Saab's results and summary January-December 2011

Saab's results and summary January-December 2011

Defence and security company Saab presents the results for 2011.

Results January-December 2011

• Order bookings amounted to MSEK 18,907 (26,278) and the order backlog at
year-end amounted to MSEK 37,172 (41,459)

• Sales amounted to MSEK 23,498 (24,434), a decrease of 4 per cent adjusted for
exchange rates effects and acquisitions

• Gross income amounted to MSEK 6,707 (5,591), ­corresponding to a gross margin
of 28.5 per cent (22.9)

• Operating income was MSEK 2,941 (975), corresponding to an operating margin of
12.5 per cent (4.0). Capital gains of MSEK 1,169 (14) are included in 2011
compared to structural costs of MSEK 616 in 2010

• Net income was MSEK 2,217 (454), with earnings per share after dilution of SEK
20.38 (3.97)

• Operating cash flow amounted to MSEK 2,477 (4,349)

• Proposed dividend for 2011 SEK 4.50 per share (3.50)

Outlook 2012

In 2012, we estimate that sales will increase slightly compared to 2011.

The operating margin in 2012, excluding material net capital gains, is expected
to be in line with the operating margin in 2011, excluding material net capital
gains, of 7.5 per cent.

Financial highlights

MSEK                     Jan-Dec  Jan     Change,  Oct        Oct
                         2011     -Dec    %        -Dec 2011  -Dec 2010
                                  2010
Order bookings            18,907  26,278   -28      5,114     11,900
Order backlog             37,172  41,459  -10      -2,239**   4,008**
Sales                     23,498  24,434  -4       7,347      8,053
Gross income              6,707   5,591   20       2,256      1,640
Gross margin, %           28.5    22.9             30.7       20.4
Operating income (EBIT)  2,941    975     202      659        251
Operating margin, %      12.5     4.0              9.0        3.1
Net income               2,217    454     388      419        20
Earnings per share       21.19    4.12             3.92       0.09
before dilution, SEK
Earnings per share       20.38    3.97             3.78       0.08
after dilution, SEK
Return on equity *, %    18.1     4.1      
Operating cash flow***   2,477    4,349   -43      217        2,200
Operating cash flow per  22.69    39.84            1.98       20.16
share after dilution,
SEK
* The return on equity                                         
is measured over a
rolling 12-month period
** Refer to quarterly                                          
change
*** Operating cash flow                                        
includes cash flow
from operating
activities of MSEK
2,392
(4,487)
and cash flow from
investing activities
excluding change in
short-term investments
and
other
interest-bearing
financial assets of
MSEK 85 (
-138)

Statement by the President and CEO, Håkan Buskhe

"2011 was an important year for us, and we secured several key orders, such as
further development and system maintenance orders for Gripen to the Swedish
Defence Material Administration and for our multi-mission radar system Giraffe
to the U.S. Department of State. With the current tough economic conditions in
the western world our cost-efficient and cutting-edge technology products and
solutions are a clear competitive advantage. I am also proud of the strong
recognition Gripen received when the Swiss government down-selected it for
negotiations as a future multirole fighter aircraft.

We saw an impact from the subdued market situation mainly in the second half of
the year, with lower order intake as a consequence of continuous delays in
customers’ decision making processes.

Sales declined slightly, but we have consistently throughout the year taken
actions in line with our strategic targets in order to create a stronger
platform for growth. We have increased our local presence in selected markets,
established several local partnerships and made acquisitions to extend our
market reach. All in all, we streamlined our company portfolio, acquired
companies in growth areas and divested several non-core assets in 2011. In total
more than 10 transactions were concluded.

In order to grow, an underlying profitable and efficient operation is a
prerequisite. We increased our underlying profitability in 2011 and good project
execution was one of the main drivers for this.

For 2012, we estimate that sales will increase slightly compared to 2011. Our
balance sheet is solid and we closed the year with a strong net cash position.
It is our aim to remain in a net cash position for a foreseeable future in order
to stand strong amidst current economic conditions as well as to be able to
handle potential large business opportunities," says Saab’s President and CEO
Håkan Buskhe.

Press and analyst meeting

Press and financial analysts are invited to a press and analyst meeting where
CEO Håkan Buskhe together with CFO Lars Granlöf present the year-end report
2011.

Friday, 10 February, 10.00 am C.E.T

World Trade Center, Conference Center, conference room Atlanta

Entrance: Klarabergsviadukten 70 or Kungsbron 1

Live webcast

If you are unable to attend in person, please visit
http://www.saabgroup.com/en/InvestorRelations 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 at Saab’s website afterwards.

R.S.V.P
E-mail: karin.frisk@saabgroup.com
Tel: +46 (0) 8 463 02 30

For further information, please contact:

Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
www.saabgroup.com

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 February 10 at 07.30 am CET.

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.