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54 SAAB ANNUAL REPORT 2011
ADMINISTRATION REPORT > SAAB’S BUSINESS AREAS
ELECTRONIC DEFENCE SYSTEMS
Electronic Defence Systems offers a product portfolio
comprising airborne, land-based and naval systems in
radar, signals intelligence and self-protection. The busi-
ness area also supplies civil and military customers with
avionics that increase flight mission efficiency and flight
safety. Products include Giraffe AMB, Erieye, Arthur, BOL
and IDAS.
SALES, INCOME AND ORDERS
Orders received
Orders received in 2011 included an airborne electronic warfare
self-protection system (named IDAS, Integrated Defensive Aids
Suite) and an order from LIG Nex1, the prime contractor in South
Korea, for the weapon locating system Arthur. An order was also
received for the Girae AMB multi-mission radar system and
related services from the US Department of State.
Orders received where the order sum exceeded MSEK 100 rep-
resented 23 per cent (58) of total order bookings.
Sales
Sales in 2011 increased mainly as a result of a higher activity level
in a signicant airborne early warning project during the year. e
project was nalised at the end of the year.
Markets outside Sweden accounted for 76 per cent (62) of sales.
Income and margin
Protability increased in 2011 as a result of the divestment of the own-
ership interest of 42.4 per cent in the South African system engineer-
ing company Grintek Ewation to Cassidian, a division of EADS. e
transaction generated a capital gain before tax of MSEK 122.
During the second half of 2011, operating income was negatively
aected by structural costs related to the acquisition of Sensis.
In 2010, the operating margin was positively aected by a claim re-
lated to a nalised project where Saab reduced its estimated risk share.
Operating cash flow
In the fourth quarter the operating cash ow was negatively im-
pacted by delays in a few projects.
Operating cash ow was positively impacted by MSEK 179 as a
result of the divestment of the ownership interest in Grintek Ewation.
e acquisition of Sensis had a negative impact on operating
cash ow of about MSEK 230.
Electronic Defence Systems was a supplier to several projects
in Aeronautics that entered into their nal stages of completion in
2010 and 2011. ese projects have been successfully delivered to
the customer and Saab has managed to execute them at a lower cost
level than originally planned. A nal price adjustment of MSEK 170
was therefore made in the fourth quarter 2011.
KEY FIGURES
MSEK 2011 2010
Sales 4,561 4,354
Operating income 297 99
Adjusted operating margin, % 6.5 2.3
Order bookings 3,229 5,494
Order backlog at year-end 6,855 8,240
Operating cash flow 413 594
EBITDA 785 589
EBITDA margin, % 17.2 13.5
18%
201120102009
0
2,000
1,000
3,000
4,000
5,000
0
60
120
180
240
300
201120102009 0
2
4
6
8
10
Operating income, MSEK Operating margin, %
SALES, MSEK OPERATING INCOME AND
MARGIN
SHARE OF SALES 2011, %