Vat Group Ag · SIX:VACN
Vat — FY2024 Earnings Presentation
32 slides from Vat's earnings presentation, Mar 4, 2025
Slide 1: Full-year 2024 results
Full-year 2024 results March 4, 2025 We change the world with vacuum solutions.
Slide 2: Agenda
Agenda 03 Highlights and review 2024 Urs Gantner, CEO 09 Full-year 2024 financial review Fabian Chiozza, CFO 21 2025 market expectations and outlook Urs Gantner, CEO 30 Q&A 2 March 2025 | Full-year 2024 results
Slide 3: 1. Highlights and review 2024
1. Highlights and review 2024 Urs Gantner, CEO
Slide 4: Highlights 2024
Highlights 2024 Transitional year for VAT – orders and sales in SEMI sharply up in 2024 – major investment programs completed or nearing completion FY orders up 49% year-on-year – driven by SEMI business (+84%); ADV Orders – orders saw fewer large project orders (-13%); GSE overall recovered for rec
Slide 5: Our business focus and performance
Our business focus and performance Continued return to normalized market conditions across VAT’s businesses Our business segments Delivering outstanding performance (share of 2024 net sales) 1,033 942 31.2% (+6%) (+49%) FY reported Full-year 2024 net Full-year 2024 order EBITDA margin sales intake (
Slide 6: Sales breakdown by markets and regions
Sales breakdown by markets and regions Semiconductor end-markets gained 2024 – Asian markets remain at forefront Sales breakdown by market segment 2024 Regional sales breakdown 2024 Around 80% of EMEA Global Service VAT’s sales are 14% 18% semiconductor related in 2024 Americas Advanced 19% Industri
Slide 7: Semi and related competitive landscape
Semi and related competitive landscape VAT has been able to increase the market share by 2 ppts in 2024 – despite unfavorable mix-effects Market share Semi and related(1) Others Source: Preliminary TechInsights data as per February 2025; (1) Semi & related includes Semiconductors, Displays, Solar, L
Slide 8: WFE growth areas 2024
WFE growth areas 2024 Vacuum-related WFE grew by 2 ppts – bias was on China-related WFE and DUV lithography equipment WFE in VAT’s core markets grew only slightly China development in-line with market WFE composition by application (2024 preliminary), in USD billion VAT revenues, 2024 WFE split, 202
Slide 9: 2. Full-year 2024 financial review
2. Full-year 2024 financial review Fabian Chiozza, CFO
Slide 10: Order intake
Order intake Recovery in semiconductor end-markets fueled 49% increase in orders over 2023 Orders increased significantly in 2024 Full-year order (in CHF million) intake +49% YoY 1,033 Year-end 692 Less order backlog seasonality +27% YoY 2024 vs. 2023 370 292 268 237 2023 2024 Q4 order intake Full-y
Slide 11: Orders and sales through the cycle
Orders and sales through the cycle Order momentum continues, with 2024 showing some volatility (in CHF million) 500 1.8x Order intake – peak 2021 1.6x 400 level BtB Q4: 1.4x 1.02x (adj.) 1.2x 300 1.0x 0.8x 200 Order intake – 0.6x trough 2019 100 0.4x level 0.2x 0 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 12: Highlights: Valves
Highlights: Valves Semi orders and sales showing recovery - Semi 2024 orders up 84%, sales up 22% 500 Semi ADV 400 -16% +12% Orders 300 (in CHF million) 200 +7% +38% 100 0 H1 2023 H2 2023 H1 2024 H2 2024 500 Semi ADV 400 -3% Sales -29% 300 (in CHF 200 million) +17% 100 +16% 0 H1 2023 H2 2023 H1 2024
Slide 13: Highlights: Global Service
Highlights: Global Service Global Service saw a great start to 2024, but momentum slowed into H2. Higher utilization rates reflected in the H1 performance, but decline in retrofits impacted sales Sales (in CHF million) 100 -50% +9% 75 Impact of slower -28% upgrading activity +17% 50 +1% +16% Utiliza
Slide 14: Gross profit development
Gross profit development VAT has generated consistently higher gross profit margins over time, which indicates sustainable efficiency gains through the flex operating model Net sales (in CHF million) 6 ppts increase in 1400 gross profit margin 70% 66% 1200 64% 65% 1000 63% 62% 62% 0800 60% 61% 60% 0
Slide 15: EBITDA development
EBITDA development VAT has returned in H2 2023 and H2 2024 into the target EBITDA band Net sales (in CHF million) 700 EBITDA target band: 32% to 37% 40% 600 35% 500 400 30% 300 200 25% 100 0 20% H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H
Slide 16: Below the EBITDA line
Below the EBITDA line Higher sales and profitability has increased the tax expenses for VAT (in CHF million) 2024 2023 Change EBITDA 293.7 270.9 +8% Depreciation, amortization and impairment -43.5 -42.3 +3% EBIT 250.2 228.6 +9% Finance net 2.4 -21.5 -111% EBT 252.6 207.1 +22% Income tax expenses -40
Slide 17: Free cash flow
Free cash flow FCF conversion for H2 2024 in-line again with long-term average following investment phase Free cash flow development Free cash flow conversion (in CHF million) (%) 256 241 88% 91% 86% 189 183 70% -67 -57 Average free 70% cash flow 64% 62% conversion of 58% 57% 70% 51% 2023 2024 2015
Slide 18: Preparations for the ramp on track
Preparations for the ramp on track Capex and R&D at elevated levels, capex will normalize back to guidance band after major infrastructure investments; R&D remains key differentiator Net capex R&D (in CHF million) (in CHF million) 80 10% 70 10% 60 8% 8% 60 50 6% 40 6% 40 4% 30 4% 20 20 2% 2% 10 0 0%
Slide 19: Net debt and leverage
Net debt and leverage Leverage remains well below 1.0x target, with FCF increasing Net debt development Leverage Development (in CHF million) 242 1.9 207 Target ceiling: 1.0x ND / EBITDA 84 63 -158 0.9 0.9 -144 0.7 0.7 0.3 0.6 0.2 0.1 0.3 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 G
Slide 20: Finance summary
Finance summary 2024 financial results reflect the improved environment in semiconductors and VAT’s preparations for growth ● Continued preparations for market growth over the course of the year, focusing on capabilities (R&D, Engineering) and capacity (Capex) Achievements ● Slowdown in VAT capex in
Slide 21: 3. 2025 market expectations and outlook
3. 2025 market expectations and outlook Urs Gantner, CEO
Slide 22: Growth drivers for 2025 (and beyond)
Growth drivers for 2025 (and beyond) VAT is looking to a year of growth in 2025, fueled by the technology transition in semiconductor manufacturing Semiconductor market growth to over USD 1 trillion VAT to outgrow market (Semiconductor market size, USD billion) ● More leading-edge investments >1,000
Slide 23: WFE remains the base growth driver for VAT
WFE remains the base growth driver for VAT Market consensus for WFE 2025 has pulled back, but growth for new technologies remains on the plate 6% 8% 9% 4% Leading Market expecting 2nm introduction in 2025, ramping into -2% 125 edge logic full volume production in 2026 127 128 115 122 119 106 102 96
Slide 24: Technology transition – GAA / 2nm
Technology transition – GAA / 2nm Leading edge investments in 2025 to rise by c. 20% over 2024 as 2nm / GAA are introduced Leading edge-related WFE to triple 2nm (and below) to be a major node development (WFE in USD billion) (exp. production of 2nm wafers) 3x growth in WFE from 30% to >50% of CAGR:
Slide 25: Manufacturing complexity
Manufacturing complexity Key component of VAT’s outgrowth potential is provided by the move to new tools and more process steps overall 140 Old structure: New structure: Benefits of shift: collocated tools integrated tools 120 ● Controlled Integrated environment tools result in 100 ● Lower risk of u
Slide 26: Visibility for the ramp remains high
Visibility for the ramp remains high The technology transition in 2025 is likely to be significant and provides VAT with tailwinds 1 Spec wins 2 Technology build-out 3 124 fabs to open ● Revenues in 2025 related to 2nm / ● Node size reduction every 2 to 3 years ● Locations: leading-edge spec wins in
Slide 27: Qualitative outlook ‘25 and guidance for Q1 2025
Qualitative outlook ‘25 and guidance for Q1 2025 VAT’s customers expect readiness and surge capacity available right now ● Investment conditions for Semiconductor segment to continue in H1 similarly to 2024 and expected to improve gradually over course of 2025 – acceleration expected towards H2, whi
Slide 28: What to take away from today
What to take away from today 2024 return to growth We are ready for the upturn Our growth story continues ● VAT semiconductor-related ● Investments in capabilities and ● Growth drivers of digitalization, orders grew 84% in 2024 footprint expansion in AI, energy ● Market share in semi/semi-related in
Slide 29: Capital Markets Day – May 20, 2025
Capital Markets Day – May 20, 2025 Save the date May 20, 2025 in Haag Start around 10:00 a.m. ● Innovation Center tour (a.m.) ● Factory tour (a.m.) ● Lunch at “Siegfried” ● Strategy update 2025 to 2029 with management (p.m.) – will be webcast as well 29 March 2025 | Full-year 2024 results
Slide 30: 4. Q&A session
4. Q&A session Full-year 2024 results
Slide 31: Additional information
Additional information Investor information Contact information Financial calendar 2024 2025 Thursday, April 17 Q1 2025 trading update Thursday, April 17 Record date, closing of share register, 5:00 p.m. CEST Tuesday, April 29 Annual General Meeting, St Gallen, Switzerland Friday, May 2 Ex-date Tues
Slide 32: Forward looking statements
Full-year 2024 results 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 historical fact