Vat Group Ag · SIX:VACN
Vat — Investor Day (May 2025)
60 slides from Vat's investor day presentation, May 20, 2025
Slide 1: Capital Markets Day 2025
Capital Markets Day 2025 Empowering your tomorrow May 20, 2025
Slide 2: Agenda
Agenda 01 Introduction Urs Gantner, CEO 02 Market drivers Urs Gantner, CEO 03 Toolkit for success Urs Gantner, CEO 04 Growth strategy Finn Felsberg, EVP Semiconductor Solutions Group 05 Financial outlook Fabian Chiozza, CFO 06 Q&A session 2 May 2025 VAT Capital Markets Day 2025
Slide 3: Forward-looking statements
VAT Capital Markets Day 2025 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
Slide 4: 01 Introduction
01 Introduction Urs Gantner, CEO
Slide 5: Exciting growth story ahead for VAT
Exciting growth story ahead for VAT An update on VAT’s continuing 60-year success story • VAT is powering the next wave of semiconductor innovation and will outgrow the WFE market by up to 2x, which in turn is outgrowing GDP by a VAT outgrowing WFE by up to 2x similar margin • The USD 1 trillion sem
Slide 6: VAT turned 60 in 2025
VAT turned 60 in 2025 6 May 2025 VAT Capital Markets Day 2025
Slide 7: Reflections on key strengths laid out by VAT's founder
Reflections on key strengths laid out by VAT’s founder Siegfried Schertler established the foundation of the DNA of today’s VAT Key strengths of VAT products described by Siegfried Schertler in a 1979 strategy paper Customer focus Built to customer Pricing specification, considering According to the
Slide 8: 02 Market drivers
02 Market drivers Urs Gantner, CEO
Slide 9: VAT is an integral part of the semi supply chain
VAT is an integral part of the semi supply chain VAT is in a unique position in the semi supply chain as a mission-critical subsystem provider – not overtly exposed to customer cycles, but more to capex cycles Companies (selected) Key drivers • Disposable income, interest rates Consumers • Product r
Slide 10: Underlying drivers of growth
Underlying drivers of growth VAT set to outgrow underlying markets thanks to higher exposure to accelerating market segments and the higher percentage of vacuum applications in the overall WFE spend Semiconductor market expected to grow to over USD 1T Market outgrowth driven by three factors (Semico
Slide 11: WFE remains the best proxy for underlying VAT market growth
WFE remains the best proxy for underlying VAT market growth Market consensus for WFE 2025 indicates a temporary plateau at record levels. VAT expects to outgrow WFE because of its higher share of wallet (SoW) in leading edge Short- term drivers Long-term drivers 9% 10% 9% 10% 6% • 2nm/GAA introducti
Slide 12: Share of vacuum related WFE is growing
Share of vacuum related WFE is growing VAT benefits disproportionately from processes moving into vacuum environments as well as WFE spend related to leading-edge chips Vacuum-related WFE growing… …as is WFE for leading-edge chips Drivers 180 180 • Node size progression (Moore’s Law) and GAA archite
Slide 13: Technology transition: GAA/2nm
Technology transition: GAA/2nm Move to smaller design rule seen as one of the most important technology milestones in semi manufacturing. Acceleration of manufacturing volumes to start late 2025/early 2026 2nm (and below) to be a major node development (expected annual 2nm wafer starts) • Introducti
Slide 14: GAA process complexity increases VAT content
GAA process complexity increases VAT content More leading-edge process steps demand advanced tool designs with more vacuum chambers, resulting in higher VAT share of wallet through high-purity valves, advanced modules and motion components Collocated tools Integrated tools • Increase in process step
Slide 15: Vacuum remains crucial to semiconductor manufacturing
Vacuum remains crucial to semiconductor manufacturing At the nanometer levels of today’s manufacturing, UHV environments are crucial to shaping precise structures and precise control of the manufacturing processes Challenges for the chip industry VAT’s ultra-high vacuum environments are unique Impac
Slide 16: Market growth towards USD 1 trillion; VAT will leverage off 2nm technology to outgrow WFE
Market growth towards USD 1 trillion; VAT will leverage off 2nm technology to outgrow WFE by factor 2x Market growth is intact Technology is shifting VAT set to benefit from exposure • USD 1 trillion market in 2030E is intact, • GAA/2nm chips are starting to be • VAT set to benefit from AI-fueled ev
Slide 17: 03 Toolkit for success
03 Toolkit for success Urs Gantner, CEO
Slide 18: We have outgrown our competition and will continue to do so
We have outgrown our competition and will continue to do so The focus on vacuum valves was the basis for VAT to outgrow our competition. Our aim of creating value for our customers and their deep-seated trust fuel VAT's further growth Market share, semi and related(1) • Since 2015, VAT has grown its
Slide 19: VAT's success is based on its superior toolkit
VAT’s success is based on its superior toolkit VAT’s DNA consists of four key competencies that were developed in the course of its history and are actively nurtured and crucial for future success Customer focus Technology leadership • Laser-focus on customers • Uncontested #1 in vacuum valve • Pure
Slide 20: Our customer focus throughout our history
Our customer focus throughout our history Challenges from our customers drive our engineers, and we have always delivered best-in-class solutions 60-year partnership: CERN particle accelerators From simple isolation valves to control valves • CERN was VAT’s 2nd • Initial VATLOCK technology customer
Slide 21: Customer focus throughout the organization
Customer focus throughout the organization VAT puts its customers at its core, supported by product teams and research engineers R&D and technology End-to-end value chain • VAT’s vacuum valve technology • Complete portfolio of valves and is the main reason our adjacent products customers come to us
Slide 22: Translating customer requirements into products
Translating customer requirements into products For VAT, spec wins are a key measure of performance achievement and future growth potential. They reflect our competitive advantage in technology and value proposition Understanding core customer objectives • World-leading vacuum design partner with fi
Slide 23: Enhancing customer's sustainability performance
Enhancing customer’s sustainability performance VAT supports its customers in meeting their sustainability goals • Improved valve performance for enhanced production throughput Enhanced vacuum 1 • Improves efficiency, extended uptime and reduced leakage performance • Reduced environmental impact in
Slide 24: Technology leadership in vacuum design
Technology leadership in vacuum design VAT’s significant R&D spend translates into technology advances that result in spec wins and future business opportunities R&D spend R&D vectors Spec wins secure future growth (VAT technology has immediate customer benefits) (Visibility of customer business 2 t
Slide 25: VAT performance improves constantly
VAT performance improves constantly Customers appreciate valve outperformance in precision, speed, and particle count which result in higher yield and throughputs in the chip manufacturing process VAT offers superior valve speed Slow motion Particle counts continuously reduced Min. m particle size 2
Slide 26: VAT products are found in many areas of manufacturing
VAT products are found in many areas of manufacturing Starting from its core, VAT provides all valve types to its customers, and has also expanded its offering into adjacencies such as advanced modules, motion components, and ALD valves 26 May 2025 VAT Capital Markets Day 2025
Slide 27: Flexible operating model provides resilience
Flexible operating model provides resilience VAT is exposed to the highly cyclical semi market. Our flexible operating model is a pre-requisite to manage volatility in the semi market Flexible workforce Best cost country sourcing Ability to manage cost base flexibly Resilience through the cycle (up
Slide 28: We invest ahead of the cycle
We invest ahead of the cycle VAT’s capacity expansions in Malaysia and in Romania are progressing well ahead of the potential market ramp Romania • Increases capacity in machining as internal supplier • Focus on specific competencies required by our customers Malaysia 1B • Doubles plant 1A capacity
Slide 29: Skills and know-how are key resources
Skills and know-how are key resources In-house retention and development of skills are crucial barriers to entry to VAT’s core markets. The apprenticeship system is a differentiator for VAT and is deployed in Malaysia Core VAT competencies HR needs based on future growth areas Swiss apprenticeship m
Slide 30: Our intimate relationship with customers, a demonstrated technology advantage, flexibility and the right skills
Our intimate relationship with customers, a demonstrated technology advantage, flexibility and the right skills deliver growth It starts with our customers Technology beats hurdles Flexibility is important Skills and capabilities • Customer centricity and • VAT’s technology • VAT offers customers a
Slide 31: 04 Growth strategy
04 Growth strategy Finn Felsberg, EVP Semiconductor Solutions Group
Slide 32: VAT has a clear growth path ahead
VAT has a clear growth path ahead Based on an entrenched position in core semi products, with additional growth from adjacencies, services, and advanced industrials products Before 2024: focus on core 2025 to 2029: grow adjacencies Beyond 2030: further growth Leader in vacuum valves Leader with vacu
Slide 33: Over 50% of VAT's group sales will be generated in semi valves
Over 50% of VAT’s group sales will be generated in semi valves VAT achieved high market share and technology leadership in core valve products. Technology will ensure that VAT continues to deliver best customer value add over the product life cycle Core semi products Semi-related valves to remain VA
Slide 34: Valves for new OLED production are a recent big win for VAT
Valves for new OLED production are a recent big win for VAT Providing valves used for OLED evaporators to the market leader is testament to VAT’s technology leadership and represents a large spec win Case study on valves for displays • VAT won the spec win for the market leader in OLED display manuf
Slide 35: Adjacencies deliver SoW growth in high-spec products
Adjacencies deliver SoW growth in high-spec products VAT’s technology is provided to customers through high-spec adjacent products that allow share-of-wallet growth beyond the core valve market Adjacent products set to represent up to 20% Expanding our customer offering beyond valves of group sales
Slide 36: Technology advantage results in share-of-wallet growth
Technology advantage results in share-of-wallet growth 36 May 2025 VAT Capital Markets Day 2025
Slide 37: Global Service adds to VAT's outgrowth
Global Service adds to VAT’s outgrowth Service offering to outgrow semi market development and leverages the semi business large installed base towards our customers and IDMs Strong and growing presence in VAT core markets Service expected to remain around 18% to 20% of group sales Gates and Upgrade
Slide 38: Global Service adds to end-to-end value chain offering
Global Service adds to end-to-end value chain offering Service offering complements VAT’s end-to-end value proposition. Sustainability-driven upgrades as an additional growth driver Service revenue generated on basis of installed VAT valves, retrofits, and adjacencies offering Cost performance VAT r
Slide 39: Advanced Industrials grows in non-semi vacuum applications
Advanced Industrials grows in non-semi vacuum applications Business to grow substantially by leveraging existing semi products into selected profitable market segments. VAT remains front-footed in applications requiring vacuum Business model benefits from technology developments in semi Advanced Ind
Slide 40: Advanced Industrials offers additional growth avenues
Advanced Industrials offers additional growth avenues Advanced Industrials operates in fragmented high-vacuum niche markets representing VAT’s roots at the pulse of next-gen vacuum applications Advanced Industrials expected to grow >12% (2024 to 2029E CAGR) Research Scientific instruments Coating Ta
Slide 41: Continued strong growth in core semi valves. Additional market outgrowth from adjacencies, services and advanced industrials
Continued strong growth in core semi valves. Additional market outgrowth from adjacencies, services and advanced industrials Further profitable growth through Growth in core to continue Expanding SoW through adjacencies Global Service and Advanced Industrials • >50% of total group sales • Adjacencie
Slide 42: 05 Financial outlook
05 Financial outlook Fabian Chiozza, CFO
Slide 43: Strong growth and market share gains across all business units
Strong growth and market share gains across all business units WFE growth, technology transition, and share of wallet expansion driving double-digit growth CAGR Core >15% Market share Semiconductors CAGR Adj. >25% increase • Core semi valves to deliver >50% of growth, supported by adjacencies Core 7
Slide 44: Capacity expanded ahead of the curve to harness future growth
Capacity expanded ahead of the curve to harness future growth Major capex programs have been completed in preparation for next growth phase. Sufficient installed capacity for >CHF 2.4 billion of sales Net capex Installed manufacturing capacity (in CHF million) (in CHF million) Utilization 80 10% Haa
Slide 45: Capital deployment strategy: allocation priorities unchanged
Capital deployment strategy: allocation priorities unchanged Three-pillar cash investment strategy reflects our strategic priorities of investing ahead of the curve, focusing on technology and attractive cash returns to shareholders Cash deployment history since IPO Guidance for 2025E to 2029E 2016
Slide 46: CFO agenda
CFO agenda Enforce our proven flexible operating model to provide further resilience in uncertain times Benefit from digital transformation and enable future growth opportunities VAT2B – our corporate and Investing ahead of the curve digital transformation program Cost discipline and FX Balance shee
Slide 47: Attractive gross profit …
Attractive gross profit … VAT has consistently generated higher gross profit margins over time, evidencing our relentless focus on operational excellence and application of proven flexible operating model Net sales (in CHF million) + 6 ppts 2'000 70% 66% 1'500 64% 65% 63% 63% 62% 62% 62% GPM target
Slide 48: …translating into strong EBITDA margins through the cycle
…translating into strong EBITDA margins through the cycle Strong operational leverage despite R&D investments to enhance technology advantage Net sales (in CHF million) EBITDA target 2'000 band: 30% to 37% 40% 1'500 35% 1'000 30% 500 25% 0 20% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029E Net s
Slide 49: VAT consistently generates strong FCF through the cycle
VAT consistently generates strong FCF through the cycle Footprint investment programs funded through strong FCF generation. ERP/transformation efforts enabling extension of FCF conversion guidance range from 65% to 70% Free cash flow conversion (in %) 91% 86% Guidance range: 60% to 70% 70% 70% 64% 6
Slide 50: Sales 2024 to 2029E: outgrowing WFE by approx. 2x
Sales 2024 to 2029E: outgrowing WFE by approx. 2x Our core semi portfolio is expected to deliver up to 50% of our mid-term growth. Adjacencies will contribute around 50% of the remaining growth Growth in core semis, further expansion of SoW through adjacencies • Constant currency basis • CMD 2025 as
Slide 51: Strong business fundamentals support an attractive investment
Strong business fundamentals support an attractive investment Stakeholder value proposition 2025 to 2029E is based on three key pillars Growth Profitability Capital allocation 1 One trillion market 1 Operational excellence 1 Leading edge innovation Cycle management with flexible Main drivers 2 Vacuu
Slide 52: A Q&A session
A Q&A session
Slide 53: Q&A session
Q&A session
Slide 54: B Outro
B Outro
Slide 55: Group targets for 2025 to 2029E
Group targets for 2025 to 2029E Our strategy and the resulting financial performance are a unique combination of our focus on profitable growth and the resulting ability to return excess cash to shareholders Sales growth (CAGR): Key guidance EBITDA margin corridor: FCF conversion: Low to mid teens p
Slide 56: Exciting growth story ahead for VAT
Exciting growth story ahead for VAT An update on VAT’s continuing 60-year success story VAT outgrowing WFE by up to 2x VAT’s growth accelerated by advanced logic – GAA technology transition Vacuum-related WFE (12%) growing faster then WFE (8%) VAT solutions powering spec wins and share of wallet inc
Slide 57: C Glossary
C Glossary
Slide 58: Glossary
Glossary ALD Atomic layer deposition CAGR Compound annual growth rate. Annualized average rate of revenue growth between two given years. Calculated taking the data points of the first and last year (2024 and 2029E); e.g., 2024 to 2029E represents a 5-year CAGR EPD Environmental product declaration
Slide 59: Additional information
Additional information Investor information Contact information Listing: SIX Swiss Exchange Michel Gerber Christopher Wickli Currency: CHF VP Sustainability and Investor Relations Ticker symbol: VACN Investor Relations Manager ISIN: CH0311864901 Phone: +41 81 553 70 13 Phone: +41 81 553 75 39 michel
Slide 60: Thank you!
Thank you! VAT Vakuumventile AG Rütistrasse 4 9469 Haag, Switzerland +41 81 771 61 61 ch@vatgroup.com