Slide 1: MIPS Year-end result presentation
FEBRUARY 10 2022 MIPS Year-end result presentation
Slide 2: Key highlights
Key highlights • Strong quarter with 41% net sales growth (35% organic). For the full year net sales increased with +67% (72% organic). • Performance mainly driven by bicycle, but good consumer demand in all categories • Strong improvement in EBIT and Operating Cash Flow • Challenging Supply chain i
Slide 3: We continue to increase our customer base
We continue to increase our Customer base 143 121 143 103 78 60 45 BRANDS 28 15 4 8 8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 883 729 883 583 448 302 212 66 121 MODELS 15 23 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 12.6 1.7 2.3 3.8 5.0 7.2 12.6M UNITS SOLD 10% TOTAL A
Slide 4: Sports: bicycle – Good performance continues
Sports: bicycle – Good performance continues • Strong sales performance continues in bicycle helmets • Good demand in all types of bicycle helmets • The challenges for helmet factories to meet demand remains, especially in high end models • Inventory in retail is still low. Our assumption is that bi
Slide 5: Sports: snow – 2021 was better than expected
Sports: snow – 2021 was better than expected • Good growth for snow helmet throughout the year, despite a soft end-market in 2021 • We continue to outperform the market, with existing and new customers rolling out MIPS in a larger part of their assortment • We see good consumer demand in all regions
Slide 6: Moto – soft quarter, fully explained by helmet factory priorities
Moto – soft quarter, fully explained by helmet factory priorities • Soft sales in the quarter with -22%, fully explained by bicycle helmets getting manufacturing priority over motorcycle helmets in factories. Good growth in orders received • First media campaign ever in MX during the fourth quarter
Slide 7: Safety – Strong customer base established in 2021
Safety – Strong customer base established in 2021 • We launched partnership with 9 different helmet brands, with 8 of them having MIPS equipped products on the market • We are creating an organization to continue to educate the market and to support sell-through with our partners • Volumes will star
Slide 8: Challenging supply chain
Challenging supply chain • Supply chain continued to challenge us during the year and the quarter, but we have managed the situation very well • During the fourth quarter some of the helmet factories that we worked with faced power restrictions and that reduced their capacity in the quarter • We exp
Slide 9: Continued investment in the MIPS brand and products
Continued investment in the MIPS brand and products • In November at the world’s largest Motorcycle fair, EICMA in Italy, we launched our new trade booth built on MIPS new visual identity. • We also launched our new concept, Virtual Testlab (VTL), which is a tool that provides our partners unique ca
Slide 10: Review of financial target and long term ambition
Review of financial target and long term ambition • The combination of great progress within Sport and MOTO and the new customer base in Safety along with the strong market development during the pandemic has led to a more positive outlook for MIPS growth opportunities • The Board of Directors have
Slide 11: Development in our different categories
Development in our different categories SPORTS MOTO MOTO SAFETY Fourth quarter/YTD Fourth quarter/YTD Fourth quarter/YTD Revenue, SEKm 190 (130)/570 (341) Revenue, SEKm 8 (10)/35 (24) Revenue, SEKm 1 (0)/3 (0) Growth, % 45/67 Growth, % -22/47 Growth, % 2713/751 No. of brands 130 (107) No. of brands
Slide 12: Development in the fourth quarter
Development in the fourth quarter Organic • Net Sales increased by 41%, organic growth was 35% growth • Gross profit up 41% and a gross margin of 73.0% (-20 bps) 35% • OPEX – continue to invest in strategic priorities • EBIT up 37% to SEK 104m (76), EBIT margin 52.6% (54.4) • Cash flow – strong incr
Slide 13: Development for the year
Development for the year Organic • Net Sales increased by 67%, organic growth was 72% growth • Gross profit up 68% and a gross margin of 73.2% (+50 bps) 72% • OPEX – continue to invest in strategic priorities • EBIT up 95% to SEK 326m (167), EBIT margin 53.6% (45.8) • Cash flow – strong increase of
Slide 14: Balance sheet and cash flow
Balance sheet and cash flow CASH FLOW FROM OPERATING ACTIVITIES (SEKm) • Cash and Cash Equivalents at SEK 450m (272) • Dividend of SEK 5.00 (3.50) per share, being proposed. Corresponding to 51% of net earnings • Equity ratio 76% (82) KEY BALANCE SHEET ITEMS AND CASH FLOW MIPS Group (SEKm) FY 21 FY
Slide 15: Summary
Summary • Strong fourth quarter closes a successful year Net sales and adjusted EBIT-margin 12 months rolling • Strong improvement in EBIT and operating cash flow, both in the quarter and full year • Helmet factories capacity challenged by power restrictions in the quarter • We do expect Supply chai
Slide 16: Q&A
Q&A
Slide 17: Disclaimer
DISCLAIMER Important message from MIPS AB This presentation has been prepared by MIPS AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentati