INFICON : IFCN Q3 2023 Earnings Presentation

Earnings Release - Analyst/Media Conference Q3 2023

Oktober 19, 2023

Agenda & Speakers

Oliver Wyrsch, President & CEO

• Key Messages & Figures Q3 2023
• Target Market Business Review
• Expectations 2023

Matthias Tröndle, Vice President & CFO

• Financials Q3 2023
• Guidance
• Corporate Calendar

Q3 2023 Results

Continued strong growth in 3rd quarter 2023. Continued high sales. YoY growth in all regions and all end markets, except Semi & Vacuum Coating. Supply chain improving but still with impacts on margins

SALES

• Sales increase of 18% YoY to 170 MUSD with growth across all regions and all end markets, except Semi & Vacuum Coating with some slowdown on high level (-6% YoY). GV and RAC&A with record quarters
• INFICON's broad position in diverse end markets support growth in volatile times
• Organic growth at 17% YoY excluding slightly positive FX effects
• Order intake lower as expected. Book to bill < 1 in Q3

OPERATING RESULT

• Improved operating income in 3rd quarter by 33% YoY to 34 MUSD
• Gross margin improved +1.3 %pts YoY, lower broker costs but still impacted by cost inflation and supply chain quality and availability
• Improved profitability against headwinds in Q3 2023 with 19.9%
• Good cash generation: record operating cash flow +38 MUSD

ORGANIZATION

• Continued investments in R&D (7% of sales YTD) and production capacity
• CapEx expectation around 30 MUSD for full year

Sales Q3 2023

(Q3 2022)

Worldwide Markets & Sales

Good growth in all regions year-on-year

Worldwide Net Sales in Q3 2023 by Region

Quarterly Sales Trend by Region

North
America	Europe	Asia
27%	27%
		45%

Rest of World

1%

Q3 2023 Sales and Growth by Region

Asia:	~	77	MUSD	+ 15%
Europe:	~	47	MUSD	+ 34%
North America:	~	45	MUSD	+ 9%
Rest of World:	~	1	MUSD
Total:	~ 170	MUSD	+ 18%
(vs.Q3 2022)

Semi & Vacuum Coating - Performance & Outlook

Semiconductor, Display, Optics, Solar

While Semiconductor market is softening short-term, we see good growth opportunities

PERFORMANCE

• Q3 2023 sales slow down on high level with -6% vs. Q3 2022, softer in Asia and North America
• #1 position in process control, leak detection, smart manufacturing software and thin film monitoring
• #2 for pressure measurement. Closing up to #1

OUTLOOK

• Market expectations for 2023: Softening/Decline
  Mixed picture for 2023 and into 2024, Mid- and long-term very strong growth drivers for Semi
• Mainly weakening in submarket for memory chips, which is one of several submarkets and less relevant for INFICON. Assumed recovery expected in 2024. Delay of some logic projects. For trailing edge no slowdown visible. No noticeable slowdown in EUV
• Ongoing investments in leading edge nodes and advanced chip design. Increasing sensor and process monitoring usage in general. Semi initiatives globally ongoing
• Strong R&D pipeline at INFICON with new products, applications and solutions

Sales to Semi & Vacuum Coating	Sales Q3 '23 by Region
+12,8% CAGR (2017 - 2022), (in MUSD)	(in MUSD)

Automotive & Refrigeration, Air Conditioning - Performance & Outlook

Strong position on RAC & Automotive market with battery testing as largest opportunity

PERFORMANCE

• Q3 2023 sales increase of +38% vs. Q3 2022. Strong growth across regions and product lines. Record quarter
• #1 position in RAC and Battery market

OUTLOOK

• Market Expectations 2023: Growth
  Traditional auto slowing, but battery/EV continuously growing
• Growth in the RAC market and introduction of advanced, fully automated industry 4.0 solutions, incl. new intelligent software
• Good growth with new distribution and product initiatives for hand-heldafter-sales service products
• New mobility and battery storage growth opportunities (Li-ion batteries and fuel cells) driven by energy transition
• Strong R&D pipeline at INFICON with new products, applications and solutions

Sales to Automotive & Refrigeration, Air Con.	Sales Q3 '23 by Region
+5,8% CAGR (2017 - 2022) (in MUSD)	(in MUSD)

General Vacuum - Performance & Outlook

The broad industrial market is addressed though a multi-brand strategy and long-term channel partners. Growth comparable to general economic dynamic in each region

PERFORMANCE

• Q3 2023 sales increase of +44% vs. Q3 2022. Strong growth in Asia and Europe. Record quarter
• Most competitive "full liner" in vacuum instrumentation
• Remain #1 position

OUTLOOK

• Overall market expectations 2023: Growth
• After strong market growth in 2022, outlook for EMEA and US lower. Increased growth in China vacuum market after slower growth in 2022
• Expand market reach into industrial and analytical OEM markets
• Expand distribution networks (US and Asia)
• Multi-brandstrategy

Sales to General Vacuum	Sales Q3 '23 by Region
+9.2% CAGR (2017 - 2022) (in MUSD)	(in MUSD)

Security & Energy - Performance & Outlook

Security and energy have both growth potentials but often depend on specific government initiatives and policies with their own dynamic, which is a diversification factor versus the other markets

PERFORMANCE

• Q3 2023 sales increase of +85% vs. Q3 2022. Typically, significant fluctuations over time due to large programs
• Continued strong order pipeline
• Supply chain still instable and limiting sales

OUTLOOK

• Market expectations 2023: Growth
• New HAPSITE generation with new features and expanded capabilities addressing new applications
• US DoD programs awarded. Strong opportunity pipeline across NATO
• Cyclical: Still highly dependent on government spending
• Some Chinese competition for environmental applications

Sales to End Market Security & Energy	Sales Q3 '23 by Region
-1.9% CAGR (2017 - 2022) (in MUSD)	(in MUSD)

Expectations 2023

Increased guidance. Given solid order situation and the growth in selected markets, we are mostly optimistic for 2023, even in a slow general economical environment with risks

• Even with weakness and risks in the markets we are mostly optimistic given the improvements in the supply chain and the strong order situation
• We see positive momentum in certain markets: some Semi submarkets and selected other markets such as Battery and Security - and geographically in China

Guidance for	 Sales between 650-670MUSD (Prior Guidance: 610-640 MUSD)
2023	 Operating Income approx. 19%

Agenda & Speakers

Oliver Wyrsch, President & CEO

• Key Messages & Figures Q3 2023
• Target Market Business Review
• Expectations 2023

Matthias Tröndle, Vice President & CFO

• Financials Q3 2023
• Guidance
• Corporate Calendar