Full Year 2021 VAT Group AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timm Nikolaus Schulze-Melander - Redburn (Europe) Limited, Research Division - Analyst : I just had 2, please. First of all, could you just share with us what percentage of your sales are on consignment? And then the second question was the impact of this delay in Q1. Could you maybe just talk to us about what that means for the FY '22 margin and particularly the sort of first half versus second half seasonality impact?

Question: Timm Nikolaus Schulze-Melander - Redburn (Europe) Limited, Research Division - Analyst : Okay. But maybe just to be clear, so we are not expecting margins to be down versus the first half of last year?

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : Just 2 remaining questions. One relating to the comment you just made that customers see 2023 as a potential growth year. I know that Applied Materials made that comment. But do you hear this also from other customers? Is this now a consensus because [Semi], the organization is still, I think, forecasting '23 and '24 to be flat or down? This would be my first question. And second question is on the use of cash. So the gearing level is now very low. Your dividend went up, but you already guide for an increased free cash flow in the current year. What is your thought on capital distribution, cash distribution? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2022 / 10:00AM, VACN.S - Full Year 2021 VAT Group AG Earnings Call

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : Yes, so a bit of a cautious approach. In your budget, maybe you can ask it a little bit different. In your budget for 2022, will you turn net cash positive by year-end?

Question: Harald Eggeling - Znrcher Kantonalbank, Research Division - Analyst : One question basically back to the beginning. I realized incremental positive change in guidance tonality with the prelims, you stated for solid improvement in results. Now you are talking for substantial improvement in sales and so on and so forth. And at the same time, you reduced your Q1 guidance. Could you please help me to understand this? Because from my perspective, when I look at truck drivers, the Ukrainians traveling to Ukraine, inflation rising and so on and so forth. Have I missed something? And the second one is on inflation. My basic take would simply be -- or could you simply elaborate if there is a cadence between price increases you are facing for instance, workforce inbound logistics and between the price increases you can pass through. And here also, the question would be can -- are you passing through 100%? Or is it more like a pain sharing?

Question: Harald Eggeling - Znrcher Kantonalbank, Research Division - Analyst : Okay. And one quick follow-up. Do you have a gut feeling what your customers are thinking how long the sad situation Ukraine might last?

Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : So I just wanted to confirm that I understood it correctly that VAT secured 1.5 year supply of aluminum and wanted to ask whether you have any visibility whether your customers like ASML and other equipment makers have managed to do the same because as we all know, Q1 guidance, do you slip a little bit, everything pushed into the second half of the year because of the supply in bottlenecks getting worse? And we do need this aluminum for the frames in which the equipment sits, right? It's huge, huge blocks of aluminum. And with the situation in Russia, perhaps persisting as you just said, we don't know, what's -- what your visibility into the supplies on your customer side? Or is it likely to become another bottleneck now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2022 / 10:00AM, VACN.S - Full Year 2021 VAT Group AG Earnings Call