The division of Systems Technology conducts research and development for the benefit of both the Swedish Armed Forces and civilian authorities. The annual report describes our competences, resources and activities together with some high-lights from the year 2003. The subtitle for this annual report is "A prosperous year". The division consisted during 2003 of five departments: Autonomous systems, Systems modelling, Underwater acoustics, Naval sensor systems and Nuclear weapon issues and detection. The activity of each department is outlined in the report. Aims and results of some research projects are described in more detail. The main part of the research is funded by the Swedish Armed Forces and the Defence Materiel Administration. Other commissioning organizations are the Ministry of Defence, Ministry of Foreign Affairs and various government authorities. We also do commissioned research for the Swedish defence industry.