SAAB — Interim / Quarterly Report 2014

Feb 10, 2015

A SUCCESSFUL AND CHALLENGING YEAR

Platform for future growth

Strong order backlog, challenging market

Completed efficiency measures

YEAR-END REPORT JANUARY-DECEMBER 2014

Håkan Buskhe, CEO

OUTLOOK STATEMENT 2015:

Financial highlights

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	22,602	49,809	-55	12,403	24,780
Order backlog	60,128	59,870	-
Sales	23,527	23,750	- 1	7,425	7,279
Gross income	6,077	6,328	- 4	1,851	1,853
Gross margin, %	25.8	26.6		24.9	25.5
EBITDA	2,523	2,367	7	987	810
EBITDA margin, %	10.7	10.0		13.3	11.1
Operating income (EBIT)	1,659	1,345	23	758	534
Operating margin, %	7.1	5.7		10.2	7.3
Net income	1,168	742	57	586	287
Earnings per share before dilution, SEK	10.86	6.98		5.49	2.64
Earnings per share after dilution, SEK	10.78	6.79		5.45	2.57
Return on equity, % ¹⁾	9.9	6.3
Free cash flow ²⁾	-1,094	-1,460		1,006	553
Free cash flow per share after dilution, SEK	-10.23	-13.38		9.47	5.07

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

2) As of 1 January 2014, free cash flow is reported for the Group. It was previously named operating cash flow.

Comparative numbers for 2013 have been restated according to the changed accounting principles for joint arrangements (IFRS 11). See note 13. Where applicable, comparative numbers for 2013 and for 2014 for some business areas have been restated following organisational and structural changes, see notes 14 and 15. The latter have no impact on the Group as a whole.

Major orders, 4th quarter

	MSEK
Gripen E support and
maintenance systems	5,800
Extended Gripen lease in Czech
Republic	576
Development order for Gripen E	385

Defence/Civil A total of 80 per cent (87)

of order bookings was attributable to defencerelated operations during 2014.

Market

A total of 45 per cent (30) of order bookings was related to markets outside Sweden during 2014.

Large orders Orders where the total order value exceeded MSEK 100 represented 61 per cent (80) of total order bookings during 2014.

Order backlog duration:

Orders

Fourth quarter 2014

January–December 2014

Order bookings by region

MSEK	Full Year 2014	Full Year 2013	Change, %
Sweden	12,320	34,967	-65
EU excluding Sweden	4,348	4,708	- 8
Rest of Europe	498	555	-10
Americas	2,276	3,221	-29
Asia	1,906	4,636	-59
Africa	460	666	-31
Australia, etc.	794	1,056	-25
Total	22,602	49,809	-55

Sales, MSEK

Sales

Fourth quarter 2014

January–December 2014

Sales per region

MSEK	Full Year 2014	Full Year 2013	Change, %
Sweden	10,512	9,814	7
EU excluding Sweden	3,770	3,933	- 4
Rest of Europe	592	621	- 5
Americas	2,895	2,987	- 3
Asia	4,007	4,311	- 7
Africa	573	930	-38
Australia, etc.	1,178	1,154	2
Total	23,527	23,750	- 1

Sales per market segment

MSEK	Full Year 2014	Full Year 2013	Change, %
Air	10,481	10,693	-2
Land	5,240	6,462	-19
Naval	3,192	2,292	39
Civil Security	2,330	1,979	18
Commercial Aeronautics	1,838	1,615	14
Other	446	709	-37
Total	23,527	23,750	- 1

Gross margin, %

Operating margin, %

Earnings per share after dilution, SEK

Income

Fourth quarter 2014

January-December 2014

Financial net

MSEK	Full Year 2014	Full Year 2013
Financial net related to pensions	-57	-74
Net interest items	7	23
Currency losses/gains	- 5	-26
Other financial items	-81	-289
Total	-136	-366

Tax

Return on capital employed and equity

Financial position and liquidity

Capital expenditures

Cash flow

Financial positon key indicators and liquidity

Financial positon key indicators and liquidity
MSEK	31 Dec 2014	31 Dec 2013	Change
Net liquidity / debt ¹⁾	-2,113	813	-2,926
Intangible fixed assets	6,351	6,340	11
Goodwill	5,015	4,605	410
Capitalised development costs	952	1,338	-386
Other intangible fixed assets	384	397	-13
Tangible fixed assets, etc ²⁾	4,024	3,763	261
Inventories	5,819	4,563	1,256
Accounts receivable	3,414	3,295	119
Other receivables	4,255	3,727	528
Accrued revenues ³⁾	3,505	3,074	431
Advance payments from customers	856	818	38
Equity/assets ratio, (%)	38.5	44.0
Return on equity, (%) ⁴⁾	9.9	6.3
Equity per share, SEK ⁵⁾ ⁶⁾	107.02	114.04	-7.02

1) The Group's net liquidity refers to 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. For a detailed break-down of interest-bearing receivables and interest-bearing liabilities, see note 6.

2) Including tangible fixed assets, lease assets, biological assets and investment properties.

3) Amounts due from customers relate to long-term customer contracts according to the percentage of completion method.

4) The return on equity is measured over a rolling 12-month period.

5) Number of shares excluding treasury shares; 2014: 105,499,980; 2013: 106,414,144.

6) Other comprehensive income has had a negative effect on equity amounting to MSEK 1,320, see page 13 for further information.

Comparative numbers for 2013 have been restated according to the changed accounting principles for joint arrangements (IFRS 11).

2,477 -396 -1,460 -1,094

Free cash flow, MSEK

2011 2012 2013 2014

BUSINESS AREA AERONAUTICS

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	6,890	29,677	-77	5,849	18,266
Order backlog	34,283	34,113	0
Sales	6,720	6,869	- 2	2,189	1,996
EBITDA	539	603	-11	213	139
EBITDA margin, %	8.0	8.8		9.7	7.0
Operating income (EBIT)	480	456	5	198	102
Operating margin, %	7.1	6.6		9.0	5.1
Operational cash flow	-656	-227		-335	190
Defence/Civil (% of sales)	80/20	83/17		83/17	81/19
No. of FTE's	3,263	3,210	2

For a description of the business area activities, see note 3.

Orders

Sales, income and margin

Cash flow

BUSINESS AREA DYNAMICS

		outside Sweden (29) during 2014.

Large orders Orders where the total order value exceeded MSEK 100 represented 94 per cent (98) of total order bookings during 2014.

Market Sales related to markets accounted for 27 per cent

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	2,325	3,345	-30	1,068	1,637
Order backlog	3,915	4,548	-14
Sales	2,974	3,566	-17	929	1,183
EBITDA	226	428	-47	142	209
EBITDA margin, %	7.6	12.0		15.3	17.7
Operating income/loss (EBIT)	165	366	-55	127	190
Operating margin, %	5.5	10.3		13.7	16.1
Operational cash flow	-69	503		108	87
Defence/Civil (% of sales)	84/16	88/12		84/16	91/9
No. of FTE's	1,461	1,523	- 4

For a description of the business area activities, see note 3. Comparative numbers for 2013 have been restated following organisational and structural changes, see note 14.

Orders

Sales, income and margin

Cash flow

Personnel

Large orders Orders where the total order value exceeded MSEK 100 represented 23 per cent (47) of total order bookings during 2014.

BUSINESS AREA ELECTRONIC DEFENCE SYSTEMS

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	2,943	7,587	-61	987	2,214
Order backlog	7,619	9,171	-17
Sales	4,629	4,560	2	1,361	1,413
EBITDA	622	373	67	202	61
EBITDA margin, %	13.4	8.2		14.8	4.3
Operating income/loss (EBIT)	205	-115		95	-71
Operating margin, %	4.4	-2.5		7.0	-5.0
Operational cash flow	-677	116		107	224
Defence/Civil (% of sales)	97/3	97/3		96/4	96/4
No. of FTE's	2,550	2,588	- 1

For a description of the business area activities, see note 3. Comparative numbers for 2013 have been restated following organisational and structural changes, see note 14.

Orders

Sales, income and margin

Cash flow

Personnel

BUSINESS AREA SECURITY AND DEFENCE SOLUTIONS

Large orders Orders where the total order value exceeded MSEK 100 represented 36 per cent (70) of total order bookings during 2014.

Market Sales related to markets outside Sweden accounted for 71 per cent (72) during 2014.

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	6,110	4,736	29	2,210	1,807
Order backlog	6,823	5,571	22
Sales	5,762	5,095	13	1,999	1,650
EBITDA	468	328	43	258	153
EBITDA margin, %	8.1	6.4		12.9	9.3
Operating income (EBIT)	356	213	67	222	124
Operating margin, %	6.2	4.2		11.1	7.5
Operational cash flow	157	122		482	214
Defence/Civil (% of sales)	68/32	67/33		74/26	71/29
No. of FTE's	3,234	2,843	14

For a description of the business area activities, see note 3. Comparative numbers for 2013 have been restated following organisational and structural changes, see note 14.

Orders

Sales, income and margin

Cash flow

Personnel

Large orders Orders where the total order value exceeded MSEK 100 represented 47 per cent (35) of total order bookings during 2014.

Market Sales related to markets outside Sweden accounted for 73 per cent

(78) during 2014.

BUSINESS AREA SUPPORT AND SERVICES

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	4,720	4,602	3	2,635	965
Order backlog	7,976	6,683	19
Sales	3,570	3,772	- 5	1,039	1,168
EBITDA	394	517	-24	128	158
EBITDA margin, %	11.0	13.7		12.3	13.5
Operating income (EBIT)	376	498	-24	124	153
Operating margin, %	10.5	13.2		11.9	13.1
Operational cash flow	-32	-149		58	36
Defence/Civil (% of sales)	76/24	79/21		75/25	82/18
No. of FTE's	1,818	1,840	- 1

For a description of the business area activities, see note 3. Comparative numbers for 2013 have been restated following organisational and structural changes, see note 14.

Orders

Sales, income and margin

Cash flow

Personnel

BUSINESS AREA COMBITECH

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013
Order bookings	1,494	1,740	-14	403	531
Order backlog	387	540	-28
Sales	1,649	1,684	- 2	462	500
EBITDA	100	157	-36	36	56
EBITDA margin, %	6.1	9.3		7.8	11.2
Operating income (EBIT)	92	148	-38	34	54
Operating margin, %	5.6	8.8		7.4	10.8
Operational cash flow	76	162		44	20
Defence/Civil (% of sales)	56/44	59/41		56/44	58/42
No. of FTE's	1,405	1,345	4

For a description of the business area activities, see note 3. Comparative numbers for 2013 have been restated following organisational and structural changes, see note 14.

Orders and sales

Income and margin

Cash flow

Market

Sales related to markets outside Sweden accounted for 37 per cent (40) during 2014.

Market

Sales related to markets outside Sweden accounted for 8 per cent (8) during 2014.

Owners

Personnel

	31 Dec 2014	1 Jan 2014
Number of
employees	14,716	14,140
FTE's	14,561	14,122

Corporate

Acquisitions and divestments 2014

Share repurchase

Risks and uncertainties

Proposed dividend

Nomination committee

Gripen for Brazil

Other significant events January–December 2014

Significant events after the conclusion of the period

ABOUT SAAB

Short facts

Vision

Mission

Business concept

ORGANISATION

REVENUE MODEL

SAAB'S STRATEGY

Profitable growth

Performance

Portfolio

People

FINANCIAL TARGETS

Sales

Operating margin

Equity/assets ratio

Dividend

CONSOLIDATED INCOME STATEMENT

MSEK	Note	Full Year 2014	Full Year 2013	Q4 2014	Q4 2013
Sales	3	23,527	23,750	7,425	7,279
Cost of goods sold		-17,450	-17,422	-5,574	-5,426
Gross income		6,077	6,328	1,851	1,853
Gross margin, %		25.8	26.6	24.9	25.5
Other operating income		430	204	261	83
Marketing expenses		-2,144	-2,082	-629	-565
Administrative expenses		-1,214	-1,111	-333	-338
Research and development costs		-1,487	-1,762	-416	-490
Other operating expenses		-21	-257	3	-19
Share in income of associated companies and joint ventures		18	25	21	10
Operating income (EBIT) ¹⁾	3	1,659	1,345	758	534
Operating margin, %		7.1	5.7	10.2	7.3
Financial income		103	62	52	15
Financial expenses		-239	-428	-70	-189
Net financial items		-136	-366	-18	-174
Income before taxes		1,523	979	740	360
Taxes		-355	-237	-154	-73
Net income for the period		1,168	742	586	287
of which Parent Company's shareholders' interest		1,153	741	579	281
of which non-controlling interest		15	1	7	6
Earnings per share before dilution, SEK ²⁾		10.86	6.98	5.49	2.64
Earnings per share after dilution, SEK ³⁾		10.78	6.79	5.45	2.57
1) Includes depreciation/amortisation and write-downs		-872	-1,047	-230	-278
of which depreciation of leasing aircraft		- 8	-25	- 1	- 2
2) Average number of shares before dilution		106,125,666	106,125,107	105,438,516	106,342,403
3) Average number of shares after dilution.		106,916,255	109,150,344	106,239,161	109,150,344

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

As of 2014, the dilution of number of shares is calculated based on the effects of all potential shares (Share Matching Plan and Performance Share Plan) that give rise to a dilution effect. Previously, a simplified method was used where the dilution effect was calculated based on all treasury shares.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MSEK	Full Year 2014	Full Year 2013	Q4 2014	Q4 2013
Net income for the period	1,168	742	586	287
Other comprehensive income:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	-1,220	1,255	-173	68
Tax attributable to revaluation of net pension obligations	266	-285	36	-24
Total	-954	970	-137	4 4
Items that may be reversed in the income statement:
Translation differences	517	-132	174	28
Net gain/loss on available-for-sale financial assets	27	-	10	116
Net gain/loss on cash flow hedges	-1,163	-255	-315	-174
Tax attributable to net gain/loss on cash flow hedges	253	59	67	39
Total	-366	-328	-64	9
Other comprehensive income/loss for the period	-1,320	642	-201	5 3
Net comprehensive income/loss for the period	-152	1,384	385	340
of which Parent Company's shareholders' interest	-167	1,399	381	335
of which non-controlling interest	15	-15	4	5

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

MSEK Note		31 Dec 2014	31 Dec 2013
ASSETS
Fixed assets:
Intangible fixed assets	5	6,351	6,340
Tangible fixed assets		3,702	3,239
Lease assets		-	197
Biological assets		289	296
Investment properties		33	31
Shares in associated companies and joint ventures		397	367
Financial investments		292	295
Long-term receivables	10	152	122
Deferred tax assets		656	239
Total fixed assets		11,872	11,126
Current assets:
Inventories		5,819	4,563
Derivatives		469	396
Tax receivables		60	62
Accounts receivable		3,414	3,295
Other receivables		4,255	3,727
Prepaid expenses and accrued income		1,113	854
Short-term investments		1,270	2,002
Liquid assets	8	1,284	1,764
Total current assets		17,684	16,663
TOTAL ASSETS		29,556	27,789
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest		11,291	12,136
Non-controlling interest		82	91
Total shareholders' equity		11,373	12,227
Long-term liabilities:
Long-term interest-bearing liabilities	6	2,105	1,095
Other liabilities		141	179
Provisions for pensions	10	3,149	1,680
Other provisions		1,234	1,043
Deferred tax liabilities		48	501
Total long-term liabilities		6,677	4,498
Current liabilities:
Short-term interest-bearing liabilities	6	264	718
Advance payments from customers		856	818
Accounts payable		1,840	1,918
Derivatives		1,400	316
Tax liabilities		47	61
Other liabilities		978	839
Accrued expenses and deferred income		5,609	5,735
Provisions		512	659
Total current liabilities		11,506	11,064
Total liabilities		18,183	15,562
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		29,556	27,789

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

MSEK	Capital stock	Other capital contri butions	Net result of cash flow hedges	Translation reserve	Available-for sale and revaluation reserve	Retained earnings	Total parent company's shareholders' interest	Non controlling interest	Total shareholders' equity
Opening balance, 1 January 2013	1,746	543	531	-226	11	8,563	11,168	112	11,280
Net comprehensive income/loss for the
year			-185	-127		1,711	1,399	-15	1,384
Transactions with shareholders:
Share matching plan						46	4 6		4 6
Dividend						-477	-477	- 1	-478
Acquisition and sale of non-controlling interest								- 5	- 5
Closing balance, 31 December 2013	1,746	543	346	-353	1 1	9,843	12,136	9 1	12,227
Opening balance, 1 January 2014	1,746	543	346	-353	11	9,843	12,136	91	12,227
Net comprehensive income/loss for the
year			-908	514	27	200	-167	15	-152
Transactions with shareholders:
Repurchase of shares						-252	-252		-252
Share matching plan						50	5 0		5 0
Dividend						-479	-479	- 5	-484
Acquisition and sale of non-controlling interest						3	3	-19	-16
Closing balance, 31 December 2014	1,746	543	-562	161	3 8	9,365	11,291	8 2	11,373

CONSOLIDATED STATEMENT OF CASH FLOWS

MSEK Note	Full Year 2014	Full Year 2013
Operating activities:
Income after financial items	1,523	979
Adjustments for items not affecting cash flows	725	1,224
Income tax paid	-394	-368
Cash flow from operating activities before changes in working capital	1,854	1,835
Cash flow from changes in working capital:
Increase(-)/Decrease(+) in inventories	-856	-147
Increase(-)/Decrease(+) in current receivables	-282	-1,346
Increase(+)/Decrease(-) in advance payments from customers	21	278
Increase(+)/Decrease(-) in other current liabilities	-914	-1,005
Increase(+)/Decrease(-) in provisions	-536	-277
Cash flow from operating activities	-713	-662
Investing activities:
Investments in intangible fixed assets	-68	-44
Capitalised development costs	-171	-24
Investments in tangible fixed assets	-732	-543
Sales and disposals of tangible fixed assets	15	46
Sales and disposals of lease assets	105	81
Sale of and Investments in short-term investments	720	1,936
Dividend from joint ventures	-	430
Investments in other financial assets	-	-248
Sale of other financial assets	40	10
Investments in operations and associated companies, net effect on liquidity	9 152	-68
Sale of subsidiaries and associated companies, net effect on liquidity	299	-
Cash flow from investing activities	360	1,576
Financing activities:
Repayments of loans	-468	-1,100
Raising of loans	1,000	845
Repurchase of shares	-252	-
Dividend paid to Parent Company's shareholders	-479	-477
Dividend paid to non-controlling interest	- 5	- 1
Cash flow from financing activities	-204	-733
Cash flow for the period	-557	181
Liquid assets at the beginning of the period	1,764	1,616
Exchange rate difference in liquid assets	77	-33
Liquid assets at end of period	8 1,284	1,764

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

QUARTERLY INCOME STATEMENT

MSEK	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013
Sales	7,425	5,130	5,692	5,280	7,279	4,723	5,886	5,862
Cost of goods sold	-5,574	-3,800	-4,157	-3,919	-5,426	-3,459	-4,287	-4,250
Gross income	1,851	1,330	1,535	1,361	1,853	1,264	1,599	1,612
Gross margin, %	24.9	25.9	27.0	25.8	25.5	26.8	27.2	27.5
Other operating income	261	77	47	45	83	63	29	29
Marketing expenses	-629	-511	-520	-484	-565	-471	-533	-513
Administrative expenses	-333	-300	-301	-280	-338	-219	-291	-263
Research and development costs	-416	-322	-385	-364	-490	-380	-434	-458
Other operating expenses	3	-10	- 7	- 7	-19	9	-238	- 9
Share of income in associated companies and joint ventures	21	- 6	4	- 1	10	-	17	- 2
Operating income (EBIT) ¹⁾	758	258	373	270	534	266	149	396
Operating margin, %	10.2	5.0	6.6	5.1	7.3	5.6	2.5	6.8
Share of income in associated companies	-	-	-	-	-	- 1	-	1
Financial income	52	19	10	22	15	16	13	18
Financial expenses	-70	-48	-64	-57	-189	-27	-151	-61
Net financial items	-18	-29	-54	-35	-174	-12	-138	-42
Income before taxes	740	229	319	235	360	254	1 1	354
Taxes	-154	-59	-83	-59	-73	-62	-10	-92
Net income for the period	586	170	236	176	287	192	1	262
of which Parent Company's shareholders' interest	579	166	233	175	281	189	2	269
of which non-controlling interest	7	4	3	1	6	3	- 1	- 7
Earnings per share before dilution, SEK ²⁾	5.49	1.57	2.19	1.64	2.64	1.78	0.02	2.54
Earnings per share after dilution, SEK ³⁾	5.45	1.55	2.17	1.63	2.57	1.73	0.02	2.46
1) includes depreciation/amortisation and write-downs of which depreciation of leasing aircraft	-230 - 1	-221 - 2	-211 - 1	-210 - 4	-278 - 2	-256 - 7	-256 - 7	-257 - 9
2) average number of shares before dilution	105,438,516	106,060,673	106,549,332	106,454,142	106,342,403	106,196,870	106,028,640	105,932,515
3) average number of shares after dilution	106,239,161	106,888,805	107,422,230	107,299,002	109,150,344	109,150,344	109,150,344	109,150,344

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

As of 2014, the dilution of shares is calculated based on the effects of all potential shares (Share Matching Plan and Performance Share Plan) that give rise to a dilution effect. Previously, a simplified method was used where the dilution effect was calculated based on all treasury shares.

QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MSEK	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013
Net income for the period	586	170	236	176	287	192	1	262
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	-173	-324	-42	-681	68	101	647	439
Tax attributable to revaluation of net pension obligations	36	71	9	150	-24	-22	-142	-97
Total	-137	-253	-33	-531	4 4	7 9	505	342
Items that may be reversed in the income statement:
Translation differences	174	169	148	26	28	-122	42	-80
Net gain/loss on available-for-sale financial assets	10	-77	94	-	116	-53	-63	-
Net gain/loss on cash flow hedges	-315	-517	-251	-80	-174	196	-300	23
Tax attributable to net gain/loss on cash flow hedges	67	114	53	19	39	-44	68	- 4
Total	-64	-311	4 4	-35	9	-23	-253	-61
Other comprehensive income/loss for the period	-201	-564	1 1	-566	5 3	5 6	252	281
Net comprehensive income/loss for the period	385	-394	247	-390	340	248	253	543
of which Parent Company's shareholders' interest	381	-398	237	-387	335	242	262	560
of which non-controlling interest	4	4	10	- 3	5	6	- 9	-17

KEY RATIOS BY QUARTER

MSEK	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013
Equity/assets ratio, (%)	38.5	40.1	42.7	44.4	44.0	44.6	42.4	41.5
Return on capital employed, % ¹⁾	11.1	9.7	9.8	8.3	9.1	10.2	10.5	14.2
Return on equity, % ¹⁾	9.9	7.6	7.7	5.5	6.3	8.8	8.7	13.3
Equity per share, SEK ²⁾	107.02	103.41	108.20	110.47	114.04	110.94	108.69	110.81
Free cash flow, MSEK	1,006	-710	-1,074	-316	553	-940	-748	-325
Free cash flow per share after dilution, SEK ³⁾	9.47	-6.64	-10.00	-2.95	5.07	-8.61	-6.85	-2.98
1) Measured over a rolling 12-month period
2) Number of shares excluding treasury shares				105,499,980 105,377,052 106,604,525 106,494,139 106,414,144 106,270,662 106,123,078 105,934,201
3) Average number of shares after dilution				106,239,161 106,888,805 107,422,230 107,299,002 109,150,344 109,150,344 109,150,344 109,150,344

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11).

As of 2014, the dilution of shares is calculated based on the effects of all potential shares (Share Matching Plan and Performance Share Plan) that give rise to a dilution effect. Previously, a simplified method was used where the dilution effect was calculated based on all treasury shares.

QUARTERLY INFORMATION PER BUSINESS AREA

MSEK	Q4 2014	Operating margin	Q3 2014	Operating margin	Q2 2014	Operating margin	Q1 2014	Operating margin
Sales
Aeronautics	2,189		1,323		1,631		1,577
Dynamics	929		599		730		716
Electronic Defence Systems	1,361		1,062		1,232		974
Security and Defence Solutions	1,999		1,367		1,240		1,156
Support and Services	1,039		794		898		839
Combitech	462		347		419		421
Corporate	-		-		-		1
Internal sales	-554		-362		-458		-404
Total	7,425		5,130		5,692		5,280
Operating income/loss
Aeronautics	198	9.0%	46	3.5%	118	7.2%	118	7.5%
Dynamics	127	13.7%	-26	-4.3%	36	4.9%	28	3.9%
Electronic Defence Systems	95	7.0%	95	8.9%	51	4.1%	-36	-3.7%
Security and Defence Solutions	222	11.1%	71	5.2%	75	6.0%	-12	-1.0%
Support and Services	124	11.9%	43	5.4%	122	13.6%	87	10.4%
Combitech	34	7.4%	9	2.6%	24	5.7%	25	5.9%
Corporate	-42		20		-53		60
Total	758	10.2%	258	5.0%	373	6.6%	270	5.1%

MSEK	Q4 2013	Operating margin	Q3 2013	Operating margin	Q2 2013	Operating margin	Q1 2013	Operating margin
Sales
Aeronautics	1,996		1,391		1,717		1,765
Dynamics	1,183		535		971		877
Electronic Defence Systems	1,413		950		1,046		1,151
Security and Defence Solutions	1,650		1,060		1,288		1,097
Support and Services	1,168		802		931		871
Combitech	500		337		424		423
Corporate	-		-		-		-
Internal sales	-631		-352		-491		-322
Total	7,279		4,723		5,886		5,862
Operating income/loss
Aeronautics	102	5.1%	117	8.4%	121	7.0%	116	6.6%
Dynamics	190	16.1%	-36	-6.7%	128	13.2%	84	9.6%
Electronic Defence Systems	-71	-5.0%	25	2.6%	-57	-5.4%	-12	-1.0%
Security and Defence Solutions	124	7.5%	44	4.2%	67	5.2%	-22	-2.0%
Support and Services	153	13.1%	105	13.1%	138	14.8%	102	11.7%
Combitech	54	10.8%	17	5.0%	33	7.8%	44	10.4%
Corporate	-18		- 6		-281		84
Total	534	7.3%	266	5.6%	149	2.5%	396	6.8%

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11) and to the structural change described in note 14.

Sales related to Combitech in quarters 1-3 have been adjusted for sales where Combitech has acted as agent on behalf of Group companies.

MULTI-YEAR OVERVIEW

MSEK	2014	2013	2012	2011	2010
Order bookings	22,602	49,809	20,683	18,907	26,278
Order backlog at 31 December	60,128	59,870	34,151	37,172	41,459
Sales	23,527	23,750	24,010	23,498	24,434
Sales in Sweden, %	45	41	36	37	38
Sales in EU excluding Sweden, %	16	17	19	19	19
Sales in Americas, %	12	13	12	8	9
Sales in Rest of the world, %	27	30	33	36	34
Operating income (EBIT)	1,659	1,345	2,050	2,941	975
Operating margin, %	7.1	5.7	8.5	12.5	4.0
EBITDA	2,523	2,367	3,186	4,088	2,187
EBITDA margin, %	10.7	10.0	13.3	17.4	9.0
Income after financial items	1,523	979	2,003	2,783	776
Net income for the year	1,168	742	1,560	2,217	454
Total assets	29,556	27,789	28,938	31,799	29,278
Free cash flow	-1,094	-1,460	-396	2,477	4,349
Return on capital employed, %	11.1	9.1	14.6	22.2	7.9
Return on equity, %	9.9	6.3	12.8	18.1	4.1
Equity/assets ratio, %	38.5	44.0	39.0	41.1	39.1
Earnings per share before dilution, SEK ²⁾ ⁴⁾	10.86	6.98	15.00	21.19	4.12
Earnings per share after dilution, SEK ³⁾ ⁴⁾	10.78	6.79	14.52	20.38	3.97
Dividend per share, SEK	4.75⁵⁾	4.50	4.50	4.50	3.50
Equity per share, SEK ¹⁾	107.02	114.04	105.43	122.94	107.66
Number of employees at year-end	14,716	14,140	13,968	13,068	12,536

1) Number of shares excluding treasury shares as of 31 December 2014: 105,499,980; 2013: 106,414,144; 2012: 105,930,829; 2011: 105,331,958; 2010: 104,717,729.

2) Average number of shares 2014: 106,125,666; 2013: 106,125,107; 2012: 105,632,911; 2011: 104,982,315; 2010: 105,217,786.

3) Average number of shares 2014: 106,916,255; 2010-2013: 109,150,344.

4) Net income for the year less non-controlling interest divided by the average number of shares.

5) Proposed dividend

2013 has been restated according to the changed accounting principles for joint arrangements (IFRS 11). 2012 has been restated according to the changed accounting principles for pensions (IAS 19). Financials for 2011 and earlier periods are not restated.

KEY RATIOS AND TARGETS

	Long-term target	Full Year 2014	Full Year 2013
Organic sales growth, %	5	- 3	- 2
Operating margin, %	10	7.1	5.7
Equity/assets ratio, %	30	38.5	44.0

PARENT COMPANY INCOME STATEMENT

MSEK	Full Year 2014	Full Year 2013	Q4 2014	Q4 2013
Sales	16,175	16,521	5,000	4,966
Cost of goods sold	-11,869	-12,556	-3,543	-3,870
Gross income	4,306	3,965	1,457	1,096
Gross margin, %	26.6	24.0	29.1	22.1
Operating income and expenses	-3,106	-3,303	-815	-860
Operating income (EBIT)	1,200	662	642	236
Operating margin, %	7.4	4.0	12.8	4.8
Financial income and expenses	706	707	489	193
Income after financial items	1,906	1,369	1,131	429
Appropriations	-419	-284	-419	-284
Income before taxes	1,487	1,085	712	145
Taxes	-317	-200	-125	-73
Net income for the period	1,170	885	587	7 2

Parent company

Sales and income Liquidity, financing, capital expenditures and number of employees

PARENT COMPANY BALANCE SHEET

MSEK	Note	31 Dec 2014	31 Dec 2013
ASSETS
Fixed assets:
Intangible fixed assets		1,117	1,392
Tangible fixed assets		2,574	2,279
Financial fixed assets		8,059	7,695
Total fixed assets		11,749	11,366
Current assets
Inventories, etc.		4,490	3,653
Current receivables		8,250	6,738
Short term investments		1,270	1,990
Liquid assets		377	1,268
Total current assets		14,387	13,649
TOTAL ASSETS		26,136	25,015
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity		2,983	2,989
Unrestricted equity		5,486	4,992
Total shareholders' equity		8,469	7,981
Provisions and liabilities:
Untaxed reserves		1,979	1,560
Provisions		778	1,051
Liabilities	6	14,910	14,423
Total provisions and liabilities		17,667	17,034
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		26,136	25,015

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 Corporate information

NOTE 2 Accounting principles

NOTE 3 Segment reporting

Aeronautics

Dynamics

Electronic Defence Systems

Security and Defence Solutions

Support and Services

Combitech

Order bookings per business area

	Full Year	Full Year	Change,	Q4	Q4
MSEK	2014	2013	%	2014	2013
Aeronautics	6,890	29,677	-77	5,849	18,266
Dynamics	2,325	3,345	-30	1,068	1,637
Electronic Defence Systems	2,943	7,587	-61	987	2,214
Security and Defence
Solutions	6,110	4,736	29	2,210	1,807
Support and Services	4,720	4,602	3	2,635	965
Combitech	1,494	1,740	-14	403	531
Internal	-1,880	-1,878		-749	-640
Total	22,602	49,809	-55	12,403	24,780

Order backlog per business area

MSEK	31 Dec 2014	31 Dec 2013
Aeronautics	34,283	34,113
Dynamics	3,915	4,548
Electronic Defence Systems	7,619	9,171
Security and Defence Solutions	6,823	5,571
Support and Services	7,976	6,683
Combitech	387	540
Internal	-875	-756
Total	60,128	59,870

NOTE 3 Continued

Large orders received
(approx. values MSEK)	Country	Order value
Gripen E support and maintenance systems	Sweden	5,800
Extended Gripen lease in the Czech Republic Construction and production plans for the next	Sweden	576
generation submarines	Sweden	467
A26 and Gotland-class submarine sensor systems Maintenance, technical system support and spare parts	Sweden	420
for Gripen	Sweden	385
Development order for Gripen E	Sweden	385
Military training systems	Finland	360
Civil marine traffic services system	Hong Kong	360
Gripen development and operational support	Sweden	355

Large orders received (approx. Values MSEK)	Country	Order value
Aerial target services	Sweden	300
Shoulder-launched weapon system Roquette NG	France	295
Missile subsystems		250
Support and service of weapon simulators	UK	220
Military training systems	UK	200
Support and maintenance of Gripen	Sweden	174
Security systems for correctional centre	Australia	166
Development and serial deliveries of vehicle simulators	Norway	142
Overhaul of the submarine HMS Halland	Sweden	130
Overhaul of submarine HMS Södermanland	Sweden	121

Sales per business area

MSEK	Full Year 2014	Full Year 2013	Change, %	Q4 2014	Q4 2013	Change, %
Aeronautics	6,720	6,869	- 2	2,189	1,996	10
of which external sales	6,508	6,703	- 3	2,109	1,941	9
of which internal sales	212	166	28	80	55	45
Dynamics	2,974	3,566	-17	929	1,183	-21
of which external sales	2,840	3,430	-17	888	1,127	-21
of which internal sales	134	136	- 1	41	56	-27
Electronic Defence Systems	4,629	4,560	2	1,361	1,413	- 4
of which external sales	4,205	4,050	4	1,230	1,220	1
of which internal sales	424	510	-17	131	193	-32
Security and Defence Solutions	5,762	5,095	13	1,999	1,650	21
of which external sales	5,635	4,991	13	1,962	1,622	21
of which internal sales	127	104	22	37	28	32
Support and Sercvices	3,570	3,772	- 5	1,039	1,168	-11
of which external sales	3,371	3,571	- 6	979	1,081	- 9
of which internal sales	199	201	- 1	60	87	-31
Combitech	1,649	1,684	- 2	462	500	- 8
of which external sales	982	925	6	256	253	1
of which internal sales	667	759	-12	206	247	-17
Corporate/eliminations	-1,777	-1,796		-554	-631
of which external sales	-14	80		1	35
of which internal sales	-1,763	-1,876		-555	-666
Total	23,527	23,750	- 1	7,425	7,279	2

Sales per geographical market Information on large customers

MSEK	Full Year 2014	% of sales	Full Year 2013	% of sales
Sweden	10,512	45	9,814	41
Rest of EU	3,770	16	3,933	17
Rest of Europe	592	3	621	3
Total Europe	14,874	64	14,368	60
North America	2,387	10	2,611	11
Latin America	508	2	376	2
Asia	4,007	17	4,311	18
Africa	573	2	930	4
Australia, etc.	1,178	5	1,154	5
Total	23,527	100	23,750	100

Seasonal variation

Operating income per business area

MSEK	Full Year 2014	% of sales	Full Year 2013	% of sales	Q4 2014	Q4 2013
Aeronautics	480	7.1	456	6.6	198	102
Dynamics	165	5.5	366	10.3	127	190
Electronic Defence Systems	205	4.4	-115	-2.5	95	-71
Security and Defence Solutions	356	6.2	213	4.2	222	124
Support and Services	376	10.5	498	13.2	124	153
Combitech	92	5.6	148	8.8	34	54
The business area's
total operating income	1,674	7.1	1,566	6.6	800	552
Corporate	-15		-221		-42	-18
Total	1,659	7.1	1,345	5.7	758	534

Depreciation/amortisation and write-downs per business area

MSEK	2014	Full Year Full Year 2013	Change, %	Q4 2014	Q4 2013
Aeronautics	59	147	-60	15	37
Dynamics	61	62	-2	15	19
Electronic Defence Systems	417	488	-15	107	132
Security and Defence Solutions	112	115	-3	36	29
Support and Services	18	19	-5	4	5
Combitech	8	9	-11	2	2
Corporate – lease aircraft	8	25	-68	1	2
Corporate – other	189	182	4	50	52
Total	872	1,047	-17	230	278

Operational cash flow per business area

	Full Year	Full Year	Q4	Q4
MSEK	2014	2013	2014	2013
Aeronautics	-656	-227	-335	190
Dynamics	-69	503	108	87
Electronic Defence Systems	-677	116	107	224
Security and Defence Solutions	157	122	482	214
Support and Services	-32	-149	58	36
Combitech	76	162	44	20
Corporate	4	-1,166	289	-223
Total	-1,197	-639	753	548

Capital employed per business area

MSEK	31 Dec 2014	31 Dec 2013
Aeronautics	2,689	2,447
Dynamics	2,186	2,007
Electronic Defence Systems	4,743	4,294
Security and Defence Solutions	4,257	3,994
Support and Services	2,214	2,479
Combitech	496	505
Corporate	-256	-261
Total	16,329	15,465

Full time equivalents (FTE's) per business area

Aeronautics	3,263	3,210
Dynamics	1,461	1,523
Electronic Defence Systems	2,550	2,588
Security and Defence Solutions	3,234	2,843
Support and Services	1,818	1,840
Combitech	1,405	1,345
Corporate	830	773
Total	14,561	14,122

Number at end of the year 31 Dec 2014 31 Dec 2013

NOTE 4 Dividend to Parent Company's shareholders

NOTE 5 Intangible fixed assets

MSEK	31 Dec 2014	31 Dec 2013
Goodwill	5,015	4,605
Capitalised development costs	952	1,338
Other intangible assets	384	397
Total	6,351	6,340

NOTE 6 Net liquidity

MSEK	31 Dec 2014	31 Dec 2013
Assets:
Liquid assets	1,284	1,764
Short-term investments	1,270	2,002
Total liquid investments	2,554	3,766
Short-term interest-bearing receivables	5	33
Long-term interest-bearing receivables	83	75
Long-term receivables attributable to pensions	59	36
Long-term interest-bearing financial investments	142	141
Total interest-bearing assets	2,843	4,051
Liabilities:
Liabilities to credit institutions	2,001	1,001
Liabilities to associated companies and joint ventures	244	244
Other interest-bearing liabilities	124	568
Provisions for pensions ¹⁾	2,587	1,425
Total interest-bearing liabilities and provisions for
pensions	4,956	3,238
Net liquidity / debt	-2,113	813

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

NOTE 6 Continued

Committed credit lines				Parent Company
MSEK	Facilities	Drawings	Available
Revolving credit facility (Maturity 2016)	4,000	-	4,000
Overdraft facility (Maturity 2014) Total	95 4,095	1 1	94 4,094

MSEK		31 Dec 2014 31 Dec 2013
Long-term liabilities to credit institutions	2,000	1,000
Short-term liabilities to credit institutions	-	-
Total	2,000	1,000

NOTE 7 Financial instruments

Classification and categorisation of financial assets and liabilities*

31 Dec 2014	Fair value through profit and loss for trading	Fair value through other comprehen sive income as available for sale	Designated as at fair value through profit and loss	Held-to maturity investments	Loans receivable and accounts receivable	Financial liabilities	Derivatives identified as cash flow hedges	Derivatives identified as fair value hedges	Total financial assets and liabilities	Measured at fair value
Financial assets:
Financial investments	-	121	29	142	-	-	-	-	292	294
Long-term receivables	-	-	-	-	152	-	-	-	152	152
Derivatives
Forward exchange contracts	14	-	-	-	-	-	401	7	422	422
Currency options	45	-	-	-	-	-	-	-	45	45
Interest rate swaps	-	-	-	-	-	-	-	-	-	-
Electricity derivatives	2	-	-	-	-	-	-	-	2	2
Total derivatives	61	-	-	-	-	-	401	7	469	469
Accounts receivable and other receivables	-	-	-	-	8,152	-	-	-	8,152	8,152
Short-term investments	-	-	1,270	-	-	-	-	-	1,270	1,270
Liquid assets	-	-	-	-	1,284	-	-	-	1,284	1,284
Total financial assets	61	121	1,299	142	9,588	-	401	7	11,619	11,621
Financial liabilities:
Interest-bearing liabilities	-	-	-	-	-	2,369	-	-	2,369	2,406
Derivatives
Forward exchange contracts	61	-	-	-	-	-	1,192	5	1,258	1,258
Currency options	48	-	-	-	-	-	-	-	48	48
Interest rate swaps	9	-	-	-	-	-	78	-	87	87
Electricity derivatives	2	-	-	-	-	-	5	-	7	7
Total derivatives	120	-	-	-	-	-	1,275	5	1,400	1,400
Other liabilities	-	-	-	-	-	5,243	-	-	5,243	5,243
Total financial liabilities	120	-	-	-	-	7,612	1,275	5	9,012	9,049

* 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 MSEK 415.

Valuation methods for financial assets and liabilities

NOTE 7 Continued

Assets at fair value

MSEK	31 Dec 2014	Level 1	Level 2	Level 3
Bonds and interest-bearing
securities	1,270	1,270	-	-
Forward exchange contracts	422	-	422	-
Currency options	45	-	45	-
Interest rate swaps	-	-	-	-
Electricity derivatives	2	2	-	-
Shares and participations	150	121	-	29
Total	1,889	1,393	467	29
Liabilities at fair value
MSEK	31 Dec 2014	Level 1	Level 2	Level 3
Forward exchange contracts	1,258	-	1,258	-
Currency options	48	-	48	-
Interest rate swaps	87	-	87	-
Electricity derivatives	7	7	-	-
Total	1,400	7	1,393	-

NOTE 8 Supplemental information on Statement of cash flows

Liquid assets
MSEK	31 Dec 2014	31 Dec 2013
The following components are included in liquid assets:
Cash and bank balances	1,284	651
Bank deposits	-	1,113
Total according to balance sheet	1,284	1,764
Total according to statement of cash flows	1,284	1,764

Free cash flow vs. statement of cash flows

MSEK	Full Year 2014	Full Year 2013
Free cash flow	-1,094	-1,460
Investing activities – interest-bearing:
Short-term investments	720	1,936
Other financial investments and receivables	21	8
Dividend from joint ventures	-	430
Financing activities:
Repayments of loans	-468	-1,100
Raising of loans	1,000	845
Repurchase of shares	-252	-
Dividend paid to the Parent Company's shareholders	-479	-477
Dividend paid to non-controlling interest	-5	-1
Cash flow for the period	-557	181

Specification of free cash flow

	Saab excl.	Acquisitions
MSEK	Acquisitions/ divestments	and divestments	Total Group Jan-Dec 2014	Total Group Jan-Dec 2013
Cash flow from operating activities before changes in working capital ¹⁾	2,221	-	2,221	2,342
Cash flow from changes in working capital:
Inventories	-856	-	-856	-147
Current receivables	-282	-	-282	-1,346
Advance payments from customers	21	-	21	278
Other current liabilities	-914	-	-914	-1,005
Provisions	-536	-	-536	-277
Change in working capital	-2,567	-	-2,567	-2,497
Cash flow from operating activities ²⁾	-346	-	-346	-155
Investing activities:
Investments in intangible fixed assets	-239	-	-239	-68
Investments in tangible fixed assets	-732	-	-732	-543
Sales and disposals of tangible fixed assets	15	-	15	46
Sales and disposals of lease assets	105	-	105	81
Cash flow from investing activities ³⁾	-851	-	-851	-484
Operational cash flow	-1,197	-	-1,197	-639
Taxes and other financial items	-367	-	-367	-506
Sale of and investments in shares etc.	19	-	19	-247
Acquisitions of subsidiaries and associated companies	-	152	152	-68
Sale of subsidiaries and associated companies	-	299	299	-
Free cash flow	-1,545	451	-1,094	-1,460

1) Cash flow from operating activities before changes in working capital excluding taxes and other financial items.

2) Cash flow from operating activities excluding taxes and other financial items.

3) 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, investments in operations and associated companies and sale of subsidiaries and associated companies.

Preliminary Purchase Analysis

	MSEK
Purchase price
Purchase price paid 22 July	340
Total consideration	340
Effect on liquid assets
Purchase price paid 22 July	340
Less: Liquid assets in the acquired company	-540
Effect on liquid assets (positive (-) / negative (+))	-200

Fair value of identifiable assets and liabilities at the date of

the acquisition was:
Intangible fixed assets	41
Tangible fixed assets	157
Financial fixed assets	12
Deferred tax assets	281
Current assets	407
Liquid assets	540
Total assets	1,438
Provision for pensions	186
Other provisions	601
Other liabilities	529
Total liabilities	1,316
Total identifiable net assets at fair value	122
Goodwill	218
Purchase consideration	340

NOTE 10 Defined-benefit plans

NOTE 11 Contingent liabilities

NOTE 12 Transactions with related parties

NOTE 13 Effects of amended accounting principles regarding joint ventures

Year-end 2013

	31 Dec 2013 Adjustment		31 Dec 2013
MSEK	Actual	IFRS 11	Restated
Fixed assets	11,104	-7	11,097
Shares in joint ventures	-	29	29
Current assets	16,801	-138	16,663
Total assets	27,905	-116	27,789
Total equity	12,227	-	12,227
Long-term liabilities	4,498	-	4,498
Current liabilities	11,180	-116	11,064
Total liabilities	15,678	-116	15,562
Total equity and liabilities	27,905	-116	27,789

NOTE 14 Restated accounting 2013 regarding new structure

Order bookings 2013

MSEK	Jan-Dec Actual	Adjustment structural change	Jan-Dec restated
Aeronautics	29,677	-	29,677
Dynamics	3,350	-5	3,345
EDS	7,620	-33	7,587
SDS	5,429	-693	4,736
S&S	3,942	660	4,602
Combitech	1,634	106	1,740
Internal	-1,843	-35	-1,878
Total	49,809	-	49,809

Sales 2013

MSEK	Jan-Dec Actual	Adjustment structural change	Jan-Dec restated
Aeronautics	6,869	-	6,869
Dynamics	3,572	-6	3,566
EDS	4,161	399	4,560
SDS	5,891	-796	5,095
S&S	3,419	353	3,772
Combitech	1,598	86	1,684
Corporate/Internal	-1,760	-36	-1,796
Total	23,750	-	23,750

Operating income/loss (EBIT) 2013

MSEK	Jan-Dec Actual	Adjustment structural change	Jan-Dec restated
Aeronautics	456	-	456
Dynamics	324	42	366
EDS	-201	86	-115
SDS	428	-215	213
S&S	364	134	498
Combitech	140	8	148
Corporate	-166	-55	-221
Total	1,345	-	1,345

Order backlog 2013

MSEK	31 Dec Actual	Adjustment structural change	31 Dec restated
Aeronautics	34,113	-	34,113
Dynamics	4,549	-1	4,548
EDS	8,764	407	9,171
SDS	6,529	-958	5,571
S&S	6,186	497	6,683
Combitech	483	57	540
Internal	-754	-2	-756
Total	59,870	-	59,870

EBITDA 2013

MSEK	Jan-Dec Actual	Adjustment structural change	Jan-Dec restated
Aeronautics	603	-	603
Dynamics	386	42	428
EDS	287	86	373
SDS	556	-228	328
S&S	383	134	517
Combitech	148	9	157
Corporate	4	-43	-39
Total	2,367	-	2,367

NOTE 15 Restated accounting 2014 regarding new structure

Order backlog 2014

MSEK	31 Mar Actual	Adjustment structural change	31 Mar restated
Aeronautics	33,167	-8,609	24,558
Dynamics	4,278	-	4,278
EDS	9,129	-1,311	7,818
SDS	5,666	-	5,666
S&S	6,590	-	6,590
Combitech	512	-512	-
IPS	-	10,432	10,432
Internal	-734	-	-734
Total	58,608	-	58,608

MSEK	30 Jun Actual	Adjustment structural change	30 Jun restated
Aeronautics	31,896	-8,322	23,574
Dynamics	3,978	-	3,978
EDS	8,582	-1,377	7,205
SDS	6,307	-	6,307
S&S	6,725	-	6,725
Combitech	497	-497	-
IPS	-	10,195	10,195
Internal	-805	1	-804
Total	57,180	-	57,180

MSEK	30 Sep Actual	Adjustment structural change	30 Sep restated
Aeronautics	30,624	-8,115	22,509
Dynamics	3,769	-	3,769
EDS	7,907	-1,316	6,591
SDS	6,494	-	6,494
S&S	6,338	-	6,338
Combitech	446	-446	-
IPS	-	9,876	9,876
Internal	-668	1	-667
Total	54,910	-	54,910

MSEK	31 Dec Actual	Adjustment structural change	31 Dec restated
Aeronautics	34,283	-7,895	26,388
Dynamics	3,915	-	3,915
EDS	7,619	-1,254	6,365
SDS	6,823	-	6,823
S&S	7,976	-	7,976
Combitech	387	-387	-
IPS	-	9,537	9,537
Internal	-875	-1	-876
Total	60,128	-	60,128

MSEK	Q2 Actual	Adjustment structural change	Q2 restated
Aeronautics	360	-50	310
Dynamics	400	-	400
EDS	649	-202	447
SDS	1,752	-	1,752
S&S	1,009	-	1,009
Combitech	403	-403	-
IPS	-	645	645
Internal	-525	10	-515
Total	4,048	-	4,048

MSEK	Q3 Actual	Adjustment structural change	Q3 restated
Aeronautics	50	-116	-66
Dynamics	408	-	408
EDS	369	-47	322
SDS	827	-	827
S&S	339	-	339
Combitech	296	-296	-
IPS	-	453	453
Internal	-216	6	-210
Total	2,073	-	2,073

MSEK	Q4 Actual	Adjustment structural change	Q4 restated
Aeronautics	5,849	-137	5,712
Dynamics	1,068	-	1,068
EDS	987	-140	847
SDS	2,210	-	2,210
S&S	2,635	-	2,635
Combitech	403	-403	-
IPS	-	673	673
Internal	-749	7	-742
Total	12,403	-	12,403

MSEK	Full Year Actual	Adjustment structural change	Full Year restated
Aeronautics	6,890	-677	6,213
Dynamics	2,325	-	2,325
EDS	2,943	-459	2,484
SDS	6,110	-	6,110
S&S	4,720	-	4,720
Combitech	1,494	-1,494	-
IPS	-	2,604	2,604
Internal	-1,880	26	-1,854
Total	22,602	-	22,602

Q1 Adjustment Q1 MSEK Actual structural change restated Aeronautics 1,577 -249 1,328 Dynamics 716 - 716 EDS 974 -122 852 SDS 1,156 - 1,156 S&S 839 - 839 Combitech 421 -421 - IPS - 787 787 Corporate/Internal -403 5 -398 Total 5,280 - 5,280

MSEK	Q2 Actual	Adjustment structural change	Q2 restated
Aeronautics	1,631	-336	1,295
Dynamics	730	-	730
EDS	1,232	-139	1,093
SDS	1,240	-	1,240
S&S	898	-	898
Combitech	419	-419	-
IPS	-	888	888
Corporate/Internal	-458	6	-452
Total	5,692	-	5,692

MSEK	Q3 Actual	Adjustment structural change	Q3 restated
Aeronautics	1,323	-325	998
Dynamics	599	-	599
EDS	1,062	-109	953
SDS	1,367	-	1,367
S&S	794	-	794
Combitech	347	-347	-
IPS	-	773	773
Corporate/Internal	-362	8	-354
Total	5,130	-	5,130

MSEK	Q4 Actual	Adjustment structural change	Q4 restated
Aeronautics	2,189	-356	1,833
Dynamics	929	-	929
EDS	1,361	-207	1,154
SDS	1,999	-	1,999
S&S	1,039	-	1,039
Combitech	462	-462	-
IPS	-	1,017	1,017
Corporate/Internal	-554	8	-546
Total	7,425	-	7,425

MSEK	Full Year Actual	Adjustment structural change	Full Year restated
Aeronautics	6,720	-1,266	5,454
Dynamics	2,974	-	2,974
EDS	4,629	-577	4,052
SDS	5,762	-	5,762
S&S	3,570	-	3,570
Combitech	1,649	-1,649	-
IPS	-	3,465	3,465
Corporate/Internal	-1,777	27	-1,750
Total	23,527	-	23,527

Sales 2014 EBITDA 2014

MSEK	Q1 Actual	Adjustment structural change	Q1 restated
Aeronautics	133	-16	117
Dynamics	43	-	43
EDS	68	10	78
SDS	11	-	11
S&S	91	-	91
Combitech	27	-27	-
IPS	-	20	20
Corporate	103	13	116
Total	476	-	476

MSEK	Q2 Actual	Adjustment structural change	Q2 restated
Aeronautics	133	-14	119
Dynamics	52	-	52
EDS	156	-2	154
SDS	98	-	98
S&S	127	-	127
Combitech	26	-26	-
IPS	-	27	27
Corporate	-9	15	6
Total	583	-	583

MSEK	Q3 Actual	Adjustment structural change	Q3 restated
Aeronautics	60	-27	33
Dynamics	-11	-	-11
EDS	196	5	201
SDS	101	-	101
S&S	48	-	48
Combitech	11	-11	-
IPS	-	9	9
Corporate	72	24	96
Total	477	-	477

MSEK	Q4 Actual	Adjustment structural change	Q4 restated
Aeronautics	213	-43	170
Dynamics	142	-	142
EDS	202	-10	192
SDS	258	-	258
S&S	128	-	128
Combitech	36	-36	-
IPS	-	87	87
Corporate	8	2	10
Total	987	-	987

MSEK	Full Year Actual	Adjustment structural change	Full Year restated
Aeronautics	539	-100	439
Dynamics	226	-	226
EDS	622	3	625
SDS	468	-	468
S&S	394	-	394
Combitech	100	-100	-
IPS	-	143	143
Corporate	174	54	228
Total	2,523	-	2,523

Operating income/loss (EBIT) 2014

MSEK	Q1 Actual	Adjustment structural change	Q1 restated
Aeronautics	118	-11	107
Dynamics	28	-	28
EDS	-36	11	-25
SDS	-12	-	-12
S&S	87	-	87
Combitech	25	-25	-
IPS	-	12	12
Corporate	60	13	73
Total	270	-	270

MSEK	Q2 Actual	Adjustment structural change	Q2 restated
Aeronautics	118	-10	108
Dynamics	36	-	36
EDS	51	-1	50
SDS	75	-	75
S&S	122	-	122
Combitech	24	-24	-
IPS	-	20	20
Corporate	-53	15	-38
Total	373	-	373

MSEK	Q3 Actual	Adjustment structural change	Q3 restated
Aeronautics	46	-23	23
Dynamics	-26	-	-26
EDS	95	5	100
SDS	71	-	71
S&S	43	-	43
Combitech	9	-9	-
IPS	-	1	1
Corporate	20	26	46
Total	258	-	258

MSEK	Q4 Actual	Adjustment structural change	Q4 restated
Aeronautics	198	-38	160
Dynamics	127	-	127
EDS	95	-9	86
SDS	222	-	222
S&S	124	-	124
Combitech	34	-34	-
IPS	-	79	79
Corporate	-42	2	-40
Total	758	-	758

MSEK	Full Year Actual	Adjustment structural change	Full Year restated
Aeronautics	480	-82	398
Dynamics	165	-	165
EDS	205	6	211
SDS	356	-	356
S&S	376	-	376
Combitech	92	-92	-
IPS	-	112	112
Corporate	-15	56	41
Total	1,659	-	1,659

Capital employed

Earnings per share

EBITDA

EBITDA margin

Equity/assets ratio

Equity per share

Gross margin

Net liquidity/net debt

Free cash flow per share

Operating margin

Return on capital employed

Return on equity

GLOSSARY

EDA

EKN

FMV

FRN

FTE

IAS

IFRS

MTN

RBS

ROV

SAL

TKMS

VSHORAD

U.S. SOCOM

Linköping 10 February 2015 Saab AB (publ) The Board of Directors

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

Saab AB is disclosing the information here in pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 7:30 (CET) on 10 February 2015.

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Press and financial analyst conference 10 February 2015 at 10.00 (CET) Grand Hôtel, Venue: New York, Blasieholmshamnen 8, Stockholm

Contact Marie Bergström to register and more information, ph +46-8-463 02 45, www.saabgroup.com

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The year-end report, the presentation material and the webcast will be available on http://www.saabgroup.com/en/InvestorRelations.

CONTACT CALENDAR

ANNUAL GENERAL MEETING 15 APRIL 2015

INTERIM REPORT JANUARY–MARCH 2015 PUBLISHED 24 APRIL 2015

CAPITAL MARKETS DAY 13 MAY 2015

INTERIM REPORT JANUARY–JUNE 2015 PUBLISHED 17 JULY 2015

INTERIM REPORT JANUARY–SEPTEMBER 2015 PUBLISHED 23 OCTOBER 2015

YEAR-END REPORT 2015 PUBLISHED 10 FEBRUARY 2016