Slide 1: Saab Q3 2022 Presentation
Saab Q3 2022 Presentation 28 October 2022 Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO
Slide 2: Q3 2022 Highlights
Q3 2022 Highlights Orders Growth 7,772 MSEK -50% • Strong growth in medium and small orders (15,605 MSEK) Sales Growth • Sales growth in all business areas 8,751 MSEK 9.5% (7,992 MSEK) EBITDA Margin • Continued EBIT and EBIT margin increase 1,115 MSEK 12.7% (977 MSEK) (12.2%) • Positive operational
Slide 3: Business highlights
Business highlights • Strong interest for the Saab product portfolio • Investments in increased capacity and competences to meet future demand • Net increase of more than 500 employees year-to-date • Successful live firing of the Meteor for Gripen E • Saab’s MSHORAD system operational and demonstrat
Slide 4: NATO, Sweden and Saab
NATO, Sweden and Saab • Sweden and Finland accession strengthens NATO’s operational capability and defence industrial base • Sweden can further contribute with current and future capabilities to fulfil core resilience and defence tasks • NATO countries have a preference to buy from defence companies
Slide 5: Key orders in Q3
Key orders in Q3 Total orders 7.8 BSEK Carl-Gustaf® ammunition and AT4 to U.S. Gripen C/D support contract to South Africa First order for production of Advanced Training Aircraft Fuselage Systems 5 Submarine upgrades to EMATT contract won in the U.S. Sweden
Slide 6: Business area summary
Business area summary Aeronautics Dynamics • First training aircraft fuselage order received from Boeing • High interest in all areas of Dynamics portfolio • Several Gripen fighter campaigns ongoing • Initiatives to add capacity in Sweden, U.S. and India • Gripen Military Type certificate submitted
Slide 7: Business area summary
Business area summary Surveillance Kockums • Production contract awarded for the Sea Giraffe in U.S. • Continued good performance in major underwater • Good performance in business unit Combat Systems and and surface ship programmes Electronic Warfare in Q3 • Ongoing efforts to campaign Saab’s under
Slide 8: Missile Systems
MSHORAD: Saab’s own product RBS 15: Partnership with Diehl Defence RBS 70 NG: Saab’s own product Bamse: Saab’s own product GLSDB: Partnership with Boeing Missile Systems Delivering customer value through advanced technology and strategic partnership Taurus: Partnership with MBDA IRIS-T: Partnership
Slide 9: Missile Systems
Missile Systems The Strategy and Uniqueness The Enablers • Develop and deploy advanced • Expanding strategic partnerships technologies through strategic partnerships • More than 60 customers worldwide • Systems engineering on missile level as • Significant installed base with well as missile sub-sys
Slide 10: Sustainability highlights in the quarter
Sustainability highlights in the quarter Supporting nations in keeping people and society safe • Saab received A rating in Position Green’s ESG100 sustainability ranking • Partnering with electric aircraft manufacturer Heart Aerospace for sustainable aviation • Diversity & Inclusion weeks organised
Slide 11: Ready to support increased defence capability
Ready to support increased defence capability • Capture market opportunities in Sweden and Europe • Continue focus on multi-domestic growth strategy • Initiatives for increased capacity to support replenishment of customer stockpiles and future demand • Increased efforts to support NATO defence capa
Slide 12: Financial Summary
Financial Summary x SEs
Slide 13: Order backlog supporting growth
Order backlog supporting growth Jan-Sep 2022 Order Bookings Order Backlog duration 40 34.1 35 30.8 30 26.7 23.9 BSEK 25 22.7 20.4 20 16.9 18.4 15 12.4 10.3 10 Sweden Outside of Sweden 5 0 Year 1 Year 2 Year 3 Year 4 After Year 4 Backlog 2021 Q3 Backlog 2022 Q3 • Order bookings for first nine months
Slide 14: Financial summary Q3 2022
Financial summary Q3 2022 MSEK Saab Group P&L comments Q1 2022 Order Bookings Q3 2022 Q3 2021 Change • Reported sales growth of 9.5%, whereof Sales 8,751 7,992 9.5% organic growth 6.9% Gross income 1,881 1,746 7.7% • Gross margin slightly down due to timing effects in COGS in Q3 2021 Gross margin, %
Slide 15: Financial summary Jan-Sep 2022
Financial summary Jan-Sep 2022 MSEK Saab Group P&L comments Q1 2022 Order Bookings Jan-Sep Jan-Sep Change FY 2021 2022 2021 • Sales growth of 3.4%, following high Sales 28,140 27,211 3.4% 39,154 activity and deliveries in third quarter Gross income 6,037 5,793 4.2% 8,205 • Gross income and margin im
Slide 16: Sales per Business Area Q3
Sales per Business Area Q3 Sales growth % Q1 2022 Order Bookings Business Area comments 3,500 +4% • Sales growth in all business areas 3,000 +3% • Aeronautics’ growth primarily driven by Aviation Services SALES MSEK 2,500 2,000 +29% • Strong sales growth in Dynamics driven by higher delivery volumes
Slide 17: Adj. Sales and EBITDA margin trend
Adj. Sales and EBITDA margin trend Q1 2022 Order Bookings Sales and EBITDA comments 41,000 14% 40,000 • Continued positive growth trend 39,000 • Sales CAGR of 4.6% since 2019 38,000 12% • R12M EBITDA margin improvement to SALES MSEK 12.7% (12.3% at end of 2021) 37,000 36,000 • Improvements driven by
Slide 18: EBIT and margins per Business Area Q3
EBIT and margins per Business Area Q3 Q1 2022 Order Bookings Business Area comments EBIT margin % 400 350 • Slight improvement in Aeronautics’ 16.9% margin, however still negative 300 impact from T-7 and civil aviation EBIT MSEK 250 • Particularly strong margin in 6.3% Dynamics as a result of volume
Slide 19: Business summary – Combitech
Business summary – Combitech Comments • Combitech signed several frame agreements within the public sector as well as with FMV and Swedish AF • Net increase of approx. 100 employees year-to-date • Sales growth in Q3 driven by higher MSEK Q3 2022 Q3 2021 Jan-Sep 2022 Jan-Sep 2021 utilisation level an
Slide 20: Cash flow bridge
Cash flow bridge Operational cash flow FY 4.5 3.3 3.0 2.8 Positive 1.5 BSEK BSEK 0.0 -1.5 -1.3 -3.0 -2.4 2018 2019 2020 2021 2022 • WC increase due to lower milestone payments and increased inventory “Full year positive cash flow, • Lower investments mainly due to lower capitalized R&D however at a
Slide 21: Strong balance sheet
Strong balance sheet BSEK Q3 2022 8 1.8 Pension liabilities Q1 2022 2.0Order Bookings 7 1.6 Leasing liabilities 2.6 6 1.4 5 1.2 - Other cash less liabilities -5.0 BSEK 1.0 4 0.8 = Net debt(+)/Net liquidity(-) -0.4 3 0.6 2 Net debt/EBITDA* -0.08 0.4 1 0.2 0 0.0 -1 -0.2 Net debt/ Equity/Asset Q4 2019
Slide 22: 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 t
Slide 23: Q&A
Q&A “Strong opportunities for improved growth”