Saab 2015 Annual Report Download - page 39

ADMINISTRATION REPORT
GROUP – FINANCIAL REVIEW 2015
FINANCIAL REVIEW 2015
Saab AB (publ.), corporate identity number
556036-0793, has its registered address in Linköping,
Sweden and its head oce at Gustavslundsvägen 42,
Bromma, Sweden. e company’s mailing address is
Box 12062, SE-102 22 Stockholm, Sweden and its
telephone number +468-46300 00.
Saab has been listed on the Nasdaq 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, corresponding to 41 per
cent of the votes. e share of the votes is 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 3,193,279 Series B shares had
been repurchased 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 has prepared a corporate governance
report. e corporate governance report, found here
on pages 48–56, contains the Board of Directors’
report on internal control of nancial reporting,
which includes information for both the Parent
Company and the Group.
OPERATIONS
As one of the world’s leading high technology com-
panies, Saab oers products, solutions and services
for military defence and civil security. In 2015, the
Group had customers in over 100 countries, while
research and development was concentrated in
Sweden. Most of the Group’s employees work in
Europe, South Africa, the US and Australia, but
people are also on site in oces in more than
30 countries around the world.
Saab was organised in six business areas in 2015:
Aeronautics, Dynamics, Electronic Defence
Systems, Security and Defence Solutions, Support
and Services, and Industrial Products and Services.
As of 1 January 2016, business area Security and
Defence Solutions has been dissolved and its busi-
ness units have been distributed among the business
areas as follows.
• Trac Management and Combat Systems and
C4I Solutions becomes part of business area
Electronic Defence Systems.
• Training and Simulation becomes part of
business area Dynamics.
• Critical Systems & Communication Solutions
becomes part of business area Support and
Services.
• e business unit Saab Kockums will report as
a standalone operating segment.
CORPORATE
In addition to the business areas, Corporate com-
prises Group sta and departments and secondary
operations as well as Saab Aircra Leasing.
Corporate reported operating income of
MSEK -128 (41) in 2015.
Reversals of risk provisions relating to the divest-
ment of Saab’s leasing eet of turbo prop aircra
(SAL) contributed positively to operating income
in 2015 and 2014. In 2014, the owned share of the
leasing portfolio was divested and the part held via
operating leases was reduced. e leases on the
aircra expired in January 2015 and the leasing
operations were completely discontinued in 2015.
On October 23, Saab announced that business
area Security and Defence Solutions will be dis-
solved as of 1 January 2016 and its business units
transferred to other business areas. e reorganisa-
tion gave rise to MSEK 106 in restructuring costs.
e divestment of a property company gave rise
to a capital gain of MSEK 107.
In October 2014, Saab divested its minority
holding in Hawker Pacic Airservices, which
resulted in a capital gain of MSEK 93. In 2014, the
divestment of a Group company, whose assets
mainly consisted of one property, also had a positive
impact on the operating income.
Operational cash ow attributable to Corporate
amounted to MSEK 110 (57) in 2015. e sale of
receivables had a positive eect of MSEK 228.
LONG-TERM FINANCIAL OBJECTIVES
e long-term nancial goals as of 2011 consist of
goals for organic sales growth, operating margin
(EBIT) and the equity/asset ratio.
Organic sales growth will average 5 per cent per
year over a business cycle. In 2015, organic sales
growth was 11 per cent (-3).
e operating margin (EBIT) will average at least
10 per cent per year over a business cycle. In 2015,
the operating margin (EBIT) was 7.0 per cent (7.1).
e equity/assets ratio will exceed 30 per cent.
At year-end 2015, the equity/assets ratio was
36.8per cent (38.5).
DIVIDEND AND DIVIDEND POLICY
Saab has a long-term dividend goal to distribute
20–40 per cent of net income over a business cycle to
the shareholders. For 2015, the Board of Directors is
proposing a dividend of SEK 5.00 (4.75) per share,
corresponding to 39 per cent (43) of net income.
OUTLOOK 2016
In 2016, we estimate sales to be in line with Saab’s
long-term nancial goal: annual organic sales
growth of 5 per cent.
e operating margin 2016, excluding material
non-recurring items, is expected to be in line with
2015.
SAAB ANNUAL REPORT 2015 – 35