Vat Group Ag · SIX:VACN
Vat — Investor Presentation (December 2024)
47 slides from Vat's investor presentation, December 2024
Slide 1: We change the world with vacuum solutions
VAT — We change the world with vacuum solutions Investor Deck Winter 2024
Slide 2: Table of Contents
Table of Contents VAT Highlights H1 2024 4 Q3 2024 Trading Update 9 Our Focus Areas 2024 ah Outlook 33 Appendix 36 December 2024 VAT | Investor Deck Winter 2024 2
Slide 3: Highlights H1 2024
OT Highlights H1 2024
Slide 4: Orders considerably higher vs. 2023, with sales flat on previous year
Orders considerably higher vs. 2023, with sales flat on previous year Our business segments Delivering outstanding performance (Share of H1 2024 net sales) Valves (81%) Global Service (19%) 450 ay Y ee H1 2024 sales & 7 ; ' in M CHE (1% vs. H1 2023) oe ¢ 26 48 ae : H1 2024 free cash flow Spec-wins i
Slide 5: Highlights H1 2024
Highlights H1 2024 VAT Cyclical recovery continues in semiconductors; however, inflection point for growth not reached yet Order intake up significantly vs. 2023 on overall more optimistic WFE forecast for FY 2024 driven by Al-related technology inflection and recovered fab utilization. ADV orders l
Slide 6: Sales breakdown by markets and regions
Sales breakdown by markets and regions WAT Semiconductor end-markets remain core focus — sales to Asian customers remain strong Sales breakdown by market segment H1 2024 Regional sales breakdown H1 2024 ~80% of VAT’s ~28% of VAT’s Global Sevice sales are ewea sales originate 19% semiconductor 7% fro
Slide 7: Observed market trends 2024 YTD
Observed market trends 2024 YTD WAT End-markets remain constrained, but good basis being established for 2025 ramp in semi Memory: DRAM recovery underway, driven by HBM; NAND slowly recovering Logic: Market slowly recovering as Al is fueling technology inflection (GAA, high NA EUV, 2nm roll-out, HBM
Slide 8: Q3 2024 trading update
QO2 Q3 2024 trading update
Slide 9: Q3 2024 trading update
Q3 2024 trading update VAT Q3 2024 orders of CHF 259 million up 58% versus Q3 2023 as customers’ orders remain at similar ordinary course run- rates as in Q2; Q2 2024 orders were slightly inflated by the anticipated ERP implementation Group net sales decreased to CHF 209 million, flat vs. Q3 2023 an
Slide 10: Our Focus Areas 2024
O03 Our Focus Areas 2024
Slide 11: VAT in a nutshell
VAT in a nutshell VAT USD 1 trillion semi market by 2030 is driving growth, expanding share-of-wallet, backed-up by technology leadership — resulting in outstanding financial performance. | [ Financial Guidance ] [ var Growth Drivers ] [ var Business Model as per CMD 2022 Sales Growth 60-year focus
Slide 12: Vacuum - the science of nothingness
Vacuum - the science of nothingness WAT Our valves are essential components of a modern manufacturing tool =r a Roe A=. ee December 2024 VAT | Investor Deck Winter 2024 12
Slide 13: Challenges for chips solved by VAT
Challenges for chips solved by VAT WAT Challenges for the chip industry... ..mean OEMs rely on VAT New manufacturing technology * Introduction of ALD, EUV for GAA ° Extremely small chip structures requires purity at atomic level Vacuum valves are mission critical to modern chip manufacturing * To ma
Slide 14: Leadership position built on focus and technology
Leadership position built on focus and technolgy WAT VAT is the undisputed vacuum valves market leader - strong market position built on years of customer intimacy and superior product design Market share Semi & related“? 2015 m2016 m2017 =2018 m2019 m2020 m2021 m2022 ™2023 ~70% | ae VAT °&mks) WTEX
Slide 15: Orders and sales through the cycle
Orders and sales through the cycle WAT Order momentum rebounded since Q1 2023 with book-to-bill remaining above 1.0x since Q3 2023 (in CHF million) 500 18x 450 16x 400 14x 350 12x 300 1.0x 250 200 08x 150 0.6x | order intake - Bs zs =. trough 2019 100 0.4% | level 50 0.2x () 0.0x Ql Q2 Q3 Q4 QI Q2 Q
Slide 16: VAT - market drivers
VAT - market drivers VAT Megatrends remain key drivers for VAT’s end-markets Energy and Emissions Population Growth and Aging u (Life Science and Analytical Instruments +6 (Renewable Energy +10%)“ = IC market to double to USD ttr by 2030-32 = Increasing Energy demand (25,000 TWh in 2021 to = Populat
Slide 17: Growth driver - increasing vacuum intensity
Growth driver - increasing vacuum intensity WAT Strong growth of leading-edge semiconductors is cascades down to increasing vacuum content Fastest growth in leading edge/advanced ... capital intensity expected to increase from node to .. driving strong medium-term growth in overall WFE nodes, VAT’s
Slide 18: Growth driver - increasing vacuum intensity (2)
Growth driver - increasing vacuum intensity (2) WAT Vacuum intensity increases with additional content as tool count in fabs. Integrated tools take up less space in a fab, increasing vacuum content per floor space unit. Previous tool setup: Co-located tools (example schematics) New tool setup: integ
Slide 19: Growth driver - node size progression
Growth driver - node size progression WAT Anticipating inflection points in semiconductor technology progression — VAT will be at the forefront ee 2018 2020 2022 2026 2028 2030 2032 2034 2036 FinFET (early 3D Ee structure) oh Gackin (1 fully 3D structure) 9 structures) | | High aspect ratio etch, fa
Slide 20: Growth driver - new fab openings
Growth driver - new fab openings WAT ~100 fabs are coming online in the next 2 to 3 years - to achieve USD 1 trillion semi market by 2030 Ameri fabs 80% leading edge e 5 oe China: 41 fabs »~*e i ae EMEA: 11 fabs fue 70% leading edge Asia (ex-China): 33 fabs 80% leading edge a. / Fab status: 79 — in
Slide 21: Presence where our customers are located
Presence where our customers are located VAT VAT's teams are on the ground in 2 main manufacturing hubs, 2 main innovation hubs and multiple service centers where fabs are located Production - RO Innovation hub for advanced sensors Application Hub US Zurich CH Application Hub KR Innovation hub for *
Slide 22: R&D creates mid-term visibility
R&D creates mid-term visibility WAT VAT’s focus and leadership on vacuum technology demonstrated by our spec-win rate H1 2024 spec-wins continue at high level +17% —s 485 4. a 12023 2023 H1 2024 * Spec-wins have increased 17% y-o-y vs. H1 2023 * 2/8rds of all spec-wins in semi applications including
Slide 23: Semi - Adjacencies
Semi - Adjacencies WAT Continuing on growth path: on track towards 2027 target of CHF 300 million (in CHF million) 120 100 80 60 40 : [J ma fo & | 2019 2020 2021 2022 2023 ™ Motion Comp. Adv. Modules. * Not in competition with customer business * Margin profile of adjacent business in-line with VAT
Slide 24: The universe of ADV
Slide 25: ADV - Our heritage and attractive markets
ADV - Our heritage and attractive markets WAT ADV business is focused on high-end, non-semi applications. Strict business selection allows VAT to deliver growth and higher margin compared to Semi ADV sales growing stably Business selection enhances group growth and margins 1400 25% . 22% Non-semi va
Slide 26: ADV - Applications
ADV - Applications WAT Exemplary core end-markets for ADV demonstrating VAT differentiation and financial performance Research and Science OEMs / Systems Manufacturers ay e.g. Particle Accelerator e.g. Energy Transition (AL Moony * VAT heritage: CERN work on accelerators * Drivers: Move to nor-fossi
Slide 27: Global Service - Growth Drivers
Global Service - Growth Drivers VAT's service offering expected to develop in-line with semi market — installed base, retrofit adoption and new fabs will provide grow. ESG provides additional growth driver repairable valve installed-base (©) Spare gates with less elastomers Average annual fab utiliz
Slide 28: EBITDA margin
EBITDA margin WAT EBITDA margin below bottom end of margin band; operating leverage yet to kick-in Net sales (in CHF million) 700 40% 600 EBITDA 35% | margin band (32-37%) 500 400 300 20 _—h—lc( (<i kam)h CURA _ Sa Ue. Le... ehh UL Oe S| COU lle 100 20% H12018 = H22018 = H12019.--H22019 = H12020. =
Slide 29: Cyclical industry — flexible operating model
Cyclical industry — flexible operating model WAT Proven downside protocols enabled VAT to reach margin guidance band in Q4 2023 =~ en & ¥ a ; \ >> ~— 2023: ~5% y 30% 2023 2027 Up to 25% flexible workforce group- Best cost country sourcing is expected 75% of our components wide (factory workers in CH
Slide 30: Investing and preparing VAT for market upturn
Investing and preparing VAT for market upturn WAT For VAT, maintaining capacity for customer and developing the next generation of technology around vacuum is a key differentiator. Net Capex (in CHF million) R&D (in CHF million) 80 10% 60 10% 70 so 8% 8% 60 40 50 6% 6% 40 30 30 4% 4% 20 20 2% 10 2%
Slide 31: VAT is ready for the significant ramp ahead
VAT is ready for the signficant ramp ahead VAT Investing ahead of market upswing essential to provide capacity when needed >CHF 130m in Capacity Investments since 2020 2 primary production sites with total output capacity of CHF >2B by 2027 Factory output (CHFm) ~ +) Haag, Switzerland Qo ° & Penang,
Slide 32: Outlook
Outlook
Slide 33: Short term market outlook
Short term market outlook H2 2024 - preparing for 2025 ramp WAT H2 2024 expected market growth VAT H2 2024 expectations * Demand from China, especially related to ICAPS, expected to remain at high levels but unlikely to grow further * Investments continue to grow due to demand for high-end memory an
Slide 34: Further growth in WFE ahead
Further growth in WFE ahead WFE estimates show a narrower width for 2024, expected to grow slightly, while there is a strong consensus that 2025 will be a stronger year. 12% 12 —se— 108 —160— 108 | i | 2025 2023 2024 lm WFE Consensus 9—®-Growth YoY % 2026 2027 ‘Source:Techinsights September 2024, Yo
Slide 35: Appendix
OS Appendix
Slide 36: VAT Management Team
VAT Management Team WAT VAT leadership refreshed with a track record of success internally and externally Urs Gantner Fabian Chiozza Thomas Berden Finn Felsberg CEO CFO coo EVP Semiconductor Solutions Group ee December 2024 VAT | Investor Deck Winter 2024 36
Slide 37: Years of vacuum valve knowhow
60 years of vacuum valve knowhow WAT VAT offers both highly tailored valves as well as standard products Based on three core valve types (transfer, control and isolation) our product portfolio comprises over 140 valve series with more than 8,000 customized products and 2,500 standard products. * VAT
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Slide 39: Valves on a semiconductor manufacturing tool
Valves on a semiconductor manufacturing tool WAT A tool will have multiple valves installed to control the environment and separate vacuum from atmosphere Vacuum Components Vacuum Valves = Load-Lock Modules (LL) * Vacuum Transfer Valves (1) = Transfer Modules (TM) * Vacuum Transfer Doors (2) * Vacuu
Slide 40: Our mid- and long-term strategy
Our mid- and long-term strategy VAT Ambition is to move beyond valves to the broader vacuum domain - growing our SoW with customers SEMI as the CORE market and the main technology HAY Leverage all products and technologies into Advanced driver for all products and solutions & re) Industrial applicat
Slide 41: Financial Guidance
Financial Guidance WAT VAT has a track-record of delivering on guidance ion 2022-2027 Stakeholder value proposi Our sustainable value creation is based on 3 key pillars: roti I SE a C1) Market / WFE growth C1) Operational excellence (7) Leading edge innovation . . . . Cycle management with operating
Slide 42: VAT Sustainability Report 2023
VAT Sustainability Report 2023 WAT Overview of changes compared to the 2022 report and ESG highlights of 2023 edition Improvements Compared to the 2022 Report Y Incorporating additional information as requested by ESG ratings CREATING VALUE SUSTAINABLY Y Implementation of the Swiss KVI requirements
Slide 43: Enabling the USD 1trn Semiconductor Market
Enabling the USD 1trn Semiconductor Market VAT VAT SEMI counts the leading WFE OEMs to its customer base — delivering on highest manufacturing standards VAT is crucial to progress in semiconductor manufacturing Serving Clients across the Semiconductor Value Chain * Moore's Law continues to hold up a
Slide 44: Trusted Partner for “Big Science”
Trusted Partner for “Big Science” WAT VAT ADV continues work on high profile scientific projects and technologies with world-class expertise in vacuum * LHC hunts for the basic constituents of matter () ° VAT sector valves help avoid leaks over the large LHC volume y, * NASA’s Europa Clipper Mission
Slide 45: Additional information
Additional information WAT Investor information Contact information Listing: SIX Swiss Exchange Currency: CHF Ticker symbol VACN ISIN CH 031 186490 1 Financial calendar 2024 / 2025 Michel Gerber Christopher Wickli VP Investor Relations & Investor Relations Sustainability Manager Phone: +41 81553 70
Slide 46: Forward looking statements
VAT | Investor Deck Winter 2024 WAT Forward looking statements 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 contained herein that are not statements of his
Slide 47: Thank you!
Thank you! VAT Group AG Investor Relations investors@vat.ch WAT PASSION. PRECISION. PURITY.