Slide 1: Saab Q2 2022 Presentation
Saab Q2 2022 Presentation 21 July 2022 Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO
Slide 2: Market status
Market status • Changed security landscape, European defence spend to significantly increase • Growing importance of security of supply • Increased opportunity for Saab with Swedish NATO membership • Strong interest for Saab’s product portfolio • Saab well positioned to meet increased customer deman
Slide 3: Q2 2022 Highlights
Q2 2022 Highlights Orders Growth • Strong order intake 17,363 MSEK 76% (9,875 MSEK) Sales Growth • Sales in line with last year 10,171 MSEK 0.4% • Increased EBIT and EBIT margin (10,131 MSEK) EBITDA Margin • Positive operational cash flow 1,255 MSEK 12.3% (1,196 MSEK) (11.8%) • Keel-laying ceremony
Slide 4: Key orders in Q2
Total orders Key orders in Q2 17.4 BSEK +76% Gripen C/D upgrade for Sweden Studies on future Two GlobalEye for Sweden fighter aircraft capability to Sweden Several Several Carl-Gustaf Carl-Gustaf® orders orders including including 4 Production batch contract for the ammunition ammunition to Sweden a
Slide 5: Business area summary
Business area summary Aeronautics Dynamics • Orders include part of GlobalEye contract to Sweden • Orders growth driven by Ground Combat • Good progress in the Gripen programme with high • Sales declined due to a high comparison in Q2 2021 testing activity in the quarter • Increased EBIT and margins
Slide 6: Business area summary
Business area summary Surveillance Kockums • Strong order intake with GlobalEye to Sweden • Important milestone in the A26 programme with the and several medium-sized orders keel-laying ceremony for first Swedish submarine • Sales growth in all business units • Solid sales in the quarter, driven by
Slide 7: Driving innovation for future growth
Driving innovation for • Developed in Sweden and Finland • Modular and scalable passive EW sensor future growth • Enhanced situational awareness • Applicable from single sensor to network operations • Rapidly deployable due to low size, weight and power • Platform agnostic: drones, vehicles, vessels
Slide 8: Sustainability highlights in the quarter
Sustainability highlights in the quarter Supporting nations in keeping people and society safe • All Climate Task Forces initiated within Saab’s Science Based Targets project • Saab Sustainability Council established in Q2 • Continued implementation of the new Responsible Sales Policy 8
Slide 9: Priorities going forward
Priorities going forward • Capture market opportunities – intensified dialogue with customers • Continuous focus on core areas and multi-domestic strategy • Invest in future capabilities; Autonomous Systems, Distributed Sensor Systems, Cyber Security and Defence Cloud offering • Initiatives to incre
Slide 10: Our opportunities for growth have improved
“Our opportunities for growth have improved” 10
Slide 11: Financial Summary
Financial Summary
Slide 12: Strengthened order backlog
Strengthened order backlog H1 2022 Order Bookings Order Backlog duration 35 32.2 30 28.4 25 24.7 BSEK 20.2 19.5 20 17.3 17.4 18.3 17.0 15 14.1 10 Sweden Outside of Sweden 5 0 Year 1 Year 2 Year 3 Year 4 After Year 4 Backlog 2021 Q2 Backlog 2022 Q2 • Order growth of 76% in quarter, driven by large an
Slide 13: Financial summary Q2 2022
Financial summary Q2 2022 MSEK Saab Group P&L comments Q1 2022 Order Bookings Q2 2022 Q2 2021 Change • Sales growth of 0.4% against a strong Sales 10,171 10,131 0.4% Q2 2021 (14.7%) Gross income 2,122 2,113 0.4% • Gross margin flat, low growth compensated by favourable mix Gross margin, % 20.9 20.9
Slide 14: Financial summary H1 2022
Financial summary H1 2022 MSEK Saab Group P&L comments Q1 2022 Order Bookings H1 2022 H1 2021 Change FY 2021 • Sales growth of 0.9% due to the Sales 19,389 19,219 0.9% 39,154 sales and delivery pattern of the year Gross income 4,156 4,047 3% 8,205 • Gross income and margin improvement driven by Dyna
Slide 15: Sales per Business Area Q2
Sales per Business Area Q2 Sales growth % Q1 2022 Order Bookings Business Area comments +17% 3 500 • Aeronautics’ sales impacted by timing +1% 3 000 effects on the Gripen programme • Dynamics down due to strong SALES MSEK 2 500 -21% comparison in Q2 2021 2 000 • High activity level and pre-start wor
Slide 16: Adj. Sales and EBITDA margin trend
Adj. Sales and EBITDA margin trend EBITDA comments Q1 2022 Order Bookings 40,000 14% 39,000 • Long-term growth trend positive SALES MSEK 38,000 12% • Sales CAGR of 4.5% since 2019 37,000 • EBITDA margin shows steady 36,000 increase despite slower sales growth 10% 35,000 34,000 33,000 8% Q4 2019 Q4 2
Slide 17: EBIT and margins per Business Area Q2
EBIT and margins per Business Area Q2 Q1 2022 Order Bookings Business Area comments 18.5% EBIT margin % 400 350 • Aeronautics’ earnings declined as a result of low volumes and negative 300 currency effects EBIT MSEK 250 6.3% • Good project mix and execution 200 5.8% within Dynamics and Surveillance
Slide 18: Business summary – Combitech
Business summary – Combitech Comments • Digital transformation contract, including 5G private network, signed in Q2 • Sales increase driven by higher activity towards external customers in Q2 • EBIT impacted by higher cost MSEK Q2 2022 Q2 2021 Jan-Jun 2022 Jan-Jun 2021 • Competition for competence a
Slide 19: Cash flow from operations
Cash flow from operations Operational cash flow FY 4.5 3.3 3.0 2.8 Positive 1.5 BSEK BSEK 0.0 -1.5 -1.3 -0.3 -2.4 -3.0 2018 2019 2020 2021 2022 • Operational cash flow of 0.5 BSEK in Q2 (3.2), in line with our milestone plans “Full year positive cash flow, • Lower investments mainly due to lower cap
Slide 20: Solid net debt position
Solid net debt position BSEK Q2 2022 10 1.8 Q1 2022 Pension liabilities 2.1Order Bookings 9 1.6 8 1.4 Leasing liabilities 2.5 7 1.2 - Other cash less liabilities -4.5 BSEK 6 1.0 5 4 0.8 = Net debt 0.1 3 0.6 0.4 Net debt/EBITDA* 0.02x 2 1 0.2 0 0.0 Q4 2019 Q4 2020** Q4 2021 Q1 2022 Q2 2022 Net Equity
Slide 21: Outlook 2022
Outlook 2022 ORGANIC SALES GROWTH OPERATING INCOME CASH FLOW Operating income Operational cash flow to be Organic sales growth improvement between positive for 2022 however at of around 5% 8-12% compared to 2021 a lower level than in 2021 “For the full year, we estimate operating income improvement
Slide 22: Q&A
Q&A