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20130416 phönix roadshow presentation_final_update

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  • 1. AT&S Roadshow | April 2013
  • 2. 1AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 3. 2AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 4. Management team – introduction3Andreas Gerstenmayer, CEOJoined AT&S as CEO in 2010Previous positions include:18 years of work experience at Siemens, including Managing Director with SiemensTransportation Systems GmbH Austria and CEO of the Drive Technology businessunit in Graz from 2003 to 2008Partner at FOCUSON Business Consulting GmbH after leaving SiemensEducation and other positions:Member of the Research Council of StyriaDegree in Production Engineering from Rosenheim University of Applied SciencesHeinz Moitzi, CTOCTO since 2005; with AT&S since 1981Previous positions include:Various management positions within AT&SMeasurement engineer with Leoben University of Mining and MetallurgyEducation:Degree from Higher Technical College of Electrical EngineeringStudied electrical installation with Stadtwerke Judenburg (Judenburg municipal utilitycompany)
  • 5. Sustainable growth play4Technology leader for high-end PCBsIProfitable and sustainably growing marketIIBest positioning vs. Asian competitorsIIILeveraging on technological leadershipIV
  • 6. Focus on high-end production capabilitiesProduction of tailor made PCBsDesign service for customer solutionsECP® technology5
  • 7. ► Seasonality and new productlaunches twice a year6Attractive business mixCharacteristic Applications56%SegmentRevenueshare**) Based on AT&S financials 1.April – 31.December 201244%Mobile DeviceIndustry & AutomotiveAdvancedPackagingTarget market diversification provides for superior earnings stabilityand a close relationship with the technology leaders in each market segmentMarket leadersSiemensGeneral ElectricEADSHellaContinentalTexasInstrumentsTDK-EPCOSSonyRIMLGHuaweiNokiaZTE► Higher predictability and fewerproduct launchesFY 2011/12 FY 2012/13FY 2011/12 FY 2012/13Growing business withcomplementary know-how55.5 56.247.756.3 55.959.6 59.1Q1 Q2 Q3 Q4 Q1 Q2 Q354.775.181.485.869.8 68.790.7Q1 Q2 Q3 Q4 Q1 Q2 Q3
  • 8. 7Successful shift to Asia – fit for future growth31%35%41%53%61%67% 69%73%19.9%17.9%15.3%16.4%11.6%9.3%19.7%20.1%5.0%10.0%15.0%20.0%25.0%0%20%40%60%80%2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12Percentage of Asian production volume EBITDA margin332 375 467 450 372 488 514486Group revenues [€m]Production split by region and year, revenue and margin developmentContinuous shift of production volumes to AsiaLocal presence in key markets & access to emerging Asian smartphone playersStrong presence in both Asia and EuropeClose to the main mobile device assembly sitesAdvanced know-how to capture local market growth
  • 9. Global set-up with access to key markets8Production plantsHeadquartersSales officesProduction plant under constructionInternational presence and key technology production overviewHeadquarters: Leoben-HinterbergTarget region: globalKey technologies: HDI, special products, protoypes,quick turnaround business, rigid-flex PCBsPlant: Chongqing(under construction)Key production capability aftercompletion: IC substratesPlant: AnsanTarget region: Korea,EuropeKey technologies:flexible and rigid-flexPCBsPlant: ShanghaiTarget region: globalKey technologies: HDI volumebusinessPlant: FehringTarget region: EuropeKey technologies: double-sided,flexible, semi-flexible, rigid-flex PCBsPlant: NanjangudTarget region: Europe, IndiaKey technologies: double-sided andmultilayer PCBs
  • 10. 9 814 13 139202006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13Continuous expansion of IP portfolioPatent applicationsOver 300 R&D employeesSustainable R&D spend (c. 6% of sales on average)15% of revenues generated by products launched withinthe last three yearsInnovation – the foundation for successR&D as key growth driver Selected R&D PartnersIP portfolioCurrent IP portfolio comprises 82 patents and patentfamilies, most of which secure proprietary productionprocesses5 trademarks (ECP ®, 2.5 D ®, Nucleus ®, ALIVH ®, AT&S ®)Rigorous protection of intellectual property rightsContinuing expansion of patent portfolio9
  • 11. 10AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 12. On the edge of a new growth cycleGlobal PCB turnover ($m)The PCB Market is a fast growing marketWe are just at the beginning of a new growth cycleSource: Prismark11
  • 13. 12Technological leadership and quality focusHDI PCB manufacturer rankingSource: PrismarkATS – Quality leader in PCB manufacturingTechnology leader in the market for high-endprinted circuit boardsLeadership in miniaturisation and integrationAT&S’ high-end interconnection solutions givecustomers a decisive competitive edgeHighly innovative solutions implemented withhigh process quality on an industrial scaleEnvironmentally sustainable processesQuality and efficient management of naturalresources is at the heart of our plants’ setup
  • 14. Size of components continues to decreaseIncreased number of applications per areaFurther digitalisation in more and more applicationsSource: Daimler, Google13Benefiting from global megatrendsSource: ifixitTransistor density to further increaseSource: Wikipedia (Henry‘s law)Miniaturisation and increase of battery lifeMoore’slaw: Everytwo years,the numberof transistorsper chip areadoublesiPad 1 vs. iPad 2More and more communication technology isbeing integrated into industrial solutionsIncreased health consciousness and demographicchange western Europe lead to increased demand formedical diagnostics and electronic medical devices
  • 15. 14AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 16. IC-Substrates – a logical next step for AT&SYear Technical Development min. L/S [µm]Multi LayerHDI Any LayerAdvanced PackagingPCBHDI Micro ViaIC Substrate10040152560HDI Anylayer +198219982005201020142016 8Core BusinessAT&S PCB Technology Road MapNew Business15
  • 17. IC-Substrates in a nutshell16Substrate (15µm – 7µm)PCB (50µm-25µm)Chip (40nm – 10nm)Main influencing factorsPerformance increase(Moores Law)Size reduction PCB(Trend: Miniaturisation)123 Technical parameter (~ 25µm)(Physical process border)321Mitochondrion – 1µmDNA – 1nmHair – 100µmScale:
  • 18. 17Main differencesMarket sizeNo. of competitorsProd-cap. China [%]Tech. Spec. (L/S)Quality standardsLevel of automationEntry barriersPCB Commodity HDI30.530 M$2011 7.423 M$2011> 2000 > 5048% 45%-40 µm 40 µmhigh highhigh highlow highIC Substrate8.636 M$2011< 205%10-12 µmvery highvery highvery highPCB commodity vs. HDI vs. IC-SubstrateSource: Prismark, company estimates
  • 19. IC Substrate market developmentIC-Substrates – an attractive niche market182,6383,0253,5654,9776,4677,0586,9595,9118,1028,6368,2309,79310,42911,10611,82902,0004,0006,0008,00010,00012,00014,00002 03 04 05 06 07 08 09 10 11 12e 13e 14e 15e 16eIC Substrate market [$m] Market characteristics & impact for AT&SSource: Prismark17% 16%16%16%15%16%38%36%34%32%29%28%55% 55% 52% 50% 49% 47%Closed club of 4-5 players for FC-BGAsubstratesHigh barriers to entryKey technology for future densityrequirementsFor every Dollar invested we expect approx.1.2 Dollars of revenues p.a.Higher operational margin expectedcompared to HDI technology
  • 20. Requirements AT&S’ USPBest-positioned to enter IC-SubstratesHighest qualitystandardsQuality leadershipFirst-choice partner for industry leadersTime-to-market Construction of Chongqing site already started mid 2011Processknow-howTechnological leadership in high-end PCB productionKnow-how synergies from core business and patented chipembedding technologyStrong industrypartnerStrategic partnership agreement with a major semiconductorproducerTechnological cooperation and supply agreement in placeRamp-upexperienceSuccessful track-record of ramp-up in ChinaExtensive experience in setting up new complex productionprocesses19
  • 21. Track-record in setting up high-tech plants20The construction status inChongqing is a significantbusiness advantage forAT&S (time)High partner involvementensures a fast and secureramp-up phaseAT&S has a proven trackrecord in setting up a LCCplant in ChinaAT&S has already receivedthe facility, equipment andmaterial specificationsAT&S will receive know howtransfer for the materialhandling, operationalsystems and technologyrecipesChongqing – Status quo & RoadmapControlEquipment Specificationtransfer to AT&S
  • 22. 21AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 23. 22Path for sustainable growthStrategic focus Upside potentialContinue growth strategy (High-endSmartphones, Tablets, Ultrabooks, etc.)Improve GP-Margin (Portfolio management,Improve plant utilization)Strategic partnership with MFLEX to produce HDIrigid-flex PCBs for new applications and designsIncrease revenue in selected market niches(medical, automotive, etc.)AT&S to leverage its patented chip embeddingtechnology with a major industry playerEnter the high margin league for technologyleadersEstimated Capex for new plant in Chongqing of c.€ 350m over the next three yearsInvestment in a new high-end production line inShanghai for a substrate technology (“interposer”)Earlier involvement intechnology developmentNew high margin businessOrg. synergies ChongqingEarlier involvement intechnology developmentSynergies within the high-margin businessBroader IP portfolioNew business opportunitiesNewBusinessCoreBusiness
  • 24. 23AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 25. Sustainable growth play24Technology leader for high-end PCBsIProfitable and sustainably growing marketIIBest positioning vs. Asian competitorsIIILeveraging on technological leadershipIVLeading innovator in the PCB industry, specialised in integration density & miniaturisationFirst choice for top players and quality leaders in each market segmentHighly attractive market with exposure to global key megatrendsFocus on high-quality and thus high-margin marketsStrong production footprint in China is key for cost efficiency and crucial to serve emerging Asian playersPartner of choice for quality componentsAdvanced Packaging: One of the first manufacturers with a patented chip embedding technology (ECP®)IC-Substrates: The high-margin segment of the industry
  • 26. 25AT&S – the quality leader of PCB productionBest positioned in highly attractive marketIC-Substrates – the foundation for future successMid-term strategy and measuresInvestment highlightsAppendixAgenda123645
  • 27. AT&S - Stock ProfileListing Vienna Stock Exchange, Prime StandardIndices ATX Prime, WBIReuters RIC (A) ATSV.VIBloomberg (A) ATS AV# of shares issued 25.9m# of shares outstanding 23.3mCalendar08.05.13 Release of Annual Results 2012/1304.07.13 Annual shareholder meeting25.07.13 Dividend payment date andex-dividend date26
  • 28. AT&S – Diversification27Turnover YTD 2012/13 Turnover YTD 2012/1325%7%13%55%Austria+GermanyRest of EuropeAsiaCanada/USA26%13%50%11%Austria+GermanyRest of EuropeAsiaCanada/USADistribution of Turnover, Ship to Party Distribution of Turnover by Headquarter
  • 29. Mobile DevicesSeasonalityVery short prodcut life cyclesHigher loading volatilityShort visibility28AT&S – Business cyclicality28Industrial & AutomotiveLonger product life cyclesMedical segment grows by more than 50%growing prototype businessAutomotive segment reports record high turn overHigher visibilityDistribution of Segment Turnoverin €m54.7 55.575.156,281.447,785.856.369.855.968.759.690.759.10.010.020.030.040.050.060.070.080.090.0100.0Mobile Devices Industrial & AutomotiveQ1 FY11/12 Q2 FY11/12 Q3 FY11/12 Q4 FY11/12Q1 FY12/13 Q2 FY12/13 Q3 FY12/13
  • 30. AT&S - Financial performanceIn € 000 Q1 - Q3 2012/13 Q1 - Q3 2011/12CONSOLIDATED INCOMESTATEMENTRevenues 405,121 371,754Produced in Asia (in %) 75 72Produced in Europe (in %) 25 28EBITDA 74,426 75,913EBITDA margin (in %) 18.4 20.4EBIT 20,981 31,644EBIT margin (in %) 5.2 8.5Net income 5,439 21,864Cash Earnings 58,883 66,15929
  • 31. AT&S – Sound balance sheetIn € 000 31.12.2012 31.12.2011CONSOLIDATED BALANCE SHEETTotal assets 709,546 722,209Total equity 289,225 289,293Net debt 252,143 255,727Net gearing (in %) 87.2 88.4Net working capital 120,774 108,184Net working capital / revenues (in %) 22.4 21.8Equity ratio (in %) 40.8 40.130
  • 32. To find out more – visit www.ats.net31
  • 33. Disclaimer32Despite a diligent preparation of this presentation the information contained herein has not beenindependently verified and we assume no liability for the content or any action based on this presentation.We do not give any warranty, guarantee or commitment, neither explicitly nor implicitly. No reliance shouldbe placed on the fairness, accuracy, completeness or correctness of this information or opinions containedherein and neither AT&S nor any of its employees assume responsibility for the completeness or accuracyof the information contained or not in this presentation. The presentation does not include and does notconstitute or form part of any offer whatsoever, nor does it constitute or form part of any kind of prospectus.This presentation contains certain forward-looking statements. These are based on management’s viewsand assumptions and involve known and unknown risks and uncertainties. Actual results may differmaterially from those projected or implied in such forward-looking statements. Forward-looking informationinvolves risks and uncertainties that could significantly affect expected results.This document does not constitute an offer or invitation to purchase or subscribe for any shares and neitherit nor any part of it shall form the basis of or be relied upon in connection with any contract or commitmentwhatsoever.