Asetek A/S

Investor Presentation • Apr 28, 2025

Disclaimer

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All forward-looking statements contained in this document are expressly qualified by the cautionary statements contained or referenced to in this disclaimer. Undue reliance should not be placed on forward-looking statements. Additional factors that may affect future results are contained in the risk management section in As k's most recent annual report (available athttps://ir.asetek.com/) and these factors also should be considered. Each forward-looking statement speaks only as of the date of this document. Asetek does not undertake any 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, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document.

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Q1 2025 financial highlights

• SimSports revenue reflecting soft demand after high year-end 2024 activity, logistical challenges and macro uncertainties
• Q1 liquid cooling revenue of \$8.6 million (\$10 million in Q1 2024) reflects shift towards more affordable products
• Q1 Group gross margin at 44.2% (43.9% in Q1 2024)
• Completed rights issue in January, raising \$10.4 million net proceeds to strengthen financial position and fund SimSports investment
• Full year 2025 outlook reduced due to lowered SimSport segment revenue expectations Group revenue expected in the range of \$45 to \$53 million with adjusted EBITDA at 0% to 3% of revenue

Global gaming industry exposed to new U.S. import tariffs

• Most significant impact on products made in China
• Broadly applied measures impacting the entire gaming value chain
• Increased uncertainty related to economic growth and consumer demand going forward
• Impacting demand for SimSports products with Liquid Cooling business showing resilience
• SimSports sales to the US on hold

Focus on what Asetek can control

• Experience in handling U.S. import tariffs on Chinese production since 2018
• Trigger for dual sourcing strategy with transfer production to Malaysia from China
• Capacity expansion initiated in Malaysia in close cooperation with customers in late 2024
  • ‒ Response to potential additional import tariffs targeting China
• Relative position of strength with increasing production in Malaysia, supported by recent cost reductions at Group level
  • ‒ Moving production to Malaysia is associated with a cost premium and longer lead times

Production split FY 2024

Revised 2025 group financial guidance

• Group revenue is expected in the range of \$45 to \$53 million (\$52 to \$58 million)
  • ‒ Adjusted EBITDA margin of 0-3% (3-5%)
• Liquid Cooling segment revenue unchanged in the range of \$40 to \$43 million
  • ‒ Gross margin expected in the range of 40-45%
• SimSports segment revenue is expected in the range of \$5 to \$10million (\$12 to \$15 million)
  • ‒ Gross margin in the range of 28-33% (30-35%)

70 80 90 100 Annual Group revenue USD million

7

0%

20%

40%

60%

80%

100%

120%

140%

160%

Long-term profitable Liquid Cooling business

Liquid cooling revenue, gross margin and EBIDTA margin USD million

-

5,0

10,0

15,0

20,0

25,0

Building on market leadership in premium liquid cooling solutions

• 11 new liquid cooling products started shipping in Q1 2025
• 10 new products estimated to start shipping in Q2 2025
• Supplying 3 of the top 5 PC manufacturers globally
  • ‒ Increased volumes in Q1 to new global Tier 1 PC manufacturer, as announced in January

No. of liquid cooling products started shipping

Positioned for profitable Liquid Cooling growth from 2026

• Revenue mainly reflecting shift towards value products
• Lost revenue from two major customers moving to dual sourcing already offset from all other customers growing as well as revenue from new customers
• Volumes and margins on par with Q1 2024
• FY 2025 segment revenue and margin expectation maintained
• Several factors supporting profitable growth from 2026
  • ‒ First major post COVID upgrade cycle and release of multiple new CPU/GPUs
  • ‒ Launch of mid-market products in early Q3 2025, expanding the addressable market with full revenue impact from 2026
  • ‒ Increased commercial focus yielding results

Illustrative dual-sourcing impact USD million

-3,0%

2,0%

7,0%

12,0%

17,0%

22,0%

27,0%

32,0%

37,0%

Soft start to 2025

• Revenue of \$1.1 million vs. \$2.2 million in Q1 2024
  • ‒ Soft demand following the high year-end 2024 activity
  • ‒ Parts of the shipments originally scheduled for delivery in Q4 2024 was delayed to Q1 due to logistical challenges
  • ‒ Large U.S. retailers have ceased purchasing from China due to current tariff situation
  • ‒ Weakening consumer confidence and increased macro uncertainties
• Gross margin of 26%
  • ‒ High quarterly volatility
  • ‒ Gross margins adversely affected by logistical challenges, primarily due to low scale volumes as the business remains in a scale-up phase
  • ‒ Gross margins expected to stabilize at higher level over time as the business grows

Quarterly SimSports revenue and gross margin USD million

Building distribution ahead of mass market releases

• New sales channels and retail access to support massmarket entry on track
  • ‒ Asetek high-end sim racing products now available on Amazon.com
  • ‒ Establishing wider retail reseller and distribution network
  • ‒ Continued brand building
• Distribution agreement signed with leading consumer electronics chain in the Nordics
• Mass-market roll-out progressing
  • ‒ Competitive product line set for launch in H2 2025
  • ‒ Initial console supported products expected in H2 2025
  • ‒ Planned launch in the US and Europe, currently focusing on the Nordics and Europe

Financials

Quarterly revenue development

Quarterly Group revenue USD million

Income statement

Diluted (0.01) (0.01) (0.21)

• Liquid cooling revenue reflecting product mix
  • ‒ Sales of 171,000 sealed loops in Q1 2025, down 1% YoY, down 16% vs. Q4 2024
  • ‒ Liquid Cooling ASP \$50 (\$58)
• Soft SimSports revenue
  • ‒ \$1.1 million in Q1 2025
• Total OPEX decreased 9% vs. Q1 2024
  • ‒ Personnel costs were down 12% due to rightsizing of the organization
• Foreign exchange rates
  • ‒ Functional currency in parent company changed to DKK as of January 1, 2025

Gross margin development

• Q1 2025 gross margin of 44.2%, stable vs. Q1 2024
• Product- and segment mix with shift toward lower-priced liquid cooling solutions

Quarterly Group gross margin development

Balance sheet

USD million, at March 31, 2025

• Cash position of \$9 million, up from Q4 2024
  • ‒ \$10.4 million of rights issue proceeds received early January
• In compliance with loan covenants
• Interest-bearing debt of \$19.6 million related HQ financing
  • ‒ March 31, 2028, maturity, long-term repayment profile
  • ‒ Danish CIBOR 3 rate plus 2.45%-points

Summary and outlook

• 2025 Group revenue development impacted by U.S. import tariffs
• Execute SimSports growth plan supported by strengthened financial position
• Position Liquid Cooling business for growth from 2026 targeting a wider market

Q&A

Appendix

Balance sheet summary

Figures in USD (000's)	31 Mar 2025	31 Dec 2024
ASSETS
Total non-current assets	57,159	55,974
Total current assets	26,130	23,389
Total assets	\$ 83,289 \$	79,363
EQUITY AND LIABILITIES
Total equity	50,886	41,135
Total non-current liabilities	19,389	19,201
Total current liabilities	13,014	19,027
Total equity and liabilities	\$ 83,289 \$	79,363

Statement of equity summary

Summary cash flow statement

		Quarter ended
Figures in USD (000's)		31 Mar 2025		31 Mar 2024
Net cash provided by (used in) operating activities		(2,277)		(2,299)
Net cash used in investing activities		(751)		(2,968)
Net cash provided by (used in) financing activities		8,368		2,657
Effect of exchange rate changes on cash and cash equivalents		319		(296)
Net changes in cash and cash equivalents		5,659		(2,906)
Cash and cash equivalents at beginning of period		3,293		9,121
Cash and cash equivalents at end of period	\$	8,952 \$		6,215

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