Slide 1: VAT - We change the world with vacuum solutions
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solutions Investor Deck Spring 2023 www.vatvalve.com
Slide 2: VAT is the clear technology and market leader
WAT VAT is the clear technology and market leader in PASSION. PRECISION. PURITY the growing and profitable vacuum systems market 20006 VAT actively captures key megatrends to drive sustainable long-term growth VAT is the undisputed market leader due to technology leadership in all fab vacuum applica
Slide 3: Key figures FY 2022
Slide 4: Group key figures
Group key figures Orders CHF 1,210m -2% Net income CHF 307m +41% Net sales CHE 1,145m +27% WAT PASSION. PRECISION. PURITY. EBITDA CHF 400m (+30%) EBITDA margin 35.0% (+0.8ppt) Leverage (Net debt/LTM EBITDA) Ox (-0.2x)
Slide 5: Record results in 2022
WAT Strong market conditions, growth initiatives and PASSION: PRECISION. PURITY operational execution led to record results in 2022 AVA Order intake in 2022 only marginally below exceptional 2021 level; Order activity : —. : ined high in 2022 reduced Q4 order intake indicates semiconductor market De
Slide 6: Specification wins and flawless business execution drove record 2022 results
Specification wins and flawless business execution drove record 2022 results Our business segments (Share of 2022 net sales) Valves (81%) Global Service (19%) any? Fou" Delivering outstanding performance 1,21 O (-2%) Full-year 2022 order intake (M CHF) 228 cr Record full-year free cash flow (M CHF)
Slide 7: Our markets
Our markets WAT Semiconductors are our driving force; strong growth =" "Fes" reer propelling service business close to 20% of sales Sales breakdown by business units 2022 Regional sales breakdown 2022 19% >75% of VAT’s 12% sales are semiconductor related 1% 26% 63% 62% 6% MAPAC BAmericas BEMEA ™Semi
Slide 8: 2023 market expectations and outlook
Slide 9: Semi supply chain issues stretching into 2023
WAT Semi supply chain issues stretching into 2023; memory **°" "7°" the lowest segment Semiconductor Market 2022 2023 = Supply chain constraints easing into 2023 but remain Semiconductor IC! 46% 6% high in certain key areas like ICs = Advanced logic and foundry investments expected to Semiconductor
Slide 10: Most of our markets are expected to slow down in 2023
WAT PASSION. PRECISION. PURITY. After three years of unprecedented growth, most of our markets are expected to slow down in 2023 2023 expected market growth VAT 2023 Performance! WFE decline to impact Semi Lower investment needs mainly in memory while performance; expected market share Semi logic/fo
Slide 11: Net sales by segment 2016-2022
▪ ▪ ▪ ▪ Semi Display & Solar Advanced Global Service Total Industrials 2016 2017 2018 2019 2020 2021 2022 ▪
Slide 12: Challenging 2023; VAT best positioned to weather cycle
WAT Challenging 2023; VAT best positioned to weather PASSION. PRECISION, PURITY. cycle; unwavering investments in innovation and future capacity = Investment conditions for Semiconductor segment expected to moderate after three years of unprecedented growth = Further growth forecast in Advanced Indu
Slide 13: Strategic pillars
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Slide 14: Four strategic priorities to sustain and accelerate performance
VAT focuses on four strategic priorities to sustain and WY TT accelerate performance to 2027 and beyond Lax Bie Gain market share in all our core businesses and markets Expand Share of Wallet (SoW) with adjacencies VAT2B: Build strong capabilities and further improve operational excellence PASSION.
Slide 15: Business units positioned to harness major megatrends
VAT’s business units are well positioned to harness WAT the major megatrends Passion, PRECISION PURITY Digitalization Energy and Emissions Population Growth and Aging Oi 10011010010000001010 ae) ——— 7’ = Strong semiconductor growth across = Energy demand with double-digit = Growing demand in biotech
Slide 16: Semiconductor sales expected to reach USD 1.0-1.3 trillion
Due to growing digitalization, semiconductor sales WY TT are expected to grow to reach USD 1.0-1.3 trillion VAT Semiconductor end markets Personal computing Smartphone Consumer electronics Wired and wireless infrastructure Automotive End-market ; ; growth fuels Industrial electronics IC volumes Serv
Slide 17: Strong growth of leading-edge semiconductors increases vacuum content
Strong growth of leading-edge semiconductors is WAT cascades down to increasing vacuum content Passion. PRECISION. PURITY .. drivi ium- h Eastescraneaiimlescinatedae driving strong medium-term growt nodes, VAT’s stronghold ... .. capital intensity expected to in overall WFE and even faster on increa
Slide 18: Increase customer value and share of wallet
Our strategy is to increase customer value and SoW WAT by expanding into sub-systems and complementary =" "*srsen rey technologies SEMI as the CORE market and the ; - aY main technology driver for all eS products and solutions Leverage all products and technologies into Advanced Industrial applicati
Slide 19: Strong business fundamentals create a sustainable investment story
VAT’s strong business fundamentals create a sustainable investment story WAT PASSION. PRECISION. PURITY. im 6=©6@ Stakeholder value proposition 2023-2027 Our sustainable value creation is based on 3 key pillars: Growth \<ill Profitability $ Capital allocation S 0 Market / WFE growth Main e Share of
Slide 20: Detailed financial performance 2022
Slide 21: Group key figures
Group key figures Orders CHF 1,210m -2% Net income CHF 307m +41% Net sales CHE 1,145m +27% WAT PASSION. PRECISION. PURITY. EBITDA CHF 400m (+30%) EBITDA margin 35.0% (+0.8ppt) Leverage (Net debt/LTM EBITDA) Ox (-0.2x)
Slide 22: Full-year order intake -2% yoy
Full-year order intake -2% yoy Year-end order backlog +12% yoy Q4 order intake -43% yoy 1Order backlog as of December 31, 2021 and December 31, 2022
Slide 23: Order momentum continues to weaken
23 WAT Order momentum continues to weaken; sales remained sion. excision. purity on healthy level on backlog execution 500 w= - 180 450 1.60 400 - 1.40 * 350 - 120 z oo NS 1.00 150 0.60 50 | 0.20 0 0.00 Q1 2018 Q2 2018 G3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 202003 202004 2020 Q1
Slide 24: Q4 net sales, full-year net sales, full-year EBITDA
1'145 901 400 308 291 255 2021 2022 Q4 net sales Full-year net sales Full-year EBITDA ▪
Slide 25: Record full-year margin of 35%
WAT Record full-year margin of 35% despite persisting Passton: PREGISION. PURITY ~ inflationary cost pressure 700 38% 35% 32% 29% Net sales (in CHF million) & o 26% "I »tttld-: , of FF a ££ sS&E 20% H12018 H2 2018 12019 H2 2019 12020 H2 2020 12021 H2 2021 12022 H2 2022 Net Sales Mmm EBITDA ====EBITD
Slide 26: Invested capital, NOPAT, free cash flow, ROIC
700 70% 600 60% 500 50% 400 40% 300 30% 200 20% 100 10% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 Invested Capital CHFm NOPAT (LTM) CHFm Free Cash Flow (LTM) CHFm ROIC % CROIC % WACC % ▪ ▪ • • •
Slide 27: Lower deductions below EBITDA yield record net income
27 Lower deductions below the EBITDA line yield in record net income WAT PASSION. PRECISION. PURITY. in CHF million 2022! EBITDA 400.4) Depreciaton and amortization a OS “41.0 EBIT 359.4) Finance net -3.0 EBT 356.4) Income tax expenses -49,7| Effective Tax Rate -13,9%| Net income 306.8 2021 Change 3
Slide 28: Free cash flow conversion
Free cash flow conversion 100% 91% 88% 86% 79% 69% 70% 64% 57% 58% 57% 51% 42% 44% 39% 41% 2015 2016 2017 2018 2019 2020 2021 2022 ▪ ▪
Slide 29: 1.9 1.5 1.4 1.3 1.1 0.9 0.9 0.8 0.8 0.7 0.7 0.6 0.3 0.1
1.9 1.5 1.4 1.3 1.1 1 0.9 0.9 0.8 0.8 0.7 0.7 0.6 0.3 0.1 ▪ ▪ ▪ ▪
Slide 30: Outstanding full-year performance; 2023 expected below 2022
WAT Outstanding full-year performance; record results for ““""*s°"""" 30 most KPIs; 2023 expected to be below the 2022 levels Achievements 2022 VAT continued to fully capture the strong market conditions both in semiconductor (valves and service) and advanced industrial activities based on innovatio
Slide 31: VAT - We change the world with vacuum solutions
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solution Investor Deck Spring 2023 www.vatvalve.com