Slide 1: MIPS Q3 2018
MIPS Q3 2018 7 November, 2018
Slide 2: MIPS in brief
MIPS in brief 60 45 60 28 active 15 brands2 4 8 8 • MIPS is a market leader in helmet solutions protecting the brain against rotational motion 2011 2012 2013 2014 2015 2016 2017 302 • Patented technology based on over 20 years of research and testing, 300+ 212 partnered with some of the world’s lead
Slide 3: MIPS financial targets
MIPS financial targets >SEK 400m >40% net sales EBIT margin 2020 2020 3
Slide 4: Q3 Highlights
Q3 Highlights • Net sales growth at +88% in the quarter, +77% organic growth adjusted for currency effects • The good momentum in all three key categories continues, mainly with existing customers • Adjusted EBIT 40.7%, legal cost of SEK 0.6m (9.5) included • No US tariffs for helmets imported to Ch
Slide 5: Update on litigation situation
Update on litigation situation • MIPS and Bauer in agreement and all legal matters relating to the dispute now concluded • MIPS is currently not party in any other patent disputes at the moment 5
Slide 6: Q3 Net Sales development
Q3 Net Sales development • Strong growth in the quarter +88%, Net Sales development (SEKm) and quarterly growth rates* organic growth +77% 52% • Good performance across all three key 56 88% 51 categories Bicycle, Snow and Motorcycle 55% 29% 41 • Soft prior year comparator 55% 37 29% 70% 32 12% 69% 1
Slide 7: Q3 in figures
Q3 in figures 77% • Net Sales increased +88%, currency adjusted +77% • Gross profit up 86%, gross margin down with -0.8 p/p Organic growth • Lower OPEX, mainly from litigation costs in prior year • Adjusted EBIT SEK +20.8m, 40.7% adjusted EBIT margin, no adjustment of EBIT in 2018 40.7% • Cash – str
Slide 8: Q3 Gross profit and margin development
Q3 Gross profit and margin development • Gross profit up 86% to SEK 37.4m Gross profit (SEKm) and gross margin development • Gross margin down -0.8 p/p vs. % 75.8% 75.3% 75.2% 40.9 73.6% 37.4 40.0 Q3 2017 to 73.1% 74.2% % 70.6% 73.8% 73.3% 73.1% 35.0 71.6% 71.8% 71.1% 64.3% 30.6 % 60.4% 30.0 • Diffe
Slide 9: Q3 Adjusted EBIT margin development
Q3 Adjusted EBIT margin development • Adjusted EBIT increased with SEK 20.7m Adjusted EBIT (SEKm) and adjusted EBIT-margin development to SEK 20.8m (SEK 0.1m) • Adjusted EBIT margin 40.7% % 21.7 20.8 25 20 • No adjustment in EBIT in current year. % 13.7 14.6 15 Adjustment in previous years relates t
Slide 10: Q3 Balance sheet and cash flow
Q3 Balance sheet and cash flow • Tax losses carried forward now fully consumed • Strong improvement in operating cash flow from higher EBIT, but also from Accounts receivables Cash flow after operating activities (SEK m) • Cash and Cash Equivalents at SEK 220.8m, 31.0 Equity ratio 88% Key balance sh
Slide 11: Summary
Summary • Strong sales growth with +88%, +77% organic growth for the quarter 180 Last 12 month rolling 171 50% • Continued focus on growing existing 160 140 126 128 147 40% customers 120 100 97 110 117 34% 30% 87 75 • Increased awareness of MIPS drives strong 26% 80 67 30% 57 28% 30% 22% 20% 60 23%
Slide 12: 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 presenta