Vat Group Ag · SIX:VACN
Vat — H1 2021 Earnings Presentation
26 slides from Vat's earnings presentation, 2021
Slide 1: Second quarter and half-year 2021 results
WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - Global leaders in Vacuum Valve Technology Second quarter and half-year 2021 results www.vatvalve.com
Slide 2: Highlights
Second Quarter and Half-Year 2021 Results Highlights Mike Allison, CEO Fabian Chiozza, CFO Mike Allison, CEO
Slide 3: Strong Q2 business execution
Second Quarter and Half-Year 2021 Results Strong Q2 business execution Strong H1 order intake Record performances Strong operational performance Optimistic 2021 outlook Record Q2 and half-year 2021 results; very positive 2021 outlook confirmed Strong Q2 results driven by record quarter in Global Ser
Slide 4: Market share gains and strong business execution drive 6M 2021 results
Second Quarter and Half-Year 2021 Results Market share gains and strong business execution drive 6M 2021 results Our business segments Valves Global Service Delivering outstanding performance Half-year 2021 order Half-year 2021 net intake (M CHF) sales (M CHF) Record half-year free Strong specificat
Slide 5: Semiconductor are our driving force
Second Quarter and Half-Year 2021 Results Semiconductor are our driving force Sales breakdown by market segment 6M 2021 19% \ \ 15% > % 59% 7% Semiconductor Display & Solar Advanced Industrials Global Sevice Regional Sales Breakdown 2020 32% 15% APAC Americas EMEA 53%
Slide 6: 74% 70% 65% 65% 63% 62% 61% 58% 57% 56% 55% 55% 54% 53%
74% 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 6M 2021 2015 2016 2017 2018 2019 2020 6M 2021 2015 2016 2017 2018 2019 2020 6M 2021
Slide 7: Strong growth trends across Semi, Advanced Industrials and Global Service
Second Quarter and Half-Year 2021 Results Strong growth trends across Semi, Advanced Industrials and Global Service Strong growth as recovery continues, WFE expected to be up >30% to about USD 85bn; all segments (memory, foundry and advanced logic) growing Technology advances continue driven by EUV
Slide 8: Quarter and half-year 2021 financial review
Second Quarter and Half-Year 2021 Results Second quarter and half-year 2021 financial review Mike Allison, CEO Fabian Chiozza, CFO Mike Allison, CEO
Slide 9: Group key figures
Group key figures PASSION. PRECISION. PURITY EBITDA CHF 141m (+49%) EBITDA margin 33.9% (+4.2ppt) Orders CHF 494m +38% g @ g [4 S ro} x] s S a Ss Net income Leverage CHF 99m (Net debt/LTM EBITDA) +78% 0.8x Second Quarter ai
Slide 10: Half-year order intake +38% yoy
Half-year order intake +38% yoy Q2 order Half-year intake order backlog +43% yoy +42% yoy 1Order backlog as of June 30, 2019 and June 30, 2020
Slide 11: Strong order momentum continues; sales growth supported by capacity ramp in Malaysia
Second Quarter and Half-Year 2021 Results Strong order momentum continues; sales growth supported by capacity ramp in Malaysia one 150 pan ") L | 1.20 150 Ee | ee ee | i eo | om | ee | emneX¢) 100 — a ee ee ee | ee | ee | | | | i | lol) 50 0.30 () 0.00 Q12018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Slide 12: Record EBITDA and EBITDA-margin due to operational leverage
Record EBITDA and EBITDA-margin due to operational leverage and continued productivity and cost focus in CHF million 416 Sales +31% 319 224 173 EBITDA margin 141 2020 2021 Q2 net sales Half-year net sales @ Half-year EBITDA Adverse FX movements (mainly USD/CHF) negatively impacted sales by about 5 p
Slide 13: Margin development on track towards upper end of target band
Second Quarter and Half-Year 2021 Results Margin development on track towards upper end of target band in CHF million 500 350 200 50 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 -100 Net Sales EBITDA EBITDA-Margin The EBITDA margin continues to improve sequentially and year-on-year Half-year EBITDA-margi
Slide 14: VAT's business model generates consistently high economic profit on invested capital
T- VAT’s business model generates consistently high wenn economic profit on invested capital 480 60.0% 400 50.0% 320 40.0% 240 30.0% 160 20.0% 80 1 [| 10.0% (0) 0.0% 2015, 2016 2017 2018 2019 2020 6M 2021 Invested Capital NOPAT(LTM) lll Free Cash Flow(LTM) = —=ROIC CROIC = ==WACC1 The return on inve
Slide 15: Substantial increase in net income
Substantial increase in net income in CHF million 6M 2020 Change EBITDA 141.2 94.8 49.0% Depreciaton and amortization -20.6 -204 14% EBIT 120.6 TLA 62.1% > Finance net -2.5 -9.9 -715.3% g EBT 118.1 64.5 83.2% 8 Income tax expenses -18.9 -8.8 3 Effective Tax Rate -16.0% -138.6% 5 Net income 99.2 557
Slide 16: 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 Free cash flow conversion 74 100% 91% 52 88% 86% (12) 40 | | 79% 69% 68% 57% 51% 58% 43% 39% aes 6M 2020 6M 2021 6M 2015 6M 2016 6M 2017 6M 2018 6M 2019 6M 2020 6M 2015 2016 2017 2018 2019 2020 2021 Cash
Slide 17: Lower leverage to support future growth initiatives
Second Quarter and Half-Year 2021 Results Lower leverage to support future growth initiatives Net debt development Leverage development 2.0 18 334 (104) be 295 (88) 16 230 12 208 10 08 0.6 04 0.2 0.0 2020 pol 2015 6M 2016 6M 2017 6M 2018 6M 2019 6M 2020 6M Gross debt Cash and cash equivalents mNet d
Slide 18: Outstanding half-year 2021 - full-year 2021 results expected to be substantially above 2020
Outstanding half-year 2021 - full-year 2021 results expected to be substantially above 2020 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 execution skills Record lev
Slide 19: 2021 market expectations and outlook
Second Quarter and Half-Year 2021 Results 2021 market expectations and outlook Mike Allison, CEO Fabian Chiozza, CFO Mike Allison, CEO
Slide 20: Strong industry capex in leading semi technologies
Second Quarter and Half-Year 2021 Results Strong industry capex in leading semi technologies; VAT semi business to outperform overall WFE growth 2021 Wafer Fab Equipment (WFE) spend by node size _@& 85 Growth Y-o-Y 46% 64 +60% 24% +23% 46% +25% 2020 2021E Legacy >14nm 14nm to 7am 7nm and below Sourc
Slide 21: Investments in innovation remains VAT's key to future growth and market share gains
Investments in innovation remains VAT’s key to future growth and market share gains Spec win development VAT continues to invest in innovation and the development of leading edge technologies Six months 2021 spec wins up 21% R&D organization further strengthened; focus on ( new product adjacencies s
Slide 22: All business segments except displays expected to outgrow the market significantly in 2021
Second Quarter and Half-Year 2021 Results All business segments except displays expected to outgrow the market significantly in 2021 O © Semiconductor Service Advanced Industrials Display & Solar FY 2021 expected market growth Continued strength with WFE expected >30% Continued strength across all s
Slide 23: Qualitative outlook for remainder of 2021; sales guidance for Q3 2021
Second Quarter and Half-Year 2021 Results Qualitative outlook for remainder of 2021; sales guidance for Q3 2021 Outlook full-year 2021 Q3 2021 guidance Global semiconductor capex outlook remains very positive and industrial recovery is expected to continue; supply chain challenges remain a factor of
Slide 24: Q&A session
WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. Q&A session Second quarter and half-year 2021 results www.vatvalve.com
Slide 25: Additional Information
Second Quarter and Half-Year 2021 Results Additional Information Listing: SIX Swiss Exchange Currency: CHF Ticker symbol VACN ISIN CH 031186490 1 Friday, October 15, 2021 Thursday, March 3, 2022 Thursday, April 14, 2022 Tuesday, May 17, 2022 Thursday, August 4, 2022 Thursday, October 13, 2022 Michel
Slide 26: Forward looking statements
Forward looking statements Second Quarter and Half-Year 2021 Results 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