Q2 2024 Saab AB Earnings Call Transcript
Key Points
- Saab AB (SAABF) reported a strong order intake for Q2, nearly SEK 40 billion, marking the second strongest quarter ever.
- The company has a record-high order backlog of SEK 183 billion, supporting future growth.
- Saab AB (SAABF) is experiencing significant growth in its Dynamics division, with a 37% increase driven by missile systems and training simulations.
- The company is heavily investing in R&D, particularly in AI and drone technology, to stay relevant in the future.
- Saab AB (SAABF) has received the SBTi's approval for its 2050 long-term emission reduction targets, making it the first defense company to achieve this milestone.
- The company reported a negative cash flow for Q2 and the first half of the year, although it expects a positive cash flow by year-end.
- There are ongoing challenges with under-absorption in the T-7 production, impacting profitability.
- Surveillance margins were affected by legacy contracts and the onboarding process of new employees, leading to higher costs.
- The company faces supply chain risks due to geopolitical tensions and sanctions, requiring continuous monitoring and adjustments.
- Saab AB (SAABF) is experiencing high corporate costs, partly due to increased IT and security expenses, as well as costs associated with its share program.
Good morning, and welcome to Saab's Q2 presentation call. I'm Merton Kaplan, Head of Investors Relation at Saab. So, this morning, we released our Q2 report and we will go through that today in the normal hour session. We will deep dive into the business side and we'll also deep dive into the financial side, and that's why I have Saab's CEO, Micael Johansson; and Saab's CFO, Christian Luiga here with me today. After the presentation, about 30 minutes, we'll have a Q&A and take your great questions. And then, I will give back the word to Micael for concluding remarks, and also present our new CFO, and we will get back to that.
And I think with that, I leave it to you, Micael, to start the presentation.
Thank you so much, Merton, and thank you for joining us this beautiful morning in Stockholm. Let me start with some highlights from the quarter. And as you've seen, our order intake really shows how successful we have been in
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