At Capital Market Day 2022 in Stockholm on June 9, Swedish helmet technology and “Brain Protection System” (BPS) manufacturer Mips AB unveiled its new long-term strategy with updated financial targets and strategic priorities for the coming years. The reason for revising the company’s strategy and long-term financial targets is not a poorly performing business but rather the exact opposite. “As a result of our great progress during the last years resulting in us being ahead of our previous plan, along with good growth in all our helmet categories and the fact that our addressable market has expanded, we felt it was time to review our strategy and long-term financial targets,” said Max Strandwitz, CEO and president of Mips, in Stockholm, “this has resulted in a revised strategy looking beyond rotational motion. We will continue to build on and utilize existing competence, knowledge and technology within the company and invest in marketing and R&D to achieve our new ambition.”
Regarding the rotational motion mentioned by Strandwitz, Mips’ BPS technology is designed to help “reduce the impact of rotational energy on the head in the event of an impact by allowing the helmet to slide offset to the head.” Now, Mips will shift its focus from solely anti-rotation to solutions that optimize the overall performance of the helmet, as well as providing aftermarket products (to extend the helmet’s life). According to the 80-page presentation at CMD, which was also streamed live and delivered by Strandwitz, CFO Karin Rosenthal and CMO Fredrik Kjellberg, and head of sales Johan Sauer, the company’s new strategy is based on the following three pillars:
- Expanding existing business
- Opening up new channels and markets
- Developing new opportunities in helmet safety
The Swedish company will continue to focus on the three main categories of sports helmets, motorcycle helmets and safety helmets.
The scope of Mips solutions available, the underlying market growth and the identification of new market channels and regions have resulted in Mips’ focus market growing to a total of 195 million helmets. Previously, it had been expected to reach 130 million units. Mips believes the total helmet market represents 550 million helmets. Previously, the total market was considered to be 410 million helmets.
As a result, Mips’ new long-term goals until 2027 are as follows:
- net sales of more than SEK 2 billion (190 million euros) by 2027
- an Ebit margin of more than 50 percent - maintaining an adjusted Ebit margin of more than 50 percent
- a dividend of more than 50 percent - an ordinary dividend as a share of annual net income
