The outdoor unit extracts heat from external air, even when it feels cold outside. That heat is upgraded and used to feed a wet heating system such as radiators or underfloor heating.
ASHP explainer
What is an air source heat pump?
An air source heat pump takes heat from outside air and upgrades it for space heating and, in many systems, hot water. The real question is not just what it is. It is whether the property, emitters, and survey assumptions suit the route properly.