Saab’s Results January-March 2016

Defence and security company Saab presents the results for January-March 2016
Statement by the President and CEO Håkan Buskhe:

Last year was characterised by record high order bookings, including signing of
a contract regarding Gripen for Brazil, the submarine system A26 for Sweden and
the airborne surveillance system GlobalEye. The start of 2016 has been about
execution and progress in these major development projects. All projects are
progressing well and on the 18th of May 2016, we will show Gripen E to the
outside world, an important milestone in the development of our new generation
fighter aircraft.

Market development
The security situation in parts of the world is complicated. The need for
systems that detect threats in time increases. Following years of decreased
defence budgets, many countries have begun to review their need for modernised
and increased defence capability. Countries in Eastern Europe increase their
defence spending, while the decline in Western Europe has stalled. However, the
process from identifying needs to a political decision and choice of supplier is
time consuming.

Sales growth and strong cash flow
During the first quarter, order bookings were in line with the same period last
year. Order bookings included an order for ammunition to the weapon system Carl
-Gustaf amounting to
MSEK 1,433 and a large number of small orders. Order backlog at the end of the
period amounted to MSEK 111,649.

Sales during the first quarter amounted to MSEK 6,790 (5,389), an increase of 26
percent. The increase is mainly related to the Gripen programmes in business
area Aeronautics, an order for GlobalEye which is attributable to business areas
Surveillance (previously named Electronic Defence Systems) and Support and
Services, as well as the development of the submarine system A26 within the
business unit Saab Kockums.

The operating income amounted to MSEK 294 (210) during the first quarter and the
operating margin was 4.3 percent (3.9). The operating income was mainly
positively impacted by business area Dynamics’ increased sales and thereby
completed turnaround to profitability, as well as good development in the
technology consulting company Combitech within business area Industrial Products
and Services.

The operating income was negatively impacted by investments in the development
of a future trainer aircraft together with Boeing (T-X program), and in addition
several large projects are at an early phase and thus generate lower profit.
Moreover, the business unit Saab Kockums reported a very strong first quarter
2015 due to large deliveries in projects outside Sweden.

Our profitability going forward depends on execution of the large development
projects in the order backlog. During 2016 we will continue to put attention to
these proceeding according to plan.

The operational cash flow in the first quarter amounted to MSEK 3,056 (-805).
The strong positive cash flow was mainly attributable to large payments received
related to Gripen and GlobalEye. Net debt at the end of the period was MSEK 626,
compared to MSEK 3,217 at year-end 2015.

Attractive company
To attract, retain and develop employees is crucial for Saab to remain a
successful company at the forefront of technology. Therefore it is encouraging
that our determined efforts to increase Saab’s attractiveness among potential
employees pays off. Saab has climbed to sixth place in the company Universum’s
ranking of Sweden’s most popular companies among engineering students. In
particular, the interest for Saab among female students is increasing. To mix
people, ideas, experiences and cultures makes a dynamic company with greater
innovative power and increased profitability.

Unchanged outlook statement 2016:

  · In 2016, we estimate sales to be in line with Saab’s long-term financial
goal: annual organic sales growth of 5 percent.
  · The operating margin 2016, excluding material non-recurring items, is
expected to be in line with 2015.

Financial highlights

MSEK                              Jan-Mar  Jan-Mar  Change,  Full   Year2015
                                    2016     2015     %
Order bookings                    4,614    4,800    -4       81,175
Order backlog                     111,649  59,811   87       113,834
Sales                             6,790    5,389    26       27,186
Gross income                      1,511    1,316    15       6,486
Gross margin, %                   22.3     24.4              23.9
EBITDA                            524      438      20       2,859
EBITDA margin, %                  7.7      8.1               10.5
Operating income (EBIT)           294      210      40       1,900
Operating margin, %               4.3      3.9               7.0
Net income                        223      90       148      1,402
Earnings per   share after        1.99     0.79              12.79
dilution, SEK
Return on equity, %*              12.7     9.3               11.5
Operational cash flow             3,056    -805              -500
Free cash flow                    2,955    -941              -726
Free cash flow   per share after  27.65    -8.84             -6.82
dilution, SEK
* The return on equity   is
measured over a rolling 12-month
period.

Press and analyst meeting

Saab invites to a press and analyst meeting, where CEO Håkan Buskhe and CFO
Magnus Örnberg present the Saab January-March interim report 2016.

Date: Thursday, 21 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/160421

Conference call:
Please, dial in using one of the numbers below.
UK: +44 2030089813
US: +1 8557532235
Sweden: +46 8 56642700

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

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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 21 April 2016 at 07.30 (CET).