Why invest in MilDef

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

Over the past five years (2016-2020), sales growth has been 27%, which by a good margin exceeds the Company’s financial target of 15% growth. 

The profitability target is at least 10% EBITDA where the average 2016-2020 was 11.6%, with a result in 2020 of 18% adjusted EBITDA. 

The company’s portfolio consists of hardware, services, and software. Historically, a large majority of revenue streams have been based on hardware, which is expected to be balanced in the future with the goal of the three segments reaching approximately equivalent sizes. 

Tactical IT is technologically challenging, and the high degree of specialization and customization creates natural barriers to entry for 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 projected growth. The Nordic region, selected countries within the EU and NATO, and some additional countries are prioritized. The main growth market is estimated to be the US, where the company established itself in 2016 through a successful acquisition.
  • The global market for rugged defense electronics in 2020, according to global analytics firm Arthur D. Little, amounted to USD 14.4 billion (approximately SEK 120 billion) and is projected to grow by approximately 4.5 percent per year, to approximately USD 18.0 billion (approximately SEK 149 billion) in 2025.
  • Growth is driven by digitalization in demanding environments, globally growing defense budgets, technological innovations, and modernization.
  • Strict technical requirements makes market access for new actors difficult, and long-term customer relationships are crucial for market success.
Leader

A leading Nordic company in the global industry for rough electronics

  • There are only a few pure competitors to MilDef. In a growing market, conditions are created for the company’s potential competitors, major global defense companies, to instead become increasingly strategically important customers. Fundamental to 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, UK creates strong growth and continued potential for expansion.
  • The company has multi-year agreements in place in the US and UK.
  • The company has framework agreements in place in Norway and Denmark.
  • The customer base consists of more than 160 customers that include both government agencies and a large number of blue-chip companies in more than 30 countries. Several customer relationships go back more than 20 years.
Export

A leading tactical IT portfolio

  • MilDef has a strong product portfolio in the three main hardware 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 MilDef’s offerings and extends the customer base to additional domains, including health and energy. MilDef invests in R&D to continuously strengthen their customer offerings.
  • With a newly established production facility, the Company has tripled its production capacity.
Organisation

An efficient organization with high engineering expertise and strong industry expertise

  • MilDef has a strong and value-driven corporate culture where employees are motivated by meaningful purpose, technological challenges, inspiring work environments, internal career paths, and professional development.
  • The company has clearly defined KPIs in place to monitor both the company’s and employees’ results, as well as to continuously work with structured improvements.
  • A strong advisory board led by Maj. Gen. (ret) Berndt Grundevik, former Chief of Army in the Swedish Armed Forces, connects the company’s operations with the end customer, at both strategic and operational levels.
  • Many employees have multi-year experience from industry, leadership, and international business development.
Financial

A solid financial position and accelerated growth strategies

  • MilDef has greatly expanded its operations since its founding in 1997.
  • During the period 2016-2020, the Company has increased 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 percent in 2020.
  • The growth strategy is based on three key strategic pillars; growth in the company’s home markets, expansion through partner networks in priority markets, and acquisition-driven growth.
  • Over the past decade, the Company has completed four successful acquisitions, which have taken MilDef to new geographic markets and expanded the customer offering. The company works actively with its acquisition agenda according to a structured process.