XXXXX ANNUAL REPORT 2023 / Page 1

ANNUAL REPORT 2024

Asetek is a developer and manufacturer of high-quality gaming hardware. Founded in 2000, Asetek established its innovative position as the leading OEM developer and producer of the allin-one liquid cooler for major PC & Enthusiast gaming brands. In 2021, Asetek introduced its line of products for next level immersive SimSports gaming experiences. Asetek is headquartered in Denmark and has operations in China and Malaysia with a total of 114 employees. In 2024 Asetek recorded revenue of \$52.5 million.

Asetek A/S Visiting address: Skjoldet 20 DK-9230 Svenstrup J Denmark

Email: [email protected] www.asetek.com

CVR number: 3488 0522

Annual report for the financial year 1 January to 31 December 2024. This annual report is approved by the Board of Directors as of March 7, 2025. The Board will submit this report for approval at the Annual General Meeting on April 28, 2025. This annual report contains prospective information based on Asetek's current expectations. This information is by nature uncertain and associated with risk. Even if company management considers expectations based on such prospective information to be reasonable, no guarantee can be given that these expectations will prove to be correct. Consequently, actual future results may vary significantly compared with what is set out in the prospective information, for reasons including changed conditions in respect of the economy, market and competition, changes in legal requirements and other political measures, exchange rate variations and other factors. Read more about the risks in the chapter on 'Risk management' on pages 29–31 and in note 3 on page 45 'Risk management and debt' in the financial statements.

XXXXX ANNUAL REPORT 2023 / Page 2

CONTENT

Asetek in brief	4
2024 in brief	6
Comments from CEO	7
Asetek as an investment	9
Strategic framework	10
Business model	11
Business segments	13
Liquid cooling	14
SimSports	16
Share and shareholders	19
Management report	21
Corporate governance	24
Risk management	29
Corporate social responsibility	32
Five year summary	33

Consolidated statement of comprehensive income	35
Consolidated balance sheet	36
Consolidated statement of changes in equity	37
Consolidated cash flow statement	38
Notes	39
Comprehensive income statement, parent company	63
Balance sheet, parent company	64
Statement of changes in equity, parent company	65
Statement of cash flows, parent company	66
Notes, parent company	67
Management statement	71
Independent auditor's reports	72
Definitions of ratios and metrics	78

XXXXX ANNUAL REPORT 2023 / Page 3

FOUNDED ON INNOVATION. DRIVEN BY EXCELLENCE

Asetek has been an innovative force in the global liquid cooling manufacturing industry for more than 25 years. In 2021 we introduced products for SimSports gaming. Asetek is headquartered in Denmark and has operations in China and Taiwan with a total of 114 employees. The Asetek share is listed on Nasdaq Copenhagen. In 2024 the company recorded revenue of 52.5 million USD.

Who we are

We are a high-tech company with a long history in mechatronic innovation, focusing on gaming hardware. Since our foundation we have disrupted the PC cooling market, setting new standards for performance and efficiency. In 2021, we continued to leverage our extensive capabilities with software, hardware and mechanics and entered into the world of sim racing as Asetek SimSports®. We are a diverse and agile organization located close to some key electronic manufacturing hubs in South-East Asia.

What we do

Asetek is a developer and manufacturer of high-quality gaming hardware. Since 2000, we design, manufacture, and sell high-quality liquid cooling solutions to most major PC and Enthusiast gaming brands. In 2021, we introduced our line of products for next-level immersive SimSports gaming experiences, offering every sim racer in the world the possibility to push limits and redefine what's possible.

Why we do it

With our market-leading and high-quality product offering our goal is to meet our clients´ requirements for performance, design and longer product lifecycles. Our product development centers around our customers' needs and reflect an innovative engineering approach combined with superior performance. The Asetek brand name has become synonymous with high product quality in all categories, which is confirmed by great reviews and feedback from gamers and hardware enthusiasts around the world. We are in business to push limits and redefine what's possible.

Revenue per year, \$ million Owner type distribution

14.8

2.8

Q1 Q2 Q3 Q4

Adjusted EBITDA per quarter, \$ million

Q1 Q2 Q3 Q4

20.5

4.8

16.5

2.1

24.5

6.2

Revenue per quarter, \$ million

REVENUE 2024

Private Individuals 20.7% Fund company 15.5% Other 13.5%

Pension & Insurance 13.2% Investment & PE 1.6% Treasury Shares 1.3% Unknown owner type 34.3%

Foreign ownership 42.5% Danish ownership 54.5% Norwegian ownership 3.0%

Aquis 0.7%

Cboe Global Markets 11.6% Euronext 43.6% ITG 0.2% LSE Group 1.8% Nasdaq 42.1% Sigma-X 0.04%

\$52.5 million

Foreign ownership

Volume per market

GROSS PROFIT 2024

\$21.9 million

15.8%

of revenue invested in research and

KEY CONCEPTS FOR UNDERSTANDING ASETEK

CUSTOMERS – a global customer base

We design, manufacture, and sell high-performance gaming hardware that delivers next-level immersive gaming experiences. Our products power some of the world's leading PC and enthusiast gaming brands, including three of the five largest PC manufacturers. Since 2021, we have been pushing the boundaries of sim racing, offering every sim racer the opportunity to redefine what's possible with our cutting-edge SimSports product lines.

REACH – well-balanced and global

We have a longstanding local presence in some key electronic manufacturing hubs in South-East Asia and our headquarter is in Aalborg, north Jutland, Denmark. We have a global platform with a solid supply chain creating long-term value for all stakeholders.

PEOPLE – an international organization

We believe that a diverse workforce and an inclusive workplace is a prerequisite for staying competitive, now and in the future. Our highly skilled employees are all sharing the common purpose of challenging industry standards driven by innovation and operational excellence.

INNOVATION – we are a high-tech company

Asetek is a developer and manufacturer of high-quality gaming hardware. Our journey began almost 25 years ago when we disrupted the PC cooling market with our groundbreaking all-in-one liquid cooler, setting new standards for performance and efficiency. In 2021, we continued to leverage our extensive capabilities with software, hardware and mechanics and entered into the world of sim racing as Asetek SimSports®. Our goal is to transform the sim racing scene, pushing limits and redefining what's possible.

HISTORY – founded on innovation

Our history is rooted in innovation that solved a key challenge of performance limitations caused by computer processors running hot. This innovation is the foundation that took Asetek to a world-leading market position within liquid cooling. Since 2021 we are on a mission to become market-leader in the rapidly growing market for sim hardware.

KEY MILESTONES AND EVENTS 2024 50.6

Despite strong growth in the SimSports segment, the relatively larger Liquid Cooling segment experienced declining revenue in 2024. During the year, Asetek also delisted its shares from the Oslo Stock Exchange and is now solely listed on Nasdaq Copenhagen. The year concluded with a decision of a capital increase, enabling continued expansion in the SimSports segment. 72.7 79.8 50.6 76.3 Revenue per year, \$ million Owner type distribution

2020 2021 2022 2023

45 New Liquid Cooling products Private Individuals 20.7% Fund company 15.5% Other 13.5% Pension & Insurance 13.2% Investment & PE 1.6% Treasury Shares 1.3% 12.2 12.7 12,2 15.4 Revenue per quarter, \$ million

Q1 Q2 Q3 Q4

2020 2021 2022 2023

76.3

Revenue per year, \$ million Owner type distribution

72.7 79.8

Adjusted EBITDA per quarter, \$ million

0,4

Foreign ownership Foreign ownership 42.5% Danish ownership 54.5% Norwegian ownership 3.0% Q1 Q2 Q3 Q4 0.0 0.2 -0.5 0,4 Adjusted EBITDA per quarter, \$ million

In March, Asetek's share was delisted from the Oslo Stock Exchange and has since been listed exclusively on Nasdaq Copenhagen. Foreign ownership

Private Individuals 20.7% Fund company 15.5% Other 13.5%

Pension & Insurance 13.2% Investment & PE 1.6% Treasury Shares 1.3% Unknown owner type 34.3%

Nasdaq 42.1% Sigma-X 0.04%

In October, Asetek entered into launched during 2024 a license agreement with Xbox. The Designed for Xbox license agreement enables Asetek to expand into the global console market with existing and future sim racing products, making the company's acclaimed sim racing products available to millions of gamers worldwide. Volume per market Aquis 0.7% Cboe Global Markets 11.6% Euronext 43.6% ITG 0.2% LSE Group 1.8%

In September, the new headquarters and R&D center in Svenstrup, near Aalborg, were completed.

In October, Asetek appointed Maja Sand-Grimnitz as VP Brand and Digital and Henrik Lindskou-Mouritsen as VP Global Sales, with the aim of strengthening the company's commercial focus within its leadership team.

In December, it was announced that 219,925,366 new shares were subscribed for in the rights issue at a subscription price of DKK 0.40 per share, corresponding to gross proceeds of DKK 88 million.

A TURNAROUND YEAR

Looking back, 2024 was a year of significant change – challenging at times, but ultimately necessary to strengthen our foundation for the future. We took decisive steps to secure the long-term growth and development of our business.

Just a few weeks into the new year, Asetek celebrated its 25-year anniversary. It is remarkable to think that an idea conceived in a university dorm room and a prototype built in a garage has led to where we are today. Summing it all up, it comes down to continuous innovation and a team of talented, dedicated individuals working together to deliver products that make a difference by enabling better gaming experiences.

While Asetek have delivered material growth and value creation since inception, the past 25 years have included both ups and downs. There is no denying that 2024 also was a mixed bag, with an unexpected and rapid contraction in our Liquid Cooling segment, but also strong growth for the SimSports business.

Against the challenging Liquid Cooling backdrop, management and the board took decisive actions to cut costs, strengthen commercial management and ultimately raise capital to maintain a strong foundation for delivering future value creation through our market leading liquid cooling and sim racing products.

Following the turnaround measures, 2025 will likely be a transitional year before growth resumes in earnest in 2026. This is supported by ongoing customer dialogues and our plan to expand the addressable markets across both business segments, including the launch of a high-quality sim racing product line for the console-based mass market.

"We took decisive steps to secure the long-term growth and development of our business."

Platform for profitable growth

In late 2024, Asetek executed a rights issue to ensure the continued SimSports scale-up as cash flow from the profitable Liquid Cooling business fell short of expectations. While we did not raise the full target amount, the new liquidity provides flexibility to adjust and optimize investments. We are confident in our ability to grow the sim racing business. Asking shareholders for capital after a challenging year was far from ideal, and trust shown by both existing and new shareholders is highly appreciated.

During the year, we also reduced our workforce, primarily in Denmark, and closed the U.S. operation. It is always sad to part ways with colleagues, some of whom have been with us for many years. However, the cost-savings were necessary to create a more efficient organization and structure. The U.S. closure also reflects that a local presence has become less relevant as our customers' key decision-makers now primarily based in Asia.

We recognize that increased global geopolitical tensions are creating uncertainties regarding new tariffs and potential global supply chain disturbances. We are monitoring the situation and are prepared to address any future challenges with a combination of measures.

In September 2024, the new headquarters and R&D center was completed after a four-year process. With a new base of operations, stronger balance sheet and leaner organization, we have established a strong platform from which to execute our long-term growth strategy.

Liquid cooling – transition, then profitable growth

For Liquid Cooling, our largest segment, we have always emphasized the challenges of predicting revenue. In 2024, this was especially evident as we faced a rapid and unexpected decrease in revenue. This was due to a combination of high customer inventories and two of our largest customers moving to dual sourcing to strengthen their supply chains. While this is a logical step – just as we maintain dual sourcing in our own supply chain – it nonetheless has a significant short-term negative impact.

However, there were also positive developments. When excluding the two above-mentioned customers, all our other customers grew year-over-year. Also, at the end of 2024, Asetek secured a new customer – one of the world's largest PC manufacturers – which also required a second source, this time to our benefit. Out of the five biggest PC manufacturers globally, three are now using Asetek Liquid Cooling products.

In 2024, Asetek introduced the strategy of complementing our high-end products with a value-oriented offering to expand our addressable liquid cooling market. This initiative will gradually gain traction from 2026. Furthermore, we are enhancing the commercial capabilities of the organization, applying a sharper commercial focus in all aspects of decision-making and integrating even deeper with our customers. As part of this, in 2024, the commercial expertise within the executive management team was strengthened.

We have a clear plan for resuming growth in Liquid Cooling from 2026, as communicated in connection with the rights issue. For 2025, revenue is expected to remain largely at the same level as in 2024. The business will remain profitable, as it has been for many years. Asetek has a track record of quickly adapting to changing market conditions and will do so again this time. We are the technology leader with a strong position in the premium segment, and as long as we continue to innovate, Asetek's products and services will continue to be in demand by both new and existing customers.

SimSports – expanding our sim racing universe

For our SimSports business, 2024 was another positive year with multiple product launches and strong revenue growth. In less than three years, Asetek has become a premium player in the growing sim racing market, going from zero to \$10 million of annual revenue. We now offer several product lines designed as an open ecosystem, which have received highly positive feedback from end-users and reviewers. Additionally, during the year, we entered into an agreement with Xbox to launch products with console support.

Next for us, is the completion and launch of a product line targeting the mass gaming market, followed by Asetek products with Xbox support. Both are set to launch in the second half of 2025, significantly expanding the addressable market and are expected to drive strong revenue growth in the coming years.

Having the best products is not enough. Beyond delivering on the product roadmap, our focus in 2025 will be on attracting top talent to strengthen sales channels as well as building up the SimSports brand. A strategic priority is to ensure our products are readily available in all relevant channels, whether it is our own web shop, resellers or on platforms like Amazon.

As we stated in December, we expect EBITDA improvement compared to 2024, but we do not anticipate the SimSports segment reaching profitability in 2025. This is according to plan as Asetek purposefully move in the right direction by optimizing SimSports investments and creating a strong platform for a growing profitable business.

25 years of innovation – with more to come

We are confident that Asetek is going into 2025 with a stronger foundation, and we have, over time, delivered strong growth and built a sizeable global business. We also know that it does not always move in straight line.

As result of our innovation drive and focus on excellence, far more than 10 million end users worldwide have bought and used our products which we have conceptualized, designed, manufactured and sold. Our innovative products, both in liquid cooling and sim racing, have won several global awards.

With that in mind, I would like to extend a special thank you to all my colleagues, our customers, our shareholders, our partners and suppliers. It has been a challenging year, but we now look forward with confidence to the next 25 years.

André S. Eriksen, Founder and CEO

FIVE REASONS TO INVEST IN ASETEK

Asetek is well positioned to capitalize on the its competitive strengths through innovation, operational excellence and a leading position as a premium supplier of high-quality gaming hardware.

1.

Large and growing addressable market

Asetek is strategically positioned in the expanding gaming market. The rising interest in gaming is driving the liquid cooling market, as high-performance PC hardware demands efficient cooling solutions. Simultaneously, the growing demand for high-performance gaming setups is boosting the simulation hardware market, as consumers seek more realistic and competitive gameplay. The demand for liquid cooling solutions is to a large extent linked to the growth of the overall PC gaming hardware market (which, however, includes gaming laptops, which do not need liquid cooling). The overall PC gaming hardware market is expected to show an annual growth rate of approximately 5.2%, reaching \$69.0 billion by 2027. 1

1 Statista (2024), Gaming Hardware, Gaming PCs and Laptops – Worldwide/

Leveraging a leading premium segment position

Asetek has a leading position in the premium segment of the gaming hardware market. Since 2000, we design, manufacture, and sell high-quality liquid cooling solutions to most major PC and Enthusiast gaming brands. In 2021, Asetek expanded its business into the rapidly growing SimSports market for racing simulator gear. Asetek has earned a leading position in the premium segment of both the Liquid Cooling as well as SimSports market. The leading market position combined with our strong brand name and high-quality products can be leveraged into increasing the addressable market. This is accomplished by targeting the Liquid Cooling mid-market segment and launching a new SimSports product line with strong value offering towards entry-level end-users, including products with console compatibility.

3.

Strong innovation capability supporting future growth

Continuous product development is crucial for maintaining and strengthening competitiveness in an industry that is characterized by competition and technological progress. Asetek is renowned for being an innovative, hightech and entrepreneurial company that provides products with very high quality. At Asetek, product development centers around customers' needs and reflects an innovative engineering approach combined with superior performance. The company has two R&D centers – one in Denmark and one in China. In 2024, Asetek spent 15.8% of total revenue, or USD 8.3 million on R&D, securing continued competitiveness trough future launches of world-class products.

4.

Profitable Liquid Cooling business provides a foundation for SimSports growth strategy

Asetek invented the all-in-one liquid cooler and has been solving thermal challenges for 25 years. Our business segment Liquid Cooling has over the last 10 years generated total revenues exceeding \$540 million with an average adjusted EBITDA margin of 29%. The profitable Liquid Cooling operation provides a financial foundation for the growth strategy of the SimSports business. The strategic fit and synergies between the two segments are visible and will act as a driver for future value creation.

5.

Strong SimSports growth potential

In 2024, revenue in the SimSports segment increased by 24% compared with 2023. Growth in 2024 was mainly driven by a combination of multiple new products and a strong increase in new end-users and resellers globally. Gaming simulation is a rapidly expanding segment of the gaming hardware market, and the demand for gaming simulation is linked to the growth of the overall hardware accessories market. For the coming three years, this market is projected to show an annual growth rate of approximately 13.7%, reaching USD 115.3 billion by 2027. 1

1 Statista (2024), Gaming Hardware, Gaming Accessories – Worldwide

ASETEK´S APPROACH TO VALUE CREATION

Asetek's strategy is based on operational excellence, innovative product development, superior customer service and expansion of the addressable market. In that way we will secure long-term sustainable organic growth. The goal is to be the leading brand in the markets in which we operate.

The strategic framework at Asetek consists of core values, goals, strategic focus areas and operational priorities. By adhering to our strategic framework, Asetek secures a strong platform for long-term sustainable growth.

Core values

The core values at Asetek – innovation and excellence – are rooted in our DNA and have been our guidelines from the start. Asetek was founded 25 years ago with the intention of solving problems for our customers. Since then, we believe staying close to our customers' problems also means being closer to the solution.

Goals

Looking ahead, Asetek has set both a medium-term growth ambition and short term financial goals. Asetek has also committed to set sustainability goals, which provides a pathway to reduce emissions in the future. At group level, the ambition is to achieve annual revenue exceeding \$50 million in both our Liquid Cooling and SimSports segments by the end of the medium-term period. Our market in the Liquid Cooling segment is characterized by low visibility and volatile market dynamics meaning that the growth between different years can vary substantially.

Strategic focus areas

Asetek will continue to do what we are best at – developing and launching high-quality gaming hardware products as well as continue to develop our customer service. At the same time, we plan to expand our addressable market and increase our marketing and brand building efforts. Additionally, we will expand the number of SimSports resellers and sales channels and compete for new OEM Liquid Cooling customers. All of these actions will drive organic growth going forward.

Operational priorities

Asetek is a well-established brand name in the premium market segment. We are guided by a strong belief that there are very good opportunities for growth by leveraging our current market position and strong brand name.

In the short to medium term, our operational priorities are to focus on expanding our potential market and revenues both within our Liquid cooling business unit as well as within SimSports. This will be accomplished by new product launches and by updating the existing product range, targeting the low-end of the premium market. Doing this, we will strengthen Asetek's market position in all product categories and market segments we focus on.

STRATEGIC FRAMEWORK AT ASETEK

CORE VALUES	GOALS	STRATEGIC FOCUS AREAS	OPERATIONAL PRIORITIES
Innovation	Medium-term growth ambition	Strengthen Asetek's market position	Liquid Cooling Broadening addressable market
Operational excellence	Short-term financial goals	Establish new sales channels	SimSports Introducing new produts
Customer centricity	Sustainability goals	Strengthening our brand name

A GLOBAL PLATFORM SUPPORTING GROWTH

Asetek's leading position is based mainly on the competitive strength that originates from the company's operational excellence in offering high-quality gaming hardware products. During 25 years, Asetek has built up a wealth of experience that is unique among companies in our industry and is recognized for premium quality.

Innovation and product development

Product development is and always has been the main focus for Asetek. Since its inception, the company has successfully launched innovative products with high quality. Asetek's R&D team and technology lab are based in Aalborg, Denmark. These teams are responsible for innovation, concept and design of our products and also manage collaboration with Asetek's global customer base to define requirements and develop cutting edge technology. We continuously try to keep our R&D teams close to the customers, which encourages faster, more responsive and effective feedback for improvements to our existing product range as well as new developments. The Aalborg team works closely with the R&D team in Xiamen, China, to identify the optimal sources for the necessary components to fulfill specific customer requirements.

Sourcing and production

Asetek's manufacturing and logistics teams in Xiamen, China and Malaysia, evaluates and sources components and suppliers for the finished product to be assembled, allowing us greater control over product quality. Our cooling solutions are assembled by the Company's principal contract manufacturer based in Xiamen and Malaysia and since 2023, a likewise contract manufacturer has been producing many of our SimSports products in Xiamen and Malaysia. Asetek's business model concentrates primarily on

having contractual relationship with tier-1 contract manufacturers.

A quality team is divided in two groups: one in Denmark and one in Xiamen. Their main focus is to conduct ongoing inspections to ensure control over all aspects of quality and compliance with a growing number of regulated parameters.

Logistics and sales

Finished products are primarily delivered directly to customer hubs in China, with smaller quantities shipped directly to Europe and USA. Logistics are often outsourced, and except our own webshop for SimSports products, our partners handle deliveries to end-users themselves.

Liquid coolers are sold through two channels. The main sales channel is a white-label approach, meaning products are sold as a standalone product to partners who are in turn selling it under their label. Asetek's liquid coolers are also sold to partners using it as a component to build a complete PC, which is then sold to end-users. SimSports products are sold under Asetek's own brand either directly to end-users through our webshop or via resellers, who distribute them both online and in physical stores.

Marketing and customer service

The sales, marketing and product management teams, based principally in Denmark and Taiwan, oversee customer relationships to facilitate communication and development, ensuring that the developed product meets or exceeds customer demands. Considering our history and DNA, Asetek is in many ways synonymous with innovative and

high-quality liquid cooling solutions. As a consequence, our marketing efforts mainly focus on leveraging this position and building the Asetek SimSports brand name. The overall marketing strategy will benefit both SimSports sales channels – currently done through online reviews using influencers and strategic partnerships as well as presence on tradeshows and other key events.

Delighted customers are our best ambassadors, and we know that they happily share their experience and trust in us. Our dedicated marketing and sales teams are responsible for providing customer service and support, making it easier to establish closer relations to them. In the end, it is our customers that can tell us how we can provide a premium customercentric experience.

Asetek offices Asetek representation OEM HQ SimSports resellers

LIQUID COOLING AND SIMSPORTS – AN ATTRACTIVE COMBINATION

Our Liquid Cooling business has over the last 10 years generated total revenues exceeding USD 540 million with an average annual adjusted EBITDA margin of 29%. This profitable business unit provides a financial foundation for the growth strategy of our other key business unit, SimSports.

The profitable Liquid Cooling busniss enables us to execute on the growth opportunities in SimSports. It also offers a strong strategic fit, enabling synergies between the two business segments and driving future value creation.

White-label and own webshop main sales channels

Liquid coolers are sold through two channels. The main sales channel is a white-label approach, where OEM partners purchase and resell as standalone products under their own label. We also sell liquid coolers to partners who incorporate them as a key component to build a complete PC, which is then sold to end-users.

Our Simsports products are sold via a selective distribution network with our primary sales channels being our own webshop where products are sold globally, directly to end-users (DtC), and resellers (B2B2C) offering our products to end-users through online stores and select physical stores. Products are also sold via select distribution part-

Clear and attractive synergies

Asetek fosters collaboration and integration between the Liquid Cooling segment and SimSports segment to drive synergies and enhance overall performance. Essentially, three key areas have been identified where clear synergies create long-term value.

1) Asetek benefits from the flexibility and expertise of its engineering teams, who frequently work across both segments. This cross-functional approach enables Asetek to efficiently develop high-quality Liquid cooling and SimSports products, accelerating innovation and product development.
2) By sharing sourcing and manufacturing resources across both segments, Asetek is able to streamline operations, enhancing cost efficiency and product quality.
3) By leveraging cross-selling opportunities, Asetek can introduce SimSports Products to existing Liquid Cooling customers, and vice versa, expanding the customer base and increasing market reach. Synergies include the potential to increase sales in the liquid cooler segment through new sales channels opened by SimSports, as well as bundle SimSports products with liquid coolers to resellers.

Liquid cooling and SimSports sales channels

MARKET LEADER WITHIN PREMIUM LIQUID COOLING SOLUTIONS

Asetek invented the all-in-one liquid cooler and has been solving thermal challenges ever since. Since the beginning, liquid coolers from Asetek have delivered high performance while providing superior reliability.

Asetek is one of the global leaders in premium liquid cooling solutions for computer hardware enthusiasts and gamers. Asetek's Gaming and Enthusiast products are all-in-one coolers that provide reliable, maintenance-free liquid cooling to gaming and high-performance PC customers as well as eSports athletes to enjoy top-tier performance from their equipment.

The two most common cooling methods to cool computer hardware are air cooling and liquid cooling. Air cooling is the most widespread, though it typically offers lower performance. Liquid cooling, on the other hand, provides superior cooling efficiency, especially for high-performance hardware, but it tends to be more expensive than air cooling. Beyond functionality, liquid coolers have evolved into branding and design tools, incorporating features like LED lighting and customisable displays, appealing to enthusiasts and gamers who value aesthetics as part of their setup.

One of the key factors in the performance of a gaming computer is the cooling system, which helps prevent overheating and maintain optimal performance. Liquid cooling systems have gained popularity among gamers due to their ability to effectively dissipate heat and allow for overclocking of the CPU. Overclocking refers to the process of increasing the clock speed of the CPU beyond its factory-set limits,

which can significantly improve the performance of the computer. However, it also generates additional heat, making an effective cooling system essential. Components like CPUs, GPUs, memory modules, chipsets and hard drives are particularly vulnerable to overheating, which can lead to temporary malfunctions or permanent failure.

Liquid cooling systems, which use a closed loop of fluid to transfer heat away from the CPU, can effectively dissipate this heat and allow for sustained overclocking without the risk of overheating or damaging the hardware.

What is liquid cooling?

Liquid cooling is a system used to lower the temperature of a computer or other electronic device by circulating a coolant through its internal components. The coolant, which is usually water or a water-based solution, absorbs heat from the PC and carries it away, keeping the PC cooler than if it were relying on air cooling alone.

Why is liquid cooling better than air cooling?

Air cooling systems use a fan and heat sink to move heat away from the CPU. A liquid cooling system uses a water pump and radiator to move heat away from the CPU. The main advantages of liquid cooling compared to air cooling are:

1. Liquid cooling is more efficient at removing heat from components than air cooling
2. Liquid cooling is not affected by dust buildup or other air flow obstructions
3. Liquid cooling is typically quieter than the fans used for air cooling

LIQUID COOLING REVENUE 2024

\$42.8 million

LIQUID COOLING AVERAGE ANNUAL ADJUSTED EBITDA MARGIN, LAST 10 YEARS

MATURE MARKET WITH STABLE GROWTH

The liquid cooling market is relatively mature and stable, extending to the broader computer hardware ecosystem, where both manufacturers and consumers benefit from the reliability and consistent performance of the current technology. As a result, the risk of sudden technological shifts affecting the market is low.

Historically, the competitive landscape has been divided between low-end, low-quality players and high-end, premium brands. Consumers who preferred premium products did not typically consider low-end alternatives, resulting in limited competition within the high-end segment. Demand for high-quality products has been solid, and the competitive environment has remained stable.

Changing market dynamics

Based on market observations and customer dialogue in 2024, it has become evident that the market dynamics have shifted. The quality of lower-end market products has been more sought after as consumer preferences have shifted towards more affordable gaming PCs, which in turn increases the demand for somewhat cheaper liquid cooling options. As a result, end-users are now prioritising value in the mid-end segment over paying premium prices for high-end models. This shift has made cost-effectiveness and value become critical success factors.

In response, Asetek is expanding its LIquid Cooling product range to include products for the mid-range market, aiming to capture a broader consumer base in an increasingly competitive environment. This shift positions Asetek to meet the evolving needs of both premium and mid-market consumers.

The long-term growth prospects are solid and demand for high-performance hardware like liquid cooling solutions is fuelled by the increasing global demand for gaming-related products, advancements in gaming technology, and the rise of competitive gaming (eSports). Another factor expected to contribute to the demand for liquid cooling solutions is PC upgrade cycles. The advancement of chip technology, including the introduction of new CPUs and GPUs, often occurs in cycles and creates a demand for PC upgrades. As such, the demand for liquid cooling solutions is to a large extent linked to the growth of the overall PC gaming hardware market (which, however, includes gaming laptops, which do not need liquid cooling). The overall PC gaming hardware market is expected to show an annual growth rate of approximately 5.2%, reaching USD 69.0 billion by 2027. 1

ASETEK SIMSPORTS – PRODUCTS FOR EVERY TYPE OF SIM RACER

IIn 2021, Asetek introduced its first sim racing products. Since then, over the past three years, Asetek SimSports has established itself in the market with three fully launched product lines, reaching an annual revenue of \$10 million in 2024 and showing strong potential for continued growth in both revenue and profits.

From the start in 2021, Asetek has positioned the SimSports product offering in the high-end of the market, targeting competitive and committed gamers as well as racing and automobile enthusiasts. Asetek's mission is to make high-quality sim racing products available for everyone, which is why we have three different product lines in the premium segment, giving end-users the opportunity to assemble the preferred sim racing setup. The La Prima product line is suited for end-users entering the high-end simracing space seeking to take their racing to the next level, offering the possibility to upgrade and adjust to fit all needs. The Forte product Line is the mid-tier offering, for end-users

that want to maintain high quality in build and design combined with sublime performance and

SIMSPORTS REVENUE 2024 \$9.6 million

user experience. Invicta is our premium product line, offering an immersive and authentic sim racing experience.

Asetek's product strategy is to expand its offering to cover multiple price ranges, including introducing mid-segment console products, reaching a broader segment of the sim-racing market. The competitive landscape for simracing is characterised by brands that often look and claim the same. As part of its marketing, Asetek is focusing on its combination of having a real racing background and a strong legacy in gaming, which differentiates it from competitors by providing authenticity, driving technological innovation, enhancing brand credibility, and leveraging cross-industry synergies. Through this approach, Asetek aims to establish itself as a key player in the market, leveraging its expertise in both realms to offer a more integrated and authentic simracing experience.

Strong growth opportunity

The gaming simulation market is a growing industry. The market is driven by the increasing demand for high-quality, immersive gaming experiences that allow gamers to feel as though they are participating in real-life events, and the improvements in graphics and processing power have enhanced the realism and immersion of simulation games, attracting a

broader audience. In the past three years, the trend in the major racing gaming segment has generally shown growth in monthly active users, and the market has further generated spikes in the segment's performance when new gaming titles are released.1

The gaming simulation market encompasses major racing games like Gran Turismo, F1, BeamNG. drive and Forza Motorsport. Looking at the top 25 major racing games, the market boasts 60.4 million lifetime players as of April 2024, with a robust engagement and an average of 5.3 million monthly

active users (MAUs) over the past twelve months from May 2023 to April 2024, reflecting strong community commitment.2

Increased interest in racing

The significant growth in demand for simracing solutions is also driven by the increasing popularity of real-life motorsports. Events like Formula 1 have expanded into a mass market audience, further fueled by the influence of media such as Netflix series and the release of new racing titles.

HIGH QUALITY SIM RACING GEAR

Asetek offers pedals, wheelbases, and steering wheels across three product lines, each offering the user distinct categories of hardware with varying features, authenticity, and price.

Invicta is the premium product line, offering an immersive and authentic sim racing experience.

Pedals Wheelbase Steering wheel

The Forte product Line is a high-quality mid-tier offering, for end-users that want to maintain high quality in build and design combined with sublime performance and user experience.

The La Prima product line is suited for end-users entering the high-end simracing space seeking to take their racing to the next level, offering the possibility to upgrade and adjust to fit all needs.

THIS IS SIMULATION RACING

What is sim racing?

Simulator games enable players to experience situations and scenarios in great details and recreate real-world situations. Sim racing (simulation racing) is basically motorsport in a virtual environment. This means that sim racers are driving virtual cars on computer-generated tracks. The sim racing games are designed to mimic the feeling of driving a real car as closely as possible, and the racing is done using specialized software and hardware. The hardware sim racers use plays a crucial role to enhance the realism and overall driving experience.

Learn all sim racing terms

There are a lot of technical terms in sim racing, and motorsports in general. At Asetek's webpage, you will find a glossary where you are introduced to the most important racing terms, in order to better understand both sim racing and motorsports.

https://www.asetek.com/blogs/glossary-sim-racing-and-motorsports-terms/

PC

A high-performance PC operates the simulation software and interfaces with all the simulator's devices

Rig and seat Provides a solid and stable platform for all the devices – wheel-Pedals

base, pedals, display – as well as the driver Allow for precise and realistic braking, acceleration and clutch control

Wheelbase A direct drive motor delivers strong and realistic force feedback, allowing the driver to feel the road and the car's behavior

Steering wheel Operate the car using buttons, switches, and rotary controls while receiving visual feedback through LEDs and a screen. Easily swappable with a Quick Release (QR) connection

Displays Provides an immer-

sive and realistic field

of view

Accessories Button boxes and other accessories enhance realism and immersion, offering additional functionality and customization

options

PRIMARY LISTING ON NASDAQ COPENHAGEN AND COMPLETED RIGHTS ISSUE

In 2024, Asetek's shares were delisted from the Oslo Stock Exchange (Oslo Børs) and primarily listed on Nasdaq Copenhagen. At the end of the year, a rights issue with preferential rights for existing shareholders was initiated, which was completed on January 6, 2025. The rights issue raised gross proceeds of DKK 88 million for Asetek.

Primary listing on Nasdaq Copenhagen

Since the company's IPO on February 11, 2013, the Asetek share had been listed on the Oslo Stock Exchange. On May 17, 2023, the share was dual-listed on Nasdaq and Asetek announced the intention to delist its shares from Oslo Stock Exchange. In December 2023, an extraordinary general meeting approved the de-listing of Asetek's shares, followed by an approval from Oslo Stock Exchange in the same month. As a result of both approvals, Asetek's shares were de-listed from the Oslo Stock Exchange effective March 26, 2024, and have since had a primary listing solely on Nasdaq Copenhagen.

Rights issue

On November 7, 2024, Asetek announced its intention to carry out a rights issue with preemptive rights for existing shareholders. The purpose was to increase financial flexibility and enable continued investments in the SimSports segment to capitalize on future growth opportunities. Each shareholder could subscribe for three new shares for every share they held on the record date, at a price of DKK 0.40 per share. The rights issue was completed on January 6, 2025, and raised gross proceeds of DKK 88 million for Asetek.

Share price development and turnover

The Asetek share trades under the symbol ASTK on Nasdaq Copenhagen and the share's ISIN code is DK0060477263 (Technology: Computer Hardware), segment Small Cap. At the close of 2024, Asetek's share price was DKK 0.479. This is equivalent to a market capitalization of DKK 47.1 million. The highest price quoted during the financial year of 2024 was DKK 3.68 (March 1) and the lowest price was DKK 0.45 (December 27). In 2024, the total turnover of Asetek shares traded on all marketplaces amounted to 131.2 million shares, corresponding to 133 percent of the total number of shares at December 31, 2024.

Share capital

After registration of the share capital increase following the rights issue, the share capital in Asetek amounted to DKK 31,823,925.80 divided into 318,239,258 shares with a nominal value of DKK 0.10. All shares are of the same class and the same share of capital and earnings. Each share entitles the holder to one vote at the General Meeting and each shareholder is entitled to vote for all shares held by the shareholder.

Ownership structure

After the rights issue was registered on January 6, 2025, the ten largest shareholders controlled 41.9 percent of the capital and votes. Board members

and executive management held a total of 3.2 percent of the capital and votes. Other members of management held an additional 0.83 percent of the capital and votes. The total number of shareholders in Asetek was 7,240 at January 6, 2025.

Concentration (Jan 6, 2025)	Shares	Capital and votes
The 10 largest owners	144,176,879	45.31%
The 20 largest owners	165,351,405	51.99%
The 30 largest owners	177,318,367	55.72%

Share repurschases

In 2024, no shares were repurchased. As of December 31, 2024, Asetek holds a total of 1,256,115 treasury shares.

Investor Relations (IR) at Asetek

Aseteks' goal is that the company should be valued on the basis of relevant, correct and current information. This involves a clear financial communication strategy, reliable information and regular contact with various stakeholders in the financial markets. The management and Board of Directors of Asetek have a clear ambition to keep an ongoing dialog with the media and the capital market. This takes place through presentations of quarterly

reports and meetings with analysts, investors and the media at various events, seminars, one-on-one meetings and during visits to Asetek offices. Interested parties can download presentation materials and listen to audio recordings from presentations of quarterly reports on Asetek's website.

Financial information regarding Asetek is available to download from https://ir.asetek.com/overview/default.aspx. This includes financial reports, press releases and other presentations. The company's press releases are distributed via Cision and are also available on the company's website.

Financial calendar 2025

April 28, 2025	Q1 2025 financial report
April 28, 2025	Annual General Meeting
August 19, 2025	Q2 2025 financial report
November 04, 2025	Q3 2025 financial report
March 16, 2026	Q4 and annual 2025 financial report

Shareholder contact

Per Anders Nyman, Head of Investor Relations Mobile: +45 2566 6869 [email protected]

Shareholding distribution

Holding size	Shares	Capital and votes
1 –1,000	79.8 72.7 966,168	76.3 0.3%
1,001–5,000	4,079,933	1.3% 50.6
5,001–10,000	4,361,448	1.4%
10,001–100,000	33,634,422	10.6%
100,001–500,000	39,128,145 2020 2021	12.3% 2022 2023
500,001–1,000,000	18,617,328	5.8%
1,000,001–5,000,000	53,405,172 Revenue per quarter, \$ million	16.8%
5,000,001–10,000,000	40,977,763	12.9%
10,000,001–	89,354,632 12.7	15.4 28.0%
Unknown holding size	12.2 33,714,247	12,2 10.6%
Total	318,239,258	100.0%

Q1 Q2 Q3 Q4

Adjusted EBITDA per quarter, \$ million

Source: Q4 Inc. Data as of January 6, 2025

Source: Q4 Inc.

Revenue per year, \$ million Owner type distribution

Source: Q4 Inc. Data as of January 6, 2025

Geographic distribution

Source: Q4 Inc. Data as of January 6, 2025

Volume per market

Nasdaq Copenhagen 96.5% Oslo Stock Exchange 3.2% Deutsche Boerse AG 0.1% Boerse-Stuttgart 0.1% London Stock Exchange 0.1%

Source: Q4 Inc. Data as of January 6, 2025

MANAGEMENT REPORT

Management report	22
Corporate Governance	24
Risk management	29
Corporate Social Responsibility	32
Five year summary	33

MANAGEMENT REPORT

PERFORMANCE IN 2024

Profit and loss

Total revenue for 2024 was \$52.5 million, representing a decrease of 31% from 2023 (\$76.3 million). Sealed loop cooling unit shipments for 2024 totaled 0.8 million compared with 1.17 million in 2023. Revenue and unit shipment changes reflect fewer shipments of liquid cooling products which were negatively impacted by a decrease in the macro level market for gaming hardware and a shift toward cheaper alternatives. These effects were partly offset by an increase in shipments of SimSports products. Average Selling Prices (ASP) for liquid coolers in 2024 decreased to \$55.76 from \$59.29 in 2023.

Gross margin was 41.8% in 2024 compared with 45.5% in 2023. The change reflects a change in product mix and the recent price sensitivity in the gaming hardware market. In 2024, total operating expense increased to \$41.2 million, from \$25.3 million in 2023. Operating expense in 2024 included a required non-cash impairment charge of \$13.8 million as a consequence of an assessed impairment within the cash generating units. Excluding this onetime charge, operating expense in 2024 increased 8% mainly due to marketing and operations costs

associated with investment in the SimSports business.

Personnel expense increased 2% in 2024 compared with 2023. Legal cost incurred associated with intellectual property settlements, defense of existing IP and securing new IP was \$0.2 million, level with 2023. Share-based compensation cost associated with warrants and options issued to employees was \$0.3 million in 2024 (\$0.5 million in 2023).

Adjusted EBITDA was \$0.3 million in 2024, compared with \$15.9 million in 2023. Adjusted EBITDA in 2024 represents operating loss of \$19.2 million,

plus depreciation of \$5.4 million, plus share-based compensation of \$0.3 million, plus the special item non-cash impairment charge of \$13.8 million.

Foreign currency transactions in 2024 resulted in a \$1.4 million gain (\$1.0 million loss in 2023).

Income tax expense was \$5.7 million in 2024, principally due to impairment charges of \$4.2 million to deferred tax assets related to uncertainty regarding their future recoverability. Income tax expense was \$2.5 million in 2023. Income tax expense in 2024 includes \$0.9 million associated with the U.S. Global Intangible Low-Taxed Income (GILTI) inclusion, which requires U.S. companies to report

foreign corporation intangible income that exceeds 10% return on foreign invested assets (\$0.8 million effect in 2023).

Asetek had a total comprehensive loss of \$25.3 million for 2024, compared with total comprehensive income of \$6.7 million in 2023. Comprehensive loss included a negative \$1.3 million translation adjustment in 2024 (positive \$0.7 million in 2023).

Balance sheet

Asetek's total assets at December 31, 2024 were \$79.4 million, compared with \$102.7 million at the end of 2023. The principal factors affecting the change were as follows: Property, plant and equipment decreased by \$8.9 million, principally as a result of a required non-cash impairment charge of \$13.8 million as a consequence of an assessed impairment within the cash generating units. Deferred tax assets decreased by \$5.7 million due to uncertainties regarding their future recoverability. Cash and equivalents decreased by \$5.8 million due to cash requirements of the business. Inventories decreased by \$2.4 million associated with the reduced operating volumes.

Total liabilities increased by \$1.6 million in 2024, due to offsetting factors. Short-term debt decreased by \$12.9 million and long-term debt increased by \$16.6 million principally as a result of net \$5.7 million in funds drawn to complete construction of a new headquarters building. Upon completion of construction in 2024, \$19.3 million of debt was refinanced to a longer term structure, maturing in March 2028. This increase in liabilities was offset by exchange rate effects of a stronger U.S. dollar, lower accrued employee compensation associated with fewer employees, and reduced transaction volumes in accounts payable.

Working capital (current assets minus current liabilities) totaled \$4.4 million at December 31,

2024 (negative \$3.2 million in 2023). The change principally reflects the refinancing of short-term debt in 2024.

Statement of cash flows

Net cash provided by operating activities was \$1.2 million in 2024 (\$16.3 million provided in 2023). The change was principally due to operating loss generated in 2024 compared with operating income in 2023.

Cash used by investing activities was \$10.1 million compared with \$27.4 million used in 2023. The construction of Asetek's headquarters facility was completed in Q3 2024, with property, plant and equipment additions totaling \$7.8 million (\$24.9 million in 2023). Additions to capitalized assets under development associated with future products was \$2.3 million, a decrease of \$0.2 million from 2023.

Cash provided by financing activities was \$5.0 million in 2024 compared with \$12.3 million provided in 2023. \$5.7 million was drawn on credit facilities in 2024 to finance completion of the Company's headquarters building. Funds provided by financing in 2023 included a rights offering which generated net proceeds of \$16.1 million.

Net decrease in cash and cash equivalents was \$5.8 million in 2024, compared with an increase of \$1.7 million in 2023. Cash and cash equivalents at December 31, 2024 was \$3.3 million (\$9.1 million in 2023).

Liquidity and financing

In mid-2024, the Company experienced a decline in revenue resulting from a weakened gaming hardware market while it continued to invest in the growing SimSports business as well as finish construction of its new headquarters. As a result, a projected near-term cash shortfall required that management initiate fund-raising with the launch of an equity rights offering in November 2024. As of December 31, 2024, the Company had working capital of \$4.4 million and long-term debt of \$19.2 million. Upon subsequent completion of a rights offering on January 6, 2025, the Company generated net proceeds of \$10.5 million through the issuance of 219.9 million new common shares of stock. In May 2023, the Company issued 71.2 million new common shares in an equity rights offering, raising net proceeds of \$16.1 million.

While there is no assurance that the Company will generate sufficient revenue or operating profits in the future, Asetek's management estimate that the Company's cash position and the liquidity available from its operations, external borrowings and other sources available, after the results of the rights offering on January 6, 2025, is sufficient to satisfy its working capital requirements for the foreseeable future, based on financial forecasts. To the extent necessary to fund expansion or other liquidity needs, management will consider offerings of debt, equity, or a combination thereof, depending on the cost of capital and the status of financial markets at that time.

2024 RESULTS vs. EXPECTATIONS

In the 2023 report, the Company communicated expectations of revenue growth between -5% to 5% for 2024 (equivalent to estimated total revenue of \$72.5 to \$81.1 million), with expected adjusted EBITDA margin to be in the range of 12% to 17%. In June 2024, the Company received updated revenue forecasts from its OEM partners indicating a potentially weak second half of 2024 and therefore temporarily suspended its revenue guidance. After a detailed customer review which revealed that the liquid cooling market rebound would be weaker than anticipated, Asetek reduced guidance on July

1 to reflect Group full year revenue expected in the range of \$52 to \$55 million, with an adjusted EBITDA margin of 1% to 4%. The Company's actual results for 2024 were total revenue of \$52.5 million and adjusted EBITDA margin of 1%. The results did not meet management's expectations at the beginning of the year. Revenue and adjusted EBITDA achievement for the year was within the range of the revised expectations communicated on July 1, 2024.

EXPECTATIONS FOR 2025

Recently there has been a shift in the liquid cooling market toward more affordable gaming PC's, which in turn increases the demand for cheaper liquid cooling options. This shift has impeded revenue growth in the Liquid Cooling segment, as Asetek has historically focused on the premium market. In 2025, the Company is expanding its product range to include products for the mid-range market, aiming to capture a broader consumer base in an increasingly competitive environment. As a result of these market dynamics, the Company expects revenue for 2025 at the Group level to be in the range of \$52-58 million, with an adjusted EBITDA margin of 3–5%. The Group revenue outlook is derived from expected revenue in the Liquid Cooling segment in the range of \$40 to \$43 million, and in the SimSports segment \$12 to \$15 million. For the full fiscal year 2025, the Liquid Cooling segment is expected to achieve a gross margin in the range of 40-45%, while the SimSports segment is expected to reach a gross margin of 30–35%.

The potential impact of the geopolitical situation and U.S. import tariffs remains uncertain and will depend on various factors beyond the Company's control, as well as the Company's ability to mitigate any potential effects.

CORPORATE GOVERNANCE

The objective of corporate governance is to ensure that Asetek is managed as efficiently as possible in order to create shareholder value. This is achieved through a clear division of responsibilities between the Annual General Meeting, the Board and the executive management, as well as through clear regulations and transparent processes.

Framework for corporate governance

In this process, Asetek uses the corporate governance recommendations from Nasdaq Copenhagen as an important source of inspiration. The recommendations can be found at: https://www. nasdaqcom/market-regulation/nordic/copenhagen

The Board of Directors is fundamentally in full agreement with Danish Committee on Corporate Governance recommendations for good company governance. Asetek endeavors to follow the relevant recommendations for the Company, which support the business and ensure value for the Company's stakeholders. The statutory report on Corporate Governance, cf. section 107b of the Danish Financial Statements Act, is available on the Company's website: https://ir.asetek.com/Corporate-Governance-Statement-2024/

Communication between the Company and its shareholders

The communication between Asetek and shareholders primarily takes place at the Company's Annual General Meeting and via company announcements. Asetek shareholders are encouraged to subscribe to the e-mail service to receive company announcements, interim management statements, interim reports and annual reports as well as other news via e-mail.

The general meeting

The General Meeting has the final authority over the Company. The Board of Directors emphasize that shareholders are given detailed information and an adequate basis for the decisions to be made by the General Meeting.

The General Meeting elects the Board of Directors, which currently consists of five members. The board members are elected for one year at a time with the option for re-election.

Amendment of Articles of Association

Unless otherwise required by the Danish Companies Act, resolutions to amend the Articles of Association must be approved by at least 2/3 of the votes cast as well as at least 2/3 of the voting share capital represented at the General Meeting.

Board responsibilities

The Board of Directors' main tasks include participating in, developing, and adopting the Company's strategy, performing the relevant control functions and serving as an advisory body for the executive management. The Board reviews and adopts the Company's plans and budgets. Items of major strategic or financial importance for the Company are items processed by the Board. The Board is responsible for hiring the CEO and defining his or her work instructions as well as setting of his or her compensation. The Board periodically reviews the Company's policies and procedures to ensure that the Group is managed in accordance with good corporate governance principles, upholding high ethics.

Financial reporting

The Board of Directors receives regular financial reports on the Company's business and financial status.

Notification of meetings and discussion of items

The Board schedules regular meetings each year. Ordinarily, the Board meets eight to ten times a year, of which four are quarterly update teleconferences. The meetings are typically conducted at either the facility in Aalborg, Denmark or via web based conferencing. Additional meetings may be convened on an ad hoc basis.

All Board members receive regular information about the Company's operational and financial progress in advance of the scheduled Board meetings.

The Board members also regularly receive operations reports and participate in strategy reviews. The Company's business plan, strategy and risks are regularly reviewed and evaluated by the Board. The Board Members are free to consult the Company's senior executives as needed.

Board of Directors and the management, however, it Danish Recommendation for Corporate Governance

	2024	2023
Participation:
Complies with recommendations	38	38
Explanation provided	2	2

Ordinarily, the Chairman of the Board proposes the agenda for each Board meeting. Besides the Board Members, Board meetings are attended by the Executive Board.

Other participants are summoned as needed. The Board approves decisions of particular importance to the Company including the strategies and strategic plans, the approval of significant investments, and the approval of business acquisitions and disposals.

Conflicts of interest

In a situation involving a member of the Board personally, this member will exclude him or herself from the discussions and voting on the issue.

Use of Committees

Currently, the Company has a Nomination Committee, an Audit Committee and a Compensation Committee.

// The Nomination Committee is elected directly by the General Meeting. The Committee consists of three members and must be independent from the is recommended that the chairman of the Board of Directors is a member. The tasks include proposing candidates for the Board of Directors, propose remuneration for the Board of Directors as well as perform the annual assessment of the Board of Directors. Members: Ib Sønderby (chairman), Claus Berner Møller and René Svendsen-Tune.

Nomination committee meetings

Meetings held during the year: 3

Participation:
Ib Sønderby (chair) (independent)	100%
Claus Berner Møller (independent)	100%
René Svendsen-Tune	100%

// The Audit Committee is elected among the members of the Board of Directors and has responsibilities related to financial reporting, the independent auditor, internal reporting and risk management, including cybersecurity risks. The Committee consists of at least two shareholder elected Board members. Members: Anja Monrad (chair), Erik Damsgaard.

// The Compensation Committee has responsibilities related to developing proposals for the applicable remuneration policy and remuneration of the Management Board. Members: Jukka Pertola (chair) and René Svendsen-Tune.

BOARD OF DIRECTORS

Name	Elected	Independent	Share holdings	Board meetings	Compensation committee	Audit committee
René Svendsen-Tune	2023	Yes	241,842	17/17	5/5	–
Erik Damsgaard	2019	Yes	145,267	16/17	–	4/4
Jukka Pertola	2019	Yes	164,171	15/17	5/5	–
Anja Monrad1	2024	Yes	50,000	12/13	–	2/2

1) Joined board April 30, 2024

The Board's self-evaluation

The Board's composition, competencies, working methods and interaction are discussed on an ongoing basis and evaluated formally on an annual basis. In this connection, the Board also evaluates its efforts in terms of corporate governance.

The composition of the Board is considered appropriate in terms of professional experience and relevant special competences to perform the tasks of the Board of Directors. The Board of Directors continuously assesses whether the competencies and expertise of members need to be updated. All of the members are independent persons, and none of the Board members participates in the day-to-day operation of the Company. At the 2023 Ordinary General Meeting on April 30, 2024, Mr. René Svendsen-Tune was re-elected to the Board, receiving 66% of the votes cast. Mr. Svendsen-Tune was re-elected Chairman of the Board by the Board of Directors on April 30, 2024.

Risk management

Refer to the Risk Management section of the Management Report as well as Note 3 of the consolidated financial statements.

Internal audit

The need for an internal audit function is considered regularly by the Audit Committee. However, due to the size of the Company and the established control activities, the Audit Committee so far considers it unnecessary to establish an independent internal executive audit board.

As part of risk management, Asetek has a whistle-blower function for expedient and confidential notification of possible or suspected wrongdoing.