INTERIM REPORT

January – March 2003

• Order bookings during the first quarter were SEK 6 billion and order backlog amounted thereby to more than SEK 45 billion.
• Sales SEK 4,033 m. (3,530), an increase of 14%.
• Operating income SEK 226 m. (146) and income after financial items SEK 178 m. (98).
• Earnings per share SEK 1.12 (0.73).

Statement by the CEO

"The underlying demand in our markets is growing and Saab continues to grow with it. Both order bookings and sales have increased compared with the corresponding period last year and order backlog is now on a record level of 45 billion SEK, corresponding to almost three years of sales. The largest single order during the quarter came from Hungary, which expanded the leasing deal already signed with the Swedish Government. For our part, this means a further 2 billion SEK in modification orders, making a total of 3 billion SEK. Gripen has thus established its breakthrough in the NATO market.

Other important orders during the first quarter included laser simulator systems for helicopters and extensive export orders for anti-armor weapons. Order bookings continue to be dominated by contracts from customers outside Sweden and the share of foreign market contracts in the order backlog rose to 62 per cent.

As already mentioned, notice of personnel cutbacks in the underwater sector has been issued during the first quarter as a result of a diminishing workload. There is also a need to adapt resources in other areas, especially at SaabTech and Aerospace, partly because that few domestic development programs have been started during the last few years.

As a result of the normal variation in income over the year and the costs we have incurred for structural measures in the underwater sector, income for the first quarter has, as expected, been relatively weak also this year. However, in line with my earlier assessment, I expect continued growth as well as improvement in operating income and margin for the whole year, although the margin will probably not reach our long-term 10 percent objective until next year."

For further information, please contact:

Press conference with CEO Bengt Halse:
Today Monday April 14, 10.30, World Trade Center, Stockholm

Telephone interview with CEO Bengt Halse:

International teleconference:

The Interim report can also be accessed on the Internet at www.saab.se

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