Slide 1: Mips' Q2 2023 Interim Report presentation
20 July 2023 Mips’ Q2 2023 Interim Report presentation 1
Slide 2: Key highlights
Key highlights • The soft demand in bike impacted sales and profit in the second quarter as expected. Net sales was down 51%, adjusting for currency effects organic development was down 53%. • We expect to see a gradual increase in demand and we assess that the Q3 will continue to be challenging but
Slide 3: Gradual recovery of the bicycle market
Sport Sport Gradual recovery of the bicycle market • Challenging quarter in Sports with a decrease in net sales of 53% • The soft start of the season in bike, slowed down inventory improvement. Sales in retail in many geographies still above pre-pandemic numbers. • Softer performance in snow vs. pri
Slide 4: Challenging quarter again in Moto, full year ambition of good growth remains
Moto Challenging quarter again in Moto, full year ambition of good growth remains • Soft development in the quarter in Moto with a decrease in net sales of 42% • Moto market are slower in general but not to the extent seen in bike • Major impact from implementation of new ECE 22.06 standard and chan
Slide 5: Continued strong development in line with our ambitious plans
Safety Continued strong development in line with our ambitious plans • Good performance in Safety and we are following our plan • Strong development in the US market and several new listings with major distributors in Europe • Ambitious autumn with the two largest fairs of the year taking place in O
Slide 6: Development of net sales in our categories
CATEGORIES Development of net sales in our categories SPORT MOTO SAFETY Sport Q2 YTD Motorcycle Q2 YTD Safety Q2 YTD Revenue SEKm 91 (194) 169 (319) Revenue SEKm 7 (11) 14 (23) Revenue SEKm 4 (1) 6 (1) Growth % -53 -47 Growth % -42 -37 Growth % 439 363 2023 I Q2 Interim report 6
Slide 7: Development in the second quarter
FINANCIAL PERFORMANCE Development in the second quarter • Soft development in the second quarter with a decrease in SEKm Q2 23 Q2 22 net sales by 51%, adjusting for FX, sales decreased 53% organically Net sales 102 206 -51% • Gross profit decreased with 53%. Gross margin of 70.0% (73.4), decrease du
Slide 8: Development first six months
FINANCIAL PERFORMANCE Development first six months YTD • Net sales during the first six months decreased YTD 23 22 with 45%, adjusting for FX sales decreased 48% organically Net sales 190 343 -45% • OPEX – continue to invest in strategic priorities Gross profit 134 250 -47% • EBIT down 77% to SEK 38
Slide 9: Balance sheet and cash flow
Balance sheet Cash flow from operating activities (SEKm) and cash flow • Cash and Cash Equivalents at SEK 356m (398). Dividend of SEK 144m paid out in May (5.50 per share). Mips does not hold any loans. Mips group (SEKm) Q2 23 Q2 22 FY 22 • Operating cash flow in the quarter amounted to SEK 9m (55)
Slide 10: Summary
Summary • Challenging times but our outlook remains unchanged. What we are experiencing is not due to lack of demand, but effects of a covid-unwind. • Gradual recovery of the bike market, retail inventory normalized, our customers inventory still high after the slow start of the year • High customer
Slide 11: Q&A
Q&A 2023 I Q2 Interim report 11
Slide 12: Mips Safety for helmets
Mins Safety for helmets
Slide 13: 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