Slide 1: Strong order intake and continuous focus on capacity increases
Saab interim report January - June 2024 Strong order intake and continuous focus on capacity increases Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO 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 Q2 2024
Highlights Q2 2024 ➜ Capturing market share and strengthening Saab’s position ➜ Strong long-term demand fundamentals, supported by the NATO alliance ➜ Ukraine continues to drive growth ➜ Focus on important deliveries and ongoing capacity build-up ➜ Continuous R&D efforts in core technology areas 3
Slide 4: Key figures Q2 2024
Key figures Q2 2024 Strong order Order intake, BSEK Double-digit Sales, BSEK intake with growth in all 39.6 15.2 several large business areas contracts 176% increase y-o-y 21% organic growth EBIT margin EBIT, BSEK Negative due to Operational cash flow, BSEK improvement timing of large 1.3 -2.3 to 8.
Slide 5: Order intake Q2 2024
Order intake Q2 2024 Q2 2024 H1 2024 Total orders 39.6 58.1 SEK billion SEK billion (14.3) (31.3) Key orders ➜ Major Carl-Gustaf contract with Poland International orders 32.4 46.2 SEK billion SEK billion ➜ Large defence equipment order to Western country (7.1) (21.0) ➜ Contract for 3rd GlobalEye ai
Slide 6: Building backlog for future growth
Building backlog for future growth Order, Sales and Book-to-bill, SEK billion Order backlog, SEK billion Sales Orders Sales growth Sweden International* Book-to-bill 120 40% 1.8 200 35% +88% 100 30% 1.5 150 80 1.5 22% 25% 128 bn 60 23% 20% 100 1.1 15% 40 67 bn 10% 50 20 5% 55 bn 7%* 5% 30 bn 0 0% 0
Slide 7: Aeronautics
Business Area Aeronautics Sales, SEK million 6,000 q/q +10% ➜ Continued good pace in programme 5,000 execution contributing to sales growth 4,000 3,726 3,397 ➜ Improved profitability supported by the 3,000 higher volumes and slight recovery in the civil business 2,000 ➜ EBIT still impacted by T-7 pr
Slide 8: Dynamics
Business Area Dynamics Sales, SEK million 5,000 q/q +37% ➜ Significant customer interest, record-high 4,000 order intake in the quarter, strengthening 3,312 backlog with 84% y/y 3,000 2,417 ➜ Strong sales growth driven primarily by 2,000 Missile Systems and Training & Simulation ➜ Scale from high vo
Slide 9: Surveillance
Business Area Surveillance Sales, SEK million 8,000 q/q +14% ➜ Strong order intake with continued high market interest for the portfolio 6,000 5,406 4,739 ➜ Sales growth in Q2 driven by high activity 4,000 level in several business units ➜ Margins impacted by unfavourable mix from 2,000 a few legacy
Slide 10: Kockums
Business Area Kockums Sales, SEK million 3,000 q/q +53% ➜ Growing interest for Saab’s surface ship 2,197 solutions and for Combat Boat 90 2,000 ➜ Strong sales reflected high activity in all 1,433 units including high material flow in projects 1,000 ➜ EBIT improvement from the strong volumes and a co
Slide 11: Combitech
Business Area Combitech Sales, SEK million 2,000 q/q +6% ➜ Continued high demand in the defence segment 1,500 ➜ Contracts signed with FMV and several 1,023 1,082 1,000 other customers within the defence area ➜ All metrics increased y/y driven by good 500 activity in the defence projects ➜ New servic
Slide 12: Capacity increases Q2 status
Capacity increases Q2 status Finland Sweden ▪ New facility for serial production U.K. of Sirius Compact U.S. ▪ Further ramp-up of ▪ New manufacturing capability G1X production in the U.S. with production from in Fareham 2026 ▪ New underwater ▪ Gradual increase of workforce production facility for T-
Slide 13: Sustainability Q2 highlights
Sustainability Q2 highlights ➜ Saab the first major defence company to receive SBTi approval for its 2050 greenhouse gas emission reduction targets ➜ Diversity and inclusion target integrated in Saab’s Performance Share Plan for senior management - driving efforts to increase the share of women empl
Slide 14: Priorities going forward
Priorities going forward ➜ EU and NATO initiatives and collaborations ➜ Customer deliveries and meeting strong demand ➜ Capacity and production ramp-up ➜ Workforce onboarding and upskilling ➜ R&D investments in future technologies ➜ Digitalisation and growth transformation ➜ Mitigating supply chain
Slide 15: Financial Summary
Financial Summary Christian Luiga, CFO and Deputy CEO 15
Slide 16: Orders supporting long-term growth Q2 2024
Orders supporting long-term growth Q2 2024 Order backlog duration, SEK billion 60 +29% 82% Order bookings from markets outside Sweden 52.4 +30% (50% in Q2 2023) 50 +23% 42.7 +102% 40.5 40 34.9 ➜ Second strongest order intake quarter 32.9 +13% 30 28.6 ➜ Q2 book-to-bill of 1.8x (R12M) leading to 23.2
Slide 17: Financial summary Q2 2024
Financial summary Q2 2024 Saab Group, SEK million unless otherwise stated Comments Q2 2024 Q2 2023 Change ➜ Sales growth of 21.6% of which 21.2% Sales 15,170 12,475 22% organic and 0.4% M&A related Gross Income 3,380 2,760 22% ➜ Gross income driven by higher sales in all BAs and improved gross margi
Slide 18: Financial summary H1 2024
Financial summary H1 2024 Saab Group, SEK million unless otherwise stated Comments Jan-Jun Jan-Jun ➜ Reported sales growth of 22.5%, of which 2024 2023 Change FY 2023 22.4% organic and 0.1% M&A related Sales 29,355 23,960 23% 51,609 ➜ Increased gross income driven by the higher Gross Income 6,465 5,
Slide 19: Sales and EBIT development
Sales and EBIT development Group Sales, SEK million Group EBIT and EBITDA margin, %R12M 57.0 bn 20,000 60,000 15% 13.1% 12.7% 12.6% 50,000 15,000 40,000 10% 8.3% 8.4% 7.5% 10,000 30,000 20,000 5% 5,000 10,000 0 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2023
Slide 20: Key figures per business area
Key figures per business area SEK million unless otherwise stated Q2 Q2 Q2 Q2 Comments Aeronautics 2024 2023 Change Dynamics Change 2024 2023 ▪ Aeronautics performance driven by higher volumes Sales 3,726 3,397 10% Sales 3,312 2,417 37% and improvement in the civil business ▪ Dynamics sequentially u
Slide 21: Cash flow and investments
Cash flow and investments Group Cash Flow YTD, SEK billion Investments, SEK billion 2.5 H1 2024 2.0 0.4 11.2 Return on 1.5 equity, % 0.4 (10.4% in H1 2023) 1.0 1.8 H1 2024 0.5 1.0 0.0 Jan-Jun 2023 Jan-Jun 2024 12.8 Return on capital employed, % Tangible assets Intangible assets (10.5% in H1 2023) ▪
Slide 22: Solid balance sheet
Solid balance sheet Liquidity/debt position, SEK billion 6 -1x Q2 2024 Q2 2024 0.33x 39.6% 5 -0.8x 4 Net debt/EBITDA* Equity/Asset ratio -0.6x 3 2 -0.4x Q2 2024 Q2 2024 1 0 -0.2x 7.5 Cash and short term 6.0 Unutilised Revolving Credit 0x investments, SEK bn Facilities, SEK bn -1 0.2x -2 -3 -2.4 bn**
Slide 23: Outlook and targets
Outlook and targets Organic sales growth Operating income Cash flow Outlook Organic sales growth Operating income growth Positive operational between 15-20% higher than organic cash flow 2024 sales growth Medium term ~15% CAGR* Operating income growth >70% cash conversion** higher than organic (cumu
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