Saab Ab Class B · OMXSTO:SAAB_B
Saab Ab Class B — Q2 2021 Earnings Presentation
23 slides from Saab Ab Class B's earnings presentation, Jul 21, 2021
Slide 1: Saab Q2 2021 Presentation
Saab Q2 2021 Presentation 21 July 2021 Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO 1 1
Slide 2: Strong sales growth and positive cash flow Q2
Strong sales growth and positive cash flow Q2 Sales Growth 10,131 MSEK 15% (8,836 MSEK) Orders Growth EBITDA Margin 9,875 MSEK 7% Operational cash flow (9,247 MSEK) 1,196 MSEK 11.8% 3,152 MSEK (1,004 MSEK) (11.4%) (1,817 MSEK) EBIT Margin 715 MSEK 7.1% (652 MSEK) (7.4%)
Slide 3: Market highlights
Market highlights Favourable trend in the broader defence market • Strong demand in Europe as well as in the US • European Defence Fund launched • Several tender offers and campaigns ongoing • Continued weak civil aviation market Continued good order intake in Q2 • Total order intake 9.9 BSEK, an in
Slide 4: Business area summary
Business area summary Aeronautics Dynamics • Order intake driven by Gripen C/D development contract • High market interest in most product areas • Best and Final offer submitted for Gripen E/F to Finland • Important orders secured in Training & Simulation • First trainer aircraft T-7A Aft delivered
Slide 5: Business area summary
Business area summary Surveillance Kockums • Orders on sensors to Germany and the U.S. • Market activities directed to both Swedish and export • Sales increase from execution in large projects opportunities • Increased amortization costs related to GlobalEye • Focus on improving productivity and ove
Slide 6: Business area summary
Business area summary Support and Services Industrial Products and Services • Contracts for Helicopter 15 in Sweden and aircraft • Combitech good order intake and improved profitability maintenance in Bulgaria • Activity in civil aviation market remains weak • Increased amortization costs related to
Slide 7: Training & Simulation
7 Training & Simulation The uniqueness • High realism with Ballistic simulation • Scalability through Modular design T&S in nutshell • Standardization and interoperable world-wide • Deployable in several combat setups • Leads IUC* - interoperability and standards within 16 countries Our offering E
Slide 8: Training & Simulation
Training & Simulation The market potential • Large growing market in Europe • Training will be more important in future defence operations • Increased multinational exercises How we are driving • Growing interest in analytics growth in T&S • Follow army forces around the world • T&S has a large inst
Slide 9: Way forward
Way forward • Implementation of new organisational structure • Ensuring productivity and efficiency improvements • Strengthening our position in key markets and accelerating international growth • Focus on executing on our projects, Gripen/T-7/GlobalEye/A26 • Increased focus on Sustainability 9
Slide 10: Saab's Sustainability Commitment
Saab’s Sustainability Commitment Commitment to society at the core of Saab’s business Defence and security capability since its founding, supporting nations to keep people Industrial Cooperation and society safe Product safety Saab focuses on the UN’s Sustainability Development Research & Developmen
Slide 11: Driving sustainable solutions with Sabertooth
Driving sustainable solutions with Sabertooth • Sabertooth - autonomous under water multi-role vehicle • Renewable energy - converted from waves powering the Sabertooth = zero emissions • Eliminates support vessels, and enables customers to reduce dependency on grid and logistics • CO2e reductions o
Slide 12: Financial Summary
Financial Summary Christian Luiga, CFO & Deputy CEO 12
Slide 13: Order backlog supports growth
Order backlog supports growth Order backlog of 96.7 BSEK (+7% vs Q2 2020) • Q2 order intake 9.9 BSEK, up 7% 30 28.4 • Large and medium sized-orders, 25.7 25 accounting to ~60% of total 19.5 20 17.3 17.4 18.6 15.9 • Small orders at 3.8 BSEK, 3% growth BSEK 15.6 15 14.1 14.7 • Strong Order backlog 10
Slide 14: Financial summary Q2 2021
Financial summary Q2 2021 MSEK Q2 2021 Q2 2020 Change P&L comments Sales 10,131 8,836 15% • Organic sales increase of 15% Gross income 2,113 1,831 15% • Positive sales contribution in 5 of 6 business areas Gross margin, % 20.9 20.7 • Gross margin in line with last year. Positive impact from IPS part
Slide 15: Financial summary H1 2021
Financial summary H1 2021 MSEK H1 2021 H1 2020 Change P&L comments Sales 19,219 16,876 15% • Organic sales growth mainly driven by Aeronautics, Dynamics and Surveillance Gross income 4,047 3,711 9% • Gross income improvement from higher Gross margin, % 21.1 22.0 sales volumes EBITDA 2,262 1,918 18%
Slide 16: Sales per business area
Sales per business area Sales growth % Business area comments 3 000 +52% • High project activities and increased deliveries drives sales growth +8% +5% 2 000 • Aeronautics - high activity level in the SALES MSEK +8% Gripen E/F to Sweden and Brazil -9% • Strong growth in Dynamics driven by +19% 1 000
Slide 17: Adj. Sales and EBITDA margin trend
Adj. Sales and EBITDA margin trend EBITDA comments 40 000 14% 35 000 12% • R12M Sales CAGR of 6% since 2017 30 000 10% • R12M sales up 3% compared to 25 000 previous quarter 8% SALES MSEK 20 000 • EBITDA R12M trend driven by 6% 15 000 Dynamics, Surveillance and IPS 10 000 4% compared to previous qua
Slide 18: EBIT and margins per business area
EBIT and margins per business area Business area comments EBIT margin % 400 14.0% • Decline in Aeronautics from project 350 estimate adjustments related to Covid-19 300 in Q3 2020 and T-7A ramp-up 13.9% 250 • Improvement in Dynamics as a result of EBIT MSEK 200 8.4% 7.6% 6.7% 7.7% 12.1% strong volum
Slide 19: Cash flow improving
Cash flow improving Operational cash flow H1 2021 Operational cash flow full year 2021 5,0 4,5 4,5 1.8 bn -1.3bn 4,0 3,0 3,5 2.8 Positive 3,0 3.0 bn 1,5 2.5 bn BSEK BSEK 2,5 1.4 2,0 0,0 1,5 -1.3 1,0 -1,5 0,5 -2.4 0,0 -3,0 Cash flow Change in working Investments Operational Cash 2017 2018 2019 2020 F
Slide 20: Net debt Q2 2021
Net debt Q2 2021 Pension liabilities Leasing liabilities (IFRS16) Other cash less liabilities Net debt Net debt/EBITDA rolling 12 months Reported Adjusted* -4.5bn + -2.5bn + 5.5bn = -1.5bn 0.47x 0.32x • Debt with maturity less than 12 months equals 1.3 BSEK • Unutilized Revolving credit facilities 1
Slide 21: Outlook 2021
Outlook 2021* ORGANIC GROWTH Organic sales growth for the full year to be around 10 per cent Previously: Organic sales growth in line with long term target (5%) EBIT MARGIN EBIT-margin in line with adjusted EBIT-margin for 2020 (7.4%)** OPERATIONAL CASH FLOW Positive *The uncertainty surrounding Cov
Slide 22: Important information
Important information This presentation may contain forward-looking statements which reflect Saab AB’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indic
Slide 23: Q&A
Q&A 23