VAT Media Release on Q4 and FY 2023 Preliminary Results

• Strong Q4 2023 orderS DUE TO stabilizing demand in Semi market and SIGNIFICANT PROJECT WINS IN ADVANCED INDUSTRIALS
• FULL-YEAR 2023 RESULTS LOWER COMPARED TO RECORD LEVELS OF 2022

Based on preliminary and unaudited figures, VAT’s full-year 2023 results are below the record level of 2022 and in line with the outlook given last year, and the developments observed through 2023.

In the Valves segment, the business unit Semiconductor reported the expected lower results for 2023, as the softer investment environment in the semiconductor industry prevailed throughout the year. Sequentially improving order intake across all geographies over the past three quarters indicates that the market is slowly recovering. The Advanced Industrials business benefited from overall positive dynamics across all its end markets, in particular in energy transition. As lower utilization rates in the semiconductor fabs negatively impacted demand for spares and repairs as well as consumables, the Global Service segment showed similar developments as the Semiconductor business unit despite the high installed base.

Q4 2023 results

VAT recorded preliminary fourth quarter orders of around CHF 237 million, down 5% compared with the result posted a year earlier but up 44% sequentially compared to the third quarter of 2023. The Q4 order intake confirms the gradual improvement of the semiconductor investment cycle going into 2024 after the trough at the beginning of 2023 but was also boosted by significant project wins in the Advanced Industrials business unit. Preliminary fourth quarter net sales came in slightly above the mid-point of the guidance range of CHF 200 to 230 million provided in October 2023, and amounted to approximately CHF 221 million, down 24% compared with the same quarter a year earlier. Compared with the third quarter of 2023 sales were up 6% sequentially. The fourth quarter book-to-bill ratio amounts to 1.1 and the order book at year-end amounted to approximately CHF 292 million, 3% higher than at the end of the third quarter of 2023 but 44% lower than at the end of 2022.

Full-year 2023 results

For the full-year 2023, preliminary orders amounted to approximately CHF 692 million, down 43% compared to a year earlier and net sales decreased by 23% at current FX rates to approximately CHF 885 million. Preliminary figures indicate that VAT achieved a full-year EBITDA margin of approximately 30.5%. This reflects the impact of the lower sales and adverse foreign exchange developments especially of the Swiss franc against the US Dollar. The EBITDA margin in the second half of 2023 amounted to approximately 32%. Preliminary free cash flow for the full-year 2023 reached approximately CHF 185 million.

A more detailed update on the outlook for 2024 will be provided with the release of the company’s final full-year 2023 results on March 5, 2024.

¹ Quarter-on-Quarter; ² Year-on-Year

Financial calendar 2024

ABOUT VAT
We change the world with vacuum solutions – that is our purpose as the world’s leading supplier of high-end vacuum valves. The Group reports in two segments: Valves and Global Service. The Valves segment is a global developer, manufacturer and supplier of vacuum valves for the semiconductor, displays, photovoltaics and vacuum coating industries as well as for the industrial and research sector. Global Service provides local expert support to customers and offers genuine spare parts, repairs and upgrades. VAT reported net sales of CHF 1,145 million in 2022 and employs some 3,000 people worldwide, with representatives in 29 countries and manufacturing sites in Switzerland, Malaysia, and Romania.

FORWARD-LOOKING STATEMENT
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 the date of this report.
 

1812457  11-Jan-2024 CET/CEST