Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q1 2023 Earnings Presentation
30 slides from Asetek A/s's earnings presentation, May 22, 2023
Slide 1: Q1 2023
Q1 2023 22 May 2023
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: Q1 Highlights
Q1 Highlights • First-quarter revenue of $14.8 million, up 6% from $13.9 million in Q1 2022 • Gross margin increased to 44%, compared with 38% in Q1 2022 • Q1 EBITDA adjusted of $2.8 million compared with EBITDA loss of $0.9 million in Q1 2022 • SimSports revenue of $1.3 million in the quarter, refl
Slide 4: Increased activity amid continued market challenges
Increased activity amid continued market challenges 2023 developments Company actions Market backdrop • Good interest and positive feedback for • Continued product development and • War in Ukraine, supply chain issues, Liquid cooling and SimSports products launch of new/more products inflation and i
Slide 5: Listed on Nasdaq Copenhagen following completion of rights issue
Listed on Nasdaq Copenhagen following completion of rights issue • Asetek shares admitted to trading on May 17 • Following execution of fully underwritten rights issue raising NOK 214 million (~$20 million) in gross proceeds ‒ Strengthening the balance sheet and liquidity position ‒ ~71.17 million n
Slide 6: 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 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: Increased product release activity into 2023
Increased product release activity into 2023 • 23 new liquid cooling products started shipping in Q1 2023 No. of liquid cooling products started shipping ‒ Four featuring As k’s 8th generation liquid coolers with the 23 most advanced technology developed to date ‒ Improved cooling, less power consum
Slide 10: 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 92% of Liquid 80% Cooling revenue YTD 2023, vs. 85% in FY 2022 60% • Ambition to increase diversification 40% over time • One new significant
Slide 11: 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 $74 million 8000 Q1 2019 – Q1 2023 7.589 7.266 7.059 7000 6000 5.141 5.000 5000 4.686 4.528 4.233 3.945 4000 2.839 3000 2.602 2.562 2.373 2.098 2.121 2000 1.
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 meaningful innovations to market Further develop development • Develop and ship products with market leading performance
Slide 13: SimSports
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Slide 14: Expanding sim racing product program
Expanding sim racing product program • Eight new products started shipping in Q1 2023 ‒ 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 pedals • T
Slide 15: 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 16: Financials
Financials 16
Slide 17: 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 14.760 14.147 13.889 13.534 35% 35% 10.435 35% 34% 9.458 9.124 35% 33% 28% EBITDA margin 29% 28% Liquid cooling 24% 21% 19% 21% Q1 2020 Q2 2020 Q
Slide 18: Income statement
Income statement Figures in USD (000's) Q1 2023 Q1 2022 2022 Revenue Unaudited 14,760 Unaudited 13,889 50,650 • Q1 revenue reflects increased sales of Liquid cooling and Cost of sales Gross profit 8,268 6,492 8,583 5,306 29,885 20,765 SimSports products compared to previous year Research and develop
Slide 19: Positive margin development
Positive margin development Quarterly Group gross margin development 50% 9,0 • Q1 2023 gross margin of 44.0% vs. 38.2% in Q1 2022 48% 8,5 ‒ Increase due to richer product mix, increased sales 46% prices, reduced input costs and beneficial exchange rate 44,0% 44% 42,9% movements 42,4% 42,3% 42,5% 8,0
Slide 20: Balance sheet
Balance sheet Balance sheet USD thousands at March 31, 2023 100.000 90.000 • USD 5.3 million cash position as at end-Q1 2023 80.000 • Investments in product development and HQ 70.000 Current liabilities 60.000 Non-current • Continued debt draw-down to finance new HQ assets 50.000 • Rights issue comp
Slide 21: 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 Establish SimSports as a thriving • Revenue growth and diversification of revenue stre
Slide 22: Summary and outlook
Summary and outlook • Good end-user interest in Asetek liquid cooling and sim racing products • Continued signs of stabilization in the liquid cooling market with high customer activity • Visibility into Q3, Q4 and beyond remains low • Focus on scaling of SimSports business in terms of products and
Slide 23: Q&A
Q&A 23
Slide 24: Appendix
Appendix 24
Slide 25: Management
Management Founder and CEO CFO COO VP Global Operations André S. Eriksen Peter Dam Madsen John Hamill Henrik Gertz • Long-term entrepreneur a nd founder of Asetek • Previ ous positions include International • 30+ yea rs of high tech i ndustry s ales, sales • 20+ yea rs in operations management roles
Slide 26: 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 27: Balance sheet summary
Balance sheet summary Figures in USD (000's) 31 Mar 2023 31 Dec 2022 ASSETS Unaudited Total non-current assets 55,570 50,799 Total current assets 30,488 27,816 Total assets $ 86,058 $ 78,615 EQUITY AND LIABILITIES Total equity 43,802 42,748 Total non-current liabilities 1,558 1,739 Total current lia
Slide 28: Cash flow summary
Cash flow summary Three months ended Figures in USD (000's) 31-Mar-23 31-Mar-22 Unaudited Unaudited Net cash provided by (used in) operating activities (3,354) (7,763) Net cash used in investing activities (6,329) (3,736) Net cash provided by (used in) financing activities 7,172 1,019 Effect of exch
Slide 29: Statement of equity, summary
Statement of equity, summary Unaudited Figures in USD (000's) Three months ended 31-Mar-23 31-Mar-22 Equity at January 1 $ 42,748 $ 48,388 Total comprehensive income for the period Income for the period 582 (1,991) Foreign currency translation adjustments 377 (433) Total comprehensive income for the
Slide 30: www.asetek.com
Asetek www.asetek.com