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GLOBAL OPERATORS CONFERENCE – GLASGOW 2016

SAAB 340 & 2000

GLOBAL OPERATORS CONFERENCE 2016

GLASGOW, SCOTLAND

REGIONAL OPERATION REQUIRES GLOBAL COOPERATION

Lars BrännströmVice President, Saab Support and Services

Glasgow May 18, 2016



GLOBAL OPERATORS CONFERENCE – GLASGOW 2016SAAB AB AND REGIONAL AIRCRAFT




AGENDA

• Development of Saab AB

• Saab AB views on Saab 340 & 2000 aircraft

• Summary

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HIGHLIGHTS 2015

• 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

• Organisational change as of 1 January 2016: business area Securityand Defence Solutions dissolved

• Performance management

PROFITABLE

GROWTH

PERFOR-

MANCE

PORTFOLIO

& PEOPLE

* United Arab Emirates

** Saab cooperates with Boeing in order to participate in the U.S. Air Force’s upcoming procurement regarding trainer aircraft

STRENGTHENED MARKET POSITION

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Brasilia,

Brazil

Washington DC,

USA

Stockholm,

Sweden

London,

United Kingdom

Bangkok,

Thailand

NEW ORGANISATION

AS OF 1 JANUARY 2016

Aeronautics

Support and Servicesnow including Critical Systems &

Communication Solutions from SDS*

Dynamicsnow including Training and

Simulation from SDS*

Saab Kockums*business unit, reporting directly to CEO

Electronic Defence Systemsnow including Traffic Management and

Combat Systems and C4I Solutions from SDS*

Industrial Products and Services

BUSINESS AREAS

CEO

GROUP FUNCTIONSMARKET AREAS

Asia Pacific

North America

Europe, Middle East & Africa

Latin America

Nordic & Baltic

BOARD

Our headquarters

*changes marked below

with an apostrophe

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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 2019-2024

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NEW AIRBORNE SWING ROLE

SURVEILLANCE SYSTEM (SRSS)

• 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

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SUPPORT AND SERVICES NEW ORGANISATION –PER 2016-06-01

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STAFF

SUPPORT & SERVICES

AIRBORNE

ISRJoakim Mevius

TACTICAL

SOLUTIONSAxel Cavalli-Björkman

NETWORKS

& PUBLIC

SAFETYJessica Öberg

AVIATION

SERVICESTorsten Öhman

GRIPEN

SUPPORTEllen Molin

MAINTENANCE PRODUCTION Lena Bergvin

Jonas Hjelm / Deputy Lars Brännström

Communication – Anna Emanuelsson

HR – Helena Wäreby

Security & Risk Mgmt – Markus Küchler

Commercial & Business Development – Peter Hultin

Finance & Opex – Anders Lindgren




FINANCIAL KEY DATA

MSEK 2015 2014 Change, %

Order bookings 81,175 22,602 259

Order backlog 113,834 60,128 89

Sales 27,186 23,527 16

Operating income 1,900 1,659 15

Operating margin, % 7.0 7.1

Net income 1,402 1,168 20

Free cash flow -726 -1,094

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GOING FORWARD

Product renewal

Marketfocus

Order intake

Increasesales

Increasedprofitability

Improvedcash flow

10




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 continuedairworthiness support

• Military applications in the Saab product portfolio

‒ Moving towards GlobalEye but long term support commitment to Saab 340 and Saab 2000 platform

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SAAB AB VIEWS ON SAAB 340 & 2000 AIRCRAFT

• 300+ aircraft in commercial & military operations worldwide

• Aircraft age does not reflect remaining operationallifetime – 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

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SAAB AB VIEWS ON SAAB 340 & 2000 AIRCRAFT -SUMMARY

• 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 willcontinue to change and adjustments are neededaccordingly

• Close cooperation with operators, suppliers and otherstakeholders is essential to secure many remainingyears of operation

• Saab is fully committed to support the aircraft for manyyears based on healthy business relations with all involved stakeholders

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SAAB 340 & 2000


GLASGOW, SCOTLAND

REGIONAL OPERATION REQUIRES GLOBAL COOPERATION

Malin SvahnGeneral Manager, Regional Aircraft

Glasgow May 18, 2016




SAAB REGIONAL AIRCRAFT - AGENDA

• Business environment for the Saab 340 and Saab 2000 aircraft

• Conclusions and considerations

• Way forward

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MISSION

• Secure long term support of the Saab 340 and Saab 2000 fleet

• Business perspective

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BUSINESS ENVIRONMENT FOR SAAB 340 AND SAAB 2000

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• Many factors affect the future of the Saab 340 & 2000 fleet

• Some we can control

• Some not

Business

perspective

Operators

Aircraft

placement

Authorityrequirements

Investment

needs

Availability

of technical

competence

New

business

opportunities

Competition

Supplier

support

Cooperation

opportunities

Environmental

requirements

Alternative

aircraft on

the market

Changing

market

conditions

for regional

aviation

SAAB

Passenger

perceptions

Saab

product

offering

Aging

aircraft

New

business

models




CONCLUSIONS AND CONSIDERATIONS –WAY FORWARD

• Continue to secure and develop right technical competence for the typecertificate 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 futureavailability of components and related business models for investments

• Cooperation, collaboration and communication – mutual understanding ofbusiness

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SECURE TECHNICAL COMPETENCE FOR CONTINUED AIRWORTHINESS

• Saab is responsible for the type certificate of the Saab 340 and Saab 2000

• For Saab this involves keeping a design organizationconsisting of appr 60 different competences

• Design organization required to perform and fulfil all required activities from the authorities

• An annual airworthiness subscription was introducedduring 2015 to assure long term continuedairworthiness

• The subscription covers the performance of all needed activities from Saab as the type certificateholder

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ON-GOING COST REDUCTION ACTIVITIES

• Optimization of inventory levels and inventory space

• Improvements in internal work instructions includingways of working in the designorganization

• Usage of PMA alternatives and DER repairs analyzedand used when found appropriate

• Intensive work to improve relations with suppliers, change suppliers and renegotiate supplier contracts is ongoing

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FOCUS ON OUR STRENGTHS - SAAB PRODUCTPORTFOLIO 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 hourproduction slightly decreasing - adaption to changed market conditionneeded

• Focus on strengths – increase technical support products to lower cost ofoperation 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

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PRODUCT RENEWALAND RELATEDINVESTMENTS

• Availability and reliability of certaincomponents is always a challenge withan aging fleet

• Saab is continously monitoring out ofproduction components and componentswith 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

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COLLABORATION, COMMUNICATION AND COOPERATION

• Work proactively to understand crutial operator needsand 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 cooperationbetween operators and Saab

• More initatives welcome

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SUMMARY

• Complete product offering from Saab

• Parts of the Saab portfolio to be adjusted to changingmarket 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 otherstakeholders is essential to secure many remainingyears of operation

• Saab is fully committed to support the aircraft for manyyears, based on healthy business relations with all involved stakeholders

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SAAB 340 & 2000


GLASGOW, SCOTLAND

SAAB REGIONAL AIRCRAFT

Per LovattVP Head of Sales and Marketing, Regional Aircraft




SAAB 340 MATURING GRACEFULLY

• Saab 340 is still a favorite amongst aircraft passengers and owners alike and remains one of the most cost-effective and reliable aircraft in the 30 seater segment.

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SAAB 340

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• 48 Operators Worldwide

• 363 Aircraft

• 295 Million PAX (accumulated)

• Over 240 000 FH annually

• 9 brand new Saab 340 operators since 2014

SAAB 340 Dispatch Reliability




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.

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SAAB 2000

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• 10 Operators Worldwide

• 52 Aircraft

• 38,2 Million PAX (accumulated)

• Over 45 000 FH annually

• 2 new Saab 2000 operators since 2014

SAAB 2000 Dispatch Reliability




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YOUR NEEDS

OUR CAPABILITIES




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OUR SERVICE OFFERING

Maintenance

& Repair

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

Aircraft

Maintenance

Repair &

Overhaul




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Spares

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

AOG

Support

Part

Exchange

Service

Supply &

Logistics




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Operational

& Technical

Support

Saab Regional Aircraft utilize over 80 years of

aviation expertise in our day to day technical

support operation.

Our service engineers are always on standby to

provide expertise and knowhow, supporting your

needs

Technicians

on Site

Technical

Services




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Modifications

Saab Regional Aircraft combine our unique in-

house expertise with industry leading partners

around the world to provide the most cost effective

and innovative technical solutions to any customer

needs




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Training

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

Pilot

Training




THE TEAM

• EASA Part 147, B1 and B2 ratings

‒ For Saab 340 and Saab 2000

‒ Theoretical training

‒ Practical Training – NEW!

• Established 1993

• 4 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

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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

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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)

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YOUR NEEDS

OUR CAPABILITIES

regional operation requires global … · global operators conference ... ng booked in 2015 ......

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