MIPS presents new long-term strategy and financial targets
Today MIPS AB (MIPS), the world leader in brain protection systems within helmet-based safety, presents its new long-term strategy including a more in-depth description of the company’s newly defined focus market and strategic priorities in the coming years at its Capital Markets Day in Stockholm, Sweden.
“MIPS has shown good progress towards reaching our 2020 financial targets with continuous growth and strong profitability and we felt it was time to define new ambitions beyond 2020”, says MIPS’ CEO, Max Strandwitz.
The new 2025 strategy has been built around three key helmet categories being Sports, Moto and Safety representing a focus market comprising a total of 130 million helmets (previous focus market view included 43 million helmets).
One major change is that MIPS’ newly defined focus market now also comprises 60 million helmets for industrial use which were previously not considered addressable. These helmets are included in the Safety category comprising a total of 70 million addressable helmets. Moreover, the company’s investments in product development have resulted in several new MIPS solutions making it possible to address even lower helmet price points. The range of MIPS’ solutions together with an underlying market growth have led to an increased focus market in the Sports category comprising more than 30 million helmets. MIPS’ view of the Moto category focus market now comprises a total of 30 million helmets.
”Our key focus remains to be growth and becoming the expected solution in brain protection systems. Thanks to a combination of an increased addressable market and the availability of new MIPS solutions in a broader helmet price-range, together with our scalable business model, we feel we have an unique opportunity to increase net sales while still maintaining an ambitious EBIT margin and dividend policy”, says Max Strandwitz.
MIPS’ new long-term financial targets are:
Net sales >SEK 1bn
Grow net sales to more than SEK 1 billion by 2025
EBIT margin >40%
Maintaining an underlying EBIT margin of more than 40%
Dividend >50%
Ordinary dividend as share of annual net earnings
The Capital Markets Day will be held in Stockholm today the 20th of September 2019 between 10.00am and 12.00pm CET. Presentations will be held by Max Strandwitz, President and CEO, Peter Halldin, Chief Science Officer, and Johan Sauer, Head of Sales.
The presentation material and an on-demand webcast from the Capital Markets Day will be made available on mipscorp.com around 10.00am CET today.