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AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben
Tel +43 (0) 3842 200-0 | E-Mail info@ats.net
www.ats.net
AT&S
first choice for advanced applications
Company Presentation
Oktober 2015
1
Company Overview
Strategy & Market
Annex
Financials
Table of Contents
2
AT&S – a world leading high-tech PCB company
 Megatrend-driven
markets with attractive
growth potential
 Entering a new high-end
business segment by
2016
 Pure high-end segment play
 Technology & quality leader
 Largest European PCB
producer
 Partner of choice for blue
chip customer base
 Balanced industry portfolio
 Strong Asian production
footprint with focus on
high volume/low mix
 European footprint: high
mix/low volume
 Operational excellence:
Outstanding process
know-how, productivity
and efficiency
 One of the most profitable
players in the industry:
above industry EBITDA
margins
 Strong cash flow generation
 Proven long term successful
financial track record
AT&S – Key Facts
Strong track record1 Balanced portfolio / Global customer base2
7%
€ in millions
3
Distribution revenue: Business Unit, Q1 2015/16
Distribution revenue: Customer Region, Q1 2015/16
based on sold to party
23%
6%
14%
57%
Germany/Austria
Other European
countries
Asia
Americas
60%
40%
Mobile Devices &
Substrates
Automotive,
Industrial, Medical
488
514
542
590
667
141
194
96 103 102
127
168
29 4647 42 31
54
90
13 24
2010/11 2011/12 2012/13 2013/14 2014/15 Q1
2014/15
Q1
2015/16
Revenue EBITDA EBIT
+5%+5% +9% +13% +38%
Revenue growth
4
Global footprint ensures cost efficiency
 European production facilities: high mix/low volume
 Asian production facilities: high volume/low mix
 Sales network spanning three continents
 About ~8,500 employees
Plant Shanghai, China
Staff: ~4,600
Plant Ansan, Korea
Staff: ~300
Plant Nanjangud, India
Staff: ~1,100
Plant Chongqing, China
under construction
Staff: ~1,100
Plant Leoben, Austria
Headquarters
Staff: ~ 900
Plant Fehring, Austria
Staff: ~300
AT&S sales officesAT&S plants
68.0
88.7
120.9
104.5 115.9
-
50,0
100,0
150,0
Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16
72.6 71.7
65.9
72.6 77.8
50,0
60,0
70,0
80,0
Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16
► volatility due to seasonal effects
5
Balanced high-end product portfolio
to level seasonality
Characteristic Selected ApplicationsSegment
1) Based on external revenue € in millions in Q1 2015/16
Mobile Devices &
Substrates
Advanced
Packaging
Selected Market
Leaders
GoPro
Sony
LG
Canon
Qualcomm
Blackberry
Lenovo
Huawei
Samsung
Xiaomi
ZTE
Intel
Apple
► stable business due to longer product life
time
 Includes the segment Advanced Packaging (in the
process of being established) as well as group
management and financial activities
Others
(Revenue € in millions)
(Revenue € in millions)
Automotive,
Industrial,
Medical
Revenue
Share1)
Communication
Computing
Automotive:
Lighting, thermal, sensors,
safety, infotainment,
powertrain
Medical:
Patient monitoring,
therapy, diagnostic
Industrial:
Instrumentation &
control, power
solutions, lighting
Consumer
Electronics
Osram
Hella
Siemens
General Electric
Continental
Harmann
EADS
Texas Instruments
ST Microelectronics
Freescale
Semiconductor
RFMD
TDK-Epcos
Qualcomm
60%
40%
6
Company Overview
Strategy & Market
Annex
Financials
Table of Contents
AT&S Positioning Strategy
Strategic focus on high-end technologies
High-end
HDI PCBs and
IC-Substrates
~30%
High-end technology share > 70%
HDI and Anylayer PCBs, Embedding
Complementary
technology share: <30%
SS, DS, ML,
Flex, RF
Structure of general PCB market – based on technologies
Single-sided (SS), double-sided (DS), multilayer- (ML),
flex and rigid-flex (RF) PCBs
~70%
AT&S Revenue structure in 2014 - based on technologies
7
Strategy: Selecting segments and applications
 Market segments – selected by AT&S:
Mobile Devices & Substrates Automotive Industrial Medical
Attractive, specific
application growth:
> 10 %
Potential for sustainable
high EBITDA margins :
> 20 %
Technological fit:
dense structures:
35 - 60 micrometer
Criteria for selection
Smartphones, Tablets,
Ultrabooks, Wearables ..
Navigation, Advanced
Driver Assistance
Systems, Infotainment..
Machine-2-Machine
Communication,
Industrial Computer…
Hearing Aids, Patient
Monitoring ..
1 2 3
 Specific applications that show attractive, overall growth within our addressed market segments :
8
Market-Technology-Strategy
Focus on strategic applications with high growth rates and high technological requirements
Market growth
PCBs
Technology level
Total segment
market
Market
addressed by
AT&S
low
medium
high
Mobile Devices
Mobile
DevicesIndustrial
Automotive
low
medium high
Medical
Industrial
Automotive
Medical
Smartphones
Tablets, Notebooks
Wearables
Navigation
Infotainment
Driver Assistence Systems
Machine-2-Machine
Industrial Computer
Test & Reference
Hearing Aids
Pace Maker
9
Source: AT&S; Prismark (2015), JMS (2014), YOLE (2015)
Advanced Packaging represents the “Embedded die – package” forecast.
FC-Substrates represents “FC-BGA” and “FC-CSP” package substrates.
Market per Segments 2014 – 2019 [US$ in millions]
The Total PCB & Substrate Market will reach around
70 bn US $ in 2019
Overall Market development
Market per Technology 2014 – 2019 [US$ in millions]
10
CAGR 4% CAGR 4%
11
Market Player/Position HDI Technology
Source: Prismark, August 2014; NTI CY2013; AT&S Strategy
Market position HDI Technology
Revenue (US$ in millions)
Rank Country Supplier HDI
Non HDI
PCBs
IC-
Substrates
Total
revenue
1 TWN Unimicron 682 671 795 2,148
2 TWN Compeq 538 509 - 1,047
3 AUT AT&S 530 248 - 778
4 KOR SEMCO 480 173 1,212 1,865
5 JPN Ibiden 426 - 1,080 1,506
6 USA TTM 406 962 - 1,368
7 TWN Zhen Ding 343 1,774 - 2,117
8 TWN Tripod 305 1,077 - 1,382
9 KOR DAP 279 21 - 300
10 TWN Unitech 236 304 - 540
Automotive growth1)
High-end PCB market outperforms
segment growth
Mobile Phones growth1)
Industrial growth1)
Medical growth1)
12
Other Mobile Devices growth1)
PCB market growth 1)2) HDI market growth1)3)
Source: Prismark May 2015, 1)based on US$ revenue estimates for 2015 vs. 2014 market, 2) Total PCB market of US$ 59.5bn estimates, 3) Total HDI PCB market of US$ 8.2bn estimates.
4) CAGAR 2014-2019
5.2%
IC Substrates growth4)
4.7%
3.1%
2.3%
6.7%
6.4%
5.9%
>10%
~15%
~7%
6.7%
1.3%
1.8%
2.9% ~6%
~5%
13
General Description & Technology Application Areas Customer Base Market Size *
PCBs
PCBs are the interconnection platform for electric,
electronic & mechanical components (such as resistors ,
capacitors, IC’s, connectors; etc.)
Density: Line/ Space > 25micron
Computer, Consumer,
Communication, Automotive
Industrial, Medical
OEM´s
Tier 1
Tier 2
AT&S addresses
a market of
US$ 5.8bn
Substrate-like
PCBs
Substrate-like PCBs are the next evolution of high-end HDI
PCBs with higher density: Line/Space 20-30micron
Wearables and applications of
the “Internet of Things”
OEM’s
Tier 1
Tier 2
Technology in
introduction,
part of High –
end HDI and
Low-end
Substrate
market
* AT&S addresses part of a total market of USD 47.5bn/ source: Global Production Value 2014, Prismark, March 2015
Extended Technology Portfolio starting 2016:
Printed Circuit Boards (PCBs) and IC Substrates
Why AT&S is entering the substrate-like PCB market:
 Ongoing miniaturisation and increasing modularisation
 Positioning for next technology generation in early stage
14
General Description & Technology Application Areas Customer Base Market Size *
IC Substrates
IC-Substrates serve as interconnection platform with
higher density (Line/Space < 15 micron) between
semiconductors (Chips) & PCBs
High-end processors for
Computer, Communication,
Automotive, Industrial
OEM’s
Semiconductor
Industry
AT&S addresses
a market of
US$ 5.1bn
* AT&S addresses part of a total market of USD 7,6bn/ source: Global Production Value 2014, Prismark, March 2015
Extended Technology Portfolio starting 2016:
Printed Circuit Boards (PCBs) and IC Substrates
Why AT&S is entering the IC Substrate market?
 Market demand: “Advanced applications” need high-end microprocessors with increased performance
 Technology: „High-end PCB-Technology” and Substrate-Technology for Semiconductors is merging
Investment project Chongqing - Overview
15
 Location: Chongqing, Central China
 Total investment: € 480m in first phase
(until mid 2017)
 Expected start-up costs of € 70-90m
(€ 50-60m capitalised)
 Expected CAPEX-revenue ratio: mean of 0.9 (at full
expansion)
 Expected ramp-up:
> IC Substrates: Beginning of 2016
> Substrate-like PCBs: second half 2016
*at full expansion
Plant I Plant II
Products: IC Substrates Substrate-like PCBs
Capacity: 150,000 sqm/p.a.* 200,000 sqm/p.a.*
Layout Chongqing – IC-S & Substrate-like PCBs
Building 1: IC Substrate plant
Specifications:
 Clean Room Class < 100
Building 2: Substrate-like PCB plant
Specifications:
 Clean Room Class < 10,000 to
< 1,000 in special areas
16
(as of 30/06/2015)
Completion of
Infrastructure
Start Equipment
Characterisation
Certification
Start
Training
Start Equipment
Ordering
Plant Lay-out
Product-
Specification
Start of Production up to High Volume
Mass Production

17




Q4 Q1 Q2 Q3
FY 2013/14
Q4 Q1 Q2 Q3
FY 2014/15
Q3
FY 2012/13
Q4 Q1 Q2 Q3
FY 2015/16
Q4 Q1 Q2 Q3
FY 2016/17
Q4
 Investment as at 30/06/2015: € 178.5m1)
 Characterisations and certification for first line is ongoing
 Start of production is scheduled for 2016
Project Status IC Substrates - Chongqing I
1) CAPEX in fixed tangible assets
Start Equipment Installation
 Substrate-like PCBs are the next evolution of HDI technology, based on ongoing trend for miniaturisation and
modularisation
 AT&S addresses next level of technology development and expands leading technology position
 Technology synergies: Technology development of SLP takes place in plant Shanghai, first quantities will be
available 2015 out of Shanghai plant; high volume mass production of SLPs expected to start second half of
calendar year 2016 at new plant in Chongqing
 Financed by current and future cashflows and existing debt facilities
18
Project status substrate-like PCBs – Chongqing II
Q4
Start Building & Infrastructure
Start of Production up to High Volume Mass Production
Q1 Q2 Q3
FY 2015/16
Q4 Q1 Q2 Q3
FY 2016/17 FY 2017/18
Q1 Q2 Q3 Q4
Equipment Installation
Qualification
19
Driving Future Trends: Internet of Things (IoT) and
Application Structures
 Healthcare
 Glasses
Wearable Electronics
Smart Mobility  Autonomous Driving
 Car2Car Communication
Smart City  Smart Lighting
Smart Buildings  Home/Building Automatisation
 Energy Management
Smart Production/Industry 4.0  Automatisation/Robotics
 Production Control Systems
Smart Healthcare  Connectivity (e.g. online patient
monitoring)
Smart Energy  Smart Metering
 30-50 billion of „Things“ will be connected in 2020
 Wearables market forecast: USD 10 – 60 billion by 2018
Source: IHS, 2013
20
Company Overview
Strategy & Market
Annex
Financials
Table of Contents
21
Sound top-line growth, above industry margins
and increasing cash conversion
488
514
542
590
667
141
194
96
103 102
127
168
29
46
19.7%20.1%
18.9%
21.6%
25.1%
21.0%
23.0%
€ in millions
71
87
72
105
144
25
38
Revenue
Y-O-Y growth
Operating Cash Flow
Y-O-Y development
EBITDA and
EBITDA-margin
 Continuous growth path up to full
capacity utilisation
 Revenue with products out of
Asian production increased from
69% in 2010/11 to 80% in Q1
2015/16
 EBITDA increase due to good product
mix, high capacity utilisation and
efficiency and cost programs
 EBITDA margin guidance FY 2015/16:
>19% due to impact from ramp-up
Chongqing plant
 Operating cash flow generation
driven by strong EBITDA
performance
€ in millions € in millions
Regular business
22
Capex & Staff
CAPEX
CAPEX increase reflects technology
investments in existing locations and
investments in Chongqing project (whereof
€ 25.6m).
113
40
90
165
43 40
2011/12 2012/13 2013/14 2014/15 Q1
2014/15
Q1
2015/16
STAFF*
The increased headcount is primarily based on
the Chongqing project.
7,417 7,321
7,027
7,638
8,390
2011/12 2012/13 2013/14 2014/15 Q1 2015/16
123
60954 1,049
* incl. leased personnel, FTE, average for the period(€ in millions)
Employees of project Chongqing
Financials Q1 2015/16
23
€ in thousands (unless otherwise
indicated)
01.04.2015 - 30.06.2015 01.04.2014 - 30.06.2014
STATEMENT OF PROFIT OR LOSS
Revenue 194,392 141,310
produced in Asia 80% 75%
produced in Europe 20% 25%
EBITDA 45,518 29,131
EBITDA margin 23.4% 20.6%
EBIT 23,813 13,324
EBIT margin 12.3% 9.4%
Finance costs - net (170) (2,665)
Income Taxes (3,993) (3,080)
Profit for the period 19,650 7,579
Cash Earnings 41.322 23.377
EPS in € (average number of shares
outstanding) 0.50 0.19
EBIT increase of € 10.5m: high revenue and
capacity utilisation and continuous
improvement activities.
Revenue increase of 37.6%:
20.9% from organic growth and 16.7%
from FX effects.
Effective group tax rate: 16.9% vs.
28.9% in Q1 2014/15: last years
number does not consider Shanghai
tax benefit.
Improvement despite slight increase of
interest expenses due to FX gains.
24
Profit for the period and earnings per share
 Earnings per share increased by 159.2%
23.3 23.3 23.3
30.8
38.9 38.9 38.9
1.51 1.14 0.62 1.24 1.78
0.19 0.50
-20
-15
-10
-5
0
0
10
20
30
40
50
2010/11 2011/12 2012/13 2013/14 2014/15 Q1
2014/15
Q1
2015/16
Number of shares, average number; in million pcs. Earnings per share; in €
Financials Q1 2015/16
25
€ in thousands (unless otherwise
indicated) 30.06.2015 31.03.2015
STATEMENT OF FINANCIAL POSITION
Non-current assets 735,546 712,757
Current assets 507,822 508,055
Equity 601,073 604,358
Non-current liabilities 415,221 413,070
Current liabilities 227,074 203,384
Total assets 1,243,368 1,220,812
Net debt 137,590 130,510
Net gearing 22.9% 21.6%
Net working capital 96,919 95,319
Net working capital per revenues 12.5% 14.3%
Equity ratio 48.3% 49.5%
Increase from profit of the period of
€ 19.6m overcompensated by negative
impact from FX out of translation.
Only slight increase despite high CAPEX due
to significantly improved cash flows from
operating activities.
26
Financial debt, cash and net debt
212
273
299
372
405
18
31
82
261
274
194
243
217
111
131
2010/11 2011/12 2012/13 2013/14 2014/15
Gross debt Cash Net debt
27
Net debt/EBITDA
2.0
2.3
2.1
0.9
0.8
2010/11 2011/12 2012/13 2013/14 2014/15
 Expected multiple in temporary peak of Chongqing investments: < 3.5x
28
Overview Debt Portfolio Duration
Maturity
€ in millions < 1 Year 1-5 Years > 5 Years Total
Corporate Bond 3.1 99.7 - 102.8
Export Loans
32.0
- - 32.0
Public funds and other - 2.4 1.1 3.5
Bank Borrowings 13.3 220.1 37.4 270.8
Total 30/06/2015 48.4 322.2 38.5 409.1
Total 31/03/2015 46.0 321.6 37.7 405.3
 Average debt portfolio duration: 3.6 years (2014/15: 3.8 years)
 Average financing costs of 3.4%
 177m € of credit lines not utilised
Refinancing 2015/16
Financials Q1 2015/16
29
€ in thousands 01.04.2015 – 30.06.2015 01.04.2014 – 30.06.2014)
STATEMENT OF CASH FLOWS
Profit for the period 19,650 7,579
Non cash bearing of profit or loss 25,078 18,416
Changes in Working Capital (7,041) (1,088)
Cash flow from operating activities 37,687 24,907
Cash flow from investing activities (40,331) (42,937)
Cash flow from financing activities 3,320 19,951
Change in cash and cash equivalents 676 1,921
Increase is based on higher business
activities; inventory was reduced.
Increase of € 12.8m creates solid base to
finance most of CAPEX.
Continuous high CAPEX activities to
finalise set up of Chongqing and
continuous upgrades of existing
production facilities.
30
Net Working Capital Management
Net Working Capital Development - € in millions and in % of revenue
92
103
92 95
97
18.0%
19.0%
15.6%
14.3%
12.5%
2011/12 2012/13 2013/14 2014/15 Q1 2014/15
Net Working Capital development Net Working Capital % of revenue
AT&S - Stock Profile
Listing: Vienna Stock Exchange,
Prime Standard
Indices: ATX Prime, WBI
ThomsonReuters (A): ATSV.VI
Bloomberg (A): ATS AV
Half year results 2015/16 27 October 2015
3rd Quarter Results 2014/15 28 January 2016
Full year results 2015/16 10 May 2016
22nd Annual General Meeting 07 July 2016
31
Financial Calendar 1 year development / Daily volume
ATX Prime
AT&S
# of shares outstanding 38.85m
Avg. daily volume: 83,790 shares
Performance ytd: + 48.01%
Performance 1 year: + 48.83%
Dividend 2014/15: EUR 0.36/per share
Dividend yield: 2.5%
32
14.9% of Free Float not identified
AT&S – Shareholder structure
33
Outlook FY 2015/16
Provided a stable macroeconomic environment and continuous good
customer demand Management expects an ongoing high level of
capacity utilisation.
On the basis of the organic growth of the first quarter, a business
development at the level of the previous year in the next three
quarters and an average USD-EUR exchange rate of 1.19, the
Management Board has increased the revenue expected for the
financial year 2015/16 to € 725m.
Influenced by the expected costs of the start-up of the new plants in
Chongqing, the EBITDA margin should exceed 19% (guidance at the
beginning of the financial year: 18-20%). This includes an EBITDA
margin in the core business at the level of the previous year.
34
Company Overview
Strategy & Market
Annex
Financials
Table of Contents
35
AT&S Product Portfolio
HDI
any-layer printed circuit
boards
HDI microvia printed
circuit boards – high
density interconnect
Multilayer printed
circuit boards
Double-sided printed
circuit boards
IMS printed circuit
boards – insulated
metal substrate
Further technological
enhancement to HDI
microvia: All electrical
connections in HDI any-layer
boards consist of laser-drilled
microvias. Advantage:
further miniaturisation, and
higher performance and
reliability. AT&S produces HDI
any-layer in 4 to 12 layers.
HDI: high
density interconnect,
meaning laser-drilled
connections (microvias).
HDI is first step
towards miniaturisation.
AT&S can produce 4-layer
laser PCBs up to 6-n-6
HDI multi layer PCBs.
Found in almost every area of
industrial electronics. AT&S
produces printed circuit
boards with 4 to 28 layers, in
quantities from individual
prototypes to small batches
and mass production.
Used in all areas of
electronics.
AT&S focuses on double-
sided printed circuit boards
with thicknesses in the range
of 0.1-3.2 mm.
IMS: insulated metal
substrate. Primary function:
heat dissipation for use
mainly with LEDs and power
components.
Production site
Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring
Applications
Smartphones, Tablets,
Notebooks
Mobile phones and nearly all
electronic applications
including automotive
(navigation, infotainment and
driver assistance systems)
Used in all electronic
applications including touch
panels, and in products
ranging from aircraft to
motorcycles, from storage
power plants to solar arrays
Primarily industrial and
automotive applications
Lighting industry
36
AT&S Product Portfolio
Flexible printed
circuit boards
Semi-flexible printed
circuit boards
Rigid-flex printed
circuit boards
Flexible printed circuit
boards on aluminium
AT&S patented
technologies
Used to replace
wiring and connectors,
allowing for connections
and geometries that are
not possible with rigid
printed circuit boards.
More limited bend radius
than flexible printed circuit
boards. The use of a
standard thin laminate
makes them a cost-effective
alternative.
Combine the
advantages of flexible
and rigid printed circuit
boards, yielding benefits
for signal transmission,
size and stability.
Used when installing LEDs
in car headlights, for
example, where the
printed circuit board is
bonded to an aluminium
heat sink to which the
LEDs are then attached.
Production site
Ansan, Fehring Fehring Leoben, Ansan Ansan
Applications
Nearly all areas of
electronics, including
measuring devices and
medical applications
Automotive applications Industrial electronics,
such as production
machines and industrial
robots
Lighting, automotive,
building lighting
ECP: Embedded
Component Packaging
ECP® is a patented AT&S packaging
technology used to embed
active and passive electronic
components in the inner layers
of a printed circuit board. ECP®
technology is used in
ever smaller, more efficient and
more powerful devices, such
as smartphones, tablets, digital
cameras and hearing aids.
Production site: Leoben
2.5D® Technology
Platform
Combines mechanical and
electronic miniaturisation, and
enables partial reduction of the
thickness of a circuit board.
Advantage: populated assemblies
have a thinner profile.
Can be also used to
make cavities in the printed circuit
board, e.g. for acoustic
channels. Major application
for this technology is the 2.5D®
rigid-flex printed circuit board,
a lower cost alternative for flex-to
install applications.
Production sites:
Leoben, Shanghai
Management
37
Andreas Gerstenmayer, CEO
 Joined AT&S as CEO in 2010
 Previous positions include:
− 18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems
GmbH Austria and CEO of the Drive Technology business unit in Graz from 2003 to 2008
− Partner at FOCUSON Business Consulting GmbH after leaving Siemens
 Education and other positions:
− Member of the Research Council of Styria
− Degree in Production Engineering from Rosenheim University of Applied Sciences
Heinz Moitzi, COO
 COO since 2005; with AT&S since 19811)
 Previous positions include:
− Various management positions within AT&S
− Measurement engineer with Leoben University of Mining and Metallurgy
 Education:
− Degree from Higher Technical College of Electrical Engineering
Karl M. Asamer, CFO
 Joined AT&S as CFO in 2014
 Previous positions include:
− Managing Director of GEKA Group in Germany
− Managing Director of Sell GmbH in Germany
 Education:
− Degree: doctorate in business administration in Linz, Austria
1)He was already with the founding company of AT&S
38
Milestones
Five core dimensions of sustainability within AT&S
Energy and
carbon footprint
Water
AT&S – a learning
organisationResources
Thinking ahead –
shaping the future
CSR gains importance in long term success
 Improving efficiency
 Motivated and qualified staff
CSR as a key to sustainable business success
39
The importance of sustainability is rising within:
 Authorities
(basis for securing operation licences)
 Customers
(relevant for placing orders)
AT&S saves CO2 and Water…
40
Sustainability – Figures and Fields of Action
AT&S aims to minimise its
environmental footprint by
reducing the CO2 emissions
per m2 PCB attributable to
production processes by 5%
a year.
AT&S aims to reduce
the Group‘s annual
fresh water
consumption per m2
PCB by 3%.
765.2
834.7
783.9
734.0
2011/12 2012/13 2013/14 2014/15
Freshwater consumption
In liters per sqm weighted PCB
1)
47.4
51.0
50.7
49.0
2011/12 2012/13 2013/14 2014/15
CO2-Footprint
1)
In kg per sqm weighted PCB
1) Since 2012/13 calculation according to EICC standards
before that AT&S internal calculation
Visit: www.ats.net; Twitter @AT&S IR_PR; YouTube AtundS
41
AT&S – first choice for advanced applications
IR Contact:
Elke Koch
Fabriksgasse 13,
8700 Leoben/Austria
Tel: +43 3842 200 5925
Mobile: +43 676 8955 5925
Fax: +43 3842 200 15909
e.koch@ats.net
www.ats.net
Disclaimer
42
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AT&S does not provide any representations or warranties with regard to this presentation or for the correctness and completeness of the statements contained therein,
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AT&S IR Presentation October 2015

  • 1. AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-Mail info@ats.net www.ats.net AT&S first choice for advanced applications Company Presentation Oktober 2015
  • 2. 1 Company Overview Strategy & Market Annex Financials Table of Contents
  • 3. 2 AT&S – a world leading high-tech PCB company  Megatrend-driven markets with attractive growth potential  Entering a new high-end business segment by 2016  Pure high-end segment play  Technology & quality leader  Largest European PCB producer  Partner of choice for blue chip customer base  Balanced industry portfolio  Strong Asian production footprint with focus on high volume/low mix  European footprint: high mix/low volume  Operational excellence: Outstanding process know-how, productivity and efficiency  One of the most profitable players in the industry: above industry EBITDA margins  Strong cash flow generation  Proven long term successful financial track record
  • 4. AT&S – Key Facts Strong track record1 Balanced portfolio / Global customer base2 7% € in millions 3 Distribution revenue: Business Unit, Q1 2015/16 Distribution revenue: Customer Region, Q1 2015/16 based on sold to party 23% 6% 14% 57% Germany/Austria Other European countries Asia Americas 60% 40% Mobile Devices & Substrates Automotive, Industrial, Medical 488 514 542 590 667 141 194 96 103 102 127 168 29 4647 42 31 54 90 13 24 2010/11 2011/12 2012/13 2013/14 2014/15 Q1 2014/15 Q1 2015/16 Revenue EBITDA EBIT +5%+5% +9% +13% +38% Revenue growth
  • 5. 4 Global footprint ensures cost efficiency  European production facilities: high mix/low volume  Asian production facilities: high volume/low mix  Sales network spanning three continents  About ~8,500 employees Plant Shanghai, China Staff: ~4,600 Plant Ansan, Korea Staff: ~300 Plant Nanjangud, India Staff: ~1,100 Plant Chongqing, China under construction Staff: ~1,100 Plant Leoben, Austria Headquarters Staff: ~ 900 Plant Fehring, Austria Staff: ~300 AT&S sales officesAT&S plants
  • 6. 68.0 88.7 120.9 104.5 115.9 - 50,0 100,0 150,0 Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 72.6 71.7 65.9 72.6 77.8 50,0 60,0 70,0 80,0 Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 ► volatility due to seasonal effects 5 Balanced high-end product portfolio to level seasonality Characteristic Selected ApplicationsSegment 1) Based on external revenue € in millions in Q1 2015/16 Mobile Devices & Substrates Advanced Packaging Selected Market Leaders GoPro Sony LG Canon Qualcomm Blackberry Lenovo Huawei Samsung Xiaomi ZTE Intel Apple ► stable business due to longer product life time  Includes the segment Advanced Packaging (in the process of being established) as well as group management and financial activities Others (Revenue € in millions) (Revenue € in millions) Automotive, Industrial, Medical Revenue Share1) Communication Computing Automotive: Lighting, thermal, sensors, safety, infotainment, powertrain Medical: Patient monitoring, therapy, diagnostic Industrial: Instrumentation & control, power solutions, lighting Consumer Electronics Osram Hella Siemens General Electric Continental Harmann EADS Texas Instruments ST Microelectronics Freescale Semiconductor RFMD TDK-Epcos Qualcomm 60% 40%
  • 7. 6 Company Overview Strategy & Market Annex Financials Table of Contents
  • 8. AT&S Positioning Strategy Strategic focus on high-end technologies High-end HDI PCBs and IC-Substrates ~30% High-end technology share > 70% HDI and Anylayer PCBs, Embedding Complementary technology share: <30% SS, DS, ML, Flex, RF Structure of general PCB market – based on technologies Single-sided (SS), double-sided (DS), multilayer- (ML), flex and rigid-flex (RF) PCBs ~70% AT&S Revenue structure in 2014 - based on technologies 7
  • 9. Strategy: Selecting segments and applications  Market segments – selected by AT&S: Mobile Devices & Substrates Automotive Industrial Medical Attractive, specific application growth: > 10 % Potential for sustainable high EBITDA margins : > 20 % Technological fit: dense structures: 35 - 60 micrometer Criteria for selection Smartphones, Tablets, Ultrabooks, Wearables .. Navigation, Advanced Driver Assistance Systems, Infotainment.. Machine-2-Machine Communication, Industrial Computer… Hearing Aids, Patient Monitoring .. 1 2 3  Specific applications that show attractive, overall growth within our addressed market segments : 8
  • 10. Market-Technology-Strategy Focus on strategic applications with high growth rates and high technological requirements Market growth PCBs Technology level Total segment market Market addressed by AT&S low medium high Mobile Devices Mobile DevicesIndustrial Automotive low medium high Medical Industrial Automotive Medical Smartphones Tablets, Notebooks Wearables Navigation Infotainment Driver Assistence Systems Machine-2-Machine Industrial Computer Test & Reference Hearing Aids Pace Maker 9
  • 11. Source: AT&S; Prismark (2015), JMS (2014), YOLE (2015) Advanced Packaging represents the “Embedded die – package” forecast. FC-Substrates represents “FC-BGA” and “FC-CSP” package substrates. Market per Segments 2014 – 2019 [US$ in millions] The Total PCB & Substrate Market will reach around 70 bn US $ in 2019 Overall Market development Market per Technology 2014 – 2019 [US$ in millions] 10 CAGR 4% CAGR 4%
  • 12. 11 Market Player/Position HDI Technology Source: Prismark, August 2014; NTI CY2013; AT&S Strategy Market position HDI Technology Revenue (US$ in millions) Rank Country Supplier HDI Non HDI PCBs IC- Substrates Total revenue 1 TWN Unimicron 682 671 795 2,148 2 TWN Compeq 538 509 - 1,047 3 AUT AT&S 530 248 - 778 4 KOR SEMCO 480 173 1,212 1,865 5 JPN Ibiden 426 - 1,080 1,506 6 USA TTM 406 962 - 1,368 7 TWN Zhen Ding 343 1,774 - 2,117 8 TWN Tripod 305 1,077 - 1,382 9 KOR DAP 279 21 - 300 10 TWN Unitech 236 304 - 540
  • 13. Automotive growth1) High-end PCB market outperforms segment growth Mobile Phones growth1) Industrial growth1) Medical growth1) 12 Other Mobile Devices growth1) PCB market growth 1)2) HDI market growth1)3) Source: Prismark May 2015, 1)based on US$ revenue estimates for 2015 vs. 2014 market, 2) Total PCB market of US$ 59.5bn estimates, 3) Total HDI PCB market of US$ 8.2bn estimates. 4) CAGAR 2014-2019 5.2% IC Substrates growth4) 4.7% 3.1% 2.3% 6.7% 6.4% 5.9% >10% ~15% ~7% 6.7% 1.3% 1.8% 2.9% ~6% ~5%
  • 14. 13 General Description & Technology Application Areas Customer Base Market Size * PCBs PCBs are the interconnection platform for electric, electronic & mechanical components (such as resistors , capacitors, IC’s, connectors; etc.) Density: Line/ Space > 25micron Computer, Consumer, Communication, Automotive Industrial, Medical OEM´s Tier 1 Tier 2 AT&S addresses a market of US$ 5.8bn Substrate-like PCBs Substrate-like PCBs are the next evolution of high-end HDI PCBs with higher density: Line/Space 20-30micron Wearables and applications of the “Internet of Things” OEM’s Tier 1 Tier 2 Technology in introduction, part of High – end HDI and Low-end Substrate market * AT&S addresses part of a total market of USD 47.5bn/ source: Global Production Value 2014, Prismark, March 2015 Extended Technology Portfolio starting 2016: Printed Circuit Boards (PCBs) and IC Substrates Why AT&S is entering the substrate-like PCB market:  Ongoing miniaturisation and increasing modularisation  Positioning for next technology generation in early stage
  • 15. 14 General Description & Technology Application Areas Customer Base Market Size * IC Substrates IC-Substrates serve as interconnection platform with higher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs High-end processors for Computer, Communication, Automotive, Industrial OEM’s Semiconductor Industry AT&S addresses a market of US$ 5.1bn * AT&S addresses part of a total market of USD 7,6bn/ source: Global Production Value 2014, Prismark, March 2015 Extended Technology Portfolio starting 2016: Printed Circuit Boards (PCBs) and IC Substrates Why AT&S is entering the IC Substrate market?  Market demand: “Advanced applications” need high-end microprocessors with increased performance  Technology: „High-end PCB-Technology” and Substrate-Technology for Semiconductors is merging
  • 16. Investment project Chongqing - Overview 15  Location: Chongqing, Central China  Total investment: € 480m in first phase (until mid 2017)  Expected start-up costs of € 70-90m (€ 50-60m capitalised)  Expected CAPEX-revenue ratio: mean of 0.9 (at full expansion)  Expected ramp-up: > IC Substrates: Beginning of 2016 > Substrate-like PCBs: second half 2016 *at full expansion Plant I Plant II Products: IC Substrates Substrate-like PCBs Capacity: 150,000 sqm/p.a.* 200,000 sqm/p.a.*
  • 17. Layout Chongqing – IC-S & Substrate-like PCBs Building 1: IC Substrate plant Specifications:  Clean Room Class < 100 Building 2: Substrate-like PCB plant Specifications:  Clean Room Class < 10,000 to < 1,000 in special areas 16
  • 18. (as of 30/06/2015) Completion of Infrastructure Start Equipment Characterisation Certification Start Training Start Equipment Ordering Plant Lay-out Product- Specification Start of Production up to High Volume Mass Production  17     Q4 Q1 Q2 Q3 FY 2013/14 Q4 Q1 Q2 Q3 FY 2014/15 Q3 FY 2012/13 Q4 Q1 Q2 Q3 FY 2015/16 Q4 Q1 Q2 Q3 FY 2016/17 Q4  Investment as at 30/06/2015: € 178.5m1)  Characterisations and certification for first line is ongoing  Start of production is scheduled for 2016 Project Status IC Substrates - Chongqing I 1) CAPEX in fixed tangible assets Start Equipment Installation
  • 19.  Substrate-like PCBs are the next evolution of HDI technology, based on ongoing trend for miniaturisation and modularisation  AT&S addresses next level of technology development and expands leading technology position  Technology synergies: Technology development of SLP takes place in plant Shanghai, first quantities will be available 2015 out of Shanghai plant; high volume mass production of SLPs expected to start second half of calendar year 2016 at new plant in Chongqing  Financed by current and future cashflows and existing debt facilities 18 Project status substrate-like PCBs – Chongqing II Q4 Start Building & Infrastructure Start of Production up to High Volume Mass Production Q1 Q2 Q3 FY 2015/16 Q4 Q1 Q2 Q3 FY 2016/17 FY 2017/18 Q1 Q2 Q3 Q4 Equipment Installation Qualification
  • 20. 19 Driving Future Trends: Internet of Things (IoT) and Application Structures  Healthcare  Glasses Wearable Electronics Smart Mobility  Autonomous Driving  Car2Car Communication Smart City  Smart Lighting Smart Buildings  Home/Building Automatisation  Energy Management Smart Production/Industry 4.0  Automatisation/Robotics  Production Control Systems Smart Healthcare  Connectivity (e.g. online patient monitoring) Smart Energy  Smart Metering  30-50 billion of „Things“ will be connected in 2020  Wearables market forecast: USD 10 – 60 billion by 2018 Source: IHS, 2013
  • 21. 20 Company Overview Strategy & Market Annex Financials Table of Contents
  • 22. 21 Sound top-line growth, above industry margins and increasing cash conversion 488 514 542 590 667 141 194 96 103 102 127 168 29 46 19.7%20.1% 18.9% 21.6% 25.1% 21.0% 23.0% € in millions 71 87 72 105 144 25 38 Revenue Y-O-Y growth Operating Cash Flow Y-O-Y development EBITDA and EBITDA-margin  Continuous growth path up to full capacity utilisation  Revenue with products out of Asian production increased from 69% in 2010/11 to 80% in Q1 2015/16  EBITDA increase due to good product mix, high capacity utilisation and efficiency and cost programs  EBITDA margin guidance FY 2015/16: >19% due to impact from ramp-up Chongqing plant  Operating cash flow generation driven by strong EBITDA performance € in millions € in millions
  • 23. Regular business 22 Capex & Staff CAPEX CAPEX increase reflects technology investments in existing locations and investments in Chongqing project (whereof € 25.6m). 113 40 90 165 43 40 2011/12 2012/13 2013/14 2014/15 Q1 2014/15 Q1 2015/16 STAFF* The increased headcount is primarily based on the Chongqing project. 7,417 7,321 7,027 7,638 8,390 2011/12 2012/13 2013/14 2014/15 Q1 2015/16 123 60954 1,049 * incl. leased personnel, FTE, average for the period(€ in millions) Employees of project Chongqing
  • 24. Financials Q1 2015/16 23 € in thousands (unless otherwise indicated) 01.04.2015 - 30.06.2015 01.04.2014 - 30.06.2014 STATEMENT OF PROFIT OR LOSS Revenue 194,392 141,310 produced in Asia 80% 75% produced in Europe 20% 25% EBITDA 45,518 29,131 EBITDA margin 23.4% 20.6% EBIT 23,813 13,324 EBIT margin 12.3% 9.4% Finance costs - net (170) (2,665) Income Taxes (3,993) (3,080) Profit for the period 19,650 7,579 Cash Earnings 41.322 23.377 EPS in € (average number of shares outstanding) 0.50 0.19 EBIT increase of € 10.5m: high revenue and capacity utilisation and continuous improvement activities. Revenue increase of 37.6%: 20.9% from organic growth and 16.7% from FX effects. Effective group tax rate: 16.9% vs. 28.9% in Q1 2014/15: last years number does not consider Shanghai tax benefit. Improvement despite slight increase of interest expenses due to FX gains.
  • 25. 24 Profit for the period and earnings per share  Earnings per share increased by 159.2% 23.3 23.3 23.3 30.8 38.9 38.9 38.9 1.51 1.14 0.62 1.24 1.78 0.19 0.50 -20 -15 -10 -5 0 0 10 20 30 40 50 2010/11 2011/12 2012/13 2013/14 2014/15 Q1 2014/15 Q1 2015/16 Number of shares, average number; in million pcs. Earnings per share; in €
  • 26. Financials Q1 2015/16 25 € in thousands (unless otherwise indicated) 30.06.2015 31.03.2015 STATEMENT OF FINANCIAL POSITION Non-current assets 735,546 712,757 Current assets 507,822 508,055 Equity 601,073 604,358 Non-current liabilities 415,221 413,070 Current liabilities 227,074 203,384 Total assets 1,243,368 1,220,812 Net debt 137,590 130,510 Net gearing 22.9% 21.6% Net working capital 96,919 95,319 Net working capital per revenues 12.5% 14.3% Equity ratio 48.3% 49.5% Increase from profit of the period of € 19.6m overcompensated by negative impact from FX out of translation. Only slight increase despite high CAPEX due to significantly improved cash flows from operating activities.
  • 27. 26 Financial debt, cash and net debt 212 273 299 372 405 18 31 82 261 274 194 243 217 111 131 2010/11 2011/12 2012/13 2013/14 2014/15 Gross debt Cash Net debt
  • 28. 27 Net debt/EBITDA 2.0 2.3 2.1 0.9 0.8 2010/11 2011/12 2012/13 2013/14 2014/15  Expected multiple in temporary peak of Chongqing investments: < 3.5x
  • 29. 28 Overview Debt Portfolio Duration Maturity € in millions < 1 Year 1-5 Years > 5 Years Total Corporate Bond 3.1 99.7 - 102.8 Export Loans 32.0 - - 32.0 Public funds and other - 2.4 1.1 3.5 Bank Borrowings 13.3 220.1 37.4 270.8 Total 30/06/2015 48.4 322.2 38.5 409.1 Total 31/03/2015 46.0 321.6 37.7 405.3  Average debt portfolio duration: 3.6 years (2014/15: 3.8 years)  Average financing costs of 3.4%  177m € of credit lines not utilised Refinancing 2015/16
  • 30. Financials Q1 2015/16 29 € in thousands 01.04.2015 – 30.06.2015 01.04.2014 – 30.06.2014) STATEMENT OF CASH FLOWS Profit for the period 19,650 7,579 Non cash bearing of profit or loss 25,078 18,416 Changes in Working Capital (7,041) (1,088) Cash flow from operating activities 37,687 24,907 Cash flow from investing activities (40,331) (42,937) Cash flow from financing activities 3,320 19,951 Change in cash and cash equivalents 676 1,921 Increase is based on higher business activities; inventory was reduced. Increase of € 12.8m creates solid base to finance most of CAPEX. Continuous high CAPEX activities to finalise set up of Chongqing and continuous upgrades of existing production facilities.
  • 31. 30 Net Working Capital Management Net Working Capital Development - € in millions and in % of revenue 92 103 92 95 97 18.0% 19.0% 15.6% 14.3% 12.5% 2011/12 2012/13 2013/14 2014/15 Q1 2014/15 Net Working Capital development Net Working Capital % of revenue
  • 32. AT&S - Stock Profile Listing: Vienna Stock Exchange, Prime Standard Indices: ATX Prime, WBI ThomsonReuters (A): ATSV.VI Bloomberg (A): ATS AV Half year results 2015/16 27 October 2015 3rd Quarter Results 2014/15 28 January 2016 Full year results 2015/16 10 May 2016 22nd Annual General Meeting 07 July 2016 31 Financial Calendar 1 year development / Daily volume ATX Prime AT&S # of shares outstanding 38.85m Avg. daily volume: 83,790 shares Performance ytd: + 48.01% Performance 1 year: + 48.83% Dividend 2014/15: EUR 0.36/per share Dividend yield: 2.5%
  • 33. 32 14.9% of Free Float not identified AT&S – Shareholder structure
  • 34. 33 Outlook FY 2015/16 Provided a stable macroeconomic environment and continuous good customer demand Management expects an ongoing high level of capacity utilisation. On the basis of the organic growth of the first quarter, a business development at the level of the previous year in the next three quarters and an average USD-EUR exchange rate of 1.19, the Management Board has increased the revenue expected for the financial year 2015/16 to € 725m. Influenced by the expected costs of the start-up of the new plants in Chongqing, the EBITDA margin should exceed 19% (guidance at the beginning of the financial year: 18-20%). This includes an EBITDA margin in the core business at the level of the previous year.
  • 35. 34 Company Overview Strategy & Market Annex Financials Table of Contents
  • 36. 35 AT&S Product Portfolio HDI any-layer printed circuit boards HDI microvia printed circuit boards – high density interconnect Multilayer printed circuit boards Double-sided printed circuit boards IMS printed circuit boards – insulated metal substrate Further technological enhancement to HDI microvia: All electrical connections in HDI any-layer boards consist of laser-drilled microvias. Advantage: further miniaturisation, and higher performance and reliability. AT&S produces HDI any-layer in 4 to 12 layers. HDI: high density interconnect, meaning laser-drilled connections (microvias). HDI is first step towards miniaturisation. AT&S can produce 4-layer laser PCBs up to 6-n-6 HDI multi layer PCBs. Found in almost every area of industrial electronics. AT&S produces printed circuit boards with 4 to 28 layers, in quantities from individual prototypes to small batches and mass production. Used in all areas of electronics. AT&S focuses on double- sided printed circuit boards with thicknesses in the range of 0.1-3.2 mm. IMS: insulated metal substrate. Primary function: heat dissipation for use mainly with LEDs and power components. Production site Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring Applications Smartphones, Tablets, Notebooks Mobile phones and nearly all electronic applications including automotive (navigation, infotainment and driver assistance systems) Used in all electronic applications including touch panels, and in products ranging from aircraft to motorcycles, from storage power plants to solar arrays Primarily industrial and automotive applications Lighting industry
  • 37. 36 AT&S Product Portfolio Flexible printed circuit boards Semi-flexible printed circuit boards Rigid-flex printed circuit boards Flexible printed circuit boards on aluminium AT&S patented technologies Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid printed circuit boards. More limited bend radius than flexible printed circuit boards. The use of a standard thin laminate makes them a cost-effective alternative. Combine the advantages of flexible and rigid printed circuit boards, yielding benefits for signal transmission, size and stability. Used when installing LEDs in car headlights, for example, where the printed circuit board is bonded to an aluminium heat sink to which the LEDs are then attached. Production site Ansan, Fehring Fehring Leoben, Ansan Ansan Applications Nearly all areas of electronics, including measuring devices and medical applications Automotive applications Industrial electronics, such as production machines and industrial robots Lighting, automotive, building lighting ECP: Embedded Component Packaging ECP® is a patented AT&S packaging technology used to embed active and passive electronic components in the inner layers of a printed circuit board. ECP® technology is used in ever smaller, more efficient and more powerful devices, such as smartphones, tablets, digital cameras and hearing aids. Production site: Leoben 2.5D® Technology Platform Combines mechanical and electronic miniaturisation, and enables partial reduction of the thickness of a circuit board. Advantage: populated assemblies have a thinner profile. Can be also used to make cavities in the printed circuit board, e.g. for acoustic channels. Major application for this technology is the 2.5D® rigid-flex printed circuit board, a lower cost alternative for flex-to install applications. Production sites: Leoben, Shanghai
  • 38. Management 37 Andreas Gerstenmayer, CEO  Joined AT&S as CEO in 2010  Previous positions include: − 18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems GmbH Austria and CEO of the Drive Technology business unit in Graz from 2003 to 2008 − Partner at FOCUSON Business Consulting GmbH after leaving Siemens  Education and other positions: − Member of the Research Council of Styria − Degree in Production Engineering from Rosenheim University of Applied Sciences Heinz Moitzi, COO  COO since 2005; with AT&S since 19811)  Previous positions include: − Various management positions within AT&S − Measurement engineer with Leoben University of Mining and Metallurgy  Education: − Degree from Higher Technical College of Electrical Engineering Karl M. Asamer, CFO  Joined AT&S as CFO in 2014  Previous positions include: − Managing Director of GEKA Group in Germany − Managing Director of Sell GmbH in Germany  Education: − Degree: doctorate in business administration in Linz, Austria 1)He was already with the founding company of AT&S
  • 40. Five core dimensions of sustainability within AT&S Energy and carbon footprint Water AT&S – a learning organisationResources Thinking ahead – shaping the future CSR gains importance in long term success  Improving efficiency  Motivated and qualified staff CSR as a key to sustainable business success 39 The importance of sustainability is rising within:  Authorities (basis for securing operation licences)  Customers (relevant for placing orders)
  • 41. AT&S saves CO2 and Water… 40 Sustainability – Figures and Fields of Action AT&S aims to minimise its environmental footprint by reducing the CO2 emissions per m2 PCB attributable to production processes by 5% a year. AT&S aims to reduce the Group‘s annual fresh water consumption per m2 PCB by 3%. 765.2 834.7 783.9 734.0 2011/12 2012/13 2013/14 2014/15 Freshwater consumption In liters per sqm weighted PCB 1) 47.4 51.0 50.7 49.0 2011/12 2012/13 2013/14 2014/15 CO2-Footprint 1) In kg per sqm weighted PCB 1) Since 2012/13 calculation according to EICC standards before that AT&S internal calculation
  • 42. Visit: www.ats.net; Twitter @AT&S IR_PR; YouTube AtundS 41 AT&S – first choice for advanced applications IR Contact: Elke Koch Fabriksgasse 13, 8700 Leoben/Austria Tel: +43 3842 200 5925 Mobile: +43 676 8955 5925 Fax: +43 3842 200 15909 e.koch@ats.net www.ats.net
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