SAAB — Interim / Quarterly Report 2016

Oct 25, 2016

LOOKING TO THE FUTURE

Market development

Order bookings and sales

Operating income

Unchanged outlook for 2016

INTERIM REPORT JANUARY-SEPTEMBER 2016

Håkan Buskhe, President and CEO

UNCHANGED OUTLOOK STATEMENT 2016:

Financial highlights

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	14,960	62,599	-76	3,498	43,603	81,175
Order backlog	109,521	105,486	4			113,834
Sales	19,615	17,116	15	5,761	5,787	27,186
Gross income	4,432	3,956	12	1,352	1,282	6,486
Gross margin, %	22.6	23.1		23.5	22.2	23.9
EBITDA	1,537	1,259	22	462	429	2,859
EBITDA margin, %	7.8	7.4		8.0	7.4	10.5
Operating income (EBIT)	837	553	51	226	186	1,900
Operating margin, %	4.3	3.2		3.9	3.2	7.0
Net income	536	293	83	122	36	1,402
Earnings per share after dilution, SEK	4.76	2.45		1.06	0.24	12.79
Return on equity, % ¹⁾	13.8	7.8				11.5
Operational cash flow	1,922	-1,153		-2,271	653	-500
Free cash flow	1,740	-1,595		-2,311	487	-726
Free cash flow per share after dilution, SEK	16.28	-14.99		-21.59	4.57	-6.82

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

Significant orders, quarter 3

RBS70 NG VSHORAD 378

total orders during the period.

Large orders Orders exceeding MSEK 100 accounted for 48% (87) of

Order backlog duration:

Defence/Civil A total of 84% (96) of order bookings was attributable to defencerelated operations in the period.

Market A total of 61% (79) of order bookings was related to markets outside Sweden in the period.

Sales, MSEK

Orders Third quarter 2016

MSEK

January-September 2016

Sales Third quarter 2016

January-September 2016

Sales growth Per cent Jan-Sep 2016 Jan-Sep 2015 Q3 2016 Q3 2015 Full Year 2015

Total sales growth	15	6	0	13	16
Currency effects regarding revaluation of foreign subsidiaries	-1	2	0	2	2
Acquisitions	0	4	0	0	3
Organic sales growth	16	0	0	11	11

Sales per market segment

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %
Air	8,873	7,257	22
Land	4,175	3,494	19
Naval	3,370	2,995	13
Civil Security	1,409	1,492	-6
Commercial Aeronautics	1,482	1,564	-5
Other	306	314	-3
Total	19,615	17,116	15

Gross margin, %

Jan-Sep 2013 Jan-Sep 2014 Jan-Sep 2015 Jan-Sep 2016

Operating margin, %

Jan-Sep 2013 Jan-Sep 2014 Jan-Sep 2015 Jan-Sep 2016

Earnings per share after

Change in net debt Jan-Sep 2016

MSEK Net liquidity (+) / net debt (-), 31 Dec 2015 -3,217 Cash flow from operating activities 2,875 Change in net pension obligation -1,033 Net investments -1,188 Sale of subsidiaries and acquisitions of operations 55 Dividend -530 Currency impact and unrealised results from financial investments 71 Net liquidity (+) / net debt (-), 30 Sep 2016 -2,967

Income Third quarter 2016

January-September 2016

Financial net

MSEK	Jan-Sep 2016	Jan-Sep 2015
Financial net related to pensions	-47	-49
Net interest items	14	-50
Currency gains/losses	-11	-52
Other financial items	-84	-7
Total	-128	-158

Tax

Return on capital employed and equity

Financial position and liquidity

Formatted: Indent: First line: 0,3 cm

Capital expenditures

Cash flow

1,740

	Total Group Jan-Sep 2016	Total Group Jan-Sep 2015
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items	1,772	1,019
Change in working capital	1,338	-1,390
Cash flow from operating activities excluding taxes and other financial items	3,110	-371
Cash flow from investing activities ¹⁾	-1,188	-782
Operational cash flow	1,922	-1,153
Taxes and other financial items Sales and acquisitions	-235 53	-428 -14
Free cash flow	1,740	-1,595

1) 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 sale of subsidiaries. If investments in and sale of financial fixed assets are considered to be of operating nature, the item is included in investing activities.

Key indicators of financial position and liquidity

MSEK	30 Sep 2016	31 Dec 2015	Change	30 Sep 2015
Net liquidity / debt ¹⁾	-2,967	#REF! -3,217	250	-4,327
Intangible fixed assets	6,845	6,476	369	6,250
Goodwill	5,115	5,045	70	5,072
Capitalised development costs	1,492	1,157	335	865
Other intangible fixed assets	238	274	-36	313
Tangible fixed assets, etc ²⁾	4,941	4,796	145	4,737
Inventories	6,572	5,243	1,329	6,914
Accounts receivable	3,695	2,913	782	3,078
Other receivables	6,190	8,102	-1,912	5,034
Amounts due from customers ³⁾	5,664	7,549	-1,885	4,529
Advance payments from customers	3,522	1,098	2,424	998
Equity/assets ratio, %	32.5	36.8		35.1
Return on equity, %	13.8	11.5		7.8
Equity per share, SEK ⁴⁾	113.88	121.28	-7.40	108.36

1) 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 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, biological assets and investment properties.

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

4) Number of shares excluding treasury shares; 2016 Sep: 106,287,119; 2015 Sep: 105,843,298; 2015 Dec: 105,957,065.

Free cash flow, MSEK

Jan-Sep 2013 Jan-Sep 2014 Jan-Sep 2015 Jan-Sep 2016

Operating segments

BUSINESS AREA AERONAUTICS

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	710	36,350	-98	217	35,689	39,349
Order backlog	55,263	58,590	- 6			59,476
Sales	4,923	4,148	19	1,562	1,686	6,262
EBITDA	350	233	50	162	129	548
EBITDA margin, %	7.1	5.6		10.4	7.7	8.8
Operating income (EBIT)	320	204	57	151	120	509
Operating margin, %	6.5	4.9		9.7	7.1	8.1
Operational cash flow	88	-352		-1,032	-193	-632
Defence/Civil (% of sales)	99/1	99/1		99/1	99/1	99/1
No. of FTE's	2,864	2,699	6			2,723

Sales, income and margin

Cash flow

Market Sales related to markets outside Sweden was 30% (23%) in the period.

Large orders Orders exceeding MSEK 100 was 5% (98%) of total order bookings in the period.

Business units Gripen E, Gripen C/D, Gripen Brazil, Advanced Pilot Training Systems and Operations Contracts.

BUSINESS AREA DYNAMICS

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	5,173	4,163	24	1,165	976	5,273
Order backlog	8,561	6,756	27			6,284
Sales	2,891	2,454	18	775	892	4,009
EBITDA	124	-67		11	46	249
EBITDA margin, %	4.3	-2.7		1.4	5.2	6.2
Operating income (EBIT)	73	-119		- 6	28	175
Operating margin, %	2.5	-4.8		-0.8	3.1	4.4
Operational cash flow	101	-613		-37	-458	-101
Defence/Civil (% of sales)	93/7	86/14		91/9	90/10	89/11
No. of FTE's	2,077	2,062	1			2,041

Orders

Sales, income and margin

Cash flow

Sales related to markets outside Sweden was 82% (81%) in the period.

Business units Ground Combat, Missile Systems, Underwater Systems, Barracuda and Training and Simulation.

BUSINESS AREA SURVEILLANCE

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	3,826	7,718	-50	915	3,677	15,456
Order backlog	16,320	12,676	29			17,707
Sales	5,435	4,692	16	1,583	1,458	7,305
EBITDA	590	376	57	214	129	820
EBITDA margin, %	10.9	8.0		13.5	8.8	11.2
Operating income (EBIT)	218	2	-	90	3	320
Operating margin, %	4.0	-		5.7	0.2	4.4
Operational cash flow	1,760	-290		-195	36	-49
Defence/Civil (% of sales)	82/18	79/21		81/19	77/23	81/19
No. of FTE's	3,745	3,584	4			3,563

Orders

Sales, income and margin

Cash flow

BUSINESS AREA SUPPORT AND SERVICES

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	2,979	4,159	-28	749	2,882	10,557
Order backlog	12,886	9,811	31			13,393
Sales	3,577	3,217	11	967	934	6,012
EBITDA	268	148	81	25	-21	570
EBITDA margin, %	7.5	4.6		2.6	-2.2	9.5
Operating income (EBIT)	256	132	94	21	-27	549
Operating margin, %	7.2	4.1		2.2	-2.9	9.1
Operational cash flow	1,212	-332		-502	-84	-637
Defence/Civil (% of sales)	73/27	68/32		69/31	69/31	77/23
No. of FTE's	2,174	2,188	- 1			2,185

Orders

Sales, income and margin

Cash flow

Market Sales related to markets outside Sweden was 46%

Large orders Orders exceeding MSEK 100 was 26% (57%) of total order bookings in the period.

Business units

Aviation Services, Airborne ISR, Gripen Support, Networks and Public Safety, Tactical Solutions och Maintenance Production.

Large orders

Sales related to markets outside Sweden was 81%

Business units Surface Radar Solutions, Airborne

Surveillance Systems, Electronic Warfare Systems, Traffic Management and Combat Systems and C4I Solutions

BUSINESS AREA INDUSTRIAL PRODUCTS AND SERVICES

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	2,656	2,753	- 4	601	993	3,632
Order backlog	9,718	9,742	-			9,587
Sales	2,539	2,540	-	697	762	3,562
EBITDA	83	139	-40	-13	19	260
EBITDA margin, %	3.3	5.5		-1.9	2.5	7.3
Operating income (EBIT)	56	109	-49	-22	8	213
Operating margin, %	2.2	4.3		-3.2	1.0	6.0
Operational cash flow	-30	-58		11	-26	-15
Defence/Civil (% of sales)	40/60	38/62		39/61	37/63	40/60
No. of FTE's	2,454	2,374	3			2,381

Orders

Business units

the Venture portfolio.

Market Sales related to markets outside Sweden was 44% (46%) in the period.

Large orders Orders exceeding MSEK 100 was 45% (93%) of total order bookings in the period.

Market Sales related to markets outside Sweden was 5% (10%) in the period.

Aerostructures, Avionics Systems, Combitech and

Sales, income and margin

Cash flow

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016	Q3 2015	Full Year 2015
Order bookings	913	9,975	-91	101	242	10,268
Order backlog	9,177	10,235	-10			9,928
Sales	1,665	1,248	33	544	433	1,847
EBITDA	110	272	-60	34	76	262
EBITDA margin, %	6.6	21.8		6.3	17.6	14.2
Operating income (EBIT)	85	247	-66	26	68	228
Operating margin, %	5.1	19.8		4.8	15.7	12.3
Operational cash flow	253	434		26	363	808
Defence/Civil (% of sales)	100/0	100/0		100/0	100/0	100/0
No. of FTE's	840	827	2			803

Orders

Sales, income and margin

Cash flow

Owners

	% of capital	% of votes
Investor AB	30.0	40.5
Knut and Alice
Wallenberg
Foundation	8.7	7.7
Swedbank Robur
funds	5.1	4.5
AFA Insurance	3.6	3.2
Unionen	2.7	2.3
Handelsbanken funds	2.0	1.8
Fidelity funds	1.5	1.4
DFA funds	1.4	1.2
Lannebo funds	1.2	1.1
Norges Bank	0.9	0.8

Personnel

		30 Sep 2016 31 Dec 2015
Number of
employees	14,975	14,685
FTE's	14,980	14,519

Corporate

Acquisitions and divestments 2016

Share repurchase

Risks and uncertainties

SAFE – security system for Swedavia's airports

Other significant events January-September 2016

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

Operating margin

Equity/assets ratio

Dividend

CONSOLIDATED INCOME STATEMENT

MSEK	Note	Jan-Sep 2016		Jan-Sep 2015 Rolling 12 Months	Full Year 2015
Sales	3	19,615	17,116	29,685	27,186
Cost of goods sold		-15,183	-13,160	-22,723	-20,700
Gross income		4,432	3,956	6,962	6,486
Gross margin, %		22.6	23.1	23.5	23.9
Other operating income		176	99	448	371
Marketing expenses		-1,563	-1,492	-2,132	-2,061
Administrative expenses		-960	-931	-1,352	-1,323
Research and development costs		-1,157	-1,084	-1,638	-1,565
Other operating expenses		-49	-18	-79	-48
Share in income of associated companies and joint ventures		-42	23	-25	40
Operating income (EBIT) ¹⁾	3	837	553	2,184	1,900
Operating margin, %		4.3	3.2	7.4	7.0
Financial income		60	37	192	169
Financial expenses		-188	-195	-331	-338
Net financial items		-128	-158	-139	-169
Income before taxes		709	395	2,045	1,731
Taxes		-173	-102	-400	-329
Net income for the period		536	293	1,645	1,402
of which Parent Company's shareholders' interest		509	261	1,610	1,362
of which non-controlling interest		27	32	35	40
Earnings per share before dilution, SEK ²⁾		4.80	2.47	15.18	12.88
Earnings per share after dilution, SEK ³⁾		4.76	2.45	15.07	12.79
1) Includes depreciation/amortisation and write-downs		-700	-706	-953	-959
2) Average number of shares before dilution		106,103,426	105,653,013	106,052,615	105,714,805
3) Average number of shares after dilution		106,875,192	106,401,289	106,870,001	106,450,263

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Jan-Sep 2015 Rolling 12 Months	Full Year 2015
536	293	1,645	1,402
-1,273	500	-934	839
280	-110	207	-183
-993	390	-727	656
218	46	152	-20
-	63	-90	-27
95	-210	285	-20
-41	50	-80	11
272	-51	267	-56
-721	339	-460	600
-185	632	1,185	2,002
-248	632	1,127	2,007
63	-	58	- 5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

MSEK Note	30 Sep 2016	31 Dec 2015	30 Sep 2015
ASSETS
Fixed assets:
Intangible fixed assets 5	6,845	6,476	6,250
Tangible fixed assets	4,614	4,472	4,414
Biological assets	293	290	290
Investment properties	34	34	33
Shares in associated companies and joint ventures	674	602	422
Financial investments	186	190	376
Long-term receivables 11	496	444	179
Deferred tax assets	463	351	505
Total fixed assets	13,605	12,859	12,469
Current assets:
Inventories	6,572	5,243	6,914
Derivatives	904	1,058	858
Tax receivables	270	106	280
Accounts receivable	3,695	2,913	3,078
Other receivables	6,190	8,102	5,034
Prepaid expenses and accrued income	1,128	962	1,258
Short-term investments	3,566	2,995	1,627
Liquid assets 9	1,717	850	1,386
Total current assets	24,042	22,229	20,435
TOTAL ASSETS	37,647	35,088	32,904
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest	12,104	12,851	11,469
Non-controlling interest	130	61	82
Total shareholders' equity	12,234	12,912	11,551
Long-term liabilities:
Long-term interest-bearing liabilities 6	5,613	4,872	3,523
Other liabilities	169	136	134
Provisions for pensions 11	3,672	2,373	2,669
Other provisions	1,018	1,097	894
Deferred tax liabilities	24	34	41
Total long-term liabilities	10,496	8,512	7,261
Current liabilities:
Short-term interest-bearing liabilities 6	286	853	1,964
Advance payments from customers	3,522	1,098	998
Accounts payable	1,889	2,340	1,675
Derivatives	1,494	1,614	1,674
Tax liabilities	25	37	31
Other liabilities	614	725	756
Accrued expenses and deferred income	6,722	6,549	6,529
Provisions	365	448	465
Total current liabilities	14,917	13,664	14,092
Total liabilities	25,413	22,176	21,353
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	37,647	35,088	32,904

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 2015	1,746	543	-562	161	38	9,365	11,291	82	11,373
Net comprehensive income/loss for the period January-September 2015 Transactions with shareholders:			-134	52	63	651	632	-	632
Share matching plan Dividend						47 -501	4 7 -501		4 7 -501
Closing balance, 30 September 2015	1,746	543	-696	213	101	9,562	11,469	8 2	11,551
Net comprehensive income/loss for the period October-December 2015 Transactions with shareholders:			158	-60	-90	1,367	1,375	- 5	1,370
Share matching plan Dividend						19	1 9	-10	1 9 -10
Acquisition and sale of non-controlling interest						-12	-12	- 6	-18
Closing balance, 31 December 2015	1,746	543	-538	153	1 1	10,936	12,851	6 1	12,912
Opening balance, 1 January 2016	1,746	543	-538	153	11	10,936	12,851	61	12,912
Net comprehensive income/loss for the period Transactions with shareholders:			26	210		-484	-248	63	-185
Share matching plan						60	6 0		6 0
Dividend Acquisition and sale of non-controlling						-530	-530	- 4	-534
interest						-29	-29	10	-19
Closing balance, 30 September 2016	1,746	543	-512	363	1 1	9,953	12,104	130	12,234

CONSOLIDATED STATEMENT OF CASH FLOWS

MSEK Note	Jan-Sep 2016	Jan-Sep 2015	Full Year 2015
Operating activities:
Income after financial items	709	395	1,731
Adjustments for items not affecting cash flows	1,031	417	688
Dividend from associated companies and joint ventures	14	23	25
Income tax paid	-217	-244	-266
Cash flow from operating activities before changes in working capital	1,537	591	2,178
Cash flow from changes in working capital:
Increase(-)/Decrease(+) in inventories	-1,289	-1,162	349
Increase(-)/Decrease(+) in current receivables	1,252	-742	-3,573
Increase(+)/Decrease(-) in advance payments from customers	2,398	162	284
Increase(+)/Decrease(-) in other current liabilities	-836	647	1,426
Increase(+)/Decrease(-) in provisions	-187	-295	-306
Cash flow from operating activities	2,875	-799	358
Investing activities:
Investments in intangible fixed assets	-77	-56	-70
Capitalised development costs	-550	-149	-524
Investments in tangible fixed assets	-495	-585	-799
Sales and disposals of tangible fixed assets	17	8	7
Investments in and sale of short-term investments	-531	-359	-1,722
Investments in financial assets	-112	-103	-368
Sale of financial assets	9	4	226
Investments in operations, net effect on liquidity 10	-22	- 4	-221
Sale of subsidiaries, net effect on liquidity	77	-	312
Cash flow from investing activities	-1,684	-1,244	-3,159
Financing activities:
Repayments of loans	-575	-746	-1,865
Raising of loans	732	3,398	4,758
Dividend paid to Parent Company's shareholders	-530	-501	-501
Dividend paid to non-controlling interest	- 4	-	-10
Transactions with non-controlling interests	15	-	-
Cash flow from financing activities	-362	2,151	2,382
Cash flow for the period	829	108	-419
Liquid assets at the beginning of the period	850	1,284	1,284
Exchange rate difference in liquid assets	38	- 6	-15
9 Liquid assets at end of period	1,717	1,386	850

QUARTERLY CONSOLIDATED INCOME STATEMENT

MSEK	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015	Q4 2014
Sales	5,761	7,064	6,790	10,070	5,787	5,940	5,389	7,425
Cost of goods sold	-4,409	-5,495	-5,279	-7,540	-4,505	-4,582	-4,073	-5,574
Gross income	1,352	1,569	1,511	2,530	1,282	1,358	1,316	1,851
Gross margin, %	23.5	22.2	22.3	25.1	22.2	22.9	24.4	24.9
Other operating income	37	100	39	272	23	54	22	261
Marketing expenses	-524	-543	-496	-569	-460	-553	-479	-629
Administrative expenses	-294	-337	-329	-392	-305	-329	-297	-333
Research and development costs	-327	-436	-394	-481	-346	-380	-358	-416
Other operating expenses	-10	-14	-25	-30	- 8	- 6	- 4	3
Share of income in associated companies and joint
ventures	- 8	-22	-12	17	-	13	10	21
Operating income (EBIT) ¹⁾	226	317	294	1,347	186	157	210	758
Operating margin, %	3.9	4.5	4.3	13.4	3.2	2.6	3.9	10.2
Financial income	19	- 9	50	132	-36	46	27	52
Financial expenses	-69	-66	-53	-143	-89	9	-115	-70
Net financial items	-50	-75	- 3	-11	-125	5 5	-88	-18
Income before taxes	176	242	291	1,336	6 1	212	122	740
Taxes	-54	-51	-68	-227	-25	-45	-32	-154
Net income for the period	122	191	223	1,109	3 6	167	9 0	586
of which Parent Company's shareholders' interest	113	183	213	1,101	26	151	84	579
of which non-controlling interest	9	8	10	8	10	16	6	7
Earnings per share before dilution, SEK ²⁾	1.06	1.72	2.01	10.40	0.25	1.43	0.80	5.49
Earnings per share after dilution, SEK ³⁾	1.06	1.71	1.99	10.32	0.24	1.42	0.79	5.45
1) Includes depreciation/amortisation and write-downs	-236	-234	-230	-253	-243	-235	-228	-230
of which depreciation of leasing aircraft	-	-	-	-	-	-	-	- 1
2) Average number of shares before dilution		106,223,750 106,094,093 105,992,435 105,900,182 105,781,884 105,643,700 105,533,455 105,438,516
3) Average number of shares after dilution		107,024,906 106,912,764 106,853,562 106,688,771 106,529,247 106,442,012 106,402,040 106,239,161

QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MSEK	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015	Q4 2014
Net income for the period	122	191	223	1,109	3 6	167	9 0	586
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	-327	-433	-513	339	-233	1,257	-524	-173
Tax attributable to revaluation of net pension obligations	72	95	113	-73	51	-276	115	36
Total	-255	-338	-400	266	-182	981	-409	-137
Items that may be reversed in the income statement:
Translation differences	125	134	-41	-66	-63	-156	265	174
Net gain/loss on available-for-sale financial assets	-	-	-	-90	- 6	- 3	72	10
Net gain/loss on cash flow hedges	130	-179	144	190	-187	56	-79	-315
Tax attributable to net gain/loss on cash flow hedges	-39	34	-36	-39	49	-14	15	67
Total	216	-11	6 7	- 5	-207	-117	273	-64
Other comprehensive income/loss for the period	-39	-349	-333	261	-389	864	-136	-201
Net comprehensive income/loss for the period	8 3	-158	-110	1,370	-353	1,031	-46	385
of which Parent Company's shareholders' interest	60	-181	-127	1,375	-335	1,024	-57	381
of which non-controlling interest	23	23	17	- 5	-18	7	11	4

KEY RATIOS BY QUARTER

MSEK	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015	Q4 2014
Equity/assets ratio, (%)	32.5	31.9	33.9	36.8	35.1	37.2	37.0	38.5
Return on capital employed, % ³⁾ Return on equity, % ³⁾	11.8 13.8	11.3 13.0	11.3 12.7	11.2 11.5	8.1 7.8	8.7 8.6	10.6 9.3	11.1 9.9
Equity per share, SEK ¹⁾ ³⁾	113.88	113.25	120.17	121.28	108.36	111.48	106.54	107.02
Free cash flow, MSEK ³⁾ Free cash flow per share after dilution, SEK ²⁾ ³⁾	-2,311 -21.59	1,096 10.25	2,955 27.65	869 8.15	487 4.57	-1,141 -10.72	-941 -8.84	1,006 9.47
1) Number of shares excluding treasury shares 2) Average number of shares after dilution		106,287,119 106,160,381 106,027,804 105,957,065 105,843,298 105,720,470 105,566,929 105,499,980 107,024,906 106,912,764 106,853,562 106,688,771 106,529,247 106,442,012 106,402,040 106,239,161

3) For more information and explanations regarding the usage of these key ratios, please see saabgroup.com, investor, financial data, key ratios.

QUARTERLY INFORMATION PER OPERATING SEGMENT

MSEK	Q3 2016	Operating margin	Q2 2016	Operating margin	Q1 2016	Operating margin	Q4 2015	Operating margin
Sales
Aeronautics	1,562		1,739		1,622		2,114
Dynamics	775		1,044		1,072		1,555
Surveillance	1,583		2,051		1,801		2,613
Support and Services	967		1,326		1,284		2,795
Industrial Products and Services	697		969		873		1,022
Saab Kockums	544		489		632		599
Internal sales	-367		-554		-494		-628
Total	5,761		7,064		6,790		10,070
Operating income/loss
Aeronautics	151	9.7%	102	5.9%	67	4.1%	305	14.4%
Dynamics	- 6	-0.8%	39	3.7%	40	3.7%	294	18.9%
Surveillance	90	5.7%	73	3.6%	55	3.1%	318	12.2%
Support and Services	21	2.2%	137	10.3%	98	7.6%	417	14.9%
Industrial Products and Services	-22	-3.2%	25	2.6%	53	6.1%	104	10.2%
Saab Kockums	26	4.8%	25	5.1%	34	5.4%	-19	-3.2%
Corporate	-34		-84		-53		-72
Total	226	3.9%	317	4.5%	294	4.3%	1,347	13.4%

MSEK	Q3 2015	Operating margin	Q2 2015	Operating margin	Q1 2015	Operating margin
Sales
Aeronautics	1,686		1,364		1,098
Dynamics	892		794		768
Surveillance	1,458		1,712		1,522
Support and Services	934		1,183		1,100
Industrial Products and Services	762		912		866
Saab Kockums	433		476		339
Internal sales	-378		-501		-304
Total	5,787		5,940		5,389
Operating income/loss
Aeronautics	120	7.1%	30	2.2%	54	4.9%
Dynamics	28	3.1%	-106	-13.4%	-41	-5.3%
Surveillance	3	0.2%	-39	-2.3%	38	2.5%
Support and Services	-27	-2.9%	72	6.1%	87	7.9%
Industrial Products and Services	8	1.0%	67	7.3%	34	3.9%
Saab Kockums	68	15.7%	124	26.1%	55	16.2%
Corporate	-14		9		-17
Total	186	3.2%	157	2.6%	210	3.9%

2015 has been restated according to the structural changes described in the annual report 2015, page 35.

MULTI-YEAR OVERVIEW

MSEK	2015	2014	2013	2012	2011
Order bookings	81,175	22,602	49,809	20,683	18,907
Order backlog at 31 December	113,834	60,128	59,870	34,151	37,172
Sales	27,186	23,527	23,750	24,010	23,498
Sales in Sweden, %	42	45	41	36	37
Sales in Europe excluding Sweden, %	18	19	20	21	20
Sales in North America, %	9	10	11	11	8
Sales in Latin America, %	6	2	2	1	-
Sales in Rest of the world, %	25	24	26	31	35
Operating income (EBIT)	1,900	1,659	1,345	2,050	2,941
Operating margin, %	7.0	7.1	5.7	8.5	12.5
Depreciation/amortisation less depreciation/amortisation of lease aircraft	959	864	1,022	1,136	1,147
EBITDA	2,859	2,523	2,367	3,186	4,088
EBITDA margin, %	10.5	10.7	10.0	13.3	17.4
Income after financial items	1,731	1,523	979	2,003	2,783
Net income for the year	1,402	1,168	742	1,560	2,217
Total assets	35,088	29,556	27,789	28,938	31,799
Equity	12,912	11,373	12,227	11,280	13,069
Free cash flow ¹⁾	-726	-1,094	-1,460	-396	2,477
Return on capital employed, % ¹⁾	11.2	11.1	9.1	14.6	22.2
Return on equity, % ¹⁾	11.5	9.9	6.3	12.8	18.1
Equity/assets ratio, %	36.8	38.5	44.0	39.0	41.1
Earnings per share before dilution, SEK ¹⁾	12.88	10.86	6.98	15.00	21.19
Earnings per share after dilution, SEK ¹⁾	12.79	10.78	6.79	14.52	20.38
Dividend per share, SEK	5.00	4.75	4.50	4.50	4.50
Equity per share, SEK ¹⁾	121.28	107.02	114.04	105.43	122.94
Number of employees at year-end	14,685	14,716	14,140	13,968	13,068
Number of shares excluding treasury shares as of 31 December		105,957,065 105,499,980 106,414,144 105,930,829 105,331,958
Average number of shares before dilution		105,714,805 106,125,666 106,125,107 105,632,911 104,982,315
Average number of shares after dilution		106,450,263 106,916,255 109,150,344 109,150,344 109,150,344

1) For more information and explanations regarding the usage of these key ratios, please see saabgroup.com, investor, financial data, key ratios.

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 are not restated.

KEY RATIOS AND GOALS

	Long-term target	Jan-Sep 2016	Jan-Sep 2015	Full Year 2015
Organic sales growth, %	5	16	0	11
Operating margin, %	10	4.3	3.2	7.0
Equity/assets ratio, %	30	32.5	35.1	36.8

PARENT COMPANY INCOME STATEMENT

MSEK	Jan-Sep 2016	Jan-Sep 2015	Full Year 2015
Sales	12,498	10,979	18,022
Cost of goods sold	-9,962	-8,776	-14,209
Gross income	2,536	2,203	3,813
Gross margin, %	20.3	20.1	21.2
Operating income and expenses	-2,724	-2,307	-3,605
Operating income (EBIT)	-188	-104	208
Operating margin, %	-1.5	-0.9	1.2
Financial income and expenses	-44	77	68
Income after financial items	-232	-27	276
Appropriations	-	-	-160
Income before taxes	-232	-27	116
Taxes	- 2	-59	-153
Net income for the period	-234	-86	-37

Parent Company

PARENT COMPANY BALANCE SHEET

MSEK Note	30 Sep 2016	31 Dec 2015	30 Sep 2015
ASSETS
Fixed assets:
Intangible fixed assets	616	803	892
Tangible fixed assets Financial fixed assets	2,949 7,692	2,882 7,474	2,842 7,767
Total fixed assets	11,257	11,159	11,501
Current assets:
Inventories	4,635	3,668	5,090
Current receivables	9,677	10,133	8,137
Short term investments Liquid assets	3,535 1,098	2,994 211	1,627 716
Total current assets	18,945	17,006	15,570
TOTAL ASSETS	30,202	28,165	27,071
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity	2,977	2,977	2,983
Unrestricted equity	4,316	5,020	4,946
Total shareholders' equity	7,293	7,997	7,929
Untaxed reserves, provisions and liabilities:
Untaxed reserves	2,139	2,139	1,979
Provisions Liabilities 6	871 19,899	755 17,274	532 16,631
Total untaxed reserves, provisions and liabilities	22,909	20,168	19,142
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	30,202	28,165	27,071
MSEK Note	30 Sep 2016	31 Dec 2015	30 Sep 2015
ASSETS
Fixed assets:
Intangible fixed assets	616	803	892
Tangible fixed assets	2,949	2,882	2,842
Financial fixed assets	7,692	7,474	7,767
Total fixed assets	11,257	11,159	11,501
Current assets:
Inventories	4,635	3,668	5,090
Current receivables Short term investments	9,677 3,535	10,133 2,994	8,137 1,627
Liquid assets	1,098	211	716
Total current assets	18,945	17,006	15,570
TOTAL ASSETS	30,202	28,165	27,071
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity	2,977	2,977	2,983
Unrestricted equity	4,316	5,020	4,946
Total shareholders' equity	7,293	7,997	7,929
Untaxed reserves, provisions and liabilities:
Untaxed reserves	2,139	2,139	1,979
Provisions Liabilities 6	871 19,899	755 17,274	532 16,631
Total untaxed reserves, provisions and liabilities	22,909	20,168	19,142

Liquidity, financing, capital expenditures and number of

employees

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 Corporate information

NOTE 2 Accounting principles

NOTE 3 Segment reporting

Aeronautics

Dynamics

Surveillance

Support and Services

Industrial Products and Services

Saab Kockums

Order bookings per operating segment

	Jan-Sep Jan-Sep		Change,	Q3		Q3 Full Year
MSEK	2016	2015	%	2016	2015	2015
Aeronautics	710	36,350	-98		217 35,689	39,349
Dynamics	5,173	4,163	24	1,165	976	5,273
Surveillance	3,826	7,718	-50		915 3,677	15,456
Support and Services Industrial Products and	2,979	4,159	-28		749 2,882	10,557
Services	2,656	2,753	-4	601	993	3,632
Saab Kockums	913	9,975	-91	101	242	10,268
Internal	-1,297	-2,519	-49	-250	-856	-3,360
Total	14,960	62,599	-76		3,498 43,603	81,175

Order bookings per region

MSEK	Jan-Sep 2016	Jan-Sep	2015 Change, %
Sweden	5,837	13,326	-56
Rest of Europe	2,904	4,495	-35
North America	1,064	1,420	-25
Latin America	-84	39,366	-
Asia	3,986	3,007	33
Africa	351	388	-10
Australia, etc.	902	597	51
Total	14,960	62,599	-76

Order backlog per operating segment
-------------------------------------	--	--	--	--	--

MSEK		30 Sep 2016 31 Dec 2015	30 Sep 2015
Aeronautics	55,263	59,476	58,590
Dynamics	8,561	6,284	6,756
Surveillance	16,320	17,707	12,676
Support and Services	12,886	13,393	9,811
Industrial Products and Services	9,718	9,587	9,742
Saab Kockums	9,177	9,928	10,235
Internal	-2,404	-2,541	-2,324
Total	109,521	113,834	105,486
MSEK		30 Sep 2016 31 Dec 2015	30 Sep 2015
Aeronautics	55,263	59,476	58,590
Dynamics	8,561	6,286	6,756
Surveillance	16,320	17,707	12,676
Support and Services	12,886	13,393	9,811
Industrial Products and Services	9,718	9,587	9,742
Saab Kockums	9,177	9,928	10,235
Internal	-2,404	-2,543	-2,324

NOTE 3 Continued
------------------	--

Order backlog per region MSEK		30 Sep 2016 31 Dec 2015	30 Sep 2015
Sweden	38,784	41,276	41,750
Rest of Europe	10,295	10,688	11,117
North America	4,896	5,699	5,442
Latin America	39,333	40,732	39,258
Asia	14,341	13,679	5,958
Africa	731	886	986
Australia etc.	1,141	874	975
Total	109,521	113,834	105,486

Significant orders received (approx. values MSEK)	Order value
New Lightweight Torpedo system	1,533
Ammunition for the Carl-Gustaf man-portable weapon system	1,443
Airborne Early Warning and Control (AEW&C)	1,105
RBS70 NG VSHORAD	378

Sales per operating segment

MSEK	Jan-Sep 2016	Jan-Sep 2015	Change, %	Q3 2016		Q3 2015 Rolling 12 Months Full Year 2015
Aeronautics	4,923	4,148	19	1,562	1,686	7,037	6,262
of which external sales	4,643	3,936	18	1,480	1,616	6,641	5,934
of which internal sales	280	212	32	82	70	396	328
Dynamics	2,891	2,454	18	775	892	4,446	4,009
of which external sales	2,809	2,356	19	742	870	4,337	3,884
of which internal sales	82	98	-16	33	22	109	125
Surveillance	5,435	4,692	16	1,583	1,458	8,048	7,305
of which external sales	5,261	4,530	16	1,531	1,400	7,762	7,031
of which internal sales	174	162	7	52	58	286	274
Support and Services	3,577	3,217	11	967	934	6,372	6,012
of which external sales	3,440	3,089	11	946	891	6,163	5,812
of which internal sales	137	128	7	21	43	209	200
Industrial Products and Services	2,539	2,540	-	697	762	3,561	3,562
of which external sales	1,780	1,912	- 7	510	571	2,481	2,613
of which internal sales	759	628	21	187	191	1,080	949
Saab Kockums	1,665	1,248	33	544	433	2,264	1,847
of which external sales	1,661	1,246	33	542	432	2,260	1,845
of which internal sales	4	2	-	2	1	4	2
Corporate/eliminations	-1,415	-1,183		-367	-378	-2,043	-1,811
of which external sales	21	47		10	7	40	66
of which internal sales	-1,436	-1,230		-377	-385	-2,083	-1,877
Total	19,615	17,116	15	5,761	5,787	29,685	27,186

MSEK	Jan-Sep 2016	% of sales	Jan-Sep 2015	% of sales	Full Year 2015	% of sales
Sweden	8,502	43	7,880	46	11,399	42
Rest of Europe	3,287	17	3,355	20	4,933	18
North America	1,923	10	1,645	10	2,477	9
Latin America	1,327	7	925	5	1,584	6
Asia	3,524	18	2,267	13	5,370	20
Africa	354	2	357	2	541	2
Australia, etc.	698	4	687	4	882	3
Total	19,615	100	17,116	100	27,186	100

Sales per region Information on large customers

Seasonal variation

NOTE 3 Continued

Operating income per operating segment

MSEK	Jan-Sep 2016	% of sales	Jan-Sep 2015	% of sales	12 Months	Rolling Full Year 2015
Aeronautics	320	6.5	204	4.9	625	509
Dynamics	73	2.5	-119	-4.8	367	175
Surveillance	218	4.0	2	-	536	320
Support and Services	256	7.2	132	4.1	673	549
Industrial Products and Services	56	2.2	109	4.3	160	213
Saab Kockums	85	5.1	247	19.8	66	228
The operating segments' operating income	1,008	5.1	575	3.4	2,427	1,994
Corporate	-171		-22		-243	-94
Total	837	4.3	553	3.2	2,184	1,900

Depreciation/amortisation and write-downs per operating segment
		Jan-Sep Jan-Sep	Change,	Q3	Q3		Rolling Full Year
MSEK	2016	2015	%	2016		2015 12 Months	2015
Aeronautics	30	29	3	11	9	40	39
Dynamics	51	52	-2	17	18	73	74
Surveillance	372	374	-1	124	126	498	500
Support and Services Industrial Products	12	16	-25	4	6	17	21
and Services	27	30	-10	9	11	44	47
Saab Kockums	25	25	-	8	8	34	34
Corporate	183	180	2	63	65	247	244
Total	700	706	- 1	236	243	953	959

Operational cash flow per operating segment

	Jan-Sep Jan-Sep		Q3	Q3		Rolling Full Year
MSEK	2016	2015	2016		2015 12 Months	2015
Aeronautics	88		-352 -1,032	-193	-192	-632
Dynamics	101	-613	-37	-458	613	-101
Surveillance	1,760	-290	-195	36	2,001	-49
Support and Services	1,212	-332	-502	-84	907	-637
Industrial Products and
Services	-30	-58	11	-26	13	-15
Saab Kockums	253	434	26	363	627	808
Corporate	-1,462	58		-542 1,015	-1,394	126
Total		1,922 -1,153 -2,271		653	2,575	-500

Capital employed per operating segment

MSEK		30 Sep 2016 31 Dec 2015 30 Sep 2015
Aeronautics	2,371	2,186	2,049
Dynamics	3,095	3,243	3,362
Surveillance	6,847	7,445	7,339
Support and Services	2,454	3,389	2,923
Industrial Products and Services	2,151	2,028	1,787
Saab Kockums	713	647	654
Corporate	3,477	1,641	1,128
Total	21,108	20,579	19,242

Full time equivalents (FTE's) per operating segment

Number at end of the period		30 Sep 2016 31 Dec 2015 30 Sep 2015
Aeronautics	2,864	2,723	2,699
Dynamics	2,077	2,041	2,062
Surveillance	3,745	3,563	3,584
Support and Services	2,174	2,185	2,188
Industrial Products and Services	2,454	2,381	2,374
Saab Kockums	840	803	827
Corporate	826	823	822
Total	14,980	14,519	14,556

NOTE 4 Dividend to Parent Company's shareholders

NOTE 5 Intangible fixed assets

MSEK		30 Sep 2016 31 Dec 2015	30 Sep 2015
Goodwill	5,115	5,045	5,072
Capitalised development costs	1,492	1,157	865
Other intangible assets	238	274	313
Total	6,845	6,476	6,250

NOTE 6 Net liquidity/debt

MSEK		30 Sep 2016 31 Dec 2015 30 Sep 2015
Assets:
Liquid assets	1,717	850	1,386
Short-term investments	3,566	2,995	1,627
Total liquid investments	5,283	3,845	3,013
Short-term interest-bearing receivables	31	48	44
Long-term interest-bearing receivables Long-term receivables attributable to	405	367	107
pensions	49	49	59
Long-term interest-bearing financial investments	139	141	141
Total interest-bearing assets	5,907	4,450	3,364
Liabilities:
Liabilities to credit institutions Liabilities to associated companies and	5,114	4,762	4,649
joint ventures	239	251	224
Other interest-bearing liabilities	546	712	614
Provisions for pensions ¹⁾	2,975	1,942	2,204
Total interest-bearing liabilities and
provisions for pensions	8,874	7,667	7,691
Net liquidity (+) / net debt (-)	-2,967	-3,217	-4,327

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

NOTE 6 Continued

Committed credit lines

MSEK	Facilities	Drawings	Available
Revolving credit facility (Maturity 2021)	6,000	-	6,000
Overdraft facility (Maturity 2017)	97	-	97
Total	6,097	-	6,097
Parent Company MSEK		30 Sep 2016 31 Dec 2015 30 Sep 2015
Long-term liabilities to credit institutions Short-term liabilities to credit institutions	5,113 -	4,360 402	3,000 1,648
Total	5,113	4,762	4,648

NOTE 7 Capital employed

MSEK		30 Sep 2016 31 Dec 2015	30 Sep 2015
Total assets	37,647	35,088	32,904
Less non-interest bearing liabilities	16,539	14,509	13,662
Capital employed	21,108	20,579	19,242

NOTE 8 Financial instruments

liabilities ¹⁾

Classification and categorisation of financial assets and

Carrying amount		30 Sep 2016 31 Dec 2015
Financial assets:
Financial investments at fair value through profit and loss	47	49
Financial investments held to maturity ²⁾	139	141
Long-term receivables	496	444
Derivatives identified as hedges	870	972
Derrivatives at fair value through profit and loss for trading	34	86
Accounts receivable and other receivables	10,479	11,540
Short-term investments at fair value	3,566	2,995
Liquid assets	1,717	850
Total financial assets	17,348	17,077
Financial liabilities:
Interest-bearing liabilities ³⁾	5,899	5,725
Derivatives identified as hedges	1,442	1,561
Derrivatives at fair value through profit and loss for trading	52	53
Other liabilities	5,161	5,486
Total financial liabilities	12,554	12,825

¹⁾ 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 786.

²⁾ Fair value 2016 Sep: MSEK 140; 2015 Dec: MSEK 142.

³⁾ Fair value 2016 Sep: MSEK 6,054; 2015 Dec: MSEK 5,749.

Valuation methods for financial assets and liabilities

Level 1

Level 2

Level 3

Assets at fair value

MSEK	30 Sep 2016	Level 1	Level 2	Level 3
Bonds and interest-bearing securities	3,566	3,566	-	-
Forward exchange contracts	848	-	848	-
Currency options	10	-	10	-
Cross currency basis swaps	37	-	37	-
Electricity derivatives	9	9	-	-
Shares and participations	47	-	-	47
Total	4,517	3,575	895	47
Liabilities at fair value
MSEK	30 Sep 2016	Level 1	Level 2	Level 3
Forward exchange contracts	1,315	-	1,315	-
Currency options	7	-	7	-
Interest rate swaps	165	-	165	-
Cross currency basis swaps	-	-	-	-
Electricity derivatives	7	7	-	-

NOTE 9 Supplemental information on Statement of cash flows

Liquid assets MSEK	30 Sep 2016	31 Dec 2015	30 Sep 2015	Free cash flow vs. statement of cash flows
The following components are included in liquid assets:
Cash and bank balances Bank deposits	1,117 600	850 -	986 400	Investing activities – interest bearing:
Total according to balance sheet	1,717	850	1,386	Other financial investments and
Total according to statement of cash flows	1,717	850	1,386	Financing activities:

Free cash flow vs. statement of cash flov

MSEK	2016	Jan-Sep Jan-Sep 2015	Q3 2016	2015	Q3 Full Year 2015
Free cash flow Investing activities – interest bearing:	1,740	-1,595	-2,311	487	-726
Short-term investments Other financial investments and	-531	-359	2,169	155	-1,722
receivables	-18	-89	8	-29	-353
Financing activities:
Repayments of loans	-575	-746	-11	-746	-1,865
Raising of loans Dividend paid to the Parent	732	3,398	-	561	4,758
Company's shareholders	-530	-501	-	-	-501
Dividend paid to non-controlling interest Dividend paid to non-controlling	-4	-	-4	-	-10
interest	15	-	15	-	-
Cash flow for the period	829	108	-134	428	-419

Free cash flow

MSEK	Total Group Jan-Sep 2016	Total Group Jan-Sep 2015	Q3 2016	Q3 2015	Total Group Full year 2015
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items	1,772	1,019	545	406	2,706
Cash flow from changes in working capital:
Inventories	-1,289	-1,162	-780	-92	349
Current receivables	1,252	-742	-621	-576	-3,573
Advance payments from customers	2,398	162	-55	41	284
Other current liabilities	-836	647	-916	1,209	1,426
Provisions	-187	-295	-73	-39	-306
Change in working capital	1,338	-1,390	-2,445	543	-1,820
Cash flow from operating activities excluding taxes and other financial items	3,110	-371	-1,900	949	886
Investing activities:
Investments in intangible fixed assets	-627	-205	-151	-66	-594
Investments in tangible fixed assets	-495	-585	-194	-235	-799
Sales and disposals of tangible fixed assets	17	8	- 5	5	7
Investments in financial fixed assets	-83	-	-21	-	-
Cash flow from investing activities ¹⁾	-1,188	-782	-371	-296	-1,386
Operational cash flow	1,922	-1,153	-2,271	653	-500
Taxes and other financial items	-235	-428	-16	-166	-528
Sale of and investments in shares etc.	- 2	-10	- 2	-	211
Acquisitions of operations	-22	- 4	-22	-	-221
Sale of subsidiaries	77	-	-	-	312
Free cash flow	1,740	-1,595	-2,311	487	-726

1) 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 sale of subsidiaries. If investments in and sale of

financial fixed assets are considered to be of operating nature, the item is included in investing activities.

NOTE 10 Business combinations

NOTE 11 Defined-benefit plans

Pension obligation according to IAS 19

MSEK	30 Sep 2016	30 Sep 2015
Defined-benefit obligation	8,907	7,826
Special employers' contribution	697	465
Less plan assets	5,981	5,681
Total provisions for pensions	3,623	2,610
of which reported as long-term receivable	49	59

NOTE 12 Contingent liabilities

NOTE 13 Transactions with related parties

NOTE 14 Definitions

Capital employed

Earnings per share

EBITDA

EBITDA margin

Effective tax rate

Equity/assets ratio

Equity per share

Free cash flow

Free cash flow per share

Gross margin

Net investments

Net liquidity/net debt

Operating margin

Operational cash flow

Order backlog

Order bookings

Organic sales growth

Return on capital employed

Return on equity

GLOSSARY

EKN

FMV

FRN

FTE

IAS

IFRS MTN

SAL

REVIEW REPORT

Introduction

Scope of Review Conclusion

Stockholm 25 October 2016 PricewaterhouseCoopers AB

Bo Hjalmarsson Authorised Public Accountant

This information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 25 October 2016 at 07.30 (CET).

MEDIA: Saab press center ph +46 734 18 00 18 Sebastian Carlsson, Press Officer ph +46 734 18 71 62

FINANCIAL MARKET: Ann-Sofi Jönsson, Head of Investor Relations ph +46 734 18 72 14

Press and financial analyst conference 25 October 2016 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

You are welcome to participate on site at Grand Hôtel, watch the live webcast or dial in to the conference call. It is possible to post questions also over the web and conference call.

Live webcast: saab-interimreport.creo.se/161025

Conference call: Please, dial in using one of the numbers below. UK: +44 20 300 89 813 US: +1 855 753 2235 SE: +46 8 566 427 00

The interim report, the presentation material and the webcast will be available on saabgroup.com.

CONTACT CALENDAR

YEAR-END REPORT 2016 PUBLISHED 15 FEBRUARY 2017

INTERIM REPORT JANUARY–MARCH 2017 PUBLISHED 26 APRIL 2017

INTERIM REPORT JANUARY–JUNE 2017 PUBLISHED 20 JULY 2017

INTERIM REPORT JANUARY–SEPTEMBER 2017 PUBLISHED 24 OCTOBER 2017