INDUSTRIAL CO-OPERATION – a tool for industrial growth and economical development Peter Sjöström March Saab AB Global Value Chain Seminar, Halifax Canada

A PARTNERSHIP OF EQUALS AIMING AT: Enhancing national defence technology industrial base Promoting micro-economic development Contributing to macro-economic advancements

MEETING REQUIREMENTS - EXCEEDING EXPECTATIONS Saab’s offset and industrial co-operation programmes are designed to: Provide up to 100% or more of the sales contract value Meet national policies and laws Generate real value through business-driven initiatives Offer a transparent, flexible and adaptable business model

Economic Effect of Different Approaches Traditional approach Forced or subsidized business Fully controlled by defence supplier Dies once obligation is fulfilled Limited national economic contribution

Economic Effect of Different Approaches The market oriented SAAB approach Utilizes business interest within the industrial network SAAB can operate as commercial risk sharing partner to the projects Once initiated projects grow on their own commercial merit

Economic Effect of Different Approaches GDP = Gross Domestic Product Long term National Economic contribution State budget contribution (tax revenues) Industrial expansion GDP growth Additional jobs

REAL JOBS, REAL INVESTMENTS AND THE KNOWLEDGE TO CHANGE THE FUTURE Genuine investments creating real job opportunities Transfer of unique know-how and state-of-the-art technology to local industry

WORKING THROUGH THE STRONG INVESTOR AB NETWORK

TEN THOUSAND NEW JOBS DUE TO FIGHTER PROGRAM IN HUNGARY Commitment to deliver 110% value of the lease/purchase cost of 14 Gripen aircraft June 2009, seven years ahead of schedule, all obligations were fulfilled Investments made by Electrolux, Haldex, Halton Clean Air, Ericsson, Astra Zeneca To date, more than new jobs have been created as a result of Saab’s commitment Electrolux production plants – represent 5% of HU total industrial export

THE FIGHTER PROGRAM A CATALYST FOR GROWTH IN SOUTH AFRICA Investments focusing on projects with real strategic and commercial potential Formation of Saab South Africa to support the transformation and development of the SA defence industry Industrial participation projects such as the build-up of a Flight Test Centre and manufacturing capabilities More than one hundred industrial co-operation projects have been implemented

WITH SAAB, BUY NEVER MEANS BYE Our commitment is always long-term and focusing on creating business opportunities that go beyond traditional offset obligations: Spinouts and joint ventures together with partners Product development programmes in close co-operation with local industry Establishing Saab companies on local markets Supporting social programmes on local markets

MEET YOUR PARTNER’S PARTNERS Two centuries on the global arena means that we can provide the products, the business models and the support you need to meet your challenges and fulfill your visions Building the future together – our industrial co- operation programmes provide access to knowledge and technologies that will have a significant influence on the future you’re building Trustworthiness is our industrial heritage, a tradition characterized by strong commitments, honesty and the ambition to bring benefits to both our customers and ourselves

SWEDEN HAS A STRONG INDUSTRIAL BASE

Industrial Cooperation in Canada Due to the HCM FELEX Program Saab AB has built up an MRO capability in Halifax with the aim to grow further (GVC) Cooperation with Lockheed Martin Canada leading to co-development of 9LV CANACCS Command & Control system Contributing to Canadian industries like ammunition production at GD-OTS.

Industrial Cooperation in Canada Saab AB and ABB are long-term partners and also parts of the Investor Holding group Cooperation with ABB Canada within the HCM FELEX Program is bringing more business into Canada (GVC) Saab / ABB relationship could bring new business to Dorval, Quebec, for Canadian CCV program; with aim to contribute to overall GVC

Industrial Cooperation in Canada SAAB and IBM are team members on the HCM project. Successful relations have led to exploration of a global partnership. Saab & IBM are working towards a strong, growing business relationship in Canada, and globally, where there was a relatively insignificant relationship prior to the HCM project. In part, the industrial cooperation relationship between SAAB and IBM helped support a significant R&D contribution by IBM to the University of Toronto Scinet Consortium to build Canada’s most powerful and energy-efficient supercomputer. The computer is being used for ground-breaking research in aerospace, astrophysics, bioinformatics, chemical physics, climate change prediction, computational biology and medical imaging and as part of the global ATLAS project, which is investigating the forces that govern the universe.

HOW CAN MY COMPANY BENEFIT FROM SAAB IRBs? Saab AB is continually seeking out innovative companies in Canada as IRB recipients Focus on Small Medium Enterprise to large corporations in all regions across Canada Encourage companies to demonstrate corporate capabilities during one-to-one discussions Looking for companies to offer innovative ways to generate Canadian IRBs within Saab’s Global Value Chain Focus on providing Saab IC with a strong value proposition