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MilDef Group Annual and Sustainability Report 2025
68
Guidelines for remuneration
of senior executives
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. Variable cash remuneration is to have a
predetermined ceiling and may not exceed 50% of the fixed
annual cash salary. Variable remuneration is only pension-
able where this is required in line with binding collective
bargaining agreements or local legislation. Additional
variable remuneration can be paid in extraordinary circum-
stances, provided that such extraordinary arrangements
are time-limited 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 executives are to be taken by
the Remuneration Committee based on a proposal from the
President & CEO.
Pension
Senior executives are entitled to pension solutions accord-
ing to the collective bargaining agreement (Technology
Industries of Sweden). As a rule, pension obligations are
to be in the form of a defined-contribution plan and in line
with the ITP1 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. The Company also makes provisions for part-time
In accordance with the Swedish Companies Act and the
Swedish Corporate Governance Code, the shareholders’
meeting of a public limited company whose shares are ad-
mitted for trading on a regulated market is to adopt guide-
lines for remuneration of senior executives. The following
guidelines for remuneration of the CEO and other senior ex-
ecutives were adopted at the 2025 Annual General Meeting.
The guidelines cover senior executives, including the Presi-
dent & 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 2025 Annual General
Meeting. The principles do not apply to any remuneration
agreed or approved at the Annual General Meeting.
MilDef is a systems integrator and comprehensive supplier
specialized in rugged IT for defense and security applica-
tions. As a leading supplier of tactical IT, MilDef has linked its
strategies to expansion within three areas: hardware, soft-
ware and services. MilDef’s offering in these areas is known
for being rugged, secure and customizable. Three pillars of
growth underlie MilDef’s future expansion and form the
basis for the Company’s strategy: internationalization, port-
folio development and acquisitions. For further information
on MilDef’s strategy, see www.mildef.com.
MilDef’s ability to recruit, develop and retain high-caliber
senior executives is a prerequisite for successful implementa-
tion of the business 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 packages.
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
ANNUAL REPORT 2025GUIDELINES FOR REMUNERATION OF SENIOR EXECUTIVES
In accordance with the Swedish Companies Act and the Swedish Corporate Governance Code, the share-
holders’ 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 CEO and other senior executives were adopted at the 2025 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
2025 Annual General Meeting. The principles do not apply to any remuneration agreed or approved at
the Annual General Meeting.
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ANNUAL REPORT 2025GUIDELINES FOR REMUNERATION OF SENIOR EXECUTIVES
pension benefits. 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 variable 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.
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 mandatory 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 performance period the Committee must
determine to what extent the criteria for award of variable
remuneration have been met. The Remuneration Commit-
tee is responsible for making the assessment on variable
remuneration for the President & CEO. Assessments on
variable remuneration for other executives are the respon-
sibility 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 remunera-
tion 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 employees. 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 sub-
sequently 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 Remu-
neration 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 remuneration programs for the
Management Team, the application of remuneration guide-
lines 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 sharehold-
er-elected 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 affect
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 remunera-
tion 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 Remuner-
ation Report. The Remuneration Committee’s duties include
preparatory work for the Board’s decisions on matters con-
cerning remuneration of the Management Team, including
decisions on deviations from the guidelines.
Description of material changes in the guidelines for remu-
neration of senior executives, and representation of any
views from shareholders
The entire Guidelines for remuneration of senior executives
were reviewed ahead of the 2025 Annual General Meeting.
Material changes were as follows. Variable cash remunera-
tion is to have a predetermined ceiling and may not exceed
50% of the fixed annual cash salary. The limit was previously
a maximum of 35%. The Company entered into a collective
bargaining agreement on January 1, 2025 with Technology
Industries of Sweden (Teknikföretagen) and pension bene-
fits are now managed within the framework of that agree-
ment. The costs are in line with previous levels. No view-
points on the remuneration guidelines have been expressed
by the Company’s shareholders.
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MilDef Group Annual and Sustainability Report 2025
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MilDef Group Annual and Sustainability Report 2025
70
REMUNERATION REPORT 2025
MilDef’s development
The Company’s development and significant events
during the year are reported inter alia in the CEO’s presen -
tation, see “CEO’s comments”.
Board fees and consulting fees
This report does not cover board fees. A resolution on
these fees is passed by the Annual General Meeting each
year. The current fees are reported in Note 11.
MilDef’s remuneration guidelines: scope, purpose and
deviations
Successful implementation of the Company’s business
strategy and protection of the Company’s long-term
interests, including its sustainability, require the Company
to be able to recruit and retain qualified employees. The
objective of MilDef’s guidelines for remuneration of senior
executives is therefore to offer a competitive, market-
based remuneration package, so as to be able to attract,
motivate and retain skilled and qualified employees. These
guidelines make it possible to offer competitive market-
based remuneration packages to senior executives.
The remuneration package consists of the following
components:
• Fixed cash salary
• Short-term variable cash remuneration
• Pensions and other benefits
This Remuneration Report explains how the Guidelines for remuneration of senior executives adopted by
the 2025 Annual General Meeting have been applied during the 2025 financial year. The report also con-
tains details concerning remuneration of the Company’s CEO and Deputy CEO, and fees to board mem-
bers over and above the board fees adopted by the shareholders’ meeting. The report has been prepared
in accordance with the Swedish Companies Act (2005:551) and the Swedish Corporate Governance Code.
Additional information on remuneration of senior executives required pursuant to Chapter 5, Sections
40–44 of the Swedish Annual Accounts Act (1995:1554) can be found in Note 11 to the consolidated
financial statements. For more information on the work of the Remuneration Committee in 2025, see the
Corporate Governance Report.
ANNUAL REPORT 2025REMUNERATION REPORT
Short-term variable cash remuneration is to be linked to
predetermined, well-defined and measurable financial
criteria. The targets aim to promote MilDef’s development
in both the short and long term. The measurement period
for variable remuneration is generally based on perfor -
mance over a 12-month period. The variable remuneration
must not exceed 50% of the fixed salary and, where appli -
cable legislation permits, is not to be qualifying income for
pension or holiday pay purposes.
The criteria for short-term variable remuneration are divided
into two different programs based on MilDef’s net sales
and operating profit (EBITA). Variable remuneration may
also be linked to individual criteria. The criteria are to be
designed so as to promote the Company’s business strategy
and long-term interests, including its sustainability. The
guidelines can be found in “Guidelines for remuneration of
senior executives”.
Other non-monetary benefits may include life assurance
and health insurance. In total, premiums and other costs
associated with such benefits may not exceed 15% of the
fixed annual cash salary.
In 2025 the Company has followed the applicable remu -
neration guidelines adopted by the 2025 Annual General
Meeting. There were no departures from the guidelines
or deviations from the decision-making process pre -
scribed by the guidelines for setting the remuneration. No
remuneration has been reclaimed. The auditor’s state -
ment on the Company’s compliance with the guidelines is
available at https://investors.mildef.com/corporate-gover -
nance/?lang=en from May 21, 2026.
Total remuneration of CEO and Deputy CEO in 2025 (SEK 000)
Refers to remuneration expensed during the year
Basic
salary
Variable
remunera -
tion
Other taxable
benefits
Pension
cost
Total
remunera -
tion
Share
of fixed
remunera -
tion
President & CEO,
Daniel Ljunggren 2,747 - 216 796 3,759 100%
Deputy CEO
Fredrik Persson 1,741 - 8 375 2,124 100%
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ANNUAL REPORT 2025REMUNERATION REPORT
Share-based incentive program
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. The fact that the
resolution was passed at a shareholders’ meeting means
it is not covered by these guidelines but should still be
seen as being in the same spirit. The warrants have been
transferred on market terms at a price (premium) that was
established based on an estimated market value using the
recognized Black–Scholes model. The calculation was
carried out by an independent appraisal institution. For
more information, visit www.mildef.com.
Long-term Incentive Program 2025/2028
The 2025 Annual General Meeting voted in favor of the
Board’s proposal for a performance-based long-term
incentive program (LTIP 2025/2028) for MilDef’s Manage -
ment Team comprising six employees. The participants
will be allotted performance-based stock options that may
give entitlement to shares in the Company. Each warrant
entitles the holder to one share if the maximum outcome
in the program is reached. After the vesting period the
participants will be allotted shares in MilDef Group AB at
no cost if certain performance targets are met. One basic
requirement for allotment of shares is that the participant,
subject to certain exceptions, remains employed within the
MilDef Group throughout the three years of the program.
A further requirement is that MilDef’s adjusted EBITDA
per share during the period of validity has reached certain
minimum levels and that MilDef’s share price development
on Nasdaq Stockholm has been positive during the same
period. The number of shares that can be allotted to the
participants according to LTIP 2025/2028 is capped at
20,000, which is equivalent to around 0.04% of all the
outstanding shares in the Company. During the year,
15,000 warrants were allotted to employees.
The Group’s performance based long-term incentive
program will enable the employees to obtain shares in the
Company. The fair value of the allotted warrants will be
recognized as an employee expense with an equivalent
increase in equity. The fair value will be established on the
allotment date and distributed over the vesting period.
The recognized expense will be equivalent to the fair
value of the warrants, taking into account market condi -
tions. The actual expense recognized during the course
of the program will be affected by the extent to which the
service and performance terms are met. However, the
recognized expense will not be affected by whether or not
terms relating to market conditions are met. Social security
contributions attributable to share-related instruments for
employees as remuneration for services performed will be
expensed over the periods during which those services
are performed. Social security contribution liabilities are
based on the fair value of the shares on the reporting date
and on assessments made at the end of each period of the
outcome of all the terms in the program.
The total cost of this share-based remuneration amounted
to SEK 0.5 million during the period, with an equivalent
increase reported directly in equity. In addition to this, the
cost of social security contributions has been expensed at
SEK 0.2 million with an equivalent liability for these contri -
butions of the same amount.
Application of performance criteria
The CEO’s performance criteria for 2025 are divided into
two different parameters based on MilDef’s net sales and
operating profit (EBITA). Although they are expressed in
financial terms, the performance criteria further contribute
to alignment with sustainability and the Company’s values.
The targets for results on each parameter are linked to
ambitious internal targets and the award is paid out the
following year.
Helsingborg, April 15, 2026
The Board of Directors of MilDef Group AB (publ)
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MilDef Group Annual and Sustainability Report 2025
72
ANNUAL REPORT 2025DIRECTORS’ REPORT
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 demanding environments. MilDef is a full-spectrum
supplier of rugged electronics, complete hardware
systems as well as software and services for defense and
security. Digitalization is increasing within defense, as is
the need 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 quality and high delivery
precision.
At year-end 2025 MilDef consisted of 17 legal entities with
just over 500 employees in eight countries. The Group
posted revenue for full-year 2025 of SEK 2,045 million with
an adjusted operating EBITA margin of 13.5%. MilDef was
listed on Nasdaq Stockholm in 2021 and since January
2023 has been traded on the Mid Cap Index.
Group structure and 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 62 (57) employees.
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 subsidiaries 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. The total number of shares as of December 31, 2025
was 47,114,895 (45,573,068) and the share capital was SEK
11,778,723.75 (11,393,267.00). All of the shares are ordinary
shares carrying the same voting rights. The shares have
a quota value of SEK 0.25. At the end of the period the
closing price was SEK 119.80 and the market capitalization
was SEK 5,644 million. The total number of shareholders at
the end of the period was 44,431.
The largest shareholder in terms of votes is Swedbank
Robur Fonder with a total shareholding of 9.48% of the
capital and votes in the Company as of December 31,
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, 2025. 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.
2025. The 10 largest shareholders represented around
37% 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 Articles of As -
sociation. 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 appointment or dismissal of board members or
on amendments to the Articles of Association.
Financial targets
There are four financial targets for MilDef’s 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.
Financial overview
Order status
The order intake for full-year 2025 increased by 76% to SEK
3,193 million, compared with SEK 1,810 million for full-year
2024. After the acquisition date, roda made a positive
contribution to the order intake of SEK 1,367 million, pro -
viding organic growth of 1%. The organic order intake was
affected by the divestment of Handheld and by the fact
that there were external sales to roda in 2024, which were
eliminated as internal sales after the acquisition. Correct -
ed for these items, the underlying order intake increased
by 14%. The order backlog as of December 31 was at a
historically high level, amounting to SEK 3,595 million
(2,055), with roda making up around 35%.
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ANNUAL REPORT 2025DIRECTORS’ REPORT
Net sales and profits
Net sales for full-year 2025 increased by 70% compared
with the previous year and amounted to SEK 2,045 million
(1,201). Growth related to the acquisition of roda amounted
to SEK 768 million. Organic growth was 6% and acquisition-
driven growth made up 64 percentage points of total
sales growth. From an organic perspective, it is mainly
the Nordic market that has had strong growth during
the period. Organic growth was negatively affected by
the fact that previously there were external sales to roda,
which have now been eliminated as internal sales, and also
that MilDef divested Handheld. After correction for these
items, growth in the underlying business is 20%. Also, the
Swedish krona became stronger during the year, which
had a negative impact on sales.
Gross profit amounted to SEK 920 million (589), equivalent
to a gross margin of 45.0% (49.0). The Company’s gross
profit may vary quarter on quarter depending on sales
volumes, and the gross margin may vary based on the
product and customer mix. The acquisition of roda con -
tributed to an increase in the Group’s gross profit for full-
year 2025, but as roda’s business model is associated with
a lower gross margin in general than the rest of the Group,
roda had a negative impact on the combined Group gross
margin. The Group’s gross margin without roda was recog -
nized at 53.5%.
Operating expenses amounted to SEK 711 million (477),
of which SEK 181 million relates to acquired operating
expenses. Excluding operating expenses related to the
roda acquisition, the operating expenses increased by
11% during the period compared with the previous year.
For full-year 2025, integration costs relating to the roda
acquisition negatively affected operating expenses by
SEK 4.1 million. The integration costs of SEK 4.1 million
were not reported as non-recurring items. For full-year
2025, non-recurring items were reported that reduce the
Company’s operating expenses by SEK 5.3 million net. The
change is due to acquisition costs relating to the acquisi -
tion of roda and reversal of costs that were covered by the
restructuring reserve made in the fourth quarter of 2024,
including a reversal due to the divestment of Handheld
Germany GmbH.
In full-year 2025 non-recurring items of SEK -3.5 million
were recognized for acquisition costs relating to the acquisi-
tion of roda. In addition, costs covered by the restructuring
program in the fourth quarter of 2024 were reversed in the
amount of SEK 8.9 million.
Operating profit (EBIT) for full-year 2025 amounted to
SEK 214.4 million (-209.0). This is equivalent to an operat -
ing margin of 10.5% (-17.4). MilDef’s sales and profits are
affected by volume variations between periods.
Adjusted operating profit before amortization and impair -
ment of intangible non-current assets (EBITA) amounted to
SEK 276.3 million (149.7), equivalent to a margin of 13.5%
(12.5). Amortization and impairment of intangible non-
current assets amounted to SEK 67.3 million (37.9), with
amortization of acquired intangible non-current assets
accounting for most of the increase. The adjusted operat -
ing profit includes adjustments for non-recurring items as
described above.
Net financial expense for the period amounted to SEK
-42.8 million (-13.6). The change is largely due to negative
exchange rate changes, as well as increased interest
expense on loans taken out to finance the acquisition
of roda.
The tax effect for full-year 2025 impacted net profit in the
amount of SEK -23.6 million (2.2). This makes the effective
tax rate 13.7% (-1.0). For full-year 2025, the effective tax rate
was impacted by tax expenses relating to the restructuring
program announced in the fourth quarter of 2024. Account-
ing for restructuring costs in 2024 resulted in a negative
profit before tax and for this reason the Group is reporting a
negative effective tax rate for the comparison year.
Profit after tax amounted to SEK 148.0 million (-220.3).
Earnings per share before dilution was SEK 3.16 (-5.43) and
earnings per share after dilution SEK 3.16 (-5.43).
Cash flow
Cash flow reported for the period amounted to SEK -374.8
million (446.2). Free cash flow for the full year amounted to
SEK -33.5 million (127.7).
Cash flow from operating activities amounted to SEK -3.0
million (144.4). The cash flow was negatively impacted by
the change in working capital of SEK -282.8 million (8.4).
The roda acquisition had a negative impact as the tied-
up capital associated with it is higher than for the rest of
the Group. This is mainly related to inventory levels. The
working capital for the rest of the Group has grown as a
consequence of large deliveries made in the latter part of
the fourth quarter as well as some inventory build-up in
preparation for upcoming deliveries.
Cash flow from investing activities amounted to SEK -731.5
million (-33.3). The change is mainly due to the acquisition
of roda, which had a negative impact on cash flow from
investing activities in the amount of SEK -701.0 million.
Cash flow from financing activities amounted to SEK
359.7 million (335.1). Repayment instalments on the credit
facility for the acquisition of roda amounted to SEK 43.9
million, and instalments on a past credit facility obtained
in connection with the acquisition of Handheld in Septem -
ber 2022 amounted to SEK 13.2 million for full-year 2025.
Amortization of leases was charged to financing activities
in the amount of SEK -28.9 million (-22.2). As of the end of
2025, SEK 41.9 million of the revolving credit facility had
been utilized.
Acquired intangible assets
The Group had recognized goodwill as of December
31, 2025 in the amount of SEK 911.2 million (322.6). The
increase is attributable to the roda acquisition.
Other acquired intangible assets from previous years’
acquisitions are customer relationships and software.
Customer 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.
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74
Equity
The Group’s equity amounted to SEK 1,519.3 million
(1,101.7) at the end of the period. The equity/assets ratio as
of December 31, 2025 was SEK 52% (65). The 2025 Annual
General Meeting voted in favor of the Board’s proposal for
a performance-based long-term incentive program (LTIP
2025/2028) for MilDef’s Management Team comprising
six employees. The total cost of this share-based remu -
neration amounted to SEK 0.5 million during the period,
with an equivalent increase reported directly in equity. In
addition to this, the cost of social security contributions
has been expensed at SEK 0.2 million with an equivalent
liability for these contributions of the same amount.
Net working capital
Net working capital amounted to SEK 688 million (331) at
the end of the period. Net working capital in relation to net
sales increased compared with the same date the previous
year to 33.6% (27.6) but was lower that in the previous
quarter when 38.9% was reported. The roda acquisition
increased working capital – both in absolute numbers and
in relation to net sales.
Also, the rest of the Group made large deliveries at the
end of the year, which resulted in higher accounts receiv -
able at the end of the period.
Net debt and cash and cash equivalents
The net debt including lease liabilities amounted to SEK
624.3 million (-310.0) at the end of the period. Cash and
cash equivalents as of December 31 amounted to SEK
148.6 million (530.4). At the end of the period there was an
unutilized revolving overdraft facility of SEK 78.1 million
(120.0). 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 1.3 (-2.2). Calculated including the effects of IFRS 16,
the net debt/equity ratio was 2.0 (-1.7).
Summary of significant events in 2025
On March 6 MilDef completed the acquisition of roda com-
puter GmbH (“roda”). All regulatory approvals from Germany,
France and the UK were received according to plan. The
acquisition strengthens MilDef’s presence in Europe and
gives the Company access to important market channels.
In the first quarter MilDef’s Board of Directors, based on
authorization from an extraordinary shareholders’ meeting
on December 9, 2024, resolved on an issue in kind of
1,374,047 new shares for the sellers of roda as a portion of
the purchase consideration. The roda company is consoli -
dated in the MilDef Group as of March 6, 2025.
At the Annual General Meeting on May 22 Jan Andersson,
Charlotte Darth, Björn Karlsson, Bengt-Arne Molin and
Lennart Pihl were re-elected and Carl Mellander and
Elisabeth Åbom were elected as new members for the
period until the end of the 2026 AGM. Christian
Hammenborn and Marianne Trolle declined re-election.
Björn Karlsson was also re-elected as Chair of the Board
and Öhrlings PricewaterhouseCoopers 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 2024 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.
As a strategic capacity increase for strengthened defense
capability, MilDef has opened Bastionen (The Bastion).
This office and production space in Rosersberg – tailored
specifically for MilDef’s operations – quadruples the
Company’s capacity in integration services.
The Company received a number of large and strategically
significant orders during the year. An example is Kongsberg
Defence & Aerospace, which ordered MilDef’s rugged IT
equipment for a value of SEK 225 million, a contract with
the Swedish Defence Materiel Administration for delivery
of OneCIS software and hardware for a value of SEK 139
million, and a suborder worth SEK 320 million from an
unnamed European NATO country. In addition, MilDef’s
subsidiary roda has secured an order from the armed
forces of the Federal Republic of Germany (Bundeswehr),
for rugged IT for the German army’s digitalization proj -
ect for a value of SEK 212 million, and a framework order
worth SEK 320 million issued under a framework agree -
ment from a German defense and security company.
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 twelve
months after the acquisition date.
Acquisition of roda computer GmbH
On November 13, 2024 MilDef announced that a binding
contract had been signed to acquire 100% of the voting
shares in roda. The roda company is a supplier of military
ANNUAL REPORT 2025DIRECTORS’ REPORT
SEK m
Dec. 31,
2025
Sept. 30,
2025
Dec. 31,
2024
Inventories 531.8 620.2 234.4
Accounts receivable 513.9 327.1 330.1
Other receivables 140.0 169.6 87.4
Accounts payable -169.8 -216.5 -85.6
Other current liabilities -328.2 -246.8 -235.3
Net working capital 687.7 653.6 330.9
as a percentage of net sales
LTM (%) 33.6% 38.9% 27.6%
SEK m
Dec. 31,
2025
Sept. 30,
2025
Dec. 31,
2024
Other interest-bearing
liabilities 550.3 567.5 133.9
Lease liabilities 222.5 148.2 86.5
Cash and cash equivalents -148.6 -118.1 -530.4
Net debt incl. IFRS 16 624.3 597.6 -310.0
relative to adjusted operating
profit (EBITDA) LTM, multiple 2.0 2.6 -1.7
===== SIDA 75 =====
ANNUAL REPORT 2025DIRECTORS’ REPORT
IT solutions with a strong market presence in Central
Europe. The acquisition was completed on March 6, 2025.
The acquisition strengthens MilDef’s presence in Europe
as one of Europe’s leading actors within tactical and
rugged IT for defense and security, and provides MilDef
with access to important market channels.
MilDef’s Board of Directors, as authorized by an extra-
ordinary shareholders’ meeting on December 9, 2024,
resolved on an issue in kind as a portion of the purchase
consideration for the acquisition of roda, as communicated
when the acquisition was made public on November 13,
2024. In addition to the cash consideration of EUR 70
million, as part of the purchase consideration MilDef
issued a total of 1,374,047 new shares in MilDef Group AB
for the sellers of roda. This was equivalent to around EUR
28.7 million based on the price of the MilDef share of SEK
229.00 as of March 5, 2025.
The parties also agreed on a cash contingent consideration
that will depend on the EBIT level for the 2024 financial year,
which will be established in the revised financial state -
ments for roda. The purchase consideration was set at EUR
4.0 million.
The fair value of the acquired assets and liabilities presen ted
was based on the consolidated financial information for
roda at the time of the acquisition. The acquisition analysis
is preliminary. In the summary below the EUR amount has
been translated to SEK at a rate of SEK/EUR 10.96 and the
number of issued shares was 1,374,047.
The fair value of assets and liabilities as presented in the
annual financial statements was based on the consolidated
financial information for roda as of December 31, 2024 and
should have been regarded as indicative. In the Q1 report
for 2025 the assets and liabilities presented are based on
the consolidated financial information for roda at the date
of the acquisition.
The preliminary calculation of goodwill consists mainly of
qualified workforce, future customers, future technology
and synergies.
No goodwill is expected to be tax deductible.
Intangible assets identified in the preliminary acquisition
analysis consist mainly of customer relationships and order
backlog. Transaction costs were expensed as they arose.
SEK 10.8 million was expensed in 2024 and the remaining
SEK 3.5 million was expensed in 2025.
In the preliminary acquisition analysis, the Group mea -
sured the acquired lease liabilities using the present value
of the remaining lease payments on the acquisition date.
Right-of-use assets were measured at an amount equiva -
lent to the lease liabilities and adjusted to reflect the terms
in the lease in relation to the market terms.
On the acquisition date the fair value of inventories
amounted to SEK 235.3 million and the fair value of ac -
counts receivable was SEK 96.9 million. The gross amount
of accounts receivable was SEK 96.9 million and it is ex -
pected that the full contract amount can be collected.
For the subsidiary Westek, the local CEO was a minority
shareholder (5%) in the company at the end of 2025.
The PPA has been adjusted for this minority holding.
There outcome of a long-term incentive program may
result in shares being allotted to senior executives at
Westek in 2026 and 2027. For accounting purposes the
program has been valued as of non-significant value. The
maximum outcome of the program would generate a
minority holding in the company Westek of around 30%.
Alternative performance measures
MilDef applies the guidelines for alternative performance
measures issued by the European Securities and Markets
Authority (ESMA). Alterative performance measures are
financial metrics that cannot be directly derived or
deduced from the financial statements. These financial
EUR m SEK m
Total purchase consideration 102.1 1,119.8
Assets
Intangible non-current assets 33.3 365.0
Property, plant and equipment 1.8 19.6
Right-of-use assets 4.9 53.2
Deferred tax assets 1.7 18.9
Inventories 21.5 235.3
Accounts receivable 8.8 96.9
Other current receivables 2.6 28.7
Cash and cash equivalents 9.5 104.2
Liabilities
Non-current interest-bearing liabilities 4.2 45.6
Provisions 0.1 1.0
Deferred tax liabilities 10.9 119.4
Accounts payable 7.8 85.0
Current interest-bearing liabilities 0.7 7.5
Other current liabilities 12.4 136.5
Acquired identifiable net assets 48.1 527.1
Non-controlling interests -0.1 -1.1
Goodwill 54.1 593.8
Total acquired net assets 102.1 1,119.8
The purchase consideration consists of
Cash payment 70.0 767.3
Adjustment of net cash and working capital -0.6 -6.7
Shares issued, at fair value 28.7 314.7
Contingent consideration 4.0 44.5
Total purchase consideration 102.1 1,119.8
Cash flow attributable to the acquisition
Cash payment of purchase consideration -70.0 -767.3
Contingent consideration -4.0 -44.5
Adjustment of net cash and working capital 0.6 6.7
Cash in the acquired company 9.5 104.2
Total -63.9 -700.9
Acquisition-related expenses -1.3 -14.3
Net cash flow -65.2 -715.2
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MilDef Group Annual and Sustainability Report 2025
76
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 comple -
ments to the statements. See “Definitions” for definitions
of alternative performance measures.
Segments
MilDef’s operations are treated as one segment as this
reflects the Group’s business, financial monitoring and
management structure. MilDef’s CEO, who is the chief
operating 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
concludes that the MilDef Group consists of only one
reporting segment.
Volatility between periods
MilDef’s sales and profits are affected by quarter-on-quarter
volatility. Year-on-year comparisons between quarters can
be made. The Group’s strongest quarter in terms of sales
and profits is normally the fourth quarter.
MilDef’s markets are characterized by substantial 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 signifi -
cantly between the quarters. The Company’s development
should therefore be evaluated in a longer perspective and
not based on an individual quarter or year.
Employees
The number of employees in the Group, recalculated to
full-time equivalents (FTEs), was 479 (327) at the end of
the period. 352 (244) of the employees were men and 127
(83) were women. The average number of FTEs during the
quarter was 468, compared with 319 in the same period
the previous year.
Research and development
MilDef conducts extensive research and development.
This is considered a critical factor for continued organic
growth and to penetrate new markets. It is important to
quickly identify changing customer requirements and
transform them into the best solutions for every given
market situation. Around 5% of MilDef’s employees work
in R&D-related positions. Resources were added in 2025
to the R&D department – both contracted staff and MilDef
employees – to handle an increased number of projects,
many of which are highly complex.
Significant risks and factors of uncertainty
MilDef’s operations and profits are affected by a number
of external and internal factors. A constant process is un -
der way to identify all of the risks that occur and to assess
how to manage each risk. MilDef’s risks can be divided
into market-related, operational and financial risk. For a
more detailed description of financial risk, see “Risk and
risk management”.
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 compared with those expressed in the
forward-looking statements, depending on factors such
as changed conditions in the market for MilDef’s products
and more general changes in, for example, the economy,
markets and competition, legal requirements and other
political measures, and fluctuations in exchange rates.
Disputes
The Company was not a party in any material dispute at the
end of 2025.
Contingent liabilities
There have been no material changes in the Group’s
contingent liabilities. See Parent Company Note 19.
Sustainability and environmental impact
The Group’s statutory Sustainability Report for 2025 is
prepared in accordance with the Annual Accounts Act
(1995:1554) with amendments (2016:947). See the Sustain-
ability Report for further information. The Sustainability
Report was prepared by MilDef Group AB (publ), Corp.
reg. no. 556893-5414, registered office in Helsingborg.
With respect to environment impact, the Group does not
have any operations that require a permit according to
current environmental rules.
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 Sustainability Report. See the Corporate
Governance Report. MilDef has no deviations from the
Code to report for 2025.
Guidelines for remuneration and other employment
terms for the Management Team in 2025
For a description of this section, see Note 11 to the con -
solidated financial statements, Remuneration Report 2025
and “Guidelines for remuneration of senior executives”. All
can be found in this Annual and Sustainability Report.
ANNUAL REPORT 2025DIRECTORS’ REPORT
===== SIDA 77 =====
Long-term Incentive Program 2025/2028
The 2025 Annual General Meeting voted in favor of the
Board’s proposal for a performance-based long-term
incentive program (LTIP 2025/2028) for MilDef’s Manage -
ment Team comprising six employees. The participants
will be allotted performance-based stock options that may
give entitlement to shares in the Company. Each warrant
entitles the holder to one share if the maximum outcome
in the program is reached. After the vesting period the
participants will be allotted shares in MilDef Group AB at
no cost if certain performance targets are met. One basic
requirement for allotment of shares is that the partici -
pant, subject to certain exceptions, remains employed
within the MilDef Group throughout the three years of the
program. A further requirement is that MilDef’s adjusted
EBITDA per share during the period of validity has reached
certain minimum levels and that MilDef’s share price
development on Nasdaq Stockholm has been positive
during the same period. The number of shares that can be
allotted to the participants according to LTIP 2025/2028
is capped at 20,000, which is equivalent to around 0.04%
of all outstanding shares in the Company. During the year,
15,000 warrants were allotted to employees.
The Group’s performance based long-term incentive
program will enable the employees to obtain shares in the
Company. The fair value of the allotted warrants will be
recognized as an employee expense with an equivalent
increase in equity. The fair value will be established on the
allotment date and distributed over the vesting period.
The recognized expense will be equivalent to the fair
value of the warrants, taking into account market condi -
tions. The actual expense recognized during the course
of the program will be affected by the extent to which the
service and performance terms are met. However, the
recognized expense will not be affected by whether or not
terms relating to market conditions are met. Social security
contributions attributable to share-related instruments for
employees as remuneration for services performed will be
expensed over the periods during which those services
are performed. Social security contribution liabilities are
based on the fair value of the shares on the reporting date
and on assessments made at the end of each period on
the outcome of all terms in the program.
The total cost of this share-based remuneration amounted
to SEK 0.5 million during the period, with an equivalent
increase reported directly in equity. In addition to this, the
cost of social security contributions has been expensed at
SEK 0.2 million with an equivalent liability for these contri -
butions of the same amount.
Proposal for decision on allocation of profit
The following Parent Company funds are at the disposal of
the Annual General Meeting:
The Board of Directors is proposing that a dividend be set
at SEK 0.75 (0.50) per share for the 2025 financial year. The
proposed record date for the right to receive a dividend is
May 25, 2026. If the Annual General Meeting votes in favor
of the proposal, the dividend is expected to be paid out
on May 28, 2026.
The Board’s assessment is that the proposed dividend will
not impact MilDef’s ability to meet the Group’s commit -
ments 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 con -
solidation requirements of the Company and the Group,
liquidity and position in general, based on the nature
and scale of the operations and the associated risks. The
proposed dividend is therefore justifiable taking into con -
sideration the precautionary rule in Chapter 17, Section 3,
paragraphs 2–3 of the Swedish Companies Act.
Outlook
In a market landscape characterized by good demand,
there are multiple business opportunities arising adjacent
to our core business. MilDef’s path to success is, how -
ever, a consistent focus on defense and security. We are
therefore continuing our growth journey with an emphasis
on our prioritized markets and customers. We believe that
having a clear focus creates value for both our customers
and our shareholders. MilDef is continuing to execute its
plans by investing in growth and increased delivery
capacity to ensure long-term profitable growth.
Significant events after the end of the year
There have been no significant events after the closing day
with an impact on financial reporting.
ANNUAL REPORT 2025DIRECTORS’ REPORT
SEK Dec. 31, 2025
Share premium reserve 1,543,624,198
Retained earnings -257,608,160
Comprehensive income for the year 78,374,383
Closing balance, December 31 1,364,390,420
The Board proposes that the profit be allocated as follows:
A dividend to the shareholders of SEK 0.75 per
share 35,336,171
Carried forward 1,329,054,249
Total 1,364,390,420
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MilDef Group Annual and Sustainability Report 2025
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78
RISK AND RISK MANAGEMENT
ANNUAL REPORT 2025
===== SIDA 79 =====
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 proactive method to identify and manage risk to protect the Company, people
and the environment.
The managing director of each local subsidiary is respon -
sible 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 Mana -
gement 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 respon -
sible 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 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 governance 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 parameters. 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 areas 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, adapting and monitoring the
risk management process. The process of identifying risks
that should either be eliminated, prevented or simply iden -
tified and monitored is established annually in a risk map.
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 AND RISK MANAGEMENT
Consequence
Compliance Technology
ANNUAL REPORT 2025
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MilDef Group Annual and Sustainability Report 2025
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MilDef Group Annual and Sustainability Report 2025
80
ANNUAL REPORT 2025RISK 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 Know your business (KYB) 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 require -
ments
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
AI and technology regulation: Fast-moving, poli -
ticized technology landscapes (AI) create compli -
ance challenges and geopolitical competition.
Carry out gap analysis, apply controls, provide training, update compliance.
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
Geopolitical instability increases the risk of
ransomware cyberattacks
Investments, training, business intelligence, segmenting
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
Geopolitical volatility Resilience and adaptability bring competitive advantages.
===== SIDA 81 =====
ANNUAL REPORT 2025RISK 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
Sourcing, working remotely, digitalization, succession planning 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 continuity 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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82
===== SIDA 83 =====
FINANCIAL STATEMENTS AND NOTES
THE GROUP
ANNUAL REPORT 2025
83
MilDef Group Annual and Sustainability Report 2025
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FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
MilDef Group Annual and Sustainability Report 2025
84
Consolidated statement of comprehensive income
SEK m Note
1–3 2025 2024
Net sales 4 2,045.2 1,200.9
Cost of goods sold -1,125.1 - 611.8
Gross profit 920.1 589.0
Selling expenses - 457.6 -279.0
Administrative expenses -138.4 -105.7
Research and development expenses -112.0 -84.0
Acquisition costs -3.5 -10.8
Restructuring costs 5 8.9 -310.0
Other operating income 6 35.0 6.1
Other operating expenses 6 -38.1 -14.4
Operating profit 7,8,9,10,11 214.4 -209.0
Financial income 12 11.3 11.8
Financial expense 12 -54.0 -25.4
Profit after financial items 171.6 -222.6
Income tax 13 -23.6 2.2
Net profit for the year 148.0 -220.3
Other comprehensive income
Items that may subsequently be reclassified to profit or loss
Change in translation reserve for the year -24.9 2.4
Other comprehensive income -24.9 2.4
Total comprehensive income for the year 123.1 -217.9
Profit for the year attributable to:
Owners of the parent 147.7 -220.3
Non-controlling interests 0.3 -
Net profit for the year 148.0 -220.3
Comprehensive income for the year attributable to:
Owners of the parent 122.8 -217.9
Non-controlling interests 0.3 -
Comprehensive income for the year 123.1 -217.9
Earnings per share 2025 2024
Number of shares at the end of the period 47,114,895 45,573,068
Weighted average number of shares in the period before dilution 47,114,895 40,598,903
Weighted average number of shares in the period after dilution 47,114,895 41,013,824
Earnings per share before dilution (SEK) 1.98 -5.43
Earnings per share after dilution (SEK) 1.98 -5.43
FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
===== SIDA 85 =====
ANNUAL REPORT 2025FINANCIAL STATEMENTS, GROUP
ANNUAL REPORT 2025FINANCIAL STATEMENTS, GROUP
Consolidated balance sheet
SEK m Note
1–3 2025 2024
Non-current assets
Intangible non-current assets 14
Capitalized product development 8.4 12.7
Goodwill 911.2 322.6
Other acquired intangible assets 352.6 56.1
Other intangible non-current assets 0.7 0.2
Total intangible non-current assets 1,273.0 391.6
Property, plant and equipment 15
Leasehold improvements 13.6 8.6
Equipment, fixtures and fittings 29.4 11.8
Right-of-use assets 211.6 70.0
Total property, plant and equipment 254.6 90.4
Financial non-current assets
Other non-current receivables 16 3.4 0.3
Total financial non-current assets 3.4 0.3
Deferred tax assets 13 41.5 19.2
Total non-current assets 1,572.5 501.5
Inventories etc. 17
Products in progress 18.5 12.5
Finished products and goods for resale 506.1 218.7
Advance payments to suppliers 7. 2 3.2
Total inventories 531.8 234.4
Current receivables
Accounts receivable 18 513.9 330.1
Tax assets 39.0 32.3
Other receivables 21.9 17.7
Contract assets 24 35.0 21.4
Prepaid expenses and accrued income 19 44.1 15.9
Total current receivables 653.9 417.5
Cash and cash equivalents 148.6 530.4
Total current assets 1,334.3 1,182.2
TOTAL ASSETS 2,906.8 1,683.7
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FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
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86
Consolidated balance sheet
SEK m Note
1–3 2025 2024
Equity and liabilities
Equity 20
Equity attributable to owners of the parent
Share capital 11.8 11.4
Other capital contributions 1,540.5 1,222.8
Translation reserve -25.6 -0.7
Retained earnings incl. profit for the year -8.5 -131.7
Total equity attributable to owners of the parent 1,518.0 1,101.7
Non-controlling interests 1.3 -
Total equity 1,519.3 1,101.7
Provisions
Other provisions 23 11.6 15.8
Total provisions 11.6 15.8
Non-current liabilities
Deferred tax liabilities 13 105.0 24.8
Non-current interest-bearing liabilities 21.22 452.3 102.5
Lease liabilities for right-of-use assets 22 182.8 60.7
Total non-current liabilities 740.1 188.0
Current liabilities
Current interest-bearing liabilities 21.22 98.0 31.4
Lease liabilities for right-of-use assets 39.7 25.8
Contract liabilities 24 28.7 12.3
Accounts payable 169.8 85.6
Tax liabilities 73.4 28.8
Other liabilities 74.9 57.3
Accrued expenses and deferred income 25 151.2 137.0
Total current liabilities 635.8 378.0
TOTAL EQUITY AND LIABILITIES 2,906.8 1,683.7
FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
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ANNUAL REPORT 2025FINANCIAL STATEMENTS, GROUP
ANNUAL REPORT 2025FINANCIAL 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
Non-
controlling
interests
Total
equity
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
Repurchase of treasury shares - - - - - - -
Reserve for share-based remuneration - - - - - - -
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
Opening balance, January 1, 2025 11.4 1,222.8 -0.7 -131.7 1,101.7 - 1,101.7
Net profit for the year - - - 147.7 147.7 0.3 148.0
Other comprehensive income
Change in translation reserve for the year - - -24.9 - -24.9 - -24.9
Total other comprehensive income for the
year - - -24.9 - -24.9 - -24.9
Total comprehensive income for the year - - -24.9 147.7 122.8 0.3 123.1
Transactions with shareholders in their capacity as owners
New share issues 0.4 322.3 - - 322.7 - 322.7
Issue costs - -1.4 - - -1.4 - -1.4
Repurchase of treasury shares - -3.8 - - -3.8 - -3.8
Reserve for share-based remuneration - 0.5 - - 0.5 - 0.5
Dividend to shareholders - - - -23.5 -23.5 - -23.5
Non-controlling interests arising from acquisi -
tions of subsidiaries - - - -1.1 -1.1 1.1 -
Closing balance, December 31, 2025 11.8 1,540.5 -25.6 -8.6 1,517.9 1.4 1,519.3
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FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
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88
FINANCIAL STATEMENTS, GROUP ANNUAL REPORT 2025
Consolidated cash flow statement
SEK m Note
1–3 2025 2024
Operations
Operating profit 214.4 -209.0
Adjustments for non-cash items:
Depreciation, amortization and impairment charged to operating profit 111.0 303.4
Other 26 11.1 77.1
Total 122.1 380.5
Interest received 11.3 23.7
Interest paid -54.0 -37. 2
Taxes paid -13.9 -22.1
Cash flow from operating activities before changes in working
capital -56.7 -35.5
Increase (-) / decrease (+) in inventories -107.4 -0.1
Increase (-) / decrease (+) in operating receivables -169.7 -10.1
Increase (+) / decrease (-) in operating liabilities -5.6 18.7
Changes in working capital -282.8 8.4
Cash flow from operating activities -3.0 144.4
Cash flow from investing activities
Investments in intangible non-current assets -2.0 -9.8
Investments in property, plant and equipment -28.6 -10.7
Acquisition of subsidiaries, net of acquired cash and cash equivalents -701.0 -12.8
Change in other non-current receivables - -
Cash flow from investing activities -731.5 -33.3
Cash flow from financing activities
Dividend -23.5 -19.9
New share issues, net 6.6 495.0
Repurchase of treasury shares -3.8 -
Increase (+) / decrease (-) in liabilities to credit institutions* 474.2 - 87.8
Repayment of interest-bearing liabilities -65.1 -30.0
Repayment of lease liabilities -28.9 -22.2
Cash flow from financing activities 359.7 335.1
Cash flow for the year -374.8 446.2
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period 530.4 81.5
Exchange rate difference in cash and cash equivalents -7.0 2.7
Cash flow for the year -374.8 446.2
Cash and cash equivalents at end of period* 148.6 530.4
Granted, unutilized credit 78.1 120.0
Available liquidity 226.7 650.4
*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.
===== SIDA 89 =====
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
Financial Reporting Standards issued by the International Accounting Standards Board (IASB), and interpretations issued by the
IFRS Interpretations 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 conta -
ins 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 recognized in the income statement. Estimates made by the Board and management when apply -
ing 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 2025 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, 2025 or after. Management’s assessment is that these, upon initial application,
will not have any material effect on the consolidated financial statements.
In April 2024 the IASB published IFRS 18 in response to investor concerns about comparability and transparency in corporate
financial reporting. The new presentation requirements in IFRS 18 will increase comparability of financial performance between
similar companies, particularly with respect to the definition of operating profit. The new disclosure requirements for management-
defined performance measures will improve transparency.
IFRS 18 will go into effect on January 1, 2027 and has not yet been applied by the Group. The standard has not yet been adopted by
the EU.
MilDef is currently working on determining the effects on the Group of applying IFRS 18. MilDef will report its annual accounts
according to IFRS 18 for the first time for the period ending on December 31, 2027.
The statement of cash flows is expected to be affected because it will be based on operating profit. Interest income and income ex-
pense are to be presented under investment activities and financing activities respectively, once the Company starts to apply IFRS 18.
MilDef already reports subtotals for operating profit in the income statement. The Group will conduct a detailed analysis to determi -
ne the correct classification of items to ensure that this subtotal meets the requirements in IFRS 18. Also, financial income/expense
as they are currently presented will disappear and a new subtotal will be presented showing profit before financing and income tax.
The new aggregation and disaggregation requirements may also result in changes in order for the accounts and notes to provide a
useful and structured summary.
The Group is also looking at which KPIs are currently being reported outside of the financial statements to determine if these meet
the definition for management-defined performance measures.
Consolidated financial statements
The consolidated financial statements encompass the Parent Company MilDef Group AB and the companies over which the Parent
Company 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 acqui -
sition 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 combi -
nation 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
eliminated. The accounting principles applied by subsidiaries have, where applicable, been amended to guarantee consistent
application of the Group’s principles.
Notes to the consolidated financial statements
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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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
environment 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
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
divested 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 Combina -
tions 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 impairment. 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 impair -
ment 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
relationships 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 estimated 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
• Other intangible non-current assets: 10 years
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 91 =====
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
depreciation 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
expenditures 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: 3–10 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
determined 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 ordi-
nary 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 manufacturing 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 amorti -
zed 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.
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
deduction from issue proceeds.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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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
General 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 warranties, 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.
The Group’s main income streams
• Sales of hardware
• Sales of software
• Sales of system and integration solutions
Sales of hardware
From a performance perspective, the sale of hardware is regarded as separate and distinct and is included in contracts with custo -
mers without involving integration or other service commitments. The transaction price is the amount MilDef expects to receive to
fulfill its performance obligation and is clearly defined per order. Revenue is recognized at a certain point in time once control over
the goods or services is transferred to the customer which, in the case of hardware, means that the customer has control over the
products upon delivery or when the risk associated with them is transferred. The freight terms in the customer contract determine
when control is transferred from MilDef to the customer.
Sales of software
From a performance perspective, the sale of software is regarded as separate and distinct and is included in contracts with custo -
mers without involving development, integration or other service commitments. The transaction price is the amount MilDef expects
to receive to fulfill its performance obligation and is clearly defined per order. The customer has the right to use the software once it
has been delivered and revenue is therefore recognized on a specific date (upon delivery).
Sales of system and integration solutions
In its system and integration solutions offering, MilDef combines multiple different components (such as hardware, software and
services) into an integrated solution. These services are considered a combined performance obligation, since the components in
the contract are inseparably linked and MilDef is responsible for delivering a functioning complete solution. The transaction price is
the amount MilDef expects to receive to fulfill its performance obligation and is clearly defined per order. Revenue is recognized over
time based on incurred costs and hours. If invoices are issued at specific agreed times, contract assets or contract liabilities will arise.
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 under-
lying asset is of low value and the lease term is short. These leases are recognized as an expense during the period of use.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 93 =====
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 settled, 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. In defined
contribution 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.
Share-based remuneration
The Group applies IFRS 2 to accounting for share-based remuneration.
Share-based remuneration is settled using the Company’s equity and measured at fair value on the allotment date. Fair value
is determined using recognized measurement models and takes into account, among other things, the share price on the allot-
ment date, expected volatility, maturity, dividends and risk-free interest. The cost is recognized as an employee expense over the
vesting period with a corresponding increase in equity. Vesting terms are taken into account once the number of instruments that
are expected to be earned is established. The Company reviews its assessments of expected outcomes on an ongoing basis and
adjusts expensed amounts accordingly. Terms associated with market-based performance targets are taken into account in the fair
value of the instruments on the allotment date, while other performance and service terms affect the number of instruments that are
expected to be earned.
Social security contributions relating to share-based remuneration are expensed according to the applicable rules during the vesting
period with a provision made based on the fair value of the instruments on each reporting date.
No expense is recognized for instruments that are not ultimately earned due to service terms not being met.
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
operations. 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 recog -
nized 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 trans -
actions not involving cash receipts and payments during the period, and for any income and expenses relating to cash flow from
investing or financing 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.
The Group applies the current day method, whereby assets and liabilities of entities with a functional currency other than SEK are
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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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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.
Transaction 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 2025. The risks
are primarily 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 where hedging may be needed.
The Group’s net flows in the form of customer and supplier invoices by currency are as follows:
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 40.8 -40.8
GBP 8.6 -8.6
NOK 15.3 -15.3
USD -22.4 22.4
AUD -0.0 0.0
DKK 11.9 -11.9
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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
0%
5%
1 0%
1 5%
2 0%
2 5%
3 0%
3 5%
4 0%
E UR S EK NOK U SD GBP D KK CHF
Fakturering i koncernen 2025Invoicing in the Group 2025
Invoicing in the Group 2025 amounts to 35% EUR, 25% SEK, 12% NOK,
12% USD, 10% GBP, 6% DKK and 0% CHF.
===== SIDA 95 =====
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 91.4 million (104.1) at the end of 2025. The main currencies are
USD, SEK 72.3 million (79.6) and NOK, SEK 42.7 million (19.8). 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
monitors 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, 2025, a one percentage
point change in the market interest rate would affect the Group’s earnings by SEK -4.3 million (-2.5).
2025, 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 EUR 4.02% 389.6 35.9 35.4 69.0 277.7 - 418.0
Bank loans SEK 3.85% 119.3 2.3 2.3 4.6 119.7 - 128.9
Overdraft facility 3.61% 41.9 0.8 0.8 1.5 42.1 - 45.1
Contingent considerations - - - - - -
Undiscounted lease payments 16.9 24.5 37.5 91.1 72,9 242.9
Accounts payable 169.8 - - - - 169.8
Total 225.7 62.9 112.6 530.5 72,9 1,004.7
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 SEK 4.45% 132.5 17.9 17.5 104.8 - - 140.2
Overdraft facility 2.00% - - - - - - -
Contingent considerations - - - - - -
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
The table below shows the effective interest rate on the closing day and the maturity structure of the financial liabilities.
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
difficulties 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 2.0 (-1.7) compared with the long-term target of maximum 2.5. SEK 56.5
million (30) of the bank loan will be repaid in 2026. Both the bank loan and overdraft facility expire in February 2028. 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 1,004.7
million (319.3). At year-end 2025 there was an unutilized revolving overdraft facility of SEK 78.1 million (120.0).
Cash and cash equivalents at year-end amounted to SEK 148.6 million (530.4).
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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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 513.9 million (330.1) as of December 31, 2025. 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 posi-
tions. 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 roda computer GmbH and MilDef Integration Sweden AB. 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 2025 interest-bearing liabilities included contingent considerations of SEK 0.0 million
(0.0). Contingent considerations of SEK 44.5 million (0.0) for roda computer GmbH and SEK 0 million (12.5) for MilDef Integration
Sweden AB were paid in 2025. Settlement of the contingent considerations for roda computer GmbH and MilDef Integration
Sweden AB has therefore been finalized. At year-end 2025 the expected outstanding cash flow relating to contingent consider -
ations 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 share-
holders and benefits for other stakeholders, and to have an optimal capital structure taking into account the cost of capital. Share -
holder dividends, 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 2,143.6 million (791.7).
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 0.75 per share for the 2025 financial year.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 97 =====
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 esti -
mates and assumptions regarding the future and this affects the carrying amounts recognized. The key estimates and assumptions
where there is a significant 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 intangible 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, 2025, goodwill was recognized in the amount of SEK 911.2 million
(322.6).
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 reaso -
nable. 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 impair -
ment loss is recognized. As of December 31, 2025, capitalized product development was recognized at SEK 8.4 million (12.7).
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 carry -
forwards amounted to SEK 24.9 million (0.4) at the end of 2025. 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. An obsolescence scale has been applied consistently by the Group. According to the
obsolescence scale, all items of inventory older than two years are measured at 0% of cost. The reserve for inventory obsolescence
amounted to SEK 31.0 million (24.6) as of December 31, 2025. 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 opera -
tions in coming years. Contingent considerations are considerations for holdings that have already been acquired. If profit develop -
ment is not as expected, this will affect the carrying amount of contingent considerations and thus MilDef Group’s profits.
Any contingent considerations are recognized in non-current or current interest-bearing liabilities. As of the balance sheet date,
there were no liabilities for contingent considerations.
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 additio -
nal 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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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98
2025 2024
Net sales
Sweden 579.4 400.7
Norway 235.5 220.3
Rest of Nordics (excl. Sweden & Norway) 122.3 74.1
Germany 608.1 161.8
Europe (excl. Nordics & Germany) 262.9 147.8
USA 147.0 138.1
Other countries 90.0 58.1
Total 2,045.2 1,200.9
Revenue categories
SEK m
2025
Percentages
in 2025
SEK m
2024
Percentages
in 2024
Sales of hardware (specific point in time) 1,608.0 78% 750.7 62%
Sales of software (specific point in time) 76.9 4% 68.5 6%
Sales of system and integration solutions (over time)* 360.3 18% 381.7 32%
Total 2,045.2 1,200.9
Note 4. Revenue
Revenue from external customers is reported by geography based on the billing address.
In 2025 MilDef had two customers that individually accounted for more than 10% of the Group’s revenue. Customer 1 accounted for sales of SEK 257.8 million
and customer 2 for sales of SEK 235.5 million. In 2024 MilDef also had one customer that accounted for more than 10% of the Group’s revenue, with sales of
SEK 123.8 million.
The Group’s intangible non-current assets and property, plant and equipment by country 2025 2024
Sweden 464.6 369.8
Norway 103.1 96.2
USA 1.0 2.7
UK 25.8 10.5
Germany 933.0 2.7
Other 0.0 0.1
Total 1,527.5 482.0
Contracts entered into but not yet fulfilled** 2025 2024
The next 12 months 2,092 1,149
Within 12–24 months 836 269
Within 25–36 months 400 229
After 36 months 267 408
Total 3,595 2,055
ANNUAL REPORT 2025NOTES 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. Consequently, MilDef has reported an initial restructuring reserve of
SEK 310 million made up of the following items:
• Personnel costs SEK 7.6 million
• Cost of premises (lease assets) SEK 12.6 million
• Stock obsolescence SEK 61.0 million
• Impairment of goodwill and brands SEK 185.2 million
• Impairment of capitalized product costs SEK 38.8 million
• Other operating expenses SEK 4.8 million
Total SEK 310.0 million
These costs were recognized in the income statement for the fourth quarter of 2024. In 2025 past reserves were reversed when the
actual costs were determined, resulting in a small amount of revenue as the outcome was lower than the reserves.
Note 5. Restructuring costs
** Refers to all contracts entered into as of the closing day.
* Described as services in the first section of the Annual Report.
===== SIDA 99 =====
2025 2024
Exchange gain on operating receivables/liabilities 35.0 6.1
Exchange loss on operating receivables/liabilities -38.1 -14.5
Other - -
Total -3.1 -8.4
Note 6. Other operating income/expenses
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nature of expense method 2025 2024
Cost of goods sold -5.4 61.0
Other costs -2.5 4.8
Personnel costs -1.0 7.6
Depreciation/amortization and impairment 0.0 236.6
Total -8.9 310.0
2025 2024
Cost of materials 1,113.6 651.7
Other costs 176.0 111.8
Personnel costs 430.8 328.2
Depreciation/amortization 110.7 303.4
Other operating expenses 38.6 14.8
Total 1,869.7 1,409.8
Note 7. Nature of expense method
Note 8. Audit fees
2025 2024
Öhrlings PricewaterhouseCoopers:
Audit engagement 4.0 3.0
Audit-related activities besides the audit engagement - -
Tax advisory services - 0.1
Other services - -
Total 4.0 3.1
Mazars:
Audit engagement 0.3 0.3
Audit-related activities besides the audit engagement - -
Tax advisory services 0.9 0.9
Other services - -
Total 1.2 1.2
Other:
Audit engagement 1.1 0.0
Audit-related activities besides the audit engagement - -
Tax advisory services - -
Other services - -
Total 1.1 0.0
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.
Note 5. Restructuring costs
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100
2025 2024
Goodwill - 141.4
Right-of-use assets 32.7 35.6
Capitalized product development 4.6 62.0
Exclusivity agreements 29.1 -
Customer relationships 27. 2 6.7
Brand 1.8 49.5
Software 4.0 2.2
Other intangible non-current assets 0.8 0.1
Leasehold improvements 2.0 1.4
Equipment, fixtures and fittings 8.7 4.5
Total 111.0 303.4
Note 9. Depreciation/amortization and impairment
Amounts recognized in the income statement 2025 2024
Depreciation – Cost of goods sold 2.5 1.8
Depreciation – Administrative expenses 17.5 12.9
Depreciation – Selling expenses 5.9 4.3
Depreciation – Research and development expenses 5.3 3.9
Interest expense for lease liabilities (included in financial expense) 5.7 3.6
Expenses relating to low-value leases 0.2 0.2
Expenses for short-term leases 0.1 0.1
Total 37.2 26.9
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 therefore 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 on the balance sheet attributable to rental agreements and leases amounts to SEK -25.2 million (-25.7), of which SEK -5.7 million (-3.6) 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 2025 Sweden Norway UK USA Finland Germany France Total
Average number of employees 252 39 54 18 1 78 2 443
Percentage of men (%) 74 77 66 80 100 74 100 74
Number of employees Dec. 31 262 40 62 17 1 95 2 479
Percentage of men (%) 73 80 65 82 100 75 1 74
Number of employees 2024 Sweden Norway UK USA Finland Germany France Total
Average number of employees 239 36 19 18 1 6 0 319
Percentage of men (%) 74 78 60 78 100 81 - 74
Number of employees Dec. 31 242 37 21 20 1 6 0 327
Percentage of men (%) 75 78 61 80 100 81 - 75
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 101 =====
Gender balance in the Management Team (as of December 31) 2025 2024
Board of Directors 7 7
Percentage of men (%) 71 71
Management Team 7 7
Percentage of men (%) 57 57
Wages, salaries and other remuneration 2025 2024
Wages, salaries and other remuneration etc. 316.0 232.6
(Of which salaries and other remuneration of the Board, CEO and other senior executives) 13.7 12.0
(Of which bonus to the Board, CEO and other senior executives) - -
Pension costs, defined-contribution plans 20.9 21.7
(Of which for the Board, CEO, senior executives and other key individuals) 2.5 2.4
Social security contributions 46.8 62.3
Senior executives consist of members of the Management Team. Other key individuals comprise board members.
At year-end 2025, the group comprising the CEO, senior executives and board members numbered 13 persons (14).
There are no severance pay agreements in place.
Salaries and other remuneration of senior executives
2025, SEK 000 Basic salary/
Board fee
Variable
remuneration Other benefits Pension expense Total
Chair of the Board Björn Karlsson 565 - - - 565
Board member Jan Andersson 280 - - - 280
Board member Lennart Pihl 370 - - - 370
Board member Charlotte Darth 310 - - - 310
Board member Elisabeth Åbom 250 - - - 250
Board member Carl Mellander 310 - - - 310
Board member Bengt-Arne Molin 250 - - - 250
CEO Daniel Ljunggren 2,747 - 216 796 3,759
Other senior executives (6) 7,846 - 401 1,656 9,903
Total 12,928 - 617 2,452 15,997
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
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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102
Guidelines for remuneration of senior executives
In accordance with the Swedish Companies Act and the Swedish Corporate Governance 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 2025 Annual General Meeting adopted guidelines for remuneration of the CEO and other senior executives
as follows:
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 remune-
ration agreed and changes made to previously agreed remuneration after the guidelines were adopted at the 2025 Annual General
Meeting. The principles do not apply to any remuneration agreed or approved at the Annual General Meeting.
MilDef is a systems integrator and comprehensive supplier specialized in rugged IT for defense and security applications. As a
leading supplier of tactical IT, MilDef has linked its strategies to expansion within three areas: hardware, software and services.
MilDef’s offering in these areas is known for being robust, secure and customizable. Three pillars of growth underlie MilDef’s future
expansion and form the basis for the Company’s strategy: internationalization, portfolio development and acquisitions. For further
information on MilDef’s strategy, see www.mildef.com.
MilDef’s ability to recruit, develop and retain high-caliber senior executives is a prerequisite for successful implementation of the
business 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 packages. 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 addi -
tion, 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 when combined 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. Variable cash remuneration is to have a predetermined ceiling and may not exceed 50% of the fixed annual cash salary. Variab-
le remuneration is only pensionable where this is required in line with binding collective bargaining agreements or local legislation.
Additional variable remuneration can be paid in extraordinary circumstances, provided that such extraordinary arrangements are
time-limited and made only at the 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 executives are to be taken by the Remuneration Committee based on a proposal from the President
& CEO.
Pension
Senior executives are entitled to pension solutions according to the collective bargaining agreement (Technology Industries of
Sweden). As a rule, pension obligations are to be in the form of a defined-contribution plan and in line with the ITP1 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 compo-
nents over 7.5 base amounts. The Company also makes provisions for part-time pension benefits. 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 variable 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.
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
mandatory 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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 103 =====
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
performance period the Committee must determine to what extent the criteria for award of variable remuneration have been met.
The Remuneration Committee is responsible for making the assessment on variable remuneration for the President & CEO. Assess -
ments on variable remuneration for other executives are the responsibility of the President & CEO. Where financial criteria are con -
cerned, 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
employees. 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 prepara -
tions 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 remuneration programs for the Management Team, the application of the Guidelines for remuneration of 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-elected 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 affect 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 Remunera -
tion Committee’s duties include preparatory work for the Board’s decisions on matters concerning remuneration of the Manage -
ment Team, including decisions on deviations from the guidelines.
Description of material changes in the Guidelines for remuneration of senior executives, and representation of any
views from shareholders
The entire Guidelines for remuneration of senior executives were reviewed ahead of the 2025 Annual General Meeting. Material
changes were as follows. Variable cash remuneration is to have a predetermined ceiling and may not exceed 50% of the fixed
annual cash salary. The ceiling was previously set at 35%. The Company entered into a collective bargaining agreement on January
1, 2025 with Technology Industries of Sweden (Teknikföretagen). Pension benefits are now managed within the framework of that
agreement. The costs are in line with previous levels. No viewpoints on the remuneration guidelines have been expressed by the
Company’s shareholders.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 12. Financial items
2025 2024
Exchange gain not relating to operations - 2.4
Interest income 11.3 8.5
Other financial income - 0.9
Financial income 11.3 11.8
Exchange loss not relating to operations -14.3 -
Interest expense -37.3 -24.5
Other financial expense -2.4 -0.9
Financial expense -54.0 -25.4
Note 13. Tax
Tax recognized in the income statement 2025 2024
Current tax for the year -68.5 -12.7
Deferred tax 44.0 15.1
Prior year adjustments 1.0 -0.2
Total -23.6 2.2
Deferred tax expense/income for the year 2025 2024
Tax relating to change in loss - -
Tax relating to change in temporary differences 44.7 15.0
Tax relating to appropriations -0.7 0.1
Revaluation of tax loss carryforwards - -
Total 44.0 15.1
Tax on profit for the year 2025 2024
Earnings before tax according to the income statement 171.6 -222.6
Tax according to the Parent Company tax rate (20.6%) -35.3 45.8
Reconciliation of recognized tax
Non-taxable income 0.7 0.4
Non-deductible expenses 7.8 -44.0
Expenses recognized via equity 1.0 0.9
Effect of change in temporary differences 0.9 0.5
Non-capitalized tax loss carryforwards - -
Revaluation of deferred tax relating to tax loss carryforwards - -
Tax relating to previous years 2.3 0.2
Difference in Group’s tax rates in different countries -0.9 -1.5
Recognized tax expense/income -23.6 2.2
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 105 =====
Reconciliation of net deferred tax liability 2025 2024
Tax liability, January 1 -5.7 -23.2
Translation difference on translation of foreign subsidiaries 1.8 2.4
Additions via business combinations -103.5 -
Recognized via the income statement 44.0 15.1
Tax liability, December 31 -63.4 -5.7
Deferred tax assets are valued at the maximum amount likely to be recovered based on the taxable profit for current and future years. The
Group has unutilized tax loss carryforwards of SEK 91.7 million (2.6), SEK 0.0 million of which (0.2) 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.
Deferred tax assets/deferred tax liabilities 2025 Deferred tax assets Deferred tax liabilities Net
Intangible non-current assets 0.4 -101.5 -101.1
Property, plant and equipment 1.1 - 1.1
Financial assets - - -
Current assets 15.1 -1.5 13.6
Current liabilities - -1.9 -1.9
Tax loss carryforwards 24.9 - 24.9
Total 41.5 -104.9 -63.4
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
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 14. Intangible non-current assets
2025, SEK m
Capitalized
product
develop-
ment
Goodwill
(business
combina-
tions)
Exclusivity
agreements
Customer
relation-
ships Brand Software
Other
intangible
non-current
assets Total
Cost
Opening balance, January 1 131.8 464.2 11.0 83.3 56.6 21.9 1.2 769.8
Additions for the year - 1.9 - - - - - 1.9
Divestments for the year - - - - - - -0.6 -0.6
Reclassification for the year - - - - - - - 0.0
Additions as a result of
acquisitions 1.7 593.8 87. 2 247.1 21.2 11.5 2.5 965.0
Translation difference - -7. 2 -3.8 -9.2 -0.5 -1.5 -0.1 -22.3
Closing balance, December 31 133.5 1,052.7 94.4 321.1 77.2 31.9 3.0 1,713.9
Amortization and impairment
Opening balance, January 1 -119.1 -141.6 -11.0 -40.6 -56.6 -8.5 -1.0 -378.3
Amortization and impairment
for the year -4.6 - -29.1 -27. 2 -1.8 -4.0 -0.8 - 67.5
Divestments for the year - - - - - - 0.5 0.5
Additions as a result of
acquisitions -1.4 - - - - - -1.1 -2.5
Translation difference - 0.0 2.5 3.4 0.2 0.6 0.0 6.8
Closing balance, December 31 -125.0 -141.6 -37.6 -64.4 -58.2 -11.9 -2.3 -441.0
Carrying amount,
December 31, 2025 8.5 911.2 56.8 256.8 19.0 20.0 0.7 1,273.0
2024, SEK m
Capitalized
product
develop-
ment
Goodwill
(business
combina-
tions)
Exclusivity
agreements
Customer
relation-
ships 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
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 107 =====
Amortization and impairment are recognized in comprehensive income as follows: 2025 2024
Cost of goods sold 1.1 2.5
Selling expenses 54.9 48.3
Administrative expenses 6.4 6.7
Research and development expenses 6.2 19.1
Restructuring costs -1.4 185.0
Total 67.3 261.8
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
The most recent test for any impairment of goodwill was performed on December 31, 2025. 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
Directors.
Cash flows to the end of the useful life are estimated by extrapolating the cash flow based on the budget drawn up and assump -
tions regarding 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
estimated growth rate varies for different acquisitions based on their order status, market situation, expected price develop -
ment 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 post-tax dis -
count rate for acquired entities is in the range 10.0–10.8% (10.6–12.5). 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 investors, 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.
The three cash-generating units MilDef, Sysint AS and roda computer GmbH 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 as -
sumptions regarding the discount rate have therefore been applied to these companies, with the exception of the small company
premium in 2025.
The same uniform assessment also applies to expected future cash flow beyond 2030, 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 requirement to recognize an impairment loss is considered to exist.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 15. Property, plant and equipment
2025 2024
Leasehold improvements
Cost
Opening balance, January 1 12.8 10.8
Additions for the year 5.9 1.7
Divestments for the year -0.1 -
Reclassifications for the year - -
Additions as a result of acquisitions 5.1 -
Translation difference -0.5 0.2
Closing balance, December 31 23.2 12.8
Depreciation and impairment
Opening balance, January 1 -4.2 -2.8
Depreciation and impairment for the year -2.0 -1.4
Divestments for the year 0.1 -
Additions as a result of acquisitions -3.5 -
Translation difference 0.2 -0.1
Closing balance, December 31 -9.6 -4.2
Carrying amount, December 31 13.6 8.6
Equipment, fixtures and fittings
Cost
Opening balance, January 1 29.4 28.8
Additions for the year 17.0 2.9
Divestments for the year -3.6 -2.8
Additions as a result of acquisitions 21.9 -
Translation difference -1.2 0.3
Closing balance, December 31 63.4 29.4
Depreciation and impairment
Opening balance, January 1 -17.6 -15.3
Depreciation and impairment for the year -8.7 -4.7
Divestments for the year 2.5 2.6
Additions as a result of acquisitions -10.7 -
Translation difference 0.6 -0.2
Closing balance, December 31 -34.0 -17.6
Carrying amount, December 31 29.4 11.8
Goodwill by cash-generating unit 2025 2024
Sysint AS 64.5 68.3
MilDef 255.7 254.2
roda computer GmbH 591.0 -
Total 911.2 322.6
See also Note 29.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 109 =====
2025 2024
Right-of-use assets
Cost
Opening balance, January 1 140.2 140.8
Additional right-of-use assets 163.2 18.2
Additions as a result of acquisitions 20.1 -
Completed contracts -22.5 -7.7
Reclassification for the year - -
Translation differences -3.6 1.2
Closing balance, December 31 297.4 140.2
Depreciation and impairment
Opening balance, January 1 -70.2 -40.3
Depreciation and impairment for the year -32.7 -35.6
Completed contracts 16.9 6.2
Additions as a result of acquisitions -4.0 -
Reclassification for the year - -
Translation differences 4.2 -0.5
Closing balance, December 31 -85.9 -70.2
Carrying amount, December 31 211.6 70.0
As of December 31, right-of-use assets were recognized at a carrying amount of SEK 211.6 million (70.0), comprising leased property at SEK
198.3 million (58.8) and leased vehicles at SEK 13.3 million (11.3).
Depreciation is recognized in comprehensive income as follows:
Cost of goods sold 0.7 0.7
Selling expenses 28.4 16.4
Administrative expenses 7.8 6.0
Research and development expenses 6.6 6.1
Total 43.5 29.2
Note 16. Other non-current receivables
2025 2024
Opening balance, January 1 0.3 0.3
Additional rent deposit 0.3 -
Additional non-current receivables 2.8 -
Translation difference 0.0 0.0
Total 3.4 0.3
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 17. Inventories
2025 2024
Inventories including obsolescence reserve
Products in progress 18.5 12.5
Finished products and goods for resale 537.1 243.2
Advance payments to suppliers 7. 2 3.2
Total 562.8 259.0
Change in obsolescence reserve
Opening balance, January 1 -24.6 -21.3
Change in obsolescence reserve -7.3 -5.1
Disposals 0.9 1.9
Exchange rate differences 0.0 0.0
Obsolescence reserve as of December 31 -31.0 -24.6
Carrying amount, December 31 531.8 234.4
Note 18. Accounts receivable
2025 2024
Accounts receivable 513.9 330.1
Total 513.9 330.1
Age analysis, accounts receivable
Accounts receivable not past due 446.6 290.7
Accounts receivable 1–30 days past due 46.1 28.6
Accounts receivable 31–90 days past due 16.1 5.0
Accounts receivable >90 days past due 5.1 5.7
Total 513.9 330.1
MilDef applies the simplified method to calculate credit losses. This is based on historical data on payment collection patterns and the counter -
party’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, 2025, accounts receivable of SEK 67.2 million (39.4) were past 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
2025 2024
Prepaid rent 8.9 4.4
Prepaid insurance 3.1 2.5
Prepaid marketing expenses 0.9 1.2
Prepaid bank fees 3.3 1.3
Prepared IT service 6.8 3.6
Accrued income, projects 15.1 0.1
Other items 6.0 2.9
Total 44.1 15.9
The direct material cost for operations as a whole amounted to SEK 1,113.6 million (651.7) during the year, including a negative adjustment to the
obsolescence reserve of SEK 8.1 million (3.2). The obsolescence reserve for finished products and goods for resale is SEK 31.0 million (24.6),
equivalent to 6% (9) of the inventory value before deduction for obsolescence.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 111 =====
Note 21. Pledged assets
2025 2024
Chattel mortgages - -
Shares in subsidiaries - -
Total - -
Contingent liabilities
Guarantee commitments for subsidiaries 9.2 7.7
Total 9.2 7.7
Note 20. Equity and number of shares
As of December 31, 2025 the registered share capital consisted of 47,114,895 ordinary shares with a quota value of SEK 0.25 per share. All of the
shares are fully paid. The Parent Company holds 20,000 of its own shares (treasury shares) but the subsidiaries do not hold any of their own shares.
Shareholders are entitled to dividends (no dividends are paid on the Parent Company’s holding of treasury shares), 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, 2024 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
New share issue 1,541,827 0.4 322.3 322.7
Issue costs - - -1.4 -1.4
Repurchase of treasury shares - - -3.8 -3.8
Reserve for share-based remuneration - - 0.5 0.5
As of December 31, 2025 47,114,895 11.8 1,540.5 1,552.3
Reserves within equity
The consolidated equity includes a translation reserve. The translation reserve covers all exchange rate differences arising on translation of
financial statements from foreign entities that have prepared their statements in a currency other than the Group’s reporting currency (SEK).
Long-term Incentive Program 2025/2028
The 2025 Annual General Meeting voted in favor of the Board’s proposal for a performance-based long-term incentive program (LTIP 2025/2028)
for MilDef’s Management Team comprising six employees. The participants will be allotted performance-based stock options that may give
entitlement to shares in the Company. Each warrant entitles the holder to one share if the maximum outcome in the program is reached. After the
vesting period the participants will be allotted shares in MilDef Group AB at no cost if certain performance targets are met. One basic requirement
for allotment of shares is that the participant, subject to certain exceptions, remains employed within the MilDef Group throughout the three years
of the program.
A further requirement is that MilDef’s adjusted EBITDA per share during the period of validity has reached certain minimum levels and that
MilDef’s share price development on Nasdaq Stockholm has been positive during the same period. The number of shares that can be allotted to
the participants according to LTIP 2025/2028 is capped at 20,000, which is equivalent to around 0.04% of all outstanding shares in the Company.
During the year, 15,000 warrants were allotted to employees.
The Group’s performance based long-term incentive program will enable the employees to obtain shares in the Company. The fair value of the
allotted warrants is recognized as an employee expense with an equivalent increase in equity. The fair value will be established on the allotment
date and distributed over the vesting period. The recognized expense will be equivalent to the fair value of the warrants, taking into account
market conditions. The actual expense recognized during the course of the program will be affected by the extent to which the service and
performance terms are met. However, the recognized expense will not be affected by whether or not terms relating to market conditions are met.
Social security contributions attributable to share-related instruments for employees as remuneration for services performed will be expensed over
the periods during which those services are performed. Social security contribution liabilities are based on the fair value of the shares on the reporting
date and on assessments made at the end of each period of the outcome of all terms in the program.
The total cost of this share-based remuneration amounted to SEK 0.5 million during the period, with an equivalent increase reported directly in equity.
In addition to this, the cost of social security contributions has been expensed at SEK 0.2 million with an equivalent liability for these contributions
of the same amount.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 23. Provisions
Provisions for warranties 2025 2024
Opening balance, January 1 2.0 1.7
Additions during the year 7.6 0.3
Reversed during the year - -
Translation difference 0.0 0.0
Closing balance, December 31 9.6 2.0
Provision for restructuring reserve 2025 2024
Opening balance, January 1 12.4 -
Additions during the year - 12.4
Reversed during the year -12.1 -
Translation difference - -
Closing balance, December 31 0.4 12.4
Provision for charitable contributions 2025 2024
Opening balance, January 1 1.4 -
Additions during the year 1.0 1.4
Reversed during the year -0.8 -
Translation difference - -
Closing balance, December 31 1.6 1.4
Warranty expenses
A provision has been made for estimated warranty costs for products 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. As a result of the Group’s strong
growth, a ceiling for this provision of SEK 1 million per year was introduced in 2025. The causes to which the Group donates 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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 22. Interest-bearing liabilities including lease liabilities
2025 2024
Long-term borrowing
Liabilities to credit institutions 452.3 102.5
Contingent consideration - -
Lease liabilities 182.8 60.7
Short-term borrowing
Liabilities to credit institutions 98.0 31.4
Contingent consideration - -
Lease liabilities 39.7 25.8
Total borrowing 772.9 220.4
MilDef has two credit facilities with SEB of EUR 40 million and SEK 147.5 million respectively, maturing in February 2028 with an option to extend
for two years. Unutilized credit including cash and cash equivalents amounted to SEK 226.7 million (650.4).
MilDef’s overdraft facility amounts to SEK 78.1 million (120.0), of which SEK 41.9 million had been utilized on the closing day (120.0).
===== SIDA 113 =====
Restructuring costs
In the fourth quarter of 2024 MilDef decided to focus fully on its business in the defense and security domain. Accordingly, the
Company intends to integrate the defense industry products of its Handheld subsidiary into the rest of the business and to cease
operations in Handheld’s other sales segments. As a consequence of this, MilDef has reported an initial restructuring reserve of
SEK 310 million made up of the following items:
- Personnel costs SEK 7.6 million
- Cost of premises (lease assets) SEK 12.6 million
- Disposal of stock 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 consisted of the following items:
- Personnel costs SEK 7.6 million
- Other operating expenses SEK 4.8 million
Total SEK 12.4 million
Outstanding provisions as of December 31, 2025 amounted to SEK 0.4 million and consist of the following items:
- Other operating expenses SEK 0.4 million
Total SEK 0.4 million
Note 25. Accrued expenses and deferred income
2025 2024
Accrued payroll expenses 38.5 23.1
Accrued social insurance contributions 19.1 14.5
Prepaid service contracts 23.8 14.9
Project work invoiced but not completed 52.2 76.0
Other items 17,6 8.4
Closing balance, December 31 151.2 137.0
Note 26. Other items with no cash flow impact
2025 2024
Change in provisions for the year -13.8 12.7
Translation differences on intra-Group transactions 22.0 -2.8
Stock impairment losses - 61.0
Capital gain/loss on disposal of non-current assets 1.0 -5.9
Capital gain/loss on early termination of lease 1.9 12.2
Total 11.1 77.1
Note 24. Contract assets and contract liabilities
2025 2024
Contract assets
Work performed but not yet invoiced 35.0 21.4
Total 35.0 21.4
2025 2024
Contract liabilities
Advance payments from customers 28.7 12.3
Total 28.7 12.3
As of January 1, 2025, contract liabilities amounted to SEK 12.3 million (32.1), of which SEK 6.5 million (21.0) was recognized as revenue in 2025.
The majority of the contract liabilities as of January 1, 2025 are expected to be recognized as revenue in 2026.
As of December 31, 2025, contract liabilities amounted to SEK 28.7 million (12.3). Closing contract liabilities are higher than in the previous year
because of major projects secured. The majority of the contract liabilities are expected to be recognized as revenue in future years.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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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. 0.5 307.8 18.3 5.0
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
Note 29. Acquisitions
IFRS 3 Business combinations is applied when accounting for the Group’s acquisitions. All business combinations are recognized
under the acquisition method, which means that assets acquired and liabilities assumed are recognized and measured at fair value
on the acquisition date. If the consideration transferred is more than the estimated value of identified net assets in the acquired
company at the time of acquisition, the difference is recognized as goodwill on consolidation. If the consideration transferred is less
than the final determined value of identifiable net assets, the difference is recognized directly in the income statement. Non-con -
trolling interests are determined for each transaction, either as a proportional share of the fair value of identifiable net assets or at
fair value. Transaction costs in connection with acquisitions are not included in the cost but are expensed directly.
Acquisitions 2025
On November 13, 2024 MilDef announced that a binding contract had been signed to acquire 100% of the voting shares in roda.
Roda is a supplier of military IT solutions with a strong market presence in Central Europe. The acquisition was completed on March
6, 2025. The acquisition will strengthen MilDef’s presence in Europe as one of Europe’s leading actors within tactical and rugged IT
for defense and security, and will provide MilDef with access to important market channels.
MilDef’s Board of Directors, as authorized by an extraordinary shareholders’ meeting on December 9, 2024, resolved on an issue in
kind as a portion of the purchase consideration for the acquisition of roda, as communicated when the acquisition was made public
on November 13, 2024. In addition to the cash consideration of EUR 70.0 million, as part of the purchase consideration MilDef
issued a total of 1,374,047 new shares in MilDef Group AB to the sellers of roda. This was equivalent to around EUR 28.7 million
based on the MilDef share price of SEK 229.00 as of March 5, 2025.
The parties also agreed on a cash contingent consideration that will depend on the EBIT level for the 2024 financial year, which will
be established in the revised financial statements for roda. The contingent consideration was set at EUR 4.0 million.
There were no other transactions with related parties. The transactions relate to the period January 1 – December 31, 2025.
Disclosures on remuneration of senior executives are provided in Note 11.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interest-
bearing
liabilities
Lease
liabilities
Total financial
liabilities
Opening balance, January 1, 2025 133.9 86.5 220.4
Cash flow 417.8 -28.3 389.5
Acquisitions - 33.6 33.6
New and amended right-of-use agreements - 132.4 132.4
Translation differences -1.4 -1.6 -3.0
Other - - -
Closing balance, December 31, 2025 550.3 222.5 772.9
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Note 30. Significant events after the closing day
No 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.
ANNUAL REPORT 2025NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The fair value of the acquired assets and liabilities present-
ed was based on the consolidated financial information for
roda at the time of the acquisition. The acquisition analysis is
preliminary. In the summary below the EUR amount has been
translated to SEK at a rate of SEK/EUR 10.96 and the number of
issued shares was 1,374,047.
The fair value of assets and liabilities as presented in the 2024
annual financial statements was based on the consolidated
financial information for roda as of December 31, 2024 and
should have been regarded as indicative. In the Q1 report
for 2025 the assets and liabilities presented are based on the
consolidated financial information for roda at the date of the
acquisition.
The preliminary calculation of goodwill consists mainly of
qualified workforce, future customers, future technology and
synergies.
No goodwill is expected to be tax deductible.
Intangible assets identified in the preliminary acquisition analy -
sis consist mainly of customer relationships and order backlog.
Transaction costs were expensed as they arose. SEK 10.8
million was expensed in 2024 and the remaining SEK 3.5 million
was expensed in 2025.
In the preliminary acquisition analysis, the Group measured the
acquired lease liabilities using the present value of the remain-
ing lease payments on the acquisition date. Right-of-use assets
were measured at an amount equivalent to the lease liabilities
and adjusted to reflect the favorable terms in the lease in rela-
tion to the market terms.
On the acquisition date the fair value of inventories amounted
to SEK 235.3 million and the fair value of accounts receivable
was SEK 96.9 million. The gross amount of accounts receivable
was SEK 96.9 million and it is expected that the full contract
amount can be collected.
For the subsidiary Westek, the local CEO is a minority share -
holder in the company with 5% of the shares at the end of
2025. The PPA has been adjusted for this minority holding. The
outcome of a long-term incentive program may result in shares
being allotted to senior executives at Westek in 2026 and 2027.
For accounting purposes the program has been valued as of
non-significant value. The maximum outcome of the program
would generate a minority holding in Westek of around 30%.
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.
SEK m EUR m SEK m
Total purchase consideration 102.1 1,119.80
Assets
Intangible non-current assets 33.3 365.0
Property, plant and equipment 1.8 19.6
Right-of-use assets 4.9 53.2
Deferred tax assets 1.7 18.9
Inventories 21.5 235.3
Accounts receivable 8.8 96.9
Other current receivables 2.6 28.7
Cash and cash equivalents 9.5 104.2
Liabilities
Non-current interest-bearing liabilities 4.2 45.6
Provisions 0.1 1.0
Deferred tax liabilities 10.9 119.4
Accounts payable 7.8 85.0
Current interest-bearing liabilities 0.7 7.5
Other current liabilities 12.4 136.5
Acquired identifiable net assets 48.1 527.1
Non-controlling interests -0.1 -1.1
Goodwill 54.1 593.8
Total acquired net assets 102.1 1,119.80
The purchase consideration consists of
Cash payment 70.0 767.3
Adjustment of net cash and working
capital -0.6 -6.7
Shares issued, at fair value 28.7 314.7
Contingent consideration 4.0 44.5
Total purchase consideration 102.1 1,119.80
Cash flow attributable to the acquisition
Cash payment of purchase consideration -70.0 -767.3
Contingent consideration -4.0 -44.5
Adjustment of net cash and working
capital 0.6 6.7
Cash in the acquired company 9.5 104.2
Total -63.9 -700.9
Acquisition costs -1.3 -14.3
Net cash flow -65.2 -715.2
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FINANCIAL STATEMENTS AND NOTES
PARENT COMPANY
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Parent Company income statement
SEK m Notes 1–2 2025 2024
Net sales 3, 4 159.3 111.2
Selling expenses -54.7 -41.7
Administrative expenses -63.0 -46.1
Research and development expenses -39.3 -29.1
Acquisition costs - -
Restructuring costs 1.4 -4.9
Other operating income/expenses 8 -14.3 0.2
Operating profit 3, 4, 5, 6, 7, 9 -10.5 -10.2
Financial income 10 146.4 32.6
Financial expense 10 -122.7 -271.1
Profit after financial items 13.1 -248.7
Year-end appropriations 11 84.9 27.1
Net profit for the year 98.0 -221.6
Income tax 12 -19.7 -0.9
Net profit for the year 78.4 -222.5
Parent Company statement of comprehensive income
Net profit for the year 78.4 -222.5
Other comprehensive income - -
Comprehensive income for the year 78.4 -222.5
ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS
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Parent Company balance sheet
SEK m Notes 1–2 Dec. 31, 2025 Dec. 31, 2024
Non-current assets
Property, plant and equipment 13
Leasehold improvements 4.5 5.2
Equipment, fixtures and fittings 3.5 1.4
Total property, plant and equipment 8.0 6.6
Financial non-current assets
Holdings in Group companies 14 542.6 542.6
Non-current receivables from Group companies 1,118.7 -
Total financial non-current assets 1,661.3 542.6
Total non-current assets 1,669.3 549.1
Current assets
Current receivables
Receivables from Group companies 437.1 255.6
Tax assets - 7.9
Other receivables 2.7 2.7
Prepaid expenses and accrued income 15 14.0 18.1
Total current receivables 453.9 284.3
Cash and bank balances 1.2 474.4
Total current assets 455.1 758.7
TOTAL ASSETS 2,124.4 1,307.8
EQUITY, PROVISIONS AND LIABILITIES
Equity 16
Restricted equity
Share capital 11.8 11.4
Total restricted equity 11.8 11.4
Unrestricted equity
Share premium reserve 321.0 493.3
Retained earnings 965.0 721.0
Net profit for the year 78.4 -222.5
Total unrestricted equity 1,364.4 991.8
Total equity 1,376.2 1,003.2
Untaxed reserves 17 4.7 3.6
Provisions
Charitable contributions 1.6 1.4
Restructuring reserve 0.4 4.9
Total provisions 2.0 6.3
Non-current liabilities
Non-current interest-bearing liabilities 452.2 102.5
Total non-current liabilities 452.2 102.5
Current liabilities
Current interest-bearing liabilities 98.0 30.0
Accounts payable 12.7 8.1
Liabilities to Group companies 146.0 139.4
Other current liabilities 13.5 3.5
Accrued expenses and deferred income 18 19.1 11.3
Total current liabilities 289.3 192.2
TOTAL EQUITY AND LIABILITIES 2,124.4 1,307.8
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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, 2024 10.0 729.3 11.3 750.6
Comprehensive income for the year -222.5 -222.5
Allocation as resolved by the AGM - - - -
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 1,222.6 -230.8 1,003.2
Opening balance, January 1, 2025 11.4 1,222.6 -230.8 1,003.2
Comprehensive income for the year 78.4 78.4
Allocation as resolved by the AGM - - - -
Transactions with shareholders in their
capacity as owners
New share issues after share issue expenses 0.4 321.0 - 321.4
Repurchase of treasury shares - - -3.8 -3.8
Share-based remuneration - - 0.5 0.5
Dividend to shareholders - - -23.5 -23.5
Closing balance, December 31, 2025 11.8 1,543.6 -179.2 1,376.2
ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS
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Parent Company cash flow statement
SEK m 2025 2024
Operations
Operating profit -10.5 -10.2
Adjustments for non-cash items
Depreciation/amortization and impairment charged to operating profit 1.8 1.8
Other 0.2 -1.1
Total 2.0 0.7
Interest received 146.4 32.6
Interest paid -122.7 -31.8
Taxes paid -0.9 -8.6
Cash flow from operating activities before changes in working capital 14.2 -17.3
Increase (-) / decrease (+) in operating receivables -930.1 11.3
Increase (+) / decrease (-) in operating liabilities 18.2 85.1
Change in working capital -911.9 96.4
Cash flow from operating activities - 897.7 79.1
Investing activities
Investments in property, plant and equipment -3.5 -0.1
Acquisition of subsidiaries - -12.2
Cash flow from investing activities -3.5 -12.3
Financing activities
Dividend to shareholders -23.5 -19.9
New share issues, net 6.6 495.0
Increase in liabilities to credit institutions 482.8 -
Decrease in liabilities to credit institutions -65.1 -105.0
Group contributions from subsidiaries 27. 2 1.4
Cash flow from financing activities 428.0 371.5
Cash flow for the year -473.2 438.3
Change in cash and cash equivalents
Cash and cash equivalents, January 1 474.4 36.1
Cash flow for the year -473.2 438.3
Closing balance, cash and cash equivalents 1.2 474.4
Granted, unutilized credit 78.1 120.0
Available liquidity 79.3 594.4
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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
Accounts 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 costs
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’ contribu-
tions. In accordance 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 instru -
ments 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
2025 2024
Net sales
Sales within the EU 106.6 80.3
Sales outside the EU 52.7 30.9
Total 159.3 111.2
Note 2. Estimates and judgments
Key sources of uncertainty in estimates
MilDef uses the simplified approach for calculating expected 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.
ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS
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