VAT GROUP AG ANNUAL

Letter to Shareholders

LETTER TO SHAREHOLDERS “We have a solid and simple business strategy built around the three pillars of growth, profitability and free cash flow.” DR. MARTIN KOMISCHKE CHAIRMAN OF THE BOARD OF DIRECTORS both supports our business development and guides As we move into this new world, we will intensify our the attitudes and behaviors of all of our employees. focus on meeting and exceeding our customers’ de- mands by continuing to innovate: new valve designs, As I’ve said in previous letters, VAT’s biggest asset is new materials, new product modules and actuating its people and 2019 confirmed this. Our approxi- systems, new service products, and new intercon- mately 1,800 people around the world turned in an nected “smart” valve products and systems that will excellent performance in a very challenging busi- further improve our customers’ performance. In- ness environment. On behalf of the Board of Direc- creased organizational flexibility will remain a man- tors and Executive Management, I’d like to thank agement priority, together with a stronger drive to them for their commitment and engagement. build a sustainability culture in which we can ensure value creation for all of our stakeholders. I’d also like to thank our shareholders for their trust in our company and I’m pleased to report that we will I look forward to working with all of you to achieve again recommend a dividend of CHF 4.00 per share. this goal. Our long-term market outlook remains very positive. We are still at the beginning of the Digital Era. Device interconnectivity and the Internet of Things, cloud Sincerely, computing, new mobile data applications coming through the rollout of 5G telecommunications, smart personal devices, automated homes: there is no end in sight to global digitalization and the high -precision products needed to make it happen. Martin Komischke 00_E_VAT_AR_Berichtsteil_2019 [P]_1239158.indd 3 02.03.20 18:15 4 VAT GROUP AG ANNUAL REPORT 2019 CEO INTERVIEW CEO Interview What were the highlights of 2019 from What’s the status of the Malaysia plant and your perspective? how do you see its role for the future? Our continuing efforts to make the company more We officially opened the expanded facility in Sep- flexible and responsive are paying off. Despite a tember last year. We’ve quadrupled production sharp drop in net sales because of the cyclical slow- space to 24,000 sq