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
■ 8 © Pfeiffer Vacuum • Company Presentation • November 2019
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.
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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
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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.