Mildef Group Ab · OMXSTO:MILDEF
Mildef Group Ab — Shareholder Meeting (May 2024)
37 slides from Mildef Group Ab's shareholder meeting presentation, May 2024
Slide 1: CEO Presentation
CEO PRESENTATION ~ Daniel Ljunggren President & CEO™ WE ARMOR IT.
Slide 2: Agenda AGM 2024
AGENDA AGM 2024 This is MilDef 2023 highlights Follow-up on long-term financial targets The start of 2024 Market trends Future outlook ASMILDEF
Slide 3: The MilDef Story
THE MILDEF STORY Provider of tactical IT solutions ¢ Founded 1997 — History matters! e |PO June 4, 2021 ¢ +300 employees in 9 countries ¢ Core markets: Nordics, EU, NATO ¢ Customers: Defense, government and critical infrastructure ¢ Product portfolio: Hardware, software and services
Slide 4: A Strong Growth Journey
A STRONG GROWTH JOURNEY Net Sales (SEKm) 1400 iad es Pol 200 aa 8 4000 che Te clo ee res wee xe 800 eee ge 60 a 400 - “| a a 0 2018 2019 2020 2021 2022 2023 ASMILDEF
Slide 5: The MilDef Footprint
THE MILDEF FOOTPRINT Nordics y sales 4 a Bd EUROPE : sales US Germany Switzerland _ Australia : y 7 9 COUNTRIES Sweden Norway Finland Denmark North America UK sales AAMILDEF
Slide 6: Our Customer Segments
OUR CUSTOMER SEGMENTS VERNMENT CRITICAL INFRASTRUCTURE DEFENSE 80% of sales 20% of sales AAMILDEF
Slide 7: We Armor It. Hardware - Solutions - Software
WE ARMOR IT. HARDWARE - SOLUTIONS — SOFTWARE AAMILDEF WE ARMOR TT.
Slide 8: Solutions
SOLUTIONS In close cooperation with our customers and partners, we integrate durable, reliable and bespoke hardware into highly flexible and customizable systems and solutions. Solutions that are rigorously tested — not only in our laboratory and environmental test facilities, but also in real life.
Slide 9: Deployment Software
DEPLOYMENT SOFTWARE OneCIS — Tactical Deployed CIS Enables the customer to build systems up to NATO secret level Supports both autonomous and joint tactical operations Fully automated deployment NATO Federated Mission Networking (FMN) compliant* AMMILDEF WHE ARMOR TT
Slide 10: Customer references
Swedish Armed Forces, British Special Forces Army Norwegian Armed Forces
Slide 11: Highlights 2023
Slide 12: 2023 Outcome
2023 OUTCOME = Sales growth +56% to 1,151 SEKm = Order intake +29% to 1,214 SEKm = Operating cash flow 8,7 SEKm (-95) = EBITDA 168 million SEKm (60) = Order backlog +15% at 1,327 SEKm
Slide 13: MilDef Launch a Company in Denmark
a -Q— _ 341i tt Ht MILDEF LAUNCH A COMPANY IN DENMARK * To further strengthen MilDef's position in Denmark, MilDef Denmark is now established. AMMILDEF YE ARHEOR TT
Slide 14: Daniel Ljunggren Appointed New CEO
z= _+__@-_—_-+?—__>—__—_>__+_+—_+—_+— DANIEL LJUNGGREN APPOINTED NEW CEO ie = * Daniel Ljunggren took over as CEO on May 26, 2023. YE ARHEOR TT
Slide 15: Processors and Ethernet switches for British Army
Processors and Ethernet switches for the British Army's upgraded tanks. MilDef will manufacture the components at its UK facility in Cardiff, Wales. AMMILDEF YE ARHEOR TT
Slide 16: MilDef wins order from BAE Systems
$$ —_4#—_ 4+ —— | APRIL | MILDEF WINS ORDER FROM BAE SYSTEMS, WORTH 69 MSEK MilDef has been entrusted to deliver rugged computers, switches and displays. * Technology is part of the Archer Artillery System. AMMILDEF YE ARHEOR TT
Slide 17: New CFO appointed
* Viveca Johnsson is employed as new CFO. * Previously at the industrial company Nederman, where she has been active since 2013. AMMILDEF YE ARHEOR TT
Slide 18: MilDef Inc transformed under Jim Rimay
EI -—$$_—__+—__+—_+—_@_>—_-+_+_—_+—__— MILDEF INC TRANSFORMED UNDER LEADERSHIP OF JIM RIMAY « MilDef is accelerating its efforts in the US by consolidating MilDef Inc and the Handheld business, under one strong and focused entity. « Jim Rimay, CEO of Handheld US Inc, takes over the management of all
Slide 19: Astronics Corporation collaboration
Astronics Corporation, a provider of advanced technologies for global aerospace, defense and mission critical industries. This integrates MilDef’s computing platform within the Astronics portable radio test suite being provided to U.S. Marine Corps’. AMMILDEF YE ARHEOR TT
Slide 20: Uniform control computer for nano drones
The bespoke carry-on uniform control computer iS based on 7-inch Handheld Android tablet. The customer is a global defense group, based in the US, delivering nano drones for military battlefield surveillance. AMMILDEF YE ARHEOR TT
Slide 21: New brand positioning - We Armor It.
EI $3 —_—_+—_§_+—_§_—@_—__+—_a_+_ i ——_— MILDEF LAUNCHES NEW BRAND POSITIONING — WE ARMOR IT. * Enhanced brand promise - WE ARMOR IT. \ ° We make everything stronger with hardware — software and solutions. WE ARMOR IT. AMMILDEF YE ARHEOR TT
Slide 22: Algiz RT10 tablets to Makin
$3 +—_—_+—_+—_—_—_+—_+—__+—+—_ @_———_ Delivery of ruggedized tablets in the Algiz RT10 series to Makin, an international supplier of machine control. The agreement extends over five years. AMMILDEF YE ARHEOR TT
Slide 23: Clavister Cyber Armour deliveries
$3 +—_—_+—_+—_—_+—_ +—__ + +—__+_@—_ ° Part of Clavister Cyber Armour, an integrated cyber security system for defense platforms. * Deliveries will take place 2024-2029. AAMILDEF
Slide 24: Financial Targets
Slide 25: Financial Targets Execution 2023
FINANCIAL TARGETS EXECUTION 2023 GROWTH 56% VY The four financial targets EBITDA 14.6% VY NET DEBT 1.7X AZ DIVIDEND 29% 4
Slide 26: The Start of 2024
Slide 27: Start of 2024 - Q1
START OF 2024 - Q1 = Slow — but not unexpected — Q1 2024 " Quarterly volatility remains — no lost orders in Q1 but delayed sell processes. * Still positive outlook for 2024 and beyond — near term outlook supported by a strong order intake-start of Q2 = High activity level in the market — purchasing
Slide 28: Quarter 1, 2024
QUARTER 1, 2024 NET SALES, SEK M 18% decrease Q1 EBITDA, SEK M Slow start in net sales but in line with management expectations for the quarter. The comparison quarter (Q1 2023) was a strong quarter in terms of net sales due to delayed deliveries in 2022. Decreased EBITDA in Q1 is due to lower net s
Slide 29: Highlights in the Start of 2024
HIGHLIGHTS IN THE START OF 2024 Q1 2024 April Lockheed Martin 10-year framework Handheld win BAE Systems Strategic hardware industry agreement BAE 69 MSEK Bofors order contract Estonia collaboration Systems Bofors contract worth 52 MSEK worth 53 MSEK 174 MSEK AAMILDEF
Slide 30: Gross margin and net sales by quarter
50,0% 49,1% 1 200 1 100 48,3% 1 000 48,0% 48,1% 881 47,7% 47,6% 47,7% 800 47,3% 47,0% 560 46,6% 46,6% 600 46,3% 46,0% 400 200 44,7% 0 44,0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2024 2021 2022 2023 2024
Slide 31: Quarterly EBITDA
200 160 142,7 120 87,7 80 53,3 40 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2024
Slide 32: Macro Trends
Slide 33: Largest increase in military spending in Europe in 30 years
Great need of modernization and Defense planning processes Largest increase in military digitalization in the defense ongoing in several countries Potential NATO-boost spending in Europe in 30 years sector MilDef late in the cycle
Slide 34: Waves of Customer Priorities
3 WAVES OF CUSTOMER PRIORITIES POST INVASION OF UKRAINE 1. Operational 2. Platforms 3. IT power & support systems = Fuel = Troop transportation = Computers = Ammunition = Battle tanks = Switches = Training = Aircrafts = Servers = Drones = Ships = Displays OQ @ilC... 0 HC... OD @iCo0. AAMILDEF
Slide 35: Future Outlook
Slide 36: Focus Areas 2024
FOCUS AREAS 2024 e@ Capture the growing market Geographic expansion and broadened customer base e@ Customer deliveries Continued strong focus on ensuring deliveries in time ® Customer offering Dismounted solider system & Tempest, NATO readiness 4 Working capital and operating cash flow Improve opera
Slide 37: Q&A