Vat Group Ag · SIX:VACN
Vat — Investor Presentation (2023)
38 slides from Vat's investor presentation, 2023
Slide 1: VAT Investor Deck Winter 2023
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solutions Investor Deck Winter 2023 www.vatvalve.com
Slide 2: VAT is the clear technology and market leader in vacuum valves
WAT VAT is the clear technology and market leader in PASSION. PRECISION. PURITY the vacuum valves market Sustainable long-term top-line growth driven by secular growth factors: digitalization and the data-driven society, energy transition and aging Undisputed market leadership due to technology lead
Slide 3: Q3 2023 trading update
Slide 4: Group key figures
2 g 8 R 3 = = 3 a 3 z ra 3 io} te & $ WAT Group key figures PASSION. PRECISION. PURITY. = Lower semiconductor equipment spending leads to weaker Q3 orders and sales compared to previous year; orders sequentially higher vs. Q2 and Q1 = Operating cost adjustments and preparations for return to growth
Slide 5: VAT Group Investor Deck: Q3 2023 figures by segment
2 x S} i 3 r3) VAT Group Investor D: VAT Group in CHF million Order intake Net sales Order Backlog Valves in CHF million Order intake Semiconductors Advanced Industrials Order backlog Net sales Semiconductors Advanced Industrials Inter segment sales Segment net sales Global Service in CHF million Or
Slide 6: Q2 and half-year 2023 results
Slide 7: Slowdown in semiconductor spending shows expected impact on Q2 and H1
WAT Slowdown in semiconductor spending shows expected ™*°" "5" "8" impact on Q2 and H1 orders, sales and profitability Decrease in y-o-y orders reflects lower investment activities mainly in Orders down y-o-y . een an . b iall Semiconductors; Global Service in-line with softer market conditions, esp
Slide 8: Semiconductors remain our driving force, Advanced Industrial softens down-cycle
WAT Semiconductors remain our driving force, Advanced =" "es" PRY Industrial softens down-cycle Our markets Sales breakdown by market segment 6M 2023 Sales breakdown by region 6M 2023 21% 6M 23 sales CHF 454m 20% Semiconductor ™ Advanced Industrials ~75% of VAT's m Group sales are semiconductor 6M 2
Slide 9: Strong backlog softens the blow from weak orders
Strong backlog softens the blow from weak orders Our business segments (Share of 6M 2023 net sales) Valves (79%) Global Service (21%) 292 sx 6M 2023 order intake (M CHF) 3 7 53%) 6M 2023 free cash flow (M CHF) Delivering outstanding performance 4 54 (17%) 6M 2023 net sales (M CHF) G1 (+13%) High spe
Slide 10: Strategy
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Slide 11: VAT's business units are well positioned to harness the major megatrends
a ‘o 2g (a) Ee < > VAT’s business units are well positioned to harness WAT the major megatrends Passion, PRECISION PURITY Population Growth and Aging Oi Digitalization Energy and Emissions 10011010010000001010 _—__ ed N = Strong semiconductor growth across = Energy demand with double-digit = Growing
Slide 12: Focus on four strategic priorities to sustain and accelerate performance
Focus on four strategic priorities to sustain and accelerate performance to 2027 and beyond n 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 WAT PASSION. PRECISION. PUR
Slide 13: Strong market position built on years of customer intimacy
WAT PASSION. PRECISION. PURITY. Strong market position built on years of customer intimacy and superior product design Market share Semi & related 2015 ™2016 m2017 ™2018 m2019 m™2020 m2021 m2022 ~10% 1% 9 Th if 6% 3% 3% 2% 2% 2% 1% = On RERS oe GS nee cme Ee ee oe — VAT °&mks) WTEX witzsct CKD ULVAC
Slide 14: Growth fuelled by superior product offering
Growth fuelled by superior product offering WAT VAT core competences represent both a driver of growth 9 ““°"*eson ren while holding up barriers to entry Machining & Design ¢ Programming and milling excellence, including proprietary tools ¢ Full customization available as required ¢ Engineering know
Slide 15: Growth through increase in vacuum content
Growth through increase in vacuum content WAT Leading edge growth to drive increase in vacuum- ee * related WFE .. drivi ium- h Eastescraneaiimlescinatedae driving strong medium-term growt nodes, VAT’s stronghold ... .. capital intensity expected to in overall WFE and even faster on increase from no
Slide 16: Adjacencies allow VAT to deliver additional products in the vacuum domain
WAT Adjacencies allows VAT to deliver additional products in = “ere the vacuum domain to our customers Adjacencies are fully aligned with VAT's core Adjacencies an essential element of VAT2B strate rtise: V. man micon r: 400 Advanced Modules Motion Components c. CHF300m+ 300 200 100 = Adjacencies do
Slide 17: Our valves have a long heritage: faster, cleaner, more durable
WAT Our valves have a long heritage: Faster, cleaner, more PASSION. PRECISION. PURITY durable, more precise — and continue to develop Vacuum valve performance development — vs. semiconductor development 1960 | 1970 | 1980 | 1990 2000 | 2010 2020 aN Vacuum Gate Valves Complexity increase Vacuum Contr
Slide 18: Global Services ties us closely to valve lifecycle
a © 5 Ee < WAT PASSION. PRECISION. PURITY. Global Services ties us closely to valve lifecycle Increases our reach to beyond the OEMs and closer understanding of how our valves are utilized Global Services Product Offering Upgrades & Retrofits * Upgrade & retrofit of valves and motion components Spar
Slide 19: Offers +/- 30% year-on-year ramp capability with best cost operating model
Offers +/- 30% year-on-year ramp capability while WAT PASSION. PRECISION. PURITY. maintaining a global, best cost operating model 25% flexible workforce group- wide (factory workers in CH, MY and RO) 25% 2022 2027 Best cost country sourcing is expected to reach more than 55% by 2027 compared to 25%
Slide 20: Global presence ensures proximity to the customer
WAT PASSION. PRECISION. PURITY. Global presence ensures proximity to the customer - with sales and service representations in 29 countries Innovation 2 mai ducti it ith total it Center - Haag major production sites with total capacity Site 1B - P of CHF2bn+ by 2027 : . | Site 1B-Penang | e enang Fac
Slide 21: Ambition is to move beyond valves to the broader vacuum domain
a 2 5 Ee < WAT PASSION. PRECISION. PURITY. Ambition is to move beyond valves to the broader vacuum domain - growing our SoW with customers SEMI as the CORE market and the . main technoloay driver for all OY Leverage all products and technologies gy yor) into Advanced Industrial applications products
Slide 22: VAT has a track-record of delivering on guidance
‘a 2 5 Ee < VAT has a track-record of delivering on guidance Stakeholder value proposition 2022-2027 Our sustainable value creation is based on 3 key pillars: Growth \<ill Profitability $ Capital allocation S 0 Market / WFE growth Main e Share of wallet and adjacencies drivers (3) Market share gains
Slide 23: Women
Founding member - Equal pay for equal Semiconductor Climate work Consortium Improvement Women to on the Board of Advanced Directors
Slide 24: Confirmed Strategic Directives: inaugural ESG targets
2 NX 8 J 3 8 ‘o 2g (a) Ee < > Confirmed Strategic Directives “Today we have a much better view of how our business — along the entire value chain — affects the environment, our people and society as a whole.” Dr. Martin Komischke, Chairman of the Board of Directors WAT PASSION. PRECISION. PURITY. IN
Slide 25: Welcome to VAT
Welcome to VAT High Performance Vacuum Valve & System Solutions 2023 www.vatvalve.com
Slide 26: We offer the highest standard of valves wherever vacuum is utilised
WAT We offer the highest standard of valves wherever vacuum is 55% *xecision. Purity utilised in production. Global market leader for high performance vacuum valves, = mission-critical components for advanced R&D and manufacturing = processes of semiconductors, LED, solar cells, displays and other h
Slide 27: Today's technological advances are based on production processes in a vacuum
2 g 8 R 3 = = 3 a 3 z ra 3 io} = & $ Todays technological advances are based on production processes in a vacuum. Smart homes Solar power Health care Fusion energy ee Food safety Autonomous driving a ee PASSION. PRECISION. PURITY.
Slide 28: Moore's Law has brought semiconductor manufacturing to the atomic level
WAT PASSION. PRECISION. PURITY. Moores Law has brought semiconductor manufacturing to the atomic level - no tolerance for impurities in manufacturing " Moores Law in Practice Lower energy consumption, higher performance, smaller size = Transistor Density Increases Chip design goes from 2D to 3D 48 Y
Slide 29: VAT has Accompanied Technological Advances
VAT has Accompanied Technological Advances R&D is in our DNA - technological leadership is the result. WAT PASSION. PRECISION. PURITY. Vacuum valve performance development — example ultra clean vacuum development (UCV). 1960 Degree of particle emission and particle activation as well as diffusion an
Slide 30: VAT Valves - Our Core Product
VAT Valves - Our Core Product WAT VAT offers both highly tailored valves as well as standard — sss. Precision. purity products Based on three core valve types (transfer, control & isolation) our product portfolio comprises over 140 valve series with more than 8,000 customized products and 2,500 stan
Slide 31: A tool will have multiple valves installed to control and separate vacuum
WAT A tool will have multiple valves installed to control and PASSION. PRECISION. PURITY seperate vacuum from atmosphere Vacuum Components Vacuum Valves = Load-Lock Modules (LL) * Vacuum Transfer Valves (1) = Transfer Modules (TM) * Vacuum Transfer Doors (2) * Vacuum Angle Valves (3) Vacuum Motion C
Slide 32: VAT Over the Years
VAT Over the Years WAT Our products have become faster, cleaner, more durable, —_*ss10®- precision. purvry more precise Vacuum valve performance development — example semiconductor development. 1960 | 1970 1980 1990 2000 2010 2020 Complexity increase Vacuum Control Valves in semiconductor architectu
Slide 33: Presence on the ground providing support
WAT Presence on the ground providing support PASSION. PRECISION. PURITY. = Global presence ensures proximity to the customer = Sales and Service representations in 29 countries = R&D sites: Haag (Switzerland), ° 39° San Jose CA (United States) 9 i ea . ., oO = Manufacturing sites: 8 3° ae a Haag (Sw
Slide 34: VAT Corporate History
VAT Corporate History WAT’ From family-owned valve manufacturer to global Passronspaeession ey vacuum-valve leader = Over 60 years of experience in valves and over 35 years of experience in semiconductors 1988 2012 2016 2018 2020 Entry into the Established VAT surpasses CHF Malaysia expansion >CHF 1
Slide 35: Highly experienced leadership with a track record of success
WAT Highly experienced leadership with a track record of PASSION. PRECISION. PURITY success Michael Allison Fabian Chiozza Urs Gantner Thomas Berden CEO CFO EVP Semiconductor coo Solutions Group and CEO-designate as of January 2024
Slide 36: VAT SEMI counts the leading WFE OEMs to its customer base
WAT VAT SEMI counts the leading WFE OEMs to its customer —_—_*ss10%- Precision. puriry base - delivering on highest manufacturing standards VAT is crucial to progress in semiconductor Serving Clients across the Semiconductor Value Chain manufacturing * Moore's Law continues to hold up and drives nod
Slide 37: Trusted Partner for "Big Science"
a © 5 Ee < Trusted Partner for "Big Science" VAT ADV continues work on high profile scientific projects ss stcision. purity and technologies with world-class expertise in vacuum ~ LHC hunts for the basic constituents of matter VAT sector valves help avoid leaks over the large LHC volume ) NASA’s Eur
Slide 38: Visit us at
Visit us at www.vatvalve.com