THE CEO AND CHAIRMAN IN a CONVERSATION“Innovation requires you to take risk. Major technological breakthroughshappen when a customer with resources orders somethingthat doesn’t exist. That’s when innovations find application faroutside the problem they were originally designed to solve.”MW: Even though defence requirements still dominate our operations,we are increasingly seeing indications of how military and civilresources are being integrated, most recently in the efforts to helpearthquake-ravaged Haiti.ÅS: This is also reflected in our new organisation, and of course inthe strategies behind it. In the Security and Defence Solutions businessarea, we have brought together our systems, solutions and applicationsfor both civil and military needs, which are based on thesame technologies, e.g., command and control systems, communicationsystems, reconnaissance and surveillance systems, airborneearly warning systems, and simulation and training. Developmentsfrom a military context are finding broader application in efforts tomaintain flows and protect critical systems in society. Technology isbeing transferred in the other direction as well. Military systems areincreasingly adapting civil technology.MW: The borderline between military and civil security is graduallydisappearing. This is perhaps most evident in the U.S. and relationshipto the rest of the world. The terrorist attacks on 9/11 were a hugeturning point in this respect. What the U.S. has since called HomelandSecurity has grown immensely.ÅS: It is worth remembering that the principal target of the 9/11attack was the World Trade Center. Many people have interpretedthis as a declaration of war by clan societies on our global flow society.It created a totally new conflict map with civil society as a target.MW: Civil security will unquestionably become a huge emergingmarket, but at this point it remains fragmented. Large procurements,where various authorities join together, are unusual. But it wouldcertainly be beneficial if police and customs authorities pooled theirresources – for example, in terms of unmanned aerial vehicles,UAV’s – to fulfil their missions.ÅS: Our new organisation is based on five areas that are the future ofour business. In addition to Security and Defence Solutions andDynamics, as we have already mentioned, there are Aeronautics,which comprises Gripen, unmanned aerial vehicles and civil aeronautics;Electronic Defence Systems, comprising radar and countermeasuressystems; and, lastly, Support and Services, where we workclosely with our customers in their operations. In all these areas weare already a world leader or have the opportunity to become one.This is where we are now concentrating our resources, not least inR&D, where the aim is to increase our own efforts going forward inorder to retain leading technology.MW: By focusing as we have done, we also facilitate cost efficiency inthe organisation and can achieve the savings we had hoped for in thecurrent efficiency improvement programme.ÅS: We are now in the last year of the original programme and haveproduced very good results, even though some of the impact thisyear has been offset by structural costs and a change in the businessmix compared to previous years. Taken together, the Billion+ Programme,the reorganisation and new orders will lay the foundationfor our future growth and profitability.MW: There are plenty of challenges ahead, both internally and externally,and establishing a sustainable cost level that ensures we canremain competitive is one of them.ÅS: With our new, focused business direction, I am convinced wewill be able to handle it and capitalise on new business opportunitiesthat open up for both our military and civil operations.Stockholm, March 2010Marcus WallenbergChairmanÅke SvenssonPresident and CEO10 saab <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2009</strong>
saab’s vision and missionour mission essentiallyis to provide securityThe demand for security on the part of people, society and companies is the ultimate drivingforce in our business.Security needs and threat scenarios have changed in significant respects as our globalsociety develops new structures and trade patterns.Our business concept<strong>Saab</strong> constantly develops, adopts and improves new technology to meet changing customerneeds. <strong>Saab</strong> serves the global market of governments, authorities and corporations with products,services and solutions ranging from military defence to civil security.Our visionIt is a human right to feel safe.Since <strong>Saab</strong> was started, we have strived to keep society and people safe. It is a basic humanneed to feel safe and, as we see it, a human right.Through systems and solutions that increasesecurity, we can make this possible.Our missionTo make people safe by pushing mental and technological boundaries.Our mission describes how we work to achieve our vision. By improving and updating technologicalsystems and solutions, we increase security in society, for its citizens and for thosewhose job it is to maintain security. We also contribute insight into how threats to our securitychange and develop innovative new solutions that make society secure.saab <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2009</strong> 11