FULLTEXT DEL 3 AV 3
Årsredovisning 2025
Note 5. Lease payments 2025 2024 Operating leases Lease payments for the year 12.7 10.0 Outstanding lease payments fall due as follows: Within one year: 12.4 9.8 Later than one year but within five years: 47. 2 36.9 Later than five years: 35.8 8.3 Total 95.4 54.9 The most material leases relate to lease of real estate used in business operations. Note 6. Nature of expense method 2025 2024 Other costs 708 53.7 Personnel costs 82.7 66.1 Depreciation/amortization and impairment 1.8 1.8 Other operating expenses 14.5 -0.2 Total 169.9 121.4 Note 7. Audit fees 2025 2024 Öhrlings PricewaterhouseCoopers AB: Audit engagement 2.3 2.1 Audit-related activities besides the audit engagement - - Tax advisory services - 0.1 Other services - - Total 2.3 2.2 Note 4. Intra-Group purchases and sales 2025 2024 Percentage of sales to Group companies 100% 100% Percentage of purchases from Group companies 0% 4% Net sales relates to revenue for intra-Group services. The audit assignment consists of examination of the annual financial statements and accounting records, as well as the CEO and Board’s admin - istration 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. ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS 123 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 124 ===== MilDef Group Annual and Sustainability Report 2025 124 Note 8. Other operating income/expenses 2025 2024 Exchange gain relating to operations 24.4 15.5 Exchange loss relating to operations -38.7 -15.3 Total -14.3 0.2 Note 9. Employees and personnel costs 2025 2024 Average number of employees 60 54 Percentage of men (%) 47 49 Number of employees as of December 31 62 57 Percentage of men (%) 48 47 Gender balance in management 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 Board of Directors & CEO 6.1 5.4 Other employees 45.8 35.2 Total 51.9 40.6 Social insurance contributions All employees 24.9 20.1 Of which pension expenses Board of Directors & CEO 0.8 0.8 Other employees 5.3 5.1 Total 6.1 5.9 ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS ===== SIDA 125 ===== Note 10. Financial items 2025 2024 Interest income 73.7 19.9 Exchange gain not relating to operations 72.7 12.7 Financial income 146.4 32.6 Exchange loss not relating to operations -89.0 -10.4 Interest expense -31.3 -20.5 Impairment of holdings in subsidiaries - -239.3 Other financial expense -2.4 -0.9 Financial expense -122.7 -271.1 Note 11. Year-end appropriations 2025 2024 Group contributions received 86.0 27.1 Change in accelerated depreciation/amortization -1.1 - Total 84.9 27.1 Note 12. Tax on profit for the year 2025 2024 Current tax expense (-) / tax income (+) Current tax for the year -19.7 -0.9 Prior year adjustments - - Total -19.7 -0.9 Tax on profit for the year Earnings before tax according to the income statement 98.0 -221.6 Tax according to the Parent Company tax rate (20.6%) -20.2 45.6 Reconciliation of recognized tax Expenses recognized via equity 1.0 3.1 Non-taxable income 0.0 0.2 Non-deductible expenses -0.5 -0.5 Changes in value and impairment of capital assets - -49.3 Recognized tax expense -19.7 -0.9 ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS 125 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 126 ===== MilDef Group Annual and Sustainability Report 2025 126 Note 13. Property, plant and equipment 2025 2024 Leasehold improvements Cost Opening balance, January 1 8.4 8.4 Additions for the year 0.2 - Divestments for the year -0.1 - Closing balance, December 31 8.5 8.4 Depreciation and impairment Opening balance, January 1 -3.2 -2.3 Depreciation for the year -0.8 -0.9 Divestments for the year - - Closing balance, December 31 -4.0 -3.2 Carrying amount, December 31 4.5 5.2 Equipment, fixtures and fittings Cost Opening balance, January 1 5.0 5.4 Additions for the year 3.2 0.1 Divestments for the year -0.5 - Closing balance, December 31 7.7 5.5 Depreciation and impairment Opening balance, January 1 -3.7 -3.2 Depreciation for the year -0.9 -1.0 Divestments for the year 0.4 - Closing balance, December 31 -4.2 - 4.1 Carrying amount, December 31 3.5 1.4 ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS ===== SIDA 127 ===== Note 14. Holdings in Group companies 2025 2024 Cost Opening balance, January 1 794.9 794.3 Additions for the year - 0.6 Closing balance, December 31 794.9 794.9 Impairment losses Opening balance, January 1 252.3 13.0 Impairment losses for the year - 239.3 Closing balance, December 31 252.3 252.3 Carrying amount, December 31 542.6 542.6 Specification of holdings in Group companies Group company / Corp. reg. no. / Registered office No. of shares Ownership (%) Carrying amount MilDef International AB, 556422-8277, Helsingborg, Sweden 5,350 100 49.9 MilDef Products AB, 556874-1317, Helsingborg, Sweden 10,000 100 191.2 MilDef Ltd, 5756627, Cardiff, UK 340,000 100 2.1 MilDef, Inc., 5979209, Delaware, USA 120,000 100 1.3 MilDef AS, 959 279 772, Oslo, Norway 1,016 100 1.1 MilDef Sweden AB, 556994-2682, Stockholm, Sweden 1,000 100 182.3 Sysint AS, 825 838 392, Oslo, Norway 30,000 100 113.1 MilDef A/S, 43989014, Ballerup, Denmark 400,000 100 0.6 MilDef Oy, 3325523-7, Espoo, Finland 1,000 100 0.0 MilDef Germany Holding GmbH, Frankfurt, Germany 100 100 0.3 roda computer GmbH, HRB 210974, Lichtenau, Germany - 100 - roda computer SAS, 821 003 902, Vendenheim, France 5,000 100 - Westek Technology Limited, 02026198, Melksham, UK 950,000 95 - Handheld Group AB, 556556-2799, Lidköping, Sweden 4,374,000 100 0.6 Handheld APAC Pty Ltd, 146981526, Victoria, Australia 1,000 100 - Handheld Swiss GmbH, 422378549, Landquart, Switzerland 100 100 - Total 542.6 ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS 127 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 128 ===== MilDef Group Annual and Sustainability Report 2025 128 Note 17. Untaxed reserves 2025 2024 Accelerated depreciation/amortization 4.7 3.6 Total 4.7 3.6 Note 19. Contingent liabilities 2025 2024 Guarantee commitments for subsidiaries’ liabilities 9.2 7.7 Total 9.2 7.7 Note 18. Accrued expenses and deferred income 2025 2024 Accrued payroll expenses 9.2 4.6 Accrued social insurance contributions 4.6 2.8 Other items 5.4 3.9 Total 19.1 11.3 Note 15. Prepaid expenses and accrued income 2025 2024 Prepaid rent 3.4 2.4 Prepaid insurance 1.5 1.8 Acquisition costs incurred - 10.8 Prepaid bank fees 3.3 1.3 Prepaid IT services 5.0 1.4 Other items 0.8 0.4 Total 14.0 18.1 Note 16. Equity One share in MilDef Group AB has a quota value of SEK 0.25. The number of shares is 47,114,895 (45,573,068) and the share capital amounts to SEK 11,778,723.75 (11,393,267.00). 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 Allocation as resolved by the AGM - - -729.3 -729.3 New share issue 5,713,502 1.4 511.1 512.5 Share split (2:1) - - - - As of December 31, 2024 45,573,068 11.4 493.3 504.7 Allocation as resolved by the AGM - - -493.3 -493.3 New share issue 1,541,827 0.4 322.4 322.8 Issue costs - - -1.4 -1.4 As of December 31, 2025 47,114,895 11.8 321.0 332.8 ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS ===== SIDA 129 ===== The following profit of the Parent Company is at the disposal of the Annual General Meeting: SEK 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 After implementation of the proposed allocation of profit, equity in the Parent Company is as follows: Share capital 11,778,724 Retained earnings 1,329,054,249 Total 1,340,832,973 MilDef’s policy regarding dividends is to distribute an annual dividend of 20–40% of profit after tax. MilDef will, however, take long-term development, the capital structure and the prevailing market conditions into account. The Board proposes that SEK 35.3 million, or SEK 0.75 per share, is distributed as dividends to the shareholders. This is calculated on the number of outstanding shares as of December 31, 2025, which was 47,114,895 (assuming there is no holding of treasury shares on the record day). The equity/assets ratio for the Group is 52.3% (65.4) and after allocation of earnings, the equity/assets ratio is 51.1%. 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. Note 20. Proposal for allocation of profit ANNUAL REPORT 2025PARENT COMPANY FINANCIAL STATEMENTS 129 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 130 ===== MilDef Group Annual and Sustainability Report 2025 130 The Annual Report and consolidated financial statements were, as stated above, approved for issuance by the Board of Directors and CEO on April 15, 2026. Our auditor’s report was issued on April 15, 2026 Björn Karlsson Chair of the Board Jan Andersson Board member Charlotte Darth Board member Eric Salander Authorized Public Accountant Auditor-in-Charge Elisabeth Åbom Board member Lennart Pihl Board member Daniel Ljunggren Chief Executive Officer Carl Mellander Board member Johan Rönnbäck Authorized Public Accountant Bengt-Arne Molin Board member The Board of Directors and CEO hereby certify that the annual accounts have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for Legal Entities, and give a true and fair view of the Company’s financial position and results, and that the Directors’ Report provides a true and fair overview of the development in the Company’s operations, financial posi - tion and results, and describes significant risks and factors of uncertainty facing the Company. The Board of Directors and CEO hereby certify that the consolidated financial statements have been prepared in accordance with Inter - national Financial Reporting Standards (IFRS), as adopted Signatures in the EU, and give a true and fair view of the Group’s financial position and results, and that the Directors’ Report for the Group gives a true and fair view of the develop - ment in the Group’s operations, financial position and results, and describes significant risks and factors of uncertainty facing the companies in the Group. The annual accounts and the consolidated financial statements were approved for issuance by the Board of Directors on April 15, 2026. The consolidated statement of comprehensive income and balance sheet and the Parent Company income statement and balance sheet will be subject to adoption by the Annual General Meeting on May 21, 2026. Öhrlings PricewaterhouseCoopers AB SIGNATURES ANNUAL REPORT 2025 ===== SIDA 131 ===== REPORT ON THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS To the general meeting of the shareholders of MilDef Group AB, corporate identity number 556893-5414 ANNUAL REPORT 2025AUDITOR’S REPORT Opinions We have audited the annual accounts and consolidated accounts of MilDef Group AB for the year 2025. The annual accounts and consolidated accounts of the company are included on pages 72-130 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent com- pany as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2025 and their financial performance and cash flow for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU, and the Annual Accounts Act. The statu- tory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the statement of com - prehensive income and balance sheet for the group. Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company’s audit committee in accordance with the Audit Regulation (537/2014/EU) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted audit- ing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsi- bilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these require- ments. This includes that, based on the best of our know- ledge and belief, no prohibited services referred to in the Audit Regulation (537/2014/EU) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is suf- ficient and appropriate to provide a basis for our opinions. Audit approach Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the consoli - dated financial statements. In particular, we considered where the Board of Directors and the Managing Director made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inher - ently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into ac- count the structure of the group, the accounting processes and controls, and the industry in which the group operates. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit pro - cedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Key audit matters Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. Key Audit Matter Valuation of goodwill and other acquired intangible assets Reference to note 1 and note 14 in the annual report. The value of the intangible assets as of 31 December 2025 amounts to 1,264 MSEK and constitutes a significant part of the group’s balance sheet. In accordance with IFRS, the group makes an annual assessment of the value of the assets, which is based on the calculation of discounted future cash flows. Some of the assumptions and assess - ments the management makes regarding future cash flows and conditions are complex and have a major impact on 131 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 132 ===== MilDef Group Annual and Sustainability Report 2025 132 the calculation of the value in use. This applies in particular to the following; growth rate, profit margins, and discount rate. Changes in these assumptions could lead to a change in the reported value of intangible assets and goodwill, whereby we consider this to be a particularly significant area. How our audit adressed the Key Audit Matter In our audit, we have assessed the calculation model used and challenged the material assumptions used by management in their tests. We have assessed the reason - ableness of the budget presented by management and approved by the board by evaluating historical outcomes against established budgets. We have compared the growth in the terminal value with independent forecasts concerning economic growth and assessed whether the assumptions used are within a reasonable range. We have also assessed the discount rate (weighted average cost of capital (”WACC”)) against comparable businesses and assessed whether the assumptions used are within a rea - sonable range. We have also evaluated the management’s assessment of how the group’s calculation models are affected by changes in assumptions and compared this with the information presented in the annual report related to impairment tests. We have also assessed the accuracy of the information that appears in the annual report. Accounting for acquisition Reference to note 29 in the annual report. The group has completed a significant acquisition during the financial year 2025. The recognition of acquisition involves a high degree of judgement by management. Significant estimates and judgements refer to the alloca - tion of fair value in the purchase price allocation to assets and liabilities, as well as referring to adjustments for adaptation to the group’s accounting principles We have reviewed the acquisition through examination of the acquisition agreements and reconciliation against the opening balances of the acquired company. Furthermore, we have evaluated the adjustments made to align with the accounting principles of the group. Our audit has also included a review of the company’s assessments and calculations in the allocation of group-related surpluses and deficits in the purchase price allocation. We have verified the disclosures in the annual report related to the acquisition and reviewed the underlying documentation supporting the accounting for the acquisition. Other information than the annual accounts and the consolidated accounts This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1-55 and 68-71, including the sustainability report on pages 30-50 and the remuneration report on pages 70-71 and pages 135-144. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this infor - mation, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presenta - tion in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS Accounting Standards as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated ac - counts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Directors responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. A further description of our responsibility for the audit of the annual accounts and consolidated accounts is available on Swedish Inspectorate of Auditors’ website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor´s report. ===== SIDA 133 ===== REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS The auditor’s examination of the administra - tion of the company and the proposed appropriations of the company’s profit or loss Opinions In addition to our audit of the annual accounts and consoli - dated accounts, we have also audited the administration of the Board of Directors and the Managing Director of MilDef Group AB for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibili- ties under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suf- ficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’ equity, consolidation require - ments, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company´s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are con - trolled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the com- pany’s profit or loss are not in accordance with the Companies Act. A further description of our responsibility for the audit of the administration is available on Swedish Inspectorate of Audi- tors’ website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor’s report. The auditor’s examination of the ESEF report Opinion In addition to our audit of the annual accounts and con - solidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consolidated accounts in a for - mat that enables uniform electronic reporting (the ESEF report) pursuant to Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528) for MilDef Group AB for the financial year 2025. Our examination and our opinion relate only to the statutory requirements. In our opinion, the ESEF report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for Opinion We have performed the examination in accordance with FAR’s recommendation RevR 18 Examination of the ESEF report. Our responsibility under this recommendation is described in more detail in the Auditors’ responsibility section. We are independent of MilDef Group AB in accor- dance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 133 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 134 ===== Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the ESEF report in accordance with the Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the ESEF report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the ESEF report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the ESEF report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the ESEF report. The firm applies International Standard on Quality Mana - gement 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through various procedures, that the ESEF report has been prepa - red in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstate - ment in the report, whether due to fraud or error. In carry - ing out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the ESEF report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the ESEF report has been prepared in a valid XHTML format and a reconciliation of the ESEF report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assess - ment of whether the consolidated statement of financial performance, financial position, changes in equity, cash flow and disclosures in the ESEF report have been marked with iXBRL in accordance with what follows from the ESEF regulation. Öhrlings PricewaterhouseCoopers AB, P O Box 4009, SE-203 11 Malmö, was appointed auditor of MilDef Group AB by the general meeting of the shareholders on 22 May 2025 and has been the company’s auditor since the 25 May 2023. Malmö 15 april 2026 Öhrlings PricewaterhouseCoopers AB Eric Salander Johan Rönnbäck Authorized public accountant Authorized public accountant Auditor in charge This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. MilDef Group Annual and Sustainability Report 2025 134 ===== SIDA 135 ===== ANNUAL REPORT 2025MULTI-YEAR SUMMARY Key figures 2025 2024 2023 2022 2021 Sales and profit Net sales, SEK m SEK m 2,045 1,201 1,151 739 470 Operating profit (EBITDA) SEK m 325.1 -141.9 168.0 60 20.7 Adjusted operating profit (EBITDA)* SEK m 319.8 178.9 168.0 60 32.2 Operating profit (EBITA) SEK m 281.7 -171.1 140.2 44.8 8.2 Adjusted operating profit (EBITA)* SEK m 276.3 149.7 140.2 44.8 19.7 Operating profit (EBIT) SEK m 214.4 -209.0 108.1 29.2 -2.9 Adjusted operating profit (EBIT)* SEK m 209.0 111.8 108.1 29.2 8.6 Profit after financial items (EBT) SEK m 171.6 -222.6 88.6 19.2 -5.3 Net profit for the year SEK m 148.0 -220.3 69.0 14.2 -0.7 Cash flow Cash flow from operating activities SEK m -3.0 144.4 54.5 -76.8 -55.5 Cash flow from investing activities SEK m -731.5 -33.3 -68.9 -321.3 -187. 2 Cash flow from financing activities SEK m 359.7 335.1 38.5 285.7 362.9 Operating cash flow SEK m -33.5 127.7 8.8 -95.0 -71.4 Cash flow for the year SEK m -374.8 446.2 24.2 -112.4 120.3 Capital employed and financing Total assets, SEK m SEK m 2,907 1,684 1,526 1,394 808 Average capital employed SEK m 1,807 1,267 1,157 887 428 Net debt/net cash excl. lease liabilities SEK m -402 396 -182 -168 128 Equity attributable to owners of the parent SEK m 1,518 1,102 845 788 568 Multi-year summary * See page 23 of the year-end report for definitions and reconciliations for alternative performance measures. 135 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 136 ===== MilDef Group Annual and Sustainability Report 2025 136 MULTI-YEAR SUMMARY ANNUAL REPORT 2025 Key figures 2025 2024 2023 2022 2021 Data per share, SEK* Number of outstanding shares, December 31 NUMBER 47,114,895 45,573,068 39,859,566 39,859,566 36,389,373 Average number of shares, before dilution NUMBER 46,814,993 40,598,903 39,859,566 37,400,988 26,243,169 Average number of shares, after dilution NUMBER 46,871,500 41,013,824 40,301,066 37,84 4,488 26,243,169 Earnings per share, before dilution SEK 3.16 -5.43 1.73 0.38 -0.03 Earnings per share, after dilution SEK 3.15 -5.37 1.71 0.37 -0.03 Equity per share, before dilution SEK 32.22 24.17 21.19 19.77 15.61 Equity per share, after dilution SEK 32.22 24.09 20.96 19.55 15.61 Operating cash flow per share, before dilution SEK -0.72 3.15 0.22 -2.54 -2.72 Operating cash flow per share, after dilution SEK -0.72 3.11 0.22 -2.51 -2.72 Dividend per share SEK 0.75 0.50 0.50 - 0.75 Share price as of December 31 SEK 119.8 124.80 65.60 80.80 52.40 Dividend yield % 0.63 0.40 0.76 0.00 1.43 Performance measures Gross margin % 45.0 49.0 48.3 47.7 44.7 Operating margin (EBITDA) % 15.9 -11.8 14.6 8.1 4.4 Adjusted operating margin (EBITDA) % 15.6 14.9 14.6 8.1 6.9 Operating margin (EBITA) % 13.8 -14.2 12.2 6.1 1.7 Adjusted operating margin (EBITA) % 13.5 12.5 12.2 6.1 4.2 Operating margin (EBIT) % 10.5 -17.4 9.4 4.0 -0.6 Adjusted operating margin (EBIT) % 10.2 9.3 9.4 4.0 1.8 Profit margin (EBT) % 8.4 -18.5 7.7 2.6 -1.1 Return on capital employed % 12.6 -15.7 10.1 3.4 0.0 Return on equity % 11.3 -22.6 8.5 2.1 -0.2 Equity/assets ratio % 52.3 65.4 55.4 56.5 70.3 Other Number of employees at year-end NUMBER 479 327 309 291 188 Average number of employees NUMBER 443 319 302 233 154 Multi-year summary ===== SIDA 137 ===== 2025 2024 2023 2022 2021 Operating profit (EBIT) 214.4 -209.0 108.1 29.2 -2.9 Restructuring costs/Listing expenses -8.9 310.0 - - 11.1 Acquisition costs 3.5 10.8 - - 0.4 Adjusted operating profit (EBIT) 209.0 111.8 108.1 29.2 8.6 Adjusted operating profit (EBIT) 209.0 111.8 108.1 29.2 8.6 Net sales 2,045 1,201 1,151 739 470 Adjusted operating profit (EBIT), % 10.2% 9.3% 9.4% 4.0% 1.8% Operating profit (EBITA), SEK m Operating profit (EBIT) 214.4 -209.0 108.1 29.2 -2.9 Amortization of intangible non-current assets 67.3 37.9 32.1 15.6 11.1 Operating profit (EBITA) 281.7 -171.1 140.2 44.8 8.2 Adjusted operating profit (EBITA), SEK m Operating profit (EBITA) 281.7 -171.1 140.2 44.8 8.2 Restructuring costs/Listing expenses -8.9 310.0 - - 11.1 Acquisition costs 3.5 10.8 - - 0.4 Adjusted operating profit (EBITA) 276.3 149.7 140.2 44.8 19.7 Adjusted operating profit (EBITA) 276.3 149.7 140.2 44.8 19.7 Net sales 2,045 1,201 1,151 739 470 Adjusted operating profit (EBITA), % 13.5% 12.5% 12.2% 6.1% 4.2% Operating profit (EBITDA), SEK m Operating profit (EBIT) 214.4 -209.0 108.1 29.2 -2.9 Depreciation/amortization 110.7 67.1 59.9 30.8 23.6 Operating profit (EBITDA) 325.1 -141.9 168.0 60.0 20.7 Adjusted operating profit (EBITDA) Operating profit (EBITDA) 325.1 -141.9 168.0 60.0 20.7 Restructuring costs/Listing expenses -8.9 310.0 - - 11.1 Acquisition costs 3.5 10.8 - - 0.4 Adjusted operating profit (EBITDA) 319.8 178.9 168.0 60.0 32.2 Adjusted operating profit (EBITDA) 319.8 178.9 168.0 60.0 32.2 Net sales 2,045 1,201 1,151 739 470 Adjusted operating profit (EBT), % 15.6% 14.9% 14.6% 8.1% 6.9% Alternative performance measures ANNUAL REPORT 2025ALTERNATIVE PERFORMANCE MEASURES The Group’s performance measures are detailed below. Some of these are defined in accordance with IFRS. Other than these, the Group has identified certain additional performance measures that provide the Company’s investors and management with supplementary information to facilitate the assessment of relevant trends as well as the Company’s performance. Since not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures are therefore to be seen as supplementing the performance measures defined according to IFRS. 137 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 138 ===== MilDef Group Annual and Sustainability Report 2025 138 ===== SIDA 139 ===== ANNUAL REPORT 2025DEFINITION OF KEY FIGURES Definitions Number of shares outstanding Number of registered shares less repurchased shares, held by the Company. Return on equity Profit after tax attributable to owners of the parent as a percentage of average equity. Return on capital employed Profit after financial income as a percentage of average capital employed. EBIT Earnings before interest and taxes according to the income statement. EBITA Earnings before amortization and impairment of intangible non-current assets. EBITDA Earnings before interest, taxes, depreciation, amortization and impairment of property, plant and equipment and intangible non-current assets. ADJUSTED PROFIT MARGIN (EBT) Earnings after financial items adjusted for non-recurring items in relation to net sales. Non-recurring items Non-recurring items are specific material items that are reported separately because of their size or frequency, e.g. restructuring costs, impairment, divestments and acquisition costs. NET DEBT Long-term and short-term interest-bearing liabilities less income-bearing financial assets. Operating cash flow Cash flow from operating activities and cash flow from investing activities excluding acquisitions and divestments of intangible non-current assets and of property, plant and equipment. Organic growth Annual growth in net sales excluding acquisition-related net sales, calculated as increase in net sales excluding acquisition-related net sales compared with the previous year, expressed as a percentage. Working capital Current assets, excluding cash and cash equivalents and current tax assets, minus interest-free current liabilities, excluding current tax liabilities. Operating margin Operating profit as a percentage of net sales. Equity/assets ratio Equity as a percentage of total assets. Capital employed Equity plus interest-bearing net debt. EARNINGS PER SHARE, BEFORE DILUTION Profit after tax attributable to owners of the parent as a percentage of the average number of outstanding shares. Earnings per share after dilution Profit after tax attributable to owners of the parent as a percentage of average number of outstanding shares plus average number of shares added upon conversion of outstanding convertibles and warrants. 139 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 140 ===== MilDef Group Annual and Sustainability Report 2025 140 Article 1 – Business name The Company’s business name is MilDef Group AB. The Company is to be a public limited company (Sv. publ). Article 2 – Registered office The registered office is to be in Helsingborg, Sweden. Article 3 – Operations The Company’s activities are to be owning and managing shares in subsidiaries, preferably with operations within technology and the total defense and security sectors and activities compatible with these. In addition, the Company is to provide Group-wide services such as services within management, legal, HR and finance with a view to facilitating operations for the subsidiaries. Article 4 – Share capital The minimum share capital is to be SEK 6,162,500 and the maximum SEK 24,650,000. Article 5 – Number of shares in the Company The minimum number of shares is to be 24,650,000 and the maximum 98,600,000. Article 6 – Composition of the Board of Directors The Board of Directors is to consist of no fewer than three (3) and no more than eight (8) members, without deputy members. The Board of Directors is elected each year at the Annual General Meeting for the period until the end of the next Annual General Meeting. Article 7 – Auditors At least one and no more than two registered pubic accounting firms or at least one and no more than two auditors are to be appointed by the shareholders’ meeting to audit the Company. The audit engagement is to continue until the end of the Annual General Meeting in the subsequent financial year. Article 8 – Notice convening shareholders’ meetings The notice convening the Annual General Meeting or extraordinary shareholders’ meeting is to be published in Post- och Inrikes Tidningar (the Official Swedish Gazette) and on the Company’s website. The notice of the meeting is also to be advertised in the Swedish newspaper Dagens Industri. Article 9 – Agenda of Annual General Meeting The following matters are to be dealt with at the Annual General Meeting. 1. Election of person to chair the meeting. 2. Preparation and approval of the voting list. 3. Election of one or two persons to check the minutes. 4. Verification of whether the meeting has been duly convened. 5. Approval of agenda. 6. Presentation of the annual accounts and Auditor’s Report and of the consolidated financial statements and Auditor’s Report for the Group. 7. Resolutions concerning a. adoption of the income statement and balance sheet and of the consolidated income statement and consolidated balance sheet. b. distribution of the Company’s profit or loss according to the adopted balance sheet; c. discharge from liability of the members of the Board and the CEO. Articles of Association of MilDef Group AB corp. reg. no. 556893-5414 ARTICLES OF ASSOCIATION ANNUAL REPORT 2025 ===== SIDA 141 ===== 8. Determination of number of board members and auditors. 9. Establishment of board fees. 10. Establishment of fees for auditor(s). 11. Election of Board of Directors. 12. Election of auditor(s). 13. Any other business duly referred to the meeting in accordance with the Swedish Companies Act or the Articles of Association. Article 10 – Attendance at shareholders’ meetings To be able to attend the shareholders’ meeting, the shareholder must notify the Company by the date specified in the meeting notice, stating the number of companions. This date must not be a Saturday, a Sunday, Midsummer Eve, Christmas Eve, New Year’s Eve or any other public holiday, and must not fall earlier than on the fifth weekday before the meeting. Article 11 – Proxies The Board of Directors may collect proxies in accordance with the procedure set out in Chapter 7, Section 4, 2nd paragraph of the Swedish Companies Act. Article 12 – Postal voting In advance of a shareholders’ meeting the Board of Directors may decide to allow the shareholders to vote by mail (or via a comparable digital system) before the meeting. Information to this effect is to be provided in con - nection with the meeting notice. The meeting notice must clearly describe the procedure and how it is to be carried out. Article 13 – Financial year The Company’s financial year is to follow the calendar year. Article 14 – Record day provision The Company’s shares are to be registered in a Central Securities Depository (CSD) in accordance with the Swedish Central Securities Depositories and Financial Instruments Accounts Act (1998:1479). ___________________ These Articles of Association were adopted at the Annual General Meeting on May 25, 2023 ANNUAL REPORT 2025ARTICLES OF ASSOCIATION 141 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 142 ===== MilDef Group Annual and Sustainability Report 2025 142 ===== SIDA 143 ===== 143 MilDef Group Annual and Sustainability Report 2025 ===== SIDA 144 ===== MilDef Group AB Muskötgatan 6 SE-254 66 Helsingborg Sweden Tel: +46 42 25 00 00 email: infomildef@mildef.com www.mildef.com Corp. reg. no. 556893-5414 Financial calendar: Interim Report Q1 2026 April 23, 2026 Annual General Meeting 2026 May 21, 2026 Interim Report Q2 2026 July 16, 2026 Interim Report Q3 2026 October 22, 2026 Year-End Report 2026 February 4, 2027 For further information contact: MilDef Group AB Daniel Ljunggren, President & CEO +46 70 668 00 15 daniel.ljunggren@mildef.com Viveca Johnsson, CFO +46 70 462 75 05 viveca.johnsson@mildef.com Olof Engvall, Head of IR & Communications +46 735 41 45 73 olof.engvall@mildef.com