Saab 2013 Annual Report Download - page 28

24 SAAB ANNUAL REPORT 2013
STRATEGIC PRIORITIES
ACCELERATED FOCUS
ON IMPLEMENTATION
Activities during the year
A new market area organisation was estab-
lished on 1 January 2013. Local presence was
progressively expanded and work procedures
were developed during the year.
Despite challenging market conditions, order
bookings were up 141 per cent during the
year. The increase was due in part to the
development order for Gripen E and Sweden’s
production order of 60 Gripen E aircraft,
both of which are part of Saab’s agreement
with FMV (signed 15 February 2013) that
also includes additional orders related to the
Gripen E.
Saab also received other large and important
orders, including several orders for wing spars
for Airbus A380, training equipment for the US
Army, anti-missile defence systems for Indian
Air Force lightweight helicopters, upgrades to
the Erieye airborne radar system in Brazil, the
Arthur weapon locating system and radar and
combat management systems for Thailand
Navy frigates.
Activities during the year
Market conditions became continuously more
challenging in 2013. The decision was made
to identify additional efciency measures
in order to ensure further scope to invest in
research and development and sales and
marketing activities. These measures are
aimed at improving our capacity to achieve
our established long-term goals. Efciency
improvements implemented during the year
include volume adjustments and increased
focus on working methods to reduce develop-
ment, production and indirect costs through-
out the entire company. In order to become
one of the most cost-efcient companies in
the industry, it is imperative that we constantly
adapt our operations.
Outcome/Goal attainment
Total sales were down 1 per cent in 2013
year-on-year. Acquisitions had a positive
impact on sales of 2 per cent, while exchange
rates had a negative impact of 1 per cent.
The operating margin was 5.7 per cent (8.5).
Excluding material non-recurring items, the
operating margin was 6.6 per cent (7.6).
Outcome/Goal attainment
The gross margin decreased to 26.6per cent
(30.0), mainly due to a change in product and
project mix. Administrative costs decreased,
representing approximately 4.7 per cent (5.1)
of sales. Marketing costs decreased slightly
and corresponded to approximately 8.8per
cent (9.1) of sales. The operating margin was
5.7 per cent (8.5).
Priorities 2014
Maintained focus on ensuring desired effects
from the market area organisation. To evaluate
where the growth potential is, we will continu-
ally follow up all business opportunities and
measure our success in winning new business.
One highly signicant programme is the
Gripen E development programme. We will
focus on proceeding with development and
delivering milestones according to plan.
We will also continue to evaluate potential
acquisitions in areas that complement our
product portfolio and support business in
prioritised geographic markets.
For long-term nancial goals and outlook for
2014, see page 44.
Priorities 2014
Implementation of the efciency measures
identied in 2013 will continue. The estimate
is that measures implemented in 2013 will
contribute with approx. MSEK 500 in ef-
ciencies at the close of 2014. We will also
maintain our continuous efforts to improve
efciency at every level – from research and
development to sales.
We will continue to focus on strengthening
our internal processes and creating a uniform
internal process structure.
For long-term nancial goals and outlook for
2014, see page 44.
1. PROFITABLE GROWTH
2. PERFORMANCE
Sales, billion SEK EBIT, %
Administrative
costs, % of sales
Gross margin, %
23 24 24
2012 2013201120102009
24
25
2012 2013201120102009
4.9 4.7
5.1 5.2 5.1
12.5
8.5
2012 2013201120102009
4.0
5.6 5.7
29 30
2012 2013201120102009
25
27
23