Saab Annual Report 2010

1. ANNUAL REPORT 2010
SECURITY IN A CHANGING WORLD

2. CONTENTS THIS IS SAAB
Changing conditions for the defence industry 2 Saab serves the global market with world-leading solutions,
Market dimensions 4
The CEO and Chairman in a conversation 6
products and services ranging from military defence to civil
Business concept, vision and mission 9 security. With operations and employees on every continent,
Driving forces and trends in the market 10 Saab continuously develops, adapts and improves new tech-
Long-term goals 12
nology to meet customers’ changing needs. Its most important
Goal attainment in 2010 13
Saab’s starting position 14 markets are Europe, South Africa, Australia and North America.
Employees 15
Profitable growth 16
Saab has around 12,500 employees. Annual sales amount to
More efficient operations 18 around SEK 24 billion, of which about 20 per cent is related to
Focused portfolio 20 research and development.
Product development 22
Saab’s core competence 24 Saab’s operations are divided into five business areas: Aero-
Market segments 26 nautics, Dynamics, Electronic Defence Systems, Security and
Markets by region 28
Defence Solutions, and Support and Services.
Financial review 2010 32
Business areas 34
Sustainability at Saab 44
Risks and risk management 56
Financial statements 60
Notes 72
Corporate governance report 126
The Saab share 138
Financial information 2011 and contact details 144
While every care has been taken in the translation of this annual report,
readers are reminded that the original annual report, signed by the
Board of Directors, is in Swedish.
ORGANISATION
CEO, EVPS & COO
MARKET-
GROUP STAFFS ORGANISATION
Shared Marketing &
Business
functions
Development
Aeronautics Dynamics Electronic Security and Support and Combitech*
Defence Defence Services
Systems Solutions
* Combitech is reported as part of Corporate.
STRATEGIC PRIORITIES
Profitable growth
Evaluate current positioning and identify growth opportunities.
PERFORMANCE
Performance
PROFITABLE
PORTFOLIO
GROWTH
Work with efficiencies and continuous improvements.
Focused portfolio
Adapt the portfolio to areas with strong competitive advantages and growth opportunities.
People PEOPLE
To be an employer of choice in the global market.
Our employees are the backbone of our offering and our growth.

3. A HISTORY OF ADVANCED TECHNOLOGY AND INNOVATION
1941 1948 1979 1990 1993 2002 2005 2006 2008
First B17 delivered Tunnan – first flight First order – RBS 15 First laser simulator BT46 First Gripen delivered First contract NLAW Contract for Neuron Saab 2000™ AEW&C First flight for Gripen Demo
Saab Automobile Saab acquires Saab acquires Saab acquires
• 1937 Saab is founded • 1990 independent company
• 2000 Celsius
• 2005 Grintek
• 2006 Ericsson Mircowave Radar (EMW)
1646 1894 1948 1998 1950– 1970– 1980– 1990–
Bofors Järnbruk is founded Alfred Nobel acquires Bofors First order for Carl Gustaf StriC in operation Development of fighter radar Development of GIRAFFE Development of ARTHUR Sea Giraffe AMB is launched
Sweden:
38% of sales (31)
Number of employees: 10,372 (10,916)
Rest of Europe:
21% of sales (24)
Number of employees: 432 (408)
Africa:
12% of sales (14)
Number of employees: 1,141 (1,171)
Asia:
15% of sales (19)
Number of employees: 31 (14)
Americas:
9% of sales (8)
Number of employees: 211 (272)
Australia and other countries:
5% of sales (4)
Number of employees: 349 (378)

4. SAAB 2010
IMPORTANT EVENTS IN 2010
• In March, Saab received an order from the Swedish Defence Key financial ratios (MSEK) 2010 2009
Materiel Administration (FMV) for the development of the exist-
Sales 24,434 24,647
ing Gripen fleet. The order value amounted to SEK 2 billion, split EBITDA 2,187 2,598
over four years. EBITDA margin, % 9.0 10.5
• During the second quarter, the Board of Directors received Operating income 975 1,374
requests from shareholders to convert 3,347,180 Series A shares in Operating margin, % 4.0 5.6
Saab AB to Series B shares. As a result of the conversion, the total Adjusted operating margin, % 6.5 5.4
number of votes in the company was reduced from 156,439,071 to Non-recurring items -602 50
126,314,451. The total number of registered shares in Saab AB is Income after financial items 776 976
109,150,344, of which 1,907,123 are Series A shares and 107,243,221
Net income 454 699
are Series B shares.
Earnings per share, SEK (after dilution) 3.97 6.28
• The contract between Saab and OKG Aktiebolag on the delivery
Dividend per share, SEK 3.501) 2.25
of perimeter security for the Oskarshamn nuclear power plant
Return on equity, % 4.1 7.0
was terminated during the first half-year. Saab’s income was
Equity/assets ratio, % 39.1 35.1
charged with MSEK 290 in costs related to the contract.
• In September, Håkan Buskhe took office as the new President and Order bookings
Order backlog at year-end
26,278
41,459
18,428
39,389
CEO of Saab. He was previously President of E.ON Sweden and
CEO of E.ON Nordic. The previous President and CEO, Åke Total research and development (R&D)
expenditures 5,008 4,820
Svensson, remains a member of Saab’s Board of Directors.
• In October, Saab received an order for an airborne surveillance Internally financed R&D
No. of employees at year-end
1,203
12,536
1,194
13,159
system worth more than SEK 4.5 billion. The order comprises the
delivery of the Saab 2000 AEW&C (Airborne Early Warning & Share of women, % 22.0 22.4
Control) system, which comprises a Saab 2000 aircraft equipped Academic degree, % 51.4 48.5
with the advanced ERIEYE radar system. The order also includes Sick leave2), % 2.1 2.3
ground equipment, logistics and support services. 1) Proposal by Board of Directors
2) Saab in Sweden
• As a part of a long-term strategic adjustment to changing market
conditions, Saab decided in November to reorganise the opera-
OUTLOOK 2011
tions of the Dynamics business area. Notice was served to more
than 200 employees. Moreover, efficiency improvements were In 2011, we estimate that sales will decline slightly compared to 2010.
launched in the Electronic Defence Systems business area and in We expect the operating margin to increase slightly in 2011 compared to the
Corporate functions. Costs of MSEK 519 related to these meas- adjusted operating margin in 2010.
ures were charged against operating income in the fourth quarter
2010. The measures are expected to positively affect operating
income by about MSEK 200 on an annual basis with a full effect
from 2012.
• At the end of the year, Saab received an order from FMV for six
Gripen aircraft intended for the Royal Thai Air Force. The order
is worth about SEK 2.2 billion.
SAAB B, 1 JANUARY 2006-31 DECEMBER 2010 EARNINGS AND DIVIDEND PER SHARE, SEK
250 20
200
15
150
10
8,000
100 6,000 5
4,000
0
2,000
50 -5
2006 2007 2008 2009 2010 2006 2007 2008 2009 20101)
1) Proposal by Board of Directors
Series B share
OMX Stockholm_PI, SEK Earnings after dilution
Thousands of shares traded, incl. off-floor trading Dividend per share

5. OUTLOOK
CHANGING CONDITIONS FOR
THE DEFENCE AND SECURITY
INDUSTRY
The long-term geopolitical trend toward supranational A world of alliances requires intergration
structures where governments work together and a In terms of security policy, these changes have essentially made indi-
security doctrine based on common interests and re- vidual governments less autonomous and increasingly forced them
to collaborate strategically and operationally. This has major impli-
sponsibilities are fundamentally changing conditions for
cations for the defence industry in terms of both where development
the defence industry. Financially strapped governments work is focused and how it is financed. Unique, solitary weapon sys-
and growing civil security needs favour flexible, cost- tems are becoming less relevant in a world of alliances that demands
effective enterprises like Saab. integration and coordination.
Global defence contractors cannot expect to fund their develop-
In the last 50 years, the world order and political system have incor- ment to the same extent with defence appropriations from individ-
porated greater diversity and larger network structures and seen a ual governments and instead will have to finance more of the work
shift in power and initiative to new players. International alliances – on their own or through international collaborations. To participate
political, economic and military – increasingly focus on protecting in international projects, it is vital to have cutting-edge world-class
common interests and the functions in a global flow-based society, technology, making this one of the defence industry’s biggest chal-
that we are all dependent on. Multilateral civil and military coalitions lenges. This requires a well-focused portfolio and a large external
are becoming more common – within, outside and between the network. No one can be the best at everything.
major political, economic and military blocs. To a growing degree, we
live by a security doctrine where common interests outweigh individ- Need for cost-effective solutions
ual interests and where we share responsibility for defending these In the former Western world, financial struggles are forcing many
interests. Globalisation and economic integration are generally lead- countries to slash their defence spending and be more efficient in
ing to a shift in political power and economic resources from the their purchases. This is reinforcing the current trend of buying fully
national level upward to the supranational and downward to the local developed, proven weapon systems with documented performance,
level. Far-reaching economic alliances between countries, major cit- which others also use and can be incorporated into larger co-ordi-
ies, NGOs and transnational companies today are considered impor- nated efforts. For the defence industry, this makes it necessary that
tant actors in the international political system. new programmes are commercially viable in multiple markets,
Technological developments are also creating change, and not which in turn requires open markets with fair competition. The
only in traditional armed conflicts where information and commu- defence market is the only one in the EU that has not fully adopted
nication systems have long been of critical importance. To a growing the Treaty of Rome’s principle of free movement of goods, services,
extent, information and information systems are becoming weapons capital and people, although progress is steadily being made. Eco-
and targets. The digitalisation of our world is creating new conflict nomic development is also driving this trend in the right direction.
zones and patterns that go beyond traditional antagonists. Conflicts Complex, advanced defence systems are also becoming more
can arise between nations and companies, as was the case between expensive to develop. Even the US, which has by far the world’s larg-
China and Google in early 2010, or between nations and organisa- est defence budget, has recently announced that it may mothball a
tions, which happened at the end of the year between the US and number of costly weapons projects and instead utilise existing tech-
WikiLeaks. In both cases, the conflict revolved around transparency nologies and systems to cut spending. It will buy more proven prod-
and the extent to which it benefits common interests. Both cases also ucts and systems and may consider dealing more with international
illustrate how technology is erasing traditional borders. suppliers if they offer better value for money.
2 SAAB ANNUAL REPORT 2010

6. OUTLOOK
Today we have to be able to protect national borders as well as global and regional trade as well as securing functions in the society and flows of people,
goods, services, information and capital.
A growing number of countries and international alliances simply KFOR) and the African Union (Darfur and Somalia). The EU also
want more bang for the buck. The demand for co-ordination and maintains two battle groups, ready to deploy to crises anywhere in
cost effectiveness favours flexible, cost-effective industrial compa- the world. During the first half of 2011, the Nordic Battle Group
nies like Saab. The same applies to the expanding security needs of (NBG) is one of them. Under Swedish leadership, 2,000 troops from
civil society. The gray zone between civil and military security is also Sweden, Finland, Norway, Estonia and Ireland will be available to
growing as “inside” threats in the form of terrorism and sabotage as the EU on short notice for everything from humanitarian actions to
well as overloaded critical systems become more apparent and more military offenses. The Nordic defence forces also have a stated aim to
real than traditional “outside” threats. collaborate more as part of the Nordic Defence Co-operation. In
January 2011, the Swedish defence had a total of 673 troops (against
International joint forces given a broad mandate 735 at year-end 2009) in international joint forces, of which KFOR
The shift toward net-centric defence and international joint forces (Kosovo) and ISAF (Afghanistan) were clearly the largest.
is best achieved when emergency preparedness is co-ordinated Defence and protection of joint forces – military, police and civil
through as broad an international mandate as possible. Preparedness – has become an important new development area and market seg-
applies to a variety of emergencies: threats to the economy and the ment in the defence industry.
hubs it is based on, but also threats to public health, the environment In the final analysis, it is a question of developing and supporting
and our common values. Joint efforts require not only that the sys- the ever-present and ever-important mission of protecting people
tems used can be co-ordinated, but also controlled centrally. and society from various threats and risks. This has been Saab’s mis-
The UN currently has 17 peacekeeping missions around the sion since it was founded nearly 75 years ago.
world, including those led by regional players such as the EU (Chad,
Congo, Bosnia, Herzegovina, and Macedonia), NATO (ISAF and
SAAB ANNUAL REPORT 2010 3

7. MARKET DIMENSIONS
MARKET DIMENSIONS
Understanding the development of, and overlap between, points such as ports, airports, train stations, banks, computer serv-
the two main dimensions of security policy is essential to ers, distribution centres and loading terminals are centered.
understanding the opportunities, breadth and potential in Cities cannot be allowed to become too vulnerable to disruptions
and breakdowns caused, for example, by insufficient capacity and
Saab’s market.
maintenance of critical systems, natural disasters, criminality, sabo-
The purpose of traditional security policy is to maintain national tage or terror. Urban security, efficiency and sustainability are vital to
sovereignty by defending borders, a market Saab is well-positioned society’s functionality. The three operating areas unify and constitute
in. The purpose of the new dimension, which stresses the vulnerabil- the lowest common denominator between the two security dimensions.
ity of civil society, is to safeguard society’s essential functions by pro- The areas of training, command and control, and maintenance
tecting critical flows and infrastructure. are shown as “links” between the circles in the schematic figure
The two market dimensions face different conditions and work in below. For Saab, the links originate in a traditional border-protecting
different ways. military context, where Saab has proven its innovative capabilities.
The first market is dominated by national governments and mili- But they are just as relevant and applicable in an urban-centered
tary organisations, while the second is dominated by cities, compa- flow-protecting context. Aeronautics and defence as well as urban
nies, organisations and individuals. Cities are the most flow-inten- development and security fit well together, and Saab’s experience
sive locations on the planet, and it is there that key infrastructure working with complex systems is a big advantage in both markets.
4 SAAB ANNUAL REPORT 2010

8. The new market structure – macro development leads to a broad security concept
DEFENDING TERRITORY
There are three lowest common denominators between the two
security concepts. This creates momentum between markets and technology .
TRAINING C4I SUPPORT &
SERVICES
SECURING FUNCTIONS IN THE SOCIETY
SAAB ANNUAL REPORT 2010 5

9. THE CEO AND CHAIRMAN IN A CONVERSATION
Conversation between Chairman Marcus Wallenberg (MW) and CEO Håkan Buskhe (HB).
ADVANTAGES UNDER NEW
COMPETITIVE CONDITIONS
The conditions Saab faces in its operations continue to HB: A growing number of customers in the defence market want to
change, as they do for other defence companies. Fiscal buy the best solutions available regardless of the country of origin.
Smaller national budgets mean that more companies that previously
challenges are forcing many governments to cut their de-
relied on the defence authorities in their homelands now have to go
fence spending. At the same time, international defence out and compete in the international market. This requires, however,
alliances and civil security needs are increasing. Chair- that their defence systems can be integrated into larger systems and
man Marcus Wallenberg and CEO Håkan Buskhe work in international alliances. This is leading to tougher competi-
discuss what this means for Saab. tion and changing the competitive landscape.
MW: At the same time that we are seeing greater competition, there
MW: The global economy improved in many respects in 2010, but is a risk of protectionism when governments have to explain to their
there are still major structural problems that directly and indirectly citizens how their tax money is being spent. This is one of the big
affect Saab’s ability to conduct business. Many countries in the West, unresolved questions.
especially in Europe, have large debts and fiscal deficits, which is HB: The overarching, long-term change that is affecting Saab’s
increasingly affecting how they think strategically about their opportunities internationally is the growing importance of emerging
defence investments. In an effort to get their budget deficits under economies. Traditionally we have focused on the West, but defence
control, it is inevitable that more nations will start to reassess their spending there is shrinking. We are therefore turning to countries
defence budgets. such as India and Brazil, where budgets are expected to increase.
HB: One current trend that is becoming more prevalent is the coor- MW: To a growing extent, the global economy is being driven by
dination of defence resources between countries and political alli- demand from emerging economies, which is leading to more com-
ances in order to maintain capabilities at the same level without petition for natural assets from a global perspective. This is creating
increasing costs. In Europe, the extensive military alliance entered new conflicts of interest and of course affects defence needs as well.
into by the UK and France in 2010 and the Nordic cooperation pre- HB: The world’s oceans are playing a greater strategic role in main-
viously established through NORDEFCO are examples of collabora- taining production, trade and demand from growing populations.
tive initiatives. This has changed threat scenarios and placed more emphasis on
MW: Shrinking investments are forcing countries to buy cost- maritime security.
effective solutions that offer value for the money – in this case, MW: Global security conditions have become more complex, espe-
defence capabilities. cially considering developments in North Africa and the Middle
6 SAAB ANNUAL REPORT 2010

10. THE CEO AND CHAIRMAN IN A CONVERSATION
Marcus Wallenberg, Chairman of the Board, and Håkan Buskhe, President and CEO.
East. It is easy to forget that both are key regions
not only to the world’s energy supplies but also to
“From an historical perspective, Saab
global trade. The Suez Canal remains the world’s has been an innovation powerhouse for
most important trade route, carrying around ten
per cent of seaborne trade. Developments in these advanced Swedish technology, and it is
regions are critical to the global economy going
forward. High oil prices may drive inflation,
important that this capacity remains in
which in turn is raising interest rates. Serious dis- place – for both Saab and Sweden.”
ruptions to energy supplies and global trade could
lead to new crises.
MW: Our aim is to significantly strengthen our international market
HB: It is clear that we live in a globalized world. As security condi- coverage during the next five-year period and gain a leading position
tions change, our customers’ needs change as well. Consequently, we in terms of how customers feel about our local connection and presence.
have to strengthen our local and regional presence and continue the
HB: Growth may be supported by acquisitions. Increased competi-
international expansion.
tion is leading to consolidation pressures, and we may take an active
MW: We have a goal of five per cent organic growth per year from role in this process if the right opportunities arise. Our portfolio
2011, and this means that Saab will grow primarily outside Sweden. strategy and strong balance sheet give us enough room for selected
While we anticipate a larger share of our growth opportunities in acquisitions in the years ahead. They will strengthen our core offer-
developing regions such as India, Asia and South America, we also ings and international presence. We acquire basically sound units
believe that we can gain market share in the West thanks to our com- that can improve our market position and will eventually contribute
petitive offerings. to organic growth.
HB: One of our main strategic priorities is to organise marketing MW: To maintain such investments, Saab must increase its profitability.
and sales regionally and locally. We have been operating in the US
HB: Saab’s strategy has been carefully reviewed and lies firm. Since
for many years. Saab is currently one of the twenty-five largest defence
September we have defined the main features in order to concentrate
and security companies in the world, and probably one of the three or
on implementation. It is important to keep momentum going and
four top in terms of international market coverage. We have sales in
drive and implement on our strategy. We will create profitable
around 90 countries and our own presence in around 30.
growth through a focused portfolio and by implementing efficien-
SAAB ANNUAL REPORT 2010 7

11. THE CEO AND CHAIRMAN IN A CONVERSATION
“ We have lived with cost constraints for some time, and today
it isn’t only the performance of our products that is world
class. Few, if any, our of competitors can beat us in terms
of cost effectiveness.”
cies at every level with committed, qualified employees. We have to since the Berlin wall fell. Today many of our competitors find them-
create a culture of execution, where we trust each other. This requires selves in a situation where their countries are spending less on
a common vision of where we are going and an understanding of defence, and they have to compete internationally more than before.
what we have to do. This gives us a head start in terms of both presence and efficiency.
MW: Focusing is critical, since it is so hard to get an overview of this We have lived with cost constraints for some time, and today it isn’t
complex industry. only the performance of our products that is world class. Few, if any,
of our competitors can beat us in terms of cost effectiveness.
HB: We are clearly focused on the regions and selected markets
where we want to expand our local presence. In addition, we are MW: Gripen is a good example of this. In addition to its operating
working continuously to develop our portfolio in a way that capabilities, which are just as good as if not better than the competi-
strengthens areas where we have leading technology and invest in tion, we are far more cost-effective throughout the supply chain: in
new areas that we feel can improve our offerings and core competen- development, production, delivery and operations. This is more
cies. Our systems know-how is unique, and the ability of our obvious from a lifecycle perspective.
employees to integrate solutions is our core competency. This can HB: The implementation of our efficiency programme – the Billion+
never be compromised. On the contrary, we have to keep our cutting programme – has led to further improvements, and underlying prof-
edge, which we can do by always listening to and working with cus- itability continued to rise in 2010. We will not lose our focus on con-
tomers to create value for them and, by extension, for our sharehold- tinuous efficiency. This will be decisive to compete going forward.
ers and our own organisation. We must constantly increase efficiencies in our core business.
MW: Saab is a pioneer in many respects. From an historical perspec- MW: This strong focus on efficiencies has improved our underlying
tive, it has been an innovation powerhouse for advanced Swedish profitability and generated very strong cash flow. As we look ahead,
technology, and it is important that this capacity remains in place – we have to keep our eye on market developments – at the same time
for both Saab and Sweden. Many innovations generated here have that delivering on our financial objectives and Saab’s strategic priori-
later been further developed outside Saab and today employ tens ties is crucial in order to remain competitive.
of thousands of people. It is important to keep this in mind when HB: Our core competence is the ability to integrate our own and
looking at Saab from an overarching perspective. others’ systems and components in complex, cost-effective solutions.
HB: Innovation means not only coming up with new ideas but This drives Saab’s employees every day. I look forward to working
applying them in practice. Our strength is that we have both techni- together to improve our competitive strength in 2011 and deliver on
cal and social capabilities. Social systems and co-operation between the goals we have set.
different cultures are extremely important and contribute to
improved efficiency. Personal relationships are an important part in
succeeding with complex development projects.
MW: This is especially true of international industrial alliances, which
are critical in order to deliver on large, complex systems orders in the
best way, and then get them to work on an operating level. To a large
extent it involves co-operation and social engineering.
HB: We started going international many years ago, when we real- Marcus Wallenberg Håkan Buskhe
ized that our growth opportunities were outside Sweden, especially Chairman President and CEO
8 SAAB ANNUAL REPORT 2010

12. SAAB’S MISSION
OUR MISSION ESSENTIALLY
IS TO PROVIDE SECURITY
The demand for security on the part of people, society and companies is the ultimate driving
force in our business.
Security needs and threat scenarios have changed in significant respects as our global
society develops new structures and trade patterns.
Our business concept
Saab constantly develops, adopts and improves new technology to meet changing customer
needs. Saab serves the global market of governments, authorities and corporations with prod-
ucts, services and solutions ranging from military defence to civil security.
Our vision
It is a human right to feel safe.
Since Saab was started, we have strived to keep society and people safe. It is a basic human
need to feel safe and, as we see it, a human right. Through systems and solutions that increase
security, we can make this possible.
Our mission
To make people safe by pushing intellectual and technological boundaries.
Our mission describes how we work to achieve our vision. By improving and updating technolog-
ical systems and solutions, we increase security in society, for its citizens and for those whose job
it is to maintain security. We also contribute insight into how threats to our security change and
develop innovative new solutions that make society secure.
SAAB ANNUAL REPORT 2010 9

13. DRIVING FORCES AND TRENDS
DRIVING FORCES AND TRENDS
IN THE MARKET
Threat scenarios and changing security needs, more than The civil market is directly dependent on the economy. Fluctuations
anything else, are driving development in Saab’s markets. in the economy affect the size of trade volumes and the overall flow
This applies to the defence sector and civil society, as well of goods, people, capital and data around the world – as well as the
need for security. The civil aviation market is highly dependent on
as the growing gray zone between them.
the economy, but also extremely sensitive to security threats.
Macroeconomic factors and geopolitical developments ultimately DEFENCE SPENDING 2009
create the framework for Saab’s business. The defence market tradi-
Defence
tionally has little co-variation with the global economy. Instead, spending
political developments are the decisive factor globally, regionally and Rank Country (USD billion) Global share (%)
locally. Fiscal constraints are obviously affecting defence spending,
1 USA 661.0 43.2
however. 2 China 100.0 1) 6.5 1)
A new economic world order is taking shape in which the BRIC 3 France 63.9 4.2
countries (Brazil, Russia, India and China) in particular are gaining 4 UK 58.3 3.8
strength. This has not been reflected to a great extent in the distribu- 5 Russia 53.3 1) 3.5 1)
tion of defence spending in recent years. In 2009, total defence 6 Japan 51.0 3.3
spending increased the most in Asia and the Pacific Rim. Neverthe- 7 Germany 45.6 3.0
less, the US still accounted for the largest share (43 per cent) of the 8 Saudi Arabia 2) 41.3 2.7
global total defence spending in 2009. On the other hand, there is 9 India 36.3 2.4
10 Italy 35.8 2.3
expected to be a shift going forward from traditional to emerging
11 Brazil 26.1 1.7
markets in terms of total global expenditures, although this will level
12 South Korea 24.1 1.6
off in the long term, according to SIPRI.
13 Canada 19.2 1.3
Growing imbalances in international trade are creating complex 14 Australia 19.0 1.2
new dependencies and conflicts. At the same time, the long-term trend 15 Spain 18.3 1.2
is toward stronger alliances for peacekeeping and economic develop- 16 Others 277.8 18.1
ment purposes, which is increasing security-oriented demand. Joint Total 1,531.0 100.0
commitments to keep conflict zones under control are having a similar Defence spending at constant prices and exchange rates
Source: SIPRI Yearbook 2010
effect. Many of the world’s conflicts have lasted for long periods. A large 1) Estimates.
2) Figures for Saudi Arabia include costs for civil security..
percentage of all armed activities is in these regions, as are preparations
for armed conflict by both regional and international players.
The US has retained its role as a geopolitical leader and its impact Supranational initiatives by the UN, the EU and the African Union
on the global security arena. Ideologies have declined in importance (AU), among others, and other political alliances steer and govern a
as a driver of global conflict scenarios, while religious fundamental- large part of the defence and security-oriented civil market. Climate
ism has grown. change is an area where the EU has taken important initiatives. The EU-
As the world’s population continues to grow along with demand for financed research project Clean Sky, which is designed to promote
a higher standard of living, global competition for commodities and greener air transports, and SESAR, whose purpose is to modernise traf-
resources, especially fossil fuels, could become an increasingly impor- fic in the European airspace and reduce its environmental impact, are
tant driver of conflicts (see, e.g., “A Strong Britain in an Age of Uncer- two examples. A number of initiatives have also been launched at the
tainty: The National Security Strategy”, October 2010). In the long run, nation state level within the EU. In November 2010, France and England
access to food and fresh water could also potentially lead to conflicts. signed an ambitious defence and security treaty, which entails a far-
10 SAAB ANNUAL REPORT 2010

14. reaching defence co-operation. Sweden and Germany have launched a defence business is also limited by export restrictions in a number
joint initiative to distinguish between defence areas which should of markets.
remain strictly national within the EU and areas where alliances and Public opinion influences security policy in Sweden and many other
shared resources can increase the efficacy and cost-effectiveness of the countries. Sweden’s participation in peacekeeping missions has received
European civil and military defence. greater attention due to the deaths of a number of Swedish soldiers in
Nation state activity on a governmental level also has a major 2010. Terrorist activities in Sweden have also raised awareness about
effect on the volume of defence business, especially for large strategic civil security. Another aspect that has impacted security policy in recent
systems such as fighter jets. At the same time, the trend in the tactical years is that public acceptance of civil security measures has come into
area is toward increased commercialisation, including the further conflict with the need to protect personal privacy.
development of proven products and systems. In Saab’s case, its
MEGATRENDS – A WORLD IN CHANGE
New security needs in a transaction society country of origin and want it delivered on short notice. As a result, a larger
The development of a global transaction society requires the protection of share of research and development must be self-financed by the defence in-
critical flows and hubs. The latter include major facilities and systems: air- dustry. This is a worldwide trend.
ports, harbours, railways, highways and energy systems. The focus is on
Need for broad, deep, long-term solutions
functionality, efficiency and security, which requires advanced monitoring of
Customers in both the military and civil markets increasingly want broad-
operations and external threats.
based, integrated solutions with more service content. The trend is shifting
New forms of co-operation toward full operational and functional commitments covering the entire life-
Continued global integration and new international structures have led to cycle, where solutions are evaluated not only based on performance but also
more cross-border and supranational (UN, EU, etc.) co-operation with a shift in terms of the cost to own and operate. Outsourcing of activities that had
toward net-centric defence and international joint forces. Civil and military previously been performed internally is becoming increasingly common,
alliances are becoming more common – within, outside and between the in-cluding in the military field. This also increases demand for education,
major political, economic and military blocs – and require open systems and training, support and maintenance.
coordination, where a larger share of development work is done collabora-
Local presence is decisive
tively. At the same time, it is becoming more common that large develop-
Despite the trend toward international alliances, the need for a strong local
ment projects are conducted as part of public-private partnerships.
presence is crucial to success in both the military and civil markets. Custom-
Higher percentage of self-financed R&D ers want integrated solutions from companies that understand local condi-
The increase in international alliances and system coordination at the same tions. This significantly increases opportunities to be selected as a supplier
time means that the defence industry can expect to finance less of its devel- and, no less importantly, have a portion of their development financed through
opment work through national defence budgets. Defence authorities in- defence appropriations or gain access to local product development.
creasingly want access to the best the market has to offer regardless of
SAAB ANNUAL REPORT 2010 11

15. SAAB’S LONG-TERM GOALS
LONG-TERM STRATEGIC AND
FINANCIAL GOALS
Saab’s strategy is focused on four Portfolio
areas: profitable growth, efficient oper- To achieve our growth target, we have to invest partly in product
ations, a focused portfolio and our peo- innovation and partly in renewal and upgrades of existing products
PERFORMANCE
PROFITABLE
PORTFOLIO
and systems. Investments in the portfolio will be prioritised in areas
GROWTH
ple. We create long-term value by
where we already have competitive technology and/or a competitive
working to accomplish our strategic market position and our aim is to strengthen or retain our unique
priorities, delivering sales growth and systems expertise.
PEOPLE
profitability, and maintaining a solid bal-
ance sheet. Our focus on capital efficiency and generat- People
ing strong cash flow also contribute to this. Our employees are the foundation that enables us to implement our
strategy and achieve our strategic and financial goals. Our market is
changing, and successful changes require confidence in the future.
LONG-TERM STRATEGIC GOALS We want to be an employer of choice for current and future employ-
In 2010, an analysis was made of Saab’s long-term goals. In light of ees who seek development opportunities and continuous change.
the strategic priorities, the long-term financial goals communicated
externally were revised slightly. LONG-TERM FINANCIAL GOALS
The long-term financial goals now consist of goals for organic Growth
sales growth, operating margin after depreciation and amortisation Over a business cycle, our organic sales growth will average 5 per
(EBIT) and the equity/assets ratio. cent per year.
The previous targets for the operating margin before depreciation/ It is possible that growth will also be achieved through acquisi-
amortisation (EBITDA) and return on equity will not be reported as tions if value-creating opportunities arise within our priority areas
of 2011. in the years ahead.
Profitable growth Operating margin
In order to achieve our long-term sales growth goal, we will stay The operating margin after depreciation/amortisation (EBIT) will be
focused in coming years on markets where we are already estab- at least 10 per cent.
lished: the Nordic region, many European countries, South Africa
and Australia. In addition, we will establish a stronger local presence Equity/asset ratio
in selected markets such as North America, the UK, South America The equity/assets ratio shall exceed 30 per cent.
(Brazil) and Asia (Thailand and India).
Dividend policy
Performance Saab’s long-term dividend objective is to distribute 20–40 per cent of
Our efficiency improvement program was successfully finalised in net income over a business cycle to shareholders.
2010. We have now reduced Saab’s cost base by SEK 1.5 billion over
a three-year period. The market is constantly changing, which
requires that we keep up with developments and in many cases that
we stay on the forefront of change. This is why we continue to
improve efficiencies in operations, focus on capital efficiency and
generate strong cash flow.
12 SAAB ANNUAL REPORT 2010

16. SAAB’S PERFORMANCE
ATTAINMENT OF LONG-TERM
STRATEGIC AND FINANCIAL
GOALS FOR 2010
Despite a continued challenging business environment, People
our order bookings increased in 2010 and the order back- In 2010, we worked on harmonising overarching HR processes in
log grew. Underlying profitability improved throughout the order to better address business-critical HR-related issues. We have
also focused on our change process with the goal of strengthening
year, we improved the level of capital employed and gener-
the communicative leadership abilities of our managers. In 2010, 22
ated strong cash flow. In addition, measures were taken to per cent (22) of employees in the organisation were women, and the
restructure operations and improve efficiencies as an ele- share of female managers is 19 per cent (17). Saab was named Swe-
ment in a long-term strategic adjustment to changing mar- den’s best workplace during the year by the business magazine Veck-
ket conditions. ans Affärer, which made gender equality an important part of its
evaluation.
STRATEGIC PRIORITIES
Profitable growth LONG-TERM FINANCIAL GOAL PERFORMANCE IN 2010
In 2010, we received major orders for both the Gripen system and Growth
airborne surveillance systems, which consolidated our strong posi- Goal: This goal was previously the same as in the new long-term goal
tion in the area. We also took measures to strengthen our local pres- formulation. Our organic sales growth will average 5 per cent per
ence in markets such as Thailand, Brazil and the US. In South Africa, year over a business cycle.
we entered into a collaboration with Sekunjalo Investment Ltd – a Result 2010: In 2010, organic sales growth was -1 per cent (4).
step to further strengthen position in South Africa and in the sub-
Saharan region. Operating margin
Goal: We had two margin goals in 2010, both formulated as an aver-
Performance age over a business cycle.
Our efficiency improvement programme was successfully finalised in The goal for operating margin after depreciation/amortisation
2010. In addition to this programme, we took measures to improve was at least 10 per cent and it remains the same in the new long-term
efficiencies. We decided to reduce the number of operating locations goal formulation. The goal for the operating margin before deprecia-
and improve efficiencies in areas with high administrative costs. This tion/amortisation is at least 15 per cent.
means that the Dynamics business area’s operations in Eskilstuna will Result 2010: The operating margin after depreciation/amortisa-
be terminated in 2012 and that the underwater vehicles operations in tion (EBIT) in 2010 was 4.0 per cent (5.6). Adjusted for non-recur-
Motala will be restructured. All employees in Motala were served ring items, the operating margin was 6.5 per cent (5.4).
notice. In addition, efficiencies were achieved in the Electronic The operating margin before depreciation/amortisation
Defence Systems business area and in Corporate functions. (EBITDA) was 9.0 per cent (10.5).
Portfolio Return on equity
In 2010, we continue to focus the portfolio through structural meas- The ROI goal in 2010 was an average 15 per cent. In 2010, we reached a
ures. We decided to integrate the Motala-based underwater vehicles return of 4.1 per cent (7.0).
operations with UK-based Saab Seaeye Ltd. The launch of SAFE (Sit-
uational Awareness for Enhanced Security) illustrates the progress Equity/assets ratio
we have made in civil security and product innovation. Based on a Our goal in 2010 was an equity/assets ratio exceeding 30 per cent,
powerful command and control system and an advanced and inte- which still remains in the new goal formulation. At year-end 2010,
grated platform, SAFE serves as a core to monitor and oversee safety the equity/assets ratio was 39.1 per cent (35.1).
and security in daily operations.
SAAB ANNUAL REPORT 2010 13

17. SAAB’S STRATEGIC PRIORITIES
PERFORMANCE
PROFITABLE
PORTFOLIO
GROWTH
SAAB’S STARTING
POSITION
PEOPLE
Saab’s four strategic priorities
Saab operates in the global market for defence and secu- Organisation and culture
rity solutions and develops world-leading solutions and As of 1 January 2010, Saab’s operations are divided into five business
systems with broad-based military and civil applications. areas: Aeronautics, Dynamics, Electronic Defence Systems, Security
and Defence Solutions, and Support and Services. A large part of
As one of Sweden’s most R&D intensive companies,
business operations are conducted by the Parent Company and the
development co-operations are an important pillar of rest by the Group’s wholly and partly owned companies.
our future.
Four strategic priorities
Core competence Looking ahead, our aim is to continue to work toward our strategic pri-
Systems engineering – understanding and being able to integrate orities: profitable growth, performance, the portfolio and our people.
complex systems, our own and others’ – is Saab’s core competence. The following pages present our work in each of these four areas.
At the same time that we have world-leading technology in a
number of important areas, we work today with open systems as far STRENGTHS, WEAKNESSES, OPPORTUNITIES
AND CHALLENGES FOR SAAB
as possible. Multiple applications and the ability to coordinate sys-
tems are the keys to our product development, making it possible to • Saab has a well-positioned product portfolio based on world-leading
technology. We have unique systems expertise and the capability to sup-
integrate products into larger military and civil operations.
ply complex systems.
• Our strong balance sheet gives us a solid platform to implement our strat-
Market position
egy. Cash flow generation is good as well. Our management and control
We address traditional defence needs with a core offering consisting systems ensure a business focus and continuous efficiency improvements.
of products and systems to safeguard national borders. To a growing
• Although we created cost efficiencies in 2010, further improving operating
extent, we also address the functional and security needs of the glo- efficiency and productivity is critical.
bal flow society, which includes the civil security market.
• International competition is increasing, partly due to lower defence spend-
The large market segments where we have a strong position and ing in Western democracies, where many leading defence companies are
good growth opportunities are fighter aircraft and command and con- based.
trol systems, reconnaissance and surveillance systems, including Air-
• Our dependency on customer-financed R&D is a challenge. Around two-
borne Early Warning (AEW) systems, tactical weapon and missile sys- thirds of customer financing currently comes from Sweden. Our growth
tems, and Command, Control, Computing Intelligence, Surveillance opportunities are primarily in other countries, including selected markets
and Reconnaissance (C4ISR) systems. We also have a strong niche where we are working to increase customer financing.
position in civil aeronautics as a supplier to Airbus and Boeing. • The reliance on major orders such as Gripen, AEW and Bamse is a challenge.
We have very strong positions in selected regions in the growth seg- Saab’s advantage is that our Swedish base makes us a neutral choice.
ments of civil security, support and service, training and underwater • Finding the right civil applications for our core technologies is both a chal-
systems, as well as niche segments such as signals intelligence. lenge and an opportunity. We have the ability to supply systems that main-
In the military field, we sell to defence authorities as well as other tain various flows in society, in defence and civil security.
defence companies as a subcontractor. Geographically, we have a • One of our strengths is that we have about 80 per cent of our employees
strong position in Sweden and good positions in South Africa and in Sweden at the same time that our growth potential is primarily outside
the country, which enables us to create interesting job opportunities in
Australia. Our goal is to consolidate and strengthen our position in the
other markets, create greater diversity and attract talent from markets out-
other Nordic countries and selected countries in Europe, while build- side Sweden.
ing strong positions primarily in North America, Brazil, India and
• We have a unique industrial co-operation offering and a large network of
Southeast Asia. contacts around the world. Our commitment to the community and focus
on sustainable business (social engagement and business ethics) give us
a stable platform to build on.
14 SAAB ANNUAL REPORT 2010

18. SAAB’S STRATEGIC PRIORITIES > EMPLOYEES
PERFORMANCE
PROFITABLE
PORTFOLIO
GROWTH
OUR EMPLOYEES ARE
CONSTANTLY DEVELOPING
PEOPLE
Saab’s four strategic priorities
At Saab, our employees are the key to everything we do Diversity creates value
and a critical factor in order to implement the strategy and At Saab, we regard differences as an asset and strategic resource. We
reach our strategic and financial goals. Technology is con- encourage diversity and have challenging gender equality goals.
Diversity and gender equality are critical to our profitability and how
stantly changing, and we at Saab are naturally along for the
we are seen by the public. This requires management by objectives
exciting journey to the technology of the future. and continuous oversight to succeed.
At Saab, we have clearly defined values, which we believe make us
Our core business is our unique technology and ability to integrate a better employer for current and future employees. We are a com-
products and systems in advanced solutions. We have been one of pany distinguished by openness, cooperation and mutual respect.
the leading technology companies in Sweden for over 70 years. It is Successful changes are the result of confidence in the future and are a
not so strange, therefore, that around 50 per cent of our employees vital element to succeed in business.
has a college degree and that over 7,000 are engineers. This is why we want to be a company of opportunities and take
Staying on top of technological advancements requires that we responsibility for offering personal development tied to our business
have employees who are interested in, take responsibility for and challenges. We are the natural choice for talented people who are
lead this development. looking to grow and want to embrace change in a stimulating work
This places tough demands on us as an employer. We look for top environment.
talents in the global market and cannot limit ourselves by intellectual Learn more about Saab’s employees on pages 50–51.
and national borders.
SAAB ANNUAL REPORT 2010 15

19. SAAB’S STRATEGIC PRIORITIES > PROFITABLE GROWTH
PERFORMANCE
PROFITABLE
PORTFOLIO
GROWTH
PROFITABLE GROWTH
PEOPLE
Saab’s four strategic priorities
How we drive our growth is our fundamental strategic account for over slightly over 59 per cent of our sales. In addition to
challenge. Our business must focus to a growing extent on the Gripen system, we see other significant business opportunities
markets with strong demand and areas where our technol- and growth potential in these markets.
In the future, we will also focus our investments on selected mar-
ogies and solutions can meet existing security needs to a
kets with good growth opportunities in a number of regions.
higher degree. A large share of our growth will have to be found in markets with
significant, stable defence spending and otherwise favourable condi-
One of Saab’s main strategies in the last decade has been to transition tions. These especially attractive growth markets include North
from a dominant home market and reliance on a single customer, America, Brazil, India and a number of countries in Southeast Asia.
the Swedish defence forces, to more international operations. Sales Another example of a new and growing customer is the United
outside Sweden gradually increased during the latest ten years. Nations, to which we established ourselves in 2010 as a supplier with
Today we address not only traditional defense needs, but increasingly a local presence in East Africa. The UN is expected to procure prod-
the security needs of society as a whole. This represents a shift in ucts and services for a total of around USD 15 billion (approx. SEK
focus for our operations and further expansion in the civil security 100 billion), with a focus on services central to our offering: camp,
area, which increases business potential at the same time as it diver- medical and security solutions, vehicle maintenance, training and
sifies our risks. 3D mapping.
While we have a high market share in Sweden, our future growth
must come in large part outside the country, especially in markets Local presence is critical
where conditions are more favourable. At present, slightly over 83 per cent of our employees work in Swe-
den and about 12 per cent in South Africa and Australia.
Clearer regional focus Our goal is annual organic sales growth of 5 per cent. This will
We continuously evaluate our market potential and analyse how our require that we establish a stronger position locally in the markets
technologies and solutions can meet demand in the around 90 markets, where we see growth potential in the future .
both traditional and emerging, where we sold our products in 2010. To succeed in a market requires that we establish ourselves locally
In markets where we have a good position, we are working to con- in the best way possible. How we establish ourselves in various
solidate it while at the same time investing in selected areas where we regions depends on an array of factors, including political, regula-
see good opportunities. Today Sweden and the rest of Europe tory, competitive and industrial conditions, local business models
SALES BY REGION 2010 SALES BY MARKET SEGMENT 2010
38% (31%) Sweden 42% (44%) Military aeronautics
19% (23%) EU excl. Sweden 31% (29%) Land
2% (1%) Rest of Europe 9% (9%) Naval
9% (8%) North and South America 6% (7%) Civil security
15% (19%) Asia and Middle East 6% (6%) Commercial aeronautics
12% (14%) Africa 6% (5%) Other markets
5% (4 %) Australia
16 SAAB ANNUAL REPORT 2010

20. SAAB’S STRATEGIC PRIORITIES > PROFITABLE GROWTH
and financial arrangements, and how our technologies meet local HISTORIC PERSPECTIVE
needs. The strategies in each market in turn include everything from
25,000 14
an increased market presence and marketing to joint ventures and
partnerships, industrial cooperations, technology transfers and re- 12
20,000
exports. 10
We may also strengthen our local presence through acquisitions
15,000
8
in selected markets if opportunities arise within our prioritized areas.
6
10,000
4
5,000
2
0 0
99 00 01 02 03 04 05 06 07 08 09 10
Sales in Sweden, MSEK Operating income margin
Sales in markets outside of (EBIT),%
Sweden, MSEK
2000 Acquisition of Celsius 2006 Acquisition of EMW
2005 Acquisition of Grintek 2008 Divestment of Saab Space
STRATEGIC INVESTMENT IN THE U.S.
The American continent represents half the global defence and civil security
market. Saab has been represented here for many years through Saab
Barracuda, which produces camouflage products. Moreover, Saab supplies
training systems as well as support and services to the U.S. and command
and control systems to the Canadian Navy through a partnership with Lock-
heed Martin. North America is also home to the large part of Saab Aircraft
Leasing, a business that owns and manages the more than 100 Saab 340
and Saab 2000 aircraft.
With a goal to strengthen our presence in North America, we opened a new
office in April 2010 in Washington, DC, where all our US and Canadian oper-
ations are now managed. In the near future, Saab’s goal is that all five busi-
ness areas will be represented on the continent.
Growth in North America will be achieved organically as well as through part-
nerships with the industry. We also anticipate acquisitions if they provide the
opportunity to strengthen our offering within prioritized areas.
North America is becoming an increasingly important market for Saab.
SAAB ANNUAL REPORT 2010 17

21. SAAB’S STRATEGIC PRIORITIES > EFFICIENT OPERATIONS
PERFORMANCE
PROFITABLE
PORTFOLIO
GROWTH
MORE EFFICIENT
OPERATIONS
PEOPLE
Saab’s four strategic priorities
To be more competitive, we have to continuously develop, Five priorities
manage and realise the most effective ways of working. In our efficiency improvements, we focus on five strategic areas to
Increasing the degree of standardisation is one way of become a more cost-effective organisation. They can be summarised
as follows:
raising efficiency.
• Standardise and harmonise operations in order to drive cost effi-
Higher efficiency to us primarily means working in a structured ciencies through functional synergies.
manner, so that the costs of reaching our goals in various areas are as • Optimise R&D efficiency through standardised product manage-
low as possible. Initially, have to ensure that standardised and har- ment and development processes.
monised work methods are in place and to prioritise among our • Focus on contract quality, project implementation and risk man-
activities. The next step is to measure the results of our work and agement to improve project results and forecasting abilities.
make the progress we have made visible in the organisation. For this • Increase flexibility in our cost structure to adapt to variations in
to succeed, we have to promote a culture that puts our common volume.
good ahead of what might be best locally. • Ensure we can maintain a stable cash flow to facilitate invest-
ments for growth in acquisitions, R&D and marketing.
An efficient Saab
Saab has been working for some time to be a more integrated com- In each of these areas, we are working on a number of activities. In
pany in terms of goals, priorities and processes. The reorganisation terms of standardisation and harmonisation, this includes every-
into five distinct business areas at the start of 2010 was an important thing from maintaining efficient enterprise systems with the best
step. It makes it easier for us to capitalise on functional synergies and industry standards and co-ordinating sourcing (higher volumes and
financial resources, develop new, standardised processes and fewer suppliers) to optimising our assets.
develop a more focused product portfolio. In addition to the reor- To improve R&D efficiency, we are trying to adopt a uniform life-
ganisation, we have established a number of functions to support cycle process for our products and to increase modularity. We also
our collective efforts and internal efficiency, including centres of need to have clearly defined criteria in order to prioritise R&D
excellence in research and development. For more information, see investments. Learn more about our research and development on
next page. pages 22–23.
At the end of 2010, we completed a SEK 1.5 billion cost-cutting With the help of a well-defined business and management model,
programme on schedule. This work has now become an integral part as well as a uniform project model, we can improve our earnings
of our day-to-day operations, where we continue to reduce our costs potential through contract formulations and effective project imple-
through improvements. mentation in all our business areas.
We are also reassessing our cost structure to better adapt it to our We are increasing the flexibility of our cost structure by continu-
long-term strategy. This includes structural changes beyond those to ously evaluating the size of the organisation’s workforce, buying
improve efficiencies in internal processes. For example, we have expertise that falls outside our core competencies and conduct cost
taken measures to reduce our administrative costs. benchmarking.
We also have to maintain a stable cash flow to facilitate growth-
driving investments. We achieve this by focusing on payment plans
in tenders/contracts and resource-efficient project implementation,
while reducing capital tied up in account receivables and inventories.
18 SAAB ANNUAL REPORT 2010

22. SAAB’S STRATEGIC PRIORITIES > EFFICIENT OPERATIONS
Cost reductions from efficiency programme 2008–2010 (MSEK)
>
1,500
650 The efficiency improvement programme launched in early 2008 was con-
> cluded in 2010. The programme accomplished its goal of reducing Saab’s
annual costs by a total of SEK 1.5 billion.
600 A large part of the cost reductions was achieved by adapting and standard-
>
ising the development process within the company, increasing production
efficiency and reducing the number of production locations as well as
250
sourcing and travel costs.
2007 2008 2009 2010 2011 Our efforts to create efficiencies will continue.
CENTRES OF EXCELLENCE CREATE SYNERGIES
The new centres of excellence work cross-functionally between business
areas. This helps to erase any borders within Saab and further unify the
company, which is important to stay competitive.
Four centres of excellence to date
In 2010, Saab created its first four centres of excellence, which are currently
in different stages of development. The result is better co-ordination of spe-
cialised expertise from various parts of the Group. The centres have gotten
off to a good start, and several are already fully operational. Around ten addi-
tional centres of excellence are currently being considered. The first four are:
– Optics Design Centre
Provides design solutions and supports all of Saab’s business areas. The
centre’s staff and equipment are located in Huskvarna and it is part of the
Security and Defence Solutions business area.
– Common Component Sourcing Centre
Centres of excellence create operating efficiencies. Provides electronic component specifications for all of Saab’s business
areas. The aim is to co-ordinate component operations in the Group. Lo-
cated in Göteborg, the centre is part of the Security and Defence Solutions
To increase efficiency and further raise the level of competence in technolog-
business area.
ical and business-critical areas, as well as make important competence more
accessible, we have established centres of excellence. Eventually, efficiency – Geo Data Centre
improvements will free up resources that instead can be invested in Saab’s Collects geodata (digital maps) in a portal, a central geodata library where any
future. employee can search and order data. Part of the Aeronautics business area.
“By working in this way, we increase the chances of successfully retaining – Power Electronics Design Centre
competencies and experience within the company,” said Göran Johansson, Provides design solutions, promotes reuse and reviews designs for all busi-
who is leading the effort to create Saab’s centres of excellence. “Sometimes ness areas. Located in Göteborg and part of the Electronic Defence Systems
it’s even a question of avoiding becoming undercritical. By working with oth- business area.
ers who have expertise in similar areas, our employees can sharpen their
skills. In addition, there is great potential for savings.”
SAAB ANNUAL REPORT 2010 19