Saab 2010 Annual Report Download - page 61
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aircra. e impact on Saab’s protability could be negative if the
aircra are not being used.
Managing risks in connection with the leasing operations
Saab’s direct risk-taking in the leasing eet has been managed prima-
rily through various types of insurance. e leasing eet is expected
to be liquidated by . Until then, Saab will carry out these opera-
tions in accordance with the terms and conditions of its insurance.
As of December , Saab’s leasing portfolio consisted of
turboprop Saab and Saab aircra. Of the eet, are
nanced through US leverage leases. Rents from these leases are
insured through the Export Credits Guarantee Board (EKN) in
Sweden. Sixty-four aircra are nanced internally and recognized as
assets in the balance sheet.
Provisions on the balance sheet related to the leasing portfolio
are deemed as sucient for the remaining risks.
FINANCIAL RISKS
In its operations, Saab is exposed to various nancial risks such as
foreign currency, interest rate, renancing, credit and commodity
risks. Management of nancial risks is governed by the Group Treasury
Policy established by the Board of Directors. Moreover, detailed
directives and processes are in place for operating management of
each area. Overarching responsibility for managing nancial risks
lies with Group Treasury.
e risks that are actively managed are:
• Foreign currency
• Interest rate
• Renancing
• Credit and counterparties
• Commodities
Financial risk management is described in more detail in Note .
Pension obligations
e Group’s pension obligations are substantial, as indicated in Note
. In the calculation of pension obligations, future pension obliga-
tions are discounted to present value. e size of the liability is
dependent on the choice of discount rate: a low interest rate pro-
duces a high liability, and vice versa. To manage the pension liability,
the Saab Pension Fund was established in and capitalised with
the corresponding PRI liability. e Group’s obligations are calcu-
lated on an actuarial basis each year, aer which a comparison is
drawn with the fund’s assets. Decits according to such calculations
may require Saab to contribute additional funds. e Saab Pension
Fund’s objective is a real annual return of at least per cent on
invested capital. e fund invests in interest-bearing securities,
equities and hedge funds.
Pictures on the right side:
Ports are important hubs in a flow society and require
innovative security solutions.
58 SAAB ANNUAL REPORT 2010
ADMINISTRATION REPORT > RISKS AND RISK MANAGEMENT