Investor relations

Investment case

Since 1997, MilDef has experienced profitable growth in its global niche for tactical IT.

Over the past five years (2016-2020), sales growth has been 27%, which exceeds the Company’s financial target of 25% growth by a good margin.

The profitability target is at least 10% EBITDA, with an average of 11.6% from 2016-2020, and a peak of 18% adjusted EBITDA in 2020.

The Company’s portfolio consists of hardware, services, and software. Historically, a large majority of revenue streams have been based on hardware. These are expected to become balanced in the future with the aim of reaching approximately equal sizes for the three segments.

Tactical IT is technologically challenging, and the high degree of specialization and customization creates natural barriers to entry for other competitors, helping to secure access to a global market with strong growth.


An attractive market with strong growth factors

MilDef addresses selected markets with high potential and good forecasted growth. The Nordic countries, selected countries within the EU, selected countries within NATO, and some other countries are prioritized. The primary growth market is expected to be USA, where the Company established itself in 2016 through a successful acquisition.

According to the global analyst firm Arthur D. Little, the global market for rugged defense electronics in 2020, amounted to USD 14.4 billion (approximately SEK 120 billion) and is expected to grow by approximately 4.5 percent annually to approximately USD 18.0 billion (approximately SEK 149 billion) in 2025.

The growth is driven by digitization in demanding environments, growing defense budgets globally, technological innovations and modernization.

Strict technical requirements protect the market from new players, and long-term customer relationships are crucial to success in the market.


A leading Nordic company in the global niche of rugged electronics

There are only a few real competitors to MilDef. Instead, in a growing market, good conditions are created for the Company’s potential competitors, large global defense companies, to increasingly become strategically important customers. A fundamental element of this relationship is that, during structural market growth, most companies focus on their core business.

MilDef is one of the leading suppliers of robust defense electronics equipment (tactical IT) in the Nordic region.

The Nordic countries are the main markets, and the Company’s presence in the US and UK creates strong growth and continued potential for expansion.

The Company has multi-year framework agreements in place in Norway, Denmark, the UK and USA.

The customer base consists of more than 160 customers, including both government agencies and a large number of blue-chip companies in more than 30 countries. The majority of customer relationships extend back more than 20 years.


A leading portfolio for tactical IT

MilDef has a strong product portfolio in the three main segments; rugged network systems, rugged monitors, and rugged computers.

The products are designed to withstand the most difficult environments and meet strict military requirements.

The growth in services and software is both organic and generated through acquisitions. In 2020, Sysint AS was acquired, which expands their offerings and extends their customer base to additional domains, including health and energy. The Company invests in R&D to continuously strengthen their customer offerings.

With a newly established production facility, the Company tripled its production capacity.


An efficient organization with a high level of engineering expertise and strong industry expertise

MilDef has a strong and value-driven corporate culture where employees are motivated by socially important tasks, technological challenges, inspiring work environments, internal career paths and training courses.

The Company has clearly defined KPIs in place to monitor both the Company’s and the employees’ results and work on structured improvement.

A strong advisory board led by Major-General Berndt Grundevik (Ret.), former Chief of the Swedish Armed Forces, links the Company’s operations with the end customer, at both strategic and operational levels.

Most employees have many years of experience in the industry, in leadership, and in international business development.


A solid financial position and strategies for accelerated growth

MilDef has sharply expanded its operations since its founding in 1997

During the period 2016–2020, the Company increased its revenues by an average of 27 percent per year (CAGR).

The average EBITDA margin for 2016–2020 was 11.6 percent with an adjusted EBITDA margin of 18% in 2020.

The growth strategy is based on three important strategic pillars: growth in the Company’s home markets, expansion via partner networks in priority markets, and acquisition-driven growth.

During the past decade, the Company has completed four successful acquisitions, which have taken MilDef into new geographic markets and expanded their offerings for customers. The Company works actively on the acquisition agenda according to a structured process.