Advanced Energy Industries : IR Presentation - May 2024

• Best-in-ClassIndustrial Growth Enterprise

May 2024

SAFE HARBOR

Advanced Energy Industries, Inc.'s (the "Company's" or "Advanced Energy's") guidance and other statements herein or made on the earnings conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this presentation that are not historical information are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties are described in Advanced Energy's Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission (SEC), which can be obtained from the SEC's website at www.sec.gov or from Advanced Energy's Investors page at ir.advancedenergy.com. All forward-looking statements are made and based on information available to Advanced Energy's management team as of May 1, 2024. Aspirational goals and medium-term targets should not be interpreted in any respect as guidance. The company assumes no obligation to update the information in this presentation.

The directors of Advanced Energy (including those who may have delegated detailed supervision of these presentation slides) ("Directors") have taken all reasonable care to ensure that the facts stated and all opinions expressed in these slides are fair and accurate in all material respects and that no material facts have been omitted from these slides, and they jointly and severally accept responsibility accordingly. Where any information has been extracted or reproduced from published or otherwise publicly available sources, the sole responsibility of the Directors has been to ensure, through reasonable enquiries, that such information has been accurately extracted from such sources or, as the case may be, reflected or reproduced in these slides.

Copyright © 2024 Advanced Energy 2

At a Glance

ADVANCED ENERGY AT A GLANCE

Leader in Precision Power

Headquartered in Denver Colorado,

Advanced Energy (NASDAQ: AEIS) is a global

leader in design and manufacture of highly engineered precision power conversion, measurement and control solutions for mission-criticalapplications and processes

SEMICONDUCTOR

EQUIPMENT

$10.5B

Combined

SAM(1)

TELECOM &

NETWORKING

INDUSTRIAL &

MEDICAL

DATA CENTER

COMPUTING

BY THE NUMBERS

1981	~10,000	700+	$1.66B	$207M
Founded	Global Employees	Patents Issued	2023 Revenue	2023 Non-GAAP
	(2023 Year End)	Globally		Operating Income

1. TechInsights, WAWT, Internal Estimates

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Key Messages

PRECISION POWER LEADER FOR THE DIGITAL ECONOMY

PURE PLAY POWER LEADER

Strategic focus on precision power ensures sustainable advantage and scale

PROPRIETARY SOLUTIONS

Lead with differentiated, highly-engineered, high value products and technologies

OUTPERFORMING MARKETS

Track record of broadening market reach, growing share and adding content

ACCELERATING EARNINGS

Capture long life-cycle revenues and optimize margins to target growing EPS at >2X faster than revenue

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Introduction

WE ARE THE PURE PLAY POWER LEADER

AE provides precision power conversion and control solutions for a wide range of high value and long life-cycle applications

SEMICONDUCTOR	INDUSTRIAL &	DATA CENTER	TELECOM &
EQUIPMENT	MEDICAL	COMPUTING	NETWORKING

Grid

Power

Facility Power

Process	Custom	Server	Radio
Power	Power	Power	Power

~70% of revenue comes from sole-sourced designs

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Technology Leadership

A HISTORY OF INNOVATION AND TECHNOLOGY LEADERSHIP

Strong step

function

Leading compared

performance to Peers in advanced

etch

Transforms how power is delivered

Next-Gen

Angstrom-Era

Plasma

Technology

2020s

Angstrom-Era Precision Plasma Power

eVerest RF Generator

• Dynamic multi-level pulsing with ultra-fast RF response
• Widens process window, improves yield and throughput
• Modular architecture accelerates time to market

eVoSTM Asymmetric Bias Waveform Generator

• Enables new ways of process tuning with direct plasma control
• Reduces losses by delivering power where the plasma needs it

AE leads with generations of power delivery innovations

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Secular Drivers

DATA ECONOMY DRIVES GROWTH

ACROSS OUR 4 VERTICALS

• Leading-edgecapacity for AI & 5G processors
• Digital Transformation and IoT drives demand in trailing-edge
• Move to regional supply chains

• High Performance Computing for analytics and automation
• Increased power density in data center server racks
• Edge Computing for 5G

AI

IoT 5G

• Accelerating adoption of process automation
• Smart manufacturing
• Telemedicine, remote diagnostics and treatment

• 5G infrastructure requires ruggedized power
• High-speedconnectivity for seamless data transmission
• Importance of Interconnectivity

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Growth Strategies

FOCUS ON PROPRIETARY DESIGNS TO ACCELERATE GROWTH

AE TARGETED

GROWTH STRATEGIES

GROW SHARE

Across Mission-Critical

Precision Power Verticals

Semiconductor:

Extend Our Leadership

Industrial & Medical:

Expand Our Portfolio of Proprietary Solutions

Invest in INNOVATION and

Technology Leadership

$1.66B

2023 Sales

Leverage Strong Financials

and Increased Scale to

Capitalize on

NEW OPPORTUNITIES

Telecom & Networking:

Target 5G Infrastructure

Data Center Computing:

Target High-Value

Applications

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Semiconductor

SEMICONDUCTOR: EXTEND OUR LEADERSHIP

MARKET LEADER WITH

PROVEN TRACK RECORD

MAXStreamTM

No.1

13%

Market share every year for over 10 years in Process Power and RF Power(1)

10-year Semi Product Revenue CAGR(2)

TARGET TO CONTINUE TO

OUTGROW OUR MARKET

>1.2X	AE targeted Semi revenue
CAGR over WFE(3) CAGR

1. AEIS market share per TechInsights; Process Power is based on RF+DC market share

(2) 10-year CAGR 2013 - 2023	Copyright © 2024 Advanced Energy 9

1. WFE = Wafer Fab Equipment market based on internal estimate and 3rd party market forecasts

Industrial & Medical

INDUSTRIAL & MEDICAL:

EXPAND OUR PORTFOLIO OF PROPRIETARY SOLUTIONS

LARGE MARKET WITH A WIDE

RANGE OF NICHE OPPORTUNITIES

Large SAM(1) of $4.3B
General
Test &	Medical
Measurement
Industrial
Lighting
Cleantech
Thin Film	Manufacturing
Industrial

• Large SAM consists of many small and medium high-valueopportunities
• Target long-life cycle and proprietary applications to capture sole-sourcepositions

LEVERAGE BROAD PORTFOLIO OF STANDARD PRODUCTS TO DELIVER CUSTOM SOLUTIONS

AC-DC	RF
DC-DC	BMP
HV	Electro-
static
PCM	Sensing

• Most comprehensive portfolio of standard power products
• Develop modified standard or full custom solutions to solve customers' challenging power delivery problems

ACCELERATING INVESTMENTS

TO DRIVE GROWTH

Engineering

SalesMarketing

• Allocate more engineering, sales and marketing resources to I&M applications
• Investments in our digital platform help broaden our customer base and drive future market share gains in I&M

(1) Source: TechInsights, WAWT, Internal Estimates

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