FULLTEXT DEL 2 AV 3
Årsredovisning 2024
ANNUAL REPORT 2024DIRECTORS’ REPORT
The Board of Directors and Chief Executive Officer of MilDef Group AB (publ) hereby present the Annual
Report and consolidated financial statements for the financial year January 1 to December 31, 2024. MilDef
Group AB (publ), which has its registered office in Helsingborg, is a public limited liability company and its
corporate registration number is 556893-5414.
Summary of significant events in 2024
In the first quarter MilDef signed a Memorandum of Under-
standing (MoU) with Lockheed Martin to explore an industrial
partnership within Sweden’s aerospace sector. Through this
partnership the two organizations will identify collaboration
opportunities where MilDef’s solutions and expertise can be
integrated into Lockheed Martin’s global ecosystem for the
aerospace and defense industry.
MilDef signed a 10-year framework agreement during the
first quarter with BAE Systems Bofors for delivery of MilDef’s
rugged hardware for the Archer artillery system. The frame-
work agreement is for MilDef products such as computers,
network equipment and displays. The initial order placed in
the first quarter of 2023 was worth SEK 69 million. The future
monetary value of the framework agreement is not possible to
quantify at this time.
To meet the growing demand for integration services in Swe-
den, MilDef has decided to expand its local capacity in the
Stockholm region. A bespoke building with more than 6,000
square meters of office and production space will quadruple
MilDef’s capacity in integration services and enable the Com-
pany to accept larger orders. Construction will start in autumn
2024 and it will be ready for occupancy one year later.
At the Annual General Meeting on May 23, Jan Anders-
son, Charlotte Darth, Christian Hammenborn, Lennart Pihl,
Marianne Trolle, Björn Karlsson and Bengt-Arne Molin were
re-elected as board members. Björn Karlsson was also
re-elected as Chair of the Board and Öhrlings Pricewater-
houseCoopers AB was re-elected as the Company’s auditor for
a term of one year, with Eric Salander as Auditor-in-Charge. It
was further decided that the dividend for the 2023 financial
year would be SEK 0.50/share in view of the Company’s need
for capital for long-term development, capital structure and
prevailing market conditions.
In the third quarter MilDef decided to appoint Magnus Hag-
man as Vice President Nordics. He was previously Head of
Marketing and Sales at Carmenta where he had worked since
2022. Before this he worked for a decade within the SAAB
defense company holding various positions there.
As a result of MilDef’s financial development, market condi-
tions and prospects, the Company is amending its long-term
profitability target. The previous EBITDA target of at least
10% over time is being replaced by an EBITA target of at least
15% over time.
In November MilDef entered into a binding contract to acquire
roda computer GmbH, a supplier of military IT solutions that
has a strong market presence in Central Europe. This acqui-
sition will make MilDef one of Europe’s leading actors within
tactical and rugged IT for security and defense. Completion of
the acquisition is expected to take place in Q1 2025. In con-
nection with the signing of the contract, a private placement
issue of 5.4 million shares was implemented, raising SEK 500
million before issue costs.
DIRECTORS’ REPORT
Operations
Since the start in 1997 MilDef has delivered products and
services designed to protect functions that are critical for
society. As a specialist in the global tactical IT niche area, the
Company meets the unique product requirements for demand-
ing environments. MilDef is a full-spectrum supplier of rugged
electronics, complete hardware systems as well as software
and services for defense and security. Digitalization within the
armed forces and of functions that are critical for society is
increasing and with it comes increased demand for tactical IT
solutions. MilDef is taking an active part in this development
and the Company’s goal is to be the most reliable partner in
the industry. MilDef adds value through industry-leading quali-
ty and high delivery precision.
At year-end 2024 MilDef consisted of 18 legal entities with
over 300 employees in seven countries. The Group posted
revenue for full-year 2024 of SEK 1,201 million with an ad-
justed operating EBITA margin of 12.5%. MilDef was listed on
Nasdaq Stockholm in 2021 and since January 2023 has been
traded on the Mid Cap Index.
Group structure
MilDef Group AB (publ) is the Parent Company in the MilDef
Group and has its registered office in Helsingborg, Sweden.
MilDef Group AB’s direct and indirect wholly owned subsid-
iaries are listed in Note 14 to the Parent Company financial
statements, Holdings in Group companies.
The MilDef share and ownership structure
MilDef was initially listed on Nasdaq Stockholm Small Cap
on 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.
At year-end 2024 MilDef’s share capital amounted to SEK
11,393,267 divided into 45,573,068 shares with a quota val-
ue of SEK 0.25 per share. All of the shares are ordinary shares
carrying the same voting rights.
The largest shareholder in terms of votes is Svolder with a
total shareholding of 10.8% of the capital and votes in the
Company as of December 31, 2024. The 10 largest share-
holders represented around 45% of the capital and votes.
As far as the Board of MilDef Group AB is aware there are
no agreements between major shareholders that restrict the
transferability of shares. Nor are there any restrictions on the
transferability of shares based on provisions in law or the Arti-
cles of Association. There are no restrictions on the number of
votes each shareholder may cast at shareholders’ meetings.
According to the Articles of Association the Board is to consist
of three to eight members with no deputies. The Articles of
Association do not contain any other provisions regarding ap-
pointment or dismissal of board members or on amendments
to the Articles of Association.
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ANNUAL REPORT 2024DIRECTORS’ REPORT
In the fourth quarter MilDef decided to focus fully on its
business in the defense and security domain. The reason for
choosing this strategic course of action is the strong market
conditions prevailing in the defense sector. To this end MilDef
intends to integrate the defense industry products of its
Handheld subsidiary into the rest of the business and to cease
operations in the other sales segments within Handheld. As a
consequence of this, during the fourth quarter the Company
reported a restructuring cost of SEK 310 million.
The Company received a number of large and strategically
significant orders during the year. Examples include: BAE
Systems Hägglunds order for IT equipment in CV90 combat
vehicles for delivery to Central Europe worth SEK 200 million;
a OneCIS software contract from the Swedish Defence Mate-
riel Administration (FMV); an order from Norwegian Defence
Materiel Agency (NDMA) for computers to modernize the
CV90 combat vehicle; and orders from the FMV for hardware
worth SEK 81 million and within the command systems area
worth SEK 63 million. MilDef also won a contract worth SEK
69 million to provide technology for nanodrones and additional
orders worth SEK 52 million from BAE Systems Bofors. After
the signing of the framework agreement in February with BAE
Systems Bofors, additional orders were secured for rugged
hardware for the Archer artillery system. MilDef also signed a
strategic hardware contract in Estonia worth SEK 53 million.
The contract involves integration of MilDef’s tactical IT hard-
ware into an Estonian defense project for armored vehicles.
Supported by the acquisition of the assets and liabilities of Ad-
vanced Vision Technology Ltd (AVT), MilDef secured an order
consisting of rugged displays for a European military vehicle
manufacturer. The order is related to a substantial European
vehicle program and is worth SEK 135 million. Deliveries will
take place in the period 2024–2029.
Financial targets
MilDef has four financial targets for its operations aimed at
providing the shareholders with a good return and ensuring
long-term value growth.
• 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 distribute 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.
Employees
The number of employees in the Group, recalculated to full-
time equivalents (FTEs), was 327 (309) at the end of the pe-
riod. 244 (227) of the employees were men and 83 (82) were
women. The average number of FTEs during the period was
319, compared with 313 in the same period the previous year.
Alternative performance measures
MilDef applies the guidelines for alternative performance
measures issued by ESMA, the European Securities and Mar-
kets 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 in the section
“Definitions of key figures”.
Segments
MilDef’s operations are treated as one segment as this reflects
the Group’s business, financial monitoring and manage-
ment structure. MilDef’s CEO, who is the chief operating
decision-maker, 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 has concluded 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 procure-
ments 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.
Order status
Order intake was good for full year 2024 and, as in previous
years, was driven by strong underlying demand for digitaliza-
tion and modernization among MilDef’s end-customers and
also increased defense appropriations in the Nordic region and
elsewhere in Europe.
The order intake for full year 2024 increased by 49% to SEK
1,810 million, compared with full year 2023 when it was SEK
1,214 million. The underlying market trend remains positive
in all markets. The order backlog on December 31, 2024 was
at a historically high level, amounting to SEK 2,055 million
(1,327), an increase of 55%.
Net sales and profits
MilDef’s sales for full year 2024 increased, amounting to
SEK 1,201 million, compared with SEK 1,151 million for full
year 2023. This is an increase in net sales of 4%. Net sales
development was stronger during the second half of the year
than in the first half.
Gross profit amounted to SEK 589 million (556), equivalent to
a gross margin of 49.0% (48.3). The Company’s gross profit
may vary across periods depending on sales volumes, and the
gross margin may vary based on the product and customer
mix.
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ANNUAL REPORT 2024DIRECTORS’ REPORT
Operating expenses amounted to SEK 798 million (448).
Non-recurring items of SEK 321 million (-) were reported dur-
ing the year. These were made up in part of acquisition costs
relating to the acquisition of roda computer GmbH, and in
part of a restructuring cost for streamlining MilDef’s business
to focus on the security and defense domain. The underlying
operating costs amounted to SEK 477 million (448). As a per-
centage of sales these amounted to 39.7% (38.9) for full year
2024. The increase in expenses was planned for and tracks
the Company’s growth trajectory.
During the quarter, acquisition costs of SEK 11 million were
reported relating to the acquisition of roda computer GmbH. In
addition, a restructuring program was announced in the fourth
quarter aimed at streamlining MilDef’s business to focus on
the security and defense domain. A restructuring cost has
been reported amounting to a total of SEK 310 million, SEK
285 million of which had no effect on cash flow.
Operating profit (EBIT) for full year amounted to SEK -209.0
million (108.1). This is equivalent to an operating margin
of -17.4% (9.4). Non-recurring items as described above
impacted operating profit for the period by SEK -321 million.
Adjusted operating profit (EBIT) amounted to SEK 111.8
million (108.1), which corresponds to an operating margin of
9.3% (9.4). The lack of EBIT growth during the period is relat-
ed to slower sales development combined with the Company’s
increased costs, mainly relating to an increased number of
employees to meet the needs of future growth.
Adjusted operating profit before amortization and impair-
ment of intangible non-current assets (EBITA) amounted to
SEK 149.7 million (140.2), equivalent to a margin of 12.5%
(12.2). Amortization and impairment of intangible non-current
assets amounted to SEK 37.9 million (32.1) excluding the
restructuring program, with impairment of capitalized product
development accounting for the increase. The adjusted oper-
ating profit includes adjustments for non-recurring items as
described above.
Net financial expense for the period amounted to SEK -13.6
million (-19.6). The shift is due primarily to increased interest
income relating to the completed new share issue in the fourth
quarter, the proceeds of which will be used to pay the pur-
chase consideration for roda computer GmbH once the acqui-
sition is completed. This is expected to happen in Q1 2025.
The tax effect for the full year 2024 impacted net profit in the
amount of SEK 2.2 million (-19.6). This makes the effective
tax rate 1.0% (22.1). Accounting for restructuring costs in
2024 resulted in a negative profit before tax and for this rea-
son the Group is reporting a negative effective tax rate.
Profit after tax amounted to SEK -220.3 million (69.0). Earn-
ings per share before dilution amounted to SEK -5.43 (1.73)
and earnings per share after dilution to SEK -5.37 (1.71).
Adjusted for non-recurring items, earnings per share before
dilution amounted to SEK 2.47 (1.73) and earnings per share
after dilution to SEK 2.45 (1.71).
Cash flow
Cash flow reported for the period amounted to SEK 446.2
million (24.2). The restructuring program is the main factor
in this shift. A private placement issue of shares was im-
plemented in the fourth quarter of 2024 for a value of SEK
500 million before transition costs. A smaller number of new
shares were also issued for the Group’s employees under
“Incentive program 2021/2025”. Free cash flow for full-year
2024 amounted to SEK 127.7 million (8.7).
Cash flow from operating activities amounted to SEK 144.4
million (54.5). Cash flow from changes in working capital
amounted to SEK 8.4 million (-90.1). Reversal of impair-
ment of goodwill and brands from the restructuring program
amounted to SEK 185 million.
Cash flow from investing activities amounted to SEK -33.3
million (-68.9). The lower pace of investment in intangible
non-current assets is due to the focus in 2024 being on
delivering customer-specific development projects, which are
not capitalized in the consolidated accounts. During the year
the final payment was made on the purchase consideration for
Defcon Solutions AB in the form of a contingent consideration
of SEK 12.5 million.
Cash flow from financing activities amounted to SEK 335.1
million (38.5). The new share issue and repayment of the
overdraft facility are the main driving factors in this shift.
Repayment of loans taken out in connection with the acquisi-
tion of Handheld Group in September 2022 amounted to SEK
30 million for the full year 2024. Amortization of leases was
charged to financing activities in the amount of SEK -22.2
million (-21.4) fir the full year 2024.
Acquired intangible assets
The Group’s recognized goodwill as of December 31, 2024
was SEK 322.6 million (461.5). The goodwill impairment is
attributable to the restructuring program and is derived from
the Handheld acquisition. An impairment loss on brands was
also recognized at SEK 43.6 million in the same restructuring
program. Other acquired intangible assets from previous years’
acquisitions are customer relationships and software. Custom-
er relationships and software are amortized on a straight-line
basis over a 10-year period. Customary impairment tests are
carried out in each individual case.
For further details, see Note 14, Intangible non-current assets.
Equity
The Group’s equity amounted to SEK 1,101.7 million (844.6)
at the end of the period. The equity/assets ratio as of Decem-
ber 31, 2024 was SEK 65.4% (55.4). The “Incentive program
2021/2025” described in the 2023 Annual and Sustainabil-
ity Report has been open for subscribing for shares since
September 1. This has been utilized by most participants on
a number of occasions and the Company has therefore issued
new shares for the program. Moreover, in November MilDef im-
plemented a private placement issue of 5,434,782 shares for
a subscription price of SEK 92 per share in connection with
closing a deal to acquire roda computer GmbH. This issue re-
sulted in issue proceeds of SEK 500 million before transaction
costs. The total number of shares after the new share issue is
45,573,068 and the share capital is SEK 11,393,267.
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MILDEF GROUP ANNUAL AND SUSTAINABILITY REPORT 2024
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ANNUAL REPORT 2024DIRECTORS’ REPORT
SEK m 2024 2023
Inventories 234.4 290.2
Accounts receivable 330.1 284.5
Other receivables 87.4 92.5
Accounts payable -85.6 -114.0
Other current liabilities -235.3 -167.2
Net working capital 330.9 386.0
as a percentage of net sales LTM (%) 27.6% 33.5%
SEK m 2024 2023
Other interest-bearing liabilities 133.9 263.9
Lease liabilities 86.5 103.5
Cash and cash equivalents -530.4 -81.5
Net debt incl. IFRS 16 -310.0 285.9
relative to adjusted operating profit (EBITDA)
LTM, multiple -1.7 1.7
Net working capital
Net working capital amounted to SEK 331 million (386) at the
end of the period. The decrease in stocks is driving this shift
and much of this is explained by impairment losses on stocks
within the framework of the restructuring program. The net
amount of operating receivables and operating liabilities was
at the same level at the end of 2024 as at the end of 2023.
Compared with the same period the previous year, net working
capital in relation to net sales decreased to 27.6% (33.5).
Net debt and cash and cash equivalents
The net debt, which in 2024 was a net receivable, including
lease liabilities amounted to SEK -310 million (286) at the
end of the period. Cash and cash equivalents as of December
31, 2024 amounted to SEK 530 million (82). At the end of
the period there was an unutilized revolving overdraft facility
of SEK 120 million (0). 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 -2.2 (1.1). Calculated including the effects of
IFRS 16, the net debt/equity ratio was -1.7 (1.7).
Acquisitions and acquisition analysis
At the time of acquisition, 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 12 months after the
acquisition date.
An acquisition of certain assets in the UK company Advanced
Vision Technologies Ltd took place in 2024.
On November 13, 2024, MilDef announced that a binding
agreement had been signed to acquire 100% of the voting
shares in roda computer GmbH (“roda”). The acquisition was
completed on March 6, 2025, see Note 30.
Outlook
2024 was a year in which MilDef made important advances –
both operationally and financially. The Company is reporting
strong profits, a record order intake and clear improvement in
cash flow.
The considerable investments in defense now taking place
in most markets are unique in modern times and budget
appropriations for defense continue to increase in Europe. In
many countries, efforts are now also intensifying to modernize
and digitalize defense capabilities. MilDef is well-positioned to
meet tougher requirements for domestic supply reliability and
delivery capacity.
We entered 2025 with a record order backlog and important
framework agreements in place, while also being well-prepared
to meet the rapidly growing needs of the market.
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. Fur-
ther resources were added to the R&D department in 2024
– 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 mar-
ket-related, operational and financial risk. For a more detailed
description of financial risk, see the section “Risk and risk
management” in this Annual and Sustainability Report.
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.
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 com-
pared 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.
Disputes
The Company was not a party in any material dispute at the
end of 2024.
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. At year-end the Parent Company had 57 (45)
employees.
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MILDEF GROUP ANNUAL AND SUSTAINABILITY REPORT 2024
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ANNUAL REPORT 2024DIRECTORS’ REPORT
SEK Dec. 31, 2024
Share premium reserve 493,260,337
Retained earnings 720,975,689
Comprehensive income for the year -222,464,369
Closing balance, December 31 991,771,657
The Board proposes that the profit be allocated as follows:
A dividend to the shareholders of SEK 0.50 per share 22,786,534
Carried forward 968,985,123
Total 991,771,657
Contingent liabilities
There have been no changes in the Group’s contingent liabili-
ties, as described in more detail in Parent Company Note 19.
Environmental impact
The Group does not have any operations that require a permit
according to current environmental rules.
Sustainability approach
The Group’s Sustainability Report for 2024 was prepared
according to the Swedish Annual Accounts Act by MilDef
Group AB (publ), corp. reg. no. 556893-5414, which has its
registered office in Helsingborg. See the Sustainability Report
in this Annual and Sustainability Report.
Corporate Governance Report
According to the Swedish Annual Accounts Act and the
Swedish Corporate Governance Code, (“the Code”), a separate
corporate governance report, including a section on internal
control, is to be prepared and included in this Annual and Sus-
tainability Report, see the Corporate Governance Report. Mil-
Def has no any deviations from the Code to report for 2024.
Guidelines for remuneration and other employment
terms for the Management Team in 2024
For a description of this section, see in the notes to the
Group’s financial statements, Note 11, Remuneration Report
2024 and “Guidelines for remuneration of senior executives”.
All can be found in this Annual and Sustainability Report.
Proposal for decision on allocation of profit
The following Parent Company funds are at the disposal of the
Annual General Meeting:
The Board proposes a dividend for the 2024 financial year of
SEK 0.50 per share (SEK 0.50). 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.
The Board’s assessment is that the proposed dividend will not
impact MilDef’s ability to meet the Group’s commitments in
the short-term or long-term. When assessing the size of the
proposed dividend the Board has taken into account what is
required in terms of equity and the consolidation requirements
of the Company and the Group, liquidity and position in gen-
eral, based on the nature and scale of the operations and the
associated risks. The proposed dividend is therefore justifiable
taking into consideration the precautionary rule in Chapter 17,
Section 3, paragraphs 2–3 of the Swedish Companies Act.
Significant events after the end of the year
On November 13, 2024, MilDef announced that a binding
agreement had been signed to acquire 100% of the voting
shares in roda computer GmbH (“roda”). The acquisition was
completed on March 6, 2025, see Note 30.
On March 11, MilDef won a cybersecurity deal with Clavister,
worth SEK 40 million. Clavister, a leader in European cy-
bersecurity for mission-critical applications, has on several
occasions ordered MilDef's hardware for customized and
robust network equipment intended for installation in BAE
System Hägglund's CV90 combat vehicle. On March 11, an
order worth SEK 40 million was signed. The hardware is a
sub-component of two products in Clavister CyberArmour, a
product family of AI-based, military-adapted Next-Generation
Firewalls for defense applications. First serial delivery will take
place in early 2027.
No other events that can be considered significant have taken
place after the end of the year up to the date this Annual and
Sustainability Report was signed.
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ANNUAL REPORT 2024RISK AND RISK MANAGEMENT
MILDEF GROUP ANNUAL AND SUSTAINABILITY REPORT 2024
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All business activity is associated with risk. Risks managed correctly can lead to opportunities and add
value, while risks managed incorrectly can cause damage and losses. MilDef has a structured and proac-
tive method to identify and manage risk to protect the Company, people and the environment.
or simply identified and monitored is established annually in
a risk map. The managing director of each local subsidiary is
responsible for mapping risk and assessing the likelihood that
the risks will materialize, as well as their potential effects,
preferably in monetary terms if this is possible. The Man-
agement Team then defines which risks can be considered
acceptable and how risks that are unacceptable should be
managed (through action plans) to make them acceptable. The
managing director of each local subsidiary is responsible for
carrying out risk management within the respective company.
MilDef divides the risks it faces into strategic, operational and
financial risks:
Financial risks are managed primarily by the corporate finance
department. The responsibilities of the Board of Directors and
the CEO for internal control of financial reporting are regulated
in the Swedish Companies Act. See the Corporate Governance
Report in this Annual Report or www.mildef.com for further
information on internal control of financial reporting.
Business risk and strategic risk are managed by the local
subsidiaries with support from corporate departments. The
overview below presents the overall risks in each risk category
and how they are managed.
RISK AND RISK MANAGEMENT
The ability to identify, assess and manage risk is a vital aspect
of implementing the Company’s strategy as well as in gover-
nance and control of the Company. The objective is to gain
a good understanding of the risks and their effects, and use
this to better support decision-making and to reach long-term
goals through carefully considered risk-taking within set pa-
rameters. This in turn requires an effective and structured risk
management process.
The overall goal of risk management is to ensure that there is a
systematic method to identify risks and that they are managed
at an early stage. The goal is also to make risk management a
natural aspect of day-to-day operations by creating a culture
and an awareness of risks among all employees and to educate
them on how to manage risks to achieve the goals of the
business.
The governing document for risk management is the Group-
wide Risk Procedure. The purpose of this document is to
define the Company’s approach to risk by stating goals and ar-
eas of responsibility. The Chief Executive Officer has ultimate
responsibility for the implementation and execution of the risk
management process and for reporting continually on risk to
the Board. The CEO is also responsible for developing, adapt-
ing and monitoring the risk management process. The process
of identifying risks that should either be eliminated, prevented
Identify,
analyze and
assess risks
Risk remediation or
acceptance and
mitigation of risks
Monitor and
assess
compliance
Customers
Likelihood
OperationsStrategic Purchasing People Financial
Management’s response
Accept Reduce Eliminate
Risk map
ANNUAL REPORT 2024RISK AND RISK MANAGEMENT
Consequence
Compliance Technology
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ANNUAL REPORT 2024RISK AND RISK MANAGEMENT
EXTERNAL ENVIRONMENT AND MARKET RISKS
Customers
Risks associated with customers are assessed from an overall perspective and
based on revenue streams and contract levels. Our ability to deliver tactical IT
is not covered by this area.
Non-compliance with contractual obligations Toll gate process, compliance matrix
Loss of strategic Nordic accounts Dedicated account managers, building business areas, framework agreements
Loss of strategic account (other) Dedicated account managers
Compliance with laws and other requirements Risks in this area are linked to the ability to apply and adapt to new and existing
government regulations and laws.
Regulatory requirements to implement and
ensure cybersecurity compliance Training, recruitment, external consultants
New laws and regulations Business intelligence, training, consultants, local partners
Unforeseen requirements due to infringement of
third party
intellectual property rights
Business intelligence, consultants, local partners, due diligence process
Technology Risks associated with technology relate to our technical systems and threats
against them, such as cyber threats.
IT disruptions Redundant environment, continuity planning for critical functions
Cybersecurity threats Investments, training, business intelligence
Unforeseen requirements due to infringement of
third party
intellectual property rights
Business intelligence, consultants, local partners, due diligence process
Strategic Strategic risks are primarily related to high-level political and social aspects and
are often difficult to influence due to their nature.
Political/economic conflicts (USA/China) Purchasing in the EU/USA
Old partners and future requirements Communication, cooperation, agreements, partnership programs
Shared right to use the name MilDef Separation through brand positioning, discussion of name change
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ANNUAL REPORT 2024RISK AND RISK MANAGEMENT
OPERATIONAL RISKS
FINANCIAL RISKS
Operations Risks associated with business operations are linked to our ability to deliver and
be efficient.
Global supply chains impact our ability
to deliver Purchasing, working virtually, digitalization, continuation plan for production
Exposure to corporate espionage Training, investments to meet protective security procurement requirements
Production capacity impacted by
external events
Fire safety system, multiple suppliers of critical functions (IT, electricity), established
business continuation plan
Purchasing and delivery management Risks associated with suppliers and supply chains that impact our ability to deliver
and safeguard the business.
Dependence on a single supplier Dual purchasing channels, agreements, design specifications
MilDef Crete’s capacity to deliver Made in Sweden/EU, IP rights, shared suppliers
Chinese influence/control over critical
suppliers Dual purchasing channels in the EU/USA
People and organizational structure Risks associated with people and the Company’s organizational structure relate to
talent, employer branding, ability to retain employees and our culture.
Immature leadership in the organization that can
lead to inefficiency Leadership training, communication, clear authority structure and expectations
Difficulty recruiting and retaining certain talent Employer branding, cooperation
The Group’s core values and Code of Conduct not
being implemented in all parts of the organization,
resulting in
subcultures
Training, communication
Financial Financial risks are traditional risks that can jeopardize cash flow, financial
strength and profits.
Increased costs due to currency fluctuations Agreements
Large sums tied to contracts Supplier contracts, share risks with customers
Increased costs relating to customs duties, with a
potential impact on production competitiveness Made in X concept
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FINANCIAL STATEMENTS AND NOTES
THE GROUP
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FINANCIAL STATEMENTS, GROUP
Consolidated statement of comprehensive income
ANNUAL REPORT 2024
SEK m Note
1–3 2024 2023
Net sales 4 1,200.9 1,151.3
Cost of goods sold -611.8 -595.0
Gross profit 589.0 556.3
Selling expenses -279.0 -282.8
Administrative expenses -105.7 -85.9
Research and development expenses -84.0 -80.7
Acquisition costs -10.8 -
Restructuring costs 5 -310.0 -
Other operating income 6 6.1 6.6
Other operating expenses 6 -14.4 -5.4
Operating profit 7, 8, 9, 10, 11 -209.0 108.1
Financial income 12 11.8 9.5
Financial expense 12 -25.4 -29.1
Profit after financial items -222.6 88.6
Income tax 13 2.2 -19.6
Net profit for the year -220.3 69.0
Other comprehensive income
Items that may subsequently be reclassified to profit or loss
Change in translation reserve for the year 2.4 -12.2
Other comprehensive income 2.4 -12.2
Total comprehensive income for the year -217.9 56.8
Profit for the year attributable to:
Owners of the parent -220.3 69.0
Non-controlling interests - -
Net profit for the year -220.3 69.0
Comprehensive income for the year attributable to:
Owners of the parent -217.9 56.8
Non-controlling interests - -
Comprehensive income for the year -217.9 56.8
Earnings per share 2024 2023
Number of shares at year-end 45,573,068 39,859,566
Weighted average number of shares in the period before dilution 40,598,903 39,859,566
Weighted average number of shares in the period after dilution 41,013,824 40,301,066
Earnings per share before dilution (SEK) -5.43 1.73
Earnings per share after dilution (SEK) -5.37 1.71
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Consolidated balance sheet
ANNUAL REPORT 2024FINANCIAL STATEMENTS, GROUP
SEK m Note
1–3 Dec. 31, 2024 Dec. 31, 2023
Non-current assets
Intangible non-current assets 14
Capitalized product development 12.7 68.5
Goodwill (business combinations) 322.6 461.5
Other acquired intangible assets 56.1 114.9
Other intangible non-current assets 0.2 0.3
Total intangible non-current assets 391.6 645.2
Property, plant and equipment 15
Leasehold improvements 8.6 8.0
Equipment, fixtures and fittings 11.8 13.5
Right-of-use assets 70.0 100.5
Total property, plant and equipment 90.4 122.0
Financial non-current assets
Other non-current receivables 16 0.3 0.3
Total financial non-current assets 0.3 0.3
Deferred tax assets 13 19.2 9.5
Total non-current assets 501.5 777.0
Inventories etc. 17
Products in progress 12.5 2.5
Finished products and goods for resale 218.7 283.4
Advance payments to suppliers 3.2 4.4
Total inventories 234.4 290.2
Current receivables
Accounts receivable 18 330.1 284.5
Tax assets 32.3 12.8
Other receivables 17.7 23.1
Contract assets 24 21.4 42.2
Prepaid expenses and accrued income 19 15.9 14.3
Total current receivables 417.5 377.0
Cash and cash equivalents 530.4 81.5
Total current assets 1,182.2 748.7
TOTAL ASSETS 1,683.7 1,525.7
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FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2024
Consolidated balance sheet
SEK m Note
1–3 Dec. 31, 2024 Dec. 31, 2023
Equity and liabilities
Equity 20
Equity attributable to owners of the parent
Share capital 11.4 10.0
Other capital contributions 1,222.8 729.3
Translation reserve -0.7 -3.1
Retained earnings incl. profit for the year -131.7 108.6
Total equity attributable to owners of the parent 1,101.7 844.6
Total equity 1,101.7 844.6
Non-current liabilities
Deferred tax liabilities 13 24.8 32.6
Non-current interest-bearing liabilities 21.22 102.5 132.5
Lease liabilities for right-of-use assets 2 60.7 76.4
Total non-current liabilities 188.0 241.5
Current liabilities
Current interest-bearing liabilities 21.22 31.4 131.4
Lease liabilities for right-of-use assets 25.8 27.1
Provisions 23 15.8 1.7
Contract liabilities 24 12.3 32.1
Accounts payable 85.6 114.0
Tax liabilities 28.8 9.2
Other liabilities 57.3 45.4
Accrued expenses and deferred income 25 137.0 78.7
Total current liabilities 393.9 439.7
TOTAL EQUITY AND LIABILITIES 1,683.7 1,525.7
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ANNUAL REPORT 2024FINANCIAL STATEMENTS, GROUP
Consolidated statement of changes in equity
SEK m
Share
capital
Other capital
contribu-
tions
Translation
reserve
Retained
earnings incl.
profit for
the year
Total equity
attributable to
owners of
the parent The Group
Opening balance, January 1, 2023 10.0 729.3 9.0 39.6 787.9 787.9
Net profit for the year - - - 69.0 69.0 69.0
Other comprehensive income
Change in translation reserve for the year - - -12.2 - -12.2 -12.2
Total other comprehensive income for the year - - -12.2 - -12.2 -12.2
Total comprehensive income for the year - - -12.2 69.0 56.8 56.8
Transactions with shareholders in their capacity as owners
New share issues - - - - - -
Issue costs - - - - - -
Dividend to shareholders - - - - - -
Closing balance, December 31, 2023 10.0 729.3 -3.1 108.6 844.6 844.6
Opening balance, January 1, 2024 10.0 729.3 -3.1 108.6 844.6 844.6
Net profit for the year - - - -220.3 -220.3 -220.3
Other comprehensive income
Change in translation reserve for the year - - 2.4 - 2.4 2.4
Total other comprehensive income for the year - - 2.4 - 2.4 2.4
Total comprehensive income for the year - - 2.4 -220.4 -217.9 -217.9
Transactions with shareholders in their capacity as owners
New share issues 1.4 511.4 - - 512.8 512.8
Issue costs - -17.8 - - -17.8 -17.8
Dividend to shareholders - - - -19.9 -19.9 -19.9
Closing balance, December 31, 2024 11.4 1,222.8 -0.7 -131.7 1,101.7 1,101.7
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Consolidated cash flow statement
SEK m Note
1–3 2024 2023
Operations
Operating profit -209.0 108.1
Adjustments for non-cash items:
Depreciation, amortization and impairment charged to operating profit 303.4 59.9
Other 26 77.1 8.6
Total 380.5 68.5
Interest received 23.7 16.1
Interest paid -37.2 -35.6
Taxes paid -22.1 -12.6
Cash flow from operating activities before changes in working capital -35.5 -32.0
Increase (-) / decrease (+) in inventories -0.1 -55.8
Increase (-) / decrease (+) in operating receivables -10.1 -62.1
Increase (+) / decrease (-) in operating liabilities 18.7 27.8
Changes in working capital 8.4 -90.1
Cash flow from operating activities 144.4 54.5
Cash flow from investing activities
Investments in intangible non-current assets -9.8 -31.9
Investments in property, plant and equipment -10.7 -13.9
Acquisition of subsidiaries, net of acquired cash and cash equivalents -12.8 -23.1
Change in other non-current receivables 0.0 -
Cash flow from investing activities -33.3 -68.9
Cash flow from financing activities
Dividend -19.9 -
New share issues, net 495.0 -
Increase (+) / decrease (-) in liabilities to credit institutions* -87.8 89.9
Repayment of interest-bearing liabilities -30.0 -30.0
Repayment of lease liabilities -22.2 -21.4
Cash flow from financing activities 335.1 38.5
Cash flow for the year 446.2 24.2
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period 81.5 59.9
Exchange rate difference in cash and cash equivalents 2.7 -2.6
Cash flow for the year 446.2 24.2
Cash and cash equivalents at end of period* 530.4 81.5
Granted, unutilized credit 120.0 -
Available liquidity 650.4 81.5
FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2024
*During 2024 the reclassification of the Group’s overdraft facility and cash pool was finalized. As a result of this adjustment, the accounts show a decrease in
liabilities to credit institutions, as well as a decrease in cash and cash equivalents in the period.
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ANNUAL REPORT 2024
Note 1. Accounting principles
Conformity with laws and standards
The consolidated financial statements were prepared in accordance with the Swedish Annual Accounts Act and the International Finan-
cial Reporting Standards issued by the International Accounting Standards Board (IASB), and interpretations issued by the IFRS Inter-
pretations Committee, as adopted by the EU. The consolidated financial statements were also prepared in accordance with the Swedish
Corporate Reporting Board’s recommendation RFR 1 Supplementary Accounting Rules for Groups, which contains certain additional
disclosure requirements for Swedish consolidated financial statements prepared in accordance with IFRS.
Conditions when preparing the Group’s financial statements
The functional currency of the Parent Company is Swedish crowns or kronor (SEK), which is also the reporting currency of the Parent
Company and the Group.
Financial statements are always presented in SEK unless otherwise indicated. All amounts are rounded off to the nearest million, unless
otherwise stated.
Assets and liabilities are recognized at historic cost, other than certain financial assets and liabilities which are measured at fair value.
The balance sheet items under the headings current assets and current liabilities are expected to be recovered or paid within 12 months.
All other balance sheet items are expected to be recovered or paid later.
Preparation of the financial statements in accordance with IFRS requires the Board of Directors and management to make estimates and
assumptions that affect the application of the accounting principles and the carrying amounts of assets, liabilities, revenue and expenses.
These estimates and assumptions are based on past experience and knowledge of the industry in which MilDef operates and which are
deemed reasonable under prevailing circumstances. The results of estimates and assumptions are then used to determine the carrying
amounts of assets and liabilities which are not otherwise clearly evident based on other sources. Actual outcomes may deviate from these
estimates and assumptions. The estimates and assumptions are reviewed on a regular basis and the effect of changes to them is recog-
nized in the income statement. Estimates made by the Board and management when applying the accounting principles in accordance
with IFRS may have a material impact on the financial statements, and estimates and judgments that may lead to significant adjustments
in the financial statements in subsequent years are described in more detail in Note 3. The accounting principles for the Group described
below have been applied consistently for all periods that are presented in the Group’s financial statements, unless otherwise indicated
below.
New and amended standards applied by the Group
New and amended standards and improvements and interpretations that entered into force in 2024 have not had any material impact on
the consolidated financial statements for the financial year.
New and amended standards and interpretations that have not yet entered into force
The Group has not yet started applying the new and changed standards and interpretations that have been issued but that entered into
force for financial years beginning on January 1, 2024 or after. Management’s assessment is that these, upon initial application, will not
have any material effect on the consolidated financial statements.
An exception to this is IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Presentation of Financial
Statements, and introduces new requirements regarding the structure of and disclosures in financial statements. The new standard will
not impact accounting or measurement of items in the financial statements. However, an evaluation will be made of what effect it will
have on the structure of and disclosures in the financial statements. The Group will begin to apply the new standard on January 1, 2027
retroactively for the 2026 comparison year.
Consolidated financial statements
The consolidated financial statements encompass the Parent Company MilDef Group AB and the companies over which the Parent Com-
pany has a direct or indirect controlling influence (subsidiaries). A controlling influence exists if MilDef Group AB has influence over the
investment holding, is exposed to or has the right to variable returns from its holding and can exercise its influence over the holding to
impact the returns. When determining if a controlling influence exists, shares that potentially carry voting rights are taken into account,
as is whether de facto control exists.
The acquisition method is used when accounting for the Group’s business combinations. The purchase consideration for the acquisition
of a subsidiary constitutes the fair value of the assets acquired and liabilities assumed by the Group from the previous owner of the
acquired company and the shares issued by the Group. The purchase consideration also includes the fair value of all assets or liabilities
arising from an agreed contingent consideration. Identifiable assets acquired or liabilities assumed in a business combination are initially
measured at fair value on the acquisition date. Acquisition-related costs are expensed as they arise.
Intra-Group transactions, balance sheet items and unrealized gains and losses on transactions between Group companies are eliminat-
ed. The accounting principles applied by subsidiaries have, where applicable, been amended to guarantee consistent application of the
Group’s principles.
Translation of operations and transactions, and assets and liabilities in foreign currency
Functional currency and reporting currency
Items included in the financial statements for the various entities in the Group are measured in the currency used in the economic envi-
ronment where the entity in question is mainly active (functional currency). In the consolidated financial statements the Swedish krona
(SEK) is used as the Group’s reporting currency.
The Group applies the current day method, whereby assets and liabilities of entities with a functional currency other than SEK are
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
translated at the closing day exchange rate and the income statements are translated at the average exchange rates for the year. The
translation differences that arise are recognized directly in other comprehensive income. The amount is recognized separately as reserves
in equity.
When divesting an entity that has a functional currency other than SEK, the cumulative translation differences attributable to the divest-
ed entity are reclassified from equity to profit for the year.
Transactions and balance sheet items
Transactions in foreign currencies are translated to the functional currency using the exchange rates in effect on the transaction date or
the date the items are remeasured. Exchange rate gains and losses arising when paying for these transactions, and in the translation of
monetary assets and liabilities in foreign currencies at the closing day rate, are recognized in the income statement.
Exchange rate gains and losses related to loans and cash and cash equivalents are recognized in the income statement as financial
income or financial expense.
All other exchange rate gains and losses are recognized net under “Other operating income” or “Other operating expenses” in the income
statement.
Intangible non-current assets
Research and development
The work of developing an intangible asset internally is divided between a research phase and a development phase.
All expenditure in the Group’s research phase is recognized as an expense as it arises. Expenditure to develop an asset is recognized as
an asset (capitalized product development) if all of the following conditions are met:
• it is technically possible to complete the intangible asset so that it can be used or sold,
• the entity intends to complete the intangible asset and to use or sell it,
• conditions exist to use or sell the intangible asset,
• it is probable that there will be future economic benefits from the intangible asset,
• necessary and adequate technical, financial and other resources exist to complete development and to use or sell the intangible
asset, and
• the cost of developing the intangible asset can be reliably measured.
If not all of the above criteria are met, the development costs are recognized as operating expenses as they arise. If it is not possible to
recognize an internally produced intangible asset, the development expenses are expensed in the period they arise.
Goodwill
Goodwill arising in connection with acquisitions of companies and operations is measured according to IFRS 3 Business Combinations
and is recognized as an intangible asset. Goodwill is tested at least once a year, or when indications exist, to identify if there is any im-
pairment. Goodwill is recognized at cost minus accumulated impairment losses.
To assess if impairment exists, the recoverable amount is determined by estimating discounted future cash flows for the entity to which
the goodwill is attributed. The calculation is based on the lowest cash-generating unit. The MilDef Group conducts impairment tests on
three cash-generating units. Goodwill recognition is presented in Note 14.
Customer relationships
Customer relationships acquired through business combinations are recognized at fair value on the acquisition date. Customer relation-
ships are measured at cost less amortization and any accumulated impairment losses. Customer relationships are tested annually, and
if there is an indication of a decrease in value, to determine if there is any impairment. Any impairment losses are charged to operating
profit.
Brands
Brands acquired through business combinations are recognized at fair value on the acquisition date. Brands are amortized over their esti-
mated useful life. Brands are tested annually, and if there is an indication of a decrease in value, to determine if there is any impairment.
Any impairment losses are charged to operating profit.
Other intangible non-current assets
Other intangible non-current assets, including software and acquired exclusivity agreements, are recognized at cost less accumulated
amortization and any impairment losses.
Amortization
Amortization is recognized in the income statement, calculated based on the useful lives of the intangible assets. Amortization is on a
straight-line basis. Estimated useful lives and amortization methods:
• Capitalized product development: 5 years
• Exclusivity agreements: 5 years
• Customer relationships: 10 years
• Brands: 10 years
• Software: 10 years
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
• Other intangible non-current assets: 10 years
Useful life is reassessed annually and development not yet completed is tested for impairment at least once a year, whether or not there
is any indication of a decrease in value.
Property, plant and equipment
Property, plant and equipment are recognized as assets if it is probable that future economic benefits from them will flow to the Group
and the cost of the assets can be reliably calculated. Property, plant and equipment are recognized at cost less accumulated deprecia-
tion and any impairment losses. Cost includes the purchase price plus expenses directly attributable to the asset in order to bring it to
the location and condition so that it can to be used in the intended manner. Examples of directly attributable expenses are delivery and
handling costs, installation costs and any fees for consulting services.
Additional expenditures
Additional expenditures are added to cost only if it is probable that the future economic benefits associated with the additional expendi-
tures will flow to the Group and cost can be reliably calculated.
All other additional expenditures are expensed in the period in which they arise. Repairs are expensed on an ongoing basis.
Depreciation
Depreciation is recognized on a straight-line basis based on the asset’s cost and over its estimated useful life.
Estimated useful lives:
• Leasehold improvements: 5 years or over the term of the lease
• Equipment, fixtures and fittings: 3–5 years
• Right-of-use assets: over the term of the lease
– Leases: 1–10 years
– Vehicle leases: 3–5 years
Impairment of non-financial assets
The value of intangible non-current assets that have an indefinite useful life, such as goodwill, is not amortized but is instead tested
annually for impairment. Property, plant and equipment and intangible non-current assets the definite useful life of which can be deter-
mined are tested for impairment if there is any indication that the asset may have depreciated in value. Impairment losses are recognized
in accordance with IAS 36. When calculating impairment, the Group establishes the recoverable amount of the asset. The recoverable
amount is the higher of net realizable value and the value in use. When assessing value in use the future cash flow discounted to present
value is calculated using a pre-tax discount factor, applying a weighted average cost of capital (WACC). An impairment is recognized when
the carrying amount of the asset exceeds its recoverable amount. Impairments are recognized through profit or loss.
Inventories
Inventories are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary
course of business less the estimated cost of completion and the estimated cost necessary to make the sale. Cost is measured using the
first-in, first-out (FIFO) formula and includes expenditures that have arisen from acquisition of inventory assets and from bringing them to
their present location and condition. For semi-manufactured or finished goods produced by the Company, cost consists of direct manu-
facturing expenses and a reasonable portion of indirect manufacturing expenses based on normal capacity.
Financial assets
Most of the Group’s financial assets are accounts receivable, contract assets, cash and cash equivalents and other receivables.
The Group classifies and measures its financial assets based on the business model that addresses the asset’s contracted cash flows and
the nature of the asset. Financial assets are classified in one of the following categories: financial assets measured at amortized cost;
financial assets measured at fair value through other comprehensive income; and financial assets measured at fair value through profit
or loss. At present the Group only has financial assets that are not normally sold outside the Group and the purpose of holding them is to
obtain contractual cash flows.
Financial assets measured at cost
All financial assets are classified as financial assets measured at amortized cost applying the effective interest method. When financial
assets are acquired, the expected credit losses are recognized on an ongoing basis during the period they are held, normally taking into
account credit loss risk in the subsequent 12-month period. If the credit risk is materially increased, a reserve is recognized for the credit
losses that are expected to materialize during the whole term of the asset. MilDef applies the simplified method to calculate credit losses,
i.e. the provision for expected credit losses is calculated based on the full lifetime of the receivable. This is based on historical data
on payment collection patterns and the counterparty’s ability to pay. Based on historical data, the expected credit losses are extremely
limited.
Cash and cash equivalents
Cash and cash equivalents, in both the balance sheet and the statement of cash flows, include cash, bank balances and other short-term
investments maturing within three months of the date of acquisition.
Equity
Share capital
Ordinary shares are classified as share capital.
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Other capital contributions
Consist of amounts paid above the quota (par) value when shares are issued.
Issue costs
Transaction costs directly attributable to the issuance of new ordinary shares or warrants are recognized, net of tax, in equity as a deduc-
tion from issue proceeds.
Retained earnings
Consist of all past earnings after tax, excluding non-controlling interests, less dividends.
Translation reserve
The net of the currency translation difference for foreign subsidiaries.
Dividends
The dividend proposed by the Board of Directors reduces the distributable earnings and is recognized as a liability once the Annual Gen-
eral Meeting has approved the dividend.
Financial liabilities
The Group’s financial liabilities belong to the category of financial liabilities measured at amortized cost, applying the effective interest
method, with the exception of liabilities relating to contingent considerations, which are measured at fair value according to level 3 in the
fair value hierarchy.
Provisions
Provisions are legal or informal obligations that are attributable to the financial year or previous financial years and that on the closing
day are certain or likely to exist but where the date and the amounts that will be realized are uncertain. Provisions are made for warran-
ties, charitable contributions and restructuring programs.
Contingent liabilities
A contingent liability exists if there is a possible obligation stemming from past events, the occurrence of which depends on one or more
uncertain future events, and where the obligation is not recognized as a liability or provision because it is not likely that an outflow of
resources will be required or the size of the obligation cannot be estimated with sufficient reliability. Information is provided unless the
likelihood of an outflow of resources is extremely small.
Income tax
Income tax recognized consists of current tax and deferred tax. Taxes are recognized in the income statement unless they relate to items
recognized directly in equity. In such cases the tax is also recognized in equity. Deferred tax is calculated according to the balance sheet
method based on all material temporary differences. A temporary difference exists when the carrying amount of an asset or liability differs
from the tax base. Deferred tax is calculated by applying the tax rate that has been enacted or substantively enacted as of the closing day
and that is expected to apply when the tax asset in question is realized or the tax liability is settled. Deferred tax assets are recognized
only to the extent it is probable that a future tax surplus will be available against which the temporary differences can be offset.
Revenue from contracts with customers
Revenue from contracts with customers is recognized when the performance obligation has been met and control of the goods or services
has been transferred to the customer. This assessment should be viewed from the customer’s perspective taking into account indications
such as the transfer of ownership and risk, customer acceptance, physical possession and the right to invoice. An assessment must also
be made of whether control is transferred on a specific date or over time.
Standard products and services
Standard products and standard services are regarded as separate and distinct performance obligations. Revenue is recognized on a
specific date when control of the goods or services is transferred to the customer. The contract terms and conditions may vary, but the
transfer normally takes place and the revenue is recognized upon delivery or, if the contract includes installation for the customer, when
the installation is complete.
Customized products and services
Certain products and services involve customized solutions. This type of contract is often binding for the customer and the obligations of
both parties are clearly defined for the duration of the contract. Revenue for customized products is recognized over time if the degree of
completion can be measured with certainty and there is a binding right to payment over the term of the contract. The degree of com-
pletion is measured based on performance completion. If the criteria described above for revenue recognition over time are not met, the
revenue is recognized according to the same method as for standard products and services. The transaction price for contracts of this
type is represented by payments based on degree of completion or on the invoice dates specified in the contract. If invoices are issued
at specific agreed times, contract assets or contract liabilities will arise. Contract assets also arise where the performance obligation has
been met and there is an unconditional right to payment but an invoice has not yet been issued.
Contracts with customers where the performance obligation has not yet been met
As MilDef has no customer contracts with a term of more than one year, the simplification rule is applied whereby no disclosure is neces-
sary on the scope of contracts entered into but not yet fulfilled.
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Leases
When new leases are signed a right-of-use asset and a lease liability are recognized in the balance sheet. Cost consists of the discounted
remaining lease payments for the non-cancellable lease term. Any extensions are included if the Group is reasonably certain that they will
be used. Lease payments are discounted at the interest rate implicit in the lease.
If this rate cannot be easily determined, which is normally the case for the Group’s leases, the lessee’s marginal interest rate is to be
used. This is the rate the individual lessee would have to pay to borrow the necessary funds to purchase an asset of the same value as the
right-of-use asset in a similar economic environment and with similar terms and guarantees.
The lease may be modified during the lease term and if so the lease liability and right-of-use assets are remeasured.
Lease payments are divided between repayment of the lease liability and payment of interest. The Group’s significant leases consist of
leases for real estate used in business operations and vehicle leases. The Company applies the relief rules for leases where the underlying
asset is of low value and the lease term is short. These leases are recognized as an expense during the period of use.
Employee benefits
Liabilities for wages, salaries and other remuneration, and paid leave, where the liability is expected to be settled within 12 months of
the end of the financial year, are recognized as current liabilities at the amounts that are expected to be paid when the liabilities are set-
tled, without taking any discounting into account. The expense is recognized as and when the services are performed by the employees.
Defined contribution plans
The Group’s pension plans for post-employment benefits are all in the form of defined contribution pension plans. With these plans
the Company pays fixed contributions to a separate legal entity. Once the contribution is made the Company has no further obligations.
Remuneration for employees in the form of wages, salary and pension is recognized when the employee has performed the service the
remuneration is for.
Severance pay
A provision is recognized in connection with termination of employment only if the Company is obligated to end employment before the
normal date. In such cases the full amount is charged directly to the income statement.
Financial income and expense
Financial income and expense consist of interest income and borrowing costs, and any exchange rate differences not related to opera-
tions. They also include realized disposals of financial assets as well as impairment losses/reversals of past impairment losses on these
financial assets. Borrowing costs directly related to purchases, construction or production of qualifying assets are recognized as part of
the cost of these assets. Qualifying assets are assets that necessarily take a substantial period of time to prepare for their intended use or
sale. Capitalization ceases when all of the activities necessary to prepare the asset for its intended use or sale are substantially complete.
All other borrowing costs are expensed when they arise. The Group has no capitalized borrowing costs.
Statement of cash flows
The statement of cash flows is prepared in accordance with the indirect method, whereby the net profit/loss is adjusted for transactions
not involving payments received or made during the year, and for any income and expenses relating to cash flow from investing or financ-
ing activities. Cash and cash equivalents include cash, bank balances and other short-term investments maturing within three months of
the date of acquisition.
Operating segments
MilDef’s CEO, who is the chief operating decision-maker, 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 has concluded that the MilDef
Group consists of only one reporting segment.
Geographical areas
Most production takes place in Sweden. The Group also purchases products from external suppliers. Sales by geographies are presented
in Note 4.
Operating expenses
The income statement is categorized by function. The functions are as follows:
• Cost of goods sold consists of costs for handling goods and manufacturing costs, including payroll expenses, the cost of materials,
purchased services, the cost of premises, and impairment of property, plant and equipment and intangible assets.
• Administrative expenses are mainly the cost of business administration. Common expenses are board fees, legal fees, auditor’s fees
and payroll expenses for administrative personnel.
• Selling expenses are expenses for the Company’s internal sales and marketing department as well as external marketing and sales
expenses.
• Research and development expenses are recognized separately and include self-financed new and further development of products
such as materials for prototypes, as well as payroll expenses.
• Other operating income and expenses relate to secondary activities such as exchange rate differences on operation-related items.
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The Group’s net flows in the form of customer and supplier invoices by currency are as follows:
Note 2. Financial risk management
The Board of Directors of MilDef Group AB has established a Group-wide Risk Management Policy which describes how financial risks
within the Group’s operations are managed. The objective is for financial risks to be identified and actively managed for the purpose of
reducing negative impacts on the Group’s profits, competitiveness and financial freedom.
The financial risks are defined as:
• Currency risk
• Interest rate risk
• Liquidity and financing risk
• Credit and counterparty risk
Currency risk
Transaction risk
Definition
Transaction risk is the risk of changes in exchange rates negatively affecting profitability and the Group’s financial position. Transac-
tion exposure occurs when the Group’s companies purchase in one currency and sell in another currency. The main rule in limiting the
Group’s transaction exposure is for the supply company to sell to the distributor in the distributor’s local currency. The transaction risk is
thereby limited for the distributor.
A significant portion of the Group’s sales and purchases are in currencies other than SEK. This is shown in the table below. Currency
hedging is not normally applied except in some cases at the subsidiary level. No currency hedging was applied in 2024. The risks are pri-
marily limited by the way contracts are drafted (currency clauses) or by quotes being given in the entity’s own cost currency. In the case
of more substantial risk exposure, individual assessments are made to determine where hedging may be needed.
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Exchange rate gains and losses relating to operations are recognized net under “Other operating income” or “Other operating expenses.”
SEK m Effect +10% Effect -10%
EUR 8.2 -8.2
GBP 5.3 -5.3
NOK 11.5 -11.5
USD -9.2 9.2
AUD -0.0 0.0
DKK 10.4 -10.4
CHF 0.0 -0.0
A +/- 10% shift in exchange rates would have the following effect on earnings:
The table above is based on the Group’s net flows in these currencies.
Invoicing by currency
0%
5%
10%
15%
20%
25%
30%
35%
40%
SEK USD NOK EUR GBP DKK CHF AUD
Invoicing in the Group 2024
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Translation risk
Definition
Translation risk is the risk that translation differences represent in the form of a change in equity.
When foreign subsidiaries’ balance sheets in local currency are translated to SEK, a translation difference arises as a consequence of
the current year being translated at a different closing exchange rate than the previous year. The income statement is translated using
an average exchange rate for the year, while the balance sheet is translated at the exchange rate on December 31. Translation exposure
constitutes the risk that the translation difference represents in the form of a change in equity.
The Group’s net investments in foreign currency amounted to SEK 104.1 million (71.0) at the end of 2024. The main currencies are
USD, SEK 79.6 million (53.3) and NOK, SEK 19.8 million (18.2). The Group does not hedge this risk.
Interest rate risk
Definition
Interest rate risk is the risk of the Group’s profitability and financial position being negatively affected by changes in current interest rate
levels.
Interest rate risk exists when the cost of the Company’s borrowing changes when market interest rates are changed. Management moni-
tors market development on an ongoing basis. The loan terms contain covenants linked to performance measures. The Group’s bank loans
carry variable interest rates with a fixed interest period of 1–3 months. Assets pledged in connection with borrowings are presented in
Note 21.
Calculated based on interest-bearing credit facilities carrying variable interest rates as of December 31, 2024, a one percentage point
change in the market interest rate would affect the Group’s earnings by SEK -2.5 million (-2.8).
The table below shows the effective interest rate on the closing day and the maturity structure of the financial liabilities.
2024, SEK m
Nominal
interest rate
Nominal
amount
Within 6
months
6–12
months 1–2 years 2–5 years
After 5
years Total
Bank loans 4.45% 132.5 17.9 17.5 104.8 - - 140.2
Overdraft facility 2.00% - - - - - - -
Contingent considerations 0.0 - - - - 0.0
Undiscounted lease payments 10.2 15.1 19.2 38.4 10.5 93.4
Accounts payable 85.6 - - - - 85.6
Total 113.7 32.6 124.0 38.4 10.5 319.3
2023, SEK m
Nominal
interest rate
Nominal
amount
Within 6
months
6–12
months 1–2 years 2–5 years
After 5
years Total
Bank loans 6.14% 162.5 19.9 19.4 136.7 - - 176.0
Overdraft facility 5.25% 120.0 3.2 3.2 123.4 - - 129.7
Contingent considerations 12.3 - - - - 12.3
Undiscounted lease payments 11.5 15.0 22.7 42.0 21.9 113.0
Accounts payable 114.0 - - - 114.0
Total 160.9 37.5 282.8 42.0 21.9 545.1
If surplus liquidity arises, it is first invested in short-term interest-bearing securities with extremely low risk. Maturities for short-term
interest-bearing securities are normally 3–12 months.
Liquidity and financing risk
Definition
Liquidity and financing risk refers to the risk of not being able to meet payment obligations as a result of insufficient liquidity or diffi-
culties raising external loans on acceptable terms. The liquidity and financing risk is currently considered to be at a good level. Net debt
(incl. IFRS 16) in relation to adjusted EBITDA is -1.7 (1.7) compared with the long-term target of maximum 2.5. SEK 30 million (30) of
the bank loan will be repaid in 2025. Both the bank loan and overdraft facility expire in July 2025. There is an option to extend the bank
loan by 1+1 years. On the closing day the financial liabilities in the table above amounted to SEK 433.0 million (545.1). At year-end
2024 there was an unutilized revolving overdraft facility of SEK 120.0 million. No portion remained unutilized at the end of the previous
year. At year-end cash and cash equivalents amounted to SEK 530.4 million (81.5).
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Credit and counterparty risk
Definition
Credit risk in transactions is the risk that the counterparty will not meet its financial obligations. MilDef is exposed to credit risk in its
operations based on transactions with counterparties, mainly customers. The maximum credit risk exposure regarding accounts receivable
was SEK 330.1 million (284.5) as of December 31, 2024. Cash and cash equivalents are only deposited in cash or similar accounts and
the Group only uses credit institutions with a high credit rating to minimize credit risk.
Accounts receivable
The risk of losses is the risk that customers will be unable to pay for products that have been delivered due to their financial positions.
MilDef sells to a limited number of customers, who have good solvency, which significantly reduces the risk, and currently the risk of
customer losses is considered low. MilDef systematically performs credit assessments before entering into commercial arrangements with
new customers. When exporting products, advance payments or in some cases bank guarantees are usually required. Part of MilDef’s
sales is to various countries’ armed forces, with the majority of the remainder to major companies.
Fair value
Carrying amounts coincide with fair value for all of the Group’s financial assets and liabilities. The Group’s financial assets are in the
category of financial assets measured at amortized cost and financial liabilities are in the category of financial liabilities measured at
amortized cost, with the exception of contingent considerations.
Contingent considerations from acquisitions of entities are measured at fair value according to level 3 of the fair value hierarchy. This
means that several significant inputs used in the measurement model are not based on observable market data. There are contingent
considerations in connection with the acquisitions of MilDef Integration Sweden AB and Sysint AS. A discounted cash flow method is
used to calculate the present value of the expected outflows from the Group in connection with settlement. The significant unobservable
inputs used in the calculation are a risk-adjusted discount rate of 8% and probability-adjusted expected cash flows. At year-end 2023
interest-bearing liabilities included contingent considerations of SEK 12.3 million. Contingent considerations of SEK 0.0 million (10.6)
for Sysint AS and SEK 12.5 million (12.5) for MilDef Integration Sweden AB were paid in 2024. Settlement of the contingent considera-
tions for Sysint AS and MilDef Integration Sweden AB has therefore been finalized. At year-end 2024 the expected outstanding cash flow
relating to contingent considerations amounts to SEK 0 million and the interest-bearing debt to SEK 0 million.
Capital management
MilDef’s capital structure target is to ensure the Group’s ability to continue as a going concern to generate returns for the shareholders
and benefits for other stakeholders, and to have an optimal capital structure taking into account the cost of capital. Shareholder divi-
dends, new share issues or sales of assets are examples of actions the Group can employ to adjust its capital structure. MilDef defines
capital as the sum of equity and the Group’s net debt, totaling SEK 791.7 million (1,130.5).
MilDef has four financial targets for its operations aimed at providing the shareholders with a good return and ensuring long-term value
growth:
• Growth – Grow sales over time by at least 25% per year, including acquisitions.
• Profitability – Operating margin (EBITA) over time of at least 15%.
• Capital structure – Interest-bearing net debt not to exceed 2.5x EBITDA, other than temporarily.
• Dividend policy – Distribute 20–40% of net profit. MilDef will, however, take long-term development, capital structure and prevailing
market conditions into account.
The Board of Directors is proposing that a dividend be set at SEK 0.50 per share for the 2024 financial year.
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 3. Uncertainty in estimates and judgments
Estimates and judgments are evaluated on an ongoing basis and based on historical experience and other factors, including expectations
regarding future events that are considered reasonable under the prevailing circumstances. Management makes estimates and assump-
tions regarding the future and this affects the carrying amounts recognized. The key estimates and assumptions where there is a signifi-
cant risk of the need for material adjustments to carrying amounts in future financial years are outlined below.
Useful life of intangible assets and property, plant and equipment
Key sources of uncertainty in estimates
The Group’s Management Team establishes estimated useful lives and associated amortization/depreciation of the Group’s intangible
non-current assets and property, plant and equipment. These estimates are based on past knowledge of the useful lives of similar assets.
Useful life and estimated residual value are tested on every closing day and adjusted as needed. The useful life is 5–10 years for intangi-
ble non-current assets and 1–10 years for property, plant and equipment, see Note 1.
Testing of goodwill impairment
Key sources of uncertainty in estimates
Every year the Group tests for impairment of goodwill according to the accounting principle described in the section “Impairment of
non-financial assets” in Note 1. The value is estimated based on management’s estimates of future cash flows, which are mainly based
on internal budgets and forecasts. As of December 31, 2024, goodwill was recognized in the amount of SEK 322.6 million (461.5).
Testing for impairment requires management to consider various aspects, in particular any events that have occurred that may impact the
value of goodwill, as well as the assumptions used in cash flow forecasts and whether cash flow discounts are reasonable. Any changes
made to assumptions may result in a different outcome and a different future financial position. For further information on goodwill
impairment testing, see Note 14.
Recovery of value of development expenses
Key sources of uncertainty in estimates
The Group invests substantial sums in research and development. Recognition of development expenses as assets in the balance sheet
requires estimates to be made and an expectation that the product capitalized will be technically and commercially viable in the future
and that future economic benefits are likely. Each quarter an assessment is made of whether development expenses already capitalized
are still commercially viable and can continue to generate economic benefits. If this is not the case, an impairment loss is recognized. As
of December 31, 2024, capitalized product development was recognized at SEK 12.7 million (68.5).
Deferred tax assets
Key sources of uncertainty in estimates
Every year management conducts an impairment test for deferred tax assets relating to tax loss carryforwards. Deferred tax assets are
only recognized if it is deemed probable that a future tax surplus will be available. Deferred tax assets relating to tax loss carryforwards
amounted to SEK 0.4 million (2.3) at the end of 2024. See also Note 13.
Inventory obsolescence assessment
Key sources of uncertainty in estimates
Inventory is assessed every month to determine if there is any impairment. An impairment loss is recognized in cost of goods sold at the
amount of inventory which, after careful evaluation, is considered to be obsolete. If actual obsolescence is different from the estimates
or if management makes future adjustments to the assumptions made, changes in value may affect profit for the year as well as the
Company’s financial position. The Group applies an obsolescence scale, which means that all items of inventory older than two years are
measured at 0% of cost. The reserve for inventory obsolescence amounted to SEK 24.6 million (21.3) as of December 31, 2024, see
Note 17.
Contingent considerations
Key sources of uncertainty in estimates
The carrying amount of contingent considerations is normally based on expected profit development within the acquired operations in
coming years. Contingent considerations are considerations for holdings that have already been acquired. If profit development is not as
expected, this will affect the carrying amount of contingent considerations and thus MilDef Group’s profits.
Contingent considerations are recognized in non-current or current interest-bearing liabilities in a total amount of SEK 0.0 million (12.3).
The effect on profit of changed assumptions regarding contingent considerations amounts to SEK 0.0 million (0.0) and is recognized
under financial expense.
Leases
Key sources of uncertainty in estimates
When recognizing rental agreements and leases there is some element of subjectivity in the estimates and judgments made in terms of
the ability to exercise extension, termination and purchase options, estimated useful lives of agreements/leases that are extended on an
ongoing basis if neither party terminates the contract, and the actual expected useful lives of assets within the framework of existing
agreements/leases. From a materiality perspective, for the Group this primarily relates to property leases where these estimates may have
a material effect on the Company’s financial position. Underlying discount factors are an additional component that affects carrying
amounts of rental agreements and leases within the Group. To calculate the carrying amount, MilDef applies an estimated, relevant
marginal borrowing rate for each currency or asset class to best reflect the assets in the rental agreement or lease and also financial
commitments in a fair and true way.
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2024 2023
Net sales
Sweden 400.7 427.4
Rest of Nordics (excl. Sweden) 294.4 261.7
Europe (excl. Nordics) 309.6 231.3
North America 153.1 185.0
Other countries 43.1 46.0
Total 1,200.9 1,151.3
Note 4. Revenue
Revenue from external customers is reported by geography based on the billing address.
During 2024 MilDef had two customers that individually represented more than 10% of the Group’s revenue. Their combined revenue was SEK 233 million.
During 2023 MilDef also had two customers that individually represented more than 10% of the Group’s revenue. Their combined revenue was SEK 327 mil-
lion.
The Group’s intangible non-current assets and property, plant and equipment by country 2024 2023
Sweden 369.8 648.1
Norway 96.2 105.4
USA 2.7 5.6
UK 10.5 5.0
Germany 2.7 3.1
Other 0.1 0.1
Total 482.0 767.3
2024 2023
Exchange gain on operating receivables/liabilities 6.1 6.6
Exchange loss on operating receivables/liabilities -14.4 -4.4
Other 0.0 -1.0
Total -8.4 1.2
Note 6. Other operating income/expenses
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 cost 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 impairment losses SEK 61.0 million
• Impairment of goodwill and brands SEK 185.2 million
• Impairment of capitalized product costs SEK 38.8 million
• Other expenses SEK 4.8 million
Total SEK 310.0 million
These costs were recognized in the income statement for the fourth quarter of 2024.
Note 5. Restructuring costs
Nature of expense method 2024 2023
Cost of goods sold 61.0 -
Other costs 4.8 -
Personnel costs 7.6 -
Depreciation/amortization and impairment 236.6 -
Total 310.0 -
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MILDEF GROUP ANNUAL AND SUSTAINABILITY REPORT 2024
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2024 2023
Cost of materials 651.7 587.5
Other costs 111.8 102.3
Personnel costs 328.2 301.7
Depreciation/amortization 303.4 59.9
Other operating expenses 14.8 5.4
Total 1,409.8 1,056.8
Note 7. Nature of expense method
2024 2023
Goodwill 141.4 -
Right-of-use assets 35.6 22.8
Capitalized product development 62.0 17.3
Customer relationships 6.7 6.8
Brands 49.5 5.7
Software 2.2 2.3
Other intangible non-current assets 0.1 0.1
Leasehold improvements 1.4 1.2
Equipment, fixtures and fittings 4.5 3.7
Total 303.4 59.9
Note 9. Depreciation/amortization and impairment
Note 8. Audit fees
The audit assignment consists of examination of the annual financial statements and accounting records, as well as the CEO and Board’s administration of
the Company, other tasks that are incumbent upon the Company’s auditors in order to prepare the Auditor’s Report, as well as advice or other assistance
required as a result of observations made during such review tasks.
2024 2023
Öhrlings PricewaterhouseCoopers AB:
Audit engagement 3.0 3.3
Audit-related activities besides the audit engagement - 0.1
Tax advisory services 0.1 0.1
Other services - -
Total 3.1 3.5
Mazars:
Audit engagement 0.3 1.5
Audit-related activities besides the audit engagement - 0.2
Tax advisory services 0.9 1.4
Other services - 0.0
Total 1.2 3.1
Other:
Audit engagement 0.0 0.0
Audit-related activities besides the audit engagement - -
Tax advisory services - -
Other services - -
Total 0.0 0.0
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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MILDEF GROUP ANNUAL AND SUSTAINABILITY REPORT 2024
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ANNUAL REPORT 2024
Amounts recognized in the income statement 2024 2023
Depreciation – Cost of goods sold 1.8 1.8
Depreciation – Administrative expenses 12.9 12.8
Depreciation – Selling expenses 4.3 4.3
Depreciation – Research and development expenses 3.9 3.9
Interest expense for lease liabilities (included in financial expense) 3.6 3.8
Expenses relating to low-value leases 0.2 0.3
Expenses for short-term leases 0.1 0.1
Total 26.9 27.0
Lease payments for short-term leases (where the lease period is 12 months or less) or lease assets of low value (underlying asset value below USD 5,000) are
recognized as operating expenses in the income statement and are hence not included in the right-of-use assets or lease liabilities.
If the lease contains variable lease payments not based on an index or interest rate, it is also recognized as an operating expense in the income statement.
Any service components in a lease are separated from the leased asset and recognized as an operating expense in the income statement.
The total cash flow attributable to rental agreements and leases recognized on the balance sheet amounts to SEK -25.7 million (-25.2), of which SEK -3.6
million (-3.8) is for interest expense recognized in cash flow from operating activities. The remaining cash flow is included as part of consolidated cash flow
from financing activities.
Note 10. Leases
The following amounts relating to right-of-use assets are recognized in the income statement:
Note 11. Employees and personnel costs etc.
Number of employees 2024 Sweden Norway UK USA Finland Germany Switzerland Total
Average number of employees 239 36 19 18 1 6 0 319
Percentage of men (%) 74 78 60 78 100 81 100 74
Number of employees Dec. 31 242 37 21 20 1 6 0 327
Percentage of men (%) 75 78 61 80 100 81 - 75
Number of employees 2023 Sweden Norway UK USA Finland Germany Switzerland Total
Average number of employees 224 33 14 22 1 6 1 302
Percentage of men (%) 74 74 64 75 100 80 100 74
Number of employees Dec. 31 230 35 16 19 1 7 1 309
Percentage of men (%) 73 77 63 79 100 71 100 73
Gender balance in the Management Team (as of December 31) 2024 2023
Board of Directors 7 7
Percentage of men (%) 71 71
Management Team 7 6
Percentage of men (%) 57 50
Wages, salaries and other remuneration 2024 2023
Wages, salaries and other remuneration etc. 232.6 218.0
(Of which salaries and other remuneration of the Board, CEO and other senior executives) 12.0 14.7
(Of which bonus to the Board, CEO and other senior executives) - 0.2
Pension costs, defined-contribution plans 21.7 17.8
(Of which for the Board, CEO, senior executives and other key individuals) 2.4 2.2
Social security contributions 62.3 53.0
Senior executives consist of members of the Management Team. Other key individuals comprise board members.
At year-end 2024, the group comprising the CEO, senior executives and board members numbered 14 persons (13). There are no agreements in place con-
cerning severance pay.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Salaries and other remuneration of senior executives
2024, SEK 000 Basic salary/
Board fee
Variable
remuneration Other benefits Pension expense Total
Chair of the Board Björn Karlsson 505 - - - 505
Board member Jan Andersson 245 - - - 245
Board member Lennart Pihl 325 - - - 325
Board member Charlotte Darth 275 - - - 275
Board member Marianne Trolle 225 - - - 225
Board member Christian Hammenborn 275 - - - 275
Board member Bengt-Arne Molin 225 - - - 225
CEO Daniel Ljunggren 2,119* - 337 831** 3,288
Other senior executives (6) 7,289 - 162 1,549 8,999
Total 11,483 - 499 2,380 14,362
2023, SEK 000 Basic salary/
Board fee
Variable
remuneration Other benefits Pension expense Total
Chair of the Board Björn Karlsson 430 - - - 430
Board member Jan Andersson 220 - - - 220
Board member Lennart Pihl 300 - - - 300
Board member Charlotte Darth 250 - - - 250
Board member Marianne Trolle 200 - - - 200
Board member Christian Hammenborn 250 - - - 250
Board member Bengt-Arne Molin 200 - - - 200
CEO Björn Karlsson
(until 05/2023) 700 - 1 51 752
CEO Daniel Ljunggren
(from 06/2023) 1,260 - 212* 182 1,654
Other senior executives (8) 10,293 232 408 1,947 12,880
Total 14,103 232 621 2,180 17,136
Guidelines for remuneration of senior executives
In accordance with the Swedish Companies Act and the Code, the shareholders’ meeting of a public limited company whose shares are
admitted for trading on a regulated market is to adopt guidelines for remuneration of senior executives. The following guidelines for remu-
neration of the Company’s senior executives were adopted at the 2024 Annual General Meeting.
The guidelines cover senior executives, including the President & CEO and other members of the Management Team.
If members of the Company’s Board of Directors perform work for the Company alongside their board assignments, these guidelines
are also to be applied to any remuneration paid to the board members for such work. The principles are prospective, i.e., they apply to
remuneration agreed and changes made to previously agreed remuneration after the guidelines were adopted at the 2024 Annual General
Meeting. The principles do not apply to any remuneration agreed or approved at the Annual General Meeting.
How the guidelines promote the Company’s business strategy, long-term interests and sustainability
MilDef’s ability to recruit, develop and retain high-caliber senior executives is a prerequisite for successful implementation of the busi-
ness strategy and protection of the Company’s long-term interests, including its sustainability work. This is why it is essential that MilDef
offers competitive market-based remuneration. These guidelines enable MilDef to offer senior executives competitive remuneration pack-
ages. All variable cash remuneration covered by these principles is intended to promote the Company’s business strategy and long-term
interests, including its sustainability profile.
Remuneration components
The remuneration is be market-based and consist of fixed cash salary, variable remuneration, pension and other benefits. In addition,
the shareholders’ meeting may – independently of these guidelines – approve share-based and share price-based incentive programs.
Remuneration may also take the form of consulting fees to board members who perform work for the Company alongside their board
assignment.
Fixed cash salary
Fixed cash salary is to be set so that it is competitive in combination with other remuneration components. The absolute level is to be
set based on the role in question and the individual’s expertise, experience and performance. The fixed cash salary is to be reviewed
annually.
Variable remuneration
Performance in relation to criteria for payment of variable cash remuneration must be able to be measured over a period of one year. Vari-
able cash remuneration is to have a predetermined ceiling and may not exceed 35% of the fixed annual cash salary. Variable remunera-
tion is only pensionable where this is required in line with binding collective bargaining agreements or local legislation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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===== SIDA 100 =====
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Additional variable remuneration can be paid in extraordinary circumstances, provided that such extraordinary arrangements are time-lim-
ited and made only at individual level, either to recruit or retain senior executives, or as compensation for extraordinary work efforts over
and above the senior executive’s ordinary duties. Remuneration of this kind may not exceed an amount equivalent to 50% of the annual
fixed cash salary and may not be paid more than once a year per individual. Decisions on such remuneration for the President & CEO are
to be taken by the Board based on a proposal from the Remuneration Committee. Decisions on such remuneration for other senior execu-
tives are to be taken by the Remuneration Committee based on a proposal from the President & CEO.
Pension
Senior executives are entitled to pension solutions as agreed with the Company. As a rule, pension obligations are to be in the form of
a defined-contribution plan and in line with the Company’s pension plan, according to which pension provisions of 4.5% are made on
salary components up to 7.5 base amounts and 30% on salary components over 7.5 base amounts. This rule may be waived in the case
of appointment of new senior executives whose employment contracts already include defined-benefit pension plans or if the senior
executive is covered by a defined-benefit pension plan under mandatory collective bargaining agreements. The pension premiums for
defined-contribution pension plans must not exceed 35% of the fixed annual cash salary. Pension provisions are only to be made on vari-
able cash remuneration and other salary benefits if required by mandatory collective bargaining agreements applicable to the executive or
by local legislation.
Other benefits
Other benefits may include life assurance, health and medical expenses insurance, and a company car. The combined value of such
benefits may not exceed 15% of the fixed annual salary. The CEO has a gross salary deduction for a company car. This involves salary
sacrifice, where the CEO waives part of his salary to pay for the car. The basic salary disclosed is after gross salary deduction of SEK
300,000 for a company car. The CEO’s non-monetary benefits are therefore less than 15% of the fixed annual cash salary.
Employment terms in other countries
In the case of employment terms subject to rules other than Swedish ones, appropriate adjustments may be made to comply with manda-
tory rules or established local practices, while as far as possible observing the overall objectives of these guidelines.
Consulting fee for board members
If a board member (including via a wholly owned company) performs work for the Company in addition to board work, a separate fee can
be paid for this (consulting fee). The fee is to be based on the current market rate and determined in relation to the value of the benefit
provided to the Company.
Criteria for award of variable cash remuneration etc.
The Remuneration Committee is to monitor and evaluate variable remuneration programs for senior executives. At the end of the perfor-
mance period the Committee must determine to what extent the criteria for award of variable remuneration have been met. The Remu-
neration Committee is responsible for making the assessment on variable remuneration for the President & CEO. Assessments on variable
remuneration for other executives are the responsibility of the President & CEO. Where financial criteria are concerned, the assessment
is to be based on the Company’s most recently published financial information. Variable cash remuneration can be paid at the end of the
performance period or be deferred. The Board of Directors is entitled, by law or contract, to wholly or partly reclaim variable remuneration
that has been paid on false grounds (claw back).
Termination of employment
If a senior executive’s contract of employment is terminated by the Company, the notice period must not exceed 12 months. All terms of
employment continue to apply during the notice period, unless explicitly agreed between the Company and the executive. The executive
will not receive any further severance pay. If a senior executive terminates their employment, the contractual notice period must not
exceed 6 months, or 12 months for the President & CEO, and there is no entitlement to severance pay.
Salary and terms of employment for employees
In drafting these guidelines, the Board of Directors has taken into account the current salary and terms of employment of MilDef’s em-
ployees. Information on employees’ total incomes, and the components, increase and rate of growth of the remuneration over time, have
been evaluated. The Remuneration Committee and Board of Directors have subsequently decided whether the principles and restrictions
therein are reasonable.
Decision-making process for determining, reviewing and implementing the guidelines
The Board of Directors has previously established a Remuneration Committee. The Committee’s duties include making preparations for
Board decisions on proposed guidelines for remuneration of senior executives. The Board is to prepare proposals for new guidelines at
least once every four years and present the proposals for approval by the Annual General Meeting. The guidelines are to apply until new
guidelines have been adopted by the shareholders' meeting. The Remuneration Committee must also monitor and evaluate variable re-
muneration programs for the Management Team, the application of remuneration guidelines for senior executives as well as remuneration
structures and levels within the Company. The Chair of the Board may be chair of the Remuneration Committee. Other shareholder-elect-
ed members of the Remuneration Committee must be independent of the Company and the Management Team. The President & CEO or
other members of the Management Team are not present when the Board discusses and makes decisions on remuneration matters that af-
fect them. If a board member provides consulting services to the Company, the board member in question is not entitled to participate in
the preparatory work of the Board or the Remuneration Committee concerning variable remuneration for the relevant consulting services.
Deviations from the guidelines
The Board may temporarily deviate from the guidelines in full or in part if there are particular reasons for doing so in an individual case
and the deviation is necessary to serve the Company’s long-term interests, including its sustainability, or to safeguard the Company’s
financial strength. Deviations are to be reported and justified in the subsequent Remuneration Report. The Remuneration Committee’s
duties include preparatory work for the Board’s decisions on matters concerning remuneration of the Management Team, including deci-
sions on deviations from the guidelines.
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ANNUAL REPORT 2024
Note 12. Financial items
2024 2023
Exchange gain not relating to operations 2.4 1.6
Interest income 8.5 7.9
Other financial income 0.9 -
Financial income 11.8 9.5
Exchange loss not relating to operations - -
Interest expense -24.5 -28.2
Other financial expense -0.9 -0.9
Financial expense -25.4 -29.1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Remuneration of senior executives
The remuneration package for the CEO and other senior executives consists of fixed salary, variable remuneration, pension and other
benefits. These remuneration components are based on the Guidelines for remuneration of senior executives adopted by the 2023 Annual
General Meeting. The tables above show the actual cost of remuneration and other benefits paid to the Board of Directors, President
& CEO and other senior executives for the 2024 and 2023 financial years. The senior executives, together with the CEO, make up the
Management Team. The board fees for 2024 were set at the Annual General Meeting in May 2024 and relate to the period until the next
Annual General Meeting.
Remuneration Committee
For information on the Company’s preparatory and decision-making process concerning remuneration of senior executives, see the Corpo-
rate Governance Report.
Remuneration of the Board of Directors
The 2024 Annual General Meeting approved payment of fees of SEK 475,000 to the Chair of the Board and SEK 225,000 to other
shareholder-elected board members who are not employees of MilDef; SEK 100,000 to the chair and SEK 50,000 to other members of
the Audit Committee; and SEK 30,000 to the chair and SEK 20,000 to other members of the Remuneration Committee. According to
the Company’s Guidelines for remuneration of senior executives, consulting fees or other remuneration may be paid to board members
who carry out work on the Company’s behalf in addition to their board work.
Share-based incentive program
At an extraordinary shareholders’ meeting on April 29, 2021, a resolution was passed to adopt an incentive program (“Incentive program
2021/2025) for the Group’s employees by issuing warrants with the subsequent right to subscribe for new shares in MilDef. If the
warrants are fully exercised, the share capital may be increased by a maximum of SEK 110,375 through the issue of 441,500 shares,
equivalent to dilution of around 1.1%. The right to acquire warrants is based on the following principles with respect to allocation cate-
gories: (i) CEO and members of the Management Team: maximum 30,000 warrants per participant; (ii) other senior executives and key
individuals: maximum 15,000 warrants per participant and (iii) other employees: maximum 3,000 warrants per participant. Each warrant
entitles the holder to subscribe for one new share in MilDef at a subscription price equivalent to 133% of the price per share in the new
share issue which is planned to be implemented in connection with admission to trading of the Company’s shares on Nasdaq Stockholm.
Registration to subscribe for shares can take place from September 1, 2024 until August 31, 2025. The Company has no outstanding
share-based incentive programs other than the warrants described above.
A total of 278,720 shares were issued in 2024 under “Incentive program 2021/2025”.
Note 13. Tax
Tax recognized in the income statement 2024 2023
Current tax for the year -12.7 -15.6
Deferred tax 15.1 -2.9
Prior year adjustments -0.2 -1.0
Total 2.2 -19.6
Deferred tax expense/income for the year 2024 2023
Tax relating to change in loss - -3.4
Tax relating to change in temporary differences 15.0 -0.4
Tax relating to appropriations 0.1 -0.2
Revaluation of tax loss carryforwards - 1.2
Total 15.1 -2.9
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ANNUAL REPORT 2024
Reconciliation of net deferred tax liability 2024 2023
Tax liability, January 1 -23.2 -20.8
Translation difference on translation of foreign subsidiaries 2.4 0.5
Additions via business combinations - -
Recognized via the income statement 15.1 -2.9
Tax liability, December 31 -5.7 -23.2
Deferred tax assets are valued at the maximum amount likely to be recovered based on the taxable profit for the current and future years. The Group has
unutilized tax loss carryforwards of SEK 2.6 million (17.9), SEK 0.2 million of which (6.6) are unrecognized as it is considered uncertain whether they will
be able to be used due to uncertainty as to when sufficient taxable profit will be generated in the future. Tax loss carryforwards do not expire.
No tax is recognized in other comprehensive income.
Tax on profit for the year 2024 2023
Earnings before tax according to the income statement -222.6 88.6
Tax according to the Parent Company tax rate (20.6%) 45.8 -18.2
Reconciliation of recognized tax
Non-taxable income 0.4 0.1
Non-deductible expenses -44.0 -2.4
Expenses recognized via equity 0.9 -
Effect of change in temporary differences 0.5 0.6
Non-capitalized tax loss carryforwards - -0.2
Revaluation of deferred tax relating to tax loss carryforwards - 3.8
Tax relating to previous years 0.2 -1.0
Difference in Group’s tax rates in different countries -1.5 -2.2
Recognized tax expense/income 2.2 -19.6
Deferred tax assets/deferred tax liabilities 2024 Deferred tax assets Deferred tax liabilities Net
Intangible non-current assets 10.2 -23.8 -13.6
Property, plant and equipment 0.8 - 0.8
Financial assets - - -
Current assets 7.7 - 7.7
Current liabilities - -1.0 -1.0
Tax loss carryforwards 0.4 - 0.4
Total 19.2 -24.8 -5.7
Deferred tax assets/deferred tax liabilities 2023 Deferred tax assets Deferred tax liabilities Net
Intangible non-current assets 1.3 -28.8 -27.5
Property, plant and equipment 0.5 0.0 0.5
Current assets 0.1 -0.1 0.1
Current liabilities 5.3 -2.7 2.6
Tax loss carryforwards 0.0 -1.1 -1.1
Untaxed reserves 2.3 0.0 2.3
Total 9.5 -32.6 -23.2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 14. Intangible non-current assets
2024, SEK m
Capitalized
product
development
Goodwill
(business
combina-
tions)
Exclusivity
agreements
Customer
relationships Brands Software
Other
intangible
non-current
assets Total
Cost
Opening balance, January 1 125.8 461.5 10.0 82.5 56.5 22.2 1.2 759.8
Additions for the year 6.0 3.9 - - - - - 9.9
Divestments for the year - - - - - - - -
Reclassification for the year - - - - - - - -
Additions as a result of acquisitions - - - - - - - -
Translation difference - -1.0 1.0 0.8 0.1 -0.3 - 0.2
Closing balance, December 31 131.8 464.2 11.0 83.3 56.6 21.9 1.2 769.9
Amortization and impairment
Opening balance, January 1 -57.3 - -10.0 -32.8 -7.2 -6.3 -0.9 -114.6
Amortization and impairment for
the year -61.8 -141.6 - -6.7 -49.4 -2.2 -0.1 –261.8
Divestments for the year - - - - - - - -
Translation difference - - -1.0 -1.0 0.0 0.1 - -1.9
Closing balance, December 31 -119.1 -141.6 -11.0 -40.6 -56.6 -8.5 -1.0 -378.3
Carrying amount, December 31,
2024 12.7 322.6 0.0 42.7 0.0 13.4 0.2 391.6
2023, SEK m
Capitalized
product
development
Goodwill
(business
combina-
tions)
Exclusivity
agreements
Customer
relationships Brands Software
Other
intangible
non-current
assets Total
Cost
Opening balance, January 1 96.9 466.6 10.4 84.8 56.5 23.8 1.2 740.2
Additions for the year 31.9 - - - - - - 31.9
Divestments for the year -2.5 - - - - - - -2.5
Reclassification for the year -0.5 - - - - - - -0.5
Additions as a result of acqui-
sitions - - - - - - - -
Translation difference - -5.1 -0.4 -2.3 0.0 -1.6 - -9.3
Closing balance, December 31 125.8 461.5 10.0 82.5 56.5 22.2 1.2 759.8
Amortization and impairment
Opening balance, January 1 -40.7 - -10.4 -27.1 -1.5 -4.4 -0.8 -84.8
Amortization for the year -17.3 - - -6.8 -5.7 -2.3 -0.1 -32.2
Divestments for the year 0.7 - - - - - - 0.7
Translation difference - - 0.4 1.0 0.0 0.3 - 1.7
Closing balance, December 31 -57.3 - -10.0 -32.8 -7.2 -6.3 -0.9 -114.6
Carrying amount, December 31,
2023 68.5 461.5 0.0 49.7 49.3 15.9 0.3 645.2
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ANNUAL REPORT 2024
Amortization and impairment are recognized in comprehensive income as follows: 2024 2023
Cost of goods sold 2.5 1.8
Selling expenses 48.3 19.9
Administrative expenses 6.7 2.9
Research and development expenses 19.1 7.5
Restructuring costs 185.0 -
Total 261.8 32.1
Business combinations
Goodwill has arisen in connection with business combinations. MilDef applies IAS 38 Intangible assets, which means that goodwill and
assets with indefinite useful life are not amortized. However, an impairment test in accordance with IAS 36 is performed each year, or
more frequently if there are indications of impairment. This involves comparing the Group’s carrying amounts for these assets with their
estimated value in use based on their discounted future cash flows. If the value in use is lower than the carrying amount, an impairment
loss is recognized. The assets are thus recognized at cost minus accumulated impairment losses.
Impairment test
During the fourth quarter of 2024 a goodwill impairment loss of SEK 141.6 million was recognized for the previous cash-generating unit
Handheld Group AB. This took place in connection with the restructuring program, see Note 5. After this, no other impairment test was
deemed necessary, as below.
The most recent test for any impairment of goodwill was performed on December 31, 2024. The MilDef Group prepares a budget for one
year at a time. This means that cash flows for the first year in the useful life are based on the budget established by the Board of Direc-
tors. Cash flows to the end of the useful life are estimated by extrapolating the cash flow based on the budget drawn up and assumptions
on organic sales growth, working capital requirements and gross profit margins during the useful life.
• Organic sales growth for years 2–5 is calculated with a certain degree of caution based on the Group’s historical experience. The esti-
mated growth rate varies for different acquisitions based on their order status, market situation, expected price development etc.
A lower growth rate has been assumed for periods after year 5, corresponding to a conservative estimate of the long-term growth rate
for the industry.
• The working capital requirement during the useful life is calculated based on the Group’s historical experience and assumed organic
sales growth, and on other considerations.
• The gross profit margin is based on established budgets for the respective cash-generating unit.
The discount rate is calculated based on a weighted required rate of return plus a standard tax rate. The estimated pre-tax discount rate
for acquired entities is in the range 10.6–12.5% (12.4–13.3). The discount rate represents a current assessment of risks specific to the
MilDef Group and the respective acquisition. Calculation of the discount rate has been based on specific conditions in the Group and
derives from its weighted average cost of capital (WACC). The capital cost of equity is based on the expected return for the Group’s inves-
tors, while the cost of the Group’s debts is based on the interest-bearing liabilities that MilDef is obliged to realize. Group-specific risk is
taken into account using an individual beta factor, which is evaluated each year on the basis of generally available market data.
In the previous financial year MilDef had three identified cash-generating units. In 2024 the previous cash-generating units Handheld
Group AB and MilDef Integration Sweden AB were reclassified as the new cash-generating unit MilDef, as the assessment was made that
these are now fully integrated into MilDef. The two remaining cash-generating units MilDef and Sysint AS operate within the same general
industry. Although the geographical markets are weighted slightly differently, the overall risk profile is assessed to be fairly uniform. The
same assumptions regarding discount rate have therefore been applied to these companies, with the exception of the small company
premium in 2024.
The same uniform assessment also applies to expected future cash flow beyond 2029, which has been extrapolated using an estimated
average long-term growth rate, or terminal growth rate, of 2.0% (2.0).
Sensitivity analysis
A sensitivity analysis has been performed regarding the key assumptions applied in impairment testing. The following assumptions have
been tested for sensitivity:
• The organic growth rate for years 2–5 is five percentage points lower.
• The gross profit margin is five percentage points lower.
• The working capital requirement for organic growth is five percentage points higher.
• The discount rate is two percentage points higher.
None of the above assumptions have resulted in impairment of any of the Group’s cash-generating units, for which reason no impairment
loss needs to be recognized.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 15. Property, plant and equipment
2024 2023
Leasehold improvements
Cost
Opening balance, January 1 10.8 9.9
Additions for the year 1.7 0.9
Divestments for the year - -
Reclassifications for the year - -
Additions as a result of acquisitions - -
Translation difference 0.2 0.0
Closing balance, December 31 12.8 10.8
Depreciation and impairment
Opening balance, January 1 -2.8 -1.6
Depreciation and impairment for the year -1.4 -1.2
Divestments for the year - -
Additions as a result of acquisitions - -
Translation difference -0.1 0.0
Closing balance, December 31 -4.2 -2.8
Carrying amount, December 31 8.6 8.0
Equipment, fixtures and fittings
Cost
Opening balance, January 1 28.8 20.5
Additions for the year 2.9 8.5
Divestments for the year -2.8 -0.1
Additions as a result of acquisitions - -
Translation difference 0.3 -0.1
Closing balance, December 31 29.4 28.8
Depreciation and impairment
Opening balance, January 1 -15.3 -11.7
Depreciation and impairment for the year -4.7 -3.7
Divestments for the year 2.6 0.0
Additions as a result of acquisitions - -
Translation difference -0.2 0.1
Closing balance, December 31 -17.6 -15.3
Carrying amount, December 31 11.8 13.5
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Goodwill by cash-generating unit 2024 2023
Sysint AS 68.3 69.6
MilDef 254.2 -
Handheld Group AB - 261.2
MilDef Integration Sweden AB - 130.7
Total 322.6 461.5
See also Note 29.
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2024 2023
Right-of-use assets
Cost
Opening balance, January 1 140.8 107.2
Additional right-of-use assets 5.9 42.7
Additions as a result of acquisitions - -
Completed contracts -7.7 -8.5
Reclassification for the year - -
Translation differences 1.2 -0.6
Closing balance, December 31 140.2 140.8
Depreciation and impairment
Opening balance, January 1 -40.3 -22.0
Depreciation and impairment for the year -35.6 -22.8
Completed contracts 6.2 4.1
Reclassification for the year - -
Translation differences -0.5 0.4
Closing balance, December 31 -70.2 -40.3
Carrying amount, December 31 70.0 100.5
As of December 31, right-of-use assets were recognized at a carrying amount of SEK 70.0 million (100.5), comprising leased property at SEK 58.8 million
(87.2) and leased vehicles at SEK 11.3 million (13.3).
Depreciation is recognized in comprehensive income as follows:
Cost of goods sold 0.7 2.3
Selling expenses 16.4 14.3
Administrative expenses 6.0 5.3
Research and development expenses 6.1 6.0
Total 29.2 27.8
Note 16. Other non-current receivables
2024 2023
Opening balance, January 1 0.3 0.3
Adjustment of receivables from employees - -
Translation difference 0.0 0.0
Total 0.3 0.3
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 17. Inventories
2024 2023
Inventories including obsolescence reserve
Products in progress 12.5 2.5
Finished products and goods for resale 243.2 300.4
Advance payments to suppliers 3.2 8.6
Total 259.0 311.5
Change in obsolescence reserve
Opening balance, January 1 -21.3 -16.4
Change in obsolescence reserve -5.1 -5.8
Disposals 1.9 1.0
Exchange rate differences 0.0 0.0
Obsolescence reserve as of December 31 -24.6 -21.3
Carrying amount, December 31 234.4 290.2
Note 18. Accounts receivable
2024 2023
Accounts receivable 330.1 284.5
Total 330.1 284.5
Age analysis, accounts receivable
Accounts receivable not past due 290.7 223.0
Accounts receivable 1–30 days past due 28.6 32.4
Accounts receivable 31–90 days past due 5.0 20.6
Accounts receivable >90 days past due 5.7 8.6
Total 330.1 284.5
MilDef applies the simplified method to calculate credit losses. This is based on historical data on payment collection patterns and the counterparty’s ability to
pay. Based on historical data, the expected credit losses are extremely limited. The Group did not recognize any credit losses during the year.
As of December 31, 2024, accounts receivable of SEK 39.4 million (61.5) were due within the Group, for which no requirement to recognize an impairment loss
is considered to exist. The maximum exposure for credit risk as of the closing day is the fair value of accounts receivable and contract assets, which corresponds to
the carrying amount.
No assets have been pledged as security for recognized receivables.
Note 19. Prepaid expenses and accrued income
2024 2023
Prepaid rent 4.4 4.5
Prepaid vehicle leases 0.6 0.2
Prepaid insurance 2.5 1.5
Prepaid marketing expenses 1.2 0.5
Prepaid bank fees 1.3 0.4
Prepaid R&D - 2.7
Prepared IT service 3.6 3.0
Accrued income 0.1 0.0
Other items 2.3 1.6
Total 15.9 14.3
The direct material cost for operations as a whole amounted to SEK 651.7 million (587.5) during the year, including a negative adjustment to the obsoles-
cence reserve of SEK 3.2 million (4.0). The obsolescence reserve for finished products and goods for resale is SEK 24.6 million (21.3), equivalent to 9% (7)
of the inventory value before deduction for obsolescence.
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 21. Pledged assets
2024 2023
Chattel mortgages - 67.5
Shares in subsidiaries - 0.2
Total - 67.7
Contingent liabilities
Guarantee commitments for subsidiaries 7.7 5.5
Total 7.7 5.5
Note 20. Equity and number of shares
As of December 31, 2024 the registered share capital consisted of 45,573,068 ordinary shares with a quota value of SEK 0.25 per share. All of the shares
are fully paid. No shares are owned by the Company itself or its subsidiaries. Shareholders are entitled to dividends, and the shareholding carries a right to
vote at the Annual General Meeting with one vote per share.
Change in number of shares No. of shares Share
capital
Other capital
contributions Total
As of January 1, 2023 39,859,566 10.0 729.3 739.3
New share issue - - - -
Issue costs - - - -
As of December 31, 2023 39,859,566 10.0 729.3 739.3
New share issue 5,713,502 1.4 511.4 512.8
Issue costs - - -17.8 -17.8
As of December 31, 2024 45,573,068 11.4 1,222.8 1,234.3
Reserves within equity
The consolidated equity includes a translation reserve. The translation reserve covers all exchange rate differences arising on translation of financial state-
ments from foreign entities that have prepared their statements in a currency other than the Group’s reporting currency (SEK).
Incentive program 2021/2025
At an extraordinary shareholders’ meeting on April 29, 2021, a resolution was passed to adopt an incentive program (“Incentive program 2021/2025) for
the Group’s employees by issuing warrants with the subsequent right to subscribe for new shares in MilDef. If the warrants are fully exercised, the share
capital may be increased by a maximum of SEK 110,375 through the issue of 441,500 shares, equivalent to dilution of around 1.1%. The warrants have
been transferred on market terms at a price that was established based on an estimated market value on the grant date using the recognized Black–Scholes
model. The calculation was carried out by an independent appraisal institution. Each warrant entitles the holder to subscribe for one new share in MilDef.
Registration to subscribe for shares can take place from September 1, 2024 until August 31, 2025. The Company reserves the right to buy back warrants if
the participant’s employment is terminated or if the participant wishes to transfer the warrants. Buy-back may take place at the market price of the warrants
at the time the preferential right is exercised. There were no other instruments with dilutive effect as of December 31, 2024.
Note 22. Interest-bearing liabilities including lease liabilities
2024 2023
Long-term borrowing
Liabilities to credit institutions 102.5 132.5
Contingent consideration - -
Lease liabilities 60.7 76.4
Short-term borrowing
Liabilities to credit institutions 31.4 119.1
Contingent consideration - 12.3
Lease liabilities 25.8 27.1
Total borrowing 220.4 367.5
MilDef has a SEK 250 million credit facility with SEB, running until July 2025, with an option to extend for two years.
Unutilized credit including cash and cash equivalents amounted to SEK 650.4 million (81.5).
MilDef’s overdraft facility amounts to SEK 120.0 million (120.0), of which SEK 0 million had been utilized on the closing day (120.0).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 23. Provisions
Provisions for warranties 2024 2023
Opening balance, January 1 1.7 0.7
Additions during the year 0.3 1.0
Reversed during the year - -
Translation difference 0.0 0.0
Closing balance, December 31 2.0 1.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Provision for restructuring reserve 2024 2023
Opening balance, January 1 - -
Additions during the year 12.4 -
Translation difference - -
Closing balance, December 31 12.4 -
Provision for charitable contributions 2024 2023
Opening balance, January 1 - -
Additions during the year 1.4 -
Reversed during the year - -
Translation difference - -
Closing balance, December 31 1.4 -
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 cost 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 impairment losses 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
These costs were recognized in the income statement for the fourth quarter of 2024.
Outstanding provisions as of December 31, 2024 amounted to SEK 12.4 million and consist of the following items:
• Personnel costs SEK 7.6 million
• Other operating expenses SEK 4.8 million
Total SEK 12.4 million
Warranty expenses
A provision has been made to assess the warranty costs for products that have been sold where warranties were still in effect as of the
end of the financial year. The warranties are expected to be adjusted in the upcoming financial year.
Charitable contributions
For many years MilDef has been donating around 1% of its operating profit to charitable causes. These organizations span everything from
protecting victims of domestic violence to giving hope to people with substance abuse problems, offering a safe and dry place to sleep
and get a meal, helping young students to finish school, and giving underserved people the chance to take part in sport. Quite simply,
actions that make things a little easier and restore hope to those who have lost hope.
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ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 25. Accrued expenses and deferred income
2024 2023
Accrued payroll expenses 23.1 31.4
Accrued social insurance contributions 14.5 15.8
Prepaid service contracts 14.9 16.0
Project work invoiced but not completed 76.0 9.3
Other items 8.4 6.1
Closing balance, December 31 137.0 78.7
Note 26. Other items with no cash flow impact
2024 2023
Change in provisions for the year 12.7 1.0
Translation differences on intra-Group transactions -2.8 1.4
Stock impairment losses 61.0 -
Capital gain/loss on disposal of non-current assets -5.9 -2.3
Capital gain/loss on early termination of lease 12.2 8.5
Total 77.1 8.6
Note 24. Contract assets and contract liabilities
2024 2023
Contract assets
Work performed but not yet invoiced 21.4 42.2
Total 21.4 42.2
2024 2023
Contract liabilities
Advance payments from customers 12.3 32.1
Total 12.3 32.1
As of January 1, 2024, contract liabilities amounted to SEK 32.1 million (11.4), of which SEK 21.0 million (6.9) was recognized as revenue in 2024. The
majority of the contract liabilities as of January 1, 2024 are expected to be recognized as revenue in 2025.
As of December 31, 2024, contract liabilities amounted to SEK 12.3 million (32.1). The restructuring program is the reason for the closing contract liabili-
ties being lower than in the previous year. The majority of the contract liabilities are expected to be recognized as revenue in 2025.
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Sales of goods and
services to related parties
Purchase of goods
from related parties
Liabilities to related
parties as of Dec. 31
Receivables from related
parties as of Dec. 31
MilDef Crete Inc. 0.0 96.6 1.9 5.2
Note 28. Transactions with related parties
The Group works closely with the holding company MilDef Crete Inc. in Taiwan. The table below provides a summary:
Note 27. Change in liabilities from financing activities
Interest-bearing
liabilities
Lease
liabilities
Total financial
liabilities
Opening balance, January 1, 2024 263.9 103.5 367.5
Cash flow -130.7 -21.8 -152.6
Acquisitions - - -
New and amended right-of-use agreements - 4.2 4.2
Translation differences 0.9 0.6 1.5
Other -0.2 - -0.2
Closing balance, December 31, 2024 133.9 86.5 220.4
Interest-bearing
liabilities
Lease
liabilities
Total financial
liabilities
Opening balance, January 1, 2023 227.9 86.8 314.7
Cash flow 36.0 -21.1 14.9
Acquisitions - - -
New and amended right-of-use agreements - 38.0 38.0
Translation differences -1.0 -0.2 -1.2
Other 1.1 - 1.1
Closing balance, December 31, 2023 263.9 103.5 367.5
ANNUAL REPORT 2024
Note 29. Acquisitions
Acquisitions 2024
In 2024 MilDef acquired certain assets of the UK company Advanced Vision Technologies Ltd (AVT). This transaction added a mature
offering within intelligent displays and quickly led to large orders being placed. The entire surplus of SEK 3.9 million has been allocated
to goodwill.
Acquisitions 2023
No acquisitions were made in 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
There were no other transactions with related parties. The transactions relate to the period January 1 – December 31, 2024.
Disclosures on remuneration of senior executives are provided in Note 11.
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Note 30. Events after the reporting period
On March 11, MilDef won a cybersecurity deal with Clavister, worth SEK 40 million. Clavister, a leader in European cybersecurity
for mission-critical applications, has on several occasions ordered MilDef's hardware for customized and robust network equip-
ment intended for installation in BAE System Hägglund's CV90 combat vehicle. On March 11, an order worth SEK 40 million was
signed. The hardware is a sub-component of two products in Clavister CyberArmour, a product family of AI-based, military-adapt-
ed Next-Generation Firewalls for defense applications. First serial delivery will take place in early 2027.
No other events that can be considered significant have taken place after the end of the year up to the date this Annual and Sus-
tainability Report was signed.
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
computer GmbH (“roda”). Roda is a supplier of military IT solutions with a strong market presence in Central Europe. The acqui-
sition was completed at the 6th of March 2025, which was after the reporting period, but before the financials statements were
authorized for issue . 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 27.3 million based on a EUR/SEK exchange rate of 11.54 and 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 preliminary valuation based on the preliminary consolidated
financial information for roda as of 31 December 2024, and should be viewed as indicative. At the time of issue of the annual
report, Mildef concluded that the preliminary balance sheet as of 31 december 2024 was the best available information to base
this preliminary purchase price allocation. The final valuation of the acquired assets and liabilities will be based on the values as
of the acquisition date, which is not yet available given the short passing of time since the acquisition date. The purchase price
allocation presented below is preliminary and will be adjusted when further information is available and have been analysed by
management. EUR values are translated to SEK in below summary with 11.54 SEK/EUR.
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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MSEK
Total purchase consideration 1124,3
Assets
Intangible assets 350,6
Property, plant and equipment 20,8
Right-of-use assets 45,3
Deferred tax assets 13,3
Inventories 225,7
Accounts receivable 137,1
Other current receivables 1,7
Cash and Cash equivalents 101,9
Liabilities
Non-current interest-bearing liabilities 38,8
Provisions 1,1
Deferred tax liabilities 115,9
Accounts payable 86,6
Current interest-bearing liabilities 6,5
Other current liabilities 142,1
Acquired identifiable net assets 505,6
Goodwill 618,7
Total acquired net assets 1 124,3
Purchase consideration comprises
Cash payment 807,8
Adjustment for net cash and working capital items* -43,7
Shares issued, at fair value 314,7
Additional purchase price liability 45,5
Total purchase consideration 1 124,3
Cash flow attributable to the acquisition
Cash payment of purchase consideration -807,8
Cash in acquired entity** 101,9
Total -705,9
Acquisition related costs -11,9
Net cash outflow -717,7
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.
The Group, in the preliminary purchase price allocation, measured the acquired lease liabilities using the present value of the
remaining lease payments at the date of acquisition. The right-of-use assets were measured at an amount equal to the lease liabi-
lities and adjusted to reflect the favourable terms of the lease relative to market terms.
As Roda Group has been acquired in the subsequent period from the period covered in the presented financial statements, no
profit or loss of the acquiree is included in the consolidated statement of comperhensive income for the reporting period. Informa-
tion about revenue and profit or loss of the combined entity for the current reporting period as though the acquisition had occured
as of the beginning of the annual reporting period will be presented in coming interim reporting when information is available.
* Calculated adjustments net debt and working capital items based on the preliminary balance sheet as of 31 December 2024.
The final cash payment adjustment will be based on the balance sheet as of closing date.
** Cash balances as per 31 December, 2024.
ANNUAL REPORT 2024NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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114
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===== SIDA 115 =====
FINANCIAL STATEMENTS AND NOTES
PARENT
COMPANY
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ANNUAL REPORT 2024PARENT COMPANY FINANCIAL STATEMENTS
Parent Company income statement
SEK m Notes 1–2 2024 2023
Net sales 3, 4 111.2 96.5
Selling expenses -41.5 -34.6
Administrative expenses -46.1 -39.2
Research and development expenses -29.1 -25.3
Restructuring costs -4.9 -
Other operating income/expenses 8 0.2 -1.9
Operating profit 3, 4, 5, 6, 7, 9 -10.2 -4.6
Financial income 10 32.6 19.3
Financial expense 10 -271.1 -19.2
Profit after financial items -248.7 -4.5
Year-end appropriations 11 27.1 1.4
Net profit for the year -221.6 -3.0
Income tax 12 -0.9 -0.2
Net profit for the year -222.5 -3.2
Parent Company statement of comprehensive income
Net profit for the year -222.5 -3.2
Other comprehensive income - -
Comprehensive income for the year -222.5 -3.2
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ANNUAL REPORT 2024PARENT COMPANY FINANCIAL STATEMENTS
Parent Company balance sheet
SEK m Notes 1–2 Dec. 31, 2024 Dec. 31, 2023
Non-current assets
Property, plant and equipment 13
Leasehold improvements 5.2 6.1
Equipment, fixtures and fittings 1.4 2.3
Total property, plant and equipment 6.6 8.3
Financial non-current assets
Holdings in Group companies 14 542.6 781.3
Total financial non-current assets 542.6 781.3
Total non-current assets 549.1 789.6
Current assets
Current receivables
Receivables from Group companies 255.6 288.7
Tax assets 7.9 7.9
Other receivables 2.7 1.1
Prepaid expenses and accrued income 15 18.1 5.8
Total current receivables 284.3 303.5
Cash and bank balances 474.4 36.1
Total current assets 758.7 339.6
TOTAL ASSETS 1,307.8 1,129.1
EQUITY, PROVISIONS AND LIABILITIES
Equity 16
Restricted equity
Share capital 11.4 10.0
Total restricted equity 11.4 10.0
Unrestricted equity
Share premium reserve 493.3 729.3
Retained earnings 721.0 14.5
Net profit for the year -222.5 -3.2
Total unrestricted equity 991.8 740.6
Total equity 1,003.2 750.6
Untaxed reserves 17 3.6 3.6
Provisions
Charitable contributions 1.4 -
Restructuring reserve 4.9 -
Total provisions 6.3 -
Non-current liabilities
Non-current interest-bearing liabilities 102.5 132.5
Total non-current liabilities 102.5 132.5
Current liabilities
Current interest-bearing liabilities 30.0 166.2
Accounts payable 8.1 4.7
Liabilities to Group companies 139.4 54.9
Other current liabilities 3.5 3.5
Accrued expenses and deferred income 18 11.3 13.2
Total current liabilities 192.3 242.5
EQUITY, PROVISIONS AND LIABILITIES 1,307.8 1,129.1
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ANNUAL REPORT 2024PARENT COMPANY FINANCIAL STATEMENTS
Parent Company statement of changes in equity
SEK m Share capital
Share premium
reserve
Retained earnings incl.
profit for the year Total equity
Opening balance, January 1, 2023 10.0 729.3 14.5 753.8
Comprehensive income for the year -3.2 -3.2
Allocation as resolved by the AGM - - - -
Transactions with shareholders in their capacity
as owners
New share issues after share issue expenses - - - -
Dividend to shareholders - - - -
Closing balance, December 31, 2023 10.0 729.3 11.3 750.6
Opening balance, January 1, 2024 10.0 729.3 11.3 750.6
Comprehensive income for the year -222.5 -222.5
Allocation as resolved by the AGM - -729.3 729.3 -
Transactions with shareholders in their capacity
as owners
Merger result - - 0.3 0.3
New share issues after share issue expenses 1.4 493.3 - 494.7
Dividend to shareholders - - -19.9 -19.9
Closing balance, December 31, 2024 11.4 493.3 498.5 1,003.2
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ANNUAL REPORT 2024PARENT COMPANY FINANCIAL STATEMENTS
Parent Company cash flow statement
SEK m 2024 2023
Operations
Operating profit -10.2 -4.6
Adjustments for non-cash items
Depreciation, amortization and impairment charged to operating profit 1.8 2.0
Other -1.1 -1.1
Total 0.7 0.9
Interest received 32.6 18.1
Interest paid -31.8 -17.2
Taxes paid -8.6 -8.8
Cash flow from operating activities before changes in working capital -17.3 -7.1
Increase (-) / decrease (+) in operating receivables 11.3 -114.7
Increase (+) / decrease (-) in operating liabilities 85.1 30.2
Changes in working capital 96.4 -84.4
Cash flow from operating activities 79.1 -91.5
Investing activities
Investments in property, plant and equipment -0.1 -0.8
Acquisition of subsidiaries -12.2 -23.8
Cash flow from investing activities -12.3 -24.6
Financing activities
Dividend to shareholders -19.9 -
New share issues, net 495.0 -
Increase in liabilities to credit institutions - 123.8
Decrease in liabilities to credit institutions -105.0 -30.0
Group contributions from subsidiaries 1.4 6.8
Cash flow from financing activities 371.5 100.6
Cash flow for the year 438.3 -15.4
Change in cash and cash equivalents
Cash and cash equivalents, January 1 36.1 51.6
Cash flow for the year 438.3 -15.4
Closing balance, cash and cash equivalents 474.4 36.1
Granted, unutilized credit 120.0 -
Available liquidity 594.4 36.1
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS ANNUAL REPORT 2024
Note 1. Accounting principles
Parent Company accounting and valuation principles
The Parent Company financial statements are prepared and presented in accordance with the Swedish Annual Accounts Act and the
Recommendations of the Swedish Corporate Reporting Board (RFR), RFR 2. Under the recommendations in RFR 2, the Parent Company
must apply all IFRS standards and statements approved by the EU wherever possible within the framework of the Annual Accounts Act
and taking into account the connection between accounting and taxation. The recommendation includes which exemptions from IFRS are
to be taken into account and which additions are to be made. The differences between the accounting principles for the Parent Company
and the Group are described below:
Classification and presentation
The Parent Company income statement and balance sheet are presented in accordance with the schedule contained in the Annual Ac-
counts Act. The main difference compared with IAS 1 Presentation of Financial Statements, which is applied to the presentation of the
consolidated financial statements, is recognition of financial income and expense, non-current assets and equity, and having provisions
as a separate heading.
Shares and holdings in Group companies
Holdings in Group companies are recognized at cost after deduction for any impairment losses. The cost includes acquisition-related ex-
penses and any contingent considerations. If there are indications of a loss in value of the holdings in Group companies, the recoverable
amount is calculated. If the recoverable amount is lower than the carrying amount, an impairment loss is recognized. Impairment loss is
recognized in financial expense.
Leases
The Parent Company applies the exemption from IFRS 16 Leases, which means that all leases are recognized at cost on a linear basis
over the lease term.
Untaxed reserves
The amounts set aside as untaxed reserves represent taxable temporary differences. Because of the link between accounting and taxation,
the deferred tax liability is recognized in the Parent Company as part of the untaxed reserves.
Group contributions and shareholders’ contributions
Shareholders’ contributions are recognized directly in equity for the recipient and capitalized under shares and holdings for the donor, in
so far as no impairment is required. Group contributions paid to subsidiaries are to be viewed as shareholders’ contributions. In accord-
ance with RFR 2, Group contributions to or from MilDef’s Group companies are recognized in the Parent Company income statement.
Financial instruments
The Parent Company applies the exemption in IFRS 9 Financial Instruments. Among other things this means that financial instruments
are measured initially at cost but that the same method as for the Group is applied to calculating the credit loss reserve.
Notes to the Parent Company financial statements
Note 3. Revenue
2024 2023
Net sales
Sales within the EU 80.3 72.7
Sales outside the EU 30.9 23.8
Total 111.2 96.5
Note 2. Estimates and judgments
Key sources of uncertainty in estimates
MilDef applies the simplified method to calculate credit losses. This is based on historical data on payment collection patterns and the
counterparty’s ability to pay. Based on historical data, the expected credit losses are extremely limited. The Parent Company has not
recognized any credit losses during the year, neither concerning accounts receivable nor receivables from Group companies, and no loss
reserve is considered necessary for these receivables.
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS ANNUAL REPORT 2024
Note 5. Lease payments
2024 2023
Operating leases
Lease payments for the year 10.0 10.2
Outstanding lease payments fall due as follows:
Within one year: 9.8 9.7
Later than one year but within five years: 36.9 37.0
Later than five years: 8.3 17.1
Total 54.9 63.7
The most material leases relate to lease of real estate used in business operations.
Note 6. Nature of expense method
2024 2023
Other costs 53.7 40.2
Personnel costs 66.1 57.0
Depreciation/amortization and impairment 1.8 2.0
Other operating expenses -0.2 1.9
Total 121.4 101.1
Note 7. Audit fees
2024 2023
Öhrlings PricewaterhouseCoopers AB:
Audit engagement 2.1 1.2
Audit-related activities besides the audit engagement - 0.1
Tax advisory services 0.1 0.1
Other services - -
Total 2.2 1.4
Note 4. Intra-Group purchases and sales
2024 2023
Percentage of sales to Group companies 100% 100%
Percentage of purchases from Group companies 4% 0%
Net sales relate to revenue for intra-Group services.
Mazars:
Audit engagement - 0.7
Audit-related activities besides the audit engagement - -
Tax advisory services - -
Other services - -
Total 0.0 0.7
The audit assignment consists of examination of the annual financial statements and accounting records, as well as the CEO and Board’s administration of
the Company, other tasks that are incumbent upon the Company’s auditors in order to prepare the Auditor’s Report, as well as advice or other assistance
required as a result of observations made during such review tasks.
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ANNUAL REPORT 2024
Note 8. Other operating income/expenses
2024 2023
Donations to the MilDef Charity Foundation 0.0 -1.0
Exchange gain relating to operations 15.5 10.2
Exchange loss relating to operations -15.3 -11.1
Total 0.2 -1.9
In 2024 MilDef made a provision of SEK 1.0 million for charitable contributions. This provision is recognized under administrative expenses in the Parent
Company income statement.
Note 9. Employees and personnel costs
2024 2023
Average number of employees 54 44
Percentage of men (%) 49 54
Number of employees as of December 31 57 45
Percentage of men (%) 47 51
Gender balance in management 2024 2023
Board of Directors 7 7
Percentage of men (%) 71 71
Management Team 7 6
Percentage of men (%) 57 50
Wages, salaries and other remuneration 2024 2023
Board of Directors & CEO 5.4 4.1
Other employees 35.2 32.2
Total 40.6 36.3
Social insurance contributions
All employees 20.1 18.0
Of which pension expenses
Board of Directors & CEO 0.8 0.2
Other employees 5.1 5.1
Total 5.9 5.3
For further information, see Note 11.
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 10. Financial items
2024 2023
Interest income 19.9 18.3
Exchange gain not relating to operations 12.7 1.0
Financial income 32.6 19.3
Exchange loss not relating to operations -10.4 -
Interest expense -20.5 -18.3
Impairment of holdings in subsidiaries -239.3 -
Other financial expense -0.9 -0.8
Financial expense -271.1 -19.2
Note 11. Year-end appropriations
2024 2023
Group contributions received 27.1 1.4
Change in accelerated depreciation/amortization - -
Total 27.1 1.4
Note 12. Tax on profit for the year
2024 2023
Current tax expense (-) / tax income (+)
Current tax for the year -0.9 0.0
Prior year adjustments - -0.2
Total -0.9 -0.2
Tax on profit for the year
Earnings before tax according to the income statement -221.6 -3.0
Tax according to the Parent Company tax rate (20.6%) 45.6 0.6
Reconciliation of recognized tax
Expenses recognized via equity 3.1 -
Non-taxable income 0.2 -
Non-deductible expenses -0.5 -0.7
Changes in value and impairment of capital assets -49.3 -
Recognized tax expense -0.9 -0.2
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 13. Property, plant and equipment
2024 2023
Leasehold improvements
Cost
Opening balance, January 1 8.4 8.0
Additions for the year - 0.3
Closing balance, December 31 8.4 8.4
Depreciation and impairment
Opening balance, January 1 -2.3 -1.5
Depreciation for the year -0.9 -0.8
Closing balance, December 31 -3.2 -2.3
Carrying amount, December 31 5.2 6.1
Equipment, fixtures and fittings
Cost
Opening balance, January 1 5.4 5.0
Additions for the year 0.1 0.5
Closing balance, December 31 5.5 5.4
Depreciation and impairment
Opening balance, January 1 -3.2 -2.0
Depreciation for the year -1.0 -1.2
Closing balance, December 31 -4.1 -3.2
Carrying amount, December 31 1.4 2.3
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 14. Holdings in Group companies
2024 2023
Cost
Opening balance, January 1 794.3 793.7
Additions for the year 0.6 0.6
Closing balance, December 31 794.9 794.3
Impairment losses
Opening balance, January 1 13.0 13.0
Impairment losses for the year 239.3 -
Closing balance, December 31 252.3 13.0
Carrying amount, December 31 542.6 781.3
Specification of holdings in Group companies
Group company / Corp. reg. no. / Registered office No. of shares Ownership (%) Carrying amount
MilDef International AB, 556422-8277, Helsingborg, Sweden 5,350 100 49.9
MilDef Products AB, 556874-1317, Helsingborg, Sweden 10,000 100 81.1
MilDef Ltd, 5756627, Cardiff, UK 340,000 100 2.1
MilDef, Inc., 5979209, Delaware, USA 120,000 100 1.3
MilDef AS, 959 279 772, Oslo, Norway 1,016 100 1.1
MilDef Sweden AB, 556994-2682, Rosersberg 1,000 100 182.4
Sysint AS, 825 838 392, Oslo, Norway 30,000 100 113.1
MilDef A/S, 43989014, Ballerup, Denmark 400,000 100 0.6
MilDef Oy, 3325523-7, Espoo, Finland 1,000 100 -
MilDef Germany Holding GmbH, Frankfurt, Germany 100 100 0.3
Handheld Group AB, 556556-2799, Lidköping, Sweden 4,374,000 100 110.7
HHCS Handheld Finland OY, 2089502-4, Lahti, Finland 100 100 -
Handheld Benelux BV, 1537360, Enschede, Netherlands 10,000 100 -
Handheld APAC PTY LTD, 146981526, Victoria, Australia 1,000 100 -
Handheld Germany GmbH, 91612811085, Freilassing, Germany 100 100 -
Handheld Swiss GmbH, 422378549, Landquart, Switzerland 100 100 -
Handheld UK Ltd., 7847370, Warwickshire, UK 100 100 -
Total 542.6
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
Note 17. Untaxed reserves
2024 2023
Accelerated depreciation/amortization 3.6 3.6
Total 3.6 3.6
Note 19. Contingent liabilities
2024 2023
Guarantee commitments for subsidiaries’ liabilities 7.7 5.5
Total 7.7 5.5
Note 18. Accrued expenses and deferred income
2024 2023
Accrued payroll expenses 4.6 4.3
Accrued social insurance contributions 2.8 3.8
Other items 3.9 5.0
Total 11.3 13.2
Note 15. Prepaid expenses and accrued income
2024 2023
Prepaid rent 2.4 2.4
Prepaid insurance 1.8 0.6
Acquisition costs incurred 10.8 -
Prepaid bank fees 1.3 0.4
Prepaid IT services 1.4 2.0
Other items 0.4 0.4
Total 18.1 5.8
Note 16. Equity
One share in MilDef Group AB has a quota value of SEK 0.25. The number of shares is 45,573,068 (39,859,566) and the share capital amounts to
SEK 11,393,267 (9,964,891.50).
Change in number of shares No. of shares Share
capital
Other capital
contributions Total
As of January 1, 2023 39,859,566 10.0 729.3 739.3
New share issue - - - -
Issue costs - - - -
As of December 31, 2023 39,859,566 10.0 729.3 739.3
Allocation as resolved by the AGM - - -729.3 -729.3
New share issue 5,713,502 1.4 511.1 512.5
Issue costs - -17.8 -17.8
As of December 31, 2024 45,573,068 11.4 493.3 504.7
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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ANNUAL REPORT 2024
The following profit of the Parent Company is at the disposal of the Annual General Meeting:
SEK
Share premium reserve 493,260,337
Retained earnings 720,975,689
Comprehensive income for the year -222,464,369
Closing balance, December 31 991,771,657
The Board proposes that the profit be allocated as follows:
A dividend to the shareholders of SEK 0.50 per share 22,786,534
Carried forward 968,985,123
Total 991,771,657
After implementation of the proposed allocation of profit, equity in the Parent Company is as follows:
Share capital 11,393,267
Share premium reserve 493,260,337
Retained earnings 475,724,787
Total 980,378,390
MilDef’s policy regarding dividends is to distribute an annual dividend of 20–40% of profit after tax. MilDef will, however, take long-term development, the
capital structure and the prevailing market conditions into account.
The Board proposes that SEK 22.8 million, or SEK 0.50 per share, is distributed as dividends to the shareholders. This is calculated on the number of
outstanding shares as of December 31, 2024, i.e. 45,573,068. The equity/assets ratio for the Group is 65.4% (55.4) and after allocation of earnings, the
equity/assets ratio is 64.1%. 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.
Note 20. Proposal for allocation of profit
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
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SIGNATURES ANNUAL REPORT 2024
The Annual Report and consolidated financial statements were, as stated above,
approved for issuance by the Board of Directors and CEO on March 27, 2025.
Our auditor’s report was issued on April 9, 2025
Björn Karlsson
Chair of the Board
Lennart Pihl
Board member
Jan Andersson
Board member
Eric Salander
Authorized Public Accountant
Auditor-in-Charge
Marianne Trolle
Board member
Christian Hammenborn
Board member
Daniel Ljunggren
Chief Executive Officer
Bengt Arne Molin
Board member
Johan Rönnbäck
Authorized Public Accountant
Charlotte Darth
Board member
The Board of Directors and CEO hereby certify that the annual
accounts have been prepared in accordance with the Swedish
Annual Accounts Act and RFR 2, Accounting for Legal Enti-
ties, and give a true and fair view of the Company’s financial
position and results, and that the Directors’ Report provides
a true and fair overview of the development in the Company’s
operations, financial position and results, and describes signif-
icant risks and factors of uncertainty facing the Company. The
Board of Directors and CEO hereby certify that the consoli-
dated financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS), as
adopted in the EU, and give a true and fair view of the Group’s
Signatures
financial position and results, and that the Directors’ Report
for the Group gives a true and fair view of the development
in the Group’s operations, financial position and results, and
describes significant risks and factors of uncertainty facing
the companies in the Group. The annual accounts and the
consolidated financial statements were approved for issuance
by the Board of Directors on March 27, 2025. The consolidat-
ed statement of comprehensive income and balance sheet and
the Parent Company income statement and balance sheet will
be subject to adoption by the Annual General Meeting on May
22, 2025.
Öhrlings PricewaterhouseCoopers AB
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ANNUAL REPORT 2024AUDITOR’S REPORT
REPORT ON THE ANNUAL ACCOUNTS
AND CONSOLIDATED ACCOUNTS
Opinions
We have performed an audit of the annual accounts and
consolidated accounts of MilDef Group AB for year 2024. The
annual accounts and consolidated accounts of the company
are included on pages 70-128 in this document.
In our opinion, the annual accounts have been prepared in
accordance with the Annual Accounts Act and present fairly,
in all material respects, the financial position of the parent
company as of 31 December 2024 and its financial perfor-
mance and cash flow for the year then ended in accordance
with the Annual Accounts Act.
The consolidated accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material
respects, the financial position of the group as of 31 Decem-
ber 2024 and their financial performance and cash flow for
the year then ended in accordance with IFRS Accounting Stan-
dards, as adopted by the EU, and the Annual Accounts Act.
The statutory administration report is consistent with the other
parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of share-
holders adopts the income statement and balance sheet for
the parent company and the group.
Our opinions in this report on the annual accounts and consoli-
dated accounts are consistent with the content of the addi-
tional report that has been submitted to the parent company's
audit committee in accordance with the Audit Regulation
(537/2014/EU) Article 11.
Basis for Opinions
We conducted our audit in accordance with International
Standards on Auditing (ISA) and generally accepted auditing
standards in Sweden. Our responsibilities under those stan-
dards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the
group in accordance with professional ethics for accountants
in Sweden and have otherwise fulfilled our ethical responsibili-
ties in accordance with these requirements. This includes that,
based on the best of our knowledge and belief, no prohibited
services referred to in the Audit Regulation (537/2014/EU) Ar-
ticle 5.1 have been provided to the audited company or, where
applicable, its parent company or its controlled companies
within the EU.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinions.
Our audit approach
Focus and scope of the audit
We designed our audit by determining materiality and asses-
sing the risks of material misstatement in the consolidated
financial statements. In particular, we considered where the
Board of Directors and the Managing Director made subjective
judgements; for example, in respect of significant accounting
estimates that involved making assumptions and considering
future events that are inherently uncertain. As in all of our
audits, we also addressed the risk of the Board of Directors
To the shareholders’ meeting of MilDef Group AB, corp. reg. no. 556893-5414
and the Managing Director override of internal controls, inclu-
ding among other matters consideration of whether there was
evidence of bias that represented a risk of material misstate-
ment due to fraud.
We tailored the scope of our audit in order to perform suffi-
cient work to enable us to provide an opinion on the consoli-
dated financial statements as a whole, taking into account the
structure of the group, the accounting processes and controls,
and the industry in which the group operates.
Materiality
The scope of our audit was influenced by our application of
materiality. An audit is designed to obtain reasonable assu-
rance whether the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error.
They are considered material if individually or in aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of the consolidated
financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall
group materiality for the consolidated financial statements
as a whole. These, together with qualitative considerations,
helped us to determine the scope of our audit and the nature,
timing and extent of our audit procedures and to evaluate the
effect of misstatements, both individually and in aggregate on
the financial statements as a whole.
Key audit matters
Key audit matters of the audit are those matters that, in our
professional judgment, were of most significance in our audit
of the annual accounts and consolidated accounts of the
current period. These matters were addressed in the context
of our audit of, and in forming our opinion thereon, the annual
accounts and consolidated accounts as a whole, but we do not
provide a separate opinion on these matters.
Key audit matter
Valuation of goodwill and intangible assets
Reference to note 1 and note 14 in the annual report. The
value of the intangible assets as of 31 December 2024
amounts to SEK 379 million and constitutes a significant part
of the group's balance sheet. In accordance with IFRS, the
group makes an annual assessment of the value of the assets,
which is based on the calculation of discounted future cash
flows.
Some of the assumptions and assessments the management
makes regarding future cash flows and conditions are complex
and have a major impact on the calculation of the value in
use. This applies in particular to the following; growth rate,
profit margins, and discount rate. Changes in these assump-
tions could lead to a change in the reported value of intan-
gible assets and goodwill, whereby we consider this to be a
particularly significant area. No need for impairment has been
identified by management in the impairment tests that have
been carried out.
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ANNUAL REPORT 2024AUDITOR’S REPORT
Mildef has, as shown in the annual report, restructured the
operations in the subsidiary Handheld and in connection with
this identified an impairment of 185 million SEK consisting
of goodwill and trademark. No additional need for impairment
has been identified by management..
How our audit considered the key audit matter
In our audit, we have assessed the calculation model used
and challenged the material assumptions used by manage-
ment in their tests. We have assessed the reasonableness of
the budget presented by management and approved by the
board by evaluating historical outcomes against established
budgets. We have compared the growth in the terminal value
with independent forecasts concerning economic growth and
assessed whether the assumptions used are within a reasona-
ble range. We have also assessed the discount rate (weighted
average cost of capital ("WACC")) against comparable busines-
ses and assessed whether the assumptions used are within a
reasonable range. We have also evaluated the management's
assessment of how the group's calculation models are affected
by changes in assumptions and compared this with the infor-
mation presented in the annual report related to impairment
tests. We have also assessed the accuracy of the information
that appears in the annual report.
Other information than the annual accounts and consolidated
accounts
This document also contains other information than the annual
accounts and consolidated accounts and can be found on
pages 1-52, 62-69 and 133-140.
The Board of Directors and the Managing Director are respon-
sible for this other information.
Our opinion on the annual accounts and consolidated accounts
does not cover this other information and we do not express
any form of assurance conclusion regarding this other informa-
tion.
In connection with our audit of the annual accounts and
consolidated accounts, our responsibility is to read the infor-
mation identified above and consider whether the information
is materially inconsistent with the annual accounts and conso-
lidated accounts. In this procedure we also take into account
our knowledge otherwise obtained in the audit and assess
whether the information otherwise appears to be materially
misstated.
If we, based on the work performed concerning this informa-
tion, conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director are
responsible for the preparation of the annual accounts and
consolidated accounts and that they give a fair presentation in
accordance with the Annual Accounts Act and, concerning the
consolidated accounts, in accordance with IFRS Accounting
Standards, as adopted by the EU, and the Annual Accounts
Act. The Board of Directors and the Managing Director are
also responsible for such internal control as they determine is
necessary to enable the preparation of annual accounts and
consolidated accounts that are free from material misstate-
ment, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts,
the Board of Directors and the Managing Director are respon-
sible for the assessment of the company and group's ability
to continue as a going concern. They disclose, as applicable,
matters related to going concern and using the going concern
basis of accounting. The going concern basis of accounting is
however not applied if the Board of Directors and the Mana-
ging Director intends to liquidate the company, cease opera-
tions or has no realistic alternative to doing any of this.
The Audit Committee shall, without prejudice to the Board of
Director’s responsibilities and tasks in general, among other
things oversee the company’s financial reporting process.
Auditor's responsibility
Our objectives are to obtain reasonable assurance about
whether the annual accounts and consolidated accounts as
a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes
our opinions. Reasonable assurance is a high level of assuran-
ce, but is not a guarantee that an audit conducted in accor-
dance with ISAs and generally accepted auditing standards
in Sweden will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic deci-
sions of users taken on the basis of these annual accounts and
consolidated accounts.
A further description of our responsibility for the audit of the
annual accounts and consolidated accounts is available on
Revisorsinspektionen’s website: www.revisorsinspektionen.se/
revisornsansvar. This description is part of the auditor's report.
Report on other legal and regulatory
requirements
The auditor’s examination of the administration of the
company and the proposed appropriations of the
company’s profit or loss
Opinions
In addition to our audit of the annual accounts and consolida-
ted accounts, we have also audited the administration of the
Board of Directors and the Managing Director of MilDef Group
AB for year 2024 and the proposed appropriations of the
company’s profit or loss.
We recommend to the general meeting of shareholders that
the profit be appropriated in accordance with the proposal in
the statutory administration report and that the members of
the Board of Directors and the Managing Director be dischar-
ged from liability for the financial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsi-
bilities section. We are independent of the parent company
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ANNUAL REPORT 2024AUDITOR’S REPORT
and the group in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors is responsible for the proposal for app-
ropriations of the company’s profit or loss. At the proposal of a
dividend, this includes an assessment of whether the dividend
is justifiable considering the requirements which the company
and group's type of operations, size and risks place on the size
of the parent company's equity, consolidation requirements,
liquidity and position in general.
The Board of Directors is responsible for the company’s
organization and the management of the company’s affairs.
This includes among other things continuous assessment of
the company and group's financial situation and ensuring that
the company's organization is designed so that the accounting,
management of assets and the company’s financial affairs
otherwise are controlled in a reassuring manner. The Managing
Director shall manage the ongoing administration according to
the Board of Directors’ guidelines and instructions and among
other matters take measures that are necessary to fulfill the
company’s accounting in accordance with law and handle the
management of assets in a reassuring manner.
Auditor's responsibility
Our objective concerning the audit of the administration, and
thereby our opinion about discharge from liability, is to obtain
audit evidence to assess with a reasonable degree of assu-
rance whether any member of the Board of Directors or the
Managing Director in any material respect:
• has undertaken any action or been guilty of any omission
which can give rise to liability to the company, or
• in any other way has acted in contravention of the Com-
panies Act, the Annual Accounts Act or the Articles of
Association.
Our objective concerning the audit of the proposed appropria-
tions of the company’s profit or loss, and thereby our opinion
about this, is to assess with reasonable degree of assurance
whether the proposal is in accordance with the Companies
Act.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with gene-
rally accepted auditing standards in Sweden will always detect
actions or omissions that can give rise to liability to the com-
pany, or that the proposed appropriations of the company’s
profit or loss are not in accordance with the Companies Act.
A further description of our responsibility for the audit of the
administration is available on Revisorsinspektionen's website:
www.revisorsinspektionen.se/revisornsansvar. This description
is part of the auditor's report.
The auditor's examination of the Esef report
Opinion
In addition to our audit of the annual accounts and conso-
lidated accounts, we have also examined that the Board of
Directors and the Managing Director have prepared the annual
accounts and consolidated accounts in a format that enables
uniform electronic reporting (the Esef report) pursuant to
Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528) for MilDef Group AB (publ) for the year 2024.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the Esef report has been prepared in a format
that, in all material respects, enables uniform electronic
reporting.
Basis for Opinion
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the Esef report. Our
responsibility under this recommendation is described in more
detail in the Auditors’ responsibility section. We are indepen-
dent of MilDef Group AB (publ) in accordance with profes-
sional ethics for accountants in Sweden and have otherwise
fulfilled our ethical responsibilities in accordance with these
requirements.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director are respon-
sible for the preparation of the Esef report in accordance with
the Chapter 16, Section 4(a) of the Swedish Securities Market
Act (2007:528), and for such internal control that the Board
of Directors and the Managing Director determine is necessary
to prepare the Esef report without material misstatements,
whether due to fraud or error.
Auditor's responsibility
Our responsibility is to obtain reasonable assurance whether
the Esef report is in all material respects prepared in a format
that meets the requirements of Chapter 16, Section 4(a) of
the Swedish Securities Market Act (2007:528), based on the
procedures performed.
RevR 18 requires us to plan and execute procedures to
achieve reasonable assurance that the Esef report is prepared
in a format that meets these requirements.
Reasonable assurance is a high level of assurance, but it is
not a guarantee that an engagement carried out according
to RevR 18 and generally accepted auditing standards in
Sweden will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of the Esef report.
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