This report summarises the current progress of the work conducted jointly by FOA (Swedish Defence Research Establishment) and FMV (Defence Materiel Administration) in the field of Precision Engagement (PE). The main focus of the report is on the development of conceptual visions for the Swedish Armed Forces in a 2020 time frame. The report describes trends in technology and national security policy. These trends are analysed to develop a set of key capabilities for future defence forces. These key capabilities are furthermore developed into a multitude of concepts and systems and a vision for Precision Engagement.