Saab 2013 Annual Report Download - page 30

26 SAAB ANNUAL REPORT 2013
PROFITABLE GROWTH
MORE INTERNATIONAL
CO-OPERATIONS
Sweden and other Nordic countries are an important
base for Saab. But future growth will chiey take place
in other international markets.
With Gripen, Saab holds a strong defence market position in
Sweden, the Nordics and other European countries. is position
was further strengthened by the order from the Swedish Armed
Forces for the development of Gripen E and production of 60
Gripen Es during 2013, as well as the potential order of 22 Gripen
Es from Switzerland in 2014.
Despite reduced defence budgets in the US and Europe and the
tough market situation, Saab has not lost any ground. Sales have
risen in the regions where we have worked hard to gain market
share, such as the Americas and Asia. Sales of smaller projects
and products have been stable for many years.
In order to remain successful and achieve our long-term goal
of annual organic growth of 5 per cent over a business cycle, Saab
must continue developing new high-tech, cost-ecient solutions.
Close co-operation with customers is particularly important
when it comes to developing new products.
Growth will also be generated through acquisitions. As speci-
ed by Saab’s acquisition strategy, these will be complementary
acquisitions and will only be made in prioritised areas. e
acquisition of Dutch HITT in 2012 is a good example; along with
the acquisition of American Sensis in 2011, HITT created the new
Trac Management business unit. Saab also looks for acquisition
opportunities that may serve as a way in to a selected market. Un-
derlying all of this is our ambition to create a more streamlined
portfolio. We therefore also regularly review the portfolio with
reference to the divestment of non-core businesses.
During the 2010–2013 period, Saab acquired 21 companies for
SEK 2 billion and divested 12 companies for SEK 1.9 billion. Saab
acquired SEK 2 billion in sales, while the divestments generated
scarcely any reduction in sales since most divestments were of par-
ticipations in associated companies or sales of small companies.
Sales and organic growth
Order backlog trend supports growth target
Saab’s organic growth target is for average
annual growth of 5 per cent over a business
cycle. The primary drivers of Saab’s growth
are the Gripen, the new marketing organisa-
tion, competitive advantages in terms of
cost-effective cutting edge technology, and the
adaptation of the business model and strategy
to local market requirements. Acquisitions will
continue to support growth.
2013 was a historic year for Saab. Order
bookings were at an all time high and we
had important breakthroughs and posi-
tive news. Order bookings increased by
141 per cent in 2013 compared to 2012.
The increase is mainly attributable to the
orders by FMV regarding development
and production of Gripen E, but also many
other signicant orders were received.
As an example, Saab received an order
for development and integration of the
radar and combat management systems
on a new frigate for the Royal Thai Navy.
Brazil placed orders for an upgrade of the
airborne radar system Erieye, as well as for
the electromagnetic signal-sensor part of
their border security programme Sisfron.
70
60
50
40
30
20
10
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Order backlog
Order bookings
25,000
4
6
4
3
6
5
-1
-4
-2 -2
20,000
15,000
10,000
5,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Sales
Organic growth, %