Saab : Presentation Q3.pdf

Saab Q3 2021 Presentation

22 October 2021

Micael Johansson, President and CEO Christian Luiga, CFO and Deputy CEO

Strengthened order backlog and continued growth

REPORTED

Q3 Highlights

ADJUSTED*

Orders Growth

15,605 MSEK 54%

(10,152 MSEK)

EBITDA	Margin
977 MSEK	12.2%
(-314MSEK)	(-5.2%)

OCF

-1,238MSEK

(-363MSEK)

Sales	Growth
7,992 MSEK	32%
(6,064 MSEK)

EBIT	Margin
500 MSEK	6.3%
(-663MSEK)	(-10.9%)

Orders	Growth
15,605 MSEK	54%
(10,152 MSEK)

EBITDA	Margin
977 MSEK	12.2%
(794 MSEK)	(10.5%)

OCF

-1,238MSEK

(-363MSEK)

Sales Growth 7,992 MSEK 6% (7,560 MSEK)

EBIT	Margin
500 MSEK	6.3%
(445 MSEK)	(5.9%)

*Adjusted for items affecting comparability in Q3 2020

Market highlights

Continued positive trend in the defence market

• Strong demand in Sweden, Europe and the U.S.
• Expecting decision from important campaigns in the near future
• Continued weak civil aviation market

Strong order intake in the quarter

• Total order intake 15.6 BSEK, increase of 54% y-o-y
• Driven by large orders, up 106% y-o-y
• Order backlog of 105 BSEK

Key orders

• Large contract to modernize German Navy's F123 Frigates
• Further capability order for the A26 Submarine for Sweden
• Orders for Carl-Gustaf
• Combat training solutions to Poland
• Digital Tower order to the Belgium Air Traffic Control organization

3

Business area summary

Aeronautics

• Several Gripen campaigns ongoing
• Grand opening of the new U.S. facility in West Lafayette
• T-7Aoperations impact results negatively
• Lower sales in civil aviation operations

MSEK	Q3 2021	Q3 2020	YTD 2021	YTD 2020
Order intake	299	901	4,662	4,022
Sales	2,479	1,770*	8,626	7,763*
EBITDA	79	-943*	570	-484*
EBITDA margin	3.2%	-53.3%	6.6%	-6.2%
EBIT margin	1.9%	-54.8%	5.6%	-7.2%

Dynamics

• Favourable market demand in several product areas
• Large orders for Carl-Gustaf and Combat Training
• Strong profitability in Q3 driven by good project completion - especially in Ground Combat

MSEK	Q3 2021	Q3 2020	YTD 2021	YTD 2020
Order intake	3,190	5,811	7,937	10,197
Sales	1,456	1,480	5,900	4,684
EBITDA	223	133	808	545
EBITDA margin	15.3%	9.0%	13.7%	11.6%
EBIT margin	13.8%	7.6%	12.6%	10.2%

*Sales and EBITDA impacted by project estimate adjustment of 1.1 BSEK in Q3 2020.

Business area summary

Surveillance

• Increased order intake, large frigates contract in Germany
• Strong interest for GlobalEye
• Sales improvement driven primarily by the radar business
• EBIT margin negatively impacted by increased amortization cost of 102 MSEK and operations in South Africa

MSEK	Q3 2021	Q3 2020	YTD 2021	YTD 2020
Order intake	5,455	3,123	10,378	8,062
Sales	2,978	2,410	9,233	7,886
EBITDA	384	255	1,070	781
EBITDA margin	12.9%	10.6%	11.6%	9.9%
EBIT margin	6.4%	6.8%	5.4%	6.5%

Kockums

• Strengthened backlog driven by A26 submarine order
• Sales growth driven by high activity in business unit Submarines
• Improved margins from sales growth and productivity

MSEK	Q3 2021	Q3 2020	YTD 2021	YTD 2020
Order intake	6,383	198	7,271	938
Sales	707	589	2,260	2,151
EBITDA	41	30	120	99
EBITDA margin	5.8%	5.1%	5.3%	4.6%
EBIT margin	4.7%	3.7%	4.1%	3.4%