Slide 1: Fourth Quarter and Full-Year 2020 Results
WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - Global leaders in Vacuum Valve Technology Fourth Quarter and Full-Year 2020 Results www.vatvalve.com
Slide 2: Highlights
Highlights Mike Allison, CEO Michel Gerber, Head IR Mike Allison, CEO & a = Gc re
Slide 3: Outstanding Q4 and full-year 2020 results; positive 2021 outlook
Fourth Quarter and Full-Year 2020 Results Outstanding Q4 and full-year 2020 results; positive 2021 outlook Strong Q4 business execution Strong Q4 order intake Record performances Muted COVID impact Optimistic 2021 outlook Strong Q4 results driven by record quarter in Global Services and high demand
Slide 4: Market share gains and strong business execution drive 2020 results
Full-Year 2020 Results 3 Market share gains and strong business execution drive 2020 results Our business segments Valves Global Service Industry Delivering outstanding performance Full-year 2020 order Full-year 2020 net intake (M CHF) sales (M CHF) Record full year free New specification cash flow
Slide 5: Semiconductor are our driving force
Fourth Quarter and Full-Year 2020 Results Semiconductor are our driving force Sales Breakdown by Market Segment 2020 19% > N 55% 1% Semiconductor Display & Solar Advanced Industrials Industry Global Service Regional Sales Breakdown 2020 33% 14% APAC Americas EMEA 53%
Slide 6: 70% 65% 63% 62% 61% 57% 56% 55% 55% 54% 53% 49% 49% 47%
70% 65% 63% 62% 61% 57% 56% 55% 55% 54% 53% 49% 49% 47% 46% 45% 41% 39% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Slide 7: 60% 50% 2015 2016 2017 2018 2019 2020 40% 30% 20% 10% 0%
60% 50% 2015 2016 2017 2018 2019 2020 40% 30% 20% 10% 0%
Slide 8: Mixed trends across all our major business segments
Fourth Quarter and Full-Year 2020 Results Mixed trends across all our major business segments Strong growth as recovery continues, WFE up 18% to about USD 60bn; all segments (memory, foundry and advanced logic) growing Technology advances continue despite certain challenges, industry preparing for n
Slide 9: Fourth-Quarter and Full-Year 2020 financial Review
& En = Gc re Fourth-Quarter and Full-Year 2020 financial Review Mike Allison, CEO Michel Gerber, Head IR Mike Allison, CEO
Slide 10: Group key figures
Group key figures PASSION. PRECISION. PURITY EBITDA CHF 217m (+41%) EBITDA margin 31.4% (+4.4ppt) Orders CHE 725m +24% Free cash flow Year-end leverage CHF 147m (Net debt/EBITDA) +5% 0.6x
Slide 11: Full-year order intake
Full-year order intake +24% Q4 order Full-year order intake backlog +19% yoy +27 yoy 1Order backlog as of June 30, 2019 and June 30, 2020
Slide 12: Strong order recovery from Q3 levels; sales in line with year-end expectations
w” Strong order recovery from Q3 levels; sales in line with ° year-end expectations 1.40 1.20 200 A 1.00 “ — 150 es oo a | oo ao | ee 100 0.60 0.40 50 0.20 () 0.00 Q12018 Q22018 Q32018 Q42018 Q12019 Q22019 Q32019 Q42019 Q12020 Q22020 Q32020 Q42020 mlm Order intake Net sales Book-to-bill Orders recov
Slide 13: Record EBITDA and EBITDA-margin due to higher volumes and operational improvements
Record EBITDA and EBITDA-margin due to higher volumes and operational improvements in CHF million Sales +21% ee 570 EBITDA margin* 314% 27.0% on 170 154 188 2019 2020 Q4 net sales Full-year net sales ‘i Full-year EBITDA Near record topline results and ongoing operational improvements yield in record
Slide 14: Margin recovery continues despite FX headwind; COVID-19 impact muted
Fourth Quarter and Full-Year 2020 Results Margin recovery continues despite FX headwind; COVID-19 impact muted in CHF million 450 300 msn 150 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 Net Sales EBITDA EBITDA-Margin The EBITDA margin continues to improve sequentially and year-on-year 35% ~ 30%
Slide 15: 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 60.0% 400 50.0% 320 40.0% 240 30.0% 160 20.0% 80 il | 10.0% 0 0.0% 2015 2016 2017 2018 2019 2020 Invested Capital NOPAT llNIFree Cash Flow —==ROIC CROIC ~——=WACC1 The return on invested capital (ROIC) and th
Slide 16: Higher EBITDA, lower depreciation and reduced taxes yield in net income increase
Higher EBITDA, lower depreciation and reduced taxes yield in net income increase in CHF million 2019 Change EBITDA 217.2 154.0 41.0% Depreciaton and amortization -40.9) 46.3 -11.6% EBIT 176.3 107.7 63.6% Finance net -15.6 -8.7 78.5% 2 EBT 160.7 99.0 62.3% i Income tax expenses =27.2| -24.2 3 Effecti
Slide 17: Record free cash flow despite TWC requirements and higher capex
Fourth Quarter and Full-Year 2020 Results Record free cash flow despite TWC requirements and higher capex to support growth Free cash flow 100% 91% 173 re) 88% 86% 158 (18) f | 140 || 147 79% 69% 68% 57% 51% 58% 39% 8 2019 2020 6M 2015 6M 2016 6M 2017 6M 2018 6M 2019 6M 2020 Cash flow from operating
Slide 18: Lower leverage to support future growth initiatives
Fourth Quarter and Full-Year 2020 Results Lower leverage to support future growth initiatives Net debt development 1 254 (110) 200 css) 144 128 2019 2020 Gross debt Cash and cash equivalents Net debt Sound net debt reduction despite growth TWC requirements Gross debt on December 31, 2020 comprises C
Slide 19: Great 2020 financial results - 2021 expected to be even better
Great 2020 financial results - 2021 expected to be even better VAT captured the full potential of the cyclical market recovery based on its strong market position and the competitive advantages ranging from innovation capabilities to operational execution Despite the COVID-19 pandemic and the substa
Slide 20: 2021 Priorities, Market Expectations and Outlook
Fourth Quarter and Full-Year 2020 Results 2021 Priorities, Market Expectations and Outlook Mike Allison, CEO Michel Gerber, Head IR Mike Allison, CEO
Slide 21: Strong growth of semiconductors is cascaded down to strongly increasing demand in valves
Strong growth of semiconductors is cascaded down to strongly increasing demand in valves expected in ..translating to ..with semiconductor end-markets... \ Strongest 4.5x increase Os _@ > cee u VAT’s <7nm 912 58 39 strong hold g 643 v é 451 & : B 2020 2025 2020 2025 28nm 20nm 14nm 10nm 7nm Snm 3nm S
Slide 22: Investments in innovation remains VAT's key to future growth and market share gains
Fourth Quarter and Full-Year 2020 Results Investments in innovation remains VAT’s key to future growth and market share gains Spec win development Semi Display & Solar Global Service General Total Vacuum ™2016 ™2017 ™2018 ™2019 ™2020 VAT continues to invest in innovation and the development of leadi
Slide 23: All business segment except displays expected to grow
All business segment except displays expected to grow in 2021 & 0800 Semiconductor Service Advanced Industrials Display & Solar Continued strength with WFE expected Continued strength across all sub-segments Recovering from COVID pandemic-driven declines, Continued weakness in markets expected to +1
Slide 24: Semiconductor equipment market confidence high, WFE expected to grow 10-15% in 2021
Semiconductor equipment market confidence high, WFE expected to grow 10-15% in 2021 Boe Strong growth in 2021 driven by stronger than Semiconductor IC! +10% +12% expected demand for foundry DRAM growing double digit; NAND single digit Semiconductor Capex! +12% +17% Capacity shortages rising across m
Slide 25: Qualitative outlook for 2021; sales guidance for Q1 2021
Year 2020 Results Qualitative outlook for 2021; sales guidance for Q1 2021 Outlook full-year 2021 Q12021 guidance Continued growth expected, driven primarily by ongoing strength of semiconductor industry Uncertainty from COVID pandemic remains but is expected to fade over the year Group net sales, E
Slide 26: Q&A Session
WAT PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. Q&A Session Fourth Quarter and Full-Year 2020 Results www.vatvalve.com
Slide 27: Additional Information
Additional Information Listing: SIX Swiss Exchange Michel Gerber Currency: CHF Head of Communications & Ticker symbol VACN Investor Relations ISIN CH 031186490 1 Phone: +41 81 772 42 55 E-mail: m.gerber@vat.ch =| Thursday, April 15, 2021 Q1 2021 trading update g Friday, May 7, 2021 Closing of share
Slide 28: Forward looking statements
Fourth Quarter and Full-Year 2020 Results 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