ANNUALREPORTPage1

ANNUALREPORT2024

Asetekisadeveloperandmanufacturerofhigh-qualitygaminghardware.Foundedin2000,AsetekestabIisheditsinnovativepositionastheIeadingOEMdeveIoperandproduceroftheaII–in-oneliquidcoolerformajorPC&Enthusiastgamingbrands.

In2021,Asetekintroduceditslineofproductsfornextlevel

immersiveSimSportsgamingexperiences.Asetekisheadquar-

teredinDenmarkandhasoperationsinChinaandMaIaysiawithatotalof114employees.In2024Asetekrecordedrevenueof

$52.5million.

AsetekA/S

Visitingaddress:SkjoIdet20

DK-9230SvenstrupJDenmark

EmaiI:investor.reIations@

CVRnumber:34880522

AnnuaIreportforthefinanciaIyear1Januaryto31December2024.ThisannuaIreportisapprovedbytheBoardofDirectorsasofMarch7,2025.TheBoardwiIIsubmitthisreportforapprovaIattheAnnuaIGeneraIMeetingonApriI28,2025.ThisannuaIreportcontainsprospectiveinformationbasedonAsetek’scurrentexpectations.Thisinformationisbynatureuncertainandassociatedwithrisk.EvenifcompanymanagementconsidersexpectationsbasedonsuchprospectiveinformationtobereasonabIe,noguaranteecanbegiventhattheseexpectationswiIIprovetobecor-

rect.ConsequentIy,actuaIfutureresuItsmayvarysignificantIycomparedwithwhatissetoutintheprospectiveinformation,forreasonsincIudingchangedconditionsinrespectoftheeconomy,marketandcompetition,changesinIegaIrequirementsandotherpoIiticaImeasures,exchangeratevariationsandotherfactors.Readmoreabouttherisksinthechapteron(Riskmanagement’onpages30一33andinnote3onpage46(Riskmanagementanddebt’inthefinanciaIstatements.

XXXXXANNUALREPORT2023/Page3

CONTENT

Asetekinbrief4

2024inbrief6

CommentsfromCEO7

Asetekasaninvestment9

Strategicframework10

Businessmodel11

Businesssegments13

Liquidcooling14

SimSports16

Shareandshareholders19

Managementreport23

Corporategovernance25

Riskmanagement30

Corporatesocialresponsibility33

Fiveyearsummary34

Consolidatedstatementofcomprehensiveincome36

Consolidatedbalancesheet37

Consolidatedstatementofchangesinequity38

Consolidatedcashflowstatement39

Notes40

Comprehensiveincomestatement,parentcompany63

Balancesheet,parentcompany64

Statementofchangesinequity,parentcompany65

Statementofcashflows,parentcompany66

Notes,parentcompany67

Managementstatement72

Independentauditor’sreports73

Definitionsofratiosandmetrics79

ASETEKINBRIEFANNUALREPORT2024/Page4

FOUNDEDONINNOVATION.DRIVENBYEXCELLENCE

Asetekhasbeenaninnovativeforceinthegloballiquidcoolingmanufacturingindustryformorethan

25years.In2021weintroducedproductsforSimSportsgaming.AsetekisheadquarteredinDenmarkandhasoperationsinChinaandTaiwanwithatotalof114employees.TheAsetekshareislistedonNasdaq

Copenhagen.In2024thecompanyrecordedrevenueof52.5millionUSD.

Whoweare

Weareahigh-techcompanywithalonghistoryinmechatronicinnovation,focusingongaminghardware.

SinceourfoundationwehavedisruptedthePCcoolingmarket,settingnewstandardsforperformanceandefficiency.In2021,wecontinuedtoleverageourextensivecapabilitieswithsoftware,hardwareandmechanicsandenteredintotheworldofsimracingasAsetekSimSports?.WeareadiverseandagileorganizationlocatedclosetosomekeyelectronicmanufacturinghubsinSouth-EastAsia.

Whatwedo

Asetekisadeveloperandmanufacturerofhigh-qualitygaminghardware.Since2000,wedesign,manufac-ture,andsellhigh-qualityliquidcoolingsolutionstomostmajorPCandEnthusiastgamingbrands.In2021,weintroducedourlineofproductsfornext-levelimmersiveSimSportsgamingexperiences,offeringeverysimracerintheworldthepossibilitytopushlimitsandredefinewhat’spossible.

Revenueperyear,$million

79.8

76.3

52.5

50.6

2021202220232024

REVENUE2024

$52.5

million

Whywedoit

Withourmarket-leadingandhigh-qualityproductofferingourgoalistomeetourclients′requirementsforperformance,designandlongerproductlifecycles.Ourproductdevelopmentcentersaroundourcustomers’needsandreflectaninnovativeengineeringapproachcombinedwithsuperiorperformance.TheAsetek

brandnamehasbecomesynonymouswithhighproductqualityinallcategories,whichisconfirmedbygreatreviewsandfeedbackfromgamersandhardwareenthusiastsaroundtheworld.Weareinbusinesstopushlimitsandredefinewhat’spossible.

“Asetekisahigh-techcompany

withalonghistoryinmechatronicinnovation,focusingongaming

hardware

15.8%

ofrevenueinvested

inresearchand

developmentin2024

GROSSPROFIT2024

$21.9

million

ASETEKINBRIEFANNUALREPORT2024/Page5

KEYCONCEPTSFORUNDERSTANDINGASETEK

CUSTOMERS–aglobalcustomerbase

Wedesign)manufacture)andseIIhigh–performancegaminghardwarethatdeIiversnext–IeveIimmersivegamingexperiences.Ourproductspowersome

oftheworId’sIeadingPCandenthusiastgaming

brands)incIudingthreeofthefiveIargestPCman-ufacturers.Since2021)wehavebeenpushingtheboundariesofsimracing)offeringeverysimracer

theopportunitytoredefinewhat’spossibIewithourcutting–edgeSimSportsproductIines.

REACH–well-balancedandglobal

WehaveaIongstandingIocaIpresenceinsomekeyeIectronicmanufacturinghubsinSouth–EastAsiaandourheadquarterisinAaIborg)northJutIand)Denmark.WehaveagIobaIpIatformwithasoIidsuppIychaincreatingIong–termvaIueforaIIstake-hoIders.

PEOPLE–aninternationalorganization

WebeIievethatadiverseworkforceandanincIusiveworkpIaceisaprerequisiteforstayingcompetitive)nowandinthefuture.OurhighIyskiIIedempIoyeesareaIIsharingthecommonpurposeofchaIIengingindustrystandardsdrivenbyinnovationandopera-tionaIexceIIence.

INNOVATION–weareahigh-techcompany

AsetekisadeveIoperandmanufacturerof

high–quaIitygaminghardware.OurjourneybeganaImost25yearsagowhenwedisruptedthePCcooI-ingmarketwithourgroundbreakingaII–in–oneIiquidcooIer)settingnewstandardsforperformanceandefficiency.In2021)wecontinuedtoIeverageour

extensivecapabiIitieswithsoftware)hardwareandmechanicsandenteredintotheworIdofsimracingasAsetekSimSports?.OurgoaIistotransformthesimracingscene)pushingIimitsandredefining

what’spossibIe.

HISTORY–foundedoninnovation

OurhistoryisrootedininnovationthatsoIveda

keychaIIengeofperformanceIimitationscausedbycomputerprocessorsrunninghot.ThisinnovationisthefoundationthattookAsetektoaworId–IeadingmarketpositionwithinIiquidcooIing.Since2021weareonamissiontobecomemarket–Ieaderinthe

rapidIygrowingmarketforsimhardware.

2024INBRIEFANNUALREPORT2024/Page6

KEYMILESTONESANDEVENTS2024

DespitestronggrowthintheSimSportssegment,therelativelylargerLiquidCoolingsegment

experienceddecliningrevenuein2024.Duringtheyear,AsetekalsodelisteditssharesfromtheOsloStockExchangeandisnowsolelylistedonNasdaqCopenhagen.Theyearconcludedwithadecisionofacapitalincrease,enablingcontinuedexpan-

Revenueperquarter,$million

15.4

12.712,2

12.2

Q1Q2Q3Q4

sionintheSimSportssegment.

AdjustedEBITDAperquarter,$million

0,4

0.2

0.0

-0.5

Q1Q2Q3Q4

45

NewLiquidCoolingproductslaunchedduring2024

InMarch,Asetek’ssharewasdeIistedfromtheOsIoStockExchangeandhassincebeenIistedexcIusiveIyonNasdaqCopenhagen.

InOctober,Asetekenteredinto

alicenseagreementwithXbox.

TheDesignedforXboxlicense

agreementenablesAsetekto

expandintotheglobalconsole

marketwithexistingandfuture

simracingproducts,making

thecompany’sacclaimedsim

racingproductsavailableto

millionsofgamersworldwide.

InSeptember,thenewheadquartersandR&D

centerinSvenstrup)nearAaIborg)werecompIeted.

21

NewSimSportsproductslaunchedduring2024

InOctober,AsetekappointedMajaSand–GrimnitzasVPBrandandDigitaIandHenrikLindskou–Mour-itsenasVPGIobaISaIes)withtheaimofstrength-eningthecompany’scommerciaIfocuswithinitsIeadershipteam.

InDecember,itwasannouncedthat219)925)366newsharesweresubscribedforintherightsissueatasubscriptionpriceofDKK0.40pershare)corre-spondingtogrossproceedsofDKK88miIIion.

COMMENTSFROMCEOANNUALREPORT2024/Page7

ATURNAROUNDYEAR

Lookingback,2024wasayearofsignificantchange–challengingattimes,butultimatelyneces-sarytostrengthenourfoundationforthefuture.Wetookdecisivestepstosecurethelong-termgrowthanddevelopmentofourbusiness.

Justafewweeksintothenewyear,Asetekcelebrat-edits25-yearanniversary.Itisremarkabletothinkthatanideaconceivedinauniversitydormroom

andaprototypebuiltinagaragehasledtowherewearetoday.Summingitallup,itcomesdown

tocontinuousinnovationandateamoftalented,dedicatedindividualsworkingtogethertodeliverproductsthatmakeadifferencebyenablingbettergamingexperiences.

WhileAsetekhavedeliveredmaterialgrowthandvaluecreationsinceinception,thepast25

yearshaveincludedbothupsanddowns.Thereisnodenyingthat2024alsowasamixedbag,withanunexpectedandrapidcontractioninourLiquidCoolingsegment,butalsostronggrowthfortheSimSportsbusiness.

AgainstthechallengingLiquidCoolingbackdrop,managementandtheboardtookdecisiveactionstocutcosts,strengthencommercialmanagementandultimatelyraisecapitaltomaintainastrong

foundationfordeliveringfuturevaluecreation

throughourmarketleadingliquidcoolingandsimracingproducts.

Followingtheturnaroundmeasures,2025willlikelybeatransitionalyearbeforegrowthresumesinearnestin2026.Thisissupportedbyongoing

customerdialoguesandourplantoexpandthead-dressablemarketsacrossbothbusinesssegments,includingthelaunchofahigh-qualitysimracing

productlinefortheconsole-basedmassmarket.

“Wetookdecisive

stepstosecurethe

long-termgrowthand

developmentofour

business.”

Platformforprofitablegrowth

Inlate2024,Asetekexecutedarightsissuetoen-

surethecontinuedSimSportsscale-upascashflowfromtheprofitableLiquidCoolingbusinessfellshortofexpectations.Whilewedidnotraisethefulltar-getamount,thenewliquidityprovidesflexibilitytoadjustandoptimizeinvestments.Weareconfidentinourabilitytogrowthesimracingbusiness.Askingshareholdersforcapitalafterachallengingyearwasfarfromideal,andtrustshownbybothexistingandnewshareholdersishighlyappreciated.

Duringtheyear,wealsoreducedourworkforce,primarilyinDenmark,andclosedtheU.S.operation.Itisalwayssadtopartwayswithcolleagues,someofwhomhavebeenwithusformanyyears.Howev-er,thecost-savingswerenecessarytocreateamoreefficientorganizationandstructure.TheU.S.closurealsoreflectsthatalocalpresencehasbecomelessrelevantasourcustomers’keydecision-makersnowprimarilybasedinAsia.

Werecognizethatincreasedglobalgeopoliticalten-sionsarecreatinguncertaintiesregardingnewtariffsandpotentialglobalsupplychaindisturbances.Wearemonitoringthesituationandarepreparedto

addressanyfuturechallengeswithacombinationofmeasures.

InSeptember2024,thenewheadquarters

andR&Dcenterwascompletedafterafour-year

process.Withanewbaseofoperations,stronger

balancesheetandleanerorganization,wehave

establishedastrongplatformfromwhichtoexecuteourlong-termgrowthstrategy.

Liquidcooling–transition,thenprofitablegrowth

ForLiquidCooling,ourlargestsegment,wehave

alwaysemphasizedthechallengesofpredicting

revenue.In2024,thiswasespeciallyevidentaswefacedarapidandunexpecteddecreaseinrevenue.Thiswasduetoacombinationofhighcustomerin-ventoriesandtwoofourlargestcustomersmovingtodualsourcingtostrengthentheirsupplychains.Whilethisisalogicalstep–justaswemaintaindualsourcinginourownsupplychain–itnonethelesshasasignificantshort-termnegativeimpact.

COMMENTSFROMCEOANNUALREPORT2024/Page8

However,therewereaIsopositivedeveIopments.WhenexcIudingthetwoabove–mentionedcustom-ers,aIIourothercustomersgrewyear–over–year.

AIso,attheendof2024,Aseteksecuredanew

customer-oneoftheworId’sIargestPCmanu-

facturers-whichaIsorequiredasecondsource,

thistimetoourbenefit.OutofthefivebiggestPCmanufacturersgIobaIIy,threearenowusingAsetekLiquidCooIingproducts.

In2024,Asetekintroducedthestrategyofcom-pIementingourhigh–endproductswithavaIue–ori-entedofferingtoexpandouraddressabIeIiquid

cooIingmarket.ThisinitiativewiIIgraduaIIygain

tractionfrom2026.Furthermore,weareenhancingthecommerciaIcapabiIitiesoftheorganization,ap-pIyingasharpercommerciaIfocusinaIIaspectsofdecision–makingandintegratingevendeeperwithourcustomers.Aspartofthis,in2024,thecom-

merciaIexpertisewithintheexecutivemanagementteamwasstrengthened.

WehaveacIearpIanforresuminggrowthin

LiquidCooIingfrom2026,ascommunicatedin

connectionwiththerightsissue.For2025,revenue

isexpectedtoremainIargeIyatthesameIeveIas

in2024.ThebusinesswiIIremainprofitabIe,asit

hasbeenformanyyears.AsetekhasatrackrecordofquickIyadaptingtochangingmarketconditionsandwiIIdosoagainthistime.WearethetechnoI-ogyIeaderwithastrongpositioninthepremium

segment,andasIongaswecontinuetoinnovate,Asetek’sproductsandserviceswiIIcontinuetobeindemandbybothnewandexistingcustomers.

SimSports–expandingoursimracinguniverse

ForourSimSportsbusiness,2024wasanother

positiveyearwithmuItipIeproductIaunchesand

strongrevenuegrowth.InIessthanthreeyears,

AsetekhasbecomeapremiumpIayerinthegrowingsimracingmarket,goingfromzeroto$10miIIionofannuaIrevenue.WenowofferseveraIproductIinesdesignedasanopenecosystem,whichhavere-

ceivedhighIypositivefeedbackfromend–usersandreviewers.AdditionaIIy,duringtheyear,weenteredintoanagreementwithXboxtoIaunchproducts

withconsoIesupport.

Nextforus,isthecompIetionandIaunchofaprod-uctIinetargetingthemassgamingmarket,foIIowedbyAsetekproductswithXboxsupport.BotharesettoIaunchinthesecondhaIfof2025,significantIy

expandingtheaddressabIemarketandareexpectedtodrivestrongrevenuegrowthinthecomingyears.

Havingthebestproductsisnotenough.BeyonddeIiveringontheproductroadmap,ourfocusin

2025wiIIbeonattractingtoptaIenttostrengthensaIeschanneIsasweIIasbuiIdinguptheSimSportsbrand.AstrategicpriorityistoensureourproductsarereadiIyavaiIabIeinaIIreIevantchanneIs,wheth-eritisourownwebshop,reseIIersoronpIatformsIikeAmazon.

AswestatedinDecember,weexpectEBITDA

improvementcomparedto2024,butwedonot

anticipatetheSimSportssegmentreachingprofit-abiIityin2025.ThisisaccordingtopIanasAsetekpurposefuIIymoveintherightdirectionbyoptimiz-ingSimSportsinvestmentsandcreatingastrong

pIatformforagrowingprofitabIebusiness.

25yearsofinnovation–withmoretocome

WeareconfidentthatAsetekisgoinginto2025

withastrongerfoundation,andwehave,overtime,deIiveredstronggrowthandbuiItasizeabIegIobaIbusiness.WeaIsoknowthatitdoesnotaIways

moveinstraightline.

AsresuItofourinnovationdriveandfocusonex-ceIIence,farmorethan10miIIionendusersworId-widehaveboughtandusedourproductswhichwehaveconceptuaIized,designed,manufacturedandsoId.Ourinnovativeproducts,bothinIiquidcooIingandsimracing,havewonseveraIgIobaIawards.

Withthatinmind,IwouIdIiketoextendaspe-ciaIthankyoutoaIImycoIIeagues,ourcustomers,oursharehoIders,ourpartnersandsuppIiers.IthasbeenachaIIengingyear,butwenowIookforwardwithconfidencetothenext25years.

AndréS.Eriksen,

FounderandCEO

ASETEKASANINVESTMENTANNUALREPORT2024/Page9

FIVEREASONSTOINVESTINASETEK

Asetekiswellpositionedtocapitalizeontheitscompetitivestrengthsthroughinnovation,operationalexcellenceandaleadingpositionasa

premiumsupplierofhigh-qualitygaminghardware.

1.2.3.4.5.

Largeandgrowingaddressablemarket

Asetekisstrategicallypositionedintheexpandinggamingmarket.Therising

interestingamingisdrivingtheliquidcoolingmarket,ashigh-performance

PChardwaredemandsefficientcoolingsolutions.Simultaneously,thegrowingdemandforhigh-performancegamingsetupsisboostingthesimulationhard-waremarket,asconsumersseekmorerealisticandcompetitivegameplay.ThedemandforliquidcoolingsolutionsistoalargeextentlinkedtothegrowthoftheoverallPCgaminghardwaremarket(which,however,includesgaminglap-tops,whichdonotneedliquidcooling).TheoverallPCgaminghardwaremarketisexpectedtoshowanannualgrowthrateofapproximately5.2%,reaching

$69.0billionby2027.1

1Statista(2024),GamingHardware,GamingPCsandLaptops–Worldwide/

Leveragingaleadingpremiumsegmentposition

Asetekhasaleadingpositioninthe

premiumsegmentofthegaminghard-waremarket.Since2000,wedesign,

manufacture,andsellhigh-qualityliquidcoolingsolutionstomostmajorPCandEnthusiastgamingbrands.In2021,

Asetekexpandeditsbusinessintothe

rapidlygrowingSimSportsmarketfor

racingsimulatorgear.Asetekhasearnedaleadingpositioninthepremiumseg-mentofboththeLiquidCoolingaswellasSimSportsmarket.Theleadingmarketpositioncombinedwithourstrongbrandnameandhigh-qualityproductscanbeleveragedintoincreasingtheaddress-

ablemarket.Thisisaccomplishedby

targetingtheLiquidCoolingmid-marketsegmentandlaunchinganewSimSportsproductlinewithstrongvalueofferingtowardsentry-levelend-users,includingproductswithconsolecompatibility.

Stronginnovationcapabilitysupportingfuturegrowth

Continuousproductdevelopmentis

crucialformaintainingandstrength-

eningcompetitivenessinanindustry

thatischaracterizedbycompetition

andtechnologicalprogress.Asetekis

renownedforbeinganinnovative,high-techandentrepreneurialcompanythatprovidesproductswithveryhighquality.AtAsetek,productdevelopmentcentersaroundcustomers’needsandreflects

aninnovativeengineeringapproach

combinedwithsuperiorperformance.

ThecompanyhastwoR&Dcenters–oneinDenmarkandoneinChina.In2024,

Asetekspent15.8%oftotalrevenue,

orUSD8.3milliononR&D,securing

continuedcompetitivenesstroughfuturelaunchesofworld-classproducts.

ProfitableLiquidCoolingbusiness

providesafoundationforSimSportsgrowthstrategy

Asetekinventedtheall-in-oneliquid

coolerandhasbeensolvingthermal

challengesfor25years.OurbusinesssegmentLiquidCoolinghasoverthe

last10yearsgeneratedtotalrevenuesexceeding$540millionwithanaverageadjustedEBITDAmarginof29%.The

profitableLiquidCoolingoperation

providesafinancialfoundationfor

thegrowthstrategyoftheSimSportsbusiness.Thestrategicfitandsynergiesbetweenthetwosegmentsarevisibleandwillactasadriverforfuturevaluecreation.

StrongSimSportsgrowthpotential

In2024,revenueintheSimSports

segmentincreasedby24%comparedwith2023.Growthin2024wasmainlydrivenbyacombinationofmultiple

newproductsandastrongincreaseinnewend-usersandresellersglobally.

Gamingsimulationisarapidlyexpand-ingsegmentofthegaminghardware

market,andthedemandforgaming

simulationislinkedtothegrowthoftheoverallhardwareaccessoriesmarket.Forthecomingthreeyears,thismarketis

projectedtoshowanannualgrowthrateofapproximately13.7%,reachingUSD115.3billionby2027.1

1Statista(2024),GamingHardware,GamingAcces-sories–Worldwide

OURSTRATEGICFRAMEWORKANNUALREPORT2024/Page10

ASETEK′SAPPROACHTOVALUECREATION

Asetek’sstrategyisbasedonoperationalexcellence,innovativeproductdevelopment,superiorcustomerserviceandexpansionoftheaddressablemarket.Inthatwaywewillsecurelong-termsustainableorganicgrowth.Thegoalistobetheleadingbrandinthemarketsinwhichweoperate.

ThestrategicframeworkatAsetekconsistsofcore

values,goals,strategicfocusareasandoperationalpriorities.Byadheringtoourstrategicframework,Aseteksecuresastrongplatformforlong-term

sustainablegrowth.

Corevalues

ThecorevaluesatAsetek–innovationandexcel-

lence–arerootedinourDNAandhavebeenour

guidelinesfromthestart.Asetekwasfounded25

yearsagowiththeintentionofsolvingproblemsforourcustomers.Sincethen,webelievestayingclosetoourcustomers’problemsalsomeansbeingclosertothesolution.

Goals

Lo