Slide 1: Q1 2022
Q1 2022 28 April 2022
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: Highlights
Highlights • First-quarter revenue of $13.9 million compared with record $25.0 million in Q1 2021 • Gross margin of 38% compared with 43% in Q1 2021 • SimSports orders and backlog of ~$1.5 million per end-April with initial shipments in March and additional products in the pipeline • 2022 Outlook ma
Slide 4: Revenue and EBIDTA margin reflect current market volatility
Revenue and EBIDTA margin reflect current market volatility Group revenue and G&E EBITDA margin USD thousands 27.850 25.015 23.185 21.629 19.536 18.069 17.405 17.103 16.505 15.661 14.147 13.889 13.534 11.179 35% 10.391 35% 35% 32% 33% 34% 31% 9.124 35% 33% 30% EBITDA margin G&E 27% 29% 22% 21% 20% 2
Slide 5: Status update Gaming & Enthusiast market
Status update Gaming & Enthusiast market Early 2022 Outlook • Volatile global situation reflected in 2022 growth expectations • Volatile global situation reflected in 2022 growth expectations • Ambition of 15% annual average revenue growth over time Impact maintained • Uncertainty related to timing
Slide 6: Full throttle for SimSports
Full throttle for “This is pure “I already shaved 1 sec. in SimSports awesomeness” - end user just 1 lap... Man this feels good.” - end user • Started shipments of high-end Invicta sim racing pedals in March ‒ Throttle, brake and add-on clutch, along with the RaceHub software for easy adjustments a
Slide 7: Business overview
Business overview Gaming and Enthusiast Data center SimSports Enthusiasts and Gaming/Performance PCs do-it-yourself (DIY) Liquid cooling for Competitive and Liquid cooling for Immersive equipment for gamers, racing committed gamers and enthusiasts enterprises and automobile enthusiasts 7
Slide 8: Global platform with integrated value chain supports growth and expansion
Global platform with integrated value chain supports growth and expansion 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 London (UK) Order management Bra
Slide 9: Gaming & Enthusiast
Gaming & Enthusiast 9
Slide 10: Product release activity affected by current market uncertainties
Product release activity affected by current market uncertainties 15 12 • Four new products started shipping in Q1 2022 11 10 ‒ One new customers 9 ‒ Including two liquid coolers for GPUs 7 • Eleven new products estimated to start shipping in Q2 2022 ‒ OEMs continue to assess timing of new products
Slide 11: Strengthening a wide and diversified base of Gaming & Enthusiast OEMs
Strengthening a wide and diversified base of Gaming & Enthusiast OEMs Top 5 Gaming and Enthusiast customers1 Top 5 customers revenue split 2) • Currently shipping to over 20 OEMs 100% • Top five represented 89% of Gaming and Enthusiast revenue in YTD 2022, vs. 80% 83% for full-year 2021 60% • Ambiti
Slide 12: Gaming & Enthusiast strategic development
Gaming & Enthusiast strategic development Goal Strategy Development and outlook • Focus on delivery of core liquid cooling solutions • Ramp-up of development to bring meaningful innovations to market • R&D and product • Products which deliver best performance, quality and reliability Further develop
Slide 13: SimSports
SimSports 13
Slide 14: Product roll-out progressing to plan
Product roll-out progressing to plan • Asetek Invicta premium performance SimRacing pedals already available for customers • Opened for pre-orders for the Forte mid-level racing pedals in April ‒ Plan to start shipping in late June • Expanding line of accessories including the Invicta™ racing boots
Slide 15: Developing sim racing eco-system
Developing sim racing eco-system • Development of steering wheels and wheelbase on track ‒ Exclusive agreement with HangZhou MiGE for use of its servo motor technology in Asetek’s range of high-end wheel-bases ‒ Tailor-made solutions with Asetek designed motor using own software and IP ‒ Planned lau
Slide 16: SimSports strategic development
SimSports strategic development Goal Strategy Development and Outlook • Leverage core mechatronics capabilities • Initial focus on innovation and product development Becoming a and global supply chain • Product development on plan based on own software and next-level implementation of acquired IP •
Slide 17: EU supports use of liquid cooling to cut data center CO2 emissions
EU supports use of liquid cooling to cut data center CO2 emissions and enable circular economy • Continued shipping to existing HPC customers in Q1 2022 • Development of new EU energy legislation favorable to adoption of Asetek technology progressing based on the EU Commission’s July 2021 Energy Eff
Slide 18: Update data center strategic development
Update data center strategic development Goal Strategy Development and Outlook • Influence the influencers • Global sustainability agenda strengthens rationale for Asetek’s data Maintain and support adoption of center solution over times Data center latest EU proposals into • Positive impact from di
Slide 19: Financials
Financials 19
Slide 20: Income statement
Income statement Figures in USD (000's) Q1 2022 Unaudited Q1 2021 Unaudited 2021 • Q1 revenue reflects reduced shipments of Gaming & Revenue Cost of sales $ 13,889 $ 8,583 25,015 $ 14,284 79,803 46,430 Enthusiast products compared to same period last year Gross profit 5,306 10,731 33,373 • Sales of
Slide 21: Margin development
Margin development Quarterly Group gross margin development 100% • Gross margin of 38.2% vs. 42.9% in Q1 2021 90% 80% • Decrease reflects higher component costs due a weaker U.S. dollar and supply shortages, increased shipping costs and a 70% change in the mix of product shipments 60% 50% • Gross ma
Slide 22: Strong balance sheet supporting long-term growth
Strong balance sheet supporting long-term growth Balance sheet USD thousands as at March 31, 2022 70.000 • Cash position primarily reflects reduction to accounts payable and other balance items including investment in 60.000 Current new HQ during Q1 liabilities Non-current 50.000 assets Non-current
Slide 23: Financial strategy
Financial strategy Goal Strategy Development and outlook • Evolve business model to drive competitiveness and profitability Gaming and Enthusiast leadership • Product innovation and branding to strengthen market position Capture growth potential in the • Revenue growth and diversification of revenue
Slide 24: Summary and outlook: 2025 revenue ambition maintained
Summary and outlook: 2025 revenue ambition maintained Growth ~15% p.a.1 • Long-term growth target of an average of to $150 million approximately 15% per annum Annual Group revenue ‒ In some years growth may exceed the USD thousands average, and in other years it may be lower • 2022 growth expectatio
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix 26
Slide 27: Management
Management Director, Global Founder and CEO CFO COO VP Global Operations Product Management André S. Eriksen Peter Dam Madsen John Hamill Henrik Gertz Brian Park • Long-term entrepreneur and founder of Asetek • Previous positions include International • 30+ years of high tech industry sales, sales •
Slide 28: Board of Directors
Board of Directors Chairman Vice Chairman Jukka Pertola Erik Damsgaard • 20+ years of management experience in ICT, energy, • Experienced Managing Director from the electrical and industry, infrastructure and healthcare sectors electronic manufacturing industry • 10+ years of international experienc
Slide 29: Income statement
Income statement Figures in USD (000's) Q1 2022 Q1 2021 FY 2021 Unaudited Unaudited Revenue $ 13,889 $ 25,015 $ 79,803 Cost of sales 8,583 14,284 46,430 Gross profit 5,306 10,731 33,373 Research and development 1,080 1,850 7,092 Selling, general and administrative 6,168 5,347 24,503 Special items -
Slide 30: Balance sheet
Balance sheet Figures in USD (000's) 31 Mar 2022 31 Dec 2021 Unaudited ASSETS Non-current assets Intangible assets $ 11,466 $ 10,938 Property and equipment 13,803 11,732 Deferred income tax assets 6,196 6,293 Other assets 353 362 Total non-current assets 31,818 29,325 Current assets Inventory 5,832
Slide 31: Cash flow statement
Cash flow statement Figures in USD (000's) 31 Mar 2022 31 Mar 2021 FY 2021 Unaudited Unaudited Cash flows from operating activities Income for the period (1,991) 3,126 1,337 Depreciation and amortization 923 982 3,750 Gain on sale of property, plant and equipment - - (688) Special items - - 1,713 Fi
Slide 32: Statement of equity
Statement of equity Translation Treasury share Retained Unaudited Figures in USD (000's) Share capital reserves reserves earnings Total Equity at January 1, 2022 $ 442 $ 1,075 $ (11,206) $ 58,077 $ 48,388 Total comprehensive income – quarter ended March 31, 2022 Income for the period - - - (1,991) (
Slide 33: www.asetek.com
Asetek www.asetek.com