Saab 2011 Annual Report Download - page 10

6 SAAB ANNUAL REPORT 2011
CHAIRMAN’S STATEMENT
A COMPLEX WORLD WITH
CHALLENGES AND OPPORTUNITIES
e sovereign debt crisis, which has been a problem for the West,
especially Europe, for some time, further intensied in 2011. e
global economy recovered aer the nancial crisis in 2008-2009,
but reversed course in 2011 driven by the growing crisis in the euro
zone. Fiscal constraints have contributed for several years to shrink-
ing defence budgets, a trend which was exacerbated last year.
At the same time, global security conditions have become more
complex, causing major transformations, especially in North Africa
and the Middle East, which are not only important to the world’s
energy supplies but also to global trade. is has also aected Swe-
den, in part because it decided to participate in the NATO opera-
tion in Libya with aerial surveillance and related support resources.
e mission was carried out with ve Gripen aircra.
2011 was a breakthrough year for the Gripen system by the fact
that the Swiss Armed Forces announced its selection of Gripen in a
major international procurement. e main reason mentioned was
the one generally cited as Saab’s biggest competitive advantage: its
solutions provide better value for the money. As part of the oer,
Sweden is also able to oer extensive industrial collaborations with
Swiss companies, so-called osets, which will create value for both
Swiss and Swedish businesses.
Innovative capabilities are crucial to our competitiveness
Sweden has historically had an innovative business sector, where
Saab is one of a number of key players. Saab has long been one of
the country’s most engineering focused and innovation focused
companies, where around 20 per cent of sales is reinvested in
research and development. is has not only led to major export
successes and new jobs in our operations but also created a number
of new operating areas and spinos, where technologies that origi-
nated in defence solutions have found broad civil application, e.g.,
in road tolls and web-based mapping solutions. In this way, Saab
has served as an incubator for Swedish high-tech innovation. It is
important that we remain one.
Staying innovative in a changing nancial, geopolitical and
market landscape is a challenge for both Sweden and Saab. It is in
no small measure a question of access to capital for the necessary
investments in R&D and development work. Faced with shrinking
defence budgets, we must increasingly nance this work ourselves.
is and the large customer projects we are working on are two
big reasons why Saab has built up a strong balance sheet and cash
reserves. Continued success also requires that we can build on the
many international alliances and relationships we have established,
especially in 2011, when Saab’s internationalisation was advanced
through acquisitions and
expansion in accordance
with our strategic goals. is
includes the acquisition of
the U.S. company Sensis,
which strengthens our exist-
ing product portfolio and
improves our market pres-
ence globally and in the US.
Saab is an open and trans-
parent company that actively
takes part in establishing
global guidelines and rules
on business ethics. Our code
of conduct is an important
part of how we work and was
developed based on the OECD’s guidelines for multinationals. We
also abide by the UN’s Global Compact and its principles on human
rights, labour conditions, the environment and anti-corruption.
We have to maintain our financial strength
Our long-term nancial goals remain rm, and our strong nancial
position is an important asset in the current market climate. Saab
will continue to focus on strengthening protability and generating
strong operating cash ow, which will be needed in the future to in-
vest in research and development. is is critical if we are going to
maintain a high technological level, further improve our competi-
tive advantages and create long-term value for our shareholders.
I am convinced that Saab has major opportunities going
forward. Saab’s strength is being able to deliver high-quality solu-
tions that are cost-ecient to buy, operate and maintain, making
them competitive in a world where scal and economic conditions
remain uncertain.
Stockholm, February 2012
Marcus Wallenberg
Chairman of the Board