MilDef Group AB (publ)

a warm welcome this beautiful morning to the presentation about Mildev's fourth quarter 24 and full year of 24. So now please take it away Daniel Ljunggren and Vivica Jonsson and remember to help our audience understand where we are in the presentation by stating the number on the slide.

Thank you very much for that Olof and I also will take the opportunity to say warm welcome to all of you to this conf call of the fourth quarter from Mildev. I will jump directly into the highlights for the fourth quarter. We are very proud to announce that this is the strongest quarter in the middle of history. There is a lot of all times high in this report. Components like order intake, for example, exceeds 700 million for the first time in this company's history and sets the tone for the 2025. Also all time high when it comes to the net sales. Order backlog is record high as well, above 2 billion Swedish krona at the moment when we close 2024. And we also can see that we have a book-to-bill rate here on a rolling 12-month basis that is 1.5. So that also indicates that there will be some future growing potential for this company. So it's a quarter that is strong. And that is, of course, also very much up to the strong demand across our product portfolio that we see on our main geographic market, mainly the Nordics and the European market is really, really strong right now. So that is one really important puzzle piece is when it comes to what we see here in the order intake, for example, in the fourth quarter. Also, a big highlight for the Q4 was when we announced this acquisition of the German company, Rhoda, that really opened up the central Europe for future growth. I will talk a little bit more about Rhoda in the end, so let us save that for the end, so to say. also announced from our side in december what is that we with this background with this strong demand in the defense sector we have now taking a strategic decision to fully focus on defense we think that that will serve middle of best over time so that is something that we have addressed here in the fourth quarter and we think that defense ramp up is here to stay for many many years out so full focus on defense we think that will serve middle of best Also here in the fourth quarter, we can see that it's a continually stable development of the OPEX. We're adding on 5% more OPEX than comparable quarter, fourth quarter in 2023. But I think that is a low number compared to the growth and the order intake growth. All in all, I think that Millev is very well positioned for taking advantage of the opportunities that we now see that is offered by the Nordic and European defense ramp up. If we just dip a little bit deeper into the real numbers, we can see that net sales is 418 in the fourth quarter, increase of 18% compared to Q4 last year, and it's purely organic. And I said it's a record high number, and for the first time in this company's history, we exceed 400 million in net sales for one quarter. I think that the net sales growth and also the order intakes really confirms that we have a relevant offering and a high level of customer confidence. What really stands out here, I think, in the fourth quarter is the record high order intake increased by nearly 90%. So we have also announced a lot of important strategic contracts in the fourth quarter, and it's all around in the middle of the portfolio, both from hardware integration projects, and we also now in the fourth quarter see a breakthrough of the software order in Sweden. To continue here on slide two is that we look down to the adjusted EBITDA. We see an increase. We end fourth quarter 17% in EBITDA margin, and as I said, an OPEX of plus 5% compared to Q4 2023. This is something that we have worked really hard with within the company to increase the operational efficiency. But it's also showing that scalability of the company when a top line grows like we have in the fourth quarter, a quite high top line, it's really scale on the profit as well. Last bullets around the fourth quarter is the free cash flow. It's now the fifth quarter in row where we increase positive free cash flow. And that is very happy about and then also demonstrating the initiative that we have done around the operational efficiency and that this kind of initiative really are paying off. Final summary of the Q4 recap. So to say that we have been a very busy Q4 on slide three. For example, we see a couple of. things that we have announced in the fourth quarter. We started with a dismounted soldier lounge in October, the big trade show in the US called AUSA. And then after that, it continued with announcing a lot of important strategic orders from different customers. BOS Systems was a really great customer in the fourth quarter. And we also have this one CIS to the Swedish Navy. I think it has great potential for the future. And as we said, we announced this transformative acquisition of Rhoda Computer. And I will come back to that later before we close this presentation. We also, with a really high successful rate, did a direct share ratio and we raised 500 million Swedish kronor to be able to finance the acquisition of Rhoda. And in December, the final one here, we made a strategic announcement around really putting all the effort we can into the defence sector. And that is, of course, due to the strong demand we see in the defence sector. With that said, I will leave the word over to Viveka for some more long-term trends, financial-wise, and also a little bit deeper into the financial numbers. So, please, Viveka.

Thank you, Daniel, and good morning, everybody on the call. My favorite slide is as always to zoom out a little bit and have a look on our long-term growth in terms of sales. We're starting on 2015 and working our way up to 2024, which is why we're here today to talk about the 2024 results. 23% growth per year with an acceleration from our IPO in 2021 with 37% growth per year here on slide five. 2024, a little bit slower growth than we have seen in the years beforehand, but this is sales. We'll come back to orders, which is our future sales number. But turning from slide five to slide six, we will be talking about the full year of 2024. As I said, it was a bit slow in 24 on the sales side. It was primarily the first half of the year where we saw a dampened sales compared to 2023. Looking at the second half of the year, this was much stronger. And second half compared to second half 23, we are looking at 15% growth, which is more in line with what we will be looking forward to in 25. Order intake, 1.8 billion Swedish. We finished the year with a streak of large order in the Nordic countries, which Daniel went through just recently. And had I done the previous slide on growth order intake, we would be looking at 45% growth instead of 37% since the IPO on order intake. And almost 50% in the year. Profitability, EBIT-A. We continue to build for the future, of course. We are adding resources, competencies, employees. But we have managed to secure our profitability while building for the future. Our EBIT-A margin has developed from 12.2 to 12.5 on a whole year basis. And absolute development is about 7%. Finally, on this slide, I would like to highlight the importance of our free cash flow. which is almost 120 millions higher than we saw in the full year of 2023. This is, of course, both with underlying activities in our operational business, from a day-to-day activity or constant struggles, if you will, and as well as a consequence of our restructuring programme, where we have also handled some inventory positions in that. Turning to slide seven, we are looking at the order intake. And this is really a thrill to look at. We are on almost 50% growth on a rolling 12-month basis. 1.8 billion Swedish with a number of interesting and strategic orders in especially the second half of the year and also finalizing the year very strongly. This strong order position in 2024 gives us a strong backlog position when we will turn to slide 8 to see that on 55% growth. So here we are now exceeding 2 billion Swedish in what we have to deliver for the future. As I said, order intake is... very important for us to continue the momentum here and as daniel mentioned we have a book to bill ratio of around 1.5 which is clearly indicating a strong future in in the midlife universe the future is divided in a number of years on slide 9 2025 we are looking at some 1.1 billion already, and that position is around 37% higher than the same position last year for 2024. But we see also that we have longer contracts already now with deliveries for 2028 and going forward from that, which is indicating long strategic contracts and our customers' strong belief and confidence in the Mielef ability. We will move further on to slide 10, net sales we spoke about. This weaker development of the first half of the year is landing us on a mere 4% growth, which is of course below our long-term targets, but we are comforted well by the strong order intake and that ability to deliver sales for the coming years. Cross-margin-wise, we are developing according to plan. We are moving from a full year of 48.3 to 49 in 2024. The fourth quarter was a lighter margin due to the mix. We had a lot of delivery on framework. framework contracts that we have a little bit lower margin on, and sometimes the deliveries of those lump together in one quarter, and then we see a little bit lighter margin. And I've said that every time we spoke about this, that there will be ups and downs in the margin, but we are continuing around 50% as our target on our margin. And speaking of margins, we will turn to slide 11, or EBIT-A, have a pickup of around seven percent as i said 12.2 to 12.5 percentage it's not a massive development in terms of profitability normally we see a high net sales development we see a high ebit a development so the weaker development in in sales on the full year is indicating a somewhat slower ebta development however ebta has picked up more than the sales so we have seven percent here four on the next sales it's also interesting to to think about the operating expenses in relation to order intake given that we are growing as quickly as we are we need to build our capabilities for the future to be able to to deliver and to secure our promise to our customers And just for those doing the fun math of operational expenses in relation to sales, you should do it on relation to order intake as well. And then you will see that that number would have developed from 2023 of around 37% to 24 with around 26%. So things are happening and we're gearing for the future, but the scalable business model is here to stay. I will finalize the finance block on slide 12 with working capital and net debt. Working capital has in the fourth quarter and the full year of 2024 developed very well, and it's primarily the inventory position that we are seeing movements within. This is, as I've spoken about during the year, a consequence of our initiatives in our daily business with the modularization of different product groups. But it's also a consequence of the restructuring program where we are picking up our responsibility for some inventory in the handheld group and handling that within the framework of the restructuring program. We will be focusing on defense and security sector going forward, and we are streamlining also our inventory position to suit that ambition. Net debt, a dramatic development in the quarter, if you will, and you should be expecting a similar dramatic development in the other direction for the next quarter. We did a rights issue of shares in the fourth quarter. And the pursues of that are primarily due to be used in the closing of the acquisition of Rhoda, which we're expecting here in Q1. But currently they are held on our accounts, which is, of course, nice to see every morning on the bank. But we'd be even more nice to welcome the Rhoda acquisition into the Mille group. Daniel, I hand it back to you.