Slide 1: Mips' presentation of the Q3 2022 interim report
17 October 2022 Mips’ presentation of the Q3 2022 interim report 1
Slide 2: Key highlights
Key highlights • Net sales in third quarter down 39%, adjusting for currency effects organic growth was down 50%. YTD sales increase 11%. Decline fully explained by soft bike end market • Maintained assumption on short-term challenging bike end market, long-term outlook remains positive • Good outlo
Slide 3: Sport: Challenging bike end market, negative impact on net sales
Sport Challenging bike end market, negative impact on net sales • Challenging quarter in Sport with a decrease in net sales of 43%, YTD sales growth at 9% • Bike is the main contributor with a decrease in sales by 47% during the quarter • Retail inventory of bike helmets still unbalanced with high i
Slide 4: Moto: Good development in Moto
Moto Good development in Moto • Growth of 16% in the quarter despite a strong prior year comparator (117%). YTD growth 38% • Positive momentum in both on- and off-road helmets • Good increase of new helmet brands and models in the year, outlook for the category remains strong 20222022 I Q3 Iinterim
Slide 5: Safety: Modest sales, pipeline filling up and volume will increase going forward
Safety Modest sales, pipeline filling up and volume will increase going forward • In total ten different brands that have launched helmets with Mips’ solutions so far • Additional models launched during the quarter which will generate more volumes • Organization established to drive awareness and se
Slide 6: Our most active quarter
Our most active quarter • We participated in three different fairs during the quarter • Important to establish our position as leader in helmet safety and continue to increase awareness • Two important fairs in Q4; Motorcycle fair EICMA in Milan, Italy, and the winter sport fair ISPO in Munich, Germ
Slide 7: Supply chain
Supply chain • No financial impact in the quarter from disruptions in supply chain • Supply chain expected to remain unpredictable coming quarters 2022 I Q3 interim report 7
Slide 8: Development in our categories
CATEGORIES Development in our categories SPORT MOTO SAFETY Sport Q3 YTD Moto Q3 YTD Safety Q3 YTD Revenue SEKm 98 (172) 417 (381) Revenue SEKm 15 (13) 37 (27) Revenue SEKm 1 (1) 2 (1) Growth % -43 9 Growth % 16 38 Growth % - - 2022 I Q3 interim report 8
Slide 9: Development in the third quarter
FINANCIAL PERFORMANCE Development in the third quarter Q3 22 Q3 21 • Soft development in the third quarter with a decrease in net sales by 39%, adjusting for FX, sales decreased 50% organically Net sales 113 185 -39% • OPEX – continue to invest in strategic priorities Gross profit 78 136 -42% • EBIT
Slide 10: Development first nine month
FINANCIAL PERFORMANCE Development first nine month YTD YTD • Net sales the first nine months increased with 22 21 11%, adjusting for FX sales decreased 4% organically Net sales 456 410 11% • OPEX – continue to invest in strategic priorities Gross profit 328 300 9% • EBIT down 7% to SEK 205m (221), E
Slide 11: Balance sheet and cash flow
Balance sheet Cash flow from operating activities (SEKm) 97 and cash flow 71 81 69 56 55 49 37 29 24 23 20 15 12 • Cash and Cash Equivalents at SEK 8 493m (371) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 • Strong cash flow in the quarter, improved with SEK 26m to SEK 97m (71) M
Slide 12: Summary
Summary SEKm Net sales SEKm rolling 12 months • Soft quarter fully explained by a challenging bike EBIT%, rolling 12 months 726 662 654 end market 608 550 • Soft expectation for coming quarter, fully driven 467 by soft bike end market 391 365 54% 54% 312 52% 53% 53% • Continued investments in our st
Slide 13: Q&A
Q&A 2022 I Q3 interim report 13
Slide 14: Safety for helmets
2022 | Q3 interim repor Safety for helmets 4
Slide 15: 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