Post on 12-Jun-2020
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Investor Relations | Q1 2016 | Issue 1
21 April 2016
INTERIM REPORTQ1 2016
Håkan Buskhe, President and CEOMagnus Örnberg, EVP and CFO
This document and the information contained herein is the property of Saab AB
and must not be used, disclosed or altered without Saab AB prior written consent.
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Investor Relations | Q1 2016 | Issue 1
GLOBAL DEFENCE MATERIEL MARKET
North America 39%
South America 2%
Europe 22%
Africa 2%
-1%
1.4%
3.0%8%
X%
X%
Share of global defence
procurement market, 2017-2021
(constant USD)
Compound annual growth rate,
2016-2020 (constant USD)
Source: IHS Group, February 2016
1)Defence market not approached by Saab2)Excl. China3)Excl. Russia
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Asia 37%5.1%
Saab sales
2015: 9%
Saab sales
2015: 6%
Saab sales
2015: 60%
Saab sales
2015: 2%
Saab sales
2015: 23%
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Investor Relations | Q1 2016 | Issue 1
HIGHLIGHTS, Q1 2016
• Sales growth in all business areas
• Dynamics secured large order; strong sales growth
• Large projects major driving factors for sales growth
PROFITABLE GROWTH
• Improved EBIT margin and very strong cash flow
• Early stage of large projects impact earnings
• Margin improvements in Dynamics and IPS
• Continued investments in T-X, radars and sensors
PERFORMANCE
• GlobalEye* introduced to the market
• Saab ranked #6 most popular employer amongengineering students in Sweden
PORTFOLIO & PEOPLE
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*Saabs new generation Airborne Early Warning & Control System
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Investor Relations | Q1 2016 | Issue 1
FINANCIAL HIGHLIGHTS, Q1 2016
4
4 800 4 614
Q1 2015 Q1 2016
MS
EK
Order bookings
5 389
6 790
Q1 2015 Q1 2016
MS
EK
Sales
210
294
Q1 2015 Q1 2016
MS
EK
Operating income
-941
2 955
Q1 2015 Q1 2016
MS
EK
Free cash flow
26%
4.3%3.9%
EBIT
margin
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Investor Relations | Q1 2016 | Issue 1
OPERATING INCOME AND CASH FLOW
-1 500
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2012 2013 2014 2015 2016, Q1
MS
EK
Operating income Operational cash flow
5
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Investor Relations | Q1 2016 | Issue 1
FOCUS 2016
• Catch the market momentum
• Efficient execution and delivery
This document and the information contained herein is the property of Saab AB
and must not be used, disclosed or altered without Saab AB prior written consent.
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Investor Relations | Q1 2016 | Issue 1
OUTLOOK STATEMENT 2016
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• In 2016, we estimate sales to be in line with Saab’s long-term goal: annual organic sales growth of 5 per cent.
• The operating margin 2016, excluding material non-recurring items, is expected to be in line with the operating margin in 2015.
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Investor Relations | Q1 2016 | Issue 1
FINANCIAL UPDATE
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Investor Relations | Q1 2016 | Issue 1
SUMMARY
• Very strong sales growth in the first quarter 2016 (reported and organic)
• Focus on execution and delivery of major projects in the first quarter 2016
• EBIT margin improved, but still impacted by investments in T-X program and radar and sensor technologies
• Operational cash flow very strong due to advances and milestone payments related to large projects
• Execution and delivery of major projects, as well as ongoing efficiency improvements initiatives in focus for coming quarters
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Investor Relations | Q1 2016 | Issue 1
FINANCIAL KEY DATA
MSEK Q1 2016 Q1 2015 Change FY 2015
Order bookings 4,614 4,800 -4% 81,175
Order backlog 111,649 59,811 87% 113,834
Sales 6,790 5,389 26% 27,186
Operating income 294 210 40% 1,900
Operating margin 4.3% 3.9% 7.0%
Net income 223 90 148% 1,402
Free cash flow 2,955 -941 -726
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• Continued strong order backlog drives sales increase
• Financial net stronger in 2016 as impact from currency
fluctuations less compared to 2015
• Free cash flow strongly improved due to advances and
milestone payments
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Investor Relations | Q1 2016 | Issue 1
ORDER BACKLOG
Order backlog duration, SEK bn
31 Mar 2016 31 Mar 2015 31 Dec 2015
2016: 18.2 2015: 15.1 2016: 21.8
2017: 17.2 2016: 11.1 2017: 15.9
2018: 12.4 2017: 6.2 2018: 12.3
2019: 11.9 2018: 4.6 2019: 11.7
After 2019: 51.9 After 2018: 22.8 After 2019: 52.1
Total: 111.6 Total: 59.8 Total: 113.8
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0
20
40
60
80
100
120
'11 '12 '13 '14 '15 Q1 '16
SE
K b
n
Order backlog
Order backlog distribution
Sweden
RoW
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Investor Relations | Q1 2016 | Issue 1
ORDER SIZE DISTRIBUTION
0
0,5
1
1,5
2
2,5
3
3,5
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
MS
EK
Small orders* Large orders Book-to-bill ratio
13
* Small orders = <MSEK 100
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Investor Relations | Q1 2016 | Issue 1
ORDER BOOKINGS
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Aeron. Dyn Surveillance S&S IPS Kockums
MS
EK
Q1 '15 Q1 '16
14
Regional distribution
Sweden
RoE
Americas
Asia
Africa
Australia etc
Major order received by Dynamics
Order bookings from small orders
(<100MSEK) increased by 14%, with a
strong increase in Business Area
Support&Services
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Investor Relations | Q1 2016 | Issue 1
SALES
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Aeron. Dyn Surveillance S&S IPS Kockums
MS
EK
Q1 '15 Q1 '16
15
Regional distribution
Sweden
RoE
Americas
Asia
Africa
Australia etc
Gripen programmes drives sales
Increased order backlog translated into
higher sales in Dynamics and Saab
Kockums
GlobalEye drives sales growth in
Surveillance and Support and Services
48%
40%
18%
17%
1%
86%
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Investor Relations | Q1 2016 | Issue 1
OPERATING INCOME
-60
-40
-20
0
20
40
60
80
100
120
Aeron. Dyn Surveillance S&S IPS Kockums
MS
EK
Q1 '15 Q1 '16
16
Turnaround in Dynamics due to higher
sales
Business Area IPS improved operating
income and operating margin due to
improvements in Avionics and Combitech
4.9% 4.1%EBIT-
margin -5.3% 3.7% 2.5% 3.1% 7.9% 7.6% 3.9% 6.1% 16.2% 5.4%
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Investor Relations | Q1 2016 | Issue 1
CASH FLOW
Jan-Mar, 2016 MSEK
Cash flow from operating
activities before changes in
working capital
595
Change in working capital 2,840
Investing activities -379
Operational cash flow 3 056
Tax and other financial items -101
Acquisitions and sale of
subsidiaries and other financial
assets
-
Free cash flow 2,955
17
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Cash flow
from operating
activities
before
changes in
working capital
Change in
working
capital
Investing
activitiesTax and other
financial items
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Investor Relations | Q1 2016 | Issue 1
FINANCIAL POSITION
Mar 2016, MSEK
Net liquidity (+) / Net debt (-), 31 December 2015 -3,127
Cash flow from operating activities 3,334
Change in net pension obligation -419
Net investments -379
Currency impact and unrealised results from financial investments 55
Net liquidity (+) / Net debt (-), 31 March 2016 -626
Net pension obligation, 31 March 2016 2,312
Total interest-bearing assets, 31 March 2016 -564
Liquidity 1,122
Equity/assets ratio, 31 March 2016 33.9
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Investor Relations | Q1 2016 | Issue 1
SUMMARY
• Focus on execution of large projects and cash flow
• Drive efficiency improvements throughout the organisation
• Continue to build order backlog in selected areas
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Investor Relations | Q1 2016 | Issue 1
www.saabgroup.com
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