REGIONAL OPERATION REQUIRES GLOBAL COOPERATION

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1 REGIONAL OPERATION REQUIRES GLOBAL COOPERATION SAAB 340 & 2000 GLOBAL OPERATORS CONFERENCE 2016 GLASGOW, SCOTLAND Lars Brännström Vice President, Saab Support and Services Glasgow May 18, 2016

2 SAAB AB AND REGIONAL AIRCRAFT

3 3 AGENDA Development of Saab AB Saab AB views on Saab 340 & 2000 aircraft Summary

4 4 HIGHLIGHTS 2015 PROFITABLE GROWTH PERFOR- MANCE Record high order backlog; Gripen to Brazil, submarine A26 to Sweden and an Airborne Early Warning system to UAE* Sales growth of 16 per cent, with growth in all business areas Continued investments in T-X program** Focus on execution of large projects PORTFOLIO & PEOPLE Organisational change as of 1 January 2016: business area Security and Defence Solutions dissolved Performance management STRENGTHENED MARKET POSITION * United Arab Emirates ** Saab cooperates with Boeing in order to participate in the U.S. Air Force s upcoming procurement regarding trainer aircraft

5 NEW ORGANISATION AS OF 1 JANUARY 2016 COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 5 BOARD CEO *changes marked below with an apostrophe Saab Kockums* business unit, reporting directly to CEO MARKET AREAS GROUP FUNCTIONS BUSINESS AREAS Asia Pacific Aeronautics Europe, Middle East & Africa Latin America Nordic & Baltic Washington DC, USA Brasilia, Brazil London, United Kingdom Stockholm, Sweden Bangkok, Thailand Dynamics now including Training and Simulation from SDS* Electronic Defence Systems now including Traffic Management and Combat Systems and C4I Solutions from SDS* Industrial Products and Services North America Our headquarters Support and Services now including Critical Systems & Communication Solutions from SDS*

6 6 GRIPEN BRAZIL UPDATE Order of BSEK 39.3 from Brazil regarding 36 Gripen NG booked in 2015 Conclusion of the contract with Brazil on external stores for Gripen NG in December 2015 Industrial cooperation with Brazilian industry in areas such as R&D and transfer of technology important Brazilian engineers and technicians in Sweden for technology and knowledge sharing. 53 today and 25 more to come in April Deliveries planned

NEW AIRBORNE SWING ROLE SURVEILLANCE SYSTEM (SRSS) COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 7 Contract with United Arab Emirates (UAE) to expand and enhance airborne surveillance

7 NEW AIRBORNE SWING ROLE SURVEILLANCE SYSTEM (SRSS) COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 7 Contract with United Arab Emirates (UAE) to expand and enhance airborne surveillance capabilities New airborne Swing Role Surveillance System (SRSS) New version of the Saab Erieye radar system Platform - Global 6000 aircraft from Bombardier Order value approximately USD1.27 billion

8 SUPPORT AND SERVICES NEW ORGANISATION PER SUPPORT & SERVICES Jonas Hjelm / Deputy Lars Brännström STAFF Communication Anna Emanuelsson HR Helena Wäreby Security & Risk Mgmt Markus Küchler Commercial & Business Development Peter Hultin Finance & Opex Anders Lindgren AIRBORNE ISR Joakim Mevius GRIPEN SUPPORT Ellen Molin AVIATION SERVICES Torsten Öhman NETWORKS & PUBLIC SAFETY Jessica Öberg TACTICAL SOLUTIONS Axel Cavalli-Björkman MAINTENANCE PRODUCTION Lena Bergvin

9 FINANCIAL KEY DATA MSEK 2015 2014 Change, % Order bookings 81,175 22,602 259 Order backlog 113,834 60,128 89 Sales

9 9 FINANCIAL KEY DATA MSEK Change, % Order bookings 81,175 22, Order backlog 113,834 60, Sales 27,186 23, Operating income 1,900 1, Operating margin, % Net income 1,402 1, Free cash flow ,094

10 10 GOING FORWARD Product renewal Market focus Order intake Increase sales Increased profitability Improved cash flow

11 11 SAAB AB VIEWS ON SAAB 340 AND 2000 AIRCRAFT Strongly connected to the Saab brand We take pride in the aircraft No longer part in selling/leasing Provide complete after sales product offering including continued airworthiness support Military applications in the Saab product portfolio Moving towards GlobalEye but long term support commitment to Saab 340 and Saab 2000 platform

aircraft types is a wider spread to smaller operators in an increasing number of new countries New

12 12 SAAB AB VIEWS ON SAAB 340 & 2000 AIRCRAFT 300+ aircraft in commercial & military operations worldwide Aircraft age does not reflect remaining operational lifetime still many opportunities The trend of both aircraft types is a wider spread to smaller operators in an increasing number of new countries New market conditions new challenges and opportunities where cooperation is essential Business perspective needed

13 SAAB AB VIEWS ON SAAB 340 & 2000 AIRCRAFT - SUMMARY 13 The Saab 340 and Saab 2000 platform is and continues to be important for Saab and the Saab Brand The market conditions for the business has and will continue to change and adjustments are needed accordingly Close cooperation with operators, suppliers and other stakeholders is essential to secure many remaining years of operation Saab is fully committed to support the aircraft for many years based on healthy business relations with all involved stakeholders

14 REGIONAL OPERATION REQUIRES GLOBAL COOPERATION SAAB 340 & 2000 GLOBAL OPERATORS CONFERENCE 2016 GLASGOW, SCOTLAND Malin Svahn General Manager, Regional Aircraft Glasgow May 18, 2016

15 15 SAAB REGIONAL AIRCRAFT - AGENDA Business environment for the Saab 340 and Saab 2000 aircraft Conclusions and considerations Way forward

16 16 MISSION Secure long term support of the Saab 340 and Saab 2000 fleet Business perspective

17 BUSINESS ENVIRONMENT FOR SAAB 340 AND SAAB 2000 COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 17 Many factors affect the future of the Saab 340 & 2000 fleet Some we can control Some not Aging aircraft Operators Supplier support Cooperation opportunities SAAB Business perspective Authority requirements New business models Saab product offering Availability of technical competence New business opportunities Competition Changing market conditions for regional aviation Aircraft placement Alternative aircraft on the market Investment needs Passenger perceptions Environmental requirements

CONCLUSIONS AND CONSIDERATIONS WAY FORWARD COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 18 Continue to secure and develop right technical competence for the type certificate responsibiity

18 CONCLUSIONS AND CONSIDERATIONS WAY FORWARD COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 18 Continue to secure and develop right technical competence for the type certificate responsibiity assure continued airworthiness Continuous cost reduction activities Focus on our strengths identify new business opportunities and business models in partnership with other actors in other areas Joint understanding in the community concerning priorities and future availability of components and related business models for investments Cooperation, collaboration and communication mutual understanding of business

SECURE TECHNICAL COMPETENCE FOR CONTINUED AIRWORTHINESS COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 19 Saab is responsible for the type

organization required to perform and fulfil all required activities from the authorities An annual airworthiness subscription was introduced during

19 SECURE TECHNICAL COMPETENCE FOR CONTINUED AIRWORTHINESS COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 19 Saab is responsible for the type certificate of the Saab 340 and Saab 2000 For Saab this involves keeping a design organization consisting of appr 60 different competences Design organization required to perform and fulfil all required activities from the authorities An annual airworthiness subscription was introduced during 2015 to assure long term continued airworthiness The subscription covers the performance of all needed activities from Saab as the type certificate holder

20 22 ON-GOING COST REDUCTION ACTIVITIES Optimization of inventory levels and inventory space Improvements in internal work instructions including ways of working in the designorganization Usage of PMA alternatives and DER repairs analyzed and used when found appropriate Intensive work to improve relations with suppliers, change suppliers and renegotiate supplier contracts is ongoing

FOCUS ON OUR STRENGTHS - SAAB PRODUCT PORTFOLIO NOW AND FORWARD Saab holds a complete product portfolio for support of the Saab 340 and Saab 2000 aircraft Trend towards smaller operators in new

21 FOCUS ON OUR STRENGTHS - SAAB PRODUCT PORTFOLIO NOW AND FORWARD Saab holds a complete product portfolio for support of the Saab 340 and Saab 2000 aircraft Trend towards smaller operators in new countries and flight hour production slightly decreasing - adaption to changed market condition needed Focus on strengths increase technical support products to lower cost of operation for operators Saab ambition is to continue to keep a complete portfolio but part of the product offering will be in cooperation with partners Bramlands Thomas Global Worldwide Lufthansa Our aim - more cooperations and partnerships in many other areas to be able to offer alternative solutions to the market 23

PRODUCT RENEWAL AND RELATED INVESTMENTS Availability and reliability of certain components is always a challenge with an aging fleet COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 24 Saab is

22 PRODUCT RENEWAL AND RELATED INVESTMENTS Availability and reliability of certain components is always a challenge with an aging fleet COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 24 Saab is continously monitoring out of production components and components with reliability issues Very close communication with and support from all involved suppliers is essential in this work. Fleet priorities and business models for sharing involved costs needs to be discussed and agreed in the community

23 COLLABORATION, COMMUNICATION AND COOPERATION COMPANY RESTRICTED NOT EXPORT CONTROLLED NOT CLASSIFIED 25 Work proactively to understand crutial operator needs and find solutions together Supplier support and understanding of the business environment for the Saab 340 and Saab 2000 is essential Improve our ways of communicating results of different actions and initiatives ISC forum agreed to be used in a wider perspective to facilitate an improved communication and cooperation between operators and Saab More initatives welcome

24 26 SUMMARY Complete product offering from Saab Parts of the Saab portfolio to be adjusted to changing market conditions more partnerships foreseen Saab will focus on our strengths and seek partnerships and cooperation in other areas to secure long term support to the fleet Close cooperation with operators, suppliers and other stakeholders is essential to secure many remaining years of operation Saab is fully committed to support the aircraft for many years, based on healthy business relations with all involved stakeholders

26 SAAB REGIONAL AIRCRAFT SAAB 340 & 2000 GLOBAL OPERATORS CONFERENCE 2016 GLASGOW, SCOTLAND Per Lovatt VP Head of Sales and Marketing, Regional Aircraft

28 30 SAAB 340 MATURING GRACEFULLY Saab 340 is still a favorite amongst aircraft passengers and owners alike and remains one of the most costeffective and reliable aircraft in the 30 seater segment.

31 SAAB 340 48 Operators Worldwide 363 Aircraft 295 Million PAX (accumulated) Over 240

29 31 SAAB Operators Worldwide 363 Aircraft 295 Million PAX (accumulated) Over FH annually 9 brand new Saab 340 operators since 2014 SAAB 340 Dispatch Reliability

30 32 SAAB 2000 OUTNUMBERED BUT NEVER OUTPERFORMED The fastest commercial turboprop on the market combining unique capabilities with reliable performance and competitive total cost of operation.

33 SAAB 2000 10 Operators Worldwide 52 Aircraft 38,2 Million PAX (accumulated) Over

31 33 SAAB Operators Worldwide 52 Aircraft 38,2 Million PAX (accumulated) Over FH annually 2 new Saab 2000 operators since 2014 SAAB 2000 Dispatch Reliability

32 34 OUR CAPABILITIES YOUR NEEDS

33 35 Saab Regional Aircraft is your one stop shop for honest and innovative repair solutions. We offer the whole range from ad-hoc repairs to long term flight-hour based programs to suit your needs We offer a complete range of services for maintenance, inspection and overhaul for both Saab 340 and Saab 2000 at line and base level, maintaining the long term value and reliability of your aircraft OUR SERVICE OFFERING Repair & Overhau Aircraft Maintenance Maintenance & Repair

34 36 OUR SERVICE OFFERING Saab Regional Aircraft maintains the largest inventory of Saab 340 and Saab 2000 spare parts in the world. Our highly appreciated AOG service ensures 24/7 availability to support your needs Part Exchange Service AOG Support Supply & Logistics Spares

35 37 Saab Regional Aircraft utilize over 80 years of aviation expertise in our day to day technical support operation. OUR SERVICE OFFERING Our service engineers are always on standby to provide expertise and knowhow, supporting your needs Technicians on Site Technica Services Operational & Technical Support

36 38 Saab Regional Aircraft combine our unique inhouse expertise with industry leading partners around the world to provide the most cost effective and innovative technical solutions to any customer needs OUR SERVICE OFFERING Modifications

37 39 With over 155 years of combined experience of the Saab 340 and Saab 2000 aircraft, our training team transfer unique and valuable knowledge to your organization OUR SERVICE OFFERING Training Pilot Training

38 40 THE TEAM EASA Part 147, B1 and B2 ratings For Saab 340 and Saab 2000 Theoretical training Practical Training NEW! Established full time Instructors/Examiners + 2 part time instructors ~155 years of experience from design, testing, production, maintenance and training ~240 students/~25 customers/~30 courses per year ~60% at Saab, ~40% on-site/customer base

39 41 SAAB 340/2000 COURSES Type/Initial Courses (i.a.w EASA Part 147 and other req.) Engine Run Courses (practical) Brush-Up/Recurrent Courses Familiarization Courses Systems/Customized Courses Pilot Systems/Recurrent Courses

40 42 INCREASE AVAILABILITY & REDUCE PRICES Customized Courses Set dates At Linköping (EASA Part-147) In the U.S.A Special Conference Offers (When you sign up before 10th of June)

41 43 OUR CAPABILITIES YOUR NEEDS

Kjell Johnsson. SVP & Site Manager Deputy Head of Aeronautics Saab AB

Kjell Johnsson. SVP & Site Manager Deputy Head of Aeronautics Saab AB Kjell Johnsson SVP & Site Manager Deputy Head of Aeronautics Saab AB WORLDWIDE PRESENCE Local presence in 33 countries Customers in 100 countries 2013 Geographic markets, % Market segments, % 2013 SALES: