PFEIFFER VACUUM TECHNOLOGY AG INVESTOR ......solutions High vacuum Industry Coating Semiconductor...

PFEIFFER VACUUM TECHNOLOGY AG

INVESTOR RELATIONS PRESENTATION

November 2019

■ 2 © Pfeiffer Vacuum • Company Presentation • November 2019

Agenda

Pfeiffer Vacuum at a glance

Market overview

Business strategy

Financial results

■ 3

Collaboration

… Communication

Pfeiffer Vacuum as a leader in high vacuum technology

is contributing through its high value services and

product offer to the ongoing industry revolution driven by:

The digitalization

The energy transition

The biotechnology ramp-up

The nanotechnology revolution

Mission of Pfeiffer Vacuum Group

© Pfeiffer Vacuum • Company Presentation • November 2019

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At a glance

Founded in 1890 by Arthur Pfeiffer

Headquarter in Asslar, Germany

High-vacuum technology leader

Serves four different markets: semiconductor,

coating, industry, R&D analytics

World-wide manufacturing and service

infrastructure

© Pfeiffer Vacuum • Company Presentation • November 2019

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Investment highlights

Serves high-growth markets

Diverse markets; dampens cyclicality

Positioned for accelerated growth

Strong cash generation

Dividend of € 2.30 per year/share 2019

© Pfeiffer Vacuum • Company Presentation • November 2019

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2018: 20.5%

Our market

Served

Markets

(% of PV

sales FY

2018)

Medium to high vacuum solutions

High to ultra-high vacuum solutions

Rough vacuum, industry process solutions

Detection Systems

Components and Solutions

Advanced Service Solutions

PV

enabling

solutions

High vacuum

Industry Coating R&D and Analytics Semiconductor

Industry

process

Pharma/

Automotive Solar/Display

Industry

Coating OEM’s R&D Clusters OEM’S Fabs

2018: 15.1% 2018: 37.0% 2018: 9.7%

© Pfeiffer Vacuum • Company Presentation • November 2019

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Global sales, production and service network

€ 659 m sales in 2018

More than 3,200 employees

Over 20 sales & service locations

10 production sites, worldwide

Sales and Services

Production

Distributor

© Pfeiffer Vacuum • Company Presentation • November 2019

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Agenda

Pfeiffer Vacuum at a glance

Market overview

Business strategy

Financial results

■ 9

The vacuum technology market Vacuum markets 12M 2018 (ISVT)

Industrial Vacuum; 17%

Process Vacuum; 6%

R&D; 6%

Inst. Manufacturers; 8%

Thin-Film Deposition; 6%

Flat Panel Display; 8% Solar; 2%

Semi/Process Vacuum; 36%

Rough Vacuum;

10% Business Unit

Analytics, Industry and R&D

37% of total market

Business Unit

Semiconductor and Coating

53% of total market

Total market size

12M 2017: 4.76 bn Euro

12M 2018: 4.88 bn Euro

* Source: ISVT: Vacuum markets 12M 2018

© Pfeiffer Vacuum • Company Presentation • November 2019

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From megatrends to Pfeiffer Vacuum market drivers

© Pfeiffer Vacuum • Company Presentation • November 2019

Our target markets are key contributors in major mega trends

Shaping the next decades

Our industry at a turning point

…

Energy transition

Semiconductor Display Green Energy

• OLED, Flex

• Large TVs, Gen 10+ • Solar PERC/CIGS

• LED

• Energy storage

• Memory/3D NAND

• Foundry

• Patterning/ EUV

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Major growth drivers Significant growth drivers in Analytics, Industry and R&D

© Pfeiffer Vacuum • Company Presentation • November 2019

Business units Growth drivers

Semiconductor

and Coating

Digitalization (Big Data)

Energy

Electromobility

Analytics,

Industry and R&D

Health/Life-science

Security

Materials

Display size / resolution / 3D

etc.

Mobility

Energy

etc.

■ 12 © Pfeiffer Vacuum • Company Presentation • November 2019

Application examples Our wide range of applications is orientated towards future technologies.

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Agenda

Pfeiffer vacuum at a glance

Market overview

Business strategy

Financial results

■ 14

To become a strong number 2 in high vacuum technology:

Increasing market share (organically & acquisition) up to > 20%

Increasing EBIT profitability > 20%

Strengthening technology differentiation

Strategic goals by 2025

© Pfeiffer Vacuum • Company Presentation • November 2019

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150 M€ capital investment plan

• Service center

• R&D

• CSR

• Higher productivity

• Higher flexibility

• Higher quality

• China

• Vietnam

• Korea

• Romania

• > 20% market share

• > 20% EBIT margin

• One information system

• Productivity

• Reactivity

• Standardization

Strategic goals

Capacity increase

Operation modernization

Footprint expansion

IT

Other

I

II

III

IV

V

Cost down

Growth

Cost down

Growth

Cost down

KPIs

Growth

Sustainability

© Pfeiffer Vacuum • Company Presentation • November 2019

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Strategic focus pillars

Portfolio: Integrated products (solutions) and creating value through fast learning (digitalization) 1

Customer: Cooperation with key OEMs 2

Market: China as a new focus market 3

M&A: Drive acquisitions to extend technology and market positioning 4

Operations strategy: Global footprint in combination with strategic & local procurement 5

Organization: Implementation of new leadership structure 6

Business process: Integration of standardized systems, process excellence and digitalization 7

Strategic cooperation with the Busch Group 8

© Pfeiffer Vacuum • Company Presentation • November 2019

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Busch Group relationship synergies

IT

Pfeiffer Vacuum

+

Busch Group

Procurement

Service & Sales R&D /

Products

© Pfeiffer Vacuum • Company Presentation • November 2019

■ 18 © Pfeiffer Vacuum • Company Presentation • November 2019

Agenda

Pfeiffer vacuum at a glance

Market overview

Business strategy

Financial results

■ 19

Nine months financial results (in € millions, except EPS)

9M/2019

margin

9M/2018

margin

Δ

Sales 467.3 491.3 -4.9%

Gross profit 161.4 34.5% 176.6 35,9% -8.6%

EBIT 48.9 10.5% 68.5 13,9% -28.6%

Net income 34.7 7.4% 49.3 10.0% -29.5%

EPS (in €) 3.52 4.99 -29.5%

© Pfeiffer Vacuum • Company Presentation • November 2019

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44.1

96.6

87.5

77.0

186.2

48.8

110.0

90.5

61.5

156.5

0 20 40 60 80 100 120 140 160 180

9M/2019 9M/2018

Semiconductor

Coating

Analytics

Industry

R&D

-15.9%

-20.1%

+3.5%

+10.6%

+13.9%

(in % of

total sales)

General applications Electron beam welding Freeze-drying Vacuum drying

24%

Surface refinement Architectural glass Data storage Display coating (LED, OLED)

13%

Mass spectrometers Electron microscopy Surface / gas analysis Leak detection

19%

Lithography Metrology CVD Etching

34%

Renewable energy Nano technology Particle accelerators Space simulations

10%

Typical

applications

Sales by market: growth in industry, R&D, analytics (in € millions)

© Pfeiffer Vacuum • Company Presentation • November 2019

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11.3

83.3

110.1

145.5

141.1

11.6

84.3

93.9

132.2

145,2

0 20 40 60 80 100 120 140

1

2

3

4

5

6

7

8

9

10

11

12

13

14

-9.1%

+2.9%

-14.7%

+1.2%

+2.1%

9M/2019 9M/2018

Turbopumps

Instruments &

Components

Backing

pumps

Service

Systems

18%

28%

20%

31%

3%

(in % of

total sales)

Typical

products

Sales by product: Turbopumps and service with solid revenues (in € millions)

© Pfeiffer Vacuum • Company Presentation • November 2019

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Year-to-date all regions impacted by semiconductor and coating market

conditions; growth in Q3 2019 across all regions year-over-year (in € millions, 9M/2019)

Production

Sales and Service

Distributor

North & South

America

27%

125.8; -1.3% yoy (Q3‘19 +1.6% yoy)

Asia

36%

167.6; -9.4% yoy (Q3‘19 +4.2% yoy)

Europe

173.8; -2.7% yoy (Q3‘19 +0.4% yoy)

37% (in % of total sales)

© Pfeiffer Vacuum • Company Presentation • November 2019

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Quarterly sales (in € millions)

170.4 167.8

153.1

168.4

153.7 157.4 156.2

0

30

60

90

120

150

180

Q1 Q2 Q3 Q4

- 9.8%

2019

2018

- 6.2% +2.0%

© Pfeiffer Vacuum • Company Presentation • November 2019

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Order position: Q3 2019 with highest order intake Y-t-D (in € millions, except ratio)

FY

2017

Q1

2018

Q2

2018

Q3

2018

Q4

2018

FY

2018

Q1

2019

Q2

2019

Q3

2019

Order intake 642.1 194.0 174.0 148.6 160.6 677.2 148.8 144.9 156.3

Book-to-bill ratio 1.09 1.14 1.04 0.97 0.95 1.03 0.97 0.92 1.00

Order backlog

at end of period 127.4 151.0 157.2 152.7 144.9 144.9 140.0 127.5 127.6

© Pfeiffer Vacuum • Company Presentation • November 2019

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Balance sheet items: Strong capital position (in € millions)

As of

Sep. 30, 2019

As of

Dec. 31, 2018 Δ

Total assets 643.6 624.2 +3.1%

Intangibles 109.9 109.5 +0.4%

Equity ratio (in %) 59.7 59.6 +0.1 ppt

Net working capital 196.1 185.8 +5.4%

Financial liabilities* 73.3 60.3 +21.7%

Cash and cash equivalents 99.6 108.4 -8.1%

© Pfeiffer Vacuum • Company Presentation • November 2019

* Since 2019 incl. leasing liabilities acc. to IFRS 16

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Annual performance (in € millions)

© Pfeiffer Vacuum • Company Presentation • November 2019

452 474

587

660

467

0

100

200

300

400

500

600

700

FY 2015 FY 2016 FY 2017 FY 2018 9M 2019

FY 2019 guidance

620 – 640

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Outlook:

© Pfeiffer Vacuum • Company Presentation • November 2019

FY 2019 expectations

Sales € 620 to 640 million

EBIT margin Around 10%

CapEx About € 30 million

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Founded: 1890 by Arthur Pfeiffer in Wetzlar

Listing: TecDax, Prime Standard (Deutsche Börse, Frankfurt)

Marketcap: ~€ 1.4 bn (9.9 m shares)

Free Float: >49.98%

Major Shareholders: Pangea GmbH: 50.02%1, Hakuto: ~3%,

State of Norway: ~3%, TGV: ~3%

Indices: Prime All Share, TecDax, since 09/2018: SDAX

Pfeiffer Vacuum shares: PFV,GY

© Pfeiffer Vacuum • Company Presentation • November 2019

* Around 3,200 employees * Over 20 sales & service locations * 10 production sites

1 Pangea GmbH is owned by Busch SE; Pfeiffer Vacuum and the Busch Group signed a strategic cooperation agreement on May 20, 2019

© Pfeiffer Vacuum • Company Presentation • November 2019

Pfeiffer Vacuum Technology AG

Investor Relations

group.pfeiffer-vacuum.com

This presentation may include predictions, estimates or other information that might be considered forward-looking. While these forward-

looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause

actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our

opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the

results of any revision to these forward-looking statements in light of new information or future events.