VAT Group (VACN) CMD 2025 summary

Strategic direction and market outlook

• Aims to outgrow the wafer fab equipment (WFE) market by up to 2x, leveraging technology shifts, share of wallet expansion, and AI-driven demand for advanced chips.

• WFE market projected to grow at 8% CAGR to $150 billion by 2030, with vacuum-related WFE at 12% and leading-edge tools at 15% CAGR.

• Transition to Gate-All-Around technology in 2025 will increase process steps by 25%, boosting demand for precision vacuum solutions.

• China remains a key growth pillar, with direct business expected at 30–35% of group sales as local OEMs increase self-sufficiency.

• Expansion into OLED display valves and adjacencies, such as ALD inlet valves and motion components, targets growth beyond core valves.

Growth strategy and business segments

• Core vacuum valve business will remain over 50% of group sales, targeting a 15%+ CAGR and market share increase to 85% by 2029.

• Adjacent products and services, including advanced modules and motion components, are expected to grow at 25% CAGR, reaching up to 20% of group sales.

• Service revenues are projected to remain around 18–20% of group sales, leveraging a 1.7 million installed base and retrofits, aiming for over 60% market share in services by 2029.

• Advanced industrials segment targets 12% CAGR, focusing on research, scientific instruments, coating, targeted industries, and power generation.

• Technology leadership and customer-centric innovation have resulted in a record 76% market share in semiconductors as of 2024, with continued focus on spec wins and share of wallet expansion.

Financial guidance and capital allocation

• Five-year sales CAGR guided at low to mid-teens, with 2027 revenue milestone of CHF 1.5–1.7 billion and capacity for CHF 2.4 billion.

• EBITDA margin band set at 30–37% of sales, with free cash flow conversion rate of 60–70% and R&D spend around 5% of sales.

• CapEx and R&D spend guided at around 5% of sales, with a dividend policy of up to 100% of free cash flow to equity.

• Major capacity expansions in Malaysia and Romania have been completed, providing installed capacity for over CHF 2.4 billion in sales.

• Strong balance sheet targets net debt/EBITDA below 1.0x and a net cash position by year-end 2026, supporting both organic and inorganic growth.