MilDef Group AB (publ) (8QA.F) Earnings Call Transcript & Summary

So welcome, ladies and gentlemen, to the 2025 edition of the MilDef Capital Markets Day. A warm welcome to the many good friends, owners, analysts and media in this very room. Many of you were here last year. So we're excited to see you back again. And welcome to the many of you following the MilDef Capital Markets Day 2025 on the online live broadcast on the webcast -- on our web page or on YouTube. You're also very, very welcome. It's the first time we do this live on an online feed broadcast. So it's a little bit of an excitement for us. Thank you for participating. This is a unique opportunity to dive deeper into the MilDef universe. Traditionally, as you know, when we meet, we have 30 minutes, 40 minutes quarterly reports, one-on-ones, roadshows, investor meetings, seminars. I mean it's always too little time, and we're always rushing through it, Daniel and myself and the rest of the team. So today, all in all, we have 4 hours together in this room. The participants and the travelers on the spaceship today here with the lunch. We have 4 hours to deep dive into this universe. For those online, it's 3 hours. And by the way, my name is Olof Engvall. I'm the Head of Investor Relations and Corporate Communication with MilDef going 4 years back. And it is my duty to tell you, ladies and gentlemen, that the emergency exit is in the very back of the room. Please make sure you know where it is. That's the closest one. You can also make life more complicated by going out there. But if you want to take that one, you can follow the signs for the emergency if the unlikely happens, of course. So this is the second streak of our Capital Markets Day, and we have 4 hours together. We have -- the presenters of this show have, of course, spent a lot of time to make this a very valuable agenda. It is a full flight, no doubt. This fast-growing Swedish tech defense company has packed the bag, which is overloaded probably, but it's lots of value. I can already now reveal that there are no news items, which you've seen in the press release 1 hour ago, but there will be many new learnings from this event when we deep dive into the many topics that we have packed in this suitcase today. So no doubt, it's a very full brief case. And we will talk about topics that you typically ask us about. How do we put content into a day like this? Well, we listen to you. The many questions we get from you when we meet you out there very, very often. So we will talk about the MilDef journey going a little bit back and going into the future. We will deep dive into the tech, to the solutions, to the hardware, to the software, to the integration services, the new broader MilDef that has evolved over the soon 30 years of existence. We will talk about how we sell and to whom, of course, that's very important as we go deeper into Central Europe and we go down on the DACH market, for instance. And we will deep dive into the somewhat difficult to understand sometimes, but the fantastic deployment software, OneCIS, which we sometimes try to explain in 30 seconds to you. Today, we have 20 minutes with the actual inventor and the tech guy behind it all. And Daniel will, of course, talk about the pathway to the future and the strategies going forward on this somewhat overwhelming journey that MilDef is on. Remember, we are going to be twice the size this year than last time we did this Capital Markets Day on top line. So it's a bit of a journey. And I said that there are no news in this deck this morning, but I was excited the other day. And you all know that SEB took us to the NASDAQ Stock Exchange, very good friends with SEB, of course, going back. And this got me a bit excited the other day when SEB pointed to 3 European defense companies saying that Chemring, Rheinmetall and MilDef, yours truly, are the hottest stocks on the defense platform on the stock exchange right now. So this, of course, and you've seen this. And since I'm an old journalist, I think this is very exciting. So thank you, SEB, for doing that. Let's see if we can live up to all these promises going forward. Okay. Like last year, we presented the full management team at this Capital Markets Day. That's one of the big values of this day, of course, that you will have a coffee break and you will have a lunch, and you will have many interesting presentations by the corporate management team. So today, we will -- in a few seconds, I will ask them to rise up and introduce themselves. But I will also say that we miss you, Viveca. Come back. Viveca is tracking us. Our CFO, Viveca Johnsson. She is on maternity leave, and she will be back in January. So please come back in January. We certainly miss you. So now I want the corporate management team and the extension today, the Norwegian gentleman and the German gentlemen to stand up and introduce yourself. I think that you have microphones, so you can do that. Please stand up and rise to the occasion. So the audience knows who you are. So let's do it from Magnus and then we go to the other side with Daniel.

Good morning. Magnus Hagman, Vice President, Nordics.

Good morning. Fabian Forster, Business Manager for our OneCIS product.

And Fredrik Persson, CTO and Deputy CEO at MilDef.

Frank Scholz, I'm the Managing Director, roda computer GmbH.

Karin Svalander, Chief Legal and Compliance Officer.

Martina Karlsson, Chief People Officer.

And finally, good morning, everyone. Daniel Ljunggren, CEO, MilDef.

Thank you, ladies and gentlemen. You will see much more of these -- my colleagues later on in the show. So when planning this event, and we are at the starting point now, when planning this event, we were thinking about taking you all down to the Fortress in Helsingborg. How many of you have been to the Fortress? Quite a few. The Fortress is the MilDef headquarters and main production facility in Helsingborg, where it all started some shy 30 years ago. We thought about bringing you down, but then it's easier to do it here in Stockholm. The other idea was to travel on a bus, a big bus trip together, 20 minutes up north towards Orlando. In 2 weeks' time, we inaugurate 6,500 square meters of state-of-the-art production installation service facility. It's a totally stark workshop really. It's amazing. You will see in a few moments this building behind the scenes. And we were thinking about bringing you there for the Capital Markets Day. However, we realized there are no furnitures. And it would be funny to see you all sit on the floor. So we didn't do that. Next CMD perhaps. And talking about Daniel presenting this very momentarily. For 14 years, he has been along the journey of MilDef's growth path. When he started in 2011, MilDef turned over SEK 50 million. When we travel out of '25 this year, MilDef will be well over 40x bigger. It's been quite a journey, don't you say, Daniel. A warm hand for our CEO and President, Daniel Ljunggren.

Thank you very much, Olof, of course, and most welcome to all of you here physically in the room, the audience and also all of you online there. And as Olof mentioned, we have a full packed agenda today. So we're trying to be as quick as possible, but get the message out there. But before I kick off, Olof mentioned the whole management team here. And as you all know, running a company is more of a team sport. So I'm really super happy to have the strong team here with me together today. And we also, on top of that, have 2 really experts when it comes to what I see as 2 critical components for MilDef further growth journey. That's the German market and also our more and more high demand for our software, the OneCIS ones, you will really try to understand and get the true experts to explain how they see those 2 kind of components going forward. And I agree, Olof, we miss Viveca. Hello, Viveca. We'll see you in January again. So we are full management team besides Viveca. But let's start then with the MilDef universe, just to give you some overflight of the basic facts of MilDef. We will deep dive into this, of course, but we are a provider of tactical IT solution founded in 1997. And as we say here, history matters. And this because it's much of a trust business to be in this business. We have decades of trust in defense. We have been in this area where maybe everything was just decreasing. And now that we see ramp, increased defense spending again, we are in the right position. So history matters and our trust in this industry matters. We are doing an IPO in June 2021. So we are like more than 4 years into our journey as a public traded company. We are more than 45,000 shareholders today, which I think is quite much due to that we are just a mid-cap company. And some of these shareholders I see in the room here today, of course, some of you are included in this 45,000. And we are in the company today around 500 employees, and we have presence in 10 countries. But the other way to explain what we are in MilDef and give you that sentence and that context and give you that glance into MilDef is, of course, to say that we are a fast-growing defense tech company. We're looking at now last 12 months order intake of SEK 2.5 billion. We are doubling the order intake the last 12 months. We have all-time high record strong order backlog, SEK 3.2 billion, and that's a growth of 120% the last 12 months. And still, we have a book-to-bill ratio that is close to 1.8. So there's still some power and some room for continued growth going forward. And the last 12 months, we did a net sales growth of 25% and we have increased -- we're going to come back to that, the capacity question, but we are today 500 full-time employees, and that's an increase of more than 50% in the last 12 months. So this is actually where we have MilDef and where we find MilDef today, fast-growing defense tech company. And just to give you a little bit more flavor on that, if we go back to 2021 and you see the progress in the order intake, we see a CAGR of 43%. Year-over-year, we have added 43% in growth in order intake. And also another KPI that is important for us, the order backlog. If we look at that development since 2021, we see a development that is more than 300%. So that is where we can find MilDef right now. And of course, this is due to the European defense ramp-up but we will come back to that later that we probably just now are at the beginning of the beginning, even if we can see this ramp-up in all of the KPIs. I just want to also give you a breakdown of our net sales geographically wise and see what -- where do we have our strong footprint. We are based in the Nordic countries. Our home market is Sweden. That is where we have grown up and we're still doing the most of the business. We have super good relationships with the procurement agencies in Sweden, Denmark and Norway. We have -- and this is just when we have added like 4 months into the roda journey together with MilDef, we have a strong footprint in Europe. Going forward, we're seeing that the European number will go north of 50%. So we will come -- transform MilDef from being quite a strong key player on the Nordic markets to be a key player on the total European market. So that will be a play together with roda doing that. We also have presence in North America. We have 10% of the net sales coming from North America. But I also want to underscore actually what's the headline saying here. We have the geographic footprint that is needed. I mean the total defense spending in the areas where we already have a strong footprint, I mean, we will see the steepest defense spending in terms of percentage of GDP. We will see that the closer you have the border to Russia. So that -- meaning that we have the really good relationships and the footprints that we need. So we just need to dig where we stand a little bit and doing even more in the markets and with the customers that we already have. I also want to take the opportunity to zoom out a little bit and talk how we see the market and how we see the trends on the markets. You're all, of course, following this by -- on the newspapers and the media, on TV and things like that. So -- but this is how we see it at least. And this is also trying to explain what we see as MilDef's long-term drivers of growth in Europe. And first of all, I mean, number one is this rearming of Europe. You all have said the new NATO target spending. You know what the decision was taking in Hague in that summit just before summer here. And so that will be a super good driver for long-term growth. And we also -- some people are talking about this defense tech cyber cycle that we now are entering into where we see more of this data-driven defense system that will be the future and that will drive a need for what we at MilDef are doing. On top of that, we also have the European autonomy. We are seeing this weak transatlantic. We know that the U.S. maybe not backing up Europe anymore. We now have -- the political have woken up in Europe and realized that we need to stand on our own legs. So the buzzword here is Buy European. And that is -- will be a game changer for the European defense industry, which MilDef is a part of, of course. And also the final on top of that, if we're looking at the main drivers for MilDef is the technology side. There will be a rise demand for digitalization, unmanned and AI that will drive a need for what we are delivering, the right IT solution, the IT backbone. So that will also be a big driver of growth going forward for MilDef. Number 4 here is around joint procurement. That is something we see on the market now. And I think that could be a benefit for MilDef. We see, especially in the Nordic context where the countries now are coming together and trying to do coordinated requirements. Of course, they are aiming to ramping up and shorten the lead times and getting higher volumes out there. And I think if you have been a key player and a trusted supplier in this market for many years, you are in a really good position right now. And if we also look at what they're trying to do in near term, they are buying what's already field proven, what's already have been working. MilDef has had products in Afghanistan, Mali, all over the world, and the end customer know that they will not fail. They will work. So that's exactly what the end customer wants to have right now. And finally, number five, too long and tricky words, interchangeability and interoperability. So if we take the first one, it's about finding ad hoc standardization solution where you can increase your resilience, so you don't need to have the 110% perfect system solutions maybe. You can have something that is 90% or something that you can replace with something else that's coming from something else. So it's really important for them to make sure that in terms of building the capacity, don't get vulnerable by don't having other parts that you can take in and get the same capability. And also the interoperability that we see now where the increased number of joint operations together in the NATO context. We also have the new members in NATO, Sweden and Finland, for example, really increasing the need how they can come together and quickly start setting up their command and control and communication and things like that. And that is something that we will talk more later on when we talk about the software and the ones. But of course, there are some key uncertainties, timing and size of the European ramp-up. Of course, we know that political decisions takes time to materialize. We have seen this long cycle of over -- everything will take a long time. So that is something that we will see going forward as well. And I don't have a better crystal ball than someone else. And maybe if we look further out in time, we don't really know how this will play out. But the political decision is taken and now let's see how it will play out. But the timing of things are quite tricky sometimes. And we have tried to explain the timing of things. And for those of you who have been following MilDef for a while, know that what we see, this is going back to February 2022, Russian invasion of Ukraine, then the end user and the end customer was focusing a lot on the operational effect. If you were an ammunition provider in Europe, you felt this day 1. And after a while, they started to, of course, filling up the backlog at the different platform providers. We were talking about Saab and BAE and those primes. We're really getting some big orders in there for delivering of the big platforms. And when MilDef comes into play, means that we are quite late cycle in this defense ramp-up. So we come into the picture when these kind of platforms need some kind of intelligence, when they need some tactical IT, they need their command and control system, then it's time to place the order at MilDef. And the $1 million question, I normally get is, okay, where are we right now in this kind of phases as we see it. I would say somewhere here, maybe 2.5. I mean we have seen some of the new money rippling down to MilDef. We have seen some of the new projects and programs and things like that, that is starting to impact the MilDef and increasing our order intake and our order backlog. I think end of summer last year, we really felt that there was a change in the dynamic on the market where we're starting to see some of the money coming in from the new business. But there is still a lot of ordered platforms that has not been ordered the tactical IT on, so we're still waiting for a lot on that. And that's why I'm saying 2.5 maybe. But there will be a lot going forward in the end as well. We have priorities going forward. We have identified, of course, what we should aim and focus on, on our priorities going forward to be able to be -- not just be relevant here today, but also be relevant in the future in this industry. So we have boiled this down into 4 different areas. We have the scaling up. I think the whole defense industry are talking about this now, how to scale up in the best way. For MilDef, we are talking about climbing in the value chain. We're also talking about focus expansion, really making sure that we have a laser-sharp focus on what we should do right now and not get too mixed up with other things. So keep the focus we have. And then we have the resilience as well. But we will go through each of this in a little bit deep dive into the ones. And if we start with the scaling up part, of course, this is what everyone is talking about in the defense industry. And for MilDef, it's, of course, empowering the workforce. We need to retain, we need to attract. We need to onboard. We need to train people. We need to increase our capacity and capabilities within the staff we have. We, of course, need to ramp up the facility capacity. We will just in a short second here, show you a video and take you out to the reality into the state-of-the-art building that Olof mentioned before, location is Rosersberg,'s just outside Stockholm here. But we're also increasing our facility capacity down in Helsingborg. We're doing it in Wales in U.K., in Cardiff, where we have -- we have a new office in Oslo, for example, in Norway. So we are doing whatever we can to make sure that we will be relevant now and also in the future. And that is what we're going to do. But how we're going to do it is the last 3 bullets, I would say. We need to find a smart and cost-efficient way to do this ramp up. We need to have a process excellence mindset, and we also need to use data-driven capabilities to be even more efficient. We need to see that we have the right system, IT system, how can we use AI, for example, to be more and more effective. But with that said, I think it's time to take you out into the reality and make sure that we -- you can see our state-of-the-art new building, 6,500 square meters outside Stockholm here in Rosersberg. So I'm saying a video, please. [Presentation]

Okay. There, we have one of our important puzzle pieces in the capacity ramp-up that we are doing at MilDef today. But we also have climbing up in the value chain. We have talked about this in sometimes becoming prime contractors around the IT solution tactical IT solution area, delivering more turnkey solutions. It's about transforming MilDef from being a pure box supplier into something else, a system house in this kind of area where we can operate and sell more of just the hardware stand-alone or the software stand-alone, we can combine these 2 things or 3 things installation solution. We can be a system house of tactical IT solution, and that is what we are aiming for. And why are we doing that? One is, of course, to increase the barriers to entry. If we're doing that, we are taking a strong position on the market, and we will be strongly and trusted partner. And we do that by adding capacity and capabilities and know-how and competence in the future, how we should do this journey. And it's also about improving the margins, of course, more larger contracts, more complex contracts will also give you a better margin in the end. And the way to do this, I think, is to deliver on the customer commitments. So we have this -- we have the customer with us in this journey transforming and moving up in the value chain. That's really important for us. If we do the things right that we have committed to, they will continue to use MilDef in a wider area as well. Next one is around the focus expansion, and this is that we have said now we have to keep a laser sharp focus on really digging where we stand. We have a really strong customer list. We have 10 to 20 big accounts that really could be the one that's driving MilDef's growth forward and doing the big impact, so to say. So we need to be able to prioritize the key customers in this attractive geographic area. That's the most important thing for us now. So we can focus on them and we can focus and give them the best support, giving them the best solutions. So we really have this customer-focused solution. And by doing that, we will become this trusted long-term strategic supplier on the selected MODs and primes. So that will be very important for us. And the final one is resilience, of course, maybe someone is thinking what resilience has to do with growing the company. But in our industry, that is really, really important. To be able to be trustworthy enough to get big contracts, higher volumes, we need to have a resilient MilDef. And that's about multi-location manufacturing capacity. Just a couple of years ago, we had one single manufacturing capacity in Helsingborg. Today, we have more than that. We have the U.K., we have down in Germany, for example. So we have really created a multi-location manufacturing capacity. Also, as I said, redundancy in the organization, bringing on new people, more competence, more know-how in the industry into MilDef. And then we have our own supply chain, of course, resilience on that, how we work with that, making sure that we can have the components in right time making sure that we have dual and triple sources of most of the components. And then we have added cybersecurity as well. Of course, we're working already today really hard with the cybersecurity and trying to protect everything we can. But this is, of course, a race. So we need to continue to invest in the cybersecurity, create a resilient company, a more trustworthy company that would take on more business in the future. But as you can see here something that we always have with us even if we prioritize these 4 areas, sustainable business. And it's not just about the climate impact and things like that. In our industry, it's much around having anticorruption, anti-bribery, know our customer. We know the end user. We know the end user of the products. So we are really becoming a responsible supplier of tactical IT. So that's really important for us to make sure that we have this ethical compass really tight calibrated and we know what kind of end users and end customers we have. It's really important for us. And the final one, M&A. We have talked about M&A since the IPO in 2021, and we have added a couple of M&As and now latest one was a quite large acquisition in Germany. And we will continue to have the M&A radar on. We will continue to look what would be a strategic fit into MilDef, what kind of targets do we see that could be suitable for MilDef to acquire. But it's important for us to not being out there just to make acquisitions for making acquisitions. We really want to become something good. We need to find something there, 1 plus 1 is more than 2. But we will continue at least to have an M&A radar on. Now I will do a quite quick overflow of the numbers that matters. And some of you have probably already seen this after our release of the Q2 report, but at least to give you some numbers into the rest of the day here, so to say. We were talking about the fast-growing tech company. And of course, we can take it even back to 2015, then you have seen a CAGR of 26% in growing rate. And if you take it from 2021, we can see that we have accelerated that growth and now making a CAGR of 36%. So that is where we're coming from. And as we said, we are a fast-growing tech company. And we have some proof in the pudding as well for 2025. There is some evidence in the order backlog, SEK 1.5 billion for deliveries in the second half of 2025. And if you compare that to what we did full year in 2024, it was SEK 1.2 billion. So we will do more in the second half than we did in the full year in 2024. Of course, we have an impact from the acquisition of roda, but still that's SEK 400 million. So it's SEK 1.1 billion organic-wise. So that will be a challenge, and that is why we're feeling the growing pain sometimes, and we are steadily increasing the capacities all the time. If we look at next year, for example, we saw when we closed the Q2 that we are in a good position. We have an order backlog even if it's not the biggest one for '26, it's still 125% more than we had at the same time in 2024. So there is a strong evidence in the backlog that we will continue to be able to grow the company. A very important KPI for us is the gross margin development, of course. Every percentage here -- percentage unit will give a big impact on the bottom row and the margins there. We have been on a good journey, I would say. We have been on the trend towards above 50%, and that's due to the customer mix and the product mix. As we said, we are moving up in the value chain. We are adding solution. We are adding software and things like that. We're also the customer mix where we are selling more directly to the government side. You can take one layer away instead of selling direct as more of a sub-supplier further down in the value chain, so to say. So even if this is volatile quarter-by-quarter, I see that the trend is really positive. The effect that you're seeing in the second quarter there is related to the acquisition of roda, so it's expected to come down a little bit. roda is operating with a little bit lower gross margin, but they have a higher EBITDA margin than us. It's a little bit different character in their financial profile, so to say. When we look at the EBITDA development, we saw a really good trend going forward there. Now we have a little bit drop in the Q2 there. But if we look at the order backlog and if we're making sure that we're delivering what's in the order backlog for second half, I'm quite sure that we will see that the trend will continue to raise and move up towards again, so to say. Just a deep dive also into the working capital. You can see that it has really gone up, but that's, of course, due to the acquisition of roda here in the Q1, where we have the full inventory and net working capital from the acquisition at once, but we'll have their net sales over the upcoming 12 months here, so it will -- in terms of percentage coming down. End of Q2, we said 38%, but I'm quite sure that we will come down in a range of 25% to 30%, something like that before year-end. And I think that MilDef should operate at somewhere around 25% in net working capital. That would be a suitable level for a company like MilDef. If we look at the net debt to EBITDA, we also can see that we have the acquisition-related effect here, of course, we are moving up to 2.9. We have a long-term target to say that we should just temporarily be above 2.5, and this will come down when we now look at -- when we're closing 2025, I'm quite sure that we will come down somewhere in a range of 1.5, 1.7 maybe because when we're adding more and more from the roda acquisition, this will also come down. Also a quick overlook of the financial targets. We have quite ambitious targets, I would say, to grow this company with at least 25% per year. And we have been able to doing that as we saw in the earlier picture here. We have a CAGR since 2021 of 36%. We have now the last 12 months, we are exactly on the target, 25%. We have the profitability target of at least EBITDA 15%. Last 12 months, we have 10.3%. So we have something more to do there. And I think when we're looking into the order backlog, as I said, if we're making those deliveries, I'm quite sure that we can come -- maybe above, but at least very close to the long-term target here for 2025. We talked about the capital structure, and we also have the dividend policy, 20% to 40% of net profit. In 2024, we did 20 -- roughly 20% dividends payout. And now I have come to my final slide, just to wrap this first part of this up before I leave over to the next presenter here. I have the headline well positioned for further growth. And I think we will show here today that we have some evidence and proof in the pudding. We see a market situation, high demand landscape going forward. We know that MilDef has the right position. And we also have a proven track record of growing, and I think that's important as well. We know how to grow a business. We have the growth mindset on. We are ambitious forward-leading organization, and we want to become bigger and stronger, and that's really important as well. We have been doing this for a couple of years now. So we know how we can find smart ways around to continue to grow. But also you can take with you, of course, what really will drive the market going forward. We have the increased NATO spending, 5% target. That will be a lot of new money into the defense sector. We have the Buy European as well that will be a game changer for European defense industry really having an impact. And we also have what they should spend the money on. And I think the digitalization is top of the agenda for the end users. So we will have a total bigger cake of defense spending and the piece that addressing the digitalization and addressing what we are doing at MilDef will also increase. And in near term, of course, we have growth supported by a strong order backlog. So there we will see in the second half of 2025, we make everything we can to delivering that. And finally, also and also a cliffhanger for the next presenter here is that we have a well-established and field-proven offering and we are doing a combination that MilDef is a really trustworthy supplier on the market. And I think I have 5 seconds left. I don't really know to talk about, but quite good timing, right?

You're doing fine, Daniel.

Now it's 0.

Well done. You nailed it, don't you think? On the money. Well done.

Thank you.

So thank you, Daniel. Daniel will get back shortly, and the Q&A will be the Q&A because time is running short and we have a full flight. So the next presenter will take us behind We Armor IT, the message. We have done a flyover now with Daniel, a zoomed-out flyover. We will now zoom in. Actually, we have 30 minutes for this slot. This is the longest slot, feel no pressure, but then you packed a good suitcase. So we will go not only into the product assortment, but beyond the products and really talk about what the customers really buy from us. Fredrik Persson, CTO and Deputy CEO, MilDef Group.

Welcome back to whoever was here last year as well. I'm still Fredrik Persson, CTO here at MilDef. Yes, I just start to say how much can really happen in 1 year because standing here now 12 months after the first Capital Market Days, I was a bit worried about how much news could there be today. But as you know, the defense industry is moving faster than ever, driven by the geopolitical situation, of course, and the digitalization of battlefield. And I think MilDef is moving even faster than that. So that's very interesting. A few things to just bring up here in that what happened last year that I would like to highlight is, of course, the acquisition of roda and we will also get Westek, as a company in, except just 150 great colleagues we got with that acquisition, we also get products that we add to our portfolio and capabilities and capacity that we now have locally in U.K. and in Germany, which I think is a real, real advantage for the future. We have also communicated focus on defense. That meant that we integrate selected products from Handheld and capabilities from Handheld into MilDef. So we now have it integrated under a brand MilDef, and that will make our offering even better. Then we have some great success with OneCIS, our software. We won some great contracts, delivered and we have a new customer in a new country, and we have done a fantastic delivery and added a fantastic new historical capability to Swedish Marine. I will not say more about that, but Fabian will -- the star here will come later on and tell you about that one. And then if we're moving to the system integration solution deliveries we do, we have some great contracts during the year as well. We have both business-to-business and business-to- government business. We have one contract with, for example, FMV and Kongsberg. And for me standing here, we usually say that we're moving up in value chain. We want to do more. We want to be a system house. That's really proof of we're actually doing it. It's a quality stamp for me to see that we get the trust to do that kind of business. So really, really impressive to how quick we can do this. That was yesterday, we need to deliver as well. And together with the new facility in Rosersberg, we are actually positioned as a system integrator within the tactical IT. So I see we're moving closer to be the prime here in the Nordic countries at least. So the MilDef journey, yes, it continues, and it's going quicker than ever, that growth is something normal for us. Those minutes left here, I want to talk about what we offer. I will repeat some of the things I said last year as well, what we offer our portfolio, our hardware, software and solutions. But we also try to get behind the product why customers choose us and why they continue to come back. That's not only about technology and products. So it's not just about delivering technology it's about business to ensure mission success from the day 1 to the last day of service. So -- and we'll not only talk about what we deliver, it's also about how we deliver it. I mentioned focus on defense, and for MilDef that means that we target and deliver to army, navy and air. That's the essence MilDef, that's where we are from. We deliver hardware, software and turnkey solutions to all 3 of those domains. We drive the digitalization. We want to enable the data-driven defense and we should act faster than the enemy, but of course, defense is big on that. We keep an eye on other domains. We have cyber, we have space and we have the total defense. There are opportunities in the future there as well, but not that big today. Then to my trickiest slide of the day, try to explain what tactical IT is. Daniel mentioned it. He mentioned tactical IT, tactical IT provider also the backbone. So what are we actually doing? Try to do that in one slide, what are MilDef doing? If you look in the visualization here, some sharp eyes, maybe can see that that's the CV90. It could be any military platform at all. It could be land, it can be air and it can be in the sea because they are built on the same principle. We are saying system of systems. So what do we mean with system of systems. Yes, if you see the gray boxes there. System of systems are built on many subsystems. It could be better management system, navigation system, radio systems, intercom systems and many, many more. This is just example of it. They are easy to say what they have individual, which affect what functionality they have, but they need to work together to get the full defense capability on the platform, and someone need to make sure they work together, then MilDef coming into the picture. We try to have our products in the middle there, both an IT infrastructure, and IT infrastructure normally then secure communication, take care of data processing, seamless integration, interoperability and so on. That makes sure that every subsystem works together, the right information and get where assured, you can get it out. And the hardware is doing it in a physical way, connecting it, mature electrical connection and so, but then we need our software on top of that as well. Otherwise, we will not get an application, we don't get out information. And then on top of that, we're also delivering the workstation, the operational environment where we can consume the data, you can monitor, control the system and you can command a controlled operation. So in total, MilDef deliver backbone to make sure everything works together seamlessly over time, but itself, it's not a subsystem because it really add very, very little value itself. So therefore, we deliver backbone, not the subsystem, but the backbone is important. And if you compare with your houses. I think most of you have a WiFi router at home. And you have a lot of connected devices. You have an alarm, you have a smart TV, you have some internet of things connected. What happens if the WiFi router goes down? Nothing works. You have some children's screaming or whatever. It's not good. But we just think about the consequences if that happens in the battlefield. The IT infrastructure is the MilDef products, if they go down, you don't see anything, you don't have any surveillance, you don't know anything, you can't use anything. So we deliver those products where stakes are the highest and the requirements are the toughest. Just think about the consequences if we don't deliver and it doesn't work over time. So that's the context what MilDef tried to deliver because the information on the battlefield today is almost equally important as the firepower because you need to be up and running there. So this is all about delivering the full system, make it work and the end user using that system need to have trust. We need to deliver reliable solutions. So in the end, it's about delivering the right information at the right time to ensure the right decision and do it every time. I hope you understand a little bit what we're doing by this. Then we deep dive into the portfolio. I will keep it on a high level here today because we have hundreds of products. I can stand here the whole day if we should go through that, but we try to keep it on a high level. This is how we usually present it on top level. We have hardware, we have software and we have solutions, and you also see the split. So hardware is where we come from. That's our DNA. That's what we have done for more than 25 years, delivering hardware in different -- into the context that I just described. And it's proven hardware. Then we have the software, and that's basically OneCIS and the software that OneCIS bring into the systems. Small part, growing quick, big interest. I will say a little bit about the rock star in our portfolio. There are a lot of buzz around it. Everybody wants to know more. I will not talk about it because Fabian is here, and he will do it much, much better. And then we have our solutions. That's basically our services to our customer, where we combine our proven hardware, our proven software into a defense capability. That's where we actually create the effect at the customer. And with the proven hardware and the proven software, we get the trust from a customer to actually doing the system integration and doing the services, who can be better than we to actually integrate our own products. If we go a little bit deeper down in the portfolio, then hardware, what is hardware? Yes, it's a really wide range of products we have. We have mobile computers, displays, computing and servers, networking, power and peripherals, a lot of different products. If we stay with mobile computers, that's where we started from. It's today much wider than it was just a few years ago. We have in the mobile computers now introduced products from the Handheld portfolio. So here, we have everything from Android devices to digitalize the soldier, drone controllers. And with the acquisition of roda, we also have a partnership with Panasonic. So we also now have a little bit more of cut products, shorter lead times to fulfill the need in that area for our customers. And then we have -- the big part of this is still the products delivered by -- coming from our partner in Taiwan Crete, who has the ultra-rugged laptops, tablets, notebooks, is very customizable and durable and that's out to our customer that we're still going to do business. And mobile computer here in the tactical IT environment is the -- that's the operator environment where we actually consume the data. Displays, the same thing, HMIs, that's displays, panel PCs was not a very big part of our portfolio, our sales for just a few years ago. It's going rapidly quick. There's a big increasing demand of displays. Every platform has many displays today. And we have positioned us there very well. We have -- last year, we did an asset acquisition from a small company called AVT to get in the right technology to be able to build up displays from bottom-up in-house, everything from FPGA programming and the whole way up. And with the acquisition with roda, we now have a really, really wide range of display in our portfolio. I think it's one of the most complete portfolios in the defense industry here with rugged displays. So now we can offer displays from 6, 7, 8-inch small displays up to 65-inch video walls for visualization in command tents. So really impressive and interesting to see where it takes us. Then the rest, I mean, that's part of the IT infrastructure. There's everything needed, computer servers, networks, switches, routers. What to say about them is -- even if we sell a product or we develop one product, we always design it to fit into a bigger purpose into system. You can do that by modularization. You can do that by have unified connectors, pin-outs, colors, just to make it look great as well, important. Yes, you have the right experience of them. So you can combine them. This is an example of our form factor 19-inch 2, combine them, put them into a rack in some cases in transit case, could be in a vehicle, could be wherever. But this makes a modular buildup, so we can actually combine the products after what's needed in each system. And the modularity also allow us to easy interchange the products over a year when we need to update the platforms. What are the unique selling points for our hardware then? I would say it's the form factor over time. We don't just talk about long life cycles. We talk about life cycles for a platform. We need to replace our product 2, 3, 4x over a generation of a platform or vehicle. Our modular design, I talked about modularity to build our systems, but our products are also on the inside modular buildup, and that's really important. In that way, we can easily customize our product. We can do them as the customer wants. And then all of our products are designed for defense. They are long life cycles, they fulfill military standards, NATO standards, all the standards out there to easy, really be prepared to be used in that content in that places. That was about our hardware. An extension of our portfolio there is the Westek products. We don't have one harmonized road map or portfolio yet. But just to give you an introduction, James Pickles, who is the Managing Director of Westek, is not here today, so I try to present what Westek is. Westek is a company, actually the oldest in the group, I would say. It's from 1986. So it's been here around. It's trusted in the business. So it's not a newcomer. It's based in U.K. It has all the in-house capabilities needed, design, production, they can do that full. They can take responsibility for products over time as well. They do type of products very equal, very similar to what we do. But the form factor is something else. They are more of an industrial standard in form factor, 19-inch racks, 19-inch products, so easy to install in integration. But they're not as ultra-rugged as our products are. So a little bit different applications there. So they're not competing, no overlap. It's just complementing what we already have. And I see a big, big, big possibility with this because there's a big demand, increasing demand on high-power units. I'm talking a lot of AI. I mean, applications that need power. Here we have the Westek portfolio now that will really be integrated into MilDef, and I think that will be a great success in the MilDef here. I mean they deliver to land, air and sea as well. And their current growth shows that there are an interest. There are possibilities. And I think getting into the MilDef on the sales using the MilDef vehicle to sell them as well. So I see a bright future there. And just the foundation here, you can see what possible customer or current customer they have, very similar to what we have as well. So they are trusted in the business. So it will be a fun journey to get them into MilDef and see what we can do with them as well. I will not talk about software. We have Fabian here, so go into solutions instead. How do we see on solutions? Solution is when we're turning technology into defense capability. There where we have our services is project management, system engineering design and integration services. Here, we work side by side by our customers. We understand their needs, and we transform that to a solution to get the effect on the field. Of course, we integrate as much of the MilDef hardware and software we can, but we are also honest and select fit for purpose, and it can be third-party products as well, both on the hardware and software side. Otherwise, we don't can deliver the full effect. MilDef is still a small player, and there's a lot of things that we need to add that MilDef can't do. So we do the customers need, deliver the full effect, and we take responsibility of full life cycle management there, and we can maintain it over time. So here, this is about taking responsibility. We need to offload the customer. We take full responsibility for system design. We can also enhance the defense capability by doing this and offload them with capacity. We come up in the value chain, more strategic partnership. We can be more proactive by doing this even when we develop the software or the hardware and have the products ready when they need it because we have the information, we have the strategic partnership. It will be reduced complexity for a customer. They have one guy to go to, one person or one company taking responsibility that handle all the sub-suppliers. And they can get tailored solutions, and we try as much as we can to use our standardized products, which mean we can reduce the lead time to deliver full system. So in the end, of course, there is -- it should be a win-win situation for us and the customer. We can create this for customer at the same time, enable more sales of our hardware and software. But then to the question I started with, what's behind the product? It's not only about what we deliver, the products, hardware, software and services. It's also about how we deliver it. So what customers are really buying. I would say it's very important to have the right technology and deliver it. It's equally important to have the right capabilities. The customer need to feel certainty and trust that we deliver in time and we deliver something that work over time. Otherwise, it doesn't matter what we have -- what products we have and what technology we have. So the combination here, capabilities and portfolio is extremely important. I can say it's 50-50 here, how to successfully get into the market. And how do we do that then? But we have the full MilDef design house, and this is valid for hardware, software and the solutions. We have the capability here to actually customize to fulfill the customer requirements. We can do that based on our standard products, the portfolio I showed, that's the basic for it, that every single platform out there have their specific requirements that we need to take care of or specific setup, specific configuration. So each delivery almost needed to be taken care of the MilDef of designers. And there we turn the standard products into a customer-specific product, a bespoke product that actually feel that's exactly what we need, and that's the value we add here. And it's our modular design on the inside of the product or in the software that make us able to do this in a competitive way. So in this approach, with our full responsibility and owning the process from concept to design, verification, manufacturing delivery and support and aftermarket, we have the -- we create the trust that we actually can do it, and we can ensure the fulfillment of the customer requirements. So this is really, really the unique selling point that we do that in-house. We have the experience, we have the competence to do this. And we can take -- and I can feel confident that we can take the responsibility to do this over time that the products fulfill the customer needs and will work over time. But then it's about doing this effectively as well. It's easy to just put in a lot of people and do more and more and more, but that's not scalable. So how do we do this in an effective way? Yes, I have mentioned it, is our modular built up. I mean, we have built up -- we call it IP bank modules over time. We have been in business for more than 25 years. We have a really big technology IP bank, we can combine to create a lot of new products. And that's a prerequisite to actually have an effective design house because we don't have to be innovative and develop complex products from the ground all the time. And I would say it's the foundation of the delivery for each delivery. So of course, we have the modular technology where we have proven building blocks, and I think that's really important. Proven building blocks means that they're already out at customer. It's building trust at new customers. And they're already proven and designed for all domains. So there's a big customer base to actually target. And then economy of scale. We don't have to sell the same product every time to get the economy of scale. As long as we are really good on reusing the building blocks, the proven building blocks, we can get the economy of scale. And that means many customers, many computers that we use the same building blocks, we get the economies of scale. We can get higher margin. We can be more competitive in the market. And I mean, it also -- we can share all the overhead on more customers, more deliveries, and we get really competitiveness here. And then reduced time to field. In the times we live now, everything is about delivery on time, delivering as quick as possible. By doing this, we maybe don't have to do a real prototype round. We can do presales direct because it's so proven. It's already tested. We only have to change some small things and we can get out of market. So here, we can go from ID from customer demand to deliver out in the field much, much quicker than if we didn't have this big bank of modules. And we can do it without compromising the quality and compliance because it's proven and already used modules. And then I think also it's much easier to get return on investment in our R&D because we can focus the R&D in smaller part on technology, not new products every time. So in that sense, we work very close to our customers. We get ideas of what they need next year. We can do it in the smaller modules, which we can implement in many products. So here is the thing. We say that our customers pay for most of our development, and we can just invest in the small modules in the really edge technology that we don't have in the module bank. So I would say this is really our competitive edge towards customers because if we look on our big competitors, it's usually the big primes in Europe. They have the same capability as us. But usually, they are limited in how many customers you can have. The big primes will not sell to another big prime because they are a competitor on platform level. We can have all the big primes as customers. In that sense, we can get up in numbers, in volumes. And in the end, we can do those products much cheaper than the big primes can. And in the end, I don't understand why they shouldn't select MilDef. So in the end, coming back to what I said, what customers really buying, why are they coming back to us? I would say, most important there, we deliver on promise and that we can do by our competence, our experience and our proven designs. We have to understand -- not only on technology, we also understand the mission where products are used. We can help the customer to select the right technology and doing that thing. I mean, deliver on promise is about integrity and integrity is actually one of our core values in our culture as well. We do what we say and we say what we do. That's important for MilDef, and that's why we are here today, I would say. That's the culture. Then the mission-ready capability, I already mentioned it, it's proven. Our customers trust it. It's ready to go out there. And then maybe the most important in the whole MilDef, the people, people who deliver. Committed people that always do walk the extra mile. They are unafraid to challenge all the usual out there, how the big companies do. We say we are still a small company, still want to be agile, still do a little bit extra that you maybe not always get from the bigger companies. And then we are flexible technology. With that, I mean, we always find a solution. We are still a tech company. We have a lot of people with great competence and great ideas. We always find the solution for a customer. And together with other things, that's fantastic. So here and then, I think this is why the customer come to MilDef and why they come back in the combination with our portfolio and how we can deliver it. And this is something I'm really proud of. So that's fantastic. Then in the end, I also try to change our view of it. We're talking about competitors. So what's the strategic advantage for MilDef here? Why can it be hard to get into the business? I mean, MilDef has decades of trust. We have delivered to those customers in many, many years. The trust that we will deliver on promise that we will do these things, not just what we say. We're close to our customers, both all the time to understand the needs, what they need in the future, develop the portfolio, but we now also build up local delivery capacity. So we have sales locally to understand the need. We have engineers close to the customers, but now also a capability to develop and produce manufacture. We have a redundant supply chain. So our supply chain is not one single. We have 3, 4 different supply chains to be able to not stand falling only one. And then I think -- I need to think that, but our combination of hardware and software solutions are unique. The combination there is that we actually can take responsibility for the backbone of the tactical IT. We feel really comfortable with doing that. And then we have the agile innovation. We are still the small company. We're still doing what customers need, but we're really good to do that in a way so we can reuse that experience and that development in many customers and share our experience and help them to get up in capability. So with that said, I would say, if this business would be easy, then it's nothing for MilDef. Complexity is actually our edge. It's not our challenge. That keeps us in the position we are because this is not easy. So I said that, I mean, last year, I said, MilDef was founded on 3 principles. So going back to that, I'm quite proud to say that we're doing the growth we do. We still have the same focus. So it's military focus, it's digitalization, tough requirements and the ability to deliver when it truly matters. So I'm really proud to say that we grow and stay true to our core, and that's fantastic. I'm proud of what we have done and what we will do in the future. Thank you very much.

Thank you so much, Fredrik Persson, CTO and Deputy CEO. No doubt, a lot has happened in 12 months where you started since the last time we were in this room. We're 20 minutes short of a coffee break. So we know that we'll get some energy up in 20 minutes. But before that, you have followed us, some of you may be from 1997. More likely you have followed us since the IPO in 2021. And then you know perhaps that we have made 8 acquisitions over these years. MilDef has purchased 8 companies. And today, we meet 2 of those. And in 2021, we purchased a fine consultancy firm, Sysint in Norway, Oslo. And Sysint carried a true gem of a deployment software, namely OneCIS deployment software into the MilDef Group. And here to explain the somewhat intricate story behind the unique selling points of the OneCIS story is the actual technician, the brain behind this much today sought-after software that is today not only used in Norway, but in other countries. So before I give it all away, Fabian, I want us to give a warm applaud to Fabian Forster, the inventor.

Thank you very much, Olof, for that great introduction. I'm Fabian Forster. I'm the Business Manager for our OneCIS product, and I've been tasked with trying to explain our software in a nontechnical matter. I'll do that in about 20 minutes. To start off, we'll give a short film to introduce the product. So please run the film, Eric. [Presentation]

Okay. So some of the challenges that we are trying to solve with our OneCIS product is that we see an increased digitalization of the battlefield. Software and complex systems are being introduced in the battlefield. This increases the IT complexity at the tactical level. And it's difficult to have subject matter experts in the first line of defense. Another thing is interoperability with allied forces. And what does interoperability mean? The word has been used many times in this presentation. It's not -- in simple terms, interoperability is the ability to work together to create a common situational awareness in the battlefield. And to do that for the computer systems, we need to configure them according to NATO standards, and we need to follow NATO procedures. So there is no magic here. There's a lot of good standards out there that NATO has published, and we need to make sure that those computer systems are configured accordingly. Another aspect is the adaptation of new technology. Things are evolving faster and faster. And it's a hard time for the defense to adopt all this technology. And we think we have some good solutions for that. And the conflict today shows us that operational resilience is more important than ever. We need to create computer systems that can withstand over time because conflicts can last for a long time as we can see around us. So our software, what is it? Well, it is a software for automated deployment of IT systems. It is specifically tailored for deploying in the tactical domain at the tactical edge. So we have created a software, a software framework that can automate that deployment and create an IT platform that can host those applications and services that the soldiers and war fighters need in the tactical field. In comparison to our competitors, our product is hardware and software agnostic, which means that we can integrate not only on MilDef ruggedized computers, but we can also integrate on more civilian computers. For instance, if you're in a command post, you can use civilian computers. If you're in a main battle tank, you will use fully ruggedized computers. We give our customers this flexibility. We are also not tied to any specific battlefield management application or command and control applications. We are agnostic, so we can onboard the preferred applications that our customers would like to use for their use case. As part of the configuration, we automatically configure the system based on the classification level that they are going to use. So we'll add that security hardening to make sure that it can operate for classified military IT systems. This open and flexible design makes it easy to reuse this IT platform or IT foundation across multiple IT systems. So our customers can use our software not only in one system, but in multiple systems. The advantage of that is that you can train your personnel, and it doesn't matter if they're working in air, sea or land, it will be the same IT foundation being reused, as Fredrik was talking about, this modular design. So once this is a module that our customers can reuse in multiple systems. So if you're in a CV90 or an MBT, it's the same IT platform. Maybe the hardware and applications are different, but the IT platform is the same. And the gem in the solution is that we configure our services, the ones that we provide with our offering, the core services as NATO interoperable. That means that when they connect into a NATO mission network, they're able to communicate and federate with their allied partners to create that shared situational awareness. The key selling points for our products to try not be technical, is rapid and robust deployment. You don't need those subject matter experts. You can be a generalist and you can use our tool to deploy the software and configure the system. We reduce the complexity through standardization and the automation that we provide. And through this mobility that we can help our customers create, we can help them increase operational resilience. And this is my personal opinion. With the flexible and open architecture, there is easier ways for our customers to integrate and adopt new technology, and there's less of a vendor lock-in because if you want to select another battlefield management application or another command control application, it's easy to change those products. We're not locked into any vendor on that side. And it provides a NATO fast-track interoperability for the core services, and I'll come back to that in one of our customer reference cases. Once it started back in 2019 when we were contracted by the Norwegian Armed Forces to create, develop and maintain their tactical IT platform for their deployed mission networks and their tactical information systems. So that's when the journey started. We had our first deployment in 2021. So it is a fairly young product, but it's evolved really fast. And today, it is the foundation for their battle space management and command and control systems across all domains. We are especially proud to be here in Sweden and talk about our Swedish delivery. We have a record speed delivery. We were contracted in late December 2024. And within 3 months, we were able to deliver a NATO interoperable command and control system onboard a couple of vessels in the Swedish Navy that joined the standing NATO Maritime Group. So that was a record speed delivery of about 3 months. We're also supporting the armed forces in Sweden with deployable mission networks so that they can deploy those NATO interoperable systems. And we provided a fast track for NATO interoperability. In these projects, we've used our OneCIS software together with hardware and system integration services delivered by MilDef. We also have 2 other countries. We are unfortunately not able to disclose those names today, but maybe later, where we support them with their mobile deployments and mission networks. It's their foundation for their tactical IT systems. And for those -- both those nations, it has been a fast track for NATO interoperability as well as it has been for Sweden. For one of these nations, we also provide a digital twin. We provide a digital twin that can be seen as a copy of what we would see in the tactical level, but it's hosted on the data center so that the officers can do their training and they can do simulation and operational planning from their desktop computer. The environment they see is identical to what they'll see when they're deployed in the battlefield. So this is a very efficient way to do training, simulation and operational planning. Moving forward, I think these are the 3 key elements for us. OneCIS is, as I said, a fairly young product, so we need to evolve it to support a richer ecosystem of software and hardware products. So that's a process that's going on to meet customers' demands and to be able to support even more capabilities. Evolving our products will enhance our ability to support multi-domain operations. As an example, onboarding command and control applications for the air domain would give us a better standing within the air domain, of course. So this is something that we're continuously working on. And once our product is now beginning to mature, I think it's about time that we start expanding our marketing initiatives, targeting NATO countries and also prime system integrators because there are many huge platform deliveries, as you know, where we will not be the prime, but where we, in partnership with the bigger primes can offer a complete C4IS solution to the customers. I will be around for the Q&A and also for the lunch. So if there's any technical questions, we can take those then. I was a bit ahead of schedule, I see. So there is a good time for coffee.

That's perfect. Nobody gets worried about if times are shorter. So thank you for an excellent presentation, Fabian Forster, the inventor behind OneCIS. Thank you for that. And just like Fabian said, he will be during the -- participating in the coffee and the lunch and the Q&A session, which will follow. And by the way, thank you, ladies and gentlemen, following our live broadcast online on YouTube. If you have questions for the Q&A, please address them to [email protected]. You'll find my name on the web page and my e-mail address, I'm the Head of Investor Relations. So please write me questions if you want them relayed during the Q&A. In the room, were you there, raise your hand. So we're at the halfway station of our show today. We have learned lots, and we will learn much more in the second act of this show after the coffee break. And I will now change timing a bit and say that we will be back in 20 minutes, 10:40. 10:40 is the time when we will revert into the room, and we will crash on the webcast. We will then travel into how we sell and to whom we sell, and we will make a very special field trip down south to Lichtenau and Hüllhorst in Germany to visit our recent acquisition, roda computer GmbH. So thanks for watching so far. Have a good coffee break, and I'll see you in sharp 20 minutes, 10:40. [Break]

Ladies and gentlemen, welcome back to the Capital Markets Day hosted by MilDef 2025 edition live broadcasted from Stockholm. We're in this room with many lovely guests today and online with several hundred participants on the webcast, I've learned. So thank you, ladies and gentlemen, on the webcast for tracking along on the exciting MilDef journey, the fast-growing Swedish tech company. We will now venture from what we sell into where we sell it and how we sell it. And you all know that we are brought up in the Swedish Nordic context, started in Helsingborg, traveled out into Sweden, traveled into the Nordics, traveled out to the U.K., U.S., and something very exciting and transformative happened in 2025 in this spring. That was when we purchased and acquired the German company, roda computer, GmbH, truly transformative acquisition that in one stroke makes MilDef almost twice the size in turnover this year. So we'll get back to that story in a few moments. But first, we will talk about sales and marketing, and we will do it together with our Vice President, Nordics, a gentleman who arrived in this very room 1 year ago for his first working day for MilDef. Please welcome our Vice President, Nordics, former Gripen fighter pilot and Saab long-timer, Mr. Magnus Hagman. He gets an applaud, doesn't he? Yes.

Thank you, everyone. And what a year has been with the reference that Olof just made; well, it felt almost like we went supersonic over this year. And I'll try now when we go into my part of the presentation to go subsonic again to keep you all within the aircraft and not leave you on the ground. Yes, I started 1 year ago. And with that, I came in and oversaw the Nordic business. The business that we do, you've seen this slide many times, it's the distribution of what we do. Well, it's true to the core still. Our business is based on the hardware provisions. That's where we come from. That's how we evolve our offering. Solutions, we're growing into that. And the portion of solutions will remain, maybe even grow a little bit, but that's where it sits. On the other hand, MilDef, Daniel just talked about it before, the growth path that we're on, there will be a substantial volume increase when you're making out 25% of a larger volume. And Fabian's sharing of software represented by OneCIS, which is the nugget in our solutions suite, where we actually bring true capability and interoperability to the customers. The organization, sales and marketing, although not on the screen. So I'm overseeing Nordics, but at this presentation, I will also bring you in on the remainder of MilDef, where we are in the other parts of the world and how we address these different regions and markets. We have, as Olof shared, staff in Sweden, Norway, Finland. We have our long-standing presence, our origins here. We're engaging in Finland. We have representation there, and we're engaging in the Baltic countries. This is where our sort of engine is for the sales organization going out into MilDef Group. With the acquisition of roda, we have reinforced our presence significantly in Northern Europe. We now have a second engine with -- from sales within the sales department of roda and growing into the Nordic -- North Europe, Western Europe and Eastern Europe through that foothold. In the United Kingdom, we have staff located in the U.K., covering the U.K. market. And then in North America, we have staff in the United States engaging in the North American markets, predominantly for the U.S.A. But of course, we need to cover Canada as well since it's an important market, part of NATO. But what has happened? I mean, we talked about 1 year. Olof was a little bit wrong. It was my second workday at MilDef, not the first. But anyhow, no, so just what has happened in 2025, a lot. And just some notable things, looking into Nordics, some Nordic flags here, as you see, but we also have a U.K. flag. I mean, in April, we landed a refurbishment IT rugged equipment order north -- well north of SEK 100 million, followed also in April by for an undisclosed customer, provision of IT equipment through Westek, just as Westek had been part of MilDef Group. In May, we relocated and co-located our Oslo and Greater Oslo offices into one in the very center of Oslo, close to the central train station and close to the defense cluster that is in Oslo, on [indiscernible]. We had the Swedish -- former Swedish Supreme Commander, Micael Bydén, giving a speech and talking about how cross-border cooperation and regional cooperation becomes more and more important to ensure that we can -- that our governments can buy European. In June, we landed an order of significant value with Kongsberg Defence & Aerospace. The team has worked with this order for a very long time, worked closely with Kongsberg. So why is this a little extra? Because I will remain on this one just for a few seconds. And that is that it changes MilDef's position in relationship to Kongsberg and Primes. We're now part of the provision of capability of a suite of capabilities to an add defense system that Kongsberg sells on export. And in July, we landed the first OneCIS order for the Swedish Army that came originally, as Fabian talked about, Swedish Navy in the early part of this year, but now we're going into the volume of the Swedish Armed Forces, which is the Swedish Army. And we see a volume ranging between almost SEK 140 million up to north of SEK 200 million, depending on how the Swedish Army will call off options for this contract, but more to follow. So how we build and demand, and how we sell? I think almost everything I'm going to show you now has been said by my colleagues, but repetition is key. So we do it again. Trust, long-standing relationships, personal relationships, willing to listen, willing to be there, willing to do walk the extra mile. That's what's MilDef. That's what we're doing. And that's what actually creates the demand to continue working with MilDef. We prove and have proven over and over again that you can depend on us. We deliver what we promise and we deliver on time. Yes, it's challenging sometimes and demands might change mid-program. We do our best, and we do it in discussion with the customer. We customize to make sure that it fits both our road map and the customers' needs. Our B2B customers mentioned one, we talked about Kongsberg now added into a different modus with us than they've had in the past. But there are several other primes that we are targeting. We -- also with the software, we will start having more in-depth discussion on how we could with our software be part of their total solution when they offer it to the customer. Tenders is not a large portion of our business today, but we still keep track of it. We need to ensure that we are up to date on what's going on. That's not only to address business, but also to gain intel, especially in markets where we are not as present as in Sweden and in the Nordic countries. And finally, of course, marketing. There are multitudes of things that we do. We're beefing up our marketing team. We will add resources, but more important, knowledge and tasks on that marketing team, especially on the demand generation side. Our market position, not dissimilar to the previous picture I showed on presence, but we do a little bit different and we address the market a little bit different depending on which region we look at. And if I start with the Nordics and Baltics, here, we address the market with a full portfolio going straight to the end customer. We base our discussions on the long-standing relationship that we have with end users and the authorities that acquire these systems. We take on a large responsibility in the deliveries, and we are asked to grow that responsibility. Finland and the Baltic countries, we have presence, we have business track record, but it's not on the same level currently as it is in the other Baltic -- in the other Nordic countries. Our share of wallet, if we look at the part where we -- that we could address, it's smaller in these countries, and that will be addressed going forward. For the DACH region, spelt out Germany, Austria and Switzerland, we now have a solid foothold with roda being part of MilDef Group. MilDef has been doing business for quite some time in Northern Europe, Eastern Europe and Western Europe, sometimes through partners, sometimes on our own, but lots often in partnership with roda. The relationship with roda and MilDef goes way back, so it's evident that we have been -- it was a quite easy onboarding, I would assume. But more importantly, the relationship when it comes to sales is already there. Rest of Continental Europe, we continue to view that part of Europe as hardware business mainly, majorly done through our partners that we have out in Europe. In the United Kingdom, our operations, including sales, is predominantly centered around the provisions of our products to U.K. armed vehicles and platforms, tracked and wheeled vehicles. But as Fredrik said before, we're not limited to that. We have examples of that we are in the ad domain in the U.K., et cetera. But now with also Westek being included into MilDef Group and that part of portfolio complementing our offering, I see options of growing further in the U.K. And last but definitely not least, North America, it's predominantly hardware sales business to business. But as I think everyone of you know, the American market is massive. And therefore, we have chosen to target B2B because we feel that, that is where we get the quickest effect on our efforts in the current landscape. Competitiveness. Is MilDef competitive? It sure is. We see us today as kind of unique. We offer a combination of hardware, software and services into solutions. And in certain markets, I would argue that there is no one within the IT sphere that can match this. There are international players, multinational players that could do this, but they don't have the local footprint. They don't have the trust and they have the culture and knowledge to come into the relationship that we have, again, our long-standing relationship. But our offering has grown. I mean this is why we have this unique position. And the combination of what we have in our portfolio, we can sell it separately, we can sell it in smaller combinations or the full suite. This gives us a unique position. The hardware portfolio in certain aspects, especially business-to-business, we still are -- see a preference to stick with our hardware provisions. But that's where we are selected because of product adaptations. The customer can get what they need. They can change peripherals, they can change connectors. They can change how the equipment is to actually perform. And the customization comes with that as well. And our long business track record in the Nordics and Germany gives us this position, again, reinforcing our position as unique when it comes to provision of IT solutions to armed forces. Some of you may recall that this picture or a very -- a custom to this picture was already brought up last year. And what we're trying to say here is that we have customers and relationships on all levels. We have direct relationships with end users, with the business government authorities, but also with global primes as well as that we have partners that support us in markets where we may not have the capacity to have local presence, where we still feel that we want to be present. And many of these examples, I had a multitude of logos and had to choose a few. So if anyone in the audience feel that we should have brought something else up, it sure is on the other page that I deselected. But what are we doing and how do we prove this? Well, we have a couple of customer references. One of -- what we have seen in media and in our press releases repeatedly coming back is the provisions of hardware to CV90. And we are doing this directly to BAE Hägglunds, but also in combination when we're providing cybersecurity to these vehicles together with our partner, Clavister. And what we are doing here is that we are providing the hardware, and they are loading it with their cybersecurity capabilities and giving these vehicles the protection they need also in this area. The units on order are exceeding 1,400 and more to come. I'm sure the CV90 is unparalleled success. And the unfortunate events in Ukraine that has been going on or events not even war that's been ongoing for now 3 years, it's showing that CV90 is what an armed forces need in matter of mobility and protection. In the U.K., this MIV program together with Rheinmetall and BAE Systems have grown for us. We've added further capabilities, further products into this and continuing the deliveries over several years to come. One of the key elements of this is the local presence. It's approved supply chain. We're doing local manufacturing, testing and through live supports. Make U.K., like many others is here to stay. We need to be local in order to be successful. And my final customer reference is stealing a little bit of thunder from Frank coming on the stage later, but I know that he's allowed me to use this one. And this is how we provide hardware to the German armed forces and that we are supplying the latest technology and through form-fit-function design philosophy actually put us in a very good spot with the customer. That's actually the enabler for this to happen. We see continuous deliveries of this with the possibilities for further growth in additional orders later on. But this is just one of our -- these 3 in total are just a few of many reference that we can bring forward. So finally, summary and outlook. We are focusing our engagements in regions and markets where we are established and present. Yes. But we also need to continue to work through partners and be adaptive on where needs arise. Our total offering, bringing it to solutions and in that integration and installation is included, it allows us to provide a capability to the customer, not just a product. And with the growth in the Armed Forces demands, the time or the pace that they have to now pick up, the European industries are fighting over resources, a quick capability ramp-up. It means that we are suited to take on a larger responsibility in these programs in partnerships with the primes. Yes, we might sometimes compete with a prime in a selective part of their portfolio where there might be a slight overlap because of that we have the full range of IT solutions. But at the same time, we are partners in many other aspects and sometimes full suppliers to these primes. So it's a finite market, the European defense market. And we need to stay true to our core and at the same time, provide the best service that the Armed Forces should have. Finally, reference back to Fabian's presentation, which I found was very good and not technical, Fabian. So happy for that. We will, of course, get feedback later on, so we'll see if people agree with me. But the increased interest that we see across Europe on the OneCIS platform. That's the X factor for market development. In parts, we can address this through the provisions to prime, that in turn -- so when they win, we win. But we've also seen in the Nordic markets that we can do this ourselves. And the pace that the Armed Forces require when they want to have a fast track and get this deployment, then we need to rid ourselves of layers where the Armed Forces actually end up in a situation where they get the capability, but they get it too late. So I'm leaving it hanging there a bit, and I think we will come back later on in other forms on the OneCIS definitely. Thank you.

Thank you so much, Magnus, and apologies for saying that you've only been in 1 year, 1 year and 1 day. So sorry for that. And also a good point, feedback, we're very, very grateful if you want to give us feedback, you can e-mail olof.engvall.mildef.com as well as you can do on the webcast to relay your questions for the coming Q&A that's really coming up quite shortly. So now we're ready to go on in the show. [Foreign Language]

[Foreign Language], Olof. Yes. I really appreciate to be here and to present roda as a new part of the MilDef Group. So my presentation will cover the typical company presentation, but I will give you some more background of this and that and what we think what is important, what we have to send out as a message. And I will -- later on, I will give you even additional information about the situation in Germany in total, what we are faced with. And I think that could be very interesting for you. Yes. Daniel already touched this topic. So with that acquisition, we completed the footprint in Central Europe. What you see here is that we are strong in sales in Germany with 76 percentages on sales. We always try to be more successful in other countries. But the problem was that we become more and more successful in Germany itself. So that was a blame. But together with roda SIS, we are active in France. So directly, we are active in the Benelux, in Switzerland, in Austria, in Italy and even in Poland. Rest of Europe, 16 percentages. We add to the footprint already existing in U.K., Westek. And Westek is now not under control, but leaded by MilDef Group, and this was a reasonable and good decision. We are operating from 2 different locations in Germany. The one with the headquarter is located in the Southwest, close to Switzerland and close to France. Here, you find the main, yes, management and other administrative departments. We just opened a new office building with 900 meters square. That means, yes, we have space and we have resources even for future ramp-up, around 50% more stuff is no problem at that location. The second location, the roda service center, Hüllhorst, sometimes we name it the workbench is located close to [ Hanover ]. Here, we just enter into -- not just in '22, we entered in a new premises with around 3,700 square meters. And again, we can increase the workspace within that infrastructure up to 50 percentages. In total, we bring into the group 150 employees together with Westek. Roda comes with 38 years experience, so a little younger than Westek, but older than MilDef Group itself. And last year, we had a record year with EUR 83 million in total. So I already started from the beginning, roda was active in specialized mobile computing. Since end of the '90s, we started to work with the German Armed Forces. So there's a long history behind that. And all -- always we try to come to long-term relation based on frameworks. I will discuss and will explain later a little bit more detailed. 2012, it was a very important year because I entered the company and we expanded the company with a small electronic company, and then we changed from a distributor to a true developer and production company. That's why we had to expand in 2015, the new production site in Hüllhorst. It is important to be present somehow in France when you are operating there. So we opened a sales office in 2018. And yes, the Westek acquisition from roda at that time, so that was now 3 years before, we started 2022. And last, but not least, we were acquired by MilDef last year. Now I come to the most important, the employees and the people in roda. I highlighted the head of the manager because we have a very strong and experienced and qualified management team in roda. This team in Lichtenau are familiar with the cooperation with MilDef over years because our business was always based on a partner cross-selling agreement. So the people were aware and familiar what's coming up after the acquisition. That was totally different to the team in Hüllhorst because they only saw some boxes sometimes they just move and that's it. And because of the guidelines of a public trade company, it was necessary that we are only allowed that we inform them one day before and it was a surprise for them, by the way. But the picture on the right, with the Swedish flag was made 2 days after the acquisition November last year. So what we found out over the integration time, there is a strong spirit very similar to the MilDef Group itself. So it's not easy to integrate, but we have the best basis and the best people for that. Roda stands for quality, and this quality processes and procedures are developed together with our key customers as well with the German Armed Forces itself. So all test routines are adapted to the problems or the challenges we had in the past and were improved over years and over years. The German Quality Inspector team is minimum 2x a week in roda to check all deliveries we sent out. Another example -- or I'll give you 4 examples for the very close relationships we have with our customers. So first of all, I want to inform you that, yes, the workstation used in the Lynx and Puma infantry vehicles are cooperated developed with a so-called big prime. And this is something -- yes, when you do this cooperated development over years because it takes 1 year of development, then you need the proof of concept, you need the qualification and so on and so on. That brings people together. Problems are very often helpful to create a closer relationship. The next example, and this is what we do with a company called Secunet. We create the so-called Sina workstation. It's a crypto client for mobile and extreme operating condition for data communication up to top secret. This is a quasi standard in Germany for data communication in classified areas. And we did this not only for this generation, we did this already for 3 generation over the last decade. This is even a proof of trust. Next one, even not that super highlight, but even important that we are so close, we create an obsolescence solution. So for different already more or less expired, main battle tanks Leopard in different variants, they need a monitor that is fittable in different generation of a battle tank, and we made it together at -- here, we can say it, with KNDS. The last example, the situation table, that was driven by the soldiers themselves. We come to them and show, yes, this is our display, you can use it and display the battle management system. And say, no, we need a table with a computer with some legs. Can you do it? Yes, we can do it. Within 3 months, we had this first prototype. After half a year, so we got already the contract and last year was delivery time. So that is something, how close you can work with the end user. Yes. Sometimes roda is familiar or popular for good and fast reselling products. Yes, we are the power seller of Panasonic toughbook in Germany. We can sell these products between 4 and 8 weeks, but this is, in most cases, for autonomous use, not platform connected. For the rest, we do -- yes, true added value. That means the most of our products we ship out are customized for specific applications. And this is very important, what we started 2012, we develop and create our own external power supplies, we consigned in 90% of all our deliveries. So roda products will be delivered dependent on the complexity within 3 and 9 months. Yes, so what's -- so we are partnering for 12 years minimum now with MilDef, but we sold products. We don't sold systems. And now with this IT system infrastructure, there's a new approach. And we already started beginning of last year of this new thinking, and we were already successful for that. So we placed new 19-inch/2 solution from MilDef into our portfolio and we pack full infrastructure or subsystem to our customers. This is a little new approach in comparison to the past. Yes, a good reference is we already saw this in the reference cases of Magnus, the Boxer U.K. reference. So we use some of these developed and mission-proofed products even for platforms we will use in Germany. Yes, you know that slide, the route to market structure. I modified a little bit and put on the roda glasses. So yes, we have direct contact to the end users in Germany with Bundeswehr, the suisse -- armasuisse, the Austrian Bundeswehr and the DGA. And this is necessary. You have to understand the application of the field. We are in contact with the big primes, starting with Secunet, Rheinmetall, Airbus, KNDS, Thales, MBDA, Hensoldt and DIEHL. And yes, for countries we are not so direct active, we use distributors, Siltec in Poland, Goma in Italy, Surcom and Benelux and RC computer in Ukraine. And these partnerships are running now even over decades. So what is important is that is not just ordering process and forget. This is something we do for a longer time. So we have framework contracts and a framework contract covers a certain product catalog. And the duration is not a month or a year. It is several years. And these agreements are existing for the German Bundeswehr with NATO, Secunet, Rheinmetall, KNDS and Airbus. I want to give you some more details about this framework structure because it's a key word you will hear very often. Again, it is limited in time. So for the German Armed Forces and Magnus already mentioned this contract, we have a maximum budget of around EUR 82.5 million, so over 5 years. The extension -- or no, the duration for such a framework can be maximum 7 years. What is great here is it is not only this framework, so we have additional agreements for the technical logistics support. That means we check out the compliance for next-generation solution within the time frame of their framework. Another thing is our service and repair contract. That means all products that are sold to the German Armed Forces run under this processed and simplified repair process procedures regarding prices and even for documentation. So now I switch to the topic, could be interesting for you. What's going up in Germany? Yes, we are faced with a historical ramp-up in German rearmament. The European Union will support the European countries with an extra budget over the next years with EUR 150 billion. It is decided that there will be an increase in Germany up to 3.5 percentage of GDP. So they will invest in different, we call it, megatrends. And this is close connected to Daniel's presentation. Now you will hear it with my words. So there is a continuation of the digitalization of the battlefield. The key word is software-defined defense. And yes, we talk about software, but roda, MilDef products are the carrier for this kind of software. The use of unmanned systems in all domains, air, sea and ground. Strengthen of cyber defense capabilities, use of artificial intelligence to make processes quicker and more efficient on the battlefield and sovereignty, independent supply -- European supply chain. And here, in all megatrends, MilDef and roda are represented. So now I challenge you with a German slide. That is something you will like. So I steal it, but I want to give you some explanation because it's not easy to understand. There is from the German MOD a financial plan for the next 3 or 5 or 3 up to 5 years. And you see, starting from 2019, it is really flat. It was 1.2, 1.3 percentage over the year. What happened in '22 was, yes, there were attack in Russia -- not in Russia, the other direction, so in Ukraine, yes. And yes, there were an extra budget for EUR 100 billion, all newspaper worte this, and we were super excited. But what happened in '25 and extra, extra something. So now we jump to 2.4 percentages, and the idea is to jump -- to ramp up '29 to EUR 152.8 million. So the budget is already approved up to '27. This is a situation we are faced with. And I'll give you one example where the investment will go in and I can use different platforms like the Leopard, the Puma, Caracal, but Boxer is well familiar, popular in that audience, so I take it again. And at the moment, so they are much more under contract. But in operation, in worldwide, there are 1,000 Boxer in Australia, Netherlands, U.K. and Germany, 1,000 and they are much more under contract. But for the next 7 years, the German Armed Forces ordered another 2,500, so that is massive, plus an option of another 1,000. And we are just talking about one platform. They are much more. So my conclusion, together, with the MilDef Group, there's a lift in value chain, boost of growth. Strategic Planning. So now we create a European strategy together -- the continuous improvement. So we'll take the best things of both companies and groups and bring it to one. And yes, and we make it better and better. And there's a redundant development. So yes, for production sites, Fredrik already mentioned this. So yes, there is a strong will in the company. Money is available. So we have to do our job. That's it. Thank you very much for your audience.

Frank Scholz, [Foreign Language] Excellent presentation. Thank you, Frank. Thank you for bringing Germany closer to Sweden. We are now at the final stage of the -- final stretch of the flight. We are soon to deploy landing gear and go into the Q&A. [Operator Instructions] But before we do so, we will look into the future outlook together with CEO, Daniel Ljunggren.

Thank you very much, Olof. Nice to be back on stage again and really appreciate all the MilDef team presenting here today. Now we have come to the point where we should boil down everything that we have talked about here today. And we should, in some kind of way, bring forward the crystal ball and see what we see coming up here in the future. Of course, what everyone has told today, I think we have some evidence and it's hard not to talk about the strong outlook for the future. We have heard about all different components and the growth drivers that we have seen within this industry and how we are connected to that and where we can place MilDef into that journey. Some of the biggest one, I would say, is the high demand landscape and it's here to stay. Frank was talking about the money is there, the budget is there, it's up the MilDef to make sure that we get some pieces of it. So we will probably see this high demand landscape being here for more than 10 years out in time. So it's really a good market situation that we are in right now. And on top of that, I would say, and we have heard this tons of times today, what should they spend the money on digitalization of the battlefield, creating system of systems, building this data-driven defense capabilities, that's really important in the future here. I joined actually event 2 days ago, had an opportunity to listen into Kongsberg from Norway, Zund from Sweden, I listened to Rheinmetall from Germany, for example, and everyone in that room was talking about just the digitalization part, how they should do the digitalization of the battlefields. And I think that what we are doing -- what our contribution to that the IT backbone that Fredrik talked about here earlier, it's a really super important component into making that happen, the digitalization of the battlefield. So really, really strong position on the market. Someone is talking about this defense tech super cycle, there will be tons of investments into different type of technical solutions within the defense, and that is how we can build strength, so to say. And before we join the Q&A, the final -- and maybe for me, at least the most important thing, and I think for the MilDef team as well is that MilDef is ready. MilDef is ready to make it different in the European defense race of the capabilities. We are ready to be a part of building this, what someone's saying building peace through the strength, so to say. We have a field-proven portfolio. We are long-term trusted partner within this defense sector. So we are really motivated to make a difference in this European ramp-up. That's my final word to say that MilDef is ready to do what they need to do in this building peace through the strength.

So one could say that the only thing you need to bring from this day is to remember, MilDef is ready.

Absolutely. That's one of the key words at least to take with you, but also maybe the other two, one that is really important.

Thank you, Daniel Ljunggren. We will now go into that scary moment of the Q&As where we really don't know where we'll end up. But I know that there are many talented analysts, both sell-side and buy-side in the room, so I count on many good questions.

[Operator Instructions] I will start with you, sir. And if you have questions online, e-mail them to [email protected]. I already have a few questions for Martina and Karin and also Daniel, but we will line up first and see that everything is working here, everyone is mic'd on. So you need to stand quite close to each other. That's not going to be awkward because we're good friends. So we'll fire away with the Q&A. And I think we'll go to the gentleman who needs a microphone for the webcast audience of 200 people to track along the questions. So state your name and your question, please.

Fredrik Lithell from Handelsbanken. Thank you for the presentations, very insightful and educational, so good to be here. Daniel, in your presentation at the start, you talked about resilience. And there are a few extra things I would like to ask about when it comes to resilience and the financial resilience you have frameworks that runs over multiple years. What do your clients feel you need to secure on a financial level, gearing, for example? Is there any discussions on that, would be interesting? Supply resilience, who do you get your components from? Do you work more with getting supplies from sort of near shore, if you like, a popular word? And then also expanding capacity. How do you make sure that you don't trip on that very fast run you are in now? So those 3 would be very interesting.

Thank you very much for the question. And I can start with the first one. I think it's super important to notice and remember, that, of course, they are looking to their supply chain and making sure that it's resilient in all kind of ways also in the financial part of it, of course. So that's absolutely something that we need to keep track on and make sure that we're taking care of, to have a strong balance sheet, to have some financial power, making sure that we have a strong cash flow because that is something that will be important for the customer, making sure that we could be this long-term trusted partners over many years. So it's not -- you're absolutely right, it's not just about that we have this decade of trust in defense of what we're doing, how trustworthy we are is also making sure that we have the financial position to make sure that we are delivering what they are asking. And you have to remember me some of the other questions. You were talking about the supply chain and how we can strengthen the supply chain and how we can add more of a local supply chain into that. And I think we already today have a strong supply chain. We talked about that, that we have many sources that we can use for the same components and things like that. So I think we are in a good position already today. But of course, that is something that we need to work really hard on. We need to understand the supply chain in details, and we have people that is doing that on a daily basis, tracking down the supply chain, making sure that we don't get any shortage of components and things like that, that could be impacting future deliveries and things like that. And there wasn't an expansion part here, the capacity ramp-up and this, I think, is some kind of headache for the whole defense industry. What kind of pace should we hold in this one? And I think in some kind of way, we need to continue and we are adding on a lot of new capacities and capabilities in terms of new people coming into the business in all areas within MilDef and I think it's -- in some kind of way, I think that we have underestimated the power and force that will come ahead of us now when a lot of countries is really starting to spending the money, we have heard a lot in the news that they should spend the money, but still this sits on their bank account, so to say, in different countries. So they have not really started to pushing out the big contracts, but I think that is something that we will see starting from end of '25 here maybe going into '26. And we need to be ready for that. But I also have stated sometimes that we can't have like 200 people on the bench waiting for the next contract. So there needs to be a balance how we can increase the capacity. And also the increased capacity and scaling up is important for us to winning new big contracts because back to the resilience, not just the financial part, the big customers, if they're going to place the big contract at MilDef that they are, of course, looking into how should you solve this kind of big contract? What capacity do you have to really make sure that you can deliver in the end. So sometimes, we need to invest before we get the contract, invest in people, invest in facilities and then we will be ready and they will be ready to make sure that they can place the big contract because we have the capacity to take care of it.

Thank you, Fredrik, for those three questions. I will actually interlace with a question from the web. You say that you grow a lot and you need to put in more muscles. But what about recruiting of personnel? What about that resource? So I would turn to Martina Karlsson, who is the Chief People Officer. So how do we go about our recruitments need going forward? Do we need to recruit a lot? And is it difficult to get those people in?

Thank you, Olof. Yes, we, of course, need to ramp up that as well and to add more people to the company. But I would say, yes, it's difficult. But we are sitting in a much better seat today than we did 1 year ago as a lot of people want to work for MilDef. We have good candidates coming through in our own channels today comparing to what we had 1 year ago. It is some positions that is more difficult than others. We have system engineers that we are hiring lots of. Many of them out there in the market, they have a core on software. We need initial hardware and the understanding of software. But we find them, absolutely. We do. We have -- for the first half of the year, we had 80 new employees that started. And that was only end of Q2. I haven't counted on the Q3 analytics yet. But I know just a couple of weeks ago, we had 12 new employees standing in the entrance on Monday. So we are busy onboarding them as well. So the competence are out there, but we need a lot. So we are active.

You could say that we're building a new company almost every year. It seems like it's a new company.

Yes. A lot of new people and new energy.

You have a cool job. Thank you, Martina Karlsson, for talking about that. I have a question online as well, actually oriented. So maybe that's a mix between Frank and Daniel. Could you please discuss how roda has been selling the 19-inch/2 since 2012? Historically, how much have 19-inch/2, the MilDef traditional bespoke products? How have that contributed to roda sales? What has changed since the integration? So if you're going to try to start, since 2012, you started with 19-inch/2. How much of it has it been? And how has that evolved?

So I can express this in numbers, and so that is what I remember. So we had, I put it on the table, around EUR 300,000 up to EUR 500,000 a year with 19-inch/2. And we already -- yes, multiply this by 8, something like this going forward. And this is just more or less the beginning because we see that there's a high interest in 19-inch/2 in our territory. We were not expecting this. And now we have the full support -- sales support to doing this, yes, business much more logical that it's easier to understand why or what are the advantages of these product concepts. Yes, we are at the beginning, absolutely.

Yes. Another question from Joey Friedman online is, could you clarify roda's reseller business? Is it fair to understand that 35% of roda sales come from MilDef Crete and Panasonic toughbook resales?

No. So we have our own products in Germany. So what already touched by Fredrik is the display technologies. So all displays that are coming out from roda is a roda product. And the most important is that we combine things. And even for the things coming from Crete, there is, yes, a customization part, we can even do it by ourselves. So some things well done in roda itself as a, yes, German IP.

And while we're on roda, we have questions from owners -- Norwegian owners up in Oslo. Can you, Frank, please spend some time on the competitive landscape in your key markets? What does the typical competitor look like in Germany?

Yes, it's not a one-by-one comparison. And so my answer to this question is, at the moment, the cake is big. It is what it is. So we improve our business, and we are strong in that. And so there is no direct competitor. In some cases, we are partnering. And sometimes, we are in a competitive situation, as Magnus already explained. And so it's -- yes, there are -- we are not alone, absolutely, but we are strong in our situation in Germany, I would say, #1. And yes, we can improve it.

I'm sure you can, and that's what you're working for. I think that Hugo Lisjo, who is one of the -- together with Tom and Erik, of course, and Daniel, the best defense analyst in Sweden with the Carnegie -- or rather DNB Carnegie, sorry, for that mistake. Hugo, Lisjo, we talk almost every day. So I mean, you must have millions of questions.

Thank you the kind words, Olof. You feel quite confident about the future. But to hit your 25% growth financial target, you have to add about SEK 2 billion in order intake for deliveries in 2026. How confident do you feel about this number?

I mean, I think the -- I just take the question, I mean, just jumping into it directly. I think -- thank you very much, Hugo, for the question. I think that the SEK 2 billion is more coming from your side maybe, it's not coming from our side. It's nothing that we have said. We have stated, and I can repeat that again, that I feel quite comfortable with the long-term growth target of 25% year out in time, 3 to 5 years, something like that. And I think it will absolutely be doable organic-wise. So we don't need to mix it up with some acquisition part of it. Of course, we need to build a strong order backlog for '26 and beyond '26 as well. Now we have like the second half of 2025 to really make sure that we are getting down all of the opportunities we see out there into the order backlog. So we can plan and make -- have some visibility for the 2026 deliveries. But I'm quite comfortable that we can meet our long-term financial target upcoming 3 to 5 years. After that, of course, it become more blurry and also the 25% will be tougher and tougher in absolute numbers, of course. But I see a bright future in the 3 to 5 years coming up from today.

You also mentioned a strong order backlog. That's in for 2025. How confident do you feel in making all these deliveries of SEK 1.5 billion in second half of '25?

As I said before, of course, it's a massive amount of deliveries that needs to be done in the second half of 2025. As I said, we did SEK 1.2 billion in full year '24, and now we're going to do SEK 1.5 billion. But we have, of course, looked really deep into what that second half looks like, and we feel quite comfortable around all of the deliveries. We have the capacities. We have the planning already done. So we feel quite comfortable around that. Of course, in this business, there's a lot of complex products, complex solutions in the end. We can run into something that we can't see today. So I'm not going to stand here and make 100% guarantee that we will deliver in everything of that. But we also have the opportunity, as we heard Frank talking about, with a shorter lead time, for example, maybe also adding something in the second half where we can have some orders and also making the deliveries before we close 2025. So there is a mix of things there, but quite comfortable around the SEK 1.5 billion. I don't know if anyone would like to add more to that question.

Now what, I mean, yes, connecting to what I said before, we have committed to those state to our customers. So there's no -- yes, a happy calculation behind that. We need to do it both from customer view and to deliver numbers as well. So we feel confident. Even if some parties stretched, it's at maximum for the rest of the year. But then we have increased the capacity after that. So yes, it will be some tough months, but fully doable.

Okay. So my final question. You mentioned that you have employed a lot of new staff. How should we think about the cost increase going forward versus sales increase?

Of course, we will need to add OpEx and that will grow. I don't think I have said -- stated before that we have quite of a scalable business. So I think adding on this capacity and taking on the extra cost will be less than we see on the top line and the growth, and what we see could be the gross profit, so to say. So we will scale this company. But there will, of course, be money expended on the OpEx over the P&L, adding on new resources and things like that. We need to be not just relevant here and now. We need to be relevant in 5, 10 years as well. So we need to increase and we need to make sure that we can take care of this high demand landscape in a good way, making sure that all of the capacities that were coming down our way, so to say. So adding on more people, taking care of the new people. As you can see with Martina here, we have a 20-year plan for the next potential candidates. So we have a short plan and a long-term plan.

So thank you, Hugo Lisjo. And again, DNB Carnegie is really well versed on the middle of story. If you get your hand on his reports, you will sometimes know more than Daniel and I know because Hugo is really diving into the programs in Europe. Yes, sir, Tom. Tom with Pareto, also very well versed defense analyst.

a question on your local for local sales. You mentioned a lot of your sales efforts are locally based. You're strong in Sweden and now, of course, in Germany. Can you address the Baltics from your Nordic offices? Or do you need to expand geographically to meet demand there?

Thank you for the question, Tom. Do you mind putting the sound on? I don't need to use my -- yes, good. The Baltic markets need to be seen as individual countries. We all -- in the wordings, we often lump them together, but they have 3 -- there are 3 different countries with specific needs, requirements. The volume of their economies have in the past forced them also with the Russian bear on their doorstep, forced them to have joint programs, joint views on different things. My opinion about the Baltics and how to address that is mainly through our existing footholds. But as business grow in these countries, we need to be open to localize resources as well. But from the get-go, I don't see a requirement to have a specific localized resource in any of the 3 countries. They will be, I would argue, actually better addressed if we have resources tied into the company and up-to-date with the latest requirements in the other more strong markets in the Baltic region.

Perfect. And a question on Germany and the investment increases that you mentioned. You touched upon it in your previous answers, but we saw a bit of investment delays or procurement delays from Germany in the beginning of the year, given the large ramp-up in spending. What sort of lag are we expecting moving forward? And can we see a continued delay in terms of procurement moving forward, given the aggressive ramp-up in defense spending?

Great question. So please keep in mind that the budget was not released for a long time. And this was a big, big challenge. So I have a good example I want to highlight so that for the 25 million approvals made by the German government, we had last year, 100 million. Today, we just reached 17 million. So we expect for the last quarter a sprint. I hope that responds to your question.

Yes, definitely. Thank you.

Okay. Thank you. Before we go back to the room, I have a question that I find very important. We have 45,000 shareholders. Swedbank Robur is the #1 owner on the cap table. Many, many fine names on the top 10 list and below. And for many of those, again, especially Swedbank Robur is very important with the ESG and sustainability aspect of the responsible business of MilDef. So I'm going to go to Karin now because last year, we made a big sort of number here on stage, talking about the ethical sales and, if I may, the responsible sales carried out by MilDef. So the question to you is really the ethical compass, all those procedures regarding what countries and customers we sell to, where are we today? Has it changed going 12 months back? Are we as diligent in responsible sales as we were last year?

Yes, for sure. And also, I would state that it's perhaps easier than ever being a Swedish and Nordic defense company to focus on our core markets, Europe, Nordics. So if anything, it would be easier today to follow our ethics.

Because we can focus on these markets that we know were grown up here and we have control because we don't need to go out on a limb somewhere else. Is that correct?

Yes. And also, we haven't before either gone out on the limbs. But now it's even, for this cloud, easier to understand that we don't lose business by having an ethical stance.

Can you give us a glimpse and remind the audience about the ethical stance? How do we work with this matter in MilDef?

Yes, for sure. So we have sort of a green list guiding us, and we put that list together from independent and global indexes that guides us with regard to in democracy -- in level of democracy and respect for human rights and also corruption. So the baseline is that all European or NATO or EU countries would be on the list, but all aren't there because some of them are too low on the indexes.

And the MEC, the MilDef Ethics Committee, who is represented in this group and this jury, so to speak?

Yes, for countries then outside the green list, we have the Ethics Council to decide on whether a business should be done or not. Of course, we have sort of a red list, which is based on embargoes and sanctions and such. But in between the red list and the green list, then it's up to the MEC, MilDef Ethics Council, to decide whether to do business or not. And I shared the MEC, and there are also the Chair of the Board of MilDef Group, also the CEO and the CTO representing the business -- the further growing business and also our quality and Sustainability Director.

Thank you. If we have no further questions on this topic or we'll go back to it, we go to the gentleman in the front row. Please state your name and your question.

[ Johansson Mike ], SEB. So regarding your software offering and perhaps if I frame it like this, when you sell your hardware, what would you say that the penetration is that you also sell software? And what sort of the potential that you see there going forward?

Good question. So this combined offering, of course, makes us a more attractive partner for both prime and also the different nations. I don't think I have any figures for that. But of course, we are a more attractive offering because we can provide a more complete solution to our customers and the primes that we work with the partners.

If I just wanted to add something there, I think it's worth mentioning also that our software, the OneCIS, is a strong enabler for selling more of the hardware where we can sell a combined solution, so to say. And it's also an enabler for getting into new markets, new countries, new customers that we maybe don't have a business today, but software can be the one that takes us into that market, and then we can come also with the hardware and also maybe the solutions offering in the end. So it's a strong year. The combination is strong. And we can -- the software is a strong enabler for more hardware.

And then second question on the new facility in Rosersberg. I think you said it's supposed to be up and running in end of Jan '26. When do you sort of expect to have the...

Two weeks from now.

Two weeks from now. Okay. But still, when do you sort of expect to have a sufficient capacity utilization at that facility? And do you expect to have a backlog that could fulfill that for 2026? Or what do you see there?

I think we need to see it like we are really ramping up, and also we'll take a little bit time to come into the new facility and make sure that we are running at full speed in that one. There will be a move from the current facility into the new one that would take some time. I know that they are also not interrupting with the current project they are working with right now. So they will try to do that in the old facility, making sure that they can deliver from that. And then they can make the move. So this new facility is not about being up and running at day 1. It's a long-term investment MilDef is making in to be one of this, as we talked about, the primes in system house, tactical IT, also doing the integration part of things. So it's a really super important investment over time, I would say.

And perhaps maybe short term, do you expect that sort of ramp-up to have any impact on the margin side? Or what do you see there?

I think so as well. I think that is a very profitable business that we are doing there. The integration partner will have a good boost of the gross margin and also the EBITDA margin going forward. And I think also by increasing the capacity, we can also be more efficient in what we are doing. And what I hear from the project management at the site there, when you can do 4 different platforms at the same time instead of just doing one, you can save some time and you can save some money. We can be more efficient, and that could, of course, then give us the margins in the right direction.

I have a quick one from the web. I have a few from the web now to Fabian. Can you explain briefly the business model behind the OneCIS offering? Is it a recurring license-based model? What is it really? Or is that a half hour discussion?

No, no. I'll try and connect it together. Well, of course, there's a license. It can either be a perpetual license or it can be a subscription-based license. Then we have a maintenance agreement, which covers the updates and development and new functionality and capabilities of our products. And then finally, we have integration projects because all customers need either a smaller or larger adaptation where we integrate their products and their security requirements, et cetera. So there will be one or more integration projects for our customers.

Thank you. And the question coinciding with this almost is from another person in the audience. What is the -- and this is for Magnus, I think. What is the aftermarket strategy to increase their revenue stream and retain the customer long term? Aftermarket strategy.

Yes. Well, we are already retaining our customers. So what I would assume that this question drives that is how do we actually increase revenue and recurring revenue over time besides these contracts that already come. And we have today already an aftermarket offering, allowing the customers to add different services, et cetera. But I'm not going to dwell into that strategy. I'm actually going to come back to that question because it's under definition. It is an area, which has my attention.

Thank you so much. And this question is probably for Daniel. Defense stocks seem to trade negatively with peace talks progressing, and that goes every other week. Looking at spending trends in the future with current macro backdrop, would a permanent peace in Ukraine tomorrow and not a prolonged war be positive or negative for MilDef's revenue going forward?

That's a common question that we get from time to time. And first of all, I just want to say that I think we all in this room really want to have the peace and have the peace deal and have -- or at least some kind of ceasefire in Ukraine-Russia conflict. But with that said, I don't think even if we see a peace deal, I don't see that the European defense ramp up will stop. I think we will continue. We have realized that we need to stand on our own legs, and maybe a peace deal or a ceasefire maybe could increase the threat against the rest of the Nordic and European countries instead. So I don't really see that, that will have an impact on the defense budgets going forward. We are now in this landscape where we really need to invest. We need to pay for the underinvestments that we have done for decades going back. So it's not going to stop. How long in time? Some people are talking about the full generation out in time, someone is talking about 10 years, some is talking about 5 years. I don't have more crystal ball. But at least 5 to 10 years, I would say, is my statement that we will continue even if we have a peace or not there, but we can all keep our thumb for a peace deal.

Thank you. I will now close for the online participants. I will close the Q&A send-in of questions, and we will finalize the questions in this very room. Tom, go ahead again. He needs a microphone, back in the corner. And we're about to land the bird. So only a few more minutes before we have lunch and more time to talk to my lovely colleagues. So if you have questions, prepare them now. Tom, please go ahead.

A question on replacement cycles. Have you seen any shortening of the replacement cycles, given the increase in time actually using your products? Or is that still the same if you compare to, say, 5 years ago?

Let's part you and part me, I am saying.

But we see, of course, there's a parallel ramp-up there as well. There is a lot of things that need to have effect today, then you need to update the existing platforms. Some is donated to Ukraine, for example. And under time, you're waiting for new platforms. You need to update it and keep them the same level on the digitalization. So we see that in parallel. So it's always volatile when you compare them, but we definitely see an upgrade of existing platforms as well.

But the existing replacement cycle is some 5 to 7 years, is that correct?

Yes. It depends on the products. It's yes 5 to 20 years. Yes. So very, very hard to say.

But if I'm to add to this is that as we see, I mean, Daniel showed that we're late cyclical. And it means also that the Armed forces have started to use their existing systems. I wouldn't be surprised, and we -- I see some tendencies that the programs for replacements are larger than they used to be. That's the reference I have from the past as well, I mean, the volumes. But that's partially because a larger volume of the fleet, if we talk a fleet or what you have in your total capacity, it needs actually to be up to war standards than it has in the past. You've been able to accept that certain units have the latest and greatest capability and others are on just waiting, and they might even jump the cycle and we take them in the next leap if required. Now the discussion is how do we lift the complete fleet? So it's rather volume than actually increased cycle. But I wouldn't be surprised, and that was the sentence I started, that as the Armed Forces now start to ramp up their capability and use the systems, of course, the wear and tear will burn through.

Thank you, Tom. Ladies and gentlemen, that concludes the Q&A session for the 2025 Capital Markets Day. I will ask Daniel to stay on the stage and the rest of my lovely colleagues, give them an applaud and a warm hand and thank you for participating.

Thank you, Olof, and I'm not going to take too much of the time. I know that some of the people at least in this room is waiting for some well deserved lunch outside in this room. But I just want to take the opportunity to say thank you for the MilDef team, really good presentations, really good offering you have put into this day today. I want to say a big thank you to Olof, who is really taking the lead on this show and be really driving this in a safe and good way, so to say. So a really big thank you for contributing to this day today. And finally, I want to say thank you to all for coming here today, listening into our story, following the MilDef journey. And I hope you -- we have some shareholders in the room as well and contributing on that side. So a great thank you to all of you. And now you will have some lunch at least here. And online, they need to take care of their own lunch, so to say.

Absolutely. Thank you so much for participating on Mildef's second -- not the first, but the second, but the first web broadcasted online show today. My name is Olof Engvall. Please reach out if you need me to facilitate and navigate you in the continued MilDef journey that you are own on as shareholders. So take care, stay safe. Thanks for now.