Saab 2015 Annual Report Download - page 116

FINANCIAL INFORMATION – FINANCIAL STATEMENTS
NOTE 45 ENVIRONMENTAL REPORT
Operations subject to licensing in the Parent Company
Production of aircraft and aircraft components by the Parent Company, Saab AB,
in the Tannefors industrial zone in the municipality of Linköping is subject to licen-
sing pursuant to the Swedish Environment Code due to aeronautics operations,
surface treatment processes, manufacturing of composite materials, handling of
chemical substances, the firing of large calibre weapons and the size of the manu-
facturing facilities. The environmental impact of these operations primarily arises
from emissions of volatile organic compounds (VOCS) and aircraft emissions into
the atmosphere and of metals into waterways, the generation of industrial wastes
and noise disturbing local surroundings. The manufacturing operations predomi-
nantly entail operations subject to licensing. The National Licensing Board for
Environmental Protection granted the licence for aircraft manufacture in 1990.
The supervisory authorities and the Land and Environment Court imposed
additional terms for these operations in 2006 and 2007, respectively, against the
backdrop of the EU’s IPPC directive.
In Järfälla, Saab AB has operations involving the manufacture of advanced
command and control systems, among other things, which are also subject to
licensing under to the Environment Code. The licensing requirement is due to
surface treatment processes and the size of the manufacturing facilities. The
environmental impact of these operations primarily arises from VOC emissions
into the atmosphere and of metals into waterways. The National Licensing Board
for Environmental Protection granted the licence in 1990.
With the exception of a few exceeded recommended values, Saab AB did not
exceed any conditions in its permits or violate any injunctions in 2015.
Operations subject to licensing in subsidiaries
The operations carried on by Saab Airport AB are subject to licensing under the
Environment Code and are covered by the permit issued by the National Licensing
Board for Environmental Protection in 1990 for Saab’s collective operations in the
Tannefors industrial zone in the municipality of Linköping. This permit also covers
the operations of Saab Dynamics AB in the area, despite the fact that they are not
subject to licensing and notification requirements under the Environment Code.
Saab Dynamics AB and Saab Bofors Test Center AB run operations in Karlskoga
that are subject to licensing under the Environment Code and Saab Barracuda AB
runs operations subject to licensing in Gamleby. In addition, Saab Kockums AB
runs operations subject to licensing in Karlskrona and on Muskö island, south of
Stockholm.
The environmental impact from subsidiaries subject to licensing primarily consists
of emissions of VOCs and emissions from aircraft into the atmosphere, emissions
of metals and de-icing solvents into waterways, generation of industrial wastes and
noise disturbing local surroundings.
With the exception of a few exceeded recommended values, Saab’s subsidiaries
did not exceed any conditions in its permits or violate any injunctions in 2015.
Operations subject to notification requirements
Saab AB has operations in Arboga, Huskvarna, Jönköping, Ljungbyhed, Malm-
slätt, Nyköping and Östersund which are subject to notification requirements pur-
suant to the Environment Code. Permits in Arboga and Malmslätt still apply. These
were granted by the county boards in 1993 and 1994, respectively. The Group also
has operations subject to notification requirements in the subsidiary Saab Dyna-
mics AB in Motala. Permit in Motala still applies. The environmental impact of these
operations is extremely limited.
NOTE 46 EXCHANGE RATES USED IN
FINANCIAL STATEMENTS
Year-end rate Average rate
Land 2015 2014 2015 2014
Australia AUD 1 6.09 6.37 6.34 6.19
Denmark DKK 100 122.42 127.81 125.44 122.03
Euro EUR 1 9.14 9.52 9.36 9.10
India INR 100 12.58 12.30 13.17 11.25
Canada CAD 1 6.03 6.72 6.60 6.21
Norway NOK 100 95.56 105.16 104.65 108.94
Switzerland CHF 1 8.43 7.91 8.77 7.49
UK GBP 1 12.38 12.14 12.90 11.29
South Africa ZAR 100 54.33 67.22 66.48 63.19
Czech
Republic CZK 100 33.80 34.35 34.30 33.04
USA USD 1 8.35 7.81 8.44 6.86
NOTE 47 DEFINITIONS OF KEY RATIOS
Capital employed Total assets less non-interest-bearing liabilities.
Capital turnover Sales divided by average capital employed.
Earnings per share Net income for the year attributable to the Parent Company’s
shareholder , divided by the average number of shares before and after full dilution.
There is no dilution impact if the result is negative.
EBITDA Operating income before depreciation/amortisation and write-downs less
depreciation/amortisation and write-downs of lease aircraft.
EBITDA margin Operating income before depreciation/amortisation and
write-downs less depreciation/amortisation and write-downs of lease aircrafts
as a percentage of sales.
Equity/assets ratio Equity in relation to total assets.
Equity per share Equity attributable to the Parent Company’s shareholders
divided by the number of shares, excluding treasury shares, at the end of the year.
Free cash flow per share Free cash flow (according to note 43) divided by the
average number of shares after dilution.
Gross margin Gross income as a percentage of sales.
Interest coverage ratio Operating income plus financial income divided by
financial expenses.
Net liquidity/net debt Liquid assets, short-term investments and interest-bearing
receivables less interest-bearing liabilities and provisions for pensions excluding
provisions for pensions attributable to special employers’ contribution.
Operating margin Operating income (EBIT) as a percentage of sales.
Profit margin Operating income plus financial income as a percentage of sales.
Return on capital employed Operating income plus financial income as a
percentage of average capital employed.
Return on equity Net income for the year as a percentage of average equity.
112 – SAAB ANNUAL REPORT 2015