Saab's results and summary January-December 2012

Defence and security company Saab presents the results for 2012.
Results January-December 2012

• Order bookings amounted to MSEK 20,683 (18,907) and the order backlog at the
end of December 2012 was MSEK 34,151 (37,172).

• Sales increased 2 per cent to MSEK 24,010 (23,498). Excluding acquisitions
sales decreased 2 per cent. ­Exchange rates had no significant impact on sales.

• Gross income amounted to MSEK 7,190 (6,707), ­corresponding to a gross margin
of 29.9 per cent (28.5).

• Operating income was MSEK 2,032 (2,941), corresponding to an operating margin
of 8.5 per cent (12.5). This included a non-recurring item of MSEK 207 from a
reduction of a potential earn-out liability. 2011 included capital gains of MSEK
1,169. Adjusted for non-recurring items the operating margin was 7.6 per cent
(7.5).

• Net income was MSEK 1,539 (2,217), with earnings per share after dilution of
SEK 14.33 (20.38).

• The operating cash flow of MSEK -396 (2,477) in 2012 was negative mainly as a
result of a higher utilisation of, and reduction in advances and milestone
payments as well as a higher net amount spent on acquisitions and divestments
than in 2011. In the fourth quarter the operating cash flow amounted to MSEK 264
(217).

• Proposed dividend for 2012 is SEK 4.50 per share (4.50).

Major event after the conclusion of the year:

• Saab has announced, through a press release, the signing of an agreement with
the Swedish Defence Materiel Administration (FMV) for Gripen E. The agreement
includes development and modification of Gripen E for Sweden during the period
2013-2026 and a possible order for new production of Gripen E from Switzerland.
FMV has today placed an initial development order of SEK 2.5 billion for
operations during 2013-2014. Remaining orders from Sweden is expected in 2013
-2014. The total value of possible orders under the agreement amounts to a total
of SEK 47.2 billion.

Outlook Statement 2013:

• In 2013, we estimate that sales will increase slightly compared to 2012.

• The operating margin in 2013, excluding material net capital gains and other
non-recurring items, is expected to be in line with the operating margin in
2012, excluding material non-recurring items, of 7.6 per cent.

Financial highlights

MSEK                     Jan-Dec  Jan     Change,  Oct        Oct
                         2012     -Dec    %        -Dec 2012  -Dec 2011
                                  2011
Order bookings            20,683  18,907   9        4,928     5,114
Order backlog             34,151  37,172  -8       -2,180***  -2,239***

Sales                     24,010  23,498  2        7,306      7,347
Gross income              7,190   6,707   7        2,270      2,256
Gross margin, %           29.9    28.5             31.1       30.7
Operating income (EBIT)  2,032    2,941   -31      650        659
Operating margin, %      8.5      12.5             8.9        9.0
Net income               1,539    2,217   -31      585        419
Earnings per share       14.81    21.19            5.52       3.92
before dilution, SEK
Earnings per share       14.33    20.38            5.35       3.78
after dilution, SEK
Return on equity *, %    11.3     18.1
Operating cash flow**    -396     2 477   -116     264        217
Operating cash flow per  -3.63    22.69            2.42       1.98
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 350 (2,392)
and cash flow from
investing activities
excluding change in
short-term investments
and
other
interest-bearing
financial assets of
MSEK -746
(85)
*** Refer to quarterly
change.

Statement by the President and CEO, Håkan Buskhe

Despite challenging market conditions throughout 2012, order bookings increased
by nine per cent in the year. In the fourth quarter an order was received for
our surface-to-surface missile RBS15 Mk3 and several other important orders were
received during the year.

Sales grew driven by strategic acquisitions during the year. Acquisitions and
partnerships are important means to create a stronger foothold in local markets
and to complement our portfolio. During 2012 we made several acquisitions, for
example the acquisition of HITT N.V., a leading provider of advanced software
applications in the domains of navigation, traffic and logistics support for the
aviation and marine markets. We also acquired a majority stake in the Norwegian
consulting company Bayes Risk Management AS, which delivers services in the
field of risk analysis for the oil and gas industry as well as the financial
market. This acquisition expands our technical consultancy business within
Combitech. In the fourth quarter we announced the acquisition of MEDAV GmbH,
specialised in the application of signal processing, pattern recognition and
information technology. The acquisition strengthens Saab’s product portfolio
within radio monitoring and intelligence fusion systems. We also established
several partnerships in local markets, such as in India where a joint venture
with QuEST Global Manufacturing was announced in the fourth quarter.

We reached an underlying operating margin in line with 2011, while we at the
same time increased investments in marketing and sales. In order to strengthen
our technology leadership and secure future offerings in current challenging
market conditions, investments in internally funded development also increased.
We spent about 7.5 per cent of our sales on internally funded development in
2012 compared to about 5.8 per cent in 2011.

A new Market Area organisation was established as of 1 January 2013 in order to
further strengthen our local presence and ensure a closer cooperation with our
customers.

Today, we announced that we signed an agreement with FMV concerning the
development and modification of Gripen E, the next generation of Gripen, Saab’s
fighter aircraft. At the same time an initial development order was received for
Gripen E. We are proud to continue to deliver a world leading fighter aircraft
to the Swedish Air Force. The agreement includes potential orders concerning the
Gripen E to a total of SEK 47.2 billion.

Despite challenging market conditions, we foresee a slight increase in sales for
2013 and an operating margin, excluding material net capital gains and non
-recurring items, to be in line with 2012, excluding material non-recurring
items.

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
2012.

Friday, 15 February, 10.00 am C.E.T

Grand Hotel, Blasieholmshamnen 8, Stockholm, Sweden, venue: Bolinderska Rummet

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.

R.S.V.P
E-mail: susanne.vikman@saabgroup.com
Tel: +46 (0) 8 463 00 36

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

www.saabgroup.com/Twitter

www.saabgroup.com/YouTube

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 15 at 07.30 am CET.

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.