Saab’s Results January-March 2015

Defence and security company Saab presents the results for January-March 2015
Statement by the President and CEO Håkan Buskhe:
Given the challenging market, Saab began the year as expected.

Preparations for development and production of 36 Gripen NG for the Brazilian
Air Force continue. We expect that the agreement with the Brazilian government
comes into effect during the second quarter and the total order value will
amount to SEK 39.3 billion. We are also looking forward to proceeding with
negotiations regarding the next generation of submarine for Sweden, the A26. In
addition, we see many interesting business opportunities ahead.

The market is still characterised by challenging conditions where customers’
orders are delayed, partially due to financial reasons. During the first
quarter, we have also seen that political standpoints have had a negative
impact. Altogether, this has increased the market risk and we expect that this
increased risk will remain in the coming quarters.

Order bookings in the quarter amounted to MSEK 4,800 (4,078). This increase can
mainly be attributed to a large follow-on order from the Indian Armed Forces for
self-protection systems provided by the business area Electronic Defence
Systems. To add to this, we received important orders within air traffic
management and underwater systems.

One aspect of Saab’s growth strategy is to grow together with partners in a
number of markets. Therefore, we have established and developed cooperations
where we see significant growth opportunities. An example of this is the
cooperation with the Dutch shipyard Damen, which was put into place in the first
quarter. This is a way of positioning Saab and Damen for future submarine
procurement in the Netherlands with the ambition to also offer joint solutions
in other markets.

The order backlog at the end of the period amounted to MSEK 59,811 (58,608).

Gripen E enters into a new phase

Sales increased by 2 per cent, compared to the same period last year, amounting
to MSEK 5,389 (5,280). The business area Dynamics reported lower sales following
a long period of declining order bookings. Business area Aeronautics shows lower
sales than last year as a result of Gripen E transitioning from the development
phase to production phase. In the large projects, with Gripen E at the
forefront, deliveries went according to plan. Business area Security and Defence
Solutions showed growth, mainly attributable to the underwater business which
was acquired in 2014.

Reported operating income amounted to MSEK 210 (270) with an operating margin of
3.9 per cent (5.1). A changed product and project mix as well as development
cost within the T-X program, where Saab cooperates with Boeing, are the main
reasons for a lower operating margin during the quarter.

The net income amounted to MSEK 90 (176), where exchange rate differences had a
negative impact on financial net of MSEK 63 in the first quarter.

The operational cash flow in the quarter amounted to MSEK -805 (-168). The
change is mainly due to a lower sales of accounts receivables in the first
quarter 2015 than during 2014.

Earnings per share after dilution amounted to SEK 0.79 (1.63).

The outlook for 2015 is unchanged.

Outlook statement 2015

  · In 2015, we estimate sales to increase more than Saab’s long-term goal:
annual organic sales growth of 5 per cent.

  · In 2015, we estimate sales to increase more than Saab’s long-term goal:
annual organic sales growth of 5 per cent. The operating margin 2015 excluding
material non-recurring items is expected to be in line with the operating margin
in 2014. In 2015, increased internally funded research and development efforts
within Aeronautics will have a negative impact on the operating margin.

Financial highlights

MSEK                              Jan     Jan     Change, %  Full Year2014
                                  -Mar    -Mar
                                  2015    2014
Order bookings                    4,800   4,078   18         22,602
Order backlog                     59,811  58,608  2          60,128
Sales                             5,389   5,280   2          23,527
Gross income                      1,316   1,361   -3         6,077
Gross margin, %                   24.4    25.8               25.8
EBITDA                            438     476     -8         2,523
EBITDA margin, %                  8.1     9.0                10.7
Operating income (EBIT)           210     270     -22        1,659
Operating margin, %               3.9     5.1                7.1
Net income                        90      176     -49        1,168
Earnings per share before         0.80    1.64               10.86
dilution, SEK
Earnings per share after          0.79    1.63               10.78
dilution, SEK
Return on equity, %*              9.3     5.5                9.9
Free cash flow                    -941    -316               -1,094
Free cash flow per share after    -8.84   -2.95              -10.23
dilution, SEK
* The return on equity is
measured over a rolling 12-month
period.

Press and analyst meeting

Saab invite to a press and analyst meeting, where CEO Håkan Buskhe and CFO
Magnus Örnberg present the Saab January-March interim report 2015.

Date: Friday, 24 April at 10:00 (CET)
Address: Grand Hôtel, Blasieholmshamnen 8, Stockholm, Sweden
Venue: New York

You are welcome to participate on site at Grand Hôtel, watch the live webcast or
dial in to the conference call. It is possible to post questions also over the
web and conference call.

Live webcast:
http://saab-interimreport.creo.se/150424/

Conference call:
Please, dial in using one of the numbers below.
UK: +44 20 342 814 06
US: +1 855 753 22 36
Sweden: +46 8 566 426 69

The interim report, the presentation material and the webcast will be available
on http://www.saabgroup.com/en/InvestorRelations.

R.S.V.P
E-mail: marie.bergstrom@saabgroup.com
Tel: +46 8 463 02 45

For further information, please contact:
Saab Press Centre,
+46 (0)734 180 018,
presscentre@saabgroup.com

Saab Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 187 214

www.saabgroup.com
 (http://www.saabgroup.com/YouTube)www.saabgroup.com/YouTube
Follow us on twitter: @saab

Saab serves the global market with world-leading products, services and
solutions within military defence and civil security. Saab has operations and
employees on all continents around the world. Through innovative, collaborative
and pragmatic thinking, Saab develops, adopts and improves new technology to
meet customers’ changing needs.

The information is that which Saab AB is required to declare by the Securities
Business Act and/or the Financial instruments Trading Act. The information was
submitted for publication on 24 April 2015 at 07.30 (CET).