Saab 2014 Annual Report Download - page 6

CHAIRMAN’S STATEMENT
2014 – A SIGNIFICANT YEAR
e world is constantly changing, and doing so
quickly. People are nding new solutions to the
problems of today and tomorrow. ere are
numerous uncertainties, but in many ways our
world is developing in a positive direction. More
children than ever, both boys and girls, are getting
an education. In Sweden, progress continues to be
made in high technology, innovation and exports.
While there are many positive signs, there are
also plenty of challenges. Global economic develop-
ment remains problematic, and is also aected by
political developments in many parts of the world.
Conicts between countries and between various
groups, not to mention the alarming increase in
extremism and terrorism, make everyone less safe.
Saab is aected by this trend. A high-tech com-
pany that oers defence and security solutions so
that countries can protect their borders and their
people is naturally going to be impacted in several
ways. It has been that way since Saab was founded.
e core of Saab’s daily mission is to push develop-
ment forward in order to safeguard the right of
every individual to safety and security. It is a
privilege to play a part in this process.
COLLABORATIVE INNOVATION
My grandfather played a role at Saab at the very
beginning. When the company was created, Par-
liament felt that Sweden should have the capacity
to develop its own combat aircra, since it was
dicult on the brink of a world war to procure
defence materiel from other countries. Ever since,
it has been critical for Saab to co-operate with the
Swedish Armed Forces and to supply cost-ecient,
innovative and competitive products and solu-
tions. Today, Saab is an international company.
In 2014, it devoted about 25 per cent of sales to
research and development. A large part of that
development is conducted in close collaboration
with customers from around the world, and their
demands help to shape us as a company. e Gripen
coombat aircra system is an example how internal
eciency, close co-operation with customers and
the best suppliers from around the world can
produce high quality and commercial success.
2014 – A MILESTONE IN SAAB’S HISTORY
In summing up 2014, I would call it one of the
modern Saab’s most important years ever. ere
have been a number of past milestones, of course,
including 1998, when Saab received its rst export
order for Gripen from South Africa, and 2006, when
Ericsson Microwave Systems was acquired, ena-
bling Saab to develop world-leading radar systems.
But 2014 was signicant in several ways. In a
national referendum in May, the Swiss voted no to
the funding plan for Gripen. is was naturally a
disappointment, but the fact remains that the Swiss
government’s choice of Gripen helped in the suc-
cessful development of the system. When the histor-
ical contract was later signed with Brazil on the next
generation Gripen, interest in the ghter increased
signicantly around the world. rough an acquisi-
tion we have created Saab Kockums, further broad-
ening Saab’s product portfolio. Today, the company
can develop, produce and supply turnkey solutions
for military or civilian needs. In this way, Saab’s
solutions help to address security threats and to
promote security, democracy and development.
GROWTH AND LONG BUSINESS CYCLES
At year-end, Saab’s order backlog amounted to
approximately SEK 60 billion, nearly double that of
two years earlier. is provides a stable foundation
for future growth. At the same time, improvements
are continuously being made to the product port-
folio to ensure that Saab remains at the forefront of
technological innovation. In 2014, aer years of
self-nanced development, the company launched
several world-leading technologies. e industry’s
business cycles are long, and it is not unusual that
the time between initial discussion and signed
contract is several years, or, in some cases, decades.
An established presence in local markets, a contin-
uous focus on higher eciency and openness to
new development opportunities are the keys to
successful growth.
INCREASED TRADE STIMULATES GROWTH
An increasingly integrated society requires tech-
nologies with the exibility, multifunctionality
and ability to operate jointly. In last year’s annual
report I wrote about the importance of technology
transfers and exchanging skills, as well as long-
term collaborations between countries and various
other parties. is remained important in 2014
and, in several ways, intensied. A good example
is the discussions on a trade agreement between
the European Union and the US (Transatlantic
Trade and Investment Partnership, TTIP). An
My fellow shareholders and others with an interest in Saab, as Chairman I would
first and foremost like to thank Saab’s CEO, Group Management and employees
for the excellent job they did in 2014. Saab strengthened its foundation for growth
in a number of ways during the year, including by signing a contract with Brazil
on the development and production of Gripen NG and by expanding its naval
capabilities in Sweden through the acquisition of Saab Kockums.
2 – SAAB ANNUAL REPORT 2014