YEAR-Well positioned to capture END REPORT long-term growth

KEY HIGHLIGHTS Q2 2022

Strong order intake of SEK 17,363m (9,875), corresponding to an order growth of 76%, driven by large and medium orders across business areas.
Sales in line with same period last year, amounting to SEK 10,171m (10,131).
EBITDA amounted to SEK 1,255m (1,196), an EBITDA margin of 12.3% (11.8).
Operating income increased 3% and amounted to SEK 738m (715), corresponding to an operating margin of 7.3% (7.1).
Net income for the period amounted to SEK 433m (514) and was affected by unrealised negative market value changes of short-term investments.
Operational cash flow was SEK 531m (3,152) in the quarter and according to our milestone plan for the year.

FINANCIAL HIGHLIGHTS

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Change, %	Full Year 2021
Order bookings	25,478	15,746	62	17,363	9,875	76	43,569
Order backlog	112,367	96,714	16				105,177
Sales	19,389	19,219	1	10,171	10,131	0	39,154
Gross income	4,156	4,047	3	2,122	2,113	0	8,205
Gross margin, %	21.4	21.1		20.9	20.9		21.0
EBITDA	2,403	2,262	6	1,255	1,196	5	4,826
EBITDA margin, %	12.4	11.8		12.3	11.8		12.3
Operating income (EBIT)	1,392	1,312	6	738	715	3	2,888
Operating margin, %	7.2	6.8		7.3	7.1		7.4
Net income	805	910	-12	433	514	-16	2,025
of which Parent Company's shareholders' interest	775	897	-14	421	505	-17	1,926
Earnings per share after dilution, SEK	5.80	6.73		3.15	3.78		14.45
Return on equity, % ¹⁾	7.8	5.2					9.0
Operational cash flow	352	2,992		531	3,152		3,276
Free cash flow	34	2,763		395	3,028		2,737
Free cash flow per share after dilution, SEK	0.25	20.72		2.95	22.69		20.53
Average number of shares after dilution		133,547,690 133,351,912			133,782,303 133,446,047		133,293,340
¹⁾ Return on equity is measured over a rolling 12-month period.

17.4 Order bookings BSEK 0.4

Sales growth %

7.3 Operating margin %

JANUARY-JUNE 2022

COMMENTS FROM THE CEO

Well positioned to capture long-term growth

Micael Johansson President & CEO

The security landscape has changed dramatically this year due to the tragic war in Ukraine and its implications on geopolitical tensions. Many European countries, including Sweden, are increasing their defence spending, leading to an even stronger national defence. Sweden and Finland have also decided to join NATO. All of this is of course affecting Saab as a defence company.

We are well positioned to meet demand in our core areas, and currently see strong interest in training, advanced weapon systems and sensors. We are taking initiatives to increase future capacity and we are working closely with our partners to secure resources and supply for a ramp-up in production. With Swedish NATO membership, there are also increased opportunities for Saab to provide state-of-theart defence capabilities to the alliance and its member countries, as well as gaining access to NATO research programmes.

In the second quarter, Saab's order intake increased 76%, driven by both large and medium-sized orders. An important order in the quarter was Sweden's acquisition of two GlobalEye aircraft. This will provide Sweden with world-class airborne early warning and control capability. We also received several Carl-Gustaf orders from both Sweden and international customers, as well as an upgrade contract for the Gripen C/D fighter aircraft from Sweden.

Our operational performance is progressing well and we have so far no significant negative impact from supply chain issues on our deliveries. However, inflation, availability of certain materials and transportation remain challenging.

During the period, Saab held the keel-laying ceremony for the first Swedish A26 submarine, where its first hull sections were connected. This is an important milestone in the construction of one of the most advanced conventional submarines in the world. Another key milestone in the quarter was the shipment of the last of five fully installed EMD T-7A aft fuselages to our partner Boeing. We are now preparing the manufacturing setup for the next phase while hiring continues for our new operations in West Lafayette, Indiana, U.S.

Sales in the quarter was in line with the same quarter last year and amounted to SEK 10,171 million (10,131). Year to date, sales is up 1%. We expect the growth pace to increase in the second half of the year based on our strong order backlog. We reiterate our outlook of an organic sales growth around 5% for the full year.

Operating income increased 3% in the second quarter compared to last year and amounted to SEK 738 million (715) with an operating margin of 7.3% (7.1). For the full year, we estimate the operating income improvement to be at the upper end of our outlook range of 8-12%.

Operational cash flow amounted to SEK 531 million (3,152) in the quarter. The second quarter last year included large milestone payments related to GlobalEye. The cash flow is in line with our milestone plan for the year and we also expect it to remain positive for the full year 2022, according to our guidance.

We believe nations' defence capabilities are vital for peace and democracy, which is the foundation of sustainability and the UN Sustainable Development Goals. We continue to execute on our new sustainability strategy. During the quarter, focus has been on strengthening governance and initiating Climate Task Forces within our Science Based Targets project.

Our opportunities for growth have improved as governments increase their defence budgets to protect their people and societies. With our strong product portfolio and international presence as a foundation, we are prepared to meet our customers' increased demand.

Outlook 2022

SALES GROWTH:

Organic sales growth of around 5%.

OPERATING INCOME:

Operating income improvement between 8-12% compared to 2021.

OPERATIONAL CASH FLOW:

Operational cash flow to be positive for 2022 however at a lower level than in 2021.

Orders

SECOND QUARTER 2022

Order bookings amounted to SEK 17,363 million (9,875), an increase of 76 per cent compared to the same quarter last year. Bookings of large orders increased to SEK 7,316 million (1,410) with the GlobalEye contract to Sweden. Medium-sized orders increased 40 per cent and amounted to SEK 6,583 million (4,710) while small orders declined 8 per cent. Medium-sized orders included several contracts in Dynamics related to Carl-Gustaf to both Sweden and international customers, and an order for a Gripen C/D upgrade to Sweden.

JANUARY-JUNE 2022

Order bookings amounted to SEK 25,478 million (15,746), an increase of 62 per cent compared to the first half-year 2021. This was due to growth in both large orders, amounting to SEK 8,484 million (2,981), and medium-sized orders that increased with 82 per cent amounting to SEK 10,475 million (5,759). Bookings of small orders declined 7 per cent and amounted to SEK 6,519 million (7,006). In addition to the orders received in the second quarter, large and medium-sized orders in the first half-year included an order for the Mid-Life upgrade of the third Gotland class submarine to Sweden in Kockums, training systems to the U.S. and Finland in Dynamics and order for a security solution to Australia in Surveillance.

The order backlog at the end of the period amounted to SEK 112,367 million, compared to SEK 105,177 million at the beginning of the year. In total, 62 per cent of the order backlog is attributable to markets outside Sweden, compared to 67 per cent at the beginning of the year.

For more information on orders received, see the business area comments on pages 7, 8 and 9.

Sales

SECOND QUARTER 2022

Sales in the second quarter was in line with the comparison period and amounted to SEK 10,171 million (10,131). Surveillance showed a sales growth of 17 per cent compared to the second quarter 2021 driven by high activity level as well as pre-start work on the GlobalEye contract from Sweden, while sales decreased in Dynamics as the comparison quarter included a higher level of deliveries.

JANUARY-JUNE 2022

Sales amounted to SEK 19,389 million (19,219) corresponding to a growth of 1 per cent. Sales growth was flat in Aeronautics while Surveillance, Kockums and Combitech reported sales growth driven by high activity in projects and deliveries. Sales declined in Dynamics, due to a strong comparison period.

Sales from markets outside Sweden amounted to SEK 11,521 million (12,244) and corresponded to 59 per cent (64) of total sales. In the period, primarily Europe and Asia reported sales growth. 88 per cent (90) of sales were related to the defence business.

SALES GROWTH

Per cent	Jan-Jun 2022	Jan-Jun 2021	Q2 2022	Q2 2021	Full Year 2021
Organic sales growth	-1	15	-1	15	11
Acquisitions	-	-	-	-	-
Currency effects regarding revaluation of foreign subsidiaries	2	-1	1	0	0
Total sales growth	1	14	0	15	11

SALES PER REGION

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %
Sweden	7,868	6,975	13
Rest of Europe	3,410	3,080	11
North America	2,027	2,200	-8
Latin America	2,066	3,108	-34
Asia	2,797	2,548	10
Africa	38	153	-75
Australia, etc.	1,183	1,155	2
Total	19,389	19,219	1

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

Order distribution Orders exceeding MSEK 100 accounted for

2022.

74% (56) of total orders during the first half-year

Order backlog duration:

2022: SEK 20.2 billion 2023: SEK 32.2 billion 2024: SEK 24.7 billion 2025: SEK 18.3 billion After 2025: SEK 17.0 billion

Defence/Civil

A total of 92% (88) of order bookings was attributable to defencerelated operations during the first half-year 2022.

Market

A total of 35% (54) of order bookings was related to markets outside Sweden during the first half-year 2022.

Sales Jan-Jun, MSEK

Income

SECOND QUARTER 2022

The gross margin was in line with the second quarter last year at 20.9 per cent (20.9). EBITDA increased 5 per cent, corresponding to a margin of 12.3 per cent (11.8). Operating income grew 3 per cent to SEK 738 million (715) with an operating margin of 7.3 per cent (7.1). Higher corporate cost in the quarter had an unfavourable impact on operating income compared to the same quarter last year. In the comparison period last year, the operating income included costs of SEK 85 million for right-sizing measures for the closure of the Barracuda facility in the U.S. and capacity adjustments in the operations in South Africa.

JANUARY-JUNE 2022

The gross margin during the first half of 2022 was 21.4 per cent (21.1). The improvement was mainly driven by favourable project mix in Surveillance and Dynamics and higher efficiency.

Total depreciation, amortisation and write-downs amounted to SEK 1,011 million (950). Depreciation of tangible fixed assets amounted to SEK 660 million (610).

Expenditures for internally funded investments in R&D amounted to SEK 823 million (1,106), of which SEK 248 million (510) has been capitalised. Capitalised expenditures are mainly attributable to the development of Gripen E/F.

Amortisation and write-downs of intangible fixed assets amounted to SEK 351 million (340), of which amortisation and write-downs of capitalised development expenditures amounted to SEK 280 million (275). This was mainly related to R&D amortisation of GlobalEye, amounting to SEK 187 million (187) in the first half-year 2022.

The share of income in associated companies and joint ventures amounted to SEK -21 million (-27).

EBITDA grew to SEK 2,403 million (2,262). The EBITDA margin was 12.4 per cent (11.8).

Operating income increased by 6 per cent and amounted to SEK 1,392 million (1,312). This was driven by increases in Surveillance, Dynamics and Kockums. Higher corporate cost in the first half of 2022 had an unfavourable impact on operating income compared to the same period last year. The operating margin was 7.2 per cent (6.8) driven by the improved gross margin.

Financial net

MSEK	Jan-Jun 2022	Jan-Jun 2021
Financial net related to pensions	-36	-27
Net interest items	-42	-29
Currency gains/losses	-28	-18
Lease liability interest	-47	-49
Other financial items	-204	-35
Total	-357	-158

The financial net related to pensions is the financial cost for net pension obligations recognised in the balance sheet. See note 12 for more information regarding defined-benefit pension plans.

Net interest items refer to interest on liquid assets, short-term investments and interest expenses on short- and long-term interest bearing liabilities and interest on interest-rate swaps. Currency gains/losses recognised in the financial net are mainly related to currency hedges of the tender portfolio, which are measured at fair value through profit and loss.

Lease liability interest consists of the interest portion related to lease liabilities recognised in the balance sheet.

Other net financial items consist of realised and unrealised results from short-term investments and derivatives as well as other currency effects, e.g. changes in exchange rates for liquid assets in currencies other than SEK. The loss in the first half-year 2022 is largely attributable to unrealised negative market value changes of short-term investments due to movements in market interest rates and credit spreads.

Tax

Current and deferred taxes amounted to SEK -230 million (-244), which translates to an effective tax rate of 22 (21) per cent in the first half of the year.

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

Earnings per share after dilution, SEK

Internally funded R&D expenditures, MSEK

Financial position and liquidity

At the end of June 2022, net debt was SEK 116 million, a decrease of SEK 2,009 million compared to year-end 2021, when net debt amounted to SEK 2,125 million. Net debt to EBITDA was 0.02x (0.47) at the end of the period.

Cash flow from operating activities amounted to SEK 1,095 million (4,319).

Contract assets increased by SEK 1,390 million following lower milestone payments while contract liabilities decreased by SEK 195 million compared to year-end 2021. Inventories increased by SEK 1,660 million during the first half-year 2022, mainly related to future deliveries within Dynamics.

Net provisions for pensions, excluding special employer's contribution, amounted to SEK 2,106 million as of 30 June 2022, compared to SEK 4,774 million at year-end 2021. Changes in actuarial assumptions regarding discount rate, inflation and demographics had a net positive effect on net debt of SEK 2,668 million. For further information on Saab's benefit pension plans, see note 12.

Tangible fixed assets amounted to SEK 7,453 million at period end compared to 7,147 at the end of 2021. Biological assets decreased during the first half of 2022 and amounted to SEK 353 million at the end of the period. During the second quarter 2022, a subsidiary to Saab AB sold forest property at a market price of SEK 54 million to Kopparfors Skogar, a subsidiary owned by Wallenberg Investments AB.

Right-of-use assets recognised in the balance sheet amounted to SEK 2,333 million compared to 2,472 million at the end of 2021.

Net investments in the first half of the year amounted to SEK 856 million (1,324). Investments in tangible fixed assets amounted to SEK 620 million (667).

Investments in intangible fixed assets amounted to SEK 335 million (669), of which SEK 248 million (510) related to capitalised R&D expenditures. The investments were mainly related to the development of Gripen E/F. Of the total investments in intangible fixed assets, SEK 87 million (159) related to other intangible fixed assets.

As of 30 June 2022, short-term investments and liquid assets amounted to SEK 12,382 million, an increase of SEK 541 million compared to year-end 2021. In addition to this, the Group had revolving credit facilities amounting to SEK 6,000 million. No credit facilities have been utilised during the period.

Capital employed increased by SEK 2,355 million during the first half of the year to SEK 40,132 million. The return on capital employed was 8.1 per cent (4.4) and the return on equity was 7.8 per cent (5.2), both measured over a rolling 12-month period.

Key indicators of financial position and liquidity

MSEK	30 Jun 2022	31 Dec 2021	Change	30 Jun 2021
Net liquidity / debt ²⁾	-116	-2,125	2,009	-1,485
Intangible fixed assets	12,318	12,162	156	11,888
Goodwill	5,419	5,253	166	5,190
Capitalised development costs	6,010	6,040	-30	5,935
Other intangible fixed assets	889	869	20	763
Tangible fixed assets, etc ³⁾	7,806	7,532	274	7,295
Right of use assets ⁴⁾	2,333	2,472	-139	2,447
Inventories	13,269	11,609	1,660	11,062
Accounts receivable	4,579	5,884	-1,305	3,793
Contract assets	10,642	9,252	1,390	8,847
Contract liabilities	10,492	10,687	-195	9,232
Equity/assets ratio, %	38.7	35.7	-	36.3
Return on equity, %	7.8	9.0	-	5.2
Equity per share, SEK ¹⁾	201.55	174.31	-	168.50
1) Number of shares excluding treasury shares	132,168,930	131,810,178	358,752	132,557,343

2) The Group's net liquidity/debt refers to liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions excluding provisions for special employers' contribution attributable to pensions. For a detailed break-down of interest-bearing receivables and interest-bearing liabilities, see note 7.

3) Including tangible fixed assets and biological assets.

4) Relate to right-of-use assets for leases.

Change in net debt Jan-Jun 2022

	MSEK
Net liquidity (+) / net debt (-), 31 Dec 2021 ¹⁾	-2,125
Cash flow from operating activities	1,095
Change in net pension obligation	2,668
Net investments	-856
Dividend	-647
Dividend to and transactions with non-controlling interest	-30
Additional lease liabilites	-85
Sale of operations	42
Other items, currency impact and unrealised results from financial
investments	-178
Net liquidity (+) / net debt (-), 30 Jun 2022 ¹⁾	-116
¹⁾ Net liquidity (+) / net debt (-) excluding net provisions for pensions, lease liabilities and interest-bearing receivables, 30 Jun 2022	3,816

Cash flow

SECOND QUARTER 2022

Operational cash flow for the second quarter amounted to SEK 531 million (3,152) which was in line with our milestone plan for the year. The comparison period last year included large milestone payments mainly related to GlobalEye and the Gripen programmes.

Operational cash flow is defined as cash flow from operating activities and acquisitions and divestments of intangible and tangible fixed assets. Cash flow from operating activities excludes taxes and other financial items but includes amortisation of lease liabilities.

Free cash flow amounted to SEK 395 million (3,028). For more detailed information on cash flow, see note 11.

JANUARY-JUNE 2022

Operational cash flow amounted to SEK 352 million (2,992) following increased working capital partly offset by lower investments compared to the same period last year.

Free cash flow amounted to SEK 34 million (2,763). For more detailed information on cash flow, see note 10.

There can be large fluctuations in cash flow between reporting periods as the timing of milestone payments in large projects greatly varies depending on when milestones are reached.

	Jan-Jun 2022	Jan-Jun 2021
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	2,558	2,487
Change in working capital	-1,350	1,829
Cash flow from operating activities excluding taxes and other financial items	1,208	4,316
Cash flow from investing activities ²⁾	-856	-1,324
Operational cash flow	352	2,992
Taxes and other financial items	-353	-219
Sale of and investments in financial assets and operations	35	-10
Free cash flow	34	2,763

Free cash flow, MSEK

1) Including amortisation of lease liabilities

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

Business Area Aeronautics

BUSINESS UNITS: Gripen Design, Gripen Sustainment, Aviation Services, Aerospace Systems

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Full Year 2021	ORDER
Order bookings	4,138	4,363	-5	2,839	2,322	7,828	DISTRIBUTION
Order backlog	40,455	45,057	-10			42,429	Orders exceeding
Sales	6,129	6,147	0	3,073	3,044	12,263	MSEK 100
EBITDA	459	491	-7	219	250	871	accounted for 84%
EBITDA margin, %	7.5	8.0		7.1	8.2	7.1	(75) of total orders
Operating income (EBIT)	377	432	-13	178	219	746	during the first half
Operating margin, %	6.2	7.0		5.8	7.2	6.1	year 2022.
Operational cash flow	-120	-85		326	700	-768
							MARKET

Market and orders

Sales, income and margin
Upgrade contract for Gripen C/D fighter aircraft to Sweden received.
Orders also driven by parts of the GlobalEye contract to Sweden.

Sales in Aeronautics was impacted by

timing effects on the Gripen programmes.
Operating income and margins negatively impacted by start-up costs for the T-7 operations and currency effects.

Cash flow

Sales in markets outside Sweden amounted to 47% (58) during the first half-year 2022.

Cash flow amounted to MSEK 326 in the quarter. Same period last year included higher milestone payments related to the Gripen programmes.

Business Area Dynamics

BUSINESS UNITS: Ground Combat, Missile Systems, Underwater Systems, Barracuda, Training and Simulation, Tactical Support Solutions.

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Full Year 2021	ORDER
Order bookings	6,296	4,747	33	3,663	3,406	10,909	DISTRIBUTION
Order backlog	24,393	19,798	23			21,831	Orders exceeding
Sales	4,001	4,444	-10	2,208	2,789	8,690	MSEK 100
EBITDA	702	585	20	424	403	1,201	accounted for 63%
EBITDA margin, %	17.5	13.2		19.2	14.4	13.8	(59) of total orders
Operating income (EBIT)	664	541	23	408	380	1,113	during the first half year 2022.
Operating margin, %	16.6	12.2		18.5	13.6	12.8
Operational cash flow	405	-276		173	256	705

MARKET

Sales in markets outside Sweden amounted to 78% (76) during the first half-year 2022.

Market and orders

Strong interest for the Dynamics portfolio.
Orders received for the Carl-Gustaf system and ammunition to Sweden and international customers in the quarter.
Order for tube m/20 for lightweight torpedoes within Underwater Systems.
Orders also increased in business unit Missile Systems in the quarter.

Sales, income and margin

Sales volumes was down in the quarter due to strong deliveries within several business units in Q2 last year.
Operating margin improved due to a favourable mix and production efficiency in the quarter.
The comparison quarter last year included costs for the closure of the U.S. Barracuda operation of 60 MSEK.

Cash flow

Positive operational cash flow in Q2 mainly driven by customer delivery payments and milestone payments, despite an increase in inventory.

Business Area Surveillance

BUSINESS UNITS: Radar Solutions, Electronic Warfare and Aircraft Systems, Combat Systems, Traffic Management.

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Full Year 2021	ORDER
Order bookings	12,170	5,019	142	9,861	3,316	14,065	DISTRIBUTION
Order backlog	38,319	29,610	29			32,012	Orders exceeding
Sales	6,671	6,335	5	3,562	3,036	13,373	MSEK 100
EBITDA	856	693	24	423	338	1,684	accounted for 83%
EBITDA margin, %	12.8	10.9		11.9	11.1	12.6	(49) of total orders
Operating income (EBIT)	457	313	46	223	147	917	during the first half
Operating margin, %	6.9	4.9		6.3	4.8	6.9	year 2022.
Operational cash flow	785	4,145		650	2,405	4,040

2021 has been restated due to a minor structural change as parts of a department within Combitech have been migrated to Surveillance. Proforma statements are available at saab.com/investors/financial-data

Market and orders

Large order intake from the GlobalEye contract to Sweden in the quarter.
Several medium-sized orders also contributed to the order intake.
Strong interest for Saab's sensor portfolio.

Sales, income and margin

Sales grew 17% in the quarter driven by high activity level in all business units including pre-start work for the GlobalEye.
Operating income and margin increased in the quarter as a result of good project execution and GlobalEye pre-start.
The comparison quarter last year included costs for adjustments in the operations in South Africa of 21 MSEK.

Cash flow

MARKET Sales in markets outside Sweden amounted to 79% (81) during the first half-year 2022.

Cash flow in Q2 was positive but lower than last year. Cash flow in the same period last year was positively affected by large milestone payments related to GlobalEye.

Business Area Kockums

BUSINESS UNITS: Submarines, Surface Ships, Docksta.

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Full Year 2021	ORDER
Order bookings	1,893	888	113	508	436	8,853	DISTRIBUTION
Order backlog	9,292	2,968	213			9,099	Orders exceeding
Sales	1,706	1,553	10	889	899	3,388	MSEK 100
EBITDA	116	79	47	63	43	243	accounted for 74%
EBITDA margin, %	6.8	5.1		7.1	4.8	7.2	(25) of total orders
Operating income (EBIT)	101	59	71	55	32	208	during the first half
Operating margin, %	5.9	3.8		6.2	3.6	6.1	year 2022.
Operational cash flow	-368	-114		-242	1	-13

MARKET

Sales in markets outside Sweden amounted to 8% (7) during the first halfyear 2022.

Market and orders

Continued increase in order bookings within Kockums in the second quarter.
Progress in the A26 programme with keel-laying ceremony where its first hull sections being connected.

Sales, income and margin

Sales in the quarter was in line with Q2 last year, driven by high activity level in business unit Surface Ships.
Continued progress in projects and efficiency contributed to the improved operating income and margin.

Cash flow

Negative cash flow as no larger milestone payments were received in the quarter.

Combitech

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2 2021	Full Year 2021
Order bookings	1,683	1,725	-2	877	881	3,344
Order backlog	1,182	1,133	4			1,226
Sales	1,661	1,591	4	866	825	3,116
EBITDA	140	165	-15	57	76	273
EBITDA margin, %	8.4	10.4	-	6.6	9.2	8.8
Operating income (EBIT)	136	162	-16	55	75	265
Operating margin, %	8.2	10.2	-	6.4	9.1	8.5
Operational cash flow	20	160	-	18	85	271

ORDER

DISTRIBUTION Orders exceeding MSEK 100 accounted for 0% (0) of total orders during the first half-year 2022.

MARKET

Sales in markets outside Sweden amounted to 7% (6) during the first halfyear 2022.

Market and orders

Digital transformation, including 5G private network, contract signed within the industry segment.

Several framework agreements that strengthen the total defence offering signed in the quarter.

Strong interest for cyber security, digitalisation and sustainable solutions.

Sales, income and margin

Sales increased 5% in the quarter driven by higher sales to external customers.
Operating income and margin declined due to higher cost.
Continued focus on securing competencies to meet increased competition and demand.

Cash flow

Cash flow declined vs last year as a result of lower EBIT and business structure changes, where a small part of operations was migrated to Surveillance with a negative cash flow impact for Combitech.

Corporate

Corporate comprises Group staff, Group departments and other operations including Saab's minority portfolio in Corporate, outside the core operations. The minority portfolio contains Saab's interests in UMS Skeldar AG and Ventures. Corporate reported an operating loss of SEK -343 million (-195) during the first half of 2022. The higher loss was related to increased costs in Saab's share-related incentive programme, IT, centrally led Human Resource-activities as well as lower results in the minority portfolio. Some of these increases in cost are of non-recurring nature.

Operational cash flow attributable to Corporate amounted to SEK -370 million (-838) for the first half of the year. The comparison period included effects from restructuring of the Group's currency contract portfolio that had a negative impact on Corporate with a corresponding positive impact on Aeronautics.

Acquisitions and divestments 2022

There were no major acquisitions or divestments in the first half of 2022

Share repurchase

Saab held 3,676,917 treasury shares as of 30 June 2022, compared to 4,035,669 at year-end 2021. The Annual General Meeting in 2022 authorised the Board of Directors to repurchase a maximum of 1,730,000 Series B shares to secure delivery of shares to participants in Saab's long-term incentive programmes 2023. The Annual General Meeting also decided to authorise the Board, before the next Annual General Meeting, to decide on the acquisition of Series B shares up to a maximum of 10 percent of the total number of shares in the company. The purpose of the authorisation is to be able to adjust the company's capital structure and thereby contribute to increased shareholder value as well as to enable continued use of repurchased shares in connection with potential acquisitions of companies and for the company's share-related incentive programmes.

Risks and uncertainties

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

The uncertainty in the global supply chain and a higher inflationary environment entails a risk for Saab and its operations. The risks primarily relate to the availability of certain raw materials, components and longer lead times, as well as higher general inflation. Some of these risks are managed through contract management, re-planning and intensified dialogue and negotiations with suppliers.

For a general description of the risk areas, see the annual report 2021, pages 44-49.

COVID-19 risk

For Saab, the uncertainty surrounding COVID-19 has primarily been linked to customer access, Saab employee availability, disruptions in the supply chain, lock-downs in society and the market conditions in civil operations. The surge in new COVID cases in China during the year has led to an extension of restrictions and temporary lockdowns in the region, which has continued to impact the global supply of goods and services. The development has put continued pressure on electronics shortages, shipping delays and increased freight costs. Saab is closely monitoring the prolonged effects of the pandemic and cannot rule out direct or indirect future risks related to a prolonged pandemic situation or new variants of the virus that could affect society and businesses.

Risks related to the armed conflict in Ukraine

Saab has no defence related sales exposure to Belarus and Russia, but is closely monitoring the effects on the business from the war in Ukraine. Saab has as a consequence of this, activated its crisis management organisation with focus on security, embargo and sanction practises. Saab is operating on a highly regulated market and it is essential for Saab as a responsible defence company to comply with all applicable regulations and commitments regarding export control and sanctions, i.e. sanctions from EU, UN, OSCE or other applicable country specific sanctions. The armed conflict in Ukraine and the increased geopolitical tension, has led to increased security measures at Saab. This may lead to increased costs for security to protect Saab's sites, personnel, IT and cyber security.

The war in Ukraine has further led to increased uncertainty in the global supply chain for certain materials and transportation, with risks for longer lead times and price increases. Saab has experienced some challenges primarily in the availability of electronic components in parts of its operations, such as Training & Simulation.

OWNERS

Saab's largest shareholders as of 30 June

2022:	% of capital	% of votes
Investor AB	30.2	39.7
Wallenberg Investments	8.7	7.5
Swedbank Robur Funds	4.2	3.6
Vanguard	2.3	1.9
Norges Bank	1.7	1.4
Orbis Investment
Management Ltd	1.5	1.3
Nordea Funds	1.4	1.2
BlackRock	1.3	1.2
AllianceBernstein	1.2	1.1
Life Insurance
Skandia	1.2	1.0

Source: Modular Finance

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

Personnel

30 Jun 2022 31 Dec 2021

18,153
18,011
18,440 18,366

Sustainability

SUSTAINABILITY AT SAAB

A commitment to society has been at the core of Saab's business since its founding, supporting nations to keep people and society safe. The foundation of Saab's sustainability commitment is to create value for all its stakeholders in a responsible way, and maintain high ethical standards. Sustainability is integrated in all aspects of the strategy and operations and lays the foundation for the company's long-term development and growth. In 2021, Saab renewed its sustainability strategy and strengthened the governance structure to enable the execution of the framework. This work has continued during 2022.

The rapidly changing security environment in Europe during 2022 has resulted in an increased public focus on defence and security issues. Saab has increased its engagement with key financial stakeholders with a transparent dialogue on the company's sustainability strategy and other material sustainability areas.

Saab's Sustainability Strategy

HIGHLIGHTS DURING THE QUARTER

During the quarter, a Sustainability Council was established.
Saab's Sustainability Board received an update on the implementation of the Responsible Sales Policy. The policy will be implemented during 2022, and will align Saab's internal processes closer with the UN Guiding Principles for Business and Human Rights.
All Climate Task Forces have been initiated within the Science Based Targets project.

DEVELOPING THE GOVERNANCE

During the period, Saab continued the implementation of the new sustainability strategy with focus on improving the governance aspects of the sustainability work. The aim is to create a governance structure that sets an active direction for Saab's sustainability commitments, but also coordinates implementation and evaluates its effectiveness across the Group. In May 2022, Saab established a Sustainability Council that will prepare decisions for the Sustainability Board and coordinate the operational implementation of the sustainability strategy.

CLIMATE

Saab's Science Based Targets project has ramped up and all five cross-functional Climate Task Forces were initiated during the quarter, with the areas of Aviation, Energy Resilience, Product Innovation, Supplier Engagement and Travel & Transport. Saab has also initiated a pre-study in the area of alternative and renewable fuel sources specifically for one of our more complex and vertically integrated production processes. This pre-study is expected to be concluded during the second half of the year.

In the second quarter, Scope 1 & 2 emissions remained low and were at the same level as last year. This was driven by improved energy efficiency resulting in reduced emissions from district heating at some of our larger sites and increases in renewable energy at our international sites. However, emissions from business travel reported in Scope 1 increased in the period due to lifted COVID restrictions. During the first half of 2022, emissions decreased by 10% compared to the same period last year. This was in large due to the use of REC's (renewable energy certificates) at our sites.

PEOPLE

Employees are the driving force that will ensure that Saab stays at the forefront of technology. Occupational health and safety related to our employees, together with diversity and inclusion, are prioritised sustainability areas for Saab. In this interim report, Saab introduces a new performance indicator for occupational health and safety – Total Recordable Injuries (TRIFR). This indicator complements the Lost Time Injury Frequency Rate (LTIFR) performance indicator. In the quarter, the reported incidents per workplace injury declined, mainly due to a reclassification of COVID illness by the Swedish authorities, which means that it is no longer reported as an incident in the performance indicator.

Performance Indicators 1	2020	2021	22Q2
Lost Time Injury Frequency Rate 2 (LTIFR)	-	0.59	0.83
Total Recordable Injury Frequency Rate 3 (TRIFR)	-	-	2.2
Reported incidents per workplace injury 4	4.5	5.1	4.0
Share of women managers	26%	27%	27%
Share of women employees	23%	24%	24%

¹ All performance indicators are global

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

Significant events in January-June 2022:

On 20 January, Saab announced a contract for AT4 support weapon to the Indian Armed Forces. The Indian Armed Forces are new customers for AT4.
On 8 February, Saab received an order for the short-range air defence system RBS 70 NG to the Argentine Armed Forces.
On 9 March, Saab announced a contract modification from the U.S. Marine Corps within the Force on Force Training Systems – Next Program. The modification value is approx. USD 122 million, where USD 68 million was booked in Q1 2022 and USD 54 million in 2021.
On 18 March, Saab signed a contract with the Swedish Defence Material Administration (FMV) for the Mid-Life Upgrade of the third Gotland-class submarine, HMS Halland. The total order value is SEK 1.1 billion.
On 21 March, Saab and the Danish Ministry of Defence, Acquisition and Logistics Organisation (DALO) entered into a framework agreement for live training solutions. The potential order value is approximately DKK 550 million over a period of 15 years.
On 6 April, Saab held its Annual General Meeting in Linköping, Sweden. The Annual General Meeting decided on a dividend of SEK 4.90 per share to the shareholders. Read more on https://www.saab.com/agm.
On 11 April, Saab received an order from the Swedish Defence Materiel Administration to ensure the continued operation and the operational relevance of JAS 39 Gripen C/D. The order value is SEK 500 million.
On 5 May, Saab received an order from the Danish Ministry of Defence Acquisition and Logistics Organisation (DALO) for Carl-Gustaf® M4. The order makes Denmark the 15th customer of the M4 version.
On 10 May, Saab received an order from the Swedish Defence Materiel Administration for deliveries of ammunition for the recoilless Carl-Gustaf® rifle. The order value is approximately SEK 800 million and deliveries will take place 2023-2025.
On 12 May, Saab announced it has appointed Viktor Wallström as new Senior Vice President and Head of Group Communication. Viktor Wallström will start in the position no later than 1 October 2022 and will become a part of Saab's Group Management.
On 27 May, Saab announced a contract for components to the Carl-Gustaf®. The total order value is SEK 643 million and deliveries will take place during 2022 and 2023.
On 31 May, Saab completed a transaction whereby Lumibird SA acquired Saab's laser rangefinder business. The divested operations had revenues of around EUR 10 million in 2021.
On 1 June, Saab announced an order from the Swedish Defence Material Administration relating to future fighter aircraft development. The order value is approx. SEK 250 million.
On 16 June, Saab announced it had shipped the last five fully installed T-7A Red Hawk aft fuselages to partner Boeing. This completes Saab's deliveries in the EMD phase, which marks an important milestone in the programme.
On 30 June, Saab signed a contract with and received an order from the Swedish Defence Materiel Administration (FMV) for the GlobalEye Airborne Early Warning and Control (AEW&C) aircraft. The order includes two GlobalEye aircraft with deliveries planned during 2027. The order value is approximately SEK 7.3 billion. The contract also includes options that enable FMV to order up to two additional GlobalEye.

For more information on significant orders received during the year, see page 3 and the comments on the business areas on page 7-9 and in note 3. All press releases can be found on https://www.saab.com/newsroom.

Events after the conclusion of the period:

On 14 July, Saab announced it had signed a framework agreement with the Swedish Defence Material Administration for military training and simulation systems, and received the first orders within the new agreement. The order value was approximately SEK 340 million and booked in Q3 2022.

"The submarine competence places Sweden among one of few nations in the world with the capability to build modern and advanced submarines. The ceremony is not only a milestone for HMS Blekinge, it is also proof that Sweden has regained the capability. We are looking forward to when her sister HMS Skåne will follow in her tracks", said Micael Johansson, President and CEO Saab.

Completion of EMD T-7A deliveries

"Saab's proud 85 year legacy of designing and building aircraft continues and we're delivering on our promises. I'm excited to see the transfer of T-7A production to the United States at our state-of-the-art facility in Indiana," said Erik Smith, President and CEO of Saab in the U.S.

Consolidated income statement

MSEK	Note	Jan-Jun 2022	Jan-Jun 2021	Rolling 12 Months	Full Year 2021
Sales	4	19,389	19,219	39,324	39,154
Cost of goods sold		-15,233	-15,172	-31,010	-30,949
Gross income		4,156	4,047	8,314	8,205
Gross margin, %		21.4	21.1	21.1	21.0
Other operating income		87	25	208	146
Marketing expenses		-1,191	-1,123	-2,334	-2,266
Administrative expenses		-746	-687	-1,493	-1,434
Research and development costs		-855	-871	-1,643	-1,659
Other operating expenses		-38	-52	-62	-76
Share in income of associated companies and joint ventures		-21	-27	-22	-28
Operating income (EBIT) ¹⁾	3	1,392	1,312	2,968	2,888
Operating margin, %		7.2	6.8	7.5	7.4
Financial income		84	65	143	124
Financial expenses		-441	-223	-653	-435
Net financial items		-357	-158	-510	-311
Income before taxes		1,035	1,154	2,458	2,577
Taxes		-230	-244	-538	-552
Net income for the period		805	910	1,920	2,025
of which Parent Company's shareholders' interest		775	897	1,804	1,926
of which non-controlling interest		30	13	116	99
Earnings per share before dilution, SEK ²⁾		5.87	6.77	13.67	14.57
Earnings per share after dilution, SEK ³⁾		5.80	6.73	13.54	14.45
1) Of which depreciation/amortisation and write-downs		-1,011	-950	-1,999	-1,938
2) Average number of shares before dilution		131,977,407	132,399,374	131,953,615	132,164,599
3) Average number of shares after dilution		133,547,690	133,351,912	133,277,080	133,293,340

Consolidated statement of comprehensive income

MSEK	Jan-Jun 2022	Jan-Jun 2021	Rolling 12 Months	Full Year 2021
Net income for the period	805	910	1,920	2,025
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	3,381	736	3,130	485
Tax attributable to revaluation of net pension obligations	-697	-152	-645	-100
Total	2,684	584	2,485	385
Items that may be reversed in the income statement:
Translation differences	683	221	864	402
Cash flow hedges	130	-383	-109	-622
Tax attributable to cash flow hedges	-26	78	26	130
Total	787	-84	781	-90
Other comprehensive income/loss for the period	3,471	500	3,266	295
Net comprehensive income/loss for the period	4,276	1,410	5,186	2,320
of which Parent Company's shareholders' interest	4,223	1,393	5,037	2,207
of which non-controlling interest	53	17	149	113

Consolidated statement of financial position

MSEK Note	30 Jun 2022	31 Dec 2021	30 Jun 2021
ASSETS
Fixed assets:
Intangible fixed assets 6	12,318	12,162	11,888
Tangible fixed assets	7,453	7,147	6,919
Biological assets	353	385	376
Right of use assets	2,333	2,472	2,447
Shares in associated companies and joint ventures	394	404	478
Financial investments	43	37	33
Long-term receivables	702	595	817
Deferred tax assets	342	305	269
Total fixed assets	23,938	23,507	23,227
Current assets:
Inventories	13,269	11,609	11,062
Derivatives	1,839	779	961
Tax receivables	223	35	134
Accounts receivable	4,579	5,884	3,793
Contract assets	10,642	9,252	8,847
Other receivables	1,279	1,179	1,039
Prepaid expenses and accrued income	1,462	953	1,152
Short-term investments	9,723	10,140	8,799
Liquid assets 10	2,659	1,701	3,217
Total current assets	45,675	41,532	39,004
TOTAL ASSETS	69,613	65,039	62,231
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest	26,639	22,976	22,336
Non-controlling interest	326	273	236
Total shareholders' equity	26,965	23,249	22,572
Long-term liabilities:
Long-term lease liabilities	1,958	2,061	2,053
Other long-term interest-bearing liabilities 7	6,836	5,752	5,583
Other liabilities	88	81	80

Provisions for pensions 12	2,605	5,918	5,896
Other provisions	2,446	2,529	2,284
Deferred tax liabilities	791	137	272
Total long-term liabilities	14,724	16,478	16,168
Current liabilities:
Short-term lease liabilities	498	482	451
Other short-term interest-bearing liabilities 7	1,730	1,421	1,365
Contract liabilities	10,492	10,687	9,232
Accounts payable	3,657	3,534	3,307
Derivatives	1,728	615	561
Tax liabilities	381	179	117
Other liabilities	894	945	787
Accrued expenses and deferred income	7,475	6,377	6,920
Provisions	1,069	1,072	751
Total current liabilities	27,924	25,312	23,491
Total liabilities	42,648	41,790	39,659
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	69,613	65,039	62,231

Consolidated statement of changes in equity

MSEK	Capital stock	Other capital contri butions	Net result of cash flow hedges	Translation reserve	Retained earnings	Total parent company's shareholders' interest	Non controlling interest	Total shareholders' equity
Opening balance, 1 January 2021	2,174	6,099	458	16	12,719	21,466	178	21,644
Net comprehensive income/loss for the period January-June 2021			-305	217	1,481	1,393	17	1,410
Transactions with shareholders:
Share matching plan					87	87		87
Dividend					-622	-622		-622
Acquisition and sale of non-controlling interest					12	12	41	53
Closing balance,
30 June 2021	2,174	6,099	153	233	13,677	22,336	236	22,572
Net comprehensive income/loss for the period July-December 2021			-187	171	830	814	96	910
Transactions with shareholders:
Repurchase of shares					-246	-246		-246
Share matching plan					103	103		103
Dividend					-	-	-53	-53
Acquisition and sale of non-controlling interest					-31	-31	-6	-37
Closing balance,
31 December 2021	2,174	6,099	-34	404	14,333	22,976	273	23,249
Opening balance, 1 January 2022	2,174	6,099	-34	404	14,333	22,976	273	23,249
Net comprehensive income/loss for the period January-June 2022			104	660	3,459	4,223	53	4,276
Transactions with shareholders:
Share matching plan					91	91		91
Dividend					-647	-647	-	-647
Acquisition and sale of non-controlling interest					-4	-4	-	-4
Closing balance,
30 June 2022	2,174	6,099	70	1,064	17,232	26,639	326	26,965

Consolidated statement of cash flows

MSEK Note	Jan-Jun 2022	Jan-Jun 2021	Full Year 2021
Operating activities:
Income after financial items	1,035	1,154	2,577
Adjustments for items not affecting cash flows	1,681	1,496	3,513
Dividend from associated companies and joint ventures	9	-	72
Income tax paid	-280	-160	-373
Cash flow from operating activities before changes in working capital	2,445	2,490	5,789
Cash flow from changes in working capital:
Contract assets and liabilities	-1,562	1,874	2,929
Inventories	-1,625	-794	-1,320
Other current receivables	904	241	-1,636
Other current liabilities	1,250	688	401
Provisions	-317	-180	-450
Cash flow from operating activities	1,095	4,319	5,713
Investing activities:
Capitalised development costs	-248	-510	-891
Investments in other intangible fixed assets	-87	-159	-406
Investments in tangible fixed assets	-620	-667	-1,223
Sales and disposals of tangible fixed assets including biological assets	99	12	26
Investments in and sale of short-term investments	209	-718	-2,085
Investments in financial assets, associated companies and joint ventures	-104	-55	-125
Sale of financial assets, associated companies and joint ventures	2	-	3
Investments in operations	-	-20	-21
Sale of subsidiaries	-	19	19
Sale of operations	42	-	-
Cash flow from investing activities	-707	-2,098	-4,703
Financing activities:
Repayments of loans	-7	-1,218	-2,538
Amortisation of lease liabilities	-240	-222	-469
Raising of loans	1,394	704	2,248
Repurchase of shares	-	-	-246
Dividend paid to Parent Company's shareholders	-647	-622	-622
Dividend paid to non-controlling interest	-25	-	-27
Transactions with non-controlling interest	-5	52	15
Cash flow from financing activities	470	-1,306	-1,639
Cash flow for the period	858	915	-629
Liquid assets at the beginning of the period	1,701	2,273	2,273
Exchange rate difference in liquid assets	100	29	57
Liquid assets at end of period 10	2,659	3,217	1,701

Quarterly consolidated income statement

MSEK	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Sales	10,171	9,218	11,943	7,992	10,131	9,088	12,491	6,064
Cost of goods sold	-8,049	-7,184	-9,531	-6,246	-8,018	-7,154	-10,352	-6,238
Gross income	2,122	2,034	2,412	1,746	2,113	1,934	2,139	-174
Gross margin, %	20.9	22.1	20.2	21.8	20.9	21.3	17.1	-2.9
Other operating income	69	18	98	23	3	22	102	1,103
Marketing expenses	-638	-553	-620	-523	-570	-553	-629	-492
Administrative expenses	-384	-362	-407	-340	-351	-336	-336	-348
Research and development costs	-439	-416	-416	-372	-465	-406	-441	-264
Other operating expenses Share of income in associated companies	6	-44	-6	-18	-	-52	-23	-359
and joint ventures	2	-23	15	-16	-15	-12	-46	-129
Operating income (EBIT) ¹⁾	738	654	1,076	500	715	597	766	-663
Operating margin, %	7.3	7.1	9.0	6.3	7.1	6.6	6.1	-10.9
Financial income	52	32	28	31	2	63	94	37
Financial expenses	-240	-201	-103	-109	-68	-155	-142	-94
Net financial items	-188	-169	-75	-78	-66	-92	-48	-57
Income before taxes	550	485	1,001	422	649	505	718	-720
Taxes	-117	-113	-210	-98	-135	-109	-115	349
Net income for the period	433	372	791	324	514	396	603	-371
of which Parent Company's shareholders' interest	421	354	733	296	505	392	598	-380
of which non-controlling interest	12	18	58	28	9	4	5	9
Earnings per share before dilution, SEK ²⁾	3.19	2.68	5.56	2.24	3.81	2.96	4.50	-2.85
Earnings per share after dilution, SEK ³⁾	3.15	2.66	5.52	2.22	3.78	2.94	4.48	-2.83

1) Of which depreciation/amortisation and write-downs	-517	-494	-511	-477	-481	-469	-463	-349
2) Average number of shares before dilution	132,067,095	131,887,719	131,743,033	132,116,615	132,476,942	132,321,807	132,762,787	133,226,313
3) Average number of shares after dilution	133,782,303	133,267,371	132,861,467	133,198,087	133,446,047	133,213,468	133,553,781	134,048,466

Quarterly consolidated statement of comprehensive income

MSEK	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Net income for the period	433	372	791	324	514	396	603	-371
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	1,978	1,403	-345	94	328	408	326	-514
Tax attributable to revaluation of net pension obligations	-407	-290	71	-19	-68	-84	-65	106
Total	1,571	1,113	-274	75	260	324	261	-408
Items that may be reversed in the income statement:
Translation differences	414	269	123	58	-86	307	-293	-141
Net gain/loss on cash flow hedges	-84	214	-69	-170	79	-462	819	-54
Tax attributable to net gain/loss on cash flow hedges	18	-44	15	37	-28	106	-166	4
Total	348	439	69	-75	-35	-49	360	-191
Other comprehensive income/loss for the period	1,919	1,552	-205	0	225	275	621	-599
Net comprehensive income/loss for the period	2,352	1,924	586	324	739	671	1,224	-970
of which Parent Company's shareholders' interest	2,321	1,902	522	292	732	661	1,213	-976
of which non-controlling interest	31	22	64	32	7	10	11	6

Key ratios by quarter

MSEK	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Equity/assets ratio, (%)	38.7	38.0	35.7	36.4	36.3	36.8	35.7	35.5
Return on capital employed, % ³⁾ Return on equity, % ³⁾	8.1 7.8	8.1 8.4	8.1 9.0	7.7 8.5	4.4 5.2	4.3 5.2	4.3 5.1	5.4 7.0
Equity per share, SEK ¹⁾ ³⁾	201.55	188.85	174.31	170.42	168.50	167.59	162.32	152.91
Free cash flow, MSEK ³⁾ Free cash flow per share after dilution, SEK ²⁾ ³⁾	395 2.95	-361 -2.71	1,377 10.36	-1,403 -10.53	3,028 22.69	-265 -1.99	3,055 22.87	676 5.04

1) Number of shares excluding treasury shares 132,168,930 131,965,259 131,810,178 131,675,887 132,557,343 132,396,540 132,247,073 133,278,501 2) Average number of shares after dilution 133,782,303 133,267,371 132,861,467 133,198,087 133,446,047 133,213,468 133,553,781 134,048,466

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	Q2 2022	Operating margin	Q1 2022	Operating margin	Q4 2021	Operating margin	Q3 2021	Operating margin
Sales
Aeronautics	3,073		3,056		3,637		2,479
Dynamics	2,208		1,793		2,790		1,456
Surveillance	3,562		3,109		4,008		3,030
Kockums	889		817		1,128		707
Combitech	866		795		904		621
Corporate/elimination	-427		-352		-524		-301
Total	10,171		9,218		11,943		7,992
Operating income/loss
Aeronautics	178	5.8%	199	6.5%	267	7.3%	47	1.9%
Dynamics	408	18.5%	256	14.3%	371	13.3%	201	13.8%
Surveillance	223	6.3%	234	7.5%	400	10.0%	204	6.7%
Kockums	55	6.2%	46	5.6%	116	10.3%	33	4.7%
Combitech	55	6.4%	81	10.2%	69	7.6%	34	5.5%
Corporate	-181		-162		-147		-19
Total	738 -	7.3%	654 -	7.1%	1,076 -	9.0%	500 -	6.3%
MSEK	Q2 2021	Operating margin	Q1 2021	Operating margin	Q4 2020	Operating margin	Q3 2020	Operating margin
Sales
Aeronautics	3,044		3,103		3,577		1,770
Dynamics	2,789		1,655		2,924		1,480
Surveillance	3,036		3,299		4,438		2,410
Kockums	899		654		876		589
Combitech	825		766		865		621
Corporate/elimination	-462		-389		-189		-806
Total	10,131		9,088		12,491		6,064
Operating income/loss
Aeronautics	219	7.2%	213	6.9%	-315	-8.8%	-970	-54.8%
Dynamics	380	13.6%	161	9.7%	431	14.7%	112	7.6%
Surveillance	147	4.8%	166	5.0%	312	7.0%	165	6.8%
Kockums	32	3.6%	27	4.1%	46	5.3%	22	3.7%
Combitech	75	9.1%	87	11.4%	112	12.9%	25	4.0%
Corporate	-138		-57		180		-17
Total	715	7.1%	597	6.6%	766	6.1%	-663	-10.9%

2021 has been restated due to a minor structural change as parts of a department within Combitech has been migrated to Surveillance. Proforma statements are found at saab.com/investors/financial-data. 2020 has not been restated.

Multi-year overview

MSEK	2021	2020	2019	2018	2017
Order bookings	43,569	42,328	27,216	27,975	30,841
Order backlog at 31 December	105,177	99,816	93,293	102,184	107,233
Sales	39,154	35,431	35,433	33,156	31,666
Sales in Sweden, %	38	36	37	41	42
Sales in Europe excluding Sweden, %	17	18	16	14	14
Sales in North America, %	11	11	11	10	9
Sales in Latin America, %	15	13	12	12	8
Sales in Rest of the World, %	19	22	24	24	27
Operating income (EBIT)	2,888	1,315	2,937	2,266	2,250
Operating margin, %	7.4	3.7	8.3	6.8	7.1
Adjusted operating income	2,888	2,738	2,937	2,564	2,250
Adjusted operating margin, %	7.4	7.4	8.3	7.7	7.1
Depreciation/amortisation and write-downs	1,938	1,518	1,368	916	839
EBITDA	4,826	2,833	4,305	3,182	3,089
EBITDA margin, %	12.3	8.0	12.1	9.6	9.8
Income after financial items	2,577	1,112	2,607	1,796	2,099
Net income for the year	2,025	1,092	2,025	1,366	1,508
Total assets	65,039	60,568	59,858	56,128	44,998
Equity	23,249	21,644	20,809	19,633	14,285
Free cash flow ¹⁾	2,737	3,753	-2,036	-3,195	852
Return on capital employed, % ¹⁾	8.1	4.3	9.1	8.7	10.5
Return on equity, % ¹⁾	9.0	5.1	10.0	8.1	10.9
Equity/assets ratio, %	35.7	35.7	34.8	35.0	31.7
Earnings per share before dilution, SEK ¹⁾²⁾	14.57	8.07	14.88	11.27	12.79
Earnings per share after dilution, SEK ¹⁾²⁾	14.45	8.01	14.81	11.21	12.70
Dividend per share, SEK	4.90	4.70	-	4.50	5.50
Equity per share, SEK ¹⁾²⁾	174.31	162.32	154.48	145.43	121.86
Number of employees at year-end	18,153	18,073	17,420	17,096	16,427
Number of shares excluding treasury shares as of 31 December ²⁾	131,810,178	132,247,073	132,926,363	133,482,880	115,685,451
Average number of shares before dilution ²⁾	132,164,599	133,009,986	133,245,360	116,467,822	115,444,915
Average number of shares after dilution ²⁾	133,293,340	133,877,141	133,929,292	117,144,915	116,310,466

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

2) The average number of shares outstanding have for the comparative periods 2018-2017 been adjusted in accordance with IAS 33, Earnings per share, in accordance with the terms of the rights issue completed in 2018.

2017 has been restated according to the accounting principles regarding revenue recognition (IFRS 15).

Key ratios and goals

	Long-term target	Jan-Jun 2022	Jan-Jun 2021	Full Year 2021
Organic sales growth, %	5	-1	15	11
Operating margin, %	10	7.2	6.8	7.4
Equity/assets ratio, %	30	38.7	36.3	35.7

Parent company

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

Parent company income statement

MSEK	Jan-Jun 2022	Jan-Jun 2021	Full Year 2021
Sales	11,445	11,756	23,430
Cost of goods sold	-9,552	-9,480	-19,129
Gross income	1,893	2,276	4,301
Gross margin, %	16.5	19.4	18.4
Operating income and expenses	-1,663	-1,934	-3,662
Operating income (EBIT)	230	342	639
Operating margin, %	2.0	2.9	2.7
Financial income and expenses	21	11	1,248
Income after financial items	251	353	1,887
Appropriations	-	-	-487
Income before taxes	251	353	1,400
Taxes	-8	-73	-284
Net income for the period	243	280	1,116

Parent company balance sheet

MSEK Note	30 Jun 2022	31 Dec 2021	30 Jun 2021
ASSETS
Fixed assets:
Intangible fixed assets	926	920	847
Tangible fixed assets	4,492	4,427	4,336
Financial fixed assets	8,022	7,969	7,648
Total fixed assets	13,440	13,316	12,831
Current assets:
Inventories	7,956	7,696	7,164
Current receivables	16,777	16,920	14,665
Short term investments	9,722	10,135	8,786
Liquid assets	1,776	805	2,298
Total current assets	36,231	35,556	32,913
TOTAL ASSETS	49,671	48,872	45,744
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity	3,366	3,366	3,373
Unrestricted equity	10,922	11,235	10,535
Total shareholders' equity	14,288	14,601	13,908
Untaxed reserves, provisions and liabilities:
Untaxed reserves	2,686	2,686	2,199
Provisions	2,647	2,765	2,600
Liabilities 7	30,050	28,820	27,037
Total untaxed reserves, provisions and liabilities	35,383	34,271	31,836
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	49,671	48,872	45,744

LIQUIDITY, FINANCING, CAPITAL EXPENDITURES AND NUMBER OF EMPLOYEES

The Parent Company's net liquidity amounted to SEK 414 million as of 30 June 2022 compared to SEK 1,542 million as of 31 December 2021.

Investments in tangible fixed assets amounted to SEK 359 million (400). Investments in intangible assets amounted to SEK 82 million (146). At the end of the period, the Parent Company had 9,911 employees compared to 10,064 at the beginning of the year.

Notes to the financial statements

NOTE 1 CORPORATE INFORMATION

Saab AB (publ.), corporate identity no. 556036-0793, has its registered office in Linköping, Sweden. The company's head office is located at Olof Palmes gata 17, 5tr, SE-111 22 Stockholm, Sweden, telephone number +46-8-463 00 00. Saab's B shares are listed on Nasdaq Stockholm since 1998 and on the large cap list as of October 2006. The company's operations, including subsidiaries, associated companies and joint ventures, are described in the annual and sustainability report 2021.

NOTE 2 ACCOUNTING PRINCIPLES

The consolidated accounts for the first half-year 2022 have been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. The Parent Company's accounts have been prepared in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The Group's and Parent Company's accounting principles are described on pages 106-107, and concerning significant income statement and balance sheet items, in each note disclosure in the annual report 2021.

The half-year report is condensed and does not contain all the information and disclosures in the annual report and should therefore be read together with the annual report 2021. All the information on pages 1-28 constitutes the report for the period 1 January – 30 June 2022.

The Group and the Parent Company use the accounting principles and calculation methods as described in the annual report 2021.

Important estimates and assumptions are disclosed in note 2 in the annual report 2021. As a consequence of COVID-19, Saab has during the second quarter 2022 analysed whether to revise the estimates and assumptions for these areas as well as measurements of financial instruments including impairment of accounts receivable and contract assets. This has not resulted in any significant adjustments.

NOTE 3 SEGMENT REPORTING

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

2021 has been restated due to a minor structural change as parts of a department within Combitech has been migrated to Surveillance. Proforma statements are available at saab.com/investors/financialdata.

The Group's operating segments recognise all lease contracts as expenses on a straight-line basis over the lease term.

Aeronautics

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

Dynamics

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

Surveillance

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

Kockums

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

Combitech

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

Order bookings per operating segment

MSEK	Jan-Jun 2022	Jan-Jun 2021	Change, %	Q2 2022	Q2	2021 12 Months	Rolling Full Year 2021
Aeronautics	4,138	4,363	-5	2,839	2,322	7,603	7,828
Dynamics	6,296	4,747	33	3,663	3,406	12,458	10,909
Surveillance	12,170	5,019	142	9,861	3,316	21,216	14,065
Kockums	1,893	888	113	508	436	9,858	8,853
Combitech	1,683	1,725	-2	877	881	3,302	3,344
Corporate/elimination	-702	-996		-385	-486	-1,136	-1,430
Total	25,478	15,746	62	17,363	9,875	53,301	43,569

Order bookings per region

MSEK	2022	Jan-Jun Jan-Jun 2021	Change, %	Q2 2022	2021	Q2 Full Year 2021
Sweden	16,435	7,237		127 12,354	3,627	20,188
Rest of Europe	3,005	4,315	-30	1,797	3,057	13,880
North America	2,114	2,471	-14	966	2,037	3,178
Latin America	942	174	441	485	107	525
Asia	1,683	897	88	1,056	684	3,997
Africa	42	-29	-245	3	-30	187
Australia, etc.	1,257	681	85	702	393	1,614
Total		25,478 15,746		62 17,363	9,875	43,569
Order backlog per operating segment
MSEK		30 Jun 2022		31 Dec 2021		30 Jun 2021

Order backlog per operating segment

Aeronautics	40,455	42,429	45,057
Dynamics	24,393	21,831	19,798
Surveillance	38,319	32,012	29,610
Kockums	9,292	9,099	2,968
Combitech	1,182	1,226	1,133
Corporate/elimination	-1,274	-1,420	-1,852
Total	112,367	105,177	96,714

Order backlog per region

MSEK	30 Jun 2022	31 Dec 2021	30 Jun 2021
Sweden	42,741	34,207	29,101
Rest of Europe	25,495	25,782	19,639
North America	6,607	6,054	7,208
Latin America	20,755	21,870	24,202
Asia	10,959	11,895	11,498
Africa	345	334	138
Australia etc.	5,465	5,035	4,928
Total	112,367	105,177	96,714

Sales per operating segment

MSEK	2022	2021	Jan-Jun Jan-Jun Change, %	Q2 2022	2021	Q2 Change,	Rolling % 12 Months	Full Year 2021
Aeronautics	6,129	6,147	-0	3,073	3,044	1	12,245	12,263
Dynamics	4,001	4,444	-10	2,208	2,789	-21	8,247	8,690
Surveillance	6,671	6,335	5	3,562	3,036	17	13,709	13,373
Kockums	1,706	1,553	10	889	899	-1	3,541	3,388
Combitech	1,661	1,591	4	866	825	5	3,186	3,116
Corporate/elimination	-779	-851		-427	-462		-1,604	-1,676
Total		19,389 19,219		1 10,171 10,131		0	39,324	39,154

Sales per region

MSEK	Jan-Jun 2022	% of sales	Jan-Jun 2021	% of sales	Full Year 2021	% of sales
Sweden	7,868	41	6,975	36	14,841	38
Rest of Europe	3,410	18	3,080	16	6,553	17
North America	2,027	10	2,200	11	4,203	11
Latin America	2,066	11	3,108	16	5,786	15
Asia	2,797	14	2,548	13	5,507	14
Africa	38	0	153	1	175	0
Australia, etc.	1,183	6	1,155	6	2,089	5
Total	19,389	100	19,219	100	39,154	100

Information on large customers

During the first half-year 2022, Saab had two customers that separately accounted for 10 per cent or more of the Group's sales. The Swedish Defence is a customer of all business areas and total sales amounted to SEK 6,625 million (5,875). The Brazilian State is a customer primarily to business area Aeronautics and total sales amounted to SEK 1,944 million (2,858).

Seasonal variation

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

Operating income per operating segment

MSEK	Jan-Jun 2022	% of sales	Jan-Jun 2021	% of sales	Q2 2022	Q2	2021 12 Months	Rolling Full Year 2021
Aeronautics	377	6.2	432	7.0	178	219	691	746
Dynamics	664	16.6	541	12.2	408	380	1,236	1,113
Surveillance	457	6.9	313	4.9	223	147	1,061	917
Kockums	101	5.9	59	3.8	55	32	250	208
Combitech	136	8.2	162	10.2	55	75	239	265
The operating segments' operating
income	1,735	8.9	1,507	7.8	919	853	3,477	3,249
Corporate	-343		-195		-181	-138	-509	-361
Total	1,392	7.2	1,312	6.8	738	715	2,968	2,888

Depreciation/amortisation and write-downs per operating segment

		Jan-Jun Jan-Jun	Change,	Q2	Q2		Rolling Full Year
MSEK	2022	2021	%	2022		2021 12 Months	2021
Aeronautics	82	59	39	41	31	148	125
Dynamics	38	44	-14	16	23	82	88
Surveillance	399	380	5	200	191	786	767
Kockums	15	20	-25	8	11	30	35
Combitech	4	3	33	2	1	9	8
Corporate	473	444	7	250	224	944	915
Total	1,011	950	6	517	481	1,999	1,938

Operational cash flow per operating segment

MSEK	Jan-Jun 2022	Jan-Jun 2021	Q2 2022	Q2	2021 12 Months	Rolling Full Year 2021
Aeronautics	-120	-85	326	700	-803	-768
Dynamics	405	-276	173	256	1,386	705
Surveillance	785	4,145	650	2,405	680	4,040
Kockums	-368	-114	-242	1	-267	-13
Combitech	20	160	18	85	131	271
Corporate	-370	-838	-394	-295	-491	-959
Total	352	2,992	531	3,152	636	3,276

Capital employed per operating segment

MSEK		30 Jun 2022 31 Dec 2021 30 Jun 2021
Aeronautics	9,256	8,888	9,109
Dynamics	5,489	5,629	5,383
Surveillance	11,287	12,287	12,191
Kockums	1,375	1,391	1,237
Combitech	943	1,057	818
Corporate/elimination	11,782	8,525	7,810
Total	40,132	37,777	36,548

Full time equivalents (FTE's) per operating segment

Number at end of the period		30 Jun 2022 31 Dec 2021 30 Jun 2021
Aeronautics	5,140	5,201	5,420
Dynamics	3,250	3,123	3,089
Surveillance	5,378	5,254	5,264
Kockums	1,312	1,216	1,212
Combitech	1,974	1,968	1,933
Corporate	1,312	1,249	1,180
Total	18,366	18,011	18,098

NOTE 4 DISTRIBUTION OF SALES

		Aeronautics	Dynamics			Surveillance	Kockums		Combitech			Corporate/ elimination		Group

MSEK	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Jun 2022	Jan-Jun 2021
External sales	6,101	6,100	3,900	4,354	6,438	6,129	1,690	1,537	1,153	1,018	107	81	19,389	19,219
Internal sales	28	47	101	90	233	206	16	16	508	573	-886	-932	-	-
Total sales	6,129 -	6,147 -	4,001 -	4,444 -	6,671 -	6,335 -	1,706 -	1,553 -	1,661 -	1,591 -	-779 -	-851 -	19,389 -	19,219 -
Sales by customer:
Military customers	5,777	5,779	3,680	4,209	5,475	5,368	1,690	1,537	468	421	29	39	17,119	17,353
Civilian customers	324	321	220	145	963	761	-	-	685	597	78	42	2,270	1,866
Total external sales	6,101 -	6,100 -	3,900 -	4,354 -	6,438 -	6,129 -	1,690 -	1,537 -	1,153 -	1,018 -	107 -	81 -	19,389 -	19,219 -
Sales by significant source:
Long-term customer
contracts	4,954	4,989	1,036	1,451	4,712	4,443	1,302	1,157	25	69	35	29	12,064	12,138
Services	1,072	1,064	617	513	1,192	1,216	375	380	1,101	944	66	24	4,423	4,141
Products	75	47	2,247	2,390	534	470	13	-	27	5	6	28	2,902	2,940
Total external sales	6,101 -	6,100 -	3,900 -	4,354 -	6,438 -	6,129 -	1,690 -	1,537 -	1,153 -	1,018 -	107 -	81 -	19,389 -	19,219 -
Sales by domain:
Air	5,654	5,684	119	93	2,668	2,881	-	-	21	16	16	24	8,478	8,698
Land	53	45	3,052	3,174	1,166	961	-	-	479	430	-	-1	4,750	4,609
Naval	1	-	716	1,058	1,585	1,389	1,690	1,537	5	4	67	24	4,064	4,012
Civil Security	24	35	9	20	1,009	867	-	-	155	145	16	6	1,213	1,073
Commercial Aeronautics	367	336	-	-	1	6	-	-	3	-	9	30	380	372
Other/not distributed	2	-	4	9	9	25	-	-	490	423	-1	-2	504	455
Total external sales	6,101	6,100	3,900	4,354	6,438	6,129	1,690	1,537	1,153	1,018	107	81	19,389	19,219
Sales recognition method:
Over time	5,608	5,647	1,486	1,942	5,217	5,283	1,631	1,511	1,120	949	39	30	15,101	15,362
Point in time	493	453	2,414	2,412	1,221	846	59	26	33	69	68	51	4,288	3,857
Total external sales	6,101	6,100	3,900	4,354	6,438	6,129	1,690	1,537	1,153	1,018	107	81	19,389	19,219

NOTE 5 DIVIDEND TO PARENT COMPANY'S SHAREHOLDERS

The Annual General Meeting 2022 held on April 6 decided on a dividend to the Parent Company's shareholders of SEK 4.90 per share, corresponding to a total dividend of SEK 647 million. Record date for the dividend was April 8 2022 and the dividend was paid out on April 13 2022.

NOTE 6 INTANGIBLE FIXED ASSETS

MSEK	30 Jun 2022	31 Dec 2021	30 Jun 2021
Goodwill	5,419	5,253	5,190
Capitalised development costs	6,010	6,040	5,935
Other intangible assets	889	869	763
Total	12,318	12,162	11,888

NOTE 7 NET LIQUIDITY/DEBT

MSEK		30 Jun 2022 31 Dec 2021	30 Jun 2021
Assets:
Liquid assets	2,659	1,701	3,217
Short-term investments	9,723	10,140	8,799
Total liquid investments	12,382	11,841	12,016
Short-term interest-bearing receivables	71	66	71
Long-term interest-bearing receivables	559	457	404
Long-term receivables attributable to pensions	39	39	-
Total interest-bearing assets	13,051	12,403	12,491
Liabilities:
Lease liabilities	2,456	2,543	2,504
Bonds and other debt instruments	8,472	7,085	6,900
Liabilities to associated companies
and joint ventures	48	43	41
Other interest-bearing liabilities	46	44	6
Provisions for pensions ¹⁾	2,145	4,813	4,525
Total interest-bearing liabilities and provisions
for pensions	13,167	14,528	13,976
Net liquidity (+) / net debt (-)	-116	-2,125	-1,485

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

Committed credit lines

MSEK	Facilities	Drawings	Available
Revolving credit facility (Maturity 2026 SEK 4 billion, 2023, SEK 2 billion)	6,000	-	6,000
Overdraft facility (Maturity 2022, SEK 31 million, 2023, SEK 35 million)	66	-	66
Total	6,066	-	6,066
Parent Company
MSEK			30 Jun 2022 31 Dec 2021 30 Jun 2021
Long-term bonds and other debt instruments	6,792	5,707	5,582
Short-term bonds and other debt instruments	1,680	1,378	1,318

Since 2009, Saab has a Medium Term Note programme (MTN) to enable issuance of bonds in the capital market. During 2018 the MTN programme was increased to SEK 10,000 million. A major part of the bonds are issued as Floating Rate Notes (FRN). During the second quarter new bonds were issued to an amount of SEK 1,380 million, SEK 380 million with maturity 2030 and SEK 500 million with maturity 2031 and 2032 respectively. Bonds outstanding within the MTN programme amounts to SEK 8,313 million at the end of the first half-year 2022.

Total 8,472 7,085 6,900

In December 2015, Saab signed a Schuldschein loan amounting to EUR 100 million. Remaining Schuldshein loans amount to EUR 15 million.

No credit facilities have been utilised during the period.

NOTE 8 CAPITAL EMPLOYED

MSEK	30 Jun 2022	31 Dec 2021	30 Jun 2021
Total assets	69,613	65,039	62,231
Less non-interest bearing liabilities	29,481	27,262	25,683
Capital employed	40,132	37,777	36,548

NOTE 9 FINANCIAL INSTRUMENTS

Classification and categorisation of financial assets and liabilities ²⁾

Carrying amount	30 Jun 2022	31 Dec 2021	30 Jun 2021
Financial assets:
Valued at amortised cost ⁴⁾:
Accounts receivable, contract assets and other receivables	16,965	16,255	13,824
Liquid assets	2,659	1,701	3,217
Long-term receivables	663	556	817
Valued at fair value through profit and loss ³⁾:
Short-term investments	9,723	10,140	8,799
Derivatives for trading	42	29	26
Financial investments	43	37	33
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	1,797	750	935
Total financial assets	31,892	29,468	27,651
Financial liabilities:
Valued at amortised cost:
Interest-bearing liabilities ¹⁾	11,022	9,716	9,452
Other liabilities ⁴⁾	9,799	8,750	8,848
Valued at fair value through profit and loss ³⁾:
Derivatives for trading	34	9	5
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	1,694	606	556
Total financial liabilities	22,549	19,081	18,861
¹⁾ Fair value	11,167	9,734	9,452

²⁾ Derivatives with positive values are recognised as assets and derivatives with negative values are recognised as liabilities. Derivatives with a legal right of offset amount to MSEK 937.

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

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

The Group has used the same valuation methods as in the year-end closing of 2021, as described in the annual report 2021 on page 139, note 35. As of June 30 2022, the Group had the following financial assets and liabilities at fair value:

Financial assets at fair value

	30 Jun
MSEK		2022 Level 1	Level 2	Level 3
Bonds and interest-bearing securities	9,723	9,723	-	-
Forward exchange contracts	1,272	-	1,272	-
Currency options	3	-	3	-
Interest rate swaps	342	-	342	-
Cross currency basis swaps	21	-	21	-
Electricity derivatives	201	201	-	-
Shares, participations
and long-term receivables	43	-	-	43
Total	11,605	9,924	1,638	43

Financial liabilities at fair value

MSEK	30 Jun	2022 Level 1	Level 2	Level 3
Forward exchange contracts	1,701	-	1,701	-
Currency options	6	-	6	-
Interest rate swaps	21	-	21	-
Total	1,728	-	1,728	-

NOTE 10 SUPPLEMENTAL INFORMATION ON STATEMENT OF CASH FLOWS

Free cash flow

MSEK	Jan-Jun 2022	Jan-Jun 2021	Q2 2022	Q2 2021	Full year 2021
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	2,558	2,487	1,329	1,227	5,846
Cash flow from changes in working capital:
Contract assets and liabilities	-1,562	1,874	-339	858	2,929
Inventories	-1,625	-794	-624	164	-1,320
Other current receivables	904	241	332	990	-1,636
Other current liabilities	1,250	688	431	596	401
Provisions	-317	-180	-232	-42	-450
Change in working capital	-1,350	1,829	-432	2,566	-76
Cash flow from operating activities excluding taxes and other financial items	1,208	4,316	897	3,793	5,770
Investing activities:
Investments in intangible fixed assets	-335	-669	-149	-327	-1,297
Investments in tangible fixed assets	-620	-667	-312	-325	-1,223
Sales and disposals of tangible fixed assets including biological assets	99	12	95	11	26
Cash flow from investing activities ²⁾	-856	-1,324	-366	-641	-2,494
Operational cash flow	352	2,992	531	3,152	3,276
Taxes and other financial items	-353	-219	-173	-117	-526
Sale of and investments in financial assets, associated companies and joint ventures	-7	-9	-5	-7	-11
Investments in operations	-	-20	-	-	-21
Sale of subsidiaries	-	19	-	-	19
Sale of operations	42	-	42	-	-
Free cash flow	34	2,763	395	3,028	2,737

1) Including amortisation of lease liabilities

		Jan-Jun Jan-Jun	Full Year	Q2	Q2
MSEK	2022	2021	2021	2022	2021
Free cash flow	34	2,763	2,737	395	3,028
Investing activities – interest-bearing:
Short-term investments	209	-718	-2,085	-83	-949
Other financial investments and receivables	-95	-46	-111	-62	-23
Financing activities:
Repayments of loans	-7	-1,218	-2,538	-	-365
Raising of loans	1,394	704	2,248	1,394	700
Repurchase of shares	-	-	-246	-	-
Dividend paid to the Parent Company's
shareholders	-647	-622	-622	-647	-622
Dividend paid to non-controlling interest	-25	-	-27	-	-
Transactions with non-controlling interest	-5	52	15	-5	-10
Cash flow for the period	858	915	-629	992	1,759
Liquid assets
MSEK		30 Jun 2022	31 Dec 2021		30 Jun 2021

The following components are included in liquid assets:
Cash and bank balances		1,647	1,401		1,617
Bank deposits		1,012		300	1,600
Total according to balance sheet		2,659	1,701		3,217
Total according to statement of cash flows		2,659	1,701		3,217

Free cash flow vs. statement of cash flows

NOTE 11 BUSINESS COMBINATIONS

No significant acquisitions through business combinations were made during the first half-year 2022.

NOTE 12 DEFINED-BENEFIT PLANS

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

Pension obligation according to IAS 19

MSEK	30 Jun 2022	31 Dec 2021	30 Jun 2021
Defined-benefit obligation	10,883	13,729	12,809
Special employers' contribution	460	1,105	1,371
Less assets under management	8,777	8,955	8,284
Total provisions for pensions	2,566	5,879	5,896
of which reported as long-term receivable	39	39	-

Actuarial gains and losses are recognised in other comprehensive income. Actuarial gain related to the Swedish pension plans amounted to SEK 3,381 million net in the first half-year 2022 primarily due to the following:

Assumed discount rate has increased by 225 basis points, from 1.50% to 3.75% and the inflation assumption has increased by 50 basis points, from 2.25% to 2.75% compared to the beginning of the year. The net of these revised assumptions amounted to a gain of SEK 3,851 million.

Revised demographical assumptions led to an actuarial loss of SEK 491 million.

Negative experience adjustment has resulted in an actuarial loss of SEK 396 million.

The actuarial gain related to the special employer's contribution amounted to SEK 660 million.

The return on assets under management was lower than expected which led to an actuarial loss of SEK 243 million.

NOTE 13 CONTINGENT LIABILITIES

No additional significant commitments have arisen during the first halfyear 2022. With regard to the Group's so-called performance guarantees

for commitments to customers, the likelihood of an outflow of resources is estimated as remote and, as a result, no value is recognised.

NOTE 14 TRANSACTIONS WITH RELATED PARTIES

No significant transactions have occurred during the first half-year 2022. Related parties with which the Group has transactions are described in note 37 in the Annual Report 2021.

NOTE 15 DEFINITIONS

Below are definitions of financial key ratios that are used in the report. For more information and explanations regarding the usage of these key ratios, please see saabgroup.com, investor, financial data, key ratios.

Capital employed

Total assets less non-interest-bearing liabilities.

Earnings per share

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

EBITDA

Operating income before depreciation/amortisation and write-downs.

EBITDA adjusted for items affecting comparability

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

EBITDA margin

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

EBITDA margin adjusted for items affecting comparability

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

Effective tax rate

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

Equity/assets ratio

Equity in relation to total assets.

Equity per share

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

Free cash flow

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

Free cash flow per share

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

Gross income adjusted for items affecting comparability

Gross income adjusted for items classified as affecting comparability.

Gross margin

Gross income as a percentage of sales.

Gross margin adjusted for items affecting comparability

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

Items affecting comparability

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

Net investments

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

Net liquidity/net debt

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

Net debt to EBITDA

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

Operating income

Income before financial items and tax.

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

Operating margin adjusted for items affecting comparability

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

Operating margin

Operating income (EBIT) as a percentage of sales.

Operational cash flow

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

Order backlog

Total value of orders at the end of the period.

Order bookings

Total value of orders received during the period.

Organic sales growth

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

Research and development, R&D

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

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

Return on capital employed

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

Return on equity

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

Sales adjusted for items affecting comparability

Sales adjusted for items classified as affecting comparability

Glossary

	AEW&CS Airborne Early Warning & Control System
C4I	Command, Control, Communications, Computers, and Intelligence
FMV	Swedish Defence Materiel Administration, Sw, "Försvarets Materielverk"
FRN	Floating Rate Note
FTE	Full Time Equivalent, corresponds to one employee working full-time for one year
IAS	International Accounting Standards
IFRS	International Financial Reporting Standards
MTN	Medium Term Note, loan facility for issuance of bonds with a duration of 1-15 years

The Board of Directors and the President have ensured that the half-year report provides an accurate overview of the Parent Company's and the Group's operations, financial position and results, and that it describes the significant risks and uncertainties faced by the Parent Company and the companies in the Group.

STOCKHOLM 21 JULY 2022

Saab AB (publ)

Marcus Wallenberg

Chairman

Bert Nordberg Board member Henrik Henriksson Board member

Danica Kragic Jensfelt Board member

Sara Mazur Board member

Erika Söderberg Johnson Board member

Johan Menckel Board member

Daniel Nodhäll Board member

Lena Erixon Board member

Joakim Westh Board member

Stefan Andersson Board member

Göran Andersson Board member

Magnus Gustafsson Board member

Micael Johansson

President and CEO and Board member

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

Media: Saab press center ph +46 734 18 00 18

Financial market: Merton Kaplan, Head of Investor Relations ph +46 734 18 20 71

Press and financial analyst conference: 21 July 2022 at 10.00 (CET)

You are welcome to participate by the live webcast or dial in to the conference call. It is possible to post questions both over the web and in the conference call.

Live webcast:

https://www.saab.com/investors/webcast/Q2-2022

Conference call:

Please dial in using one of the numbers below: Sweden: +46 8 5051 0031 UK: +44 207 107 06 13 US: +1 631 570 56 13

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

CALENDAR

Q3 Interim report 2022 Published 28 October 2022

Year-end report 2022 Published 10 February 2023

Q1 Interim report 2023 Published 26 April 2023

IMPORTANT INFORMATION

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

This information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on 21 July 2022 at 07.30 (CET)

AI Terminal

SAAB

2958_ir_2022-07-21_aa55869f-971c-4e31-b83e-7fed6dc814cc.pdf

YEAR-Well positioned to capture END REPORT long-term growth

KEY HIGHLIGHTS Q2 2022

FINANCIAL HIGHLIGHTS

COMMENTS FROM THE CEO

Well positioned to capture long-term growth

Outlook 2022

SALES GROWTH:

OPERATING INCOME:

OPERATIONAL CASH FLOW:

Orders

SECOND QUARTER 2022

JANUARY-JUNE 2022

Sales

SECOND QUARTER 2022

JANUARY-JUNE 2022

SALES GROWTH

SALES PER REGION

Order backlog duration:

Defence/Civil

Sales Jan-Jun, MSEK

Income

SECOND QUARTER 2022

JANUARY-JUNE 2022

Financial net

Tax

Financial position and liquidity

Key indicators of financial position and liquidity

Change in net debt Jan-Jun 2022

Cash flow

SECOND QUARTER 2022

JANUARY-JUNE 2022

Business Area Aeronautics

Market and orders

Sales in Aeronautics was impacted by

Cash flow

Business Area Dynamics

MARKET

Market and orders

Sales, income and margin

Cash flow

Business Area Surveillance

Market and orders

Sales, income and margin

Cash flow

Business Area Kockums

MARKET

Market and orders

Sales, income and margin

Cash flow

Combitech

ORDER

MARKET

Market and orders

Sales, income and margin

Cash flow

Corporate

Acquisitions and divestments 2022

Share repurchase

Risks and uncertainties

COVID-19 risk

Risks related to the armed conflict in Ukraine

OWNERS

Personnel

Sustainability

SUSTAINABILITY AT SAAB

HIGHLIGHTS DURING THE QUARTER

DEVELOPING THE GOVERNANCE

CLIMATE

PEOPLE

Significant events in January-June 2022:

Events after the conclusion of the period:

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Quarterly consolidated income statement