Mips Ab · OMXSTO:MIPS
Mips Ab — Q4 2017 Earnings Presentation
11 slides from Mips Ab's earnings presentation, Feb 15, 2018
Slide 1: MIPS Q4 2017
MIPS Q4 2017 15 February, 2018 1
Slide 2: MIPS in brief
MIPS in brief 60 45 60 28 active MIPS is a market leader in helmet solutions protecting the brain 15 brands2 4 8 8 against rotational motion 2011 2012 2013 2014 2015 2016 2017 Patented technology based on over 20 years of research and testing, partnered with some of the world’s leading researche
Slide 3: MIPS financial targets
MIPS financial targets >SEK 400m >40% net sales EBIT margin 2020 2020 3
Slide 4: Q4 Highlights
Q4 Highlights • Net sales qrowth at +29% in the quarter, +37% organic growth adjusting for currency effects • Adjusted EBIT 36.0%, legal cost of MSEK 4.1 included • Gaining traction in Motorcycle category • First helmet with MIPS BPS delivered in Mountaineering category • Legal process against POC i
Slide 5: Q4 Net Sales development
Q4 Net Sales development Net Sales development (MSEK) and quarterly growth rates* • Growth in all key categories, with +29% for the quarter and +45% FY 29% 55% 41 • Growth mainly from existing customers 55% 37 29% expanding their range and penetration of 70% 69% 32 105% 27 MIPS BPS 24 21 21 20 274%
Slide 6: Q4 in figures
Q4 in figures • Net Sales increased +29%, currency adjusted +37% MSEK 2017 2016 Change 2017 2016 • Gross margin improvement in Q4, +1.0 p/p to 75.2% Q4 Q4 % FY FY Net sales 40.6 31.5 29 125.6 86.6 • Higher Opex Gross profit 30.6 23.4 31 93.3 61.7 • legal costs of MSEK 4.1 included Gross margin % 75.
Slide 7: Q4 Gross profit and margin development
Q4 Gross profit and margin development Gross profit (MSEK) and gross margin development • Gross margin up +1.0 p/p vs. Q4 2016 to 75.2% 80.0% 75.8% 74.2% 75.3%73.8%75.2% 40.0 70.0% 70.6% 71.6%71.8% 71.1% 35.0 • Lower sourcing costs key driver of margin 64.3% 30.6 60.0% 60.4% 27.6 30.0 improvement 50
Slide 8: Q4 Adjusted EBIT margin development
Q4 Adjusted EBIT margin development • EBIT increase with MSEK +0.9 to 14.6 MSEK Adjusted EBIT (MSEK) and adjusted EBIT-margin development • Increase in EBIT mainly explained by higher 18.7 46.4% 46.0% 20.0 sales partly offset by: 90.0% 14.6 14.6 13.7 15.0 • legal cost in the quarter 70.0% 11.5 • neg
Slide 9: Q4 Balance sheet and cash flow
Q4 Balance sheet and cash flow • Deferred tax asset decreased with MSEK 2.9 to 8.7 vs. Q3 2017 • Cash flow decreased for the quarter, mainly due to higher sales and lower current liabilities Key balance sheet items and cash flow Cash flow after operating activities (MSEK) MIPS Group (MSEK) 31 Dec 31
Slide 10: Update on litigation situation
Update on litigation situation • Bauer trial ended 19 October 2017, main part of litigation cost recognized • The Court reserved the right to award formal judgement within 3 to 6 months after ending of Bauer trial. • Legal process initiated against POC in Germany 10
Slide 11: Summary
Summary • Net sales growth at 45% for the year • We are growing with our key customers, in all our Last 12 month rolling categories and geographies 150 50% 126 117 110 40% • Profitability impacted by litigation costs of MSEK 100 87 97 75 30% 4.1 in the quarter and MSEK 16.5 for the year 57 67 30% 30