Saab Ab Class B · OMXSTO:SAAB_B
Saab Ab Class B — 9M 2020 Earnings Presentation
20 slides from Saab Ab Class B's earnings presentation, Oct 19, 2020
Slide 1: Saab interim report January-September
Saab interim report January-September 19 October, 2020 Micael Johansson, President and CEO Christian Luiga, CFO & Deputy CEO
Slide 2: Highlights, January-September 2020
Highlights, January-September 2020 Strong order growth • Saab has continued to win new contracts in the first nine months o Orders up 27% (8% in Q3) o Small orders up 7% • Market conditions for commercial business still challenging • Stable underlying* sales and earnings • Underlying sales in line w
Slide 3: Increased risk on operations from Covid-19
Increased risk on operations from Covid-19 The continuing pandemic and a slow recovery has an impact on Saab’s operational risk assessment Risks related to the effects of Covid-19 have increased • Increased risk has been identified primarily in business area Aeronautics • Increased risk related to d
Slide 4: Covid-19 impact on Aeronautics
Covid-19 impact on Aeronautics Characteristics of Gripen programmes Increased financial risk in the Gripen E/F • Programmes run over 10+ years programme • The production of an aircraft from first part to final Risk for higher cost in customer financed Development; test is long • Travel restrictions
Slide 5: Executing on our strategy
Executing on our strategy Gripen offer to Croatia and Canada Order for RBS15 from German partner Diehl Divestment of QPS Support contract for GlobalEye to UAE Divestment of shares in Vricon Order for field hospitals to Australia Reveal of new decoy missile for Gripen Gripen production and flight tes
Slide 6: Financial highlights, Jan-Sep 2020
Financial highlights, Jan-Sep 2020 Order bookings Sales 25 24.2 30 24.9 24.4* 19.1 20 BSEK 15 20 BSEK 10 22.9* 10 5 0 0 Jan-Sep 2019 Jan-Sep 2020 Jan-Sep 2019 Jan-Sep 2020 Operating income Operational cash flow 2,0 1.7 0,0 1.7** -0.1 1,5 -1,0 BSEK Adj. EBIT- BSEK 7.0% 6.8%** margin,% -2,0 1,0 -3,0 0
Slide 7: Financial development Q3
Financial development Q3 Sales quarter* Sales: 10 000 • Sales in Q3 slightly below last year 8 000 • Still high execution in the major programs • Increased deliveries in Dynamics MSEK 6 000 4 000 • Lower sales from Surveillance and S&S 2 000 0 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 EBIT • U
Slide 8: Business focus going forward
Business focus going forward International growth Portfolio efficiency Project execution & productivity improvement Technology & Competence development 8
Slide 9: Financial Summary
Financial Summary Christian Luiga, CFO & Deputy CEO 9
Slide 10: Financial summary, Jan-Sep 2020
Financial summary, Jan-Sep 2020 Jan-Sep Jan-Sep Change, MSEK 2020 2019 % • Increase order bookings with 27% YoY Order bookings 24,222 19,093 + 27 • Sales declined mostly due to Covid-19 Order backlog 94,652 96,004 -1 impact of MSEK 1,496 Sales 22,940 24,855 -8 • Underlying earnings in line with last
Slide 11: Items affecting comparability Q3 2020
Items affecting comparability Q3 2020 Q3 2020 Jan-Sep 2020 Reported Reported EBIT margin EBIT margin -10.9% 2.4% EBIT margin EBIT margin (adjusted) (adjusted) 5.9% 6.8% 11
Slide 12: Financial highlights, Q3 2020
Financial highlights, Q3 2020 Order bookings Sales 15 10 7.9 7.6 10.2 8 9.4 BSEK 10 6 BSEK 6.1 4 5 2 0 0 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Operating income Operational cash flow 0,6 0.5 0,0 0.4 BSEK Adj. EBIT- -0,5 -0.4 BSEK 0,2 6.5 5.9 margin,% -1,0 -0.7 -0,2 -1,5 Reported -10.9 EBIT-margin,% -1,7 -0
Slide 13: Order backlog duration
Order backlog per business area Order backlog duration IPS 9% Kockums 4% BSEK S&S Aeronautics 13% 40% End of Sep 2020 End of Sep 2019 2020: 9.6 2020: 9.2 Surveillance 2021: 26.2 2021: 26.6 16% 2022: 20.3 2022: 20.4 Dynamics 18% 2023: 16.3 2023: 15.5 Order backlog per region After 2023: 22.3 After 20
Slide 14: Order bookings per business area
Order bookings per business area Order bookings 10 000 8 000 MSEK 6 000 4 000 • Strong order development in difficult times 2 000 • 3 major orders booked in Q3 0 Aeronautics Dynamics Surveillance S&S IPS Kockums • Small orders grew 7 per cent Jan-Sep 2019 Jan-Sep 2020 • Strong order bookings within
Slide 15: Sales per business area
Sales per business area 6 500 -20% 6 000 • Strong growth in business area -1 % 5 500 5 000 -6 % Dynamics driven by Ground Combat 4 500 +9 % -5 % • Aeronautics sales decline -1%, 4 000 excl. project estimate adjustment 3 500 • Continued high activity level in MSEK 3 000 Aeronautics and Surveillance 2
Slide 16: Adj. operating income per business area
Adj. operating income* per business area 500 450 400 • Earnings in line with last year, excluding 350 items affecting comparability MSEK 300 • Impact from Covid-19 compensated by 250 high utilization levels and reduced costs 200 150 • Positive contribution in Dynamics 100 • Costs related to the civi
Slide 17: Operational cash flow, Jan-Sep 2020
Operational cash flow, Jan-Sep 2020 Cash flow development, 9M 2019 vs 9M 2020 • Cash flow from operations affected by the project estimate adjustments, write-downs 3,0 and provisions 1,0 +6.2 • Working capital improvement driven by -0.1 -0.1 milestones in the large programmes and -1,0 improvement in
Slide 18: Financial position
Financial position MSEK Net debt, 31 December 2019 -7,069 Cash flow from operating activities 1,910 Change in net pension obligation -555 • Net debt unchanged YTD Net investments -2,063 • Vricon divestment SEK ~1 billion Acquisition & Divestments 1,103 • Pension obligations 5,3 BSEK of the -7,1 BSEK
Slide 19: Important information
Important information This presentation may contain forward-looking statements which reflect Saab AB’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indic
Slide 20: Q&A
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