Saab 2014 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2014 Saab annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

GOALS
SAAB’S FINANCIAL GOALS
The long-term financial goals as of 2011 consist of goals for
organic sales growth, operating margin (EBIT) and equity/assets
ratio. Saab has a long-term dividend goal as well.
DIVIDEND
e long-term dividend goal is to distribute
20–40 per cent of net income to the shareholders
over a business cycle.
EQUITY/ASSETS RATIO
e equity/assets ratio will exceed 30 per cent. At
year-end 2014, the equity/assets ratio was 38.5 per
cent (44.0).
%
0
3
6
9
12
15
1413121110
Operating margin,
2010 – 2014
%
0
10
20
30
40
50
1413121110
Equity/assets ratio,
2010 – 2014
Sales, 2010 – 2014
SEK billion
0
5
10
15
20
25
1413121110
SALES
Average organic sales growth of 5 per cent per
year over a business cycle. In 2014, organic sales
declined by -3 per cent (-2).
RESULT:
e sales level has been stable for several years,
while growth has been limited by budget cons-
traints in the defence and security market. Business
area Dynamics has seen a signicant decline, while
business area Security and Defence Solutions is
growing. e increased order backlog should lead
to a future sales increase.
OPERATING MARGIN
Average operating margin (EBIT) of at least 10 per
cent per year over a business cycle. In 2014, the
operating margin (EBIT) was 7.1 per cent (5.7).
RESULT:
In recent years, the market situation has been
challenging with signicant price pressure, not least
in civil security. e eciency measures Saab laun-
ched in 2013 have led to MSEK 500 in eciency
improvements. Saab has improved its competitive
strength, increased R&D investments and raised the
operating margin in certain areas. Saab’s view on
capitalising development costs since 2009 has a
negative eect on the operating margin, since develop-
ment costs are recognised directly in prot or loss,
at the same time that previously capitalised develop-
ment costs are amortised faster than before.
RESULT:
Saab’s equity/assets ratio has consistently exceeded
the Group’s goal for many years. In 2014, the equity/
assets ratio fell to 38.5 per cent due to increased fun-
ding during the year.
RESULT:
For 2014, the Board of Directors proposes a
dividend of SEK 4.75 per share (4.50), corre-
sponding to 43 per cent (65) of net income. 4.75
SAAB ANNUAL REPORT 2014 – 23