Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q4 2022 Earnings Presentation
35 slides from Asetek A/s's earnings presentation, Mar 8, 2023
Slide 1: Q4 2022
Q4 2022 8 March 2022
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: Q4 Highlights
Q4 Highlights • Fourth-quarter revenue of $9.5 million compared with $18.1 million in Q4 2021 • Gross margin of 41% compared with 42% in Q4 2021 • Full year revenue of $50.7 million and EBITDA adjusted of negative $0.8 million • Positive Liquid cooling EBITDA in Q4 and for full-year 2022 • Quarterly
Slide 4: Continued market challenges with signs of stabilization
Continued market challenges with signs of stabilization End-2022 macro situation and Company Early impact on Asetek actions 2023 observations • Continued market challenges delaying a • Focus on product development and • Increased order activity and re- normalization of the business climate launching
Slide 5: Change of listing venue to Nasdaq Copenhagen
Change of listing venue to Nasdaq Copenhagen RATIONALE BACKGROUND DANISH LISTING PROCEDURE Support from major shareholders • Asetek has been listed in the • Asetek is a Danish • Rights issue to be undertaken Oslo Stock Exchange since incorporated “A/S” company in Norway, with a commitment January 20
Slide 6: Background for fully underwritten rights issue
Background for fully underwritten rights issue • Due to increased activity levels during 2020-2021, Asetek as an organization grew significantly. To facilitate this growth, after seeking adequate tenancies in the Aalborg area, a decision was made to invest in the construction of a new headquarter, r
Slide 7: Well positioned to capture long-term potential
Well positioned to capture long-term potential • High interest and positive feedback for Liquid cooling and SimSports products • Early signs of market stabilization ‒ Increased demand for liquid colling products in forecasts from OEM customers ‒ Increased end-user and reseller demand for SimSports p
Slide 8: Leading offering for gamers and enthusiasts
Leading offering for gamers and enthusiasts Liquid cooling1 SimSports Data center Enthusiasts and Gaming/Performance PCs do-it-yourself (DIY) Liquid cooling for Competitive and Immersive equipment for gamers, racing Liquid cooling for committed gamers and enthusiasts and automobile enthusiasts enter
Slide 9: 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 10: Liquid cooling
Liquid cooling 10
Slide 11: Increased product release activity into 2023
Increased product release activity into 2023 • 6 new products started shipping in Q4 2022 No. of liquid cooling products started shipping ‒ 2 featuring As k’s 8th generation liquid coolers with the most advanced technology developed to date 24 ‒ Improved cooling, less power consumption and quieter o
Slide 12: Wide Liquid cooling OEM base
Wide Liquid cooling OEM base Top 5 liquid cooling customers1 Top 5 customers revenue split 2) 100 % • Currently shipping to over 20 OEMs • Top five represented 85% of Liquid 80 % Cooling revenue in 2022, vs. 83% in 2021 60 % • Ambition to increase diversification 40 % over time 20 % 0% FY 2018 FY 20
Slide 13: Robust cash generating Liquid cooling business
Robust cash generating Liquid cooling business EBITDA - Liquid cooling for gamers and enthusiasts USD thousands 9000 Accumulated EBITDA: 8,406 $75 million 8000 7,589 Q4 2018 – Q4 2022 7,266 7,059 7000 6000 5,432 5,141 5,000 5000 4,528 4,233 3,945 4000 3000 2,839 2,602 2,562 2,373 2,098 2,121 2000 1,
Slide 14: 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 meaningful innovations to market Further develop development • Develop and ship products with market leading performance
Slide 15: SimSports
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Slide 16: Expanding sim racing product program
Expanding sim racing product program • Multiple SimSports products unveiled for pre-order in Q4 ‒ Forte Formula wheel ‒ Invicta™ and Forte™ direct drive wheelbases ‒ Invicta™ and Forte™ S-series pedals ‒ La Prima wheel, wheelbase and pedal-set bundle ‒ La Prima wheel and wheelbase bundle ‒ La Prima
Slide 17: Strong feedback for wheelbases and steering wheels
Strong feedback for wheel- bases and steering wheels • ''This wheelbase did provide me with what I would describe as the best force feedback I've ever felt.’’ - Will Ford • ‘’It is going to come as no surprise when I tell you that this performed perfectly, it really did.’’ - Dave Cam • ‘’I am happy
Slide 18: 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 19: Financials
Financials 19
Slide 20: Revenue and EBITDA margin reflect market volatility
Revenue and EBITDA margin reflect market volatility Group revenue and Liquid cooling EBITDA margin USD thousands 27,850 25,015 23,185 21,629 18,069 16,868 15,661 14,147 13,889 13,534 35% 35% 10,435 34% 9,458 9,124 35% 33% 30% EBITDA margin 29% 28% 24% 28% Liquid cooling 21% 19% 21% Q4 2019 Q1 2020 Q
Slide 21: Income statement
Income statement Figures in USD (000's) Q4 2022 Unaudited Q4 2021 Unaudited 2022 2021 • Q4 and full-year revenue reflect reduced shipments of Revenue 9,458 18,069 50,650 79,803 Cost of sales 5,568 10,519 29,885 46,430 liquid cooling products compared to previous year Gross profit 3,890 7,550 20,765
Slide 22: Stable margin development
Stable margin development Quarterly Group gross margin development 100% • Q4 2022 gross margin of 41.1% vs. 41.8% in Q4 2021 90% ‒ Change in the product mix partly offset by stronger USD 80% 70% • 2022 margin of 41.0% (41.8%) 60% 50% 41.8% 42.3% 42.5% 41.1% 38.2% 40% 30% 20% 10% 0% Q4 2021 Q1 2022 Q
Slide 23: Balance sheet
Balance sheet Balance sheet USD thousands at December 31, 2022 90,000 80,000 • USD 7.4 million cash position end 2022 70,000 Current • Stable development in working capital performance 60,000 liabilities measures Non-current 50,000 assets Non-current • Investments in product development and HQ 40,00
Slide 24: Development of new development center and HQ progressing to plan
Development of new development center and HQ progressing to plan • On schedule for completion in mid-2024 • Limited cost inflation due to locking in deliveries early • Potential to take in additional tenants following downsizing of own organization • To evaluate sale-leaseback market post completion
Slide 25: Financial strategy
Financial strategy Goal Strategy Development and outlook • Evolve business model to drive competitiveness and profitability Liquid cooling leadership • Product innovation and branding to strengthen market position • Revenue growth and diversification of revenue streams Establish SimSports as a thriv
Slide 26: Summary and outlook
Summary and outlook • Continued high end-user interest in Asetek liquid cooling and SimRacing products • Signs of stabilization in the liquid cooling market with increased customer activity • Continued scaling of SimSports business in terms of products and end-user connection points • Optimized cost
Slide 27: Q&A
Q&A 27
Slide 28: Appendix
Appendix 28
Slide 29: 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 30: Board of Directors
Board of Directors Chairman Vice Chairman Director Jukka Pertola Erik Damsgaard Jørgen Smidt • 20+ years of management experience in ICT, energy, • Experienced Managing Director from the electrical and • 25+ years of international operational and business industry, infrastructure and healthcare sect
Slide 31: Income statement, summary
Income statement, summary Figures in USD (000's) Q4 2022 Q4 2021 2022 2021 Unaudited Unaudited Revenue $ 9,458 $ 18,069 $ 50,650 $ 79,803 Cost of sales 5,568 10,519 29,885 46,430 Gross profit 3,890 7,550 20,765 33,373 Research and development 1,405 1,807 5,163 7,092 Selling, general and administrati
Slide 32: Balance sheet, summary
Balance sheet, summary Figures in USD (000's) 31 Dec 2022 31 Dec 2021 ASSETS Total non-current assets 50,799 29,325 Total current assets 27,816 46,029 Total assets $ 78,615 $ 75,354 EQUITY AND LIABILITIES Total equity 42,748 48,388 Total non-current liabilities 1,739 1,540 Total current liabilities
Slide 33: Cash flow statement, summary
Cash flow statement, summary Figures in USD (000's) 2022 2021 Net cash provided by (used in) operating activities (8,354) 14,317 Net cash used in investing activities (25,395) (13,204) Net cash provided by (used in) financing activities 18,327 (4,636) Effect of exchange rate changes on cash and cash
Slide 34: Statement of equity, summary
Statement of equity, summary Figures in USD (000's) 2022 2021 Equity at January 1 $ 48,388 $ 47,525 Total comprehensive income for the year Income for the period (4,325) 1,337 Foreign currency translation adjustments (1,971) (1,709) Total comprehensive income for the year (6,296) (372) Transactions
Slide 35: www.asetek.com
Asetek www.asetek.com