Saab 2012 Annual Report Download - page 95

Goodwill in the Parent Company relates to goodwill arising from the pur-
chase of the net assets of Saab Microwave Systems.
MSEK 31-12-2012 31-12-2011
Dynamics 570 572
Electronic Defence Systems 2,335 2,253
Security and Defence Solutions 1,172 999
Support and Services 240 240
Combitech 264 159
Total goodwill 4,581 4,223
Impairment testing for cash-generating units is based on the calculation of
value in use. is value is based on discounted cash ow forecasts according
to the units’ business plans.
VARIABLES USED TO CALCULATE VALUE IN USE
Volume/growth
Growth in the cash-generating units’ business plans is based on Saab’s expec-
tations with regard to development in each market area and previous experi-
ence. e rst ve years are based on the ve-year business plan formulated
by Group Management and approved by the Board. For cash ows aer ve
years, the annual growth rate has been assumed to be  () per cent.
Operating margin
e operating margin is comprised of the units’ operating income aer
depreciation and amortisation. e units’ operating margin is calculated
against the backdrop of historical results and Saab’s expectations with regard
to the future development of markets where the units are active. e busi-
ness areas Dynamics, Electronic Defence Systems and Security and Defence
Solutions have a substantial order backlog of projects that stretches over a
number of years. e risks and opportunities aecting the operating margin
are managed through continuous cost forecasts for all signicant projects.
Capitalised development costs
In the ve-year business plans, consideration is given to additional invest-
ments in development considered necessary for certain units to reach the
growth targets in their respective markets.
Discount rate
Discount rates are based on the weighted average cost of capital (). e
 rate that is used is based on a risk-free rate of interest in ten years
adjusted for, among other things, market risks. e discount rate is in line
with the external requirements placed on Saab and similar companies in the
market.
All units have sales of defence materiel, unique systems, products and sup-
port solutions in the international market as their primary activity, and their
business risk in this respect is considered equivalent. However, units with a
signicant share of the business plan’s invoicing in the order backlog have
been discounted at an interest rate that is slightly lower units with a short
order backlog.
e following discount rates have been used (pre-tax):
Pretax discount rate (WACC)
Per cent 2012 2011
Dynamics 11 11
Electronic Defence Systems 11 11
Security and Defence Solutions 11 11
Support and Services 13 13
Combitech 13 13
Sensitivity analysis
Group Management believes that reasonable possible changes in the above
variables would not have such a large impact that any individually would
reduce the recoverable amount to less than the carrying amount.
NOTE 17 Tangible Fixed Assets
Group Parent Company
MSEK 31-12-2012 31-12-2011 31-12-2012 31-12-2011
Operating properties/
buildings and land1) 1,981 2,050 1,357 1,410
Plant and machinery 730 799 481 460
Equipment, tools and
installations 312 292 173 149
Construction in progress 139 131 115 118
Total 3,162 3,272 2,126 2,137
1) In the Group, the reported amount refers to operating properties. In the Parent Company, the reported
amount refers to buildings and land.
Operating properties/buildings and land 1)
Group Parent Company
MSEK 2012 2011 2012 2011
Acquisition value
Opening balance,
1 January 4,899 4,822 1,872 1,881
Acquired through business
acquisitions - 112 - -
Investments 15 38 9 14
Reclassifications 30 -34 - 4
Divestments -1 -27 - -27
Translation differences -26 -12 - -
Closing balance,
31 December 4,917 4,899 1,881 1,872
Depreciation and
impairments
Opening balance,
1 January -2,849 -2,789 -1,359 -1,314
Depreciation for the year -95 -80 -65 -58
Impairments for the year - - - -
Acquired through business
acquisitions - -32 - -
Reclassifications - 42 - -
Divestments 3 13 3 13
Translation differences 5 -3 - -
Closing balance,
31 December -2,936 -2,849 -1,421 -1,359
Revaluations
Opening balance, 1 January - - 897 897
Closing balance,
31 December - - 897 897
Carrying amount,
31 December 1,981 2,050 1,357 1,410
1) In the Group, the reported amount refers to operating properties. In the Parent Company, the reported amount
refers to buildings and land.
Acquired through business acquisitions in  largely relates to Sensis.
Operating properties include a property leased by Saab Sensis in the ..
through a nancial lease. e nancial lease extends through . e carry-
ing amount is  . e property is depreciated on a straight-line basis
over its period of use through .
Total future minimum lease fees amount to  , of which   is
due within one year,   aer one year but within ve years, and 
aer ve years. e present value of future minimum lease fees is  .
NOTE 16, CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2012 91