Saab 2013 Annual Report Download - page 83

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NOTE 4 Segment Reporting
Saab is a leading high-technology company, with its main operations in
defence, aviation and civil security. Operations are primarily focused on well-
dened areas in defence electronics and missile systems as well as military
and commercial aviation. Saab is also active in technical services and mainte-
nance. Saab has a strong position in Sweden and the main part of sales is gen-
erated in Europe. In addition Saab has a local presence in South Africa, Aus-
tralia, the  and other selected countries globally. Saab’s operating and
management structure is divided into six business areas which also represent
operating segments; Aeronautics, Dynamics, Electronic Defence Systems,
Security and Defence Solutions, Support and Services, and Combitech. Com-
plementing them is Corporate, which comprises Group sta and depart-
ments as well as other non-core operations.
Aeronautics
Aeronautics engages in advanced development of military and civil aviation
technology. e product portfolio includes the Gripen ghter and
Unmanned Aerial Systems (). Aeronautics also manufactures aircra
components for Saab’s own aircra as well as for passenger aircra produced
by others.
Dynamics
Dynamics oers a highly competitive product range comprising ground
combat weapons, missile systems, torpedoes, unmanned underwater vehicles
and signature management systems for armed forces as well as niche prod-
ucts for the civil and the defence market, such as unmanned underwater
vehicles for the oshore industry and -mapping for the defence market.
Electronic Defence Systems
ese operations are based on Saab’s close interaction with customers requir-
ing ecient solutions for surveillance and for threat detection, location and
protection. is has created a unique competence in the area of radar and
electronic warfare, and a product portfolio covering airborne, land-based
and naval radar, electronic support measures and self-protection systems. For
increased ight mission eciency and ight safety we supply avionics for
both civil and military customers.
Security and Defence Solutions
e operations comprise products and solutions in the area of command,
control, airborne early warning, training and simulation, air trac manage-
ment, maritime security, security and surveillance and secure robust com-
munication.
Support and Services
Support and Services oers reliable, cost-ecient service and support for all
of Saab’s markets. is primarily includes integrated support solutions, tech-
nical maintenance and logistics, and products, solutions and services for mil-
itary and civil missions in locations with limited infrastructure.
Combitech
Combitech, an independent company in the Saab Group, is one of Sweden’s
largest technology consulting rms. Combitech combines technological
excellence with deep industry knowledge, comprehensive understanding and
a particular focus on environment and security.
Significant non-recurring items not affecting cash flow
Signicant non-recurring items not aecting cash ow in  is a non-
recurring item of  -, related to the write-down of the value of share-
holding in Pipavav.
In  a non-recurring item of  , pertaining to a reduced liability
for a contingent consideration related to the acquisition of Sensis in , was
reported.
Information on major customers
Saab has one customer, the Swedish Defence Materiel Administration (),
which accounts for  per cent or more of the Group’s revenue.  is a cus-
tomer of every business area, generating total revenue of , (,) in
.
Information on geographical areas
External sales are distributed to the market where the customer is domiciled,
while xed assets are distributed to the market where the asset is geographi-
cally located.
Seasonal variation
A major part of our business is related to large projects where the revenue is
recognised by using the percentage of completion method. e costs
incurred in these projects are normally lower during the third quarter com-
pared with the other quarters. e fourth quarter is also usually aected by a
higher number of deliveries, mainly within Dynamics.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2013 79