Fjord Defence Group (DFENS) Company Presentation summary

Transaction overview and strategic rationale

• Entered agreement to acquire Scanfiber Composites A/S for NOK ~400m, with 80% cash and 20% shares; long-term bank financing secured for ~45% of cash consideration.

• Scanfiber is a leading producer of high-performance composite ballistic protection, showing ~50% revenue CAGR and ~30% EBIT margins (LTM: NOK 159m revenue, NOK 52m EBITDA, NOK 49m EBIT).

• Acquisition aligns with strategy to build a portfolio of established, profitable defence suppliers with high growth potential; clear commercial synergy potential via cross-selling.

• Pro forma LTM leverage of ~2x NIBD/EBITDA supports continued M&A capacity; active pipeline of near-term acquisition targets, mainly in Scandinavia.

• NATO’s increased defence spending and strong policy push for domestic production create favorable market conditions.

Company profiles and operations

• Fjord Defence specializes in weapon integration solutions for soldiers, vehicles, and naval vessels, with ~45% revenue CAGR since 2020 and 16% EBITDA margins.

• Scanfiber focuses on lightweight, durable ballistic protection for vehicles, vessels, aircraft, buildings, and personnel, with a diversified European customer base and strong orderbook.

• Both companies maintain close relationships with blue-chip military OEMs and prioritize innovation, quality, and tailored solutions.

• Fjord Defence and Scanfiber operate asset-light, scalable business models with a focus on development, assembly, and rapid prototyping.

• Management teams have extensive defence industry experience and significant share ownership, ensuring alignment with growth objectives.

Financial performance and outlook

• Fjord Defence targets NOK 95-100m revenue in 2025 with 15-17% EBITDA margin; strong Q3 performance drove 17% YoY growth for the first nine months of 2025.

• Scanfiber achieved >50% revenue CAGR and >30% EBITDA/EBIT margins in 2024/25; current setup supports NOK ~300m revenue without further investment.

• Scanfiber’s orderbook is NOK ~250m, with pending orders of NOK ~1.35bn and pipeline projects of NOK ~1.85bn, ensuring multi-year revenue visibility.

• Fjord Defence Group maintains a strong cash position, low leverage, and unutilized debt facilities, supporting future acquisitions and growth.

• Both companies demonstrate disciplined cost control, operational leverage, and robust profitability.