Vat Group Ag · SIX:VACN

Vat — Investor Presentation (2022)

39 slides from Vat's investor presentation, 2022

  1. Slide 1: VAT - Global leaders in Vacuum Valve Technology

    WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - Global leaders in Vacuum Valve Technology Investor Deck - Summer/Fall 2022 www.vatvalve.com

  2. Slide 2: VAT at a glance

  3. Slide 3: The VAT Advantage

    (12) The VAT Advantage WAT" We deliver outstanding customer value in vacuum PASSION: PRECISION. PURITY solutions & are the partner of choice WW Deep Semi expertise We have deep expertise in the semiconductor industry - Broad technology Our product portfolio comprises ~140 valve series with TT portfo

  4. Slide 4: Specification wins and strong business execution drive record 6M 2022 results

    Specification wins and strong business execution drive record 6M 2022 results Our business segments Delivering outstanding performance (Share of 6M 2022 net sales) Valves 649 (+31%) 549 (432%) (82%) aly? Tite Half-year 2022 order _—Half-year 2022 net a €; intake (M CHF) sales (M CHF) oo Rg Seve 79 o

  5. Slide 5: Our markets

    Our markets Semiconductors are our driving force Sales breakdown by market segment 6M 2022 18% ~75% of VAT's Group sales are semiconductor 12% related 62% 7% | Semiconductor ™ Display & Solar @ Advanced Industrials ® Global Sevice WAT PASSION. PRECISION. PURITY. Regional Sales Breakdown 6M 2022 18%

  6. Slide 6: Market share by segment 2015-2021

    75% 70% 65% 65% 63% 62% 61% 58% 57% 56% 55% 55% 54% 53% 49% 49% 47% 46% 45% 41% 39% 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021

  7. Slide 7: Market share development 2015-2020

    60% 2015 2016 2017 2018 2019 2020 50% 40% 30% 20% 10% 0%

  8. Slide 8: What drives VAT's business

  9. Slide 9: WFE development and forecast in USD bn

    WFE development and forecast in USD bn 140 120 100 80 60 40 20 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2025 Dec 2021 Dec 2020  

  10. Slide 10: Machines generate a multitude of human generated data

    WAT PASSION. PRECISION. PURITY Machines generate a multitude of human generated © data —- fueling growth in IC production IC production development Data generation by category 1984 -2026 Cin Zeta Bytes 1021) eer tt SSRSSSSARSERSESSSSIBSHSSEBS Human ™ Machine Semi unit shipments (billion) semi Sales

  11. Slide 11: Silicon content grows constantly and technology advances increase capital intensity

    Silicon content grows constantly and technology 1, advances increase capital intensity 2015 2020 2025 nore 2020 nove 2008 a High-End Smartphone $100 $170 = $275 11.2% 10% (mmr) Auto (global average) $310 $460 $690 8.2% 8% Jeb arn $1620 $2810 $5600 11.6% 15% fi we $2 $489 H9% 18% Source: Applied Mate

  12. Slide 12: The VAT way forward

    The VAT way forward WAT Investments in leading edge continue to dominate; ee ™) VAT semi business to outperform overall WFE growth 2022 Wafer Fab Equipment (WFE) spend 2022 Wafer Fab Equipment (WFE) spend by node size by IC type USD 107bn Growth Y-0-Y USD 89bn +42% +10% +12% 2021 2022E 2021 2022E Le

  13. Slide 13: Net sales by segment

         Semi Display & Solar Advanced Global Service Total Industrials 2016 2017 2018 2019 2020 2021 6M 2021 6M 2022

  14. Slide 14: The VAT advantage

  15. Slide 15: VAT is the undisputed market leader in the strongly growing vacuum valves market

    WAT VAT is the undisputed market leader inthe strongly ““"™%™™ | growing & highly profitable vacuum valves market VAT benefits from key megatrends driving sustainable long-term growth 423 VAT is the undisputed market leader due to technology leadership, deep application expertise, global scale and c

  16. Slide 16: Strong growth of semiconductors is cascaded down to strongly increasing demand in valves

    The VAT advantage WAT Strong growth of semiconductors is cascaded downto" ——— strongly increasing demand in valves Strong growth expected in ..translating to more advanced ..with vacuum requiring process semiconductor end-markets... production technologies steps increasing Strongest 64 VAT’s <7nm 94

  17. Slide 17: VAT is agnostic to the different IC types

    The VAT advantage WAT VAT is agnostic to the different IC types as we provide” products and services to all manufacturing processes Wafer Fab Equipment (WFE) spend 2022 Wafer Fab Equipment (WFE) spend by IC type breakdown by IC type 120 100 80 ee ee — 0 2016 2017 2018 2019 2020 2021 2022 MAdv.foundr

  18. Slide 18: Our strategic priorities

  19. Slide 19: Good progress on all four 2025 strategic priorities

    Good progress on all four 2025 strategic priorities © communicated at the 2020 capital markets day Our claim in December 2020 WAT PASSION. PRECISION. PURITY ial Gain market share in valves Ox \wy CD Grow our service business Advance into adjacencies & connected VAT @ tot Improve operational footprin

  20. Slide 20: We will continue to gain market share in valves

    Our strategic priorities We will continue to gain market share in valves Market share in valves to further increase in next-gen tools... ~ ra Legacy tools Current tools Next-gen tools WAT PASSION. PRECISION. PURITY. ..based on our strong specification wins across all our businesses and especially in

  21. Slide 21: We will continue to grow our unique service business

    WAT We will continue to grow our unique service business ““""™"""™"" Our service business is based on a strong foundation... Rapidly expanding installed base of over 1.1m repairable valves (10% CAGR of installed base since 2000) & Largest service network in the industry (8 service centers worldwide)

  22. Slide 22: Execute our four strategic pillars - deliver higher performance

    WAT PASSION. PRECISION. PURITY Execute our four strategic pillars - deliver higher * performance VAT’s strategic priorities @) y/\N ; Z| Ey @., oll Gain market share in valves Grow our service business Advance into adjacencies & connected VAT Improve operational footprint Our new targets for 2025 Ac

  23. Slide 23: Outlook rest of 2022

  24. Slide 24: All our markets are expected to continue their growth path in H2 2022

    All our markets are expected to continue their growth ya ~=©path in H2 2022 with the exception of displays Continued high investment needs driving WFE to another growth year of about +20% WAT PASSION. PRECISION. PURITY. FY 2022 expected market growth VAT H1 2022 Performance! Capturing market growth,

  25. Slide 25: Continued strength in VAT's business, another record year expected for 2022

    WAT PASSION. PRECISION. PURITY. Continued strength in VAT’s business, another record year expected for 2022 = Strong investments in semiconductor equipment expected to continue; growth also forecast in industrial markets; Global Service segment to benefit from growing installed base and high capacit

  26. Slide 26: Financial performance H1 2022

  27. Slide 27: Group key figures

    Group key figures Orders CHF 649m +31% Net income CHF 148m +52% Net sales CHF 549m +32% WAT PASSION. PRECISION. PURITY EBITDA CHF 192m (+39%) EBITDA margin 35.0% (+1.8ppt) Leverage (Net debt/LTM EBITDA) 0.5x

  28. Slide 28: Half-year order intake +31% yoy

    Half-year order intake +31% yoy Half-year order backlog +156% yoy Q2 order intake +40% yoy 1Order backlog as of June 30, 2021 and June 30, 2022

  29. Slide 29: Strong order momentum continues; sales growth supported by capacity increases

    WAT Strong order momentum continues; sales growth Passion PRECISION pURITY *) supported by capacity increases in CH and MY 450 1.60 400 1.40 350 ~~ 120 300 1.00 250 vn 0.80 200 0.60 151 5 0.20 0 0.00 Q12018 Q22018 Q32018 Q4 2018 Q12019 Q22019 Q32019 Q4 2019 Q12020 Q2 2020 Q3 2020 Q4 2020 Q12021 Q220

  30. Slide 30: Q2 net sales, half-year net sales, half-year EBITDA

    549 416 286 224 192 138 2021 2022 Q2 net sales Half-year net sales Half-year EBITDA 

  31. Slide 31: Margin improvement despite significant cost increases

    WAT PASSION. PRECISION. PURITY Margin improvement despite significant cost increases =| show VAT’s operational excellence "ee. 600 EBITDA 35.0% [io 500 35% 400 32% 300 29% 200 26% ° L | | L | [| | - ) a | 20% H12018 H2 2018 H12019 H2 2019 12020 H2 2020 H12021 H2 2021 H12022 Net Sales MNMEBITDA ==EBI

  32. Slide 32: Invested capital, NOPAT and free cash flow

    600 60% 500 50% 400 40% 300 30% 200 20% 100 10% 0 0% 2015 2016 2017 2018 2019 2020 2021 6M 2022 Invested Capital USDm NOPAT (LTM) USDm Free Cash Flow (LTM) USDm ROIC % CROIC % WACC %   • • •

  33. Slide 33: Substantial increase in net income

    33 Substantial increase in net income WAT PASSION. PRECISION. PURITY . a 6M 2021 in CHF million 6M 2022) 1 Change restated EBITDA 192.1 138.3 38.9% Depreciaton and amortization -20.0 -20.3 -16% EBIT 1721 118.0 45.8% Finance net 0.0 -25 -99.5% EBT 1721 115.6 48.9% Income tax expenses -24.5) -18.6 Eff

  34. Slide 34: Record free cash flow despite TWC requirements and higher capex

    Record free cash flow despite TWC requirements and =», higher capex to support growth Free cash flow development 95 6 n m. 6M 2021 6M 2022 Cash flow from operating activities ™ Cash flow from investing activities ™ Free Cash Flow WAT PASSION. PRECISION. PURITY Free cash flow conversion 100% 91% Aver

  35. Slide 35: Seasonally higher net debt due to dividend payment in May 2022

    Seasonally higher net debt due to dividend payment in WAT PASSION. PRECISION. PURITY 25, May 2022; remains below 1x net debt/EBITDA Net debt development 295 8g 290 ap 6M 2021 6M 2022 Gross debt ™ Cash and cash equivalents Net debt = Solid net debt position despite TWC requirements to support growth

  36. Slide 36: Outstanding H1 2022; full-year 2022 results expected to be substantially above 2021

    WAT Outstanding H1 2022; full-year 2022 results expected “"" «| tobe substantially above 2021 Achievements H1 2022 VAT continued to fully capture the strong market conditions both in semiconductor (valves and service) and advanced industrial activities based on innovation, market leadership and exec

  37. Slide 37: Other information

    WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY Other information www.vatvalve.com

  38. Slide 38: Second Quarter & Half-Year 2022 Results

    Second Quarter & Half-Year 2022 Results

  39. Slide 39: Second Quarter & Half-Year 2022 Results

    Second Quarter & Half-Year 2022 Results

VAT Group — Investor Presentation (2022) on 6ix