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Year end Report
Jan - Dec 2018

Interim Report Q4 2018

CEO Comment

Strengthened market position provides future possibilities

"2018 was a year in which Saab strengthened its market position. A number of important orders were received, one example of which is the order from Boeing related to the T-X trainer aircraft for the U.S. Air Force."

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Håkan Buskhe
President & CEO
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Strengthened market position provides future possibilities

2018 was a year in which Saab strengthened its market position. A number of important orders were received, one example of which is the order from Boeing related to the T-X trainer aircraft for the U.S. Air Force. The larger development projects in the order backlog progressed according to plan and a number of important milestones were reached in the development of the new generation Gripen for Sweden and Brazil, the GlobalEye Airborne Early Warning & Control system and the upgrade of the HSwMS Gotland submarine with successful results.

In addition, a series of measures were identified and implemented to bolster the company long-term and raise productivity. They included operating efficiencies and a plan to adapt the product portfolio, improve marketing efficiency and increase digitisation and automation. In the third and fourth quarters, a large share of the identified efficiencies were completed.

At the same time, global security concerns increased and we are seeing a greater focus on defence and security issues in many countries. Interest in Saab’s offering is high.  In the fourth quarter 2018, a SEK 6 billion rights issue was carried out to support Saab’s continued growth journey. The strengthened balance sheet provides possibilities and a basis from which to create additional growth ahead.

Order bookings and sales

Order bookings amounted to SEK 28 billion in 2018 with increasing medium-sized and small orders. Saab received a major order for Gripen development and operational support in Sweden worth SEK 1.4 billion in the year. During the comparative year 2017, Saab’s large orders totalled SEK 10.7 billion.

 

Sales amounted to SEK 33.2 billion with organic growth of 4 per cent.

Operating income and non-recurring items

Operating income in 2018 amounted to SEK 2,266 million (2,250) and the operating margin was 6.8 per cent (7.1). Adjusted for non-recurring items of SEK 298 million, operating income amounted to SEK 2,564 million with an operating margin of 7.7 per cent.

Operational cash flow

Operational cash flow amounted to SEK -2,424 million (1,388) in 2018. In the fourth quarter, it amounted to SEK 2,773 million (2,146). In 2019, operational cash flow will continue to be negatively affected by timing differences in payment flows for major projects.

Dividend

The Board of Directors proposes a dividend for 2018 of SEK 4.50 per share (4.40). The dividend for 2017 has been restated for outstanding shares as of 31 December 2018.

Key Figures

Our growth journey continues

Why invest in Saab?

On the ground close to customers

Saab has expanded its marketing organisation in recent years and created a stronger local presence and relationships with customers in selected markets. The ability to build long-term industrial partnerships provides us with greater insight into what is in demand and helps us to further develop technologies and end products in order to provide customers with the new technology and sustainable solutions they want.

Cost efficient

Saab is working constantly to shorten lead times and increase efficiency in  its production. This has resulted in lower costs for Saab and for customers. Cost efficiency is always integrated as a parameter back when products and solutions are designed, and Saab is continuously making processes more efficient through automation and digitisation.

Highly innovative

Technological development is accelerating and competition intensifying. Staying on the forefront of technology, combined with cost efficiency, is in Saab’s DNA. Cutting-edge expertise, talented employees and business strategy drive Saab and its customers to stay a step ahead and meet future challenges.

Order
backlog

% outside of Sweden
67

Organic
sales growth

Per cent
4

Adjusted
operating margin

Per cent
7.7

Order bookings

BSEK
28

Sales

BSEK
33.2

Year end
Report Jan - Dec 2018

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A step ahead

Saab’s strategy is based on three priority areas

Market

Through a strong local presence partnerships and collaborations, focus is on areas where we have a strong market position and on strengthening our position in areas with good growth opportunities.

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Performance

The focus is on continously making functional processes more efficient, implementing an even more business-oriented culture, and developing leaders and employees.

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Innovation

The product portfolio is concentrated on innovations in five core areas where diversity and engaged employees drive innovation.

 

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Saab Annual and Sustainability Report 2017

We create profitable growth by staying a step ahead
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PDF 8 MB