Slide 1: Strong sales growth and cash flow
Saab interim report January - September 2024 Strong sales growth and cash flow Micael Johansson, President and CEO Anna Wijkander, CFO Merton Kaplan, Head of IR
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 Q3 2024
Highlights Q3 2024 ➜ Long-term demand drives strong interest for Saab’s broad portfolio ➜ Substantial order intake in the quarter ➜ Continued focus on project deliveries and customer commitments ➜ Significant efforts to expand capacity and increase industrialisation and efficiency ➜ Strong cash flow
Slide 4: Key figures Q3 2024
Key figures Q3 2024 Strong market Order intake, BSEK Sales growth Sales, BSEK demand drive in all business 21.2 13.5 growth in areas and Dynamics and Combitech Surveillance 41% increase y-o-y 17% organic growth EBIT margin EBIT, BSEK Improved cash Operational cash flow, BSEK improvement flow driven
Slide 5: Order intake Q3 2024
Order intake Q3 2024 Q3 2024 Jan-Sep 2024 Total orders 21.2 79.2 Key orders SEK billion SEK billion (15.0) (46.3) ➜ Large defence equipment order from Western country ➜ Saab’s MSHORAD air defence solution to Lithuania International orders 16.9 63.1 SEK billion SEK billion ➜ Giraffe 1X radar for GBAD
Slide 6: Aeronautics
Business Area Aeronautics Sales, SEK million 6,000 q/q +6% ➜ Gripen E aircraft delivered to Swedish 5,000 and Brazilian customer during the period 4,000 3,322 ➜ Increased volumes drive EBIT and margin 3,135 3,000 improvement y-o-y, partly offset by T-7 production under-absorption 2,000 ➜ Royal Thai
Slide 7: Dynamics
Business Area Dynamics Sales, SEK million 5,000 q/q +25% ➜ Strong order intake resulting in record-high 4,000 order backlog 3,056 ➜ Sales growth reflecting high activity and 3,000 2,453 deliveries in several business units 2,000 ➜ Lower margins in Q3 due to phasing of deliveries in Ground Combat 1,0
Slide 8: Surveillance
Business Area Surveillance Sales, SEK million 8,000 q/q +23% ➜ Continued order growth reflecting the strong market demand 6,000 5,115 ➜ Sales growth driven by all business units 4,149 4,000 ➜ Improved margins as a result of higher volumes and successful project completions 2,000 ➜ 5th GlobalEye airc
Slide 9: Kockums
Business Area Kockums Sales, SEK million 3,000 q/q +14% ➜ Strong interest for Combat Boat 90 from several customers 2,000 ➜ Sales growth driven by high activity level in 1,386 1,584 key programmes 1,000 ➜ EBIT and margins impacted by negative contribution from Underwater Systems ➜ Successful partici
Slide 10: Combitech
Business Area Combitech Sales, SEK million 1,500 q/q +7% ➜ Partnership with FMV for digitalising the ground forces of Swedish Armed Forces 1,000 877 ➜ High customer activity and continued 816 increase in number of employees 500 ➜ Profitability improvement driven by higher utilisation and favourable
Slide 11: Strengthening position in the U.S.
Strengthening position in the U.S. ➜ Expansion of munitions production capacity with new facility in Grayling, Michigan New facility Grayling, MI ➜ Saab’s AT4 solution selected by U.S. Army for Individual Assault Munition program ➜ U.S. Air Force new Carl-Gustaf customer ➜ Saab’s technology accelera
Slide 12: Sustainability Q3 highlights
Sustainability Q3 highlights ➜ Saab’s new group-wide Energy Strategy finalised which defines the required direction and guidelines to achieve energy resilience and Science Based Targets ➜ CO₂ emissions increased 8% y-o-y due to higher business activity reflecting Saab’s growth and expansion ➜ Increa
Slide 13: Priorities going forward
Priorities going forward ➜ Meeting growing demand and customer deliveries ➜ Capacity and production ramp-up ➜ Industrialisation and efficiency ➜ Digitalisation and growth transformation ➜ R&D investments in future technologies ➜ Mitigating supply chain risks ➜ Workforce onboarding and upskilling 13
Slide 14: Financial Summary
Financial Summary Anna Wijkander, CFO 14
Slide 15: Orders supporting long-term growth Q3 2024
Orders supporting long-term growth Q3 2024 Order backlog duration, SEK billion 70 +29% +29% 21.2 Order bookings, BSEK (15.0 in Q3 2023) 60 +22% 55.1 50 46.8 +75% 42.8 +48% ➜ Improved book-to-bill at 1.9x (R12M) 40 38.4 37.9 ➜ Increasing our backlog for sales conversion +30% 32.8 30 at the end of per
Slide 16: Financial summary Q3 2024
Financial summary Q3 2024 Saab Group, SEK million unless otherwise stated Comments Q3 2024 Q3 2023 Change ➜ Sales growth of 17.5%, of which 17.4% Sales 13,546 11,527 18% organic, -0.2% currency and 0.3% M&A Gross Income 2,912 2,481 17% ➜ Gross income increased driven by higher sales volumes, gross m
Slide 17: Financial summary Jan-Sep 2024
Financial summary Jan-Sep 2024 Saab Group, SEK million unless otherwise stated Comments Jan-Sep Jan-Sep ➜ Sales growth of 20.9%, of which 21.0% 2024 2023 Change FY 2023 organic, -0.2% currency and 0.1% M&A Sales 42,901 35,487 21% 51,609 ➜ Increase in gross income from sales volumes Gross Income 9,37
Slide 18: Sales and EBIT development
Sales and EBIT development Group Sales, SEK million Group EBIT and EBITDA margin, %R12M 20,000 70,000 15% 59.0 bn 13.0% 13.0% 60,000 12.7% 15,000 50,000 10% 8.4% 8.7% 40,000 7.6% 10,000 30,000 5% 20,000 5,000 10,000 0 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 202
Slide 19: Key figures per business area
Key figures per business area SEK million unless otherwise stated Aeronautics Q3 Q3 Dynamics Q3 Q3 Comments 2024 2023 Change 2024 2023 Change ▪ Solid development in Aeronautics sales and margin Sales 3,322 3,135 6% Sales 3,056 2,453 25% ▪ Dynamics deliver growth from several business units but margi
Slide 20: Cash flow and investments
Cash flow and investments Group Cash Flow YTD, SEK billion Investments, SEK million 3.5 3.2 Jan-Sep 2024 3.0 2.5 2.3 11.8 Return on 2.0 equity, % 2.7 (11.2% in Jan-Sep 2023) 1.5 1.7 1.0 Jan-Sep 2024 0.5 0.0 0.6 Jan-Sep 2023 0.5 Jan-Sep 2024 13.2 Return on capital employed, % Tangible assets Intangib
Slide 21: Solid balance sheet
Solid balance sheet Liquidity/debt position, SEK billion 6 -1x Q3 2024 Q3 2024 5 4 -0.8x 0.1x Net debt/EBITDA* 38.9% Equity/Asset ratio -0.6x 3 Q3 2024 Q3 2024 10.6 6.0 2 -0.4x 1 -0.2x Cash and liquid Unutilised Revolving Credit investments, SEK bn Facilities, SEK bn 0 0x -0.5 bn** -1 0.2x -2 -3 0.4
Slide 22: Outlook and targets
Outlook and targets Outlook 2024 Organic sales growth: Operating income Cash Flow Organic sales Operating income Positive growth between growth higher than operational 15-20% organic sales growth cash flow Medium-term 2023-2027 Organic sales growth: Operating income Cash Flow ~15% CAGR* Operating in
Slide 23: Saab interim report January - September 2024
SAABINTERIM REPORT 23 JANUARY - SEPTEMBER 2024