Interim report January - June 2017

April - June

• Net sales increased by 55% to MSEK 36.6 (23.6)
• Operating profit rose to MSEK 11.0 (5.6). Adjusted operating profit* increased to MSEK 11.5 (7.4)
• Operating margin improved to 30.2% (23.7) Adjusted operating margin* increased to 31.5% (31.2)
• Cash flow from operating activities increased to MSEK 0.0 (-8.8)
• Earnings per share after dilution amounted to SEK 0.34 (0.20)

January - June

• Net sales increased by 70% to MSEK 57.7 (33.9)
• Operating profit increased to MSEK 6.1 (2.3). Adjusted operating profit* rose to MSEK 13.1 (4.1)
• Operating margin improved to 10.6% (6.9). Adjusted operating margin* increased to 22.7% (12.1)
• Cash flow from operating activities increased to MSEK 3.9 (-5.7)
• Earnings per share after dilution amounted to SEK 0.19 (0.08)
• MIPS was listed on Nasdaq Stockholm on 23 March and in conjunction with this, a new issue of shares
  raised MSEK 150.0

The group in brief

*Adjusted for items affecting comparability, see page 17
  For definitions and performance measures, see pages 15 - 18

CEO’s comments

Net sales and earnings

Net sales for the second quarter increased by 55% to MSEK 36.6 (23.6). The increase was primarily due to higher demand among existing customers, primarily in the snow category, but also promising growth in the motorbike category. The adjusted operating margin was 31.5% (31.2). On a rolling 12-month basis, net sales increased to MSEK 110.4 with an adjusted operating margin of 30.1%. The increase in sales was primarily attributable to existing customers.

New solutions of MIPS BPS

At the world’s largest cycling trade show, Eurobike, in Friedrichshafen, Germany, in the beginning of September, MIPS will present two new solutions of MIPS Brain Protection System (MIPS BPS). The development of the new solutions was conducted in close cooperation with helmet manufacturers and enables adaptation to several helmet types and models. Both versions are based on the same research and studies as MIPS’ existing patented BPS. Helmets with the new solutions are planned to be in the stores during 2018.

More than 40 new helmet models at Eurobike

At Eurobike, MIPS’ existing and new customers will present more than 40 new helmet models with MIPS BPS, which will be available in stores in 2018. The models are designed for users in road cycling, MTB (mountain bike), city cycling and downhill cycling.

Strengthening the organisation for further growth

 During the second quarter, we have strengthened the organisation with competence within strategy and marketing. I am strongly convinced that these people, together with all other employees, will make a positive contribution to further strengthening MIPS’ position.

Continued focus on driving knowledge related to rotational motion impact 

We are continuing to place major focus on developing new applications, strengthening our market communications and, in collaboration with our customers, continuing to inform and educate the end-users about the damaging effects that rotational motion can have on the brain and how MIPS BPS can help reduce these effects.

Johan Thiel
President and CEO

For further information, please contact:

Johan Thiel, President and CEO
johan.thiel@mipsprotection.com
tel +46 73 399 65 88

Max Strandwitz, CFO
max.strandwitz@mipsprotection.com
tel +46 70 961 17 54

Boel Sundvall, IR
boel.sundvall@mipsprotection.com
tel + 46 70 560 60 18

This information is such that MIPS AB (publ) is obliged to disclose in accordance with the EU’s Market Abuse Regulation and the Securities Market Acts. The information was submitted for publication, through the agency of the contact persons set out above, on 17 August 2017 at 7.30 a.m. CET.  

MIPS will present the interim report for January - June 2017 at a teleconference on 17 August 2017 at 10.00 a.m. CET. To participate, please register at: http://emea.directeventreg.com/registration/50693432  

Financial calendar

About MIPS

MIPS is specialised in helmet-based security and protection of the brain and is the world leader in this field.  Based on an ingredient brand model, MIPS Brain Protection System (BPS) is sold to the global helmet industry. The solution, which is patented in all relevant markets, is based on some 20 years of research and development together with the Royal Institute of Technology and Karolinska Institutet in Stockholm, Sweden.

MIPS´s headquarter with 24 employees in research and development, sales and administration is in Stockholm, where its test facility is also located. Production takes place at sub-contractor facilities. On a rolling 12-month basis, July 2016-June 2017, MIPS’ net sales amounted to MSEK 110 and an adjusted EBIT-margin to 30%. The MIPS share is since March 2017 listed on Nasdaq Stockholm. For more information, visit www.mipscorp.com

Financial targets

MIPS’ long-term financial targets should not be viewed as a forecast but rather as an ambition which the Board of Directors and senior executives believe is a reasonable long-term expectation for the company.

Growth: The goal is to grow organically to achieve net sales in excess of MSEK 400 by 2020.
Profitability: The goal is to achieve an EBIT margin in excess of 40% by 2020.

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