Slide 1: Q3 2023
Q3 2023 November 2, 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements concerning Asetek’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
Slide 3: Q3 Highlights
Q3 Highlights • Third-quarter revenue of $20.5 million, up 96% vs. Q3 2022 • Gross margin of 46% compared with 42% in Q3 2022 • Q3 adjusted EBITDA of $4.8 million, compared with loss of $0.6 million in Q3 2022 • SimSports revenue of $1.2 million in Q3, compared with $0.5 million in Q3 2022 • Nine-mo
Slide 4: Low visibility and continued market challenges
Low visibility and continued market challenges 2023 developments Company actions Market backdrop and outlook • Strong interest and positive feedback for • Product development and launch of • Geopolitical events, high inflation, rising Liquid cooling and SimSports products new/more products interest
Slide 5: Revenue and EBITDA margin reflect market volatility
Revenue and EBITDA margin reflect market volatility Total revenue and Liquid cooling EBITDA margin USD thousands 27.850 25.015 24.497 23.185 21.629 20.477 18.069 16.868 14.760 14.147 13.889 13.534 40% 35% 35% 35% 10.435 37% 34% 9.458 35% 33% 29% EBITDA margin 28% 28% 24% Liquid cooling 21% 19% Q2 20
Slide 6: Leading offering for gamers and enthusiasts
Leading offering for gamers and enthusiasts Liquid cooling1 SimSports Enthusiasts and Gaming/Performance do-it-yourself (DIY) PCs Liquid cooling for competitive and Immersive equipment for gamers, racing and automobile enthusiasts committed gamers and enthusiasts 6 1) Previously referred to as Gamin
Slide 7: Global platform with integrated value chain supports long-term growth
Global platform with integrated value chain supports long-term growth Aalborg (Denmark) Product management Xiamen (China) R&D and prototyping Product management Sourcing R&D In-house manufacturing Sourcing Quality Outsourced manufacturing Order management Quality Branding and outbound marketing Orde
Slide 8: Liquid cooling
Liquid cooling 8
Slide 9: Continued strong Liquid cooling cash generation
Continued strong Liquid cooling cash generation Liquid cooling EBITDA USD thousands Accumulated EBITDA: 10.000 $82 million 9.000 Q3 2019 – Q3 2023 8.821 8.406 8.000 7.589 7.266 7.094 7.059 7.000 6.000 5.000 5.000 4.528 4.686 4.233 3.945 4.000 3.000 2.602 2.562 2.373 2.098 2.121 2.000 1.707 1.000 0 Q
Slide 10: High product release activity in 2023 driving revenue growth
High product release activity in 2023 driving revenue growth • Seven new liquid cooling products started shipping in Q3 No. of liquid cooling products started shipping 2023 23 ‒ Four new products featuring Asetek’s 8th generation liquid coolers with the most advanced technology developed to date • E
Slide 11: Expanding the Liquid cooling OEM base with Lian Li launching first product
Expanding the Liquid cooling OEM base with Lian Li launching first product Top 5 liquid cooling customers1 1st Lian Li cooler • Currently shipping to over 20 OEMs • Top five represented 91% of Liquid Cooling revenue LTM, vs. 85% in FY 2022 • Ambition to increase diversification over time • New OEM p
Slide 12: Liquid cooling strategic development
Liquid cooling strategic development Goal Strategy Development and outlook • Focus on delivery of core liquid cooling solutions • R&D and product • Ramp-up of development to bring value-adding innovations to market Further develop development • Develop and ship products with market leading performan
Slide 13: SimSports
SimSports 13
Slide 14: Expanding sim racing product program
Expanding sim racing product program • Quick release adapter started shipping in Q3 2023 • Total of thirteen new products YTD 2023 • Eight new products set to be released in Q4 2023 ‒ Two wheel center parts and six wheel rims • Q3 2023 revenue of $1.2 million vs. $0.5 million in Q3 2022 ‒ Gross marg
Slide 15: Taking center stage at ADAC SimRacing Expo
Taking center stage at ADAC SimRacing Expo • Asetek a main attraction at the expo held 13-15 October in Dortmund, Germany ‒ ~12,000 visitors ‒ Sponsored the expo community trophy which generated 38 million views on various media platforms • Strong audience feedback on the products and the Asetek sta
Slide 16: SimSports strategic development
SimSports strategic development Goal Strategy Development and Outlook • Leverage core mechatronics capabilities • Initial product development phase completed with the availability of Becoming a and global supply chain basic eco-systems (wheel, wheelbase and pedals) at each price tier next-level • De
Slide 17: Financials
Financials 17
Slide 18: Income statement
Income statement Figures in USD (000's) Q3 2023 Unaudited Q3 2022 Unaudited 9M 2023 Unaudited 9M 2022 Unaudited 2022 • Q3 and 9M revenue reflects increased sales of Liquid cooling Revenue Cost of sales $ 20,477 $ 11,083 10,435 $ 6,004 59,734 $ 32,749 41,192 $ 24,317 50,650 29,885 and SimSports produ
Slide 19: Continued positive margin development
Continued positive margin development Quarterly Group gross margin development 50% 9,0 • Q3 2023 gross margin of 45.9% vs. 42.5% in Q3 2022 48% 45,9% 46% 45,3% 8,5 • 9M 2023 margin 45.2% (41.0%) 44,0% 44% 42,3% 42,5% 8,0 • Increase in both periods due to richer product mix, 41,8% 42% 41,1% increased
Slide 20: Balance sheet
Balance sheet Balance sheet USD thousands at September 30, 2023 120.000 • USD 7.3 million cash position at end Q3 2023 100.000 Current liabilities • Increased working capital due to higher activity and 80.000 inventory to meet demand Non-current Non-current liabilities assets • Investments in new HQ
Slide 21: New development center and HQ on track for mid-2024 completion
New development center and HQ on track for mid-2024 completion • Progressing on schedule and budget • Limited cost inflation due to locking in deliveries early • In closing stage with potential additional tenant • To evaluate sale-leaseback market post completion vs. standard long-term mortgage fina
Slide 22: Financial strategy
Financial strategy Goal Strategy Development and outlook • Evolve business model to drive competitiveness and profitability • Product innovation and branding to strengthen market position • Revenue growth and diversification of revenue streams Liquid cooling leadership • Margin protection and optimi
Slide 23: Summary and outlook
Summary and outlook • Strong end-user interest in Asetek liquid cooling and sim Annual Group revenue USD million racing products 100 • Improved liquid cooling market in 2023 with increased 90 customer activity 80 • Focus on growing the SimSports business Midpoint of 70 guidance • Full-year 2023 reve
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Management
Management Founder and CEO CFO COO VP Global Operations André S. Eriksen Peter Dam Madsen John Hamill Henrik Gertz • Long-term entrepreneur and founder of Asetek • Previous positions include International • 30+ years of high tech industry sales, sales • 20+ years in operations management roles, • Pr
Slide 27: Board of Directors
Board of Directors Chairman Vice Chairman Director René Svendsen-Tune Erik Damsgaard Jukka Pertola • 30+ years of management and executive experience in • Experienced Managing Director from the electrical and • 20+ years of management experience in ICT, energy, industry, technology sectors ranging f
Slide 28: Balance sheet summary
Balance sheet summary Figures in USD (000's) 30 Sept 2023 31 Dec 2022 ASSETS Unaudited Total non-current assets 67,226 50,799 Total current assets 32,382 27,816 Total assets $ 99,608 $ 78,615 EQUITY AND LIABILITIES Total equity 65,620 42,748 Total non-current liabilities 14,930 1,739 Total current l
Slide 29: Cash flow summary
Cash flow summary Nine months ended Figures in USD (000's) 30-Sep-23 30-Sep-22 Unaudited Unaudited Net cash provided by (used in) operating activities 12,426 (4,275) Net cash used in investing activities (22,375) (14,397) Net cash provided by (used in) financing activities 10,086 7,808 Effect of exc
Slide 30: Statement of equity
Statement of equity Unaudited Figures in USD (000's) Nine months ended 30-Sep-23 30-Sep-22 Equity at January 1 $ 42,748 $ 48,388 Total comprehensive income for the period Income for the period 6,816 (2,495) Foreign currency translation adjustments (468) (3,411) Total comprehensive income for the per
Slide 31: www.asetek.com
Asetek www.asetek.com