<a id="bm-comp-53f789f4-f5ae-48e6-bf4c-16dcd9ea24b8" name="bm-comp-53f789f4-f5ae-48e6-bf4c-16dcd9ea24b8" class="BMCustomAnchor"></a><table><tr><td bm-component-id="53f789f4-f5ae-48e6-bf4c-16dcd9ea24b8" style="vertical-align: top; width:100.000000%;"><ul><li>SEK 1bn break-through order from Swedish FMV</li><li>~80% leased capacity SATCOM (24 months), ~20% Terminals</li><li>Could add ~50% to '25e-'26e EBITDA estimates</li></ul></td></tr></table><a id="bm-comp-070b8054-4791-4253-b7b7-2e45bb7f14a1" name="bm-comp-070b8054-4791-4253-b7b7-2e45bb7f14a1" class="BMCustomAnchor"></a><table><tr><td bm-component-id="070b8054-4791-4253-b7b7-2e45bb7f14a1" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Record-high order from Swedish FMV</h3><p>Today, Ovzon has announced a SEK 1.04bn (USD 110m) breakthrough order with the Swedish Defence Materiel Administration (FMV): this is by far the largest order that Ovzon has ever received. Of this order, ~80% relates to a 24-month SATCOM contract (start in June), and ~20% relates to terminals. According to the press release, the SATCOM element relates to leased capacity (at least Ovzon-3 is not mentioned), which is somewhat surprising given that Ovzon-3 is not fully utilised (with utilisation at ~40% in Q2e). This means that Ovzon may need to purchase extra capacity in order to fulfil this order. Hopefully, we will learn more about this during its conference call at 10:00 CET <a data-bm-trackable="false" href="https://www.youtube.com/live/Lvdy2yQAZv0" target="_blank">(link)</a>.</p><h3 class="bm-h3">Positive impact on estimates</h3><p>We estimate that Ovzon currently achieves a gross margin of around 50% for its leased-capacity business (and over 90% for Ovzon-3 related revenues). Assuming this order carries a 50% gross margin, it could potentially increase '25e-'26e EBITDA estimates by c. 50%, based on what we currently know. In terms of pricing, the SATCOM part equates to revenues of ~SEK 35m per month, which, according to our estimates, is relatively consistent with the recent SEK 185m SSC contract. Furthermore, we emphasise the strategic value of winning this order in terms of both size and length, as well as the support it provides to Ovzon's balance sheet (net debt SEK 523m in Q1) and subdued free cash flow (r12m FCF SEK 24m, including orders with prepayments, albeit this is currently improving well). In conclusion, this is a breakthrough order.</p></td></tr></table><a id="bm-comp-a2077db8-4522-47c1-97fc-77c83b61c5eb" name="bm-comp-a2077db8-4522-47c1-97fc-77c83b61c5eb" class="BMCustomAnchor"></a><table><tr><td bm-component-id="a2077db8-4522-47c1-97fc-77c83b61c5eb" style="vertical-align: top; width:100.000000%;"><table id="bm-img-578eb242-bbe0-47a3-a871-dd911765bb79" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Ovzon order announcements (USDm)</td></tr><tr><td><img bm-img-encrypt="578eb242-bbe0-47a3-a871-dd911765bb79" bm-img-original-height="415" bm-img-original-width="793" bm-img-svg="image:image_upload/88064_2931b585-aaba-45f9-a9d9-6313b1257153.svg" bm-img-width-hint="95.46%" id="bm-id-6b9ae54a-4334-4ddd-abc0-7c1c89fc233e" src="https://abgsc.bluematrix.com/images/image_upload/88064_2931b585-aaba-45f9-a9d9-6313b1257153_694.png" svg="/nas/web/clients/abgsc/images/image_upload/88064_2931b585-aaba-45f9-a9d9-6313b1257153.svg" width="694" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table><a id="bm-comp-bab9cfd2-c58d-4b09-8d96-933ece0c3079" name="bm-comp-bab9cfd2-c58d-4b09-8d96-933ece0c3079" class="BMCustomAnchor"></a><table><tr><td bm-component-id="bab9cfd2-c58d-4b09-8d96-933ece0c3079" style="vertical-align: top; width:100.000000%;"><table id="bm-img-1e75358c-75eb-4937-b7ae-0b2da52866b1" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Ovzon-3 assumptions (ABGSCe)</td></tr><tr><td><img bm-img-encrypt="1e75358c-75eb-4937-b7ae-0b2da52866b1" bm-img-original-height="318" bm-img-original-width="694" bm-img-svg="image:image_upload/88064_b71dfab9-a199-4e8e-a5ea-2f654cf47498.svg" bm-img-width-hint="100%" id="bm-id-0c10850d-b24c-4831-a4a5-0ef8f2670baf" src="https://abgsc.bluematrix.com/images/image_upload/88064_b71dfab9-a199-4e8e-a5ea-2f654cf47498_694.png" svg="/nas/web/clients/abgsc/images/image_upload/88064_b71dfab9-a199-4e8e-a5ea-2f654cf47498.svg" width="726" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table><a id="bm-comp-9471be0d-d06f-4fac-a9ca-a35c3625c98e" name="bm-comp-9471be0d-d06f-4fac-a9ca-a35c3625c98e" class="BMCustomAnchor"></a><table><tr><td bm-component-id="9471be0d-d06f-4fac-a9ca-a35c3625c98e" style="vertical-align: top; width:100.000000%;"><table id="bm-img-6859f3a0-de0f-4cdb-84e4-9cb9dbec01cb" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Sales, quarterly (SEKm)</td></tr><tr><td><img bm-img-encrypt="6859f3a0-de0f-4cdb-84e4-9cb9dbec01cb" bm-img-original-height="332" bm-img-original-width="694" bm-img-svg="image:image_upload/88064_0ed04d58-74d6-4f7a-bc58-792c85920a26.svg" bm-img-width-hint="100%" id="bm-id-147fd219-e303-436c-b072-a789ff39d471" src="https://abgsc.bluematrix.com/images/image_upload/88064_0ed04d58-74d6-4f7a-bc58-792c85920a26_694.png" svg="/nas/web/clients/abgsc/images/image_upload/88064_0ed04d58-74d6-4f7a-bc58-792c85920a26.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table><a id="bm-comp-b063fe70-f9b1-44ef-9753-ee40abefdcf3" name="bm-comp-b063fe70-f9b1-44ef-9753-ee40abefdcf3" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b063fe70-f9b1-44ef-9753-ee40abefdcf3" style="vertical-align: top; width:100.000000%;"><table id="bm-img-190ce0b0-830e-4a18-995f-bc60277aa07d" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Sales breakdown (SEKm)</td></tr><tr><td><img bm-img-encrypt="190ce0b0-830e-4a18-995f-bc60277aa07d" bm-img-original-height="373" bm-img-original-width="793" bm-img-svg="image:image_upload/88064_7ed8d11e-48f8-4b24-b661-099ee7033923.svg" bm-img-width-hint="100%" id="bm-id-ca641272-c5e8-48b7-9076-2a36c0892715" src="https://abgsc.bluematrix.com/images/image_upload/88064_7ed8d11e-48f8-4b24-b661-099ee7033923_733.png" svg="/nas/web/clients/abgsc/images/image_upload/88064_7ed8d11e-48f8-4b24-b661-099ee7033923.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table>