Mildef Group

Management Reports • Aug 29, 2024

Press Release

Helsingborg, 29 August 2024

MilDef raises its long-term profitability target

As a result of MilDef's financial development, market conditions and future prospects, the company's Board of Directors is changing the profitability target. The current EBITDA target of at least 10% is replaced by an EBITA target of at least 15% per year over time.

The reason for the change from EBITDA to EBITA is to better reflect the company's operational performance. The increased profitability target is effective immediately. The other financial targets remain unchanged and in total the financial targets are now as follows:

• · Growth. At least 25% growth per year. MilDef's objective is that revenue will, over time, grow by at least 25 percent per year, including acquisitions.
• · Profitability. At least 15% EBITA-margin. MilDef's objective is for the operating profit margin (EBITA) to, over time, amount to at least 15 percent.
• · Capital structure. The net debt shall not exceed 2.5x EBITDA. MilDef's objective is that the interest-bearing net debt shall not exceed 2.5x operating profit (EBITDA), more than temporarily.
• · Dividend policy. Distribute 20-40% of the net profit. MilDef aims to distribute 20-40 percent of the profit after tax. However, the needs for MilDef's long-term development, capital structure and prevailing market conditions must be considered.

This is information that MilDef Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 17:30 CEST on August, 29, 2024.

For more information, please contact:

Daniel Ljunggren, President and CEO Phone: +46 70 668 00 15 Email: daniel.ljunggren@mildef.com

Viveca Johnsson, CFO

Phone: +46 70 462 75 05 Email: viveca.johnsson@mildef.com

MilDef - WE ARMOR IT.

MilDef is a global systems integrator and full-spectrum provider specializing in rugged IT for military, government and critical infrastructure sectors. MilDef provides hardware, software and services that shield information streams and systems, when and where the stakes are the highest. MilDef's products are sold to more than 200 customers through comparies in Sweden, Norway, Finland, Denmark, United Kingdom, Germany, Switzerland, the United States and through partner networks in more than 40 countries. MilDef was founded in 1997 and is listed on Nasdaq Stockholm since 2021.