FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
===== SIDA 1 =====
Strong sales
growth and
cash flow
Q3
INTERIM REPORT 2024
Saab’s next generation
weapon locating radar
system Arthur
===== SIDA 2 =====
2 IN TER IM R EPO RT Q3 2024
July-September 2024
Key Highlights
▪ Order bookings increased 41% and amounted to SEK
21,173m (14,977), driven by strong growth in Dynamics.
▪ Organic growth was 17% and sales amounted to SEK
13,546m (11,527), with growth from all business areas.
▪ Operating income increased 38% and amounted to SEK
1,187m (859), corresponding to an EBIT margin of 8.8% (7.5).
▪ Net income increased to SEK 972m (656) and earnings per
share amounted to SEK 1.79 (1.21).
▪ Operational cash flow improved in the quarter and amounted
to SEK 3,188m (-2,058), driven by large customer payments.
▪ Net debt position was SEK 0.5bn (-1.4) at the end of the
period.
▪ The full year 2024 outlook on organic sales growth, EBIT
growth and positive operational cash flow is reiterated.
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 79,242 46,310 71 21,173 14,977 41 77,811
Order backlog 190,056 138,501 37 153,409
Sales 42,901 35,487 21 13,546 11,527 18 51,609
Gross income 9,377 7,743 21 2,912 2,481 17 11,260
Gross margin, % 21.9 21.8 21.5 21.5 21.8
EBITDA 5,668 4,526 25 1,888 1,424 33 6,558
EBITDA margin, % 13.2 12.8 13.9 12.4 12.7
Operating income (EBIT) 3,709 2,852 30 1,187 859 38 4,272
Operating margin, % 8.6 8.0 8.8 7.5 8.3
Net income 2,768 2,189 26 972 656 48 3,443
of which Parent Company’s shareholders’ interest 2,736 2,158 27 966 652 48 3,381
Earnings per share after dilution, SEK ²⁾ 5.08 4.02 27 1.79 1.21 48 6.29
Return on equity, % ¹⁾ 11.8 11.2 11.1
Operational cash flow -1,061 -534 3,188 -2,058 3,157
Free cash flow -2,274 -993 2,622 -2,554 1,566
Free cash flow per share after dilution, SEK ²⁾ -4.22 -1.85 4.86 -4.75 2.91
Average number of shares after dilution ²⁾ 538,636,607 537,472,268 539,056,834 538,346,168 537,511,328
¹⁾ Return on equity is measured over a rolling 12-month
period.
²⁾ Comparison periods adjusted for share split 4:1.
21
Order bookings, SEK bn
17
Organic sales growth, %
8.8
Operating margin, %
Financial highlights
===== SIDA 3 =====
3 IN TER IM R EPO RT Q3 2024
The geopolitical situation in the world is unstable
and the escalation of the military conflict in the
Middle East has deteriorated the security
situation even further. In Europe, the increasing
need to replenish defence materiel is substantial
and will require long-term efforts. Meanwhile, the
military aid to Ukraine to protect the country’s
independence and freedom remains crucial.
Rebuilding Ukraine’s defence and strengthening
Europe’s own capabilities will take many years.
We are working hard to meet our customers’
increased demand and are investing in capacity,
building new production plants and adding
competences. We are doing this at the same
time as delivering strong growth and improving
our profitability. Our ongoing investments in R&D
will future-proof Saab as a technology leader and
ensure that we remain competitive and prepared
to meet the higher long-term industry demand.
During the quarter, we took the decision to invest
in a new production facility in Michigan, U.S., that
will focus on munitions and precision weapon
systems. The new plant will boost U.S. domestic
manufacturing and strengthen our capacity to
meet the industry’s growth. In Sweden, we are
increasing capacity in the Ground Combat
business, including a fully automated production
line for the AT4 and NLAW. These are examples
of investments which will increase our efficiency
going forward.
The demand for our broad portfolio remains high
and in the third quarter Saab continued to deliver
strong order growth of 41%, with significant
order intake in Dynamics. Total order bookings
amounted to SEK 21.2 billion (15.0) and included
a large defence equipment and systems
contract from a Western customer of SEK 6.6
billion. Moreover, Saab received a first
MSHORAD (mobile short -range air defence)
order from Lithuania of SEK 1.3 billion, and after
the reporting period, Lithuania ordered an
additional MSHORAD solution for SEK 1.2 billion,
which will be booked in Q4. In the period, we also
received an order of SEK 700 million for the
Giraffe 1X radar with associated command and
control system from Sweden.
Moreover, Saab was awarded a five -year
framework contract by the U.S. Army, with a
potential value of SEK 5 billion, for their IAM
(Individual Assault Munition ) programme, where
Saab offered a new version of the AT4 system .
The strength of our portfolio is reflected in the
order growth of both large and small -sized
orders in the quarter . Our backlog is now SEK
190 billion and will support future growth for the
company.
Organic sales growth was 17.4% in the quarter
and sales amounted to SEK 13.5 billion (1 1.5).
Sales performance was particularly strong in
Dynamics, Surveillance and Kockums. Deliveries
and activity level across our businesses are high
and will continue in the fourth quarter . We
reiterate our organic sales growth outlook to be
between 15-20%, but at the upper end of the
range, for the full year 2024.
Operating income increased 38% to SEK 1.2
billion (0.9) in the quarter with a margin of 8.8%
(7.5). The positive trend in our profitability is
largely supported by the contribution from
Surveillance and Dynamics but also from the
growth in our other business areas . In the
quarter, Surveillance showed a strong margin
uplift from higher volumes and successful
project completions, while Dynamics margins
were lower due to the phasing of deliveries in
Ground Combat. We have a high focus on scale
and efficiency in our operations and expect this
to support Saab’s profitable growth in the years
to come without compromising on our
investments and R&D. We reconfirm our outlook
of op erating income growth to be higher than
organic sales growth for the full year 2024.
Operational cash flow improved substantially in
the third quarter and amounted to SEK 3.2 billion
(-2.1). This was a result of large customer
payments partly offset by increased inventory
and investments. We remain confident that cash
flow for the full year will be positive.
We are continuing our long -term efforts to
ensure progress towards our science -based
climate targets. Our rapid growth and expansion,
however, brin gs challenges and in the quarter
our CO₂ emissions increased by 8%. We remain
focused on prioritising our efforts in this area and
we finalised Saab’s new Energy Strategy in the
quarter. The strategy further defines the
direction required to achieve energy resilience
and offers guidelines to support the business on
our growth journey.
I would like to thank all employees for their
commitment and contributions to the strong
performance in the quarter.
CEO comments
Strong sales growth
and cash flow
Micael Johansson
President and CEO
Outlook 2024
Sales growth:
Organic sales growth between 15-20%
Operating income:
Operating income growth higher than
organic sales growth
Operational cash flow:
Operational cash flow to be positive
Targets 2023-2027
Sales growth:
Organic sales growth of around 15%
(compound annual growth rate)
Operating income:
Operating income growth higher than
organic sales growth
Operational cash flow:
Cash flow conversion of minimum 70%,
cumulative for the 5-year period
===== SIDA 4 =====
4 IN TER IM R EPO RT Q3 2024
Orders
Third quarter 2024
Order bookings increased 41 per cent and amounted to SEK 21,173 million (14,977), driven by
orders received within Dynamics. Large orders increased 71 per cent and amounted to SEK 12,198
million (7,128). Small orders increased 39 per cent, amounting to SEK 4,347 million (3,132) while
medium-sized orders were at similar levels as the third quarter last year and amounted to SEK 4,628
million ( 4,717). Key orders in the quarter included the large order for defence systems to an
undisclosed Western country of SEK 6.6 billion, the contract for MSHORAD to Lithuania of SEK 1.3
billion and the order for the Giraffe 1X surface radar to Sweden of SEK 700 million.
January-September 2024
Order bookings for the first nine months amounted to SEK 79,242 million (46,310), corresponding
to an increase of 71 per cent. This was driven by significant growth in large orders, which amounted
to 47,818 million (18,622) in the first nine months. Small orders increased 24 per cent and amounted
to SEK 13,662 million (11,013) and medium-sized orders increased 7 per cent and amounted to SEK
17,762 million (16,675). Orders increased in all business areas except Aeronautics in the period.
The order backlog amounted to SEK 190,056 million, an increase of 24 per cent compared to SEK
153,409 million at the beginning of the year. In total, 72 per cent of the backlog is attributable to
international markets, compared to 64 per cent at the end of last year.
For more information on the order intake, see the business area pages 8, 9 and 10.
Sales
Third quarter 2024
Sales increased 17.5 per cent in the quarter, whereof organic growth was 17.4 per cent, and
amounted to SEK 13,546 million (11,527). All business areas and Combitech recorded sales growth
in the quarter, driven by continued high activity pace in programmes and deliveries.
January-September 2024
Sales for the first nine months amounted to SEK 42,901 million (35,487) corresponding to a sales
growth of 20.9 per cent, of which organic growth was 21.0 per cent. All business areas recorded
double-digit sales growth in the period.
Sales from international markets increased 23 per cent and amounted to SEK 24,737 million
(20,156), corresponding to 58 per cent (57) of total sales. All regions except Latin America showed
growth in the period. 91 per cent (90) of sales were related to the defence business.
Sales growth
Sales per region
Per cent
Jan-Sep
2024
Jan-Sep
2023
Q3
2024
Q3
2023
Full Year
2023
Organic sales growth 21.0 25.6 17.4 31.4 22.6
Change from acquisitions and divestments 0.1 -0.5 0.3 -0.6 -0.5
Currency translation effects -0.2 1.0 -0.2 0.9 0.8
Total sales growth 20.9 26.1 17.5 31.7 22.9
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, %
Sweden 18,164 15,331 18
Rest of Europe 10,356 7,858 32
North America 4,434 3,907 13
Latin America 2,369 2,488 -5
Asia 3,896 2,967 31
Africa 106 78 36
Australia, etc. 2,610 2,509 4
Undisclosed country 966 349 177
Total 42,901 35,487 21
Order distribution
Jan-Sep 2024
Order backlog duration:
2024: SEK 17.5 billion
2025: SEK 55.1 billion
2026: SEK 46.8 billion
2027: SEK 37.9 billion
After 2027: SEK 32.8 billion
Order by market
A total of 80% (64) of the
order bookings related to
markets outside Sweden
during January-September
2024.
Sales by market
A total of 58% (57) of the
sales related to markets
outside Sweden during
January-September 2024.
Sales Jan-Sep, MSEK
Classification of orders MSEK
Small orders <100
Medium-sized orders 100-1000
Large orders >1000
Small orders 17% (24)
Medium-sized orders 23% (36)
Large orders 60% (40)
27,211 28,140
35,487
42,901
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
===== SIDA 5 =====
5 IN TER IM R EPO RT Q3 2024
Income
Third quarter 2024
Gross income increased 17 per cent in the quarter and amounted to SEK 2,912 million (2,481). The
gross margin was in line with the same period last year and amounted to 21.5 per cent (21.5). EBITDA
increased 33 per cent and amounted to SEK 1,888 million (1,424) with a margin of 13.9 per cent
(12.4). Operating income (EBIT) improved 38 per cent and amounted to SEK 1,187 million (859) with
an operating marg in of 8.8 per cent (7.5). The EBIT improvement was mainly driven by strong
performance in Surveillance, but also improvements in Aeronautics, Dynamics and Combitech. The
quarter included a capital gain from the divestment of Combitech Norway of SEK 18 million.
January-September 2024
Gross income for the first nine months increased 21 per cent and amounted to SEK 9,377 million
(7,743), driven by the strong sales volumes. The gross margin also improved to 21.9 per cent (21.8).
Total depreciation, amortisation and write -downs amounted to SEK 1,959 million (1,674).
Depreciation of tangible fixed assets and right-of-use assets amounted to SEK 1,292 million (1,119).
Expenditures for internally funded investments in R&D amounted to SEK 1,868 million (1,430), of
which SEK 352 million (379) 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 667 million (555), of which amortisation and write -downs of capitalised
development expenditures amounted to SEK 475 million (442). R&D amortisation is mainly related
to GlobalEye, amounting to SEK 281 million (281) during the first nine months 2024.
The share of income in associated companies and joint ventures amounted to SEK 28 million
(-384). The comparison period included write -downs in the minority portfolio of SEK -284 million
classified as items affecting comparability, see also note 5.
EBITDA increased 25 per cent in the nine-month period and amounted to SEK 5,668 million (4,526),
with an EBITDA margin of 13.2 per cent (12.8). Operating income (EBIT) increased 30 per cent and
amounted to SEK 3,709 million (2,852), with a margin of 8.6 per cent (8.0). The margin improvement
was supported by scale effects from the strong sales volumes . The comparison period included
items affecting comparability of net SEK 44 million, comprising a capital gain from the sale of the
Maritime Traffic Management (MTM) operations of SEK 270 million in , a capital gain from a property
divestment of SEK 58 million and write-downs in the minority portfolio of SEK -284 million, see also
note 5.
Financial net
The financial net amounted to SEK -145 million (-57) in the first nine months 2024. The change
compared to the same period last year was mainly a result of higher interest expenses on leases
and lower results from other financial items relating to currency effects and short-term investments.
The financial net related to pensions is the financial cost for net pension obligations recognised in
the balance sheet. See note 13 for more information regarding defined -benefit pension plans. Net
interest items refer to interest on liquid assets, long- and short-term investments and interest
expenses on short- and long-term interest-bearing liabilities and interest on interest-rate swaps.
Currency gains/losses recognised in the financial net are mainly related to currency hedges of the
tender portfolio, which are measured at fair value through profit and loss.
Lease liability interest consist s of the interest portion related to lease liabilities recognised in the
balance sheet.
Other financial items consist of realised and unrealised results from short -term investments and
derivatives as well as other currency effects, e.g. changes in exchange rates for liquid assets in
currencies other than SEK.
Tax
Current and deferred taxes amounted to SEK -796 million (-606) during January-September 2024,
corresponding to an effective tax rate of 22 (22) per cent.
MSEK Jan-Sep 2024 Jan-Sep 2023
Financial net related to pensions -35 -28
Net interest items 84 85
Currency gains/losses -83 -88
Lease liability interest -125 -102
Other financial items 14 76
Total -145 -57
Operating income (MSEK) and
margin (%), Jan-Sep
EPS after dilution, SEK
Internally funded R&D
expenditures, MSEK
1,812
1,960
2,852
3,709
6.7 7.0
8.0
8.6
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
2.24 2.02
4.01
5.08
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
1,507
1,218
1,430
1,868
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
===== SIDA 6 =====
6 IN TER IM R EPO RT Q3 2024
Financial position and liquidity
At the end of September 2024, Saab had a net debt of SEK 478 million, a decrease of
SEK 2,821 million compared to a net liquidity of SEK 2,343 million at year-end 2023. Net
debt/EBITDA was 0.1 (-0.4) at the end of the period.
Cash flow from operating activities amounted to SEK 1,734 million (1,632).
Contract assets increased by SEK 3,524 million and contract liabilities increased by SEK 6,384
million compared to year-end 2023. Inventories increased by SEK 4,668 million during the first nine
months with increases mainly in Dynamics and Surveillance.
Net provisions for pensions, excluding special employer’s contribution, amounted to SEK 1,080
million as of 30 September 2024, compared to SEK 1,490 million at year-end 2023. The effect on
net debt of SEK 410 million was mainly a result of positive return on pension plan assets. For further
information on Saab’s defined-benefit pension plan, see note 13.
Tangible fixed assets amounted to SEK 11,449 million compared to 9,501 at the end of 2023. Right-
of-use assets recognised in the balance sheet amounted to SEK 2,719 million compared to 2,554
million at the end of 2023.
Financial investments increased with SEK 1, 609 million in the first nine months and amounted to
SEK 2, 711 million (1,102). The increase was mainly related to an additional investme nt in and
revaluation of shares in Helsing GmbH. Revaluation of the investment in Helsing GmbH is recognised
in other comprehensive income.
Net investments in the first nine months amounted to SEK 3,195 million (2,299). Investments in
tangible fixed assets amounted to SEK 2,700 million (1,716).
Investments in intangible fixed assets in the first nine months amounted to SEK 538 million (604), of
which SEK 352 million (379) was related to capitalised R&D expenditures. The investments were
mainly related to the development of Gripen E/F. Of the total investments in intangible fixed assets,
SEK 186 million (225) was related to other intangible fixed assets.
As of 3 0 September 2024, long- and short-term interest-bearing investments and liquid assets
amounted to SEK 10,565 million, a decrease of SEK 2,904 million compared to year-end 2023. In
addition, the Group had unutilised revolving credit facilities amounting to SEK 6,000 million.
Capital employed increased by SEK 3,435 million, from December 31, 2023, to SEK 47,389 million
at the end of the nine month period . The return on capital employed was 13.2 per cent (11.4) and
the return on equity was 11.8 per cent (11.2), both measured over a rolling 12-month period.
Key indicators of financial position
and liquidity
Change in net debt
Jan-Sep 2024
MSEK
Net liquidity (+) / net debt (-),
31 Dec 2023 ¹⁾ 2,343
Cash flow from operating activities 1,734
Change in net pension obligation 410
Net investments -3,195
Sale of and
investments in financial assets,
associates and joint ventures -303
Change through equity swap
agreement -318
Dividend -427
Dividend to and transactions with
non-controlling interest -28
Additional lease liabilites -683
Sales of and investments in
operations 10
Other items, currency impact and
unrealised results from financial
investments -21
Net liquidity (+) / net debt (-),
30 September 2024 ¹⁾ -478
¹⁾ Net liquidity (+) / net debt (-)
excluding net provisions for
pensions, lease liabilities and
interest-bearing receivables, 30
September 2024 3,113
MSEK 30 Sep 2024 31 Dec 2023 Change 30 Sep 2023
Net liquidity / debt ²⁾ -478 2,343 -2,821 1,370
Intangible fixed assets 12,870 12,941 -71 12,758
Goodwill 5,455 5,424 31 5,556
Capitalised development costs 6,021 6,106 -85 5,984
Other intangible fixed assets 1,394 1,411 -17 1,218
Tangible fixed assets, etc ³⁾ 11,860 9,915 1,945 9,404
Right of use assets ⁴⁾ 2,719 2,554 165 2,484
Inventories 21,454 16,786 4,668 16,626
Accounts receivable 6,503 7,244 -741 6,402
Contract assets 15,840 12,316 3,524 13,242
Contract liabilities 22,937 16,553 6,384 15,196
Equity/assets ratio, % 38.9 39.1 40.3
Return on equity, % 11.8 11.1 11.2
Return on capital employed, % 13.2 11.9 11.4
Equity per share, SEK ¹⁾⁵⁾ 66.64 60.10 6.54 59.35
1) Number of shares excluding treasury shares and repurchased through equity swap ⁵⁾ 534,426,981 532,989,260 532,292,652
3) Including tangible fixed assets and biological assets.
4) Relate to right-of-use assets for leases.
5) Comparison periods adjusted for share split 4:1.
2) The Group's net liquidity/debt refers to liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions
excluding provisions for special employers' contribution attributable to pensions. For a detailed break-down of interest-bearing receivables and interest-bearing liabilities, see
note 8.
===== SIDA 7 =====
7 IN TER IM R EPO RT Q3 2024
Cash flow
Third quarter 2024
In the third quarter, operational cash flow amounted to SEK 3,188 million (-2,058). The improvement
was largely a result of large customer payments received in the quarter.
January-September 2024
Operational cash flow for the first nine months amounted to SEK -1,061 million (-534). The negative
cash flow was a result of increased investments and inventory, partly offset by the large customer
payments received in the third quarter.
Due to the nature of Saab’s customer contracts, deliveries and timing of cust omer milestone
payments in large projects can result in large fluctuations in cash flow between reporting periods.
Free cash flow in the period amounted to SEK -2,274 million (-993). During the third quarter, Saab
made an additional investment in Helsing GmbH which had an effect of SEK -276 million on free
cash flow. For more detailed information on cash flow, see note 11.
MSEK Jan-Sep
2024
Jan-Sep
2023
Cash flow from operating activities before changes in working
capital, excluding taxes and other financial items ¹⁾ 5,391 4,507
Change in working capital -3,257 -2,742
Cash flow from operating activities excluding taxes and other
financial items 2,134 1,765
Cash flow from investing activities ² ⁾ -3,195 -2,299
Operational cash flow -1,061 -534
Taxes and other financial items -920 -567
Sale of and investments in financial assets and operations -293 108
Free cash flow -2,274 -993
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.
1) Including amortisation of lease liabilities
Operational cash flow, MSEK
Free cash flow, MSEK
1,754
911
-534
-1,061
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
1,360
432
-993
-2,274
Jan-Sep
2021
Jan-Sep
2022
Jan-Sep
2023
Jan-Sep
2024
===== SIDA 8 =====
8 IN TER IM R EPO RT Q3 2024
Business Area
Aeronautics
Business Units
Advanced Programs, Aerospace Systems, Aviation Services, Gripen.
Market highlights
Order intake decreased compared to the
same period last year which included a large
contract for Gripen E functionality to Sweden.
In the quarter, the Royal Thai Air Force
announced that they recommend Gripen E for
the country’s new fighter aircraft procurement.
Sales and operating income
Sales increased in the quarter and reflected
continued solid pace in programme execution.
Operating income and the margin increased
driven by the higher volumes, partly offset by
under-absorption in the T-7 production.
Cash flow
Cash flow was negative with a low level of
customer milestone payments in the quarter.
Business Area
Dynamics
Business Units
Barracuda, Ground Combat, Missile Systems, Tactical Support Solutions, Training and Simulation.
Market highlights
Order bookings increased significantly in the
quarter, driven by the large defence equipment
contract to an undisclosed Western country
and the first order for the Mobile Short Range
Air Defence (MSHORAD) solution to Lithuania.
In the quarter, Saab was also awarded a 5-year
framework agreement, as its AT4 solution was
selected for the U.S. Army’s Individual Assault
Munition programme.
Sales and operating income
Sales grew 25% in the quarter, driven by high
activity and deliveries in several business units.
Operating income showed an improvement in
the quarter as a result of the increased
volumes, while the margin was lower due to
phasing of deliveries in Ground Combat.
Cash flow
Cash flow improved and amounted to SEK 3.7
billion, driven by a high level of customer
payments in the quarter.
Market
Sales in markets
outside Sweden
amounted to 40% (42)
during the first nine
months 2024.
Market
Sales in markets outside
Sweden amounted to 80%
(80) during the first nine
months 2024.
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 8,760 8,878 -1 1,464 5,276 -72 18,111
Order backlog 44,650 41,926 6 46,995
Sales 11,095 9,602 16 3,322 3,135 6 13,754
EBITDA 904 653 38 255 202 26 916
EBITDA margin, % 8.1 6.8 7.7 6.4 6.7
Operating income (EBIT) 725 498 46 192 148 30 710
Operating margin, % 6.5 5.2 5.8 4.7 5.2
Operational cash flow -2,107 -610 -923 -569 -370
0
2
4
6
8
10
0
1,000
2,000
3,000
4,000
5,000
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023 2024
Sales, MSEK Operating margin, % Operating margin, R12, %
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 45,134 17,956 151 12,579 2,876 337 26,709
Order backlog 79,242 38,368 107 43,103
Sales 8,990 7,360 22 3,056 2,453 25 11,160
EBITDA 1,463 1,233 19 444 406 9 1,856
EBITDA margin, % 16.3 16.8 14.5 16.6 16.6
Operating income (EBIT) 1,373 1,162 18 412 382 8 1,758
Operating margin, % 15.3 15.8 13.5 15.6 15.8
Operational cash flow 1,794 1,435 3,677 -840 3,237
0
5
10
15
20
25
30
0
1,000
2,000
3,000
4,000
5,000
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023 2024
Sales, MSEK Operating margin, % Operating margin, R12, %
Note: 2023 has been restated due to the transfer of business unit Underwater Systems from Dynamics to Kockums as per 1st January 2024.
For restated figures, please see https://www.saab.com/investors/financials/financial-data
===== SIDA 9 =====
9 IN TER IM R EPO RT Q3 2024
Business Area
Surveillance
Business Units
Airborne Early Warning, Digital Battlespace Solutions, Fighter Core Capabilities, Naval Combat Systems, Safety and Security Solutions, Surface Sensor
Solutions.
Market highlights
Order intake increased and included orders for
the compact radar Giraffe 1X as well as several
naval contracts. Parts of the large MSHORAD
order to Lithuania was booked in Surveillance
in the quarter.
In the period, Saab delivered the 5th GlobalEye
aircraft to the United Arab Emirates as well as
next generation Arthur weapon locating radar
systems to the British Army.
Sales and operating income
Sales grew 23% in the quarter driven by high
activity level in all business units.
Operating income and the margin improved as
a result of higher volumes and successful
project completions in the quarter.
Cash flow
Cash flow in the quarter amounted to SEK
-181 million and was impacted by increased
inventory and timing of customer payments.
Business Area
Kockums
Business Units
Docksta, Submarines, Surface Ships,
Underwater Systems.
Market highlights
During the period , Saab’s unmanned AUV62
and Piraya systems were utilised in NATO’s
maritime exercise, contributing to the
development of future naval capabilities.
Sales and operating income
Kockums’ sales showed an increase of 14 %,
driven by high activity level in key programmes.
The operating income and the margin was
lower compared to the same quarter last year
due to negative contribution from the
Underwater Systems business unit.
Cash flow
Cash flow improved in the quarter and was
driven by large customer payments.
Market
Sales in markets
outside Sweden
amounted to 72% (70)
during the first nine
months 2024 .
*Operating margin and Operating margin R12, % adjusted for items affecting comparability and
excludes the capital gain of SEK 270 million from the divestment of MTM operations in Q1 2023.
Market
Sales in markets
outside Sweden
amounted to 29%
(25) during the first nine
months 2024 .
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 19,472 14,845 31 6,158 5,723 8 23,887
Order backlog 49,919 43,092 16 45,780
Sales 15,510 12,782 21 5,115 4,149 23 18,559
EBITDA 2,053 1,979 4 775 544 42 2,933
EBITDA margin, % 13.2 15.5 15.2 13.1 15.8
Operating income (EBIT) 1,323 1,329 0 502 324 55 2,034
Operating margin, % 8.5 10.4 9.8 7.8 11.0
Operational cash flow -106 -760 -181 -819 1,153
0
3
6
9
12
15
0
1,000
2,000
3,000
4,000
5,000
6,000
Q4 Q1* Q2* Q3* Q4* Q1 Q2 Q3
2022 2023 2024
Sales, MSEK Operating margin, % Operating margin, R12, %
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 4,636 3,184 46 735 1,015 -28 7,497
Order backlog 15,933 14,804 8 17,031
Sales 5,747 4,287 34 1,584 1,386 14 6,314
EBITDA 403 267 51 72 82 -13 469
EBITDA margin, % 7.0 6.2 4.5 5.9 7.4
Operating income (EBIT) 364 240 52 57 73 -22 432
Operating margin, % 6.3 5.6 3.6 5.3 6.8
Operational cash flow 732 270 884 396 -254
-8
-4
0
4
8
12
0
500
1,000
1,500
2,000
2,500
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023 2024
Sales, MSEK Operating margin, % Operating margin, R12, %
Note: 2023 has been restated due to the transfer of business unit Underwater Systems from Dynamics to Kockums as per 1st January 2024.
For restated figures, please see https://www.saab.com/investors/financials/financial-data
===== SIDA 10 =====
10 IN TER IM R EPO RT Q3 2024
Other operating segment
Combitech
Market highlights
Demand for Combitech’s solutions continued
to be high in the quarter.
In the quarter Combitech, together with
Surveillance and Dynamics, entered into a new
partnership with the Swedish Defence Materiel
Administration ( FMV) for digitalising the
ground forces of the Swedish Armed Forces.
Several other contracts were signed in the
period, including projects within cyber
security.
Sales and operating income
Sales increased in the quarter driven by high
customer activity and an increased number of
consultants.
Operating income and the margin improved as
a result of higher utilisation and a favourable
calendar effect . The divestment of the
operations in Norway during the quarter had a
positive impact of SEK 18 million on results.
Cash flow
Cash flow was negative due to timing of
customer and supplier payments.
Corporate and other items
Corporate
Corporate comprises group staff, group departments and other operations including Saab’s minority portfolio. The minority portfolio contains Saab’s
Venture portfolio.
Corporate reported an operating loss of SEK -67 million (-111) in the third quarter, which was lower compared to the same period last year due to timing
effects. The operating loss during January-September 2024 was SEK -382 million (-606). The comparison period last year included write-downs in the
minority portfolio of SEK -284 million, partly offset by a capital gain from the divestment of property amounting to SEK 58 million. See also note 5.
Operational cash flow attributable to Corporate amounted to SEK -1,601 million (-924), the decrease was mainly driven by changes in working capital and
increased investments in tangible fixed assets.
Acquisitions and divestments 2024
In the first quarter 2024, Saab completed the acquisition of the remaining shares in UMS Skeldar AG for a minor consideration. In the beginning of the third
quarter, Combitech divested its Norwegian entity with 30 employees for a minor consideration.
Share repurchase and share split
Saab held 7,756,448 treasury shares as of 30 September 2024, compared to 10,394,128 at year-end 2023 (adjusted for the share split 4:1) . During the
second quarter 2024 , Saab also entered an equity swap agreement with a third party to hedge the expected financial exposure of LTI 2024. As of 3 0
September 2024, the equity swap consisted of 1,199,959 shares. The Annual General Meeting in 2024 authorised the Board of Directors to repurchase a
maximum of 1,100,000 shares of series B (or a maximum of 4,400,000 shares of series B following implementation of the share split 4:1) to secure delivery
of shares to participants in Saab’s long -term incentive programmes 2025. The Annual General Meeting also decided to authorise the Board, before the
next Annual General Meeting, to decide on the acquisition of Series B shares up to a maximum of 10 percent of the total number of shares in the company.
The purpose of the authorisation is to be able to adjust the company’s capital structure and thereby contribute to increased shareholder value as well as
to enable continued use of repurchased shares in connection with potential acquisitions of companies and for the company ’s share-related incentive
programmes.
On 11 April 2024, the Annual General Meeting decided on a share split, whereby each share is divided, regardless of series, into four shares of the same
series. The record date for the share split was 8 May, 2024. After the share split, the total number of shares in Saab amount s to 543,383,388 of which
9,535,612 are A shares and 533,847,776 B shares, corresponding to 629,203,896 votes in total.
Market
Sales in markets
outside Sweden
amounted to 5% (6)
during the first nine
months 2024.
MSEK Jan-Sep 2024 Jan-Sep 2023 Change, % Q3 2024 Q3 2023 Change, % Full Year 2023
Order bookings 3,293 3,169 4 813 734 11 4,291
Order backlog 1,880 1,591 18 1,595
Sales 3,008 2,805 7 877 816 7 3,922
EBITDA 315 236 33 94 45 109 350
EBITDA margin, % 10.5 8.4 10.7 5.5 8.9
Operating income (EBIT) 306 229 34 91 43 112 340
Operating margin, % 10.2 8.2 10.4 5.3 8.7
Operational cash flow 227 55 -20 -36 387
0
2
4
6
8
10
12
0
250
500
750
1,000
1,250
1,500
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3*
2022 2023 2024
Sales, MSEK Operating margin, % Operating margin, R12, %
*Operating margin and Operating margin R12, % adjusted for items affecting comparability and
excludes the capital gain of SEK 18 million from the divestment of Combitech Norway in Q3 2024.
===== SIDA 11 =====
11 IN TER IM R EPO RT Q3 2024
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 c ollaborations 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 instruction s govern the
management of material risks. Saab is today growing rapidly with production ramp-up and conducts projects
involving a large share of development, which entails a higher level of risk. Furthermore, t he market is
characterised by conditions wher e orders can be deferred to the future partly for financial and political
reasons.
The uncertainty in the global supply chain entails a risk for Saab and its operations. The challenges primarily
relate to the availability of certain raw materials and defence-specific supply, ramping up production capacity
at some suppliers, as well as suppliers’ ability to handle the flow -down of increasing regulatory requirements.
Saab works actively to manage the supply chain risks through mitigating actions such as contract
management, second sourcing, re-planning and intensified forecasting dialogue and negotiations with
suppliers.
In October 2024, Saab North America, Inc. received a subpoena from the U.S. Department of Justice (DoJ)
requesting information about the Brazilian Government’s acquisition of 36 Gripen E/F fighter aircraft in 2014.
Saab intends to comply with the request to supply information and to cooperate with the DoJ in this matter.
Both Brazilian and Swedish authorities have previously investigated parts of the Brazilian fighter procurement
process. These investigations were closed without indicating any wrongdoings by Saab.
For a general description of the risk areas, see the Annual Report 2023, pages 36-41.
Risks related to armed conflicts
The geopolitical tensions in the world, including the conflicts in Ukraine and the Middle East, have resulted in a
more complex and diverse security environment for Saab. T herefore, Saab has increased security
measures to protect its sites, personnel and IT, as well as measures against cyber risks , which may lead to
increased costs for security.
Saab has no defence related sales exposure to Belarus and Russia, but is closely monitoring the effects on
the business from the war in Ukraine. 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.
Saab’s crisis management organisation has an ongoing focus on security, embargo and sanction practises.
Furthermore, Saab could be impacted by supply chain risks related to the conflict in the Middle East as the
company has a limited number of suppliers in Israel. Saab is monitoring the situation and has mitigating actions
in place and is in close dialogue with its suppliers. Saab has no defence related sales exposure to Israel.
Owners
Largest owners, 30 September 2024:
Source: Modular Finance
The percentage of votes is calculated on the
number of shares excluding treasury shares.
Personnel
% of % of
capital votes
Investor AB 30.2 40.2
Wallenberg
Investments 8.7 7.6
Swedbank Robur
Funds 4.4 3.9
BlackRock 2.6 2.3
Vanguard 2.3 2.0
Avanza Pension 1.2 1.0
First Swedish
National Pension
Fund 1.2 1.0
Alliance Bernstein 1.1 1.0
AFA Insurance 0.9 0.8
Avanza Funds 0.8 0.7
30 Sep 2024 31 Dec 2023
Number of
employees 23,770 21,479
FTEs 23,986 21,610
===== SIDA 12 =====
12 IN TER IM R EPO RT Q3 2024
Sustainability at Saab
Highlights during the quarter
• In the quarter, Saab finalised its new Energy Strategy. The strategy
defines the required direction to achieve energy resilience and meet
Saab’s Science Based Targets with guidelines to support the business.
• In the period, Saab launched a new tool to assess corruption risks
across the Group. The aim is to further raise local awareness and
accountability and provide input to the continuous development of the
anti-bribery and corruption programme.
• To promote con tinuous learning and up -skilling in times of strong
growth, Saab has introduced a target of 40 learning hours per employee
and year. During Q3, an internal information campaign was conducted
to increase awareness and ensure progress towards this target.
Circular economy – Saab 340 AEW aircraft
In June, Saab delivered the second and final Saab 340 Airborne Early
Warning (AEW) aircraft ordered by the Polish Armed Forces , and in the
third quarter final integration and trainings were completed . The aircraft
were previously used by another Saab customer and refitted for the Polish
customer, enabling the delivery of an airborne surveillance capability in
record-time. The case demonstrates how Saab can extend the lifespan
and capability of a special mission aircraft with upgrades and reuse of
material such as spare parts to increase the utilisation of material s and
products to limit its environmental impact and contribute to a more
efficient and circular use of resources.
Ethics and Compliance
In the quarter, Saab introduced a new group-wide tool for corruption risk
assessment and the Anti-Bribery and Corruption (ABC) programme. The
tool will allow Saab’s business areas and strategic markets to self-assess
corruption risk exposure and status on progress in the ABC programme.
The output of the assessments will form action plans as well as constitute
the basis for follow -up and reporting . The new tool will also raise
awareness and accountability in local operations, and assist in the future
development of the programme.
Climate
As part of Saab’s environmental efforts, business area Aeronautics is
working diligently to promote biodiversity on their sites. This includes
limiting grass cutting at Linköping airport to protect pollinators as well as
restricting tree harvesting in Arboga, Sweden. Since the area is favorable
for certain species, Saab has established a 50 -year long nature
conservation agreement covering 11 hectares of the site.
During the quarter, Saab finalised its new Energy Strategy. The purpose of
the strategy is to d efine required direction and offer guidelines for the
business to achieve energy resilience, meet Saab’s Science Based
Targets and thus ensure our contribution to the climate challenge.
1 All performance indicators are global
2 Number of lost-time injuries / total hours worked x 1,000,000
3 Number of recordable injuries / total hours worked x 1,000,000
Despite Saab’s strong growth and expansion, greenhouse gas emission in
Scope 1 and 2 has not increased to the same extent due to prioritised
activities primarily in the energy area. These include improvements to
buildings, ventilation recovery of heat and time optimisation of heat use.
However, there are many challenges, and one example is the availability of
sustainable aviation fuel (SAF) as well as the infrastructure for deliveries of
SAF to smaller airports.
In the third quarter, emissions increased 8% compared to the same period
last year. This was mainly driven by increased business travel reported in
scope 1 as well as the generally higher business activity in the Group.
People
To support the company’s growth ambitions, Saab is increasing its efforts
to encourage continuous learning and the development of new skills and
knowledge within its workforce. Earlier this year, Saab established a target
of 40 learning hours per employee and year , and in the quarter, the
initiative and targets were communicated across the Group.
At the end of the quarter , the share of women employees increased to
26%, from 25% at the end of last year. The share of women managers also
increased to 28% , from 2 7%, as a greater proportion of the newly
appointed managers are women.
The Lost Time Injury Frequency Rate (LTIFR) and the reported incidents
per workplace injury decreased compared to the full year 2023, while the
Total Recordable Injury Frequency (TRIFR) increased. Overall, Saab’s
reporting culture and system support have improved, and as a result more
injuries are reported , most evident ly in rega rds to the TRIs. Saab is
focusing on improving the process for reporting further and handling the
identifications and close calls to prevent future incidents.
Performance Indicators 1
Dec
2022
Dec
2023
YTD
2024
Lost Time Injury Frequency Rate (LTIFR)2 0.84 1.33 1.15
Total Recordable Injury Frequency Rate (TRIFR)3 2.61 3.57 3.89
Reported incidents per workplace injury 4 4.4 5.0 4.2
Share of women managers 27% 27% 28%
Share of women employees 24% 25% 26%
4 Increased incidence reporting leads to fewer accidents
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1 Q2 Q3 Q4
Quarterly Emissions Scope 1 & 2 Market Based
Comparison Year-over-Year in Tonne CO2e per Quarter
2020 2021 2022 2023 2024
===== SIDA 13 =====
13 IN TER IM R EPO RT Q3 2024
Significant events
January-September 2024
On 22 January , Saab announced it had signed a GlobalEye support
contract with the United Arab Emirates. The order value is approximately
USD 190 million with a three-year contract period that runs until 2026.
On 23 January, Saab announced it had received an award from Boeing to
produce T-7A aft fuselage systems. The or der value is USD 101.7 million
(approx. SEK 1 billion) and the order was booked in Q4 2023.
On 15 February, Saab announced it had received an order from Canada
for the short -range air defence system RBS 70 NG. The order value is
approx. CAD 227 million (SEK 1.8 billion) with deliveries starting in 2024.
On 23 February, Saab signed a contract with the Swedish Defence
Materiel Administration (FMV) and receiv ed an order for four additional
Gripen C fighter aircraft for Hungary.
On 4 March, Saab signed a contract with the Polish Ministry of Defence’s
procurement authority for delivery of the Carl -Gustaf M4 weapon,
ammunition and training equipment. The order value corresponds to SEK
12.9 billion and the contract period is 2024 -2027. The order intake was
booked by Saab in Q2 2024 as the contract entered into force.
On 26 March, Saab announced it had received an order from Airbus
Defence and Space for the Arexis sensor suite for the electronic warfare
variant of the German Eurofighters. The contract period is 2024-2026, and
marks the start of the first phase of Saab’s delivery of Arexis within this
programme.
On 10 April, Saab announced it had appointed Mikael Adelsberg as Chief
Digital Officer and head of the new group function Group Digitalisation.
The change came into effect on 1 October and Mikael Adelsberg is now a
member of Saab’s Group Management.
On 11 April, Saab held its Annual Genera l Meeting in Linköping, Sweden
and the AGM decided on a dividend of SEK 6.40 per share, paid out in two
equal instalments. The AGM also resolved on a share split where each
share is divided into four shares. The record date for the share split was 8
May, 2024. The first part of the dividend (SEK 3.20 per share) was paid out
on 18 April 2024 and following the share split , the second part (SEK 0.80
per share) w as paid out on 11 October 2024 . Read more on
www.saab.com/agm.
On 31 May, Saab received an order from the government of a Western
country for a number of defence systems and equipment. The order value
is approximately SEK 7.7 billion with deliveries planned 2027-2028.
On 4 June, Saab received an initial investment grade credit rating of BBB+
with stable outlook from S&P Global.
On 18 June, Saab announced that Anna Wijkander , previously deputy
CFO and head of Corporate Control at Saab, will become the company’s
new CFO and member of Saab’s Group Management. She replaces Saab’s
previous CFO Christian Luiga that decided to leave the company. Anna
Wijkander assumed the position on 9 September 2024.
On 27 June, Saab signed a contract with the Swedish Defence Materiel
Administration (FMV) regarding delivery of a third GlobalEye airborne early
warning and control aircraft to Sweden. The order value is approx imately
SEK 2.6 billion and the delivery period is 2024-2029.
On 9 July, Saab announced it had received an order for its Mobile Short-
Range Air Defence (MSHORAD) solution from Lithuania. The order value is
approximately SEK 1.3 billion and deliveries will take place 2025-2027.
On 24 July, Saab received an order for defence equipment from the
government of a Western country. The order value is approx imately SEK
6.6 billion with deliveries planned 2027-2028.
On 30 August, Saab announced it had received an order f rom the
Swedish Defence Materiel Administration (FMV) for the Giraffe 1X surface
radar. The contract period is 2024 -2027 and the order value is
approximately SEK 700 million.
On 30 August, Saab announced that the U.S. Army has selected Saab’s
AT4 solution for its Individual Assault Munition programme. The contract
allows the U.S. Army to place orders for up to USD 494 million over five
years, and order values will be established individually.
For more information on significant orders received during the period, see page 4
and the comments on the business areas on page 8 -10. All press releases can be
found on www.saab.com/newsroom.
Events after the conclusion of the period
On 4 October, Saab announced it had received an additional order from
Lithuania for the Mobile Short -Range Air Defence (MSHORAD) solution.
The order value is SEK 1.2 billion with deliveries scheduled 2026-2029.
On 10 October, Saab informed that the U.S. Department of Justice (DoJ)
has requested information from Saab North America, Inc. regarding
Brazil’s acquisition of Gripen fighters in 2014. Saab intends to comply with
the request to supply information and to cooperate with DoJ in this matter.
Giraffe 1X order to Sweden
Saab has received an order from the Swedish
Defence Materiel Administration (FMV) for the Giraffe
1X radar, associated command and control systems
and integration for one of Sweden’s Ground Based Air
Defence (GBAD) solutions. The contract period is
2024-2027 and the order value is approx. 700 MSEK.
Giraffe 1X provides quality air defence target data,
drone detection for counter -UAS, and sense and
warn capability . It also offers continuous software
upgrades to meet emerging threats.
AT4 solution selected by the U.S. Army
The U.S. Army has selected Saab’s AT4CS TW
(Confined Space Tandem Warhead) solution for its
Individual Assault Munition (IAM) programme. The
contract allows the U.S. Army to place orders for up to
USD 494 million over five years.
Saab’s new AT4 solution combines the capability of
multiple existing shoulder -launched munitions while
reducing soldier load, training complexity and logistics.
AT4 is the U.S. Army’s squad weapon since 1985 and
Saab has delivered over 700,000 systems to the U.S.
===== SIDA 14 =====
14 IN TER IM R EPO RT Q3 2024
Consolidated income statement
Consolidated statement of comprehensive income
MSEK Note Jan-Sep 2024 Jan-Sep 2023 Rolling 12 Months Full Year 2023
Sales 4 42,901 35,487 59,023 51,609
Cost of goods sold -33,524 -27,744 -46,129 -40,349
Gross income 9,377 7,743 12,894 11,260
Gross margin, % 21.9 21.8 21.8 21.8
Other operating income 5 151 412 330 591
Marketing expenses -2,099 -1,961 -2,876 -2,738
Administrative expenses -1,748 -1,384 -2,344 -1,980
Research and development costs -1,991 -1,493 -2,615 -2,117
Other operating expenses -9 -81 13 -59
Share of income in associated companies and joint ventures 5 28 -384 -273 -685
Operating income (EBIT) ¹⁾ 3 3,709 2,852 5,129 4,272
Operating margin, % 8.6 8.0 8.7 8.3
Financial income 437 448 771 782
Financial expenses -582 -505 -713 -636
Net financial items -145 -57 58 146
Income before taxes 3,564 2,795 5,187 4,418
Taxes -796 -606 -1,165 -975
Net income for the period 2,768 2,189 4,022 3,443
of which Parent Company’s shareholders’ interest 2,736 2,158 3,959 3,381
of which non-controlling interest 32 31 63 62
Earnings per share before dilution, SEK ²⁾⁴⁾ 5.13 4.06 7.42 6.36
Earnings per share after dilution, SEK ³⁾⁴⁾ 5.08 4.02 7.34 6.29
1) Of which depreciation/amortisation and write-downs -1,959 -1,674 -2,571 -2,286
2) Average number of shares before dilution ⁴ ⁾ 533,727,270 531,167,192 533,455,692 531,535,632
3) Average number of shares after dilution ⁴ ⁾ 538,636,607 537,472,268 539,138,833 537,511,328
4) Comparison periods adjusted for share split 4:1
MSEK Jan-Sep 2024 Jan-Sep 2023 Rolling 12 Months Full Year 2023
Net income for the period 2,768 2,189 4,022 3,443
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations 379 695 -998 -682
Tax attributable to revaluation of net pension obligations -78 -143 205 140
Equity instruments classified as measured at fair value through other comprehensive
income 1,322 2 1,281 -39
Tax attributable to equity instruments classified as measured at fair value through other
comprehensive income -8 -0 0 8
Total 1,615 554 488 -573
Items that may be reversed in the income statement:
Translation differences 113 93 -402 -422
Cash flow hedges 154 -175 1,136 807
Tax attributable to cash flow hedges -38 36 -244 -170
Interest-bearing assets classified as measured at fair value through other
comprehensive income 5 - 5 -
Tax attributable to interest-bearing assets classified as measured at fair value through
other comprehensive income -1 - -1 -
Total 233 -46 494 215
Other comprehensive income/loss for the period 1,848 508 982 -358
Net comprehensive income/loss for the period 4,616 2,697 5,004 3,085
of which Parent Company’s shareholders’ interest 4,582 2,652 4,968 3,038
of which non-controlling interest 34 45 36 47
===== SIDA 15 =====
15 IN TER IM R EPO RT Q3 2024
Consolidated statement of financial position
MSEK Note 30 Sep 2024 31 Dec 2023 30 Sep 2023
ASSETS
Fixed assets:
Intangible fixed assets 7 12,870 12,941 12,758
Tangible fixed assets 11,449 9,501 8,993
Biological assets 411 414 411
Right of use assets 2,719 2,554 2,484
Shares in associated companies and joint ventures 274 253 264
Financial investments 2,711 1,102 1,149
Long-term interest-bearing investments 1,121 - -
Long-term receivables 455 515 780
Deferred tax assets 492 482 455
Total fixed assets 32,502 27,762 27,294
Current assets:
Inventories 21,454 16,786 16,626
Derivatives 1,511 1,656 1,716
Tax receivables 244 51 35
Accounts receivable 6,503 7,244 6,402
Contract assets 15,840 12,316 13,242
Other receivables 2,912 2,192 2,008
Prepaid expenses and accrued income 1,977 1,283 1,654
Short-term interest-bearing investments 6,248 11,340 9,288
Liquid assets 11 3,196 2,129 1,238
Total current assets 59,885 54,997 52,209
TOTAL ASSETS 92,387 82,759 79,503
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity:
Parent Company’s shareholders’ interest 35,616 32,035 31,589
Non-controlling interest 331 327 425
Total shareholders’ equity 35,947 32,362 32,014
Long-term liabilities:
Long-term lease liabilities 2,190 2,078 2,043
Other long-term interest-bearing liabilities 8 7,126 6,915 6,750
Other liabilities 253 210 216
Provisions for pensions 13 1,366 1,872 474
Other provisions 2,034 2,888 2,704
Deferred tax liabilities 1,518 1,432 1,408
Total long-term liabilities 14,487 15,395 13,595
Current liabilities:
Short-term lease liabilities 661 597 583
Other short-term interest-bearing liabilities 8 326 453 95
Contract liabilities 22,937 16,553 15,196
Accounts payable 5,262 6,080 5,255
Derivatives 619 1,111 2,259
Tax liabilities 439 235 260
Other liabilities 1,465 1,083 1,579
Accrued expenses and deferred income 9,229 8,015 8,016
Provisions 1,015 875 651
Total current liabilities 41,953 35,002 33,894
Total liabilities 56,440 50,397 47,489
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 92,387 82,759 79,503
===== SIDA 16 =====
16 IN TER IM R EPO RT Q3 2024
Consolidated statement of changes in equity
MSEK
Capital
stock
Other
capital
contri-
butions
Net result
of cash
flow
hedges
Translation
reserve
Retained
earnings
Total parent
company's
shareholders'
interest
Non-
controlling
interest
Total
shareholders'
equity
Opening balance, 1 January 2023 2,174 6,099 176 1,192 19,845 29,486 390 29,876
Net comprehensive income/loss for the period January-
September 2023 -139 80 2,711 2,652 45 2,697
Transactions with shareholders:
Share matching plan 154 154 154
Dividend -703 -703 -20 -723
Acquisition and sale of non-controlling interest - - 10 10
Closing balance,
30 September 2023 2,174 6,099 37 1,272 22,007 31,589 425 32,014
Net comprehensive income/loss for the period October-
December 2023 776 -487 97 386 2 388
Transactions with shareholders:
Share matching plan 60 60 60
Dividend - - -100 -100
Closing balance,
31 December 2023 2,174 6,099 813 785 22,164 32,035 327 32,362
Opening balance, 1 January 2024 2,174 6,099 813 785 22,164 32,035 327 32,362
Net comprehensive income/loss for the period January-
September 2024 116 110 4,356 4,582 34 4,616
Transactions with shareholders:
Repurchase of shares through equity swap -319 -319 -319
Share matching plan 171 171 171
Dividend -853 -853 -30 -883
Closing balance,
30 September 2024 2,174 6,099 929 895 25,519 35,616 331 35,947
===== SIDA 17 =====
17 IN TER IM R EPO RT Q3 2024
Consolidated statement of cash flows
MSEK Note Jan-Sep 2024 Jan-Sep 2023 Full Year 2023
Operating activities:
Income after financial items 3,564 2,795 4,418
Adjustments for items not affecting cash flows 2,246 2,059 2,950
Dividend from associated companies and joint ventures 16 31 36
Income tax paid -835 -511 -856
Cash flow from operating activities before changes in working capital 4,991 4,374 6,548
Cash flow from changes in working capital:
Contract assets and liabilities 2,866 492 2,915
Inventories -4,569 -2,602 -2,691
Other current receivables -556 -949 -1,922
Other current liabilities 197 629 2,020
Provisions -1,195 -312 -408
Cash flow from operating activities 1,734 1,632 6,462
Investing activities:
Capitalised development costs -352 -379 -547
Investments in other intangible fixed assets -186 -225 -484
Investments in tangible fixed assets -2,700 -1,716 -2,507
Sales and disposals of tangible fixed assets including biological assets 43 21 4
Investments in and sale of short-term investments 5,139 773 -1,233
Investments in financial assets, associated companies and joint ventures -1,423 -434 -1,268
Investments in operations -15 -241 -262
Sale of subsidiaries and other operations 25 382 382
Cash flow from investing activities 531 -1,819 -5,915
Financing activities:
Repayments of loans -572 -478 -1,075
Amortisation of lease liabilities -521 -434 -586
Raising of loans and increase in other interest-bearing liabilities 331 130 1,250
Dividend paid to Parent Company’s shareholders -427 -703 -703
Dividend paid to non-controlling interest -28 - -126
Transactions with non-controlling interest - 10 10
Cash flow from financing activities -1,217 -1,475 -1,230
Cash flow for the period 1,048 -1,662 -683
Liquid assets at the beginning of the period 2,129 2,869 2,869
Exchange rate difference in liquid assets 19 31 -57
Liquid assets at end of period 11 3,196 1,238 2,129
===== SIDA 18 =====
18 IN TER IM R EPO RT Q3 2024
Quarterly consolidated income statement
Quarterly consolidated statement of comprehensive income
MSEK Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Sales 13,546 15,170 14,185 16,122 11,527 12,475 11,485 13,866
Cost of goods sold -10,634 -11,790 -11,100 -12,605 -9,046 -9,715 -8,983 -11,017
Gross income 2,912 3,380 3,085 3,517 2,481 2,760 2,502 2,849
Gross margin, % 21.5 22.3 21.7 21.8 21.5 22.1 21.8 20.5
Other operating income 111 20 20 179 15 114 283 101
Marketing expenses -650 -755 -694 -777 -633 -687 -641 -582
Administrative expenses -568 -595 -585 -596 -443 -491 -450 -463
Research and development costs -640 -723 -628 -624 -506 -522 -465 -529
Other operating expenses 16 -2 -23 22 -26 -41 -14 5
Share of income in associated companies and joint ventures 6 6 16 -301 -29 -68 -287 -68
Operating income (EBIT) ¹⁾ 1,187 1,331 1,191 1,420 859 1,065 928 1,314
Operating margin, % 8.8 8.8 8.4 8.8 7.5 8.5 8.1 9.5
Financial income 145 135 157 334 148 173 127 42
Financial expenses -85 -158 -339 -131 -154 -226 -125 -7
Net financial items 60 -23 -182 203 -6 -53 2 35
Income before taxes 1,247 1,308 1,009 1,623 853 1,012 930 1,349
Taxes -275 -296 -225 -369 -197 -214 -195 -195
Net income for the period 972 1,012 784 1,254 656 798 735 1,154
of which Parent Company’s shareholders’ interest 966 1,000 770 1,223 652 774 732 1,115
of which non-controlling interest 6 12 14 31 4 24 3 39
Earnings per share before dilution, SEK ²⁾⁴⁾ 1.81 1.87 1.44 2.30 1.23 1.46 1.38 2.11
Earnings per share after dilution, SEK ³⁾⁴⁾ 1.79 1.85 1.43 2.27 1.21 1.44 1.36 2.08
1) Of which depreciation/amortisation and write-downs -701 -630 -628 -612 -565 -553 -556 -569
2) Average number of shares before dilution ⁴⁾ 534,029,736 533,736,845 533,415,230 532,640,956 531,993,110 531,188,738 530,319,722 529,671,016
3) Average number of shares after dilution ⁴⁾ 539,056,834 539,334,622 539,532,640 538,631,236 538,346,168 537,964,760 537,482,588 536,233,844
4) Comparison periods adjusted for share split 4:1
MSEK Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Net income for the period 972 1,012 784 1,254 656 798 735 1,154
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations -824 42 1,161 -1,377 161 701 -167 1,173
Tax attributable to revaluation of net pension obligations 170 -9 -239 283 -33 -145 35 -245
Equity instruments classified as measured at fair value through other
comprehensive income -17 1,303 36 -41 - 2 -0 -1
Tax attributable to equity instruments classified as measured at fair
value through other comprehensive income - -1 -7 8 - -0 0 0
Total -671 1,335 951 -1,127 128 558 -132 927
Items that may be reversed in the income statement:
Translation differences -228 -12 353 -515 -47 311 -171 -268
Net gain/loss on cash flow hedges 1,401 -212 -1,035 982 23 -152 -46 273
Tax attributable to net gain/loss on cash flow hedges -286 41 207 -206 -5 32 9 -57
Interest-bearing assets classified as measured at fair value through
other comprehensive income 5 - - - - - - -
Tax attributable to interest-bearing assets classified as measured at
fair value through other comprehensive income -1 - - - - - - -
Total 891 -183 -475 261 -29 191 -208 -52
Other comprehensive income/loss for the period 220 1,152 476 -866 99 749 -340 875
Net comprehensive income/loss for the period 1,192 2,164 1,260 388 755 1,547 395 2,029
of which Parent Company's shareholders' interest 1,196 2,152 1,234 386 749 1,509 394 2,006
of which non-controlling interest -4 12 26 2 6 38 1 23
===== SIDA 19 =====
19 IN TER IM R EPO RT Q3 2024
Key ratios by quarter
Quarterly information per operating segment
MSEK Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Equity/assets ratio, (%) 38.9 39.6 39.7 39.1 40.3 40.2 39.6 41.3
Return on capital employed, % ³⁾ 13.2 12.8 12.6 11.9 11.4 10.5 9.6 8.8
Return on equity, % ³⁾ 11.8 11.2 10.9 11.1 11.2 10.4 9.5 8.6
Equity per share, SEK ¹⁾³⁾⁴⁾ 66.64 64.39 62.42 60.11 59.35 57.90 56.39 55.64
Free cash flow, MSEK ³⁾ 2,622 -2,507 -2,389 2,559 -2,554 -1,564 3,125 1,439
Free cash flow per share after dilution, SEK ²⁾³⁾⁴⁾ 4.86 -4.65 -4.43 4.75 -4.75 -2.91 5.82 2.68
1) Number of shares excluding treasury shares and repurchased through equity swap ⁴⁾ 534,426,981 533,632,490 533,841,200 532,989,260 532,292,652 531,693,568 530,683,908 529,955,536
2) Average number of shares after dilution ⁴⁾ 539,056,834 539,334,622 539,532,640 538,631,236 538,346,168 537,964,760 537,482,588 536,233,844
3) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data
4) Comparison periods adjusted for share split 4:1
MSEK Q3 2024
Operating
margin Q2 2024
Operating
margin Q1 2024
Operating
margin Q4 2023
Operating
margin
Sales
Aeronautics 3,322 3,726 4,047 4,152
Dynamics 3,056 3,312 2,622 3,800
Surveillance 5,115 5,406 4,989 5,777
Kockums 1,584 2,197 1,966 2,027
Combitech 877 1,082 1,049 1,117
Corporate/elimination -408 -553 -488 -751
Total 13,546 15,170 14,185 16,122
Operating income/loss
Aeronautics 192 5.8% 257 6.9% 276 6.8% 212 5.1%
Dynamics 412 13.5% 594 17.9% 367 14.0% 596 15.7%
Surveillance 502 9.8% 416 7.7% 405 8.1% 705 12.2%
Kockums 57 3.6% 175 8.0% 132 6.7% 192 9.5%
Combitech 91 10.4% 93 8.6% 122 11.6% 111 9.9%
Corporate -67 -204 -111 -396
Total 1,187 8.8% 1,331 8.8% 1,191 8.4% 1,420 8.8%- - - -
MSEK Q3 2023
Operating
margin Q2 2023
Operating
margin Q1 2023
Operating
margin Q4 2022
Operating
margin
Sales
Aeronautics 3,135 3,397 3,070 4,258
Dynamics 2,453 2,417 2,490 2,782
Surveillance 4,149 4,739 3,894 4,793
Kockums 1,386 1,433 1,468 1,634
Combitech 816 1,023 966 1,035
Corporate/elimination -412 -534 -403 -636
Total 11,527 12,475 11,485 13,866
Operating income/loss
Aeronautics 148 4.7% 187 5.5% 163 5.3% 257 6.0%
Dynamics 382 15.6% 353 14.6% 427 17.1% 618 22.2%
Surveillance 324 7.8% 451 9.5% 554 14.2% 520 10.8%
Kockums 73 5.3% 84 5.9% 83 5.7% 103 6.3%
Combitech 43 5.3% 75 7.3% 111 11.5% 95 9.2%
Corporate -111 -85 -410 -279
Total 859 7.5% 1,065 8.5% 928 8.1% 1,314 9.5%
===== SIDA 20 =====
20 IN TER IM R EPO RT Q3 2024
Multi-year overview
MSEK 2023 2022 2021 2020 2019
Order bookings 77,811 63,116 43,569 42,328 27,216
Order backlog at 31 December 153,409 127,676 105,177 99,816 93,293
Sales 51,609 42,006 39,154 35,431 35,433
Sales in Sweden, % 42 42 38 36 37
Sales in Europe excluding Sweden, % 23 19 17 18 16
Sales in North America, % 11 11 11 11 11
Sales in Latin America, % 7 9 15 13 12
Sales in Rest of the World, % 16 19 19 22 24
Sales in Undisclosed country, % 1 - - - -
Organic sales growth, % 23 5 11 1 6
Operating income (EBIT) 4,272 3,274 2,888 1,315 2,937
Operating margin, % 8.3 7.8 7.4 3.7 8.3
Adjusted operating income 4,272 3,274 2,888 2,738 2,937
Adjusted operating margin, % 8.3 7.8 7.4 7.4 8.3
Depreciation/amortisation and write-downs 2,286 2,127 1,938 1,518 1,368
EBITDA 6,558 5,401 4,826 2,833 4,305
EBITDA margin, % 12.7 12.9 12.3 8.0 12.1
Income after financial items 4,418 2,819 2,577 1,112 2,607
Net income for the year 3,443 2,283 2,025 1,092 2,025
Total assets 82,759 72,365 65,039 60,568 59,858
Equity 32,362 29,876 23,249 21,644 20,809
Free cash flow ¹⁾ 1,566 1,871 2,737 3,753 -2,036
Cash conversion, % ³⁾ 74 79 113 101 ²⁾ -44
Return on capital employed, % ¹⁾ 11.9 8.8 8.1 4.3 9.1
Return on equity, % ¹⁾ 11.1 8.6 9.0 5.1 10.0
Equity/assets ratio, % 39.1 41.3 35.7 35.7 34.8
Earnings per share before dilution, SEK ¹⁾⁴⁾ 6.36 4.15 3.64 2.02 3.72
Earnings per share after dilution, SEK ¹⁾⁴⁾ 6.29 4.10 3.61 2.00 3.70
Dividend per share, SEK ⁴⁾ 1.60 1.33 1.23 1.18 -
Equity per share, SEK ¹⁾⁴⁾ 60.11 55.64 43.58 40.58 38.62
Number of employees at year-end 21,479 19,002 18,153 18,073 17,420
Number of shares excluding treasury shares 31 December ⁴⁾ 532,989,260 529,955,536 527,240,712 528,988,292 531,705,452
Average number of shares before dilution ⁴⁾ 531,535,632 528,630,344 528,658,396 532,039,944 532,981,440
Average number of shares after dilution ⁴⁾ 537,511,328 534,896,892 533,173,360 535,508,564 535,717,168
1) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data
2) Adjusted for items affecting comparability
3) Cash conversion = operational cash flow / operating income
4) Comparison periods adjusted for share split 4:1
===== SIDA 21 =====
21 IN TER IM R EPO RT Q3 2024
Parent company
The Parent Company includes units within the business areas Aeronautics, Dynamics, Surveillance as well as one unit within Combitech. Group staff and
Group support are also included. A major part of the Group’s operations is included in the Parent Company. Separate notes to the Parent Company’s
financial statements and a separate description of risks and uncertainties for the Parent Company have therefore not been included in this interim report.
Parent company income statement
Parent company balance sheet
Liquidity, financing, capital expenditures and number of employees
The Parent Company’s net debt amounted to SEK 2,949 million as of 30 September 2024 compared to a net liquidity of SEK 2,635 million at 31 December
2023. Investments in tangible fixed assets amounted to SEK 1,207 million (749). Investments in intangible assets amounted to SEK 179 million (64). At the
end of the period, the Parent Company had 11,998 employees compared to 10,970 at the beginning of the year.
MSEK Jan-Sep 2024 Jan-Sep 2023 Full Year 2023
Sales 24,911 20,273 29,204
Cost of goods sold -20,472 -16,767 -23,993
Gross income 4,439 3,506 5,211
Gross margin, % 17.8 17.3 17.8
Operating income and expenses -2,854 -2,827 -3,909
Operating income (EBIT) 1,585 679 1,302
Operating margin, % 6.4 3.3 4.5
Financial income and expenses 173 -127 2,038
Income after financial items 1,758 552 3,340
Appropriations - - -617
Income before taxes 1,758 552 2,723
Taxes -423 -150 -616
Net income for the period 1,335 402 2,107
MSEK Note 30 Sep 2024 31 Dec 2023 30 Sep 2023
ASSETS
Fixed assets:
Intangible fixed assets 1,185 1,174 1,017
Tangible fixed assets 6,119 5,376 5,268
Financial fixed assets 10,310 8,555 8,872
Total fixed assets 17,614 15,105 15,157
Current assets:
Inventories 11,915 10,651 9,821
Current receivables 22,748 21,026 19,751
Short term investments 6,193 11,283 9,255
Liquid assets 1,975 753 274
Total current assets 42,831 43,713 39,101
TOTAL ASSETS 60,445 58,818 54,258
SHAREHOLDERS’ EQUITY AND LIABILITIES
Equity:
Restricted equity 3,354 3,354 3,360
Unrestricted equity 14,090 13,756 11,985
Total shareholders’ equity 17,444 17,110 15,345
Untaxed reserves, provisions and liabilities:
Untaxed reserves 3,926 3,926 3,309
Provisions 1,911 2,677 2,607
Liabilities 8 37,164 35,105 32,997
Total untaxed reserves, provisions and liabilities 43,001 41,708 38,913
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 60,445 58,818 54,258
===== SIDA 22 =====
22 IN TER IM R EPO RT Q3 2024
Notes to the financial statements
Note 1 Corporate information
Saab AB (publ.), corporate identity no. 556036 -0793, has its registered
office in Linköping, Sweden. The company’s head office is located at Olof
Palmes gata 17, 5tr, SE -111 22 Stockholm, Sweden, telephone number
+46-8-463 00 00. Saab’s B shares are listed on Nasdaq Stockholm since
1998 and on the large cap list as of October 2006. The company’s
operations, including subsidiaries, associated companies and joint
ventures, are described in the Annual and Sustainability Report 2023.
Note 2 Accounting principles
The c onsolidated accounts for the first nine months 2024 have been
prepared in accordance with IAS 34 Interim Reporting and the Annual
Accounts Act. The Parent Company’s accounts have been prepared in
accordance with the Annual Accounts Act and the Swedish Corporate
Reporting Board’s recommendation RFR 2, Accounting for Legal Entities.
The Group’s and the Parent Company’s accounting principles are
described on pages 1 12-114, and concerning significant income
statement and balance sheet items, in each note disclosure in the Annual
Report 2023.
The interim report is condensed and does not contain all the information
and disclosures in the annual report and should therefore be read together
with the Annual Report 2023. All information on pages 1 -30 constitutes
the interim report for the first nine months 2024.
The Group and the Parent Company use the accounting principles and
calculation methods as described in the Annual Report 2023. Important
estimates and assumptions are disclosed in note 2 in the Annual Report
2023.
Note 3 Segment reporting
Saab is a leading high -technology company, with its main operations in
defence, aviation and civil security. Operations are primarily focused on
well-defined areas in defence electronics, missile systems, and naval
systems as well as military and commercial aviation. Saab is also active in
technical services and maintenance. Saab has a strong position in
Sweden and the main part of sales is generated in Europe. In addition,
Saab has a local presence in Australia, the U.S., South Africa, and in other
selected countries. Saab’s oper ating 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 o f Saab. Corporate comprises Group staff and
departments, a minority portfolio containing Saab’s ownership interests in
companies in various stages of development as well as other operations
outside the core operations. The Group’s operating segments recogn ise
all lease contracts as expenses on a straight -line basis over the lease
term.
Due to the structural change where business unit Underwater Systems
has been transferred from business area Dynamics to Kockums as of 1
January 2024, 2023 has been restated. Proforma statements are available
at saab.com/investors/financials/financial-data.
Aeronautics
Aeronautics is a world-leading manufacturer of innovative aerial systems
and is engaged in development of military aviation technology. It also
conducts long-term future studies of manned and unmanned aircraft as
preparation for new systems and further development of existing
products.
Dynamics
Dynamics offers a market -leading product portfolio comprising ground
combat weapons, missile systems, systems for training and simulation,
signature management systems for armed forces around the world, and
niche products for the civil and defence markets.
Surveillance
Surveillance provides eff icient solutions for safety and security, for
surveillance and decision support, and for threat detection, location, and
protection. The portfolio covers airborne, ground -based and naval radar,
electronic warfare and combat systems and C4I solutions.
Kockums
Kockums develops, delivers, and maintains world-class solutions for naval
environments. Its portfolio includes submarines with the Stirling system
for air independent propulsion, surface combatants, mine hunting
systems, autonomous vessels , torpedoes and unmanned underwater
vehicles. Kockums’ unique competence is in signature management,
impact strength and advanced stealth technology.
Combitech
Combitech is an independent subsidiary of Saab and from 1 July 2021
reported as an operating segment out side the business area structure
within Saab Group. Combitech is one of the largest technology consulting
firms in Sweden, combining technology with cutting -edge expertise to
create solutions for its customers’ specific needs. Combitech is active in
aviation, defence, telecom and other industries as well as the public
sector. Combitech offers services in systems development, systems
integration, information security, systems security, communications,
mechanics, technical product information and logistics.
Order bookings per operating segment
Order bookings per region
Order backlog per operating segment
Order backlog per region
Jan-Sep Jan-Sep Q3 Q3 Rolling Full Year
MSEK 2024 2023 2024 2023 12 Months 2023
Aeronautics 8,760 8,878 -1 1,464 5,276 17,993 18,111
Dynamics 45,134 17,956 151 12,579 2,876 53,887 26,709
Surveillance 19,472 14,845 31 6,158 5,723 28,514 23,887
Kockums 4,636 3,184 46 735 1,015 8,949 7,497
Combitech 3,293 3,169 4 813 734 4,415 4,291
Corporate/elimination -2,053 -1,722 -576 -647 -3,015 -2,684
Total 79,242 46,310 71 21,173 14,977 110,743 77,811
Change,
%
Jan-Sep Jan-Sep Q3 Q3 Full Year
MSEK 2024 2023 2024 2023 2023
Sweden 16,170 16,784 -4 4,274 6,448 28,306
Rest of Europe 28,740 8,656 232 5,852 3,143 15,631
North America 5,392 5,646 -4 1,765 2,189 9,226
Latin America 1,165 57 1,944 314 35 1,563
Asia 4,417 2,992 48 188 1,638 6,075
Africa 349 63 454 9 4 73
Australia, etc. 1,331 2,593 -49 611 512 3,147
Undisclosed country 21,678 9,519 128 8,160 1,008 13,790
Total 79,242 46,310 71 21,173 14,977 77,811
Change,
%
MSEK 30 Sep 2024 31 Dec 2023 30 Sep 2023
Aeronautics 44,650 46,995 41,926
Dynamics 79,242 43,103 38,368
Surveillance 49,919 45,780 43,092
Kockums 15,933 17,031 14,804
Combitech 1,880 1,595 1,591
Corporate/elimination -1,568 -1,095 -1,280
Total 190,056 153,409 138,501
MSEK 30 Sep 2024 31 Dec 2023 30 Sep 2023
Sweden 53,352 55,314 50,062
Rest of Europe 59,160 40,636 37,455
North America 12,465 11,510 10,098
Latin America 16,677 17,878 17,577
Asia 10,171 9,600 8,451
Africa 780 535 557
Australia etc. 3,441 4,638 5,131
Undisclosed country 34,010 13,298 9,170
Total 190,056 153,409 138,501
===== SIDA 23 =====
23 IN TER IM R EPO RT Q3 2024
Sales per operating segment
Sales per region
Information on large customers
During the first nine months 2024, Saab had one customer that separately
accounted for 10 per cent or more of the Group’s sales. The Swedish
Defence is a customer of all business areas and total sales amounted to
SEK 15,724 million (13,409).
Seasonal variation
A major pa rt 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
Depreciation/amortisation and write-downs per operating segment
Operational cash flow per operating segment
Capital employed per operating segment
Full time equivalents (FTEs) per operating segment
Jan-Sep Jan-Sep Change, Q3 Q3 Change, Rolling Full Year
MSEK 2024 2023 % 2024 2023 % 12 Months 2023
Aeronautics 11,095 9,602 16 3,322 3,135 6 15,247 13,754
Dynamics 8,990 7,360 22 3,056 2,453 25 12,790 11,160
Surveillance 15,510 12,782 21 5,115 4,149 23 21,287 18,559
Kockums 5,747 4,287 34 1,584 1,386 14 7,774 6,314
Combitech 3,008 2,805 7 877 816 7 4,125 3,922
Corporate/elimination -1,449 -1,349 -408 -412 -2,200 -2,100
Total 42,901 35,487 21 13,546 11,527 18 59,023 51,609
Jan-Sep Jan-Sep Full Year
MSEK 2024 2023 2023
Sweden 18,164 42 15,331 43 21,614 42
Rest of Europe 10,356 24 7,858 22 11,913 23
North America 4,434 10 3,907 11 5,607 11
Latin America 2,369 6 2,488 7 3,690 7
Asia 3,896 9 2,967 8 4,759 9
Africa 106 0 78 0 109 0
Australia, etc. 2,610 6 2,509 7 3,425 7
Undisclosed country 966 2 349 1 492 1
Total 42,901 100 35,487 100 51,609 100
% of
sales
% of
sales
% of
sales
Jan-Sep Jan-Sep Q3 Q3 Rolling Full Year
MSEK 2024 2023 2024 2023 12 Months 2023
Aeronautics 725 6.5 498 5.2 192 148 937 710
Dynamics 1,373 15.3 1,162 15.8 412 382 1,969 1,758
Surveillance 1,323 8.5 1,329 10.4 502 324 2,028 2,034
Kockums 364 6.3 240 5.6 57 73 556 432
Combitech 306 10.2 229 8.2 91 43 417 340
Group segments'
operating income 4,091 9.6 3,458 9.8 1,254 970 5,907 5,274
Corporate -382 -606 -67 -111 -778 -1,002
Total 3,709 8.6 2,852 8.0 1,187 859 5,129 4,272
% of
sales
% of
sales
Jan-Sep Jan-Sep Q3 Q3 Rolling Full Year
MSEK 2024 2023 2024 2023 12 Months 2023
Aeronautics 179 155 15 63 54 230 206
Dynamics 90 71 27 32 24 117 98
Surveillance 730 650 12 273 220 979 899
Kockums 39 27 44 15 9 49 37
Combitech 9 7 29 3 2 12 10
Corporate 912 764 19 315 256 1,184 1,036
Total 1,959 1,674 17 701 565 2,571 2,286
Change,
%
Jan-Sep Jan-Sep Q3 Q3 Rolling Full Year
MSEK 2024 2023 2024 2023 12 Months 2023
Aeronautics -2,107 -610 -923 -569 -1,867 -370
Dynamics 1,794 1,435 3,677 -840 3,596 3,237
Surveillance -106 -760 -181 -819 1,807 1,153
Kockums 732 270 884 396 208 -254
Combitech 227 55 -20 -36 559 387
Corporate -1,601 -924 -249 -190 -1,673 -996
Total -1,061 -534 3,188 -2,058 2,630 3,157
MSEK 30 Sep 2024 31 Dec 2023 30 Sep 2023
Aeronautics 13,167 10,403 10,516
Dynamics 4,931 4,346 4,970
Surveillance 12,197 11,676 12,133
Kockums 3,060 3,011 2,590
Combitech 1,258 1,101 1,206
Corporate/elimination 12,776 13,417 10,488
Total 47,389 43,954 41,903
Number at end of the period 30 Sep 2024 31 Dec 2023 30 Sep 2023
Aeronautics 5,900 5,568 5,467
Dynamics 4,142 3,557 3,409
Surveillance 6,991 6,275 6,158
Kockums 2,373 2,140 2,059
Combitech 2,379 2,242 2,209
Corporate 2,201 1,828 1,611
Total 23,986 21,610 20,913
===== SIDA 24 =====
24 IN TER IM R EPO RT Q3 2024
Note 4 Distribution of sales
Note 5 Items affecting comparability
The items affecting comparability in 2024 and the comparison periods are included in the operating income of the group. Operating income adjusted for
items affecting comparability is not reported for the first nine months 2024, the third quarter 2024, full year 2023, the first nine months 2023 or the third
quarter 2023.
Note 6 Dividend to Parent Company’s shareholders
The Annual General Meeting 2024 held on 11 April decided on a dividend
to the Parent Company’s shareholders of SEK 6.40 per share (SEK 1.60
after implementation of the share split 4:1) , corresponding to a total
dividend of SEK 853 million. The dividend was paid out in two equal
instalments. Record date for the first instalment was 15 April 2024 and the
dividend was pai d out on 18 April 2024. At the second instalment, SEK
0.80 per share (after implementation of the share split 4:1) was paid on 11
October 2024 with the record date 8 October 2024.
Note 7 Intangible fixed assets
MSEK
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
Jan-Sep
2024
Jan-Sep
2023
External sales 11,052 9,540 8,798 7,218 15,051 12,415 5,648 4,223 1,931 1,927 421 164 42,901 35,487
Internal sales 43 62 192 142 459 367 99 64 1,077 878 -1,870 -1,513 - -
Total sales 11,095 9,602 8,990 7,360 15,510 12,782 5,747 4,287 3,008 2,805 -1,449 -1,349 42,901 35,487- - - - - - - - - - - - - -
Sales by customer:
Military customers 10,252 8,832 8,657 7,081 13,774 11,031 5,275 3,914 1,015 880 191 91 39,164 31,829
Civilian customers 800 708 141 137 1,277 1,384 373 309 916 1,047 230 73 3,737 3,658
Total external sales 11,052 9,540 8,798 7,218 15,051 12,415 5,648 4,223 1,931 1,927 421 164 42,901 35,487- - - - - - - - - - - - - -
Sales by significant source:
Long-term customer contracts 10,313 8,236 4,207 2,476 10,387 9,393 3,360 2,556 - - 189 92 28,456 22,753
Services 578 1,049 1,123 1,020 3,102 2,053 1,154 815 1,800 1,826 138 57 7,895 6,820
Products 161 255 3,468 3,722 1,562 969 1,134 852 131 101 94 15 6,550 5,914
Total external sales 11,052 9,540 8,798 7,218 15,051 12,415 5,648 4,223 1,931 1,927 421 164 42,901 35,487- - - - - - - - - - - - - -
Sales by domain:
Air 10,105 8,617 279 160 5,889 5,203 - - 30 29 24 39 16,327 14,048
Land 114 88 7,602 6,465 2,746 1,929 - - 1,004 883 41 15 11,507 9,380
Naval 6 7 866 558 5,043 3,830 5,648 4,223 3 4 108 61 11,674 8,683
Civil Security 24 41 31 19 1,355 1,444 - - 265 268 54 39 1,729 1,811
Commercial Aeronautics 792 787 - - 5 1 - - 6 4 12 6 815 798
Other/not distributed 11 - 20 16 13 8 - - 623 739 182 4 849 767
Total external sales 11,052 9,540 8,798 7,218 15,051 12,415 5,648 4,223 1,931 1,927 421 164 42,901 35,487- - - - - - - - - - - - - -
Sales recognition method:
Over time 9,635 8,396 4,920 3,341 11,145 9,261 5,311 3,973 1,929 1,926 203 112 33,143 27,009
Point in time 1,417 1,144 3,878 3,877 3,906 3,154 337 250 2 1 218 52 9,758 8,478
Total external sales 11,052 9,540 8,798 7,218 15,051 12,415 5,648 4,223 1,931 1,927 421 164 42,901 35,487
Corporate/
elimination Group Aeronautics Dynamics Surveillance Kockums Combitech
Item affecting comparability Business Area Line item Jan-Sep 2024 Jan-Sep 2023 Q3 2024 Q3 2023 Full Year 2023
Capital gain from divestment of Combitech Norway Combitech Other operating income 18 - 18 - -
Write-down of associated companies Corporate Share of income in associated companies and joint ventures - -284 - - -494
Capital gain from the divestment of MTM operations Surveillance Other operating income - 270 - - 270
Capital gain from divestment of property Corporate Other operating income - 58 - - 58
Negative goodwill from a preliminary purchase price
allocation
Corporate Other operating income - - - - 144
Total 18 44 18 - -22
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
Goodwill 5,455 5,424 5,556
Capitalised development costs 6,021 6,106 5,984
Other intangible assets 1,394 1,411 1,218
Total 12,870 12,941 12,758
===== SIDA 25 =====
25 IN TER IM R EPO RT Q3 2024
Note 8 Net liquidity/debt
Committed credit lines
Parent Company
Since 2009, Saab has a Medium Term Note (MTN) programme to enable
issuance of bonds in the capital market. During 2018 the MTN programme
was increased to SEK 10,000 million. A major part of the bonds are issued
as Floating Rate Notes (FRN). During the first nine months, loans with short
maturity amounting to SEK 400 million were repurchased. No new bonds
were issued. Bonds outstanding within the MTN programme amounted to
SEK 6,870 million by the end of the third quarter.
No revolving credit facilities have been utilised during the period.
Note 9 Capital employed
Note 10 Financial instruments
Classification and categorisation of financial assets and liabilities²⁾
The Group has used the same valuation methods as in the year -end
closing of 202 3, as described in the Annual Report 2023 on page 1 55,
note 35. As of 30 September 2024, the Group had the following financial
assets and liabilities at fair value:
Financial assets at fair value
Financial liabilities at fair value
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
Assets:
Liquid assets 3,196 2,129 1,238
Short-term investments 6,248 11,340 9,288
Total liquid investments 9,444 13,469 10,526
Short-term interest-bearing receivables 74 73 74
Long-term interest-bearing receivables 266 333 640
Long-term receivables attributable to pensions 59 59 19
Long-term interest-bearing financial investments 1,121 - -
Total interest-bearing assets 10,964 13,934 11,259
Liabilities:
Lease liabilities 2,851 2,675 2,626
Bonds and other debt instruments 7,309 7,270 6,744
Liabilities to associated companies
and joint ventures 51 49 53
Other interest-bearing liabilities 92 48 48
Provisions for pensions ¹⁾ 1,139 1,549 418
Total interest-bearing liabilities and provisions for
pensions 11,442 11,591 9,889
Net liquidity (+) / net debt (-) -478 2,343 1,370
1) Excluding provisions for special employers' contribution attributable to pensions.
MSEK Facilities Drawings Available
Revolving credit facility
(Maturity 2026 SEK 6 billion) 6,000 - 6,000
Overdraft facility (Maturity 2025) 93 14 79
Total 6,093 14 6,079
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
Long-term bonds and other debt instruments 7,074 6,870 6,704
Short-term bonds and other debt instruments 215 400 -
Total 7,289 7,270 6,704
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
Total assets 92,387 82,759 79,503
Less non-interest bearing liabilities 44,998 38,805 37,600
Capital employed 47,389 43,954 41,903
Carrying amount
30 Sep
2024
31 Dec
2023
30 Sep
2023
Financial assets:
Valued at amortised cost ⁴⁾:
Accounts receivable, contract assets and other
receivables 24,319 21,144 21,323
Liquid assets 3,196 2,129 1,238
Long-term receivables 396 456 762
Valued at fair value through profit and loss ³⁾:
Short-term interest-bearing investments 6,248 11,340 9,288
Derivatives for trading 44 81 64
Financial investments 234 223 229
Valued at fair value through other comprehensive
income ³⁾:
Derivatives identified as hedges 1,467 1,575 1,652
Equity investments elected to be classified as fair value
through other comprehensive income 2,477 879 920
Long-term interest-bearing investments 1,121 - -
Total financial assets 39,502 37,827 35,476
Financial liabilities:
Valued at amortised cost:
Interest-bearing liabilities ¹⁾ 10,303 10,043 9,471
Other liabilities ⁴⁾ 13,083 12,426 12,169
Valued at fair value through profit and loss ³⁾:
Contingent consideration payable 135 158 129
Derivatives for trading 13 8 90
Valued at fair value through other comprehensive
income ³⁾:
Derivatives identified as hedges 606 1,103 2,169
Total financial liabilities 24,140 23,738 24,028
¹⁾ Fair value 10,621 9,840 9,377
²⁾ Derivatives with positive values are recognised as assets and derivatives with negative
values are recognised as liabilities. Derivatives with a legal right of offset amount to SEK 579
million.
³⁾ The impact of credit risk on these instruments is considered low given the limits in the
current investment policy.
⁴⁾ Carrying amount, in Saab’s assessment, essentially corresponds to fair value.
MSEK 30 Sep 2024 Level 1 Level 2 Level 3
Bonds and interest-bearing securities 7,369 7,369 - -
Forward exchange contracts 1,349 - 1,349 -
Currency options 7 - 7 -
Interest rate swaps 154 - 154 -
Electricity derivatives 1 1 - -
Shares and participations 2,711 - - 2,711
Total 11,591 7,370 1,510 2,711
MSEK 30 Sep 2024 Level 1 Level 2 Level 3
Forward exchange contracts 566 - 566 -
Currency options 3 - 3 -
Interest rate swaps 27 - 27 -
Electricity derivatives 23 23 - -
Contingent consideration payable 135 - - 135
Total 754 23 596 135
===== SIDA 26 =====
26 IN TER IM R EPO RT Q3 2024
Movements in the group’s Level 3 financial inpstruments were as follows:
Note 11 Supplemental information on statement of cash flows
Free cash flow
Free cash flow vs. statement of cash flows
Liquid assets
Note 12 Business combinations
In the first quarter 2024, Saab completed the acquisition of the remaining
shares in UMS Skeldar AG for a minor consideration. The UMS Skeldar AG
Group was an associated company in the comparison period January -
September 2023. In the fourth quarter 2023, Saab acquired two
subsidiaries in Sweden from UMS Skeldar AG for a minor consideration
and entered into an agreement to acquire the remaining shares in UMS
Skeldar AG. No acquisitions or divestments took place in the second
quarter 2024.
In the beginning of the third quarter 2024, Combitech divested its
Norwegian entity for a minor consideration.
MSEK Unlisted shares and participations Contingent consideration payable
Opening balance, 1 January 2024 1,102 158
Acquisitions 284 -
Unrealised gains/losses recognised in the income statement 3 -33
Unrealised gains/losses recognised in other comprehensive income 1,322 -
Foreign currency translation - 10
Closing balance, 30 September 2024 2,711 135
MSEK
Jan-Sep
2024
Jan-Sep
2023 Q3 2024 Q3 2023
Full year
2023
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾ 5,391 4,507 1,830 1,434 6,777
Cash flow from changes in working capital:
Contract assets and liabilities 2,866 492 3,723 -881 2,915
Inventories -4,569 -2,602 -1,682 -738 -2,691
Other current receivables -556 -949 2,040 -626 -1,922
Other current liabilities 197 629 -1,126 -208 2,020
Provisions -1,195 -312 -590 -191 -408
Change in working capital -3,257 -2,742 2,365 -2,644 -86
Cash flow from operating activities excluding taxes and other financial items 2,134 1,765 4,195 -1,210 6,691
Investing activities:
Investments in intangible fixed assets -538 -604 -168 -181 -1,031
Investments in tangible fixed assets -2,700 -1,716 -858 -667 -2,507
Sales and disposals of tangible fixed assets including biological assets 43 21 19 - 4
Cash flow from investing activities ²⁾ -3,195 -2,299 -1,007 -848 -3,534
Operational cash flow -1,061 -534 3,188 -2,058 3,157
Taxes and other financial items -920 -567 -301 -254 -815
Sale of and investments in financial assets, associated companies and joint ventures -303 -33 -290 -1 -896
Investments in operations -15 -241 - -241 -262
Sale of subsidiaries and other operations 25 382 25 - 382
Free cash flow -2,274 -993 2,622 -2,554 1,566
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.
1) Including amortisation of lease liabilities
Jan-Sep Jan-Sep Q3 Q3 Full Year
MSEK 2024 2023 2024 2023 2023
Free cash flow -2,274 -993 2,622 -2,554 1,566
Investing activities – interest-bearing:
Short-term investments 5,139 773 -538 2,053 -1,233
Other financial investments and receivables -1,121 -401 -531 -195 -372
Financing activities:
Repayments of loans -572 -478 -231 -209 -1,075
Raising of loans and increase in other interest-bearing
liabilities 331 130 101 130 1,250
Dividend paid to the Parent Company’s shareholders -427 -703 - - -703
Dividend paid to non-controlling interest -28 - - - -126
Transactions with non-controlling interest - 10 - - 10
Cash flow for the period 1,048 -1,662 1,423 -775 -683
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
The following components are included
in liquid assets:
Cash and bank balances 1,646 1,629 1,238
Bank deposits 1,550 500 -
Total according to balance sheet 3,196 2,129 1,238
Total according to statement of cash flows 3,196 2,129 1,238
===== SIDA 27 =====
27 IN TER IM R EPO RT Q3 2024
Note 13 Defined-benefit plans
Saab has defined -benefit pension plans where post -employment
compensation is based on a percentage of the recipient’s salary. Defined-
benefit 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
Actuarial gains and losses are recognised in other comprehensive
income. The actuarial gain related to the Swedish pension plans amounted
to SEK 379 million during January-September 2024, primarily due to the
following:
The return on assets under managemen t was SEK 517 million which
resulted in an actuarial gain of SEK 305 million.
The actuarial gain related to the special employer’s contribution amounted
to SEK 74 million.
The assumed discount rate was unchanged from December 31 2023 and
amounted to 3.25 per cent. Also, the inflation assumption was unchanged
during the period at 1.50 per cent.
Note 14 Contingent liabilities
No additional significant commitments have arisen during the first nine
months 2 024. With regard to the Group’s so -called performance
guarantees for commitments to customers, the likelihood of an outflow of
resources is estimated as remote and, as a result, no value is recognised.
Note 15 Transactions with related parties
In the first quarter 2024, Saab completed the acquisition of the remaining
shares in UMS Skeldar AG for a minor consideration.
No other significant transactions with related parties have occurred during
the first nine months 2024. Related parties with which the Group has
transactions are described in note 37 in the Annual Report 2023.
Note 16 Definitions
Below are definitions of financial key ratios that are used in the report. For
more information and explanations regarding the usage of these key
ratios, please see www.saab.com/investors/financials/financial-data.
Capital employed
Total assets less non-interest-bearing liabilities.
Cash conversion
Operational cash flow divided by operating income (EBIT).
Earnings per share
Net income for the period attributable to the Parent Company’s
shareholders, divided by the average number of shares before and aft er
full dilution.
EBITDA
Operating income before depreciation/amortisation and write-downs.
EBITDA adjusted for items affecting comparability
Operating income before depreciation/amortisation and write -downs
adjusted for items classified as affecting comparability.
EBITDA margin
Operating income before depreciation/amortisation and write-downs as a
percentage of sales.
EBITDA margin adjusted for items affecting comparability
Operating income before depreciation/amortisation and write -downs
adjusted for items affecting comparability as a percentage of adjusted
sales.
Effective tax rate
Current and deferred taxes as a percentage of income before tax.
Equity/assets ratio
Equity in relation to total assets.
Equity per share
Equity attributable to the Parent Company’s shareholders divided by the
number of shares, excluding treasury shares and shares repurchased
through equity swaps, at the end of the period.
Free cash flow
Cash flow from operating activities including amortisation of lease
liabilities and cash flow from investing activities, excluding acquisitions
and divestments of short -term investments and other interest -bearing
financial assets.
Free cash flow per share
Free cash flow divided by the average number of shares after dilution.
Full Time Equivalent, FTE
Refers to the number of full -time equivalent employees. Excludes long -
term absentees and consultants but includes fixed term employees and
part-time employees.
Gross income adjusted for items affecting comparability
Gross income adjusted for items classified as affecting comparability.
Gross margin
Gross income as a percentage of sales.
Gross margin adjusted for items affecting comparability
Gross income adjusted for items affecting comparability as a percentage o f
adjusted sales.
Items affecting comparability
Items affecting comparability comprise the financial effects from events
or transactions with material impact that are relevant to understand the
result when comparing periods. Such events or transactions can relate to
restructuring programs, costs related to disputes and legal proceedings,
macroeconomic developments, impairment charges and gains and
losses from divestments of group companies, joint ventures or associated
companies.
Net investments
Investments, sales and disposals of intangible and tangible fixed assets.
Net liquidity/net debt
Liquid assets, short -term investments and interest -bearing receivables
less interest -bearing liabilities and provisions for pensions excluding
provisions for pensions attributable to special employers’ contribution.
Net liquidity/net debt to EBITDA
End of period Net liquidity/net debt divided by 12 -month rolling reported
EBITDA.
Number of employees
Headcount of all employed by the company, excluding fixed term
employees and consultants.
Operating income
Income before financial items and tax.
Operating income adjusted for items affecting comparability
Operating income (EBIT) adjusted for items classified as affecting
comparability.
Operating margin
Operating income (EBIT) as a percentage of sales.
Operating margin adjusted for items affecting comparability
Operating income adjusted for items affecting comparability as a
percentage of adjusted sales.
Operational cash flow
Cash flow from operating activities , excluding taxes and other financial
items, amortisation of lease liabilities and investments, sales and disposals
of intangible and tangible fixed assets.
Order backlog
Total value of orders at the end of the period.
Order bookings
Total value of orders received during the period.
MSEK
30 Sep
2024
31 Dec
2023
30 Sep
2023
Defined-benefit obligation 10,856 10,749 9,547
Special employers' contribution 227 323 56
Less assets under management 9,776 9,259 9,148
Total provisions for pensions 1,307 1,813 455
of which reported as long-term receivable 59 59 19
===== SIDA 28 =====
28 IN TER IM R EPO RT Q3 2024
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 de velopment as well as amortisation and any write -
down of capitalised development costs.
Research and development expenditures comprise both expenses
incurred as costs excluding amortisation and write-downs, and expenses
capitalised as development costs in the statement of financial position.
Total R&D expenses also include the part of Saab’s R&D that is conducted
in cooperation with customers, which is reported as cost of goods sold.
Return on capital employed
Operating income plus financial income (rolling 12 months) as a
percentage of average capital employed.
Return on equity
Net income for the period (rolling 12 months) as a percentage of average
equity.
Sales adjusted for items affecting comparability
Sales adjusted for items classified as affecting comparability.
===== SIDA 29 =====
29 IN TER IM R EPO RT Q3 2024
Glossary
AEW&CS Airborne Early Warning & Control System
C4I Command, Control, Communications, Computers, and Intelligence
CDP Global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts
FMV Swedish Defence Materiel Administration, Sw, “Försvarets materielverk”
FRN Floating Rate Note
IAS International Accounting Standards
IFRS International Financial Reporting Standards
MTN Medium Term Note, loan facility for issuance of bonds with a duration of 1-15 years
MTM Maritime Traffic Management
NSPA NATO Support and Procurement Agency
NLAW Next Generation Light Anti-Tank Weapon
SBTi Science Based Targets initiative
Stockholm 22 October 2024
Saab AB (publ)
Micael Johansson
President and CEO
Review report
This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall
prevail.
Saab AB (publ.), corporate identity number 556036-0793.
Introduction
We have reviewed the condensed interim financial information (interim report) of Saab AB as of 30 September 2024 and the nine-month period then ended. The
board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish
Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the
Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing
standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with
IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm 22 October 2024
PricewaterhouseCoopers AB
Fredrik Göransson
Authorised Public Accountant, Auditor in charge
Camilla Samuelsson
Authorised Public Accountant
===== SIDA 30 =====
Important information
This interim report may contain forward -looking
statements which reflect Saab AB’s current view on future
events and financial and operational development. Words
such as “intend”, “expect”, “anticipate”, “may”, “believe”,
“plan”, “estimate” and other expressions which imply
indications or predictions of future development or trends,
and which are not based on historical facts, are intended to
identify forward -looking state ments. Forward -looking
statements inherently involve both known and unknown
risks and uncertainties as they depend on future events
and circum stances. Forward -looking statements do not
guarantee future results or development and the actual
outcome could di ffer materially from the forward -looking
statements.
This information is such that Saab AB is obliged to make
public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the
agency of the contact person set out above, on 22
October 2024 at 07.30 (CET).
Contacts
Merton Kaplan, Head of Investor Relations
+46 734 18 20 71
Media and financial analyst conference:
22 October 2024 at 10.00 (CET)
Live webcast:
www.saab.com/investors/webcast/q3-2024
Conference call:
For information on how to join the call, please register
on www.saab.com/investors/conference-call-q3
The interim report, presentation material and the
webcast will be available on www.saab.com/investors
Calendar
Year-end report 2024
Published 7 February 2025
Annual General Meeting
To be held in Linköping, Sweden on 10 April 2025
Q1 Interim report 2025
Published 25 April 2025
Q3