Advanced Energy Industries, Inc. · NASDAQ:AEIS

Advanced Energy Industries — Investor Presentation (August 2025)

34 slides from Advanced Energy Industries's investor presentation, August 2025

  1. Slide 1: Advanced Energy (AEIS) Investor Presentation

    Advanced Energy (AEIS) Investor Presentation AUGUST 2025

  2. Slide 2: Safe Harbor

    Safe Harbor global economic conditions, such as the impact of escalating global conflicts on macroeconomic

  3. Slide 3: Leader in Precision Power

    Leader in Precision Power do, Advanced Energy (NASDAQ: AEIS) 1981 >70% $1.48B 1,500+ 700+ 2024 REVENUE Technical Team $1.48B $151M (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation

  4. Slide 4: Lead the Future of Precision Power

    Lead the Future of Precision Power 01 02 Precision power leader enabling Expanding set of high-end next generation processes and opportunities across diverse end technologies markets 03 04 Solid revenue growth driven by Superior earnings power with new products, share gain, and well-defined path to

  5. Slide 5: Proprietary Power Solutions for High-Value Markets

    Proprietary Power Solutions for High-Value Markets SEMICONDUCTOR INDUSTRIAL MEDICAL DATA CENTER AE KEY ATTRIBUTES: EQUIPMENT COMPUTING Broad portfolio of leadership technologies Long life-cycle applications > 70% of revenues from sole- sourced designs Strong new product and design win momentum Proce

  6. Slide 6: Sustainable Competitive Advantages

    Sustainable Competitive Advantages Industry-leading Broadest portfolio of Largest technical power technologies precision power team of ~1,500 power for advanced products designers and processes development engineers Deepest application Operational excellence know-how with award-winning execution and

  7. Slide 7: Technology Leadership and Market Leading Positions

    Technology Leadership and Market Leading Positions Industrial Power Large portfolio of high- value and configurable solutions Powering wide-range of industrial applications Medical Power Semi Process Power #2 in Medical power(2) Data Center Power Enabling therapeutic, #1 in plasma power(1) diagnosti

  8. Slide 8: Multiple Macro Drivers

    Multiple Macro Drivers Artificial Intelligence $1 Trillion Semi Market(1) Driving increased power consumption Increasing use of semiconductor in data center and demand for leading- technology across many industries edge silicon Energy Efficiency Electrification Need to reduce power consumption Incre

  9. Slide 9: Outgrow WFE on Increased Intensity and Share Gains

    Outgrow WFE on Increased Intensity and Share Gains Higher Etch/Deposition and Share gains from new plasma Win new designs in Semi adjacent power intensity power products power applications 3rd Party ’24-’29 CAGR Forecast(1): Increased Etch/Dep Intensity System Power Thermal & Sensing eVoS eVerest Na

  10. Slide 10: Accelerate Growth in Industrial and Medical

    Accelerate Growth in Industrial and Medical 01 Large underpenetrated and 02 Accelerating launch of new fragmented market I&M platforms High-end, long-life cycle applications 2X # of custom solutions NeoPower Evergreen Medical NCF AE’s scale and dedicated technical Leverage common platforms to teams

  11. Slide 11: Data Center Computing Leverages AI Technology Roadmap

    Data Center Computing Leverages AI Technology Roadmap AI driving need for higher … while compressing Pipeline of proprietary solutions rack power … time to market enables faster than market growth NVIDIA AI GPU Power Rating(1) 3,000 2,000 New 1,000 0 Increasing importance of power Key technology ena

  12. Slide 12: Accelerated Launch of New Platforms

    Accelerated Launch of New Platforms Accelerated Launch of New Platforms Growing Pipeline of Design Wins # of I&M Design Opportunities ~50% 2022 2024 Technology-leading product platforms High design win conversion rate (>33%) Delivering > 2X number of custom products Strong momentum in Industrial and

  13. Slide 13: Improved Digital Capability Expanding Reach

    Improved Digital Capability Expanding Reach WEB PERFORMANCE DRIVING BUSINESS RESULTS: IMPROVEMENTS: 3X >600 3X >300 2X >150 (1) Performance metrics represents changes in 1 year after new website was launched in August 2023

  14. Slide 14: Targeting Healthy Growth Above Our Markets

    Targeting Healthy Growth Above Our Markets LT Market Growth Outlook AE LT Organic Growth Outlook ~8% CAGR based on a $1T Semi >30% growth above WFE on etch/dep market & increased capital intensity intensity, new products and share gains $4.5 ~4% CAGR after market normalizes with 2X market growth on

  15. Slide 15: Inorganic Strategy Focus on Growing Scope and Leveraging Scale

    Inorganic Strategy Focus on Growing Scope and Leveraging Scale ACQUISITION CRITERIA SELECTED ACQUISITIONS A solid track record in acquiring and growing profitable businesses SL Power Focus on large accretive targets in I&M market and technology tuck-ins HiTek Power UltraVolt Financial discipline wit

  16. Slide 16: Higher Through-Cycle Financial Performance

    Higher Through-Cycle Financial Performance Revenue Non-GAAP EPS(1) Peak to Peak Trough to Trough Peak to Peak Trough to Trough ($ in millions) ($ in millions) ($ per Share) ($ per Share) $2,000 $2,000 $7.00 $7.00 +36% $6.00 $6.00 $1,500 $1,500 $5.00 $5.00 $4.00 $4.00 $1,000 $1,000 +52% $3.00 $3.00 $

  17. Slide 17: Operational Excellence Enables Superior Financial Performance

    Operational Excellence Enables Superior Financial Performance 01 02 Consolidating into five large Cost-effective infrastructure manufacturing sites in for high-mix, low-volume Southeast Asia and Mexico manufacturing Can’t use a picture of solar panel manufacturing 03 04 Internal manufacturing to Con

  18. Slide 18: Structurally Expand Gross Margin

    Structurally Expand Gross Margin 01 Manufacturing and Cost 02 Improve Product Mix 03 Volume Leverage Improvements Manufacturing overhead Focus on growing margin Margin uplift from costs after consolidation accretive markets Next-gen products Gross Margin Expansion > 20% Sole-sourced from 2023 Exit 2

  19. Slide 19: Financial Framework to 2030 Long-term Target Model

    Financial Framework to 2030 Long-term Target Model 2030 Acquisition 2030 ($ in millions, except per share data) 2024 Organic Organic Model Assumptions (Post Long-term Model Synergies) Model > 9% CAGR on market recovery + Revenue $1,482 $2,500 AE growth strategies $500 $3,000 Structural GM improvemen

  20. Slide 20: Capital Allocation Focused on Growth

    Capital Allocation Focused on Growth Allocation of Free Cash Flow Capital Allocation Track Record ▪ Targeting deal returns > Cost of Capital 10-year Cumulative (2015 to 2024) ▪ Non-GAAP(1) EPS accretive in Year 1 ▪ Post-deal net debt leverage(2) at < 3.0x ▪ Post-deal Debt/Equity(3) at < 1.5x Total A

  21. Slide 21: Q2 2025 Financial Highlights

    Q2 2025 Financial Highlights REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $442 million 38.1% $47 million NON-GAAP EPS NON-GAAP OP MARGIN(1) TOTAL CASH $1.50 14.6% $714 million (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found

  22. Slide 22: Q2 2025 Summary – Operating at a Higher Level

    Q2 2025 Summary – Operating at a Higher Level Q2 2025 revenue above the high end of guidance, driven by upside in Data Center ▪ Revenue of $442 million grew 21% YoY; non-GAAP EPS(1) of $1.50 was up 76% YoY ▪ Non-GAAP gross margin(1) of 38.1% was up QoQ, despite increased tariff expenses and producti

  23. Slide 23: Q2 2025 Revenue Detail by Market

    Q2 2025 Revenue Detail by Market Down 6% QoQ & Up 11% YoY ($ in millions) Up 47% QoQ & Up 94% YoY ▪ Delivery schedules shifting to mitigate the ▪ Captured upside demand for AE’s new data near-term impact of tariffs center power solutions ▪ Some early design wins for eVoSTM, ▪ Expect ramps of multipl

  24. Slide 24: Lead the Future of Precision Power

    Lead the Future of Precision Power 01 02 Precision power leader enabling Expanding set of high-end next generation processes and opportunities across diverse end technologies markets 03 04 Solid revenue growth driven by Superior earnings power with new products, share gain, and well-defined path to

  25. Slide 25: Thank You

    Thank You

  26. Slide 26: 2030 Target Model with Scenarios

    2030 Target Model with Scenarios Acquisition 2030 ($ in millions, except 2030 (Post Long-term per share data) 2024 $1.75B $2.00B $2.25B Organic Model Synergies) Model Revenue $1,482 $1,750 $2,000 $2,250 $2,500 $500 $3,000 Gross Margin(1) 36.3% 39.8% 41.3% 42.4% 43.5% 42.0% 43.3% OPEX as % of Sales(1

  27. Slide 27: Environment, Social and Governance Highlights

    Environment, Social and Governance Highlights Environment Social Governance 98% ~44% 90% Peak conversion efficiency for energy- Women as % of global workforce Board members are Independent, non- intensive data center computing applications executive directors 86% 0.17 30% Total Waste Diversion Rate

  28. Slide 28: Q3 2025 Guidance

    Q3 2025 Guidance Revenue $440 million ± $20 million GAAP EPS from continuing operations $0.82 ± $0.25 Non-GAAP(1) EPS $1.45 ± $0.25 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation

  29. Slide 29: Quarterly Non-GAAP Financials

    Quarterly Non-GAAP Financials(1) Quarterly Trend (figures in $ millions, except percentage and EPS) All figures from Continuing Operations 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue 440.9 516.3 490.7 425.0 415.5 410.0 405.3 327.5 3

  30. Slide 30: Non-GAAP Measures

    Non-GAAP Measures Detailed reconciliations of GAAP to non-GAAP financials can be found on the subsequent slides. These slides include measures, such as non-GAAP earnings per share (“EPS”), non-GAAP gross margin and other non-GAAP financial measures, that are not prepared in accordance with accountin

  31. Slide 31: Non-GAAP Reconciliation

    Non-GAAP Reconciliation ($ in thousands, except percentage and $ per share) Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items Year Ended December 31, 2017 2018 2019 2020 2021 2022 2023 2024 Gross profit from continuing operations, as reported $ 356

  32. Slide 32: Non-GAAP Reconciliation

    Non-GAAP Reconciliation ($ in thousands, except percentage and $ per share) Reconciliation of Non-GAAP measure - income excluding certain items Year Ended December 31, 2017 2018 2019 2020 2021 2022 2023 2024 Income from continuing operations, less non-controlling interest, net of income taxes $ 136,

  33. Slide 33: Non-GAAP Reconciliation

    Non-GAAP Reconciliation ($ in millions, except percentage and $ per share)

  34. Slide 34: Q3 2025 Reconciliation of GAAP to Non-GAAP Guidance

    Q3 2025 Reconciliation of GAAP to Non-GAAP Guidance

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