SAAB

Earnings Release • Apr 25, 2025

Growing in a dynamic market reality

PRODUCT IMAGE: Ground-Launched Small Diameter Bomb (GLSDB)

January-March 2025

Key Highlights

• Order intake for the first quarter increased to SEK 19,144m (18,495), driven by small and medium-sized orders.
• Sales in the quarter amounted to SEK 15,792m (14,185), which corresponded to an organic sales growth of 11% (24).
• EBITDA increased to SEK 2,140m (1,819) with an EBITDA margin improvement to 13.6% (12.8) in the quarter.
• EBIT increased 22% and amounted to SEK 1,454m (1,191), corresponding to an EBIT margin of 9.2% (8.4).
• Net income increased to SEK 1,277m (784) and earnings per share amounted to SEK 2.35 (1.43), an increase of 64%.
• Operational cash flow improved and amounted to SEK -14m (-1,998), driven by strong cash flow in Dynamics, offset by increased investments and timing of customer payments.
• Net liquidity position at the end of the period was SEK 2,196m compared to SEK 2,211m at year-end 2024.
• The AGM 2025 decided on a dividend of SEK 2.00 (1.60) per share for the financial year 2024.

Order bookings, SEK bn

11 %

Organic sales g rowth

Operating margin

Financial highlights

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	19,144	18,495	4	96,798
Order backlog	189,207	158,369	19	187,223
Sales	15,792	14,185	11	63,751
Gross income	3,719	3,085	21	13,663
Gross margin, %	23.5	21.7		21.4
EBITDA	2,140	1,819	18	8,402
EBITDA margin, %	13.6	12.8		13.2
Operating income (EBIT)	1,454	1,191	22	5,662
Operating margin, %	9.2	8.4		8.9
Net income	1,277	784	63	4,210
of which Parent Company's shareholders' interest	1,268	770	65	4,171
Earnings per share after dilution, SEK ²⁾	2.35	1.43	64	7.74
Return on equity, % ¹⁾	13.0	10.9		12.4
Operational cash flow	-14	-1,998		2,497
Free cash flow	-447	-2,389		993
Free cash flow per share after dilution, SEK ²⁾	-0.83	-4.43		1.84
Average number of shares after dilution ²⁾	539,768,124	539,532,640		539,218,308

¹⁾Return on equity is measured over a rolling 12-month period.

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

CEO comments

Growing in a dynamic market reality

Micael Johansson

President and CEO

Rapid changes in the global geopolitical climate have continued to underscore the urgent need for a strong European defence industry, with increased collective capacity and capabilities. While the transatlantic partnership between the U.S. and Western nations remains important, Europe must ensure its long-term security of supply and fill technology gaps by their own means. The renewed focus on a capable European industrial-defence base has created a new market reality that we are adapting and responding to, even if the transition from political decisions to defence acquisition will take time.

Saab's market position within NATO and Europe has been growing steadily over the last two years. Supported by our technological expertise and broad portfolio, we are addressing vital defence priorities such as air-defence, surveillance and intelligence and ground combat systems. We are committed to contributing to European capability build-up and supporting Ukraine, while simultaneously strengthening our capabilities in the U.S. As exciting as this is for Saab and our future, we remain conscious that ramping up capacity will take time and involves the full supply chain. We are putting significant efforts and investments into enabling high pace deliveries to our customers.

In the quarter, order intake increased year-overyear and amounted to SEK 19.1 billion (18.5), with continued order momentum recorded in business areas Dynamics and Surveillance. Orders were driven by small and medium-sized orders but also included two large orders, the next generation air defence system RBS 70 NG from Latvia of SEK 2.1 billion and an upgrade order for the cruise missile TAURUS from Germany of SEK 1.7 billion. This contributed to the order backlog amounting to SEK 189 billion (158). In the period, Saab signed a strategic collaboration agreement with the Ukrainian defence company Radionix for sensors and defence electronics, aiming to strengthen Ukraine's defence capabilities.

Moreover, as one of the world's most advanced fighter aircraft, the Gripen E/F is generating significant interest globally. We are currently engaged in several campaigns and are proud to have been chosen by Thailand and Colombia, to begin negotiations for the acquisition of fighter aircrafts.

Sales amounted to SEK 15.8 billion (14.2) in the period, our strongest first quarter to date. The organic growth in the quarter was 11% (24) driven by backlog execution and high project activity in all business areas and Combitech. EBIT in the quarter improved 22% to SEK 1.5 billion (1.2) and corresponded to a margin of 9.2% (8.4). Higher sales volumes, project completions and deliveries contributed to the improved margin.

Operational cash flow improved compared to the same period last year and amounted to SEK -14 million (-1,998), driven by strong cash flow in Dynamics, offset by higher level of investments, increased inventory and timing of large customer payments. In the quarter, we took further steps increasing the production capacity in our new facility in Finland, where we have started the serial production of the passive electronic warfare sensor Sirius Compact. This will, already from April, provide higher production rates and faster deliveries as well as the latest technology to our customers.

The capacity expansion in Dynamics is also progressing at a high pace. Our production ramp-up and focus on automation will strengthen our future operational footprint and position the business for long-term growth. As communicated in the fourth quarter report, the planned investments will put pressure on cash flow this year. However, we remain committed to delivering a positive operational cash flow for 2025.

Ongoing geopolitical tensions and uncertainty surrounding tariffs presents challenges and make it difficult to predict the future. Despite these uncertainties, we remain confident in our company's future and reiterate our outlook for 2025. By focusing on customer deliveries and strategically investing in capacity, we will continue to develop the business in line with our growth plans and capture the market opportunities ahead of us.

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)

Operating income:

Operating income growth higher than organic sales growth

Operational cash flow:

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

Orders

January-March 2025

Order intake increased 4 per cent in the quarter, amounting to SEK 19,144 million (18,495). The growth was primarily driven by small orders, which increased by 34 per cent to SEK 6,459 million (4,835). Medium-sized orders increased by 7 per cent and amounted to SEK 7,398 million (6,912), while large orders declined compared to the same period last year and amounted to SEK 5,287 million (6,748). Order intake growth was particularly strong in Dynamics during the quarter.

Key orders during the first quarter included a SEK 2.1 billion contract with Latvia for the RBS 70 short-range air defence system and a SEK 1.7 billion contract for the maintenance and modernisation of the TAURUS cruise missile system for the German Air Force.

The order backlog at the end of the period amounted to SEK 189,207 million, compared to SEK 187,223 million at the beginning of the year, and corresponded to an increase of 1 per cent. In total, 74 per cent of the backlog is attributable to international markets, compared to 72 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

January-March 2025

Sales for the first quarter amounted to SEK 15,792 million (14,185), corresponding to a sales growth of 11.3 per cent, with an organic sales growth of 10.9 per cent. All business areas and Combitech reported sales growth, with strong sales contributions from Dynamics and Aeronautics in the quarter.

Sales related to Sweden increased 27 per cent in the quarter, corresponding to 44 per cent (39) of total sales, whereas sales related to international markets increased 2 per cent. Saab reported sales growth across several regions in the first quarter. 91 per cent (91) of sales were related to the defence business.

Sales growth

Per cent	Jan-Mar 2025	Jan-Mar 2024	Full Year 2024
Organic sales growth	10.9	24.0	23.4
Change from acquisitions and divestments	0.2	-0.2	0.2
Currency translation effects	0.2	-0.3	-0.1
Total sales growth	11.3	23.5	23.5

Sales per region

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %
Sweden	6,970	5,503	27
Rest of Europe	3,596	3,582	0
North America	1,245	1,501	-17
Latin America	1,014	922	10
Asia	1,395	1,345	4
Africa	58	50	16
Australia, etc.	586	919	-36
Undisclosed countries	928	363	156
Total	15,792	14,185	11

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

Order backlog duration:

2025: SEK 48,0 billion 2026: SEK 52,9 billion 2027: SEK 46,2 billion 2028: SEK 22,8 billion After 2028: SEK 19,3 billion

Order by market A total of 77% (75) of the order bookings related to markets outside Sweden during Jan-Mar 2025.

Sales by market A total of 56% (61) of the sales related to markets outside Sweden during Jan-Mar 2025.

Sales Jan-Mar, MSEK

Income

January-March 2025

Gross income increased 21 per cent and amounted to SEK 3,719 million (3,085) following both increased sales volumes and margin improvement. The gross margin increased to 23.5 per cent (21.7) driven by good project execution and project completions in the quarter.

Total depreciation, amortisation and write-downs amounted to SEK 686 million (628). Depreciation of tangible fixed assets and right-of-use assets amounted to SEK 491 million (421). Amortisation and write-downs of intangible fixed assets amounted to SEK 195 million (207), of which amortisation and write-downs of capitalised development expenditures amounted to SEK 151 million (157).

Research and development costs amounted to SEK 801 million (628) following increases across business areas.

EBITDA increased 18 per cent and amounted to SEK 2,140 million (1,819), with an EBITDA margin of 13.6 per cent (12.8). Operating income (EBIT) increased 22 per cent and amounted to SEK 1,454 million (1,191), with a margin of 9.2 per cent (8.4). The EBIT improvement year-over-year was mainly driven by Dynamics, Aeronautics and Kockums.

Financial net

MSEK	Jan-Mar 2025	Jan-Mar 2024
Financial net related to pensions	-10	-12
Net interest items	32	42
Currency gains/losses	198	-172
Lease liability interest	-42	-38
Other financial items	-11	-2
Total	167	-182

The financial net amounted to SEK 167 million (-182) in the first quarter 2025. The increase compared to last year was mainly due to SEK appreciation which had a favourable impact on currency hedges in the tender portfolio. 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.

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.

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 -344 million (-225) during the first quarter 2025, corresponding to an effective tax rate of 21 (22) per cent. The decrease in the effective tax rate was primarily due to a lower proportion of taxable results from foreign operations in the first quarter 2025.

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

Internally funded R&D expenditures, MSEK

Financial position and liquidity

At the end of March 2025, Saab had a net liquidity of SEK 2,196 million, a decrease of SEK 15 million compared to a net liquidity of SEK 2,211 million at year-end 2024. Net debt/EBITDA was -0.25 (-0.26) at the end of the period.

Cash flow from operating activities amounted to SEK 1,354 million (-1,053).

Contract assets increased by SEK 1,340 million and contract liabilities increased by SEK 2,070 million compared to year-end 2024. Inventories increased by SEK 2,170 million during the first quarter with increases mainly in Dynamics and Surveillance.

Net provisions for pensions, excluding special employer's contribution, amounted to SEK 695 million as of 31 March 2025, compared to SEK 1,070 million at year-end 2024. The effect on net debt of SEK 375 million was mainly a result of actuarial gains related to increased discount rate. For further information on Saab's defined-benefit pension plan, see note 13.

Tangible fixed assets amounted to SEK 13,244 million compared to 12,484 at the end of 2024. Right-of-use assets recognised in the balance sheet amounted to SEK 2,713 million compared to 2,881 million at the end of 2024.

Financial investments decreased with SEK 175 million in the first quarter and amounted to SEK 2,588 million, compared to SEK 2,763 million at year-end 2024. The decrease was mainly related to revaluation of shares in Helsing GmbH. Revaluation of the investment in Helsing GmbH is recognised in other comprehensive income.

Net investments during the quarter amounted to SEK 1,556 million (1,139). Investments in tangible fixed assets amounted to SEK 1,248 million (998).

Investments in intangible fixed assets amounted to SEK 311 million (162), of which SEK 170 million (116) 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 141 million (46) was related to other intangible fixed assets.

As of 31 March 2025, long- and short-term interest-bearing investments and liquid assets amounted to SEK 12,748 million, a decrease of SEK 603 million compared to year-end 2024. In addition, the Group had unutilised revolving credit facilities amounting to SEK 6,000 million.

Capital employed increased by SEK 2,064 million, from December 31, 2024, to SEK 49,409 million at the end of the first quarter. The return on capital employed was 14.2 per cent (12.6) and the return on equity was 13.0 per cent (10.9), both measured over a rolling 12-month period.

Key indicators of financial position and liquidity

MSEK	31 Mar 2025	31 Dec 2024	Change	31 Mar 2024
Net liquidity / debt ²⁾	2,196	2,211	-15	836
Intangible fixed assets	12,938	12,998	-60	13,049
Goodwill	5,429	5,572	-143	5,517
Capitalised development costs	6,053	6,052	1	6,108
Other intangible fixed assets	1,456	1,374	82	1,424
Tangible fixed assets, etc ³⁾	13,655	12,898	757	10,720
Right of use assets ⁴⁾	2,713	2,881	-168	2,641
Inventories	23,995	21,825	2,170	18,484
Accounts receivable	8,215	11,334	-3,119	7,058
Contract assets	15,663	14,323	1,340	14,379
Contract liabilities	27,745	25,675	2,070	16,772
Equity/assets ratio, %	37.8	35.9		39.7
Return on equity, %	13.0	12.4		10.9
Return on capital employed, %	14.2	12.8		12.6
Equity per share, SEK ¹⁾⁵⁾	71.23	66.33	4.90	62.42
1) Number of shares excluding treasury shares and repurchased through equity swap ⁵⁾	536,051,253	535,270,968		533,841,200

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.

Change in net debt Jan-Mar 2025

	MSEK
Net liquidity (+) / net debt (-), 31 Dec 2024 ¹⁾	2,211
Cash flow from operating activities	1,354
Change in net pension obligation	375
Net investments	-1,556
Sale of and investments in financial assets, associates and joint ventures	-2
Write-downs of other long-term interest-bearing receivables	-36
Change through equity swap agreement	-1
Dividend to and transactions with non-controlling interest	-23
Additional lease liabilites	-74
Other items, currency impact and unrealised results from financial
investments	-52
Net liquidity (+) / net debt (-), 31 March 2025 ¹⁾	2,196
¹⁾ Net liquidity (+) / net debt (-) excluding net provisions for pensions, lease liabilities and interest-bearing receivables, 31 March 2025	5,397

Cash flow

January-March 2025

Operational cash flow in the first quarter 2025 amounted to SEK -14 million (-1,998). The improvement compared to the same quarter last year was mainly a result of large customer payments, partly offset by increased investments and higher inventory.

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 period amounted to SEK -447 million (-2,389) as a result of the increased operational cash flow. For more detailed information on cash flow, see note 11.

MSEK	Jan-Mar 2025	Jan-Mar 2024
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	2,108	1,648
Change in working capital	-566	-2,507
Cash flow from operating activities excluding taxes and other financial items	1,542	-859
Cash flow from investing activities ²⁾	-1,556	-1,139
Operational cash flow	-14	-1,998
Taxes and other financial items	-431	-374
Investments in and sale of financial assets and operations	-2	-17
Free cash flow	-447	-2,389

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.

Cash flow from operating activities excluding taxes and other financial items, MSEK

Free cash flow, MSEK

Business Area

Aeronautics

Business Units

Advanced Programs, Aerospace Systems, Aviation Services, Gripen.

Market highlights

Customer interest for the Gripen E/F fighter continues with several ongoing campaigns. Order bookings in the first quarter decreased compared to the same period last year, which included the Gripen C/D contract for Hungary and several medium-sized orders.

Sales and operating income

Sales increased in the quarter, driven by good pace in project activity across business units. The EBIT increased 33% and the margin amounted to 8.1%, following positive effects from currency in the quarter.

Cash flow

The weak cash flow was mainly a result of investments and capital build-up related to Gripen programmes.

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	2,805	5,142	-45	11,176
Order backlog	39,753	48,103	-17	41,501
Sales	4,525	4,047	12	16,689
EBITDA	438	332	32	1,230
EBITDA margin, %	9.7	8.2		7.4
Operating income (EBIT)	367	276	33	977
Operating margin, %	8.1	6.8		5.9
Operational cash flow	-2,270	-824		-712

Market Sales in markets outside Sweden amounted to 36% (50) during Jan-Mar 2025.

Business Area Dynamics

Business Units

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

Market

Market highlights

Order momentum continued in the first quarter driven by several orders across business units, including a large order for the RBS 70 NG from Latvia, Live Training equipment for the U.S. Marine Corps, TAURUS missile order from Germany and an order related to the shortrange air missile system IRIS-T.

Sales and operating income

Sales increased 20% in the quarter and was driven by high project activity and deliveries. The EBIT margin improved to 14.7%, from 14.0% in the same period last year, mainly due to scale effects on higher volumes.

Cash flow

Cash flow in the quarter amounted to SEK 5.3 billion, driven by large customer payments.

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	8,108	5,591	45	50,293
Order backlog	83,511	46,195	81	78,886
Sales	3,143	2,622	20	14,605
EBITDA	499	395	26	2,693
EBITDA margin, %	15.9	15.1		18.4
Operating income (EBIT)	461	367	26	2,565
Operating margin, %	14.7	14.0		17.6
Operational cash flow	5,328	-996		2,798

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 bookings in the first quarter increased compared to the same period last year mainly driven by orders for radar systems within the Arthur and Giraffe family as well as sight and fire control systems.

Sales and operating income

Surveillance sales grew in the quarter driven by good activity level across the business, partly offset by continued unfavourable impact from the commercial business. The EBIT and margin improved as a result of favourable project mix.

Cash flow

Cash flow decreased in the quarter mainly due to the timing in customer payments as well as increased inventory for planned future deliveries.

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	7,081	5,929	19	28,534
Order backlog	53,564	47,167	14	52,725
Sales	5,274	4,989	6	22,014
EBITDA	657	633	4	3,038
EBITDA margin, %	12.5	12.7		13.8
Operating income (EBIT)	438	405	8	1,991
Operating margin, %	8.3	8.1		9.0
Operational cash flow	-1,545	-436		1,333

Market Sales in markets outside Sweden amounted to 32%

*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

Customer activity remained high with several small-sized orders received in the quarter. However, order intake decreased year-overyear due to a stronger comparison last year.

Sales and operating income

Sales increased 15% in the quarter, driven by good project execution in key programmes. The strong EBIT improvement in the quarter was a result of successful project completions and deliveries to international customers.

Cash flow

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

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	960	1,352	-29	5,706
Order backlog	13,002	16,447	-21	14,360
Sales	2,253	1,966	15	8,364
EBITDA	219	143	53	690
EBITDA margin, %	9.7	7.3		8.2
Operating income (EBIT)	202	132	53	639
Operating margin, %	9.0	6.7		7.6
Operational cash flow	-647	920		289

Other operating segment Combitech

Market highlights

Customer activity continued to be strong with several new contracts and agreements signed within the security and defence segments. Market interest for autonomy, AI and security solutions remains particularly high.

Sales and operating income

Sales increased in the quarter driven primarily by a higher number of consultants in projects compared to the same period last year. The EBIT was slightly lower in the quarter due to calendar effects and project mix.

Cash flow

Cash flow was positive in the quarter but lower than last year due to timing of customer payments.

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Full Year 2024
Order bookings	1,345	1,083	24	4,637
Order backlog	2,086	1,631	28	1,927
Sales	1,182	1,049	13	4,306
EBITDA	120	125	-4	458
EBITDA margin, %	10.2	11.9		10.6
Operating income (EBIT)	118	122	-3	442
Operating margin, %	10.0	11.6		10.3
Operational cash flow	105	135		532

*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 -132 million (-111) in the first quarter 2025 following increases in operating expenses. Operational cash flow attributable to Corporate amounted to SEK -985 million (-797) during the first quarter 2025. The decrease was mainly driven by higher investments related to IT and security.

Acquisitions and divestments 2025

No acquisitions or divestments took place in the first quarter 2025.

Share repurchase

Saab held 6,139,455 treasury shares as of 31 March 2025, compared to 6,915,618 at year-end 2024. The Annual General Meeting in 2025 decided that Saab may enter into an equity swap agreement with a third party on terms and conditions in accordance with market practice, in order to hedge the expected financial exposure of LTI 2026, whereby the third party in its own name may acquire and transfer shares of series B in Saab to employees who participate in LTI 2026. The Annual General Meeting decided not to approve the Board's proposal on authorisation for the Board of Directors to resolve on acquisitions of shares and resolution on transfers of own shares to the participants in LTI 2026. The Annual General Meeting also decided to authorise the Board, before the next Annual General Meeting, to decide on the acquisition of shares of series B 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 an increased shareholder value as well as to enable a continued use of repurchased shares in connection with potential acquisitions of companies and, where applicable, for the company's share-related incentive programmes.

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 research institutions. Projects generally entail significant investments, long periods of time and large share of 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 both in Sweden and in other countries including investments in capacity scaling such as production ramp-ups and new factories as well as with a high rate of recruitment, which entails a higher level of business risk. This also implies a greater uncertainty in sales growth, income and cash flow. 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 and tariffs, 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. For certain sub-systems, Saab is also dependent on deliveries from one or a few suppliers. Saab works actively to ensure a robust supply chain by supplier commitments to Saab's growth plan and to manage the supply chain risks through mitigating actions such as contract management, second sourcing, in- and outsourcing, 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 2024, pages 45-50.

Owners

Largest owners, 31 March 2025:

	% of capital	% of votes
Investor AB	30.2	40.1
Wallenberg
Investments	8.7	7.6
BlackRock	2.6	2.3
Vanguard	2.4	2.1
Swedbank Robur
Fonder	2.0	1.7
Norges Bank
Investment
Management	1.8	1.6
VanEck	1.2	1.0
Avanza Pension	1.0	0.8
Avanza Fonder	0.9	0.8
Alliance Bernstein	0.9	0.8

Source: Modular Finance

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

Personnel

	31 Mar 2025	31 Dec 2024
Number of
permanent
employees	25,283	24,481
FTEs	25,369	24,523

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.

Sustainability

Occupational Health and Safety Injury frequency rate 2025 Target: Reduce work-related accidents by decreased TRIFR¹ compared to base year 2024 3.57 4.38 3.47 2022 2023 2024 Jan-Mar 2025 TRIFR

Diversity and Inclusion

2025 Target: 25% women employees & 30% women managers

Resilient and safe societies

Green and Social Transition

-18% -24% -26% -31% -31%

2021 2022 2023 2024 Rolling

Scope 1 & 2 (tCO₂-eq) Change from base year Near Term Target SBTI

12 Months

0% -4% -8% -13% -17% -21%

GHG emissions²

0%

Base Year 2020

0 10,000 20,000 30,000 40,000

Business and Human Rights

Saab is the first global defense company to implement a Responsible Sales process for downstream human rights due diligence in accordance with the UN Guiding Principles for Business and Human Rights. Within this process, Saab continuously conducts in-depth due diligence on business opportunities in countries flagged as high risk in Saab's CRM system.

Green and Social Transition

Climate Impact

During the quarter, Saab reduced its Scope 1 & 2 CO2-eq emissions by three per cent compared to the first quarter 2024. The result was driven by reduced emissions from test flights (scope 1) and reduced consumption of district heating (scope 2). The overall reduction progress since 2020 remains at approximately 31 per cent.

Furthermore during the quarter, Saab continued to address its scope 3 emissions by transitioning from diesel to HVO fuel for the Company's Prime Transport Partners. In February, Saab received the score of 'A' in the CDP Climate Change Disclosure, which has earned Saab a place on the A-list for a second year.

Occupational Health and Safety

2030 Goal: 42% reduction of Scope 1 & 2 CO2-eq³ from base year 2020

During the quarter, the Total Recordable Injury Frequency Rate (TRIFR) decreased by 21 per cent compared to the base year 2024. The decrease is due to ongoing efforts in improving workplace safety, focusing on incident prevention, strengthening the reporting culture, and refining the investigation process.

Innovation and Partnerships

Diversity and Inclusion

During the quarter the share of women employees remained at 26 per cent and the share of women managers remained at 28 per cent from the end of 2024.

During the quarter, Saab and partners of the CleanSky2 Project, which is part of the European Green Deal and co-funded by the EU, were awarded the JEC Innovation Award for innovation within composites that contributes to reducing aircraft CO² emissions. Additionally, Saab Surveillance, together with two industrial companies, partnered with

Industrial Cooperation and Partnerships

Universeum Science Center in Gothenburg to drive the Innovation Challenge to encourage an interest in STEM ⁴ topics for students and secure the future workforce, leaders and competencies.

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

² SBTi Near Term Target relates to the planned reduction trajectory to meet the 2030 goal

³ Carbon dioxide equivalent

⁴ Science, technology, engineering, and mathematics

Significant events

January-March 2025

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, left 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. Eva Karlsson was appointed Senior Vice President, Chief Operating Officer (COO) and became a member of Saab's Group Management team. As a consequence, Saab's Charlotta Björklund, then Senior Vice President, Operational Excellence, left the Group Management team as of 1 March 2025 and subsequently reported to the COO. Moreover, the scope of the Group Strategy function was reduced and became more focused on the common strategic areas of Saab. Therefore, Saab's Christian Hedelin, Senior Vice President and Chief Strategy Officer, is no longer a member of the Group Management team and directly reports to Anders Carp, Deputy CEO.

On 6 February, Saab announced an order from a NATO country for its air command and control system 9AIR C4I. The contract value is approx. SEK 250 million with deliveries starting in 2025. The order was booked in Q4 2024.

On 11 February, Saab announced an order from BAE Systems Hägglunds for the sighting and fire control system UTAAS (Universal Tank and Anti-Aircraft System) for Combat Vehicle 90. The order value is approx. SEK 700 million.

On 3 March, Saab received an order for maintenance and modernisation of the cruise missile TAURUS KEPD 350. The order value is SEK 1.7 billion and the contract period is 2025-2035.

On 12 March, Saab announced that it had signed a Memorandum of Understanding (MoU) with the Ukrainian defence company Radionix regarding the intention to form a strategic collaboration relating to sensors and defence electronics.

On 31 March, Saab signed a framework agreement with the Latvian Ministry of Defence for the short-range ground-based air defence system RBS 70 NG and received an order within the agreement. The order value is SEK 2.1 billion and deliveries will take place 2026-2030.

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 3 April, announced an order for the Universal Tank and Anti-Aircraft System (UTAAS) sight- and fire control system for Combat Vehicle 90 (CV90) from BAE Systems Hägglunds. The order amounts to SEK 880 million and was booked in the first quarter 2025.

On 10 April, Saab held its Annual General Meeting in Linköping, Sweden and the AGM decided on a dividend of SEK 2.00 per share to be paid out in two equal instalments. The first instalment of the dividend (SEK 1.00 per share) was paid out on 17 April 2025. The second instalment (SEK 1.00 per share) will be paid out on 10 October 2025. Read more on www.saab.com/agm.

TAURUS KEPD 350 upgrade order

Saab has received an order from TAURUS Systems for the maintenance and modernisation of the TAURUS KEPD 350 cruise missile. The SEK 1.7 billion contract runs from 2025 to 2035 and includes system upgrades and long-term support for the German Air Force. TAURUS Systems is a joint venture between MBDA Germany and Saab, with the initial order placed by Germany's defence procurement office.

TAURUS KEPD 350 is an air-launched cruise missile with a range of more than 500 km used to defeat static ground-based targets.

Saab and Radionix sign MoU

Saab and the Ukrainian defence company Radionix have signed a Memorandum of Understanding (MoU) regarding a strategic collaboration in sensors and defence electronics, aimed at strengthening Ukraine's defence capabilities.

Radionix is a key part of Ukraine's defence industrial base, with a strong technology offer and track record. The MoU highlights Saab's continued commitment to supporting Ukraine's defence capability and industry.

Consolidated income statement

MSEK	Note	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 Months	Full Year 2024
Sales	4	15,792	14,185	65,358	63,751
Cost of goods sold		-12,073	-11,100	-51,061	-50,088
Gross income		3,719	3,085	14,297	13,663
Gross margin, %		23.5	21.7	21.9	21.4
Other operating income	5	41	20	322	301
Marketing expenses	5	-754	-694	-3,159	-3,099
Administrative expenses		-705	-585	-2,536	-2,416
Research and development costs		-801	-628	-2,982	-2,809
Other operating expenses		-59	-23	-86	-50
Share of income in associated companies and joint ventures	5	13	16	69	72
Operating income (EBIT) ¹⁾	3	1,454	1,191	5,925	5,662
Operating margin, %		9.2	8.4	9.1	8.9
Financial income		325	157	731	563
Financial expenses		-158	-339	-755	-936
Net financial items		167	-182	-24	-373
Income before taxes		1,621	1,009	5,901	5,289
Taxes		-344	-225	-1,198	-1,079
Net income for the period		1,277	784	4,703	4,210
of which Parent Company's shareholders' interest		1,268	770	4,669	4,171
of which non-controlling interest		9	14	34	39
Earnings per share before dilution, SEK ²⁾⁴⁾		2.37	1.44	8.73	7.81
Earnings per share after dilution, SEK ³⁾⁴⁾		2.35	1.43	8.65	7.74
1) Of which depreciation/amortisation and write-downs		-686	-628	-2,798	-2,740
2) Average number of shares before dilution ⁴⁾		535,661,111	533,415,232	534,569,167	534,007,696
3) Average number of shares after dilution ⁴⁾		539,768,124	539,532,640	539,568,183	539,218,308
4) Comparison periods adjusted for share split 4:1

Consolidated statement of comprehensive income

MSEK	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 Months	Full Year 2024
Net income for the period	1,277	784	4,703	4,210
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	426	1,161	-387	348
Tax attributable to revaluation of net pension obligations	-88	-239	79	-72
Equity instruments classified as measured at fair value through other comprehensive
income	-147	36	1,188	1,371
Tax attributable to equity instruments classified as measured at fair value through other
comprehensive income	-	-7	-1	-8
Total	191	951	879	1,639
Items that may be reversed in the income statement:
Translation differences	-634	353	-501	486
Cash flow hedges	2,231	-1,035	906	-2,360
Tax attributable to cash flow hedges	-458	207	-173	492
Interest-bearing investments classified as measured at fair value through other
comprehensive income	7	-	9	2
Tax attributable to interest-bearing investments classified as measured at fair value
through other comprehensive income	-1	-	-2	-1
Total	1,145	-475	239	-1,381
Other comprehensive income/loss for the period	1,336	476	1,118	258
Net comprehensive income/loss for the period	2,613	1,260	5,821	4,468
of which Parent Company's shareholders' interest	2,619	1,234	5,793	4,408
of which non-controlling interest	-6	26	28	60

Consolidated statement of financial position

MSEK Note	31 Mar 2025	31 Dec 2024	31 Mar 2024
ASSETS
Fixed assets:
Intangible fixed assets 7	12,938	12,998	13,049
Tangible fixed assets	13,244	12,484	10,315
Biological assets	411	414	405
Right of use assets	2,713	2,881	2,641
Shares in associated companies and joint ventures	315	315	271
Financial investments	2,588	2,763	1,143
Long-term interest-bearing investments	2,543	1,610	-
Long-term receivables	444	435	458
Deferred tax assets	477	521	526
Total fixed assets	35,673	34,421	28,808
Current assets:
Inventories	23,995	21,825	18,484
Derivatives	1,828	930	966
Tax receivables	245	250	61
Accounts receivable	8,215	11,334	7,058
Contract assets	15,663	14,323	14,379
Other receivables	3,465	3,259	2,353
Prepaid expenses and accrued income	2,388	1,740	1,873
Short-term interest-bearing investments	6,861	8,898	8,464
Liquid assets 11	3,344	2,843	2,336
Total current assets	66,004	65,402	55,974
TOTAL ASSETS	101,677	99,823	84,782
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest	38,185	35,503	33,322
Non-controlling interest	280	309	353
Total shareholders' equity	38,465	35,812	33,675
Long-term liabilities:
Long-term lease liabilities	2,121	2,337	2,133
Other long-term interest-bearing liabilities 8	6,125	7,128	6,923
Other liabilities	130	136	272
Provisions for pensions 13	919	1,387	653
Other provisions	2,198	2,238	2,828
Deferred tax liabilities	1,595	1,070	1,514
Total long-term liabilities	13,088	14,296	14,323
Current liabilities:
Short-term lease liabilities	699	695	640
Other short-term interest-bearing liabilities 8	1,225	224	113
Contract liabilities	27,745	25,675	16,772
Accounts payable	6,471	8,215	5,668
Derivatives	968	2,444	1,570
Tax liabilities	345	536	177
Other liabilities	1,125	1,190	1,208
Accrued expenses and deferred income	10,502	9,700	9,707
Provisions	1,044	1,036	929
Total current liabilities	50,124	49,715	36,784
Total liabilities	63,212	64,011	51,107
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	101,677	99,823	84,782

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 2024	2,174	6,099	813	785	22,164	32,035	327	32,362
Net comprehensive income/loss for the period January-March 2024			-828	341	1,721	1,234	26	1,260
Transactions with shareholders:
Share matching plan					53	53		53
Closing balance, 31 March 2024
	2,174	6,099	-15	1,126	23,938	33,322	353	33,675
Net comprehensive income/loss for the period April-December 2024			-1,040	124	4,090	3,174	34	3,208
Transactions with shareholders:
Repurchase of shares through equity swap					-318	-318		-318
Share matching plan					182	182		182
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
Opening balance, 1 January 2025	2,174	6,099	-1,055	1,250	27,035	35,503	309	35,812
Net comprehensive income/loss for the period January-March 2025			1,773	-619	1,465	2,619	-6	2,613
Transactions with shareholders:
Share matching plan					63	63		63
Dividend					-	-	-23	-23
Closing balance, 31 March 2025	2,174	6,099	718	631	28,563	38,185	280	38,465

Consolidated statement of cash flows

MSEK Note	Jan-Mar 2025	Jan-Mar 2024	Full Year 2024
Operating activities:
Income after financial items	1,621	1,009	5,289
Adjustments for items not affecting cash flows	832	725	3,369
Dividend from associated companies and joint ventures	-	-	22
Income tax paid	-533	-280	-945
Cash flow from operating activities before changes in working capital	1,920	1,454	7,735
Cash flow from changes in working capital:
Contract assets and liabilities	631	-1,771	7,218
Inventories	-2,306	-1,595	-4,890
Other current receivables	1,949	-278	-5,464
Other current liabilities	-723	1,284	3,589
Provisions	-117	-147	-1,456
Cash flow from operating activities	1,354	-1,053	6,732
Investing activities:
Capitalised development costs	-170	-116	-530
Investments in other intangible fixed assets	-141	-46	-297
Investments in tangible fixed assets	-1,248	-998	-4,012
Sales and disposals of tangible fixed assets including biological assets	3	21	70
Investments in and sale of short-term investments	2,039	2,886	2,471
Investments in financial assets, associated companies and joint ventures	-967	-2	-1,894
Investments in operations	-	-15	-15
Sale of subsidiaries and other operations	-	-	25
Cash flow from investing activities	-484	1,730	-4,182
Financing activities:
Repayments of loans	-	-341	-678
Amortisation of lease liabilities	-243	-180	-690
Raising of loans and increase in other interest-bearing liabilities	1	-	331
Dividend paid to Parent Company's shareholders	-	-	-856
Dividend paid to non-controlling interest	-23	-	-41
Cash flow from financing activities	-265	-521	-1,934
Cash flow for the period	605	156	616
Liquid assets at the beginning of the period	2,843	2,129	2,129
Exchange rate difference in liquid assets	-104	51	98
Liquid assets at end of period 11	3,344	2,336	2,843

Quarterly consolidated income statement

MSEK	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Sales	15,792	20,850	13,546	15,170	14,185	16,122	11,527	12,475
Cost of goods sold	-12,073	-16,564	-10,634	-11,790	-11,100	-12,605	-9,046	-9,715
Gross income	3,719	4,286	2,912	3,380	3,085	3,517	2,481	2,760
Gross margin, %	23.5	20.6	21.5	22.3	21.7	21.8	21.5	22.1
Other operating income	41	150	111	20	20	179	15	114
Marketing expenses	-754	-1,000	-650	-755	-694	-777	-633	-687
Administrative expenses	-705	-668	-568	-595	-585	-596	-443	-491
Research and development costs	-801	-818	-640	-723	-628	-624	-506	-522
Other operating expenses	-59	-41	16	-2	-23	22	-26	-41
Share of income in associated companies and joint ventures	13	44	6	6	16	-301	-29	-68
Operating income (EBIT) ¹⁾	1,454	1,953	1,187	1,331	1,191	1,420	859	1,065
Operating margin, %	9.2	9.4	8.8	8.8	8.4	8.8	7.5	8.5
Financial income	325	126	145	135	157	334	148	173
Financial expenses	-158	-354	-85	-158	-339	-131	-154	-226
Net financial items	167	-228	60	-23	-182	203	-6	-53
Income before taxes	1,621	1,724	1,247	1,308	1,009	1,623	853	1,012
Taxes	-344	-283	-275	-296	-225	-369	-197	-214
Net income for the period	1,277	1,442	972	1,012	784	1,254	656	798
of which Parent Company's shareholders' interest	1,268	1,435	966	1,000	770	1,223	652	774
of which non-controlling interest	9	7	6	12	14	31	4	24
Earnings per share before dilution, SEK ²⁾⁴⁾	2.37	2.68	1.81	1.87	1.44	2.30	1.23	1.46
Earnings per share after dilution, SEK ³⁾⁴⁾	2.35	2.66	1.79	1.85	1.43	2.27	1.21	1.44
1) Of which depreciation/amortisation and write-downs	-686	-781	-701	-630	-628	-612	-565	-553
2) Average number of shares before dilution ⁴⁾	535,661,111	534,848,975	534,029,736	533,736,845	533,415,230	532,640,956	531,993,110	531,188,738
3) Average number of shares after dilution ⁴⁾	539,768,124	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168	537,964,760
4) Comparison periods adjusted for share split 4:1

Quarterly consolidated statement of comprehensive income

MSEK	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Net income for the period	1,277	1,442	972	1,012	784	1,254	656	798
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	426	-31	-824	42	1,161	-1,377	161	701
Tax attributable to revaluation of net pension obligations	-88	6	170	-9	-239	283	-33	-145
Equity instruments classified as measured at fair value through other comprehensive income	-147	49	-17	1,303	36	-41	-	2
Tax attributable to equity instruments classified as measured at fair value through other comprehensive income	-	-	-0	-1	-7	8	-	-0
Total	191	24	-671	1,335	951	-1,127	128	558
Items that may be reversed in the income statement:
Translation differences	-634	373	-228	-12	353	-515	-47	311
Net gain/loss on cash flow hedges	2,231	-2,514	1,401	-212	-1,035	982	23	-152
Tax attributable to net gain/loss on cash flow hedges	-458	530	-286	41	207	-206	-5	32
Interest-bearing investments classified as measured at fair value
through other comprehensive income	7	-3	5	-	-	-	-	-
Tax attributable to interest-bearing investmentss classified as measured at fair value through other comprehensive income	-1	-	-1	-	-	-	-	-
Total	1,145	-1,614	891	-183	-475	261	-29	191
Other comprehensive income/loss for the period	1,336	-1,590	220	1,152	476	-866	99	749
Net comprehensive income/loss for the period	2,613	-148	1,192	2,164	1,260	388	755	1,547
of which Parent Company's shareholders' interest	2,619	-174	1,196	2,152	1,234	386	749	1,509
of which non-controlling interest	-6	26	-4	12	26	2	6	38

Key ratios by quarter

MSEK	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Equity/assets ratio, (%)	37.8	35.9	38.9	39.6	39.7	39.1	40.3	40.2
Return on capital employed, % ³⁾	14.2	13.6	13.2	12.8	12.6	11.9	11.4	10.5
Return on equity, % ³⁾	13.0	12.4	11.8	11.2	10.9	11.1	11.2	10.4
Equity per share, SEK ¹⁾³⁾⁴⁾	71.23	66.33	66.64	64.39	62.42	60.11	59.35	57.90
Free cash flow, MSEK ³⁾	-447	3,267	2,622	-2,507	-2,389	2,559	-2,554	-1,564
Free cash flow per share after dilution, SEK ²⁾³⁾⁴⁾	-0.83	6.05	4.86	-4.65	-4.43	4.75	-4.75	-2.91
1) Number of shares excluding treasury shares and repurchased through equity swap ⁴⁾	536,051,253	535,270,968	534,426,981	533,632,490	533,841,200	532,989,260	532,292,652	531,693,568
2) Average number of shares after dilution ⁴⁾	539,768,124	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168	537,964,760
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	Q1 2025	Operating margin	Q4 2024	Operating margin	Q3 2024	Operating margin	Q2 2024	Operating margin
Sales
Aeronautics	4,525		5,594		3,322		3,726
Dynamics	3,143		5,615		3,056		3,312
Surveillance	5,274		6,504		5,115		5,406
Kockums	2,253		2,617		1,584		2,197
Combitech	1,182		1,298		877		1,082
Corporate/elimination	-585		-778		-408		-553
Total	15,792		20,850		13,546		15,170
Operating income/loss
Aeronautics	367	8.1%	252	4.5%	192	5.8%	257	6.9%
Dynamics	461	14.7%	1,192	21.2%	412	13.5%	594	17.9%
Surveillance	438	8.3%	668	10.3%	502	9.8%	416	7.7%
Kockums	202	9.0%	275	10.5%	57	3.6%	175	8.0%
Combitech	118	10.0%	136	10.5%	91	10.4%	93	8.6%
Corporate	-132		-570		-67		-204
Total	1,454	9.2%	1,953	9.4%	1,187	8.8%	1,331	8.8%
MSEK	Q1 2024	Operating margin	Q4 2023	Operating margin	Q3 2023	Operating margin	Q2 2023	Operating margin
Sales
Aeronautics	4,047		4,152		3,135		3,397
Dynamics	2,622		3,800		2,453		2,417
Surveillance	4,989		5,777		4,149		4,739
Kockums	1,966		2,027		1,386		1,433
Combitech	1,049		1,117		816		1,023
Corporate/elimination	-488		-751		-412		-534
Total	14,185		16,122		11,527		12,475
Operating income/loss
Aeronautics	276	6.8%	212	5.1%	148	4.7%	187	5.5%
Dynamics	367	14.0%	596	15.7%	382	15.6%	353	14.6%
Surveillance	405	8.1%	705	12.2%	324	7.8%	451	9.5%
Kockums								5.9%
	132	6.7%	192	9.5%	73	5.3%	84
Combitech	122	11.6%	111	9.9%	43	5.3%	75	7.3%
Corporate	-111		-396		-111		-85

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 countries, %	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⁾	2.00	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

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 interim report.

Parent company income statement

MSEK	Jan-Mar 2025	Jan-Mar 2024	Full Year 2024
Sales	9,002	8,598	36,291
Cost of goods sold	-7,244	-7,322	-30,454
Gross income	1,758	1,276	5,837
Gross margin, %	19.5	14.8	16.1
Operating income and expenses	-1,134	-987	-4,188
Operating income (EBIT)	624	289	1,649
Operating margin, %	6.9	3.4	4.5
Financial income and expenses	183	72	2,443
Income after financial items	807	361	4,092
Appropriations	-	-	-824
Income before taxes	807	361	3,268
Taxes	-178	-99	-703
Net income for the period	629	262	2,565

Parent company balance sheet

MSEK Note		31 Mar 2025	31 Dec 2024	31 Mar 2024
ASSETS
Fixed assets:
Intangible fixed assets		1,330	1,234	1,171
Tangible fixed assets		6,948	6,410	5,752
Financial fixed assets		11,724	10,945	8,712
Total fixed assets		20,002	18,589	15,635
Current assets:
Inventories		13,622	12,530	10,939
Current receivables		21,997	25,375	22,321
Short term investments		6,784	8,852	8,393
Liquid assets		2,289	903	1,241
Total current assets		44,692	47,660	42,894
TOTAL ASSETS		64,694	66,249	58,529
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity		3,348	3,348	3,354
Unrestricted equity		16,082	15,390	14,072
Total shareholders' equity		19,430	18,738	17,426
Untaxed reserves, provisions and liabilities:
Untaxed reserves		4,750	4,750	3,926
Provisions		1,948	1,984	2,860
Liabilities	8	38,566	40,777	34,317
Total untaxed reserves, provisions and liabilities		45,264	47,511	41,103
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		64,694	66,249	58,529

Liquidity, financing, capital expenditures and number of permanent employees

The Parent Company's net debt amounted to SEK 2,250 million as of 31 March 2025 compared to a net liquidity of SEK 1,895 million at 31 December 2024. Investments in tangible fixed assets amounted to SEK 710 million (523). Investments in intangible assets amounted to SEK 142 million (44). At the end of the period, the Parent Company had 12,648 permanent employees compared to 12,250 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 2024.

Note 2 Accounting principles

The interim report for the first quarter 2025 has 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 160- 162, and concerning significant income statement and balance sheet items, in each note disclosure in the Annual Report 2024.

The interim 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 2024. All information on pages 1-30 constitutes the interim report for the first quarter 2025.

The Group and the Parent Company use the accounting principles and calculation methods as described in the Annual Report 2024. Important estimates and assumptions are disclosed in note 2 in the Annual Report 2024.

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.

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	Jan-Mar 2025	Jan-Mar 2024	Change, %	Rolling 12 Months	Full Year 2024
Aeronautics	2,805	5,142	-45	8,839	11,176
Dynamics	8,108	5,591	45	52,810	50,293
Surveillance	7,081	5,929	19	29,686	28,534
Kockums	960	1,352	-29	5,314	5,706
Combitech	1,345	1,083	24	4,899	4,637
Corporate/elimination	-1,155	-602		-4,101	-3,548
Total	19,144	18,495	4	97,447	96,798

Order bookings per region

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Rolling 12 Months	Full Year 2024
Sweden	4,312	4,701	-8	23,067	23,456
Rest of Europe	10,341	7,095	46	38,744	35,498
North America	1,806	2,535	-29	6,943	7,672
Latin America	1,363	726	88	874	237
Asia	911	2,700	-66	3,261	5,050
Africa	58	332	-83	80	354
Australia, etc.	353	406	-13	2,824	2,877
Undisclosed countries	-	-	-	21,654	21,654
Total	19,144	18,495	4	97,447	96,798

Order backlog per operating segment

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Aeronautics	39,753	41,501	48,103
Dynamics	83,511	78,886	46,195
Surveillance	53,564	52,725	47,167
Kockums	13,002	14,360	16,447
Combitech	2,086	1,927	1,631
Corporate/elimination	-2,709	-2,176	-1,174
Total	189,207	187,223	158,369

Order backlog per region

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Sweden	49,869	52,520	54,516
Rest of Europe	66,965	60,540	44,272
North America	13,372	13,422	12,864
Latin America	13,912	13,565	17,685
Asia	8,859	9,550	11,091
Africa	698	699	818
Australia etc.	3,718	4,185	4,188
Undisclosed countries	31,814	32,742	12,935
Total	189,207	187,223	158,369

Sales per operating segment

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change,	Rolling % 12 Months	Full Year 2024
Aeronautics	4,525	4,047	12	17,167	16,689
Dynamics	3,143	2,622	20	15,126	14,605
Surveillance	5,274	4,989	6	22,299	22,014
Kockums	2,253	1,966	15	8,651	8,364
Combitech	1,182	1,049	13	4,439	4,306
Corporate/elimination	-585	-488		-2,324	-2,227
Total	15,792	14,185	11	65,358	63,751

Sales per region

MSEK	Jan-Mar 2025	% of sales	Jan-Mar 2024	% of sales	Full Year 2024	% of sales
Sweden	6,970	44	5,503	39	26,140	41
Rest of Europe	3,596	23	3,582	25	15,829	25
North America	1,245	8	1,501	11	6,148	10
Latin America	1,014	6	922	6	4,556	7
Asia	1,395	9	1,345	9	5,329	8
Africa	58	0	50	0	165	0
Australia, etc.	586	4	919	7	3,375	5
Undisclosed countries	928	6	363	3	2,209	4
Total	15,792	100	14,185	100	63,751	100

Information on large customers

During the first quarter 2025, 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 6,069 million (4,799) during the period.

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	Jan-Mar 2025	% of sales	Jan-Mar 2024	% of sales	Rolling 12 Months	Full Year 2024
Aeronautics	367	8.1	276	6.8	1,068	977
Dynamics	461	14.7	367	14.0	2,659	2,565
Surveillance	438	8.3	405	8.1	2,024	1,991
Kockums	202	9.0	132	6.7	709	639
Combitech	118	10.0	122	11.6	438	442
Group segments' operating income	1,586	10.2	1,302	9.2	6,898	6,614
Corporate	-132		-111		-973	-952
Total	1,454	9.2	1,191	8.4	5,925	5,662

Depreciation/amortisation and write-downs per operating segment

MSEK	Jan-Mar 2025	Jan-Mar 2024	Change, %	Rolling 12 Months	Full Year 2024
Aeronautics	71	56	27	268	253
Dynamics	38	28	36	138	128
Surveillance	219	228	-4	1,038	1,047
Kockums	17	11	55	57	51
Combitech	2	3	-33	15	16
Corporate	339	302	12	1,282	1,245
Total	686	628	9	2,798	2,740

Operational cash flow per operating segment

MSEK	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 Months	Full Year 2024
Aeronautics	-2,270	-824	-2,158	-712
Dynamics	5,328	-996	9,122	2,798
Surveillance	-1,545	-436	224	1,333
Kockums	-647	920	-1,278	289
Combitech	105	135	502	532
Corporate	-985	-797	-1,931	-1,743
Total	-14	-1,998	4,481	2,497

Capital employed per operating segment

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Aeronautics	14,596	12,136	11,514
Dynamics	4,200	5,342	4,855
Surveillance	13,566	12,142	11,869
Kockums	3,063	3,622	2,293
Combitech	1,121	1,348	1,028
Corporate/elimination	12,863	12,755	12,489
Total	49,409	47,345	44,048

Full time equivalents (FTEs) per operating segment

Number at end of the period	31 Mar 2025	31 Dec 2024	31 Mar 2024
Aeronautics	6,172	6,023	5,644
Dynamics	4,465	4,295	3,705
Surveillance	7,468	7,190	6,500
Kockums	2,484	2,410	2,240
Combitech	2,445	2,378	2,243
Corporate	2,335	2,227	2,003
Total	25,369	24,523	22,335

Note 4 Distribution of sales

	Aeronautics				Surveillance		Kockums		Combitech		Corporate/ elimination		Group
			Dynamics
MSEK	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024	Jan-Mar 2025	Jan-Mar 2024
External sales	4,510	4,030	3,046	2,567	5,081	4,874	2,185	1,938	797	688	173	88	15,792	14,185
Internal sales	15	17	97	55	193	115	68	28	385	361	-758	-576	-	-
Total sales	4,525 -	4,047 -	3,143 -	2,622 -	5,274 -	4,989 -	2,253 -	1,966 -	1,182 -	1,049 -	-585 -	-488 -	15,792 -	14,185 -
Sales by customer:
Military customers	4,200	3,779	2,939	2,515	4,718	4,414	2,042	1,816	449	328	58	28	14,406	12,880
Civilian customers	310	251	107	52	363	460	143	122	348	360	115	60	1,386	1,305
Total external sales	4,510 -	4,030 -	3,046 -	2,567 -	5,081 -	4,874 -	2,185 -	1,938 -	797 -	688 -	173 -	88 -	15,792 -	14,185 -
Sales by significant source:
Long-term customer contracts	4,284	3,772	1,035	1,333	3,529	3,249	1,353	1,026	-	-	33	39	10,234	9,419
Services	156	194	480	403	914	937	428	409	750	610	48	31	2,776	2,584
Products	70	64	1,531	831	638	688	404	503	47	78	92	18	2,782	2,182
Total external sales	4,510 -	4,030 -	3,046 -	2,567 -	5,081 -	4,874 -	2,185 -	1,938 -	797 -	688 -	173 -	88 -	15,792 -	14,185 -
Sales by domain:
Air	4,087	3,700	132	90	1,899	1,750	-	-	12	11	37	10	6,167	5,561
Land	40	42	2,423	2,213	1,137	1,171	-	-	446	327	13	6	4,059	3,759
Naval	-	3	472	248	1,626	1,472	2,185	1,938	-	2	22	47	4,305	3,710
Civil Security	3	4	13	5	407	476	-	-	89	91	19	19	531	595
Commercial Aeronautics	379	278	-	-	1	2	-	-	-	-	3	4	383	284
Other/not distributed	1	3	6	11	11	3	-	-	250	257	79	2	347	276
Total external sales	4,510 -	4,030 -	3,046 -	2,567 -	5,081 -	4,874 -	2,185 -	1,938 -	797 -	688 -	173 -	88 -	15,792 -	14,185 -
Sales recognition method:
Over time	3,890	3,548	1,435	1,615	3,949	3,621	2,065	1,828	790	688	51	51	12,180	11,351
Point in time	620	482	1,611	952	1,132	1,253	120	110	7	-	122	37	3,612	2,834
Total external sales	4,510	4,030	3,046	2,567	5,081	4,874	2,185	1,938	797	688	173	88	15,792	14,185

Note 5 Items affecting comparability

Item affecting comparability	Business Area	Line item	Jan-Mar 2025	Jan-Mar 2024	Full Year 2024
Capital gain from divestment of Combitech Norway	Combitech	Other operating income	-	-	18
Remeasurement of contingent consideration payable	Surveillance	Other operating income	-	-	112
Write-down of intangible assets related to acquired customer relations	Surveillance	Marketing expenses	-		-72
Total			-	-	58

The items affecting comparability in 2024 are included in the operating income of the group. Operating income adjusted for items affecting comparability was not reported for the full year 2024.

Note 6 Dividend to Parent Company's shareholders

The Annual General Meeting 2025 held on 10 April decided on a dividend to the Parent Company's shareholders of SEK 2.00 per share, corresponding to a total dividend of SEK 1,073 million. The dividend is paid out in two equal instalments. Record date for the first instalment was 14 April 2025 and the dividend was paid out on 17 April 2025. At the second instalment, SEK 1.00 per share will be paid on 10 October 2025 with the record date 7 October 2025.

Note 7 Intangible fixed assets

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Goodwill	5,429	5,572	5,517
Capitalised development costs	6,053	6,052	6,108
Other intangible assets	1,456	1,374	1,424
Total	12,938	12,998	13,049

Note 8 Net liquidity/debt

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Assets:
Liquid assets	3,344	2,843	2,336
Short-term investments	6,861	8,898	8,464
Total liquid investments	10,205	11,741	10,800
Short-term interest-bearing receivables	69	73	74
Long-term interest-bearing receivables	245	241	275
Long-term receivables attributable to pensions	79	79	59
Long-term interest-bearing financial investments	2,543	1,610	-
Total interest-bearing assets	13,141	13,744	11,208
Liabilities:
Lease liabilities	2,820	3,032	2,773
Bonds and other debt instruments	7,192	7,193	6,922
Liabilities to associated companies
and joint ventures	51	55	53
Other interest-bearing liabilities	107	104	60
Provisions for pensions ¹⁾	775	1,149	564
Total interest-bearing liabilities and provisions for
pensions	10,945	11,533	10,372
Net liquidity (+) / net debt (-)	2,196	2,211	836

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)	89		-	89
Total	6,089		-	6,089
Parent Company
MSEK		31 Mar 2025	31 Dec 2024	31 Mar 2024
Long-term bonds and other debt instruments		6,071	7,073	6,870
Short-term bonds and other debt instruments		1,114	114	-
Total		7,185	7,187	6,870

Saab has a Medium Term Note (MTN) programme with a framework of SEK 10,000 million, enabling the issuance of long-term loans on the capital market. The programme was established in 2009 with a framework of SEK 3,000 million and has since been increased in two steps. At of the end of the quarter, bonds outstanding under the MTN programme amounted to SEK 6,870 million.

No bonds were issued, matured or repurchased during the quarter.

Note 9 Capital employed

MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
Total assets	101,677	99,823	84,782
Less non-interest bearing liabilities	52,268	52,478	40,734
Capital employed	49,409	47,345	44,048

Note 10 Financial instruments

Classification and categorisation of financial assets and liabilities²⁾

Carrying amount	31 Mar 2025	31 Dec 2024	31 Mar 2024
Financial assets:
Valued at amortised cost ⁴⁾:
Accounts receivable, contract assets and other
receivables	26,207	27,482	23,595
Liquid assets	3,344	2,843	2,336
Long-term receivables	365	356	399
Valued at fair value through profit and loss ³⁾:
Short-term interest-bearing investments	6,861	8,898	8,464
Derivatives for trading	106	17	17
Financial investments	209	237	228
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	1,722	913	949
Equity investments elected to be classified as fair value
through other comprehensive income	2,379	2,526	915
Long-term interest-bearing investments	2,543	1,610	-
Total financial assets	43,736	44,882	36,903
Financial liabilities:
Valued at amortised cost:
Interest-bearing liabilities ¹⁾	10,170	10,384	9,809
Other liabilities ⁴⁾	14,726	15,977	13,492
Valued at fair value through profit and loss ³⁾:
Contingent consideration payable	18	19	130
Derivatives for trading	35	64	34
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	933	2,380	1,536
Total financial liabilities	25,882	28,824	25,001
¹⁾ Fair value	10,214	10,617	10,007

^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 766 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 2024, as described in the Annual Report 2024 on page 203, note 35. As of 31 March 2025, the Group had the following financial assets and liabilities at fair value:

Financial assets at fair value

MSEK	31 Mar 2025	Level 1	Level 2	Level 3
Bonds and interest-bearing securities	9,404	9,404	-	-
Forward exchange contracts	1,613	-	1,613	-
Currency options	10	-	10	-
Interest rate swaps	180	-	180	-
Electricity derivatives	25	25	-	-
Shares and participations	2,588	-	-	2,588
Total	13,820	9,429	1,803	2,588

Financial liabilities at fair value

MSEK	31 Mar 2025	Level 1	Level 2	Level 3
Forward exchange contracts	905	-	905	-
Currency options	6	-	6	-
Interest rate swaps	4	-	4	-
Electricity derivatives	53	53	-	-
Contingent consideration payable	18	-	-	18
Total	986	53	915	18

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

MSEK	Unlisted shares and participations	Contingent consideration payable
Opening balance, 1 January 2025	2,763	19
Gains/losses recognised in the income statement	-28	-
Gains/losses recognised in other comprehensive income Foreign currency translation	-147 -	- -1
Closing balance, 31 March 2025	2,588	18

Note 11 Supplemental information on statement of cash flows

Free cash flow

MSEK	Jan-Mar 2025	Jan-Mar 2024	Full year 2024
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	2,108	1,648	8,269
Cash flow from changes in working capital:
Contract assets and liabilities	631	-1,771	7,218
Inventories	-2,306	-1,595	-4,890
Other current receivables	1,949	-278	-5,464
Other current liabilities	-723	1,284	3,589
Provisions	-117	-147	-1,456
Change in working capital	-566	-2,507	-1,003
Cash flow from operating activities excluding taxes and other financial items	1,542	-859	7,266
Investing activities:
Investments in intangible fixed assets	-311	-162	-827
Investments in tangible fixed assets	-1,248	-998	-4,012
Sales and disposals of tangible fixed assets including biological assets	3	21	70
Cash flow from investing activities ²⁾	-1,556	-1,139	-4,769
Operational cash flow	-14	-1,998	2,497
Taxes and other financial items	-431	-374	-1,224
Investments in and sale of financial assets, associated companies and joint ventures	-2	-2	-290
Investments in operations	-	-15	-15
Sale of subsidiaries and other operations	-	-	25
Free cash flow	-447	-2,389	993

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	Jan-Mar 2025	2024	Jan-Mar Full Year 2024
Free cash flow	-447	-2,389	993
Investing activities – interest-bearing:
Short-term investments	2,039	2,886	2,471
Other financial investments and receivables	-965	-	-1,604
Financing activities:
Repayments of loans	-	-341	-678
Raising of loans and increase in other interest-bearing liabilities	1	-	331
Dividend paid to the Parent Company's shareholders	-	-	-856
Dividend paid to non-controlling interest	-23	-	-41
Cash flow for the period	605	156	616
Liquid assets
MSEK	31 Mar 2025	31 Dec 2024	31 Mar 2024
The following components are included in liquid assets:
Cash and bank balances	1,144	2,543	1,336
Bank deposits	2,200	300	1,000
Total according to balance sheet	3,344	2,843	2,336
Total according to statement of cash flows	3,344	2,843	2,336

Note 12 Business combinations

No acquisitions or divestments took place in the first quarter 2025.

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 Mar 2025	31 Dec 2024	31 Mar 2024
Defined-benefit obligation	10,654	10,969	9,976
Special employers' contribution	145	238	89
Less assets under management	9,959	9,899	9,471
Total provisions for pensions	840	1,308	594
of which reported as long-term receivable	79	79	59

Actuarial gains and losses are recognised in other comprehensive income. The actuarial gain related to the Swedish pension plans amounted to SEK 425 million net in the first quarter 2025 due to the following:

The assumed discount rate increased from 3.75 per cent to 4.00 per cent. This resulted in an actuarial gain of SEK 383 million. The inflation assumption was 1.75 per cent, unchanged during the first quarter 2025.

Negative experience adjustments resulted in an actuarial loss of SEK 16 million.

The return on assets under management was SEK 60 million which resulted in an actuarial loss of SEK 28 million.

The actuarial gain related to the special employer's contribution amounted to SEK 86 million.

Note 14 Contingent liabilities

No additional significant commitments have arisen during the first quarter 2025. 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

No significant transactions with related parties have occurred during the first quarter 2025. Related parties with which the Group has transactions are described in note 37 in the Annual Report 2024.

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 25 April 2025

Saab AB (publ)

Micael Johansson

President and CEO

This interim report has not been subject to review by the company's auditors.

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

Adam Solberg, Investor Relations Manager +46 734 46 62 58

Media and financial analyst conference:

25 April 2025 at 10.00 (CEST)

Live webcast: www.saab.com/investors/webcast/q1-2025 Conference call: Registration for the conference call: www.saab.com/investors/conference-call-q1

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

Calendar Capital Markets Day Karlskoga 26-27 May 2025

Half-year report 2025 Published 18 July 2025

Q3 Interim report 2025 Published 22 October 2025

Important information

This interim 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 25 April 2025 at 07.30 (CET).