Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q1 2021 Earnings Presentation
38 slides from Asetek A/s's earnings presentation, Apr 22, 2021
Slide 1: Q1 2021
Q1 2021 22 April 2021
Slide 2: Disclaimer
Disclaimer This presentation contains forward- king s m n s c nc ning As k’s fin nci c ndi i n, su s f p i ns nd busin ss. 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 u xp c i ns b s
Slide 3: The global leader in liquid cooling solutions
The global leader in liquid cooling solutions for gaming and enthusiast PCs, data centers nd s v s… Hardware …f und d n inn v i n nd Software Mechanics extensive mechatronics capabilities 3
Slide 4: Highlights
Highlights • Record first-quarter revenue of $25.0 million, reflecting growth of 174% over Q1 2020 • Gross margin of 43% in Q4, compared with 49% in Q1 2020 • Record first-quarter EBITDA adjusted of $4.7 million, compared with $0.2 million in Q1 2020 • Announced entering the fast-growing SimSports g
Slide 5: Ensuring robust supply chain and stable operations
Ensuring robust supply chain and stable operations External manufacturing Asetek OEMs/end-users • Limited COVID-19 impact on ability to • Continued focus on employee health • Continued positive signals from meet customer demand to date and safety Gaming and Enthusiast OEMs • Full production capacity
Slide 6: Revenue and profit outlook raised on strong demand
Revenue and profit outlook raised on strong demand for Gaming and Enthusiast products Annual Group revenue Guidance • 2021 group revenue expected to increase 20% to 30% USD thousands range compared with 2020 ‒ Equals annual revenue in the range of $87 - $95 million ‒ Previous guidance was for 10% to
Slide 7: 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 8: Our leading and innovative revenue generating business segments
Our leading and innovative revenue generating business segments Gaming and Enthusiast Data center Enthusiasts and do-it-yourself (DIY) Gaming/Performance PCs Data center OEMs1 8 1) Selected OEMs
Slide 9: Quarterly revenue development
Quarterly revenue development Q1 2021 margin reflects Quarterly revenue and EBITDA margin1 SimSports product USD thousands development activities 27,850 25,015 21,629 19,535 17,405 17,103 16,505 15,661 13,868 14,147 11,179 10,391 25% 25% 9,124 22% 19% 19% 17% 16% 15% 16% 6% 3% 2% 0% Q1 2018 Q2 2018
Slide 10: Gaming and Enthusiast
Gaming and Enthusiast 10
Slide 11: Strong Gaming and Enthusiast revenue and margin development
Strong Gaming and Enthusiast revenue and margin development Revenue and EBITDA margin1 USD thousands 24,074 21,734 20,085 18,288 16,104 16,568 15,430 15,199 13,208 12,438 10,472 9,552 33% 35% 34% 35% 35% 30% 32% 31% 8,122 30% 30% 27% 22% 21% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4
Slide 12: High product release activity
High product release activity 13 12 • Four new products started shipping in Q1 2021 ‒ All to DIY customers 9 • Six new products expected to start shipping in Q2 2021 6 5 • Further investment in product development and branding 4 to expand reach with key customers 2 ‒ Brand-behind-the-brand initiativ
Slide 13: Wide and diversified base of Gaming and Enthusiast OEMs
Wide and diversified base of Gaming and Enthusiast OEMs Top 5 Gaming and Enthusiast customers1 Top 5 customers revenue split 2) • Currently shipping to over 20 OEMs 100 % • Top five represented 88% of Gaming 80 % and Enthusiast revenue in Q1 2021, vs. 81% for full-year 2020 60 % • The largest OEMs h
Slide 14: Next-generation ASUS ROG CPU cooler with expanded co-branding program
Introducing next-generation ASUS ROG CPU cooler with expanded co-branding program • ASUS has been an OEM since 2018 and at the vanguard of co- branding initiative since mid-2019 • Currently one of As k’s top three Gaming and Enthusiast OEMs • Expanded co-branding program to include over time: ‒ Reta
Slide 15: Gaming and Enthusiast strategic development
Gaming and 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 devel
Slide 16: SimSports
SimSports 16
Slide 17: Entering fast-growing SimSports gaming market
Entering fast-growing SimSports gaming market • Transforming into mainstream gaming and entertainment ‒ Opportunity identified in Asetek eSports Academy and racing engagement ‒ Highly complementary to established mechatronics capabilities • Gamers demanding innovative high-performance equipment ‒ De
Slide 18: Strong strategic fit with Gaming and Enthusiasts segment
Strong strategic fit with Gaming and Enthusiasts segment Gaming and Enthusiast Data center Enthusiasts and Gaming/Performance SimSports do-it-yourself (DIY) PCs Competitive and committed gamers and enthusiasts Enterprise 18
Slide 19: SimSports strategic development
SimSports strategic development Goal Strategy Development and Outlook • Leverage core mechatronics capabilities Becoming a and global supply chain • Initial focus on innovation and product development next-level • Finalize market and channel strategies, including considering direct • Develop product
Slide 20: Data center
Data center 20
Slide 21: YoY Data center growth on increased demand and higher prices
YoY Data center growth on increased demand and higher prices Revenue and EBITDA margin 3,776 USD thousands 3,281 1,709 1,544 1,248 1,301 1,075 1,002 839 660 707 535 462 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 -3% -6% -12% -30% -41% -107
Slide 22: Data center; Low visibility
Data center; Low visibility 6 • Three new Data Center orders announced in Q1 2021 totaling $0.9 million of value • 2020 demand growth driven by two new OEMs • Nearly 20 new server loop designs added to support new 3 3 3 customers • Green data center legislation the main long-term trigger 2 1 2019 Q1
Slide 23: Data center strategic development
Data center strategic development Goal Strategy Development and Outlook • Influence the influencers Maintain and develop policy position and support for climate gains • G b sus in bi i g nd s ng ns i n f As k’s d create a of utilization of reused center solution sustainable waste heat toward • Marke
Slide 24: Financials
Financials 24
Slide 25: Income statement
Income statement Figures in USD (000's) Q1 2021 Q1 2020 2020 Unaudited Unaudited Revenue 25,015 9,124 72,750 Cost of sales Gross profit 14,284 10,731 4,626 4,498 38,556 34,194 • Record Q1 revenue on increased shipments of Gaming and Enthusiast products Research and development 1,850 1,167 5,718 Sell
Slide 26: Margin development
Margin development Quarterly Group gross margin development 100% • Gross margin of 42.9% down from 49.3% in Q1 2020 90% ‒ Decrease due to change in the mix of product shipments, 80% increases in certain component costs and weaker USD 70% • Full-year 2021 margin is expected to decrease vs. 2020 60% 4
Slide 27: Strong balance sheet supporting long-term growth
Strong balance sheet supporting long-term growth Balance sheet USD thousands as at March 31, 2021 80,000 • Strong cash position and low interest-bearing debt Deferred taxes 70,000 • Solid and attractive partner for OEM customers Current liabilities 60,000 Non-current assets • Flexibility to develop
Slide 28: Financial strategy
Financial strategy Goal Strategy Development and outlook • Evolve business model to drive competitiveness and profitability Gaming and Enthusiast leadership • Product innovation and rebranding to strengthen market position • Revenue growth and diversification of revenue streams Maintaining Data cent
Slide 29: Summary and outlook
Summary and outlook Growth Annual Group revenue ~15% p.a.1 USD thousands to $150 • Record Group revenue expected for million FY 2020 • Driven by strong demand for Gaming and Enthusiast products Guidance range 72,750 • Data center; Low visibility • Developing SimSports offering with launch of first p
Slide 30: Q&A
Q&A 30
Slide 31: Appendix
Appendix 31
Slide 32: Management
Management Founder and CEO CFO COO VP Global Operations VP & GM, B2C BU André S. Eriksen Peter Dam Madsen John Hamill Henrik Gertz Jim Carlton • Long-term entrepreneur and founder of • Previous positions include • 30+ years of high tech industry sales, • 20+ years in operations management • A vetera
Slide 33: Board of Directors
Board of Directors Chairman Vice Chairman Director Jukka Pertola Chris Christopher Maria Hjorth • 20+ years of management experience in ICT, energy, • 40+ years of leadership, management and tech industry • 20+ years of consulting and financial sector experience industry, infrastructure and healthca
Slide 34: Income statement
Income statement Figures in USD (000's) Q1 2021 Q1 2020 2020 Unaudited Unaudited Revenue $ 25,015 $ 9,124 $ 72,750 Cost of sales 14,284 4,626 38,556 Gross profit 10,731 4,498 34,194 Research and development 1,850 1,167 5,718 Selling, general and administrative 5,347 4,252 17,548 Total operating expe
Slide 35: Balance sheet
Balance sheet Figures in USD (000's) 31 Mar 2021 31 Dec 2020 Unaudited ASSETS Non-current assets Intangible assets $ 10,906 $ 3,217 Property and equipment 9,428 7,049 Deferred income tax assets 5,369 6,421 Other assets 348 605 Total non-current assets 26,051 17,292 Current assets Inventory 2,801 2,5
Slide 36: Cash flow statement
Cash flow statement Three months ending Figures in USD (000's) 31 Mar 2021 31 Mar 2020 2020 Unaudited Unaudited Cash flows from operating activities Income for the period $ 3,126 $ (700) $ 9,195 Depreciation and amortization 982 873 3,754 Finance income recognized (1) (49) (51) Finance costs recogni
Slide 37: Statement of equity
Statement of equity Unaudited Translation Treasury share Retained Figures in USD (000's) Share capital reserves reserves earnings Total Equity at January 1, 2021 $ 433 $ 2,784 $ (6,373) $ 50,681 $ 47,525 Total comprehensive income - quarter ended March 31, 2021 Income for the period - - - 3,126 3,12
Slide 38: www.asetek.com
™ Q Asetek www.asetek.com