Saab 2010 Annual Report Download - page 17

Saab operates in the global market for defence and secu-
rity solutions and develops world-leading solutions and
systems with broad-based military and civil applications.
As one of Sweden’s most R&D intensive companies,
development co-operations are an important pillar of
our future.
Core competence
Systems engineering – understanding and being able to integrate
complex systems, our own and others’ – is Saab’s core competence.
At the same time that we have world-leading technology in a
number of important areas, we work today with open systems as far
as possible. Multiple applications and the ability to coordinate sys-
tems are the keys to our product development, making it possible to
integrate products into larger military and civil operations.
Market position
We address traditional defence needs with a core oering consisting
of products and systems to safeguard national borders. To a growing
extent, we also address the functional and security needs of the glo-
bal ow society, which includes the civil security market.
e large market segments where we have a strong position and
good growth opportunities are ghter aircra and command and con-
trol systems, reconnaissance and surveillance systems, including Air-
borne Early Warning (AEW) systems, tactical weapon and missile sys-
tems, and Command, Control, Computing Intelligence, Surveillance
and Reconnaissance (CISR) systems. We also have a strong niche
position in civil aeronautics as a supplier to Airbus and Boeing.
We have very strong positions in selected regions in the growth seg-
ments of civil security, support and service, training and underwater
systems, as well as niche segments such as signals intelligence.
In the military eld, we sell to defence authorities as well as other
defence companies as a subcontractor. Geographically, we have a
strong position in Sweden and good positions in South Africa and
Australia. Our goal is to consolidate and strengthen our position in the
other Nordic countries and selected countries in Europe, while build-
ing strong positions primarily in North America, Brazil, India and
Southeast Asia.
Organisation and culture
As of  January , Saab’s operations are divided into ve business
areas: Aeronautics, Dynamics, Electronic Defence Systems, Security
and Defence Solutions, and Support and Services. A large part of
business operations are conducted by the Parent Company and the
rest by the Group’s wholly and partly owned companies.
Four strategic priorities
Looking ahead, our aim is to continue to work toward our strategic pri-
orities: protable growth, performance, the portfolio and our people.
e following pages present our work in each of these four areas.
STRENGTHS, WEAKNESSES, OPPORTUNITIES
AND CHALLENGES FOR SAAB
• Saab has a well-positioned product portfolio based on world-leading
technology. We have unique systems expertise and the capability to sup-
ply complex systems.
• Our strong balance sheet gives us a solid platform to implement our strat-
egy. Cash flow generation is good as well. Our management and control
systems ensure a business focus and continuous efficiency improvements.
• Although we created cost efficiencies in 2010, further improving operating
efficiency and productivity is critical.
• International competition is increasing, partly due to lower defence spend-
ing in Western democracies, where many leading defence companies are
based.
• Our dependency on customer-financed R&D is a challenge. Around two-
thirds of customer financing currently comes from Sweden. Our growth
opportunities are primarily in other countries, including selected markets
where we are working to increase customer financing.
• The reliance on major orders such as Gripen, AEW and Bamse is a challenge.
Saab’s advantage is that our Swedish base makes us a neutral choice.
• Finding the right civil applications for our core technologies is both a chal-
lenge and an opportunity. We have the ability to supply systems that main-
tain various flows in society, in defence and civil security.
• One of our strengths is that we have about 80 per cent of our employees
in Sweden at the same time that our growth potential is primarily outside
the country, which enables us to create interesting job opportunities in
other markets, create greater diversity and attract talent from markets out-
side Sweden.
• We have a unique industrial co-operation offering and a large network of
contacts around the world. Our commitment to the community and focus
on sustainable business (social engagement and business ethics) give us
a stable platform to build on.
SAAB’S STARTING
POSITION
Saab’s four strategic priorities
PROFITABLE
GROWTH
PORTFOLIO
PERFORMANCE
PEOPLE
14 SAAB ANNUAL REPORT 2010
SAAB’S STRATEGIC PRIORITIES