ANNUAL REPORT 2009 - Saab

DRIVING FORCESA world in transformationSaab is affected by number of conditions and drivingforces in society, which present opportunities, threats andchallenges. Like every other company, Saab must successfullynavigate in a changing reality and find and optimisebusiness opportunities as they make themselvesavailable.The biggest driver in Saab’s markets is the changing security needsand threat scenarios in both the military and civil sectors, as well asin the growing grey zone between them. Political developments and,in the longer term, global economic conditions are also importantdrivers.New security needs in flow-based societyThe development of a global and regional transaction society requiresprotection of critical flows and nodes, such as airports, harbours, railways,highways and energy systems. Frictionless flows in turn requirealliances between many players, national and international.New forms of co-operationFurther integration of the global community and new internationalstructures have expanded cross-border alliances with a shift towardnet-centric defence and international special forces. The need to protectthese troops is increasing as well.Multilateral civil and military co-operations are becoming morecommon – within, outside and between the major political, economicand military blocs. For example, the defence authorities in theNordic countries have clearly expressed a desire to expand their collaboration.Such alliances require interoperable solutions that combinevarious systems and components and where a larger share ofdevelopment work is done collaboratively.MILITARY SPENDING 2008RankCountryMilitary spending(USD billion)Global share(%)1 USA 607 41.52 China 84.9 1) 5.8 1)3 France 65.7 4.54 UK 65.3 4.55 Russia 58.6 1) 4.0 1)6 Germany 46.8 3.27 Japan 46.3 3.28 Italy 40.6 2.89 Saudi Arabia ) 38.2 2.610 India 30.0 2.111 South Korea 24.2 1.712 Brazil 23.3 1.613 Canada 19.3 1.314 Spain 19.2 1.315 Australia 18.4 1.316 Others 276.2 18.6Total 1,464.0 100.0Military spending at constant prices and exchange ratesSource: SIPRI Yearbook 20091) Estimates.2) Figures for Saudi Arabia include costs for civil security.Higher percentage of self-financed R&DDefence authorities increasingly want access to proven, tested technologyand solutions in the market, regardless of country of origin.This is a trend around the world and means that a larger share ofresearch and development must be self-financed by the industry.In order to participate in international industrial projects in thedefence area, cutting-edge technology is a must, making this oneof the defence industry’s biggest challenges.12 saab ANNUAL REPORT 2009