Saab 2015 Annual Report Download - page 17

STRATEGY
PROFITABLE GROWTH
Saab has had very strong order bookings in recent years, mainly thanks to a
number of large orders. The order backlog exceeded SEK 100 billion at year-end.
The focus is on delivering to customers at the same time that sales activities are
being intensified to win more small and medium-sized orders.
LONG-TERM GROWTH
Saab’s goal is that organic growth will exceed ve per
cent on average over a business cycle. In addition,
complementary acquisitions are possible to win
market share or gain access to key technologies.
Businesses can also be divested.
A large share of the order backlog consists of
large orders, such as the Gripen ghter to Sweden
and Brazil, the Type A26 submarine to Sweden and
an airborne radar system to the United Arab Emirates.
Large deals take a long time to prepare, and the
contracts oen extend over many years. Saab tries to
maintain a good balance between orders of dierent
sizes. A stable inow of small and medium-sized
orders enables Saab to devote resources to large
development projects that oer long-term returns.
One example of such a development project is Saab’s
collaboration with Boeing to bid for the U.S. Air
Force’s new jet trainer as part of the T-X program.
INCREASED PROFITABILITY
Saab’s protability goal is an average operating margin
of at least ten per cent over a business cycle. Sales are
expected to grow in coming years, paving the way
for increased protability, since a large share of
the sales increase can be managed with existing
resources.
An important success factor to be more protable
is operating eciency, which Saab achieves in part
by constantly challenging the way it works. For more
information, see Strategy: Performance, page 17.
STRATEGIC PRIORITIES
Efficient project implementation
One of the most important factors for Saab’s prota-
bility is ecient project implementation. It is critical
that we meet our contractual obligations in a timely
fashion and on budget. Saab therefore attaches great
importance to improving processes and spreading
best practice within the company.
Focused marketing
Marketing and sales activities are focused on coun-
tries that account for the majority of order bookings.
ey are also concentrated on the portfolio’s ve
core areas. For more information, see Strategy:
Portfolio, page 20.
Increase share of small and medium-sized orders
It is important to win small and medium-sized
orders, which can be delivered faster to the customer
and be converted to sales. In addition, operating
income from these projects is fairly evenly distrib-
uted over time, while protability in large projects
typically rises as the risks decline over time as a
growing share of the order has already
been delivered.
Products with proven functionality
In addition to launching new products, Saab has a
very competitive and protable portfolio of mature
products. ese products are sought-aer in the
market thanks to their high quality and proven
functionality.
LOCAL MARKET PRESENCE
Saab has built a strong local presence in a number of
key markets by establishing market areas. Large
deals for combat aircra systems, for instance, are
managed through centralised campaigns where the
business area and market area in question work
closely together.
e marketing organisation provides insight into
local procurement processes and the ability to work
closely with customers and oer the right combina-
tion of products and solutions. is approach in -
creases Saab’s chances of winning more small and
The first test aircraft under construction
in the development of Gripen E.
Saab is partnering with Boeing to bid for the
U.S. Air Force’s new jet trainer as part of the
T-X program.
SAAB ANNUAL REPORT 2015 – 13