Asetek A / S: Download the presentation of the call to investors of September 22, 2021


Forecast update for the year 2021

Conference Call for Investors | September 22, 2021

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 considered, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements regarding Asetek’s potential exposure to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. A number of factors that affect Asetek’s future operations and could cause Asetek’s results to differ materially from those expressed in the forward-looking statements included herein, include (but are not limited to): (a) changes in demand for Asetek’s products; (b) currency and interest rate fluctuations; (c) customer concentration and competition in the industry; (d) legislative, fiscal and regulatory developments, including changes in fiscal or accounting policies; (e) the ability to enforce

patents; (f) risks associated with product development; (g) customer credit risks; and (h) supply of components.

All forward-looking statements contained in this document are expressly qualified by the cautionary statements contained or referenced in this disclaimer. You should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in the risk management section of Asetek’s most recent annual report (available at https://ir.asetek.com/) and these factors should also be taken into account. . Each forward-looking statement speaks only as of the date of this document. Asetek assumes no obligation to publicly update or revise any forward-looking statement as a result of new information or future events other than as required by Danish law. In light of these risks, the results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document.

August 12, 2021: Revenue outlook for the second quarter

  • “The 2021 group’s turnover is expected to increase by 20% to 30% compared to 2020
    • Equals annual revenue between $ 87 million and $ 95 million
    • The pipeline is record and beyond guidance
    • Customers are getting nervous because of increased shipping rates, shortage of components in the channel, etc.
    • We maintain our advice in this situation. Very low visibility therefore better hypothesis
  • Gross margin is expected to normalize by 47% in 2020
    • Gross margin of 43% in H1 2021, compared to 51% in H1 2020
    • Long termthe margin objective remains at> 40%
  • Operating profit of $ 8 to 12 million, compared to $ 11 million in 2020
    • Adjusted from previous $ 11 million to $ 16 million
  • Uncertainty related to COVID-19 situation and shortage of semiconductor chips ”

Group annual turnover

Advice

thousands of dollars

range

Cumulative turnover for the current financial year

72,750

67,314

58,194

54,334

50,921

48,200

35.982

18,681 20,729 20,847

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

September 22, 2021: update of the FY’21 guidelines

  • Triggered by news and ongoing effects China Covid-19 shutdowns disrupt Asetek’s operations and supply chain
    • To closein Tongan District in China, hampering component deliveries from subcontractors
    • Hard Covid-19 situation in Xiamen, hampering component deliveries to Asetek subcontractors and consequently their shipments to Asetek
  • The update also reflects:
    • Wider supply chain challenges with continued increase in component costs and shortages (mainly with customers) and increasing logistics costs affecting both Asetek and the company’s customers and partners, resulting in increased uncertainty linked to sales and costs for the rest of the year
    • Expected data center revenue does not materialize, reducing margins and profits (relatively fixed cost base)
    • Non-recurringcosts associated with sharpening the Asetek data center segment to improve profitability
  • Based on the current situation and outlook, Asetek’s updated expectations for the year 2021 are:
    • Group turnover growth of 10-20% compared to 2020
    • Operating result between 0 to 2 million dollars against 11 million dollars in 2020
  • The drop in operating income forecasts is explained by:
    • Reduced sales due to China Covid-19 general negative lockdowns and ripple effects
    • Increased shipping and component costs
    • Non-recurring$ 2.5 million costs (IP / inventory / equipment depreciation) associated with sharpening the data center segment out of the HPC niche

Refine the data center strategy to improve

profitability

Current situation

  • Coinciding with the Effects of Covid-19 in China and broader supply chain challenges, Asetek has decided to refine its Data center business segment and exit the high performance computing (HPC) niche
  • Complexity and increasing demands on HPC for an architecture driven by more powerful GPUs and DIMMs
    • Growing investment needs
    • Increased technical support for customers
    • Low income expectations for the next one 24-36 months
    • Burn rate would accelerate beyond current levels
  • The rationale for this decision was to protect Asetek’s future profitability against:
    • increased HPC losses
    • lack of revenue from the HPC area
    • next step with an external HPC partner involving binding commitments

Objective maintained

To keep

Data center station

and create a sustainable and profitable business over time

Short-term tactics and new strategy

  • Quit HPC
    • Downsizing with layoff of 15-18 FTE (mainly R&D and operations)
    • Non-recurringcosts of $ 2.5 million related to the closure of the HPC zone
    • Improve profitability in the future and avoid increasing losses
  • Continue to influence influencers and support the adoption of the latest EU proposals in legislation for climate gains from waste heat reuse on the path to carbon neutrality
  • Once legislation is passed, capitalize on the company’s liquid cooling technology and long-term investments in the data center business segment

Long term outlook

maintained

  • Global Sustainability Agenda Strengthens Rationale for Asetek’s Data Center Solution Over Time
  • Positive impact of direct engagement with the EU with the current “Green Deal” proposals for liquid cooling
  • Adoption of the liquid cooling market will remain slow until the adoption of the proposed Green Deal legislation has been decided
  • Prepared and positioned for a potential change in demand brought about by the adoption of the proposed legislation

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Disclaimer

Asetek A / S published this content on September 22, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 22, 2021 09:21:02 PM UTC.

Public now 2021

All ASETEK A / S news
Sales 2021

Net income 2021

Net cash 2021 25.0 M

PER 2021 ratio
Yield 2021
Capitalization 815 million
94.6 million
VE / Sales 2021
VE / Sales 2022
Number of employees 157
Free float 94.6%

Duration :

Period:

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