saab interim report january-march2018 · • saab has to become even more agile and focus on...
Post on 03-May-2018
220 Views
Preview:
TRANSCRIPT
Saab interim reportJanuary-March 2018
Håkan Buskhe, President and CEOMagnus Örnberg, EVP and CFO
26 April, 2018
Market and technology development
2
• Geopolitical tensions increasing
• Saab has to become even more agile and focus on shortening lead-times
• Adaptable technology crucial
Highlights January-March 2018
• Important milestone; first flight of GlobalEye*
• Strong order intake with importantmedium-sized orders
• Finland selected Saab as one of the major suppliers to the Finnish Navy Squadron2000 Mid-Life Upgrade programme• Including deliveries of New Lightweight
Torpedo
• Gripen development and operationalsupport order for 2018-2020
3
*New generation of Airborne Early Warning & Control system
GlobalEye
02468
1012
Order bookings
Jan-March 2017 Jan-March 2018
Financial highlights, January-March 2018
4
020406080
100120
Order backlog
Jan-March 2017 Jan-March 2018
539447
0100200300400500600
Operating income
Jan-March 2017 Jan-March 2018
986
-3000
-2000
-1000
0
1000
2000
Operational cash flow
Jan-March 2017 Jan-March 2018
-2,211
BSEK
BSEK
MSE
K
MSE
K
109.9 105.79.7
6.1
Order booking value from major orders received
EBIT-margin,% 5.87.1
Project execution keySaab currently has 4 major developmentprojects in the order backlog:
• Gripen E to Sweden Order received in 2013 with final delivery 2026.
• Gripen NG to BrazilOrder received in 2015 with final delivery 2024.
• Submarine A26Order received in 2015 with final delivery 2024.
• GlobalEye to the United Arab Emirates Order received in 2015.
5
GlobalEye
Strong market position for Gripen
• High interest in Gripen world-wide• Exceeds the requirements of modern air
forces• Highly capable, multi-role and cost-
efficient• Available, reliable and proven• Increased speed of investment in system
in order to prepare for future business opportunities
6
Gripen equipped with RBS15 Air-to-Surface anti-ship missile
Gripen E: The latest and most modern fighter aircraftsystem under development in Europe today
Gripen is operated by 6 nations, on 3 continents
Development for future needs
7
• Saab partner in EU unmanned maritimesituational awareness project, OCEAN2020
• Saab inaugurated a new developmentcentre in Finland
• Saab Digital Air Traffic Solutions and EntryPoint North LOI* for strategic partnership
• Strategic collaboration agreement signedwith University of Lund, Sweden
• Strong focus on Cyber security
* LOI = Letter of Intent
Sales growth in 2018 is expectedto be in line with Saab’s long-term financial goal: annual organicsales growth of 5 per cent.
The operating margin in 2018, excluding material non-recurringitems, is expected to improvecompared to 2017, bringing Saab a further step closer to its financialgoal: an operating margin of 10 per cent.
8
Outlook
The T-X advanced trainer aircraft, developed in partnership with Boeing
Financial summary, January-March 2018
• Order intake of medium-sized orders continued strong • Sales increased organically by 2 per cent• First quarter 2017 exceptionally strong due to large orders
received• Operating margin at stable level of 5.8 per cent• Fewer deliveries and a changed product mix compared to
2017 as well as a changed project margin in a few smaller projects in 2018
• Financial net impacted by exchange rate fluctuations in market valuation of tender portfolio
• Operational cash flow in line with plan, impacted by build-up of working capital
• Equity/asset ratio strong, above 30 per cent
10
MSEKJan-
March 2018
Jan-March2017
Change, %
Order Bookings 6,135 9,701 -37
Order Backlog 105,712 109,884 -4
Sales 7,766 7,586 2
Operating Income 447 539 -17
operating margin, % 5.8 7.1
Net Income 251 396 -37
Operational Cash Flow -2,211 986
Free Cash Flow -2,411 897
Order backlog duration
11
31 March 2018 Year End 2017 31 March 2017 2018: 20.7 2018: 25.3 2017: 20.1
2019: 21.8 2019: 20.0 2018: 20.2
2020: 17.7 2020: 17.0 2019: 15.2
2021: 17.1 2021: 17.0 2020: 15.5
After 2021: 28.4 After 2021: 27.8 After 2020: 38.9
Total: 105.7 Total: 107.2 Total: 109.9
Aeronautics46%
Dynamics11%
Surveillance14%
S&S11%
IPS10%
Kockums8%
Order backlog per Business Area
Sweden37%
Rest of Europe
10%North America4%
Latin America
34%
Asia11%
Africa1%
Australia etc3%
Order backlog per Region
BSEK
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
Small orders* Large orders Book-to-bill ratio**
60%
40%
January-March 2018
MSE
K
Large orders
*Small orders = <MSEK 100**Book-to-bill ratio calculated as 12 months rolling
Small orders
12
• Order bookings at good level, consideringlarge orders in 2017
• Good increase in order bookings of medium-sized orders (above MSEK 100 in size)
• Order bookings for small orders stable(below MSEK 100 in size)
• Major order received for operational and development support for Gripen from Sweden
• Order backlog continued strong
0
1 000
2 000
3 000
4 000
5 000
Aeronautics Dynamics Surveillance S&S IPS Kockums
Order bookings
Jan-March 2017 Jan-March 2018
Order bookings per business area
MSE
K
0
10
20
30
40
50
60
Aeronautics Dynamics Surveillance S&S IPS Kockums
Order backlog
31 March 2017 31 March 2018
BSEK
Order intake in January – March 2017:Dynamics – Order for the development and production of the next generation anti-ship missile system to Sweden, BSEK 3.2Surveillance and Support and Services – an order within the Airborne Early Warningand Control segment (AEW&C), BSEK 2
13
• Sales, 2 per cent organic growth
• First quarter 2017 had exceptionallystrong sales due to 2 major orders
• Growth in 2018 driven by strong growthin Gripen as well as airbornesurveillance operations
• Dynamics had fewer deliveries in the period
• Support and Services saw strong in firstquarter 2017 due to a large order
0
500
1 000
1 500
2 000
2 500
Aeronautics Dynamics Surveillance S&S IPS Kockums
Jan-March 2017 Jan-March 2018
Sales per business area
14
+22%
-8%
+24%-21%
+1%
+10%
MSE
K
Operating income per business area
15
MSE
K
• Operating margin at 5.8 per cent
• Aeronautics good sales increase and lower T-X-spend
• Fewer deliveries in Dynamics and a changed product mix compared to 2017
• Surveillance changed the project marginin a few smaller projects in 2018
0
50
100
150
200
Aeronautics Dynamics Surveillance S&S IPS Kockums
Jan-March 2017 Jan-March 2018
EBIT-margin,% 8.04.8 4.411.7 3.97.3 13.09.7 1.94.0 5.65.27.3
Investments in development
0
500
1 000
1 500
2 000
2 500
3 000
Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 March2018
Capitalised development costs
16
• We see great interest in Saab’s productportfolio
• Interest in our new generation solutions very high
• Acceleration of investments in developing Gripen for the future, capitalised development costs in Q1 2018
• Increased capitalisation as solutions arein industrialisation phase
• Capitalised development cost is mainlyrelated to GlobalEye* and Gripen
*Next generation of Airborne Early Warning and Control solution (AEW&C)
MSE
K
Acquisitions and Sale of
Subsidiaries and Other Financial
Assets
MSE
K
17
Free cash flow
-3 000
-2 500
-2 000
-1 500
-1 000
-500
0
500
1 000
1 500
Tax and otherfinancial items
Investingactivities
Change in working capital
Cash flow from operating
activities beforechanges in
working capital
Change in working capital:Contract assets and liabilities -2,588Inventories -474Other current receivables 561Other current liabilities -15Provisions -48
-2,564
Cash flow from investing activities:Intangible assets -271Tangible assets -326Other 2
-595
MSEK
Net debt, 31 December 2017 -1,834
Cash flow from operating activities -1,810
Change in net pension obligation -50
Net investment -595
Currency impact and unrealised results from financialinvestments
-50
Net debt, 31 March 2018 -4,339
Net pension obligation, 31 March 2018 2,696
Total interest-bearing assets, 31 March 2018 -489
Net debt excluding interest-bearing receivables and net pension obligation
-2,132
31.5%Equity/Assets
ratio
136.6Equity per share
(SEK)
18
Financial position
COMPANY RESTRICTED | NOT EXPORT CONTROLLED | NOT CLASSIFIEDYour Name | Document Name | Issue 1
• Continued focus on execution of large projects– project management
• Build order backlog in selected areas
• Drive efficiencyimprovements throughoutthe organisation
Focus 2018
top related