Q4 financial highlights

  · Fourth-quarter revenue of $16.6 million, up 75% vs. Q4 2022
  · Q4 gross margin of 47% compared with 41% in Q4 2022
  · Q4 adjusted EBITDA of $2.2 million, compared with loss of $0.6 million in Q4
2022
  · SimSports revenue of $2.2 million in Q4, compared with $0.2 million in Q4
2022

2023 highlights

  · Second-highest-ever full year Group revenue of $76.3 million, up 51% from
2022
  · Full year adjusted EBITDA of $15.9 million vs. loss of $0.8 million in 2022
  · Broadening addressable Liquid Cooling market with value offering towards low
end of premium segment
  · Full-year 2024 Group revenue growth expected in the range of -5% to 5%
compared with 2023, with adjusted EBITDA projected to be between 12% and 17% of
revenue

Asetek reported fourth-quarter revenue of $16.6 million, an increase of 75% from
the same period of 2022. Revenue for the year amounted to $76.3 million, an
increase of 51% from 2022. The growth in both periods mainly reflects increased
shipments of liquid cooling products.

Gross margin was 47% in the fourth quarter and 45% for 2023, compared with 41%
in each of the same periods of 2022. The gross margin increase reflects a richer
product mix, reduced costs and favorable exchange rates for both periods.

"2023 represented a material rebound for our Liquid Cooling business and
expansion of the SimSports product program to wide acclaim from the sim racing
community. I'm proud of delivering our second-best year ever measured by revenue
and profit, reflecting strong demand for our products," said André Sloth Eriksen
the CEO of Asetek.  "We remain confident of the long-term potential in our
markets, but at the same time we continue to experience low near-term revenue
visibility. However, we are adapting and have aligned our strategic priorities
accordingly, and our focus in 2024 is to execute on these."

Operating income was $1.0 million and adjusted EBITDA was $2.2 million in the
fourth quarter of 2023, compared with an operating loss of $1.9 million and
adjusted EBITDA of negative $0.6 million in the fourth quarter of 2022. The full
year operating income was $9.4 million and adjusted EBITDA was $15.9 million,
compared with operating loss of $5.4 million and adjusted EBITDA of negative
$0.8 million in 2022.

Operating expense of $6.7 million increased compared with the fourth quarter of
2022, principally related to product and supply chain development. Depreciation
and amortization was $1.0 million and share based compensation amounted to $0.1
million. Full year operating expense was $25.3 million, 3% lower than the prior
year. The 2023 operating expense includes $0.8 million of non-recurring charges
related to the dual listing of the Asetek share on Nasdaq Copenhagen in the
second quarter.  During the fourth quarter, the U.S. dollar weakened by 4%
against the Danish krone, resulting in foreign exchange loss of $1.3 million (in
Q4 2022, USD weakened 9%, resulting in a $1.8 million foreign exchange loss).

During 2023, the Company invested $24.9 million in property and equipment,
including development of a new headquarters facility, and $2.6 million in
capitalized costs for the development of new products. The Company paid down the
construction credit line for the new HQ and development center by net $2.9
million during the year.

At December 31, 2023, total assets were $102.7 million ($78.6 million at
December 31, 2022) and total equity was $66.1 million ($42.7 million). In May
2023, the Company issued 71.2 million new common shares in a rights offering,
raising net proceeds of $16.1 million.

Working capital at December 31, was negative $3.2 million (negative $6.3 million
at December 31, 2022) including $9.1 million of cash and cash equivalents ($7.4
million). Included in current liabilities at year-end, was $14.7 million of debt
related to the facilities construction, which was subsequently refinanced in
January 2024 to be due and payable January 1, 2025.

OPERATIONS

In the fourth quarter, the Company shipped 244 thousand sealed loop coolers
compared with 157 thousand in the fourth quarter of 2022. Twenty new products
began shipping in the fourth quarter, including twelve liquid coolers, three of
which feature the new 8th generation cooling technology, and eight SimSports
products. In the first quarter of 2024, ten new liquid cooling products and
various new SimSports accessories are expected to begin shipping.

In January 2024, the Company announced that OEM partner ASUS has introduced its
third generation of ROG STRIX all-in-one CPU coolers featuring Asetek's new
Gen7v2 liquid cooling technology. The new liquid coolers will empower
enthusiasts to boost CPU overclocking capability for extreme performance and
provide gamers advanced stability that is crucial for immersive gaming.

Larger customers have expressed increased demand for Liquid Cooling products
with a lower price point for the Chinese market as well as other value-oriented
markets. In response to this demand, Asetek plans to deploy products tailored
for the lower end of the premium segment. This means a broadening of the
addressable market without compromising the quality that the Asetek brand
represents. The value offering is attached with robust EBITDA margins but gross
margins that are somewhat lower than the historical average.

EXPECTATIONS FOR 2024

The macro-economic environment in the beginning of 2024 is continuing to show
signs of improvement, although the picture is mixed in different regions. Geo
-political tensions are still causing some market volatility and uncertainty,
somewhat dampening discretionary consumer spending. Future revenue visibility
remains low. In the latter part of 2023, strong demand from major OEM customers
reflected their build-up of inventory levels. The higher inventory levels
heading into 2024 are resulting in softer demand for Asetek products, with
indications pointing to more normalized inventory levels and customer demand in
the second half of 2024.

Considering the above factors, revenue growth in 2024 is expected to be in the
range of -5% to 5% compared with 2023. The Group 2024 revenue outlook is derived
from expected revenue development in the Liquid Cooling segment in the range of
-10% to 0%, and for the SimSports segment revenue growth in the range of 40% to
60% compared with 2023. Adjusted EBITDA margin in 2024 for the Group is expected
to be in the range of 12% to 17% of revenue.

Conference call and webcast

CEO André Sloth Eriksen and CFO Peter Dam Madsen will present the Company's
results today at 10:30 CET and invites investors, analysts, and media to join
the presentation. The presentation is expected to last up to one hour, including
Q&A, and can be followed via live webcast or conference call.

Webcast - audio and slide presentation

Please join the results webcast via the following link:
https://events.q4inc.com/attendee/473037799

Conference call - audio only

Please dial in 5-10 minutes prior using the phone numbers:

Denmark  +45 32 74 07 10
USA:     +1 646 307 1963
Germany  +49 6958 996 4217
Norway   +47 57 98 94 30
UK       +44 20 3481 4247

Conference ID: 5624197

The fourth quarter and full year 2023 earnings release and presentation will be
made available online at www.asetek.com and www.newsweb.no, as well as through
news agencies. A recorded version of the presentation will be made available at
www.asetek.com approximately two hours after the presentation has concluded.

Q&A

The conference call lines will be opened for participants to ask question at the
end of the presentation. Questions can also be submitted through the online
webcast during the presentation.

For questions or further information, please contact:

CFO Peter Dam Madsen, +45 2080 7200, email: investor.relations@asetek.com
Head of Investor Relations, Per-Anders Nyman, +45 2566 6869, email:
investor.relations@asetek.com

About Asetek

Asetek (ASTK), a global leader in mechatronic innovation, is a Danish garage-to
-stock-exchange success story. Founded in 2000, Asetek established its
innovative position as the leading OEM developer and producer of the all-in-one
liquid cooler for all 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,
Taiwan and the United States.

This information is subject to the disclosure requirements pursuant to Section 5
-12 of the Norwegian Securities Trading Act.