The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: Gentlemen, I have a couple of questions. First, on the spec wins, up 21%. And I think I recall that for control valves, you already totally dominate
the market with over 90% market share. And then for transfer valves, it's probably also above 60%. So I wonder where any further market share
gains would be possible? That's my first question.
Secondly, you mentioned extremely high chance of higher orders in the second half. Does this refer to the first half of the year? Because consensus,
I think, expects a 9% drop in second half orders versus the first half.
Then maybe a third question, and then maybe you can answer first. On the order backlog, it has been risen. So you seem to have some delays of
deliveries of certain components. Do you expect further backlog increases in the year, which basically means that marketing is very strong, but
you may not be able to catch up as quickly for the year. That would be my third question.
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: I have 2 follow-up questions. On services, I saw a very strong jump in basically the service per installed valves. So usually, my expectation is about
CHF 35 per quarter per valve, and then now it jump to CHF 44. So really big jump per valve. Is that because of the intensity with which the valves
are running? Is it a level that we can put in our numbers going forward? Or will this normalize?
And then my last question, the low financing cost, is this a sustainable level, so CHF 2 million to CHF 3 million per half year. Is that also something
you see for the second half and going forward?
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: So I would like to ask about the adjacency. You mentioned CHF 20 million in sales already. Was that for the half year or for 1 year? Just to clarify.
And also, regarding your comments further to the adjacencies, you mentioned lower value per unit. I wanted to ask whether this also implies a
lower margin per unit related to your valve business? Or how do you see the profitability developing so far? And then I have a follow-up question,
please.
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes. That was helpful. Yes, we actually know that you definitely did your homework, but it's also one thing to expect something. And the second
thing is what's coming through the numbers, actually. That was very helpful. And then with regards to Advanced Industries, I was a little bit surprised
that the order intake was down quarter-on-quarter, given we have a very strong PMI data coming through. And what has driven the slight decline?
And then I have a third question, please.
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Brilliant. And then with regard to the new memory types, we have lot recently going on in the memory as well, which we faced in memory
and [advanced] DRAM. How do you see the valve content developing in this new memory types. And I know they are still small, but just to have
an idea, please?
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AUGUST 05, 2021 / 8:00AM, VACN.S - Half Year 2021 VAT Group AG Earnings Call
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes, absolutely. I agree. Do you plan like making a like a technology day to discuss that a little bit in more detail?
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Clear. And just really lastly, with regard to the supply chain issues, as I understood it globally. It's nothing specific to Malaysia because we
heard so much about Southeast Asia being like particularly challenged. And for you, it's not specific, just to confirm, please?
Question: Marta Kinga Bruska - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Thankyou, that's helpful.
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