Q1 2023 VAT Group AG Trading Statement Call Transcript

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

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : My first question was on your comment on the order backlog. Is it correct that you assume CHF 300 million by June and if so that would imply, if you have CHF 200 million to CHF 230 million revenues, it would imply another quarter with orders of somewhere between CHF 130 million, CHF 140 million. Would that be correct?

Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst : Okay. And then yes, on the cancellations, you had about, I think, you calculated some [9 million] cancellations. And for your existing order book, do you expect similar trajectory of cancellations going forward and also is there a risk that you have to book out orders that you have in your book, but because of project delays, you have to remove them from the order book. So I just want to get an idea of the quality of the current order book.

Question: Emrah Basic - Baader-Helvea Equity Research - Analyst : Yes. The first question would be on lead times. So what -- what's the -- what are the approximate lead times at the moment in the month? And how do you expect it to develop for the rest of the year?

Question: Emrah Basic - Baader-Helvea Equity Research - Analyst : That's perfect. And the second question would be on your guidance. So you issued a 2025 guidance or you revised that a year ago, of around CHF 1.5 billion for 2025. Now does this guidance -- is this guidance still valid? Or was it indirectly also update with your last capital market guidance?

Question: Harald Eggeling - Znrcher Kantonalbank, Research Division - Analyst : Three quick questions. First question, what would be your biggest challenge in cost management currently? Are there probably current more

Question: Harald Eggeling - Znrcher Kantonalbank, Research Division - Analyst : Yes. My understanding currently is that we have at both Tier 1 and also at the OEMs, so to say, seeing still high inventory levels. Would this not speak against a more earlier recovery in WFE? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 13, 2023 / 8:00AM, VACN.S - Q1 2023 VAT Group AG Trading Statement Call

Question: Harald Eggeling - Znrcher Kantonalbank, Research Division - Analyst : No, I have -- I don't have the granularity, unfortunately. But my expectation would simply be that even if you work down sequentially, like 5% every quarter, your inventory -- I would arrive at the number by end of '23, which seems you are still pretty high compared to historic levels and also taking into account clearly rising interest rates. So my sense will simply be that the recovery cannot be that big that probably currently is assumed in WFE.