Vat Group Ag · SIX:VACN

Vat — H1 2018 Earnings Presentation

28 slides from Vat's earnings presentation, Aug 2, 2018

  1. Slide 1: Second quarter and half-year 2018 results

    Sec ond quarter and half - year 2018 r es ults S ECOND Q UARTER AND H ALF -Y EAR 2018 R ESULTS No. 1 global market position in high-end vacuum valve technology August 2, 2018 1

  2. Slide 2: Agenda

    PASSION. PRECISION. PURITY. Agenda Sec ond quarter and half - year 2018 r es ults 1 Highlights Mike Allison, CEO 2 Second quarter and half-year 2018 financial results Andreas Leutenegger, CFO 3 Market conditions and outlook for 2018 Mike Allison, CEO 2

  3. Slide 3: Near record net sales in Q2 2018; industry capex stabilized at a high level

    PASSION. PRECISION. PURITY. Near record net sales in Q2 2018; industry capex stabilized at a high level Sec ond quarter and half - year 2018 r es ults Nine consecutive Quick adjustment of cost  Specification wins quarters of net sales base in reaction to during the first half of growth on a year on

  4. Slide 4: All segments contribute to half-year 2018 results improvements

    PASSION. PRECISION. PURITY. All segments contribute to half-year 2018 results improvements Sec ond quarter and half - year 2018 r es ults VAT Group AG Valves Global Service Industry (81%) (13%) (6%) Segment (% of total net sales) Net sales CHF 387m / +18% CHF 313m / +19% CHF 51 / +17% CHF 23m / +20%

  5. Slide 5: Preliminary half-year market share data shows improved No. 1 market position

    PASSION. PRECISION. PURITY. Preliminary half-year market share data shows improved No. 1 market position Market share all industries 1 Market share semi & related 2 Market share semi 3 Sec ond quarter and half - year 2018 r es ults Total vacuum valve market size Total vacuum valve market size Total

  6. Slide 6: Agenda

    PASSION. PRECISION. PURITY. Agenda Sec ond quarter and half - year 2018 r es ults 1 Highlights Mike Allison, CEO 2 Second quarter and half-year 2018 financial results Andreas Leutenegger, CFO 3 Market conditions and outlook for 2018 Mike Allison, CEO 6

  7. Slide 7: Half-year 2018 – Group key figures

    PASSION. PRECISION. PURITY. Half-year 2018 – Group key figures EBITDA margin Sec ond quarter and half - year 2018 r es ults Third party net sales EBITDA 31.6% vs 30.1%1 CHF 387 m CHF 122 m (+150bps) +18% +24%1 EBIT margin 27.2% (+330bps) Free cash flow Free cash flow margin 12% Net debt/EBITDA CHF 4

  8. Slide 8: Q2 order development confirms expected moderation for H2 2018

    PASSION. PRECISION. PURITY. Q2 order development confirms expected moderation for H2 2018 in CHF million Sec ond quarter and half - year 2018 r es ults Half-year 2018 372 +2% 381 Q2 2018 190 -13% 166 166 159 2017 2018 Q2 order intake Half-year order intake Order backlog1 1 order backlog as of June 3

  9. Slide 9: Strong half-year net sales increase; EBITDA margin up 150bps to 31.6%

    PASSION. PRECISION. PURITY. Strong half-year net sales increase; EBITDA margin up 150bps to 31.6% in CHF million Sec ond quarter and half - year 2018 r es ults 31.6% EBITDA margin 30.1% +18% 387 326 162 189 98 122 2017 2018 Q2 net sales Half-year net sales Half-year EBITDA1 1 2017 EBITDA adjusted fo

  10. Slide 10: Net sales bridge – volume gains and product mix drive sales growth

    PASSION. PRECISION. PURITY. Net sales bridge – volume gains and product mix drive sales growth Sec ond quarter and half - year 2018 r es ults 39 387 (3) (1) 26 326 6M 2017 Volume Product mix Price FX 6M 2018  Volume and product mix increases both drive top line growth  Price impact from volume dis

  11. Slide 11: Half-year 2018 net sales by segment and region

    PASSION. PRECISION. PURITY. Half-year 2018 net sales CHF 387 million Sec ond quarter and half - year 2018 r es ults Net sales by segment Net sales by region 81% Valves 52% Asia 31% North America 13% Global Service 6% Industry 17% EMEA 11

  12. Slide 12: Valves – 81% of net sales

    PASSION. PRECISION. PURITY. Valves – 81% of net sales in CHF million Q2 2018 Q2 2017 Change Semiconductors Sec ond quarter and half - year 2018 r es ults Order intake 128.1 153.6 -16.6%  Successful release of leading-edge valve from Net Sales 153.7 131.1 17.2% Malaysian factory by large OEM in CHF

  13. Slide 13: Global Service – 13% of net sales

    PASSION. PRECISION. PURITY. Global Service – 13% of net sales Q2 2018 Q2 2017 Change in CHF million Broadening of service capabilities Sec ond quarter and half - year 2018 r es ults Order intake 25.8 26.2 -1.5% Net Sales 24.0 21.7 10.7%  Strongest growth in spare parts and repairs in CHF million 6M

  14. Slide 14: Industry – 6% of net sales

    PASSION. PRECISION. PURITY. Industry – 6% of net sales in CHF million Q2 2018 Q2 2017 Change Variety of industrial businesses Sec ond quarter and half - year 2018 r es ults Order intake 11.7 10.3 13.4% Net Sales 11.1 9.1 22.4% contribute to growth in CHF million 6M 2018 6M 2017 Change  Strength of

  15. Slide 15: Solid financing structure yields further improved results below the EBIT line

    PASSION. PRECISION. PURITY. Solid financing structure yields in further improved results below the EBIT line; net income substantially up in CHF million 6M 2018 6M 2017 Change Sec ond quarter and half - year 2018 r es ults EBIT 105.0 78.2 34.3% Finance net -5.2 -6.8 -23.7% EBT 99.8 71.4 39.8% Income

  16. Slide 16: Working capital increase and higher CAPEX weigh on cash generation

    PASSION. PRECISION. PURITY. Working capital increase and higher CAPEX weigh on cash generation Free cash flow Free cash flow conversion Sec ond quarter and half - year 2018 r es ults 81 (34) 79% +13% +92% 72 (18) 57% 54 47 (13%) 39% 6M 2017 6M 2018 6M 2016 6M 2017 6M 2018 Cash flow from operating ac

  17. Slide 17: Successful debut bond issuance strengthens financing structure further

    PASSION. PRECISION. PURITY. Successful debut bond issuance strengthens financing structure further Net debt development Sec ond quarter and half - year 2018 r es ults Net debt to EBITDA ratio 199 1.1 (105) 216 222 1.0 (72) 0.7 144 127 6M 2017 6M 2018 June 30, 2017 (LTM) Dec 31, 2017 June 30, 2018 (L

  18. Slide 18: Managing the foreign exchange exposure

    PASSION. PRECISION. PURITY. Managing the foreign exchange exposure FX Status on FX exposure initiatives Sec ond quarter and half - year 2018 r es ults  Ongoing initiative to increase global sourcing (mainly Asia and Eastern Europe) USD  Nomination of debt partly in USD  FX hedging of up to 100% o

  19. Slide 19: Summary of financial results

    PASSION. PRECISION. PURITY. Summary of financial results Achievements Sec ond quarter and half - year 2018 r es ults  Ninth consecutive quarter of higher net sales year on year since the IPO in April 2016  Swift reaction to the changing environment; cost reductions thanks to the flexible structure

  20. Slide 20: Agenda

    PASSION. PRECISION. PURITY. Agenda Sec ond quarter and half - year 2018 r es ults 1 Highlights Mike Allison, CEO 2 Second quarter and half-year 2018 financial results Andreas Leutenegger, CFO 3 Market conditions and outlook for 2018 Mike Allison, CEO 20

  21. Slide 21: Latest market developments – mid- to longer-term

    PASSION. PRECISION. PURITY. Latest market developments – mid- to longer-term Sec ond quarter and half - year 2018 r es ults  No change in strong market drivers – data, mobility, compute  IC makers – robust financial outlook, majority above guidance in Q2 and projecting strong outlook Market  Dema

  22. Slide 22: Latest market developments – short-term

    PASSION. PRECISION. PURITY. Latest market developments – short-term Sec ond quarter and half - year 2018 r es ults  Semiconductor industry capex still growing in the first half of 2018  Industry capex has stabilized at a high level  Customers focused on sustainable business models - chipmakers ma

  23. Slide 23: Positioned for the future: Technology leader with a sustainable business model

    PASSION. PRECISION. PURITY. Positioned for the future: Technology leader with a sustainable, class-leading and agile business model Sec ond quarter and half - year 2018 r es ults Innovation and Ongoing organization, Business model agility. technology leader. process and people Delivering strong prof

  24. Slide 24: Outlook 2018

    PASSION. PRECISION. PURITY. Outlook 2018 Sec ond quarter and half - year 2018 r es ults  VAT now expects to grow full-year net sales by a mid-single digit rate at constant foreign exchange rates  Full-year EBITDA margin to be maintained at around half-year number; Mid-term EBITDA margin target of

  25. Slide 25: VAT's financial mid-term guidance

    PASSION. PRECISION. PURITY. VAT’s financial mid-term guidance Mid-term guidance (amended to former guidance at time of IPO) Sec ond quarter and half - year 2018 r es ults  Net sales growth: high single digit over the cycle at constant FX rates  EBITDA margin target: 33% of sales by 2020  Effectiv

  26. Slide 26: Q&A Session

    Sec ond quarter and half - year 2018 r es ults S ECOND Q UARTER AND H ALF -Y EAR 2018 R ESULTS Q&A Session 26

  27. Slide 27: Information

    PASSION. PRECISION. PURITY. Information Sec ond quarter and half - year 2018 r es ults Investor information Contact information Listing: SIX Swiss Exchange Michel Gerber Currency: CHF Head of Corporate Communications & Ticker symbol: VACN Investor Relations ISIN: CH 031 186490 1 Phone: +41 81 772 42

  28. Slide 28: Forward looking statements

    PASSION. PRECISION. PURITY. Forward looking statements Sec ond quarter and half - year 2018 r es ults 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 containe

VAT Group — H1 2018 Earnings Presentation on 6ix