Mips

Earnings Release • Jul 16, 2025

Interim Report January – June 2025

Q2

In brief

April-June 2025

• Net sales increased by 1% to SEK 135m (133), organic growth amounted to 12% during the quarter
• Operating profit amounted to SEK 41m (52)
• Operating margin decreased to 30.1% (38.9)
• Cash flow from operating activities amounted to SEK 18m (29)
• Earnings per share, diluted, amounted to SEK 1.20 (1.53)

January-June 2025

• Net sales increased by 16% to SEK 251m (216), organic growth amounted to 23%
• Operating profit amounted to SEK 65m (65)
• Operating margin decreased to 25.9% (30.3)
• Cash flow from operating activities increased by SEK 35m to SEK 55m (20)
• Earnings per share, diluted, amounted to SEK 1.91 (1.96)

SEKm	Apr-Jun 2025	Apr-Jun 2024	∆%	Jan-Jun 2025	Jan-Jun 2024	∆%	Full year 2024
Net sales	135	133	1	251	216	16	483
Gross profit	100	97	3	184	154	19	350
Gross margin, %	74.2	72.9	-	73.2	71.6	-	72.5
Operating profit (EBIT)	41	52	-22	65	65	-1	174
Operating margin (EBIT-margin), %	30.1	38.9	-	25.9	30.3	-	36.1
Profit for the period	32	40	-22	51	52	-3	141
Earnings per share basic, SEK	1.20	1.53	-22	1.91	1.96	-3	5.32
Earnings per share diluted, SEK	1.20	1.53	-22	1.91	1.96	-3	5.32
Cash flow from operating activities	18	29	-	55	20	-	142
Dividend per share, SEK	6.50	6.00	-	6.50	6.00	-	6.00

The Mips Group in brief

For definitions and description of performance measures and alternative performance measures, please visit: www.mipscorp.com

CEO's comments

Good progress despite challenging conditions

I am pleased that we achieved organic growth of 12 percent in the quarter despite very challenging conditions, where the tariff situation in US creates significant uncertainty in the market.

In early April, the imposition of high tariffs on goods imported into the US was announced. The tariff package was extensive and larger than most people had expected, creating uncertainty in all our customer categories and cautious purchasing behavior among our customers, the helmet brands. As much of the rhetoric centered on China, where most helmets are currently produced, many factories had to reduce production significantly. As the brands gained more clarity they communicated price increases to mitigate the impact of tariffs. These were relatively well received by retail and consumers and thereby the helmet brands started producing helmets at their suppliers again. As a result, we saw an acceleration in the end of the quarter, but sales did not reach the growth we saw in the previous quarter.

The economic impact of the tariffs on Mips in the quarter was less than we initially thought when the tariff levels were introduced in early April. There are several reasons for this: Mips, as a brand, has a very strong position in the US market with broader coverage in terms of both brands and price points. We have also achieved higher penetration in other parts of the world and, additionally our customers were more prepared on how to act towards the consumers than when specific tariffs were introduced on, among other things, bicycle related products at the end of 2019. The impact on our sales was also smaller than what we saw in 2019, which was the first time larger increases of tariffs were imposed.

For Mips as a company, the tariffs have not resulted in an increase in costs, and we have therefore not needed to implement tariff-related price increases. We sell all our products based on Incoterms Ex Works, which means that the buyer is responsible for all transport costs, including tariffs.

We have during the last months seen a flurry of activity from many helmet brands to relocate large parts of their helmet production outside China in order to reduce dependency on individual countries. This does not have a negative long-term impact on Mips, but it does mean that our customers are currently very focused on ensuring that their relocation is as smooth as possible. This operational focus on goods supply means a certain shift in attention from more sales driven initiatives

from their side. Therefore, we saw somewhat lower activity in number of projects during the quarter as many of our customers have focused their resources to relocate production. We believe that it will take a quarter or a few before they can focus on product development of new products again.

However, we continue to see a strong interest in Mips globally and see a positive trend among the brands that implement Mips in new helmet models in relatively new markets for us.

Good underlying profit performance

We saw a decrease in operating profit in the quarter, fully explained by legal costs and effects of exchange rate differences. Underlying, we saw a positive development of the gross margin, which amounted to 74.2 percent (72.9).

Net sales increased by 1 percent in the quarter, while organic sales growth, adjusted for currency effects, increased by 12 percent. Operating profit amounted to SEK 41m (52) during the second quarter. The operating cash flow this quarter amounted to SEK 18m (29).

Helmet category Sports – continued good progress despite challenging conditions

We achieved growth of 3 percent in the Sports category this quarter, and for the seventh quarter in a row we delivered growth in volumes in the bike sub-category, Mips' largest sub-category.

In conjunction with the world's largest bicycle trade fair, Eurobike, we launched Mips® Air Node Pro, which is an evolution of our lightest solution with improved product features. The product was very well received. We also launched our new trade fair and event concept, a mobile concept that can be used both at trade fairs and at consumer events in the future. This is fully in line with our strategy to increase our exposure to consumers in order to raise awareness of Mips around the world.

We also continued to see a stable development in the snow sub-category in the quarter, despite the very strong prior year comparator. Growth continues to be driven by our market share gains in the important US market and a satisfactory increase in penetration in Europe.

Helmet category Motorcycle – impact of tariffs

In the Motorcycle category sales decreased by 28 percent this quarter. The decrease in sales is entirely related to the postponement of orders due to the tariff situation in the US market being important for this category. This means that our view of the development in this category remains as positive as before.

We are pleased to have announced partnerships with two prominent motorsport athletes during the quarter. The first is Jorge Prado, double world champion and last year's MXGP winner. This year he is taking on Supercross on the American continent, which is exciting to be part of. The other athlete is Joan Mir, also a world champion but in MotoGP. He is an important part of our efforts to establish ourselves more strongly in the sub-category on-road. Both of these athletes are extremely strong additions to our motorsport program and will help us raise awareness of Mips around the world.

Helmet category Safety - postponement of sales due to tariffs

In the Safety category, we reached an increase in sales of 12 percent. The lower growth rate compared to previous quarters was due to the US tariffs. These created uncertainty for our customers especially regarding what the consequences will be for pricing to users, and the impact on agreed contracts. We see this as only temporary and our ambition in the Safety category remains.

We look forward to the rest of the year with confidence

Despite challenging conditions and a turbulent second quarter, we look forward to the rest of the year with confidence. We have strong momentum in the market, and we have a wider and stronger product range than ever. Our customers have navigated this environment well and most of them have made the necessary price increases to cope with cost increases due to the imposition of tariffs. Retail has responded well to the price increases, but it is difficult to assess how the short-term effects will impact consumers.

As we are convinced that helmet use will increase worldwide over time and that we will continue to gain market share, our ambition is to keep on growing and investing in our business, regardless of the external situation. We have a unique brand position in the helmet industry, broad expertise, and patented technology. As a result, I continue to look forward to an exciting but challenging 2025, with a stronger market position than ever for Mips.

Stockholm, July 2025

Max Strandwitz President and CEO

"Good progress despite challenging conditions"

Financial performance

April – June Net sales

Net sales for the second quarter increased to SEK 135m (133), an increase of 1 percent. Adjusted for exchange rate effects, the organic sales growth amounted to 12 percent. The increase in net sales is mainly explained by the positive development in the Sports category.

Changes in net sales

%	Apr-Jun 2025	Jan-Jun 2025
Organic growth	12	23
Change in exchange rates	-11	-7
Total	1	16

Gross profit

Gross profit increased by 3 percent to SEK 100m (97). The gross margin amounted to 74.2 percent (72.9) where the increase in the gross profit mainly is explained by an effect of sales mix.

Operating profit (EBIT)

Operating profit decreased by 22 percent to SEK 41m (52), corresponding to an operating margin of 30.1 percent (38.9). The decrease in operating profit is mainly explained by legal costs.

Selling expenses amounted to SEK 22m (19), mainly driven by strategic initiatives within marketing. Administrative expenses amounted to SEK 30m (16), where the increase was mainly due to legal costs of SEK 14m due to a lawsuit which one of Mips' US customers is a party to. Mips is not a party to the suit, but since the suit concerns areas where Mips has intellectual property rights, being an important cornerstone of our brand strength, Mips has chosen to engage to secure the best possible outcome. Mips' own intellectual property rights are not part of this suit. Research and development costs amounted to SEK 11m (10). Other operating income and expenses was positively affected by a revaluated non-current liability of SEK 9m but was mainly offset by negative exchange rate effects.

Profit for the period and earnings per share

Profit before tax amounted to SEK 41m (52). Tax expenses for the quarter amounted to SEK -9m (-11), corresponding to an effective tax rate of 22.9 percent (22.0). Profit for the period was SEK 32m (40). Diluted earnings per share amounted to SEK 1.20 (1.53).

Cash flow

Cash flow from operating activities amounted to SEK 18m (29). The change is mainly explained by decreased profit which was partly compensated by improved working capital.

Cash flow from investing activities was SEK -8m (-2). The increase is mainly explained by the investment in a new trade fair and event concept. Cash flow from financing activities was SEK -172m (-160), mainly attributable to dividend payment of SEK -172m (-159).

Cash flow for the period amounted to SEK -161m (-133).

January – June Net sales

Net sales for the first six months amounted to SEK 251m (216), an increase by 16 percent. Adjusted for exchange rate effects, the organic sales growth was 23 percent. The increase in net sales is mainly explained by higher sales within the bike sub-category.

Gross profit

Gross profit increased by 19 percent to SEK 184m (154). The gross margin amounted to 73.2 percent (71.6) where the increase in gross profit mainly is an effect of increase in net sales.

Operating profit (EBIT)

Operating profit amounted to SEK 65m (65), corresponding to an operating margin of 25.9 percent (30.3).

Selling expenses amounted to SEK 42m (39), mainly driven by strategic initiatives within marketing. Administrative expenses amounted to SEK 53m (31), where the increase was mainly due to legal costs of SEK 23m due to a lawsuit which one of Mips' US customers is a party to. Mips is not a party to the suit, but since the suit concerns areas where Mips has intellectual property rights, being an important cornerstone of our brand strength, Mips has chosen to engage to secure the best possible outcome. Mips' own intellectual property rights are not part of this suit. Research and development costs amounted to SEK 21m (19). Other operating income and expenses was positively affected by a revaluated non-current liability of SEK 9m but was mainly offset by negative exchange rate effects.

Profit for the period and earnings per share

Profit before tax amounted to SEK 66m (67). Tax expenses for the first six months amounted to SEK -15m (-15), corresponding to an effective tax rate of 23.3 percent (22.3). Profit for the period was SEK 51m (52). Diluted earnings per share amounted to SEK 1.91 (1.96).

Cash flow

Cash flow from operating activities amounted to SEK 55m (20). The increase is mainly explained by improved working capital.

Cash flow from investing activities was SEK -12m (-4). The increase is mainly attributable to investment in a new trade fair and event concept. Cash flow from financing activities was

SEK -173m (-159) mainly attributable to dividend payment of SEK -172m (-159).

Cash flow for the first six months amounted to SEK -130m (-143).

Financial position

The Group's total assets as of 30 June 2025 amounted to SEK 594m (647).

Non-current assets as of 30 June 2025 amounted to SEK 152m (169). Cash and cash equivalents, including short-term investments, as of 30 June 2025 amounted to SEK 244m (266). Short-term investments of SEK 0m (0). The equity ratio was 85 percent (85).

Reported values for assets and liabilities are in all material aspects consistent with fair market value. From 2025 fluctuations in exchange rates fully affect the income statement. During 2024 Mips applied hedge accounting, which was discontinued in October 2024. Derivatives valued at fair market value has primarily been reported in Other comprehensive income and amounted as of 30 June 2024 to a net financial asset of SEK 1m.

Investments

During the second quarter, investments having an impact on the cash flow amounted to SEK 8m (2). Investments in intangible fixed assets amounted to SEK 1m (1). Investments in tangible fixed assets amounted to SEK 6m (1),

mainly driven by an investment in a new trade fair and event concept.

During the first six months, investments amounted to SEK 12m (4). Investments in intangible assets amounted to SEK 3m (2) mainly related to acquisition of patent rights and some other intangible assets. Investments in tangible assets amounted to SEK 8m (2), mainly driven by an investment in a new trade fair and event concept.

The Group had no significant commitments as of 30 June 2025 related to investments.

Parent company

Net sales for the first six months for the parent company amounted to SEK 172m (153). Profit for the same period was SEK 40m (43).

Cash and cash equivalents, including shortterm investments, as of 30 June 2025 amounted to SEK 199m (217).

Employees

The average number of employees during the second quarter was 107 (100), of whom 24 (24) were employed in the Chinese subsidiary. The number of employees at the end of the period was 110 (104), of whom 24 (24) were employed in the Chinese subsidiary. The number of men employed was 58 and number of women employed was 52 at the end of the period.

6 Mips AB (publ) — Q2 Interim Report January – June 2025

* For information and derivation of adjusted items, please see pages 17-18.

Condensed consolidated income statement

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Net sales	135	133	251	216	483
Cost of goods sold	-35	-36	-67	-61	-133
Gross profit	100	97	184	154	350
Selling expenses	-22	-19	-42	-39	-77
Administrative expenses	-30	-16	-53	-31	-60
Research and development expenses	-11	-10	-21	-19	-39
Other operating income and expenses	4	0	-3	0	0
Operating profit/loss	41	52	65	65	174
Financial income and expenses	0	0	1	1	8
Net financial items	0	0	1	1	8
Profit/loss before tax	41	52	66	67	183
Income taxes	-9	-11	-15	-15	-42
Profit/loss for the period	32	40	51	52	141
Earnings per share basic, SEK	1.20	1.53	1.91	1.96	5.32
Earnings per share diluted, SEK	1.20	1.53	1.91	1.96	5.32
Average number of shares for the period, basic (thousand)	26,491	26,491	26,491	26,491	26,491
Average number of shares for the period, diluted (thousand)	26,493	26,492	26,505	26,491	26,503

Condensed consolidated statement of comprehensive income

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Profit/loss for the period	32	40	51	52	141
Other comprehensive income
Items that may subsequently be transferred to profit or loss
Foreign currency translation	-6	-1	-19	2	4
Changes in the fair value of cash flow hedges	-	-1	-	-4	-5
Tax on components in other comprehensive income	-	0	-	1	1
Items that cannot be transferred to profit or loss	-	-	-	-	-
Other comprehensive income for the period	-6	-1	-19	-1	0
Comprehensive income for the period	25	39	31	51	141

Condensed consolidated balance sheet

SEKm	30 Jun 2025	30 Jun 2024	31 Dec 2024
ASSETS
Non-current assets
Intangible assets	68	69	69
Property, plant and equipment	14	9	8
Right-of-use assets	10	12	13
Participations in associated companies	60	78	74
Other financial assets	0	0	0
Total non-current assets	152	169	165
Current assets
Inventories	6	7	8
Accounts receivable	149	136	156
Other current receivables	43	69	29
Current investments	0	0	0
Cash and cash equivalents	244	266	382
Total current assets	442	478	575
TOTAL ASSETS	594	647	739
EQUITY AND LIABILITIES
Equity
Share capital	3	3	3
Other paid in capital	385	383	383
Reserves	-13	4	6
Retained earnings incl profit/loss for the period	128	161	250
Total equity	502	551	641
Non-current liabilities
Lease liability	3	7	6
Other liabilities	-	10	10
Deferred tax liability	4	5	4
Total non-current liabilities	6	21	20
Current liabilities
Lease liability	6	5	6
Accounts payable	46	46	45
Other liabilities	33	24	26
Total current liabilities	85	75	78
TOTAL EQUITY AND LIABILITIES	594	647	739

Condensed consolidated statement of changes in equity

SEKm	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Opening equity for the period	641	657	657
Comprehensive income for the period
Profit/loss for the period	51	52	141
Other comprehensive income for the period	-19	-1	0
Comprehensive income for the period	31	51	141
Transactions with owners
Premium on issue of warrants	2	3	3
Dividend	-172	-159	-159
Total transactions with the owners	-170	-156	-156
Closing equity for the period	502	551	641

Consolidated statement of cash flows

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Operating activities
Profit before tax	41	52	66	67	183
Adjustment for non-cash items	-3	5	8	9	21
Income taxes paid	-14	-14	-23	-29	-21
Cash flow from operating activities before change in working capital	24	43	51	48	183
Cash flow from changes in working capital
Increase (-)/decrease (+) of inventories	-1	-3	1	-3	-4
Increase (-)/decrease (+) of current receivables	-14	-30	-11	-44	-56
Increase (+)/decrease (-) of current liabilities	10	19	13	19	19
Cash flow from operating activities	18	29	55	20	142
Investing activities
Acquisition of intangible assets	-1	-1	-3	-2	-6
Acquisition of property, plant and equipment	-6	-1	-8	-2	-4
Other financial non-current assets	0	-	0	-	-
Cash flow from investing activities	-8	-2	-12	-4	-10
Financing activities
Premium received from issue of warrants	2	-	2	3	3
Paid dividend	-172	-159	-172	-159	-159
Amortization of lease debt	-1	-1	-3	-3	-6
Cash flow from financing activities	-172	-160	-173	-159	-162
Net change in cash & cash equivalents	-161	-133	-130	-143	-29
Cash & cash equivalents at beginning of period	408	400	382	408	408
Exchange-rate difference, cash and cash equivalents	-3	-1	-8	2	4
Cash & cash equivalents at end of period	244	266	244	266	382

Condensed parent company income statement

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Net sales	94	94	172	153	338
Cost of goods sold	-7	-8	-11	-15	-29
Gross profit	88	86	161	138	309
Selling expenses	-22	-19	-41	-38	-75
Administrative expenses	-29	-16	-52	-30	-58
Research and development expenses	-11	-9	-21	-19	-37
Other operating income and expenses	6	0	1	2	5
Operating profit/loss	31	43	49	53	144
Financial income and expenses	1	0	1	2	30
Profit after financial items	32	43	51	55	174
Appropriations	-	-	-	-	3
Appropriations	-	-	-	-	3
Profit/loss before tax	32	43	51	55	177
Income taxes	-7	-9	-11	-11	-33
Profit/loss for the period	25	34	40	43	144

Condensed parent company statement of comprehensive income

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Profit/loss for the period Other comprehensive income	25	34	40	43	144
Items that may subsequently be transferred to profit or loss
Changes in the fair value of cash flow hedges	-	-1	-	-4	-5
Tax on components in other comprehensive income	-	0	-	1	1
Items that cannot be transferred to profit or loss	-	-	-	-	-
Other comprehensive income for the period	-	-1	-	-3	-4
Comprehensive income for the period	25	33	40	40	140

Condensed parent company balance sheet

SEKm	30 Jun 2025	30 Jun 2024	31 Dec 2024
ASSETS
Non-current assets
Intangible assets	68	69	69
Property, plant and equipment	14	8	8
Participations in Group companies	1	1	1
Participations in associated companies	80	80	80
Other financial assets	2	1	1
Total non-current assets	164	159	159
Current assets
Inventories	0	0	0
Accounts receivable	89	85	100
Other current receivables	40	66	25
Current investments	0	0	0
Cash & cash equivalents	199	217	340
Total current assets	328	368	465
TOTAL ASSETS	492	527	624
EQUITY AND LIABILITIES
Equity
Restricted equity	4	4	4
Non restricted equity	426	456	556
Total equity	430	461	560
Untaxed reserves	24	26	24
Total untaxed reserves	24	26	24
Non-current liabilities
Other liabilities	-	10	10
Deferred tax liability	-	-	-
Total non-current liabilities	-	10	10
Current liabilities
Accounts payable	13	12	12
Other current liabilities	25	18	17
Total current liabilities	38	30	29
TOTAL EQUITY AND LIABILITIES	492	527	624

Other information

Information about the parent company

Mips AB (publ), corp. reg. no. 556609-0162, is a Swedish public company with its registered office in Stockholm, Sweden. The company's shares are listed on Nasdaq Stockholm Large Cap under the ticker MIPS.

Accounting policies

The consolidated financial statements have been prepared in accordance with the IFRS Accounting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretative statements by the IFRS Interpretations Committee (IFRIC) as adopted by the European Commission for use in the EU that were presented in the Group's 2024 Annual and Sustainability report. The standards and interpretative statements applied were in effect as of 1 January 2025 and had been adopted by the EU. Changed accounting policies as of 1 January 2025 is described below. Furthermore, the Swedish Corporate Reporting Board's recommendation RFR 1 Supplementary Accounting Rules for Groups has been applied. This interim report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting and the applicable provisions of the Annual Accounts Act and the Securities Market Act. The interim report for the parent company has been prepared in accordance with the Annual Accounts Act and the Swedish Corporate Reporting Board's recommendation RFR 2, Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A are incorporated in the financial statements and their accompanying notes as well as in other parts of this interim report.

New accounting standards from 1 January 2025

The new or amended IFRS effective as of 2025 have not had any significant impact on the Group's financial statements.

Valuation basis applied when preparing the financial statements

Assets and liabilities are recognized at historical cost, except for currency derivatives and short-term investments which are based on fair value.

Functional currency and presentation currency

The parent company's functional currency is Swedish kronor (SEK), which is also the reporting currency for the Group. This means that the financial statements are presented in SEK. All amounts are, unless otherwise stated, rounded to the nearest SEKm.

Estimates in the financial statements

It is Mips' assessment that the Group does not have any assets or liabilities whose estimated reported value entails a significant risk for a material adjustment during the coming year.

Adjustments

Certain financial information presented in this report have been rounded and thus the tables do not necessarily tally.

Alternative performance measures

The company is following the European Securities and Markets Authority's (ESMA) guidelines on alternative performance measures. Alternative performance measures are financial measures that cannot be directly read in or derived from the financial statements. These financial measures are intended to help company management and investors analyze the Group's performance. Investors should not consider these alternative performance measures to be a substitute for the financial statements prepared in accordance with IFRS, but rather a supplement to them. Explanation of alternative performance measures see page 17-18. Definitions of alternative performance measures are presented in the Annual and Sustainability report and on www.mipscorp.com.

Segment

Mips' operations are managed as one segment since this reflects the Group's operations, financial monitoring and management structure.

Seasonal variations

Mips' sales are partly subject to seasonal variations. The Group's net sales and operating profit have historically been weakest during the first quarter of the year and strongest during the fourth quarter. Mips has chosen to divide its business into three main helmet categories: Sports, Motorcycle, and Safety. The largest helmet category, Sports, mainly consists of the bike and snow sub-categories which follow certain seasonable patterns. The majority of Mips' sales in the bike sub-category takes place during the second half of the year when bike helmets are manufactured for the important spring and summer season. In the snow sub-category, the majority of Mips' sales takes place in the first half of the year so that helmets can be delivered for the winter season. Sales in the Motorcycle and Safety categories comprise a smaller proportion of Mips total sales, which is why no clear seasonal patterns are evident in these categories.

Risks and uncertainties

Mips is an international company and, as such, its operations can be affected by a number of risk factors in the form of both operating and financial risks. Risks related to the industry and the company include, but are not limited to, market acceptance and knowledge of both the harmful effects of rotational motion to the brain and increased competition. As an ingredient brand, Mips is also dependent upon its customers' ability to reach end-users and on end-user demand. An economic downturn or change in end-user's preferences could have a negative impact on the Group's net sales and profitability. The company is dependent on its intellectual property rights and technology and in certain cases the protection may be inadequate, or Mips may incur significant costs to protect its intellectual property rights which could have an adverse impact on the company's operations, earnings and/or financial position. Furthermore, the company is exposed to risks related to legal

processes regarding product liability issues and other types of legal issues. Even though these risks are mitigated by insurance coverage, to the extent possible, they could result in significant costs for the company.

Mips is also exposed to external factors and geopolitical uncertainty over which the company has no control, but which can have an adverse impact on future market developments. There is an evolving global trade landscape and a volatile macroeconomic situation. Mips still believes that long-term demand for the company's products is robust. Mips sells all products based on Incoterms Ex Works, which means that the buyer takes responsibility for transport costs, fees, taxes, tariffs and so on. Mips see continued risks in the supply chain that could lead to insolvency among the company's customers. If Mips' customers become insolvent, this could have a negative impact on the Group. Mips has continuously an active dialogue with its customers to be able to identify and react on any eventual insolvency situations at an early stage. The company has not noticed any material issues with payments during the quarter with any of its customers. The company is following the development and relevant authorities' recommendations closely and are taking the measures deemed necessary to minimize the short-term and long-term impacts on Mips.

The company's executive management actively manages both operating and financial risks. The above statement applies for both the parent company and the Group.

For further information about Mips' risks and uncertainties see Mips' Annual and Sustainability report for 2024 on page 54-58.

Distribution of revenue

The company's revenue primarily comprises sales of component kits (license and components) to helmet manufacturers. Sales of services is attributable to the development of Mips' technology for a specific customer and helmet model. Revenues from services decreased due to somewhat lower activity in number of projects during the quarter as many of our customers have focused their resources to relocate production outside of China.

Income by nature

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Revenue recognized at the time of delivery
Sales of goods	129	125	242	203	457
Revenues reported over time
Sales of services	6	8	9	13	26
Total	135	133	251	216	483

Income by region

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
North America	66	72	129	119	256
Europe	43	30	76	51	120
Sweden	14	14	27	19	42
Asia and Australia	12	17	19	26	64
Total	135	133	251	216	483

The company's revenue is concentrated to customers in North America and Europe. The substantial concentration of sales in North America is explained by the large number of helmet manufacturers based in this geographical region. Specification by region is based on customers' domicile and not distribution. Revenues increased during the second quarter with 1 percent mainly driven by Europe with a growth of 43 percent. North America had a negative growth of 8 percent.

Income per helmet category

SEKm	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Full year 2024
Sports	125	122	225	193	437
Motorcycle	6	8	16	15	28
Safety	5	4	11	8	18
Total	135	133	251	216	483

Mips has chosen to divide its business into three main helmet categories. Thus, the company's revenues are distributed over these helmet categories. Revenues for the second quarter in Sports increased by 3 percent. In Motorcycle revenues decreased by 28 percent and in Safety revenues increased by 12 percent.

Currency exposure

Mips invoices its customers in two foreign currencies, USD and CNY.

The company's license fee, which represents the majority of the company's revenues, is invoiced in USD and fluctuations in the exchange rate have a significant impact on Mips' net sales and profitability. A 10 percent change in the USD exchange rate would impact EBIT with approximately +/- SEK 31m (23) on the full-year figures for 2024. From 2025 fluctuations in exchange rates fully affect the income statement. During 2024 Mips has applied hedge accounting, which was discontinued in October 2024.

Most of the company's sales of components are in China and are invoiced in CNY. However, since the company has both revenues and costs related to components in CNY, the exposure to the CNY exchange rate is relatively limited. For further information, see the company's Annual and Sustainability report for 2024 page 78.

Derivatives, short-term investments and non-current liabilities

As of 30 June 2025, no derivatives remain in the Group. The fair value of the derivatives as of 30 June 2024 amounted to a net financial asset of SEK 1m. Hedge accounting has been applied whereby the unrealized change in fair value of the outstanding derivatives has primarily been recognized in Other comprehensive income. Financial instruments (derivatives) are valued at fair value on the balance sheet and belongs to level 2 and short-term investments belong to level 1 according to IFRS 13. The fair value of short-term investments as of 30 June 2025 amounted to SEK 0m (0). Mips has had a non-current liability regarding contingent additional purchase consideration of USD 1m attributable to an asset acquisition in January 2022 regarding patent rights and certain other intellectual property rights which has been valued at accrued acquisition value. In June 2025, management have made the assessment that the criteria for the liability of the conditional additional purchase price is not completely fulfilled and therefore the liability has been completely revaluated. The revaluation of SEK 9m has been reported as other operating income.

Other information/Investments in associated companies

Quintessential Design, Inc. ("Quin") is an associated company to Mips and are reported by use of the equity method. For the first six months a profit share of SEK -4m has been reported as other operating expenses.

Share capital and number of shares

As of 30 June 2025, the total registered number of shares amounted to 26,491,122 (26 493 273) and the share capital amounted to SEK 2,649,112 (2 649 327). All shares are ordinary shares and carry equal voting rights. The shares have a nominal value of SEK 0.10.

The number of outstanding shares as of 30 June 2025 was 26,491,122.

Share-based incentive programs

At the Annual General Meeting 2023, it was resolved to approve three long term incentive programs, Warrant program 2023/2026, Warrant program 2024/2027 and Warrant program 2025/2028, for the senior executives and certain key persons in Mips. In total, 429,000 warrants have been issued divided upon a maximum of 143,000 warrants per program. In the 2023/2026 program 82,100 warrants were allocated to the participants, in the 2024/2027 program 46,070 warrants were allocated to the participants and in the program 2025/2028, which was launched during the second quarter 2025, 23,000 warrants were allocated to the participants. The total number of issued warrants of 429,000 can lead to a dilution of approximately 1.6 percent. The subscription price in the first program amounts to SEK 396.27 per Mips share (before recalculation), in the second program it amounts to 388.25 SEK per Mips share (before recalculation) and in the third program it amounts to 538.23 SEK per Mips share. Each warrant entitles to subscription of one new share in the company. The exercise price and number of shares shall be recalculated based on, among other things, paid dividend in accordance with the terms and conditions for the warrants. In the first program the exercise price after paid dividend is SEK 384.67. In the second program the exercise price after paid dividend is SEK 376.88.

The company has no other costs for the warrant programs other than administrative costs regarding advisors etc. in connection with the preparation of the documentation and the resolution to issue the warrants etc.

Disputes

The company is not a party to any significant legal dispute.

Related-party transactions

No material related-party transactions have been conducted during 2025 except payment of dividend.

Events after the end of the reporting period

No significant events have occurred after the end of the reporting period.

The Board of Directors and the President and CEO affirm that this interim report provides a true and fair view of the Parent Company's and the Group's position and earnings, and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, 16 July 2025

Magnus Welander Thomas Bräutigam Maria Hedengren Chairman of the Board Board member Board member

Board member Board member Board member

Anna Hällöv Jonas Rahmn Jenny Rosberg

Max Strandwitz President and CEO

Auditors report

This report has not been reviewed by the company's auditors.

Quarterly consolidated performance measures

	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	LTM
Net sales	135	116	144	123	133	83	91	77	102	88	107	113	206	518
Net sales growth, %	1	40	58	61	31	-6	-15	-32	-51	-35	-46	-39	45	35
Gross profit	100	83	105	91	97	57	64	56	71	62	77	78	151	379
Gross margin, %	74.2	72.1	72.9	73.4	72.9	69.4	70.2	73.1	70.0	70.8	72.3	69.0	73.4	73.2
Operating profit	41	24	62	48	52	14	17	15	23	15	24	37	107	174
Operating margin, %	30.1	20.9	42.9	38.5	38.9	16.5	18.8	19.5	22.6	17.5	22.0	32.8	51.7	33.6
Adjusted operating profit	41	24	62	48	52	14	17	15	23	15	24	37	107	174
Adjusted operating margin, %	30.1	20.9	42.9	38.5	38.9	16.5	18.8	19.5	22.6	17.5	22.0	32.8	51.7	33.6
EBITDA	45	29	66	52	57	18	22	20	28	20	29	41	110	193
EBITDA-margin, %	33.5	25.0	46.3	42.4	42.4	22.2	23.9	25.5	27.1	22.5	27.1	36.3	53.5	37.3
Depreciation/ amortization	5	5	5	5	5	5	5	5	5	4	6	4	4	19
Earnings per share basic, SEK	1.20	0.71	2.00	1.37	1.53	0.44	0.60	0.52	0.76	0.55	0.71	1.10	3.04	5.27
Earnings per share diluted, SEK	1.20	0.71	1.99	1.37	1.53	0.44	0.60	0.52	0.76	0.55	0.71	1.10	3.01	5.27
Equity ratio, %	85	87	87	87	85	89	89	89	85	88	82	76	74	85
Cash flow from operat ing activities	18	36	87	36	29	-10	31	12	9	-42	47	97	55	177
Average number of employees	107	106	106	102	100	103	104	102	99	98	96	93	89	105

Definitions and descriptions of performance measures and alternative performance measures

For definitions and description of performance measure and alternative performance measures, please visit www.mipscorp.com.

Explanation of alternative performance measures

Organic growth

Since Mips invoices its goods and services in USD and CNY at the same time as the accounting currency is SEK, it is essential to create an understanding of how the company performs excluding currency exchange effects when recalculating sales. This key figure is expressed in percentage points of the previous year's net sales, a high growth rate consequently leads to a greater currency impact. For net sales growth, impact of foreign currencies and acquisition related effects on net sales, see below.

Organic growth	Apr-Jun 2025	Jan-Jun 2025
Net sales growth	1%	16%
Net Sales in USDm	10	17
Net Sales in SEKm at 2025 average USD exchange rate	94	171
Net Sales in SEKm at 2024 average USD exchange rate	104	183
Impact currency in absolute numbers	-11	-12
Net Sales 2024 SEKm	133	216
USD impact on growth	-8%	-6%
Net Sales in CNYm	30	56
Net Sales in SEKm at 2025 average CNY exchange rate	41	78
Net Sales in SEKm at 2024 average CNY exchange rate	44	82
Impact currency in absolute numbers	-4	-3
Net Sales 2024 SEKm	133	216
CNY impact on growth	-3%	-1%
Organic growth	12%	23%

Net sales, last 12 months rolling

Given the company's historical growth momentum, it is important to continuously follow the business performance from a long-term perspective and not focus solely on specific quarterly results.

Other

For further information, please contact: Max Strandwitz, President and CEO Max.Strandwitz@Mipsprotection.com tel +46 709 61 17 54

Karin Rosenthal, CFO Karin.Rosenthal@Mipsprotection.com tel +46 768 34 63 66

Mips will present the interim report at an audiocast via teleconference on 16 July 2025 at 10.00 a.m. CET. To participate, please register at the webcast or telephone conference at below links:

Webcast: https://edge.media-server.com/mmc/p/m8fhauef Telephone conference: https://register-conf.media-server.com/register/BI844689dc1bc34f70b37cc01e442d2164

FINANCIAL CALENDAR	2025-2026
22 October 2025:	Q3 Interim report January-September 2025
11 February 2026:	Q4 Year-end-report 2025
19 March 2026:	Annual and Sustainability report 2025
23 April 2026:	Q1 Interim report January-March 2026

About Mips

Financial targets

Mips' long-term financial targets should not be viewed as a forecast but rather as an objective which the Board of Directors and senior executives believe is a reasonable long-term objective for the company.

GROWTH:

Net sales >SEK 2 billion no later than 2029

PROFITABILITY: EBIT margin >50%

DIVIDEND POLICY: >50% dividend of annual net earnings

Profitability

Sustainability targets

Mips is a global leader in its field and also aims to be at the forefront of its industry when it comes to sustainability. You can read about Mips' sustainability work in Mips' Annual and Sustainability report for 2024.

Our long-term ambition includes: SCIENCE BASED TARGETS:

Mips has committed to reduce emissions in line with the Paris Agreement's goal to limit global warming to 1.5 degrees Celsius. This means that Mips has set a science-based target, approved by SBTi, to reduce its total emissions by 42 percent by the end of 2030, based on a base year of 2021.

UN GLOBAL COMPACT:

Mips' has committed itself, and indirectly also its manufacturing partners, to adhere to the ten principles of the UN Global Compact. Long term target 2030: Reach an average supplier social audit score of 90 (out of 100) with our manufacturing suppliers. CIRCULAR PRODUCT OFFERING:

Mips uses post industrial recycled plastic in its solutions but the ambition is however to create solutions that are more sustainable and support the climate transition. Long term target 2030: Reach 90 percent recycled material usage in total solutions sold.

About Mips

Mips specializes in helmet-based safety and is a world leader in this area. Based on an ingredient brand business model, Mips safety system is sold to the global helmet industry. The solution is based on over 25 years of research and development together with the Royal Institute of Technology and the Karolinska Institute, both located in Stockholm, Sweden. Mips' headquarter with 86 employees engaged in research and development, sales and administration is in

Stockholm, where its product and technology test facility is also located. Production and manufacturing operations take place at sub-contractor facilities. Mips' net sales during 2024 amounted to SEK 483m and the operating margin was 36 percent.

The Mips share is traded on the Nasdaq Stockholm stock exchange. For more information, visit https://www.mipscorp.com.

This information is of such nature that Mips AB (publ) is obliged to disclose it in accordance with the EU's Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, on 16 July 2025 at 07.30 a.m. CET.

This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish interim report and the English translation, the former shall take precedence.

Mips AB Kemistvägen 1B, SE-183 79 Täby Mipsprotection.com