INTERIM REPORTJANUARY-MARCH 2014

Håkan Buskhe, President and CEOStockholm, 25 April 2014

Development of Gripen E on trackNegotiations with Brazil concerningpotential procurement of Gripenprogress according to planSwiss referendum regarding Gripen18 May, 2014Expansion in naval domainannounced

CHALLENGING MARKETPROVIDES OPPORTUNITIES

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LARGE INTEREST FOR OUROFFERING GLOBALLY

FINANCIAL HIGHLIGHTS

MSEKJan-Mar

2014 Change, %

Jan-Mar2013

Order bookings 4,078 -78 18,865Order backlog 58,608 25 47,059

Sales 5,280 -10 5,862Operating income 270 -32 396Operating margin, % 5.1 6.8

Net income 176 -33 262Free cash flow -316 -325

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STRONG ORDER BACKLOG

Page 4

52%48% 30%

70% 56%44%

Sales Order intake Order backlogJan – Mar 2014SwedenInternational

2591

914

119715

1022

178 323

2518

845

88456

1009

170 1940

1 000

2 000

3 000

4 000

5 000

6 000

Sweden EU excl.SE

RoE Americas Asia Africa Australia,etc.

Sales per region

877

105

10591689

151 61

1215 1424

119633 474

130 830

1 000

2 000

3 000

4 000

5 000

6 000

Sweden EU excl.SE

RoE Americas Asia Africa Australia,etc.

Order bookings per region14 923

Jan-March 2013Jan-March 2014

-92%

62%

13%

-40%-72%

-14% 36%

-3%

-8%

-26%-36%

-1%

-4% -40%

15 000

ORDER BOOKINGS AND SALESDEVELOPMENT

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SPENDING SHIFT AND INCREASEDCOMPETITION

Source: IHS Aerospace, Defence & Security, Jane’s, Defence Budgets – Annual Report 2013

Global Defence Expenditure by Region – 2013 Global Defence Expenditure by Region – Est. 2017

Asia22%

EastEurope

8%

MENA8%

NorthAmerica

39%

Oceania2%

SouthAmerica

5%

Sub-Saharan

Africa1%

WestEurope

15%Asia24%

EastEurope

10%

MENA8%

NorthAmerica

36%

Oceania2%

SouthAmerica

5%

Sub-Saharan

Africa1%

WestEurope

14%

Top Ten Defence Budgets – 2013 Top Ten Defence Budgets – Est. 2017

UnitedStates52%

China12%

Japan6%

Russia6%

UK5%

France4%

India4%

Germany4%

SaudiArabia

4%

Australia3%

UnitedStates48%

China14%

Russia8%

Japan6%

UK5%

India5%

France4%

SaudiArabia

4%

Germany3%

Australia3%

FTE’s reduced by about 300 in Q1 2014Reduction of external consultants by more than300 since beginning of 2013Charges for efficiency measures taken inbusiness area EDS in Jan-March 2014On track to reach efficiency improvements ofMSEK 500 by the end of 2014

EFFICIENCY IMPROVEMENTSAS PLANNED

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EFFICIENCY IMPROVEMENTSIN FOCUS 2014

Investment in development of new productgenerationInitiated efficiency measures andreorganised in 2013Charges for efficiency measures taken inJan-March 2014Investments in product developmenttogether with restructuring charges led toloss in first quarter 2014Turnaround expected mid-2014

ELECTRONIC DEFENCESYSTEMS

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Order from FMV regarding study on pre-requisities for aconsolidated strategy to support the underwater domainNon-binding Memorandum of Understanding (MoU)regarding acquisition of Thyssen Krupp Marine SystemsAB (former Kockums)

In line with Saab’s ambition to expand its activities in the naval areaand meets the needs of Sweden for an industrial solution regardingdesign, production and maintenance of submarines and warships

EXPANSION IN NAVAL DOMAIN

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GRIPEN E DEVELOPMENT ON TRACKAND ON BUDGET

The development of Gripen E brings together highly complex sub-systems, such as sensors, electronic warfare systems, avionics, etc

Contracts signed with all major subcontractors

Test flights, where critical subsystems and their interoperability aretested to minimise risk, already well underway

First delivery planned for 2018

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HIGH INTEREST IN GRIPEN GLOBALLY

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Switzerland:Swiss parliament supports procurement of GripenReferendum to be held 18 May 2014Industrial cooperation efforts on track

Brazil:Negotiations between Saab and the Brazilian Air Force ongoing aiming at aprocurement of 36 Gripen NG; no order received yetAmbition from both parties to sign an agreement in 2014

OUTLOOK STATEMENT 2014

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In 2014, we estimate sales to be in line with 2013.

The operating margin, excluding material net capital gains andother non-recurring items, is estimated to be slightly higher in2014 compared to 2013.

FINANCIALSJANUARY-MARCH 2014

Magnus Örnberg, CFOStockholm, 25 April 2014

SUMMARY, JANUARY-MARCH 2014

Challenging market conditionsIncrease in order bookings in SDS

Lower activity level in Dynamics, investments in EDS andlower activity in Combitech impacted profitabilityEfficiency measures progressing according to plan;additional charges taken for measures in EDSStrengthened governance model in place since1 January 2014

Strong focus on operational cash flow; however negative inthe quarterIncreased pension provisions due to lowered discount ratefrom 4.00 to 3.50 per cent

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PR

OFI

TAB

ILIT

YFI

NA

NC

IAL

PO

SIT

ION

GR

OW

TH

In Jan-March 2014 financial report financials for business areas arerestated to reflect organisational changes. No impact on Group financials

LEVEL OF SMALL ORDERS STABLE

0

0,5

1

1,5

2

2,5

0

5 000

10 000

15 000

20 000

25 000

30 000

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Boo

k-to

-bill

ratio

(12

mon

ths

rolli

ng)

Ord

erbo

okin

gs,M

SEK

Small orders* Large orders Book-to-bill ratio

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*Small orders = <100 MSEK

Order Backlog duration, SEK bn

31 Mar 2014 Dec 2013 Dec 20122014: 15.4 2014: 17.4 2013: 16.1

2015: 10.7 2015: 10.8 2014: 7.9

2016: 7.8 2016: 8.1 2015: 4.6

2017: 5.1 2017: 5.9 2016: 2.7

After 2017: 19.6 After 2017: 17.7 After 2016: 2.9

Total: 58.6 Total: 59.9 Total: 34.2

ORDER BACKLOG

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56%44%

Order Backlog

Jan – Mar 2014SwedenInternational

1 765

877 1 1511 097 871

423

1 577

716 974 1 156839

447

0

1 000

2 000

3 000

4 000

5 000

6 000

Aeron. Dyn. EDS SDS S&S Combi.

Sales per Business Area

Jan-Mar 2013 Jan-Mar 2014

Sweden48%

EU excl.Swe16%

RoE2%

Americas8%

Asia19%

Africa3%

Australiaetc4%

Sales per Region

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753

3 693

925

2 725

424631 449938

1321737

418

0

1 000

2 000

3 000

4 000

5 000

6 000

Aeron. Dyn. EDS SDS S&S Combi.

Order Bookings per Business Area

Jan-Mar 2013 Jan-Mar 2014

ORDERS AND SALES DEVELOPMENT

Sweden30%

EU excl.Swe35%

RoE3%

Americas16%

Asia12%

Africa3%

Australiaetc2%

Order Bookings per Region10 833

-94%

-40%-75% 43%

-73%-1%

-11%-18% -15% +5%

-4% +6%

11 000

OPERATING INCOME

116

84

-12-22

102

44

118

28

-36

-12

87

25

-50

0

50

100

150

Aeron. Dyn. EDS SDS S&S Combi.

MSE

K

Jan-Mar 2013 Jan-Mar 2014

Page 17

Low activity level in Dynamics led to lower EBIT margins

Investments in EDS for future growth continued; also costsfor measures to increase efficiency taken in Q1 2014

Combitech’s lower profitability due to lower utilization rate

6.6% 7.5% 9.6% 3.9% -1.0% -3.7% -2.0% -1.0% 11.7% 10.4% 10.4% 5.6%

IMPACT FROM ADDITIONAL EFFICIENCYMEASURES ON TRACK

Actions defined in 2013’s action planinitiatedReorganisations done in 2013 withinSecurity Defence Solutions, ElectronicDefence Solutions, Dynamics and Supportand ServicesReduction of FTEs within Dynamics, SecurityDefence Solutions and Support and Servicessince start of 2013FTE’s reduced by about 300 since year-end2013External consultants reduced by morethan 300 since start of 2013Within Electronic Defence Systems additionalcosts were taken in the first quarter 2014related to the on-going competency shiftprogramFocus on marketing andadministrative costs

March 2014 YE 2014Start 2013

COGS(60%)

OPEX(40%)

MSEK500

STATUS REPORT

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Yearly run rate

CAPITALISED DEVELOPMENT COSTS

Mar. 2014Dec. 2013Dec. 2012Dec. 2011Dec. 2010Dec. 2009Dec. 2008

Capitalised development costs on the balance sheet

Jan-Mar2014

20132012201120102009'2008

Capitalised development costsView on criteria for capitalising development costschanged in 2009Since then, development costs are capitalised at alater stage in all projects and all capitaliseddevelopment costs are amortised over maximumten yearsIn the first quarter 2014 self-financed developmentcosts partly related to radar and sensor technologydevelopment were capitalised

Level of amortisation of capitalised developmentexpenses in 2014 and coming years:Approximately MSEK2014: 3702015: 3502016: 300

March2014

Dec.2013

Dec.2012

Dec.2011

Dec.2010

Dec.2009

Dec.2008

Amortisation and write- downs of capitalised development

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635 67 47 15 292 24

728 686 664 588 590 454

3,628 3,038 2,428 1,950 1,751 1,338

79

36

1,295

OPERATIONAL CASH FLOWAND FREE CASH FLOW

MSEKCash flow from operating activities beforechanges in working capital

474

Change in working capital -514Investing activities -128Operational Cash flow -168

Tax and other financial items -93Acquisition and sale of subsidiaries -55Free Cash flow -316

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As of 1 January 2014 Saab reports operational cash flow and free cash flow. Previously operating cash flow was reported,which was defined the same way as free cash flow is defined as of 1 January 2014.

NET LIQUIDITY

Increased pension liability due to lowered discount rate from 4.00 to3.50 per cent

At 31 March 2014 the Equity asset ratio was 44.4 per cent (41.5)

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MSEKNet liquidity, 31 December 2013 813Cash flow from operating activities 31 March 2014 -133Pensions -538Net investments -183Currency impact 7Net liquidity, 31 March 2014 -34

Order intake and backlog execution are top prioritiesSolidify Market Area organisationSecure impact from additional efficiency measuresDrive operating cash flow improvement

Project tendering and execution

Performance management

FOCUS GOING FORWARD

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