MIPS AB (publ)

Good day and thank you for standing by. Welcome to the MIPS Interim Report Q3, 2026 webcast and conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Alternatively, you may submit your questions via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Max Strandvits, CEO. Please go ahead.

Thank you, operator, and good morning, everyone. My name is Max Strandvits, and I am the CEO of MIPS. And with me today, we also have our CFO, Karin Rosenthal, And we will take you through MIPS interim report for the third quarter of 2026. And if we start with the key highlights of the quarter, it was a strong quarter that really validates our strategy. We saw strong sales development with 59% growth in the quarter. If we adjust for acquisitions and FX, we had an organic growth of 24%. If we look at the year-to-date number, we see a net sales growth of 55% with an organic growth of 31%, which is also very much in line with our long-term ambition. We saw that the momentum was broad-based. across all the categories and geographies. Europe and North America continued to develop strongly, while Asia continued its positive trend, as we have also seen last quarter. We see good demand for the recent acquisition Koroid and its products. We have some new product launches to reinforce the customer's interest in deepening their collaboration. The management team has been further strengthened through the recruitment of a new CFO, Marie Björklund, that will start in January. And we have also recruited a chief commercial officer, Celine Flack, that will also start in January. And CCO is a new role, or newly created role, and we are excited to explore also the opportunities there. We have already communicated that we reached a settlement 2nd of July regarding the legal dispute in the US. We did recognize the cost in the quarter and that's the difference that you see versus reported EBIT and adjusted EBIT. We see a good improvement in underlying profitability, a strong testimony of the scalable business model, and we remain confident in our long-term strategy and our financial targets. In sport, we saw good development. It was a good quarter with 37% net sales growth. adjusting for acquisition and for organic growth was 22%. Europe delivered solid growth while the US market showed positive development despite softer market condition. In Asia, the positive trend continues. And it's good to see that we now have really strong performance with growth in bikes for the 12th consecutive quarter in bike, which is of course fantastic and probably unmatched to see in our industry. But I think also with that, having reported three consecutive years of quarterly growth in the bike segment, we can now call the COVID unwind effects over. We see quite positive industry data from Germany, If we look at the number of bikes being sold in Germany, it's actually up 10% versus previous year. And for us, we continue to see Germany as a very strong engine for growth in Europe. And of course, the latest retail data that we see support that and that is something that we also expect to continue. So with the good development we see in Europe for bikes, in the US market and also the positive development in Asia, we expect also the outlook to be quite positive and our opportunities to continue to generate growth in the sports category. In Moto, we see that the category continues to accelerate. We had good performance in the quarter with 116% growth. Adjusting for acquisition in Forex, organic net sales grew with 46% in the quarter. Year-to-date is now at 74%, with an organic growth of 35%. We continue to see good development both in the off-road and the on-road subcategory. But it's good to see for the first time that also in absolute terms, the on-road subcategory actually outgrew the motocross category. So really, really good to see that all the effects and initiatives that we have done within the on-road category is now starting to pay off. No change to the long-term outlook. We have a good opportunity to continue to grow in the category. It's also, you see a picture of Jeffrey Herlings that also won the MXGP World Tour and became world champion. And we also have another member of the MIPS athlete team that won the SMX Series in the US, George Prado. So really good performance of the athletes that we have in our athlete team in the motocross category. If we look at safety, we see of course that the Koroid acquisition accelerate the growth that we see in safety. We really have strong increased momentum with a growth of 396%. And of course, if we adjust for acquisition and forex, the organic growth was 34% in the quarter. We did together with Studson launch the new SHK2 industrial safety helmet and the SHK2 helmet is the development of the very successful SHK1 helmet that has been extremely successful on the US market and the SHK2 helmet focused a lot on thermal regulation and of course and fits for the user and it was launched during September and has been really well received on the market. The other thing that is unique is this is of course Studson's first helmet which is only having a full interior of the Koroid solution. The previous one had, of course, both Koroid and EPS, so really good to see that we have a great ventilation in the helmet and, of course, a full Koroid implementation. And we remain very excited about the category, no change in the long-term outlook, and we see a good opportunity to continue to grow in the category. During the quarter, we have also increased our investment in Quinn. And in conjunction with our original investment, we obtained an option to purchase another 5% at the predetermined valuation. And we did exercise our option to acquire an additional 5% which moves the MIPS ownership from 25 to 30 percent and for us real world user data is a key component in our leadership in advanced helmet product development complementing our already existing world leading capabilities both when it comes to computer simulation but also of course complementing our state of the art test lab. And with combining MIPS test facility with real life data, of course, we can create an ecosystem of data, which is very difficult to match in our industry. I believe the one that has access to the best data can take the best decision. So really excited about that investment. If we then look at the development in our different categories in sport, we saw 37% growth in the quarter, 22% organic. If we look at year-to-date, the organic growth number in sport is 30%, so really solid growth there. In Moto, we saw 116% net sales growth, 46% organic. And if we look at the year-to-date organic growth number, we are at 35%, so really strong growth in that category also. And it is accelerating, as I already said. And in safety, we are growing really fast and really excited about the new launch of the SHK2 helmet. We had an ambition of reaching 100 million for the year in the safety category, and we are already at 77 million, so I think we have a very good chance of getting to the 100 million milestone. And with that, I 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 good development in the third quarter with an increase in net sales of 59%. The Koroid acquisition contributed with 30% and FX had a positive effect of 6% leading to a net sales increase of 24% organically. Gross profit increased with 55% and we saw a gross margin of 72.3% versus 74.2% last year. We saw good underlying improvement in profitability. Adjusted EBIT increased with 70% and we saw an adjusted EBIT margin of 45.2% versus 42.1% last year. OPEX, including other operating expenses, was impacted by legal costs of 37 million in the quarter versus 13 million last year, whereof the settlement cost was 32 million. We had good operating cash flow of 48 million. If we look at the financial KPIs, 24% organic growth, 45% adjusted EBIT margin and operating cash flow of 48 million. If we then look at the development for the first nine months, we saw good development with an increase in net sales of 55%. Koroid contributed with 26% growth and adjusted for that and a negative FX on 2% net sales increased 31% organically. Gross profit increased by 53% and we saw a gross margin of 72.7% versus 73.6% last year. We also saw good underlying improvement in profitability. Adjusted EBIT increased by 76% with an adjusted EBIT margin of 42.7% versus 37.5% last year. OPEX, including other operating expenses, was impacted by legal costs of 56 million year-to-date, whereof the settlement cost was 32 million. Operating cash flow for the first nine months was 128 million. So looking at the financial KPIs, 31% organic growth, 43% adjusted EBIT margin and operating cash flow of 128 million. If we then look at the balance sheet and cash flow, We have cash and cash equivalents of 141 million. We paid out dividend of 66 million in April, corresponding to 55% of net earnings. Since the acquisition of Koroid last year, we have a revolving credit facility, and that's utilized of 230 million at the end of September. And then net sales versus adjusted EBITDA amounted to 0.3 times at the end of September. And operating cash flow in the quarter amounted to 48 million. With that, I hand over to Matt.