Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q3 2024 Earnings Presentation
26 slides from Asetek A/s's earnings presentation, Dec 4, 2024
Slide 1: Q3 2024
Q3 2024 November 7, 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements concerning As k’s financial condition, results of operations and business. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of fu
Slide 3: Q3 2024 financial highlights
Q3 2024 financial highlights Group revenue Group Gross profit Group adj. EBITDA USD million USD million USD million 20,5 16,6 9,4 4,8 12,7 7,7 12,2 12,2 5,3 5,8 4,4 2,2 0,0 0,2 (0.5) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 • SimSports business growin
Slide 4: Significant commercial progress in SimSports
Significant commercial progress in SimSports • Signed Designed for Xbox partnership agreement to enter the console market • Two distribution agreements yielding $2 million in Q4 revenue • Appointed VP brand and digital to lead the commercial development • FY 2024 revenue growth expectation maintaine
Slide 5: Positioning Liquid Cooling for growth from 2026
Positioning Liquid Cooling for growth from 2026 • Rapid and unexpected market changes have resulted in lower- than-expected cash flow in 2024 ‒ Segment expected to remain profitable for 2024 and beyond • Measures initiated to increase profitability and strengthen market positioning for growth from 2
Slide 6: Background for the contemplated Rights Issue
Background for the contemplated Rights Issue • Cash flow from operations together with proceeds from rights Cash balance development (USDm) issue in 2023 have been sufficient to finance HQ completion • Rapid and unexpected changes in Liquid Cooling market environment has resulted in a significant di
Slide 7: Updated medium-term ambitions
Updated medium-term ambitions • 2024 guidance is unchanged • In order to achieve the medium-term ambitions Asetek expects a financing need as of today of around USD 20 million du ing m dium m w ic inc ud s c pi s ng n mp n ’s fin nci p si i n in s m 2024 guidance Medium-term ambition Group Liquid Co
Slide 8: Liquid cooling
Liquid cooling 8
Slide 9: Long-term profitable Liquid Cooling business
Long-term profitable Liquid Cooling business Liquid cooling EBITDA and margin USD million 9,0 8,8 100% 8,4 8,0 90% 7,6 7,3 7,1 7,1 80% 7,0 70% 6,0 5,3 5,0 Q3 margin 60% 5,0 4,7 excluding non- recurring item50% 3,9 32% 4,0 3,5 3,3 40% 3,0 40% 2,7 2,6 2,6 37% 37% 35% 35% 35% 33% 2,4 35% 30% 2,1 33% 31
Slide 10: Market leading in premium liquid cooling solutions
Market leading in premium liquid cooling solutions No. of liquid cooling products started shipping • 5 new liquid cooling products started shipping in Q3 2024 • 13 new products estimated to start shipping in Q4 2024 23 • At end of Q3 shipping to over 20 OEMs • Top five customers represented 89% of L
Slide 11: SimSports
SimSports
Slide 12: SimSports scale-up progressing to plan
SimSports scale-up progressing to plan • Q3 2024 revenue of $1.5 million vs. $1.2 million in Q3 Quarterly SimSports revenue USD million 2023 • Xbox license agreement a key milestone in the SimSports 2,2 2,2 growth strategy, set to accelerate growth on the Xbox Series X|S and Xbox One console market
Slide 13: Completing the Invicta product line and preparing mass-market product launch
Completing the Invicta product line and preparing mass-market product launch • Invicta steering wheel started shipping in October, completing the Invicta product line • On track for launch of competitive mass-market product line in H1 2025 • Product development, sales and marketing, and brand buildi
Slide 14: Entering the console market to accelerate SimSports growth
Entering the console market to accelerate SimSports growth PC segment currently served by • An estimated 60 million lifetime players of sim racing games Asetek 16% worldwide ‒ More than 80% of lifetime players are console based, with Xbox being the biggest platform for sim racing ‒ PC players repres
Slide 15: Financials
Financials 15
Slide 16: Income statement
Income statement Figures in USD (000's) Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 • Liquid cooling revenue impacted by lower Unaudited Unaudited Unaudited Unaudited Revenue 12,214 20,477 37,134 59,734 76,332 demand Cost of sales 7,832 11,083 21,630 32,749 41,624 Gross profit 4,382 9,394 15,504 26,985 3
Slide 17: Quarterly revenue development
Quarterly revenue development Quarterly Group revenue USD million 27,9 25,0 24,5 23,2 21,6 20,5 18,1 16,9 16,6 14,8 13,5 13,9 12,2 12,7 12,2 10,4 9,5 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 17
Slide 18: Gross margin development
Gross margin development Quarterly Group gross margin development 50% 9,0 • Q3 2024 gross margin of 35.9% vs. 45.9% in 48% 46,5% Q3 2023 45,9% 46% 45,3% 45,4% 8,5 ‒ One off-impact about 6%-points 44,0% 43,9% ‒ YTD 2024 gross margin of 41.8% vs. 45.9% 44% 42,5% 8,0 9M 2023 42% 41,1% • Stable underlyi
Slide 19: Balance sheet
Balance sheet USD million, at September 30, 2024 • Mandatory, non-cash, write-downs of $18 million to match booked equity towards share-price based valuation models • USD 3.4 million cash position at end Q3 2024 80 Current • Total investment in new HQ amounts to $55.2 million 70 liabilities ‒ $1.3 m
Slide 20: Summary and outlook
Summary and outlook Annual Group revenue USD million 100 • Group 2024 outlook maintained 90 80 • Contemplated Rights Issue to strengthen financial position, fund accelerated SimSports growth strategy 70 and deliver on medium term ambitions 60 2024 revenue • Build on SimSports commercial progress and
Slide 21: Q&A
Q&A 21
Slide 22: Appendix
Appendix 22
Slide 23: Balance sheet summary
Balance sheet summary Figures in USD (000's) 30 Sept 2024 31 Dec 2023 ASSETS Unaudited Total non-current assets 57,485 71,954 Total current assets 21,382 30,785 Total assets $ 78,867 $ 102,739 EQUITY AND LIABILITIES Total equity 41,235 66,126 Total non-current liabilities 21,590 2,596 Total current
Slide 24: Statement of equity summary
Statement of equity summary Nine months ended Figures in USD (000's) 30 Sept 2024 30 Sept 2023 Unaudited Unaudited Equity at January 1 $ 66,126 $ 42,748 Total comprehensive income for the period Income for the period (25,442) 6,816 Foreign currency translation adjustments 286 (468) Total comprehensi
Slide 25: Summary cash flow statement
Summary cash flow statement Nine months ended Figures in USD (000's) 30 Sept 2024 30 Sept 2023 Unaudited Unaudited Net cash provided by (used in) operating activities (917) 12,426 Net cash used in investing activities (22,375) (9,039) Net cash provided by (used in) financing activities 4,073 10,086
Slide 26: www.asetek.com
® OQ Asetek www.asetek.com