R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook R. Lenggenhager 5 Questions & Answers All

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1 Zurich August 16, 2018 Half Year Results 2018 Dr. René Lenggenhager, CEO Markus Portmann, CFO Comet Group Half Year Results August 16, Half Year Results Comet Group at a Glance R. Lenggenhager 2 Review of H R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook R. Lenggenhager 5 Questions & Answers All Comet Group Half Year Results August 16,

2 Comet Group at a Glance Comet Group Half Year Results August 16, The Comet Group at a Glance We are a Swiss company with high competency in three leading technologies ogies Comet Group Half Year Results August 16,

3 The Comet Group at a Glance enabling faster, more efficient processes and safer products in many industries RF Power 53% of H Group sales X-Ray 43% of H Group sales ebeam 4% of H Group sales Semiconductors Microchips & Sensors Displays Electronics Automotive/Foundries Aerospace Security Food Printing / Comet Group Half Year Results August 16, The Comet Group at a Glance Strong global presence 52% of Group sales H % of Group sales H % of Group sales H Locations Sales outside Switzerland 99% Employees >1400 Comet Group Half Year Results August 16,

4 Review of H Group and Business Segments Comet Group Half Year Results August 16, Review of H Group and Business Segments Sales growth in H compared to the strong yearearlier period; One-time impairment lowers net income Growth Profitability Net sales in CHF Net income in CHF EBITDA margin Operating cash flow in CHF Up 4.4% vs. H from 222.6m* to 232.4m Decrease of 23.0% vs. H from 18.7m to 14.4m Decrease of 2.5% pps vs. H from 15.2% to 12.7% Increase vs. H from -0.3m to 2.0m * All H or FY 2017 figures shown are after IFRS 15 restatement Comet Group Half Year Results August 16,

5 Review of H Group and Business Segments Equity ratio improved - despite the substantial capital investment in the building expansion in Flamatt, CH Quality of Balance Sheet Earning power Net debt in CHF Equity ratio Economic profit * in CHF (12-month rolling basis) ROCE * (12-month rolling basis) Increased net debt vs. H1 2017, from 20.9m to 35.2m Up 1.5% pps vs. H from 51.7% to 53.2% Decrease of 42% year-over year from 21.0m to 12.2m Decrease of 5.4 pps year-over-year from 19.3% to 13.9% *Before CHF 4.6m impairment on fixed assets in EBS Comet Group Half Year Results August 16, Review of H Group and Business Segments Major drivers: RF power solutions for the semi market (PCT) and x-ray modules for non-destructive testing (IXM) PCT IXS IXM EBT Net sales in CHF H m +15.3% 65.0m -11.0% 40.8m +9.4% 9.6m -35% EBITDA / margin H m / 24.4% -1.1m (-4.8 pps) -0.9m -7.5m 10.2m / 25.1% +3.6m (+7.5 pps) -7.7m +0.6m Comet Group Half Year Results August 16,

6 Review of H Group and Business Segments PCT: Further profitable growth achieved in semi market Net sales 17.9% sales growth in local currencies Continued main driver: sales of high-end RF power solutions for the fabrication of memory chips with key accounts in the US Increasing sales of vacuum capacitors for the production of flat panel displays 24.4% EBITDA margin vs. extraordinary high margin of 29.2% in previous H1 due to: Increased investment in R&D to develop new RF systems solution for growth after 2020 Unfavorable product mix H H EBITDA 29.2% 24.4% H H EBITDA EBITDA-Margin Comet Group Half Year Results August 16, Review of H Group and Business Segments Future growth prospects intact Short-term postponement of projects Data economy and AI as growth drivers Comet to address new market with product innovations now in development SMART MANUFACTURING SMART DATA IOT TEL 700 Mio. LAM SMART MEDTEC SMART TRANSPORTATION AMAT Source: Technology Semi with Global Passion Update 2018 Source: VSLI and Comet estimates for RF generator market

7 Review of H Group and Business Segments IXS: Weak H1 profit improvement measures initiated Sales growth of 10% expected in H2 vs. H % sales decline in local currencies compared to strong H Growth in tire inspection systems Significantly lower sales of systems for research on new materials and for inspection of castings and wheels 73.0 Net sales 65.0 EBITDA decreased to negative CHF 0.9m (H1 2017: profit of CHF 6.6m) due to: Lower net sales High investment in product portfolio development and M&S initiatives Sales growth of 10% expected in H2 vs. H1, related partly to: Substantial orders for the newly introduced Cougar and Cheetah Evo systems for the inspection of electronic parts H H EBITDA Comet Group Half Year Results August 16, 2018 H H Review of H Group and Business Segments Profit improvement program initiated, and on track Goal: EBITDA margin improvement to about 6% in 2019 Management of IXS transferred to Dr. Matthias Barz (interim) 1. Reprioritization Reprioritization and acceleration of key projects 2. Workforce reduction 25 positions in Germany Contractors 3. Increase in efficiency Optimized organization and adjustment of Processes Further saving in operations Status of implementation

8 Review of H Group and Business Segments Continual advancement of product range is on track further updates in the pipeline for 2019 Launch of Cougar/Cheetah Evo Systems Substantial orders H Launch of FF 85 CT: Q2 > First orders Reprioritization & acceleration of releases Future releases Enabling smart and cost-efficient Industry 4.0 Substantial additional new orders from 2020 onwards Comet Group Half Year Results August 16, Review of H Group and Business Segments IXM: Solid growth and pronounced margin improvement in core business of non-destructive testing Net sales 6.0% sales growth in local currencies due to: Increasing sales of robust, portable Smart Evo x-ray solutions for pipeline inspection thanks to the investment-friendly environment in US Investments of the preceding years in the innovative ivario generator family start to pay off H H EBITDA 25.1% 25.1% EBITDA margin (up 7.5 pps) due to: Growth in volume and beneficial product mix 17.6% H H EBITDA EBITDA margin 16

9 Review of H Group and Business Segments IXM: ivario as the basis for further growth with existing and new customers Addressable market Current market share Other applications CHF 280m Non-destructive testing (NDT) Comet tube and ivario generator Security Source: Comet Comet Group Half Year Results August 16, Review of H Group and Business Segments EBT: Refocusing on OEM components and modules business 35.9% sales decline in local currencies Prior year's investments in revision of product portfolio of large standardized ebeam systems did not meet expectations 14.8 Net sales EBITDA at negative CHF 7.7m (H1 2017: neg. CHF 8.3m) Due to low sales volume and high investments Decision to separate from the ebeam systems business 9.6 H H EBITDA H H

10 Review of H Group and Business Segments EBT: Separation from ebeam systems business Closure of Davenport site in Iowa, USA EBT today EBT in future EBE ebeam Engines produced in Flamatt, Switz. EBS ebeam systems produced in Davenport, USA New Focus EBE ebeam Engines produced in Flamatt, Switz. Comet Group Half Year Results August 16, Review of H Group and Business Segments Focusing on ebeam OEM components and modules, which have attractive business potential for a variety of applications The operational focus The benefits ebeam technology. ebeam components ebeam modules. Energy efficiency High constant performance OEM End user No chemicals Can be integrated in 20 value chain

11 Review of H Group and Business Segments Continued collaboration with strong partners in order to develop the ebeam business successfully Comet development for use in next generation filling machine on track. Uteco presented printing system GAIA with higher speed and more colors in Milano print4all trade show. Bühler launched its machine Laatu TM for microbial reduction on dry food based on ebeam technology. First tests to inactivate microorganisms on hatching eggs are promising and will be continued In addition Comet plans to invest in further applications Financial Results Comet Group Half Year Results August 16,

12 Financial Results Solid net sales and improved GPM in H1 Higher new orders and backlog H1 Change in CHF thousands * Absolute In % New orders % Backlog % Book-to-bill % Net sales % Cost of sales Gross profit Gross profit margin in % 40.2% 39.6% 0.6% Other operating income Development expenses SG&A Operating Income (EBIT) Financial result and income taxes Net income EPS in CHF Incoming orders and Backlog in line with expected growth Gross profit margin improvement driven by higher sales volumes and operational initiatives (impairment of intangibles assets of CHF 2.2m included) Number of growth initiatives increased; structure adjusted to underlying growth CHF 12m increase in SG&A includes CHF 3.8m impairment of intangible assets in Davenport, Iowa (EBS) Lower income taxes driven by loss situation in Germany and US Tax Cuts and Job Act * All H or FY 2017 figures shown are after IFRS 15 restatement Comet Group Half Year Results August 16, Financial Results Net USD exposure of CHF 62m in H1 2018; other currencies mostly naturally hedged 100% 80% 60% 40% 20% 61.1% 10.7% 23.6% Net USD exposure of CHF 61.6m 7.4% 34.6% 9.2% 25.1% 23.7% USD Other EUR CHF Consistently high net USD exposure as sales are outgrowing costs in USD Foreign exchange rates had a negative impact on EBIT of CHF 2.1m On a yearly basis +/ CHF/USD impacts net sales by CHF 1.5m and EBITDA margin by 0.2 pps 0% 4.5% Sales Cost Comet Group Half Year Results August 16,

13 Financial Results Solid sales growth H1, mainly driven by PCT * CHF millions Volume effect at constant currencies CHF +9.1m (+4.1%) Positive currency effect (+0.3%) 0 Net sales H PCT IXS IXM EBT Elim. intersegment sales Currency translation effect Net sales H * USD -4.2; EUR +4.4; CNY +0.5 Comet Group Half Year Results August 16, Financial Results EBITDA margin decrease of 2.7% on a comparable basis Reconciliation June YTD 2018 vs. PY As reported June YTD 2017 IAS19 Before IAS19 June YTD local currencies (real local currencies and before EBS June YTD 2018 FX impact vs. PY EBS impact As reported June YTD nominal FX rates vs. PY Sales EBITDA 33.8 Depreciation & Amortiz EBIT Financial expense -2.4 Total income tax -7.0 Net income Sales growth in % EBITDA margin in % 15.2% $ (1) negative impact due to pension plan change (2) Profitability decrease due to increased investments in R&D and M&S (3) negative FX impact on EBIT (4) negative impact on impairment of fixed assets in Davenport (EBS) 4.1% 1.1% 16.3% -2.7% 13.6% % 0.0% -0.9% 0.0% % 12.7% -2.5% Comet Group Half Year Results August 16,

14 Financial Results Decrease in net income, mainly driven by EBS impairment CHF millions Net income H Operating income -23.0% +1.9 Net financing expenses Income tax expense Net income H Operating income CHF 17.1m (H1 2017: CHF 28.0m) Net financing expenses CHF 0.5m (H1 2017: CHF 2.4m) Income tax expense CHF 2.3m (H1 2017: CHF 7.0m) EPS: CHF 2.41 CHF 1.85 Comet Group Half Year Results August 16, Financial Results Strongly improved net financing result Net financing items amounted to an expense of CHF 0.5m (H1 2017: CHF 2.4m), reflecting the following factors: Interest expenses decreased to CHF 0.4m (H1 2017: CHF 0.8m) as a result of increased capitalization of interest (facility expansion in Flamatt) The net currency translation loss recorded in the income statement amounted to CHF 0.1m (H1 2017: loss of CHF 1.6m) Almost naturally hedged for most currencies other than the USD Net exposure in USD partly hedged by forward exchange contracts Currency impact on balance sheet: A currency translation gain of CHF 0.4m (H1 2017: loss of CHF 1.3m) was directly recorded in equity (related to net investments in foreign entities) Comet Group Half Year Results August 16,

15 Financial Results Income tax rate temporarily down to 14% (H1 2017: 27.3%) Applying the expected Group tax rate of 24%, the EBT of CHF 16.6m would lead to an expected tax expense of CHF 4.0m. Actual income tax expense reported totaled CHF 2.3m (H1 2017: CHF 7.0m). The difference of CHF 1.7m from the expected tax expense is mainly the result of the impairment of assets in the ebeam systems business in Davenport (USA) and the realized loss in the German entity (at an above average tax rate). In addition to the above, the difference compared to H is due to the US corporate tax rate reduction (US Tax Cuts & Jobs Act) which lead to a decrease in tax expense of CHF 0.5m. The effective tax rate for FY 2018 is expected at approx. 18%. Comet Group Half Year Results August 16, Financial Results Ongoing strong balance sheet ratios In CHF millions H FY 2017 Current assets % % Non-current assets % % Total assets % % Liabilities % % Equity % % Total liabilities and equity % % Decrease in current assets due to lower cash position and despite increase in working capital Increase in non-current assets reflecting investments in new building, expansion of production capacity and impairment of intangible assets Further improved equity ratio to 53.2% Comet Group Half Year Results August 16,

16 Financial Results Cash flow statement reflects implementation of growth strategy and investment in new building CHF millions CF provided by operating activities CHF 2.0m CF used in investing activities CHF -17.4m Free cash flow CHF -15.4m CF used & provided by financing activities CHF -12.6m a b c d e f g h i j a) Cash as of January 1, 2018 b) Net income H c) Other non-cash income/expenses incl. depreciation/amortization d) Increase in NWC e) Income tax and taxes paid f) Net investment in new building, equipment and intangible assets g) Repayment of debt h) Interest paid and distribution to shareholders i) Foreign currency translation gain j) Cash as of June 30, 2018 Comet Group Half Year Results August 16, Financial Results Increase in working capital in line with expected sales development Total net working capital increased by CHF 12.0m, reflected in the increased order backlog Working capital ratios (based on 12-month rolling averages) Monthly average net working capital in % of net sales increased to 23.2% (H1 2017: 21.5%) Inventories increased to CHF 112.8m (H1 2017: CHF 94.8m). DIO (monthly average days inventory outstanding) increased by 5 days to 85 days (H1 2017: 80 days) Stable amount of trade receivables (net of prepayments by customers) at CHF 31.8m (H1 2017: CHF 31.6m). DSO (monthly average days sales outstanding) increased to 22 days (H1 2017: 18 days) Comet Group Half Year Results August 16,

17 Financial Results Non-current assets influenced by capital expenditure for building expansion in Flamatt and EBS impairment Non-current assets increased by CHF 6.4m or 4.1% Compared to prior year-end, property, plant and equipment and intangible assets increased by CHF 4.6m Capital expenditure in new building in Flamatt amounted to CHF 9.4m Cash capital expenditures excluding new building in Flamatt as a mixture of replacement and capacity increases totaled CHF 7.8m Depreciation of non-current assets totaled CHF 3.8m; amortization was CHF 2.6m (excluding EBS impairment) Impairment of PP&E totaled CHF 0.6m and impairment of intangible assets totaled CHF 5.4m Negative translation effects totaled CHF 0.2m Deferred tax assets increased by CHF 1.8m as a consequence of the loss situation in Germany Comet Group Half Year Results August 16, Financial Results Equity increased in absolute and relative terms, driven by profitability in H1 Current liabilities decreased by CHF 4.8m, mainly driven by: Decrease in trade payables and accrued expenses Non-current liabilities decreased by CHF 2.4m, mainly due to: Reclassification of a CHF 3.0m bank loan from non-current to current Equity ratio increased from 51.7% to 53.2%: Total comprehensive income of CHF 16.1m for H Net income: CHF 14.4m Foreign currency translation gains: CHF 0.4m Actuarial gains on defined benefit plan liabilities net of tax: CHF 1.3m Share-based payments of CHF 0.1m Distribution to shareholders of CHF 1.50 per share, totaling CHF 11.6m Comet Group Half Year Results August 16,

18 Financial Results Ongoing solid net-debt-to-ebitda ratio of 0.6x H H H H H Increase in net debt to CHF 35.2m (end of H1 2017: CHF 20.9m), mainly driven by ongoing investments in growth and by cash capital expenditures in property, plant and equipment EBITDA 12 month rolling Net debt / Net cash Net debt / EBITDA (12 month rolling) Comet Group Half Year Results August 16, Outlook Comet Group Half Year Results August 16,

19 Outlook The prospects for the Comet Group remain positive PCT with data economy as growth driver and initiative to access RF generator market IXM: solid stable contribution with interesting growth potential for ivario generator Facility expansion in Flamatt completed, creating urgently needed space for the further development of the business and the more efficient structuring of production processes Under new management, IXS sees fruits of portfolio advancement EBT: on a new footing; progress in all development projects Key conditions created for future profitable growth in the IXS and EBT businesses as well Comet Group Half Year Results August 16, Outlook The Group confirms the new guidance for 2018 Net sales in CHF millions EBITDA margin in % FX: 1.16 EUR/CHF, 0.97 USD/CHF Comet Group Half Year Results August 16,

20 Outlook Outlook by division, FY 2018 vs Group PCT IXS IXM EBT Sales Sales in matchboxes and vacuum capacitors in semiconductor market on prior-year level Growth especially in new products in electronics Ongoing solid growth in non-destructtive testing Strong mid-term potential; short-term: divestment of systems business in Davenport Profitability (EBITDA margin) Accelerated development of innovative RF power platform to realize design-in and enter this new market from 2020 onwards Product portfolio renewal (NDT), one-off cost due to earnings improvement program Higher volume combined with cost-optimized products and processes; investment in expansion of ivario product platform Continued high investment in new applications; one-time loss due to closure of systems business in Davenport Comet Group Half Year Results August 16, Outlook Overview of organization Plasma Control Technologies X-Ray y Systemsy CEO R. Lenggenhager CIO CFO E. Dubuis M. Portmann CHRO P. Hafner Communications I. Najorka X-Ray Modules ebeam Technologies M. Kammerer M. Barz (interim) S. Haferl R. Lenggenhager (interim) Comet Group Half Year Results August 16,

21 Questions and answers Comet Group Half Year Results August 16, Financial calendar for the Comet Group November 13, 2018 March 14, 2019 April 25, 2019 Investor Day Publication of 2018 annual report Annual shareholder meeting in Berne More details on our business performance and financial results: Markus Portmann Chief Financial Officer T Ines Najorka VP Corp. Communications T Comet Group Half Year Results August 16,

22 Disclaimer This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward-looking statements in this document are projections of possible future developments. All forward-looking statements are made on the basis of data available to Comet at the time of preparation of this document. The Comet Group assumes no obligation whatsoever to update or revise forward-looking statements in this document, whether as a result of new information, future events or otherwise. Comet Group Half Year Results August 16, Thank you for your interest Comet Group Half Year Results August 16,