Idaho Strategic Resources, Inc. Price & Performance (IDR)

In the present context, in this geopolitical context, is actually the right one. And we are of course, we of course, both the Intra team and myself have the ambition that we need. I am the largest private shareholder in the company because I believe in its its potential and in future. And we have an ambitious plan to be able to lead at the main well, to achieve the main capabilities and technologies to lead the National and European programs have come to drive these change together with this amazing team. And today marks the beginning of a new Indra At the Munich Security Conference, where I was just couple of weeks ago, I saw first on how Europe clearly has the need to strengthen its defense autonomy For example, use Ursula von Leynen mentioned that Europe should aim to increase its defense spending above up to above 3% of its GDP or in the case of JD Vance, well, he mentioned it is the time to invest in defense because we cannot just presume that American presence will be in Europe forever. Spain is following along the same lines. With a commitment to grow its own national industry, and Indra will be the main tractor company.

At Indra, we understood the message and we are ready to respond by increasing our capabilities growing our portfolio of proprietary products and generate high skilled jobs. In this context, our vision at Indra Group is clear to become the leading Spanish company in defense, aerospace and advanced digital technologies. We want and we can provide an industrial and technology response to the great challenges that Spain, the EU and NATO are facing positioning ourselves as leaders in both the the civilian and military arenas with a multi domain approach. In the land domain, we are going to lead main vehicle programs such as the World Combat Vehicle 8x8 or Combat Support Vehicles with our own manufacturing capabilities as well. As military mobility with infrastructures and advanced logistics. And as you've probably been able to see at IDEXX that took place in Abu Dhabi, we reached agreements with global leaders in military vehicles. To expand international footprint. In the air domain We want to reinforce our role as National systems integrator and as a European provider in programs such as FCAS, a program that we actually called in the same term, will lag like to reinforce our role as at a national level in supplier in defense programs and cloud.

In the naval domain, we would like to consolidate ourselves as system integrators, forging alliance with leading platform providers, especially in national Indra. In cyber. We aspire to become a national leader in cybersecurity and cyber defense Let's just remember that Indra Group has been building national capabilities for over a decade and leading European projects both in EDA and EDF that we've been leading from our company. In Space, we our objective is to be leaders and become a Tier one European leader. And we want to provide the sovereignty that both Spain and Europe require. And we have created IntraSpace Indra which we will be leading this amazing change with a value proposition that we will show in the clip that we prepared for you after this slide. To be able to reach our objectives in the five domains, we are strengthening our industrial and productive capabilities with initiatives such as the new Indra technology hub that we will introduce later. And along the same lines, we have accelerated our industrial plan to optimize efficiency and increase production, achieve greater autonomy to develop our solutions and ensure a sustainable and continuous growth of our company. Before handing over the floor to Jose Vicente, as I mentioned earlier, I would like to share with you a video to explain our ambitious vision about Inbridge Roll in Space, please?

In a constantly evolving world, marked by rapid changes and geopolitical uncertainty, Space has become a strategic cornerstone for sovereign Its impact is crucial for ensuring secure communications with comprehensive coverage, advanced protection through satellite observation, space surveillance and geolocation. In space new co emerges as a unique player in Europe Its dual civil and military approach along with its end to end capabilities, allows it to control the entire value chain. From the design and manufacturing of satellites to the development of control centers, as well as operation and service provision. This integrated positioning drives its scale and competitiveness. Facilitating access as a leader to large programs. With its own infrastructure for the manufacturing of low earth orbit satellites, Indra space will establish standardized and scalable production ensuring profitability and efficiency. Furthermore, it will lead the development of satellite flight software and command and control centers for advanced missions. As a multi orbit constellation operator, Indra space dry the vision of Iris Square, the European Commission's initiative to ensure secure satellite communications for governments and organizations In this context, it will deploy global coverage and resilient connectivity to facilitate decision making and support critical operations in both civil and military environments.

Secure [indiscernible] cloud and multi domain and collaborative warfare In the civil field, it will bring connectivity to remote regions where today it does not exist. And it will transform air traffic management By ensuring communication between controllers, and aircraft in oceanic areas. For Earth observation, Indra relies on state of the art satellites that provide real time images and it applies artificial intelligence. This means that threat detection coastal and border surveillance, and the protection of critical infrastructure are significantly enhanced. In the field of space surveillance, it has one of the most advanced radar in the world, combining optical technology and data intelligence for greater anticipation of threats. Additionally, Indra will deploy essential elements for strategic geolocation. Europe has taken a firm step to boost space and it is advancing towards the creation of an ecosystem of secure communications, observation, and navigation, which are essential for its autonomy, and take Space, a unique European player with a comprehensive end to end strategy. [indiscernible] future of space.

And now, Jose Vicente, you have the floor to share with us all the progress made in the last year.

Yes.

Thank you, Angel, and welcome.

Ladies and gentlemen, to Indra and Anngel, welcome to this company that you know very well from your previous role as Chairman of Escribano believe that you know this company better than many of us. On 03/06/2024, we presented our ambitious plan based on seven key strategic lines. First, more focus on aerospace and defense, second, the creation of a space new co and as depicted by the video we have just seen increasing Main Science autonomy by boosting its growth with support of strategic partners number four, strengthening our presence in new markets five, activating our portfolio rotation and expanding our ecosystem Number six, increasing investment in technological R and D and finally, doubling down on our commitment to critical talent. Is embedded into the very DNA of every person at this company. Let me now highlight the most relevant milestones achieved over the past months. Firstly, over the past year, we reinforced our leadership in the aerospace and defense Indra, achieving significant progress in each of the main domains. For example, in the space domain, after the spin off of the Indra division and the acquisitions of Deimos, His Passat and His Descent, we are now the most integrated space company in Europe in Secure Community.

And we are involved in whole market European and national [indiscernible] Just a few days ago, during a meeting with the ESA in Munich, we were told that our achievements in just twelve months positioned us as a relevant player in the space sector with potential to significantly increase our influence. And this is to be underscored because over the past twelve months, our teams have been performing an outstanding job. In the land domain, the majority acquisition of TENS Defense consolidate our position as the prime contractor of major national programs for military ground vehicles such as VCR 8x8 and the VAC. In the air domain, we continue to play a key role in the program and we continue to remain strong in the Euro five program. Therefore, we are consolidating our position in the large programs We continue to participate as a key systems provider and radar manufacturer for the Indra frac program. Finally, we have booted our radar technology internationally. And a testament to this is a joint venture we signed with the Edge Growth from The Arab Emirates where we will be expanding our footprint in The Middle East and in other regions as outside the European Union and NATO.

Additionally, we have executed key contracts We supply mobile radars for military air traffic to the Polish Air Force And also the first space surveillance radar sold. To the German Air Force. So beyond reinforcing our position in major programs and benchmark technologies, we have been taking key steps to consolidate our position in aerospace and defense. We have allocated more than 90% of our capital to aerospace and defense because we must accelerate the change in our company's profile. As a stated by our Chairman, there are some ways that we have to tap into. That's why we have reinforced our offering around 11 priority systems which will enable us to achieve a greater degree of standardization in our solution and better focus our sales force. We have also launched the new Indra Indra Plan with standardization, vertical integration [indiscernible] supplier chain rationalization is key pillars supporting the process. Thus, we will gain greater efficiency and we will be reducing our product delivery lead times. To customers. So this is a crucial time in the European defense industry and therefore leads times are just as critical. Thanks to these approach, we are transforming our business model. As you can see on the right hand side of the slide, back in 2023, aerospace and defense represented less than half of our EBITDA.

Whereas by 2026, it is expected to account for more than 60% of our EBITDA forecast. Estimated at over €750,000,000 Regarding Minsight, we continue making steady progress. Regarding its growth and efficiency plan, I believe that this Brzezinski did a great job and Minsight is outperforming its peers and therefore we have become a benchmark. However, we need to consolidate this leadership in the digitalization and high value technologies further. In this first year of the plan, our digital off offering is gaining increasingly more weight and already accounts for more than 50% of total revenue with a strong growth in the modernization of legacy systems migration to the cloud and cybersecurity team, all of them being key areas for our clients' digital transformation. Artificial intelligence, we posted growth of more than 50% in the development of use cases for our clients while also advancing the internal application of AI in our processes As a result, we have achieved a level of efficiency in our software development processes where artificial intelligence is applied. We're also developing a new commercial model for our offering and priority customers, which has allowed us to increase the gross margin in the priority awards On the other hand, we continue strengthening our international presence strategic markets as evidenced by some key projects such as the transformation of critical systems of the Saudi Arabian power grid.

Besides these advances, we are still in the process of incorporating a strategic partner that will provide Minsight with more flexibility to accelerate its growth and consolidate itself as a global benchmark in the digital sector. And let me underscore that we are open, but we are not going to rush things up. Moving on to our international expansion, fiscal year twenty twenty four was key for Indra. Our growth outside Spain was Down to 2019 where we're now placing our focus. Let's take a look at our main achievements over the period. In North American Central And Northern Europe. We were able to nearly double our order intake compared to 2023. And this was possible thanks to our expansion in The United States and Canada. Where we were able to formalize Sankey Con Trade Commission, Aviation Administration of the agreement with ANAVE Canada for Air Traffic Management. In The Middle East and North Africa Indra intake grew by 41% compared to 2023. In The Emirates, the agreement with Edge grew for local production of radars for natural countries is not worthy. In Saudi Arabia, we signed agreements For the development of the first virtual air traffic tower in Alula and for projects to transform the country's power grid.

Finally, in Latin America and Southern Europe, with a 12% increase in order intake, we were able to strengthen our position with the acquisition of MQA for IT services in Colombia. On the other hand, we also made progress in our M and A strategy, which is a fundamental pillar to bolster our growth. Our key divisions and consolidate our presence in strategic defense and space, these being sectors where we focus most of our investment in line with our portfolio rotation strategy towards these sectors. Let us now talk about the sixth strategic line and that is boosting our investment in technological R and D. Innovation is at the very heart of Indra. We are the technology company and we are going to expedite our in technological development to galvanize that ourselves as leaders in aerospace, defense Indra advanced technologies. For this purpose, we are developing a technological roadmap to speed up the development of new products with advancements in microelectronics a AESA radars, gallium nitride, quantum technologies and advanced electronics. We want to take a leadership role in advanced digital technologies such as artificial intelligence, and quantum computing. The Indra technology project runs along these lines and is going to be a benchmark in our country.

I would advanced technology hub, will enable us to continue investing in M of critical talent, industrial development, [indiscernible] and self sustainability in line with our net zero target. All these efforts will consolidate us as a benchmarking technology and innovation. And of course, I want to now refer to our most important asset very engine of the company and our innovation is Talend. In 2024, we created 2,500 new technology jobs surpassing more than half of our target. Of 5,000 new positions by 2026 when we presented our strategic plan. For example, in aerospace and defense, the workforce grew by 14%, establishing us as a benchmark in the industry. In addition to attracting talent, we are strengthening their development and retention, achieving a reduction in voluntary turnover by more than three percentage points, therefore leaving double digit figures behind. Our commitment to talent has been recognized, for example, with a top employer seal for the seventh consecutive year and means siding turn was highlighted by LinkedIn in 2024. In short, we continue reinforcing our culture of excellence, alluring and retaining the best professionals to build the future of our company. And now let me take this opportunity to extend my appreciation to all of the company's teams for their effort and dedication in order to reach this first year.

Standing on such strong foundations in terms of progress. However, we still have a long way to go ahead of us. All in all, and as we will results, fiscal year twenty twenty four was a positive year for Indra, We achieved revenue of more than €84,800,000,000.0 with an EBITDA margin of 11.3% and an EBIT margin of 9% thereby consolidating a pathway of profitable and sustained growth. These results not only reflect the company's strong performance, but also lay a solid foundation to ensure that we meet our 2026 ambition. The plans for 2026 has clear cut and achievable goals that we are going to attain. Let us now talk about our 2024 financial results. 2024 was a record year for Indra, We posted solid results that reinforce our progress and enable us to look to the future with confidence and optimism. Our order backlog grew by 7%, ensuring greater stability and visibility in the business. Driven by the strength in defense, international expansion and some Key contracts. Order intake increased by 17% which Indra defense as well as new contracts in ATM in Canada, Colombia and Vietnam, which respectively. Revenue climbed by 11.5% therefore, reaching SEK 4,843,000,000.000 Indra.

Euros Beyond revenue growth, we were also able to improve profitability by one percentage point that is half. What we set out under the strategic plan, the EBITDA margin reached 11.3%, while EBIT margin grew up to 9%. Reflecting therefore operational improvements and a change in the business model mix. This performance resulted in a result 35% higher year on year with a cash generation of $328,000,000 over the period. As a result, we were able to reduce our net debt to negative levels closing the fiscal year with a net cash position standing at €86,000,000 As a result, we can now look into the future standing on solid grounds and with confidence So as you can see, this has been twelve months of intense work However, we were able to deliver positive results in the defense business. Order intake climbed by 29%, mainly thanks to the contribution from integrated systems and simulation. Revenue also grew successfully by 26% in fiscal twenty twenty. Four, driven by FCAS simulation as base. In addition to this double digit growth, we were able to maintain constant profitability within a detailed margin of 20% and an EBIT margin of 18%. They both be benchmark margins in the defense sector compared to our European PS.

Air traffic is one of Indranet Group's jewels, the decision to create its own division advancing its autonomy resulted in very good outcomes. Outstanding accounts in 2024 and this double digit growth trend continued throughout the full twelve months and the positive performance shown in order intake with a growth of 58% is a accounted for by contracts in Canada, Colombia and Vietnam as well as by the contribution of Park Air in Brazil. Similarly, sales increased by 30% across all geographies, thanks to both organic growth and the inorganic contribution of Park Air in The United Kingdom and Celex in The United States. If we now take a look at the Mobility division's results, order intake climbed by 18% projects in The United States. We are already present in five states in The United States. Sales slid by 1% due to declines in revenue from AMEA and America Indra margins improved significantly, thanks to a lower impact from problematic projects and a greater focus on profitability. If we now take a look at Minsight, we continue expand in our portfolio. Order intake and revenues Our benchmark growth rates in its industry compared to our peers. Margins continued to grow with the EDITA margin improving from 7.7% up to 8.1% and EBIT margin from 5.4% to 59%.

If we now take a look at our 2024 guidance, the first year of our strategic later in the future plan. We are surpassing all the objectives that we set aside at the beginning of the year and those revised in July. In terms of revenue, we were able to post €4,907,000,000 in local currency and €4,843,000,000 reported. Reflecting the aforementioned growth that exceeded expectations at the beginning of the year and at midyear. Final EBIT results also outstripped expectations reaching Indra million. Dollars Finally, in terms of free cash flow or EPS FCFs, we closed the year with €328,000,000 Indra in our updated guidance by up to €68,000,000 This outstanding result demonstrates our strong cash generation and financial management. Regarding our outlook and objectives for 2025, we expect to surpass €5,200,000,000 in revenue in local currency, which accounts for significant growth compared to €4,843,000,000 reported in fiscal twenty twenty four. Our EBIT target is to exceed $490,000,000 And finally, as for FCS, we aim to generate more than SEK €300,000,000 Miguel will now provide you with further details on some of our key financials. Thank you, Kosher Vicente. And let's now taking a look at the most relevant financial results.

Which reached €328,000,000 in the whole year. It is an excellent figure taken in account the non payment of €41,000,000 in the second quarter for in taxes linked to the twenty one, twenty twenty three remuneration plan. So once again, the performance of the fourth quarter was very positive. [indiscernible] Following the usual seasonal pattern of the company. And regarding the evolution of working capital, I would like to highlight the positive change in day sales outstanding, which is minus seven days compared to zero days in 2023. This is a result of our continuous operational effort to optimize cash flow generation. This improvement is mainly explained by a reduction of ten days in the average collection time and one day in the average [indiscernible] Which more than compensates for a slight increase in stock due to the business growth. Let's now try to well or explain the very positive evolution of our net financial debt. Throughout the year.

Given that we ended with a net cash position of SEK 86,000,000 compared to a net debt of EUR 107,000,000 in 2023 Indra. Out of all the different lines, I must highlight the exceptionally high operating cash flow NOK544 million which was NOK 19,000,000 higher than that of last year, [indiscernible] Thanks to the higher growth and operating profitability of all our divisions. As a result, The leverage ratio now stands at minus 0.2 times net debt to EBITDA. Which represents an improvement of 0.5% compared to December 2023. And last and on debt structure, I would like to highlight the reduction of gross debt to Indra million compared to over €700,000,000 in 2023 Indra. As a result, the average debt maturity stands at one point three years with an average cost of 4.2% and back cash position at the December of Indra million And now I'd like to give the floor to Ankelet Escobarno to close the presentation. Thank you, Miguel. As Jose Viteente mentioned, we are making or taking solid steps to achieve the objectives of our strategic [indiscernible] We have also seen that the results of 2024 exceed expectations, which is excellent news. And moreover, I am sure that we can improve the medium further We have favorable wins given and the current geopolitical situation I am fully committed to the change we're making.

Investing in technological capabilities and innovation to transform ourselves into a product and system company for the defense and space sectors. It is time to keep on growing and to realize our ambition of becoming [indiscernible] Please allow me to explain my vision of for the Indra Group in 02/1930 Indra. In Ground Vehicles, we will continue well, we're looking to be evolving with platforms such as WCVs and CSCs and new models, given ourselves the necessary capabilities to design and manufacture the vehicles of the future demanded by our our armed forces in defense electronics We will continue developing an advanced portfolio that will include radar sensors, electronic warfare and C4i. Also, our Command and Control Systems Increasing the use of AI In Ammunition and Weapons, we worked expand our offering with UAVs and anti UAS systems munitions and missiles, equipping ourselves with the necessary capabilities to manufacture them and deployment and deploying them in our armed forces. In Space, we would like to differentiate military and civil sectors. We will become a key European player in secure communications, surveillance and space services contributing to the protection and control of the space And additionally, we will secure our country's strategic capability in a sector that's important for national and European sovereignty as space In air traffic, we will reinforce and further accelerate our growth and our expansion focusing on key markets such as The U. S, where we just what we just read shortly.

Mobility, we will invest in intelligent transportation solutions, with more and more solutions and connected vehicles to transform the sector. In artificial intelligence, we will also focus on prioritizing development of artificial intelligence and other key technologies. [indiscernible] ensure multi domain superiority and maximize the automation of critical processes And finally, we will provide Minnside with greater flexibility to make the most appropriate decisions regarding the entry of a new partner And so we will keep on driving selective milligens and [indiscernible] relaunching our project Indra Ventures through which we will invest in companies or startups to boost their growth. And this vision will allow us to become a productive company and we will have autonomy to manufacture know this is a demanding challenge, but our achievements and the solid foundation that we have built make us help us be certain that we will succeed. It is time to accelerate and move forward stronger than ever. And this is the end of our presentation, our vision and the key elements regarding the this Indra of the future that we will work on. Thank you very much for your attention. And we can now have a Q and A session, and we'll be very happy to answer your questions.

Thank you. We will start the Q and A session. We will start with the participants that are here And we will start with the first question from Petrice. Well, Natir from Westinberg. Well, first of all, congratulations for your results and thank you very much for answering my questions. Three, taking the opportunity that the Chairman is here and appointment And I would like to know which is the roadmap or your vision for the company for the next three to five years? And second, As for the recent purchase of Ispezad, I would like to know if you're going to give more details about it. And last, I would like to know if you have advanced in the decision on payments or having a new partner in Minsight? Thank you. Great. Thank you. Thank you for your question. Well, on the roadmap for the next three to five years, Well, let's see.

Well, clearly, we have a defined strategy We are working very hard to implement it. And in the the short term, three to five years, it is not a too long of a term we would like to turn this company into a company that's devoted to that focuses around customer service and the laboring products on time and half of the capabilities within our own factories. And to do so, we have a strong plan, a strong investment plan to buy assets and equipment and machinery and increase the number of workers we have already grown by 2,500 new employees. And we like to recover capabilities that [indiscernible] in the hands of other vendors, so out of the scope of our company. And to do so, while the company presented a plan leading the future one year ago. [indiscernible] of course, following it, we are going to meet those objectives. [indiscernible] on the purchase of Ispersat, well, what can I say about the purchase of Ispersand?

Ispersad is is an asset. It is an essential asset for the company. It was part of a planned And And we want to turn space We want to reach €1,000,000,000 of turnover 02/1930.

And now, as you know, We have reached the commitment to acquire it. The company is not just it's not yet we'll probably close it in September. And the information we can share with you is what you've already got, which is exactly what Radea shared with us And Yes. And you have the third question. Of divestment. What about divestment? Well, in leading the future also mentioned that we were going to divest and we will divest if they are ready to be done But we will not carry out, but sales. We look at to find Well, to carry them out, if there's an opportunity to do so. And we will look in if it's good for the company. And today, as you company, as you can see, can carry out the acquisition of other companies or partners that can be included in our portfolio because we have the financial muscle to do so. And as you can see, as the results show, we don't really need to divest Even if they sell things to us before we make a decision. You. Next question, Carlos Dervino from Santander.

Thank you.

Carlos Vigneault, Santander. Two questions. Following the question from Beatrice on Mint side, when you're saying that you are not going to rush things up, I guess Indra past few months, you you have received some propositions What's the most relevant for you in that idea of not rushing Would you give priority to an industrial partner? Rather than a financial partner?

The well, the valuation of the Partner most important aspect. And second on defense, which are the specific capabilities you're missing within the company? And the things that you believe could be added to the company? Thank you.

Our workforce and our customers' means side has been built over the years And we have a very important team, not only here, but also in Latin America. We have to seek the best solutions for both our clients and for our work flows. You know that there are certain valuations because you at Santander are conducting your own assessment and valuation. And we also see what's happening in the media outlets. Very often, they carry out evaluations ahead of time. We know the valuations we have to stick to. And most importantly, when we sell means an extraordinary dividend, but rather to invest those funds in another company when the time comes. Such timing is critical for us in order to act in a responsible manner and in the best possible time. As for our defense capabilities, I come from the industrial engineering sector, and I'm really happy that the Chairman comes from similar background. I was rather surprised at the lag of manufacturing capabilities so far and we have to rationalize that because here we're not talking about cost anymore. And last year, I explained this. There are 16 radar families with a 10% standardization and we are working on another 11 families with a 60% standardization in the next three years, we have to secure lead time Indra face of the Ukraine conflict.

When we get offers, the key driver is when the materials will be delivered. And today, we need to improve if we really want to climb and increase our sales. David, you have another question.

Good afternoon. JV Capital. With the question of being said, we see an improvement of margins in the fourth quarter and can you please provide more visibility on the main levers for that margin improvement? And also what your outlook is for this business in 2025? Thank you. Thank you. [indiscernible] [indiscernible] we are keen on improving our margin and we've been working on different levels for the past two, three years, and I believe those are the levers you already know. They're basically be summarized in improving operations. And we've got [indiscernible] automation, including AI and software development, So that's the first group of levers. There's a second block that's linked to changing our offer mix. We come from the world of services, and now we're getting the world of projects with specific capabilities. So we're getting into data, AI, IoT and and different Vanguard technologies that let us defend higher margins. And the third group of levers is basically linked to geographical concentration. And Cosavitente was mentioning for the whole group. But in the case of MidSide, well, this is of course, low cost coke is very important. When we come from from being in dozens of countries.

And now we are focusing around the six or seven geographies where we have several thousand people. And to make sure that that local scale allows us to have better margins. And the geographical areas are the ones you already know, Spain, Italy, Mexico, Colombia and Brazil mainly. I'm missing some, but these are the three main groups of levers. They are allows us to increase our margins as well. And it is also true that in the fourth quarter twenty twenty four, as you mentioned, peak in our margin That's just circumstantial. We have reached a series of milestones. That allowed us to increase our sales, and that's why the margin was a bit higher. But in any case, the trend is the one you see. And I'm answering your second question about the outlook. For 2025, we see that We could be around 66.5%, that would be our margin. Be there comfortably And then don't say comfortably, then I'll probably ask for more Second question next question from Juan.

I'm from Alantra Equities. And I'd like to ask the Chairman about his vision around the defense business. What can you get in terms of market share or what is the size [indiscernible] the size of business for Internet, you could reach it about five years. And I see you have mentioned for the first time weapons and ammunition. Well, my very humble opinion, there isn't much overlap with what interest doing today. How do you believe you could develop this segment, especially taking into account that one of the main ammunition I mean one of the main manufacturers was sold shortly. [indiscernible] Thank you, Juan, for your questions. Well, in terms of size, I mean, well, size right now and the opportunities are huge. I mean, multiplying this has happened to other companies in the sector already. Some of them are, well, German or French. I mean, multiplying the business by 10, more the value by 10 Well, that's the great opportunity we've got. It's not because they did better than we did, because they did not start being better. They were just already, but it is not late. We can do it. We have made a decision to do it.

We have the means and the resources to it. We've got the professionals to it. And the opportunities to achieve it as well.

So In these investments and these idea of bringing back home manufacturing capabilities. We, well, the executive team believe that we're going to be able to meet the strategic plan two years in advance. I think that's This is an ambitious vision, I believe it's quite it's not too optimistic for the present times, but those are not made up by Indra. They actually stem from the geopolitical situation. So given that we are ready to carry them out and with the investments we've made last year, I mean, having a major stake at Tes and the new contracts for vehicles, we are going to focus our manufacturing capabilities and we're going to produce on time, with quality, We are trying to grow in the market, especially among Indra ground vehicle sector.

And the demand is around six or seven times higher Then and well, production capabilities. And that's why at Indra Indra, Indra has a lot of room to grow in that sector and that why we made a decision to invest in that sector. And mean, it's not such a big investment. We were already there. We just didn't have all the parts, all the pieces of the puzzle. Was not all integrated. So the vision of the company well, I'd like to mention that I think we're going to get to those €10,000,000,000 two years in France because we are in the right situation to do so. If we were much more optimistic, I think we could even make it even one year earlier. But let's say two, it was you write it down. And you asked about it in 2027.

So why ammunition and weapons? Well, That's not just like that. I mean, although you post it does make sense. I mean, we are manufacturing vehicles. We are integrating vehicles, and those vehicles have a ammunition and weapons. We are not going to sell the vehicles without cannon or the ammunition, it's the whole system has been delivered. And Indra is a system company. And we sell those systems. Loid ring ammunition that well, unlikely Ma'am, well, just some important to say today, but that's just ammunition. And it's another part of our company and we develop aircrafts or UAVs [indiscernible] the carry a lot, we don't manufacture it. We just buy it. It. But it needs to be part of our portfolio. We need to have those ammunition as part of our portfolio. And they are using artificial intelligence program missions [indiscernible] they choose the possible targets that the armies or that the military chooses. And that's why it is aligned with our products and aligned with the company that's going towards so far their integration and closer towards being the one. And I think we read the market right. And that's what where we're going towards because we have the chance to do it and there's a gap.

There to be able to grab it. Thank you. I think we've got one more question here. Yes, good afternoon. [indiscernible] Congratulations for your results. And first, I'd like to ask about Test Defense. Now you've you own 51% of it.

And it's one loan that there have been issues with the delivery. [indiscernible] Margigate, have you already felt some positive changes? Do you trust you're going to be able to meet the delivery schedule? [indiscernible] also, I thought I understood This sales of mint side would be used to Well, for new acquisitions, So There'll probably be nothing else in case there is no monetization coming from inside. Is that the case? Great, Ivan. Well, the fact that we got a majority stake at at Test, it's reasonable and the change has been big.

Well, and it's due to the loss of control I mean, I was involved in tests in my previous job So but the thing is that we hadn't lost control. There were four shareholders in that company. Were four of us. We had to agree and we needed to reach a consensus. So we're missing this or that. So So the fact that Indira I mean, now Indra is the one that organized it. There's just one party that sets the pace for the rest. And we have that great what the ability to set that pace and do that under three shareholders, [indiscernible] yes, they are shareholders. Not as much as Indra. Indra controls the company. Indra is the one that sets the pace. And so to speak, there are suppliers or vendors like any other vendor And the agreement is that Indira will be able to change the vendors and just have full control of the company.

We are still it's not just Diamond, but the company and I'm in charge of everything the following day. There's a process of [indiscernible] this process will probably finish in the next weeks. So now we are we are the ones who manage purchases, procurement terms and what's been produced and what it has to be done. And as you know, [indiscernible] We have already delivered the fixed vehicles. But they have been given to the buyers. And we have program and we've re checked an agreement with the Ministry of Defense And this program has suffered or we could say that they have suffered some delays, but it's actually not the case. It was hard to get a system of systems working can be a system or systems from with different vendors involved. I mean, was a bit harder than expected. To make sure everything worked perfectly So I mean, make sure all the gears were walking together. Was the tough part On divestments, on MIM side or any other asset Well, that opinion of or my opinion and also the opinion of Salvatorenti and the rest We are not going to divest to have to offer a dividend.

If we are going to divest it will be because we have a plan to invest in new assets that will provide more workload to help us go towards the plan our plan to make sure Indra is a defense company that the fourth economy in Europe deserves. Today, we haven't got that size, and we will get there. And to do so, We have our plan And as I mentioned earlier, we will try to get there two years in Fence.

And then we have another one in 2028. I will be ambitious enough [indiscernible] to be up there and be [indiscernible] 02/1935 to be player of €20,000,000,000 or whatever we might be. So to become a real a big player in the defense sector. Because I think we deserve it.

Okay. We are right on time. Don't know whether you have any closing remarks. Thank you all for attending this presentation. When we implemented the plan one year ago, many of you had some doubt about it. Now there's no doubt that this plan is already effect And as the Chairman said, our 02/1930 ambition is going to be delivered in 2028, which is not an easy task.

That is plenty of talent Therefore, our number one priority is to enhance lead time. And to this end, we have to prepare industrial in order to enhance agility across the organization. Thank you all for attending. [indiscernible] Thank you very much. With us come to the end of the presentation.