Saab

Strategy, Business Model and Value Chain

Business Model

Saab's global operations span across continents, with a presence in key markets and emerging regions. Leveraging decades of expertise in defence, security, and advanced technology, Saab offers innovative solutions tailored to the specific needs of each market. From aerospace to underwater defence, Saab's global footprint ensures that we remain at the forefront of technological advancements, collaborating closely with governments, industries, and defence forces to meet their security challenges.

Core Areas and Value Proposition

Saab has defined five core areas where the company has a strong market position and a leading product portfolio:

Fighter Systems: Saab's latest fighter version, the Gripen E, is certified for military use by both the Swedish and Brazilian Air Forces. The E-series has several new features including cutting-edge sensors, enhanced weapon capability and electronic jammer pods.

Advanced Weapon Systems: The area holds products ranging from ground combat support weapons to missiles and training systems. Saab's Ground Combat systems hold an undisputed market leading position.

Sensors: Saab is a world-leading supplier of sensors, radar technology and electronic warfare solutions. The sensor portfolio comprises systems such as the Giraffe radar family and the GlobalEye AEW&C system.

Command and Control Systems: Saab provides complete command and control solutions for land, air and naval use, with a particularly strong position within the naval domain.

Underwater Systems: Saab is a leading provider of naval systems primarily to the Swedish Navy. The offer ranges from surface vessels with stealth characteristics to advanced conventional submarines, autonomous underwater systems and combat boats.

Strategic Markets

Saab operates in over 100 countries worldwide. In addition to Sweden, Saab is focusing on the U.S., the U.K., Germany and Australia as the main platforms for future growth. In these selected strategic markets, Saab sees opportunities for further growth in niches and technology areas where Saab has a strong position such as sensors, underwater systems and command and control systems.

Value Chain

Saab serves customers in over 100 countries and operates in more than 30 countries. Research and development is concentrated in Sweden with employees in Europe, the U.S., Australia and South Africa. The company has 24,500 employees globally with operations spanning across continents.

Material Impacts, Risks and Opportunities

Sustainability Strategy Based on Materiality Assessment

The strategy is based on an update of the double materiality assessment (DMA) and reflects increased stakeholder expectations from the financial market, our employees, our customers and legislators.

Three Strategic Focus Areas

Saab's sustainability strategy is built on three pillars, with prioritised areas within each:

1) Resilient and safe societies

• Business and Human Rights: Saab has an industry-leading Human Rights Programme
• Anti-Corruption: Saab has an industry-leading anti-bribery and corruption programme
• Information Security: Saab has a defined, well-functioning, proactive and systematic approach to information security
• Export Compliance: Saab will remain a leader in export control through robust rules, processes and training

2) Green and social transition

• Climate Impact: Reduce emissions by 42% (Scope 1 & 2) (compared to 2020), Reduce emissions by 25% (Scope 3) (compared to 2020), Net zero emissions by year 2050
• Substances of Concern: Tools deployed for efficient handling of product life cycle data, Define and set target to minimise the use of "Target substances"
• Circular Economy: Operate with circular industrial processes and develop circular products in line with definitions from the EU Circular Economy Action Plan (EU CEAP)
• Occupational Health and Safety: Reduce number of work-related accidents, measured by decreased TRIFR by 25% (compared to 2024), Improve employees experienced work life balance and reach benchmark top 25th percentile (8.3)

3) Innovation and partnerships

• Diversity and Inclusion: At least 30% women employees, At least 35% women managers
• Sustainable Innovation: Design for sustainability is established in product development throughout Saab. Sustainable innovation contributes to increased competitiveness and operational value
• Industrial Cooperation and Partnership: A significant part of our industrial cooperation activities are within the definition of sustainability. Partnerships with external actors contribute to Saab's sustainability commitments and strategy

Sustainability is integrated through-out the Annual Report. Pages 66-145 describe Saab's sustainability work in greater detail and comprise the statutory Sustainability Report. We are publishing our first Sustainability Report inspired by the European Sustainability Reporting Standards (ESRS).

Climate Targets

Scope 1 & 2 Emissions

• Target: Reduce emissions by 42% (Scope 1 & 2) compared to 2020 baseline

Scope 3 Emissions

• Target: Reduce emissions by 25% (Scope 3) compared to 2020 baseline

Long-term Target

• Net zero emissions by year 2050
• Saab becomes the first major defence company to receive approval for its 2050 greenhouse gas emission targets by the Science Based Targets initiative

Substances of Concern

Targets and Actions

• Tools deployed for efficient handling of product life cycle data
• Define and set target to minimise the use of "Target substances" (based on Product Compliance Programme outcome)
• Challenge to meet the targets in Scope 3 - use of products. Dependency on availability of Sustainable Aviation Fuel
• Phase out of substances of concern and substances of very high concern

Progress were made within "Substances of concern" however we did not accomplish internal targets. Saab will further focus on these areas in 2025.

Circular Economy Targets

• Operate with circular industrial processes and develop circular products in line with definitions from the EU Circular Economy Action Plan (EU CEAP)

Workforce-Related Targets

Diversity and Inclusion Targets

• At least 30% women employees
• At least 35% women managers
• Incorporation of Diversity and Inclusion target in the Performance Share Plan

Learning and Development

• Saab establshed a target of 40 learning hours per employee per year

Occupational Health and Safety

• Reduce number of work-related accidents, measured by decreased TRIFR by 25% (compared to 2024)
• Improve employees experienced work life balance and reach benchmark top 25th percentile (8.3)

Progress Update

Progress were made however we did not accomplish internal targets on OHS-targets and share of women managers. Saab will further focus on these areas in 2025.

Employee Characteristics

Total Workforce

• 24,500 employees globally as of 2024
• Nearly 3,000 new employees recruited in 2024 (13% increase)
• 24% of Saab's new employees were located in markets outside of Sweden

Geographic Distribution

• Sweden: 19,612 employees
• United States: 1,041 employees
• Australia: 1,025 employees
• United Kingdom: 520 employees
• Germany: 470 employees
• South Africa: 418 employees
• Finland: 265 employees
• Denmark: 254 employees
• UAE: 168 employees
• Brazil: 147 employees
• Switzerland: 121 employees
• Czech Republic: 78 employees
• Netherlands: 60 employees
• Poland: 42 employees
• Norway: 38 employees
• Singapore: 30 employees
• South Korea: 23 employees
• Other: 211 employees

R&D Workforce

• 11,700 employees engaged in R&D

Diversity Metrics

Gender Distribution

• Women: 26%
• Men: 74%

Diversity Targets

• At least 30% women employees
• At least 35% women managers

Progress

Saab achieved internal targets for share of women employees but did not accomplish internal targets on share of women managers. Saab will further focus on these areas in 2025.

Training and Skills Development

Learning Target

• Saab established a target of 40 learning hours per employee per year

Development Programs

During the year, Saab expanded its people development, upskilling and learning platforms through its CareerHub, promoting continuous learning and internal mobility within the Group. The Saab "gig" is one such programme which connects talents with opportunities to leverage their experiences and skills in a new competence area or division.

People Strategy Focus Areas

Saab's people strategy builds on four pillars:

• Securing future workforce, leaders and competences
• Transforming the way we work, enabling improved performance and efficiency
• Accelerating continuous learning
• Creating the best people experience

Health and Safety Metrics

Occupational Health and Safety Targets

• Reduce number of work-related accidents, measured by decreased TRIFR (Total Recordable Injury Frequency Rate) by 25% (compared to 2024)
• Improve employees experienced work life balance and reach benchmark top 25th percentile (8.3)

Progress

Progress were made however we did not accomplish internal targets on OHS-targets. Saab will further focus on these areas in 2025.

Work-Life Balance

Target

• Improve employees experienced work life balance and reach benchmark top 25th percentile (8.3)

Progress

Progress were made however we did not accomplish internal targets on work-life balance metrics. Saab will further focus on these areas in 2025.

Business Conduct and Corporate Culture

Values and Culture

At Saab, we are guided by three core values: Trust, Drive, and Expertise. These values reflect our commitment to reliability, driving change, working efficiently, and continuously learning and collaborating. They are the foundation of our ambition to be a preferred employer, creating a workplace where talent thrives and contributes to the shared success.

UN Global Compact Commitment

Saab is a dedicated member of UN Global Compact since 2011 and pledge to follow its ten principles on human rights, labour, environment and anti-corruption.

Business and Human Rights

Saab recognises the responsibility that comes with developing and selling advanced security and military equipment. Our commitment to respecting human rights involves every stage of our value chain, from sourcing materials and sub-systems, to delivering products and services. This commitment is rooted in our values and aligns with international frameworks, such as the UN Global Compact and the UN Guiding Principles on Business and Human Rights.

Responsible Sales Framework

Saab has implemented a robust Responsible Sales Policy together with a Group-wide framework that guides our due diligence process and ensures responsible decision-making throughout the sales cycle. This framework complements existing national export controls and bridges gaps between international legislations, allowing us to uphold international sustainability standards and national security interests.

Our Responsible Sales framework incorporates a risk screening process for all new business opportunities. High-risk opportunities, identified through a combination of factors, undergo a comprehensive due diligence process. This process involves identifying potential adverse impacts, evaluating potential mitigation strategies and making informed decisions about whether to proceed with the sale.

Anti-Corruption and Bribery

Industry-Leading Programme

Saab has an industry-leading anti-bribery and corruption programme. This is identified as one of the key areas within the "Resilient and safe societies" pillar of Saab's sustainability strategy.

Progress Achievement

Saab has reached its targets within all the topics within the strategic focus area "Resilient and safe societies", which includes the anti-corruption programme.