Slide 1: Full steam ahead to grow our business
Saab interim report January - March 2024 Full steam ahead to grow our business Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO Merton Kaplan, Head of IR 1
Slide 2: Important information
Important This presentation may contain forward-looking statements which reflect Saab AB’s current view on future events and information financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indic
Slide 3: Highlights Q1 2024
Highlights Q1 2024 ➜ Strong start to the year and ➜ Saab capacity ramp-up high market interest for Saab efforts progressing well ➜ EU initiatives to strengthen ➜ Delivery of first 340 AEW European defence industry aircraft to Poland in Q1 and and support for Ukraine 4th GlobalEye to UAE in April ➜ S
Slide 4: Key figures Q1 2024
Key figures Q1 2024 Growth in Order intake, BSEK Sales growth Sales, BSEK medium-sized in all business 18.5 14.2 and small areas and orders Combitech 9% increase y-o-y 24% organic growth EBIT margin EBIT, BSEK Negative due Operational cash flow, BSEK improvement to investments, 1.2 -2.0 to 8.4% (8.1
Slide 5: Orders Q1 2024
Orders Q1 2024 Total orders 18.5 Key orders ➜ Short-range air defence system RBS 70 NG to SEK billion (17.0) Canada International ➜ GlobalEye support contract to UAE orders 13.8 SEK billion ➜ Gripen C fighters for Hungary (13.9) ➜ Arexis sensor suite to Airbus for German Eurofighters Order backlog 1
Slide 6: Business Area Aeronautics
Business Area Aeronautics Sales, SEK million 6,000 q/q +32% ➜ Strong sales growth driven by Gripen 5,000 Hungary, Sweden and Brazil programmes 4,047 4,000 ➜ Improved profitability driven by the higher 3,070 3,000 sales volumes, partly offset by T-7 under- absorption 2,000 ➜ Saab tasked for future fi
Slide 7: Business Area Dynamics
Business Area Dynamics Sales, SEK million 5,000 q/q +5% ➜ Sales growth and margin impacted by lower 4,000 deliveries in Ground Combat, higher shipping volumes expected from Q2 3,000 2,622 2,490 ➜ Strong development in Training & Simulation 2,000 ➜ Construction start of Saab’s manufacturing site in I
Slide 8: Business Area Surveillance
Business Area Surveillance Sales, SEK million 8,000 q/q +28% ➜ Good order growth of 22% following strong Q1 last year - market interest in all areas 6,000 4,989 ➜ Sales growth driven by high pace in 3,894 4,000 programme execution ➜ Underlying profitability improvement driven 2,000 by scale effects
Slide 9: Business Area Kockums
Business Area Kockums Sales, SEK million 3,000 q/q +34% ➜ Strong growth driven by high project activity 1,966 ➜ Improved margins as a result of high 2,000 volumes and share of international projects 1,468 ➜ Entering design phase of the new future 1,000 Luleå-class surface ships for Sweden ➜ Synergy
Slide 10: Business Area Combitech
Business Area Combitech Sales, SEK million 2,000 q/q +9% ➜ Benefitting from growing demand in defence and security segments 1,500 ➜ Extended framework agreement with the 966 1,049 1,000 Swedish Defence Materiel Administration for communications equipment support 500 ➜ Contracts with Kongsberg and Sw
Slide 11: Launch of 'Skapa' initiative
Launch of ’Skapa’ initiative ➜ Skapa is a new initiative by Saab in the U.S. to accelerate cutting-edge technologies in cooperation with customers and partners on new projects ➜ Focus on new technologies to deliver capabilities across Saab’s portfolio and domains within: ▪ Naval Autonomy ▪ Digital a
Slide 12: Sustainability Q1 highlights
Sustainability Q1 highlights ➜ Focus on implementation of the updated sustainability strategy towards the new targets on long-, medium- and short-term ➜ For the first time, Saab secured a place on the CDP’s ”A list” for 2023, proving strong governance and long-term performance ➜ Increase in share of
Slide 13: Upgraded sales growth outlook
Upgraded sales growth outlook Based on improved visibility on deliveries and capacity increases during the year, we upgrade our organic sales growth outlook for 2024. Previous: New: Organic sales Organic sales growth between growth between 12-16% 15-20% 13
Slide 14: Priorities going forward
Priorities going forward ➜ EU and NATO initiatives and future collaborations ➜ Customer commitments and meeting the strong demand ➜ Ongoing capacity and production ramp-up ➜ Workforce onboarding and upskilling ➜ R&D investments and future technologies ➜ Mitigating supply chain risks 14
Slide 15: Financial Summary
Financial Summary Christian Luiga, CFO and Deputy CEO 15
Slide 16: Strong order momentum
Strong order momentum Q1 2024 Order backlog duration, SEK billion 60 +29% 75% Order bookings from international markets +24% (81% in Q1 2023) 49.9 50 +10% 39.9 38.8 40 32.1 32.6 ➜ Solid order intake resulting in 29.6 Q1 book-to-bill of 1.5x (R12M) 30 +12% +12% ➜ Book-to-bill >1x for 6 consecutive qu
Slide 17: Financial summary Q1 2024
Financial summary Q1 2024 Saab Group, SEK million unless otherwise stated Comments Q1 2024 Q1 2023 Change FY 2023 • Reported sales growth of 23.5%, of which 24.0% organic, -0.3% currency and -0.2% Sales 14,185 11,485 24% 51,609 M&A Gross Income 3,085 2,502 23% 11,260 • Increased gross income driven
Slide 18: Sales and EBIT development
Sales and EBIT development Group Sales, SEK million Group EBIT and EBITDA margin, %R12M 20,000 54.3 bn 60,000 15% 13.0% 12.7% 12.5% 50,000 15,000 40,000 10% 8.4% 8.0% 7.5% 10,000 30,000 20,000 5% 5,000 10,000 0 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 2023
Slide 19: Key figures per business area
Key figures per business area SEK million unless otherwise stated Q1 Q1 Q1 Q1 Comments Aeronautics 2024 2023 Change Dynamics 2024 2023 Change • Strong sales contribution from Aeronautics, Surveillance and Kockums in the quarter Sales 4,047 3,070 32% Sales 2,622 2,490 5% • Dynamics’ margins impacted
Slide 20: Cash flow and investments
Cash flow and investments Group Cash Flow YTD, SEK billion Investments, SEK billion 1.2 Q1 2024 1.0 0.8 0.2 10.9 Return on equity, % 0.6 0.2 (9.5% in Q1 2023) 1.0 0.4 Q1 2024 12.6 0.5 0.2 0.0 Return on capital Jan-Mar 2023 Jan-Mar 2024 employed, % Tangible assets Intangible assets (9.6% in Q1 2023)
Slide 21: Solid balance sheet
Solid balance sheet Liquidity/debt position, SEK billion 6 -1x Q1 2024 Q1 2024 5 4 -0.8x -0.6x -0.12x Net debt/EBITDA* 39.7% Equity/Asset ratio 3 -0.4x Q1 2024 Q1 2024 2 1 0.8 bn -0.2x 10.8 Cash and short term 6.0 Unutilised Revolving Credit 0x investments, SEK bn Facilities, SEK bn 0 -1 0.2x -2 0.4
Slide 22: Outlook and targets
Outlook and targets Organic sales growth Operating income Cash flow Outlook New: Operating income growth Positive operational Organic sales growth higher than organic cash flow 2024 between 15-20% sales growth Previous: Organic sales growth between 12-16% Medium term ~15% CAGR* Operating income grow
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