Slide 1: Q4 2023
Q4 2023 March 8, 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: De-listing from Oslo Stock Exchange
De-listing from Oslo Stock Exchange • Asetek will delist from Oslo Stock Exchange on 27 March 2024, with the last trading day on 26 March 2024 • Asetek will deregister from VP Norway on 3 April 2024 • Shareholders wishing to continue trading on a public market must transfer their shares to Nasdaq Co
Slide 4: Q4 Highlights
Q4 Highlights • Fourth-quarter revenue of $16.6 million, up 75% vs. Q4 2022 • Gross margin of 47% compared with 41% in Q4 2022 • Q4 adjusted EBITDA of $2.2 million, compared with loss of $0.6 million in Q4 2022 • SimSports revenue of $2.2 million in Q4, compared with $0.2 million in Q4 2022 • Full-y
Slide 5: 2023 milestones and 2024 focus areas
2023 milestones • Second-highest-ever full year Group revenue of $76.3 million, up 51% from 2022 • Full year adjusted EBITDA of $15.9 million vs. loss of $0.8 million in 2022 • Launched 54 new Liquid Cooling- and 37 new SimSports products • Passed 11 million products shipped since foundation in 2000
Slide 6: Growth driven by Liquid Cooling shipments and expanding SimSports product range
Growth driven by Liquid Cooling shipments and expanding SimSports product range Annual Group revenue and EBITDA margin USD million 100 150% 90 130% 79,8 80 76,3 110% 72,8 70 67,3 90% 60 58,2 70% 54,3 50,9 50,7 50 50% 40 36,0 21% 21% 30% 15% 12% 14% 11% 9% 30 1% -2% 10% 20,8 20 -10% -33% 10 -30% 0 -5
Slide 7: Quarterly revenue volatility continues
Quarterly revenue volatility continues Quarterly Group revenue USD million 27,9 25,0 24,5 23,2 21,6 20,5 18,1 16,9 16,6 15,7 14,8 14,1 13,9 13,5 10,4 9,1 9,5 Q4 2019 Q1 2020 Q2 2020 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 7
Slide 8: 2024 guidance
2024 guidance Annual Group revenue USD million • Continued low revenue visibility 100 ‒ Signs of improving macro 90 ‒ Mixed regional picture and geopolitical tensions 80 ‒ Some Liquid Cooling OEMs exiting 2023 with elevated Guidance range inventories 70 • Full-year 2024 revenue growth is anticipated
Slide 9: Leading offering for gamers and enthusiasts
Leading offering for gamers and enthusiasts Liquid cooling SimSports Enthusiasts and Gaming/Performance PCs do-it-yourself (DIY) Liquid cooling for competitive and Immersive equipment for gamers, racing committed gamers and enthusiasts and automobile enthusiasts 9
Slide 10: 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 11: Liquid cooling
Liquid cooling 11
Slide 12: Long-term profitable Liquid Cooling business
Long-term profitable Liquid Cooling business Liquid cooling EBITDA and margin USD million 9,0 Accumulated EBITDA 2020 – 2023: $81 million 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 60% 5,0 4,7 4,5 4,2 50% 3,9 4,0 40% 40% 3,0 2,6 2,6 37% 37% 34% 35% 35% 35% 33% 2,4 35% 30% 2,1 30% 1
Slide 13: Stable product release activity going into 2024
Stable product release activity going into 2024 • 12 new liquid cooling products started shipping in Q4 No. of liquid cooling products started shipping ‒ Three featuring As k’s 8th generation liquid coolers with the 23 most advanced technology developed to date • 10 new products estimated to start s
Slide 14: Stable Liquid Cooling OEM base
Stable Liquid Cooling OEM base • Currently shipping to over 20 OEMs Top 5 liquid cooling customers1 Asus ROG STRIX with As k’s new Gen7 v2 technology • Top five represented 91% of Liquid Cooling revenue in 2023, vs. 85% in 2022 • Ambition to increase diversification over time 1) Sorted alphabeticall
Slide 15: Broadening addressable Liquid Cooling market
Broadening addressable Liquid Cooling market • A value offering tailored for a new and larger market segment ‒ Demand from larger customers to address the lower end of the Liquid Cooling premium segment with price competitive high- quality solutions ‒ Targeting China and other value-oriented markets
Slide 16: Liquid cooling strategic development
Liquid cooling strategic development Goal Strategy Development and outlook • Broaden addressable ma rket • Deploy value offering tailored for a new and larger market segment, meeting customer demand Further develop • R&D and product • Focus on delivery of core liquid cooling solutions leadership in
Slide 17: SimSports
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Slide 18: Building full range of high-quality sim racing products
Building full range of high-quality sim racing products • Eight new products released in Q4 2023 ‒ Two button boxes and six wheel-rims • Total of 21 new products released in 2023 • Various SimSports accessories to start shipping in Q1 2024 • Q4 2023 revenue of $2.2 million vs. $0.2 million in Q4 202
Slide 19: Realistic life-like approach to sim racing gear paying off
Realistic life-like approach to sim racing gear paying off • Delivered almost 400% growth in 2023 driven by multiple new Conclusion products and customers globally Asetek’s concept works! • On track for a full range of high-quality sim racing products by “Innovations in simracing have end-2024 becom
Slide 20: SimSports strategic development
SimSports strategic development Goal Strategy Development and Outlook • Initial product development phase completed with the availability of basic ecosystems (wheel, wheelbase and pedals) at each price tier • Leverage core mechatronics capabilities • Offer full range of high-quality sim racing produ
Slide 21: Financials
Financials 21
Slide 22: Income statement
Income statement Figures in USD (000's) Q4 2023 Unaudited Q4 2022 Unaudited 2023 2022 • Q4 and full-year revenue reflects increased sales of Liquid Revenue Cost of sales $ 16,598 $ 8,875 9,458 $ 5,568 76,332 41,624 $ 50,650 29,885 cooling and SimSports products vs. the previous year Gross profit 7,7
Slide 23: Continued positive margin development
Continued positive margin development Quarterly Group gross margin development 50% 9,0 • Q4 2023 gross margin of 46.5% vs. 41.1% in Q4 2022 48% 46,5% 45,9% 46% 45,3% 8,5 • 2023 margin 45.5% (41.0%) 44,0% 44% 42,3% 42,5% 8,0 • Margin expansion driven by a combination of richer 41,8% 42% 41,1% product
Slide 24: Balance sheet
Balance sheet USD thousands at December 31, 2023 120 000 • USD 9.1 million cash position at end 2023 100 000 Current • Working capital reflects improved operating cash flow in 80 000 liabilities 2023 Non-current Non-current assets liabilities • Investments in new HQ of USD 4.4 million in Q4 and USD
Slide 25: Nearing completion of new development center and HQ
Nearing completion of new development center and HQ • Progressing on schedule and budget for completion in mid-2024 • Signed three-year lease for 20% of the space at attractive terms • To evaluate sale-leaseback market post completion vs. standard long-term mortgage financing 25
Slide 26: 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 27: Summary and outlook
Summary and outlook • Strong end-user interest in Asetek liquid cooling and sim racing products • Full-year 2024 revenue growth is anticipated in the range of -5% to +5% vs. 2023 • Full-year adjusted Group EBITDA margin expected in the range of 12% to 17% • Expanding addressable Liquid Cooling marke
Slide 28: Q&A
Q&A 28
Slide 29: Appendix
Appendix 29
Slide 30: Balance sheet summary
Balance sheet summary Figures in USD (000's) 31 Dec 2023 31 Dec 2022 ASSETS Total non-current assets 71,954 50,799 Total current assets 30,785 27,816 Total assets $ 102,739 $ 78,615 EQUITY AND LIABILITIES Total equity 66,126 42,748 Total non-current liabilities 2,596 1,739 Total current liabilities
Slide 31: Cash flow summary
Cash flow summary Year ended Figures in USD (000's) 31 Dec 2023 31 Dec 2022 Net cash provided by (used in) operating activities 16,280 (8,354) Net cash used in investing activities (27,373) (25,395) Net cash provided by (used in) financing activities 12,316 18,327 Effect of exchange rate changes on
Slide 32: Statement of equity
Statement of equity Figures in USD (000's) Year ended 31 Dec 2023 31 Dec 2022 Equity at January 1 $ 42,748 $ 48,388 Total comprehensive income for the period Income for the period 6,001 (4,325) Foreign currency translation adjustments 721 (1,971) Total comprehensive income for the period 6,722 (6,29
Slide 33: www.asetek.com
Asetek www.asetek.com