ANNUAL REPORT 2009 - Saab

SAAB’S OPERATIONSA company at the forefrontof transformationSaab’s operations are changing as a consequence of themarket. This has resulted in a gradual shift in position alongthree axes:• Strictly Swedish• Traditional defence• Product-focused industryfocused on solutions.more internationally activemore civil securitymore service supplier1. Growing international operationsSeveral years ago, against the backdrop of developments in the militarysector in Sweden and other countries as well as sharp growth incivil security needs the world over, including international flows, Saabrealised that a big potential opportunity was in internationalising itsoperations.Current defence doctrine in Sweden is based on co-operation primarilywithin the framework of the EU and the UN, and NATOstandards have to be met for most material and solutions. Closerinternational alliances are creating a growing international market.This in turn requires a stronger international presence.The Nordic market is growing in importance for us. In addition,we have far-reaching, long-term commitments in South Africa andAustralia, which are good examples of an increasingly importantbusiness model based on a strategic local presence. Alliances andextensive co-operations with local companies and local modificationof products, systems and solutions facilitate and are sometimes a prerequisiteto gain access to a market.This development underscores the importance of expanding thecustomer base and enhancing our offering to meet changing needstoday and in the future. It also requires us to maintain cost-effectivesolutions in manufacturing and operations. New technologies haveto find broader application, preferably in both the military and civilmarket, and be adapted to international standards.Through its defence appropriations, the Swedish state has contributedin decisive fashion to the development of Saab’s core competencies,as well as that of Saab as a company and the entire Swedishdefence industry. The state also remains Saab’s biggest and mostimportant customer, especially as a development partner and referencecustomer.Sales outside SwedenSales 2009 2008 2007 2006Approx. SEK billion 16.9 16.3 15.0 13.7% of total sales 69 68 65 65The trend points to a long-term increase in the share of internationalsales. In 2009, we received an order from the Australian DefenceMaterial Organisation to develop a data link system for the ANZACand Canberra class ships, an order from the Finnish Air Force (AirForce Command Finland, AFCOMFIN) for integration andproduction of the BOL dispenser system, and an order for an airbornesurveillance system from the United Arab Emirates.2. Greater penetration in civil marketsToday Saab meets not only traditional defence needs, but to a growingextent the broader security needs of society as well. The continuingtransformation to a net-centric society, where the flow of goods,money and information crosses borders globally, makes it critical tosafeguard flows and protect vulnerable nodes in them. This requiresa gradual shift in emphasis in our operations, where we increasinglyapply security solutions originally designed for military needs andbased on military technology in civil situations as well.Expanding our operations from traditional defence to civil securityand the growing grey zone between them is one way for us tomeet society’s security needs by more broadly utilising establishedtechnologies rooted in the defence industry. This considerablyincreases our business potential while also spreading risks.14 saab ANNUAL REPORT 2009