MIPS presentation of the interim report for the third quarter 2019 - - PowerPoint PPT Presentation
MIPS presentation of the interim report for the third quarter 2019 - - PowerPoint PPT Presentation
MIPS presentation of the interim report for the third quarter 2019 8 November 2019 KEY HIGHLIGHTS Increasing interest in MIPS across all geographies and categories. New German customers implementing MIPS technology, important for
KEY HIGHLIGHTS
2019
- Increasing interest in MIPS across all geographies and categories. New German customers
implementing MIPS technology, important for accelerated growth in Europe
- Trade tariffs U.S. / China impact volumes in the quarter. No change in consumer demand.
More customers and models than ever using the MIPS technology
- Innovators of MIPS’ technology awarded the prestigious Polhem prize
- New strategic plan and targets for 2025 announced at MIPS’ Capital Markets Day held in
September
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NEW BRANDS LAUNCHING HELMETS EQUIPPED WITH MIPS TECHNOLOGY
2019
- In August at the worlds largest bike fair, Eurobike, three for MIPS new key
customers, UVEX, Alpina and KED, launched helmets with MIPS technology
- Additionally, the brand CUBE has launched helmets equipped with MIPS
technology
- The new brands gives us an even better position to increase penetration
and growth in Europe
- Renewed collaboration with POC – first (child) helmet with MIPS
technology will be launched next summer and additional models in 2021 and 2022
- MIPS now cooperates with the major brands in the Bike and Snow
categories Good position to drive further growth within the Sports helmet category
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INNOVATORS OF MIPS TECHNOLOGY RECEIVED POLHEM PRIZE
2019
- Innovators of the MIPS technology has been awarded
the Polhem Prize, Sweden’s oldest and most prestigious technical award
- Peter Halldin (MIPS’ Chief Science Officer), Hans von
Holst and Svein Kleiven (Royal institute of technology in Stockholm, KTH) received the award for their work with the MIPS technology
“Being awarded the Polhem Prize is a great honor for us. Our ambition has always been to reduce the risk of brain damage for helmet users worldwide. We believe that protection against rotational motion in helmets should be as obvious as having seat belts in cars”, says Peter Halldin, Chief Science Officer at MIPS. Peter Halldin Hans von Holst
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>SE >SEK 1bn
net sales
2025 >40% 40%
EBIT margin
>50% 50%
dividend of net earnings
MIPS’ CAPITAL MARKETS DAY
2019 5
- New long-term strategy and financial targets were
presented at our Capital Markets Day in September
- New strategy has been built around three key helmet
categories being Sports, Moto and Safety
- MIPS’ addressable market has increased from 43 million to
130 million helmets sold annually
- MIPS’ new long-term financial targets are:
- Grow net sales to more than SEK 1 billion by 2025
- Maintaining an underlying EBIT margin of more than 40%
- Ordinary dividend above 50% as share of annual net earnings
3 14 13 20 10 24 21 32 21 37 27 41 24 56 51 62 45 83 53 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 2018 2019
NET SALES DEVELOPMENT IN THIRD QUARTER
2019
- Soft performance with 3% growth in the quarter,
- rganic growth of -6%
- Volume impacted by trade tariff implementation
in the US market
- Net sales growth 38% year to date, organic
growth of 28%
Net Sales development (SEKm) and quarterly growth rates*
274% 70% 69%
55% 105% 55% 29% 29% 12% 52% 88% 53% 91% 49%
*No u underly lyin ing growt wth r rates a availa ilable le for 2 2015
3%
Cha hang nges i in ne n net s sales % % 2019 19 2019 19 Jul-S
- Sep
Jan an-Sep Organic growth
- 6%
28% Changes in exchange rates 7% 10% Structural changes 2% 1% Total al 3% 3% 38% 8%
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DEVELOPMENT IN THIRD QUARTER
2019
- Net Sales increased 3%, organic growth -6%
- Gross profit up 3%, gross margin down with -0.1 p/p,
adjusting for acquisitions gross margin up 1.7 p/p to 74.8%.
- OPEX – continue to invest behind strategic priorities
- Adjusted EBIT SEK 20.9m (20.8), 39.5% adjusted EBIT
margin (40.7)
- Cash flow – operating cash flow of SEK 11.6m (31.0)
- 6%
39.5% 11.6
Organic growth Adjusted EBIT margin Operating cash flow
(SEKm)
MIPS Group (SEKm) Q3 19 Q3 18 % YTD 19 YTD 18 % FY2018
Net sales 52.9 51.2 3 180.4 130.3 38 192.5 Gross profit 38.6 37.4 3 132.9 95.6 39 142.2 Gross margin % 73.0 73.1
- 73.7
73.4
- 73.9
Operating profit (EBIT) 20.5 20.8
- 2
69.0 44.3 56 73.0 Operating margin (EBIT) % 38.6 40.7
- 38.3
34.0
- 37.9
Adjusted Operating profit (EBIT) 20.9 20.8 70.8 44.3 60 73.0 Adjusted Operating margin (EBIT) % 39.5 40.7
- 39.2
34.0
- 37.9
Cash flow from operating activities 11.6 31.0
- 63
43.5 45.2
- 4
69.1 7
GROSS PROFIT AND GROSS MARGIN DEVELOPMENT IN THIRD QUARTER
2019
- Gross profit increased by 3% to SEK 38.6m
- Gross margin 73%, -0.1 p/p change vs. Q3 2018,
+170 p/p excluding impact from acquisitions
- Gross margin year to date up +0.3 p/p,
adjusting for acquisition costs, gross margin increased by 1.0 p/p to 74.4%
Gross profit (SEKm) and Gross margin development
- 3.4
- 1.6 7.4 0.7 3.1
- 8.8
11.8 9.8 3.9 0.0 6.3 0.9 8.4 5.9 31.023.8 7.7 24.211.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 2018 2019 1.3 8.9 8.9 15.5 6.2 16.915.2 23.4 15.0 27.6 20.1 30.6 17.3 40.937.4 46.6 32.7 61.6 38.6
46.5% 64.3% 70.6% 75.8% 60.4% 71.6% 71.8% 74.2% 71.1% 75.3% 73.8% 75.2% 73.3% 73.6% 73.1% 74.9% 72.8% 74.6% 73.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
- 5.0
5.0 15.0 25.0 35.0 45.0 55.0 65.0
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- 4.1
1.5 1.6 3.8
- 3.3
7.4 6.4 13.7 1.6 11.5 0.1 14.6 1.8 21.720.8 28.7 11.8 38.0 20.9
11.2% 12.7% 18.9%
- 31.8%
31.2% 30.3% 43.5% 7.4% 31.5% 0.3% 36.0% 7.6% 39.0% 40.7% 46.1% 26.3% 46.0% 39.5%
- 7.0
- 2.0
3.0 8.0 13.0 18.0 23.0 28.0 33.0 38.0 43.0
- 50.0%
- 30.0%
- 10.0%
10.0% 30.0% 50.0% 70.0% 90.0%
- 3.4 -1.6
7.4 0.7 3.1
- 8.8
11.8 9.8 3.9 0.0 6.3 0.9 8.4 5.9 31.023.8 7.7 24.211.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 2018 2019
ADJUSTED EBIT AND ADJUSTED EBIT MARGIN DEVELOPMENT IN THIRD QUARTER
2019
- EBIT decreased with SEK 0.3m to SEK 20.5m,
(20.8)
- Adjusted EBIT increased with SEK 0.1m
to SEK 20.9m (20.8). Adjusted EBIT margin 39.5% (40.7)
- Positive effects from higher sales, exchange rate
and legal costs in prior year comparator partly
- ffset by investments in organization, marketing
and R&D
- Adjusted EBIT year to date SEK 70.8m (44.3)
and adjusted EBIT margin 39.2% (34.0)
Adjusted EBIT (SEKm) and adjusted EBIT margin development
- 149.6%
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- 3.4-1.6
7.4 0.7 3.1
- 8.8
11.89.8 3.9 0.0 6.3 0.9 8.4 5.9 31.0 23.8 7.7 24.2 11.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 2018 2019
BALANCE SHEET AND CASH FLOW
2019
- Cash flow from operating activities in the quarter
SEK 11.6m (31.0), year to date SEK 43.5m (45.2)
- Cash and Cash Equivalents at SEK 176.0m (220.8)
- Equity ratio 86% (88)
Key balance sheet items and cash flow
Cash flow from operating activities (SEKm)
Q2 10
MIPS Group (SEKm) Q3 19 Q3 18 FY 18
Total Assets 306.3 288.5 319.4 Equity 262.2 252.9 275.6 Equity ratio % 86 88 86 Cash & Equivalents 176.0 220.8 242.5
MIPS Group (SEKm) Q3 19 Q3 18 FY 18
Cash flow from operating activities 11.6 31.0 69.1
SUMMARY
2019
*Adjusted for costs in connection with the company's IPO during 2016 and 2017 and costs relating to acquisitions during the quarter. Adjusted EBIT margin includes legal costs relating to company’s litigation processes.
- Strong interest for the MIPS technology in all
categories and geographies
- Important new customers implementing MIPS
technology
- More helmet models than ever being implemented
- Trade tariffs impacted volumes in the quarter
- MIPS’ technology recognized through prestigious
Polhem award
- Good position to deliver the 2025 plan
57 57 67 67 75 75 87 87 97 97 110 10 117 17 126 26 128 28 147 47 171 71 193 93 21 214 24 241 24 243
7% 7% 14% 4% 19% 9% 28% 8% 30% 0% 30% 0% 23% 3% 22% 22% 22% 22% 26% 6% 34% 4% 38% 8% 39% 9% 41 41% 41 41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50 100 150 200 250 300
Q1 16 1 16 Q2 1 2 16 Q3 Q3 1 16 Q4 1 4 16 Q1 17 1 17 Q2 1 2 17 Q3 Q3 1 17 Q4 1 4 17 Q1 18 1 18 Q2 1 2 18 Q3 Q3 1 18 Q4 1 4 18 Q1 19 1 19 Q2 1 2 19 Q3 Q3 1 19
Net s sales a and a d adj djusted E d EBIT-margin 1 n 12 m months hs r rolling ng Net Sales Adjusted EBIT-margin*
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Q&A
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 presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. This presentation may contain various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brand, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
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