Saab 2013 Annual Report Download - page 48

44 SAAB ANNUAL REPORT 2013
ADMINISTRATION REPORT > FINANCIAL REVIEW
FINANCIAL REVIEW 2013
Saab AB (publ.), corporate identity number 556036-0793, has
its registered address in Linköping, Sweden and its head oce at
Gustavlundsvägen 42, Bromma. e company’s mailing address
is Box 12062, SE-102 22 Stockholm, Sweden and its telephone
number [phone].
Saab has been listed on the NASDAQ OMX Stockholm since
1998 and on the Large Cap List since October 2006. e largest
shareholder is Investor AB, with 30 per cent of the shares, cor-
responding to 40 per cent of the votes. e share of the votes was
calculated based on the number of shares, excluding Treasury
shares, at year-end. e total number of shares in the company
is 109,150,344, distributed between 1,907,123 Series A shares
with ten votes each and 107,243,221 Series B shares with one vote
each. At year-end, a total of 2,736,200 Series B shares had been re-
purchased to guarantee the Group’s various share matching plans.
e repurchased shares are held as Treasury shares.
In accordance with the Swedish Annual Account Act, Saab pre-
pared its corporate governance report separately from its annual
report. e corporate governance report, found here on pages
122–130, includes the Board of Directors’ report on internal con-
trol of nancial reporting, which includes information for both
the Parent Company and the Group. See pages 126–127.
Operations
As one of the world’s leading high technology companies, Saab
oers products, solutions and services for military defence and
civil security. In 2013 the Group had customers in over 100
countries, with research and development conducted mainly in
Sweden. Most of our employees work in Europe, South Africa,
the US and Australia, but we also have people on site in oces
in more than 30 countries around the world.
Saab is organised in six business areas: Aeronautics, Dynamics, Elec-
tronic Defence Systems, Security and Defence Solutions, Support
and Services, and Combitech. Combitech, which provides consul-
ting services, is an independent, wholly owned subsidiary of Saab.
In addition to the business areas, Corporate comprises Group
sta and departments and secondary operations. It also includes
the leasing eet of Saab 340 and Saab 2000 aircra.
Long-term financial objectives
e long-term nancial goals as of 2011 consist of goals for
organic sales growth, operating margin aer depreciation and
amortisation (EBIT) and the equity/asset ratio.
Dividend and Dividend Policy
Proposed 2013 dividend and dividend policy
Saab’s long-term dividend objective is to distribute to sharehol-
ders 20–40 per cent of net income over a business cycle.
For 2013 the Board of Directors proposes a dividend of
SEK4.50 (4.50) per share, representing 65 per cent (30) of 2013
net income.
Outlook 2014
In 2014, we estimate that sales will be in line with 2013.
e operating margin in 2014, excluding material non-recur-
ring items, is expected to be somewhat higher than the operating
margin 2013, excluding material non-recurring items.
For further comments concerning the Group’s result, nancial
position and cash ow please see pages concerning the Business
Areas, 45–50, as well as comments on the nancial statements on
pages 59–69.
Long-term Financial Growth Performance in 2013
Growth
Goal: Organic sales growth averaging
5 per cent per year over a business cycle.
Result: Sales during 2013 decreased by
1per cent compared to 2012. Acquisitions
contributed to the increase in sales by
2per cent, however oset by a negative
impact from currency eects of 1 per cent.
Comment on results: We saw a lower
activity level primarily within the busi-
ness area Dynamics which was aected
by budget constraints and delays in
customers’ investment processes. is was
compensated by growth in the business
areas Aeronautics and Combitech.
Operating margin
Goal: Saab’s margin goal – operating mar-
gin aer depreciation and amortisation
(EBIT) of at least 10 per cent – is formula-
ted as an average over a business cycle.
Result: Reported operating income
amounted to MSEK 1,345 (2,050) and
the operating margin was 5.7 per cent
(8.5), including a non-recurring item of
MSEK 231 related to a lost legal dispute in
Denmark related to DACCIS. Excluding
material non-recurring items the opera-
ting income amounted to MSEK 1,576
(1,843) and the operating margin was
6.6 per cent (7.7).
Comment on results: Additional eciency
measures were implemented during the
year in all business areas. e purpose is
to maintain and strengthen the eciency
in current market conditions. e ef-
ciency improvements are expected to
amount to MSEK 500 by the end of 2014.
e business area Electronic Defence
Systems made continuous investments
in product development throughout the
year to strengthen the product portfolio,
moreover cost for eciency improve-
ments also impacted the result, leading to
a loss for the business area.
Equity/Assets ratio
Goal: Saab’s goal is an equity/assets ratio
exceeding 30 per cent.
Result: e equity/asset ratio, at year-end
2013, amounted to 43.8 per cent (39.0).
Comment on results: Revaluation of net
pension obligations had a positive impact
on equity, which led to a strengthened
equity/asset ratio.