Mildef Group

Quarterly Report • Apr 29, 2025

MILDEF GROUP

Q1 INTERIM REPORT JANUARY–MARCH 2025

INTERIM REPORT JANUARY–MARCH 2025

SUMMARY OF THE PERIOD

ORDER INTAKE REMAINS STRONG

First quarter 2025

• The order intake in the first quarter amounted to SEK 404 million (215), equivalent to an increase of 88%, of which acquired growth accounted for 32% and organic growth 56%.
• As of March 31, 2025 the order backlog was up 111% to reach SEK 2,766 million compared with the same date in 2024 (1,311). Acquired growth accounted for 52% of this and organic growth for 59%.
• Net sales amounted to SEK 340 million (232), equivalent to an increase of 46%, of which acquired growth accounted for 28% and organic growth 18%.
• The gross margin was 48.1% (48.4). The acquisition of roda negatively impacted the quarter's gross margin. Excluding the acquisition, the gross margin amounted to 50.5% for the quarter.
• Adjusted EBITA amounted to SEK 15.7 million (1.2), equivalent to an adjusted operating margin of 4.6% (0.5). Adjusted EBITA was negatively affected in the amount of SEK 13 million due to unrealized exchange losses during the quarter.
• Adjusted operating profit (EBIT) amounted to SEK 7.1 million (-6.8), corresponding to an operating margin of 2.1% (-2.9).
• Free cash flow amounted to SEK -75.2 million (20.9). The change is mainly due to a high proportion of deliveries late in the quarter, with payments falling due in the second quarter, which negatively impacts the first quarter's cash flow.

LAST 12 MONTHS, APRIL 2024 – MARCH 2025

Summary of significant events in the first quarter, January–March 2025

• On March 6 MilDef completed the acquisition of roda computer GmbH ("roda"). All regulatory approvals from Germany, France and the UK were received according to plan. The acquisition strengthens MilDef's presence in Europe and gives the company access to important market channels. In the first quarter MilDef's Board of Directors, based on authorization from an extraordinary shareholders' meeting on December 9, 2024, resolved on an issue in kind of 1,374,047 new shares for the sellers of roda as a portion of the purchase consideration. The roda company is consolidated in the MilDef Group as of March 6, 2025.
• On March 11 MilDef won a cybersecurity contract with Clavister worth SEK 40 million. On multiple occasions Clavister has ordered MilDef's hardware for rugged network equipment intended for installation in BAE System Hägglund's CV90 combat vehicles. The first in the series of deliveries will take place at the beginning of 2027.

Summary of significant events after the end of the period

• The MilDef subsidiary Westek signed a contract worth SEK 45 million with a global defense group. This is the single largest order to date for Westek and deliveries will take place in 2026. The order value is SEK 45 million and additional contracts are expected to follow under the program in 2025 and onwards.
• FMV signed a contract with MilDef worth SEK 126 million. As part of the accelerated defense rearmament, the Swedish Defence Materiel Administration (FMV) has decided to replace older IT equipment with new from MilDef. In total, this involves IT equipment for digitization of the Swedish army. Deliveries will take place in 2025.

INTERIM REPORT JANUARY–MARCH 2025 SUMMARY OF THE PERIOD

FINANCIAL SUMMARY

	January 1–March 31		Last 12 months	Full year
All figures are in SEK million unless otherwise indicated	2025	2024	April 2024– March 2025	2024
Net sales	340	232	1,308	1,201
Sales growth, %	46	-18	19	4
Of which organic, %	18	-18	14	4
Of which acquisition-driven, %	28	-	5	-
Gross margin, %	48.1	48.4	48.9	49.0
Adjusted operating profit (EBITA)	15.7	1.2	164.1	149.7
Adjusted operating margin (EBITA), %	4.6	0.5	12.5	12.5
Order intake	404	215	1,999	1,810
Order backlog	2,766	1,311	2,766	2,055
Free cash flow	-75.2	20.9	31.0	127.7

All amounts are presented in SEK million unless otherwise indicated. Rounding differences in totals may occur. If, when rounded off, an underlying number becomes SEK 0 m, this is written as 0.

PRO FORMA FULL YEAR 2024 MILDEF/RODA

The pro forma financial information below for full year 2024 is presented to provide a more accurate representation of the businesses – both in isolation and consolidated. The information serves to complement other financial statements.

Full year 2024 pro forma	MilDef excl. roda	roda*	Intercompany eliminations**	Total
Order intake	1,810	839	-75	2,574
Net sales	1,201	930	-79	2,052
Adjusted operating profit (EBITA)	150	159		309
Adjusted operating margin (EBITA), %	12.5%	17.1%		15.1%

*roda's reported figures for 2024 have not been audited

**Intercompany eliminations pertains to order intake/sales between companies that have been excluded during the stated period

CEO'S COMMENTS

POSITIVE MARKET TREND CONTINUES

The positive market trend we saw in the second half of 2024 strengthened further in the first quarter of 2025. Order intake increased by 88% to SEK 404 million (215), of which 56% was organic. This increase was achieved despite the lack of large individual orders during the quarter. Sales also grew, by 46% amounting to SEK 340 million (232). The positive trend confirms MilDef's strong position in the market and that the European rearmament is now entering a new phase – a phase where MilDef's offering and portfolio are increasingly in demand.

An acquisition at the right time

In November 2024 MilDef announced the acquisition of German company roda. The acquisition is part of the Company's strategy to increase the pace of expansion and the market presence in Europe. The roda company is a well-established supplier of military IT solutions with a strong market presence in Central Europe, mainly in the DACH region. The acquisition was completed in March 2025 and it feels increasingly like the timing was right. As recently as March this year Germany announced its extensive rearmament. EUR 500 billion over a period of 12 years will be invested and this will include a massive rearmament. The roda company continued to develop in a positive direction in 2024, with sales growth of 16% and an EBITA margin of 17%. With Germany's clearly expressed rearmament ambition, the prospects are good for continued strong growth for several years to come. Due to the positive development experienced by roda, the acquisition was completed at a multiple of approximately 6x EBITDA on 2024 figures. This is expected to create long-term value for MilDef's shareholders, even before conceivable future synergies.

The integration process is fully under way and the main focus is on commercial synergies. On roda's largest market, Germany, our sales organizations have already had multiple joint customer visits and the reception from the customers has been very positive. Meanwhile a number of other integration initiatives are under way within R&D, supply chain and support functions to promote sales synergies and increase operational efficiency. However, our most important focus here and now is jointly positioning ourselves in preparation for the increasing number of business opportunities in the Central European market.

"We welcome roda to MilDef"

CEO'S COMMENTS

NET SALES January – March 2025 +46%

ORDER INTAKE January – March 2025 +88%

ADJUSTED EBITA January – March 2025 4.6%

The pace of European rearmament is accelerating

Since the end of 2024 it has become increasingly clear to European politicians that a massive increase in defense capabilities is needed – and it needs to happen fast. Ambitions regarding the speed of this process are driven in part by the questions around the transatlantic link given the actions of the USA under the leadership of the new president there. The US government has, among other things, made it clear that the USA's military presence in Europe cannot be taken for granted in the long term. Already in February 2022 the message was clear from the politicians in Europe. Significant capacity increases were ordered based on increased defense budgets. The message is the same today, but with increased clarity about the speed at which this needs to happen. Much of the funds now being invested are intended for orders within the 2025–2026 timeframe. The difference I am hearing in the new rhetoric compared to February 2022 is the time factor. At this time there is a desire to see the effects fast, which puts additional pressure on procurement agencies and the defense industry's ability to deliver. The increased demands regarding the speed of rearmament are good for MilDef. We are ready to increase volumes and shorten lead times.

A differentiated defense industry

People often talk about the defense industry as a homogenous group of companies – a group that is thought to follow the same patterns and trends in the times we find ourselves in. I believe it is important to talk about a defense industry that is more differentiated. The rearmament now under way will undeniably impact companies in the defense sector in a variety of ways, not to mention how the time aspect of this will have different effects on different companies in the sector. Some actors in the sector increased to full capacity just a couple of days after Russia's invasion of Ukraine; some were not affected at all in the initial stages but will be impacted later on. In other words, the various actors in the defense industry have different cycles in the ongoing rearmament. Understanding the dynamics and knowing where in the cycle the various companies in the sector are is not always easy, but it is essential in order to fully comprehend the various challenges, rates of growth and future potential of defense companies. As mentioned in the CEO's comments for previous quarters, MilDef runs a business that is late-cyclical in this process, and demand for our products will continue to increase as rearmament continues.

Positive outlook for 2025

The underlying demand in the market is strong, as is interest in our products. The uncertain geopolitical situation continues to place defense and security high up on the agenda. All in all this leads me to expect continued strong demand in 2025 and for many years into the future. MilDef is well-positioned to benefit from the increase in defense expenditure and we are maintaining our focus on delivering long-term profitable growth.

Daniel Ljunggren, President and CEO of MilDef Group

MILDEF'S FINANCIAL DEVELOPMENT

ORDER STATUS

The columns in the chart show MilDef's order intake over the last 12 months (LTM) in SEK million. Order intake is the total orders received during the period in question.

The columns in the chart show MilDef's order backlog at the end of each calendar quarter in SEK million. Delivery may take place over a number of years.

The pie chart above shows future planned deliveries by year in SEK m and is based on MilDef's order backlog at the end of the period. The actual outcome may differ significantly from the above planned deliveries, above all due to delays.

Order backlog by planned deliveries (SEK m) Change in order backlog January–March 2025 (SEK m)

Order backlog as of January 1, 2025	2,055
Order intake January–March 2025	404
Sales January–March 2025	-340
Sales January–March 2025 not impacting order backlog	10
Order backlog acquired in the period	693
Currency effect in order backlog during the period	-56
Order backlog as of March 31, 2025	2,766

The table above presents the development of MilDef's order backlog in SEK m during the first three months, and the size of the components included, to arrive at the difference in the order backlog as of March 31, 2025 in comparison with January 1, 2025.

MILDEF'S FINANCIAL DEVELOPMENT

NET SALES

The columns above show MilDef's net sales for full years 2021–2024 and for January–March 2021–2025.

Increase of 19% 881 1 100 1 308 0 200 400 600 800 1 000 1 200 1 400 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025

The columns above show MilDef's net sales over the last 12 months (LTM) in SEK million.

ADJUSTED OPERATING PROFIT (EBITA) AND ADJUSTED OPERATING MARGIN (EBITA)

Each column in the diagram above shows MilDef's operating profit (EBITA) over the last 12 months (LTM) in SEK million, adjusted for non-recurring items.

The chart above shows MilDef's operating margin (EBITA) over the last 12 months (LTM) as a percentage, adjusted for non-recurring items. The adjusted EBITA margin is stated as a percentage of net sales. MilDef considers the adjusted EBITA margin to be a useful indicator to measure the Group's operational efficiency.

FINANCIAL OVERVIEW

Profit/loss items and cash flow are compared with the corresponding period the previous year. The balance sheet items refer to the end of the period and are compared with the corresponding date the previous year.

First quarter: January–March 2025

Order status

The order intake saw strong growth in the first quarter compared with the first quarter of 2024. The order intake increased in the period by 87.9% to SEK 404 million, compared with SEK 215 million in the first quarter of 2024. The strongest growth during the quarter was in the Nordic market. The underlying trend in all markets remains positive. The acquisition of roda made a positive contribution of SEK 69 million to the quarter's order intake, as well as an acquired order backlog of SEK 693 million.

Net sales

Net sales increased in the first quarter of 2025 by 46% compared with the same quarter the previous year and amounted to SEK 340 million (232). Growth related to the acquisition of roda amounted to SEK 66 million. Organic growth was 18% and acquisition-driven growth made up 28% of the total growth rate. Development during the quarter was in line with the Company's expectations, with all markets driving growth, except for North America.

Gross profit

Gross profit amounted to SEK 163 million (112), equivalent to a gross margin of 48.1% (48.4). The Company's gross profit may vary quarter on quarter depending on sales volumes, and the gross margin may vary based on the product and customer mix. The roda acquisition led to an increase in the Group's gross profit in the first quarter of 2025, while the lower gross margin on roda's products is having a negative impact on the Group's gross margin.

Operating expenses

Operating expenses amounted to SEK 155 million (119). Non-recurring items during the period of SEK -1.6 million were reported, partly in the form of acquisition costs relating to the roda acquisition and partly from a reversal of costs for goods sold covered by the restructuring reserve made in the fourth quarter of 2024. The underlying operating costs amounted to SEK 156 million (119). These increased during the period in an amount equivalent to SEK 37 million compared with the first quarter of 2024. The cost increase is related to the acquisition of roda, which accounts for SEK 15 million of the increase. Exchange rate effects also impacted

the quarter's operating costs negatively. Another reason for the cost increase is the Company's strong growth.

The Company's underlying operating expenses increased sequentially by 16% in the first quarter of 2025 compared with the fourth quarter of 2024. The Company's operating expenses are rising due to acquisition-related operating expenses and negative exchange rate effects. The underlying costs as a percentage of sales and excluding non-recurring items were 46.0% (51.4) in the first quarter of 2025.

Non-recurring items

During the quarter, acquisition costs relating to the acquisition of roda were reported at SEK 1 million. In addition, the cost of goods sold covered by the restructuring reserve in the fourth quarter of 2024 were reversed in the amount of SEK 2.6 million.

Operating profit (EBIT)

Operating profit (EBIT) in the first quarter of 2025 amounted to SEK 8.7 million (-6.8). This is equivalent to an operating margin of 2.6% (-2.9). Non-recurring items as described above impacted operating profit for the period by SEK 1,6 million. Adjusted operating profit (EBIT) amounted to SEK 7.1 million (-6.8), which corresponds to an operating margin of 2.1% (-2.9).

Adjusted operating profit (EBITA)

Adjusted operating profit before amortization and impairment of intangible non-current assets amounted to SEK 15.7 million (1.2) during the quarter, equivalent to a margin of 4.6% (0.5). Amortization and impairment of intangible non-current assets amounted to SEK 8.6 million (8.0). The acquisition of roda contributed SEK 6.3 million to the quarter's operating profit. The adjusted operating profit includes adjustments for nonrecurring items as described above.

Financial items

Net financial expense for the period amounted to SEK -12.9 million (-6.5). The shift is largely due to negative exchange rate changes, as well as increased interest expense on loans taken out to finance the acquisition of roda.

Tax

The first quarter's tax effect impacted net profit in the amount of SEK 4.1 million (1.9).

Net profit for the quarter

Profit after tax amounted to SEK -0.1 million (-11.4). Earnings per share before dilution amounted to SEK 0.00 (-0.29) and earnings per share after dilution to SEK 0.00 (-0.28).

FINANCIAL OVERVIEW

Cash flow

Cash flow for the quarter was recognized at SEK -319.0 million (29.4). Free cash flow for the quarter amounted to SEK -75.2 million (20.9). The acquisition of roda in the first quarter impacted the quarter's cash flow in the net amount of SEK -663.2 million.

Cash flow from operating activities amounted to SEK -70.8 million (23.4). Cash flow from changes in working capital amounted to SEK -71.6 million (30.4). The change is mainly due to a high proportion of deliveries late in the quarter, with payments falling due in the second quarter, which negatively impacts the first quarter's cash flow.

Cash flow from investing activities amounted to SEK -667.6 million (-2.5). The decrease is a result of the acquisition of roda.

Cash flow from financing activities amounted to SEK 419.4 million (8.6). The change is mainly explained by the Company's signing of a new credit facility for EUR 40 million to finance the acquisition of roda. Credit facility repayment instalments amounted to SEK 10.8 million and repayment of a past credit facility obtained in connection with the acquisition of Handheld Group in September 2022, amounted to SEK 3.3 million in the first quarter of 2025. Amortization of leases was charged to financing activities in the amount of SEK -5.5 million (-5.7) in the quarter.

Equity

The Group's equity amounted to SEK 1,407.9 million (835.3) at the end of the period. The equity/assets ratio as of March 31, 2025 was SEK 51.0% (56.4). The "Incentive program 2021/2025" described in the 2024 Annual and Sustainability Report has been open for subscribing for shares since September 1, 2024. This has been utilized by most participants on a number of occasions and the Company has therefore issued new shares for the program. In the first quarter of 2025 this resulted in issue proceeds of SEK 3.7 million. As part of the payment consideration for the acquisition of roda, MilDef issued 1,374,047 new shares at a price of SEK 229 per share on March 5, 2025. This resulted in issue proceeds of SEK 314.7 million before transaction costs. The total number of shares following the issue was 47,042,445 and the share capital is SEK 11,760,611.

Net working capital

Net working capital amounted to SEK 540 million (368) at the end of the period. The increase in net working capital compared with the same period the previous year was driven by the acquisition of roda. Compared with the same period the previous year, net working capital in relation to net sales increased to 41.2% (33.4). For MilDef excluding roda, net working capital in relation to net sales was 32.6%.

SEK m	March 31, 2025	March 31, 2024	Dec. 31, 2024
Inventories	480.7	316.5	234.4
Accounts receivable	327.1	169.5	330.1
Other current receivables	219.8	106.3	87.4
Accounts payable	-164.0	-78.1	-85.6
Other current liabilities	-324.1	-146.6	-235.3
Net working capital	539.5	367.5	330.9
as a percentage of net sales LTM (%)	41.2%	33.4%	27.6%

Net debt and cash and cash equivalents

The net debt including lease liabilities amounted to SEK 499 million (268) at the end of the period. Cash and cash equivalents as of March 31, 2025 amounted to SEK 208 million (113). At the end of the period there was an unutilized revolving overdraft facility of SEK 120 million (10.4). Net debt at the end of the period in relation to adjusted operating profit (EBITDA) over the last 12-month period, excluding the effects of IFRS 16 Leases, amounted to 1.8 (1.2). Calculated including the effects of IFRS 16, the net debt/equity ratio was 2.6 (1.9).

SEK m	March 31, 2025	March 31, 2024	Dec. 31, 2024
Other interest-bearing liabilities	554.4	278.5	133.9
Lease liabilities	152.3	102.7	86.5
Cash and cash equivalents	-207.9	-113.2	-530.4
Net debt incl. IFRS 16	498.8	268.0	-310.0
relative to adjusted operating profit (EBITDA) LTM, times	2.6	1.9	-1.7

Parent Company

The operations of MilDef Group AB (corp. reg. no. 556893- 5414), registered office in Helsingborg, Sweden, are primarily focused on the Group's strategic development and Group-wide functions such as HR, IT, finance, etc. Most of the funds from the Group's external financing are held within the Parent Company. As of the end of the period the Company had 60 employees.

MilDef Group AB's share

MilDef Group AB (publ) has been listed on NASDAQ Stockholm since June 4, 2021 in the Industrial Goods and Services sector. The share's ISIN code is SE0016074249. The share is traded under the ticker MILDEF. A trading unit is one (1) share. As of January 1, 2023 the share is being traded on NASDAQ Stockholm in the Mid Cap Index.

Share capital and number of shares

The total number of shares as of March 31, 2025 was 47,042,445 (39,859,566) and the share capital was SEK 11,760,611.25 (9,964,891.50). All of the shares are ordinary shares carrying the same voting rights. The shares have a quota value of SEK 0.25. At the end of the period the closing price was SEK 207.50 and the market value was SEK 9,761 million. The total number of shareholders at the end of the period was 39,150.

Accounting principles

MilDef prepares its consolidated accounts in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company applies the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities, and the Annual Accounts Act. The accounting principles applied correspond to the accounting and valuation principles presented in the 2024 Annual Report. The 2024 Annual Report has been available at www.mildef.com since April 10, 2025.

Judgements and estimates in the financial statements

Preparation of the financial statements in accordance with IFRS requires the Management Team to make judgements and estimates that affect the application of the accounting principles and the carrying amounts of assets, liabilities, revenue and expenses. Actual outcomes may deviate from these estimates and judgements. Estimates and assumptions are reviewed on a regular basis. Changes in estimates are reported in the period the change is made if the change has only affected that period, or in the period the change is made and in future periods if the change affects both the current period and future periods.

Alternative performance measures

MilDef applies the guidelines for alternative performance measures issued by ESMA, the European Securities and Markets Authority. Alterative performance measures are financial metrics that cannot be directly derived or deduced from the financial statements. These financial metrics are intended to facilitate the Management Team's and investors' analysis of the Group's development. Investors should not regard these alternative performance measures as substitutes for the financial statements prepared in accordance with IFRS, but rather as complements to the statements. Definitions of the alternative performance measures are presented on page 21.

Segments

MilDef's operations are treated as one segment as this reflects the Group's business, financial monitoring and management structure. MilDef's CEO, who is the chief operating decisionmaker, monitors and analyzes results and financial position for the Group as a whole. The CEO does not monitor results on a disaggregated level lower than at consolidation level. The CEO thus also decides on allocation of resources and takes strategic decisions based on consolidation as a whole. Based on IFRS 8, the analysis concludes that the MilDef Group consists of only one reporting segment.

Volatility between periods

MilDef's sales and profits are affected by quarter-on-quarter volatility. Year-on-year comparisons between quarters can be made. The Group's strongest quarter in terms of sales and profits is normally the fourth quarter.

MilDef's markets are characterized by substantial procurements at irregular intervals. The lead times are often long due to extensive administrative processes and long sales cycles. Both order intake and sales may fluctuate significantly between the quarters. The Company's development should therefore be evaluated in a longer perspective and not based on an individual quarter or year.

Significant events during the first quarter of 2025

On March 6 MilDef completed the acquisition of roda computer GmbH ("roda"). All regulatory approvals from Germany, France and the UK were received according to plan. The acquisition strengthens MilDef's presence in Europe and gives the company access to important market channels. In the first

quarter MilDef's Board of Directors, based on authorization from an extraordinary shareholders' meeting on December 9, 2024, resolved on an issue in kind of 1,374,047 new shares for the sellers of roda as a portion of the purchase consideration. The roda company is consolidated in the MilDef Group as of March 6, 2025.

On March 11 MilDef won a cybersecurity contract with Clavister worth SEK 40 million. On multiple occasions Clavister has ordered MilDef's hardware for rugged network equipment intended for installation in BAE System Hägglund's CV90 combat vehicles. The first in the series of deliveries will take place at the beginning of 2027.

Acquisition of roda computer GmbH

On November 13, 2024, MilDef announced that a binding agreement had been signed to acquire 100% of voting shares of roda. Roda is a supplier of military IT solutions with a strong market presence in Central Europe. The acquisition was completed at the 6th of March 2025. The acquisition will significantly strengthen MilDef's presence in Europe as one of Europe's leading actors within tactical and rugged IT for security and defence and will give MilDef access to important market channels.

The Board of Directors of MilDef has, pursuant to the authorisation granted by the Extraordinary General Meeting on 9 December 2024, resolved on an issue in kind, which forms part of the purchase price for the acquisition of roda as was communicated when the acquisition was announced on 13 November 2024. In addition to the cash consideration of EUR 70 million, MilDef issues a total of 1,374,047 new shares in MilDef Group AB as part of the consideration to the sellers of roda, which corresponds to approximately EUR 28.7 million based on MilDef's share price of SEK 229.00 as per 5 March 2025. The preliminary cash consideration will be adjusted for net debt and net working capital items at closing.

The parties also agreed on an additional purchase price in cash that is dependent on the EBIT level for financial year 2024 as determined in the audited financial statements for roda. The additional purchase price is estimated to EUR 3.9 million reflecting time value of money.

The fair value of acquired assets and liabilities presented is based on the consolidated financial information for roda at the acquisition date. The purchase price allocation presented below is preliminary. EUR values are translated to SEK in below summary with 10,96 SEK/EUR, the number of shares issued were 1,374,047.

	EUR	SEK
Total purchase consideration	99.9	1,095.5
Assets
Intangible non-current assets	33.3	365.0
Property, plant and equipment	1.8	19.6
Right-of-use assets	4.9	53.2
Deferred tax assets	1.7	18.9
Inventories	21.5	235.3
Accounts receivable	8.8	96.9
Other current receivables	2.6	28.7
Cash and cash equivalents	9.5	104.2
Liabilities
Non-current interest-bearing liabilities	4.2	45.6
Provisions	0.1	1.0
Deferred tax liabilities	10.9	119.4
Accounts payable	7.8	85.0
Current interest-bearing liabilities	0.7	7.5
Other current liabilities	13.0	143.0
Acquired identifiable net assets	47.5	520.3
Goodwill	52.5	575.1
Total acquired net assets	99.9	1,095.5
The purchase consideration consists of
Cash payment	70.0	767.3
Adjustment of net cash and working capital*	2.7	29.8
Shares issued, at fair value	28.7	314.7
Contingent consideration	3.9	43.2
Total purchase consideration	99.9	1,095.5
Cash flow attributable to the acquisition
Cash payment of purchase consideration	-70.0	-767.3
Cash in the acquired company	9.5	104.2
Total	-60.5	-663.2

* Estimated adjustments for net liabilities and working capital items based on the

Acquisition-related expenses -1.1 -11.8 Net cash flow -61.6 -675.0

preliminary balance sheet as of February 28, 2025. The final cash adjustment will be calculated based on the balance sheet as of the acquisition date.

The fair value of acquired assets and liabilities presented in the Annual report was based on the consolidated financial information for roda as of 31 December 2024, and should have been seen as indicative. In the Q1 2025 report the assets and liabilities presented is based on the the consolidated financial information for roda as of the acquisition date.

The preliminary calculated goodwill mainly consists of skilled workforce, future customers, future technology and synergies. No goodwill is expected to be deductible for tax purposes. Intangible assets identified in the preliminary purchase price allocation consists primarily of customer relations and order book.

Transaction costs have been expensed as incurred. SEK 10.8 million was expensed in 2024 and the remaining SEK 1.0 million was expensed in 2025.

In the preliminary acquisition analysis, the company measured the acquired lease liabilities using the present value of the remaining lease payments on the acquisition date. Right-of-use assets are measured at an amount equivalent to the lease liabilities and adjusted to reflect the favorable terms in the lease in relation to the market terms.

On the acquisition date the fair value of inventories amounted to SEK 235.3 million and the fair value of accounts receivable was SEK 96.9 million. The gross amount of accounts receivable was SEK 96.9 million and it is expected that the full contract amount can be collected.

The roda company contributed revenue of SEK 65.5 million and net profits of SEK 8.7 million to the Group for the period March 6 to March 31, 2025.

If the acquisition had taken place on January 1, 2025 the consolidated pro forma revenue and pre-tax earnings for the year ending on March 31, 2025 would have been SEK 460.6 million and SEK 14.1 million respectively. These amounts have been calculated with the help of the subsidiaries' profits as well as adjustments for differences in accounting principles between the Group and the acquired subsidiaries. Also reflected is interest expense relating to bank financing of EUR 40 million to cover parts of the cash payments for the shares, as well as amortization costs for the intangible assets arising in the preliminary acquisition analysis.

Significant events after the end of the period

The MilDef subsidiary Westek signed a contract worth SEK 45 million with a global defense group. This is the single largest order to date for Westek and deliveries will take place in 2026. The order value is SEK 45 million and additional contracts are expected to follow under the program in 2025 and onwards. FMV signed a contract with MilDef worth SEK 126 million. As part of the accelerated defense rearmament, the Swedish Defence Materiel Administration (FMV) has decided to replace older IT equipment with new from MilDef. In total, this involves IT equipment for digitization of the Swedish army. Deliveries will take place in 2025.

Acquisitions and acquisition analysis

On the acquisition date a preliminary acquisition analysis is performed based on estimates and judgments that are as accurate as possible. This analysis may, however, need to be adjusted at some point in the future. All acquisition analysis is subject to final adjustments no later than twelve months after the acquisition date.

Employees

The number of employees in the Group, recalculated to fulltime equivalents (FTEs), was 466 (311) at the end of the period. 341 (230) of the employees were men and 125 (81) were women. The average number of FTEs during the period was 331, compared with 308 in the same period the previous year.

Research and development

MilDef conducts extensive research and development. This is considered a critical factor for continued organic growth and to penetrate new markets. It is important to quickly identify changing customer requirements and transform them into the best solutions for every given market situation. Around 8% of MilDef's employees work in R&D-related positions. Further resources were added in 2025 to the R&D department – both contracted staff and MilDef employees – to handle an increased number of projects, many of which are highly complex.

Significant risks and factors of uncertainty

MilDef's operations and profits are affected by a number of external and internal factors. A constant process is under way to identify all of the risks that occur and to assess how to manage each risk. MilDef's risks can be divided into market-related, operational and financial risk. For a more detailed description of financial risk, see pages 77–79 in the Company's 2024 Annual and Sustainability Report. No other material financial risks, other than those described there, have been identified.

Transactions with related parties

No board member or senior executive has or has had any direct or indirect participation in any business transactions with Group companies during the current or previous financial years on terms that are or were unusual in nature. Nor has any Group company provided loans or guarantees to, or entered into any surety agreement for, any of the members of the Board or senior executives.

Contingent liabilities

There have been no changes in the Group's contingent liabilities. These are described in more detail on page 108 in Note 21 of the 2024 Annual and Sustainability Report.

Disputes

The Company was not a party in any material dispute as of the end of the period.

Annual General Meeting 2025

The Board has decided to hold the Annual General Meeting in Helsingborg on May 22, 2025. Notice of the meeting will be given in due order.

Forward-looking statements

This report may contain forward-looking statements based on the Management Team's current expectations. Even though management considers the expectations expressed in such forward-looking statements to be reasonable, there can be no guarantee that these expectations will prove to be correct. Consequently, future outcomes may vary significantly compared with those expressed in the forward-looking statements, depending on factors such as changed conditions in the market for MilDef's products and more general changes in, for example, the economy, markets and competition, legal requirements and other political measures, and fluctuations in exchange rates.

Dividend proposal

The Board of Directors is proposing that a dividend be set at SEK 0.50 per share for the 2024 financial year. The proposed record date for the right to receive a dividend is May 26, 2025. If the Annual General Meeting votes in favor of the proposal, the dividend is expected to be paid out on May 30, 2025.

Audit review

This report has not been reviewed by the Company's auditors.

Condensed consolidated statement of comprehensive income

	January 1–March 31		Last 12 months	Full year
SEK m Note	2025	2024	April 2024– March 2025	2024
Net sales 1	339.5	231.9	1,308.5	1,200.9
Cost of goods sold	-176.3	-119.6	-668.5	-611.8
Gross profit	163.2	112.3	639.9	589.0
Selling expenses	-89.6	-70.9	-297.8	-279.0
Administrative expenses	-29.6	-24.7	-110.6	-105.7
Research and development expenses	-23.9	-21.6	-86.3	-84.0
Acquisition costs 2	-1.0	-	-11.8	-10.8
Restructuring costs 2	2.6	-	-307.4	-310.0
Other operating income/expenses	-13.1	-2.0	-19.5	-8.4
Operating profit	8.7	-6.8	-193.4	-209.0
Net financial items	-12.9	-6.5	-20.1	-13.6
Profit after financial items	-4.2	-13.3	-213.5	-222.6
Income tax	4.1	1.9	4.5	2.2
Profit for the period	-0.1	-11.4	-209.0	-220.3
Other comprehensive income for the Group
Items that may be reclassified subse quently to profit or loss
Translation differences	-12.1	2.2	-11.8	2.4
Other comprehensive income for the period	-12.1	2.2	-11.8	2.4
Comprehensive income for the period	-12.2	-9.3	-220.8	-217.9
Earnings per share	January 1–March 31		Last 12 months	Full year
	2025	2024	April 2024– March 2025	2024
Number of shares at year-end	47,042,445	39,859,566	47,042,445	45,573,068
Weighted average number of shares in the period before dilution	45,971,074	39,859,566	42,133,228	40,598,903
Weighted average number of shares in the period after dilution	46,132,795	40,301,066	42,472,560	41,013,824

Earnings per share before dilution (SEK) 0.00 -0.29 -4.96 -5.43 Earnings per share after dilution (SEK) 0.00 -0.28 -4.92 -5.37 comprehensive income

Condensed consolidated statement of Condensed consolidated balance sheet

SEK m Note	March 31, 2025	Dec. 31, 2024	March 31, 2024
ASSETS
Non-current assets
Capitalized product development expenses	11.9	12.7	65.0
Acquisition-related intangible assets	1,298.4	378.8	572.6
Other intangible non-current assets	1.3	0.2	0.3
Right-of-use assets	135.7	70.1	99.4
Other property, plant and equipment	40.0	20.3	20.6
Deferred tax assets	34.0	19.2	16.4
Other financial non-current assets	1.6	0.3	0.3
Total non-current assets	1,522.9	501.5	774.5
Inventories	480.7	234.4	316.5
Accounts receivable	327.1	330.1	169.5
Other current receivables	219.8	87.4	106.3
Cash and cash equivalents	207.9	530.4	113.2
Total current assets	1,235.5	1,182.2	705.4
TOTAL ASSETS	2,758.4	1,683.7	1,479.9
EQUITY AND LIABILITIES
Equity	1,407.9	1,101.7	835.3
Non-current liabilities
Lease liabilities	115.8	60.7	74.7
Non-current interest-bearing liabilities	496.5	102.5	125.0
Deferred tax liabilities	130.6	24.8	38.7
Total non-current liabilities	742.9	188.0	238.4
Current liabilities
Current interest-bearing liabilities	57.9	31.4	153.5
Lease liabilities	36.5	25.8	28.0
Accounts payable	164.0	85.6	78.1
Other provisions	25.1	15.8	1.7
Other current liabilities	324.1	235.3	145.0
Total current liabilities	607.7	393.9	406.2
TOTAL EQUITY AND LIABILITIES	2,758.4	1,683.7	1,479.9

Condensed consolidated statement of changes in equity

SEK m	March 31, 2025	Dec. 31, 2024	March 31, 2024
Equity, opening balance	1,101.7	844.6	844.6
Comprehensive income for the period	-12.2	-217.9	-9.3
New share issues	318.4	495.0	-
Dividend	-	-19.9	-
Equity, closing balance	1,407.9	1,101.7	835.3

Condensed consolidated cash flow statement

	January 1–March 31		Last 12 months	Full year
SEK m	2025	2024	April 2024– March 2025	2024
Cash flow from operating activities
Operating profit	8.7	-6.8	-193.4	-209.0
Reversal of depreciation, amortization and impairment	16.2	15.5	304.1	303.4
Other non-cash items	-2.9	-2.7	76.8	77.1
Net interest income/expense	-12.9	-6.3	-20.1	-13.5
Income taxes paid	-8.3	-6.8	-23.6	-22.1
Change in working capital	-71.6	30.4	-93.5	8.4
Cash flow from operating activities	-70.8	23.4	50.2	144.4
Cash flow from investing activities
Investments in intangible non-current assets	-	-0.9	-8.8	-9.8
Investments in property, plant and equipment	-4.4	-1.7	-13.4	-10.7
Acquisition of subsidiaries, net of acquired cash and cash equivalents	-663.2	-	-676.0	-12.8
Change in other non-current receivables	-	-	-	-
Cash flow from investing activities	-667.6	-2.5	-698.3	-33.3
Cash flow from financing activities
Dividend	-	-	-19.9	-19.9
New share issues, net	3.7	-	498.7	495.0
Increase in liabilities to credit institutions	435.3	21.8	325.7	-87.8
Repayment of interest-bearing liabilities	-14.2	-7.5	-36.7	-30.0
Repayment of lease liabilities	-5.5	-5.7	-21.9	-22.2
Cash flow from financing activities	419.4	8.6	745.9	335.1
Total cash flow for the period	-319.0	29.4	97.8	446.2
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period	530.4	81.5	113.2	81.5
Exchange rate difference in cash and cash equivalents	-3.4	2.2	-3.1	2.7
Cash and cash equivalents at end of period	207.9	113.2	207.9	530.4

Quarterly overview for the Group

	2025		2024			2023
SEK m	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	339.5	417.5	249.9	301.5	231.9	352.8	226.5	288.8	283.2
Cost of goods sold	-176.3	-219.8	-125.0	-147.5	-119.6	-182.8	-113.2	-144.0	-155.0
Gross profit	163.2	197.8	124.9	154.0	112.3	170.0	113.3	144.8	128.2
Operating expenses	-154.5	-455.8	-103.1	-120.0	-119.2	-128.5	-101.9	-111.2	-106.5
Operating profit	8.7	-258.0	21.8	34.1	-6.8	41.4	11.4	33.6	21.7
Net financial items	-12.9	-1.7	-0.5	-5.0	-6.5	-4.6	-6.0	-5.4	-3.6
Profit before tax	-4.2	-259.7	21.4	29.0	-13.3	36.9	5.4	28.2	18.1
Income tax on profit for the period	4.1	10.2	-4.1	-5.7	1.9	-11.3	0.4	-6.9	-1.8
Profit for the period	-0.1	-249.5	17.2	23.3	-11.4	25.7	5.8	21.3	16.3

Multi-year overview for the Group

	2024	2023	2022	2021	2020
Net sales, SEK m	1,201	1,151	739	470	398
Gross margin	49.0%	48.3%	47.7%	44.7%	45.7%
Adjusted operating margin (EBITA)	12.5%	12.2%	6.1%	4.2%	16.9%
Adjusted operating margin (EBIT)	9.3%	9.4%	4.0%	1.8%	15.4%
Adjusted profit margin (EBT)	8.2%	7.7%	2.6%	1.3%	15.0%
Earnings per share before dilution, SEK	-5.43	1.73	0.38	-0.03	1.83 *
Earnings per share after dilution, SEK	-5.37	1.71	0.37	-0.03	1.83 *
Cash and cash equivalents, SEK m	530.4	81.5	59.9	169.2	46.8
Cash flow from operating activities, SEK m	144.4	54.5	-76.8	-55.5	61.7
Total assets, SEK m	1,684	1,526	1,394	808	368
Equity, SEK m	1,102	845	788	568	133
Equity/assets ratio	65.4%	55.4%	56.5%	70.3%	36.0%
Return on capital employed	-15.7%	10.1%	3.4%	0.0%	30.6%
Return on equity	-22.6%	8.5%	2.1%	-0.2%	36.4%
Equity per share, SEK	24.17	21.19	19.77	15.61	5.71
Dividend per share, SEK	0.50	0.50	-	0.75	0.75
Number of employees at year-end	327	309	291	188	119
Average number of employees	319	302	233	154	97

*To enable year-on-year comparisons, data for 2020 has been adjusted for the 2:1 share split implemented in 2021.

Condensed Parent Company income statement

	January 1–March 31		Last 12 months	Full year
SEK m	2025	2024	April 2024– March 2025	2024
Net sales	32.1	30.0	113.4	111.2
Selling expenses	-10.8	-9.7	-42.6	-41.5
Administrative expenses	-12.9	-11.5	-47.5	-46.1
Research and development expenses	-8.3	-7.4	-29.9	-29.1
Acquisition costs	-	-	-	-
Restructuring costs	-	-	-4.9	-4.9
Other operating income/expenses	-10.0	1.8	-11.5	0.2
Operating profit	-9.8	3.3	-23.1	-10.2
Net financial items	-12.4	1.3	-252.2	-238.5
Profit after financial items	-22.2	4.6	-275.3	-248.7
Year-end appropriations	-	-	27.1	27.1
Profit before tax	-22.2	4.6	-248.1	-221.6
Income tax	4.8	-0.9	4.8	-0.9
Profit for the period	-17.5	3.6	-243.4	-222.5
Other comprehensive income
Profit for the period	-17.5	3.6	-243.4	-222.5
Other comprehensive income
Items that may be reclassified subsequently to profit or loss	-	-	-	-
Other comprehensive income for the period	-	-	-	-
Comprehensive income for the period	-17.5	3.6	-243.4	-222.5

Condensed Parent Company balance sheet

SEK m	March 31, 2025	Dec. 31, 2024	March 31, 2024
ASSETS
Non-current assets
Property, plant and equipment	6.3	6.6	7.8
Financial non-current assets	547.3	542.6	781.3
Total non-current assets	553.6	549.1	789.1
Current receivables from Group companies	1,376.3	255.6	295.4
Other current receivables	29.9	28.7	16.7
Cash and cash equivalents	82.1	474.4	30.7
Total current assets	1,488.2	758.7	342.7
TOTAL ASSETS	2,041.8	1,307.8	1,131.8
EQUITY, PROVISIONS AND LIABILITIES
Equity	1,304.1	1,003.2	754.2
Untaxed reserves	3.6	3.6	3.6
Provisions
Charitable contributions	1.4	1.4	-
Restructuring reserve	4.6	4.9	-
Total provisions	6.0	6.3	-
Non-current liabilities
Non-current interest-bearing liabilities	495.7	102.5	234.6
Deferred tax liabilities	-	-	0.9
Total non-current liabilities	495.7	102.5	235.6
Current liabilities
Current interest-bearing liabilities	56.6	30.0	42.5
Current liabilities to Group companies	156.0	139.4	72.5
Accounts payable	2.9	8.1	3.7
Other current liabilities	16.8	14.8	19.8
Total current liabilities	232.4	192.3	138.5
TOTAL EQUITY, PROVISIONS AND LIABILITIES	2,041.8	1,307.8	1,131.8

Condensed Parent Company statement of changes in equity

SEK m	March 31, 2025	Dec. 31, 2024	March 31, 2024
Equity, opening balance	1,003.2	750.6	750.6
Comprehensive income for the period	-17.6	-222.5	3.6
Merger result	-	0.3	-
New share issues	318.7	494.7	-
Dividend	-	-19.9	-
Equity, closing balance	1,304.1	1,003.2	754.2

Notes

Note 1. Net sales by geographic area

		January 1–March 31		Full year
SEK m	2025	2024	April 2024– March 2025	2024
Nordics	184	122	757	695
Europe (excl. Nordics)	97	53	354	310
North America	40	47	146	153
Other countries	19	10	52	43
Total revenue	340	232	1,308	1,201

Note 2. Non-recurring items

		January 1–March 31		Full year
SEK m	2025	2024	April 2024– March 2025	2024
Acquisition-related expenses	1.0	-	11.8	10.8
Restructuring costs	-2.6	-	307.4	310.0
Total	-1.6	-	319.2	320.8

Restructuring costs

In the fourth quarter of 2024 MilDef decided to focus fully on its business in the defense and security domain. Accordingly, the Company intends to integrate the defense industry products of its Handheld subsidiary into the rest of the business and to cease operations in Handheld's other sales segments. As a consequence of this, MilDef has reported an initial restructuring reserve of SEK 310 million made up of the following items:

• Personnel costs SEK 7.6 million
• Cost of premises (lease assets) SEK 12.6 million
• Stock obsolescence SEK 61.0 million
• Impairment of goodwill and brands SEK 185.2 million
• Impairment of capitalized product costs SEK 38.8 million

• Other operating expenses SEK 4.8 million

Total SEK 310.0 million

Alternative performance measures

The Group's performance measures are detailed below. Some of these are defined in accordance with IFRS. Other than these, the Group has identified certain additional performance measures that provide the Company's investors and management with supplementary information to facilitate the assessment of relevant trends as well as the Company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures are therefore to be seen as supplementing the performance measures defined according to IFRS.

	January 1–March 31		Last 12 months	Full year
SEK m	2025	2024	April 2024– March 2025	2024
Operating profit (EBIT)	8.7	-6.8	-193.4	-209.0
Restructuring costs	-2.6	-	307.4	310.0
Acquisition-related expenses	1.0	-	11.8	10.8
Adjusted operating profit (EBIT)	7.1	-6.8	125.7	111.8
Adjusted operating profit (EBIT)	7.1	-6.8	125.7	111.8
Net sales	340	232	1,308	1,201
Adjusted operating margin (EBIT), %	2.1%	-2.9%	9.6%	9.3%
Operating profit (EBITA), SEK m
Operating profit (EBIT)	8.7	-6.8	-193.4	-209.0
Amortization of intangible non-current assets	8.6	8.0	38.4	37.9
Operating profit (EBITA)	17.3	1.2	-155.0	-171.1
Adjusted operating profit (EBITA), SEK m
Operating profit (EBITA)	17.3	1.2	-155.0	-171.1
Restructuring costs	-2.6	-	307.4	310.0
Acquisition-related expenses	1.0	-	11.8	10.8
Adjusted operating profit (EBITA)	15.7	1.2	164.1	149.7
Adjusted operating profit (EBITA)	15.7	1.2	164.1	149.7
Net sales	340	232	1,308	1,201
Adjusted operating margin (EBITA), %	4.6%	0.5%	12.5%	12.5%
Operating profit (EBITDA), SEK m
Operating profit (EBIT)	8.7	-6.8	-193.4	-209.0
Depreciation/amortization	16.2	15.5	67.8	67.1
Operating profit (EBITDA)	24.9	8.7	-125.6	-141.9
Adjusted operating profit (EBITDA), SEK m
Operating profit (EBITDA)	24.9	8.7	-125.6	-141.9
Restructuring costs	-2.6	-	307.4	310.0
Acquisition-related expenses	1.0	-	11.8	10.8
Adjusted operating profit (EBITDA)	23.3	8.7	193.5	178.9
Adjusted operating profit (EBITDA)	23.3	8.7	193.5	178.9
Net sales	340	232	1,308	1,201
Adjusted operating margin (EBITDA), %	6.9%	3.7%	14.8%	14.9%

Available cash and cash equivalents

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Cash and bank balances	207.9	530.4	41.5	106.9	113.2
Unutilized overdraft facility	120.0	120.0	84.7	36.1	10.4
Available cash and cash equivalents	327.9	650.4	126.2	143.0	123.6

Working capital including cash and bank balances

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Total current assets excluding cash and bank balances	1,027.5	651.9	609.3	625.1	592.3
Cash and bank balances	207.9	530.4	41.5	106.9	113.2
Current liabilities, non-interest-bearing	-488.1	-321.0	-232.6	-234.9	-224.8
Working capital including cash and bank balances	747.4	861.3	418.2	497.1	480.7
Net sales last 12 months	1,308	1,201	1,136	1,113	1,100
Working capital including cash and bank balances in relation to net sales, %	57.1%	71.7%	36.8%	44.7%	43.7%

Working capital excluding cash and bank balances

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Inventories	480.7	234.4	326.4	305.0	316.5
Current receivables	546.9	417.5	282.8	320.2	275.7
Current liabilities, non-interest-bearing	-488.1	-321.0	-232.6	-234.9	-224.8
Working capital excluding cash and bank balances	539.5	330.9	376.6	390.3	367.5
Net sales last 12 months	1,308	1,201	1,136	1,113	1,100
Working capital excluding cash and bank balances in rela tion to net sales, %	41.2%	27.5%	33.2%	35.1%	33.4%

Return on capital employed

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Profit after financial items, last 12 months	-213.5	-222.6	74.0	57.9	57.2
Financial expense, last 12 months	-27.6	-23.2	-25.0	-22.3	-30.5
Profit before financial expense, last 12 months	-186.0	-199.4	99.0	80.1	87.7
Capital employed at beginning of period	1,216	1,212	1,208	1,129	1,118
Capital employed at end of period	2,115	1,322	1,117	1,215	1,216
Average capital employed	1,666	1,267	1,163	1,172	1,167
Return on capital employed, %	-11.2%	-15.7%	8.5%	6.8%	7.5%

Return on equity

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Profit after tax, last 12 months	-209.0	-220.3	54.8	43.2	41.3
Equity at beginning of period	835	845	829	821	796
Equity at end of period	1,408	1,102	852	840	835
Average equity	1,122	973	840	830	816
Return on equity, %	-18.6%	-22.6%	6.5%	5.2%	5.1%

Net debt/EBITDA

SEK m	March 31, 2025	Dec. 31, 2024	Sept. 30, 2024	June 30, 2024	March 31, 2024
Non-current liabilities, interest-bearing	612.3	163.2	172.8	184.9	199.7
Current liabilities, interest-bearing	94.4	57.2	92.3	190.4	181.5
Cash and bank balances	-207.9	-530.4	-41.5	-106.9	-113.2
Net debt incl. IFRS 16	498.8	-310.0	223.5	268.4	268.0
Operating profit, last 12 months	-193.4	-209.0	90.5	80.0	79.6
Depreciation, amortization and impairment, last 12 months	67.8	67.1	70.1	68.6	63.1
Non-recurring items, last 12 months	319.2	320.8	-	-	-
Adjusted EBITDA, last 12 months	193.5	178.9	160.6	148.6	142.7
Net debt/EBITDA, multiple	2.6	-1.7	1.4	1.8	1.9

Pro forma full year 2024

SEK m	MilDef	roda
Pro forma, operating profit (EBITA)
Pro forma, operating profit (EBIT)	-209	158.4
Pro forma, amortization of intangible non-current assets	37.9	0.9
Pro forma, adjusted operating profit (EBITA)	-171.1	159.3
Pro forma, adjusted operating profit (EBITA)	-171.1	159.3
Pro forma, restructuring costs	310	-
Pro forma, acquisition-related expenses	10.8	-
Pro forma, adjusted operating profit (EBITA)	149.7	159.3
Pro forma, adjusted operating profit	149.7	159.3
Pro forma, net sales	1,201	930
Pro forma, adjusted operating margin (EBITA), %	12.5%	17.1%

BOARD OF DIRECTORS' ASSURANCE

Board of Directors' assurance

The Board of Directors and CEO hereby provide an assurance that this interim report presents fairly the operations, position and results of the Parent Company and the Group, and describes material risks and uncertainties faced by the Parent Company and the other companies included in the Group.

MilDef Group AB (publ) Helsingborg, April 29, 2025

Björn Karlsson Chair

Christian Hammenborn Board member

Bengt-Arne Molin Board member

Jan Andersson Board member

Charlotte Darth Board member

Daniel Ljunggren Chief Executive Officer Marianne Trolle Board member

Lennart Pihl Board member

DEFINITIONS

NUMBER OF OUTSTANDING SHARES

Number of registered shares less repurchased shares, held by the Company.

RETURN ON EQUITY

Profit after tax attributable to owners of the parent as a percentage of average equity.

RETURN ON CAPITAL EMPLOYED

Profit before tax after reversal of financial expense, on a last 12-month basis, expressed as a percentage of average capital employed.

EBIT

Earnings before interest and taxes according to the income statement.

EBITA

Operating profit excluding amortization of intangible non-current assets.

EBITDA

Earnings before interest, taxes, depreciation and amortization of property, plant and equipment and intangible non-current assets.

NON-RECURRING ITEMS

Non-recurring items are specific material items that are reported separately because of their size or frequency, e.g. restructuring costs, impairment, divestments and acquisition-related expenses.

NET DEBT

Long-term and short-term interest-bearing liabilities less income-bearing financial assets.

FREE CASH FLOW

Cash flow from operating activities and cash flow from investing activities excluding acquisitions and divestments of intangible non-current assets and of property, plant and equipment.

ORGANIC GROWTH

Annual growth in net sales excluding acquisition-related net sales, calculated as increase in net sales excluding acquisition-related net sales compared with the previous year, expressed as a percentage.

WORKING CAPITAL

Current assets, excluding cash and cash equivalents and current tax assets, minus interest-free current liabilities, excluding current tax liabilities.

OPERATING MARGIN

Operating profit as a percentage of net sales.

EQUITY/ASSETS RATIO

Equity as a percentage of total assets.

CAPITAL EMPLOYED

Average total assets less non-interest-bearing liabilities and provisions.

EARNINGS PER SHARE BEFORE DILUTION

Profit after tax attributable to owners of the parent as a percentage of the average number of outstanding shares.

EARNINGS PER SHARE AFTER DILUTION

Profit after tax attributable to owners of the parent as a percentage of average number of outstanding shares plus average number of shares added upon conversion of outstanding convertibles and warrants.

MILDEF IN BRIEF

BRIEF FACTS

MilDef's shares are listed on the NASDAQ Stockholm Mid Cap Index. Ticker: MILDEF.

• Supplier of tactical IT solutions
• Founded in 1997
• Stock exchange listing on June 4, 2021
• Around 450 employees
• Key markets: Nordics, Europe and selected NATO nations
• Customers: Security and defense
• Product portfolio: Hardware, software and services

VISION

Your number one choice for tactical IT.

MISSION

In an ever-changing and increasingly digitalized world, there is an urgent need for tactical IT systems – systems that are robust, fit for purpose and produce the desired effect. MilDef will provide unique solutions to meet those needs with high quality, speed and accuracy.

BUSINESS CONCEPT

MilDef's business concept is to develop, offer and deliver tactical IT products and services for operations and functions that are critical for society. MilDef customizes solutions to meet the customers' specific requirements in the demanding environments in which they are used. Mil-Def's hardware and software products are combined with services to deliver effective digitalization. MilDef operates in the international security and defense market and within other areas that are critical for society.

FINANCIAL TARGETS

Growth

MilDef's target is to grow sales over time by at least 25% per year, including acquisitions.

Profitability

MilDef's target is an operating margin (EBITA) over time of at least 15%.

Capital structure

MilDef's target is for interest-bearing net debt not to exceed 2.5 times operating profit (EBITDA), other than temporarily.

Dividend policy

MilDef's target is to pay out an annual dividend of 20–40% of profit after tax. MilDef will, however, take long-term development, capital structure and prevailing market conditions into account.

GROWTH STRATEGIES

MilDef's growth strategy is based on three prioritized areas.

Organic growth

In established markets MilDef is aiming to increase the share of long-term contracts and framework agreements. A long-term presence, strong position and proven delivery capability increase the opportunities to win large contracts in markets that are already established.

Acquisitions

MilDef has a structured acquisition strategy to support market entry and add complementary technologies to its portfolio where the Company's strong international distribution channels can be reused. Based on implemented acquisitions, MilDef has created a structured model to identify potential acquisition candidates, address and evaluate these and, once the transaction is complete, integrate them.

Expanded customer offering

MilDef has expanded its customer offering, which in the past was mainly focused on hardware, to also include services and software. Complete solutions for a strong defense and increased safety.

MILDEF IN BRIEF

SUSTAINABILITY STRATEGY

Our reason to exist is to safeguard society's sustainable structures. To stand up for freedom and democracy. To make the world a safer place and protect our way of life. We integrate our focus on sustainability into all aspects when taking responsibility for a sustainable world.

We aim to maintain a good balance between business, environmental and social sustainability. This is considered crucial in order to meet current needs without jeopardizing the ability of future generations to meet their needs. MilDef complies with mandatory requirements, such as those in laws and regulations, applicable organization and industry standards, contractual obligations and codes of conduct.

MilDef strives to maintain a sustainable strategy to ensure that investments are made responsibly. A framework for KYC (know your customer) is used to ensure that the actors MilDef chooses to do business with live up to both regulatory and ethical standards.

INTERIM REPORT JANUARY–MARCH 2025 27

Important information

INTERIM REPORT JANUARY–MARCH 2025 28

This interim report may contain forward-looking information that reflects MilDef's current view of future events, as well as financial and operative development. Words such as "intends," "sees," "expects," "may," "assesses," "plans," "considers," "estimates" and other expressions that convey indications or predictions regarding future development or trends, and that are not based on historical fact, constitute forward-looking information. Forward-looking information is by nature associated with both known and unknown risks and factors of uncertainty because it depends on future events and circumstances. Forward-looking information does not offer any guarantee regarding future performance or development, and actual outcomes may differ materially from those expressed in forward-looking information.

Invitation to a presentation of MilDef's interim report for January–March 2025

The presentation will be held in English and will conclude with a Q&A. The meeting will start at 10:00 CEST on April 29, 2025 and last for about 45 minutes. The report will be made available at www.mildef.com the same morning.

Connecting to the meeting

Connect to the meeting either by clicking on this Teams link or by calling the relevant telephone number below (audio only).

Telephone numbers:

+46 8 502 413 79 (Sweden) +47 23 52 52 25 (Norway) +45 32 73 03 21 (Denmark) +358 9 23106849 (Finland) +44 20 3855 6017 (UK) +1 323 486 4735 (USA)

Enter conference ID: 302 247 901#

Financial calendar

Annual General Meeting 2025 May 22, 2025 Interim Report Q2 2025 July 18, 2025 Capital Markets Day 2025 September 18, 2025 Interim Report Q3 2025 October 23, 2025 Year-End Report Q4 2025 February 6, 2026

The Company's financial reports are made available via the Cision news service and on MilDef's website, www.mildef.com.

This information is the information that MilDef Group AB (publ) is required to publish in accordance with the EU market abuse regulation and the Swedish Securities Market Act. The information was submitted, through the agency of the contact persons set out below, for publication at 08:00 CEST on April 29, 2025.

For further information please contact:

Daniel Ljunggren, CEO +46 70 668 00 15 daniel.ljunggren@mildef.com

Olof Engvall, Head of IR & Communications +46 735 41 45 73 olof.engvall@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 and protect critical information streams and systems, when and where the stakes are the highest. MilDef's products are sold to more than 200 customers through companies in Sweden, Norway, Finland, Denmark, United Kingdom, Germany, Switzerland, the United States and Australia. MilDef was founded in 1997 and is listed on Nasdaq Stockholm since 2021.

WE ARMOR IT.TM

Letters. Words. Codes. Coordinates. Orders.

Every moment vital information is transmitted around us and at risk. Enter MilDef. We create rugged IT solutions for the harshest conditions and most challenging environments, which prevent your information from being interrupted, intercepted or disrupted.

Put simply: we armor your IT, when and where the stakes are the highest.

MilDef Group AB Muskötgatan 6 SE-254 66 Helsingborg Sweden

Tel: +46 42 25 00 00 email: infomildef@mildef.com www.mildef.com Corp. reg. no. 556893-5414