26 April, 2017

JANUARY-MARCH2017

Håkan Buskhe, President and CEOMagnus Örnberg, EVP and CFO

HIGHLIGHTS JANUARY – MARCH 2017

2

Market demand high for defence and security

Leading technology and cost-efficient solutions

Overall performance in line with expectation

Strengthened order backlog compared to year-end 2016

Improved gross margin, operating margin and positive cash flow generation

Additional order for GlobalEye in first quarter

Order for next generation anti-ship missile

Saab and Aalto University research agreement

Increased attractiveness among femaleengineering student in Swedish ranking

ORDERS RECEIVED JAN-MAR 2017

3

FINANCIAL HIGHLIGHTS, JAN-MAR 2017

4

• Orders received after the closing of the period include a contract with the Swedish Defence Material Administration (FMV) for delivery of a Special Purpose Ship for Signal Intelligence (SIGINT).

02468

1012

Order bookings

Q1 2016 Q1 2017

020406080

100120

Order backlog

Q1 2016 Q1 2017

0100200300400500600

Operating income

Q1 2016 Q1 2017

02468

1012

Sales

Q1 2016 Q1 2017

+9%

4.3% 6.6%

BSEK

BSEK

BSEK

MSE

K

EBIT-margin

BACKLOG DEVELOPMENT

5

02468

1012

2012 2013 2014 2015 2016 Q12017

Dynamics

010203040506070

2012 2013 2014 2015 2016 Q12017

Aeronautics

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 Q1 2017

Saab Group

BS

EK

BS

EK

BSEK

* *

* *

* Figures not restated for organisational change in 2016

PRODUCTIVITY IMPROVEMENT

1,45

1,5

1,55

1,6

1,65

1,7

1,75

1,8

1,85

1,9

2013 2014 2015 2016 Q1 2017

Sales per FTE

6

Q1 2017 sales rolling 12-months

FOCUS ON COST BASE

11,0%

11,5%

12,0%

12,5%

13,0%

13,5%

14,0%

14,5%

2012 2013 2014 2015 2016 Q1 2017

Admin and Marketing expenses / Sales

7

OUTLOOK STATEMENT 2017

8

• We estimate that sales growth in 2017 will be higherthan Saab’s long-term financial goal: annual organic sales growth of 5 per cent.

• We expect the operating margin, excluding material non-recurring items, to improve compared to 2016 and thus the company will take a step towards its financial goal: an operating margin of 10 per cent.

FINANCIAL UPDATE

9

SUMMARY JAN-MAR 2017

• Solid order backlog with strong increase in business area Dynamics

• Sales growth of 9 per cent:‒ Growth in Airborne Early Warning area‒ Execution of larger projects

• Gross margin and operating margin improved – in line with management expectations

• Operating cash flow positive

• Balance sheet continued strong with equity/asset ratio >33 per cent

10

FINANCIAL KEY DATA

11

*Adjusted for non-recurring items

MSEKJan-Mar

2017Jan-Mar

2016Change FY 2016

Order bookings 9,701 4,614 110 21,828

Order backlog 109,381 111,649 -2 107,606Sales 7,430 6,790 9 28,631Operating income 492 294 67 1,797Operating margin 6.6% 4.3% 6.3%Net income 360 223 61 1,175Operationalcash flow

986 3,056 2,603

Free cash flow 897 2,955 2,359

ORDER BACKLOGOrder backlog duration, SEK bn

31 March 2017 31 March 2016 31 Dec 2016

2017: 20.1 2016: 18.2 2017: 24.5

2018: 19.7 2017: 17.2 2018: 17.0

2019: 15.2 2018: 12.4 2019: 13.5

2020: 15.5 2019: 11.9 2020: 15.8

After 2020: 38.9 After 2019: 51.9 After 2020: 36.8

Total: 109.4 Total: 111.6 Total: 107.6

12

0

20

40

60

80

100

120

'12 '13 '14 '15 '16 Q1 '17

BS

EK

Order backlog

36%

64%

Order backlog distribution

SwedenRoW• Strong order backlog in all business areas

ORDER SIZE DISTRIBUTION

0

0,5

1

1,5

2

2,5

3

3,5

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

MS

EK

Small orders* Large orders Book-to-bill ratio

13

*Small orders = <MSEK 100Book-to-bill ratio calculated as 12 months rolling

ORDER BOOKINGS AND ORDER BACKLOG

0500

1 0001 5002 0002 5003 0003 5004 0004 500

Aeron. Dyn Surveillance S&S IPS Kockums

MS

EK

Q1 '16 Q1 '17

14

36%

9%

40%

13%

1% 1%

Regional distribution, Order backlog

SwedenRoEAmericasAsiaAfricaAustralia etc

Major order in Airborne Early Warningsegment received in January 2017

Dynamics received order for nextgeneration anti-ship missile

Support and Services signed global framework agreement with Loomis Group regarding secure transport logistic system

0

10

20

30

40

Aeron. Dyn Surveillance S&S IPS Kockums

BSEK

Q1 '16 Q1 '17

Order bookings

Order backlog60

SALES

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

Aeron. Dyn Surveillance S&S IPS Kockums

MS

EK

Q1 '16 Q1 '17

15

41%

14%

16%

24%

2% 3%Regional distribution

SwedenRoEAmericasAsiaAfricaAustralia etc

Sales growth mainly driven by the Gripen programmes, GlobalEye and the submarine A26

Second order for GlobalEye received in January

Sales in Combitech strong

3%

-8%

-1%37%

16%

7%

OPERATING INCOME

67

40

98

53

34

8090 88

156

70

35

0

20

40

60

80

100

120

140

160

180

Aeron. Dyn Surveillance S&S IPS Kockums

MS

EK

Q1 '16 Q1 '17

55

16

Dynamics strong margin recovery on the back of strong order intake

Operating income affected by investments in T-X-program

Orders for GlobalEye positive impact on margin in Support and Services

4.1 4.8 3.7 9.2 4.9 7.6 8.9 6.1 6.9 5.4 5.23.1EBIT-margin

CASH FLOWJan-Mar 2017 MSEKCash flow from operating activities before changes in working capital

786

Change in working capital 671Investing activities -471Operational cash flow 986

Tax and other financial items -84Acquisitions and sale ofsubsidiaries and other financialassets

-5

Free cash flow 897

17

0

200

400

600

800

1 000

1 200

1 400

1 600

Cash flowfrom operating activitiesbeforechanges in working capital

Change in workingcapital

Investingactivities

Tax and otherfinancial items

Acquisitionsand sale ofsubsidiariesand otherfinancial assets

FINANCIAL POSITION31 March, 2017 MSEK

Net liquidity (+) / Net debt (-), 31 December 2016 -1,836

Cash flow from operating activities 1,373

Change in net pension obligation 49

Net investments -471

Currency impact and unrealised results from financial investment 12

Net liquidity (+) / Net debt (-), 31 March 2017 -873

Net pension obligation, 31 March 2017 2,375

Total interest-bearing assets, 31 March 2017 -580

Liquidity 922

Equity/assets ratio, 31 March 2017 33.3

18

FOCUS 2017

• Focus on execution of large projects – projectmanagement

• Build order backlog in selected areas

• Drive efficiency improvements throughout the organisation‒ Functional and operational excellence

19

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