MA NAGEMENT REPORT - P ERFORM AN CE AN D OUTLOOK
15
EXPECTATIONS FOR 2022
in 2021 was in line with original projections from 2020,
shortages of semiconductor chips, shipping cost and
but income earned did not meet original expectations,
capacity variances, pandemic lockdowns, general
capital of $20.6 million and non-current liabilities of $1.5
In 2022, Asetek will continue to invest in and launch
principally due to challenges brought upon by the COV-
geo-political tensions as well as an overall expectation
million. Since 2016, the Company has generated positive
innovative new high-performance liquid coolers for
ID-19 pandemic, the continuing global chip shortage and
that the business climate will normalize over the course of
operating cash flows and operating income. From 2013
gamers and enthusiasts. The Company plans to invest
disruptions in the global supply chain.
the year. Operating income is projected to be between -$1
to 2016, Asetek financed operations principally through
in the development of its new SimSports offerings for
offerings of common shares on the Oslo Stock Exchange.
the foreseeable future with the goal of regular launches
LIQUIDITY AND FINANCING As of December 31, 2021, the Company has working
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 capital resources are sufficient to fund operating activities in the foreseeable future, based on financial forecasts. To the extent necessary to fund expansion or other liquidity
of new SimSports products. Consistent with prior years, Asetek will continue to focus its resources on the Gaming and Enthusiast market, growing market share through existing and new OEMs, and building the Asetek brand.
Management has communicated a growth target that revenue will increase by an average of approximately 15% per annum over the next five years. In some years growth may exceed the average, and in other years it may be lower.
In conjunction with efforts to build its SimSports business,
Considering the volatile global situation, revenue growth
Asetek plans to enhance its direct sales channels.
for 2022 is expected to be in the range of -5% to +15%
needs, management will consider offerings of debt, eq-
During 2021, in order to maximize future profitability of its
uity, or a combination thereof, depending on the cost of
data center business, the Company announced that it is
capital and the status of financial markets at that time.
exiting the High-Performance Computing (HPC) niche.
and +$5 million in 2022, reflecting the above uncertainties.
compared with 2021, considering assumptions such as
In 2022, Asetek plans to prioritize the general data center market and support legislation increasing adoption of the Company’s sustainable solutions, capitalizing on its liquid cooling technology and long-term investments in the business segment.Though Asetek is exiting the HPC niche, it is maintaining its long-term dedication and exposure to sustainable data centers. As a result of this change, Management expects that data center revenue will not be significant in 2022 and therefore the Company will stop reporting on the data center segment. The Company's consolidated annual results for 2021 met Management's expectations that were communicated in the Q3 2021 Report. When comparing to projections communicated in the 2020 Annual Report, the 2021 annual results partially met expectations. Revenue achieved P E R FO R M AN C E - P R E C IS IO N - PAS S IO N
