Saab interim report January-June 2018

Transcription

1 Saab interim report January-June July, 218 Håkan Buskhe, President and CEO Magnus Örnberg, EVP and CFO

2 Market and technology development Geo political tensions Increasing defence budgets globally European defence spending in Europe due to security situation and focus on 2 per cent of GDP in defence spending for NATO members 2

3 Saab is well positioned Strong interest in Saab solutions Leading technology edge Unique position with development of: New generation fighter jet, Gripen E New generation of conventional submarine, A26 New generation of multirole airborne early warning solution, GlobalEye 3

4 Highlights January-June 218 Strong order intake of medium-sized orders Finland selected Saab as one of the major suppliers to the Finnish Navy Squadron 2 Mid-Life Upgrade programme Sweden placed an order for the latest version of Carl-Gustaf, M4 The UAE placed an order for additional functionality for the advanced airborne early warning & control (AEW&C) solution GlobalEye BAE Systems selected for Australia s next generation warships under Future Frigate program, Saab to provide tactical interface* U.S. Army order for AT4 systems New Lightweight Torpedo * Saab is selected but has not yet received an order from BAE Systems. 4

5 Project execution in focus Status major projects: Gripen E to Sweden - Flight trials, flying with external stores and system verification ongoing Gripen NG to Brazil - Production in Sweden ongoing, production site in Brazil inaugurated GlobalEye to the United Arab Emirates - First flight during first six months 218 Kockums - Submarine A26 initial customer system verification review - Submarine HSwMS Gotland relaunched after mid-life upgrade Gripen E HSwMS Gotland GlobalEye 5

6 Strong second quarter sales Jan-Jun 213 Jan-Jun 214 Jan-Jun 215 Jan-Jun 216 Jan-Jun 217 Jan-Jun Q2 213 Q2 214 Q2 215 Q2 216 Q2 217 Q

7 Status T-X programme Partnership with Boeing to develop the T-X aircraft formed in 213 Designed and purpose built specifically for the U.S. Air Force First flight of aircraft made in December 216 The aircraft has one engine, twin tails, stadium seating and an advanced cocpit with embedded training Saab has offered U.S. based production capability for the T-X aircraft, should the Boeing Saab solution be selected 7

8 Financial highlights, January-June 218 BSEK Order bookings 2,6 12,7 BSEK Order backlog 112,8 14,5 Jan-June 217 Jan-June 218 Jan-June 217 Jan-June 218 Operating income Operational cash flow EBITmargin,% Jan-June 217 Jan-June Jan-June 217 Jan-June 218 8

9 Increase efficiency Reshaping Resizing Actions Jan-Jun 218: Continued alignment of functional processes including ICT, Finance, Quality, etc. Focus on performance management Portfolio management Norweigan cybersecurity company Watchcom acquired (within Combitech) Paratus emergency response business divested (within Business Area Industrial Products and Services) Going forward Shift from strong focus on development to deliveries requires change in staffing Increased productivity measures to be initiated during fall Portfolio management Continued digitalisation to enable utilisation of the same technology platform for more products Focus on the five core technology areas as well as cyber security 9

10 Outlook Sales growth in 218 is expected to be in line with Saab s long-term financial goal: annual organic sales growth of 5 per cent. The operating margin in 218, excluding material non-recurring items, is expected to improve compared to 217, bringing Saab a further step closer to its financial goal: an operating margin of 1 per cent. 1

11 Financial summary Magnus Örnberg, EVP and CFO 11

12 Financial summary, January-June 218 Jan- June 218 Jan- June 217 Change, % Strong order intake of medium-sized orders Sales increased organically by 1 per cent Operating margin at stable level of 5.8 per cent Business area Dynamics impacted by fewer deliveries Financial net impacted by exchange rate fluctuations in USD in market valuation of tender portfolio Operational cash flow in line with plan, impacted by build-up of working capital Equity/asset ratio impacted by increased pension liability Order Bookings 12,664 2, Order Backlog 14, ,769-7 Sales 15,719 15,358 2 Operating Income operating margin, % Net Income Operational Cash Flow -2, Free Cash Flow -3,

13 Order backlog duration Order backlog per Business Area Kockums 7% IPS 11% BSEK 3 June 218 Year End June : : : 15.1 S&S 11% Aeronautics 45% 219: : : : : : : : : 15.8 After 221: 31.2 After 221: 27.8 After 22: 41.4 Total: 14.5 Total: 17.2 Total: Surveillance 15% Dynamics 11% Order backlog per Region Asia 11% Africa 1% Australia etc 3% Sweden 35% Latin America 34% North America 5% Rest of Europe 11% 13

14 Order size distribution ,5 3 2,5 January-June % ,5 58% ,5 Large orders Small orders 14 Small orders* Large orders Book-to-bill ratio** *Small orders = < 1 **Book-to-bill ratio calculated as 12 months rolling

15 Order bookings per business area BSEK Order bookings Aeronautics Dynamics Surveillance S&S IPS Kockums Jan-June 217 Jan-June 218 Order backlog Aeronautics Dynamics Surveillance S&S IPS Kockums Good increase in order bookings of medium-sized orders Order bookings for small orders stable (below 1 in size) Major order received for operational and development support for Gripen from Sweden Orders received for AT4CS RS to the U.S. Army Order backlog continued strong 3 June June

16 Sales per business area % % Sales, 1 per cent organic growth % -1% +4% Growth driven by strong growth in Gripen operations, Kockums as well as airborne surveillance operations % Dynamics had fewer deliveries in the first half 218 vs. 217 Support and Services saw strong sales in first half 217 due to booking of a significant order Aeronautics Dynamics Surveillance S&S IPS Kockums Jan-June 217 Jan-June

17 Operating income per business area Operating margin stable at 5.8 per cent Aeronautics saw increased activities in the Gripen projects and lower T-X-spend Fewer deliveries in Dynamics compared to EBIT-margin,% Aeronautics Dynamics Surveillance S&S IPS Kockums Jan-June 217 Jan-June

18 Operational Cash flow Cash flow from operating activities before changes in working capital: 1, Cash flow from operations Change in working capital: Contract assets and liabilities -3,814 Inventories -824 Other current receivables 79 Other current liabilities 856 Provisions Changes in working capital Cash flow from investing activities: -3, Investing activities Intangible assets -586 Tangible assets -667 Other 6-1,247

19 19 Financial position Net debt, 31 December 217-1,834 Cash flow from operating activities -2,3 Change in net pension obligation -783 Net investment -1,247 Currency impact and unrealised results from -42 financial investments Acquisitions and sale of operations 8 Dividend -588 Net debt, 3 June 218-6,489 Net pension obligation, 3 June 218 3,429 Total interest-bearing assets, 3 June Net debt excluding interest-bearing receivables and net pension obligation -3, % Equity/Assets ratio Equity per share (SEK)

20 Focus 218 Continued focus on execution of large projects project management Build order backlog in selected areas Drive efficiency improvements throughout the organisation

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