Asetek A/s · OMXCOP:ASTK
Asetek A/s — Q2 2024 Earnings Presentation
26 slides from Asetek A/s's earnings presentation, Aug 13, 2024
Slide 1: Q2 2024
Q2 2024 August 13, 2024
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: Q2 2024 highlights
Q2 2024 highlights Group revenue Group Gross profit Group adj. EBITDA USD million USD million USD million 24,5 11,1 6,2 20,5 9,4 16,6 4,8 7,7 12,2 12,7 5,3 5,8 2,2 0,0 0,2 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 • Q2 group gross margin at 45% (45% in
Slide 4: Multiple factors impacting Liquid Cooling, SimSports on track
Multiple factors impacting Liquid Cooling, SimSports on track Liquid cooling SimSports • Segment revenue expected to decrease 35% to 40% vs. 2023 • FY 2024 growth expectation ‒ Corresponding to $42 to $44 million of revenue for FY 2024 maintained at 40-60% ‒ Weaker-than-anticipated market rebound ‒
Slide 5: Updated Group outlook from July 1 maintained
Updated Group outlook from July 1 maintained Annual Group revenue USD million • Group revenue expected in the range of $52-$55 million 100 ‒ Decrease of 28%-32% vs. 2023 90 ‒ Adjusted EBITDA margin of 1-4% 80 • Cost reductions initiated with expected annual savings 70 of ~$3 million with full effect
Slide 6: Maintaining global flexible production set-up supporting long-term growth
Maintaining global flexible production set-up supporting long-term growth • 105 employees after right-sizing o Removal of 25 FTEs across all levels of the organization o US activities to be scaled down to absolute minimum, following all major US OEM customers have based their R&D and purchasing in T
Slide 7: Liquid cooling
Liquid cooling 7
Slide 8: Continuous innovation driving liquid cooling performance
Continuous innovation driving liquid cooling performance • Leveraging AI to design a 3D printed solution redefining industry leading liquid cooling performance • Developed in partnership with Fabric8Labs, a leader in metal 3D printing • Shown to customers at Computex 2024 in Taiwan • First products
Slide 9: Long-term profitable Liquid Cooling business
Long-term profitable Liquid Cooling business Liquid cooling EBITDA and margin USD million 9,0 8,8 100% 8,4 8,0 90% 7,6 7,3 7,1 7,1 80% 7,0 70% 6,0 5,3 5,0 60% 5,0 4,7 4,2 50% 3,9 4,0 3,5 3,3 40% 3,0 40% 2,6 2,6 37% 37% 34% 35% 35% 35% 33% 2,4 35% 30% 2,1 33% 31% 2,0 29% 28% 28% 24% 20% 20% 21% 1,0 1
Slide 10: Market leading in premium liquid cooling solutions
Market leading in premium liquid cooling solutions • 1 new liquid cooling product started No. of liquid cooling products started shipping Top 5 liquid shipping in Q2 2024 cooling customers1 • 6 new products estimated to start 23 shipping in Q3 2024 • At end of Q2 shipping to over 20 OEMs • Top five
Slide 11: SimSports
SimSports
Slide 12: SimSports scale-up progressing to plan
SimSports scale-up progressing to plan • Q2 2024 revenue of $1.7 million vs. $2.4 million in Q2 2023 Quarterly SimSports revenue USD million ‒ H1 2024 revenue of $3.9 million vs. $3.7 million in H1 2023 ‒ 2023 revenue positively impacted by major product releases ‒ On track to reach profitability, w
Slide 13: Focus on capturing strong long-term growth opportunities
Focus on capturing strong long-term growth opportunities • On track for launch of competitive mass-market product line in H1 2025 • Commercial lead appointed to support product launch and execute the go-to-market strategy for the mass market segment • Product development, sales and marketing, and br
Slide 14: Financials
Financials 14
Slide 15: Income statement
Income statement Figures in USD (000's) Q2 2024 Unaudited Q2 2023 Unaudited H1 2024 Unaudited H1 2023 Unaudited 2023 • Liquid cooling revenue impacted by lower Revenue 12,743 24,497 24,920 39,257 76,332 Liquid Cooling quantities sold Cost of sales 6,963 13,398 13,798 21,666 41,624 Gross profit 5,780
Slide 16: Quarterly revenue volatility continues
Quarterly revenue volatility continues Quarterly Group revenue USD million 27,9 25,0 24,5 23,2 21,6 20,5 18,1 16,9 16,6 14,8 14,1 13,9 13,5 12,2 12,7 10,4 9,5 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 16
Slide 17: Continued solid gross margin development
Continued solid gross margin development Quarterly Group gross margin development 50% 9,0 • Q2 2024 gross margin of 45.4% vs. 45.3% in 48% 46,5% Q2 2023 45,9% 46% 45,3% 45,4% 8,5 ‒ H1 2024 gross margin of 44.6% vs. 44.8% H1 44,0% 43,9% 2023 44% 42,3% 42,5% 8,0 42% 41,1% • Margin development reflects
Slide 18: Balance sheet
Balance sheet USD million at June 30, 2024 • USD 6.8 million cash position at end Q2 2024 120 ‒ Closely reviewing the liquidity as a consequence of the reduced 2024 revenue and profitability outlook 100 • Total investment in new HQ amounts to $53.9 million Current ‒ $2.6 million invested in Q2 80 li
Slide 19: Summary and outlook
Summary and outlook • Weaker-than-anticipated market rebound and increased Annual Group revenue USD million price pressure impacting liquid cooling market 100 ▪ Segment is expected to remain profitable for 2024 and 90 beyond 80 ▪ Growth is expected to resume in 2026 70 • SimSports on track 60 Guidan
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: Balance sheet summary
Balance sheet summary Figures in USD (000's) 30 June 2024 31 Dec 2023 ASSETS Unaudited Total non-current assets 73,941 71,954 Total current assets 26,057 30,785 Total assets $ 99,998 $ 102,739 EQUITY AND LIABILITIES Total equity 62,125 66,126 Total non-current liabilities 660 2,596 Total current lia
Slide 23: Statement of equity summary
Statement of equity summary Six months ended Figures in USD (000's) 30 June 2024 30 June 2023 Unaudited Unaudited Equity at January 1 $ 66,126 $ 42,748 Total comprehensive income for the period Income for the period (3,292) 3,729 Foreign currency translation adjustments (866) 280 Total comprehensive
Slide 24: Summary cash flow statement
Summary cash flow statement Six months ended Figures in USD (000's) 30 June 2024 30 June 2023 Unaudited Unaudited Net cash provided by (used in) operating activities 639 3,328 Net cash used in investing activities (6,954) (17,551) Net cash provided by (used in) financing activities 4,548 13,843 Effe
Slide 25: Asetek – a leading gaming hardware company
Asetek – a leading gaming hardware company 12.9% $62 million of revenue invested in R&D Revenue last 12 months1 last 12 months 1 LIQUID COOLING ASETEK SIMSPORTS Solutions for competitive and Immersive sim racing equipment for $28.2 million +11 million committed gamers and enthusiasts gamers, racing-
Slide 26: www.asetek.com
® OQ Asetek www.asetek.com