Mildef Group Ab · OMXSTO:MILDEF
Mildef Group Ab — Q2 2024 Earnings Presentation
23 slides from Mildef Group Ab's earnings presentation, Jul 25, 2024
Slide 1: Q2 Report: Order intake back at historic high level
Q2 REPORT July 25, 2024 ORDER INTAKE BACK AT HISTORIC HIGH LEVEL Daniel Ljunggren Viveca Johnsson CEO & President CFO
Slide 2: Highlights Q2
HIGHLIGHTS Q2 Strong order intake – close to ATH Sales increased 4.4%, to 302 MSEK (289) Order intake increased 43%, to 407 MSEK (286) Not yet seen the full impact from increased defense budgets Improved margins Gross margin improved to 51.1% (50.1%) 17.8% EBITDA-margin (16.5%) our Proof
Slide 3: Quarter 2, 2024
QUARTER 2, 2024 302 407 Sales established on a new, Strong order intake with higher level. several large contracts in 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 delay
Slide 4: In the News
IN THE NEWS Q2 July Handheld win BAE Systems Strategic hardware MilDef expands MilDef recruits 69 MSEK Bofors place orders contract in Estonia integration services Magnus Hagman contract worth 52 MSEK worth 53 MSEK in Stockholm as VP Nordics 174 MSEK
Slide 5: A Pure Technology Acquisition
A PURE TECHNOLOGY ACQUISITION Advanced Vision Technology Ltd (UK) • Product portfolio expands with ruggedized displays - 8.0“, 13.3” and 15.6”. • The displays are highly price competitive and are designed to meet current and future platform requirements for military use. • The acquisition strengthen
Slide 6: MilDef Universe
MILDEF UNIVERSE
Slide 7: The MilDef Footprint
THE MILDEF FOOTPRINT Nordics Nordics 56% 50%sales* sales 9 countries -4pp Sweden Europe Norway North America Europe 17% sales* 25% 30%sales* sales Finland +6pp -1pp Denmark UK US Germany Switzerland Australia *LTM rounded (Last 12 months). Other countries 2%
Slide 8: Customer Segments
CUSTOMER SEGMENTS GOVERNMENT DEFENSE CRITICAL INFRASTRUCTURE 80% of sales 20% of sales
Slide 9: Hardware Solutions Software
HARDWARE SOLUTIONS SOFTWARE
Slide 10: Route to Market
ROUTE TO MARKET END USERS Swedish Armed Forces Norwegian Armed Forces US DoD B2G GLOBAL B2B (TIER 1,2 & INTEGRATORS) LOCAL B2B Regional and local companies where MilDef doesn’t have own representation
Slide 11: Financial Summary
FINANCIAL SUMMARY VIVECA JOHNSSON, CFO
Slide 12: A Strong Growth Journey Continues
A STRONG GROWTH JOURNEY CONTINUES Net Sales (SEKm) 1400 1200 1151 1000 800 739 600 400 470 399 334 200 244 0 2018 2019 2020 2021 2022 2023
Slide 13: Solid Gross Margin Development
SOLID GROSS MARGIN DEVELOPMENT Net Sales, SEKm, R12 +6% Gross Margin, %, R12 50,0% 49,4% 1 200 49,1% 1 113 1 051 1 000 48,3% 48,1% 48,0% 47,7% 47,6% 47,7% 800 47,3% 47,0% 597 600 46,6% 46,3% 46,0% 400 200 44,7% 0 44,0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022
Slide 14: Flat Order Intake
FLAT ORDER INTAKE +0% Order intake, SEKm, R12 1 400 1 206 1 207 1 200 1 000 800 688 600 400 200 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024
Slide 15: EBITDA Pick Up From Q1
EBITDA PICK UP FROM Q1 +2% EBITDA, SEKm, R12 200 160 148,6 145,0 120 80 46,1 40 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024
Slide 16: Strong Order Backlog
STRONG ORDER BACKLOG +12% 1 600 1 447 1 400 1 288 1 200 1 000 913 800 600 400 200 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024
Slide 17: Backlog Duration
BACKLOG DURATION Beyond 2026* 314 Duration of the order backlog 544 (SEKm) per June 30, 2024, based 2024* on planned deliveries 238 2026* *Important information Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-l
Slide 18: Working Capital Net Debt
WORKING CAPITAL NET DEBT Net Working Capital Net Debt / EBITDA 450 45,0% 6 400 35,1% 40,0% 350 31,3% 4,2 35,0% 4 3,9 300 30,0% 2,8 250 2 2,1 25,0% 1,9 1,7 1,9 1,8 200 23,6% 20,0% 150 0 15,0% 100 -0,8 -0,8 10,0% 50 -2 -2,1 -2,1 0 5,0% -50 0,0% -4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 19: Future Outlook
FUTURE OUTLOOK DANIEL LJUNGGREN, CEO
Slide 20: 3 Waves Customer Priorities
3 WAVES 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 etc… etc… etc…
Slide 21: Focus Areas 2024
FOCUS AREAS 2024 1. Capture the growing market Geographic expansion and broadened customer base 2. Customer deliveries Continued strong focus on ensuring deliveries on time and meet the increased demand 3. Customer offering Dismounted soldier system & Tempest, NATO readiness 4. Working capital & ope
Slide 22: Q&A & upcoming events
Q&A & upcoming events Capital Markets Day Stockholm – September 17, 2024 AUSA Washington DC – October 14-16, 2024 Q3 report – October 25, 2024 Year-End 2024 – February 6, 2025 Follow our journey on
Slide 23: Capital Markets Day 2024
SEPTEMBER 17, 09.00 – 12.00, ATSIX, STOCKHOLM CAPITAL MARKETS DAY 2024 Daniel Ljunggren Viveca Johnsson Fredrik Jacobsson Karin Svalander Fredrik Persson CEO and President CFO VP Europe & North Chief Legal and Deputy America Compliance CEO & CTO