Defence and security company Saab presents the results for 2012.
Results January-December 2012
• Order bookings amounted to MSEK 20,683 (18,907) and the order backlog at the end of December 2012 was MSEK 34,151 (37,172).
• Sales increased 2 per cent to MSEK 24,010 (23,498). Excluding acquisitions sales decreased 2 per cent. Exchange rates had no significant impact on sales.
• Gross income amounted to MSEK 7,190 (6,707), corresponding to a gross margin of 29.9 per cent (28.5).
• Operating income was MSEK 2,032 (2,941), corresponding to an operating margin of 8.5 per cent (12.5). This included a non-recurring item of MSEK 207 from a reduction of a potential earn-out liability. 2011 included capital gains of MSEK 1,169. Adjusted for non-recurring items the operating margin was 7.6 per cent (7.5).
• Net income was MSEK 1,539 (2,217), with earnings per share after dilution of SEK 14.33 (20.38).
• The operating cash flow of MSEK -396 (2,477) in 2012 was negative mainly as a result of a higher utilisation of, and reduction in advances and milestone payments as well as a higher net amount spent on acquisitions and divestments than in 2011. In the fourth quarter the operating cash flow amounted to MSEK 264 (217).
• Proposed dividend for 2012 is SEK 4.50 per share (4.50).
Major event after the conclusion of the year:
• Saab has announced, through a press release, the signing of an agreement with the Swedish Defence Materiel Administration (FMV) for Gripen E. The agreement includes development and modification of Gripen E for Sweden during the period 2013-2026 and a possible order for new production of Gripen E from Switzerland. FMV has today placed an initial development order of SEK 2.5 billion for operations during 2013-2014. Remaining orders from Sweden is expected in 2013-2014. The total value of possible orders under the agreement amounts to a total of SEK 47.2 billion.
Outlook Statement 2013:
• In 2013, we estimate that sales will increase slightly compared to 2012.
• 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, of 7.6 per cent.
|Gross margin, %
|Operating income (EBIT)
|Operating margin, %
|Earnings per share before dilution, SEK
|Earnings per share after dilution, SEK
|Return on equity *, %
|Operating cash flow**
|Operating cash flow per share after dilution, SEK
|* The return on equity is measured over a rolling 12-month period
|** Operating cash flow includes cash flow from operating activities of MSEK 350 (2,392)
and cash flow from investing activities excluding change in short-term investments and other
interest-bearing financial assets of MSEK -746 (85)
|*** Refer to quarterly change.
Statement by the President and CEO, Håkan Buskhe
Despite challenging market conditions throughout 2012, order bookings increased by nine per cent in the year. In the fourth quarter an order was received for our surface-to-surface missile RBS15 Mk3 and several other important orders were received during the year.
Sales grew driven by strategic acquisitions during the year. Acquisitions and partnerships are important means to create a stronger foothold in local markets and to complement our portfolio. During 2012 we made several acquisitions, for example the acquisition of HITT N.V., a leading provider of advanced software applications in the domains of navigation, traffic and logistics support for the aviation and marine markets. We also acquired a majority stake in the Norwegian consulting company Bayes Risk Management AS, which delivers services in the field of risk analysis for the oil and gas industry as well as the financial market. This acquisition expands our technical consultancy business within Combitech. In the fourth quarter we announced the acquisition of MEDAV GmbH, specialised in the application of signal processing, pattern recognition and information technology. The acquisition strengthens Saab’s product portfolio within radio monitoring and intelligence fusion systems. We also established several partnerships in local markets, such as in India where a joint venture with QuEST Global Manufacturing was announced in the fourth quarter.
We reached an underlying operating margin in line with 2011, while we at the same time increased investments in marketing and sales. In order to strengthen our technology leadership and secure future offerings in current challenging market conditions, investments in internally funded development also increased. We spent about 7.5 per cent of our sales on internally funded development in 2012 compared to about 5.8 per cent in 2011.
A new Market Area organisation was established as of 1 January 2013 in order to further strengthen our local presence and ensure a closer cooperation with our customers.
Today, we announced that we signed an agreement with FMV concerning the development and modification of Gripen E, the next generation of Gripen, Saab’s fighter aircraft. At the same time an initial development order was received for Gripen E. We are proud to continue to deliver a world leading fighter aircraft to the Swedish Air Force. The agreement includes potential orders concerning the Gripen E to a total of SEK 47.2 billion.
Despite challenging market conditions, we foresee a slight increase in sales for 2013 and an operating margin, excluding material net capital gains and non-recurring items, to be in line with 2012, excluding material non-recurring items.
Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting where CEO Håkan Buskhe together with CFO Magnus Örnberg present the year-end report 2012.
Friday, 15 February, 10.00 am C.E.T
Grand Hotel, Blasieholmshamnen 8, Stockholm, Sweden, venue: Bolinderska Rummet
If you are unable to attend in person, please visit http://www.saabgroup.com/en/About-Saab/Investor-relations/ where a live webcast of the presentation will be available together with the presentation material. All viewers will be able to post questions to the presenters. The webcast will also be available at Saab’s website afterwards.
Tel: +46 (0) 8 463 00 36
For further information, please contact:
Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on February 15 at 07.30 am CET.
Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.