Saab Ab Class B · OMXSTO:SAAB_B
Saab Ab Class B — Q4 2021 Earnings Presentation
23 slides from Saab Ab Class B's earnings presentation, Feb 11, 2022
Slide 1: Saab Q4 2021 Presentation
Saab Q4 2021 Presentation 11 February 2022 Micael Johansson, President and CEO Christian 1Luiga, CFO and Deputy CEO 1
Slide 2: FY 2021 Highlights
FY 2021 Highlights Orders Growth • Saab is growing - a strong year with growth in order intake, order backlog and sales 43,569 MSEK 3% (42,328 MSEK) • Delivered on our outlook on all metrics; sales Sales Growth growth, EBIT margin and cash flow 39,154 MSEK 11% • Gripen E entering serial delivery pha
Slide 3: Q4 Highlights
Q4 Highlights Orders Growth 12,218 MSEK -33% (18,106 MSEK) Sales Growth 11,943 MSEK -4% (12,491 MSEK) EBITDA Margin 1,587 MSEK 13.3% (1,229 MSEK) (9.8%) EBIT Margin 1,076 MSEK 9.0% (766 MSEK) (6.1%) OCF 1,522 MSEK (2,901 MSEK) 3
Slide 4: Market status and orders
Market status and orders Opt 1 High activity in the defence and security market • Rising geopolitical tensions and security threats impact short and long-term demand • Defence budgets to increase in several countries, e.g. Sweden, U.K. and Australia • Increased demand in capabilities such as Defence
Slide 5: Business area summary
Business area summary Aeronautics Dynamics • Selected to final round in Canada campaign • Continued favourable market position • Gripen E programme entering delivery phase to • Several Carl-Gustaf M4 orders in Q4 both Brazil and Sweden • Next phase Heavyweight Torpedo 62 to Sweden and • Continued lo
Slide 6: Business area summary
Business area summary Surveillance Kockums • Strong order backlog • Order intake driven by several small and medium orders • Progress in Traffic Management with Digital Towers to • High activity in the Submarine area (A26) Belgium and U.S. certificate on Saab air traffic system • Improved margins fr
Slide 7: Giraffe 1X – a software driven multi-mission radar
Giraffe 1X – a software driven multi-mission radar for both civil and military purposes 7
Slide 8: Sustainability strategy
Sustainability strategy • The framework illustrates Saab’s sustainability strategy and priorities • From 2022 this will be Saab’s reporting framework for Sustainability Information in quarterly and annual reports • During 2022 Saab will update and develop the specific sustainability goals and target
Slide 9: Focus going forward
Focus going forward • Accelerate innovation and investing in future Six lines of action capabilities, including autonomous systems, distributed sensors and defence cloud • Growth within core areas and through our multi- domestic strategy • Delivery on our key programmes • Ongoing productivity and ef
Slide 10: Outlook 2022
Outlook 2022 ORGANIC SALES GROWTH EBIT CASH FLOW Operational cash flow OUTLOOK Organic sales growth EBIT improvement between expected to be positive for 2022 to be around 5% 8-12% compared to 2021 2022, however at a lower level than in 2021 ORGANIC SALES GROWTH EBIT MARGIN EQUITY/ASSETS RATIO Organi
Slide 11: Financial Summary
Financial Summary Christian Luiga, CFO and Deputy CEO
Slide 12: Order backlog supports continued growth
Order backlog supports continued growth Order backlog of 105 BSEK (+5% vs Q4 2020) • Full year order intake of 43.6 BSEK, increase of 3% 40 35 34.0 • Growth of small and medium-sized 31.4 30 24.9 orders in Q4 driven by Dynamics, 25 21.9 Surveillance and Kockums BSEK 20 17.3 16.7 14.4 15.2 14.6 14.6
Slide 13: Financial summary FY 2021
Financial summary FY 2021 MSEK FY Change P&L comments 2021 2020 Rep Adj* • Strong sales growth with high project Sales 39,154 35,431 11% 7% activity and deliveries Gross income 8,205 5,676 45% 8% • Higher sales volume drives increased gross income Gross margin, % 21.0 16.0 • Gross margin improved ev
Slide 14: Sales per business area
Sales per business area Sales growth % Business area comments -11% *Adjusted sales growth % 5 000 -14%* • Aeronautics sales driven by high activity 4 000 +2% level in the Gripen programmes, decline in civil aviation continues to have negative SALES MSEK -5% impact 3 000 • More even sales over the ye
Slide 15: Adj. Sales and EBITDA margin trend
Adj. Sales and EBITDA margin trend EBITDA comments 40 000 14% 35 000 12% • Continuous growth in line with our long 30 000 10% term target 25 000 • Sales CAGR of 5.4% since 2017 SALES MSEK 8% 20 000 6% • EBITDA margin improved driven by sales 15 000 growth and better gross margin 4% 10 000 • The down
Slide 16: EBIT and margins per business area
EBIT and margins per business area EBIT margin % Business area comments *Adjusted EBIT margin % 500 10.4%* • Increased margins in Aeronautics but still 15.3%* 450 negative impact from T-7A and civil aviation 400 13.3% 9.8% 350 • Slight decline in Dynamics due to a more 300 even earnings profile in 2
Slide 17: Business summary - Combitech
Business summary - Combitech Comments • Favourable market demand not least in the civil segment • Contracts won in cyber security and digital transformation in Q4 • Ongoing projects with Swedish customers within mining, smart manufacturing and connectivity MSEK Q4 2021 Q4 2020 FY 2021 FY 2020 • Q4 2
Slide 18: Cash flow improving from operations
Cash flow improving from operations Operational cash flow 4,5 3,3 3,0 2,8 1,5 1,4 BSEK 0,0 -1,5 -1,3 -3,0 -2,4 2017 2018 2019 2020 2021 • Generating strong operational cash flow of 3.3 BSEK FY 2021 “Looking ahead, we estimate operational • Driven by higher EBITDA and large milestone payments cash fl
Slide 19: Net debt
Net debt BSEK Q4 2021 10 1,8 Pension liabilities 4.8 9 1,6 8 1,4 Leasing liabilities (IFRS16) 2.5 7 1,2 - Other cash less liabilities -5.2 BSEK 6 1,0 5 4 0,8 = Net debt 2.1 3 0,6 0,4 Net debt/EBITDA 0.44x 2 1 0,2 0 0,0 2017 2018* 2019 2020* 2021 Net Equity/Asset Net debt Net debt/EBITDA Debt/EBITDA:
Slide 20: Outlook 2022
Outlook 2022 ORGANIC SALES GROWTH EBIT CASH FLOW Operational cash flow OUTLOOK Organic sales growth EBIT improvement between expected to be positive for 2022 to be around 5% 8-12% compared to 2021 2022, however at a lower level than in 2021 ORGANIC SALES GROWTH EBIT MARGIN EQUITY/ASSETS RATIO Organi
Slide 21: 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 22: Q&A
Q&A
Slide 23: The Giraffe 1X Radar system
The Giraffe 1X Radar system Unique capability Operational Growth potential • Lightweight, mobile and • Fully operational in several • Detects and counters simultaneous multi-mission countries, in use and unmanned aerial systems for Air and Sea surveillance protects societies every day and drones • D