Saab's results January-December 2013

 Defence and security company Saab presents the results for 2013.
CEO Comment: Håkan Buskhe
2013 was a historic year for Saab. Order bookings were at an all time high and
we had important breakthroughs and positive news for Saab. Meanwhile, market
conditions are challenging and the competition fierce. Saab shall therefore
continue its focus on being an innovative and cost efficient company, which are
key factors for continued success in a changing market.

We have also completed the implementation of the new market organisation during
the year, which has increased our ability to understand and meet customer
demands. The business area Aeronautics received several groundbreaking orders
during the year, especially related to Gripen. In February, an agreement was
signed with FMV regarding the next generation fighter, Gripen E. In Switzerland,
the parliament approved the procurement of Gripen E. In May 2014, the Swiss
citizens will make the final decision in a referendum.

Also, during the fourth quarter the Brazilian government announced that it had
selected Gripen for its next fighter system. Negotiations are ongoing, and the
ambition is to sign an agreement during 2014. The interest in the high tech and
cost effective fighter, Gripen, has never been greater.

During the year, a Joint Development Agreement was signed with Boeing to develop
and build a completely new, advanced and cost efficient training aircraft. The
purpose is to participate in the U.S. Airforce’s upcoming procurement of new
training aircraft.

Order bookings increased by 141 per cent in 2013 compared to 2012. The increase
is mainly attributable to the orders by FMV regarding development and production
of Gripen E, but also many other significant orders were received. As an
example, Saab received an order for development and integration of the radar and
combat management systems on a new frigate for the Royal Thai Navy. Brazil
placed orders for an upgrade of the airborne radar system Erieye, as well as for
the electromagnetic signal-sensor part of their border security programme
Sisfron.

Budget constraints in the U.S. had a negative impact on our training and traffic
management operations in the U.S. Business area Dynamics was also affected by
budget constraints and delays in customers’ investment processes, which resulted
in reduced order intake compared to 2012.

Sales amounted to MSEK 23,750, an organic decline of 2 per cent. We saw a lower
activity level primarily within the business area Dynamics. This was compensated
by growth in the business areas Aeronautics and Combitech.

Reported operating income amounted to MSEK 1,345 (2,050) and the operating
margin was 5.7 per cent (8.5), including a non-recurring item of MSEK 231
related to a lost legal dispute in Denmark concerning DACCIS. Excluding material
non-recurring items the operating income amounted to MSEK 1,576 (1 843) and the
operating margin was 6.6 per cent (7.7).

Additional efficiency measures were implemented during the year in all business
areas, including reduction of headcount through restructuring measures, means of
competence shift programmes and other individual solutions. The efficiency
improvements are expected to amount to MSEK 500 by the end of 2014.

The business area Electronic Defence Systems made continuous investments in
product development throughout the year to strengthen the product portfolio,
moreover cost for efficiency improvements also impacted the result, leading to a
loss for the business area.

A total of 28 per cent (25) of sales were invested in research and development
during 2013. Two areas were Gripen E and radar and sensor techology. Research
and development will continue to have priority in order to drive growth.

The lower operating cash flow in 2013 is mainly attributable to timing
differences in milestone payments in large projects, investments and
acquisitions, as well as a payment related to a legal dispute.

During the fourth quarter Saab, in accordance with accounting standards,
reclassified the value decline of the investment in the Indian company Pipavav
from equity to financial net. The value decline was caused by a share price
decline of 46 per cent and a value decline of the Indian currency of 15 per cent
against SEK, since the investment was done. The reclassification and write-down
of the investment had a negative impact on the net income of MSEK 133.

Earnings per share after dilution amounted to SEK 6,79 (14.52).

The Board of Directors proposes a share dividend of SEK 4.50 (4.50).

Outlook statement 2014

  · In 2014, we estimate that sales will be in line with 2013.
  · The operating margin in 2014, excluding material non-recurring items, is
expected to be somewhat higher than the operating margin 2013, excluding
material non-recurring items.

Excluding material non-recurring items, the operating margin was 6.6 per cent in
2013.

Financial highlights

MSEK           Jan     Jan-Dec 2012  Change, %  Oct-Dec 2013  Oct-Dec 2012
               -Dec
               2013
Order          49,809  20,683        141        24,780        4,928
bookings
Order          59,870  34,151        75
backlog
Sales          23,750  24,010        -1         7,279         7,306
Gross income   6,328   7,208         -12        1,853         2,275
Gross          26.6    30.0                     25.5          31.1
margin, %
Operating      2,367   3,186         -26        810           924
income
before
depreciation/
amortisation
and write
-downs
(EBITDA)
EBITDA         10.0    13.3                     11.1          12.6
margin, %
Operating      1,345   2,050         -34        534           655
income
(EBIT)
Operating      5.7     8.5                      7.3           9.0
margin, %
Net income     742     1,560         -52        287           550
Earnings per   6.98    15.00                    2.64          5.19
share before
dilution,
SEK
Earnings per   6.79    14.52                    2.57          5.03
share after
dilution,
SEK
Return on      6.3     12.8
equity, %*
Operating      -1,480  -396          274        547           264
cash flow **
Operating      -13.56  -3.63                    5.01          2.42
cash flow
per share
after
dilution,
SEK
* The return
on equity is
measured
over a
rolling 12
-month
period
** Operating
cash flow
includes
cash
flow from
operating
activities
of MSEK -682
(350) and
cash flow
from
investing
activities
excluding
change in
short-term
investments
and other
interest
-bearing
financial
assets of
MSEK -798 (
-746)
All figures
presented
for 2012 are
restated
according to
the changed
accounting
principles
for pensions
(IAS 19).

Press and analyst meeting

Press and financial analysts are invited to a press and analyst meeting where
CEO Håkan Buskhe together with CFO Magnus Örnberg present the year-end report
2013.

Thursday, 13 February, 10.00 am C.E.T
Grand Hotel, Blasieholmshamnen 8,Stockholm,Sweden, venue: New York.

R.S.V.P
E-mail: karoline.sandar@saabgroup.com
Tel: +46 8 463 02 45

Live webcast

If you are unable to attend in person, please visit
http://www.saabgroup.com/en/About-Saab/Investor-relations/ where a live webcast
of the presentation will be available together with the presentation material.
All viewers will be able to post questions to the presenters. The webcast will
also be available at Saab’s website afterwards.

For further information, please contact:
Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
www.saabgroup.com
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Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves new
technology to meet customers’ changing needs.

The information is that which Saab AB is required to declare by the Securities
Business Act and/or the Financial instruments Trading Act. The information was
submitted for publication on February 13 at 07.30 am CET.