We have had good development during the second quarter with stable sales and increased order intake. Compared to the corresponding period last year, orders received increased by 30 percent.  We are pleased to note that although Covid-19 has had a significant impact on parts of our business, the impact on earnings has been small. We took action early and have adapted continuously to the changing situation.

Hans Torin, CEO of Combitech.

There has been continued substantial interest from industry and the public sector in taking advantage of digitalisation and collaboration for increased sustainability and competitiveness.

During the second quarter, for example, Combitech entered into a new collaborative agreement with Växjö Municipality, Skanska and Södra regarding the digital city through the project Crossways Växjö. During the same period, Navelink has begun operations, an inter-branch collaboration in which the industry interacts with authorities and together contributes to the development and digitisation of the maritime sector with increased efficiency, safety and sustainability of objectives.

It is a strength for us to have such a wide range of customers and assignments, which entails that not all are affected in the same way. Many of our business in areas such as medical technology, telecom, defence and large parts of the public sector segment have had extremely limited impact.

Hans Torin, CEO of Combitech.

For Combitech, it is primarily assignments in the automotive industry that have been affected by Covid-19, with paused or stopped assignments. For those consultants who have lost assignments as a result of Covid-19’s impact on customers, Combitech has invested in skills development in the form of online training.

During the period, the effects of Covid-19 in the form of travel restrictions, for example, have changed ways of working, which has brought several positive effects for Combitech. Declining travel and increased use of digital meetings, workshops and webinars have helped to streamline operations and reduce carbon dioxide emissions.

We are now looking at which positive lessons we should apply in the future, in order to maintain the good effects that have arisen in spite of the current hardships. There will be a time after Covid-19 and when it comes, we will stand stronger.

Hans Torin, CEO of Combitech.

Key events April - June 2020

• Combitech has initiated collaboration with Växjö Municipality, Skanska and Södra to jointly develop a new district in Växjö. The project, Crossways Växjö, will through sustainability, cooperation and digitalization, create a climate-neutral and innovation-promoting meeting place.
• Navelink, the new information platform for sustainable and efficient shipping, has been available to users since 1 April 2020. Combitech is supplying the infrastructure service on behalf of the newly formed industrial consortium Navelink, which consists of Kongsberg, Saab and Wärtsilä.
• In June, Combitech signed a collaborative agreement with Siemens Energy regarding 3D printing for the manufacturing industries. Working together, the companies can assist with the entire chain, from design to development expertise for mass production.
• During the second quarter of 2020, Combitech signed several new agreements in public sector operations, primarily in IT services and information security.
• During the period, Combitech’s commitments in national defence, both civilian and military, have increased. Combitech already supports a larger number of agencies in the reconstruction of the national defence.

Key figures, January - June 2020

Order intake

Order intake during the first half of the year was SEK 1493 million, an increase of 30 percent compared to the first half of 2019 (SEK 1.151 billion).

Sales revenues

Sales revenues amounted to SEK 1329 million, an increase of 2.4 percent compared to the same period in 2019 (SEK 1297 million).

Earnings and margin

Operating profit (EBIT) was SEK 101 million, which is in line with the previous year (SEK 101 million). The operating margin was 7.6 percent, compared to 7.8 percent in 2019.

Operating cash flow

Operating cash flow was SEK 482 million, compared to SEK 33 million in the first half of 2019. SEK 230 million of cash flow is attributable to temporary deferral of payment from the state due to Covid-19.

Contact

Merton Kaplan, IR Manager, Saab AB
Tel.: +46 734-18 20 71, E-mail: merton.kaplan@saabgroup.com 

About Combitech

Combitech is a Nordic solution and consulting partner with services in areas such as digital transformation, cybersecurity and national defence. We have 1900 employees, helping companies, industries and the public sector to benefit from technology and digitalization for a sustainable and secure society. To put it simply, technology with a purpose!

Combitech is an independent company in the defence and security group Saab AB.