Vat Group Ag · SIX:VACN
Vat — Investor Day (December 2022)
86 slides from Vat's investor day presentation, Dec 2, 2022
Slide 1: VAT – We change the world with vacuum solutions: Capital Markets Day 2022
Semiconductor WAT Climate Consortium Hg FOUNDING MEMBER PASSION. PRECISION. PURITY. PASSION.PRECISION.PURITY. VAT - We change the world with vacuum solutions Capital Markets Day 2022 December 2, 2022 www.vatvalve.com
Slide 2: Capital Markets Day 2022 program
WAT PASSION. PRECISION. PURITY. 2 g VAT - We change the world with vacuum solutions Mike Allison, CEO 10:30 - 11:30 & 5 Semiconductor Solutions Group (SSG) — More than valves Urs Gantner, EVP 11:30 - 12:00 3 Buffet lunch and informal interaction 12:00 — 12:45 Global Service (GSE) — Preferred partner
Slide 3: Forward-looking statements
(o) December 2, 2022 9 S 8 8 a 8 8 = i = & 8 PASSION. PRECISION. PURITY. VAT Capital Markets Day 2022 MINT 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 anti
Slide 4: VAT — We change the world with vacuum solutions
VAT — We change the world with vacuum solutions Mike Allison, CEO PASSION. PRECISION. PURITY. www.vatvalve.com
Slide 5: VAT — We change the world with vacuum solutions
WAT PASSION. PRECISION. PURITY. oa VAT — We change the world with vacuum solutions Mike Allison, CEO 1 VAT at a glance December 2, 2022 Markets and growth drivers Strategic priorities Conclusion -—-a- BoBnN F-— 9 S 8 8 a 8 8 = i = & 8
Slide 6: Agenda
Agenda WAT PASSION. PRECISION. PURITY. o>) VAT — We change the world with vacuum solutions Mike Allison, CEO 11 VAT at a glance December 2, 2022 Markets and growth drivers Strategic priorities -—-q- OBN “) Conclusion q Q ° aq a @ 2 o = a O°
Slide 7: VAT is the clear technology and market leader in the growing vacuum systems market
VAT is the clear technology and market leader in WY TT the growing and profitable vacuum systems market VAT NI VAT actively captures key megatrends to drive sustainable long-term growth December 2, 2022 20006 VAT is the undisputed market leader due to technology leadership in all fab vacuum applicat
Slide 8: Our business segments are delivering superior performance
Our business segments are delivering superior WAT performance - will deliver record results in 2022 Passion, PRECISION PURITY foe} . Delivering outstanding performance in 2022 Our business segments (Share of 9-mo. 2022 net sales, growth vs. 9-mo. 2021) Valves (82%) a 1 J 50 (+28%) ~3 5% + 60% Sales
Slide 9: Semiconductors are our driving force with advanced industrial markets adding value
WAT Semiconductors are our driving force with advanced esssiox. precision. purity industrial markets adding to our value proposition 0. 2022 sales by reg ~80% of VAT’s sales are linked to the semiconductor sector I Semiconductors (of which 5% is Display) HM Advanced Industrials (of which 2% is Solar
Slide 10: VAT is the preferred supplier of vacuum valves and systems to many high-tech OEMs
VAT is the preferred supplier of vacuum valves and WY TT systems to many high-tech process industry OEMs VAT Vacuum system SEMI is a global supplier GSE supports semiconductor component manufacturers to semiconductor OEMs OEMs and end users Guar Alam ASML om inten WAT" TEL asme® semes 3 December 2,
Slide 11: VAT is the undisputed market leader with sustained growing market share
VAT is the undisputed market leader with sustained WY TT growing market share VAT ay Market shares across all industries in % 70% 4 December 2, 2022 60% + 50% + 40% 4 30% | 20% + 10% + 0% ! mamamee eel VAT -tmks VEX CKD GSMC ULWAC HW) ‘«rzscrt iE Others 2015 m2016 m2017 2018 m2019 m2020 m2021 9 S 8
Slide 12: Sustained market share growth - harnessing innovation strength and customer focus
8 December 2, 2022 q Q ° aq a @ 2 o = a O° 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
Slide 13: On track to deliver on our 2025 commitments
On track to deliver on our 2025 commitments MINT PASSION. PRECISION. PURITY. 13 g 2020 Q1/ 2022 12 / 2022 8 Our guidance at CMD Our adjustment Our progress 8 Sales in 2025 ~CHF 1,100m ~CHF 1,500m CHF 1,150m . for FY 2022! EBITDA margin band 2020-2025 30-35% 32-37% 35% for FY 2022! Adjacencies sales
Slide 14: Apr 2016 Apr 2018 VAT
1000% 800% 600% 400% 200% 0% Apr 2016 Apr 2018 Apr 2020 Apr 2022 VAT SPI NASDAQ SOX
Slide 15: Agenda
Agenda WAT PASSION. PRECISION. PURITY. a VAT — We change the world with vacuum solutions VAT at a glance Markets and growth drivers Mike Allison, CEO December 2, 2022 i} Strategic priorities i“ Conclusion q Q ° aq a @ 2 o = a O°
Slide 16: Business units well positioned to harness the major megatrends
VAT’s business units are well positioned to harness ts the major megatrends WAX PASSION. PRECISION. PURITY. oy Digitalization Energy and Emissions Population Growth and Aging December 2, 2022 10011010010000001010 Oi ,——_ i —_ = Strong semiconductor growth across = Energy demand with double-digit = G
Slide 17: Semiconductor sales expected to grow to USD 1.0-1.3 trillion
3 December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ Due to growing digitalization, semiconductor sales WAT are expected to grow to reach USD 1.0-1.3 trillion Semiconductor end markets Personal computing Smartphone Consumer electronics Wired and wireless infrastructure Automotive End-market ; ; growth fuels I
Slide 18: Strong growth of leading-edge semiconductors cascades down to increasing vacuum content
fos December 2, 2022 q Q ° aq a @ 2 o = a O° Strong growth of leading-edge semiconductors is cascades down to increasing vacuum content Fastest growth in leading edge nodes, VAT’s stronghold ... 98 100 13% 50 4% 2% i} 2022 2027 | 7nm and below @ 14nm to 7nm Ml Legacy >14nm WFE growth forecast, VLSIT
Slide 19: Additional upside opportunities may further increase WFE over the next ten years
Additional upside opportunities may further increase WY TT WFE over the next ten years Lax PASSION. PRECISION. PURITY. Ko) December 2, 2022 9 S 8 8 a 8 g = i = & 8 —_— aah, Sustainability Semiconductor value chain on a path to create 12%! of global emissions, energy efficiency of devices crucial in
Slide 20: All VAT businesses outperforming their markets in growth and profitability
All VAT businesses outperforming their markets in growth and profitability WAT PASSION. PRECISION. PURITY. N oO Market portfolio VAT portfolio High December 2, 2022 Medium Profitability Low oot ott 4567 8 9 1011 12 13 14 15 16 17 18 19 20 21 22 4567 8 91011 1213 14 15 16 17 18 19 20 21 22 Market gro
Slide 21: VAT is a leader in high growth markets
BS December 2, 2022 G09 9 S 8 8 a 8 8 = i = & 8 VAT is a leader in high growth markets, especially WY TT where Moore’s Law drives increasing opportunities VAT Market summary VAT actively captures key megatrends to drive sustainable long-term growth Move to smaller design rules drives VAT market shar
Slide 22: Agenda
Agenda WAT PASSION. PRECISION. PURITY. N i) VAT — We change the world with vacuum solutions VAT at a glance Markets and growth drivers Mike Allison, CEO December 2, 2022 Strategic priorities i“ Conclusion q Q ° aq a @ 2 o = a O°
Slide 23: Four strategic priorities to sustain and accelerate performance to 2027
VAT focuses on four strategic priorities to sustain and WY TT accelerate performance to 2027 and beyond Lax PASSION. PRECISION. PURITY. N i) q 8 ° & 5 3 — S 8 3 a Ls 6 Gain market share in all our core businesses and markets Expand Share of Wallet (SoW) with adjacencies VAT2B: Build strong capabilit
Slide 24: Investments in leading edge continue to dominate; specification wins key
Investments in leading edge continue to dominate; WY TT specification wins key for future success Lax PASSION. PRECISION. PURITY. Capturing the faster growth ... enabled by strong track record in leading edge nodes ... in specification wins 4 susp bn a CAGR 160 % 22-27 140 120 100 13% 80 60 A% 40 20
Slide 25: Sales and market share to grow across all our businesses
oO Sales and market share to grow across all our WAT . businesses PASSION. PRECISION. PURITY. 25 g Semiconductors 8 . 75% to >85% Y ig Sales growth and market share gains based on very 1,500 > 3 strong specification win track record and #1 market 1,000 W%CACR = 8 position for leading-edge vacuum val
Slide 26: Increase customer value and share of wallet by expanding into sub-systems
Our strategy is to increase customer value and SoW WAT by expanding into sub-systems and complementary =" "*srsen rey technologies N Oo Ser as ne CORE marketers the KY Leverage all products and technologies wy ; 2S into Advanced Industrial applications products and solutions December 2, 2022 2022 20
Slide 27: VAT2B program to provide capabilities in a growing scalable organization
December 2, 2022 9 S 8 8 a 8 8 = i = & 8 VATZ2B is our program to provide the capabilities A! in our growing and scalable organization VAT2B Gain market share in our core markets and services Grow continually in adjacencies and new markets © VATZ2B: Build capabilities for strategy execution Ce) Prov
Slide 28: 1st VAT sustainability review as starting point of comprehensive ESG strategy
1st VAT sustainability review as starting point of WY TT comprehensive ESG strategy Lax PASSION. PRECISION. PURITY. 28 4 Creating value sustainably “Ultimately, our goal isto JASNA) : Long-term success only sustainable by integrating a broad range of transform VAT into an cuir VALU E 5 values into s
Slide 29: Become a best-in-class company addressing a wide stakeholder group
Become a best-in-class company addressing the WY TT needs of a wide stakeholder group Lax PASSION. PRECISION. PURITY. 29 g 2022 2023 2024-2027 3 & ~ Overall = First Sustainability Review = ESG target setting = Continuous reporting on improvements in ESG e ESG = ESG anchored at BoD level "= Participa
Slide 30: Agenda
Agenda WAT PASSION. PRECISION. PURITY. ie) oO VAT — We change the world with vacuum solutions VAT at a glance Markets and growth drivers Mike Allison, CEO December 2, 2022 i} Strategic priorities q Q ° aq a @ 2 o = a O°
Slide 31: Tough ambitions for 2027 and beyond
8 December 2, 2022 q g 3 & a @ 2 & = a (3) To achieve leadership in high-value vacuum solutions, WAT we have set tough ambitions for 2027 and beyond Passion. PRECISION. PURITY Strategic Market priorities Share Ambition for 2027 and = SEMI >85% = >CHF 300m of = Installed capacity = Provide clear ESG
Slide 32: Growth strategy expected to generate CHF 2,000m in sales by 2027
Our growth strategy is expected to generate CHF 2,000m in sales by 2027! VT PASSION. PRECISION. PURITY. wo is) = Strong organic revenue growth driven by increase in general market growth and share gains CHF 2,200m q 8 ° & 5 3 — S 8 3 a CHF 1,800m CHF = Expansion of share of W500 wallet with substant
Slide 33: Semiconductor Solutions Group (SSG)
WAT PASSION. PRECISION. PURITY. CAPTIAL MARKETS DAY 2022 Semiconductor Solutions Group (SSG) Urs Gantner, EVP www.vatvalve.com
Slide 34: SSG - strengthened SEMI organization for sustained success
@ KR December 2, 2022 q g 8 & z S S = 3 8 SSG - strengthened SEMI organization for sustained WAT: success Semiconductor Solutions Group (SSG) Business Unit SEMI Customer Business Development Engineering SEMI Execution of core business and Advanced product development: adjacent products crossing CHF
Slide 35: BU SEMI at a glance - on track to cross CHF 1bn in sales
BU SEMI at a glance - on track to cross CHF 1bn in WAT. sales Valves ° ° ~30% >95 >90% wo a q 8 ° & 5 2 — S 8 3 a Control valves Transfer valves Isolation valves Expected net sales Sales in adjacencies Specification win-rate in growth CHFm leading technologies Motion components . Wafer lifter —s Rin
Slide 36: Technology advances required to resolve performance vs. power consumption paradox
Significant technology advances are required to MINT PASSION. PRECISION. PURITY. resolve the performance vs. power consumption paradox w Oo Moore’s Law is alive and kicking — increasing device .. driving strong medium-term growth in WFE complexity resulting in new processes and and an increasing per
Slide 37: Leverage global presence and fast customizable solutions to win market share
w x December 2, 2022 q Q ° aq a @ 2 o = a O° Leverage our global presence and fast customizable WAT PASSION. PRECISION. PURITY. solutions to win market share in valves and adjacencies Key drivers Implications for VAT Big OEMs get bigger and dominate in leading-edge vacuum processes Local OEMs gain i
Slide 38: Outperform the market and increase market share in core valves and adjacencies
Outperform the market and increase market share in WAT: core valves and adjacencies 38 q SEMI growth plan 2023-2027 SEMI goals and initiatives for 2023-2027 & 2 Market Share 2021-2027 CAGR 2023-2097 From core valves to sub-systems in the wafer path and 3 75% to >85% ar progressing into advanced pres
Slide 39: SEMI Initiative 1: Grow our core valves business
w © December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ jay =| w 4 Ta *. Driving advanced modules and valve assemblies consolidates VAT core valve products into one package to increase market share of all VAT valves and components to double Sow SEMI Initiative 1: Grow our core valves business WAT PASSION. PREC
Slide 40: SEMI Initiative 2: Double the advanced modules business
& jo) December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ SEMI Initiative 2: Double the advanced modules business Growth will be driven by com- plex integrated systems for leading edge platforms offering plug & play solutions with additional features and functionality 1 Total Available Market;? Serviceable Ava
Slide 41: SEMI Initiative 3: Grow market share in motion components
SEMI Initiative 3: Grow market share in motion WAT: components 41 & : = Dry etch and deposition SAM expected to High-value solutions 8 grow from CHF 200m in 2022 to CHF = Proprietary designs ra) 360m in 2027 = Enhanced positioning accuracy = VAT one-stop shop motion provider with = Performance and p
Slide 42: SEMI Initiative 4: Expand the global engineering network
S iS) December 2, 2022 q Q ° aq a @ 2 o = a O° SEMI Initiative 4: Expand the global engineering WAI network Application hub US Particle lab US " Particle research = Product benchmarking PASSION. PRECISION. PURITY. Innovation hub Application hub KR Zurich Haag innovation center Application hub TW Cor
Slide 43: Adjacencies view at CMD in December 2020
~ @ December 2, 2022 gy g 8 & a 8 8 = i = & 8 Extending our market leadership and growth - our WAT view on adjacencies at CMD in December 2020 Our strategic priorities Attractiveness High Medium Low Opportunity A Opportunity 8 PASSION. PRECISION. PURITY. Upstream Motion WEES components CHF 60-80m CH
Slide 44: Our view today - confirm existing adjacencies and new opportunities
Our view today - confirm existing adjacencies and WAT. new opportunities in market introduction stage Our strategic priorities High Prio Il Prio | Motion Opportunity Gas 4 Gauge Advanced Soeaeon. A inlet Oo modules Sain Opportunity Soe CHF 500m B Medium ‘Opportunity @ Attractiveness Low Low Medium H
Slide 45: Revolutionary pressure measurement
a December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ Solving the industry’s next generation challenges: Revolutionary pressure measurement The industry problem The VAT solution Accuracy and stability vs. next gen process windows = Current technologies will soon reach their technical limitations = Fast process
Slide 46: SSG aims to outpace the market in the next five years
WAT PASSION. PRECISION. PURITY. SSG aims to outpace the market in the next five years and grow in connected solutions beyond 2027 2000-2022 2023-2027 Beyond 2027 Leader in Vacuum Valves CAGR® 13% Leader in Wafer Path Solutions Outperforming WFE market growth by 2x Leader in “Vacuum Solutions” Contin
Slide 47: SSG aims to outpace the market in the next five years and grow beyond 2027
SSG aims to outpace the market in the next five WAI years and grow in connected solutions beyond 2027 PASSION. PRECISION. PURITY. Our SEMI business is based ... and will continue to outgrow the market on customer centricity and innovation through organic growth Al Increased market share from 65% in
Slide 48: Global Service (GSE)
WAT PASSION. PRECISION. PURITY. CAPTIAL MARKETS DAY 2022 Global Service (GSE) Joe Haggerty, SVP www.vatvalve.com
Slide 49: Global Service at a glance
Global Service at a glance - VAT has a strong WAT: position in services and is well-positioned for growth Our business by Delivering outstanding performance in 2022 product type (Share of 9-mo. net sales 2022) Spare parts & Gates 21 % ~90% >7 5m . (0) (0) . (82%) Net sales growth with Win-rate in re
Slide 50: Strong market growth in 2023-2027 driven by WFE growth and higher fab utilization
Strong market growth in 2023-2027 driven by WFE WAT . one . PASSION. PRECISION. PURITY. growth and higher fab utilization 50 Aa 2027 (CHFm) FE et Spare ports |! Micaactertancerend || oS CAGR 2023-2027 a SZ BLES control valves 8% ° é Spare valves, upgrades of VAT valves, retrofits of competitors’ 253
Slide 51: Installed base of repairable valves expected to grow to over 2.6m in 2027
2 December 2, 2022 9 S 8 8 a 8 8 = i = & 8 Installed base of repairable valves expected to grow WAT: from 1.5m in 2022 to over 2.6m in 2027 VAT repairable valve installed base and annual growth rates Repairable valves Units Repairable valves installed base 3,000,000 2,500,000 2,000,000 Transfer valv
Slide 52: Each repairable valve in the installed base brings significant recurring revenue
Each repairable transfer and control valve in the WAT: installed based brings significant recurring revenue Service element Value proposition Total revenue potential (vs. valve OEM sales price) Spare parts VAT offers consumable parts, including gates and & Gates seal kits, to allow end users to opti
Slide 53: GSE maintains an aggressive sales plan through 2027
GSE maintains an aggressive sales plan through 2027 WAT PASSION. PRECISION. PURITY. a ie) Market Share 2022-2027 saaenetaeal 44% to 55% maid CHF 350-400m The preferred service provider for vacuum valves and vacuum components in the semiconductor industry 3 strategic plan initiatives 1. Market share
Slide 54: GSE Initiative 1: Invest in new business models for repair, service network, gate production
a & December 2, 2022 q Q ° aq a @ 2 o = a O° GSE Initiative 1: Invest in new business models for repair, our service network, and MY gate production WAT PASSION. PRECISION. PURITY. New repair business models Invest in the worldwide repair network Invest in gate production in Malaysia = Fixed Price R
Slide 55: GSE Initiative 2: Upgrades & retrofits
a a December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ GSE Initiative 2: Upgrades & retrofits - high customer value from VAT upgrades & retrofits Transfer valve retrofits Initiative description 4 Process Vales Key Etch Platform 2Arieck Vanes Retrofits replace competitor valves in the installed base with VAT v
Slide 56: GSE Initiative 3: Upside potential in adjacency markets
a Oo December 2, 2022 9 S 8 8 a 8 8 = i = & 8 GSE Initiative 3: Upside potential in the adjacency markets for VAT service and retrofits R&D pipel =e WAT PASSION. PRECISION. PURITY. Specification win and growth phase Motion components 2027 estimated market installed base and spare market Gas inlet RP
Slide 57: We will grow our unique service business by 13% CAGR until 2027
We will grow our unique service business by 13% WAT- CAGR until 2027 (vs. 9% in 2020 CMD) Our service business is based ... and will continue to deliver on a strong foundation ... strong & profitable growth Rapidly expanding installed base of over Strong sales growth of >13% CAGR ‘il le 1.5m repaira
Slide 58: Advanced Industrials (ADV)
WAT PASSION. PRECISION. PURITY. CAPTIAL MARKETS DAY 2022 Advanced Industrials (ADV) Karin Dahlstrom, SVP www.vatvalve.com
Slide 59: Advanced Industrial business at a glance
Advanced Industrial business at glance - strong position in a variety of advanced industrial markets Our business segments Delivering outstanding performance in 2022 9%/ 9 / 20% aw A 4 Wl solar Hl Research BM Scientific Instrum. 1) Coating Rest of Adv. Ind. HB Asia Ml EU/Row us ~36% Market share Up
Slide 60: Powerful synergies — products developed for semiconductors customized for industrial markets
Powerful synergies — products developed for the WAT semiconductor market are customized for advanced industrial markets PASSION. PRECISION. PURITY. Ce) g BU ADV BU ADV Rest of VAT < Product line 2021% 2021% 2021% Comments 2 Quantity Margin Margin . Angle valves a 51% VAT average VAT average+ |" ADV
Slide 61: Core business with potential to expand market share in existing applications
Core business with potential to expand market share WAT. in existing advanced industrials applications 61 2027 CHFm/ § MS°% 4 g ere ANE: Ea ee g a Space simulations; fusion 3 Research reactors; particle accelerators oe CAGR 2023-2027 8 a Scientific Health and material science, 234 271% instruments”
Slide 62: Grow customer value and share of wallet in existing business
Grow customer value and share of wallet in existing WAT: business; E-beam offers largest opportunity 62 g Potential VAT contribution to : customer process (increasing SoW) : e = ADV today mainly 2 selling vacuum valves Advanced Sci. Ins. (E-beam) assemblies & process control R h = Further leverage S
Slide 63: Leverage BU SEMI integrated assemblies to grow share of wallet
Leverage BU SEMI integrated assemblies to grow WAT. Share of Wallet 63 8 = Strong growth expected in E-beam: E-beam path ~ — Material Science for new electric vehicles mechanical 5 and more sustainable compounds assemblies a — Life Science driven by aging population — Semiconductor Inspection and Me
Slide 64: Long term, several interesting new markets with vacuum potential are emerging
Long term, several interesting new markets with WAT: vacuum potential are emerging 64. g Potential VAT contribution to , & customer process (increasing SoW) = Interesting new markets 3 Advanced 4 based on similar 5 vance technologies: 3 assemblies & Market 1 Market 1 Market 2 g ; process control — 3
Slide 65: ADV plan focuses on innovation and improving market coverage
ADV plan focuses on innovation and improving WAT market coverage cop) a V sales pl V key initiatives CAGR 2023-2027 . . 110% Product roadmap, enhancements and adjacencies: 36% to 40% Initiative (1) New differentiated, configurable product platforms December 2, 2022 Initiative (2) E-beam: Increase ad
Slide 66: VAT product reuse at higher profitability with attractive growth opportunities
VAT product reuse at higher profitability with several WAT attractive growth opportunities PASSION. PRECISION. PURITY. ADV well positioned ... several attractive growth for future growth ... opportunities identified Al VAT synergies, SEMI product reuse at high profitability 7 of 8 product categories
Slide 67: Financial targets and capital allocation strategy
WAT PASSION. PRECISION. PURITY. Q ] 6 | Financial targets and capital allocation strategy Fabian Chiozza, CFO Historical stakeholder value generation December 2, 2022 Stakeholder value proposition 2023-2027 Ongoing stakeholder value creation Conclusion a oe a > wo Ny 9 S 8 8 a 8 8 = i = & 8
Slide 68: Ambitious growth path with clearly defined profitability targets and capital allocation priorities
top) oO December 2, 2022 q g 8 8 a 8 8 = 3 = 3 $ Ambitious growth path coupled with clearly defined WY TT profitability targets and capital allocation priorities VAT Market growth Business execution Leverage technological leadership in valves to adjacent products and solutions — production capacity
Slide 69: Agenda
Agenda WAT PASSION. PRECISION. PURITY. QD ie) 6 | Financial targets and capital allocation strategy Fabian Chiozza, CFO 6.1 | Historical stakeholder value generation December 2, 2022 ‘j74, Stakeholder value proposition 2023-2027 Ongoing stakeholder value creation A) Conclusion q Q ° aq a @ 2 o = a O
Slide 70: Strong track-record of delivering outstanding financial performance
x oO December 2, 2022 q Q ° aq a @ 2 o = a O° We have a strong track-record of delivering outstanding financial performance WAT PASSION. PRECISION. PURITY. 15.9%! CAGR 2015-22 Strong double-digit growth as market share continuously increases Reported numbers, 16.3% CAGR on constant 2015 FX rates 2 F
Slide 71: On track to deliver on our 2025 commitments
On track to deliver on our 2025 commitments MINT PASSION. PRECISION. PURITY. 71 g 2020 Q1/ 2022 12 / 2022 8 Our guidance at CMD Our adjustment Our progress 8 Sales in 2025 ~CHF 1,100m ~CHF 1,500m CHF 1,150m . for FY 2022! EBITDA margin band 2020-2025 30-35% 32-37% 35% for FY 2022! Adjacencies sales
Slide 72: Since the 2020 CMD VAT shares have delivered a TSR of ~40%
Since the 2020 CMD VAT shares have delivered WY TT a TSR of ~40% despite the sharp 2022 correction WAT. We have delivered great results since .. and created substantial shareholder value above 2020... the industry 29% Sales growth between CAGR 2020 and 2022! EBITDA margin improvement between 2020 an
Slide 73: Agenda
Agenda WAT PASSION. PRECISION. PURITY. ~ ) 6 | Financial targets and capital allocation strategy Fabian Chiozza, CFO Historical stakeholder value generation December 2, 2022 Stakeholder value proposition 2023-2027 Ongoing stakeholder value creation 2) i) > wo Ny Conclusion q Q ° aq a @ 2 o = a O°
Slide 74: Sales and market share to grow across all our businesses
Sales and market share to grow across all our WAT . businesses PASSION. PRECISION. PURITY. 74 g Semiconductors 8 . 75% to >85% Y ig Sales growth and market share gains based on very 1,500 > 3 strong specification win track record and #1 market 1,000 W%CACR = 8 position for leading-edge vacuum valves
Slide 75: Global footprint and flexible operating model drive operational excellence
footprint and flexible operating model ~ o December 2, 2022 55% 25% 2022 2027 Best cost country sourcing is expected to reach more than 55% by 2027 compared to 25% in 2022 25% flexible workforce group-wide (factory workers in CH, MY and RO) q g 8 8 a 8 8 = 3 3 $ We drive operational excellence throu
Slide 76: Growing production capacity > CHF 2bn
Growing production capacity > CHF 2bn Moving volume to BCC locations BCC suppliers reducing cost base ot) Switzerland & Malaysia ~I Oo December 2, 2022 Factory as is NNN c00 | -275 output Crm 2027 TT cco TTT 1100 WAT PASSION. PRECISION. PURITY. Growth in Best Cost Country content improves our cost P
Slide 77: VAT's strong business fundamentals create a sustainable investment story
VAT’s strong business fundamentals create a WY TT sustainable investment story Lax PASSION. PRECISION. PURITY. wm Stakeholder value proposition 2023-2027 Rw Our sustainable value creation is based on 3 key pillars: 2 Growth \<ill Profitability $ Capital allocation S . 0 Market / WFE growth C7) Opera
Slide 78: Agenda
Agenda WAT PASSION. PRECISION. PURITY. > eo) 6 | Financial targets and capital allocation strategy Fabian Chiozza, CFO 6.1 | Historical stakeholder value generation December 2, 2022 ‘j74, Stakeholder value proposition 2023-2027 Ongoing stakeholder value creation A) Conclusion q Q ° aq a @ 2 o = a O°
Slide 79: Strong profitability with EBITDA margin of 32-37% over the cycle
~ oO December 2, 2022 9 S 8 8 a 8 8 = i = & 8 Strong profitability with EBITDA margin of 32-37% WAT over the cycle EBITDA margin % band 2022-2027 2015 2016 2017 2018 2019 2020 2021 2022 2027 HB Net sales *** Lower end of EBITDA margin range over cycle = EBITDA margin *** Upper end of EBITDA margin r
Slide 80: Strong ROIC across the cycle and expected to remain above 45%
Strong ROIC across the cycle and expected to remain WY TT above 45% in the period 2022-2027 Lax PASSION. PRECISION. PURITY. 80 ow % a 500 Our historic organic growth coupled = with our asset-light business model g 400 allows us to generate ROIC / CROIC substantially above our WACC 300 Our asset-ligh
Slide 81: Strong commitment towards our customers to invest ahead of the curve
Strong commitment towards our customers to invest WY TT ahead of the curve in innovation and capacity Lax PASSION. PRECISION. PURITY. 81 . 2022 includes investments in 8 2017 and 2018 include a total of factory output increase in VAT has on average invested around : about CHF 45m capex for 5 q . . ~
Slide 82: We have a three-pillar cash investment strategy
Slide 83: Agenda
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Slide 85: Unique combination of profitable growth and cash returns to shareholders
Slide 86: Q&A session