Financial and alternative performance measures

Financial and alternative performance measures by year

All amounts are in SEKm unless stated otherwise.

Group

NET SALES AND PROFIT/LOSS Net sales Net sales growth, % Gross profit Gross margin, % Operating profit/loss Operating margin, % Adjusted operating profit (Adjusted EBIT) Adjusted operating margin (Adjusted EBIT), % Amortization EBITDA EBIT margin, % Profit for the year

GROUP STATEMENT OF CASH FLOWS Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities 2020 2019 2018 2017 2016

365 268 193 126 87 36 39 53 45 75 265 198 142 93 62 72.8 74.1 73.9 74.3 71.3 167 108 73 21 18 45.8 40.3 37.9 16.6 21.2 168 111 73 28 24 46.2 41.2 37.9 22.1 28 9 7 2 1 1 176 115 75 22 19 48.2 42.8 38.8 17.4 22.2 129 85 56 16 14

116 63 69 11 16 –15 –49 –7 –5 –4 –15 –65 – 145 0

FINANCIAL STANDINGS Total assets Equity Equity ratio, % 517 343 319 242 75 426 298 276 221 57 82 87 86 91 76

KEY FIGURES PER SHARE Earnings per share basic, SEK Earnings per share diluted, SEK 4.96 3.35 2.23 0.64 0.67 4.93 3.28 2.21 0.64 0.65

Average number of shares outstanding – before dilution 25,996 25,230 25,230 24,521 21,479 Average number of shares – after dilution 26,168 25,837 25,545 24,559 22,014

EMPLOYEES Average number of employees 55 43 35 29 17

Alternative performance measures

Non-IFRS performance measures Definition Reason for use of measure

Gross profit

Gross margin (%) Net sales less cost of goods sold. Gross profit is the profit measure used by Executive Management to monitor the profitability directly related to net sales.

Gross profit as a percentage of net sales during the period. The measure is a material complement to the gross profit, which only states the change in absolute figures, and provides an understanding of value creation over time.

Operating profit (EBIT) Profit before financial items and taxes. The measure is used to measure the profit generated by the operating activities.

Operating margin (EBIT margin) (%)

Adjusted operating profit (Adjusted EBIT) Operating profit as a percentage of net sales during the period. The measure is used to assess profitability generated by the operating activities and provides an understanding of value creation over time.

Operating profit excluding items affecting comparability such as acquisition income and expenses, as well as listing costs. Adjusted operating profit is a measure used by MIPS to maintain comparability between periods and to be able to report a result for operating activities.

Adjusted operating margin (%) Adjusted operating profit as a percentage of net sales during the period. See explanation under the description for “Adjusted operating profit.”

Equity ratio (%) Equity in relation to total assets. The measure states the proportion of total assets composed by equity and contributes to a greater understanding of the company’s capital structure.

Cash flow from operating activities Cash flow from the primary incomegenerating operating activities. The cash-flow measure is used by Executive Management to monitor the cash flow generated by the operating activities.

Last 12 months rolling comparison (LTM) Indicates net sales and adjusted operating profit as a 12-month period from the most recent quarter. The key performance measure provides Executive Management with an indication of performance over time without having to wait to compare with the next calendar year to do so.

Average number of employees The average number of employees converted to full-time positions. Converting the number of employees to full-time positions makes the measure comparable over periods and in the event of differences in working hours.

MIPS uses certain performance measures that are not defined in the IFRS rules for financial reporting which MIPS applies. The alternative performance measures presented are a complement to the IFRS-defined measures and are used by MIPS’ management to monitor and guide operations. Accordingly, these alternative performance measures, as they are defined, are not fully comparable with other companies’ performance measures with the same name. For more information regarding purpose of each alternative performance measurement and financial derivation, please visit www.mipscorp.com/investors/