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SAAB ANNUAL REPORT 2013 47
ADMINISTRATION REPORT > BUSINESS AREAS
ELECTRONIC DEFENCE
SYSTEMS
Services and solutions
The operation meets customer demand for solutions for surveil-
lance and detecting, localising and protection against various
types of threat. The product portfolio includes airborne, land-based
and naval systems in radar, signals intelligence and self-protection.
The operations also comprise avionics that improve ight mission
efciency and ight safety.
Sensor systems Erieye, Carabas, Arthur and Giraffe AMB.
Electronic warfare systems, including IDAS, Camps, BOL and
LEDS.
Avionics, including surveillance, display and digital recording
systems.
Flying surveillance systems, including AEW&C (Airborne Early
Warning & Control).
Saab Sensis expertise in various types of radar upgrades.
Electronic and Defence Systems includes the following business
units: Surface Radar Systems, Avionic, Airborne Surveillance
Systems, Electronic Warfare Systems, Sourcing and Production
and Future Sensor Systems.
Driving forces
Multinational missions and new technology drive the need for open
architecture, system integration and interoperability. Interest is in-
creasing in sustainable solutions that prioritise sensors and com-
mand and control capabilities.
Orders received
Orders bookings included orders from FMV for the development
of Gripen E and serial production of 60 Gripen E for Sweden. e
total order value related to Electronic Defence Systems amounted
to approximately SEK 3.2billion. FMV also ordered an upgrade of
Swedens ground based air defence.
Two orders were received regarding upgrades of the Erieye
AEW&C Mission System in Brazil. An order was also received
for signal-sensor equipment for the Brazilian border security
programme Sisfron.
ree orders were received for self-protection equipment for
the German Air Forces Tornado eet. Two orders were received for
the serial production of an integrated electronic warfare self-pro-
tection system for installation on the Indian Army’s and Air forces
Advanced Light Helicopter.
A contract was signed with Daewoo Shipbuilding and Marine
Engineering Korea, for development and integration of combat
management and radar systems on a new frigate for the Royal
ai Navy.
Orders received, where the order sum exceeded MSEK 100, repre-
sented 70 per cent (37) of total order bookings.
Sales, income and margin
e main reason for the decrease in sales in 2013 compared to
2012 was a low level of order bookings in 2011 and 2012.
Markets outside Sweden accounted for 69percent (76) of sales.
e operating loss in 2013 was mainly attributable to increased
investments in product development projects, costs for rationali-
sation measures and a dierent project mix compared to 2012.
During 2012, a reduction in the potential earn-out liability related
to the acquisition of Sensis in 2011 contributed with MSEK154 to
the operating income.
Cash flow
Final payments related to the completion of projects, as well as
timing dierences in milestone payments had a positive impact
on operating cash ow in 2013.
Employees
In September, Saab announced its intention to reduce headcount
by 150–175 employees in Gothenburg, Sweden. is will be
achieved through a competence shi programme. e reduc-
tions are the result of decreased business volumes and the current
technology shi.
16%
share of sales
Key figures
MSEK 2013 2012
Order bookings 7,620 2,739
Order backlog 8,764 5,442
Sales 4,161 4,276
EBITDA 287 538
EBITDA margin, % 6.9 12.6
Operating income -201 117
Operating margin, % -4.8 2.7
Operating cash ow 213 -238
No. of employees 2,620 2,620
Order bookings,
SEK billion
Sales, SEK billion Operating margin, %
3.2
2.7
7.6
2012 2013
201120102009
5.5
2.6
6.5
2.7
-4.8
2012 2013201120102009
2.3
0.5
4.6
4.3 4.2
2012 2013201120102009
4.4
4.7
Electronic Defence Systems offers a product portfolio comprising airborne early warning systems as well as
airborne, land-based and naval systems in radar, signals intelligence and self-protection. The business area
also supplies civil and military customers with avionics that improve ight mission efciency and ight safety.
Products include Giraffe AMB, Erieye, Arthur, BOL and IDAS.