Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q4 2021 Earnings Presentation
36 slides from Asetek A/s's earnings presentation, Mar 2, 2022
Slide 1: Q4 2021
Q4 2021 4 March 2021
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 • 2021 revenue of $79.8 million (10% growth) and EBITDA adjusted of $7.2 million • Full-year Gaming & Enthusiast revenue growth of 13% to $72.9 million • Q4 revenue of $18.1 million compared with record $27.9 million in Q4 2020 • Q4 gross margin of 42% compared with 44% in prior year • Q4
Slide 4: Status update Gaming & Enthusiast market
Status update Gaming & Enthusiast market 2021 Early 2022 Outlook • Full-year revenue within the • Volatile global situation reflected • Ambition of 15% annual average expectations range in 2022 growth expectations revenue growth over time maintained Impact • Gaming & Enthusiast growth near long-term
Slide 5: EBITDA margin improvement with revenue increase and HPC exit
EBIDTA margin improvement with revenue increase and HPC exit Revenue and EBITDA margin USD thousands 27,850 25,015 23,185 21,629 19,536 18,069 17,405 17,103 16,505 15,661 13,868 14,147 13,534 11,179 35% 10,391 35% 35% 32% 33% 34% 30% 31% 9,124 35% 33% 30% EBITDA margin G&E 27% 29% 22% 21% 20% Group
Slide 6: Market headwinds tempering near-term growth outlook
Market headwinds tempering near-term growth outlook Annual Group revenue USD thousands Mid-point of • Record revenue in 2021 expectation range ‒ Strong start to the year on Gaming & Enthusiast demand, followed by market-trough in Q3 on component shortages ‒ Recovery and stabilization at a higher lev
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: Growing offering for more immersive gaming and racing experiences
Growing offering for more immersive gaming and racing experiences Gaming and Enthusiast Data center Enthusiasts and Gaming/Performance SimSports do-it-yourself (DIY) PCs Competitive and committed gamers Gamers, racing and automobile Enterprise and enthusiasts enthusiasts 8
Slide 9: Gaming & Enthusiast
Gaming & Enthusiast 9
Slide 10: Product releases reflect confidence in long-term demand growth
Product releases reflect confidence in long-term demand growth 15 13 12 • 10 new products started shipping in Q4 2021 10 10 ‒ Two new customers 9 • 10 new products estimated to start shipping in Q1 2022 7 ‒ Higher than previous years as some products were postponed by the OEMs into 2022 4 • Continuo
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 83% of Gaming and Enthusiast revenue in YTD 2021, 80% vs. 81% for full-year 2020 60% • The la
Slide 12: Key new Gaming & Enthusiast OEMs in 2021
Key new Gaming & Enthusaist OEMs in 2021 • Razer • Sapphire ‒ The first AIO liquid coolers, the Razer Hanbo series launched in ‒ TOXIC AMD RADEON™ RX 6900 XT Limited Edition Graphics October which have been off to a good start Card with Hybrid GPU Cooler (February) ‒ NITRO+ AIO CPU Coolers (December
Slide 13: 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 14: SimSports
SimSports 14
Slide 15: Product roll-out progressing to plan
Product roll-out progressing to plan • The Asetek Invicta premium performance SimRacing pedals were available for pre-order in November ‒ Throttle, brake and add-on clutch, along with the RaceHub software for easy adjustments and calibration ‒ Products started shipping to customers in early March 20
Slide 16: Strong feedback from sim racing reviewers and influencers
Strong feedback from sim racing reviewer and influencers • “I still would give the full 10 points here (10/10 rating). [..] For me, this is probably the best pedal set that I have used so far. I will leave it on the rig. I don’t know what I could change on it.” - Dan Suzuki • “Overall we love these
Slide 17: 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 18: Data center
Data center 18
Slide 19: Data center development reflective of a sub-scale market
Data center development reflective of a sub- scale market Revenue and EBITDA margin 3,776 USD thousands 3,281 1,709 1,590 1,544 1,467 1,248 1,301 1,075 1,002 839 660 707 535 462 527 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 Q2 2021 Q3 202
Slide 20: 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 • Development of new EU energy legislation favorable to adoption of Asetek technology progressing based on the EU Commission’s July 2021 Energy Efficiency Directive • Proposal requires the reuse of waste h
Slide 21: 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 22: Financials
Financials 22
Slide 23: Income statement
Income statement Figures in USD (000's) Q4 2021 Unaudited Q4 2020 Unaudited 2021 2020 • Q4 revenue reflects reduced shipments of Gaming & Revenue Cost of sales $ 18,069 $ 10,519 27,850 $ 15,496 79,803 46,430 $ 72,750 38,556 Enthusiast products compared to Q4 2020 Gross profit 7,550 12,354 33,373 34,
Slide 24: Margin development
Margin development Quarterly Group gross margin development 100% • Gross margin of 41.8% vs. 38.8% in the previous quarter, with 90% increase partly reflecting reduced exposure to higher logistics 80% costs 70% ‒ Decline vs. fourth quarter 2020 due to weaker dollar, increased 60% shipping costs (sup
Slide 25: Strong balance sheet supporting long-term growth
Strong balance sheet supporting long-term growth Balance sheet USD thousands as at December 31, 2021 80,000 70,000 • Strong cash position and low interest-bearing debt Non-current Current 60,000 assets liabilities • Solid and attractive partner for OEM customers Non-current 50,000 liabilities • Flex
Slide 26: 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 27: 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 28: Q&A
Q&A 28
Slide 29: Appendix
Appendix 29
Slide 30: 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 31: 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 32: Income statement
Income statement Figures in USD (000's) Q4 2021 Q4 2020 FY 2021 FY 2020 Unaudited Unaudited Revenue $ 18,069 $ 27,850 $ 79,803 $ 72,750 Cost of sales 10,519 15,496 46,430 38,556 Gross profit 7,550 12,354 33,373 34,194 Research and development 1,807 1,759 7,092 5,718 Selling, general and administrati
Slide 33: Balance sheet
Balance sheet Figures in USD (000's) 31 Dec 2021 31 Dec 2020 ASSETS Non-current assets Intangible assets $ 10,938 $ 3,217 Property and equipment 11,732 7,049 Deferred income tax assets 6,293 6,421 Other assets 362 605 Total non-current assets 29,325 17,292 Current assets Inventory 5,532 2,531 Trade
Slide 34: Cash flow statement
Cash flow statement Figures in USD (000's) FY 2021 FY 2020 Cash flows from operating activities Income for the period $ 1,337 $ 9,195 Depreciation and amortization 3,750 3,754 Gain on sale of property, plant and equipment (688) - Special items 1,713 - Finance income recognized (2) (51) Finance costs
Slide 35: Statement of equity
Statement of equity 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 – year ended December 31, 2021 Income for the period - - - 1,337 1,337 Foreign
Slide 36: www.asetek.com
Asetek www.asetek.com