Saab's results January-September 2013

Defence and security company Saab presents the results for January-September
2013.
Statement by the President and CEO Håkan Buskhe:
During the third quarter, the Swiss Parliament confirmed its support for the
procurement of Gripen E, the next generation of Gripen. A potential public
referendum remains before an order could be received in 2014. We also note a
great interest for Gripen from other countries.
Order intake increased by 59 per cent during the first nine months of 2013
compared to 2012. We received several important orders, e.g. from FMV regarding
the development of Gripen E, and a contract for the installation and commission
of electronic security systems for the Australian Department of Defence.
Particularly pleasing is the contract with the Spanish Navy regarding the use of
the unmanned aircraft system Skeldar UAS for surveillance during the EU mission
in the Gulf of Aden.
At the same time, reduced state budgets, primarily in the U.S. and Europe,
affects the defence and security industry as appropriations to the defence
sector and other state funded programmes decline and competition intensifies.
Within the defence sector, investments in the land area are declining and with a
stronger focus on the air and naval area.
Sales amounted to MSEK 16,471 in the period, an organic decline of 2 per cent.
We saw a lower activity level primarily within the business areas Dynamics and
Electronic Defence Systems.
The reported operating income during the first nine months amounted to MSEK 811
(1,395) and the operating margin was 4.9 per cent (8.4).
Excluding material non-recurring items, operating income amounted to MSEK 1,042
(1,188) and the operating margin was 6.3 per cent (7.1).
The business area Electronic Defence Systems showed a positive operating income
during the third quarter, but the large investments to strengthen our product
portfolio as well as ongoing restructuring measures continue. Dynamics reported
a loss in the third quarter as a consequence of a low activity level.
In July we announced that further efficiency measures will be implemented in
order to create larger scope for investments that will help us reach our long
term targets.
Efficiency measures during 2013 are expected to contribute with approximately
MSEK 500 in efficiency improvements by the end of 2014.
During the third quarter Dynamics announced that negotiations have been
initiated aiming at reducing headcount by 70 people at the production facility
in Karlskoga, Sweden. Electronic Defence Systems in Gothenburg, Sweden,
announced that headcount is planned to be reduced by 150-175 employees by means
of a competence shift programme. Furthermore, measures have been initiated to
strengthen efficiency within group wide functions.
The lower operating cash flow is mainly attributable to timing differences in
milestone payments in large projects and investments and acquisitions, together
with a payment related to the command and control system DACCIS that was made
during the period.
Earnings per share after dilution amounted to SEK 4.21.
After the conclusion of the period we received an order for radar and combat
management systems for the royal Thai navy frigate amounting to MSEK 850 as well
as an order for components for the weapon system Carl-Gustaf of MSEK 434.
Outlook statement 2013:

  · Estimated sales in 2013 will be in line with 2012.
  · The operating margin in 2013, excluding material net capital gains and other
non-recurring items, is expected to be in line with the operating margin in the
first half-year 2013, excluding material non-recurring items.

Excluding material non-recurring items, operating income in the first half-year
2013 amounted to MSEK 776 and the operating margin was 6.6 per cent.
Financial highlights

MSEK                    Jan     Jan     Change,  Jul    Jul    Jan-Dec 2012
                        -Sep    -Sep    %        -Sep   -Sep
                        2013    2012             2013   2012
Order bookings          25,029  15,755  59       2,993  4,111  20,683
Order backlog           42,407  36,331  17                     34,151
Sales                   16,471  16,704  -1       4,723  4,899  24,010
Gross income            4,475   4,933   -9       1,264  1,358  7,208
Gross margin, %         27.2    29.5             26.8   27.7   30.0
Operating income        1,557   2,262   -31      515    567    3,186
before
depreciation/amortisat
ion and write-downs
(EBITDA)
EBITDA margin           9.5     13.5             10.9   11.6   13.3
Operating income        811     1 395   -42      266    262    2,050
(EBIT)
Operating margin, %     4.9     8.4              5.6    5.3    8.5
Net income              455     1,010   -55      192    169    1,560
Earnings per share      4.34    9.81             1.78   1.58   15.00
before dilution, SEK
Earnings per share      4.21    9.49             1.73   1.53   14.52
after dilution, SEK
Return on equity, %*    8.8     12.2                           12.8
Operating cash          -2,027  -660             -936   -856   -396
flow **
Operating cash flow     -18.57  -6.05            -8.58  -7.84  -3.63
per share after
dilution, SEK
* The return on
equity is measured
over at rolling 12
-month period
** Operating cash
flow includes cash
flow from operating
activities of MSEK -1
382 (-424) and cash
flow from investing
activities excluding
change in short-term
investments and other
interest-bearing
financial assets of
MSEK -645 (-236)
Alla belopp för 2012
har omräknats enligt
förändringen i
redovisningsprinciper
för pensioner (IAS
19). Belopp för 2011
och tidigare perioder
har inte omräknats.

Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting where
CEO Håkan Buskhe together with CFO Magnus Örnberg present the results for
January-September 2013.
Tuesday, 29 October, 10.00 CET
Grand Hotel, New York, Blaiseholmshamnen 8, Stockholm, Sweden
R.S.V.P
E-mail: marie.bergstrom@saabgroup.com
Phone: +46 8 463 02 45
Live webcast
If you are unable to attend in person, please visit
http://www.saabgroup.com/en/About-Saab/Investor-relations/ where a live webcast
of the presentation will be available together with the presentation material.
All viewers will be able to post questions to the presenters. The webcast will
also be available afterwards at the Saab website.
Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves new
technology to meet customers’ changing needs.
For further information, please contact:
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 187 214
Saab Press Centre, +46 (0)734 180 018, presscentre@saabgroup.com
www.saabgroup.com
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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 October 29 at 07.30 CET.