Slide 1: Q2 2023
Q2 2023 August 9, 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: Q2 Highlights
Q2 Highlights • Q2 revenue of $24.5 million, reflecting growth of 45% over Q2 2022 and among top three quarters ever • Gross margin of 45%, up from 42% in Q2 2022 • Q2 EBITDA adjusted of $6.2 million, compared with $1.3 million in Q2 2022 • Record Liquid cooling EBITDA in Q2 2023 • SimSports revenue
Slide 4: Positive momentum amid market challenges
Positive momentum amid market challenges 2023 developments Company actions Market backdrop • Strong interest and positive feedback for • Product development and launch of • War in Ukraine, supply chain issues, new Liquid cooling and SimSports new/more products inflation and interest rates products •
Slide 5: 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 24.497 23.185 21.629 18.069 16.868 14.760 14.147 13.889 13.534 40% 35% 35% 35% 10.435 34% 9.458 35% 33% 29% EBITDA margin 28% 28% 24% Liquid cooling 21% 19% Q2 2020 Q3 2020
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: Delivering record Liquid cooling EBITDA in Q2
Delivering record Liquid cooling EBITDA in Q2 EBITDA - Liquid cooling for gamers and enthusiasts USD thousands Accumulated EBITDA: 10.000 $80 million 9.000 Q2 2019 – Q2 2023 8.821 8.406 8.000 7.589 7.266 7.059 7.000 6.000 5.141 5.000 5.000 4.528 4.686 4.233 3.945 4.000 3.000 2.602 2.562 2.373 2.098
Slide 10: Increased product release activity into 2023
Increased product release activity into 2023 • High release activity in first half driving revenue growth No. of liquid cooling products started shipping 23 • 12 new liquid cooling products started shipping in Q2 2023 ‒ One featuring As k’s 8th generation liquid coolers with the most advanced techno
Slide 11: 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 91% of Liquid 80% Cooling revenue LTM, vs. 85% in FY 2022 60% • Ambition to increase diversification 40% over time • One new significant cust
Slide 12: New product range for SI customers
New product range for SI customers • Updated to include the 7 th generation of CPU cooler technology • New modular cap ID design with additional customization options • SIs are regional OEMs such as ‒ Mouse (Japan) ‒ Thirdwave (Japan) ‒ Shark Gaming (Denmark) ‒ Boxx (US) ‒ Cybertron (US) ‒ Ironside
Slide 13: 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 14: SimSports
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Slide 15: Expanding sim racing product program
Expanding sim racing product program • Four new products started shipping in Q2 2023 ‒ Industry-first third-party steering-wheel quick release adapter ‒ Three branded products for US retailer • Total of 12 new products started shipping in H1 2023 • Further products to be released in H2 2023 • Q2 202
Slide 16: Building a strong relevant sim racing brand
Building a strong relevant sim racing brand • Design win with Micro Center for sim • Becoming official partner to Racing • Enabling immersive experiences at Saudi racing products online and in physical Prodigy™ Aramco's Sim Arena in Riyadh stores across the US ‒ Providing sim-racer the opportunity t
Slide 17: 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 18: Financials
Financials 18
Slide 19: Income statement
Income statement Figures in USD (000's) Q2 2023 Q2 2022 1H 2023 1H 2022 Unaudited Unaudited Unaudited Unaudited 2022 • Q2 and H1 revenue reflects increased sales of Liquid cooling $ 24,497 $ 16,868 $ 39,257 $ 30,757 $ 50,650 Revenue Cost of sales 13,398 9,730 21,666 18,313 29,885 and SimSports produ
Slide 20: Continued positive margin development
Continued positive margin development Quarterly Group gross margin development 50% 9,0 • Q2 2023 gross margin of 45.3% vs. 42.3% in Q2 2022 48% 46% 45,3% 8,5 • H1 2023 margin 44.8% (40.5%) 44,0% 44% 42,4% 42,3% 42,5% 8,0 • Increase in both periods due to richer product mix, 41,8% 42% 41,1% increased
Slide 21: Balance sheet
Balance sheet Balance sheet USD thousands at June 30, 2023 120.000 • USD 7.1 million cash position at end Q2 2023 100.000 Current liabilities • Rights issue completed in May with net proceeds of 80.000 $16.1 million Non-current Non-current assets liabilities • Increased working capital due to higher
Slide 22: Nasdaq Copenhagen listing
Nasdaq Copenhagen listing • Asetek shares admitted to trading on Nasdaq Copenhagen on May 17 following rights issue • Delisting process from Euronext Oslo Børs ongoing • The Company encourages shareholders to move shares from Oslo to Copenhagen ‒ ~80% of shares outstanding registered in Denmark (VP
Slide 23: Construction of new development center and HQ progressing to plan
Construction of new development center and HQ progressing to plan • New HQ on schedule for completion in mid-2024 • Limited cost inflation due to locking in deliveries early • Dialogues ongoing with potential additional tenants • To evaluate sale-leaseback market post completion vs. standard long-te
Slide 24: 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 25: Summary and outlook
Summary and outlook • Strong end-user interest in Asetek liquid cooling and sim Annual Group revenue USD million racing products 100 • Improved liquid cooling market with high customer 90 activity but visibility beyond 2023 remains low 80 • Focus on scaling of SimSports business in terms of products
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
Appendix 27
Slide 28: 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 29: 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 30: Balance sheet summary
Balance sheet summary Figures in USD (000's) 30 June 2023 31 Dec 2022 ASSETS Unaudited Non-current assets Intangible assets $ 12,192 $ 12,014 Property, plant and equipment 45,849 31,084 Deferred income tax assets 6,643 7,366 Other assets 336 335 Total non-current assets 65,020 50,799 Current assets
Slide 31: Cash flow summary
Cash flow summary Figures in USD (000's) 1H 2023 1H 2022 2022 Unaudited Unaudited Cash flows from operating activities Income for the period $ 3,729 $ (1,317) $ (4,325) Depreciation and amortization 2,791 1,979 4,170 Gain on sale of property, plant and equipment - - (53) Impairment of intangible ass
Slide 32: Statement of equity
Statement of equity Unaudited Treasury Share Share Translation share Retained Figures in USD (000's) capital premium reserves reserves earnings Total Equity at January 1, 2023 $ 444 $ - $ (896) $ (11,206) $ 54,406 $ 42,748 Total comprehensive income - six months ended June 30, 2023 Income for the pe
Slide 33: www.asetek.com
Asetek www.asetek.com