May 06, 2003 Håkan Rosén 1 Leveraging R&D through Venturing Saabs Focus Saab Strategic Business Planning Process Objectives Business Concept Organization Business Process Performance Ten Success Factors

May 06, 2003 Håkan Rosén 2 Core business Saab’s focus Focus areas Defence electronics Systems integration High- technology services Main business focus. Source of new opportunities for growth and acquisitions Commitments with Airbus and Boeing. Resources and capabilities that exist within the company and development of competencies that can be utilized in military aircraft Support strategy Spin-offs (Venture Capital Council) Value realization through divestment or development in partnerships with others Constant generation of new ideas for utilizing defence technology in non-defence applications

May 06, 2003 Håkan Rosén 3 Business Plan Business Plan Business Plan Corporate Strategy Group Business Area Strategy Business Unit Strategy Business Categorization Strategic Evaluation Business Plan Business Plan Business Plan Review and Approve Give Direction VCC Technology requirements SMO, BI Corp Strategic output Tech. Council Independent business Market forecast Corp Strategic vision & req. Strategic Business Planning Process Corp Strategic vision & req. VCC Independent business Business Categorization Corporate Strategy Group Business Area Strategy Business Unit Strategy

May 06, 2003 Håkan Rosén 4 Saab Venture Capital Council Objectives  Stimulating creative and innovative employees  Spreading businesslike thinking  Helping business units to focus on core business  Leveraging return on research and development Exploiting existing, but no longer strategic, technologies Exploiting core technologies on none core markets

May 06, 2003 Håkan Rosén 5 Saab Venture Capital Council Business Concept Saab VCC contributes to profitable growth of Saab through business development and realization of hidden none core values. Saabs business areas can achieve higher performance by rewarding creativity and spreading businesslike thinking utilizing the VCC-process.

May 06, 2003 Håkan Rosén 6  Established in January 2001  Six plus four members with a mix of financial, technical, strategic and research skills  All members working part time with VCC  Close co-operation with Saabs business areas  Reports to Saab Executive Management Saab Venture Capital Council “Organization”

May 06, 2003 Håkan Rosén 7 Saab Venture Capital Council Business Process Through out the process VCC focus on:  Clear realization of value  Substantial exit value  Considerable market value  Risk vs reward  No negative effect or management burden on core business. Business Areas B0 Terminate Sell Realization of value Outside Saab * Preparation B1 Terminate Sell Pre-study B2 Terminate Sell Business plan B3 Terminate Sell New Business Area Business Development

May 06, 2003 Håkan Rosén 8 Saab Venture Capital Council Performance  9 external exits  Total up front payments received: >100 MSEK  Total capital gain: >100 MSEK  Total losses saved for core business: not insignificant!  Upside value in royalties, stocks, options and additional payments

May 06, 2003 Håkan Rosén 9 Saab Venture Capital Council Ten Success Factors 1.Link up Coporate Venturing with Business Strategy 2.Report to, and get support from, executive management 3.Create a small focused organisation and make fast desicions 4.Don´t build up large internal funds 5.The customers (the business units) are always right 6.Kill weak projects as soon as possible 7.Know when and how to do an exit – build networks 8.Find a new principal with market knowledge to each spin-off 9.Keep an upside position through stocks, options etc 10.Be curious, flexible and natural

May 06, 2003 Håkan Rosén 10 Thanks for your attention!