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Saab Interim Report January-March 2019

Interim Report Q1 2019

CEO Comment

Saab delivers strong organic growth and improved operating income

Much of the focus in the first quarter was to secure important milestones in large and medium-sized projects in the order backlog and to further increase productivity within the Group.

Håkan Buskhe
President & CEO
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Much of the focus in the first quarter was to secure important milestones in large and medium-sized projects in the order backlog and to further increase productivity within the Group. The work to adapt the product portfolio, increase marketing efficiency and accelerate the automation and digitisation is continuing.


Order bookings amounted to SEK 4.5 billion with strong growth in small orders compared to the same period in 2018. Order bookings also consisted of a number of medium-sized orders, including for tactical training systems and command and control systems.

Sales and operating income

Sales in the first quarter amounted to SEK 8,496 million (7,766) with organic growth of 8 per cent. The business areas Dynamics and Industrial Products and Services saw strong sales increases, where Dynamics had a higher level of deliveries and Industrial Products and Services achieved sales gains in several business units.

Operating income amounted to SEK 591 million in the first quarter (447), with an operating margin of 7.0 per cent (5.8). The measures identified in 2018 to improve operating efficiencies have largely been implemented. Several business areas saw operating margin increases, partly due to a higher utilisation rate and because the above-mentioned efficiency improvements have led to increased productivity in several areas.

Operational cash flow

As a result of a high activity level in large projects, the operational cash flow amounted to SEK -1,923 million (-2,211). The business area Aeronautics had operational cash flow of SEK -1,636 million in the first quarter. Saab expects Aeronautics to continue to have negative operational cash flow in the second and third quarters while the work to prepare the first deliveries of Gripen E to Brazil and Sweden continues.

Saab expects operational cash flow to be negative for the full-year 2019, but at a better level than 2018. Operational cash flow will continue to be affected during the year by timing differences in payments for major projects.

Key Figures

Our growth journey continues

Why invest in Saab?

To achieve the strategic and financial goals that have been set, Saab operates based on specific objectives. Saab is working to further strengthen its presence in key markets, develop innovative solutions and acquire companies in priority areas. Internally, efficiency programmes are used to continuously improve productivity.

The focus is on continuously developing leaders and employees to build a culture focused on performance, innovation and motivation. Saab’s employees drive the business forward and sustainability is reflected in everything Saab does. Saab is an international partner that contributes to increased security and defence capabilities in Sweden and other countries, which is the foundation of Saab’s commitment to sustainability.

A local presence close to customers creates stronger relationships and collaborations and greater insight into customers’ needs. Better understanding these needs creates opportunities to develop the right combination of products and solutions, which in turn means that Saab also becomes more efficient and more focused on project execution, marketing and sales.



Organic sales growth


Operating margin


Adjusted operating income
and operating margin


Order bookings
and sales


Saab Interim Report
January-March 2019

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A step ahead

Saab’s strategy is based on three priority areas


The market Saab operates in, both nationally and internationally, is changing rapidly, and Saab has to act faster to stay ahead. The focus is on areas where the company has a strong market position and on further strengthening that position in areas with good growth potential.

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Saab has been shaped by fierce competition and strict requirements on low product lifecycle costs. Saab knows what is needed and how to get there: the latest technology, the smartest solutions and the newest innovations. Saab’s competent and engaged employees are the key, and Saab believes that diversity drives innovation.

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In a world of constant change and fierce competition, high efficiency and shorter lead times are essential in order to meet customer demands with technology and solutions that increase their capabilities and profitability. Saab has to be able to deliver more for less, which is why raising efficiency is a continuous process. 

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Focus and priorities generate good margins

The business unit Training & Simulation, with nearly 500 employees in 11 countries, has delivered a significant earnings improvement in recent years. In 2015, the unit reached breakeven, but in 2016 the numbers turned higher and in 2018 Training & Simulation again delivered good results.
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