INTERIM REPORT JANUARY MARCH President and CEO Håkan Buskhe 25 April, 2013

Transcription

1 INTERIM REPORT JANUARY MARCH 2013 President and CEO Håkan Buskhe 25 April, 2013

2 JANUARY - MARCH IN BRIEF Sweden International 2013 %-Change 2012 bookings 18, ,000 backlog 47, ,657 5, ,573 income margin, % Net income % 21% 66% intake Net liquidity 1,984 3,437 cash flow % backlog

3 GRIPEN E UPDATE Key agreement with FMV* concerning development and modification Gripen E s received for the complete development Gripen E from FMV totalling SEK 13.2 billion The agreement includes potential orders concerning Gripen E to a total SEK 47.2 billion in 2013 and 2014, including a potential order to Switzerland In Switzerland the political process is on-going with an expected decision regarding procurement in 2014 * Swedish Defence Materiel Administration

4 CHALLENGING MARKET 2013 Global Military Spending Forecasted CAGR / Share world spending North America 3% / 36% Nordic +/ 0% /1% Europe +/ 0% / 16% MENA +2% / 10% Russia +8% / 6% India +5% / 3% China +6% / 10% Latin America +1% / 4% Sub Saharan Africa +7% / 1%* Asia Pacific +2% / 12% % CAGR = Compounded annual growth rate % Share World Total Projected Defense Spending , Source: IHS Janes Continued unstable financial situation in Europe Sequestration in the U.S. puts pressure on federal spending Security and defence companies increasingly looking at opportunities in growth markets

5 GROWTH IN DEMANDING MARKET backlog 39,554 40,957 35,657 47,059 5,384 5,452 5,573 5,862 PROFITABLE GROWTH PERFORMANCE PEOPLE PORTFOLIO Q Q Q Q Q Q Q Q PROFITABLE GROWTH for development Gripen E, totalling SEK 13.2 billion received Strong order intake in all business areas Electronic Defence Systems order for Erieye AEW&C Mission System Security and Defence Solutions support contract for airborne surveillance system, which also generates order intake for Electronic Defence System and Support and Services Reported and organic sales grew by 5 per cent High activity level especially in business areas Aeronautics and Combitech PAGE 5

6 INTERNATIONAL GROWTH JAN-MARCH 2013 Sweden 2013 % s 14, ,431 2, ,122 Americas 2013 % s 1, , EU exkl. SE 2013 % s Asia 2013 % s 1,689 1, , ,303 Rest Europe 2013 % s Australia, others % s Africa 2013 % s

7 STRONG PERFORMANCE Gross margin 26,2% 28,3% 27,5% 23,6% margin 2,6% 2,7% 2,0% Amortisation and writedown capitalised development costs PROFITABLE GROWTH PERFORMANCE PORTFOLIO 3,5% 6,7% 7,2% 6,8% Reported EBIT PEOPLE 2,3% Q Q Q Q Q Q Q Q PERFORMANCE Strong results in a demanding market EDS operating loss due to investments in early stage product development projects, lower sales volume and a different project mix Increased stability operating cash flow generation - key focus PAGE 7

8 PORTFOLIO AND PEOPLE PORTFOLIO Joint ventures established in Asia Pacific to strengthen market presence PROFITABLE GROWTH PERFORMANCE PEOPLE PORTFOLIO PEOPLE Saab climbs in best workplace survey by Universum, from 25th in 2012 to 8th in 2013 (Masters degree: engineering students) Individual Performance Management process in focus We continue to actively work with the prioritized areas in order to attract and retain the best talents PAGE 8

9 Outlook Statement 2013 In 2013, we estimate that sales will increase slightly compared to The operating margin in 2013, excluding material net capital gains and other non-recurring items, is expected to be in line with the operating margin in 2012, excluding material non-recurring items, 7.7 per cent *. *Restated from 7.6 per cent to 7.7 per cent due to the changed accounting principles for pensions (IAS 19).

10 Interim report JANUARY MARCH 2013 Financials more in detail Magnus Örnberg, CFO 25 April, 2013

11 SUMMARY Q GROWTH bookings and sales strong Acquisitions contributed to sales growth by 1 per cent and exchange rates negative by 1 per cent PROFITABLE GROWTH PERFORMANCE PEOPLE PORTFOLIO EXECUTION AND INCOME FINANCIAL POSITION Different project and product mix impacted gross margin Marketing expenses increased; in line with our expectations Investments in R&D continues; large part taken in Electronic Defence Systems Pension net liability changes as discount rates change Net liquidity unchanged compared to year-end cash flow negative; mainly due to timing differences in milestone payments PAGE 11

12 ORDERS RECEIVED Book-to-bill ratio (12 months rolling) 3,5 Large orders Small orders Book-to-Bill ratio 3 2,5 Record Record high high quarterly quarterly order order intake; intake; with with several several large large orders orders and and good good flow flow orders orders under under , ,900 86% 1,5 72% 7, ,5 0 28% Q ,215 58% 42% Q ,431 46% 54% Q ,147 40% 60% Q ,114 43% 57% Q ,000 19% 81% Q % 30% Q ,111 46% 54% Q ,928 53% 47% Q % Q1 2013

13 GROWTH PER BUSINESS AREA bookings per business area 10,833 ch 2013 ch 2012 bookings per region Asia 9% Americas 6% Africa 1% Austr, etc - RoE 1% ,693 1,620 1, , EU excl SE 5% SE 79% Aeron. Dynamics EDS SDS S&S Combitech per business area 24% 1,765 1,419-15% 1, % 1,181 1,038-4% 1,323 1,271 ch 2013 ch % per region Asia 17% Africa 3% Austr, etc 6% SE 44% 32% Aeronautics Dynamics EDS SDS S&S Combitech Americas 12% RoE 2% EU excl SE 16% PAGE 13

14 ORDER BACKLOG backlog split March 2013 Asia 15% Africa 3% Austr, etc 3% backlog duration (SEK billion): March 2013 March 2012 Dec : : : : : : : : : : : : 2.7 After 2016: 4.2 After 2015: 3.8 After 2016: 2.9 Total: 47.1 Total: 35.7 Total: 34.2 Americas 15% SDS 16% S&S 14% RoE 1% EDS 17% Dyn. 10% SE 46% EU excl SE 17% Combitech 1% AN 42%

15 EBIT PER BUSINESS AREA AND CORPORATE EBIT, ch 2013 ch EBIT margin (%) 5.5% 6.6% 10.4% 8.2% 7.7% % 1.7% 8.6% 10.7% 12.5% 10.7% Aeronautics Dynamics EDS SDS S&S Combitech Corporate -4.3% The The Group Group generated generated EBIT EBIT (403), (403), an an EBIT EBIT margin margin (7.2) (7.2) per per cent. cent. PAGE 15

16 HIGHLIGHTS INCOME STATEMENT %-change 5,862 5,573 5% Organic growth 5 per cent Gross margin 27.5% 28.3% Marketing expenses % % sales 8.8% 8.2% As expected, increased marketing expenses due to buildup Market Area organisation Administrative expenses % % sales 4.5% 4.9% Research and development costs % % sales 7.8% 8.6% High activity level in product development income % margin 6.8% 7.2% Financial net Income before taxes Taxes Net income % Earnings per share after dilution, SEK Tax rate 26% 28%

17 AMORTISATION OF CAPITALISED DEVELOPMENT EBITDA (margin) 684 (12.3%) 644 (11.0%) EBIT (margin) 403 (7.2%) 396 (6.8%) Amortisation Amortisation development development costs costs in in the the quarter; quarter; Continued Continued reduction reduction on on balance balance sheet sheet to to continue continue ch 2012 ch 2013 Total Depreciation, Amortisation and write-downs Amortisation and write-down capitalised development costs 2013: 115, 2012: 152 Capitalised development costs ,038 2,428 1,950 1,751 1,643 Dec Dec Dec Dec Dec March 2013

18 OPERATING CASH FLOW Change in Working capital ch 2013 ch 2012 Investments cashflow Cash flow before change working capital Change in working capital impacted by build up project activities and timing differences in milestone payments

19 FINANCIAL POSITION KEY INDICATORS 31 March 31 March Change 31 Dec Goodwill 4,556 4, ,581 Capitalised development costs 1,643 1, ,751 Tangible fixed assets 3,758 4, ,805 Inventories 4,490 4, ,420 Accounts receivable 3,091 2, ,454 Other receivables 2,832 3, ,548 Accrued revenues 2,075 2, ,724 Advance payments from customers Equity/assets ratio 41.6% 37.4% 39.0% Total net liquidity, 1,984 3,437-1,453 1,996

20 APPENDIX PAGE 20

21 AERONAUTICS HIGHLIGHTS 29%, % total 87% 23% 3% 40% Split Defence/Civil % sales Markets outside Sweden bookings Backlog % 2012 % bookings bookings 10,833 10, ,226 1,226 Split between larger orders Split between larger orders > 100 and smaller orders 99/1 48/52 > 100 and smaller orders 99/1 48/52 backlog backlog 20,373 20,373 12, , ,765 1,765 1, , income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 3,021 3,021 2, ,722 11

22 DYNAMICS - HIGHLIGHTS 14% Split Defence/Civil % sales 86%, % total 85% 92% 91% Markets outside Sweden bookings Backlog % 2012 % bookings bookings Split between larger orders Split between larger orders > 100 and small orders 59/41 0/100 > 100 and small orders 59/41 0/100 backlog backlog 4,633 4,633 4, , , , income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 1,575 1,575 1, ,520 4

23 ELECTRONIC DEFENCE SYSTEMS - HIGHLIGHTS 17% Split Defence/Civil % sales 98%, % total 77% 32% Markets outside Sweden bookings 57% Backlog % 2012 % bookings bookings 3,693 3, Split between larger orders Split between larger orders > 100 and small orders 72/28 0/100 > 100 and small orders 72/28 0/100 backlog backlog 8,043 8,043 6, , ,038 1,038 1, , income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 2,546 2,546 2, ,508 2

24 SECURITY AND DEFENCE SOLUTIONS - HIGHLIGHTS 21%, % total 81% 81% bookings 69% Split Defence / Civil % sales 85% Backlog % 2012 % bookings bookings 1,620 1,620 1, , Split between larger orders Split between larger orders > 100 and small orders 45/55 30/70 > 100 and small orders 45/55 30/70 backlog backlog 7,485 7,485 7, , ,271 1,271 1, ,323-4 income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 3,092 3,092 2, ,995 3 Markets outside Sweden

25 SUPPORT AND SERVICES - HIGHLIGHTS 13%, % total 28% 19% bookings 74% Split Defence / Civil % sales 29% Backlog % 2012 % bookings bookings 2,066 2, Split between larger orders Split between larger orders > 100 and small orders 79/21 0/100 > 100 and small orders 79/21 0/100 backlog backlog 6,906 6,906 4, , income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 1,815 1,815 1, ,769 3 Markets outside Sweden

26 COMBITECH - HIGHLIGHTS 7% 22%, % total 17% 54% 43% % 2012 % bookings bookings backlog backlog income income margin, % margin, % cash cash flow flow Number Number FTEs FTEs 1,266 1,266 1, , Split Defence / Civil % sales

27 OPERATING INCOME, EBIT/EBITDA 2013 Margin 2012 Margin Aeronautics EBIT % % EBITDA % % Dynamics EBIT % % EBITDA % % Electronic Defence Systems EBIT % % EBITDA % % Security & Defence Solutions EBIT % % EBITDA % % Support & Services EBIT % % EBITDA % % Combitech EBIT % % EBITDA % % Corporate EBIT EBITDA Saab Group EBIT % % EBITDA % %

28 COMPREHENSIVE INCOME Net income for the period Other comprehensive income: Revaluation net pension obligation Translation differences Net gain/loss on cash flow hedges Tax attributable to other comprehensive income Other comprehensive income for the period Net comprehensive income for the period

29 OPERATING CASH FLOW VS STATEMENT OF CASH FLOW cash flow Cash flow from financing: Repayments loans Dividend paid - - Cash flow from investments Interest-bearing: Short-term investments Other financial investments Cash flow for the period

30 STATEMENT OF FINANCIAL POSITION 31 Mar 31 Dec Change Assets Intangible fixed assets 6,687 6, Tangible fixed assets 3,142 3, Lease assets Biological assets Investment properties Shares in associated companies Financial investments Long-term receivables Deferred tax assets Total fixed assets 11,282 11, Inventories 4,490 4, Derivatives Tax receivables Accounts receivable 3,091 3, Prepaid expenses and accrued income 1, Other receivables 2,832 2, Liquid assets and short-term investments 5,106 5, Total current assets 17,153 17, Total assets 28,435 28,

31 STATEMENT OF FINANCIAL POSITION 31 Mar 31 Dec Change Shareholders equity and liabilities Parent Company s shareholders interest 11,739 11, Non-controlling interest Total shareholders equity 11,829 11, Long-term interest-bearing liabilities Other liabilities Provisions for pensions 2,447 2, Other provisions 1,254 1, Deferred tax liabilities Total long-term liabilities 4,408 4, Short-term interest-bearing liabilities 1,526 1, Advance payments from customers Accounts payable 1,569 1, Derivatives Tax liabilities Other liabilities Accrued expenses and deferred income 6,566 6, Provisions Total current liabilities 12,198 12, Total shareholders equity and liabilities 28,435 28, Equity/assets ratio,%

32 CHANGES IN SHAREHOLDERS EQUITY Capital Other Net res. Translation Revaluation Retained Total excl. stock capital cash f. reserve reserve earnings non-. contr. hedges controlling intr. Opening balance, 1 January, , ,563 11,168 Net comprehensive income for the period Transactions with shareholders: Dividend - - Share matching plan Closing balance, 31 March, , ,185 11,739

33 NET LIQUIDITY 31 Mar 31 Dec Assets Short-term investments 3,219 3,963 Liquid assets 1,887 1,616 Interest-bearing receivables Total liquid investments 5,683 6,158 Liabilities Liabilities to credit institutions -1,107-1,104 Other interest-bearing liabilities Provisions for pensions 1) -2,072-2,420 Total interest-bearing liabilities -3,699-4,162 Total net liquidity 1,984 1,996 1) Excluding provisions for pensions attributable to special employers contribution

34 LIQUIDITY 2013 Liquid assets at the beginning the year 1,616 cash flow -349 Short-term investments etc 722 Repayments loans -108 Dividend to shareholders - Other changes, translation differencies etc 6 Liquid assets March 31 1,887

35 NUMBER OF FULL TIME EQUIVALENTS APPENDIX Mar 31 Dec 31 Number Change Aeronautics 3,021 2, Dynamics 1,575 1,568 7 Electronic Defence Systems 2,546 2, Security & Defence Solutions 3,092 3, Support & Services 1,815 1, Combitech 1,266 1, Corporate Saab Group 14,006 13,

36 Quarterly information 2013/2012 Q1 Q4 Q3 Q Aeronautics 1,765 1,678 1,275 1,704 Dynamics 877 1, ,359 Electronic Defence Systems 1,038 1, ,108 Security and Defence Solutions 1,271 2,019 1,280 1,354 Support and Services 822 1, Combitech Corporate Internal sales Total 5,862 7,306 4,899 6,232 income Aeronautics % % % % Dynamics % % % % Electronic Defence Systems % % % % Security and Defence Solutions % % % % Support and Services % % % % Combitech % % % % Corporate Total % % % %

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