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44 SAAB ANNUAL REPORT 2012
ADMINISTRATION REPORT > FINANCIAL REVIEW
FINANCIAL REVIEW 2012
Saab AB (publ.), corporate identity number 556036-0793, with
its registered address in Linköping, Sweden. The address of the
company’s head ofce is Gustavlundsvägen 42, Stockholm, with
the mailing address Box 12062, SE-102 22 Stockholm, Sweden,
and the telephone number +46 8 463 00 00.
Saab has been listed on the NASDAQ OMX Stockholm since
1998 and on the Large Cap List since October 2006. The largest
shareholder is Investor AB, with 30 per cent of the shares, cor-
responding to 40.6 per cent of the votes. The share of the votes
has been calculated based on the number of shares, excluding
Treasury shares at year-end. The total number of shares in the
company is 109,150,344, distributed between 1,907,123 Series A
shares with ten votes each and 107,243,221 Series B shares with
one vote each. At year-end, a total of 3,219,515 Series B shares
had been repurchased to guarantee the Group’s various share
matching plans. The repurchased shares are held as treasury
shares.
In accordance with the Swedish Annual Account Act, Saab has
prepared a corporate governance report separate from the annual
report. It can be found in this document on pages 124-133. The
corporate governance report contains the Board of Directors’
report on internal control of nancial reporting, which includes in-
formation for both the Parent Company and the Group. See pages
128-130 in this document.
Operations
As one of the world’s leading high technology companies, Saab
offers products, solutions and services for military defence and
civil security. In 2012, we had customers in over 100 countries
while research and development are principally carried out in
Sweden. We are primarily have operations in Sweden, South
Africa, Australia and the U.S. Saab is organised in six business
areas: Aeronautics, Dynamics, Electronic Defence Systems,
Security and Defence Solutions, Support and Services, and
Combitech. Combitech, which provides consulting services, is an
independent, wholly owned subsidiary of Saab and is reported as
a business segment.
In addition to the business areas, Corporate comprises Group
staff and departments and secondary operations. It also includes
the leasing eet of Saab 340 and Saab 2000 aircraft.
Long-term financial objectives
The long-term nancial goals as of 2011 consist of goals for
organic sales growth, operating margin after depreciation and
amortisation (EBIT) and the equity/asset ratio.
Long-Term Financial Goal Performance In 2012
Growth
Goal: Our organic sales growth will average 5 per cent per year
over a business cycle.
Result 2012: In 2012, organic sales growth was -2 per cent (-4).
Sales increased 2 per cent in the year compared to 2011 as a
result of acquisitions. Exchange rates had no signicant impact
on sales. Sales in markets outside Sweden amounted to MSEK
15,245 (14,829), or 64per cent (63) of total sales. Of sales, 82 per
cent (84) was related to the defence market.
Operating margin (EBIT)
Goal: We have a goal for the EBIT-margin formulated as an aver-
age over a business cycle. The EBIT-margin shall be at least
10 per cent
Result 2012: The operating margin after depreciation and amortisa-
tion (EBIT) in 2012 amounted to 8.5 per cent (12.5).
This included a non-recurring item of MSEK 207 from a reduc-
tion of a potential earn-out liability. 2011 included capital gains of
MSEK 1,169. Adjusted for non-recurring items the EBIT-margin
was 7.6 per cent (7.5).
Equity/Assets ratio
Goal: Our goal is an equity/assets ratio exceeding 30 per cent.
Result 2012: At year-end 2012, the equity/assets ratio was
47.5 per cent (41.1).
Dividend And Dividend Policy
Proposal for 2012 dividend and dividend policy
Saab’s long-term dividend objective is to distribute 20–40 per
cent of net income over a business cycle to shareholders.
For 2012, the Board of Directors proposes a dividend of
SEK 4.50 per share (4.50). This would represent 30 per cent
of net income in 2012 (21).
Outlook 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.