Saab's results and summary January-December 2012

  Saab's results and summary January-December 2012

Business Wire

LINKÖPING, Sweden -- February 15, 2013

Regulatory News:

Defence and security company Saab (STO:SAABB) presents the results for 2012.

Results January-December 2012

  *Order bookings amounted to MSEK 20,683 (18,907) and the order backlog at
    the end of December 2012 was MSEK34,151 (37,172).
  *Sales increased 2 per cent to MSEK 24,010 (23,498). Excluding acquisitions
    sales decreased 2 per cent. Exchange rates had no significant impact on
    sales.
  *Gross income amounted to MSEK 7,190 (6,707), corresponding to a gross
    margin of 29.9 per cent (28.5).
  *Operating income was MSEK 2,032 (2,941), corresponding to an operating
    margin of 8.5 per cent (12.5). This included a non-recurring item of MSEK
    207 from a reduction of a potential earn-out liability. 2011 included
    capital gains of MSEK 1,169. Adjusted for non-recurring items the
    operating margin was 7.6 per cent (7.5).
  *Net income was MSEK 1,539 (2,217), with earnings per share after dilution
    of SEK 14.33 (20.38).
  *The operating cash flow of MSEK -396 (2,477) in 2012 was negative mainly
    as a result of a higher utilisation of, and reduction in advances and
    milestone payments as well as a higher net amount spent on acquisitions
    and divestments than in 2011. In the fourth quarter the operating cash
    flow amounted to MSEK 264 (217).
  *Proposed dividend for 2012 is SEK 4.50 per share (4.50).

Major event after theconclusion of the year:

  *Saab has announced, through a press release, the signing of an agreement
    with the Swedish Defence Materiel Administration (FMV) for Gripen E. The
    agreement includes development and modification of Gripen E for Sweden
    during the period 2013-2026 and a possible order for new production of
    Gripen E from Switzerland. FMV has today placed an initial development
    order of SEK 2.5 billion for operations during 2013-2014. Remaining orders
    from Sweden is expected in 2013-2014. The total value of possible orders
    under the agreement amounts to a total of SEK 47.2 billion.

Outlook Statement 2013:

  *In 2013, we estimate that sales will increase slightly compared to 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 2012, excluding material non-recurring items, of 7.6 per cent.

Financial highlights

MSEK                   Jan-Dec  Jan-Dec  Change,  Oct-Dec     Oct-Dec
                        2012      2011      %         2012         2011
Order bookings          20,683    18,907    9         4,928        5,114
Order backlog           34,151    37,172    -8        -2,180***    -2,239***
Sales                   24,010    23,498    2         7,306        7,347
Gross income            7,190     6,707     7         2,270        2,256
Gross margin, %         29.9      28.5                31.1         30.7
Operating income        2,032     2,941     -31       650          659
(EBIT)
Operating margin, %     8.5       12.5                8.9          9
Net income              1,539     2,217     -31       585          419
Earnings per share      14.81     21.19               5.52         3.92
before dilution, SEK
Earnings per share      14.33     20.38               5.35         3.78
after dilution, SEK
Return on equity *, %   11.3      18.1
Operating cash flow**   -396      2 477     -116      264          217
Operating cash flow
per share after         -3.63     22.69               2.42         1.98
dilution, SEK

*The return on equity is measured over a rolling 12-month period

** Operating cash flow includes cash flow from operating activities of
MSEK350 (2,392) and cash flow from investing activities excluding change in
short-term investments and other interest-bearing financial assets of MSEK
-746 (85)

***Refer to quarterly change.

Statement by the President and CEO, Håkan Buskhe

Despite challenging market conditions throughout 2012, order bookings
increased by nine per cent in the year. In the fourth quarter an order was
received for our surface-to-surface missile RBS15 Mk3 and several other
important orders were received during the year.

Sales grew driven by strategic acquisitions during the year. Acquisitions and
partnerships are important means to create a stronger foothold in local
markets and to complement our portfolio. During 2012 we made several
acquisitions, for example the acquisition of HITT N.V., a leading provider of
advanced software applications in the domains of navigation, traffic and
logistics support for the aviation and marine markets. We also acquired a
majority stake in the Norwegian consulting company Bayes Risk Management AS,
which delivers services in the field of risk analysis for the oil and gas
industry as well as the financial market. This acquisition expands our
technical consultancy business within Combitech. In the fourth quarter we
announced the acquisition of MEDAV GmbH, specialised in the application of
signal processing, pattern recognition and information technology. The
acquisition strengthens Saab’s product portfolio within radio monitoring and
intelligence fusion systems. We also established several partnerships in local
markets, such as in India where a joint venture with QuEST Global
Manufacturing was announced in the fourth quarter.

We reached an underlying operating margin in line with 2011, while we at the
same time increased investments in marketing and sales. In order to strengthen
our technology leadership and secure future offerings in current challenging
market conditions, investments in internally funded development also
increased. We spent about 7.5 per cent of our sales on internally funded
development in 2012 compared to about 5.8 per cent in 2011.

A new Market Area organisation was established as of 1 January 2013 in order
to further strengthen our local presence and ensure a closer cooperation with
our customers.

Today, we announced that we signed an agreement with FMV concerning the
development and modification of Gripen E, the next generation of Gripen,
Saab’s fighter aircraft. At the same time an initial development order was
received for Gripen E. We are proud to continue to deliver a world leading
fighter aircraft to the Swedish Air Force. The agreement includes potential
orders concerning the Gripen E to a total of SEK 47.2 billion.

Despite challenging market conditions, we foresee a slight increase in sales
for 2013 and an operating margin, excluding material net capital gains and
non-recurring items, to be in line with 2012, excluding material non-recurring
items.

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 year-end report
2012.

Friday,15 February, 10.00 am C.E.T

Grand Hotel, Blasieholmshamnen 8, Stockholm, Sweden, venue:Bolinderska Rummet

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 at Saab’s website afterwards.

R.S.V.P E-mail:susanne.vikman@saabgroup.com Tel: +46 (0) 8463 00 36

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 February15 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.

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Contact:

Saab Press Centre
+46 (0)734180018
or
Saab Investor Relations
Ann-Sofi Jönsson
+46 (0)734 187214
www.saabgroup.com
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www.saabgroup.com/YouTube
 
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