Vat Group Ag · SIX:VACN
Vat — Investor Presentation (January 2023)
23 slides from Vat's investor presentation, January 2023
Slide 1: VAT Investor Deck Q1 2023
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solutions Investor Deck Q1 2023 January 2023 www.vatvalve.com
Slide 2: VAT is the clear technology and market leader
VAT is the clear technology and market leader in WY TT the growing and profitable vacuum systems market VAT 20006 VAT actively captures key megatrends to drive sustainable long-term growth VAT is the undisputed market leader due to technology leadership in all fab vacuum applications, global scale a
Slide 3: Our business segments are delivering superior performance
Our business segments are delivering superior performance - will deliver record results in 2022 Our business segments (Share of 9-mo. 2022 net sales, growth vs. 9-mo. 2021) +. 5 8 Valves (81%) wai Sales of CHF 524m (+33%) Global Service (18%) Sales of CHF 155m (+28%) a WAT PASSION. PRECISION. PURITY
Slide 4: Semiconductors are our driving force
WAT Semiconductors are our driving force with advanced esssiox. precision. purity industrial markets adding to our value proposition '2 sales by business unit! mo. 2022 sales by reg ~80% of VAT’s sales are linked to the semiconductor sector I Semiconductors (of which 5% is Display) HM Advanced Indus
Slide 5: Sustained market share growth
Sustained market share growth - harnessing innovation strength and customer focus Market share all industries! Total vacuum valve market size 2021: USD 1,269m 58% 2015 2016 20177 «©2018 = 2019. 2020—Ss_ 2021 All industries includes semiconductor and related, general vacuum 2SEMI includes semiconduct
Slide 6: VAT focuses on four strategic priorities
VAT focuses on four strategic priorities to sustain and WY TT accelerate performance to 2027 and beyond VAT Ls 6 Gain market share in Expand Share of VATZ2B: Build strong Execute VAT’s ESG all our core businesses Wallet (SoW) with capabilities and strategy that creates and markets adjacencies furthe
Slide 7: Business units positioned to harness major megatrends
VAT’s business units are well positioned to harness WAT the major megatrends Passion, PRECISION PURITY Digitalization Energy and Emissions Population Growth and Aging Oi 10011010010000001010 ae) ——— 7’ = Strong semiconductor growth across = Energy demand with double-digit = Growing demand in biotech
Slide 8: Semiconductor sales expected to reach USD 1.0-1.3 trillion
Due to growing digitalization, semiconductor sales WY TT are expected to grow to reach USD 1.0-1.3 trillion VAT Semiconductor end markets Personal computing Smartphone Consumer electronics Wired and wireless infrastructure Automotive End-market ; ; growth fuels Industrial electronics IC volumes Serv
Slide 9: Strong growth of leading-edge semiconductors
Strong growth of leading-edge semiconductors is WAT cascades down to increasing vacuum content Passion. PRECISION. PURITY .. drivi ium- h Eastescraneaiimlescinatedae driving strong medium-term growt nodes, VAT’s stronghold ... .. capital intensity expected to in overall WFE and even faster on increa
Slide 10: Increase customer value and share of wallet
Our strategy is to increase customer value and SoW WAT by expanding into sub-systems and complementary =" "*srsen rey technologies SEMI as the CORE market and the ; - aY main technology driver for all eS products and solutions Leverage all products and technologies into Advanced Industrial applicati
Slide 11: Strong business fundamentals create a sustainable investment story
VAT’s strong business fundamentals create a sustainable investment story WAT PASSION. PRECISION. PURITY. im Stakeholder value proposition 2023-2027 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
Slide 12: Financial performance H1 2022
Slide 13: 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
Slide 14: 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
Slide 15: Strong order momentum continues
WAT Strong order momentum continues; sales growth PASSION. PRECISION. PURITY, supported by capacity increases in CH and MY 15 450 1.60 400 1.40 350 120 300 1.00 250 ~~ 0.80 200 0.60 15) 0.20 0 0.00 Q12018 Q22018 Q32018 Q4 2018 Q12019 Q22019 Q3 2019 Q4 2019 Q12020 Q2 2020 Q3 2020 Q4 2020 Q12021 Q2202
Slide 16: 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 ▪
Slide 17: Margin improvement despite significant cost increases
WAT Margin improvement despite significant cost increases" """"""""" * show VAT’s operational excellence a 500 35% 400 32% 300 29% 200 26% 100 L [| l] 1 | 23% Hos FF S& ss H12018 H2 2018 H12019 H2 2019 H12020 H2 2020 H12021 H2 2021 H12022 Net Sales MMEBITDA = ==EBITDA-Margin = The EBITDA margin impr
Slide 18: Invested capital, NOPAT and free cash flow returns
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 % ▪ ▪ • • •
Slide 19: Substantial increase in net income
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 Effec
Slide 20: Record free cash flow
WAT Record free cash flow despite TWC requirements and "“°"cso" er" higher capex to support growth 20 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 Free cash flow conversion 100% 91% Average free cash f
Slide 21: Seasonally higher net debt due to dividend payment
WAT Seasonally higher net debt due to dividend payment in ““"“"™"""""""™ 21 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 = Gross debt on June 30, 2022 comprises CHF 200 million
Slide 22: Outstanding H1 2022; full-year results expected substantially above 2021
WAT Outstanding H1 2022; full-year 2022 results expected 9“ "sen ren %, 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
Slide 23: VAT - We change the world with vacuum solutions
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solution Investor Deck Q1 2023 January 2023 www.vatvalve.com