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SAAB ANNUAL REPORT 2011 25
STRATEGY > PORTFOLIO
We develop and supply products and services in both the short
term (about 12 months) and the longer term. Short-term projects
include the area of civil security, where Saab is developing security
management systems for prisons and airports.
A typical example of a long-term research project is the Europe-
an research collaboration Clean Sky, which is designed to promote
greener air transports. Saab’s role in the project is to develop a new,
energy-ecient smart wing, which will be launched on the market
in 2020-2025. is type of long-term project accounts for about ten
per cent of Saab’s self-nanced research and development budget.
OUR FOCUS 2012: STRENGTHENED
CORE PORTFOLIO
Acquisitions and collaborations
To strengthen our core portfolio while maintaining our desired
ratio between development costs and sales, we continue to take
strategic measures. is includes everything from divestments
to international partnerships and acquisitions.
Research and development
During the period, we are planning to increase the rate of
investment in many of our product segments. Investments in
the development of the Gripen system are expected to remain
extensive depending on whether we receive addition orders for
Gripen. e large part of these investments will be customer-
nanced. In other product segments, we expect future product
development to be self-nanced to varying degrees.
We will continue to improve our product management
process by introducing a uniform product portfolio process in
2012. e purpose of the process is to be able to analyse gaps in
the portfolio and prioritise potential investments.
Reduced balance sheet risk and stable foundation for
future protability
As of 1 January 2009, we changed the application of the ac-
counting principles for development costs. As a result of this
more conservative view, development costs are capitalised at a
later stage in all projects and all capitalised development costs
are amortised over a maximum of 10 years. Consequently, capi-
talised development costs have decreased by 46 per cent, from
MSEK 3,628 at year-end 2008 to MSEK 1,950. is means we
have reduced our exposure to unexpected write-downs.
2011201020092008
0
6
12
18
24
%
2011201020092008
0
625
1,250
1,875
2,500
MSEK
R&D AS SHARE OF SALES SELF-FINANCED R&D AND DEPRECIATION,
AMORTISATION AND WRITE-DOWNS
Self-financed
research &
development
Depreciation,
amortisation and
write-downs of capitalised
development costs
2011201020092008
0
1,000
2,000
3,000
4,000
MSEK
CAPITALISED DEVELOPMENT COSTS
2008–2011