25923170 2022-01-01 2022-12-31 25923170 2022-01-01 2022-12-31 0 25923170 2022-01-01 2022-12-31 1 25923170 2022-01-01 2022-12-31 0 25923170 2022-01-01 2022-12-31 1 25923170 2021-01-01 2021-12-31 25923170 2022-12-31 25923170 2021-12-31 25923170 2022-01-01 25923170 2021-01-01 25923170 2022-01-01 2022-12-31 0 25923170 2022-01-01 2022-12-31 1 iso4217:DKK xbrli:pure 2022-01-01 2022-12-31 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management’s Statement</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Executive Board and the Board of Directors have today discussed and approved the Annual Report of SteelSeries ApS and for the Company for 2022.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Annual Report has been prepared in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">In our opinion the Company’s financial statements give a true and fair view of the Company’s assets, liabilities and financial position on 31 December 2022 and of the results of the Company’s operations and cash flows for the financial year 2022.</td></tr><tr><td colspan="1">Further, in our opinion the Management review includes a fair review of the development in the Company’s operations and financial matters, of the result for the year, and of the Company’s financial position, as well as describing the significant risks and uncertainties affecting the Company.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the Annual General Meeting approve the Annual Report.</td></tr></table> Copenhagen 2023-07-05 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent Auditor’s Report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2022, and of the results of the Company’s operations and cash flows for the financial year 1 January - 31 December 2022 in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.</td></tr><tr><td colspan="1">We have audited the Financial Statements of SteelSeries ApS for the financial year 1 January - 31 December 2022, which comprise income statement and statement of comprehensive income, balance sheet, statement of cash flows, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”).</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for Opinion</td></tr><tr><td colspan="1">We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.</td></tr><tr><td colspan="1">Statement on Management’s Review</td></tr><tr><td colspan="1">Management is responsible for Management’s Review.</td></tr><tr><td colspan="1">Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management’s Responsibilities for the Financial Statements</td></tr><tr><td colspan="1">Management is responsible for the preparation of Financial Statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor’s Responsibilities for the Audit of the Financial Statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also</td></tr><tr><td colspan="1">Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.</td></tr><tr><td colspan="1">Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.</td></tr><tr><td colspan="1">Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.</td></tr><tr><td colspan="1">Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.</td></tr><tr><td colspan="1">We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.</td></tr></table> Hellerup 2023-07-05 SteelSeries ApS Havneholmen 8, 1. DK-2450 Copenhagen SV 25923170 2001-02-21 Copenhagen 2023-07-05 Lars Stoltze <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management’s Review</td></tr><tr><td colspan="1">Principal activities of the company</td></tr><tr><td colspan="1">SteelSeries is a leader in gaming peripherals focused on quality, innovation, and functionality. The company was founded in Denmark in 2001 and is currently one of the world's leading global gaming brands - ideally positioned in the premium part of the market.</td></tr><tr><td colspan="1">SteelSeries has built a comprehensive platform for gamers that brings together an ecosystem of leading gaming peripherals and software services. SteelSeries’ gaming peripherals include Arctis, the world’s leading premium gaming audio line, as well as keyboards, mice, controllers, and gaming accessories. The company’s free software suite included with SteelSeries GG brings advanced features such as a unique in-game video capture application, as well as SteelSeries Engine which seamlessly manages all hardware customizations and enhances the gaming experience for millions of gamers.</td></tr><tr><td colspan="1">The company’s products are sold through retail, online retail, strategic distribution, directly to consumers and our software is integrated in computers, headsets, and other peripherals.</td></tr><tr><td colspan="1">The company operates on a global scale with offices in Copenhagen, Chicago, Taipei, Lille and Singapore. Products are manufactured in China, Taiwan, Vietnam, Thailand, Myanmar and the USA.</td></tr><tr><td colspan="1">SteelSeries strives to run a responsible business respectful of its employees, society and the environment. The company is mindful of the manufacturing impact of its products and work to minimize the impact through smart design and supplier choices.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">This report also serves as the statutory statement on corporate responsibility in accordance with section 99a, 99b and 99d of the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Subsequent events</td></tr><tr><td colspan="1">No events have occurred after the balance sheet date.</td></tr><tr><td colspan="1">Target and expectations for next year</td></tr><tr><td colspan="1">SteelSeries expects 2023 revenue to be largely in line with last year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Operating and financial risks</td></tr><tr><td colspan="1">SteelSeries is exposed to currency fluctuations as much of the business is conducted internationally. The general policy is to minimize the currency exposure through natural matching of in- and out-flows to mitigate the impact of exchange rate fluctuations on earnings and cash flow, thereby increasing the predictability of the financial results. Although, there is, to some extent, a natural currency hedging as a large part of the cost base is in US Dollars (USD), cash flows and equity will be affected by exchange rate changes, especially against the USD.</td></tr><tr><td colspan="1">SteelSeries’ FX risk is managed as part of the GN Group’s overall FX risk. All hedging is conducted at the GN Group level. GN has hedged a substantial part of the expected net EBITA in foreign currencies to secure the EBITA contribution of the material trading currencies for the next 12 months across the GN Group.</td></tr><tr><td colspan="1">SteelSeries externally insures a significant part of its trade receivables to counter potential losses caused by bad debtors’ inability to pay. Despite this, and the efficient management of credit, sales on credit still involve an inherent business risk.</td></tr><tr><td colspan="1">Inflationary pressures and general economic uncertainty decrease households’ discretionary spending. This may result in declining demand for SteelSeries products, or temporarily lower than expected growth. The introduction of successful new products increases the Company’s ability to increase market share.</td></tr><tr><td colspan="1">SteelSeries supply chains remain heavily dependent on availability of components and manufacturing capacity in China and Asia. Escalating local and geopolitical instability and deteriorating trade relations may impact key suppliers. The increased global pressure on product manufacturing and international transportation may also impact our ability to operate the business efficiently, with smooth and secure product deliverables, at the same low-cost levels previously experienced. Integration of SteelSeries in GN Audio’s supply chain function is progressing as planned. These supply chain teams have undertaken several resilience measures within sourcing of components, assembly of products and transportation, and will continue long-term global sourcing and production diversification efforts in line with the industry in general.</td></tr><tr><td colspan="1">SteelSeries operates in a highly competitive environment, and it could lose market share and the demand of its products could decline. It is part of the Management’s ongoing responsibility to assess and address the current and future competitive situation as well as the trends in the global gaming market.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Sustainability – ESG Report</td></tr><tr><td colspan="1">GN’s 2022 Sustainability - ESG report (available for download here: www.gn.com) provides a full over-view of our progress across all areas. The 2022 Sustainability – ESG report forms part of the 2022 Annual Report for GN Store Nord A/S and, thus, in combination constitutes GN’s corporate responsibility report according to Sections 99a and 99d in the Danish Financial Statements Act, and also includes GN’s EU Taxonomy Regulation disclosure.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Corporate Governance</td></tr><tr><td colspan="1">Corporate governance refers to the way a company is managed and controlled through ownership, management structure, incentive schemes, etc. SteelSeries strives to build trusted relationships with customers, shareholders, suppliers, employees, and the community. We also aim for a high degree of transparency and active ownership, including sharing information and engaging in a regular dialogue with all our stakeholders.</td></tr><tr><td colspan="1">Please consult the annual report for our ultimate parent company GN Store Nord A/S to find the complete description of the Corporate governance a www.gn.com/Investor/Financial-reports.</td></tr><tr><td colspan="1">On its website, GN provides a statutory report on corporate governance, including an explanation of how GN, including SteelSeries, complies with each recommendation (www.gn.com/corporategovernance2022). This overview, as well as the risk management and internal control systems related to financial reporting described in the risk management section in this report, form the statutory report on corporate governance that is required under section 107b of the Danish Financial Statements Act. It also forms the statutory report on diversity statement required under section 99b of the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Gender and Diversity, equality and inclusion</td></tr><tr><td colspan="1">SteelSeries finds that tolerance and respect are fundamental values necessary to achieve the best working environment. At SteelSeries, all employees are appreciated for their skills, experience and individual points of view regardless of nationality, skin color, gender, age, sexual orientation, language, religion, political views or disabilities. We are committed to creating and maintaining a workplace that welcomes the exchange of experience, attitudes, and views which we consider necessary for our development.</td></tr><tr><td colspan="1">The SteelSeries ApS Board of Directors consists of two male representatives. The leadership team consists of two females and eleven males. Diversity in Management is a key priority for us as we believe it helps create a healthy working environment. We are working to achieve a more equal gender balance at all levels in the company by ways of talent development opportunities, promotions and new recruitments, aligned with our ultimate parent company GN Store Nord A/S.</td></tr></table> 2275 1595 622 252 16 117 -326 200 77 176 196 -69 4 -73 -73 0 0 -73 133 75 932 -91 -96 176 196 -11 -1054 105 19 -77 0 77 -1100 1025 1 -2115 1089 -11 0 Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Cortex Park 3 5230 Odense M 2021-01-01 2021-12-31 Revisionspåtegning Grundlag for konklusion Konklusion 362 Mian Ehtisham Rabbani Lars Pries Stoltze Søren Jelert Mian Ehtisham Rabbani 2529 1615 392 195 10 38 280 0 2 67 91 258 51 207 207 0 0 207 49 0 81 -212 -4 67 91 34 -19 340 26 11 0 -11 -396 -15 -3 -248 265 -131 0 1447 20 434 119 142 31 1 2 81 1 2275 1243 548 25 7 8 15 76 1922 4197 0 1694 1694 133 1 133 0 314 1777 1 7 0 272 2370 4197 1447 22 464 135 105 27 1 3 81 1 2286 385 432 46 13 13 36 86 1011 3297 0 1647 1647 124 2 125 1025 276 2 1 6 0 214 1525 3297 86 217 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Søren Ørjan Jensen State Authorised Public Accountant mne33226 Philip Kjær State Authorised Public Accountant mne47826 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab