VAT : media_release_on_sales_half_year_2017

Media Release

Haag, July 25, 2017

VAT'S NET SALES CONTINUE TO GROW STRONGLY IN THE SECOND QUARTER OF 2017

Based on preliminary figures, VAT's order intake in the first six months of the year increased to approximately CHF 372 million, up 44% from a year earlier. Net sales for the same period amounted to approximately CHF 326 million, representing an increase of around 38% compared to the same period a year ago of which one percentage point was due to a positive foreign exchange impact.

Ongoing favorable market conditions, such as investments in capacity expansions in semiconductors 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.

The adjusted EBITDA in the first six months of 2017 was approximately CHF 98 million. As a result of higher costs associated with the ramp-up of the entire supply chain and investments in additional capacity in Switzerland, Romania and Malaysia, the preliminary adjusted EBITDA margin was 30.1%.

For the full year 2017, VAT now expects to grow its net sales by around 30% at constant foreign exchange rates, versus the previous guidance of at least 20%. The company still expects to maintain its adjusted EBITDA margin at approximately the same level as in 2016 at 31.1%, as the benefits of the strong increase in net sales are offset by significant investments in future growth. Capital expenditure for the full year is now expected to be around 6% of net sales, compared to around 5% as previously communicated, as the expansion of the plant in Malaysia is being further accelerated.

VAT will communicate its complete half-year results 2017 on August 24, 2017.

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For further information please contact: VAT Group AG

Michel R. Gerber

Corporate Communications & Investor Relations T +41 81 772 42 55

investors@vat.ch

ABOUT VAT

VAT is the leading global developer, manufacturer and supplier of high-end vacuum valves. VAT vacuum valves are mission-critical components for advanced manufacturing processes of innovative products used in daily life such as portable devices, flat screen monitors or solar panels. VAT is organized into three different reporting segments: Valves, Global Services and Industry offering high-end vacuum valves, multi-valve modules, edge-welded bellows and related value-added services for an array of vacuum applications. VAT Group is a global player with approximately 1,800 employees and main manufacturing sites in Haag (Switzerland), Penang (Malaysia) and Arad (Romania). Net sales in the financial year 2016 amounted to CHF 508 million.

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