Mips Ab · OMXSTO:MIPS
Mips Ab — Investor Day (March 2022)
80 slides from Mips Ab's investor day presentation, March 2022
Slide 1: CMD 2022
ios x CMD 2022
Slide 2: Disclaimer
CMD 2022 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 p
Slide 3: Mips athlete: Kate Cortney
Mips athlete: Kate Cortney MTB XC World Champion and WC winner
Slide 4: Agenda
CMD 2022 Agenda 01 Our performance and what has changed 02 Our sustainability commitment 03 Our brand and our product 04 Our sales priorities 05 What does this mean in numbers 06 Wrap up 07 Q&A
Slide 5: Our performance and what has changed
CMD 2022 01 Our performance and what has changed
Slide 6: Our previous long-term targets
CMD 2022 Our previous long-term targets SEK 1bn >40% 50% Net sales by 2025 EBIT margin Dividend of net earnings
Slide 7: Performance has been stronger than planned
CMD 2022 Performance has been stronger than planned Net sales development EBIT development Dividend distribution 608 326 5 % 54 92 47 AGR 46 C 71 365 41 3 3. 5 168 268 51 111 2019 2020 2021 2019 2020 2021 2019 2020 2021 Net sales MSEK EBIT MSEK Dividend per share (SEK) % Dividend of net earnings EBI
Slide 8: Key wins
CMD 2022 Key wins We have established ourselves with great partners in the Safety category We have started to win in Moto We are winning in the U.S. We are starting to replicate our story in Europe We have doubled our competence in 3 years We have accelerated our investments in capabilities “All thi
Slide 9: We are here to talk about the future
CMD 2022 We are ahead of Our market our own plan. opportunity has increased. WHY ARE WE HERE We are here to talk about the future The market has All valid reason to grown more than we change our ambition anticipated. going forward
Slide 10: Our long term targets
CMD 2022 Our long term targets SEK 2bn Net sales by 2027 >50% 50% EBIT margin Dividend of net earnings
Slide 11: Ambitious but realistic targets
CMD 2022 Ambitious but realistic targets
Slide 12: Strong macro trends supporting our story
STRONG MACRO TRENDS SUPPORTING OUR STORY CMD 2022 ESG focus is increasing Helmet use Strong Safety @work increasing outdoor trend is key
Slide 13: Expected market growth in volume per annum
CMD 2022 MARKETS EXPECTED TO GROW Expected market growth in volume per annum VOLUME +5% 0% +3-5% +5% +5% PRICE SPORTS MOTO SAFETY
Slide 14: All of our categories remain strong
CMD 2022 STATUS OF THE BUSINESS All of our categories remain strong We see good demand in all our three categories We continue to invest for growth The world is expected to remain unpredictable
Slide 15: Next level in helmet development
CMD 2022 Next level in helmet development
Slide 16: Simulation in VTL, real testing
SIMULATION IN VTL REAL TESTING CMD 2022 VTL MIPS SNOW HELMET – PITCHED IMPACT
Slide 17: Mips awareness: North America
CMD 2022 MIPS AWARENESS North America 45%
Slide 18: Mips awareness: Europe
CMD 2022 MIPS AWARENESS Europe 35%
Slide 19: Total helmet market has grown
CMD 2022 400 SAFETY Mips’ total helmet +90 market has grown by 140m to 550m 310 85 MOTO 65 SPORTS M HELMETS +35 +15 50 50
Slide 20: Focus market has expanded to 195m helmets
CMD 2022 Mips’ focus market 110 has expanded to SAFETY 195m helmets +40 45 40 SPORTS MOTO 70 +15 +10 M HELMETS 30 30
Slide 21: Still a lot of untapped potential
CMD 2022 Still a lot of untapped potential 98% 94% OF TOTAL MARKET OF FOCUS MARKET
Slide 22: Reduce head injuries – Save more lives
CMD 2022 OUR VISION Reduce head injuries – Save more lives
Slide 23: Leading the world to safer helmets
CMD 2022 OUR MISSION Leading the world to safer helmets
Slide 24: Leader in helmet safety
CMD 2022 OUR POSITION Leader in helmet safety
Slide 25: Our strategy in three key pillars
OUR STRATEGY IN THREE KEY PILLARS CMD 2022 Grow existing business Open up new channels Capture new and markets opportunities within helmet safety
Slide 26: What does that actually mean?
OUR STRATEGY IN THREE KEY PILLARS CMD 2022 What does that actually mean? Grow existing business Open up new channels Capture new and markets opportunities within helmet safety
Slide 27: A paradigm shift
CMD 2022 MIPS WILL BE MORE THAN MIPS A paradigm shift Focus will not only be rotational protection We will optimize the whole helmet performance
Slide 28: Our sustainability commitment
CMD 2022 02 Our sustainability commitment Karin Rosenthal Chief Financial Officer
Slide 29: Our focus areas in sustainability
OUR FOCUS AREAS IN SUSTAINABILITY CMD 2022 Our Our Our supply employees product chain
Slide 30: Growth and environmental impact
CMD 2022 G R OWT H AND E NV I R ONME NT AL I MP AC T t C02 e 5 0K 4 0K 30K 2 0K 1 0K 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 So ld units If no ac tio n 1 . 5 degree ambitio n ( Sc ienc e B as ed T argets )
Slide 31: Total climate emissions
TOTAL CLIMATE EMISSIONS TOTAL 9,400 tco2e Hi MANUFACTURING Electricity Raw materials Other 46% 48% 1% Total OTHER Refrigerants, AC Distribution Other 95% 1% 2% 2% Total 5% CMD 2022 xX ioe
Slide 32: Of our emissions is from producing our products
CMD 2022 Of our emissions is from producing our products
Slide 33: Materials, energy
MATERIALS ENERGY
Slide 34: Science based targets, UN Global Compact, circular offering
CMD 2022 Science based Un – global Circular product targets compact offering
Slide 35: Leading the world to safer and more sustainable helmets
CMD 2022 Leading the world to safer and more sustainable helmets
Slide 36: The Mips brand and our product
CMD 2022 03 The Mips brand and our product Fredrik Kjellberg Chief Marketing Officer
Slide 37: Our tagline
CMD 2022 OUR TAGLINE
Slide 38: Willingness to pay
CMD 2022 VOLUME PRICE Global sales premium “If you know Mips, you buy Mips.” 36% WILLINGNESS TO PAY 35%
Slide 39: PR - Widening the scope
CMD 2022 01 PR - Widening the scope Total reach in bn 5.1 3.9 “The Mips label usually adds twenty to forty 2.5 bucks to the price – but simply do not buy a 1.4 helmet that does not have it, there's no sense in that, and every major manufacturer offers Mips.” 2018 2019 2020 2021
Slide 40: Paid media – Reaching wide
CMD 2022 02 Paid media – Reaching wide
Slide 41: In-store concept – Claiming our space
CMD 2022 03 In-store concept – Claiming our space
Slide 42: E-tail – Support sell-through
CMD 2022 04 E-tail – Support sell-through
Slide 43: CMD 2022
(o.5 Brandon Semenuk Henrik
Slide 44: Design DNA makeover
CMD 2022 Design DNA Makeover
Slide 45: Blend in – or stand out
PRODUCT DIFFERENTIATION Blend in – or stand out
Slide 46: Attention to detail
PREMIUM TEC CALLOUTS Attention to detail
Slide 47: Highlighting safety features
CMD 2022 VISIBLE TECHNOLOGY Highlighting safety features
Slide 48: Our sales priorities
CMD 2022 04 Our sales priorities Johan Sauer Head of Sales
Slide 49: The market opportunity has grown
CMD 2022 Category Updated total Updated Mips market focus market Bike 50 35 Snow 6 6 EQ 3 2 Team 2 1 The market Other 4 1 Total Sport 65 45 opportunity has On-Road 78 34 grown Off-Road 7 6 Total Moto 85 40 Industry 390 100 LEAF 10 10 Total Safety 400 110 Total 550 195
Slide 50: Our business is doing extremely well
CMD 2022 We are Brand awareness outperforming the increase market Our business is doing extremely well Independent testing and new standards
Slide 51: We have a great customer base
CMD 2022 We have a great customer base Top priority: Organic growth
Slide 52: Sports
CMD 2022 Sports
Slide 53: Sports category: winning with existing partners
SPORTS CATEGORY: CMD 2022 WINNING WITH EXISTING EXISITING PARTNERS PARTNERS 01 02 Keep on winning Replicate U.S. success in the U.S. in Europe
Slide 54: It's time to focus on the kids
CMD 2022 It’s time to focus on the kids
Slide 55: Moto
CMD 2022 Moto
Slide 56: Trusted by the best
CMD 2022 Trusted by the best 34 156 95% Combined AMA Supercross & Combined Supercross & Pro Total number of factory and Pro Motocross podium finishes Motocross victories for riders factory-supported riders for riders equipped with Mips equipped with Mips equipped with Mips Mips partners:
Slide 57: Top priorities in Moto
TOP PRIORITIES IN MOTO CMD 2022 01 02 03 Keep on winning Replicate U.S. success Convince on-road brands, in the U.S. in Europe it starts with racing.
Slide 58: Safety
CMD 2022 Safety
Slide 59: We have established a great base
CMD 2022 We have established a great base 10 signed and announced helmet partners largest Nordic construction companies now offer at least 3 out of 5 one helmet with Mips to their employees. In other words: Construction companies choosing to make Mips available to their workers.
Slide 60: Now it is about generating volumes
CMD 2022 NOW IT IS ABOUT GENERATING Volumes We have the brands We are working with the right partners We are building the organization
Slide 61: Actions to grow the existing business across all categories
CMD 2022 Support sell Educate the crowd through Actions to grow the existing business across all categories Grow penetration
Slide 62: Open up new markets and channels
CMD 2022 Open up new markets and channels New channels New markets New helmet opportunities
Slide 63: Get Mips out there in volumes
CMD 2022 Get Mips out there In volumes
Slide 64: New markets
CMD 2022 New markets
Slide 65: Capture new opportunities in helmet safety
CMD 2022 Capture new opportunities in helmet safety
Slide 66: Capture new opportunities in helmet safety
CMD 2022 Capture new opportunities in helmet safety Competence Aftermarket & add-ons New innovation
Slide 67: Financials
CMD 2022 05 Financials Karin Rosenthal Chief Financial Officer
Slide 68: Previous financial targets 2025 vs new targets 2027
CMD 2022 Previous financial New financial targets 2025 targets 2027 >SEK 1bn net sales by 2025 >SEK 2bn net sales by 2027 >40% EBIT margin >50% EBIT margin >50% dividend of net earnings Unchanged
Slide 69: Net sales bn SEK
CMD 2022 Net sales bn SEK - CAGR of 22% - Built up by three parts: - Grow existing business - Open up new channels and markets - Capture new opportunities 0.6 2 2021 2027
Slide 70: Enables >50% EBIT
CMD 2022 MIPS’ FINANCIAL MODEL Enables >50% EBIT Ingredient brand with a highly scalable business model. Continued strong growth. Fuel awareness, we will increase marketing spend to 7% of net sales R&D: Research and product is key, we will continue to invest heavily with 5% of net sales Enables an E
Slide 71: Enables >50% dividend
CMD 2022 ASSET LIGHT MODEL Enables >50% dividend Asset light model, outsourced production, limited finished goods inventory Invoicing at delivery Investments in IP and testing facilities, no investments in manufacturing Enable a dividend payout of >50%
Slide 72: Granularity of reporting
CMD 2022 Granularity of reporting Quarterly net sales per category (Safety, Moto, Sports) Quarterly net sales per region Strategy to Increase our value proposition per sold helmet: No yearly reporting on volume No reporting on number of brands or models This reporting format will be applied from Q2
Slide 73: Wrap up
CMD 2022 06 Wrap up Max Strandwitz Chief Executive Officer
Slide 74: Our strategy in three key pillars
OUR STRATEGY IN THREE KEY PILLARS CMD 2022 Grow existing business Open up new channels Capture new and markets opportunities within helmet safety
Slide 75: First of all: We have the vision
CMD 2022 First of all: We have the vision
Slide 76: We have the opportunity
CMD 2022 We have the opportunity
Slide 77: We have the capabilities
CMD 2022 We have the capabilities
Slide 78: Let's get going
CMD 2022 Let’s get going
Slide 79: It's time to become the true leader in helmet safety
CMD 2022 It’s time to become the true leader in helmet safety
Slide 80: Mips Safety for helmets
Mins Safety for helmets