MIPS Q3 20187 November, 2018

14.849.6 86.6

125.6

5.8%

28.0%22.1%

-20%0%20%40%

050

100150

2014 2015 2016 2017Sales (SEKm) Adj. EBIT margin

• MIPS is a market leader in helmet solutions protecting the brainagainst rotational motion

• Patented technology based on over 20 years of research and testing, partnered with some of the world’s leading researchers from KTH and Karolinska Institute

• MIPS operates as an ingredient brand, with leading helmet brands as customers including Bell, Fox Head, Giro, Scott, Smith and Trek

• MIPS BPS1 is an easily implemented safety feature, which offers helmet brands incremental safety performance and allows higher price points

MIPS in brief60

activebrands2

300+ models sold in 20172

4 8 8 1528

4560

2011 2012 2013 2014 2015 2016 2017

15 23 30 66121

212302

2011 2012 2013 2014 2015 2016 2017

Note: 1. Brain Protection System.2. Based on sold MIPS BPS units during the period. 3. CAGR for the period 2014 to 2017. EBIT margin 2014 was -89.7%.

104% sales

CAGR3

14 43 67 279

1 0461 671

2 320

2011 2012 2013 2014 2015 2016 2017

5.4m+units sold

(2017)

Thousands

2

• MIPS – IN FOUR SENTENCES:• MIPS is a brain protection system

• Rotational motion can cause brain injuries

• The low friction layer allows a sliding motion of 10-15 mm, in all directions, reducing the rotational motion transmitted to the brain during impact

MIPS adds protection

When you hit your head in a fall, it often creates a rotational motion in your brain

The rotational movement can cause brain injuries

MIPS low friction layer allows the head to move 10-15 mm, in all directions, inside the helmet which reduces the rotational motion to the brain

1 2 3

MIPS IS A BRAIN PROTECTION SYSTEM

MIPS financial targets

>SEK 400mnet sales

2020

>40%EBIT margin

2020

3

Q3 Highlights

• Net sales growth at +88% in the quarter, +77% organic growth adjusted for currency effects

• The good momentum in all three key categories continues, mainly with existing customers

• Adjusted EBIT 40.7%, legal cost of SEK 0.6m (9.5) included• No US tariffs for helmets imported to China expected

for this round• Strong progress towards 2020 financial goals

4

Update on litigation situation• MIPS and Bauer in agreement and all legal matters

relating to the dispute now concluded

• MIPS is currently not party in any other patent disputes at the moment

5

3

14 13

20

10

24 21

32

21

37

27

41

24

5651

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

Q3 Net Sales development

• Strong growth in the quarter +88%, organic growth +77%

• Good performance across all three key categories Bicycle, Snow and Motorcycle

• Soft prior year comparator

6

Net Sales development (SEKm) and quarterly growth rates*

*No quarterly growth rates available for 2015

274%

70%69%

55%

105%

55%

29%

29%

12%

52%88%

MIPS Group (SEKm) Q3 18 Q3 17 % YTD 18 YTD 17 % FY2017Net sales 51.2 27.3 88 130.3 85.0 53 125.6Gross profit 37.4 20.1 86 95.6 62.7 52 93.3Gross margin % 73.1 73.8 - 73.4 73.8 - 74.3Adjusted operating profit (EBIT) 20.8 0.1 N/A 44.3 13.2 235 27.8Adjusted operating margin (EBIT) % 40.7 0.3 - 34.0 15.5 - 22.1Cash flow from operating activities 31.0 6.3 391 45.2 10.2 342 11.1

Q3 in figures• Net Sales increased +88%, currency adjusted +77%• Gross profit up 86%, gross margin down with -0.8 p/p

• Lower OPEX, mainly from litigation costs in prior year• Adjusted EBIT SEK +20.8m, 40.7% adjusted EBIT margin,

no adjustment of EBIT in 2018• Cash – strong operating cash flow of SEK 31.0m (6.3)

7

* Adjusted for items affecting comparability (IPO costs) Q318 SEK 0.0m (0.0), YTD18 SEK 0.0m (-7.0), FY 2017 SEK -7.0m

77%

40.7%

31

Organic growth

EBIT margin

Operating Cash flow(SEKm)

Q3 Gross profit and margin development• Gross profit up 86% to SEK 37.4m• Gross margin down -0.8 p/p vs.

Q3 2017 to 73.1%• Different sales mix key reason for the

lower gross margin

8

-3.4

-1.6 7.4 0.7 3.1

-8.8

11.8 9.8 3.9 0.0 6.3 0.9 8.4 5.9 31.2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

1.3

8.9 8.9

15.5

6.2

16.915.2

23.4

15.0

27.6

20.1

30.6

17.3

37.4

46.5%

64.3%

70.6%75.8%

60.4%

71.6% 71.8%74.2%

71.1%

75.3%

73.8%

75.2%

73.3%73.6%

73.1%

%

%

%

%

%

%

%

%

%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.040.9

Gross profit (SEKm) and gross margin development

-4.1

1.5 1.6 3.8

-3.3

7.4 6.4

13.7

1.6

11.5

0.1

14.6

1.8

21.7 20.8

11.2%12.7%

18.9%

-31.8%

31.2%30.3%

43.5%

7.4%

31.5%

0.3%36.0%

7.6%

39.0% 40.7%

-1

-5

0.0

5.0

10

15

20

25

%

%

%

%

%

%

%

%

-3.4 -1.6

7.4 0.7 3.1

-8.8

11.8 9.8 3.9 0.0 6.3 0.9 8.4 5.9 31.2Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

Q3 Adjusted EBIT margin development

• Adjusted EBIT increased with SEK 20.7m to SEK 20.8m (SEK 0.1m)

• Adjusted EBIT margin 40.7%

• No adjustment in EBIT in current year. Adjustment in previous years relates to IPO costs

• Increase in adjusted EBIT mainly explained by higher sales and litigation costs in prior year comparator partly offset by:

• Strengthening of organization

• Negative impact from currency derivatives

9

Adjusted EBIT (SEKm) and adjusted EBIT-margin development

-149.6%

Q3 Balance sheet and cash flow

• Tax losses carried forward now fully consumed• Strong improvement in operating cash flow from

higher EBIT, but also from Accounts receivables

• Cash and Cash Equivalents at SEK 220.8m, Equity ratio 88%

10

Key balance sheet items and cash flow

Cash flow after operating activities (SEK m)

-3.4 -1.6

7.4

0.7 3.1

-8.8

11.8 9.83.9

0.0

6.30.9

8.45.9

31.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

Q2

MIPS Group (SEKm) YTD 18 YTD 17 FY2017Total Assets 288.5 233.4 242.2Equity 252.9 210.2 220.6Equity ratio % 88 90 91Cash & Equivalents 220.8 180.5 179.8Deferred tax asset 0.6 11.5 8.7

MIPS Group (SEKm) YTD 18 YTD 17 FY2017Cash flow from operating activities

45.2 10.2 11.1

Summary

• Strong sales growth with +88%,+77% organic growth for the quarter

• Continued focus on growing existing customers

• Increased awareness of MIPS drives strong market momentum

• Strong EBIT and operating cash flow development

• Strong progress towards 2020 financial goals

11

*Q318 LTM Adjusted EBIT includes SEK 8.7m (13.4) legal costs relating to company’s litigation processes.

57 67 7587

97110 117 126 128

147171

7%

14%

19%28%

30% 30%23% 22% 22%

26%

34%

0%

10%

20%

30%

40%

50%

020406080

100120140160180

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

Last 12 month rolling

Net sales Adjusted EBIT margin

Disclaimer

12

Important message from MIPS AB▪ This presentation has been prepared by MIPS AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. ▪ Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements.▪ This presentation may contain various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brand, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. ▪ The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. ▪ No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.