Mips Ab · OMXSTO:MIPS
Mips Ab — Q3 2023 Earnings Presentation
14 slides from Mips Ab's earnings presentation, Oct 26, 2023
Slide 1: Mips' Q3 2023 Interim Report presentation
26 October 2023 Mips’ Q3 2023 Interim Report presentation 2023 I Q3 Interim report 1
Slide 2: Key highlights
Key highlights • Soft quarter with a decline of 32% in net sales, adjusting for currency effects organic growth was down 33%. Soft performance in bike and Moto. • Good start of the fourth quarter in terms of orders received and the indication from our customers is that the markets will recover in 20
Slide 3: Sport – still impacted by inventory adjustments
Sport Sport Sport – still impacted by inventory adjustments • Challenging quarter in Sport with a decrease in net sales of 29%, mainly explained by soft sales development in the beginning of the quarter • Erratic sales development in the US end consumer market created uncertainty of short-term outlo
Slide 4: Disappointing performance in Moto, mainly driven by slower markets
Moto Disappointing performance in Moto, mainly driven by slower markets • Soft development in the quarter in Moto with a decrease in net sales of 68% • We do see a much more cautious retail environment especially for the Mips important US market. Softer performance to remain near term. • We have lau
Slide 5: Continued strong development in line with our ambitious plan
Safety Continued strong development in line with our ambitious plan • Good performance in Safety and we are following our plan • We continue to see good interest in both the US and the European market • Two new partnership launched in the category in connection with two fairs, the global brand MSA a
Slide 6: Exciting investment in sensor technology
Investment in the Quin technology Exciting investment in sensor technology • A first strategic investment towards exploring the opportunities of sensor technology • We consider the Quin technology to be leading in the sensor technology market • The technology will enable us to gather additional data
Slide 7: Development of net sales in our categories
CATEGORIES Development of net sales in our categories SPORT MOTO SAFETY Sport Q3 YTD Motorcycle Q3 YTD Safety Q3 YTD Revenue SEKm 69 (98) 239 (417) Revenue SEKm 5 (15) 19 (37) Revenue SEKm 3 (0) 9 (2) Growth % -29 -43 Growth % -68 -49 Growth % 482 373 2023 I Q3 Interim report 7
Slide 8: Development in the third quarter
FINANCIAL PERFORMANCE Development in the third quarter • Soft development in the third quarter with a decrease in net SEKm Q3 23 Q3 22 sales by 32%, adjusting for FX, net sales decreased 33% organically Net sales 77 113 -32% • Gross profit decreased with 28%. Gross margin of 73.1% (69.0), increase d
Slide 9: Development first nine months
FINANCIAL PERFORMANCE Development first nine months SEKm YTD 23 YTD 22 • Net sales during the first nine months decreased with 42%, adjusting for FX sales decreased 44% organically Net sales 266 456 -42% • OPEX – continued to invest in strategic priorities Gross profit 190 328 -42% • EBIT down 74% t
Slide 10: Balance sheet and cash flow
Balance sheet Cash flow from operating activities (SEKm) and cash flow • Cash and Cash Equivalents at SEK 371m (493). Mips does not hold any loans. • Operating cash flow in the quarter amounted to SEK 12m (97) Mips group (SEKm) Q3 23 Q3 22 FY 22 • Investment in Quin of SEK -80m Total assets 703 782
Slide 11: Summary
Summary • Soft quarter, driven by weak markets still influenced by inventory reductions and softer consumer sentiment • Good development in Safety, with strong partnerships announced in October • Strong trends in awareness and market share development despite challenging market conditions • Continue
Slide 12: Q&A
Q&A 2023 I Q3 Interim report 12
Slide 13: Mips Safety for helmets
Mins Safety for helmets
Slide 14: 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