INTERIM REPORT. Anders Linder Håkan Buskhe Head of Surface Radars President and CEO 13 May April 2015
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1 INTERIM REPORT JANUARY-MARCH SURFACE RADARS 2015 Anders Linder Håkan Buskhe Head of Surface Radars President and CEO 13 May April 2015
2 RADAR IS EXPERIENCE DELIVERED AS HW AND SW COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 2 Use cases Air Surveillance Air Defence Weapon Locating Sense & Warn Naval Warfare 60 years and 3,000 radars
3 3 SPECIFIC CUSTOMER USE CASES GIRAFFE 8A VS STEALTH Requires AESA radar with capability to detect extremely small targets
4 4 USE OF GIRAFFE AMB IN THEATRE
5 5 LITTORAL COMBAT SHIPS
6 6 PROTECTING THE BORDER 24/7
7 7 MARKET SIZE SURFACE RADARS Different external global market surveys are showing similar projections of the radar market in the years to come Growth, although moderate (<5%) Total military radar market estimated at Programs for new systems ~80 BSEK per year After sales, spares, services ~40 BSEK per year Of those ~120 BSEK per year, 47% in Surface segment 34 BSEK in the Ground segment, where 18 BSEK seen as addressable by us 23 BSEK in the Naval segment, where 6 BSEK seen as addressable by us Total yearly addressable market 24 BSEK
8 INDUSTRIAL STRATEGY VS. TRADITIONAL DEFENCE INDUSTRY LOGIC COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 8 Getting ahead by internally funded investments in key R&D Ensuring critical R&D mass and technology re-use in central site Breaking the development cost curve by taking the best ideas from commercial industries Using the same technology in many different applications
9 9 BROADENED SERVICE SCOPE Changes in customer behaviour Acquires fewer systems but requires higher operational availability Requires longer life time of their system Changes in operational requirement during life time Total cost of ownership is an important evaluation criteria Accepts dependency of industry Our offer Evolutionary upgrades of our products mainly via software update programs Access to Saab spare part pool and 24/7 Helpdesk Local Saab support engineers and project managers Up to date IT solutions for effective support and maintenance
10 10 GAME CHANGER FOR SURFACE RADARS
11 11 EXTENDED PORTFOLIO LAND X-band for short range applications GIRAFFE 1X C-band for medium range applications ARTHUR GIRAFFE AMB S-band for medium/long range applications GIRAFFE 4A GIRAFFE 8A
12 12 EXTENDED PORTFOLIO NAVAL
13 13 PRODUCT STATUS Production of the first Giraffe 4A system to an undisclosed customer is ongoing at Saab in Gothenburg, Sweden Several performance tests carried out results meet or exceed expected performance Awarded best innovation in Defence 2015 (Aviation Week Laureates Award)
14 14 COMPETITION Ground based air defence Product: GIRAFFE 4A, GIRAFFE AMB, GIRAFFE 1X Competition: Thales, Northrop Grumman, ELTA, Lockheed-Martin, Rheinmetall Weapon locating Product: ARTHUR, GIRAFFE 4A Competition: ELTA, Lockheed-Martin, low-end: Chinese Air surveillance Product: GIRAFFE 8A, GIRAFFE 4A, GIRAFFE AMB Competition: Raytheon, Thales + many older products Naval warfare Product: SEA GIRAFFE 4A, SEA GIRAFFE AMB, SEA GIRAFFE 1X Competition: Thales, CEA, future US radar
15 15 UNIQUE SELLING POINTS More decision time through earlier detection, tracking and classification More difficult to jam Smaller footprint Anti-stealth performance Availability: best in class
16 16 SAAB S US RADAR STRATEGY US Programs/Prospects Surface Radar Portfolio SE Americanized Saab Portfolio G/ATOR program 3DELRR program Surface Radar Technology US S3 Portfolio Growth Through Partnership to Enable American Saab Products
17 17 INDIRECT MARKET CHANNELS Strong position with missile and weapons providers Key Accounts in our marketing efforts Excellent reviews so far and part of many new prime bids Examples: Diehl/DBD, MBDA, Rheinmetall, Kongsberg, Raytheon, Denel
18 18 SUMMARY Saab Surface Radars are ahead in getting ready for a modern radar industry landscape Business innovation is about being the first to do things differently Modular, common technology across all Saab radars Proven export skills for >40 years Service business up for major growth
19
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