Slide 1: VAT — We change the world with vacuum solutions: Full-year 2023 results
VAT — We change the world with vacuum solutions Full-year 2023 results
Slide 2: Agenda
Agenda WAT Highlights Urs Gantner, CEO 3 Full-year 2023 financial review Fabian Chiozza, CFO 9 2024 market expectations and outlook Urs Gantner, CEO 23 Q&A 27 March 2024 VAT - We change the world with vacuum solutions 2
Slide 3: Highlights
OT Highlights Urs Gantner, CEO
Slide 4: Highlights 2023
Highlights 2023 Highest number of spec-wins recorded - continued investments in capacity and R&D capabilities - delivering 32% EBITDA margin in H2 2023 Orders — below record year Sales - ADV demonstrated stability On track to meet mid-term targets Preparation for the ramp-up 2024 -a transition year
Slide 5: Slowdown in orders and sales in early 2023 has impacted performance - gradual recovery in H2
Slowdown in orders and sales in early 2023 has impacted performance - gradual recovery in H2 Our business segments Delivering outstanding performance (Share of 2023 net sales) Valves (80%) Global Service (20%) _ 885 Sa (23%) %& F : Full-year 2023 net sales (M CHF) er ¢ 189 6.25 . i : 17%) (unchanged
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 2023 Regional sales breakdown 2023 Close to 80% of VAT’s sales are semiconductor related Global Sevice 20% EMEA Semiconductor Americas 58%
Slide 7: Market share
Market share VAT retained a high market share despite market developments Market share Semi and related‘ 2015 m2016 m2017 =2018 m2019 m2020 m2021 = 2022 ™2023 ~70% VAT °&mks) (VTEX Kirzsct CKD ULVAC HVA) ZSNC sitite Techinsights February 2024 ) Semi and related includes Semiconductors, Displays, Sol
Slide 8: Market trends 2023
Market trends 2023 VAT Semiconductors and Global Service have troughed — ADV provided stability Semiconductors Solar and Energy Transition Consumer / End-user Market Demand Significant decline in orders starting in Q3 2022 and continuing into H1 2023, with fab utilization tates down, in some cases e
Slide 9: Full-year 2023 financial review
QO2 Full-year 2023 financial review Fabian Chiozza, CFO
Slide 10: Summary Group key figures
Summary Group key figures Net income CHF 190.3m (-38.0%) Net sales CHF 885.3m (-22.7%) Free cash flow CHF 188.8m (-17.3%) EBITDA CHF 270.9m (-32.3%) EBITDA margin 30.6% (-4.4ppt) Leverage (Net debt/LTM EBITDA) 0.2x (2022: 0.1x)
Slide 11: Order intake
Order intake VAT Q4 2023 order intake in-line with Q4 2022 - orders reflecting muted investment environment (in CHF million) 1210 Full-year order intake -43% YoY 692 Year-end order a Includes large backlog ADV orders and ~44% YoY seasonal effects 292 237 2022 2023 4 order intake mFull-year order int
Slide 12: Orders and sales through the cycle
Orders and sales through the cycle WAT Order momentum rebounded since Q1 2023 - QoQ sales growth turning positive again (in CHF million) 500 450 400 350 300 250 200 Order intake - trough 2019 level Qi a2. Q@3 @4 @i Q2. Q3 Q4 ai Q2. Q3 Q4 Qi a2. Q@3 @4 @i Q2. Q3 Q4 ai Q2. Q3 4 2018 2018 2018 2018 201
Slide 13: Highlights: Valves
Highlights: Valves VAT Orders and sales in valves hit by downturn - ADV has feathered the impact of the sales trough Orders (in CHF million) 600 500 400 300 200 ) H12022 2.2022 H12023 H2 2023 Sales (in CHF million) l= Semi Ml ADV 600 500 400 (110% ) 300 100 si 0 12022 H2 2022 12023 H2 2023 ee March
Slide 14: Highlights: Global Service
Highlights: Global Service VAT Global Service saw a decline as utilization levels in fabs were at historical lows Sales (in CHF million) 120 80 Cc ~ 60 Continued slowdown as (investments slowed 40 5 a Early signs that utilisation rates are rising 20 ie} 12022 H2 2022 12023 H2 2023 HE Gates MI Spares
Slide 15: EBITDA and EBITDA margin
EBITDA and EBITDA margin WAT EBITDA returning to bottom end of guidance range communicated EBITDA EBITDA margin (in CHF million) (%) 400 2022: 35.0% EBITDA margin 5 -4.4 ppt +2.9ppt 32.1% YoY 30.6% 29.2% 2022 2023 2023 BHIEBITDA WH2 EBITDA MFY EBITDA H1 Margin © H2 Margin FY Margin ° EBITDA margins
Slide 16: EBITDA margin
EBITDA margin VAT A 41 ppt improvement on previous trough margin serves as proof of resilience of our business model Net sales (in CHF million) 700 40% 600 35% 500 400 300 a Trough to trough: +4.1 ppt hn) Oa oe ee ee ee ee ee 6) lh 6 t__ 100 20% H12018 H2 2018 12019 H2 2019 12020 H2 2020 12021 H2 20
Slide 17: Value creation
Value creation VAT VAT’s business model consistently generates excess returns over cost of capital - despite continued investments into future capacity and technology (in CHF million) (%) 700 70% 600 60% 500 50% 400 40% 300 30% 200 20% 100 10% O° 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 lll I
Slide 18: Below the EBITDA line
Below the EBITDA line VAT Net income impacted by FX losses on loans and cash and cash equivalents Gn CHE milion 2023 2022 EBITD, 270.9 400.4 -32% -42.3 -41.0 +3% EBIT 228.6 359.4 -36% Finance net -21.5 -3.0 +617% EBT 2071 356.5 42% Income tax expenses -16.8 49.7 -66% Effective tax rate 81% 13.9% -5.
Slide 19: Free cash flow
Free cash flow VAT Despite decline in EBITDA, FCF generation remains strong Free cash flow development Free cash flow conversion (in CHF million) % 294 100% 256 228 88% 189 9 79% 70% err ee-\--- -f-- 5% - Average free 57% cash flow conversion of 65% 28% 2022 2023 2015 2016 2017 2018 2019 2020 2021 2
Slide 20: Preparing VAT for market upturn
Preparing VAT for market upturn WAT Capex and R&D above mid-term guidance bands 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 % 10 () 0% 0 0% 2015 2016 §=2017: «2018 »=—- 2019-2020 «2021 «2022 ~=—-2028 2015 «2016 §=2017: «2018 §=2
Slide 21: Net debt and leverage
Net debt and leverage VAT Seasonally higher net debt due to dividend payment in May 2023; remains well below 1x net debt/EBITDA Net debt development Leverage Development (in CHF million) Il 63 “144 : 174, 03 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ml Gross debt — Cash and cash equivalents Net d
Slide 22: Finance summary
Finance summary WAT 2023 financial results below record-breaking 2022 — preserving ramp-up capacity key focus * VAT weathered semiconductors market trough in very good shape, utilizing downside protocols applied in previous down turns - focus on internal efficiency programs, releasing temp workers,
Slide 23: 2024 market expectations and outlook
O03 2024 market expectations and outlook Urs Gantner, CEO
Slide 24: Short term market outlook
Short term market outlook 2024 - year of transition WAT 24 expected market growth VAT 2024 Performance * Demand from China, especially related to ICAPS expected to continue into 2024 Additionally, investments in leading edge to grow due to demand of 3D DRAM and GAA tools, demand for NAND remains mut
Slide 25: Innovation remains competitive advantage for VAT
Innovation remains competitive advantage for VAT VAT Record spec-wins for 2023 sets conditions for further growth 2023 downcycle did not decelerate spec-win velocity SEMI: 50%+ of all wins “720 | — Include both wins in leading-edge and ICAPS — 5-year average: % - driven by regionalization trends — A
Slide 26: Qualitative outlook and guidance for Q1 2024
Qualitative outlook and guidance for Q1 2024 Early 2024 remains challenging - aiming for continuous and sequential growth Q1 2024 guidance At constant foreign exchange rates. Investment conditions for Semiconductor segment expected to improve gradually over course of 2024 — acceleration expected tow
Slide 27: Q&A session
O4 Q&A session Full-year 2023 results
Slide 28: Q&A
Q&A VAT
Slide 29: Investor information and contact
WAT Investor information Contact information Listing: SIX Swiss Exchange Michel Gerber Christopher Wickli Currency: CHF VP Investor Relations & Investor Relations Ticker symbol VACN Sustainability Manager ISIN CH0311864901 Phone: +41 81553 70 13 Phone: +41 81553 75 39 E-mail: m.gerber@vat.ch E-mail:
Slide 30: Forward looking statements
Full-year 2023 results 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 historical f