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Capital Markets Day 2025 Empowering your tomorrow May 20, 2025
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Agenda 01 Introduction Urs Gantner, CEO 02 Market drivers Urs Gantner, CEO 03 Toolkit for success Urs Gantner, CEO 04 Growth strategy Finn Felsberg, EVP Semiconductor Solutions Group 05 Financial outlook Fabian Chiozza, CFO 06 Q&A session May 2025 VAT Capital Markets Day 20252
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VAT Capital Markets Day 2025 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 of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates,” and similar expressions) should be considered to be forward-looking statements. Forward-looking statements involve inherent known and unknown risks, uncertainties, and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the company to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the company’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the performance, security, and reliability of the company’s information technology systems, political, economic and regulatory changes in the countries in which the company operates or in economic, or technological trends or conditions. As a result, investors are cautioned not to place undue reliance on such forward-looking statements. Except as otherwise required by law, VAT disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after this presentation was made. Forward-looking statements May 2025 VAT Capital Markets Day 20253
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01 Introduction Urs Gantner, CEO
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Exciting growth story ahead for VAT An update on VAT’s continuing 60-year success story May 2025 VAT Capital Markets Day 20255 • VAT is powering the next wave of semiconductor innovation and will outgrow the WFE market by up to 2x, which in turn is outgrowing GDP by a similar margin • The USD 1 trillion semiconductor market is fueling demand for computing, memory, and packaging technologies and is further driven by emerging AI applications • Technology roadmap continues and is entering an era of rapid expansion with increasing complexity, requiring more vacuum and cutting-edge processes like ALD and HNA-EUV • VAT solutions enable technology breakthroughs, drive yield improvements and reduce complexity • Technology leadership and the flexible operating model are the backbone of our success VAT outgrowing WFE by up to 2x VAT’s growth accelerated by advanced logic – GAA technology transition Vacuum-related WFE (12%) growing faster than WFE (8%) VAT solutions powering spec wins and share of wallet increases
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VAT turned 60 in 2025 May 2025 VAT Capital Markets Day 20256
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Reflections on key strengths laid out by VAT’s founder May 2025 VAT Capital Markets Day 20257 Siegfried Schertler established the foundation of the DNA of today’s VAT Key strengths of VAT products described by Siegfried Schertler in a 1979 strategy paper Customer focus Built to customer specification, considering design, supply chain, and manufacturing constraints Innovation Technologically and commercially superior to competitors VAT quality Look good, purity, quality controlled, no hidden issues, documented and packaged Pricing According to the technological value of the product Availability for delivery Well known and agreed lead times Longevity Guaranteed long product lifetimes including the necessary service offering
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02 Market drivers Urs Gantner, CEO
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VAT is an integral part of the semi supply chain May 2025 VAT Capital Markets Day 20259 VAT is in a unique position in the semi supply chain as a mission-critical subsystem provider – not overtly exposed to customer cycles, but more to capex cycles Consumers Electronics manufacturers IDM/chipmakers OEMs/ toolmakers Critical subsystems Materials suppliers • Disposable income, interest rates • Product renewal cycle, consumer preferences • Product renewal cycles • Pricing • Energy consumption / cloud growth • Capex • Yields and throughput • Wafer starts • WFE • R&D and available production capacity • Supply chain • WFE • R&D and available capacity • Technology • Yield • R&D • Technology Companies (selected) Key drivers
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Underlying drivers of growth May 2025 VAT Capital Markets Day 202510 Source: TechInsights (March 2025) VAT set to outgrow underlying markets thanks to higher exposure to accelerating market segments and the higher percentage of vacuum applications in the overall WFE spend Technology transition Manufacturing complexity Share of wallet • Evolving manufacturing technology (GAA/2nm) • More leading-edge chips require more process steps • Precision, increased process steps • More process steps need vacuum • Multi-patterning • Increased market share and larger VAT content • More process chambers, e.g., deposition and etch • More advanced modules per tool ~550B >1T ~100B >150B 2024 2025E 2028E 2030E add. AI market >USD 300B +8% WFE Semiconductor market sales Semiconductor market expected to grow to over USD 1T Market outgrowth driven by three factors (Semiconductor market size, USD billion)
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WFE remains the best proxy for underlying VAT market growth May 2025 VAT Capital Markets Day 202511 Source: TechInsights March 2025, Yole April 2025, SEMI.org March 2025; Barclays, BofA, DB, GS, Jefferies, JPM, MS, TD Cowen, UBS Market consensus for WFE 2025 indicates a temporary plateau at record levels. VAT expects to outgrow WFE because of its higher share of wallet (SoW) in leading edge 96 102 104 113 124 136 150 94 96 124 130 126 128 -2% 6% 2% 9% 10% 9% 10% 2023 2024 2025E 2026E 2027E 2028E 2029E WFE Consensus WFE Low WFE High Growth YoY % Short- term drivers Long-term drivers Leading- edge logic • 2nm/GAA introduction in 2025, ramping into 2026, also driven by AI capex • CFET introduction/ transition in 2030E and beyond • AI to move from data centers to devices Memory • HBM upgrades • NAND upgrades • AI requires high-spec memory • Increase in NAND layers Application split • More vacuum processes • More leading-edge applications like ALD/ALE • High-NA EUV, expansion of cryo-etch and multi- chamber systems China • Self-sufficiency from 20% to 40% • Self-sufficiency increasing further to as high as 80% • Independent semi-industry +8%
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Share of vacuum related WFE is growing May 2025 VAT Capital Markets Day 202512 VAT benefits disproportionately from processes moving into vacuum environments as well as WFE spend related to leading-edge chips Vacuum-related WFE growing… …as is WFE for leading-edge chips Drivers • Node size progression (Moore’s Law) and GAA architecture • Continued increase in process steps in etch and depo with shrinking node sizes • Increase in EUV lithography • Additional processes moving into vacuum (e.g., advanced packaging) • Capital intensity for new fabs increases with node progression • New gases and new materials used • Broader set of temperature environments • Increased focus on yield owing to value of processed wafer 0 20 40 60 80 100 120 140 160 180 2023 2024 2025E 2026E 2027E 2028E 2029E Vacuum-related Non-vacuum-related +2% +12% 0 20 40 60 80 100 120 140 160 180 2023 2024 2025E 2026E 2027E 2028E 2029E Leading-edge < 7nm Node size >= 7nm +2% +15%
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Short-term drivers • Introduction of GAA in 2025, with ramping to continue into 2026E • First consumer products expected to be introduced during 2026E Long-term drivers • 2nd GAA node below 2nm expected to follow in 2027E/28E • 5nm and below expected to remain key design rules even beyond 2030E Technology transition: GAA/2nm May 2025 VAT Capital Markets Day 202513 Source: IBS, TechInsights Move to smaller design rule seen as one of the most important technology milestones in semi manufacturing. Acceleration of manufacturing volumes to start late 2025/early 2026 2nm (and below) to be a major node development 35k 472k 977k >1.6M >2.5M 2025E 2026E 2027E 2028E 2029E (expected annual 2nm wafer starts)
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GAA process complexity increases VAT content May 2025 VAT Capital Markets Day 202514 Source: VAT (generic diagrams), OEM reporting More leading-edge process steps demand advanced tool designs with more vacuum chambers, resulting in higher VAT share of wallet through high-purity valves, advanced modules and motion components Drives valve sales • Increase in process steps of up to 25% requires more tools • Switch to integrated tools increases chamber count and drives demand for advanced valves Drives adjacencies sales • Development of integrated tools requires more advanced adjacent VAT components • Driver of share of wallet growth Tool design (30% floor space reduction) Collocated tools Integrated tools Technology transition (25% more process steps) From FinFET to GAA Process New technology Etch Cryo-etch (-70° C) Depo- sition 3x more ALD steps 6x more in epitaxy layer Litho 10% increase in EUV layers → → →
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Vacuum remains crucial to semiconductor manufacturing May 2025 VAT Capital Markets Day 202515 At the nanometer levels of today’s manufacturing, UHV environments are crucial to shaping precise structures and precise control of the manufacturing processes Challenges for the chip industry VAT’s ultra-high vacuum environments are unique Impact in semi: more precision and fewer particles Which results in higher yields (and better price position for fabs) driven by Vacuum enables precision manufacturing by: • Elimination of impurities • Ensuring a defined and repeatable environment • Allowing for precise process control • Better precision for chip architecture • Higher yield and throughput • Fewer reject chips with faults • Better performance for completed chips End-market asks: • Consumers expect performance increase… • with no price increase… • and improved battery consumption Development and adaptation of new architecture and chip manufacturing technology • GAA, ALD, EUV Extreme manufacturing precision requirements owing to • Node progression • Material progression • Physics (e.g., energy consumption) Smart- phone (2025) Smart- phone (2007) 3nm → →
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May 2025 VAT Capital Markets Day 202516 Market growth towards USD 1 trillion; VAT will leverage off 2nm technology to outgrow WFE by factor 2x Market growth is intact Technology is shifting VAT set to benefit from exposure • USD 1 trillion market in 2030E is intact, even increased by AI market • Capex in chip manufacturing skewed to WFE spend • WFE is currently at a plateau of around USD 100 billion, expected to rise to ~USD 150 billion by 2029E • GAA/2nm chips are starting to be manufactured in 2025 with high- volume-manufacturing (HVM) in 2026E • NAND reaching over 200 layers, requiring new etching tools • DRAM shifting to HBM, with more complex architecture • Chips take longer to manufacture and are more complex • VAT set to benefit from AI-fueled demand for higher-end chips both in logic and memory, increasing our share of wallet • The mix in WFE in the coming years is where VAT benefits skew to leading- edge and vacuum-related
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03 Toolkit for success Urs Gantner, CEO
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We have outgrown our competition and will continue to do so May 2025 VAT Capital Markets Day 202518 Source: TechInsights data as of April 2025; (1) Semi and related includes semiconductors, displays, solar, LED lighting, hard disk drive The focus on vacuum valves was the basis for VAT to outgrow our competition. Our aim of creating value for our customers and their deep-seated trust fuel VAT's further growth Market share, semi and related(1) 71% 6% 5% 4% 2% 2% 2% 1% 1% 6% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Others • Since 2015, VAT has grown its market share by approximately 25ppt, delivering customer value-add and offloading complexity for our OEM customers • Share in semi reached a record high of 76% in 2024
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VAT’s success is based on its superior toolkit May 2025 VAT Capital Markets Day 202519 VAT’s DNA consists of four key competencies that were developed in the course of its history and are actively nurtured and crucial for future success Customer focus • Laser-focus on customers • Pure-play focus on semi • Global footprint that means VAT is always a call away Skills and know-how • 60 years of vacuum engineering competence • Dual education system in CH and expanding to MY is a barrier to entry Technology leadership • Uncontested #1 in vacuum valve technology and integrated solutions • Demonstrable outperformance of VAT products vs. competition Flexible operating model • Ramp capacity of +/-30% QoQ • Outsourcing ratio of 75%/ variable costs of 67% • Increasing automation and BCC content
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Our customer focus throughout our history May 2025 VAT Capital Markets Day 202520 Challenges from our customers drive our engineers, and we have always delivered best-in-class solutions 60-year partnership: CERN particle accelerators From simple isolation valves to control valves Entering the semi market in 1988 VAT enables Nobel Prizes! • Initial VATLOCK technology ○ Two conditions: open/close • Semi customer demand for superior process control ○ Increased complexity requires precision • CERN was VAT’s 2nd customer ever • Major breakthroughs not possible without vacuum • VAT valves have been instrumental in many breakthroughs in science • Most recently, the 2023 Nobel Prize in Physics awarded to Professor Krausz, Pierre Agostini, and Anne L’Huillier for quantum optics • Semi customers required shift in organization and lead times →
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Customer focus throughout the organization May 2025 VAT Capital Markets Day 202521 VAT puts its customers at its core, supported by product teams and research engineers R&D and technology Manufacturing End-to-end value chain Pure play focus • VAT’s vacuum valve technology is the main reason our customers come to us • Tailored solutions for customer- specific needs • Zero tolerance for defects in manufacturing • 30% QoQ surge capacity available • Complete portfolio of valves and adjacent products • Value chain offering from product inception to servicing • 60 years of experience in designing and manufacturing vacuum valves VAT customer centricity Global footprint • We are on the ground where our customers are
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Translating customer requirements into products May 2025 VAT Capital Markets Day 202522 For VAT, spec wins are a key measure of performance achievement and future growth potential. They reflect our competitive advantage in technology and value proposition Understanding core customer objectives Value Scale Quality Time to market Technology Requirement • Driving total cost of ownership over product lifetime • Short lead times • Availability of VAT capacity • World-class quality in design, manufacturing, and operational processes • Zero-defect mentality • Accelerate development time, prototyping and ramp • Strategic partner with leading vacuum and associated technologies supported by global R&D resources • World-leading vacuum design partner with financial strength to invest in R&D; for our global partners and throughout the cycle • We understand our customers and have earned their trust over decades • This differentiates our offering and makes us the preferred partner providing vacuum valves and solutions • Customer access provides us with application and system understanding • This translates into differentiating technology understanding over the entire product lifetime →
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Enhancing customer’s sustainability performance May 2025 VAT Capital Markets Day 202523 VAT supports its customers in meeting their sustainability goals Enhanced vacuum performance Easy maintenance and spare parts Design for longevity and repairability Sustainability data availability • Improved valve performance for enhanced production throughput • Improves efficiency, extended uptime and reduced leakage • Reduced environmental impact in production • Simplicity of use for the customer • Long-term availability of spares delivers consistent performance and longevity • Superior quality and built to last with circular economy considered in design • Reduces environmental impact thanks to the possibility of repair and keeping materials in the loop • LCAs for two bestselling products conducted and EPD calculated • Further expansion to another product in 2025; to be established as a standard 1 4 2 3
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Technology leadership in vacuum design May 2025 VAT Capital Markets Day 202524 VAT’s significant R&D spend translates into technology advances that result in spec wins and future business opportunities R&D spend R&D vectors Spec wins secure future growth (Visibility of customer business 2 to 5 years out)(VAT technology has immediate customer benefits) 0% 2% 4% 6% 8% 10% 0 10 20 30 40 50 60 70 2020 2021 2022 2023 2024 R&D in CHF % of net sales On basis of semi sales only , R&D spend is around 8% to 10%, in line with peers VAT R&D spend is as high as its closest competitors’ sales 106 112 99 120 132 2020 2021 2022 2023 2024 +12% Precision delivery and pressure control Yield and throughput in advanced semi process Fast and precise motion control Increased throughput and high process repeatability Sealing technology Vacuum integrity of vacuum regimes Purity and particles (incl. materials) Production yield and process resistance Vacuum design and applications Reduced complexity and lower footprint → → → → →
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VAT performance improves constantly May 2025 VAT Capital Markets Day 202525 Customers appreciate valve outperformance in precision, speed, and particle count which result in higher yield and throughputs in the chip manufacturing process VAT offers superior valve speed Slow Motion Particle counts continuously reduced Min. m particle size 2010 to 2020: <28nm; 2025 onwards: <18nm 1 0.12 0.01 0.001 2012 2016 2020 2022 beyond • (Nano-) Particle management is essential to drive high production yields at smaller node sizes • VAT’s expertise in advanced machining, cleaning, and material science improved particle performance by a factor of 1,000 • Speed of gate results in superior control performance and high process repeatability • This is a critical requirement for fast cyclic processes like ALD and advanced etch Particles per cycle 2'000 ms 300 ms 90 ms 30 ms 2000 2010 2020 2030E Valve speed (ms) Factor of 1,000 improved 22nm 10nm 5nm 3nm <3nm Node size evolution Factor of 1,000 improved
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VAT products are found in many areas of manufacturing May 2025 VAT Capital Markets Day 202526 Starting from its core, VAT provides all valve types to its customers, and has also expanded its offering into adjacencies such as advanced modules, motion components, and ALD valves
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Flexible operating model provides resilience May 2025 VAT Capital Markets Day 202527 VAT is exposed to the highly cyclical semi market. Our flexible operating model is a pre-requisite to manage volatility in the semi market Flexible workforce (up to around 25% of total FTEs are temporary employees – with no loss of know-how) • VAT demonstrates resilience in semi market downturns, which enables ○ Stable EBITDA margins ○ FCF generation Best cost country sourcing Ability to manage cost base flexibly (Insource ratio of 25% ) (2/3rds of costs are variable) (VAT supply chain continuously optimizes for components sourced in best-cost country) 25% 75% Temps Full-time 34% 55% 2024 2027E 75% 25% 67% 33% Best-cost country sourcing is expected to reach more than 55% by 2027 compared with 34% in 2024 (2022: 30%) Outsourcing of components Variable costs Temp staff share during various stages of the cycle: 2022: ~25% 2023: ~5% 2024: ~12% Resilience through the cycle Enablers Continuous improvement programs High degree of automation Protocols in cyclical downturns Cost focus
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We invest ahead of the cycle May 2025 VAT Capital Markets Day 202528 VAT’s capacity expansions in Malaysia and in Romania are progressing well ahead of the potential market ramp Malaysia 1B • Doubles plant 1A capacity • 56,000m2 of space available • Increases volume of semi manufacturing capacity Romania • Increases capacity in machining as internal supplier • Focus on specific competencies required by our customers
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Skills and know-how are key resources May 2025 VAT Capital Markets Day 202529 In-house retention and development of skills are crucial barriers to entry to VAT’s core markets. The apprenticeship system is a differentiator for VAT and is deployed in Malaysia HR needs based on future growth areas Swiss apprenticeship model a differentiator Machining and construction: apprenticeship program Targeted experienced hires for key roles Assembly: temps to enable flex model R&D: active talent acquisition for critical expertise • Vacuum and sealing technologies • Pressure control systems • Drive technology • Smart systems • Vacuum-related design • Materials, coatings, and surfaces • High purity and particle management • Vulcanization, bonding, and elastomers • Machining/assembly/welding Core VAT competencies Continuous development Basic training: apprentices start at around 16 years old Exam • Model is being rolled out in Malaysia to create similar career paths – 8 apprentices currently • 3.5 years programme, with potential to develop career at VAT thereafter Polymechanic (4 years of training) Designer (4 years of training) Production mechanic (3 years of training) Lab technician (4 years of training) 40 to 50 apprentices are currently at VAT 40% apprentices are still at VAT or have returned 1st apprentice stayed 49 years at VAT Focus training: 1 to 2 years, depending on role Exam
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May 2025 VAT Capital Markets Day 202530 Our intimate relationship with customers, a demonstrated technology advantage, flexibility and the right skills deliver growth Technology beats hurdles Flexibility is important Skills and capabilities It starts with our customers • Customer centricity and focus are what differentiates VAT • We are on the ground where our customers are and on site when our customers want us there • 60 years of exclusive focus on valves and systems • VAT’s technology advancement enables leading-edge vacuum applications • Increasing spec wins secure future business and market share growth • R&D spend protects core and expands VAT into adjacent fields • VAT offers customers a 30% ramp-up capability • VAT invests ahead of the cycle • Flexibility also delivers resilience in downturns: Proven cost control and downsize protocols are in place • Internal core competence communities drive the technology roadmap • Apprenticeship training system is key and applied to Malaysia to generate similar success • Strong focus on learning and talent development resulting in low retention
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04 Growth strategy Finn Felsberg, EVP Semiconductor Solutions Group
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VAT has a clear growth path ahead May 2025 VAT Capital Markets Day 202532 Based on an entrenched position in core semi products, with additional growth from adjacencies, services, and advanced industrials products • Establishing a leadership position in vacuum valves across semiconductors and advanced industrial markets Before 2024: focus on core 2025 to 2029: grow adjacencies Beyond 2030: further growth • Strengthen leadership position via enhanced offering including service in semis and advanced industrial products • Increase share of wallet for tools with adjacencies (new products and new end-markets) • Continue to grow leadership position, both in semis and in advanced industrials, and grow adjacencies • Complement portfolio with further advanced products and vacuum sub-system solutions Leader in vacuum valves Leader in vacuum valves with adjacencies Leader with vacuum solutions portfolio
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Over 50% of VAT’s group sales will be generated in semi valves May 2025 VAT Capital Markets Day 202533 Source: TechInsights (March 2025) VAT achieved high market share and technology leadership in core valve products. Technology will ensure that VAT continues to deliver best customer value add over the product life cycle Core semi products Semi-related valves to remain VAT’s core product Strategic importance Largest market share Differentiated IP Differentiated IP High market share Simpler products with same value offering 2024 market share >75% across, >90% in leading edge Growth drivers Semi and WFE growth, new fabs Increasing vacuum content for leading-edge More process chambers in etch and deposition Control valves Transfer valves Isolation valves 2029E market size (CHF million) ~1,300 to 1,400 (core vacuum valves) 2024 to 2029E market CAGR ~12% 2024 2025E 2027E 2029E Semi valves Adjacencies >50% of group sales >50% of group sales Semi valve CAGR 2024 to 2029E: >15%
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Valves for new OLED production are a recent big win for VAT May 2025 VAT Capital Markets Day 202534 Providing valves used for OLED evaporators to the market leader is testament to VAT’s technology leadership and represents a large spec win Case study on valves for displays Tablet OLED • VAT won the spec win for the market leader in OLED display manufacturing in 2024 • Includes multiple transfer and control valves, previously developed for semi • Foundation for further spec wins and market leadership in OLED evaporators >20% expected growth in display 2024 to 2029E ~43% → >70% expected market share increase (OLED, LCD) 2024 to 2029E
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Adjacencies deliver SoW growth in high-spec products May 2025 VAT Capital Markets Day 202535 VAT’s technology is provided to customers through high-spec adjacent products that allow share-of-wallet growth beyond the core valve market Strategic importance Drive share of wallet Differentiated offering with technology / sensing Progression into precision delivery 2024 to 2029E market CAGR Advanced modules Motion components ALD inlet valves 2024 2025E 2027E 2029E Adjacencies Core semi valves Adjacencies CAGR 2024 to 2029E: >25% ~10% of group sales Up to 20% of group sales Growth drivers OEMs outsource complexity, vacuum and non-vacuum Replacing non- semi providers with optimized solutions GAA/2nm manufacturing ~10%→~15%→~20% Expected % of group sales of adjacencies by 2027E and 2029E 1% to 2% → 2% to 4% Expansion of VAT SoW between 2022 and 2027E 12% 12% 10% ~10% to 15% of group sales Expanding our customer offering beyond valves Adjacent products set to represent up to 20% of group sales
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Technology advantage results in share-of-wallet growth May 2025 VAT Capital Markets Day 202536
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Global Service adds to VAT’s outgrowth May 2025 VAT Capital Markets Day 202537 Service offering to outgrow semi market development and leverages the semi business large installed base towards our customers and IDMs Strong and growing presence in VAT core markets Gates and consumables Repairs Upgrades/ retrofits 2024 2025E 2027E 2029E Global Service CAGR 2024 to 2029E: >14% ~18% to 20% of group sales Service expected to remain around 18% to 20% of group sales ~3 to 5x Service revenues vs. original valve sale 45% → >60% Market share 2024 to 2029E Strategic importance Increasing installed base, new fabs Global offering of high-quality standards Retrofits, incl. for competitors’ products 2024 to 2029E market CAGR ~8% ~7% ~13% 2029E market size (CHF million) Over all products approx. CHF 700 million Serviceable installed base 1.7 million valves Revenue split (%) (2024) ~55% ~10% ~35% ~18% of group sales
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Global Service adds to end-to-end value chain offering May 2025 VAT Capital Markets Day 202538 Service offering complements VAT’s end-to-end value proposition. Sustainability-driven upgrades as an additional growth driver Service revenue generated on basis of installed VAT valves, retrofits, and adjacencies offering VAT repairable valve installed base Average annual fab utilization rate Core: Spare parts and repairs; gates, spare valves and upgrades Cost performance improvements through Adjacencies Adjacency retrofits Higher spec components – yield improvement Retrofit adoption rates of competitors’ valves Replacement retrofits Retrofits with more efficient VAT products Upgrades with lower resource consumption; fewer elastomers Sustainability
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Advanced Industrials grows in non-semi vacuum applications May 2025 VAT Capital Markets Day 202539 Business to grow substantially by leveraging existing semi products into selected profitable market segments. VAT remains front-footed in applications requiring vacuum Business model benefits from technology developments in semi 2024 2025E 2027E 2029E Advanced Industrials CAGR 2024 to 2029E: >12% Expected to be approx. 15% of sales Advanced Industrials derives growth from multiple markets ~15% of group sales ~6% to 7% Expected market growth 2024 to 2029E ~40% 2029E market share vs. 32% in 2024 >40 focus applications for VAT ~CHF 8,000 average order size >100,000 valves sold >1,600 customers • Leveraging existing semi products and technology in ultra- high vacuum technology • Targeting vacuum applications in profitable and attractive markets, with frequent repeat orders • Focus on larger accounts in a fragmented market, and leveraging distributors for smaller accounts • Ability to participate in “next big thing”
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Advanced Industrials offers additional growth avenues May 2025 VAT Capital Markets Day 202540 Advanced Industrials operates in fragmented high-vacuum niche markets representing VAT’s roots at the pulse of next-gen vacuum applications Advanced Industrials expected to grow >12% (2024 to 2029E CAGR) Over all markets approx. 6% to 7%2024 to 2029E market CAGR Strategic importance 2029E market size (CHF million) Proportion of Advanced Industrial sales (2024) Includes SiC, automotive, general industry >210 ~25% Targeted industries Attractive long-term growth; includes solar, fusion and nuclear enrichment ~60 to 80 ~15% Power generation Early access to innovation and emerging technologies ~70 to 80 ~25% Research Solid baseline with repeat order business ~160 to 180 ~20% Scientific instruments Cross sell existing portfolio ~140 to 160 ~15% Coating
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May 2025 VAT Capital Markets Day 202541 (1) 5-year CAGR 2024 to 2029 Continued strong growth in core semi valves. Additional market outgrowth from adjacencies, services and advanced industrials • >50% of total group sales • Continued >15%(1) growth up to 2029E, outgrowing market • VAT is the unmatched technology and market leader • Adjacencies will outgrow core and the market by >25%(1) • Growth in adjacent products reflects customer trust and VAT’s technology leadership • Evolves VAT into a vacuum systems integrator • Global Service leveraging large installed base, retrofits and enables sustainability • Advanced Industrials targets non-semi, profitable markets • Above industry growth of >14%(1) and >12%(1) respectively Growth in core to continue Expanding SoW through adjacencies Further profitable growth through Global Service and Advanced Industrials
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05 Financial outlook Fabian Chiozza, CFO
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May 2025 VAT Capital Markets Day 202543 (1) Semi and related includes semiconductors, displays, solar, LED lighting, hard disk drive Strong growth and market share gains across all business units WFE growth, technology transition, and share of wallet expansion driving double-digit growth Semiconductors • Core semi valves to deliver >50% of growth, supported by adjacencies • Driven by VAT’s skew to leading-edge chips and spec win rate of past years Global Service • Installed base of valves set to drive growth in consumables, upgrades, and retrofits • Accretive margin profile at up to 3-5x initial value of valve sale Advanced Industrials • Continue selective growth strategy with a focus on future-proof technologies • Leverage semi technology to identify additional UHV markets 2024 2029E 32% ~40% 2024 2029E Market share increase CAGR >12% 2024 2029E Core Adjacencies 71%(1) ~85% 2024 2029E Market share increase CAGR Core >15% CAGR Adj. >25% 2024 2029E 45% >60% 2024 2029E Market share increase CAGR >14%
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Capacity expanded ahead of the curve to harness future growth May 2025 VAT Capital Markets Day 202544 Major capex programs have been completed in preparation for next growth phase. Sufficient installed capacity for >CHF 2.4 billion of sales Installed manufacturing capacityNet capex (in CHF million) (in CHF million) • Significant growth capex programs completed • Normalization of capex into guidance range from 2026E onwards ~660 >1,100 2024 max ~330 >1,200 2024 max • Low volume/high mix semi manufacturing • Advanced Industrial specialization • Prototyping/service Penang, Malaysia • Volume semi manufacturing • Display and solar • Service Haag, Switzerland Utilization 0% 2% 4% 6% 8% 10% 0 20 40 60 80 2016 2017 2018 2019 2020 2021 2022 2023 2024 Capex in CHF % of net sales Guidance range
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Capital deployment strategy: allocation priorities unchanged May 2025 VAT Capital Markets Day 202545 (1) Including maintenance and growth capex Three-pillar cash investment strategy reflects our strategic priorities of investing ahead of the curve, focusing on technology and attractive cash returns to shareholders Guidance for 2025E to 2029ECash deployment history since IPO Capex R&D Dividend 2016 to 2024 CHF 385 million 2024 CHF 70 million 6.8% of sales 2016 to 2024 CHF 325 million 2024 CHF 61 million 6.5% of sales 2016 to 2024 CHF 1.34 billion 2024 CHF 188 million CHF 6.25/share Frontloaded growth capex following multiple years of investment in Haag, Penang, and Arad Higher R&D investments to secure competitive edge Excess cash to be returned to shareholders ~5 % of sales ~5 % of sales Up to 100% Capex over the cycle(1) R&D expenditure of FCF to equity distributed to shareholders
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CFO agenda May 2025 VAT Capital Markets Day 202546 Enforce our proven flexible operating model to provide further resilience in uncertain times Benefit from digital transformation and enable future growth opportunities • Plant 1B completed in Malaysia, Innovation Center opening in 2025 • Adapting existing capacities to future demand • Capability (R&D) build-out remains core • Provide customers 30% ramp capability QoQ • Roll-out of ERP into sales and service organizations in 2025/26 to integrate all business processes and connect to one global ERP • Enabler of scalability, productivity and ultimately profitable growth over the cycle • Disciplined cost and capacity management in line with customer build plans and our flexible operating model • Drive operational excellence programs • Leverage global footprint to reduce CHF exposure • Continue balanced hedging strategy • Strong balance sheet to support growth targets • Net debt/EBITDA below 1.0x • Net cash position by year- end 2026E VAT2B – our corporate and digital transformation program Cost discipline and FX Balance sheet and headroomInvesting ahead of the curve
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Attractive gross profit … May 2025 VAT Capital Markets Day 202547 VAT has consistently generated higher gross profit margins over time, evidencing our relentless focus on operational excellence and application of proven flexible operating model • VAT’s continuous improvement program contributes 2 to 3 ppts of gross margin improvements (gross) Net sales (in CHF million) 63% 62% 60% 61% 62% 63% 64% 62% 66% 50% 55% 60% 65% 70% 0 500 1'000 1'500 2'000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029E Net sales Gross profit Gross profit margin + 6 ppts GPM target 62% to 66% (1) Gross profit = net sales minus cost of materials plus/minus changes in inventories of finished goods and work in progress (1)
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…translating into strong EBITDA margins through the cycle May 2025 VAT Capital Markets Day 202548 Strong operational leverage despite R&D investments to enhance technology advantage Net sales (in CHF million) • Flexible operating model will secure VAT EBITDA targets through the cycle 20% 25% 30% 35% 40% 0 500 1'000 1'500 2'000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029E Net sales EBITDA EBITDA margin EBITDA target band: 30% to 37%
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VAT consistently generates strong FCF through the cycle May 2025 VAT Capital Markets Day 202549 Footprint investment programs funded through strong FCF generation. ERP/transformation efforts enabling extension of FCF conversion guidance range from 65% to 70% 86% 51% 58% 91% 70% 64% 57% 70% 62% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029E Free cash flow conversion Guidance range: 60% to 70% Free cash flow conversion (in %)
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Sales 2024 to 2029E: outgrowing WFE by approx. 2x May 2025 VAT Capital Markets Day 202550 Our core semi portfolio is expected to deliver up to 50% of our mid-term growth. Adjacencies will contribute around 50% of the remaining growth Growth in core semis, further expansion of SoW through adjacencies 2024 Core Adjacencies 2029E 942 CAGR 2024 to 2029E: low to mid teens Semiconductors Global Service Advanced Industrials • Constant currency basis • CMD 2025 assumptions for 2027E underlying sales guidance of CHF 1.5 to 1.7 billion ○ WFE: USD 125 billion ○ USD/CHF: 0.83 • Pro memoria: CMD 2022 assumptions for 2027E underlying sales guidance ○ WFE: USD 135 billion ○ USD/CHF: 0.95 • Expansion of core semi sales to drive approximately 50% of growth • Outgrowth of WFE (approximately 8%) by factor 2x • FX has impact on WFE market assumptions as well as VAT reporting in CHF
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Strong business fundamentals support an attractive investment May 2025 VAT Capital Markets Day 202551 Growth Profitability Capital allocation Main drivers 1 2 3 One trillion market Vacuum and leading-edge WFE Technology shift 1 2 3 Operational excellence Cycle management with flexible operating model Best cost country footprint/ reduced CHF exposure 1 2 3 Leading edge innovation Invest ahead of the curve Strong dividend strategy Key metrics Low to mid teens Sales growth 2025 to 2029E 30% to 37% EBITDA margin band 60% to 70% Free cash flow conversion rate Up to 100% Dividend payout of free cash flow to equity ~5% of sales Capex rates 2025 to 2029E ~5% of sales R&D rates 2025 to 2029E Stakeholder value proposition 2025 to 2029E is based on three key pillars
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A Q&A session
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Q&A session
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B Outro
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Group targets for 2025 to 2029E May 2025 VAT Capital Markets Day 202555 Our strategy and the resulting financial performance are a unique combination of our focus on profitable growth and the resulting ability to return excess cash to shareholders Key guidance parameters Sales growth (CAGR): Low to mid teens 2024 to 2029 EBITDA margin corridor: 30% to 37% of sales FCF conversion: 60% to 70% of EBITDA Additional guidance elements CAPEX invest: around 5% of group sales over the cycle Trade working capital: 22% to 26% of sales R&D spend: around 5% of group sales over the cycle Leverage: solid balance sheet to support growth targets ROIC: >45% over the cycle Dividend policy: up to 100% of FCF to shareholders
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Exciting growth story ahead for VAT An update on VAT’s continuing 60-year success story May 2025 VAT Capital Markets Day 202556 VAT outgrowing WFE by up to 2x VAT’s growth accelerated by advanced logic – GAA technology transition Vacuum-related WFE (12%) growing faster then WFE (8%) VAT solutions powering spec wins and share of wallet increases
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C Glossary
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Glossary May 2025 VAT Capital Markets Day 202558 ALD Atomic layer deposition CAGR Compound annual growth rate. Annualized average rate of revenue growth between two given years. Calculated taking the data points of the first and last year (2024 and 2029E); e.g., 2024 to 2029E represents a 5-year CAGR EPD Environmental product declaration GAA Gate-all-around transistors Gross profit Net sales minus cost of materials plus/minus changes in inventories of finished goods and work in progress High-NA EUV High numerical aperture, extreme ultra-violet lithography LCA Life cycle assessment OLED Organic light-emitting diode (screen) WFE Wafer fab equipment (spend) UHV Ultra-high vacuum environments
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Additional information May 2025 VAT Capital Markets Day 202559 Investor information Listing: SIX Swiss Exchange Currency: CHF Ticker symbol: VACN ISIN: CH0311864901 Financial calendar 2025 Wednesday, July 23 Half-year 2025 results Thursday, October 16 Q3 2025 trading update 2026 Tuesday, March 3 Q4 and full-year 2025 results Contact information Michel Gerber VP Sustainability and Investor Relations Phone: +41 81 553 70 13 michel.gerber@vatgroup.com Christopher Wickli Investor Relations Manager Phone: +41 81 553 75 39 christopher.wickli@vatgroup.com
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Thank you! VAT Vakuumventile AG Rütistrasse 4 9469 Haag, Switzerland +41 81 771 61 61 ch@vatgroup.com