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LONG-TERM STRATEGIC AND
FINANCIAL GOALS
Saab’s strategy is focused on four
areas: profitable growth, efficient oper-
ations, a focused portfolio and our peo-
ple. We create long-term value by
working to accomplish our strategic
priorities, delivering sales growth and
profitability, and maintaining a solid bal-
ance sheet. Our focus on capital efficiency and generat-
ing strong cash flow also contribute to this.
LONG-TERM STRATEGIC GOALS
In , an analysis was made of Saab’s long-term goals. In light of
the strategic priorities, the long-term nancial goals communicated
externally were revised slightly.
e long-term nancial goals now consist of goals for organic
sales growth, operating margin aer depreciation and amortisation
(EBIT) and the equity/assets ratio.
e previous targets for the operating margin before depreciation/
amortisation (EBITDA) and return on equity will not be reported as
of .
Profitable growth
In order to achieve our long-term sales growth goal, we will stay
focused in coming years on markets where we are already estab-
lished: the Nordic region, many European countries, South Africa
and Australia. In addition, we will establish a stronger local presence
in selected markets such as North America, the UK, South America
(Brazil) and Asia (ailand and India).
Performance
Our eciency improvement program was successfully nalised in
. We have now reduced Saab’s cost base by SEK . billion over
a three-year period. e market is constantly changing, which
requires that we keep up with developments and in many cases that
we stay on the forefront of change. is is why we continue to
improve eciencies in operations, focus on capital eciency and
generate strong cash ow.
Portfolio
To achieve our growth target, we have to invest partly in product
innovation and partly in renewal and upgrades of existing products
and systems. Investments in the portfolio will be prioritised in areas
where we already have competitive technology and/or a competitive
market position and our aim is to strengthen or retain our unique
systems expertise.
People
Our employees are the foundation that enables us to implement our
strategy and achieve our strategic and nancial goals. Our market is
changing, and successful changes require condence in the future.
We want to be an employer of choice for current and future employ-
ees who seek development opportunities and continuous change.
LONG-TERM FINANCIAL GOALS
Growth
Over a business cycle, our organic sales growth will average  per
cent per year.
It is possible that growth will also be achieved through acquisi-
tions if value-creating opportunities arise within our priority areas
in the years ahead.
Operating margin
e operating margin aer depreciation/amortisation (EBIT) will be
at least  per cent.
Equity/asset ratio
e equity/assets ratio shall exceed  per cent.
Dividend policy
Saab’s long-term dividend objective is to distribute – per cent of
net income over a business cycle to shareholders.
PROFITABLE
GROWTH
PORTFOLIO
PERFORMANCE
PEOPLE
12 SAAB ANNUAL REPORT 2010
SAAB’S LONG-TERM GOALS