Mildef Group Ab · OMXSTO:MILDEF
Mildef Group Ab — Investor Day (September 2024)
86 slides from Mildef Group Ab's investor day presentation, Sep 17, 2024
Slide 1: We Armor IT
, Daniel Ljiunggren Viveca Johnsson Fredrik Jacobsson ‘ Karin Svalander Fredrik Persson ~ Martina Karlsson CEO and President CFO VP Europe & North - Deputy CPO America : CEO & CTO WE ARMOR IT.
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Slide 3: Headlines
HEADLINES THE MILDEF EVOLUTION... HOW WE CAPTURE GROWTH... DRIVING PRODUCTS & INNOVATION... TO WHOM WE SELL & HOW... DIVE INTO NUMBERS THAT MATTERS... THE PATH TO FUTURE GROWTH... A SMASHING Q&A. ASMILDEF
Slide 4: Program times
09.00 09.10 09.30 09.50 10.10 10.25 10.45 11.00 11.20 11.40 12.00
Slide 5: Tour of the Fortress
TOUR OF THE FORTRESS OLOF ENGVALL
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Slide 7: This is the MilDef Story
THIS IS THE MILDEF STORY DANIEL LJUNGGREN CEO & PRESIDENT
Slide 8: We Armor IT
WE ARMOR IT. We ARMOR your IT when and where the stakes are the highest._ ASMILDEF
Slide 9: We are proud to be relevant
WE ARE PROUD TO BE RELEVANT | <a 2 <a 3 <a 4. <I 5 <a AMMILDEF WE ARMOR TT.
Slide 10: The MilDef Universe
THE MILDEF UNIVERSE Provider of tactical IT solutions e Founded 1997 e IPO June 4, 2021 e +300 employees in 9 countries ¢ Core markets: Nordics and selected EU and NATO countries ¢ Customers: Defense, government and critical infrastructure ¢ Product portfolio: Hardware, software and services
Slide 11: History Matters. 1997-2024
HISTORY MATTERS. 1997-2024 MilDef Launch MilDef International MilDef Launch IPO June Subsidiary Subsidiary | Acquisition founded, product acquires expansion acquires concept for 2021 opened in opened in AVT assets under the concept Terralogic accelerated Amrel’s intelligent Finland Denmark name of 1
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Slide 13: Hardware, Software, Services
HARDWARE SERVICES 70% of sales 25% of sales SOFTWARE - A) « 5% of sales =e a AAMILDEF
Slide 14: Customer Segments
CUSTOMER SEGMENTS GOVERNMENT DEFE NSE CRITICAL INFRASTRUCTURE 80% of sales ° 20% of sales ————* ASMILDEF
Slide 15: Where We Sell
WHERE WE SELL 9 countries Sweden Norway Finland Denmark UK US Germany Switzerland Australia *LTM rounded (Last 12 months). Other countries 2% AXMILDEF WE ARMOR TT.
Slide 16: Notable News Events in Q3
NOTABLE NEWS EVENTS IN Q3 NEW TARGET PROFITABILITY At least. 15% CORPORATE NEWS X4 integration Magnus Hagman EBITA-margin services Stockholm new VP Nordics i B BUSINESS NEWS : ri PepoSEKm eo. Pp Order intake G3 SS Seg so far European military BAE Systems Bofors Norwegian CV90 DALO order, vehicle pro
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Slide 18: The MilDef Growth Journey
THE MILDEF GROWTH JOURNEY Net Sales (SEKm) 1400 1200 1000 800 MSEK 600 400 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ASMILDEF ‘WE ARMOR TT.
Slide 19: Jump to Q2, 2024
JUMP TO Q2, 2024 Sales established on a new, Strong order intake with 3 0 2 higher level. 40 several large contracts in j Q2. The comparison quarter (Q2 2023) was a strong quarter Even if volatility between NET SALES, SEK M in terms of net sales due to ORDER INTAKE, SEK M quarters will remain, the .
Slide 20: The Beginning of the Beginning
"THE BEGINNING OF THE BEGINNING” MILDEF IS LATE-CYCLICAL IN DEFENSE PROCUREMENT Wd JH osde P= |B ee ee 1. Operational 2. Platt T power & support systems = Fuel = Ammunition . = Switches = Training = Servers = Drones = Displays OQ @ilC... OD @iCo0. ASMILDEF
Slide 21: Program times
09.30 09.50 10.10 10.25 10.45 11.00 11.20 11.40 12.00
Slide 22: How We Armor IT
HOW WE ARMOR'IT. FREDRIK PERSSON DEPUTY CEO & CTO
Slide 23: Multi Domain Offering
MULTI DOMAIN OFFERING PRODUCTS AND SERVICES THAT ENABLES DIGITALIZATION WHERE THE REQUIREMENTS ARE THE TOUGHEST LAND AIR NAVAL ASMILDEF
Slide 24: Tactical IT
TACTICAL IT Forms the backbone of a system of systems that includes the IT . . . Vehicle infrastructure and the operator environment, enabling secure lataraantetorm — communication and function as one integrated unit. system systems IT Infrastructure - system woo Military radios ; * Secure Communica
Slide 25: Hardware / Services
HARDWARE _ SERVICES AAMILDEF
Slide 26: Hardware
HARDWARE oa SS Small form . Mobile Customer factor > Displays > computers » projects > ASMILDEF
Slide 27: MilDef - Small Form Factor
MILDEF - SMALL FORM FACTOR Power products \. Converters KVMs & video “2 extenders 19”/2 Switches = eripherals Mounting solution geet Routers & gateways ‘yes Computers & servers AAMILDEF WE ARMOR
Slide 28: Displays
DISPLAYS « Acomplete range of rugged displays and Panel PCs for tactical scenarios. * Perfectly complementing our small form factor products with equal specification, long-life cycles and relevant for all domains. * In-house capabilities to design from the ground up and be an industry leader within
Slide 29: Form Factor
FORM FACTOR Standardization * Same form factor over generations ° All 19”/2 units are mounting compatible with each other CUSTOMIZABLE ¢ Modular design ¢ In-house capabilities - Concept - Design - Test & verification - Manufacturing - Service & support DESIGNED FOR DEFENSE io al | | iN . Vs ar ay. a
Slide 30: Mobile Computers
MOBILE COMPUTERS WIDE RANGE OF RUGGED PDA’S, TABLETS AND LAPTOPS * Consistent form factor over generations ¢ Rugged design * Long product life cycles * Relevant for all domains * Combat proven — 25+ years of use in field
Slide 31: OneCIS - Tactical Deployment
ONECIS — TACTICAL DEPLOYMENT ¢ Fully automated deployment + Faster and more reliable * Improved security ¢ Flexible and open architecture ¢ Enables the customer to build systems up to NATO secret level « NATO Federated Mission Networking (FMN) compliant* ASMILDEF
Slide 32: Services
SERVICES 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 33: Dismounted Soldier at a Glance
DISMOUNTED SOLDIER AT A GLANCE
Slide 34: OneCIS Dismounted Soldier
DISMOUNTED SOLDIER | ; a FASTER AND MORE ACCURATE DECISIONS Chest mount @ ASMILDEF Tactical Radio EMM/MDM EUD Cable AAMILDEF OneClS AAMILDEF Features * Own units position ¢ Enemies position ASMILDEF ¢ Tactical planning ‘WE ARMOR TI = ASMILDEF
Slide 35: Products & Services = Solutions
PRODUCTS & SERVICES = SOLUTIONS Customized solutions for all kinds of platforms, objects and facilities We constitute a reliable partner in development, delivery and integration of complex system solution over the full life-cycle. ASMILDEF
Slide 36: MilDef - A System House
MILDEF — A SYSTEM HOUSE MilDef deliver turn-key solutions that font sage peat information Intercom significantly enhance the capabilities for system systems [i Weapon defense forces across all domains. system | Optical and IR . . GPS, navigati + Defense industry enhancing Armed cameras Forces capabi
Slide 37: Multi Domain Offering
MULTI DOMAIN OFFERING PRODUCTS AND SERVICES THAT ENABLES DIGITALIZATION WHERE THE REQUIREMENTS ARE THE TOUGHEST LAND AIR NAVAL ASMILDEF
Slide 38: Program times
09.50 10.10 10.25 10.45 11.00 11.20 11.40 12.00
Slide 39: What, To Whom & How We Sell
Slide 40: How MilDef Sales Are Organized
HOW MILDEF SALES ARE ORGANIZED DIVIDED IN TWO BUSINESS AREAS Business Area Europe & North America US, UK, International sales, Handheld Production (UK) Mainly B2B sales Business Area Nordics Sweden, Norway, Denmark, Finland Integration (SWE), Software (NOR) Both B2B and B2G sales AXMILDEF ‘WE ARMOR
Slide 41: How We Sell
HOW WE SELL Build long relations and strong network Proven supplier for 25+ years Track record in existing platforms B2G customers ask for MilDef * Tenders (B2B and public B2G) * Website, Exhibitions, Seminars, Working groups, Marketing SA N OF TI S ARMY, ASMILDEF
Slide 42: Armed Forces customers
Swedish Armed Forces Norwegian Armed Forces US DoD
Slide 43: Reference - RBSL MIV Program
REFERENCE — RBSL MIV PROGRAM 3 x GVA crew station PC 1 x GVA server 528 BOXER VEHICLES — 8 UNITS IN EACH REQUIREMENT - UK PRODUCTION + Value to MilDef Group: £24m + UK metalwork * Production vehicles: RBSL and WFEL in UK + UK PCB manufacture * Pre-production: KMV and RMV in Germany AMMILDEF ‘WE ARMO
Slide 44: Reference - Saab Surveillance
REFERENCE — SAAB SURVEILLANCE GLOBALEYE « A multi-role airborne early warning & control platform. * Started in 2006 to develop a rugged display for the SAAB Erieye system. + Today main supplier for the GlobalEye system for computers, switches and NAS. BROAD SCOPE DELIVERY * Delivering rugged IT infr
Slide 45: Reference - Clavister Cyber Security
REFERENCE — CLAVISTER CYBER SECURITY CYBER SECURITY BY CLAVISTER & MILDEF * MilDef agreement 800 units. 97 MSEK. * BAE Systems have integrated the Clavister Defence Platform Security solution into the CV90 vehicles. * The CV90 is equipped with active cyber protection against known and unknown cyber
Slide 46: Welcome to MilDef!
WELCOME TO MILDEF! MAGNUS HAGMAN VICE,PRESIDENT NORDICS
Slide 47: Program times
10.10 10.25 10.45 11.00 11.20 11.40 12.00
Slide 48: This is How We Do Sustainable Business
THIS IS HOW WE DO SUSTAINABLE BUSINESS KARIN SVALANDER CLCO - CHIEF LEGAL & COMPLIANCE OFFICER
Slide 49: Sustainable Business
SUSTAINABLE BUSINESS “MilDef considers it to be of great importance who we do business with and how and by whom our products are used. As part of our corporate social responsibility and our own ethical stance, MilDef aims to go above and beyond the norms set by legal regulations and positively contr
Slide 50: Fireside Chat with Karin Svalander
FIRESIDE CHAT WITH KARIN SVALANDER SUSTAINABLE BUSINESS AAMILDEF ‘WE ARMOR TT,
Slide 51: Coffee Break
20 MIN COFFEE BREAK 10.45)SOFF — THE ECOSYSTEM OF DEFENCE SECRETARY GENERAL SOFF — ROBERT LIMMERGARD
Slide 52: Program times
10.45 11.00 11.20 11.40 12.00
Slide 53: The Ecosystem of Defense
THE ECOSYSTEM OF DEFENSE ROBERT LIMMERGARD SECRETARY GENERAL SOFF
Slide 54: Questions?
QUESTIONS?
Slide 55: Agenda
AGENDA 11.00 The numbers that matters CFO — Viveca Johnsson 11.20 Strategy for future & talent pooling CEO — Daniel Ljunggren & CPO Martina Karlsson 11.40 Q&A All presenters & auditorium 12.00 Close of show / lunch AXMILDEF ‘WE ARMOR TT
Slide 56: The Numbers That Matters
THE NUMBERS THAT MATTERS VIVECA JOHNSSON CFO
Slide 57: Net Sales 2014 - 2024 LTM
NET SALES 2014 - 2024LTM 1400 1200 1000 800 MSEK 600 400 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2406 L™ AMMILDEF WE ARMOR TT.
Slide 58: Order Intake
ORDER INTAKE 1400 1200 1000 800 MSEK 600 400 200 2020 2021 2022 2023 2406 LIM AMMILDEF WE ARMOR TT.
Slide 59: Order Backlog
ORDER BACKLOG 1600 1400 1200 1000 800 MSEK 600 400 200 2020 2021 2022 2023 2406 ‘v _ AAMILDEF WE ARMOR TT.
Slide 60: Organic and Acquired Growth
ORGANIC AND ACQUIRED GROWTH 70% 60% 50% om 40% 30% AT% 20% 26% 10% 19% om a “14% -10% -20% 2020 2021 2022 2023 2406 LIM GENS CREME ASMILDEF WE ARMOR TT.
Slide 61: Gross Margin Development
GROSS MARGIN DEVELOPMENT 50% 49% 48% 47% 2020 2021 2022 2023 2406 ASMILDEF
Slide 62: Cost to Serve - Opex/Sales
COST TO SERVE - OPEX/SALES ASMILDEF
Slide 63: EBITDA - Scalable Growth
EBITDA - SCALABLE GROWTH 180 160 140 120 100 MSEK 80 60 40 2020 2021 2022 2023 2406 LIM AMMILDEF WE ARMOR TT.
Slide 64: EBITDA Margin
EBITDA MARGIN 20,0% 18,0% 16,0% 14,0% 12,0% 10,0% 80% 6,0% 40% 2,0% 0,0% 2020 2021 2022 2023 2406 ASMILDEF WE ARMOR TT.
Slide 65: Financial Goals Upgrade
FINANCIAL GOALS UPGRADE GROWTH At least 25% growth per year NEW TARGET PROFITABILITY | CAPITAL STRUCTURE At least 15% EBITA margin Net debt shall not exceed 2.5x EBITDA DIVIDEND POLICY Distribute 20-40% of the net profit — Outcome 2023 56% Growth 12.2% EBITA margin 1.7x Net debt-to-EBITDA ~30% Divid
Slide 66: Profitability Target Changed to EBITA
PROFITABILITY TARGET CHANGED TO EBITA AAMILDEF
Slide 67: EBITA Margin - Target 15%
EBITA MARGIN - TARGET 15% 18,0% 16,0% 14,0% 12,0% 10,0% 80% 6,0% 4,0% 2,0% 0,0% 2020 2021 2022 2023 2406 uM ASMILDEF
Slide 68: Potential Targeting 2026
POTENTIAL TARGETING 2026 (GROWTH AND EBITA) 2026 Net Sales 2 248 MSEK Organic 739 MSEK Fast-growing and global company Profitable growth 2026 EBITA margin Acquisition synergies >15 % EBITA margin > d 337 MSEK EBITA margin 12,2 % " . 61% 140 MSEK mer centric 45 MSEK * Calculations is based on financi
Slide 69: Net Debt / EBITDA
NET DEBT / EBITDA 5,00 4,00 3,00 2,00 1,00 0,00 -1,00 -2,00 -3,00 AXMILDEF WE ARMOR TT.
Slide 70: Dividend
DIVIDEND 30,0 27,3 25,0 20,0 19,9 x 17,4 10,0 5,0 0,0 2020 2021 2022 2023 0,0 AMMILDEF WE ARMOR TT.
Slide 71: Working Capital Days
WORKING CAPITAL DAYS 300 250 200 150 50 -50 -100 2020 2021 2022 2023 2406 LIM @inv @Other = AP/AR ANMILDEF WE ARMOR TT.
Slide 72: EBITDA to operating cash flow
160 90 140 80 70 120 60 100 50 80 148,6 40 60 30 62,3 40 20 37,3 20 10 21,5 0 0 EBITDA 2406 LTM Changes in Paid interest and CAPEX Other non-cash Operating cash EBITDA 2406 Changes in Paid interest CAPEX Other non-cash Operating cash working capital taxes items flow YTD working capital and taxes ite
Slide 73: In Summary - The Journey
IN SUMMARY - THE JOURNEY 1400 1200 1000 800 MSEK 600 400 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2406 LT™ AMMILDEF WE ARMOR TT.
Slide 74: Agenda
AGENDA 11.20 Strategy for future growth & talent pooling CEO — Daniel Ljunggren & CPO Martina Karlsson 11.40 Q&A All presenters & auditorium 12.00 Close of show / lunch AXMILDEF ‘WE ARMOR TT
Slide 75: Strategies for Growth
STRATEGIES FOR GROWTH DANIEL LJUNGGREN CEO & PRESIDENT
Slide 76: Largest increase in defense spending in Europe in 30 years
Largest increase in Great need of modernization defense spending in Europe and digitalization in the Potential NATO Boost in 30 years defense sector
Slide 77: Growth strategy: classic portfolio, new tech, M&A
Unleash potential in “classic” portfolio to New tech, system house/integrator solutions M&A compass in order to overperform market growth coming years and software lead to expanded relationships find the right targets
Slide 78: Digitalization Drive Higher Volumes
DIGITALIZATION DRIVE HIGHER VOLUMES NEED FOR SMALLER PRODUCTS WITH MORE COMPUTING POWER ACCELERATES AXMILDEF ‘WE ARMOR TT,
Slide 79: A Thriving Workplace
A THRIVING WORKPLACE MARTINA KARLSSON
Slide 80: How to Attract and Retain for Growth?
HOW TO ATTRACT AND RETAIN FOR GROWTH? ‘WE ARMOR TT,
Slide 81: Strong Within
STRONG WITHIN
Slide 82: Future Outlook
Slide 83: Future Outlook
FUTURE OUTLOOK 1) High demand landscape here to stay 2) End-user needs drives innovation and volumes - great need for digitalization > Active M&A agenda - strategic acquisitions create value ASMILDEF
Slide 84: Future Outlook in Summary
FUTURE OUTLOOK IN SUMMARY “For the coming years, we expect an accelerated growth, as we predict that the increased defense spendings will have full impact on MilDef from 2025 onwards.” ASMILDEF
Slide 85: Q&A
Slide 86: Thank you all for your support!
THANK YOU ALL FOR YOUR SUPPORT! Upcoming events AUSA Washington DC — October 14-16, 2024 Q3 report — October 25, 2024 Year-End 2024 — February 6, 2025 Follow our journey on lin} ASMILDEF WE ARMOR TT.