Saab 2010 Annual Report Download - page 16

ATTAINMENT OF LONG-TERM
STRATEGIC AND FINANCIAL
GOALS FOR 2010
Despite a continued challenging business environment,
our order bookings increased in 2010 and the order back-
log grew. Underlying profitability improved throughout the
year, we improved the level of capital employed and gener-
ated strong cash flow. In addition, measures were taken to
restructure operations and improve efficiencies as an ele-
ment in a long-term strategic adjustment to changing mar-
ket conditions.
STRATEGIC PRIORITIES
Profitable growth
In , we received major orders for both the Gripen system and
airborne surveillance systems, which consolidated our strong posi-
tion in the area. We also took measures to strengthen our local pres-
ence in markets such as ailand, Brazil and the US. In South Africa,
we entered into a collaboration with Sekunjalo Investment Ltd – a
step to further strengthen position in South Africa and in the sub-
Saharan region.
Performance
Our eciency improvement programme was successfully nalised in
. In addition to this programme, we took measures to improve
eciencies. We decided to reduce the number of operating locations
and improve eciencies in areas with high administrative costs. is
means that the Dynamics business area’s operations in Eskilstuna will
be terminated in  and that the underwater vehicles operations in
Motala will be restructured. All employees in Motala were served
notice. In addition, eciencies were achieved in the Electronic
Defence Systems business area and in Corporate functions.
Portfolio
In , we continue to focus the portfolio through structural meas-
ures. We decided to integrate the Motala-based underwater vehicles
operations with UK-based Saab Seaeye Ltd. e launch of SAFE (Sit-
uational Awareness for Enhanced Security) illustrates the progress
we have made in civil security and product innovation. Based on a
powerful command and control system and an advanced and inte-
grated platform, SAFE serves as a core to monitor and oversee safety
and security in daily operations.
People
In , we worked on harmonising overarching HR processes in
order to better address business-critical HR-related issues. We have
also focused on our change process with the goal of strengthening
the communicative leadership abilities of our managers. In , 
per cent () of employees in the organisation were women, and the
share of female managers is  per cent (). Saab was named Swe-
den’s best workplace during the year by the business magazine Veck-
ans Aärer, which made gender equality an important part of its
evaluation.
LONG-TERM FINANCIAL GOAL PERFORMANCE IN 2010
Growth
Goal: is goal was previously the same as in the new long-term goal
formulation. Our organic sales growth will average  per cent per
year over a business cycle.
Result : In , organic sales growth was - per cent ().
Operating margin
Goal: We had two margin goals in , both formulated as an aver-
age over a business cycle.
e goal for operating margin aer depreciation/amortisation
was at least  per cent and it remains the same in the new long-term
goal formulation. e goal for the operating margin before deprecia-
tion/amortisation is at least  per cent.
Result : e operating margin aer depreciation/amortisa-
tion (EBIT) in  was . per cent (.). Adjusted for non-recur-
ring items, the operating margin was . per cent (.).
e operating margin before depreciation/amortisation
(EBITDA) was . per cent (.).
Return on equity
e ROI goal in  was an average  per cent. In , we reached a
return of . per cent (.).
Equity/assets ratio
Our goal in  was an equity/assets ratio exceeding  per cent,
which still remains in the new goal formulation. At year-end ,
the equity/assets ratio was . per cent (.).
SAAB ANNUAL REPORT 2010 13
SAAB’S PERFORMANCE