Slide 1: MIPS' presentation of the year-end report for 2019
MIPS’ presentation of the year-end report for 2019 13 February 2020
Slide 2: Key Highlights
KEY HIGHLIGHTS • Good growth in the fourth quarter with +41% increase of net sales. Organic growth was +33% • Production volumes are getting back to “normal” after trade tariff slowdown in the third quarter • Strong expansion in terms of models and brands during the year • Higher trust in the MIPS b
Slide 3: MIPS continues to expand its customer base
MIPS CONTINUES TO EXPAND ITS CUSTOMER BASE • In 2019, we have delivered MIPS BPS to 103 brands all over 103 103 the world, and all our top 10 customers grew with MIPS in active 60 78 45 2019 brands 8 8 15 28 (2019) 4 2011 2012 2013 2014 2015 2016 2017 2018 2019 • We grew in all categories and all ge
Slide 4: The trust in the MIPS brand has increased
THE TRUST IN THE MIPS BRAND HAS INCREASED • The multisport brand Bollé and the lifestyle brand Nutcase have communicated that they will offer MIPS BPS in all their helmet models • Both brands will convert their whole range, conversion projects already started • Bollé is the first brand to offer MIPS
Slide 5: Update regarding the corona virus
UPDATE REGARDING THE CORONA VIRUS • Both the main part of MIPS’ production and the helmet manufacturers are located in China • The helmet manufacturing sites are mainly located in the Guandong area (outside Hongkong), over 1,000km from the Hubei area (Wuhan) • Factories have resumed production after
Slide 6: Net sales development in fourth quarter
NET SALES DEVELOPMENT IN FOURTH QUARTER • Good performance with 41% growth in the quarter, Net Sales development (SEKm) and quarterly growth rates* an organic growth of 33% • Growth mainly driven by existing customer base 41% expanding their assortment with MIPS 49% 88 83 • Growth in all our categor
Slide 7: Development in fourth quarter
DEVELOPMENT IN FOURTH QUARTER • Net Sales increased 41%, organic growth was 33% • Gross profit up 41%, gross margin flat, adjusting for acquisitions gross 33% margin up 90 bps to 75.8% • OPEX – continue to invest in strategic priorities Organic growth • Negative impact under other operating income a
Slide 8: Full year 2019
FULL YEAR 2019 • Net Sales increased 39%, organic growth was 29% • Gross profit up 40%, gross margin +20 bps, adjusting for acquisitions 29% gross margin up 140 bps to 75.3% • OPEX – continue to invest behind strategic priorities Organic growth • Negative impact under other operating income and expe
Slide 9: Adjusted EBIT and adjusted EBIT margin development in fourth quarter and full year
ADJUSTED EBIT AND ADJUSTED EBIT MARGIN DEVELOPMENT IN FOURTH QUARTER AND FULL YEAR • EBIT increased with SEK 10.3m to SEK 39.0m (28.7) • Adjusted EBIT increased with SEK 11.0m Adjusted EBIT (SEKm) and adjusted EBIT margin development to SEK 39.7m (28.7). Adjusted EBIT margin was 39.7 43.0 38.0 45.4%
Slide 10: Balance sheet and cash flow
BALANCE SHEET AND CASH FLOW • Cash flow from operating activities in the quarter SEK 19.7m (23.8), full year SEK 63.2m (69.1) • Cash and Cash Equivalents at SEK 191.6m (242.5) Cash flow from operating activities (SEKm) • Dividend of 3.00 SEK (2.50) being proposed 31.0 • Equity ratio 87% (86) 23.8 24
Slide 11: Summary
SUMMARY • Good performance in the fourth quarter ends a very Net sales and adjusted EBIT-margin 12 months rolling successful year 300 41% 41% 41% 45% • 39% Significant increase in models and brands 250 34% 38% 268 40% 35% 30% 30% 241 243 • More trust in MIPS brand and more 100% 200 30% 28% 26% 214 1
Slide 12: Q&A
Q&A
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