Slide 1: Fourth quarter and full-year 2016 results
F ourt h quart er and f ul l -year 2016 resul t s F OURTH Q UARTER AND F ULL -Y EAR 2016 R ESULTS Global leader in high-end vacuum valve technology Heinz Kundert, CEO and Andreas Leutenegger, CFO March 31, 2017 1
Slide 2: Agenda
PASSION. PRECISION. PURITY. Agenda F ourt h quart er and f ul l -year 2016 resul t s 1 Highlights Heinz Kundert, CEO 2 Fourth quarter and full-year 2016 financial review Andreas Leutenegger, CFO 3 Strategic drivers and outlook for 2017 Heinz Kundert, CEO 2
Slide 3: Strong Q4 performance supports record 2016 results
PASSION. PRECISION. PURITY. Strong Q4 performance under favorable business conditions supports record 2016 results F ourt h quart er and f ul l -year 2016 resul t s – Strong demand for high-vacuum valves in semiconductors and displays due to technology upgrades Q4 2016 – Year on year Q4 order intake
Slide 4: Key growth trends for VAT confirmed
PASSION. PRECISION. PURITY. Key growth trends for VAT confirmed Semiconductors Displays Solar Industry & Research F ourt h quart er and f ul l -year 2016 resul t s Picture Picture Picture End-market growth trend 2016 vs. 2015 – Transition towards – Transition to OLED – Adaptation of new – Growth in
Slide 5: Strong performance supported by all market segments
PASSION. PRECISION. PURITY. Strong performance supported by all market segments F ourt h quart er and f ul l -year 2016 resul t s VAT Group AG Valves Global Service Industry (78%) (16%) (6%) Segment (% of total net sales) Net sales CHF 508m / +24% CHF 395m / +28% CHF 82m / +17% CHF 31m / -1% Adj. EB
Slide 6: Strategic achievements in 2016
PASSION. PRECISION. PURITY. Strategic achievements in 2016 LEAD DRIVE EXCEL F ourt h quart er and f ul l -year 2016 resul t s – Maintained the technological – Introduction of several new – Ramp-up of manufacturing leadership products capabilities Malaysia – Strengthened customer – Service business g
Slide 7: Agenda
PASSION. PRECISION. PURITY. Agenda F ourt h quart er and f ul l -year 2016 resul t s 1 Highlights Heinz Kundert, CEO 2 Fourth quarter and full-year 2016 review Andreas Leutenegger, CFO 3 Strategic drivers and outlook for 2017 Heinz Kundert, CEO 7
Slide 8: Full-year 2016 – Group key figures
PASSION. PRECISION. PURITY. Full-year 2016 – Group key figures F ourt h quart er and f ul l -year 2016 resul t s Third party net sales Adj. EBITDA Adj. EBITDA margin CHF 508 m CHF 158 m 31.1% +24% +25% +30pbs Free cash flow margin Net debt/EBITDA Free cash flow 25% 0.9x CHF 128m Free cash flow Divid
Slide 9: Order intake and backlog increasing
PASSION. PRECISION. PURITY. Order intake and backlog increasing in CHF million F ourt h quart er and f ul l -year 2016 resul t s 562 +31% 428 168 +65% 122 102 +70% 72 2015 2016 Q4 order intake Full-year order intake Year-end order backlog 9
Slide 10: Increase in sales, adj. EBITDA and profitability
PASSION. PRECISION. PURITY. Increase in sales, adj. EBITDA and profitability in CHF million F ourt h quart er and f ul l -year 2016 resul t s 31.1% adj. EBITDA margin 30.8% 508 +24% 411 143 158 +46% +25% 127 98 2015 2016 Q4 net sales Full-year net sales Full-year adj. EBITDA 10
Slide 11: Full-Year 2016 net sales
PASSION. PRECISION. PURITY. Full-Year 2016 net sales CHF 508 million F ourt h quart er and f ul l -year 2016 resul t s Net sales by market segment Net sales by region 78% Valves 48% Asia 35% North America 16% Global Service 6% Industry 17% EMEA 11
Slide 12: Valves – 78% of net sales
PASSION. PRECISION. PURITY. Valves – 78% of net sales in CHF million Q4 2016 Q4 2015 Change Semiconductors: F ourt h quart er and f ul l -year 2016 resul t s Order intake 139.7 79.7 75.3% – High demand for memory storage devices such Net sales 116.4 75.3 54.6% as DRAM and NAND solid-state flash memo
Slide 13: Global Service – 16% of net sales
PASSION. PRECISION. PURITY. Global Service – 16% of net sales in CHF million Q4 2016 Q4 2015 Change Growth in semi related equipment spurs sales F ourt h quart er and f ul l -year 2016 resul t s Order intake 20.9 15.6 34.0% growth Net sales 20.4 15.1 35.1% – Expansion of VAT’s global service activit
Slide 14: Industry – 6% of net sales
PASSION. PRECISION. PURITY. Industry – 6% of net sales in CHF million Q4 2016 Q4 2015 Change Investments and business model adjustments F ourt h quart er and f ul l -year 2016 resul t s Order intake 7.5 6.7 11.9% made for future growth Net sales 5.9 7.0 -15.7% – Net sales flat year-on-year due to hi
Slide 15: De-leveraging impact partly offset by non-tax deductibility of IPO costs
PASSION. PRECISION. PURITY. De-leveraging impact partly offset by non-tax deductibility of certain IPO related costs in CHF million 2016 2015 Change F ourt h quart er and f ul l -year 2016 resul t s EBIT 118.3 89.4 32.3% Financial result -30.4 -68.9 -55.9% EBT 87.9 20.6 327.5% Income tax expenses -2
Slide 16: Growth in free cash flow supported by operating performance
PASSION. PRECISION. PURITY. Growth in free cash flow supported by operating performance and working capital discipline Free cash flow Free cash flow conversion F ourt h quart er and f ul l -year 2016 resul t s 146 (18) 25% +54% 128 88% +21% 118 (12) 86% 106 2015 2016 2015 2016 Free Cash Flow Cash fl
Slide 17: Net debt target of 1x EBITDA reached
PASSION. PRECISION. PURITY. Net debt1 target of 1x EBITDA reached Gross debt Net debt F ourt h quart er and f ul l -year 2016 resul t s 1.9x 405 Net debt / EBITDA 0.9x 3042 224 1973 134 December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 Credit facility Shareholder loan Net debt
Slide 18: Initiatives to mitigate the foreign exchange exposure
PASSION. PRECISION. PURITY. Initiatives to mitigate the foreign exchange exposure F ourt h quart er and f ul l -year 2016 resul t s FX Status on FX exposure initiatives – Ongoing initiative to increase global sourcing (mainly Asia and Eastern Europe) USD – Nomination of debt in USD – FX hedging of u
Slide 19: VAT's financial mid term guidance
PASSION. PRECISION. PURITY. VAT’s financial mid term guidance Mid term guidance (unchanged from IPO communication) F ourt h quart er and f ul l -year 2016 resul t s – Net sales growth: high single digit at constant FX rates – EBITDA margin target: 33% of sales – Effective tax rate: 18% to 20% of ear
Slide 20: Agenda
PASSION. PRECISION. PURITY. Agenda F ourt h quart er and f ul l -year 2016 resul t s 1 Highlights Heinz Kundert, CEO 2 Fourth quarter and full-year 2016 review Andreas Leutenegger, CFO 3 Strategic drivers and outlook for 2017 Heinz Kundert, CEO 20
Slide 21: Trends in the electronics market
PASSION. PRECISION. PURITY. Trends in the electronics market - Entire supply chain is growing at a CAGR 1 >3% 2016 to 2021 Market Growth Estimated market size 2016 in USD (CAGR) 16-21 F ourt h quart er and f ul l -year 2016 resul t s ~80t2 2-3% Worldwide GDP ~2.0t3 Market for finished devices contai
Slide 22: VAT's addressable market expected to grow at ~5% CAGR
PASSION. PRECISION. PURITY. VATs addressable market – expected to grow at a CAGR of approximately 5% from 2016 to 2021 2015: USD 1.5bn 2016: USD 1.7bn F ourt h quart er and f ul l -year 2016 resul t s 12% 10% 47% 26% 46% 29% 12% 18% Semiconductor Display & Solar Industry & Research Service Semicondu
Slide 23: Market position further strengthened
PASSION. PRECISION. PURITY. Market position further strengthened Market share all industries1 Market share semi & related2 F ourt h quart er and f ul l -year 2016 resul t s Total vacuum valve market size Total vacuum valve market size 2015: USD 804 2015: USD 531m 2016: USD 977m 2016: USD 695m 47% 45
Slide 24: Megatrends which drive growth
PASSION. PRECISION. PURITY. Megatrends which drive growth F ourt h quart er and f ul l -year 2016 resul t s Digitalization, Big Data, IoT, Technological inflections, Industry 4.0, Cloud Computing and 3D NAND, 10/7 nm features, E-mobility etc. capacity expansions China investing heavily to balance In
Slide 25: Consumer devices and platforms drive user generated content
PASSION. PRECISION. PURITY Consumer devices and platforms drive user generated content What happened in an internet minute in 2016 F ourt h quart er and f ul l -year 2016 resul t s Photos shared across Facebook, ~2bn Instagram, Messenger, and WhatsApp Snapchat: 10bn daily global video views Mobile t
Slide 26: Digitalization drives demand
PASSION. PRECISION. PURITY Digitalization drives demand The number of connected devices will exceed 50 bn by 2020 2020 F ourt h quart er and f ul l -year 2016 resul t s 50 50.1B 2019 42.1B 2018 40 2017 34.8B 28.4B 2016 22.2B 30 2015 18.2B 2014 20 14.2B 2013 11.2B 2012 10 1992 8.7B 2003 1M 0.5B 2012
Slide 27: Priorities 2017
PASSION. PRECISION. PURITY. Priorities 2017 F ourt h quart er and f ul l -year 2016 resul t s Trusted partnership Innovation with customers & People & talents suppliers Capacity ramp-up Global sourcing & Asian growth CH & MY supply chain 27
Slide 28: VAT – a success story over years
PASSION. PRECISION. PURITY. VAT – a success story over 50 years F ourt h quart er and f ul l -year 2016 resul t s – Pure play business model focused on mission-critical high-end vacuum valves – Technology leadership and long term, trusted Passion partnerships – Leading market position and high barri
Slide 29: Closing remarks
PASSION. PRECISION. PURITY. Closing remarks F ourt h quart er and f ul l -year 2016 resul t s – 2016 performance bodes well for future growth – Transition to publicly listed company concluded – Well positioned to capture growth opportunity Good starting – Accelerated innovation, trusted customer & s
Slide 30: Q&A Session
F ourt h quart er and f ul l -year 2016 resul t s F OURTH Q UARTER AND F ULL -Y EAR 2016 R ESULTS Q&A Session Heinz Kundert, CEO and Andreas Leutenegger, CFO August 25, 2016 30
Slide 31: Information
PASSION. PRECISION. PURITY. Information F ourt h quart er and f ul l -year 2016 resul t s Investor information Contact information Listing: SIX Swiss Exchange Michel Gerber Currency: CHF Head of Investor Relations & Ticker symbol: VACN Corporate Communications ISIN: CH 031 186490 1 Phone: +41 81 772
Slide 32: Forward looking statements
PASSION. PRECISION. PURITY. Forward looking statements F ourt h quart er and f ul l -year 2016 resul t s Forward-looking statements contained herein are qualified in their entirety as there are certain factors that could cause results to differ materially from those anticipated. Any statements conta