VAT continues to ramp up production capacity in Switzerland,
Malaysia and Romania to meet
the opportunities of a high-growth market, maintain and expand its market leadership, and ensure the highest levels of customer service.
Q2 2017 highlights
VAT captured the business opportunities presented by ongoing favorable market conditions; quick re- sponse to customer demands
Orders up 55%; net sales increase 35%
Half-year 2017 highlights
Increasing demand for manufacturing equipment in the semiconductor industry and technology advances in displays continue to drive growth
Order intake up 45% to CHF 372 million; net sales increase by 39% to CHF 326 million
Adjusted EBITDA plus 33% to CHF 98 million; adjusted EBITDA margin at 30.1% despite costs related to investments in future growth
Outlook 2017
Sales growth of around 30% expected at constant FX
Adjusted EBITDA margin to be maintained approxi- mately at the same level as in 2016
CAPEX to be around 6% of net sales
PASSION. PRECISION. PURITY.
Key Figures
In CHF million | 6M 2017 | 6M 2016 Change |
Order intake | 372.0 | 256.9 +44.8% |
Order backlog as of June 30, 2017, and December 31, 2016 | 167.9 | 122.1 +37.5% |
Net sales | 326.4 | 235.5 +38.6% |
Gross profit | 206.4 | 148.3 +39.2% |
Gross profit margin | 63.2% | 63.0% |
EBITDA | 95.3 | 67.8 +40.6% |
Adjusted EBITDA1 | 98.2 | 73.9 +32.9% |
Adjusted EBITDA margin | 30.1% | 31.4% |
EBIT | 78.2 | 52.7 +48.3% |
EBIT margin | 23.9% | 22.4% |
Net income2 | 59.5 | 24.2 +145.7% |
Net income margin | 18.2% | 10.3% |
Basic earnings per share (in CHF)2 | 1.99 | 0.87 +128.7% |
Diluted earnings per share (in CHF)2 | 1.99 | 0.87 +128.7% |
Cash flow from operating activities | 71.5 | 59.5 +20.2% |
CAPEX3 | 17.6 | 6.6 +166.7% |
CAPEX margin | 5.4% | 2.8% |
Free cash flow4 | 54.1 | 53.7 +0.7% |
Free cash flow margin | 16.6% | 22.8% |
Free cash flow conversion rate5 | 56.8% | 79.2% |
In CHF million | 2017 as of June 30 | 2016 as of Dec 31 |
Total assets | 915.8 | 883.4 +3.7% |
Total liabilities | 437.2 | 372.8 +17.3% |
Equity6 | 478.6 | 510.6 -6.3% |
Net debt7 | 194.0 | 133.9 +44.9% |
Number of employees | 1,746 | 1,278 +468 |
Adjusted EBITDA excludes one-off items.
2016 includes interest cost on shareholder loan.
CAPEX contain purchases of property, plant equipment and intangible assets.
Free cash flow is calculated as cash flow from operating activities minus cash flow from investing activities.
The free cash flow conversion rate is calculated as free cash flow as a percentage of EBITDA.
Equity in 2016 includes a shareholder loan of CHF 405.1 million as at December 31, 2016.
Net debt in 2016 is calculated excluding the shareholder loan of CHF 405.1 million as at December 31, 2016.
3
VAT GROUP AG HALF-YEAR REPORT 2017
KEY FIGURES
Net sales
in CHF million
326.4Net sales development in CHF million
326
+39%
236
203
6M 2015 6M 2016 6M 2017
Adjusted EBITDA
in CHF million
98.2Adjusted EBITDA margin
in %
30.1
Net sales
by segment
Net sales
by region
% 50
Free cash flow
in CHF million
54.1
615
13
% 35
81
81 VALVES
13 GLOBAL SERVICE
6 INDUSTRY
50 ASIA
35 AMERICAS
15 EMEA
4
VAT GROUP AG
HALF-YEAR REPORT 2017
GROUP RESULTS & OUTLOOK
Based on its proven market leadership, VAT continued
to show sustainable growth in the second quarter and
the first six months of 2017
Strong Q2 2017 confirms robustness of underlying markets
VAT continued to post strong results in the second quarter of the year as it captured significant busi- ness opportunities in a high-growth market. Custom- er investments in capacity expansions in semicon- ductors and displays, as well as VAT's ability to quickly respond to customer demands and to ramp up manufacturing output, were key drivers of VAT's strong growth.
Order intake in Q2 of 2017 was CHF 190.2 million, a plus of 55% compared with the previous year's period. Group net sales in the quarter were CHF
161.9 million, an increase of 35.4%.
Key market drivers continue to be positive During the first six months of 2017, demand for new fabrication equipment in the semiconductor market and technology advances in displays continued, confirming the key market factors that drove growth already in 2016.
Growth in demand for high-performance semicon- ductors remained strong, driven by megatrends such as digitalization, cloud computing, Internet of Things and e-mobility. Combined with increasingly complex production processes for microprocessors, miniaturization and the higher number of produc- tion steps needed, for example, in 3D NAND memory devices, high-end vacuum valves remain mission- critical components in a fast-growing market.
In the display business, customers continued to expand their manufacturing capacity for organic light-emitting diode (OLED) displays, especially for smartphones. The transition from liquid crystal displays (LCD) to OLED screens in these devices is in full swing and is expected to continue, as current production capacity is still not sufficient to cover the strong demand. In addition, display customers are gradually investing in manufacturing capacity for new large-screen LCD televisions, which require Gen 10.5 substrate surfaces of up to nearly 10 square meters. This is driving demand for VAT's new transfer valves of up to 4 meters in width.
All business segments are growing
In the first half of 2017, VAT's order intake was CHF 372 million, an increase of 44.8% compared with the previous year. The order backlog at the end of June was CHF 167.9 million, or 37.5% higher than at the end of 2016.
Order growth was highest in the Valves segment, with a plus of 52.7% to CHF 297.9 million in the first six months of the year compared with the same peri- od in 2016. Global Service increased orders by 20.4% in the first six months to CHF 53.6 million, while the Industry segment recorded orders of CHF 20.5 mil- lion, a growth of 18.5%.
Group net sales of CHF 326.4 million for the first six months were 38.6% higher than a year ago. The positive foreign exchange impact on net sales amounted to around one percentage point.
VAT Group AG published this content on 24 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 August 2017 05:07:07 UTC.
Original documenthttp://www.vatvalve.com/docs/default-source/investor-relations/half-year-report-2017/half-year-2017-report.pdf
Public permalinkhttp://www.publicnow.com/view/479F35791BC7D9D12EC1936BF3A29141E339545D