ANNUAL REPORT 2009 - Saab

SAAB’S STRATEGIESTraditionally, Saab has done much of its development work itself.As a result, we have had to master many different areas of technology.Now we are working actively to reduce the number of these areas andwork more with various partners in our development programmes.It is also important to raise efficiencies in our development processesand to a growing degree utilise model-based development, opensource code and agile methods such as SCRUM (a framework toeffectively manage complex processes such as software development).With these measures, we can cut the cost to develop systems andcustomised solutions at the same time that we reduce our risk exposure.In addition, lead times are reduced, which allows us to betteradapt to our customers’ desire to quickly access materiel.Saab’s future investmentsThe most important aviation investment is Gripen NG Demo, thefirst step to Gripen NG (Next Generation), which is largely customer-financed.Saab is also investing in Skeldar, an unmanned helicopter,and is participating in the EU’s major CleanSky project,which is trying to make commercial aviation more efficient andenvironmentally friendly.Air traffic control is another area where we are investing by participatingin a European programme, Single European Sky Air TrafficManagement Research (SESAR) to improve efficiency and safetyin the airspace over Europe. We are also developing a common integrationplatform, Situation Awareness For Enhanced Security(SAFE) for our security systems..Radar is another area where we are investing. We are updatingthe Erieye system and developing a successor to the GIRAFFE family.In electronic warfare, we are focused mainly on Land ElectronicDefence Systems (LEDS), an active protection for combat vehicles.In missiles, we are investing in further development of the AT4 andCarl-Gustaf and a new generation Robot 70. In command and controlsystems, we are investing in the further development of ourtime-critical, tactical command systems. We also invest continuouslyin training systems.Research and development expendituresMSEK 2009 2008Defence and Security Solutions 629 661Systems and Products 1,598 1,926Aeronautics 2,593 1,554Total 4,820 4,141As per cent of sales, % 20 17Internally funded, % of total expenditure 25 35R&D AS PER CENT OF SALES2009, 20% 2008, 17% 2007, 20%Of which financed internally:25% (MSEK 1,194) 35% (MSEK 1,439) 31% (MSEK 1,396)saab ANNUAL REPORT 2009 19