VAT Media Release on Extension of Short Time Work

VAT EXTENDS SHORT TIME WORK FOR ITS PRODUCTION EMPLOYEES IN HAAG

VAT Group announced today that it will extend the current short time work scheme for about 650 production employees at its two manufacturing facilities in Haag, Switzerland. The program was approved by the Canton of St. Gallens Office for Economy and Labor for a period of three months until the end of November 2023.

The extension of short time work reflects persistent challenging market conditions, especially in semiconductor equipment and allows VAT to provide job security and retain employees who have received significant technical training so that the company has the resources it needs to quickly meet the recovery in demand still expected in 2024, as VAT has previously communicated.

The program is not expected to have any adverse effect on customers or product quality. VAT successfully implemented a similar program during the severe market downturn in 2018 and 2019.

The current downturn reflects sharply lower spending by semiconductor customers in the face of slower consumer spending, persistently high interest rates, and lower economic growth in many markets. Trade restrictions by the US and other countries on exports to China of integrated circuits and related manufacturing equipment continued to negatively impact demand for VAT products.

As a result, and as previously reported, VAT expects demand to remain muted over the rest of 2023 before returning to growth in 2024, driven by positive long-term drivers such as global digitalization and the transition to renewable energies. In anticipation of this recovery, VAT continues to make significant investments in its facilities in Switzerland, including an innovation center in Haag, expected to be opened early 2025.

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ABOUT VAT
We change the world with vacuum solutions that is our purpose as the worlds leading supplier of high-end vacuum valves. The Group reports in two segments: Valves and Global Service. The Valves segment is a global developer, manufacturer and supplier of vacuum valves for the semiconductor, displays, photovoltaics and vacuum coating industries as well as for the industrial and research sector. Global Service provides local expert support to customers and offers genuine spare parts, repairs and upgrades. VAT reported net sales of CHF 1,145 million in 2022 and employs some 3,000 people worldwide, with representatives in 29 countries and manufacturing sites in Switzerland, Malaysia, and Romania.

FORWARD-LOOKING STATEMENT
Forward-looking statements contained herein are qualified in their entirety as there are certain factors that could cause results to differ materially from those anticipated. Any statements contained herein that are not statements of historical fact (including statements containing the words believes, plans, anticipates, expects, estimates and similar expressions) should be considered to be forward-looking statements. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the company to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the companys ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the performance, security and reliability of the companys information technology systems, political, economic and regulatory changes in the countries in which the company operates or in economic or technological trends or conditions. As a result, investors are cautioned not to place undue reliance on such forward-looking statements.

Except as otherwise required by law, VAT disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this report.
 

1729901  20-Sep-2023 CET/CEST