SAAB

Annual Report • Feb 7, 2025

Making steady progress on our profitable growth journey

October-December 2024 Key Highlights

• Order bookings for the fourth quarter amounted to SEK 17,556m (31,501), driven by small and medium-sized orders, resulting in an order backlog amounting to SEK 187bn (153).
• Sales in the quarter amounted to SEK 20,850m (16,122) with an organic growth of 29%, driven by all business areas.
• Sales and sales growth for the quarter and the full year was in line with the Q4 update provided on January 17, 2025.
• EBITDA increased to SEK 2,734m (2,032) with an EBITDA margin of 13.1% (12.6) in the quarter.
• EBIT increased 38% and amounted to SEK 1,953m (1,420), corresponding to a margin of 9.4% (8.8).
• Net income increased to SEK 1,442m (1,254) and earnings per share amounted to SEK 2.66 (2.27), an increase of 17%.
• Operational cash flow amounted to SEK 3,558m (3,691) and was driven by large customer payments in the quarter.
• Net liquidity position at the end of the period was SEK 2,211m compared to SEK 2,343m at year-end 2023.
• The Board proposes a dividend for 2024 of SEK 2.00 (1.60).
• Outlook for 2025: an organic sales growth between 12-16%, an EBIT growth higher than the organic sales growth and a positive operational cash flow.
• Updated medium-term targets 2023-2027: an organic sales growth of around 18% (CAGR), an EBIT growth higher than the organic sales growth and a cumulative cash conversion of minimum 60%.

29%

Organic sales growth

Operating margin

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	96,798	77,811	24	17,556	31,501	-44
Order backlog	187,223	153,409	22
Sales	63,751	51,609	24	20,850	16,122	29
Gross income	13,663	11,260	21	4,286	3,517	22
Gross margin, %	21.4	21.8		20.6	21.8
EBITDA	8,402	6,558	28	2,734	2,032	35
EBITDA margin, %	13.2	12.7		13.1	12.6
Operating income (EBIT)	5,662	4,272	33	1,953	1,420	38
Operating margin, %	8.9	8.3		9.4	8.8
Net income	4,210	3,443	22	1,442	1,254	15
of which Parent Company's shareholders' interest	4,171	3,381	23	1,435	1,223	17
Earnings per share after dilution, SEK ²⁾	7.74	6.29	23	2.66	2.27	17
Return on equity, % ¹⁾	12.4	11.1
Operational cash flow	2,497	3,157		3,558	3,691
Free cash flow	993	1,566		3,267	2,559
Free cash flow per share after dilution, SEK ²⁾	1.84	2.91		6.05	4.75
Average number of shares after dilution ²⁾	539,218,308	537,511,328			540,113,152 538,631,236
¹⁾ Return on equity is measured over a rolling 12-month period.

Financial highlights

²⁾ Comparison periods adjusted for share split 4:1.

CEO comments

Making steady progress on our profitable growth journey

Micael Johansson

President and CEO

I am pleased to report that Saab ended 2024 in a strong way. We delivered a better-thanexpected organic sales growth of 23.4%, improved our operational performance with an EBIT growth of 32.5% and generated a positive cash flow of SEK 2.5 billion. We achieved all this while investing significantly in expansion to meet higher customer demand and strengthening our market position. In the wake of the global geopolitical uncertainty, Saab is committed to being a reliable partner, supporting countries in building their defence capabilities and contributing to increased European defence capacity.

In 2024, we further strengthened our order backlog, now amounting to SEK 187 billion (153). Order bookings for the full year increased 24% year-over-year and amounted to SEK 97 billion (78), with significant increases in our business areas Dynamics and Surveillance. Order bookings in the fourth quarter amounted to SEK 17.6 billion (31.5) and driven by small and medium-sized orders compared with large orders and positive adjustment related to index clauses in previously booked contracts the same period last year.

Demand for our products and systems remains high. In Aeronautics, interest in the Gripen E fighter is high with several ongoing campaigns for fighter acquisitions. In Dynamics, our entire portfolio is experiencing strong demand, with particular interest in Ground Combat, Missile Systems and Training & Simulation. Customer demand for the Surveillance portfolio is also strong with notable interest in our Airborne Early Warning & Control system GlobalEye. Finally, our underwater systems, submarines and surface ship capabilities in Kockums are well positioned for future opportunities.

Sales for the full year amounted to SEK 63.8 billion with an organic growth of 23.4%, which was higher than what we had guided for and led to a pre-announcement of our results. The strong sales performance was a result of unusually high customer deliveries and fast shipments of new orders. EBIT for the full year amounted to SEK 5.6 billion (4.3) and the margin of 8.9% exceeded last year's margin of 8.3%. This was supported by higher sales volumes, and improved scale and efficiency, while maintaining our priority on R&D investments in new softwaredriven technologies, autonomous systems, and AI-powered capabilities.

Sales in the quarter grew 29.3% with contributions from all business areas. EBIT increased 37.5% to SEK 2.0 billion (1.4) and corresponded to a margin of 9.4% (8.8). Strong performance in Dynamics from high volumes and a favourable project mix, along with improvements in Kockums and Combitech, was partly offset by lower margins in Aeronautics and Surveillance. Aeronautics was impacted by continued start-up costs for production in the T-7 programme, while Surveillance had a lossprovision within the commercial business. Excluding this, the underlying operating margin in Surveillance was in line with the same quarter last year.

Operational cash flow in the fourth quarter amounted to SEK 3.6 billion (3.7) and was driven by large customer milestone payments, partly offset by increased investments. With the accumulated cash flow of SEK 2.5 billion (3.2) for the full year, we deliver a solid positive operational cash flow for 2024.

The geopolitical security landscape is unusually uncertain, making it difficult to predict the future. We are fully focused on delivering on our record order backlog and we expect continued high demand for our portfolio and see opportunities to accelerate Saab's development by further bringing forward significant investments to increase capacity. While this will put some pressure on cash flow the next few years, it will enable Saab to win additional opportunities and to better serve our customers. Reflecting this, we raise our target for organic sales growth for 2023-2027 to around 18% (CAGR), up from around 15% and reduce our cumulative cash conversion target to at least 60% from at least 70% for the same period. For 2025, we currently expect organic sales growth of 12-16%, EBIT growth higher than the organic sales growth and a positive operational cash flow.

Saab will continue to make progress towards its goal of becoming a sustainability leader in the industry. During the year, we achieved a majority of our targets set out in the sustainability strategy. To enhance transparency further, we will publish our first sustainability report inspired by the European Sustainability Reporting Standards (ESRS) in the upcoming Annual and Sustainability Report. We will continue our initiatives to drive positive environmental and social impact in 2025, including our commitment to achieving long-term, science-based climate targets.

I would like to thank our employees for their hard work and contributions throughout the year. The addition of nearly 3,000 talented new employees will further strengthen our ability to deliver to our customers and secure continued growth.

Outlook 2025

Sales growth: Organic sales growth between 12-16%

Operating income:

Operating income growth higher than organic sales growth

Operational cash flow:

Operational cash flow to be positive

Medium-term Targets 2023-2027

Sales growth:

Organic sales growth of around 18% (compound annual growth rate, CAGR) Previous: Organic sales growth of around 15% CAGR

Operating income:

Operating income growth higher than organic sales growth

Operational cash flow:

Cash conversion of minimum 60%, (cumulative for the 5-year period) Previous: Cash conversion of minimum 70%

Orders

Fourth quarter 2024

Order bookings for the fourth quarter amounted to SEK 17,556 million (31,501), mainly driven by orders received within Surveillance and Dynamics. Small orders showed an increase compared to the same period last year and amounted to SEK 5,454 million (5,372), while medium-sized orders showed a decrease, amounting to SEK 10,893 million (13,878). The quarter included one large order related to the second order for MSHORAD to Lithuania of SEK 1.2 billion. Order intake in the comparison period included a positive adjustment to the order bookings of SEK 6.0 billion related to updated assessment of certain index clauses on previously taken orders of long-term character, by which the backlog value was adjusted to the current price level.

January-December 2024

Order bookings for the full year amounted to SEK 96,798 million (77,811), corresponding to an increase of 24 per cent. This was driven by significant growth in large orders, which amounted to 49,027 million (30,873). Small orders increased 17 per cent and amounted to SEK 19,117 million (16,385) and medium-sized orders decreased 6 per cent and amounted to SEK 28,654 million (30,553). Orders increased in business area Dynamics and Surveillance and Combitech.

The order backlog amounted to SEK 187,223 million, an increase of 22 per cent compared to SEK 153,409 million at the beginning of the year. In total, 72 per cent of the backlog is attributable to international markets, compared to 64 per cent at the end of last year. For more information on the order intake, see the business area pages 8, 9 and 10.

Sales

Fourth quarter 2024

Sales increased 29.3 per cent in the quarter, whereof organic growth was 29.3 per cent, and amounted to SEK 20,850 million (16,122). All business areas and Combitech recorded sales growth in the quarter, driven by continued high activity pace in programmes and deliveries.

January-December 2024

Sales for the full year amounted to SEK 63,751 million (51,609) corresponding to a sales growth of 23.5 per cent, of which organic growth was 23.4 per cent. All business areas recorded double-digit sales growth in the period.

Sales from international markets increased 25 per cent for the full year and amounted to SEK 37,611 million (29,995), corresponding to 59 per cent (58) of total sales. All regions except Australia showed growth in the period. 92 per cent (90) of sales were related to the defence business.

Sales growth

Per cent	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Organic sales growth	23.4	22.6	29.3	15.8
Change from acquisitions and divestments	0.2	-0.5	0.1	-0.5
Currency translation effects	-0.1	0.8	-0.1	1.0
Total sales growth	23.5	22.9	29.3	16.3

Sales per region

MSEK	Full Year 2024	Full Year 2023	Change, %
Sweden	26,140	21,614	21
Rest of Europe	15,829	11,913	33
North America	6,148	5,607	10
Latin America	4,556	3,690	23
Asia	5,329	4,759	12
Africa	165	109	51
Australia, etc.	3,375	3,425	-1
Undisclosed country	2,209	492	349
Total	63,751	51,609	24

Classification of orders	MSEK
Small orders	<100
Medium-sized orders	100-1000
Large orders	>1000

Order backlog duration:

2025: SEK 57.8 billion 2026: SEK 53.2 billion 2027: SEK 43.6 billion 2028: SEK 22.2 billion After 2028: SEK 10.4 billion

Sales by market A total of 59% (58) of the sales related to markets outside Sweden during 2024.

Order by market A total of 76% (64) of the order bookings related to markets outside Sweden during 2024.

Income

Fourth quarter 2024

Gross income increased 22 per cent in the quarter and amounted to SEK 4,286 million (3,517). The gross margin amounted to 20.6 per cent (21.8), reflecting unfavourable effects from a loss-provision in the commercial business in Surveillance and increased Corporate costs for IT and security. EBITDA increased 35 per cent and amounted to SEK 2,734 million (2,032) with a margin of 13.1 per cent (12.6). EBIT improved 38 per cent and amounted to SEK 1,953 million (1,420) with an operating margin of 9.4 per cent (8.8). The improvement was mainly driven by strong performance in Dynamics, but also improvements in Kockums and Combitech. The quarter included a net positive gain of SEK 40 million from revaluation of a contingent consideration payable of SEK 112 million offset by write-downs of intangible assets of SEK -72 million related to acquisitions. The comparison period included items affecting comparability of SEK -66 million net. See also note 5.

January-December 2024

Gross income increased 21 per cent and amounted to SEK 13,663 million (11,260), driven by the strong sales volumes. The gross margin declined somewhat to 21.4 per cent (21.8).

Total depreciation, amortisation and write-downs amounted to SEK 2,740 million (2,286). Depreciation of tangible fixed assets and right-of-use assets amounted to SEK 1,782 million (1,507). Total R&D expenditures amounted to SEK 10,528 million (8,899), corresponding to 17 per cent (17) of sales. Expenditures for internally funded investments in R&D amounted to SEK 2,705 million (2,049), of which SEK 530 million (547) has been capitalised. Capitalised expenditures are mainly attributable to the development of Gripen E/F. Amortisation and write-downs of intangible fixed assets amounted to SEK 958 million (779), of which amortisation and write-downs of capitalised development expenditures amounted to SEK 634 million (615). R&D amortisation is mainly related to GlobalEye, amounting to SEK 374 million (374) during 2024.

The share of income in associated companies and joint ventures amounted to SEK 72 million (-685). The comparison period included write-downs in the minority portfolio of SEK -494 million classified as items affecting comparability, see also note 5.

EBITDA increased 28 per cent and amounted to SEK 8,402 million (6,558), with an EBITDA margin of 13.2 per cent (12.7). Operating income (EBIT) increased 33 per cent and amounted to SEK 5,662 million (4,272), with a margin of 8.9 per cent (8.3). The margin improvement was supported by scale effects from the higher sales volumes. Items affecting comparability had an impact of net SEK 58 million including capital gain from the divestment of Combitech Norway of SEK 18 million, revaluation of a contingent consideration payable of SEK 112 and write-downs of intangible assets related to acquisitions of SEK -72 million. In 2023, items affecting comparability had an impact of net SEK -22 million , see also note 5.

Financial net

MSEK	Full Year 2024	Full Year 2023
Financial net related to pensions	-46	-35
Net interest items	121	110
Currency gains/losses	-266	156
Lease liability interest	-159	-139
Other financial items	-23	54
Total	-373	146

The financial net amounted to SEK -373 million (146) in 2024. The change compared to last year was mainly due to SEK depreciation which had an unfavourable impact on currency hedges in the tender portfolio and lower results from other financial items relating to short-term investments.

The financial net related to pensions is the financial cost for net pension obligations recognised in the balance sheet. See note 13 for more information regarding defined-benefit pension plans. Net interest items refer to interest on liquid assets, long- and short-term investments and interest expenses on short- and long-term interest-bearing liabilities and interest on interest-rate swaps.

Currency gains/losses recognised in the financial net are mainly related to currency hedges of the tender portfolio, which are measured at fair value through profit and loss. Lease liability interest consists of the interest portion related to lease liabilities recognised in the balance sheet. Other financial items consist of realised and unrealised results from short-term investments and derivatives as well as other currency effects, e.g. changes in exchange rates for liquid assets in currencies other than SEK.

Tax

Current and deferred taxes amounted to SEK -1,079 million (-975) during 2024, corresponding to an effective tax rate of 20 (22) per cent. The decrease in the effective tax rate was mainly a result of utilisation of previously non-capitalised loss carry forwards and higher non-taxable income in 2024.

Operating income (MSEK) and margin (%), Jan-Dec

EPS after dilution, SEK

Internally funded R&D expenditures, MSEK

Financial position and liquidity

At the end of December 2024, Saab had a net liquidity of SEK 2,211 million, a decrease of SEK 132 million compared to a net liquidity of SEK 2,343 million at year-end 2023. Net debt/EBITDA was -0.26 (-0.36) at the end of the year.

Cash flow from operating activities amounted to SEK 6,732 million (6,462).

Contract assets increased by SEK 2,007 million and contract liabilities increased by SEK 9,122 million compared to year-end 2023. Inventories increased by SEK 5,039 million during the year with increases mainly in Dynamics and Surveillance.

Net provisions for pensions, excluding special employer's contribution, amounted to SEK 1,070 million as of 31 December 2024, compared to SEK 1,490 million at year-end 2023. The effect on net debt of SEK 420 million was mainly a result of positive return on pension plan assets. For further information on Saab's defined-benefit pension plan, see note 13.

Tangible fixed assets amounted to SEK 12,484 million compared to 9,501 at the end of 2023. Rightof-use assets recognised in the balance sheet amounted to SEK 2,881 million compared to 2,554 million at the end of 2023.

Financial investments increased with SEK 1,661 million in the year and amounted to SEK 2,763 million (1,102). The increase was mainly related to an additional investment in and revaluation of shares in Helsing GmbH. Revaluation of the investment in Helsing GmbH is recognised in other comprehensive income.

Net investments in the year amounted to SEK 4,769 million (3,534). Investments in tangible fixed assets amounted to SEK 4,012 million (2,507).

Investments in intangible fixed assets in the year amounted to SEK 827 million (1,031), of which SEK 530 million (547) was related to capitalised R&D expenditures. The investments were mainly related to the development of Gripen E/F. Of the total investments in intangible fixed assets, SEK 297 million (484) was related to other intangible fixed assets.

As of 31 December 2024, long- and short-term interest-bearing investments and liquid assets amounted to SEK 13,351 million, a decrease of SEK 118 million compared to year-end 2023. In addition, the Group had unutilised revolving credit facilities amounting to SEK 6,000 million.

Capital employed increased by SEK 3,391 million, from December 31, 2023, to SEK 47,345 million at the end of the year. The return on capital employed was 13.6 per cent (11.9) and the return on equity was 12.4 per cent (11.1), both measured over a rolling 12-month period.

Key indicators of financial position and liquidity

Change in net debt Jan-Dec 2024

	MSEK
Net liquidity (+) / net debt (-), 31 Dec 2023 ¹⁾	2,343
Cash flow from operating activities	6,732
Change in net pension obligation	420
Net investments	-4,769
Sale of and investments in financial assets, associates and joint ventures	-290
Change through equity swap agreement	-317
Dividend	-856
Dividend to and transactions with non-controlling interest	-41
Additional lease liabilites	-1,001
Sales of and investments in operations	10
Other items, currency impact and unrealised results from financial investments	-20
Net liquidity (+) / net debt (-),
31 December 2024 ¹⁾	2,211
¹⁾ Net liquidity (+) / net debt (-) excluding net provisions for pensions, lease liabilities and interest-bearing receivables, 31 December 2024	5,999

MSEK	31 Dec 2024	31 Dec 2023	Change
Net liquidity / debt ²⁾	2,211	2,343	-132
Intangible fixed assets	12,998	12,941	57
Goodwill	5,572	5,424	148
Capitalised development costs	6,052	6,106	-54
Other intangible fixed assets	1,374	1,411	-37
Tangible fixed assets, etc ³⁾	12,898	9,915	2,983
Right of use assets ⁴⁾	2,881	2,554	327
Inventories	21,825	16,786	5,039
Accounts receivable	11,334	7,244	4,090
Contract assets	14,323	12,316	2,007
Contract liabilities	25,675	16,553	9,122
Equity/assets ratio, %	35.9	39.1	-
Return on equity, %	12.4	11.1	-
Return on capital employed, %	13.6	11.9	-
Equity per share, SEK ¹⁾⁵⁾	66.33	60.10	6.23
1) Number of shares excluding treasury shares and repurchased through equity swap ⁵⁾	535,270,968	532,989,260

2) The Group's net liquidity/debt refers to liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions excluding provisions for special employers' contribution attributable to pensions. For a detailed break-down of interest-bearing receivables and interest-bearing liabilities, see note 8.

3) Including tangible fixed assets and biological assets.

4) Relate to right-of-use assets for leases. 5) Comparison periods adjusted for share split 4:1.

6 YE AR-END R EPO RT Q4 2024

Cash flow

Fourth quarter 2024

In the fourth quarter, operational cash flow amounted to SEK 3,558 million (3,691). Cash flow from operating activities including impact from working capital was higher than the comparison period while increase in investments had an offsetting impact.

January-December 2024

Operational cash flow in 2024 amounted to SEK 2,497 million (3,157). The decrease compared to 2023 was mainly a result of increased investments and unfavourable impact from working capital.

Due to the nature of Saab's customer contracts, deliveries and timing of customer milestone payments in large projects can result in large fluctuations in cash flow between reporting periods.

Free cash flow during the year amounted to SEK 993 million (1,566). For more detailed information on cash flow, see note 11.

MSEK	Jan-Dec 2024	Jan-Dec 2023
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	8,269	6,777
Change in working capital	-1,003	-86
Cash flow from operating activities excluding taxes and other financial items	7,266	6,691
Cash flow from investing activities ²⁾	-4,769	-3,534
Operational cash flow	2,497	3,157
Taxes and other financial items	-1,224	-815
Investments in and sale of financial assets and operations	-280	-776
Free cash flow	993	1,566

1) Including amortisation of lease liabilities

2) Cash flow from investing activities excluding change in short-term investments and other interest-bearing financial assets and excluding sale of and investment in financial assets, operations and subsidiaries. If investments in and sale of financial fixed assets are considered to be of operating nature, the item is included in investing activities.

Operational cash flow, MSEK

Free cash flow, MSEK

Business Area

Aeronautics

Business Units

Advanced Programs, Aerospace Systems, Aviation Services, Gripen.

Market highlights

Order intake in the fourth quarter included a contract from Sweden for the integration of new advanced missile systems for Gripen C/D and a contract to support future development of the Gripen system during 2025. The fourth quarter last year included price index adjustments which had a favourable impact on order bookings of SEK 4.3 billion.

Sales and operating income

Aeronautics sales increased 35% in the quarter and reflected a high execution pace in programmes especially for Gripen E/F to Brazil. EBIT increased in the quarter as a result of the higher sales volumes, while the margin decreased year-over-year due to continued start-up for production in the T-7 programme.

Cash flow

Cash flow was positive mainly driven by reduced working capital.

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	11,176	18,111	-38	2,416	9,233	-74
Order backlog	41,501	46,995	-12
Sales	16,689	13,754	21	5,594	4,152	35
EBITDA	1,230	916	34	326	263	24
EBITDA margin, %	7.4	6.7		5.8	6.3
Operating income (EBIT)	977	710	38	252	212	19
Operating margin, %	5.9	5.2		4.5	5.1
Operational cash flow	-712	-370		1,395	240

Sales in markets outside Sweden amounted to 43% (42) during 2024.

Business Area Dynamics

Business Units

Barracuda, Ground Combat, Missile Systems, Tactical Support Solutions, Training and Simulation.

Market highlights

Order bookings amounted to SEK 5.2 billion in the quarter and was driven by medium-size contracts and a large order for the second Mobile Short Range Air Defence (MSHORAD) from Lithuania.

Sales and operating income

Sales growth in the quarter was exceptionally strong, driven by high activity and large delivery volumes in several business units. EBIT improved in the period and was a result of the higher sales volumes and positive project mix. The EBIT margin amounted to 21.2%.

Cash flow

Cash flow in the quarter amounted to SEK 1 billion, driven by EBIT and minor decrease in working capital partly offset by investments.

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	50,293	26,709	88	5,159	8,753	-41
Order backlog	78,886	43,103	83
Sales	14,605	11,160	31	5,615	3,800	48
EBITDA	2,693	1,856	45	1,230	623	97
EBITDA margin, %	18.4	16.6		21.9	16.4
Operating income (EBIT)	2,565	1,758	46	1,192	596	100
Operating margin, %	17.6	15.8		21.2	15.7
Operational cash flow	2,798	3,237		1,004	1,802

Note: 2023 has been restated due to the transfer of business unit Underwater Systems from Dynamics to Kockums as per 1st January 2024. For restated figures, please see https://www.saab.com/investors/financials/financial-data

Sales, MSEK Operating margin, % Operating margin, R12, %

Business Area

Surveillance

Business Units

Airborne Early Warning, Digital Battlespace Solutions, Fighter Core Capabilities, Naval Combat Systems, Safety and Security Solutions, Surface Sensor Solutions.

Market highlights

Order intake in the quarter was at a comparable level to the same period last year, including multiple orders for sensor systems such as the Giraffe family and Sirius Compact as well as parts of the MSHORAD order to Lithuania. The fourth quarter last year benefited from SEK 1.7 billion in order bookings due to price index adjustments.

Sales and operating income

Sales increased in the quarter driven by continued high pace in project execution across several business units. The higher sales volumes had a favourable contribution on EBIT, but was offset by a loss-provision in the commercial business, leading to an operating margin of 10.3%. Excluding this loss, the underlying EBIT margin was in line with the fourth quarter last year.

Cash flow

Cash flow in the quarter amounted to SEK 1.4 billion driven by customer payments despite higher inventory and investments.

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	28,534	23,887	19	9,062	9,042	0
Order backlog	52,725	45,780	15
Sales	22,014	18,559	19	6,504	5,777	13
EBITDA	3,038	2,933	4	985	954	3
EBITDA margin, %	13.8	15.8		15.1	16.5
Operating income (EBIT)	1,991	2,034	-2	668	705	-5
Operating margin, %	9.0	11.0		10.3	12.2
Operational cash flow	1,333	1,153		1,439	1,913

Sales in markets outside Sweden amounted to 72% (72) during 2024 .

Market Sales in markets outside Sweden amounted to 31% (29) during 2024 .

*Operating margin and Operating margin R12, % are adjusted for items affecting comparability and excludes a capital gain of SEK 270 million from the divestment of MTM operations in Q1 2023. For Q4 2024, adjustments comprise a gain from remeasurement of a contingent consideration payable of SEK 112 million and write-down of intangible asset related to aquired customer relations of SEK 72 million.

Business Area Kockums

Business Units

Docksta, Submarines, Surface Ships, Underwater Systems.

Market highlights

Order bookings in the quarter included orders for underwater systems from Sweden and orders for the combat boat CB90.

Sales and operating income

Sales increased 29% in the quarter, driven by good project execution in key programmes. The EBIT and EBIT margin increased compared to the same quarter last year, supported by the higher sales volumes.

Cash flow

Cash flow was negative in the quarter due to the timing of larger customer payments.

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	5,706	7,497	-24	1,070	4,313	-75
Order backlog	14,360	17,031	-16
Sales	8,364	6,314	32	2,617	2,027	29
EBITDA	690	469	47	287	202	42
EBITDA margin, %	8.2	7.4		11.0	10.0
Operating income (EBIT)	639	432	48	275	192	43
Operating margin, %	7.6	6.8		10.5	9.5
Operational cash flow	289	-254		-443	-524

Note: 2023 has been restated due to the transfer of business unit Underwater Systems from Dynamics to Kockums as per 1st January 2024. For restated figures, please see https://www.saab.com/investors/financials/financial-data

Other operating segment Combitech

Market highlights

Demand for defence and security solutions remained solid in the quarter, with growing customer interest for AI solutions. In the quarter, Combitech signed several new contracts, including agreements with Swedish municipalities and industrial clients.

Sales and operating income

Sales increased 16% in the fourth quarter. This was driven by increased number of customer projects and deliveries and a higher number of employees compared to the same quarter last year. The EBIT and EBIT margin improved in the as a result of of the higher sales volumes.

The full year results included a positive effect of SEK 18 million from the divestment of the operations in Norway in Q3.

Cash flow

Cash flow was positive in the quarter reflecting milestone payments and customer advances.

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023	Change, %
Order bookings	4,637	4,291	8	1,344	1,122	20
Order backlog	1,927	1,595	21
Sales	4,306	3,922	10	1,298	1,117	16
EBITDA	458	350	31	143	114	25
EBITDA margin, %	10.6	8.9		11.0	10.2
Operating income (EBIT)	442	340	30	136	111	23
Operating margin, %	10.3	8.7		10.5	9.9
Operational cash flow	532	387		305	332

*Operating margin and Operating margin R12, % adjusted for items affecting comparability and excludes the capital gain of SEK 18 million from the divestment of Combitech Norway in Q3 2024.

Corporate and other items

Corporate

Corporate comprise group staff, group departments and other operations including Saab's minority portfolio. The minority portfolio contains Saab's Venture portfolio. Corporate reported an operating loss of SEK -570 million (-396) in the fourth quarter, mainly driven by increased costs for IT and security. The fourth quarter 2023 included write-downs in the minority portfolio of SEK -210 million, partly offset by negative goodwill from a purchase price allocation of SEK 144 million, see note 5. The operating loss for 2024 was SEK -952 million (-1,002). The comparison period included write-downs in the minority portfolio of SEK -494 million, partly offset by negative goodwill from a purchase price allocation of SEK 144 million and a capital gain from a divestment of property amounting to SEK 58 million. See also note 5. Operational cash flow attributable to Corporate amounted to SEK -1,743 million (-996) during 2024. The decrease was mainly driven by changes in working capital and increased investments in tangible fixed assets.

Acquisitions and divestments 2024

Market Sales in markets outside Sweden amounted to 5% (6) during 2024.

In the first quarter 2024, Saab completed the acquisition of the remaining shares in UMS Skeldar AG for a minor consideration. In the beginning of the third quarter, Combitech divested its Norwegian entity with 30 employees for a minor consideration. No acquisitions or divestments took place in the fourth quarter.

Share repurchase and share split

Saab held 6,915,618 treasury shares as of 31 December 2024, compared to 10,394,128 at year-end 2023 (adjusted for the share split 4:1). During the second quarter 2024, Saab also entered an equity swap agreement with a third party to hedge the expected financial exposure of LTI 2024. As of 31 December 2024, the equity swap consisted of 1,196,802 shares. The Annual General Meeting in 2024 authorised the Board of Directors to repurchase a maximum of 1,100,000 shares of series B (or a maximum of 4,400,000 shares of series B following implementation of the share split 4:1) to secure delivery of shares to participants in Saab's long-term incentive programmes 2025. The Annual General Meeting also decided to authorise the Board, before the next Annual General Meeting, to decide on the acquisition of Series B shares up to a maximum of 10 percent of the total number of shares in the company. The purpose of the authorisation is to be able to adjust the company's capital structure and thereby contribute to increased shareholder value as well as to enable continued use of repurchased shares in connection with potential acquisitions of companies and for the company's share-related incentive programmes.

On 11 April 2024, the Annual General Meeting decided on a share split, whereby each share is divided, regardless of series, into four shares of the same series. The record date for the share split was 8 May, 2024. After the share split, the total number of shares in Saab amounts to 543,383,388 of which 9,535,612 are A shares and 533,847,776 B shares, corresponding to 629,203,896 votes in total.

Proposed dividend

The Board of Directors proposes that shareholders receive a dividend of SEK 2.00 per share (1.60 after share split 4:1), totalling SEK 1,071 million (853). The dividend for 2024 is based on the number of shares outstanding as of 31 December 2024, amounting to 535,270,968 (532,989,260 after share split 4:1). In order to facilitate a more efficient cash management, the dividend is proposed to be paid out in two equal instalments. The proposed record dates to be entitled to receive the dividend are 14 April 2025 and 7 October 2025. The dividend is expected to be paid out on 17 April 2025 and 10 October 2025.

Risks and uncertainties

Saab's operations primarily involve the development, production and supply of technologically advanced hardware and software to military and civilian customers around the world. Operations largely consist of major projects carried out over long periods of time, usually several years, in close cooperation with customers, suppliers, partners and institutions. Projects generally entail significant investments, long periods of time and technological development or refinement of products. In addition to customer and supplier relations, international operations involve joint ventures and collaborations with other industries as well as the establishment of operations abroad. Operations entail risk in various respects. The key risk areas are strategic, market and political, operating, financial and compliance. Various policies and instructions govern the management of material risks. Saab is today growing rapidly with production ramp-up and conducts projects involving a large share of development, which entails a higher level of risk. Furthermore, the market is characterised by conditions where orders can be deferred to the future partly for financial and political reasons.

The uncertainty in the global supply chain, including trade barriers, entails a risk for Saab and its operations. The challenges primarily relate to the availability of certain raw materials and defence-specific supply, ramping up production capacity at some suppliers, as well as suppliers' ability to handle the flow-down of increasing regulatory requirements. Saab works actively to manage the supply chain risks through mitigating actions such as contract management, second sourcing, re-planning and intensified forecasting dialogue and negotiations with suppliers.

In October 2024, Saab North America, Inc. received a subpoena from the U.S. Department of Justice (DoJ) requesting information about the Brazilian Government's acquisition of 36 Gripen E/F fighter aircraft in 2014. Saab is complying with the request to supply information and cooperating with the DoJ in this matter. Both Brazilian and Swedish authorities have previously investigated parts of the Brazilian fighter procurement process. These investigations were closed without indicating any wrongdoings by Saab.

For a general description of the risk areas, see the Annual Report 2023, pages 36-41.

Risks related to armed conflicts

The geopolitical tensions in the world, including the armed conflicts in Ukraine and the Middle East as well as disinformation, have resulted in a more complex and diverse security environment for Saab. Therefore, Saab has increased security measures to protect its sites, personnel and IT, as well as measures against cyber risks, which may lead to increased costs for security.

Saab has no defence-related sales exposure to Belarus and Russia, but is closely monitoring the impact on the business from the war in Ukraine. Saab is operating in a highly regulated market and it is essential for Saab as a responsible defence company to comply with all applicable regulations and commitments regarding export control and sanctions, i.e. sanctions from EU, UN, OSCE or other applicable country-specific sanctions. Saab's crisis management organisation has an ongoing focus on security, embargo and sanction practices.

Furthermore, Saab could be impacted by supply chain risks related to the conflict in the Middle East as the company has a limited number of suppliers in Israel. Saab is monitoring the situation and has mitigating actions in place and is in close dialogue with its suppliers. Saab has no defence-related sales exposure to Israel.

Owners

Largest owners, 31 December 2024:

	% of capital	% of votes
Investor AB	30.2	40.1
Wallenberg Investments	8.7	7.6
Swedbank Robur
Funds	3.3	2.8
BlackRock	2.7	2.3
Vanguard	2.3	2.0
Avanza Pension	0.9	0.8
Alliance Bernstein	0.9	0.8
Avanza Funds	0.9	0.7
First Swedish National Pension Fund	0.8	0.7
Norges Bank Investment
Management	0.8	0.7

Source: Modular Finance

The percentage of votes is calculated on the number of shares excluding treasury shares.

Personnel

	31 Dec 2024	31 Dec 2023
Number of
permanent
employees	24,481	21,479
FTEs	24,523	21,610

Sustainability at Saab

Highlights during the quarter

• For the full, year Saab reduced the Scope 1 & 2 emissions by 6.4% continuing to make progress towards climate leadership in the industry.
• Saab, in collaboration with Colombian and Swedish partners, has developed a drone to collect vital climate data, including greenhouse gas concentrations and ecosystem indicators.
• Engagement with supply chain partners is key to Saab's ambitious climate goal. To foster collaboration, Saab recently brought together 150 suppliers for a dialogue focused on supply chain sustainability. During the event, Saab emphasized its commitment to achieving netzero emissions by 2050.

Achieving a majority of our sustainability target fulfilment

Saab is continuing to deliver on its sustainability efforts, aiming to be a leader in the defense sector. In 2023, Saab set firm targets for the material topics outlined in its sustainability strategy. In 2024, Saab has made progress in the majority of the topics, achieving a 56% target fulfilment. With new and revised short-term targets for 2025, Saab will continue to deliver towards its strategic long-term targets. The first sustainability report inspired by the European Sustainability Reporting Standards (ESRS) will demonstrate Saab's dedication to transparency and accountability.

Launch of Saab Climate Change Drone Project at COP16

Saab, in partnership with EAFIT University, KTH Royal Institute of Technology, and the Swedish and Colombian Ministries of Climate and Environment & Science, has developed a UAV (Unmanned Aerial Vehicle) for climate research. The drone will collect data on greenhouse gas concentrations, pollutants, and ecosystem health, contributing to better climate modeling and mitigation strategies. Launched at COP16 in Colombia, the project underscores Saab's commitment to sustainability and collaboration. As an advisor, Saab has supported the initiative through its Triple Helix model (a collaborative innovation ecosystem with government, academia and industry for economic growth).

Climate leadership through supply chain collaboration

Committed to achieving net-zero emissions by 2050, Saab recognizes the vital role of its supply chain partners in reaching its ambitious climate goals. In December, Saab engaged its suppliers in a dialogue, outlining its climate journey and expectations for collaborative action, emphasizing the shared benefits of a sustainable future.

Saab Australia invests in sustainable infrastructure

During the fourth quarter, Saab Australia completed its new headquarters building at its Mawson Lakes campus. This facility incorporates the latest environmental features, including solar power generation, optimized natural light and ventilation, electric vehicle charging stations, circular building practices, and rainwater harvesting, setting a new standard for sustainable infrastructure in the region.

¹ All performance indicators are global

² Number of lost-time injuries / total hours worked x 1,000,000

³ Number of recordable injuries / total hours worked x 1,000,000

Climate

During the quarter, the Saab Climate Fund provided funding for four innovations selected through its Innovation Call Climate initiative. These innovations focus on reducing emissions in three key areas: energy efficiency, fuel switching, and the use of renewable energy.

In the fourth quarter, Saab's greenhouse gas emissions from Scope 1 rose, compared to the same quarter last year, as a result of increased test flights and business related travel. Total emissions (Scope 1 and 2) decreased by 8.8% compared to the same quarter last year, driven by energy efficiency measures, including a higher reliance on fossil-free district heating and Renewable Energy Certificates (REC) and Guarantees of Origin (GoOs).

For the full year 2024, Saab reduced its Scope 1 and 2 emissions by 6.4% compared to the previous year, despite increased manufacturing output. This has been achieved through continued work to improve energy efficiency and use of contractual instruments, i. e. REC and GoO.

People

In 2024, the Lost Time Injury Frequency Rate (LTIFR) and the number of reported incidents per workplace injury decreased compared to 2023. However, the Total Recordable Injury Frequency Rate (TRIFR) increased. Saab has made improvements to its reporting and system support, leading to an increase in reported injuries, particularly Total Recordable Injuries (TRIs). Saab is continuously improving its processes for handling hazard identifications and close calls to prevent future incidents.

The proportion of women employees was 26% at the end of the year, an increase from 25% at the end of 2023. 28% of the management positions were held by women at the end of 2024 compared to 27% in 2023

Performance Indicators1	Dec 2022	Dec 2023	Dec 2024
Lost Time Injury Frequency Rate (LTIFR)2	0.84	1.33	1.24
Total Recordable Injury Frequency Rate (TRIFR)3	2.61	3.57	4.38
Reported incidents per workplace injury 4	4.4	5.0	4.1
Share of women managers	27%	27%	28%
Share of women employees	24%	25%	26%

4 Increased incidence reporting leads to fewer accidents

Significant events

January-December 2024

On 22 January, Saab announced it had signed a GlobalEye support contract with the United Arab Emirates. The order value is approximately USD 190 million with a three-year contract period that runs until 2026.

On 23 February, Saab signed a contract with the Swedish Defence Materiel Administration (FMV) and received an order for four additional Gripen C fighter aircraft for Hungary.

On 4 March, Saab signed a contract with the Polish Ministry of Defence's procurement authority for delivery of the Carl-Gustaf M4 weapon, ammunition and training equipment. The order value corresponds to SEK 12.9 billion and the contract period is 2024-2027. The order intake was booked by Saab in Q2 2024 as the contract entered into force.

On 10 April, Saab announced it had appointed Mikael Adelsberg as Chief Digital Officer and head of the new group function Group Digitalisation. The change came into effect on 1 October and Mikael Adelsberg is now a member of Saab's Group Management.

On 11 April, Saab held its Annual General Meeting in Linköping, Sweden and the AGM decided on a dividend of SEK 6.40 per share, paid out in two equal instalments. The AGM also resolved on a share split where each share is divided into four shares. The record date for the share split was 8 May, 2024. The first part of the dividend (SEK 3.20 per share) was paid out on 18 April 2024 and following the share split, the second part (SEK 0.80 per share) was paid out on 11 October 2024. Read more on www.saab.com/agm.

On 31 May, Saab received an order from the government of a Western country for a number of defence systems and equipment. The order value is approximately SEK 7.7 billion with deliveries planned 2027-2028.

On 4 June, Saab received an initial investment grade credit rating of BBB+ with stable outlook from S&P Global.

On 18 June, Saab announced that Anna Wijkander, previously deputy CFO and head of Corporate Control at Saab, will become the company's new CFO and member of Saab's Group Management. She replaces Saab's previous CFO Christian Luiga that decided to leave the company. Anna Wijkander assumed the position on 9 September 2024.

On 27 June, Saab signed a contract with the Swedish Defence Materiel Administration (FMV) regarding delivery of a third GlobalEye airborne early warning and control aircraft to Sweden. The order value is approximately SEK 2.6 billion and the delivery period is 2024-2029.

On 24 July, Saab received an order for defence equipment from the government of a Western country. The order value is approximately SEK 6.6 billion with deliveries planned 2027-2028.

On 10 October, Saab informed that the U.S. Department of Justice (DoJ) has requested information from Saab North America, Inc. regarding Brazil's acquisition of Gripen fighters in 2014. Saab intends to comply with the request to supply information and to cooperate with DoJ in this matter.

On 23 December, Saab announced it had signed a contract with the Swedish Defence Materiel Administration regarding the modernisation of Sweden's coastal anti-ship missile capability. The total order value is SEK 800 million and deliveries will begin in 2026.

For more information on significant orders received during the period, see page 4 and the comments on the business areas on page 8-10. All press releases can be found on www.saab.com/newsroom.

Events after the conclusion of the period

On 17 January, Saab provided a Q4 update and comments on higher organic sales growth for full year 2024. Sales for full year 2024 was expected to be approximately SEK 63.8 billion (51.6), corresponding to an organic sales growth of 23.4%.

On 29 January, Saab announced that Jonas Hjelm, Senior Vice President and Head of Government Affairs, will leave his position and the Group Management team to become Senior Advisor at Saab.

On 31 January, Saab announced a number of changes affecting the Group Management team of the company. Eva Karlsson has been appointed Senior Vice President, Chief Operating Officer (COO) and will be a member of Saab's Group Management team. As a consequence, Saab's Charlotta Björklund, currently Senior Vice President, Operational Excellence, will leave the Group Management team as of 1 March 2025 and subsequently report to the COO. Moreover, the scope of the Group Strategy function is reduced and will become more focused on the common strategic areas of Saab. Therefore, Saab's Christian Hedelin, Senior Vice President and Chief Strategy Officer, will leave the Group Management team and report to Anders Carp, Deputy CEO.

Saab brings new autonomous capability to naval vessels

In the fourth quarter, Saab presented Autonomous Ocean Core, a ready-to-use autonomous control system to provide autonomy capabilities to surface and subsurface naval platforms in military and civilian missions.

With Autonomous Ocean Core integrated, un-crewed vessels can operate on missions such as mine detection and clearance, intelligence, surveillance and reconnaissance, as well as electronic warfare.

Saab opens new production facility

First launched in 2022 and manufactured in Finland, Sirius Compact has been well received by the market with significant deliveries scheduled for 2025. In response to the high demand, Saab is opening a new manufacturing facility in Tampere, Finland, to cater for serial production of Sirius Compact.

The new manufacturing facility in Tampere will enter into service early 2025.

Consolidated income statement

MSEK	Note	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Sales	4	63,751	51,609	20,850	16,122
Cost of goods sold		-50,088	-40,349	-16,564	-12,605
Gross income		13,663	11,260	4,286	3,517
Gross margin, %		21.4	21.8	20.6	21.8
Other operating income	5	301	591	150	179
Marketing expenses	5	-3,099	-2,738	-1,000	-777
Administrative expenses		-2,416	-1,980	-668	-596
Research and development costs		-2,809	-2,117	-818	-624
Other operating expenses		-50	-59	-41	22
Share of income in associated companies and joint ventures	5	72	-685	44	-301
Operating income (EBIT) ¹⁾	3	5,662	4,272	1,953	1,420
Operating margin, %		8.9	8.3	9.4	8.8
Financial income		563	782	126	334
Financial expenses		-936	-636	-354	-131
Net financial items		-373	146	-228	203
Income before taxes		5,289	4,418	1,725	1,623
Taxes		-1,079	-975	-283	-369
Net income for the period		4,210	3,443	1,442	1,254
of which Parent Company's shareholders' interest		4,171	3,381	1,435	1,223
of which non-controlling interest		39	62	7	31
Earnings per share before dilution, SEK ²⁾⁴⁾		7.81	6.36	2.68	2.30
Earnings per share after dilution, SEK ³⁾⁴⁾		7.74	6.29	2.66	2.27
1) Of which depreciation/amortisation and write-downs		-2,740	-2,286	-781	-612
2) Average number of shares before dilution ⁴⁾		534,007,696	531,535,632	534,848,975	532,640,956
3) Average number of shares after dilution ⁴⁾		539,218,308	537,511,328	540,113,152	538,631,236
4) Comparison periods adjusted for share split 4:1

Consolidated statement of comprehensive income

MSEK	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Net income for the period	4,210	3,443	1,442	1,254
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	348	-682	-31	-1,377
Tax attributable to revaluation of net pension obligations	-72	140	6	283
Equity instruments classified as measured at fair value through other
comprehensive income	1,371	-39	49	-41
Tax attributable to equity instruments classified as measured at fair value through
other comprehensive income	-8	8	0	8
Total	1,639	-573	24	-1,127
Items that may be reversed in the income statement:
Translation differences	486	-422	373	-515
Cash flow hedges	-2,360	807	-2,514	982
Tax attributable to cash flow hedges	492	-170	530	-206
Interest-bearing investments classified as measured at fair value through other
comprehensive income	2	-	-3	-
Tax attributable to interest-bearing investments classified as measured at fair
value through other comprehensive income	-1	-	0	-
Total	-1,381	215	-1,614	261
Other comprehensive income/loss for the period	258	-358	-1,590	-866
Net comprehensive income/loss for the period	4,468	3,085	-148	388
of which Parent Company's shareholders' interest	4,408	3,038	-174	386
of which non-controlling interest	60	47	26	2

Consolidated statement of financial position

MSEK	Note	31 Dec 2024	31 Dec 2023
ASSETS
Fixed assets:
Intangible fixed assets	7	12,998	12,941
Tangible fixed assets		12,484	9,501
Biological assets		414	414
Right of use assets		2,881	2,554
Shares in associated companies and joint ventures		315	253
Financial investments		2,763	1,102
Long-term interest-bearing investments		1,610	-
Long-term receivables		435	515
Deferred tax assets		521	482
Total fixed assets		34,421	27,762
Current assets:
Inventories		21,825	16,786
Derivatives		930	1,656
Tax receivables		250	51
Accounts receivable		11,334	7,244
Contract assets		14,323	12,316
Other receivables		3,259	2,192
Prepaid expenses and accrued income		1,740	1,283
Short-term interest-bearing investments Liquid assets	11	8,898 2,843	11,340 2,129
Total current assets		65,402	54,997
TOTAL ASSETS		99,823	82,759
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest		35,503	32,035
Non-controlling interest		309	327
Total shareholders' equity		35,812	32,362
Long-term liabilities:
Long-term lease liabilities	8	2,337	2,078
Other long-term interest-bearing liabilities Other liabilities		7,128 136	6,915 210
Provisions for pensions	13	1,387	1,872
Other provisions		2,238	2,888
Deferred tax liabilities		1,070	1,432
Total long-term liabilities		14,296	15,395
Current liabilities:
Short-term lease liabilities		695	597
Other short-term interest-bearing liabilities	8	224	453
Contract liabilities		25,675	16,553
Accounts payable		8,215	6,080
Derivatives		2,444	1,111
Tax liabilities		536	235
Other liabilities		1,190	1,083
Accrued expenses and deferred income Provisions		9,700 1,036	8,015 875
Total current liabilities		49,715	35,002
Total liabilities		64,011	50,397
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		99,823	82,759

Consolidated statement of changes in equity

MSEK	Capital stock	Other capital contri butions	Net result of cash flow hedges	Translation reserve	Retained earnings	Total parent company's shareholders' interest	Non controlling interest	Total shareholders' equity
Opening balance, 1 January 2023	2,174	6,099	176	1,192	19,845	29,486	390	29,876
Net comprehensive income/loss for the period January-December 2023 Reallocation of revaluation reserve			637	-407	2,808 -	3,038	47	3,085
Transactions with shareholders:
Share matching plan					214	214		214
Dividend					-703	-703	-120	-823
Acquisition and sale of non-controlling interest					-	-	10	10
Closing balance,
31 December 2023	2,174	6,099	813	785	22,164	32,035	327	32,362
Opening balance, 1 January 2024	2,174	6,099	813	785	22,164	32,035	327	32,362
Net comprehensive income/loss for the period January-December 2024			-1,868	465	5,811	4,408	60	4,468
Transactions with shareholders:
Repurchase of shares through equity swap					-318	-318		-318
Share matching plan					235	235		235
Dividend					-856	-856	-79	-935
Acquisition and sale of non-controlling interest					-1	-1	1	0
Closing balance,
31 December 2024	2,174	6,099	-1,055	1,250	27,035	35,503	309	35,812

Consolidated statement of cash flows

MSEK Note	Full Year 2024	Full Year 2023
Operating activities:
Income after financial items	5,289	4,418
Adjustments for items not affecting cash flows	3,369	2,950
Dividend from associated companies and joint ventures	22	36
Income tax paid	-945	-856
Cash flow from operating activities before changes in working capital	7,735	6,548
Cash flow from changes in working capital:
Contract assets and liabilities	7,218	2,915
Inventories	-4,890	-2,691
Other current receivables	-5,464	-1,922
Other current liabilities	3,589	2,020
Provisions	-1,456	-408
Cash flow from operating activities	6,732	6,462
Investing activities:
Capitalised development costs	-530	-547
Investments in other intangible fixed assets	-297	-484
Investments in tangible fixed assets	-4,012	-2,507
Sales and disposals of tangible fixed assets including biological assets	70	4
Investments in and sale of short-term investments	2,471	-1,233
Investments in financial assets, associated companies and joint ventures	-1,894	-1,268
Investments in operations	-15	-262
Sale of subsidiaries and other operations	25	382
Cash flow from investing activities	-4,182	-5,915
Financing activities:
Repayments of loans	-678	-1,075
Amortisation of lease liabilities	-690	-586
Raising of loans and increase in other interest-bearing liabilities	331	1,250
Dividend paid to Parent Company's shareholders	-856	-703
Dividend paid to non-controlling interest	-41	-126
Transactions with non-controlling interest	-	10
Cash flow from financing activities	-1,934	-1,230
Cash flow for the period	616	-683
Liquid assets at the beginning of the period	2,129	2,869
Exchange rate difference in liquid assets	98	-57
Liquid assets at end of period 11	2,843	2,129

Quarterly consolidated income statement

MSEK	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Sales	20,850	13,546	15,170	14,185	16,122	11,527	12,475	11,485
Cost of goods sold	-16,564	-10,634	-11,790	-11,100	-12,605	-9,046	-9,715	-8,983
Gross income	4,286	2,912	3,380	3,085	3,517	2,481	2,760	2,502
Gross margin, %	20.6	21.5	22.3	21.7	21.8	21.5	22.1	21.8
Other operating income	150	111	20	20	179	15	114	283
Marketing expenses	-1,000	-650	-755	-694	-777	-633	-687	-641
Administrative expenses	-668	-568	-595	-585	-596	-443	-491	-450
Research and development costs	-818	-640	-723	-628	-624	-506	-522	-465
Other operating expenses	-41	16	-2	-23	22	-26	-41	-14
Share of income in associated companies and joint ventures	44	6	6	16	-301	-29	-68	-287
Operating income (EBIT) ¹⁾	1,953	1,187	1,331	1,191	1,420	859	1,065	928
Operating margin, %	9.4	8.8	8.8	8.4	8.8	7.5	8.5	8.1
Financial income	126	145	135	157	334	148	173	127
Financial expenses	-354	-85	-158	-339	-131	-154	-226	-125
Net financial items	-228	60	-23	-182	203	-6	-53	2
Income before taxes	1,725	1,247	1,308	1,009	1,623	853	1,012	930
Taxes	-283	-275	-296	-225	-369	-197	-214	-195
Net income for the period	1,442	972	1,012	784	1,254	656	798	735
of which Parent Company's shareholders' interest	1,435	966	1,000	770	1,223	652	774	732
of which non-controlling interest	7	6	12	14	31	4	24	3
Earnings per share before dilution, SEK ²⁾⁴⁾	2.68	1.81	1.87	1.44	2.30	1.23	1.46	1.38
Earnings per share after dilution, SEK ³⁾⁴⁾	2.66	1.79	1.85	1.43	2.27	1.21	1.44	1.36
1) Of which depreciation/amortisation and write-downs	-781	-701	-630	-628	-612	-565	-553	-556
2) Average number of shares before dilution ⁴⁾	534,848,975	534,029,736	533,736,845	533,415,230	532,640,956	531,993,110	531,188,738	530,319,722
3) Average number of shares after dilution ⁴⁾	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168	537,964,760	537,482,588
4) Comparison periods adjusted for share split 4:1

Quarterly consolidated statement of comprehensive income

MSEK	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Net income for the period	1,442	972	1,012	784	1,254	656	798	735
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	-31	-824	42	1,161	-1,377	161	701	-167
Tax attributable to revaluation of net pension obligations	6	170	-9	-239	283	-33	-145	35
Equity instruments classified as measured at fair value through other comprehensive income	49	-17	1,303	36	-41	-	2	-0
Tax attributable to equity instruments classified as measured at fair value through other comprehensive income	-	-	-1	-7	8	-	-0	0
Total	24	-671	1,335	951	-1,127	128	558	-132
Items that may be reversed in the income statement:
Translation differences	373	-228	-12	353	-515	-47	311	-171
Net gain/loss on cash flow hedges	-2,514	1,401	-212	-1,035	982	23	-152	-46
Tax attributable to net gain/loss on cash flow hedges	530	-286	41	207	-206	-5	32	9
Interest-bearing assets classified as measured at fair value through other comprehensive income	-3	5	-	-	-	-	-	-
Tax attributable to interest-bearing assets classified as measured at fair value through other comprehensive income	-	-1	-	-	-	-	-	-
Total	-1,614	891	-183	-475	261	-29	191	-208
Other comprehensive income/loss for the period	-1,590	220	1,152	476	-866	99	749	-340
Net comprehensive income/loss for the period	-148	1,192	2,164	1,260	388	755	1,547	395
of which Parent Company's shareholders' interest	-174	1,196	2,152	1,234	386	749	1,509	394
of which non-controlling interest	26	-4	12	26	2	6	38	1

Key ratios by quarter

MSEK	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Equity/assets ratio, (%)	35.9	38.9	39.6	39.7	39.1	40.3	40.2	39.6
Return on capital employed, % ³⁾	13.6	13.2	12.8	12.6	11.9	11.4	10.5	9.6
Return on equity, % ³⁾	12.4	11.8	11.2	10.9	11.1	11.2	10.4	9.5
Equity per share, SEK ¹⁾³⁾⁴⁾	66.33	66.64	64.39	62.42	60.11	59.35	57.90	56.39
Free cash flow, MSEK ³⁾	3,267	2,622	-2,507	-2,389	2,559	-2,554	-1,564	3,125
Free cash flow per share after dilution, SEK ²⁾³⁾⁴⁾	6.05	4.86	-4.65	-4.43	4.75	-4.75	-2.91	5.82
1) Number of shares excluding treasury shares and repurchased through equity swap ⁴⁾	535,270,968	534,426,981	533,632,490	533,841,200	532,989,260	532,292,652	531,693,568	530,683,908
2) Average number of shares after dilution ⁴⁾	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168	537,964,760	537,482,588
3) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data

4) Comparison periods adjusted for share split 4:1

Quarterly information per operating segment

MSEK	Q4 2024	Operating margin	Q3 2024	Operating margin	Q2 2024	Operating margin	Q1 2024	Operating margin
Sales
Aeronautics	5,594		3,322		3,726		4,047
Dynamics	5,615		3,056		3,312		2,622
Surveillance	6,504		5,115		5,406		4,989
Kockums	2,617		1,584		2,197		1,966
Combitech	1,298		877		1,082		1,049
Corporate/elimination	-778		-408		-553		-488
Total	20,850		13,546		15,170		14,185
Operating income/loss
Aeronautics	252	4.5%	192	5.8%	257	6.9%	276	6.8%
Dynamics	1,192	21.2%	412	13.5%	594	17.9%	367	14.0%
Surveillance	668	10.3%	502	9.8%	416	7.7%	405	8.1%
Kockums	275	10.5%	57	3.6%	175	8.0%	132	6.7%
Combitech	136	10.5%	91	10.4%	93	8.6%	122	11.6%
Corporate	-570		-67		-204		-111
Total	1,953	9.4%	1,187	8.8%	1,331	8.8%	1,191	8.4%
MSEK	Q4 2023	Operating margin	Q3 2023	Operating margin	Q2 2023	Operating margin	Q1 2023	Operating margin
Sales
Aeronautics	4,152		3,135		3,397		3,070
Dynamics	3,800		2,453		2,417		2,490
Surveillance	5,777		4,149		4,739		3,894
Kockums	2,027		1,386		1,433		1,468
Combitech	1,117		816		1,023		966
Corporate/elimination	-751		-412		-534		-403
Total	16,122		11,527		12,475		11,485
Operating income/loss
Aeronautics	212	5.1%	148	4.7%	187	5.5%	163	5.3%
Dynamics	596	15.7%	382	15.6%	353	14.6%	427	17.1%
Surveillance	705	12.2%	324	7.8%	451	9.5%	554	14.2%
Kockums	192	9.5%	73	5.3%	84	5.9%	83	5.7%
Combitech	111	9.9%	43	5.3%	75	7.3%	111	11.5%
Corporate	-396		-111		-85		-410
Total	1,420	8.8%	859	7.5%	1,065	8.5%	928	8.1%

Multi-year overview

MSEK	2024	2023	2022	2021	2020
Order bookings	96,798	77,811	63,116	43,569	42,328
Order backlog at 31 December	187,223	153,409	127,676	105,177	99,816
Sales	63,751	51,609	42,006	39,154	35,431
Sales in Sweden, %	41	42	42	38	36
Sales in Europe excluding Sweden, %	25	23	19	17	18
Sales in North America, %	10	11	11	11	11
Sales in Latin America, %	7	7	9	15	13
Sales in Rest of the World, %	13	16	19	19	22
Sales in Undisclosed country, %	4	1	-	-	-
Organic sales growth, %	24	23	5	11	1
Operating income (EBIT)	5,662	4,272	3,274	2,888	1,315
Operating margin, %	8.9	8.3	7.8	7.4	3.7
Adjusted operating income	5,662	4,272	3,274	2,888	2,738
Adjusted operating margin, %	8.9	8.3	7.8	7.4	7.4
Depreciation/amortisation and write-downs	2,740	2,286	2,127	1,938	1,518
EBITDA	8,402	6,558	5,401	4,826	2,833
EBITDA margin, %	13.2	12.7	12.9	12.3	8.0
Income after financial items	5,289	4,418	2,819	2,577	1,112
Net income for the year	4,210	3,443	2,283	2,025	1,092
Total assets	99,823	82,759	72,365	65,039	60,568
Equity	35,812	32,362	29,876	23,249	21,644
Free cash flow ¹⁾	993	1,566	1,871	2,737	3,753
⁾ Cash conversion, % ³	44	74	79	113	⁾ 101 ²
⁾ Return on capital employed, % ¹	13.6	11.9	8.8	8.1	4.3
⁾ Return on equity, % ¹	12.4	11.1	8.6	9.0	5.1
Equity/assets ratio, %	35.9	39.1	41.3	35.7	35.7
Earnings per share before dilution, SEK ¹⁾⁴⁾	7.81	6.36	4.15	3.64	2.02
Earnings per share after dilution, SEK ¹⁾⁴⁾	7.74	6.29	4.10	3.61	2.00
Dividend per share, SEK ⁴⁾	2.00⁵⁾	1.60	1.33	1.23	1.18
Equity per share, SEK ¹⁾⁴⁾	66.33	60.11	55.64	43.58	40.58
Number of permanent employees at year-end	24,481	21,479	19,002	18,153	18,073
Number of shares excluding treasury shares 31 December ⁴⁾	535,270,968	532,989,260	529,955,536	527,240,712	528,988,292
Average number of shares before dilution ⁴⁾	534,007,696	531,535,632	528,630,344	528,658,396	532,039,944
Average number of shares after dilution ⁴⁾	539,218,308	537,511,328	534,896,892	533,173,360	535,508,564

1) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data

2) Adjusted for items affecting comparability

3) Cash conversion = operational cash flow / operating income

4) Comparison periods adjusted for share split 4:1

5) Board of Directors' proposal

Parent company

The Parent Company includes units within the business areas Aeronautics, Dynamics, Surveillance as well as one unit within Combitech. Group staff and Group support are also included. A major part of the Group's operations is included in the Parent Company. Separate notes to the Parent Company's financial statements and a separate description of risks and uncertainties for the Parent Company have therefore not been included in this year-end report.

Parent company income statement

MSEK	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Sales	36,291	29,204	11,380	8,931
Cost of goods sold	-30,454	-23,993	-9,982	-7,226
Gross income	5,837	5,211	1,398	1,705
Gross margin, %	16.1	17.8	12.3	19.1
Operating income and expenses	-4,188	-3,909	-1,334	-1,082
Operating income (EBIT)	1,649	1,302	64	623
Operating margin, %	4.5	4.5	0.6	7.0
Financial income and expenses	2,443	2,038	2,270	2,165
Income after financial items	4,092	3,340	2,334	2,788
Appropriations	-824	-617	-824	-617
Income before taxes	3,268	2,723	1,510	2,171
Taxes	-703	-616	-280	-467
Net income for the period	2,565	2,107	1,230	1,705

Parent company balance sheet

MSEK Note	31 Dec 2024	31 Dec 2023
ASSETS
Fixed assets:
Intangible fixed assets	1,234	1,174
Tangible fixed assets	6,410	5,376
Financial fixed assets	10,945	8,555
Total fixed assets	18,589	15,105
Current assets:
Inventories	12,530	10,651
Current receivables	25,375	21,026
Short term investments	8,852	11,283
Liquid assets	903	753
Total current assets	47,660	43,713
TOTAL ASSETS	66,249	58,818
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity	3,348	3,354
Unrestricted equity	15,390	13,756
Total shareholders' equity	18,738	17,110
Untaxed reserves, provisions and liabilities:
Untaxed reserves	4,750	3,926
Provisions	1,984	2,677
Liabilities 8	40,777	35,105
Total untaxed reserves, provisions and liabilities	47,511	41,708
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	66,249	58,818

Liquidity, financing, capital expenditures and number of permanent employees

The Parent Company's net liquidity amounted to SEK 1,895 million as of 31 December 2024 compared to a net liquidity of SEK 2,635 million at 31 December 2023. Investments in tangible fixed assets amounted to SEK 1,712 million (1,142). Investments in intangible assets amounted to SEK 284 million (413). At the end of the period, the Parent Company had 12,250 employees compared to 10,970 at the beginning of the year.

Notes to the financial statements

Note 1 Corporate information

Saab AB (publ.), corporate identity no. 556036-0793, has its registered office in Linköping, Sweden. The company's head office is located at Olof Palmes gata 17, 5tr, SE-111 22 Stockholm, Sweden, telephone number +46-8-463 00 00. Saab's B shares are listed on Nasdaq Stockholm since 1998 and on the large cap list as of October 2006. The company's operations, including subsidiaries, associated companies and joint ventures, are described in the Annual and Sustainability Report 2023.

Note 2 Accounting principles

The consolidated accounts for 2024 have been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. The Parent Company's accounts have been prepared in accordance with the Annual Accounts Act and the Swedish Corporate Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The Group's and the Parent Company's accounting principles are described on pages 112- 114, and concerning significant income statement and balance sheet items, in each note disclosure in the Annual Report 2023.

The year-end report is condensed and does not contain all the information and disclosures in the annual report and should therefore be read together with the Annual Report 2023. All information on pages 1-30 constitutes the year-end report for 2024.

The Group and the Parent Company use the accounting principles and calculation methods as described in the Annual Report 2023. Important estimates and assumptions are disclosed in note 2 in the Annual Report 2023.

Note 3 Segment reporting

Saab is a leading high-technology company, with its main operations in defence, aviation and civil security. Operations are primarily focused on well-defined areas in defence electronics, missile systems, and naval systems as well as military and commercial aviation. Saab is also active in technical services and maintenance. Saab has a strong position in Sweden and the main part of sales is generated in Europe. In addition, Saab has a local presence in Australia, the U.S., South Africa, and in other selected countries. Saab's operating and management structure is divided into four business areas, which are also operating segments: Aeronautics, Dynamics, Surveillance and Kockums. In addition, Combitech, which provides consulting services, is an independent, wholly owned subsidiary of Saab. Corporate comprises Group staff and departments, a minority portfolio containing Saab's ownership interests in companies in various stages of development as well as other operations outside the core operations. The Group's operating segments recognise all lease contracts as expenses on a straight-line basis over the lease term.

Due to the structural change where business unit Underwater Systems has been transferred from business area Dynamics to Kockums as of 1 January 2024, 2023 has been restated. Proforma statements are available at saab.com/investors/financials/financial-data.

Aeronautics

Aeronautics is a world-leading manufacturer of innovative aerial systems and is engaged in development of military aviation technology. It also conducts long-term future studies of manned and unmanned aircraft as preparation for new systems and further development of existing products.

Dynamics

Dynamics offers a market-leading product portfolio comprising ground combat weapons, missile systems, systems for training and simulation, signature management systems for armed forces around the world, and niche products for the civil and defence markets.

Surveillance

Surveillance provides efficient solutions for safety and security, for surveillance and decision support, and for threat detection, location, and protection. The portfolio covers airborne, ground-based and naval radar, electronic warfare and combat systems and C4I solutions.

Kockums

Kockums develops, delivers, and maintains world-class solutions for naval environments. Its portfolio includes submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, autonomous vessels, torpedoes and unmanned underwater vehicles. Kockums' unique competence is in signature management, impact strength and advanced stealth technology.

Combitech

Combitech is an independent subsidiary of Saab and from 1 July 2021 reported as an operating segment outside the business area structure within Saab Group. Combitech is one of the largest technology consulting firms in Sweden, combining technology with cutting-edge expertise to create solutions for its customers' specific needs. Combitech is active in aviation, defence, telecom and other industries as well as the public sector. Combitech offers services in systems development, systems integration, information security, systems security, communications, mechanics, technical product information and logistics.

Order bookings per operating segment

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023
Aeronautics	11,176	18,111	-38	2,416	9,233
Dynamics	50,293	26,709	88	5,159	8,753
Surveillance	28,534	23,887	19	9,062	9,042
Kockums	5,706	7,497	-24	1,070	4,313
Combitech	4,637	4,291	8	1,344	1,122
Corporate/elimination	-3,548	-2,684		-1,495	-962
Total	96,798	77,811	24	17,556	31,501

Order bookings per region

	Full Year	Full Year	Change,	Q4	Q4
MSEK	2024	2023	%	2024	2023
Sweden	23,456	28,306	-17	7,286	11,522
Rest of Europe	35,498	15,631	127	6,758	6,975
North America	7,672	9,226	-17	2,280	3,580
Latin America	237	1,563	-85	-928	1,506
Asia	5,050	6,075	-17	633	3,083
Africa	354	73	385	5	10
Australia, etc.	2,877	3,147	-9	1,546	554
Undisclosed country	21,654	13,790	57	-24	4,271
Total	96,798	77,811	24	17,556	31,501

Order backlog per operating segment

MSEK	31 Dec 2024	31 Dec 2023
Aeronautics	41,501	46,995
Dynamics	78,886	43,103
Surveillance	52,725	45,780
Kockums	14,360	17,031
Combitech	1,927	1,595
Corporate/elimination	-2,176	-1,095
Total	187,223	153,409

Order backlog per region

MSEK	31 Dec 2024	31 Dec 2023
Sweden	52,520	55,314
Rest of Europe	60,540	40,636
North America	13,422	11,510
Latin America	13,565	17,878
Asia	9,550	9,600
Africa	699	535
Australia etc.	4,185	4,638
Undisclosed country	32,742	13,298
Total	187,223	153,409

Sales per operating segment

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023
Aeronautics	16,689	13,754	21	5,594	4,152
Dynamics	14,605	11,160	31	5,615	3,800
Surveillance	22,014	18,559	19	6,504	5,777
Kockums	8,364	6,314	32	2,617	2,027
Combitech	4,306	3,922	10	1,298	1,117
Corporate/elimination	-2,227	-2,100		-778	-751
Total	63,751	51,609	24	20,850	16,122

Sales per region

MSEK	Full Year 2024	% of sales	Full Year 2023	% of sales
Sweden	26,140	41	21,614	42
Rest of Europe	15,829	25	11,913	23
North America	6,148	10	5,607	11
Latin America	4,556	7	3,690	7
Asia	5,329	8	4,759	9
Africa	165	0	109	0
Australia, etc.	3,375	5	3,425	7
Undisclosed country	2,209	4	492	1
Total	63,751	100	51,609	100

Information on large customers

During 2024, Saab had one customer that separately accounted for 10 per cent or more of the Group's sales. The Swedish Defence is a customer of all business areas and total sales amounted to SEK 22,795 million (19,029).

Seasonal variation

A major part of Saab's business is related to large projects where the revenue is recognised by using the percentage of completion method. The costs incurred in these projects are normally lower during the third quarter compared to other quarters. The fourth quarter is also usually affected by a higher number of deliveries, mainly within Dynamics.

Operating income per operating segment

MSEK	Full Year 2024	% of sales	Full Year 2023	% of sales	Q4 2024	Q4 2023
Aeronautics	977	5.9	710	5.2	252	212
Dynamics	2,565	17.6	1,758	15.8	1,192	596
Surveillance	1,991	9.0	2,034	11.0	668	705
Kockums	639	7.6	432	6.8	275	192
Combitech	442	10.3	340	8.7	136	111
Group segments' operating income	6,614	10.5	5,274	10.3	2,523	1,816
Corporate	-952		-1,002		-570	-396
Total	5,662	8.9	4,272	8.3	1,953	1,420

Depreciation/amortisation and write-downs per operating segment

MSEK	Full Year 2024	Full Year 2023	Change, %	Q4 2024	Q4 2023
Aeronautics	253	206	23	74	51
Dynamics	128	98	31	38	27
Surveillance	1,047	899	16	317	249
Kockums	51	37	38	12	10
Combitech	16	10	60	7	3
Corporate	1,245	1,036	20	333	272
Total	2,740	2,286	20	781	612

Operational cash flow per operating segment

MSEK	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Aeronautics	-712	-370	1,395	240
Dynamics	2,798	3,237	1,004	1,802
Surveillance	1,333	1,153	1,439	1,913
Kockums	289	-254	-443	-524
Combitech	532	387	305	332
Corporate	-1,743	-996	-142	-72
Total	2,497	3,157	3,558	3,691

Capital employed per operating segment

MSEK	31 Dec 2024	31 Dec 2023
Aeronautics	12,136	10,403
Dynamics	5,342	4,346
Surveillance	12,142	11,676
Kockums	3,622	3,011
Combitech	1,348	1,101
Corporate/elimination	12,755	13,417
Total	47,345	43,954

Full time equivalents (FTEs) per operating segment

Number at end of the period	31 Dec 2024	31 Dec 2023
Aeronautics	6,023	5,568
Dynamics	4,295	3,557
Surveillance	7,190	6,275
Kockums	2,410	2,140
Combitech	2,378	2,242
Corporate	2,227	1,828
Total	24,523	21,610

Note 4 Distribution of sales

		Aeronautics		Dynamics		Surveillance		Kockums		Combitech		Corporate/ elimination		Group
MSEK	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023	Full Year 2024	Full Year 2023
External sales	16,621	13,664	14,337	10,943	21,267	17,897	8,205	6,188	2,715	2,627	606	290	63,751	51,609
Internal sales	68	90	268	217	747	662	159	126	1,591	1,295	-2,833	-2,390	-	-
Total sales	16,689 -	13,754 -	14,605 -	11,160 -	22,014 -	18,559 -	8,364 -	6,314 -	4,306 -	3,922 -	-2,227 -	-2,100 -	63,751 -	51,609 -
Sales by customer:
Military customers	15,562	12,745	14,109	10,745	19,536	15,992	7,645	5,648	1,494	1,185	296	119	58,642	46,434
Civilian customers	1,059	919	228	198	1,731	1,905	560	540	1,221	1,442	310	171	5,109	5,175
Total external sales	16,621 -	13,664 -	14,337 -	10,943 -	21,267 -	17,897 -	8,205 -	6,188 -	2,715 -	2,627 -	606 -	290 -	63,751 -	51,609 -
Sales by significant source:
Long-term customer contracts	14,563	12,075	5,321	3,814	15,136	13,377	4,951	3,628	1	-	259	126	40,231	33,020
Services	824	1,261	1,686	1,408	3,363	3,115	1,616	1,144	2,454	2,450	176	137	10,119	9,515
Products	1,234	328	7,330	5,721	2,768	1,405	1,638	1,416	260	177	171	27	13,401	9,074
Total external sales	16,621 -	13,664 -	14,337 -	10,943 -	21,267 -	17,897 -	8,205 -	6,188 -	2,715 -	2,627 -	606 -	290 -	63,751 -	51,609 -
Sales by domain:
Air	15,289	12,400	382	305	7,981	7,226	-	-	40	34	45	49	23,737	20,014
Land	174	124	12,728	9,864	4,037	2,833	-	-	1,472	1,192	65	22	18,476	14,035
Naval	8	12	1,148	723	7,357	5,820	8,205	6,188	6	6	130	145	16,854	12,894
Civil Security	37	57	43	32	1,867	1,990	-	-	378	382	70	55	2,395	2,516
Commercial Aeronautics	1,097	1,071	-	-	6	9	-	-	7	8	15	15	1,125	1,103
Other/not distributed	16	-	36	19	19	19	-	-	812	1,005	281	4	1,164	1,047
Total external sales	16,621 -	13,664 -	14,337 -	10,943 -	21,267 -	17,897 -	8,205 -	6,188 -	2,715 -	2,627 -	606 -	290 -	63,751 -	51,609 -
Sales recognition method:
Over time Point in time	13,638 2,983	12,064 1,600	6,314 8,023	4,910 6,033	15,685 5,582	13,515 4,382	7,667 538	5,699 489	2,709 6	2,626 1	277 329	157 133	46,290 17,461	38,971 12,638
Total external sales	16,621	13,664	14,337	10,943	21,267	17,897	8,205	6,188	2,715	2,627	606	290	63,751	51,609

Note 5 Items affecting comparability

Item affecting comparability	Business Area	Line item	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Capital gain from divestment of Combitech Norway	Combitech	Other operating income	18	-	-	-
Remeasurement of contingent consideration payable	Surveillance	Other operating income	112	-	112	-
Write-down of intangible assets related to acquired customer relations	Surveillance	Marketing expenses	-72		-72
Write-down of associated companies	Corporate	Share of income in associated companies and joint ventures	-	-494	-	-210
Capital gain from the divestment of MTM operations	Surveillance	Other operating income	-	270	-	-
Capital gain from divestment of property	Corporate	Other operating income	-	58	-	-
Negative goodwill from a purchase price allocation	Corporate	Other operating income	-	144	-	144
Total			58	-22	40	-66

The items affecting comparability in 2024 and the comparison periods are included in the operating income of the group. Operating income adjusted for items affecting comparability is not reported for the full year 2024, the fourth quarter 2024, full year 2023, or the fourth quarter 2023.

Note 6 Dividend to Parent Company's shareholders

At its meeting on 6 February 2025, the Board of Directors decided to propose to the Annual General Meeting that the Parent company's shareholders receive a dividend of SEK 2.00 per share, totalling MSEK 1,071. The dividend is proposed to be paid out in two equal instalments. Proposed record dates for the dividend are 14 April 2025 and 7 October 2025 with expected payments on 17 April 2025 and 10 October 2025.

Note 7 Intangible fixed assets

MSEK	31 Dec 2024	31 Dec 2023
Goodwill	5,572	5,424
Capitalised development costs	6,052	6,106
Other intangible assets	1,374	1,411
Total	12,998	12,941

Note 8 Net liquidity/debt

MSEK	31 Dec 2024	31 Dec 2023
Assets:
Liquid assets	2,843	2,129
Short-term investments	8,898	11,340
Total liquid investments	11,741	13,469
Short-term interest-bearing receivables	73	73
Long-term interest-bearing receivables	241	333
Long-term receivables attributable to pensions	79	59
Long-term interest-bearing financial investments	1,610	-
Total interest-bearing assets	13,744	13,934
Liabilities:
Lease liabilities	3,032	2,675
Bonds and other debt instruments	7,193	7,270
Liabilities to associated companies
and joint ventures	55	49
Other interest-bearing liabilities	104	48
Provisions for pensions ¹⁾	1,149	1,549
Total interest-bearing liabilities and provisions
for pensions	11,533	11,591
Net liquidity (+) / net debt (-)	2,211	2,343

1) Excluding provisions for special employers' contribution attributable to pensions.

Committed credit lines

MSEK	Facilities		Drawings	Available
Revolving credit facility
(Maturity 2026 SEK 6 billion)	6,000		-	6,000
Overdraft facility (Maturity 2025)		96	-	96
Total	6,096		-	6,096
Parent Company
MSEK			31 Dec 2024 31 Dec 2023
Long-term bonds and other debt instruments		7,073		6,870

Since 2009, Saab has a Medium Term Note (MTN) programme to enable issuance of bonds in the capital market. During 2018 the MTN programme was increased to SEK 10,000 million. A major part of the bonds are issued as Floating Rate Notes (FRN). During 2024, loans with short maturity amounting to SEK 400 million were repurchased. No new bonds were issued. Bonds outstanding within the MTN programme amounted to SEK 6,870 million by the end of the year.

Short-term bonds and other debt instruments 114 400 Total 7,187 7,270

No revolving credit facilities have been utilised during the period.

Note 9 Capital employed

MSEK	31 Dec 2024	31 Dec 2023
Total assets	99,823	82,759
Less non-interest bearing liabilities	52,478	38,805
Capital employed	47,345	43,954

Note 10 Financial instruments

Classification and categorisation of financial assets and liabilities²⁾

Carrying amount	31 Dec 2024	31 Dec 2023
Financial assets:
Valued at amortised cost ⁴⁾:
Accounts receivable, contract assets and other
receivables	27,482	21,144
Liquid assets	2,843	2,129
Long-term receivables	356	456
Valued at fair value through profit and loss ³⁾:
Short-term interest-bearing investments	8,898	11,340
Derivatives for trading	17	81
Financial investments	237	223
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	913	1,575
Equity investments elected to be classified as fair value
through other comprehensive income	2,526	879
Long-term interest-bearing investments	1,610	-
Total financial assets	44,882	37,827
Financial liabilities:
Valued at amortised cost:
Interest-bearing liabilities ¹⁾	10,384	10,043
Other liabilities ⁴⁾	15,977	12,426
Valued at fair value through profit and loss ³⁾:
Contingent consideration payable	19	158
Derivatives for trading	64	8
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	2,380	1,103
Total financial liabilities	28,824	23,738
¹⁾ Fair value	10,617	9,840

^²⁾ Derivatives with positive values are recognised as assets and derivatives with negative values are recognised as liabilities. Derivatives with a legal right of offset amount to SEK 709 million.

^³⁾ The impact of credit risk on these instruments is considered low given the limits in the current investment policy.

^⁴⁾ Carrying amount, in Saab's assessment, essentially corresponds to fair value.

The Group has used the same valuation methods as in the year-end closing of 2023, as described in the Annual Report 2023 on page 155, note 35. As of 31 December 2024, the Group had the following financial assets and liabilities at fair value:

Financial assets at fair value

MSEK	31 Dec 2024	Level 1	Level 2	Level 3
Bonds and interest-bearing securities	10,508	10,508	-	-
Forward exchange contracts	726	-	726	-
Interest rate swaps	181	-	181	-
Electricity derivatives	23	23	-	-
Shares and participations	2,763	-	-	2,763
Total	14,201	10,531	907	2,763

Financial liabilities at fair value

MSEK	31 Dec 2024	Level 1	Level 2	Level 3
Forward exchange contracts	2,399	-	2,399	-
Interest rate swaps	3	-	3	-
Electricity derivatives	42	42	-	-
Contingent consideration payable	19	-	-	19
Total	2,463	42	2,402	19

Movements in the group's Level 3 financial instruments were as follows:

MSEK	Unlisted shares and participations	Contingent consideration payable
Opening balance, 1 January 2024	1,102	158
Acquisitions	286	-
Divestments	-1	-
Payments	-	-4
Gains/losses recognised in the income statement	5	-145
Gains/losses recognised in other comprehensive income	1,371	-
Foreign currency translation	-	10
Closing balance, 31 December 2024	2,763	19

Note 11 Supplemental information on statement of cash flows

Free cash flow

MSEK	Jan-Dec 2024	Jan-Dec 2023	Q4 2024	Q4 2023
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	8,269	6,777	2,878	2,270
Cash flow from changes in working capital:
Contract assets and liabilities	7,218	2,915	4,352	2,423
Inventories	-4,890	-2,691	-321	-89
Other current receivables	-5,464	-1,922	-4,908	-973
Other current liabilities	3,589	2,020	3,392	1,391
Provisions	-1,456	-408	-261	-96
Change in working capital	-1,003	-86	2,254	2,656
Cash flow from operating activities excluding taxes and other financial items	7,266	6,691	5,132	4,926
Investing activities:
Investments in intangible fixed assets	-827	-1,031	-289	-427
Investments in tangible fixed assets	-4,012	-2,507	-1,312	-791
Sales and disposals of tangible fixed assets including biological assets	70	4	27	-17
Cash flow from investing activities ²⁾	-4,769	-3,534	-1,574	-1,235
Operational cash flow	2,497	3,157	3,558	3,691
Taxes and other financial items	-1,224	-815	-304	-248
Investments in and sale of financial assets, associated companies and joint ventures	-290	-896	13	-863
Investments in operations	-15	-262	-	-21
Sale of subsidiaries and other operations	25	382	-	-
Free cash flow	993	1,566	3,267	2,559

1) Including amortisation of lease liabilities

2) Cash flow from investing activities excluding change in short-term investments and other interest-bearing financial assets and excluding sale of and investment in financial assets, operations and subsidiaries. If investments in and sale of financial fixed assets are considered to be of operating nature, the item is included in investing activities.

Free cash flow vs. statement of cash flows

MSEK	Full Year 2024	Full Year 2023	Q4 2024	Q4 2023
Free cash flow	993	1,566	3,267	2,559
Investing activities – interest-bearing:
Short-term investments	2,471	-1,233	-2,668	-2,006
Other financial investments and receivables	-1,604	-372	-483	29
Financing activities:
Repayments of loans	-678	-1,075	-106	-597
Raising of loans and increase in other interest
bearing liabilities	331	1,250	-	1,120
Dividend paid to the Parent Company's shareholders	-856	-703	-429	-
Dividend paid to non-controlling interest	-41	-126	-13	-126
Transactions with non-controlling interest	-	10	-	-
Cash flow for the period	616	-683	-432	979
Liquid assets
MSEK		31 Dec 2024		31 Dec 2023
The following components are included in liquid assets:
Cash and bank balances		2,543		1,629
Bank deposits			300	500
Total according to balance sheet		2,843		2,129
Total according to statement of cash flows		2,843		2,129

Note 12 Business combinations

In the first quarter 2024, Saab completed the acquisition of the remaining shares in UMS Skeldar AG for a minor consideration. The UMS Skeldar AG Group was an associated company in the comparison year. In the fourth quarter 2023, Saab acquired two subsidiaries in Sweden from UMS Skeldar AG for a minor consideration and entered into an agreement to acquire the remaining shares in UMS Skeldar AG.

In the beginning of the third quarter 2024, Combitech divested its Norwegian entity for a minor consideration.

No acquisitions or divestments took place in the fourth quarter 2024.

Note 13 Defined-benefit plans

Saab has defined-benefit pension plans where post-employment compensation is based on a percentage of the recipient's salary. Definedbenefit plans mainly relate to the Swedish operations, where the ITP2 plan accounts for more than 90 per cent of the total obligation.

Pension obligation according to IAS 19

MSEK	31 Dec 2024	31 Dec 2023
Defined-benefit obligation	10,969	10,749
Special employers' contribution	238	323
Less assets under management	9,899	9,259
Total provisions for pensions	1,308	1,813
of which reported as long-term receivable	79	59

Actuarial gains and losses are recognized in other comprehensive income. The actuarial gain related to the Swedish pension plans amounted to SEK 330 million net in 2024 due to the following:

The assumed discount rate increased from 3,25 per cent to 3.75 per cent and the inflation assumption increased from 1.50 per cent to 1.75 per cent. These changes combined resulted in an actuarial gain of SEK 386 million.

Negative experience adjustments resulted in an actuarial loss of SEK 375 million.

The return on assets under management was SEK 541 million which resulted in an actuarial gain of SEK 259 million.

The actuarial gain related to the special employer's contribution amounted to SEK 60 million.

Note 14 Contingent liabilities

No additional significant commitments have arisen during 2024. With regard to the Group's so-called performance guarantees for commitments to customers, the likelihood of an outflow of resources is estimated as remote and, as a result, no value is recognised.

Note 15 Transactions with related parties

In the first quarter 2024, Saab completed the acquisition of the remaining shares in UMS Skeldar AG for a minor consideration.

No other significant transactions with related parties have occurred during 2024. Related parties with which the Group has transactions are described in note 37 in the Annual Report 2023.

Note 16 Definitions

Below are definitions of financial key ratios that are used in the report. For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data.

Capital employed

Total assets less non-interest-bearing liabilities.

Cash conversion

Operational cash flow divided by operating income (EBIT).

Earnings per share

Net income for the period attributable to the Parent Company's shareholders, divided by the average number of shares before and after full dilution.

EBITDA

Operating income before depreciation/amortisation and write-downs.

EBITDA adjusted for items affecting comparability

Operating income before depreciation/amortisation and write-downs adjusted for items classified as affecting comparability.

EBITDA margin

Operating income before depreciation/amortisation and write-downs as a percentage of sales.

EBITDA margin adjusted for items affecting comparability

Operating income before depreciation/amortisation and write-downs adjusted for items affecting comparability as a percentage of adjusted sales.

Effective tax rate

Current and deferred taxes as a percentage of income before tax.

Equity/assets ratio

Equity in relation to total assets.

Equity per share

Equity attributable to the Parent Company's shareholders divided by the number of shares, excluding treasury shares and shares repurchased through equity swaps, at the end of the period.

Free cash flow

Cash flow from operating activities including amortisation of lease liabilities and cash flow from investing activities, excluding acquisitions and divestments of short-term investments and other interest-bearing financial assets.

Free cash flow per share

Free cash flow divided by the average number of shares after dilution.

Full Time Equivalent, FTE

Refers to the number of full-time equivalent employees. Excludes longterm absentees and consultants but includes fixed term employees and part-time employees.

Gross income adjusted for items affecting comparability

Gross income adjusted for items classified as affecting comparability.

Gross margin

Gross income as a percentage of sales.

Gross margin adjusted for items affecting comparability

Gross income adjusted for items affecting comparability as a percentage of adjusted sales.

Items affecting comparability

Items affecting comparability comprise the financial effects from events or transactions with material impact that are relevant to understand the result when comparing periods. Such events or transactions can relate to restructuring programs, costs related to disputes and legal proceedings, macroeconomic developments, impairment charges and gains and losses from divestments of group companies, joint ventures or associated companies.

Net investments

Investments, sales and disposals of intangible and tangible fixed assets.

Net liquidity/net debt

Liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions excluding provisions for pensions attributable to special employers' contribution.

Net liquidity/net debt to EBITDA

End of period Net liquidity/net debt divided by 12-month rolling reported EBITDA.

Number of permanent employees

Headcount of all employed by the company, excluding fixed term employees and consultants.

Operating income

Income before financial items and tax.

Operating income adjusted for items affecting comparability

Operating income (EBIT) adjusted for items classified as affecting comparability.

Operating margin

Operating income (EBIT) as a percentage of sales.

Operating margin adjusted for items affecting comparability

Operating income adjusted for items affecting comparability as a percentage of adjusted sales.

Operational cash flow

Cash flow from operating activities, excluding taxes and other financial items, amortisation of lease liabilities and investments, sales and disposals of intangible and tangible fixed assets.

Order backlog

Total value of orders at the end of the period.

Order bookings

Total value of orders received during the period.

Organic sales growth

Change in sales in percentage adjusted for effects from exchange rate due to the translation of foreign subsidiaries, and structural changes such as acquisitions and divestments of subsidiaries.

Research and development, R&D

Research and development costs are recognised separately in the income statement and comprise the cost of self-financed new and continued product development as well as amortisation and any writedown of capitalised development costs.

Research and development expenditures comprise both expenses incurred as costs excluding amortisation and write-downs, and expenses capitalised as development costs in the statement of financial position.

Total R&D expenses also include the part of Saab's R&D that is conducted in cooperation with customers, which is reported as cost of goods sold.

Return on capital employed

Operating income plus financial income (rolling 12 months) as a percentage of average capital employed.

Return on equity

Net income for the period (rolling 12 months) as a percentage of average equity.

Sales adjusted for items affecting comparability

Sales adjusted for items classified as affecting comparability.

Glossary

AEW&CS	Airborne Early Warning & Control System
C4I	Command, Control, Communications, Computers, and Intelligence
CDP	Global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts
FMV	Swedish Defence Materiel Administration, Sw, "Försvarets materielverk"
FRN	Floating Rate Note
IAS	International Accounting Standards
IFRS	International Financial Reporting Standards
MTN	Medium Term Note, loan facility for issuance of bonds with a duration of 1-15 years
MTM	Maritime Traffic Management
NSPA	NATO Support and Procurement Agency
NLAW	Next Generation Light Anti-Tank Weapon
SBTi	Science Based Targets initiative
UAV	Unmanned Aerial Vehicle

Stockholm 7 February 2025

Saab AB (publ)

The Board of Directors

This year-end report has not been subject to review by the company's auditors

Contacts

Merton Kaplan, Head of Investor Relations +46 734 18 20 71

Media and financial analyst conference:

7 February 2025 at 10.00 (CET)

Live webcast: www.saab.com/investors/webcast/q4-2024

Conference call: Registration for the conference call: www.saab.com/investors/conference-call-q4

The year-end report, presentation material and the webcast will be available on www.saab.com/investors

Calendar

Annual Report Published week 10 2025

Annual General Meeting To be held in Linköping, Sweden on 10 April 2025

Q1 Interim report 2025 Published 25 April 2025

Half-year report 2025 Published 18 July 2025

Q3 Interim report 2025 Published 22 October 2025

Important information

This year-end report may contain forward-looking statements which reflect Saab AB's current view on future events and financial and operational development. Words such as "intend", "expect", "anticipate", "may", "believe", "plan", "estimate" and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.

This information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 7 February 2025 at 07.30 (CET).