Vat Group Ag · SIX:VACN
Vat — Investor Presentation (2021)
31 slides from Vat's investor presentation, Aug 20, 2021
Slide 1: VAT - Global leaders in Vacuum Valve Technology
WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - Global leaders in Vacuum Valve Technology Investor Deck - Spring 2021 www.vatvalve.com
Slide 2: Market share gains and strong business execution drive 2020 results
€ o G S a G Kepler Cheuvreux Market share gains and strong business execution drive 2020 results Our business segments Valves Global Service Industry Delivering outstanding performance Full-year 2020 order Full-year 2020 net Record full-year 2020 intake (M CHF) sales (M CHF) EBITDA margin Record ful
Slide 3: Semiconductor are our driving force
Kepler Cheuvreux 22° Swiss Digital Seminar - Semiconductor are our driving force Sales Breakdown by Market Segment 2020 19% > N 55% 1% Semiconductor Display & Solar Advanced Industrials Industry Global Service Regional Sales Breakdown 2020 33% 14% APAC Americas EMEA 53%
Slide 4: 70% 65% 63% 62% 61% 57% 56% 55% 55% 54% 53% 49% 49% 47%
70% 65% 63% 62% 61% 57% 56% 55% 55% 54% 53% 49% 49% 47% 46% 45% 41% 39% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Slide 5: 60% 50% 2015 2016 2017 2018 2019 2020 40% 30% 20% 10% 0%
60% 50% 2015 2016 2017 2018 2019 2020 40% 30% 20% 10% 0%
Slide 6: Record quarterly orders and strong net sales as VAT harnesses market leadership
Record quarterly orders and strong net sales as VAT harnesses market leadership in accelerating semi market quarterly orders of CHF 241 million, up 33%; Group net sales increased to CHF all 192 million, up 32%; book-to-bill ratio reaches 1.25x Substantial growth expected from strong semiconductor an
Slide 7: The VAT advantage
Slide 8: VAT is the undisputed market leader in the strongly growing vacuum valves market
VAT is the undisputed market leader in the strongly growing & highly profitable vacuum valves market VAT benefits from VAT is the due to technology leadership, deep 123 ae an application expertise, global scale and customer intimacy pe, VAT's great performance is possible because of our and we are a
Slide 9: Key megatrends support strong long-term growth in semiconductors
Key megatrends support strong long-term growth in semiconductors Strong semiconductor growth supported by growth across key digitalization levers: Al Big data & cloud loT 5G Sales growth (CAGR '20-'25) +35% +8% +16% +64% Source: Omdia July 2020; UBS February 2020; Gartner July 2020; Bloomberg Intell
Slide 10: Strong growth of semiconductors is cascaded down to strongly increasing demand in valves
Strong growth of semiconductors is cascaded down to strongly increasing demand in valves expected in ..translating to ..with semiconductor end-markets... 8% Strongest 4.5x increase ——T p 2 . Oe Z growth in 64 ei] VAT’s <7nm 912 6 strong hold 643 451 g & 2020 2025 2020 2025 28nm 20nm 14nm 10nm 7nm Sn
Slide 11: We deliver outstanding customer value in vacuum solutions
1 We deliver outstanding customer value in vacuum solutions & are the partner of choice Deep Semi expertise Broad technology portfolio Deep application know-how Fast speed to market Global scale We have deep expertise in the semiconductor industry Our product portfolio comprises ~140 valve series wi
Slide 12: Our great people drive great performance
Our great people drive great performance Engagement Talent development We have We build our culture on a . Our in place long tradition of has gone developing the up for four years in a row with and
Slide 13: We have a strong track-record of delivering outstanding financial performance
We have a strong track-record of delivering outstanding financial performance Sales EBITDA FCF conversion ROIC Strong double-digit High profitability High FCF conversion g s & a Strong Return on growth, outperforming throughout the through controlled Invested Capital at competition business cycle CA
Slide 14: Our strategic priorities
Slide 15: Four priorities going forward to accelerate our future growth
Four priorities going forward to accelerate our future growth & further improve our profitability Gain market share in Grow our service Move to adjacencies Improve operational valves business & connected VAT footprint
Slide 16: We will continue to gain market share in valves
Capital Markets Day 2020 We will continue to gain market share in valves Market share in valves to ..based on our >+10 ppt Focused efforts and investments in R&D yielded in constantly large numbers of specification wins VAT particularly successful in leading edge applications specifications, such as
Slide 17: We will win in valves across all our end-markets
We will win in valves across all our end-markets Semiconductors Displays & Solar Advanced industrial expected, in particular for our transfer & control valves Majority of share gains to come from Continuation of in display and solar investments by 2023/24; 5x higher valve content per GW in heterojun
Slide 18: We will continue to grow our unique service business
We will continue to grow our unique service business Our service business is based on a Rapidly expanding installed base of over (10% CAGR of installed base since 2000) (8 service centers worldwide) (20 new upgrades launched since 2018) ..and will continue to deliver a ry U from 2020 to 2025 in serv
Slide 19: We will move into profitable adjacencies
We will move into profitable adjacencies Our strategic priorities Attractiveness High Medium Low 4 y Prio | Upstream Motion WARES components 60-80m 120-150m Advanced modules Low Medium High Ability to win @ Early development stage Market introduction stage Market growth stage
Slide 20: We will move into sensors & analytics: Connected VAT
w” We will move into sensors & analytics to build our next ° growth platform: Connected VAT Expanding into adjacent products within the chamber to increase share-of-wallet with customer + Electrifying our valves, adding sensors and connectivity as well as including data generation, data processing &
Slide 21: We will diversify our operational footprint to get closer to our customers
W We will diversify our operational footprint to get closer ° to our customers + Growth in Best Cost Country content improves our cost position fl. volume Factory As-is 500 5100 Best Cost Country output >50% content in (CHF M) To-be 500 >500 Best As-is 3% 60% Best Cost Country & | Cost >50% content
Slide 22: Strong organic growth across all sectors as we benefit from megatrends
Strong organic growth across all sectors as we benefit from megatrends, gain market share and develop new businesses Revenue growth by 2025 (M CHF) Cycle EBITDA band a 27%-31% SEMI ~680 Other 2020 Valve market growth Service and share gains Note: Based on a USD/CHF exchange rate of 0.90 Cycle EBITDA
Slide 23: Financial performance & outlook
Slide 24: VAT continues to be a convincing investment story
VAT continues to be a convincing investment story Our sustainable value creation is based on 3 key pillars: © Growth () Profitability 1) WFE spend 4) Operational excellence 2) Market share gains 2) Cycle management with 3) Service business operating flexibility % Organic adjacencies 3 Best cost coun
Slide 25: Unique combination of profitable growth and cash returns to shareholder
Unique combination of profitable growth and cash returns to shareholder J + + High single digit over the 30-35% of sales >40% over the cycle cycle (33% at CHF 800M in sales) V + + 4-5% of sales 5-6% of sales 60-65% of EBITDA JV JV NA 20% of sales 1x Net Debt/EBITDA Up to 100% of FCFE to shareholders
Slide 26: Our balanced capital allocation will continue in 2020-2025
Our balanced capital allocation will continue in 2020- 2025 Our past capital allocation principles... ..Will continue to guide our use of cash in 2020-2025 CHE Allocation of capital enabled by = and a strong 4-5% Of sales in CAPEX = 202M balance sheet Organic value creation based on CHF disciplined
Slide 27: Conclusion
el Conéiligion Mike Allison
Slide 28: VAT will deliver sustainable value creation and is a convincing investment opportunity
VAT will deliver sustainable value creation and is a convincing investment opportunity Core growth With its VAT operates in the most exciting growth industries and has already secured many of the future growth potential Additional growth through and move into to build Our will allow VAT to operate i
Slide 29: Robust outlook pointing to >15% market growth in 2021
Robust outlook pointing to >15% market growth in 2021 O © Semiconductor Dw Service Advanced Industrials Display & Solar Continued strength with WFE expected Continued strength across all sub-segments Recovering from COVID pandemic-driven declines, Continued weakness in 2 markets expected to
Slide 30: Strong organic growth across all sectors as we benefit from megatrends
Strong organic growth across all sectors as we benefit from megatrends, gain market share and develop new businesses Revenue growth by 2025 (M CHF) Cycle EBITDA band a 27%-31% SEMI ~680 Other 2020 Valve market growth Service and share gains Note: Based on a USD/CHF exchange rate of 0.90 Cycle EBITDA
Slide 31: Q&A