. The same applies to the corresponding period of the previous year.

Additional purchase prices belong to valuation level 3 and have been valued at the amount they are estimated to be paid out, based on terms in the acquisition agreements regarding future cash flows.

For the Group's other financial assets and liabilities, fair value is estimated to correspond in all material respects to the carrying amount due to the short maturity, which is why fair value is not reported separately for these.

SEKm	JIT Mech	Rockford	Total
Opening balance, 2024	-	-	-
Acquisitions during the year	25	15	40
Adjustments through income statement	-	-	-
Translation differences	-	-0	-0
Closing balance, 2024	25	15	40

Contingent additional purchase prices in group

Note 6 Significant events after the end of the period

On January 31, 2025, following regulatory approval, AQ Group AB completed the acquisition of the shares in mdexx inductive electronics GmbH, mdexx Magnetronic Devices GmbH, mdexx Magnetronic Devices s.r.o. and Michael Riedel, Transformatorenbau GmbH. mdexx companies have manufacturing facilities in the Czech Republic and sales and design engineers in Germany, the Czech Republic and France. The turnover in 2023 amounted to EUR 47 million and the EBITDA margin amounted to 4%. The Michael Riedel company is located in Ilshofen, Germany. The turnover in 2023 amounted to EUR 17 million and the EBITDA margin was 8%. The preliminary purchase price, EUR 13 million, was paid in cash at closing. There is no conditional earn-out.

Key figures

SEKm unless otherwise stated	Q1	Q2	2024 Q3		Q4 Full year	Q1	Q2	2023 Q3		Q4 Full year
Operating margin, (EBIT %)
Operating profit	223	222	188	206	840	194	203	201	193	792
Net sales	2,225	2,254	1,949	2,126	8,554	2,253	2,345	2,149	2,221	8,968
Operating margin	10.0	9.8	9.6	9.7	9.8	8.6	8.7	9.3	8.7	8.8
EBITDA
Profit before tax	223	222	188	206	840	194	203	201	193	792
Depreciations/amortisations	-73	-75	-75	-83	-306	-70	-72	-74	-72	-288
EBITDA	296	297	263	290	1,146	264	276	275	265	1,079
Profit margin before tax, (EBT %)
Profit before tax	221	218	177	209	824	184	195	195	182	757
Net sales	2,225	2,254	1,949	2,126	8,554	2,253	2,345	2,149	2,221	8,968
Profit margin before tax, %	9.9	9.7	9.1	9.8	9.6	8.2	8.3	9.1	8.2	8.4
Liquid ratio, %
Trade receivables	2,145	2,126	1,877	1,844	1,844	1,966	2,098	1,929	1,879	1,879
Other current receivables	210	227	236	213	213	248	270	277	231	231
Cash and cash equivalents	488	503	818	919	919	352	289	436	426	426
Current liabilities	1,743	1,645	1,526	1,458	1,458	1,761	1,751	1,636	1,565	1,565
Liquid ratio, %	163	174	192	204	204	146	152	161	162	162
Debt/equity ratio, %
Total equity	4,082	4,083	4,178	4,409	4,409	3,391	3,671	3,734	3,762	3,762
Total assets	6,367	6,385	6,468	6,567	6,567	6,125	6,300	6,160	5,960	5,960
Debt/equity ratio, %	64	64	65	67	67	55	58	61	63	63
Return on total assets, %
Profit before tax, rolling 12 months	794	816	798	824	824	550	637	711	757	757
Financial expenses, rolling 12 months	-51	-36	-39	-41	-41	-52	-56	-39	-50	-50
Total equity and liabilities, opening balance for 12 months	6,125	6,300	6,160	5,960	5,960	4,920	5,165	5,392	5,704	5,704
Total equity and liabilities, closing balance	6,367	6,385	6,468	6,567	6,567	6,125	6,300	6,160	5,960	5,960
Total equity and liabilities, average Return on total assets, %	6,246 13.5	6,342 13.4	6,314 13.3	6,263 13.8	6,263 13.8	5,522 10.9	5,732 12.1	5,776 13.0	5,832 13.8	5,832 13.8
Return on equity after tax, %
Profit for the period after tax, rolling 12 months	662	671	645	666	666	479	564	636	636	636
Total equity, opening for 12 months	3,391	3,671	3,734	3,762	3,762	2,756	2,865	3,010	3,180	3,180
Total equity, closing	4,082	4,083	4,178	4,409	4,409	3,391	3,671	3,734	3,762	3,762
Total equity, average	3,737	3,877	3,956	4,085	4,085	3,074	3,268	3,372	3,471	3,471
Return on equity after tax, %	17.7	17.3	16.3	16.3	16.3	15.6	17.3	18.9	18.3	18.3
Net cash / Net debt
Cash and cash equivalents	488	503	818	919	919	352	289	436	426	426
Non-current interest bearing liabilities	419	512	591	520	520	860	765	679	513	513
Current interest bearing liabilities	195	119	109	115	115	181	175	166	204	204
Total interest bearing liabilities	614	631	701	635	635	1,041	940	845	717	717
Net cash / Net debt	-126	-128	117	284	284	-689	-651	-409	-291	-291
Growth, %
Organic growth
Net sales	2,225	2,254	1,949	2,126	8,554	2,253	2,345	2,149	2,221	8,968
- Effect of changes in exchange rates	25	12	-47	- 8	-19	94	139	144	76	454
- Net sales for last year	2,253	2,345	2,149	2,221	8,968	1,646	1,721	1,711	1,974	7,053
- Net sales for acquired companies	-	39	76	111	226	-	-	-	-	-
= Organic growth	-53	-142	-229	-198	-621	512	485	294	170	1,461
Organic growth divided by last year net sales, %	-2.3	-6.1	-10.6	-8.9	-6.9	31.1	28.2	17.2	8.6	20.7
Growth through acquisitions
Net sales for acquired companies divided by last year
net sales, %	0.0	1.7	3.5	5.0	2.5	0.0	0.0	0.0	0.0	0.0

Definitions

Alternative key figures that are not defined according to IFRS

The interim report includes certain key figures which are not defined according to IFRS. AQ's view is that the presented key figures are essential for investors, securities analysts, and other stakeholders. Furthermore, the operating margin, cash liquidity and solidity are important measures in terms of AQ's monitoring of results, position, and liquidity. AQ's key figures not calculated in accordance with IFRS are not necessarily comparable to similar measures presented by other companies and have certain limitations as an analytical tool. They should therefore not be considered in isolation from, or as a substitute for, AQ's financial information prepared in accordance with IFRS.

Operating margin, EBIT %

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.

Profit margin before tax, EBT%

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.

Liquid ratio, %

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.

Debt/Equity ratio, %

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.

Return on total assets, %

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.)

Return on equity after tax, %

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.

Operating profit (EBIT), SEKm

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.

Profit before tax / Profit after financial items (EBT), SEKm

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.

EBITDA

Calculated as the period's net operating profit with the addition of depreciations and amortization of tangible and intangible assets. The measure is used in the calculation of covenants towards the bank. EBITDA stands for "earnings before interest, taxes, depreciation and amortization".

Net cash/Net debt, SEKm

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.

Growth, %

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 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, SEK

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.

Earnings per share, before/after dilution, SEK

Income for the period attributable to equity holders of the parent company divided by the average number of shares before or after dilution. When the average share price during the period is higher than the established subscription price for subscribed warrants, dilution effect is calculated for the earnings per share.

AQ in brief

AQ is a global manufacturer of components and systems 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 8,000 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, Brazil, Great Britain and Czech Republic. In 2024 AQ had net sales of SEK 9 billion, and the Group has since its start in 1994 shown profit every quarter.