Saab 2010 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2010 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 149

  • 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
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149

Saab has good references in Brazil, including having sold five ERIEYE aircraft that are being used for surveillance and to fight the drug trade in
Amazonas State. The economy is growing, and today Brazil is a strong, stable country leading the way for the entire Latin American region. This
is underscored by the fact that it will play host to both the World Cup in 2014 and the Olympics in 2016. Mexico, Peru, Chile and Colombia are
other countries with stable economies – and are potentially important future markets for Saab.
“Interest in various Saab systems is strong here, especially for various types of surveillance solutions such as the ERIEYE system that Brazil has
today,” said Bo Torrestedt, Vice President and Head of Region Latin America & Sub Saharan Africa.
ASIA AUSTRALIA NORTH AND SOUTH AMERICA
After China, Japan is the country in the region
with the highest defence spending, followed by
India and South Korea. The region is expected to
increase its military spending in the next five-year
period. This is partly due to the financial stability
of a number of countries and partly to China’s
conspicuous efforts to become a military super-
power.
Spending on civil security has also increased
dramatically as the economies in the region and
their infrastructure needs have grown. This trend
is also expected to continue.
Australia ranked 14th in defence expenditure in
2009, or 1.2 per cent of the global total. The
country is expected to remain at this level, or
possibly decline slightly, in the next five-year
period. The civil security market, on the other
hand, is expected to grow.
The US accounts for nearly half of global defence
spending, or about USD 661 billion. US defence
spending is expected to continue to rise in the
short term, but decrease overall in the next five
years. This will depend on developments in
Afghanistan and Iraq as well as the conse-
quences of the financial crisis, which continue to
affect the US fiscal situation. Homeland security
spending has increased sharply in the last dec-
ade today. With threats still looming against civil
society, this market is expected to continue to
grow at a rapid pace.
In South America, Brazil spent the most on its
defence in the region, accounting for 1.7 per cent
of the global total in 2009. Canada accounted for
1.2 per cent of the global total in the same year.
India and Thailand are two of Saab’s most impor-
tant markets in Asia. In 2010, Saab signed a co-
operation agreement with Mahindra Tech of India
and a letter of intent to become a part owner and
strategic partner of the Thai company Aviasat-
com, which develops and supplies products for
the Thai Armed Forces. Through the agree-
ments, Saab has consolidated its position in
these two markets. Asia accounted for about
15 per cent (19) of total sales in 2010.
Saab has had a strong local position in the Aus-
tralian market for many years with sales in several
different segments. Australia and other countries
accounted for 5 per cent (4) of total sales in 2010.
North America is one of Saab’s key markets with
high growth potential. During the last year, Saab
has therefore invested in further strengthening its
position and presence in the region. North Amer-
ica currently accounts for about 9 per cent (8) of
Saab’s sales. In South America, Brazil is Saab’s
most important growth market.
SOUTH AMERICA IS A FUTURE MARKET
SAAB ANNUAL REPORT 2010 29
SAAB’S MARKETS BY REGION