MIPS AB (publ)

Good morning everyone, my name is Max Ramvits, I am the CEO of NIPS and with me today we also have our CFO Karin Rosenthal and we will take you through the interim report of the second quarter 2026. So if we start with the quarter we did see strong development with 72% growth in the quarter. Organic growth was 42% so we adjust for Forex which was more or less flat and then of course we also adjust for acquisition effect. So very strong organic growth. Year-to-date growth is now at 53% and organic growth level at 35%. We do see strong momentum in all categories and all geographies. Continued strong performance in Europe. US growth helped by the acquisition and software comparators after the implementation of tariffs last year. If we start with Europe, we did see strong organic growth with 48% growth in the quarter. And if we look at the US market, we actually managed to deliver a 32% organic growth. So very, very strong number in a challenging market. The Goroid acquisition is developing well, good interest from existing and new customers to integrate new products. We did reach a settlement agreement regarding the legal dispute in the US. It was actually not in the quarter. It was signed on the 2nd of July, but a very important factor. So good to put that behind us. We did see good improvement also in profitability. Adjusted EBIT margin in the quarter was 47%. So also very strong development in profitability. And it's also a strong testimony of our scalable business model. And we remain confident in our long-term strategy and our financial target. If we start with the biggest category and look at sports, we saw good development. It was a good quarter with 51% net sales growth in sport. Adjusting for acquisition and forex, organic growth was 40%. We saw good development continuing in the European market, especially in bike, but also good performance in snow. And then, of course, positive development also in the softer US markets, Asia is actually start coming back after a softer period. We had a small growth number in Q1 with 6%, and then in Q2 we see 80% growth in the Asian market, although from quite small numbers, but still really good to see the development also in the Asian market. The strong performance in bike continues with volume growth for the 11th quarter in a row. which is not given in the bike industry. Good season in the snow subcategory driven by European markets. Europe didn't have a fantastic snow season from a weather point of view, but the snow came very early and especially in connection with the very important Christmas sales. We actually did see good sales growth also in the North American market in snow. But of course, it was also helped by a bit of softer prior year comparator relating to tariffs. We see strong interest in both MIPS and Koroid, and we are long-term positive about the outlook in the sports category. In Moto, we saw continued growth. We saw good performance with 80% growth in the quarter. If we adjust for acquisitions and Forex, net sales grew with 56%. Year-to-date growth is now at 49% and organic growth at 28%. Off-road and especially motocross are still the main driver, but encouraging to see that the hard work that we have done on on-road is also showing a positive effect. We continue to roll out new innovations and new launches in moto and actually look forward to really exciting end of 2026. And also here, no change in the long-term outlook. Good opportunity to continue to grow in the category. In safety, we see that the Koroid acquisition accelerates the growth in safety. Really big increase in momentum after the Koroid acquisition. Net sales growth was 604%. And if we adjust for acquisition effect, our organic growth number was 80%. We did also announce entry into firefighting helmets with the world-known brand Drager, which is a very strong brand in fire and safety equipment. And it also feels great to, of course, being able to go into a professional workforce that risk their life every day. We do see good interest from new and current customers in MIPS and Koroid's portfolio which now also includes body protection gloves and footwear and we remain excited about the opportunity in the category and no change to the long-term outlook in this category too. If we look a bit more in detail about the development in the different categories if we start with sports We saw good performance in all the three sub-segments, which is bike, snow and equestrian. 51% growth in the quarter, 40% organic growth. If we look at motor, like I said, very much driven by the strong performance in off-road. But happy also about the development also in road. And if we look at the growth, we did deliver 80% growth in the quarter and organic growth was 56%. And then of course, With Koroid, our relevance and size, of course, in the safety category changes quite a lot. We did have 33 million in net sales in the quarter, which actually equates to 15% of the total sales of NIPS. If we look at the growth of the category as such in Q2, we did grow with 600% and organic growth was 80%. Then hand over to Karin.

Good morning. I'm Karin Rosenthal, CFO of MIPS, and I will take you through the financial part of the presentation. We saw goods development in the second quarter with an increase in net sales of 72%. The Koroid acquisition contributed with 30% growth and no FX impact in the quarter versus last year. so net sales increased 42% organically. Gross profit increased by 71%, with a gross margin of 74.1% versus 74.2% last year. Good underlying improvement in profitability. Adjusted EBIT increased by 98%, with an adjusted EBIT margin of 46.7%, versus 40.4% last year. OPEX was impacted by legal costs of 12 million versus 14 million last year and 1 million in transaction costs, which was adjusted. The legal settlement amount of 3.25 million US dollar will affect the third quarter. And we also had good operating cash flow in the quarter of 62 million versus 18 million last year. So looking at the financial KPIs, organic growth of 42%, adjusted EBIT margin of 47%, and operating cash flow of 62 million in the quarter. If we then look at the development for the first six months, Good development with an increase in net sales of 53%, Koroid contributed with 24% growth and adjusting for that and the negative FX effect of 7% due to stronger SEK versus US dollar, net sales increased 35% organically. Gross profit increased by 52% and we had a gross margin of 72.9% versus 73.2% last year. Good underlying improvement in profitability. Adjusted EBIT increased with 80% with an adjusted EBIT margin of 41.4% versus 35.1% last year. In OPEX, we continue to invest in R&D and marketing. OPEX was impacted by legal costs of 19 million versus 23 million last year, which was adjusted. Operating cash flow of 80 million for the last first six months. And financial KPIs, organic growth, 35%, 41% EBIT margin, and 80 million in operating cash flow. If we then look at the balance sheet and cash flow, we had cash and cash equivalents of 187 million. We did a dividend payout of 66 million in April corresponding to 2.5 SEC per share. Since the acquisition of Koroid last year, we now have a revolving credit facility and the utilization of that is 300 million end of June. And operating cash flow in the quarter amounted to 62 million. Over to you, Max.

Thank you. So if we then summarize the quarter, we did see good development with 72% net sales growth in the quarter, 42% organic, Year-to-date now at 53% with 35% organic. We did see good growth in all the categories in all regions. Strong performance in Europe continues and we expect that to continue throughout the year. North America has surprised us a little bit how strong it is. It continues to develop well and also good to see that Asia coming back after a softer period. We are happy about the integration of Koroid, and that's developing well. We see a lot of interest from our existing and new customers, of course, for the newly acquired portfolio. Good underlying improvement in profitability. Adjusted EBIT margin in the quarter was 47%, so we are closing in on our ambition of maintaining an EBIT margin of about 50%. Legal dispute in the US now closed to the settlement, favorable outcome for MIPS. And important to note is that the cost relating to the settlement will be expected in Q3. And we remain positive on our long-term outlook and delivery of our financial targets. And with that, we open up for questions. So over to you, operator.