INTERIM REPORT JANUARY SEPTEMBER 2011 PRESIDENT AND CEO HÅKAN BUSKHE, CFO LARS GRANLÖF 19 OCTOBER, 2011 INTERIM REPORT, PRESS AND ANALYST MEETING

Transcription

1 INTERIM REPORT JANUARY SEPTEMBER 2011 PRESIDENT AND CEO HÅKAN BUSKHE, CFO LARS GRANLÖF 19 OCTOBER, 2011 INTERIM REPORT, PRESS AND ANALYST MEETING

2 SUMMARY JAN SEPT 2011 Important orders secured in Q3 Upgrade of naval sonar system Components to the Carl-Gustaf weapon system System maintenance and development studies regarding Gripen Sales decreased 1 percent, MSEK 16,151 (16,381) Operating margin at 14.1 percent (4.4) Operating cash flow, MSEK 2,260 (2,149) Net cash position at MSEK 5,081 Divestment of shares in the 3D mapping company C3 Technologies AB, capital gain of MSEK 916 Acquisition of Saab Sensis finalized PAGE 2

3 CHALLENGING MARKET CONDITIONS European and the U.S. state budgets being scrutinized Demanding market situation with increased competitive pressure Delays in customers decision making processes evident Civil security market continues to grow and commercial air market recovering PAGE 3

4 ORDERS RECEIVED Book-to-bill ratio (12 months rolling) 1,2 11,900 1 Large orders Small orders Book-to-Bill ratio 0,8 0,6 MSEK 7,047 5,478 5,038 72% 5,215 5,431 0,4 0,2 4,101 51% 3,995 29% 3,285 23% 58% 57% 57% 3,862 18% 58% 46% 3,147 40% 49% 71% 77% 42% 43% 43% 82% 28% 42% 54% 60% 0 Q Q Q Q Q Q Q Q Q Q Q PAGE 4

5 STRENGTH FOR MARKET EXPANSION Strategic priorities Inauguration of offices in the UK and India Research centre in Brazil and India Acquisition of Sensis Corporation in the U.S. completed Acquisition of E-COM Divestment of shares in C3 Technologies AB In total cash positive M&A activities in 2011 Strong net cash position Readiness plan for short-term unstable and demanding markets Performance prerequisite for growth PAGE 5

6 SAAB SENSIS Stronger market presence - globally as well as in the U.S. Center of excellence for Air Traffic Management Solutions Airline traffic volume growth and resulting congestion Desire to meet future safety, capacity and environmental needs Structural measures to enhance our competitive position Reductions announced in October PAGE 6

7 HIGHLIGHTS JAN SEPTEMBER 2011 AERONAUTICS DYNAMICS ELECTRONIC DEFENCE SYSTEMS SECURITY AND DEFENCE SOLUTIONS SUPPORT AND SERVICES System maintenance and development studies regarding Gripen (SE) Test pilots at Empire Test Pilots School continues co-operation with Sweden and Saab using the Gripen fighter aircraft (UK) Further deliveries of the Carl-Gustaf man-portable weapon system RBS 70 NG the latest air defence system. New sighting system with improved precision and increased all-target capability (SE) First order worth MSEK 43 and frame agreement with Cassidian for the new advanced UAV system Talarion Contracts for supply of the multirole naval surveillance radar Sea Giraffe AMB (U.S.) Upgrade of a naval sonar system (SE) Five year frame contract with the U.S. Army Contracting Command (U.S.) Call-off contract for technical services for Norrlandsflyg s helicopter fleet (SE) Frame agreement with Eurocopter for support of their NH90 helicopters (EU) PAGE 7

8 SALES PER MARKET SEGMENTS MSEK 7,284 5% 6,924 4,749-5% 4,982 Jan-September % Jan-September ,736 1, % % 1,078-17% Air Land Naval Civil Security Comm. Aer. Others PAGE 8

9 SALES PER MARKET REGION MSEK 6,104 6,110-2% 3,300 3,236 3,296 30% Jan-September 2011 Jan-September % -22% 1,519 1,186 2,541 1,255-31% 1,830-8% SE EU excl SE RoE North America As a % of total sales Latin America Asia Africa Austr., etc PAGE 9

10 CHANGED OUTLOOK 2011 In 2011, we estimate that sales will decline slightly compared to 2010, including the acquisition of Sensis The operating margin, excluding material net capital gains, is expected to increase slightly in 2011 compared to the adjusted operating margin 2010 of 6.5 per cent, including the acquisition of Sensis Previous outlook: In 2011, we estimate that sales will decline slightly compared to The operating margin, excluding material net capital gains, is expected to increase slightly in 2011 compared to the adjusted operating margin 2010 of 6.5 per cent. PAGE 10

11 JANUARY - SEPTEMBER 2011 FINANCIALS LARS GRANLÖF, CFO 19 OCTOBER, 2011 FINANCIALS, JANUARY - SEPTEMBER 2011

12 ORDER BOOKINGS AND ORDER BACKLOG Order Order Order bookings bookings backlog Jan-Sept Jan-Sept 30 Sept MSEK Aeronautics 2,750 4,522 13,775 Dynamics 3,070 2,698 5,854 Electronic Defence Systems 2,675 2,134 7,801 Security and Defence Solutions 3,201 2,828 8,104 Support and Services 2,443 2,409 4,675 Corporate/Internal Saab Group 13,793 14,378 39,411 PAGE 12

13 ORDER BACKLOG Order backlog duration (SEK billion): Sept 2011 Sept 2010 Dec : : : : : : : : : : : : 3.7 After 2014: 6.2 After 2013: 6.9 After 2014: 4.3 Total: 39.4 Total: 37.5 Total: 41.5 Airborne surveillance system RBS70 AT4/ Carl- Gustaf NLAW Aerostructures ANZAC Civil security solutions PAGE 13

14 SALES Jan-Sept Jan-Sept MSEK Change Aeronautics Dynamics Electronic Defence Systems Security and Defence Solutions Support and Services Corporate/Internal Saab Group 4,611 2,770 3,108 3,885 2, ,151 4,679 3,176 3,004 4,009 2, ,381-1% -13% 3% -3% 6% -1% PAGE 14

15 OPERATING INCOME, EBIT Jan-Sept Jan-Sept MSEK 2011 margin 2010 margin Aeronautics % % Dynamics % % Electronic Defence Systems % % Security and Defence Solutions % % Support and Services % % Corporate Saab Group 2, % % Net capital gain/losses 1, PAGE 15

16 INCOME STATEMENT Jan-Sept Jan-Sept Jul-Sept Jul-Sept MSEK Sales 16,151 16,381 4,838 5,004 Cost of goods sold -11,700-12,430-3,427-3,765 Gross income 4,451 3,951 1,411 1,239 Gross margin 27.6% 24.1% 29.2% 24.8% Other operating income 1, Marketing expenses -1,260-1, Administrative expenses Research and development costs -1,307-1, Other operating expenses Share of income in associated companies Operating income 2, , Operating margin 14.1% 4.4% 25.2% 6.4% Share of income in associated companies Financial net Income before taxes 2, , Taxes Net income 1, , Earnings per share after dilution, SEK Tax rate 17% 26% 10% 31% PAGE 16

17 RESEARCH AND DEVELOPMENT MSEK ~3 percentage points Amortisation and write-down of capitalised development costs Self funded R&D expenditures (not including capitalised costs) * ,127 1, * * Q Q Q Q * Amortisation and write-down of capitalised development costs included write-downs of MSEK 250 in 2008 and MSEK 20 in the first nine months 2010 * PAGE 17

18 STATEMENT OF FINANCIAL POSITION 30 Sept 31 Dec Change MSEK Assets Fixed assets 13,155 12, Current assets 18,597 16,814 1,783 Total assets 31,752 29,278 2,474 Shareholders equity and liabilities Shareholders equity 12,620 11,444 1,176 Long-term liabilities 4,355 4, Short-term liabilities 14,777 13,408 1,369 Total liabilities 19,132 17,834 1,298 Total shareholders equity & liabilities 31,752 29,278 2,474 Equity/assets ratio 39.7% 39.1% Total net liquidity 5,081 3,291 1,790 PAGE 18

19 SUMMARISED CASH FLOW JANUARY-SEPTEMBER Actual Actual MSEK Saab SAL/M&A Cash flow from operations 1, ,648 1,674 Inventories Receivables ,523 Advances Liabilities 1, Provisions Change in working capital Intangible assets Tangible assets Lease assets Acquisitions - -1,121-1,121 - Divestments - 1,274 1, Acq/sales of financial assets Cash flow from investments Operating cash flow 2, ,260 2,149 PAGE 19

20 APPENDIX

21 AERONAUTICS HIGHLIGHTS 26% Sales, % of total 86% 44% 23% 70% Markets outside Sweden Split Defence/Civil % of sales Sales Order bookings Backlog Jan-Sept Jan-Sept Jan-Sept Jan-Sept Jan-Dec Jan-Dec MSEK MSEK % % 2010 Order Order bookings bookings 2,750 2,750 4, ,522 6, ,901 Split between larger orders Split between larger orders > MSEK 100 and smaller orders 78/22 85/15-89/11 > MSEK 100 and smaller orders 78/22 85/15-89/11 Order Order backlog backlog 13,775 13,775 15, ,319 15, ,636 Sales Sales 4,611 4,611 4, ,679 6, ,741 Operating Operating income income Operating margin, % Operating margin, % Operating cash flow Operating cash flow Number of employees 2,748 2, ,874 Number of employees 2,748 2, ,874 PAGE 21

22 DYNAMICS - HIGHLIGHTS 16% Split Defence/Civil % of sales 90% Sales, % of total 79% 86% 91% Jan-Sep Jan-Sep Jan-Dec Jan-Sep Jan-Sep Jan-Dec MSEK MSEK % % 2010 Order Order bookings bookings 3,070 3,070 2, ,698 3, ,312 Split between larger orders 62/38 63/37-61/39 Split between larger orders 62/38 63/37-61/39 > MSEK 100 and smaller orders > MSEK 100 and smaller orders Order backlog 5,854 6, ,546 Order backlog 5,854 6, ,546 Sales 2,770 3, ,741 Sales 2,770 3, ,741 Operating income Operating income Operating margin, % Operating margin, % Sales Markets outside Sweden Order bookings Backlog Operating Operating cash cash flow flow , ,044 Number Number of of employees employees 1,480 1,480 1, ,516 1, ,483 PAGE 22

23 ELECTRONIC DEFENCE SYSTEMS - HIGHLIGHTS 18% Split Defence/Civil % of sales 99% Sales, % of total 75% 77% 85% Sales Markets outside Sweden Order bookings Backlog Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Dec Jan-Dec MSEK MSEK % % 2010 Order bookings 2,675 2, Order bookings 2,675 2,134 5, ,494 Split between larger orders 41/59 15/85-58/42 Split between larger orders 41/59 15/85-58/42 > MSEK 100 and smaller orders > MSEK 100 and smaller orders Order backlog 7,801 6, ,240 Order backlog 7,801 6, ,240 Sales 3,108 3, ,354 Sales 3,108 3, ,354 Operating income Operating income Operating margin, % Operating margin, % Operating Operating cash cash flow flow Number Number of of employees employees 2,601 2,601 2, ,496 2, ,453 PAGE 23

24 SECURITY AND DEFENCE SOLUTIONS - HIGHLIGHTS 22% Sales, % of total Sales Order bookings 73% Split Defence / Civil % of sales 78% 63% 79% Backlog Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Dec Jan-Dec MSEK % 2010 MSEK % 2010 Order Order bookings bookings 3,201 3,201 2, ,828 6, ,647 Split between larger orders 32/68 16/84-40/60 Split between larger orders 32/68 16/84-40/60 > MSEK 100 and smaller orders > MSEK 100 and smaller orders Order Order backlog backlog 8,104 8,104 6, ,728 8, ,434 Sales Sales 3,885 3,885 4, ,009 6, ,210 Operating Operating income income Operating margin, % Operating margin, % Operating cash flow ,066 Operating cash flow ,066 Number of employees 3,024 2, ,525 Number of employees 3,024 2, ,525 Markets outside Sweden PAGE 24

25 SUPPORT AND SERVICES - HIGHLIGHTS 14% Sales, % of total 22% Sales 17% Order bookings 80% Split Defence / Civil % of sales 43% Backlog Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Dec Jan-Dec MSEK % 2010 MSEK % 2010 Order Order bookings bookings 2,443 2,443 2, ,409 4, ,124 Split between larger orders 24/76 15/85-32/68 Split between larger orders 24/76 15/85-32/68 > MSEK 100 and smaller orders > MSEK 100 and smaller orders Order backlog 4,675 4, ,743 Order backlog 4,675 4, ,743 Sales 2,474 2,333 6 Sales 2,474 2,333 3, ,403 Operating income Operating income Operating margin, % Operating margin, % Operating Operating cash cash flow flow Number Number of of employees employees 1,710 1,710 1, ,731 1, ,721 Markets outside Sweden PAGE 25

26 SALES PER MARKET Sales MSEK 7,284 6,924 Sales split per market January - September % 6% 4% 11% 45% 4,982 4,749 1,736 1, , Air Land Naval Civil Security Comm. Aer. Others 29% Air Land Naval Civil Security Commercial Aeronautics Others 823 Jan-Sept 2011 Jan-Sept 2010 PAGE 26

27 OPERATING INCOME, EBIT/EBITDA Jan-Sept Jan-Sept MSEK 2011 Margin 2010 Margin Aeronautics EBIT % % EBITDA % % Dynamics EBIT % % EBITDA % % Electronic Defence Systems EBIT % % EBITDA % % Security & Defence Solutions EBIT % % EBITDA % % Support & Services EBIT % % EBITDA % % Corporate EBIT EBITDA 1, Saab Group EBIT 2, % % EBITDA 3, % 1, % PAGE 27

28 COMPREHENSIVE INCOME Jan-Sept Jan-Sept MSEK Net income for the period 1, Other comprehensive income: Translation differences for the period Net gain/losses on cash flow hedges Share of other comprehensive income in associated companies Tax attributable to other comprehensive income Other comprehensive income for the period Net comprehensive income for the period 1, PAGE 28

29 OPERATING CASH FLOW VS STATEMENT OF CASH FLOW Jan-Sept Jan-Sept MSEK Operating cash flow 2,260 2,149 Cash flow from financing: Repayments of loans ,923 Dividend paid Repurchase of shares Cash flow from investments interest bearing: Short-term investments -2, Other financial investments Statement of Cash flow PAGE 29

30 STATEMENT OF FINANCIAL POSITION 30 Sept 31 Dec MSEK Change Assets Intangible fixed assets 6,899 6, Tangible fixed assets 3,245 3, Lease assets 1,017 1, Biological assets Investment properties Shares in associated companies Financial investments Long-term receivables Deferred tax assets Total fixed assets 13,155 12, Inventories 4,207 4, Derivatives 470 1, Tax receivables Accounts receivable 3,565 3, Prepaid expenses and accrued income Other receivables 3,333 3, Liquid assets and short-term investments 6,227 4,088 2,139 Total current assets 18,597 16,701 1,896 Assets held for sale Total assets 31,752 29,278 2,474 PAGE 30

31 STATEMENT OF FINANCIAL POSITION 30 Sept 31 Dec MSEK Change Shareholders equity and liabilities Parent Company s shareholders interest 12,508 11,274 1,234 Non-controlling interest Total shareholders equity 12,620 11,444 1,176 Long-term interest-bearing liabilities 1,218 1, Other liabilities Provision for pensions Other provisions 1,985 2, Deferred tax liabilities Total long-term liabilities 4,355 4, Short-term interest-bearing liabilities Advance payments from customers 1, Accounts payable 1,435 1, Derivatives Tax liabilities Other liabilities 1, ,133 Accrued expenses and deferred income 8,155 7, Provisions Total current liabilities 14,777 13,408 1,369 Liabilities related to assets held for sale Total shareholders equity and liabilities 31,752 29,278 2,474 Equity/assets ratio,% PAGE 31

32 STATEMENT OF FINANCIAL POSITION, SEPTEMBER 30, 2011 SUBDIVIDED Saab Aircraft Elimi- Saab MSEK Saab Leasing nations Group Intangible assets 6, ,899 Tangible assets 3, ,774 Lease assets 2 1,015-1,017 Long-term interest-bearing receivables Shares, etc 1, , Other long-term receivables Deferred tax assets Inventories 4, ,207 Short-term interest-bearing receivables 268 1,588-1, Other current assets 7, ,425 Derivatives Liquid assets and short-term investments 6, ,227 Assets held for sale Total assets 32,287 2,944-3,479 31,752 Shareholders equity 12,681 1,439-1,500 12,620 Provisions for pensions Other provisions 1, ,728 Deferred tax liabilities 1, Interest-bearing liabilities 3, ,588 1,664 Advance payments from customers 1, ,048 Derivatives Other liabilities 11, ,979 Total shareholders equity & liabilities 32,287 2,944-3,479 31,752 PAGE 32

33 CHANGES IN SHAREHOLDERS EQUITY Capital Other Net res. Translation Revaluation Retained Total excl. stock capital on cash f. reserve reserve earnings non-. contr. hedges controlling intr. Opening balance, 1 January, , ,298 11,274 Net comprehensive income for the period ,812 1,561 Transactions with shareholders: Dividend Repurchase of shares - Share matching plan Acquisition and sale of non-controlling interest 1 1 Closing balance, 30 September, , ,783 12,508 PAGE 33

34 NET LIQUIDITY / NET DEBT 30 Sept 31 Dec MSEK Assets Short-term investments 4,113 1,544 Liquid assets 2,114 2,544 Interest-bearing receivables Total liquid investments 6,749 5,002 Liabilities Long-term interest-bearing liabilities -1,218-1,117 Short-term interest-bearing liabilities Provisions for pensions -4-5 Total interest-bearing liabilities -1,668-1,711 Total net liquidity 5,081 3,291 PAGE 34

35 LIQUIDITY MSEK Liquid assets at the beginning of the year 2,544 1,463 Operating cash flow 2,260 2,149 Short-term investments -2, Repayments of loans ,923 Repurchase of shares Dividend to shareholders Other changes, translation differencies etc Liquid assets September 30 2,114 1,423 PAGE 35

36 NUMBER OF EMPLOYEES APPENDIX Sept 30 Dec 31 Number Change Aeronautics 2,748 2, Dynamics 1,480 1,483-3 Electronic Defence Systems 2,601 2, Security & Defence Solutions 3,024 2, Support & Services 1,710 1, Corporate 1,477 1,480-3 Saab Group 13,040 12, PAGE 36

37 Quarterly information 2011 and 2010 July-Sept Apr-June Jan-Mar Oct-Dec Sales Aeronautics 1,268 1,835 1,508 2,062 Dynamics 724 1, ,565 Electronic Defence Systems 979 1,094 1,035 1,350 Security and Defence Solutions 1,310 1,272 1,303 2,201 Support and Services ,070 Corporate Internal sales Total 4,838 5,861 5,452 8,053 Operating income Aeronautics % % % % Dynamics % % % % Electronic Defence Systems % % % % Security and Defence Solutions % % % % Support and Services % % % % Corporate Total 1, % % % % PAGE 37

38 Quarterly information 2010 and Oct Dec 2009 July-Sept Apr-June Jan-Mar Oct-Dec Sales Aeronautics 1,278 1,698 1,703 2,133 Dynamics 1,023 1, ,481 Electronic Defence Systems 905 1, ,403 Security and Defence Solutions 1,382 1,427 1,200 2,240 Support and Services ,032 Corporate Internal sales Total 5,004 5,993 5,384 7,768 Operating income Aeronautics % % % % Dynamics % % % % Electronic Defence Systems 6 0.7% % % % Security and Defence Solutions % % % % Support and Services % % % % Corporate Total % % % % PAGE 38

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