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No. 1 global market position in high-end vacuum valve
technology
PASSION.PRECISION.PURITY.
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Agenda
PASSION. PRECISION. PURITY.
VAT at a glance1
Half-year 2019 highlights2
2019 priorities, conclusion and outlook 3
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PASSION. PRECISION. PURITY.
1965
1983
1988 2009 2015
VAT founded
in Flawil (CH)
Acquisition of VAT
by Partners Group
and Capvis.
Ramp-up of
manufacturing
center in Malaysia
2012
Acquisition of
vacuum valves
product line
from Inficon
Manufacturing
center establ.
in Malaysia
Gate manufacturing
est. in Taiwan
Acquisition of
Sysmec (ROM)
Entry into the
semiconductor
industry
Establishment
of Comvat
2016
IPO at SIX
Swiss
Exchange
2017
Substantial
capacity
expansions
2008 2014
VAT’s success story over 50 years – 30 years
experience in the semiconductor industry
2018
Record net
sales and
EBITDA
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Low-cycle six-month results in line with expectations
vs strong first half of 2018
PASSION. PRECISION. PURITY.
1 Segment margin based on segment net sales
Segment(% of total
net sales)
Net sales CHF 56m
Global Service(22%)
Industry
(3%)
Valves
(75%)
CHF 198mCHF 263m
EBITDA
margin1 44.2% 9%25.4%25.1%
VAT Group AG
(100%)
CHF 9m
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VAT Business Units enabling innovation in your daily
life and facilitating the digitalization of the world.
PASSION. PRECISION. PURITY.
General Vacuum
Semiconductors Display & Solar
Modules Services
Bellows
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VAT offers widest variety of valves.
PASSION. PRECISION. PURITY.
Isolation
valves
Transfer
valves
Control
valves
Angle valves Gate valves All-metal valves Pendulum valves
MONOVAT L-Motion XL-VAT
Butterfly valves Combo valvesControlled angle
valves
Large gate valves
ATM Doors TwinVAT
Controlled pendulum valves
Symmetrical flow systems
6
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Material suppliers
Vacuum system
component
manufacturers
Equipment
manufacturers (OEMs)
Device manufacturers
(Semiconductor, displays, solar, …)
Valves
VAT within the value chain of the vacuum / process industry
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VAT – focussed business model
Market leader in high-growth technology sectors
PASSION. PRECISION. PURITY.
VAT
values
Passion
PurityPrecision
– Pure play business model focused on mission-critical
high-end vacuum valves
– Technology leadership and long term, trusted
partnerships
– Leading market position and high barriers to entry
– Multi-dimensional growth driven by accelerating
importance of vacuum as key enabler
– Focused strategy and highly skilled workforce
– Best-in-class financial profile and high profitability
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Agenda
PASSION. PRECISION. PURITY.
VAT at a glance1
Half-year 2019 highlights2
2019 priorities, conclusion and outlook 3
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Sequential growth in Q2 vs Q1 indicates bottom of
current market cycle has been reached
PASSION. PRECISION. PURITY.
Market share gains
continue in H1,
spec wins key to future
success
Focus on cost,
technology and
innovation
Execution of Global
Service yields double-
digit sales growth
Six months EBITDA
margin of 25.1%,
well above previous
trough levels
Quarterly net sales
sequentially up in Valves
and Global Service, down
in Industry
Market expectations for
H2 remain mixed,
no substantial recovery
expected before 2020
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6M 2019 – Group key figures
PASSION. PRECISION. PURITY.
Third party net sales
CHF 263 m
-32%
EBITDA
CHF 66 m
-46%
EBITDA margin
25.1% (-5.5pp)
EBIT margin 16.3%
(-10.9pp)
Free cash flow
CHF 45 m
-4%
Free cash flow margin
17% (+5pp)
Free cash flow
conversion
69% (+30pp)
Net debt/EBITDA
1.5x
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Market trends remain mixed across all our major
business segments
PASSION. PRECISION. PURITY.
Semiconductors
WFE investments substantially down, driven by memory; foundry and advanced logic strong
Technology advances continue, industry preparing for next upcycle
Display
Overall investments in display equipment down especially in Korea, few OLED projects in China
TV sizes still dominated by LCD (Gen 10.5)
Solar
PERC remains major technology, Hetero Junction Technology still challenging
Market demand for new PV manufacturing equipment in China remains high
Industry & Research
Growth prospects continue in several industrial applications, including automotive, medical etc.
Research spending by governments remains healthy, particle physics (CERN, ITER)
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Our three medium-term growth dimensions
remain in place
PASSION. PRECISION. PURITY.
1st dimension: End market growth
Medium-term digitalization growth trends such as IoT, AI, AR, etc. remain in place
Hyperscale applications, cloud storage growing, PC market recovery
5G build-up gaining steam, paving the way for new applications, e.g. autonomous vehicles
2nd dimension: Equipment growth
Capacity adjustments continue, increasing investment activities expected during 2020
Technology advances in logic and foundry continue, memory slowdown bottoming out
Overall investment climate still negatively affected by China/USA trade conflict
3rd dimension: Vacuum valve growth
Record number of new platforms and applications being developed
EUV lithography firmly established in small nodes, ecosystem requires more vacuum
“Zero” particle environments drive opportunities for VAT motion components and modules
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39% 41%
46% 49% 50%
2015 2016 2017 2018 6M 2019
No 1 market position further strengthened –
specification wins remain on high level
PASSION. PRECISION. PURITY.
Source: VLSI Research July 2019, based on 1Q19 actual plus 2Q19 estimated1 All Industries includes semi & related, General Vacuum.2 Semi & related includes Semiconductors, Displays, Solar, LED Lighting, Hard Disk Drive.3 Semi includes Semiconductors, LED and HDD
Market share All Industries 1
45% 47%
53% 55%
57%
2015 2016 2017 2018 6M 2019
Market share Semi & Related 2
Total vacuum valve market size2015: USD 531m
2016: USD 688m
2017: USD 855m
2018: USD 807m
6M 2019E: USD 251m
Total vacuum valve market size2015: USD 804m
2016: USD 969m
2017: USD 1’179m
2018: USD 1’138m
6M 2019E: USD 391m
54% 56%
62% 63% 65%
2015 2016 2017 2018 6M 2019
Market share Semi 3
Total vacuum valve market size2015: USD 350m
2016: USD 400m
2017: USD 539m
2018: USD 502m
6M 2019E: USD 158m
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49%
6% 5% 5% 4% 4% 3% 2% 2%
20%
2014 2015 2016 2017 2018
Source:VLSI Research February 2019, 2018 full year data preliminary1 All Industries includes Semi & related, General Vacuum
Semi & related includes Semiconductors, Displays, Solar, LED Lighting, Hard Disk Drive
Market share All Industries 1
Total vacuum valves market size
2014: USD 767m
2015: USD 804m
2016: USD 969m
2017: USD 1’179m
2018: USD 1’1399m
VAT Market share All Industries – Full Year 20181
PASSION. PRECISION. PURITY.
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6M 2019 – Group key figures
PASSION. PRECISION. PURITY.
Third party net sales
CHF 263 m
-32%
EBITDA
CHF 66 m
-46%
EBITDA margin
25.1% (-5.5pp)
EBIT margin 16.3%
(-10.9pp)
Free cash flow
CHF 45 m
-4%
Free cash flow margin
17% (+5pp)
Free cash flow
conversion
69% (+30pp)
Net debt/EBITDA
1.5x
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Agenda
PASSION. PRECISION. PURITY.
VAT at a glance1
Half-year 2019 highlights2
2019 priorities, conclusion and outlook 3
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Semiconductor market 2025Big data and instant data era driving WFE capex
Avg. WFE
$50B
Avg. WFE
$60B-$70B
2020 2025201720102000
Mobile +
Social Media Era
PC +
Internet Era
Avg. WFE
$25B
Avg. WFE
$32B
Mobility, AI, 5G and IoT
Technologies will be the key drivers
boosting market growth
WFE – Wafer Fab Equipment
PASSION. PRECISION. PURITY.
2013 – 2016 2017 – 2020 2021 -2023 Samsung Semi CAPEX
~$12bn ~$22bn ~$26bn over the years
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External market factors remain volatile but bottom of
down-cycle seems reached
PASSION. PRECISION. PURITY.
Semiconductor
Order activity continues to be substantially below the record levels of 2017/2018
General caution dominates at all levels, investment decisions still pushed out
Memory inventories to gradually decline; ASP erosion seems to be bottoming out
Ramp activities for 7nm and 5nm logic chips (IDMs and foundry) are slowly gaining momentum
Latest market forecasts1 for 2019 indicate:
Semiconductor IC market likely to decline -12% (-5% in February forecasts)
Semiconductor Capex projected to decline -16% (-12%) with memory Capex -31% (-26%)
Wafer Fab Equipment market expected to decline between -19% and -22% (-15% to -20%)
Vacuum Processing Equipment market expected to decline about -24% (-20%)
1 VLSI research July 2019
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New applications in OLED may offset decline in
LCD activity
PASSION. PRECISION. PURITY.
Display
Smartphone sales still moderating; introduction of new technologies (foldable smartphones)
starting; OLED displays more widely introduced; 5G installations ongoing, demand driver for
2020/21 smartphone sales
Large TV LCD displays continue to fuel investments in G10.5 Fabs
Overcapacity situation triggered by excess display Capex in 2017 and 2018 gradually
normalizing but at slow pace
Display equipment market expected to decline about -23% (-38% in March)
Solar
Crystalline silicon remains largest market accounting for more than 75% of total solar revenues,
thin film expected to grow steadily in the near-term
Investments by Chinese panel manufacturers increase demand for vacuum equipment
1 DSCC July 2019
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Focus on three key levers to strengthen competitive position and
emerge stronger from current market moderation
PASSION. PRECISION. PURITY.
Internal
priorities
Innovation &
market share
Working
capitalCost manage-
ment
Growth
Free Cash
FlowProfitability
1
2 3
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Innovation is key to success
PASSION. PRECISION. PURITY.
• VAT invests over CHF 30 million per year
in R&D
• About 20% of workforce working in
innovation; more than 150 R&D engineers
and scientists
• Success measured by number of
specification wins
• Record number of wins in Semi, Modules
and Display & Solar
• Systematic tracking in General Vacuum
and Global Service as of 2018
1
Semi Modules Display &Solar
GlobalService
GeneralVacuum
Total
Specification wins
2016 2017 2018
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2
3
VAT is the clear leader in the Patent Asset Index™
and has further extended this position in 2018
359172628
71
115
212
420
Strength of Patent Asset Index™
1
PASSION. PRECISION. PURITY.
0.0
1.0
2.0
3.0
4.0
5.0
0 50 100 150Ave
rag
e q
ua
lity (
co
mp
etitive
im
pa
ctT
M)
Quantity (portfolio size)
Development of Patent Asset IndexTM
Note: The development over time is shown for Reporting Date 2013 to 2019.
today
VAT
2013
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Flexible operational structure coupled with
targeted cost measures to protect profitability
PASSION. PRECISION. PURITY.
H2 EBITDA margin of 29.9% vs H1 despite
substantial sales decline due to flexible
business and cost model
Focus on maximum operational agility to
adjust to lower volumes while preparing for
next ramp
Increase utilization of Malaysia plant;
systematic transfer and qualification of Semi
and Display related products
Innovation expenses are excluded from any
cost saving plans
2
264 321 332 300202
389 367 313 335 364 411508
692 698314213
426 451374
419464
531630
860 858
2005 2007 2009 2011 2013 2015 2017
Reported net sales FX corrected net sales
(CHFm) CAGR 9.6%
41%
23%
31%
23%
31% 31% 31%
39%
27%
39%
33%
37% 37%36%
24%
12%
20%
12%
26%
16%
18%
2005 2007 2009 2011 2013 2015 2017
Adj. EBITDA margin FX corrected adj.EBITDA margin FCF margin
CAGR 7.8%
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Measures to generate cost savings
PASSION. PRECISION. PURITY.
Operational improvement and cost savings
identified in bottom-up process; will
contribute to future margin support
2019 purchasing savings expected to yield
the majority of savings; shift to Asia and
Eastern Europe, improved supplier
management
Temporary insourcing of certain products
to better utilize existing equipment
Maintain short time work until markets
recover
2
61%8%
11%
13%
7%
Sources of operational improvements 2019
Purchasing
Product development
Quality
Manufacturing
Logistics
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Working capital management and lower capex support
free cash flow generation
PASSION. PRECISION. PURITY.
Year-end 2018 net trade working capital at
23% of net sales above mid-term target of
20%
Further reduction of inventory in all
categories: raw materials, work in
progress and finished goods
Capex lower to CHF 30 - 35 million
Maintain readiness to support future
customer expansion
3
24%
26%
12%
21%
20%
17%
12%
18%
26% 25%
16%
18%
2007 2009 2011 2013 2015 2017
FCF margin
FCF margin
4.7%
3.1%
3.8%
6.9% 6.9%
2014 2015 2016 2017 2018 2019
Capex Development
Capex in CHF % of net sales
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Conclusion
PASSION. PRECISION. PURITY.
VAT’s medium-term growth drivers such as the Internet of Things, cloud
computing and storage, artificial intelligence and many other global
digitalization trends are expected to fuel further demand for semiconductors
and advanced displays and remain firmly in place
While VAT’s second-quarter 2019 orders and sales indicate an end to the
cyclical market downturn, visibility for the rest of 2019 remains limited
Independent market researchers and VAT customers now expect
investments to slowly recover during 2020 with first signs still possible
toward year-end 2019
Trade disputes remain big uncertainty
VAT’s focus on service expected to yield strong results
Market
trends and
VAT focus
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Qualitative outlook for full-year 2019; top line
guidance for Q3 2019
PASSION. PRECISION. PURITY.
VAT expects 2019 net sales1 to be lower compared with 2018
VAT also expects EBITDA and EBITDA margin to be lower than 2018
VAT maintains its mid-term EBITDA margin target of 33% by further
improvements of VAT’s overall cost structure
Net income also expected to be lower, while Capex is expected to be
CHF 28 - 32 million
Free cash flow expected to be higher on working capital reduction and lower
Capex
Full-year
2019
1 at constant foreign exchange rates
For the third quarter of 2019, VAT expects net sales1 to be between
CHF 130 - 140 million
Q3 2019
guidance
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Backup slides
PASSION.PRECISION.PURITY.
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6M 19 order decline reflects moderation after record levels in 2018,
sequential development indicates bottoming out of down cycle
PASSION. PRECISION. PURITY.
166134
391
262
114 112
6M 2018 6M 2019
Q2 order intake Half-year order intake Order backlog
Half-year
2019 order
intake
-31%
Q2 2019 order
intake
-19% Half-Year
2019 order
backlog
-2%
Order backlog as of June 30, 2019 and December 31, 2018
in CHF million
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387
263
(149)
22
(1) 4
Volume reductions largest contributor to negative
sales bridge
PASSION. PRECISION. PURITY.
Volume declines in Semi and Display more than offset advances in Global Service and General Vacuum
Healthy pricing environment despite lower volumes, FX only with minor impact
6M 2018 Volume Product mix Price FX 6M 2019
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EBITDA margin above previous trough; demonstrates
VAT’s flexible operating structure and strong cost management
PASSION. PRECISION. PURITY.
189
135
387
263
122
66
0
50
100
150
200
250
300
350
400
450
500
6M 2018 6M 2019Q2 net sales Half-year net sales Half-year EBITDA*
25.1%
31.6%
EBITDA margin*
Sales -32%
in CHF million
Lower topline results reflected in EBITDA and EBITDA margin
EBITDA margin well above previous trough levels, result of VAT’s flexible operating structure and strong cost
management
Net negative impact of 1.3 percentage points on EBITDA from FX headwind and IFRS 16 adoption
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Sequential positive order and sales development;
stable book-to-bill
PASSION. PRECISION. PURITY.
in CHF million
Continuous sequential decline in order intake and sales since record Q1 2018 stopped
Book-to-bill ratio recovered to around 1x sales, supported by gains in Service and General Vacuum
0.00
0.20
0.40
0.60
0.80
1.00
1.20
0
50
100
150
200
250
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Order intake Net sales Book to bill
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Net sales by region
Half-year 2019 net sales CHF 263 million
PASSION. PRECISION. PURITY.
Net sales by market segment
75% (79%1) Valves
22% (15%1) Global Service
3% (6%1) Industry
47% (52%1) Asia
34% (31%1) Americas
19% (17%1) EMEA
1 2018 numbers
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Valves: 75% of net sales
PASSION. PRECISION. PURITY.
Semiconductors & Modules
Reductions in investment expected to have reached
the bottom in H1 2019
VAT increased engineering capacity to better serve
customer needs
Display & Solar
Chinese display investments compensate partially
soft demand from South Korea, solar driven by
China
Major market players continue R&D in new
applications (foldable phones, premium OLED TVs)
Down-cycle seems to be bottoming out, 6M book-to-
bill at 1.2 times
General Vacuum
First order received for a vacuum furnace
application for battery drying in China
in CHF million Q2 2019 Q2 2018 Change
Order intake 101.2 136.2 -25.7%
Net Sales 101.4 159.5 -36.4%
in CHF million 6M 2019 6M 2018 Change
Order intake 199.3 311.4 -36.0%
Net sales 197.7 323.3 -38.8%
Segment EBITDA 56.5 118.9 -52.5%
EBITDA margin 25.4% 34.5%
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Global Service: 22% of net sales
PASSION. PRECISION. PURITY.
Portfolio expansion yields first results
Sales growth driven by repair services and spare
parts
Expansion and upgrade of retrofit portfolio allowing
customers to improve performance of existing tools
Development of new products for the subfab market
to broaden the portfolio of products for this critical
portion of the business
Designed to provide safer and cleaner management
of subfab systems resulting in less maintenance for
the end users
Investments in dedicated service infrastructure
continue in the major Asian markets and US
in CHF million Q2 2019 Q2 2018 Change
Order intake 28.0 25.8 8.5%
Net Sales 29.5 24.0 22.9%
in CHF million 6M 2019 6M 2018 Change
Order intake 55.1 53.6 2.8%
Net sales 56.4 50.7 11.2%
Segment EBITDA 25.0 24.3 2.9%
EBITDA margin 44.2% 47.8%
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Industry: 3% of net sales
PASSION. PRECISION. PURITY.
Business model adjustments continue
New scope of Industry segment since
January 1, 2019
Bellows business moved to Valves segment
Damper for high-efficiency automotive fuel injection
systems are by far the largest part
of the segment
Weak performance mainly due to the temporary
reduction in demand for these dampers, reflecting the
introduction of new emission regulations in several
markets
in CHF million Q2 2019 Q2 2018 Change
Order intake 4.5 3.6 25.0%
Net Sales 4.4 5.3 -17.0%
in CHF million 6M 2019 6M 2018 Change
Order intake 7.2 16.0 -55.0%
Net sales 8.9 12.6 -29.4%
Segment EBITDA 1.2 2.7 -55.6%
EBITDA margin 9.1% 15.1%
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Lower operational results, higher depreciation and timing
of tax recognition feed through bottom line
PASSION. PRECISION. PURITY.
Lower operational result and higher depreciation levels (+35%) negatively affect EBIT
New Swiss tax regulation led to timing difference between tax recognition and tax credits, expected to normalize during second half of 2019
in CHF million 6M 2019 6M 2018 Change
EBIT 43.0 105.0 -59.1%
Finance net -4.6 -5.2 -11.6%
EBT 38.4 99.8 -61.6%
Income tax expenses -13.5 -16.3
Effective Tax Rate -35.2% -16.3%
Net income 24.9 83.6 -70.2%
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Healthy free cash flow generation despite lower
operational results; cash flow conversion recovers
PASSION. PRECISION. PURITY.
Lower operational results yield weaker cash flow from operations; net trade working capital down CHF 8
million, but at 26% of net sales (medium-term target of 20%)
Finalization of factory expansion in Malaysia in 2018 allows for substantial Capex savings
81
52-36%
(34)
(7)-80%
4745
(-4%)
Free cash flow
Cash flow from operating activities Cash flow from investing activitiesFree Cash Flow
6M 2018 6M 2019
100%
79%
57%
39%
69%
6M 2015 6M 2016 6M 2017 6M 2018 6M 2019
Free cash flow conversion
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Seasonally higher leverage ratio, year-end net debt
expected to fall below 1x EBITDA
PASSION. PRECISION. PURITY.
Slightly higher net debt the result of small reduction in
cash balance
Gross debt 2018 comprises CHF 200 million bond
issued in May 2018 and revolving credit facility
Seasonally higher leverage level after payment of
CHF 120 million dividend in May 2019 coupled with lower
EBITDA
Year-end leverage expected to fall below 1x
326330+1%(105)
(94)-10%
222
237+7%
Net debt development
Gross debt Cash and cash equivalents Net debt
1.9
1.4
0.9
1.1
0.7
1.0
0.7
1.5
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Dec 31,2015
June 30,2016
Dec 31,2016
June 30,2017
Dec 31,2017
June 30,2018
Dec 31,2018
June 30,2019
Target level of
1.0x Net
Debt/EBITDA
6M 2018 6M 2019
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Summary of 6M 2019 financial results
PASSION. PRECISION. PURITY.
Achievements 6M 2019
Expected reduction in operating results compared to record first half in 2018
EBITDA margin as expected about 200bps above previous trough levels on a combination of
lower turnover, investments in operational improvements and FX headwind
Sound free cash flow generation due to lower Capex and trade working capital reduction in
absolute terms
Net income and EPS additionally affected by timing differences under new Swiss tax
regulations
Finance priorities second half of 2019
Continue cost improvement programs with aim to increase EBITDA margin in H2 2019
Manage further reduction of trade working capital in absolute terms and as a percentage of net
sales (medium-term target of 20% remains in place)
Disciplined approach to Capex, contain it between CHF 28 – 32 million
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VAT’s medium growth drivers remain intact as data generation continues to grow exponentially
A city of 1 million people is expected to generate 200m GB of
data per day by 20201
Source: Applied Materials, Cisco
50mGB/day
55mGB/day
50mGB/day
40mGB/day
4mGB/day
2mGB/day
Smartbuildings
Smartfactories
Public safetysystems
Autonomouscars
Smartairplanes
Socialmedia
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Zetta-
bytesGlobal connected
user platform
2006-2015
Computer
proliferation
1996-2005
Mainframe
computing
1985-1995
Mega-
bytes
Giga-
bytes
Exa-
bytesData
economy
2016 and beyond
Source: Lam Research Corporation
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Capital intensity is increasing across all WFE markets
LCD OLED
Display 3
• OLED Evaporation
• Etching
• Encapsulation
• ELA
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Planar 3D
NAND 2
Technologies • Etching incl. ALE
• Deposition incl.
ALD
• Etching
• Deposition
• Multi patterning
• Vertical scaling
• Etching
• Deposition
• New memory
materials
Market
segments1
VAT growth
drivers
• Increases in the technological complexity drives capex and vacuum intensity
• Vacuum equipment portion of total equipment to grow from 52% in 2017 to 60% in 2022 4
1 Source: Applied Materials2 WFE USD billion; greenfield 100k WSPM3 Equipment USD billion; Gen 64 VLSI Research January 2018, Semi & related ratio of Vacuum fabrication equipment
~60%
28nm <7nm
Logic 2
~100%
25nm <16nm
DRAM 2
~40%
~425%
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Critical sub-components market development 2018-2023Vacuum continue to be high growth in SEMI sub-component market
* Source: VLSIresearch September 2018
Vacuum components and sub-
systems could reach $2.8B
Vacuum pumps, pressure
gauges and vacuum valves
combined make up the biggest
expense on the bill of materials
for semiconductor OEMs
Integrated sub-systems are
growing considerably but OEM’s
are pushing out the integrators
Wafer handling continues to be
an attractive segment as does
fluid management
Vacuum
Integrated Subsys.
Power
Fluid Management
Wafer Handling
Other Subsystems
Thermal
Integrated Process
Diagnostics
2018
2023
$B
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Technology Landscape 2025 - scaling & diversificationScaling via Moore’s law is slowing, materials and new architecture accelerating
Source: IMEC, 2017
Year of
1st Introduction
2011 2013 2015 20192017 2021 2023 2025
log2(#transistors/$)
28nm20nm
14nm
10nm
7nm
5nm
3nm2nm
14Å
Sub 3nm
2nd Gen. EUV
7nm
1st Generation
EUV
5nm in high volume manufacturing
3nm starting production
Scaling slowing down &
close to saturation
New materials:
Co, Ru, Ge, TiN, …
Device Technology:
Gate All Around, Emerging Non Volatile Memory
System Technology:
3D integration allows heterogeneous stacking
Scaling requires EUV and further
drives # of vacuum process steps
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Current growth forecast for the Semi market within
historical values but with reduced cyclicality
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-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
1984 1988 1992 1996 2000 2004 2008 2012 2016 2020
% change of Semi unit shipments % change of Semi sales (USD)
Source: VLSIresearch July 2019
0
200
400
600
800
1'000
1'200
1'400
1'600
1984 1988 1992 1996 2000 2004 2008 2012 2016 2020
Semi unit shipments (billion)
Semi Sales (USD billion)
1984 - 2023 2000 - 2015 2012 - 2017 2018 - 2023
Semi unit shipments (billion) 7.2% 5.2% 6.3% 5.9%
Semi Sales (USD billion) 7.5% 3.6% 7.1% 4.2%
CAGR over different periods
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Wafer fabrication equipment remains on a high level
and is expected to growth again in 2020
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Source: VLSIresearch July 2019 and Semi.org June 2019
Affordability Ratio % = Total Semi Equipment Revenues/IC Revenues
Foundry37%
DRAM18%
Flash18%
Logic & Other27%
2019 WFE CAPEX by product
0%
5%
10%
15%
20%
25%
30%
35%
0
100
200
300
400
500
600
2000 2004 2008 2012 2016 2020
Total Semi Equipment purchases as a % of IC revenues
Total IC Revenues USD bn Affordability Ratio %
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Information
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Investor information Contact information
Listing: SIX Swiss Exchange Michel Gerber
Currency: CHF Head of Communications &
Investor Relations
Ticker symbol: VACN Phone: +41 81 772 42 55
ISIN: CH 031 186490 1 E-mail: [email protected]
Financial calendar
Q3 2019 trading update Thursday, October 24, 2019
VAT Capital Market Day Monday, November 11, 2019
Full-year 2019 results Thursday, March 5, 2020
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Forward looking statements
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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.
