Slide 1: MIPS' presentation of the Q2 interim report 2020
MIPS’ presentation of the Q2 interim report 2020 23 JULY 2020
Slide 2: Key highlights
Key highlights • Soft performance in the quarter with -20% net sales growth (-19% organic), fully explained by impacts from covid-19 - Snow helmets key driver of the soft performance in the quarter, partial recovery expected - Moto soft performance in the quarter, recovering quickly - Bike, good gro
Slide 3: Snow – Weak sales in the quarter
Snow – Weak sales in the quarter • Major uncertainty regarding impacts of covid-19 pandemic - will consumers be restricted from traveling next winter season? - will consumers prioritize winter sports next winter? • Late ordering pattern – we are still receiving orders for next season which is normal
Slide 4: Bike – Strong demand for MIPS
Bike – Strong demand for MIPS • Very high demand for MIPS’ solutions in bike helmets • Expected strong recovery in volumes coming quarters • Increase both in bike helmets for commuting and recreational use partly supported by governmental investments in infrastructure • Key demand increase in US and
Slide 5: Moto – Soft sales but recovering
Moto – Soft sales but recovering • Customers acted very cautiously due to uncertain market • One new brand (ICON) in the quarter launched helmets equipped with MIPS and we do have high customer interest in category • Even though there was very soft sales of Motorcycles in the beginning of the pandem
Slide 6: Safety – Good development
Safety – Good development • We have delivered our first MIPS solutions to helmets for Search and Rescue (SAR) and Law Enforcement and Armed Forces (LEAF) • The LEAF order is a test order but strategically important to get momentum also within LEAF helmets • Getting recognition within SAR is valuable
Slide 7: Sharpening the brand platform
Sharpening the brand platform • One key strategic initiative is to strengthen MIPS as a brand • MIPS should be the obvious choice when buying a helmet • A revision of our brand platform started in Q4 2019 – work accelerated during Q1-Q2 2020 • We have refreshed our brand platform - Updated logo - Sh
Slide 8: Development in our different categories
Development in our different categories SPORTS MOTO MOTO SAFETY Second quarter/YTD 2020 Second quarter/YTD 2020 Second quarter/YTD 2020 Revenue, SEKm 64 / 114 Revenue, SEKm 2/8 Revenue, SEKm 0/0 Growth, % -18% / -4% Growth, % -55% / -9% Growth, % -/- No. of brands 98 No. of brands 21 (+1) No. of bra
Slide 9: Development in the second quarter
Development in the second quarter • Net Sales decreased by 20%, organic growth was -19% Organic • Gross profit down 20%, gross margin down 40 bps to 74.2%. growth Adjusting for acquisitions, gross margin up 70 bps to 75.3% • OPEX – continue to invest in strategic priorities -19% • Adjusted EBIT was
Slide 10: Development first six months
Development first six months • Net Sales decreased by 5%, organic growth was -7% Organic • Gross profit down 6%, gross margin down 130 bps to 72.7%. growth Adjusting for acquisitions, gross margin down 30 bps to 73.7% • OPEX – continue to invest in strategic priorities -7% • Adjusted EBIT was SEK 37
Slide 11: Balance sheet and cash flow
Balance sheet and cash flow CASH FLOW FROM OPERATING ACTIVITIES • Cash flow from operating activities stable at SEK 23m (SEKm) (24) in the quarter • Dividend paid in May was SEK -79m (-63) and SEK 18m received from payment under newly launched warrant program • Cash and Cash Equivalents at SEK 212m
Slide 12: Summary
Summary • Soft quarter driven by weak sales in snow helmets Net sales and adjusted EBIT-margin 12 and in Moto months rolling • We expect a strong recovery during the autumn with high demand in bike helmets and in Moto • Good momentum despite a challenging quarter. High project activity, more brands
Slide 13: Q&A
Q&A
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