Saab Ab Class B · OMXSTO:SAAB_B
Saab Ab Class B — Investor Day (May 2025)
71 slides from Saab Ab Class B's investor day presentation, May 26, 2025
Slide 1: Capital Markets Day 2025
Capital Markets Day 2025 Karlskoga, Sweden 26-27 May
Slide 2: Welcome
Welcome 08:30 Strategically positioned to capture market growth 09:15 Growth, investments & value creation 09:40 Q&A 10:00 Break Micael Johansson Anna Wijkander President and CEO CFO 10:20 Dynamics: Strategic deep dive 10:45 Surveillance: Strategic deep dive 11:10 Group Q&A 11:30 Lunch 12:00 Site to
Slide 3: Strategically positioned to capture market growth
Strategically positioned to capture market growth Micael Johansson, President & CEO
Slide 4: Changing geopolitics
Changing geopolitics Emerging world order New cooperations New priorities ➜ Multi-polar world ➜ Europe larger role ➜ Security centre stage ➜ US vs China ➜ Sweden and Finland in NATO ➜ Control of technologies and supply resources ➜ Russian aggression ➜ Purpose-driven new alliances ➜ European defence
Slide 5: Increasing defence spending
Increasing defence spending NATO Europe defence procurement budgets USD million, % defence budgeted spending of GDP Significant increase ahead 375 000 Moving to 3.5% of GDP implies a x3 increase, compared to the increase seen after the invasion Key uncertainties 300 000 Timing and size of European 3
Slide 6: Several long-term drivers of growth in Europe
Several long-term drivers of growth in Europe A rearming of Europe Supporting Ukraine Less US capabilities in Europe ➜ Triggered 2014, ➜ Triggered by invasion 2022 ➜ Relieve US forces (volume) accelerated 2022 ➜ Support to win ➜ Procure strategic systems ➜ Scale up forces and stock piles ➜ Long-term
Slide 7: A fast growing defence company
A fast growing defence company 64 24 % 189 SEK bn in sales, 2024 Sales Growth, 2024 SEK bn in order backlog 25,400 3,000 30 Employees New employees, 2024 Countries with operations Aeronautics Dynamics Surveillance Kockums Key products Key products Key products Key Products Gripen E/F fighter system,
Slide 8: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 9: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 10: Track record of growth and deliveries
Track record of growth and deliveries Sales in SEK billion, and Sales CAGR % Russia’s invasion of Ukraine +23% +8% 23.5 27.2 28.6 31.7 33.2 35.4 35.4 39.2 42.0 51.6 63.8 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 10
Slide 11: Investing and building capacity
Investing and building capacity Aeronautics Surveillance Gripen production capacity Ramp-up in US and Sweden T-7 Redhawk ramp-up Production facility in UK Fareham Production facility in Finland Tammerfors Dynamics Kockums Ground Combat and Missile Landskrona expansion Production capacity Expanding p
Slide 12: Scaling production
Scaling production Industrialisation and automation Resilient supply chains Supplier by country, 2024, % of spend Sweden UK US Germany Canada Other ➜ Focus on high demand products, such as ground ➜ Close supplier coordination to identify risks and combat ammunition, missiles and live training indust
Slide 13: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 14: Cutting edge capabilities in all domains
Cutting edge capabilities in all domains Fighter Advanced Command Underwater Sensors Systems Weapon Systems and Control Systems 14
Slide 15: Outperforming in key markets and an attractive outlook
Outperforming in key markets and an attractive outlook Historically: Outpacing our key markets Future: Defence spending increases CAGR 2023-2024* Saab sales growth CAGR 2023-2024* Significant defence spending discussed, moving European European NATO NATO beyond 3% GDP, equivalent CAGR 8-12% in spend
Slide 16: Partnering to win
Partnering to win Differentiating capability and market access Three levels: nations, defence organisations, industry … and future partners 16
Slide 17: M&A to build on strategic position
M&A to build on strategic position Framework Update on acquired companies and partnerships Clear strategic fit, strengthening our core areas Fully integrated part of our San Diego Innovation Hub; Skapa Enhancement of our capabilities and Established as a concept development center for UAV technologi
Slide 18: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 19: Accelerating Future Capabilities
Accelerating Future Capabilities Focus areas Examples on progress Collaborative combat aircraft Significant increase in R&D spend Air Autonomy concept under development targeting Future Capabilities Swarming drone concept AI-based C2 demonstrated (Gnadd) ~2.5 BSEK Distributed Compact electronic warf
Slide 20: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 21: A fast growing tech company through an empowered workforce
A fast growing tech company through an empowered workforce Growing our Strong technical workforce competence ~3,000 Net new employees in 2024 (FTE) ~11,500 Engineeers Strong culture, growth mindset 20% increase in strategic Largest employer of engineers Drive change countries outside Sweden in Swede
Slide 22: Strategic direction
Strategic direction Keeping people and society safe Scaling up Focused market Accelerating Future Empowered workforce • Deliver on customer expansion Capabilities • Retain and attract commitments • Portfolio focused on Core • Focused innovation • Onboarding, training • Capacity ramp-up Areas • R&D I
Slide 23: Accelerating a digital transformation
Accelerating a digital transformation Customer value Saab solution Significant investments across all parts To see, understand and Ready when needed Customer Tech & Operations Organisation Security & act ➜ faster and more Short lead-time from need to delivery & Offering Architecture & Process & Cult
Slide 24: Sustainable business
Sustainable business Ambition to be a sustainability leader within the defence sector 25
Slide 25: Priorities going forward
Priorities going forward Deliver on customer commitments by increasing efficiency and capacity to meet increased demand Accelerate Future Capabilities by increased investments in joint innovation, and leveraging SW, data, AI and external technology supply Transform the way we work for efficiency, sc
Slide 26: Considerations on mid-term targets
Considerations on mid-term targets ➜ We see a sustained growth potential backed by strong market demand ➜ Saab growth story not limited to 2027, will continue beyond, and we have a strong track record of capturing significant growth ➜ Our ongoing investments are aiming at enabling high future growth
Slide 27: Well-positioned for further growth
Well-positioned for further growth 18% CAGR Strong growth not limited Organic to 2027, will continue beyond sales growth EBIT growth > sales growth Sustained profitability Operating improvement income (EBIT) > 60% accumulated Continued positive cash Cash flow long-term conversion 28
Slide 28: Thank you!
Thank you! Material related to the CMD will be uploaded on saab.com/cmd 29
Slide 29: Growth, investments & value creation
Growth, investments & value creation Anna Wijkander CFO
Slide 30: Tracking towards our medium-term targets
Tracking towards our medium-term targets Medium-term targets 2023-2027 Growth Profitability Cash flow Organic Cumulative for ~18% EBIT > sales growth >60% the 5-year period Organic sales Operating income growth higher Cash conversion % growth (CAGR) than organic sales growth Outlook 2025 • Organic s
Slide 31: Our business mix is shifting
Our business mix is shifting Order backlog per Business Area Sales contribution BSEK per Business Area 200 180 12% 14% Kockums 160 140 36% 35% Surveillance 120 100 80 20% 24% Dynamics 60 40 32% Aeronautics 27% 20 0 2022 2023 2024 Q1 2022 Q1 2025 2025 (R12) 32 32
Slide 32: Steady progress on scale and efficiency
Steady progress on scale and efficiency Profitability model Progress made Scale effects Gross margin development Sales per FTE and FTE growth, MSEK & % ➜ Volumes from organic growth and M&A 13.5% 13.6% ➜ Scale effects on OPEX growth (excl. R&D) 21.8% 21.9% 13.0% 21.4% ➜ Improve utilisation of produc
Slide 33: Ramp up in R&D expenses to push technical and product development
Ramp up in R&D expenses to push technical and product development Internally & externally funded R&D Internally funded R&D expenses BSEK 5-6 10.5 8.9 2.9 2.7 2.7 7.6 2.0 1.8 2.0 1.8 7.8 6.9 4.2% 4.0% 4.2% 4.5% 5.8 2022 2023 2024 2022 2023 2024 Q1 2025 2027E (R12) Internally Externally % of sales SEK
Slide 34: Dynamics and Surveillance main drivers of increased investments
Dynamics and Surveillance main drivers of increased investments Group investment distribution (excl. R&D) Capex initiatives for future growth BSEK ~6.0 Dynamics 4.3 65% + Surveillance 3.0 Factories Offices Automation 1.7 Other Other Capacity Replacement 2022 2023 2024 Est. Average 25-27 4.3% 5.8% 6.
Slide 35: Cash generating business enables investments for future growth
Cash generating business enables investments for future growth Accumulated cash flow 2023 - Q1 2025, BSEK Capitalised R&D -1.7 15.5 5.8 -1.2 CAPEX 11.4 -8.6 5.6 EBIT D&A & other Change in Cash flow before Investments OCF non-cash items working capital investments 36
Slide 36: Capital efficiency
Capital efficiency Decreasing NWC to sales trend Drivers of capital efficiency despite product capacity ramp-up improvements Net working capital (NWC), BSEK Terms & conditions to customers and suppliers 4.5 4.4 4.2 4.0 10.7% Inventory management 7.8% 6.6% 6.8% Project execution Training and accounta
Slide 37: Leveraging our financial position to fuel further growth and shareholder value
Leveraging our financial position to fuel further growth and shareholder value Solid financial position Shareholder value Growth investments BBB+ • Capex in capacity for future growth • R&D in future capabilities for improved competitiveness Investment grade rating • Capex for digitalisation and ind
Slide 38: Thank you!
Thank you! Material related to the CMD will be uploaded on saab.com/cmd 39
Slide 39: Strategic deep dive Dynamics
Strategic deep dive Dynamics Görgen Johansson, Head of Business Area Dynamics
Slide 40: Dynamics in numbers
Dynamics in numbers 15 84 SEK bn in sales, 2024 SEK bn in order backlog 23% 31% Share of Saab sales, 2024 Sales growth, 2024 18% 740 EBIT margin, 2024 New employees, 2024 4,465 Employees 41
Slide 41: Market-leading product portfolio
Market-leading product portfolio Ground Combat Missile Systems Barracuda Training & Simulation Tactical Support Solutions World leader in Infantry National sovereignty World leader in Advanced World leader in Live Training Integration and Support Partner Support Weapons enhanced by European Signatur
Slide 42: Strategy for market leadership
Strategy for market leadership ➜ #1 Strengthen our leading position in markets where we already are market leading in Infantry Support Weapons, Live Training and Advanced Camouflage ➜ Partnership to be #1 Future Capabilities Sustain market leadership in the missile domain Investing in Future Capabil
Slide 43: Our foundation for competitive advantage
Our foundation for competitive advantage End user Innovation People 44
Slide 44: Strategic direction forward
Strategic direction forward Keeping people and society safe Scaling up Focused market Accelerating Future Empowered • Deliver on customer expansion Capabilities workforce commitments • Portfolio focused on Core • Focused innovation • Retain and attract • Capacity ramp-up Areas • R&D Investments • On
Slide 45: Scaling up Ground Combat to meet record customer demand
Scaling up Ground Combat to meet record customer demand 4x ➜ Record customer demand: Aim to 4x production capability by the end of 2025 (compared to the pre-war) ➜ Rapid capacity expansion: 40+ construction projects in progress ➜ New ways of working: Scaling up goes beyond infrastructure – also inve
Slide 46: Björkborn – a key production facility site for scaling up production volumes
Björkborn – a key production facility site for scaling up production volumes Circles represents an ongoing facility project Factories, warehouses, office spaces and support facilities. One of several key production and development sites for Ground Combat and Missile Systems Strategically located clo
Slide 47: Ability to ramp up Missile Systems capacity through supply chain and partners
Ability to ramp up Missile Systems capacity through supply chain and partners ➜ Capital-efficient expansion by optimizing and repurposing existing industrial assets to rapidly meet increased demand ➜ Rapid competence build-up through targeted recruitment and retention of critical skills ➜ End-to-end
Slide 48: Expanding in Grayling to strengthen market presence and operational capacity
Expanding in Grayling to strengthen market presence and operational capacity Final assembly, integration of shoulder-launched weapons and precision fire systems Part of Saab’s growing U.S. industrial footprint – 10th facility in the U.S. Located near Camp Grayling for proximity to training operation
Slide 49: Future capabilities Loitering Munition
Future capabilities Loitering Munition Future Capabilities Creating a full product family in the Loitering Munition domain Part of broader Future Capabilities portfolio Builds on strong relationships with existing customers Development driven by close operational dialogue and real user needs 51
Slide 50: Sustainable business Ammunition Casing
Sustainable business Ammunition Casing >50% reduction of lead 25% less raw material times through multiple used per product raw material sources = 8% Increased resource-efficiency = and reduced cost Improved supply chain resilience 33% shorter transport distances 50% reduction in scrap = cost reduct
Slide 51: Strong outlook for the Land Domain
Strong outlook for the Land Domain Strategic priority Land remains central in national defence planning Sustained demand Expected for at least next 10 years Saab is ready Proven portfolio and momentum to scale up 54
Slide 52: Thank you!
Thank you! Material related to the CMD will be uploaded on saab.com/cmd 55
Slide 53: Strategic deep dive Surveillance
Strategic deep dive Surveillance Carl-Johan Bergholm Head of Business Area Surveillance
Slide 54: Surveillance in brief
Surveillance in brief 22 54 1,000 7,400 Asia 15% Oceania 10% Sweden 29% SEK bn in sales, 2024 SEK bn in order backlog New employees, 2024 Employees Sales 2024 by region 34% 19% 9% Americas 13% Share of Group sales, 2024 Sales growth 2024 EBIT margin, 2024 Europe 33% Business units Airborne Early Sur
Slide 55: Recent Surveillance orders and contracts
new UK ada production b signs support contract with South Saab receives order from Sweden for Giraffe 1X surface radar ‘Saab has signed a letter of intent cians Saab signs contract with Swedish FMV Saab delivers British Army's next for a third GlobalEye generation artillery hunting radars ‘Saab’s ne
Slide 56: Three business dimensions for growth
Three business dimensions for growth Large System A Scalable Innovative Integration Projects Product Offering Support Solutions Long term & margin stability Efficiency & volume Increased availability & volume 59
Slide 57: Preparing for a ramp up of GlobalEye
Large system integration Preparing for a ramp up of GlobalEye Capable and modern state-of-the art technology Features deep vertical integration sensor solutions Significant interest in Europe and NATO both short term and beyond 2030+ The only AEW&C capability currently in production Address a signif
Slide 58: Global expansion in Naval Combat Systems
Large system integration projects Global expansion in Naval Combat Systems F123 German frigates Colombian Navy’s new frigates ➜ 9LV Combat Management ➜ 9LV Combat Management and Fire Control System ➜ Sea Giraffe 4A radar ➜ Sea Giraffe 4A radar ➜ Sea Giraffe 1X radar ➜ Ceros 200 radar and Optronic ➜
Slide 59: Fighter Sensors and Avionics
Large system integration projects Fighter Sensors and Avionics Relevance in next generation fighter capabilities Contracted for modernization of German Eurofighters Proven and fully integrated into Gripen E/F Saab’s Arexis Electronic Warfare (EW) suite delivers crucial situational awareness. Whether
Slide 60: A scalable product offering
A scalable product offering ➜ A broad portfolio of scalable products with short order to delivery process ➜ Significant investments in capacity and delivery lead times to capture market demand Giraffe 1X UTAAS Sirius Compact Trackfire 3D multi-mission radar Sight and fire control Modular and scalabl
Slide 61: Giraffe 1X
Case: Giraffe 1X ➜ Small, lightweight high performing 3D radar In serial production ➜ Enables unique flexibility and redundancy in Ground Based Air Defence solutions Proven in operations ➜ Covers the entire search volume every second Global market footprint 100+ Delivered systems 180 Yearly capacity
Slide 62: Sirius Compact
Case: Sirius Compact ➜ Compact passive surveillance for tactical applications In serial production and ongoing deliveries ➜ Accurate Angle of Arrival measurements ➜ Platform agnostic Several customers contracted 600 Yearly capacity target 65
Slide 63: Increasing capacity to meet higher demand
Increasing capacity to meet higher demand Ongoing global uncertainty Capacity Yearly Giraffe 1X Giraffe 4A drives long-term defence investments capacity needs Significant investments in 2022-2024 targets 180 12 capacity to capture market demand UTAAS Arexis R&D 180 30 Scalable products Track Fire Gl
Slide 64: Leverage new investments for market expansion
Focused market expansion Leverage new investments for market expansion 67
Slide 65: Prepared for the future
Accelerating Future Capabilities Prepared for the future ➜ Real-time understanding for faster and more informed decisions ➜ Sensors everywhere, from drones and satellites to soldier mounted, real-time data gathering and sharing ➜ Artificial intelligence for threat identification, enemy movement pred
Slide 66: Legacy reloaded
Accelerating Future Capabilities Legacy reloaded ➜ Saab Counter-sUAS system ➜ Domain expertise and integration of existing HW and SW capabilities to counter the threats of tomorrow – from observation to action ➜ Rapid capability development in close cooperation with industry and end-user 69
Slide 67: The connected and integrated defence
Accelerating Future Capabilities The connected and integrated defence Integrated Air Missile Defence (IAMD) ➜ A layered and interconnected system of sensors, interceptors and command & control systems Our offering will lead the ➜ A vital component of European and NATO security, will grow in importan
Slide 68: Driving growth through accelerating continuous learning
< Empowered workforce Driving growth through accelerating continuous learning ~170 new managers since 2023 “To lead in change” ➜ A global learning experience for managers and project leaders ➜ Understanding strategic drives ~2,000 new employees since 2023 and enhanced growth mindset 71 71
Slide 69: Strategic priorities
Strategic priorities Lead System Customer deliveries Workforce R&D investments in Integrator and and meeting strong onboarding and future technologies strategic partnership demand upskilling with Sweden Role in EU/NATO, Global Capacity and Mitigating supply Digitalisation and market footprint and pr
Slide 70: Thank you!
Thank you! Material related to the CMD will be uploaded on saab.com/cmd 73
Slide 71: Site tour and product demonstration
Site tour and product demonstration 11:30 Lunch 12:00 Bus to production site-tour (from Stallet to Björkborn) • Bus 1 – Group 1A+ 1B (led by Merton Kaplan and Görgen Johansson) • Bus 2 – Group 2A+ 2B (led by Adam Solberg and Anna Wijkander) 13:25 Buses to product demonstration (from Björkborn to Saa