Slide 1: Mips' presentation of the Year-end Report 2023
8 February 2024 Mips’ presentation of the Year-end Report 2023 1
Slide 2: Key highlights
Key highlights • Soft quarter with a decline of 15% in net sales, adjusting for currency effects organic growth down 13%. • Trend change vs. previous quarters with growth in the bike sub-category, restrained ordering in snow and challenging situation in Moto remains. • Positive momentum in orders re
Slide 3: Sport – growth in bike, hesitant behavior in snow
Sport Sport Sport – growth in bike, hesitant behavior in snow • Challenging quarter in Sport with a decrease in net sales of 10%, fully explained by soft snow sub- category, bike back to growth again in the quarter. • Bike sub-category progressing well. We continue to see positive order momentum in
Slide 4: Soft performance in Moto continues
Moto Moto Soft performance in Moto continues • Soft development in the quarter in Moto with a decrease in net sales of 66%. • We do see a more cautious retail environment especially for the important US market. Softer performance to remain near-term. • We have launched several initiatives to improve
Slide 5: Continued strong development in line with our ambitious plan
Safety Continued strong development in line with our ambitious plan • Good momentum in Safety continues and we are following our plan. • We continue to see good interest in both the US and the European market. • 6 new models equipped with the Mips technology launched at the large US tradeshow, World
Slide 6: Great delivery meeting our sustainability targets
Sustainability Great delivery meeting our sustainability targets All key sustainability targets for 2023 were met • Emission reduction of more than 20% during the year, ahead of our SBTi ambition. • Third party audits delivered in full to strengthen alignment with UN Global Compact. • Conversion pro
Slide 7: Development of net sales in our categories
CATEGORIES Development of net sales in our categories SPORT MOTO SAFETY Sport Q4 YTD Motorcycle Q4 YTD Safety Q4 YTD Revenue SEKm 85 (95) 323 (511) Revenue SEKm 3 (10) 22 (47) Revenue SEKm 3 (2) 12 (4) Growth % -10 -37 Growth % -66 -53 Growth % 5 181 2023 I Year-end report 7
Slide 8: Development in the fourth quarter
FINANCIAL PERFORMANCE Development in the fourth quarter • Soft development in the fourth quarter with a decrease in net SEKm Q4 23 Q4 22 sales by 15%, adjusting for FX, net sales decreased 13% organically. Net sales 91 107 -15% • Gross profit decreased with 17%. Gross margin of 70.2% (72.3), decreas
Slide 9: Development for the full year
FINANCIAL PERFORMANCE Development for the full year SEKm YTD 23 YTD 22 • Net sales during the full year decreased with 37%, adjusting for FX, sales decreased 39% organically. Net sales 357 563 -37% • OPEX – continued to invest in strategic priorities Gross profit 253 406 -38% • EBIT down 69% to SEK
Slide 10: Balance sheet and cash flow
Balance sheet Cash flow from operating activities (SEKm) and cash flow • Cash and Cash Equivalents at SEK 408m (532). Mips does not hold any loans. • Operating cash flow in the quarter amounted to SEK 31m (47). YTD YTD Mips group (SEKm) Q4 23 Q4 22 23 22 • Dividend of SEK 6.00 (5.50) per share, Tota
Slide 11: Summary
Summary • Soft quarter but change in trends. Good to see the important sub-category bike back in growth again. • We do expect recovery throughout 2024. Our assumption is that our sales will reflect market sell out, rather than our customer de-stocking. • Increase in dividend proposed. Strong financi
Slide 12: Q&A
Q&A 2023 I Year-end report 12
Slide 13: Mips Safety for helmets
Mins Safety for helmets
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