Saab 2012 Annual Report Download - page 53

SAAB ANNUAL REPORT 2012 49
ADMINISTRATION REPORT > BUSINESS AREAS
SECURITY AND DEFENCE
SOLUTIONS
Services and solutions
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mand, control, communications and intelligence) systems,
WISR solutions and security solutions, as well as training and
simulation.
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around airports. All the information they record is linked in real
time to the air trafc control centre and projected onto a 360-de-
gree view. This cost-effective solution allows several airports to
be monitored from a single location.
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Warning & Control).
Orders received
Orders received increased in 2012 due to several large orders
received in the year and the acquisition of Sensis in 2011.
Saab signed a ve year contract with the U.S. Federal Aviation
Administration (FAA) for the Airport Surface Surveillance Capabil-
ity (ASSC) programme in the beginning of 2012. Orders from the
programme in 2012 amounted to about MSEK 228.
In addition, Saab signed a two year extension for the Deployable
Tactical Engagement Simulation training system (DTES) managed
service from the UK Ministry of Defence. A multi-year contract
for the next generation laser-based training systems for the U.S.
Army’s armored combat vehicles was also secured. BAE Systems,
Sweden, placed an order for the sight and re control system
UTAAS (Universal Tank and Anti-Aircraft Sight) on combat vehicle
CV9030N, for the Norwegian Army, and an order was also received
from the Royal Thai Navy for the upgrading of the command and
control system on the aircraft carrier H.T.M.S. Chakri Naruebet.
FMV also ordered further development of systems for air trafc
management and airbases for the Swedish Armed Forces.
In New Zealand, Saab received an order from SecureFuture to
provide the security management system for a new prison at Wiri,
South Auckland.
Orders received, where the order sum exceeded MSEK 100,
represented 44 per cent (40) of total order bookings.
Sales
Sales increased in 2012 as a result of the acquisition of Sensis in
2011 and HITT during the autumn of 2012. Market conditions in
South Africa remained challenging throughout the year.
Markets outside Sweden accounted for 76 per cent (77) of sales.
Income and margin
During the second quarter 2012, a posititve non-recurring item
from a reduction in the potential earn-out liability related to the
acquisition of Sensis contributed with MSEK 53 to the operating
income.
The integration of Saab Sensis was nalised in the second half
of 2012.
Cash flow
Operating cash ow was negative in 2012. The decrease com-
pared to 2011 is due to timing differences of milestone payments
as well as the acquisition of HITT. Approximately MSEK 240 had
been paid for HITT at the end of December 2012. The acquisition
was nanced through existing funds.
Employees
During the second quarter Saab announced it would investigate
how to reorganise the business in South Africa to meet local and
global nancial challenges. The new organisational structure
was dened during the third quarter and was implemented in the
fourth quarter 2012. A part of Security and Defence Solution’s
business in South Africa, regarding radio communications with
about 100 employees, was sold as part of the reorganisation in
the third quarter 2012.
The number of employees increased as a result of the acquisi-
tion of HITT that had 188 employees.
23%
share of sales.
Key figures
MSEK 2012 2011
Order bookings 5,307 4,582
Order backlog 7,150 7,712
Sales 5,976 5,704
EBITDA 555 502
EBITDA-margin, % 9.3 8.8
Operating income 417 394
Adjusted operating
margin, % 7.0 6.9
Operating cash flow -191 584
No. of employees 3,079 2,994
Security and Defence Solutions offers a product portfolio comprising defence reconnaissance
systems, airborne early warning systems, training and simulation, air trafc management,
maritime security, security and monitoring systems, and solutions for safe, robust commu-
nications. Products include 9LV combat management and re control systems, the Remote
Tower air trafc management system and the Tacticall communication integration system.
Order bookings,
SEK billion Sales, SEK billion Adjusted operating margin, %
4.6
5.3
2012201120102009
6.6
6.0
5.7
6.0
2012201120102009
6.2
5.8
6.9 7.0
2012201120102009
2.2
4.8