Saab 2010 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 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

e order backlog amounted to MSEK , (,). Sales fell by
 per cent, amounting to MSEK , (,). Operating income
amounted to MSEK  (,), corresponding to a margin of . per
cent (.). Adjusted for non-recurring items of MSEK - (),
operating income amounted to MSEK , (,), corresponding
to an adjusted operating margin of . per cent (.).
DIVIDEND AND DIVIDEND POLICY
Proposal for 2011 dividend and dividend policy
Saab’s long-term dividend objective is to distribute – per cent of
net income over a business cycle to shareholders. For , the Board
of Directors proposes a dividend of SEK . per share (.).
OUTLOOK 2011
In , we estimate that sales will decline slightly compared to .
e operating margin is expected to increase slightly in 
compared to the adjusted operating margin in .
LONG-TERM FINANCIAL GOALS AS OF 2011
Growth
• Over a business cycle, our organic sales growth will average  per
cent per year.
Operating margin
• e operating margin aer depreciation/amortisation (EBIT)
will be at least  per cent.
Equity/assets ratio
• e equity/assets ratio will exceed  per cent.
IMPORTANT EVENTS IN 2010
• In March, Saab received an order from the Swedish Defence Materiel
Administration (FMV) for the development of the existing Gripen fleet.
The order value amounts to SEK 2 billion, split over four years.
• During the second quarter, the Board of Directors received requests from
shareholders to convert 3,347,180 Series A shares in Saab AB to Series B
shares. As a result of the conversion, the total number of votes in the com-
pany was reduced from 156,439,071 to 126,314,451. The total number
of registered shares in Saab AB is 109,150,344, of which 1,907,123 are
Series A shares and 107,243,221 are Series B shares.
• The contract between Saab and OKG Aktiebolag on the delivery of perim-
eter security for the Oskarshamn nuclear power plant was terminated.
Saab’s 2010 earnings were charged with expenses of MSEK 150 related
to the terminated contract.
• In September, Håkan Bushke took office as the new President and CEO
of Saab. He was previously President of E.ON Sweden and CEO of E.ON
Nordic. The previous President and CEO, Åke Svensson, remains a mem-
ber of Saab’s Board of Directors.
• In October, Saab received an order for an airborne surveillance system
worth more than SEK 4.5 billion. The order concerns the delivery of the
Saab 2000 AEW&C (Airborne Early Warning & Control) system, which
comprises a Saab 2000 aircraft equipped with the advanced ERIEYE
radar system. The contract also includes ground equipment, logistics and
support services.
• As a part of a long-term strategic adjustment to changing market condi-
tions, Saab decided in November to reorganise the operations of the
Dynamics business area. Notice was served to more than 200 employ-
ees. Moreover, efficiency improvements were launched in the Electronic
Defence Systems business area and in Corporate functions. Costs of
MSEK 519 related to these measures was charged against operating
income in the fourth quarter 2010.
• At the end of the year, Saab received an order from FMV for six Gripen air-
craft intended for the Royal Thai Air Force. The order is worth about SEK
2.2 billion.
SAAB ANNUAL REPORT 2010 33
ADMINISTRATION REPORT > FINANCIAL REVIEW 2010