Incentive program

Performance based long-term incentive programme (LTIP 2025/2028)
The AGM resolved, in accordance with the Board’s proposal, on a performance based long-term incentive programme (LTIP 2025/2028), covering MilDef’s group management of approximately six (6) employees. The participants are allocated performance based share rights that may entitle to shares in the company. Following the defined vesting period, the participants will be allocated shares in MilDef Group AB free of charge provided that certain performance targets are fulfilled. A prerequisite for allocation of shares is that the participant, with certain exceptions, remains employed within the MilDef Group. In addition, it is required that MilDef’s adjusted EBITDA per share during the term has amounted to certain minimum levels and that the share price development of MilDef’s share on Nasdaq Stockholm has been positive during the term. The maximum number of shares which may be allocated to the participants in total under LTIP 2025/2028 shall be limited to a maximum of 20,000 shares, which corresponds to approximately 0.04 per cent of all outstanding shares in the company.

To secure the delivery of shares under LTIP 2025/2028, the AGM also resolved on transfer of own shares in MilDef, as well as to authorise the Board to execute acquisitions of own shares in MilDef.

Incentive program 2021/2025
At the Extraordinary General Meeting on April 29, 2021, it was resolved to adopt an incentive program (“Incentive program 2021/2025”) for the group’s employees through the issuance of warrants giving right to subscribe for new shares in MilDef. Due to tax-related reasons, the incentive program only applies to employees that are taxable in Sweden.

The purpose of the incentive program is that a personal ownership commitment in MilDef is expected to lead to increased motivation and a sense of belonging, as well as to increased interest in the business and its performance. The incentive program is also expected to make it easier to retain competent employees and facilitate recruitments.

Assuming full exercise of the warrants, share capital may increase by a maximum of SEK 144,500 through the issuance of 578,000 shares, corresponding to a dilution of approximately 2.3 percent. The warrants are subject to customary recalculation provisions. The purpose of the recalculation provision is to maintain the relative economic value of the warrants, for example in the event of a bonus issue or share split.

The right to acquire warrants is based on the following principles regarding allotment categories: (i) CEO and members of group management maximum of 20,000 warrants per participant; (ii) other senior executives and key employees not more than 10,000 warrants per participant and (iii) other employees: a maximum of 2,000 warrants per participant. 

The warrants have been transferred on market terms at a price (premium) determined based on an estimated market value using the established valuation model Black & Scholes. The calculation has been carried out by an independent valuation institution.

Each warrant entitles to subscription of one new share in MilDef at a subscription price corresponding to 133 percent of the price per share in the new share issue that is planned to be carried out in connection with the admission to trading of shares in the company on Nasdaq Stockholm.

Application for subscription may take place between 1 September 2024 and 31 August 2025.

The company has reserved the right to repurchase warrants if the participant’s employment is terminated or if the participant wishes to transfer the warrants. Repurchases shall be made at the market price of the warrants at the time the preferential right is exercised. 

The company has no other costs for the Incentive program 2021/2025 than administrative costs regarding advice in connection with the administration of the incentive program.

There are no share-related incentive programs outstanding in the company other than the warrants described above.