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AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.net
AT&S
First choice for advanced applications
Investor and Analyst Presentation
August 2018
Investor and Analyst Presentation 1
Table of Contents
Company Overview
Strategy & Market
Financials
Outlook
Annex
Investor and Analyst Presentation 2
AT&S – a world leading high-tech PCB & IC substrates company
High-end interconnect solutions
for
Mobile Devices, Automotive, Industrial,
Medical Applications and Semiconductor
Industry
Continuously
outperforming
market growth
€ 991.8m
revenue in
FY 2017/18
Among top 10
PCB producers
worldwide*
# 3
in high-end technology
worldwide*
9,981
Employees**
Cost-competitive production
footprint with
6
plants in Europe and Asia
* For CY 2017
Source: N.T. Information Ltd (July 2018); Prismark
** For AT&S FY 2017/18
Investor and Analyst Presentation 3
Our competitive advantages
Leading provider of high-end technologies and applications
• Leading position in miniaturisation and modularisation – modules market with stronger growth
than PCB market
• Technology advantage at mSAP due to timely extension of the IC substrates technology
Successful industrialisation of leading-edge technologies combined with highest quality
• Outstanding process know-how, productivity and efficiency
Long-standing customer relationships with technology and market leaders
Solid balance sheet with strengthened equity ratio of 46.5% in 2017/18
• Sustainable dividend policy
Market outperformance and high profitability
• Above industry average EBITDA margin 20 – 25%
• Strong cash flow generation and therefore improved internal financing capabilities
Investor and Analyst Presentation 4
Market Segments & Product Applications served by AT&S
Computer,
Communication,
Consumer
Smartphones, Tablets,
Wearables, Ultrabooks,
Cameras
…
Industrial
Machine-2-Machine
Communication,
Robots, Industrial
Computer,
X2X Communication
…
Automotive
Advanced Driver
Assistance Systems,
Emergency-Call, X2X
Communication
…
Medical
Patient
Monitoring, Hearing Aids,
Pacemaker,
Neurostimulation, Drug
Delivery, Prosthesis
…
IC substrates
High Performance
Computer, Microserver
…
Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
Investor and Analyst Presentation 5
AT&S – Key Facts
590
667
763
815
992
200 221
127
168 168
131
131*
30 5254
90 77
77*
7*
3*
18
2013/14 2014/15 2015/16 2016/17 2017/18 Q1
2017/18
Q1
2018/19
Revenue EBITDA EBIT
+11%
Good track record1 Balanced portfolio/Global customer base2
7%
Split revenue: Business Unit, Q1 2018/19
Split revenue: Customer Region, Q1 2018/19
based on sold to party
+13%
+14%
+7%
€ in millions
* Based on ramp-up effects for new plants in China
Revenue growth
62%
38%
Mobile Devices & Substrates
Automotive, Industrial, Medical
61%23%
8%
8% Americas
Germany/Austria
Asia
Other European countries
+22%
Investor and Analyst Presentation 6
Global footprint ensures proximity
to supply chain & cost efficiency
977* 401* 1,144* 2,335* 4,365* 301*
Shanghai
China
Ansan
Korea
Chongqing
China
Leoben, Headquarters
Austria
Fehring
Austria
Nanjangud
India
AT&S plant & sales office
AT&S sales office
AT&S Headquarters
*Staff, Average, FTE, Q1 2018/19; 74 employees in other locations
Investor and Analyst Presentation 7
Table of Contents
Company Overview
Strategy & Market
Financials
Outlook
Annex
Investor and Analyst Presentation 8
Future positioning
as leading high-end interconnect solutions provider
Core business
New technologies
and interconnect
solutions
Extended technology
toolbox
Additional customers
Additional applications
Broader positioning in the
value chain
+
MorethanAT&S
Overview of the transformation from a high-end
PCB manufacturer to a high-end interconnect
solutions provider:
Investor and Analyst Presentation 9
From vision to strategy
Targets/Key Performance
Indicators
Strategy
Expansion of technology leadership
• Leading provider of new interconnect solutions
• Innovation revenue rate: > 20%
Focus on high-end technologies and applications
Focus on innovative solutions “More than AT&S”
Medium-term profitable growth
• Medium-term revenue target of € 1.5 billion
• Medium-term EBITDA margin target of 20-25%
Focus on fast-growing and profitable applications
Highest service level and customer orientation
Operational excellence
Focus on cash flow generation
Creation of shareholder value
• Long-term ROCE ≥ 12%
Sustainable business development with focus on ROCE
Transparent dividend payout
Vision:
“First choice
for advanced
application”
Sustainable Management
• Fulfill and further develop standards in the area
of quality, environment, health & safety…
Human resource development
Uphold business ethics
Investor and Analyst Presentation 10
Strategic focus on high-end technologies
AT&S Revenue structure in FY 2017/18 – based on technologies
High-end
HDI PCBs and
IC substrates
~ 30%
Single-sided (SS), double-sided (DS), multilayer- (ML),
flex and rigid-flex (RF) PCBs
~ 70%
High-end technology share > 75%
HDI and any-layer PCBs, Embedding, IC
Substrates
Complementary technology
share: < 25%
SS, DS, ML,
Flex, RF
Structure of general PCB market – based on technologies
Source: Prismark PCB Report 2Q17/ August 2017; AT&S Controlling
Investor and Analyst Presentation 11
PCB & IC substrates market – Overview
15.3 15.8
18.6 19.9
8.3
9.0
5.5
5.9
3.9
4.22.5
2.65.6
5.9
2018 2020
IC Substrates
Military/Aerospace
Industrial/Medical
Automotive
Consumer
Communication
Computing
3.0%
3.9%
4.3%
1.8%
3.5%
2.3%
59.7
63.4
Forecast for the total PCB & IC substrates market
until 2020: CAAGR of 3.1%
2.8%
USD in billions
11
Source: Prismark, February 2018; Yole, March 2018
IC substrates
− Rising demand for server processors with positive impact on IC substrates
− “System-in-Package” or “All-in-One” modules for the integration of
functions are the growth drivers for the future
Industrial / Medical
− Driven by robotics, automation and Industry 4.0 activities
− High complexity in applications such as diagnostic and imaging devices,
mobile devices on and in the human body
Automotive
− Main drivers are autonomous driving and e-mobility
Consumer
− Market trend is the interconnection of devices (“Connected Devices”,
“Internet of Things” – “IoT”)
Communication
− 5G offers potential opportunities for further growth
Computer
− Slight increase forecast for servers in 2018, while tablet sales stagnate
Investor and Analyst Presentation 12
Market trends
Miniaturization and modularization still the main trends
12
Source: Yole , AT&S AG (2018)
Investor and Analyst Presentation 13
Driving the future: Internet of Things (IoT) Applications
Healthcare & Fitness
Smart Watches and Glasses
Wearable Electronics
Smart Mobility Autonomous Driving
Car2X Communication
Smart City Smart Lighting
Smart Buildings Home/Building Automatization
Smart Home Devices
Smart Production/Industry 4.0 Automatization/Robotics
Machine-to-Machine Communication
Smart Healthcare Connected Patient Monitoring Systems
Connected Consumer Healthcare Devices
Smart Energy Smart Metering
Building Blocks of IoT Modules: Sensing, Connectivity, Energy Storage/Harvesting, Power Management
30-50 billion of „Things“ will be connected in 2020
Wearable electronic devices offer revenue opportunities of USD 61.7bn beyond the smartphone market in 2020
Source: Gartner Inc. 2016
Investor and Analyst Presentation 14
Driving the industry: miniaturization & modularization
?
2003/04 2013 2017 202X
TYPE Mobile Phone Smartphone Smartphone All in One
PCB 125x55mm 85x20mm 80x20mm 25x25mm?
FORM FACTOR 1 0.25 0.23 0.06?
LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm
TECHNOLOGY 1-n-1 Any-layer mSAP – Any-layer FO/SAP/mSAP
Investor and Analyst Presentation 15
R&D as the key for technological leadership
6.6%
R&D Quota
(in % in relation to revenue)
258
Patents
International
R&D Partners
As of FY 2017/18 (ended 31/03/2018)
* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
40.4%
Innovation Revenue Rate *
R&D
Headquarters
Austria
Industrialization at the respective
production site
Investor and Analyst Presentation 16
Table of Contents
Company Overview
Strategy & Market
Financials
Outlook
Annex
Investor and Analyst Presentation 17
Highlights for the first quarter 2018/19
Successful start into the new fiscal year despite seasonality trends in the sector
Additional revenue and earnings contribution mainly from Chongqing
Revenue increase by 11.2% to € 222.1 million
− IC substrates contributed to revenue growth
− Good demand especially in Medical & Healthcare
EBITDA margin climbs to 23.4 % (PY: 14.9%)
− One-time valuation effects, among others due to FX impact since April 2018
Issue of a promissory note loan of € 292.5 million successfully completed
− Increase in reserves for planned growth with a revenue target of € 1.5 billion
− Securing favourable conditions for the long term at the current average interest rate of 1.18%
− Optimisation of the maturity profile and refinancing of promissory note loan issued in 2014
Investment in recent years is paying off
17
Investor and Analyst Presentation 18
Revenue and EBITDA development
€ in millions
18
Split revenue Q1 2018/19: Business Unit
Split revenue Q1 2018/19: Customer Region
18
62%
38%
Mobile Devices & Substrates
Automotive, Industrial,
Medical
61%
23%
8%
8%
Americas
Germany/Austria
Asia
Other European countries
Revenue: YoY: +11.2%: additional revenue from Chongqing and higher demand for IC substrates
EBITDA: YoY: +75.4%: higher contribution mainly from Chongqing and one-time valuation effects
199.6
286.0 280.2
225.9 222.1
29.7
74.7
85.9
35.7
52.0
Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
Revenue EBITDA and margin
26.1% 30.7%14.9% 15.8% 23.4%
Investor and Analyst Presentation 19
Net CAPEX & Staff
Net CAPEX
€ in millions
69.7
25.3
29.6
17.1 17.1
Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
* incl. contractors, FTE, average for the period
Staff*
Efficiency measures and seasonality reduced
headcount
9,901
10,159 10,057 9,807 9,598
Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
Investor and Analyst Presentation 20
Business Development – Mobile Devices & Substrates
113.6
197.6 199.6
137.2
137.8
20.9
59.4
75.0
23.7
39.3
Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
Revenue EBITDA
Additional contribution to revenue mainly from
Chongqing
Operational improvements and better product
mix in IC substrates
EBITDA improvements as a result of higher
contribution margin from Chongqing
€ in millions (unless
otherwise indicated)
Q1 2017/18 Q1 2018/19 Change in %
Revenue 137.3 160.2 16.6%
Revenue with external
customers 113.6 137.8 21.3%
EBITDA 20.9 39.3 88.0%
EBITDA margin 15.2% 24.5%
€ in millions; * Revenue with external customers
Revenue* and EBITDA
Investor and Analyst Presentation 21
85.0 87.3
79.3
87.7 83.3
9.7 13.2 9.3
14.5 12.0
Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
Revenue EBITDA
Business Development – Automotive, Industrial, Medical
Good demand in the segment Automotive,
Industrial and Medical
Continued growth path especially in Medical
Autonomous driving and e-mobility offer
further potential for revenue growth
EBITDA margin impacted by good mix and
positive FX effects
€ in millions (unless
otherwise indicated)
Q1 2017/18 Q1 2018/19 Change in %
Revenue 89.6 89.6 0.0%
Revenue with external
customers 85.0 83.3 -2.0%
EBITDA 9.7 12.0 23.2%
EBITDA margin 10.9% 13.4%
Revenue* and EBITDA
€ in millions; * Revenue with external customers
Investor and Analyst Presentation 22
€ in thousands (unless otherwise stated)
Q1 2017/18 Q1 2018/19
Change
YoY
STATEMENT OF PROFIT OR LOSS
Revenue 199,636 222,081 11.2%
produced in Asia 81% 83% 2pp
produced in Europe 19% 17% (2pp)
EBITDA 29,651 51.996 75.4%
EBITDA margin 14.9% 23.4% 8.5pp
EBIT (3,408) 18,323 -
EBIT margin (1.7%) 8.3% -
Finance costs – net (2,217) 1,703 -
Income taxes (5,604) (6,477) 15.6%
Profit for the period (11,229) 13,549 -
Earnings per share (€ 0.29) € 0.30 -
Financials Q1 2018/19
Additional revenue contribution mainly from
Chongqing
Negatively impacted by USD development
Higher contributions to earnings from
Chongqing
Other result positively effected by FX valuation
of accounts receivables
Lower gross interest expenses, higher interest
income, positive FX effects
The slight increase can be attributed to the
reduced tax scheme in Shanghai
Investor and Analyst Presentation 23
Financials Q1 2018/19
Profit for the period (+€ 13.5m)
First-time adoption of IFRS 9 and 15 (+€ 10.4m)
Positive FX effects (+€ 8.7m)
Seasonal increase and effects of first-time
adoption of IFRS 15
€ in thousands (unless otherwise stated)
31 Mar 2018 30 Jun 2018 Change
STATEMENT OF FINANCIAL
POSITION
Non-current assets 944,267 927,983 (1.7%)
Current assets 586,172 623,958 6.4%
Equity 711,391 743,604 4.5%
Non-current liabilities 515,276 520,427 1.0%
Current liabilities 303,772 287,910 (5.2%)
Total assets 1,530,439 1,551,941 1.4%
Net debt 209,237 214,076 2.3%
Net gearing 29.4% 28.8% (0.6pp)
Net working capital 72,437 127,320 75.8%
Net working capital per revenue 7.3% 14.3% 7.0pp
Equity ratio 46.5% 47.9% 1.4pp
Stable, despite seasonal increase of NWC, due
to positive result
Investor and Analyst Presentation 24
Financials Q1 2018/19
Clearly higher EBIT and lower change in WC
Lower capex for equipment (previous year
impacted by Chongqing)
€ in thousands
Q1 2017/18 Q1 2018/19
Change
YoY
STATEMENT OF CASH FLOWS
Operating result (EBIT) (3.408) 18.323 -
Paid/received interests (3.379) (1.752) 48,2%
Paid taxes (8.771) (7.160) 18,4%
Non cash bearing of profit or loss 33.079 29.016 (12,3%)
Cash flow from operating activities
before changes in working capital
17.520 38.427 >100%
Changes in working capital (66.813) (33.842) 49,3%
Cash flow from operating activities (49.293) 4.585 -
Cash flow from investing activities (66.966) (21.614) 67,7%
Cash flow from financing activities (25.082) 1.230 -
Change in cash and cash equivalents (141.341) (15.799) 88,8%
Operating free cash flow1)
(118.981) (12.497) 89,5%
Free cash flow2)
(116.259) (17.029) 85,4%
1)
Cash flow from operating activities minus Net CAPEX
2)
Cash flow from operating activities minus cash flow from investing activities
Nearly balanced due to improved operating
cash flow and lower capex needs
Investor and Analyst Presentation 25
Table of Contents
Company Overview
Strategy & Market
Financials
Outlook
Annex
Investor and Analyst Presentation 26
Outlook for 2018/19
Revenue growth by up to 6% and EBITDA margin at 20 to 23%
At this stage, upper end of guidance expected, due to positive Q1 development
Maintenance investments and minor technology upgrades of roughly € 70 to 100 million
Investments in capacity and technology expansion by another € 100 million depending on market development
Technology expansion and capacity increase in the area of autonomous driving at the sites in Nanjangud (India)
and Fehring (Austria) on track
Technology development projects in CHQ I as preparation of second phase in implementation
Further expansion in CHQ II depending on market development – next evaluation in mid FY 2018/2019
Investor and Analyst Presentation 27
Medium-term strategy – More than AT&S
AT&S outperformed a flat market in the past 6 years
− by scaling high-end any-layer technology
− by leveraging HDI technology to the Computer-, Consumer-,
Automotive-, Industrial and Medical market
Positioning as a leading high-end interconnect provider
100.8 103.2 96.4 94.6 103.2
108.9
123.1
140.8
150.4
183.0
60
100
140
180
220
260
300
2012* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e
PCB & substrates market AT&S revenue
276.8
120.53.0% p.a.
8.6% p.a.
*Index (2012 = 100)
2012: PCB & substrates market: USD 55.7bn; AT&S revenue: € 542m
Source: AT&S, Prismark (February 2018), Yole (March 2018)
Path of value-added growth will be pursued
consistently
Focus on leading position in terms of technology,
quality and results
New revenue target of € 1.5 billion
EBITDA margin of 20 to 25%
Investor and Analyst Presentation 28
Table of Contents
Company Overview
Strategy & Market
Financials
Outlook
Annex
Investor and Analyst Presentation 29
AT&S – Stock Profile
Listing: Vienna Stock Exchange,
Prime Standard
Indices: ATX, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Results for the first half-year 2018/19 31 October 2018
Results for the first three quarters 2018/19 31 January 2019
Annual Results 2018/19 07 May 2019
Financial Calendar Shareholder structure
# of shares outstanding 38.85m
Average daily volume*: ~ 142,000 shares
Performance 1 year*: +79%
Dividend 2017/18: € 0.36 per share
* 01/08/2017 – 31/07/2018
Investor and Analyst Presentation 30
Highlights in the financial year 2017/18
Very successful year 2017/18
− Growth in all business segments above market average
− High operating performance (utilization, yield, efficiency)
Position as technology leader in a challenging industry strengthened
− Ramp-up of the new mSAP lines in record time
− Operational improvement in the area of IC substrates
− Successful positioning in the high-frequency segment
Balance sheet structure significantly strengthened through hybrid bond (€ 173.0 million)
AT&S again listed on the Austrian lead index ATX
Among the top performers of the Vienna Stock Exchange with share price gaining 113.8 % in FY 2017/18
Record levels for revenue, EBITDA and EBIT
30
Investor and Analyst Presentation 31
Results for the financial year 2017/18
Revenue up 21.7% to € 991.8 million
− High-end printed circuit boards for mobile devices, especially mSAP and IC substrates, contributed to revenue growth
− Strong demand in the automotive, industrial, medical segments
− Negative exchange rate effects amounting to €-46.8 million had an impact on revenue
Generally high operating performance and product mix improve earnings
− EBITDA margin: 22.8% (PY: 16.1%)
− EBIT margin: 9.1% (PY: 0.8%)
EPS improved from €-0.59 to €1.38
Capex of € 141.7 million financed from cash flow from operating activities
Equity ratio increased to 46.5% due to issue of hybrid bond
Debt repayment period (net debt/EBITDA) improved to 0.9 years
Dividend of € 0.36 (PY: € 0.1)
Record levels for revenue and EBITDA
31
Investor and Analyst Presentation 32
Net CAPEX & Staff
Net CAPEX
FY 2017/18: CAPEX at a high level due to mSAP
upgrade and Chongqing phase 1
€ in millions
90.3
164.8
254.3
240.7
141.7
2013/14 2014/15 2015/16 2016/17 2017/18
* incl. contractors, FTE, average for the period
Staff*
Increase in number of employees by more than 2,900
7,027
7,638
8,759
9,526
9,981
2013/14 2014/15 2015/16 2016/17 2017/18
Investor and Analyst Presentation 33
Key credit figures
299
372
405
523
593
540
82 261 274 260 212 331
217
111
131
263
381
209
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Gross debt Financial assets and cash Net debt
0.9 0.8
1.6
2.9
0.9
2013/14 2014/15 2015/16 2016/17 2017/18
Target: < 3x
Net debt/EBITDA
Net debt decrease based on lower net capex
(Chongqing phase I finished) & Hybrid bond issue
€ in millions
Gross debt, financial assets and cash, net debt
Multiple
Investor and Analyst Presentation 34
Net Working Capital Management
€ in millions; % of revenue
Net Working Capital development
103
92 95
88
24
72
19.0%
15.6%
14.3%
11.6%
3.0%
7.3%
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Net working capital Net working capital per revenue
Investor and Analyst Presentation 35
AT&S Product Portfolio – I
ECP®:
Embedded Component Packaging IC substrates Substrate-like printed circuit boards
mSAP
Embedded Component Packaging allows to embed
active/passive components (e.g. wafer level dies) within
the layers of a PCB – contributes to miniaturization.
IC substrates serve as interconnection platform with
higher density (Line/Space < 15 micron) between
semiconductors (Chips) & PCBs .
Substrate-like PCBs (mSAP technology) are the next
evolution of high-end HDI PCBs with higher density:
Line/Space < 30 micron.
Production site
Leoben, Shanghai Chongqing Chongqing, Shanghai
Applications
Devices such as smartphones, tablets, digital
cameras and hearing aids
High-end processors for
Computer, Communication, Automotive, Industrial
Mobile applications like smartphones
Investor and Analyst Presentation 36
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 miniaturization, 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 miniaturization.
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-
3.2mm.
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
AT&S Product Portfolio – II
Investor and Analyst Presentation 37
Flexible printed
circuit boards
Semi-flexible printed
circuit boards
Rigid-flex printed
circuit boards
Flexible printed circuit
boards on aluminum
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 aluminum
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
AT&S Product Portfolio – III
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 sites: Leoben, Shanghai
2.5D® Technology
Platform
Combines mechanical and electronic
miniaturization, 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
Investor and Analyst Presentation 38
Management
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:
− Degree in Production Engineering from
Rosenheim University of Applied
Sciences
Monika Stoisser-
Göhring, CFO
CFO since 2017
Previous positions include:
− Since 2011 with AT&S in senior
positions in Finance and Human
Resources
− Various positions at international
accounting and tax consulting
companies
Education:
− Training as Tax Consultant
− Degree in Business Administration
from Karl-Franzens University Graz
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
1)He was already with the founding company of AT&S
Investor and Analyst Presentation 39
Milestones in the Group’s history
1987
Founding of the Group, emerging
from several companies owned by
the Austrian State Owned
Industries
1994
Privatization and
acquisition by Messrs
Androsch, Dörflinger, Zoidl
1999
Initial public offering on Frankfurt Stock Exchange
(„Neuer Markt“). Acquisition of Indal Electronics
Ltd., largest Indian printed circuit board plant
(Nanjangud) – today, AT&S India Private Limited
2002
Start of production at new Shanghai
facility – one of the leading HDI
production sites in the world
2010
Start of production
at plant II in India
2009
New production direction: Austrian
plants produce for high-value niches
in the automotive and industrial
segment; Shanghai focuses on the
high-end mobile devices segment
2008
AT&S change
to Vienna Stock
Exchange 2006
Acquisition of Korean
flexible printed circuit
board manufacturer,
Tofic Co. Ltd. – today,
AT&S Korea Co., Ltd.
2015
AT&S again achieves record high sales and earnings for
financial year 2014/15 and decides to increase the investment
program in Chongqing from € 350 million to € 480 million
2011
Construction starts on new
plant in Chongqing, China
Capacity increase in
Shanghai by 30%
2013
AT&S enters the IC substrate
market in cooperation with a
leading manufacturer of
semiconductors
2016
AT&S starts serial production of
IC substrates at the plant in
Chongqing
Investor and Analyst Presentation 40
A sustainability benchmark in the industry
“Highest resource
efficiency“
“Highest standards at all
locations worldwide“
“Highest
transparency“
* Basis for CO2 output: 2015/16
Sustainability reporting since 2012/13
Gold recognition from the Responsible
Business Alliance
Conflict minerals reporting
Public CDP reporting on climate change
(C score) and water (B score)
Resource
consumption
stable/declining
Revenue growth Environment: ISO 14001
Safety: OHSAS 18001
Energy: ISO 50001
Quality: ISO 9001, ISO/TS 16949
AS/EN 9100, DS/EN 13485
Investor and Analyst Presentation 41
AT&S – First choice for advanced applications
IR contact
Gerda Königstorfer
Tel: +43 3842 200 5925
Mobile: +43 676 8955 5925
Fax: +43 3842 200 15909
g.koenigstorfer@ats.net
Johannes Mattner
Tel: +43 3842 200 5450
Mobile: +43 676 8955 6093
j.mattner@ats.net
Fabriksgasse 13,
8700 Leoben/Austria
www.ats.net
Visit: www.ats.net; @AT&S IR_PR; AtundS
Investor and Analyst Presentation 42
Disclaimer
This presentation is provided by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, having its headquarter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), and the
contents are proprietary to AT&S and for information only.
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, and no
reliance may be placed for any purpose whatsoever on the information contained in this presentation, which has not been independently verified. You are expressly cautioned not
to place undue reliance on this information.
This presentation may contain forward-looking statements which were made on the basis of the information available at the time of preparation and on management‘s expectations
and assumptions. However, such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments, results, performance
or events may vary significantly from the statements contained explicitly or implicitly herein.
Neither AT&S, nor any affiliated company, or any of their directors, officers, employees, advisors or agents accept any responsibility or liability (for negligence or otherwise) for any
loss whatsoever out of the use of or otherwise in connection with this presentation. AT&S undertakes no obligation to update or revise any forward-looking statements, whether as
a result of changed assumptions or expectations, new information or future events.
This presentation does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither this presentation
nor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation does not constitute any financial analysis or financial research and
may not be construed to be or form part of a prospectus. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or
resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would
require any registration or licensing within such jurisdiction.

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AT&S Investor and Analyst Presentation August 2018

  • 1. AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net AT&S First choice for advanced applications Investor and Analyst Presentation August 2018
  • 2. Investor and Analyst Presentation 1 Table of Contents Company Overview Strategy & Market Financials Outlook Annex
  • 3. Investor and Analyst Presentation 2 AT&S – a world leading high-tech PCB & IC substrates company High-end interconnect solutions for Mobile Devices, Automotive, Industrial, Medical Applications and Semiconductor Industry Continuously outperforming market growth € 991.8m revenue in FY 2017/18 Among top 10 PCB producers worldwide* # 3 in high-end technology worldwide* 9,981 Employees** Cost-competitive production footprint with 6 plants in Europe and Asia * For CY 2017 Source: N.T. Information Ltd (July 2018); Prismark ** For AT&S FY 2017/18
  • 4. Investor and Analyst Presentation 3 Our competitive advantages Leading provider of high-end technologies and applications • Leading position in miniaturisation and modularisation – modules market with stronger growth than PCB market • Technology advantage at mSAP due to timely extension of the IC substrates technology Successful industrialisation of leading-edge technologies combined with highest quality • Outstanding process know-how, productivity and efficiency Long-standing customer relationships with technology and market leaders Solid balance sheet with strengthened equity ratio of 46.5% in 2017/18 • Sustainable dividend policy Market outperformance and high profitability • Above industry average EBITDA margin 20 – 25% • Strong cash flow generation and therefore improved internal financing capabilities
  • 5. Investor and Analyst Presentation 4 Market Segments & Product Applications served by AT&S Computer, Communication, Consumer Smartphones, Tablets, Wearables, Ultrabooks, Cameras … Industrial Machine-2-Machine Communication, Robots, Industrial Computer, X2X Communication … Automotive Advanced Driver Assistance Systems, Emergency-Call, X2X Communication … Medical Patient Monitoring, Hearing Aids, Pacemaker, Neurostimulation, Drug Delivery, Prosthesis … IC substrates High Performance Computer, Microserver … Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
  • 6. Investor and Analyst Presentation 5 AT&S – Key Facts 590 667 763 815 992 200 221 127 168 168 131 131* 30 5254 90 77 77* 7* 3* 18 2013/14 2014/15 2015/16 2016/17 2017/18 Q1 2017/18 Q1 2018/19 Revenue EBITDA EBIT +11% Good track record1 Balanced portfolio/Global customer base2 7% Split revenue: Business Unit, Q1 2018/19 Split revenue: Customer Region, Q1 2018/19 based on sold to party +13% +14% +7% € in millions * Based on ramp-up effects for new plants in China Revenue growth 62% 38% Mobile Devices & Substrates Automotive, Industrial, Medical 61%23% 8% 8% Americas Germany/Austria Asia Other European countries +22%
  • 7. Investor and Analyst Presentation 6 Global footprint ensures proximity to supply chain & cost efficiency 977* 401* 1,144* 2,335* 4,365* 301* Shanghai China Ansan Korea Chongqing China Leoben, Headquarters Austria Fehring Austria Nanjangud India AT&S plant & sales office AT&S sales office AT&S Headquarters *Staff, Average, FTE, Q1 2018/19; 74 employees in other locations
  • 8. Investor and Analyst Presentation 7 Table of Contents Company Overview Strategy & Market Financials Outlook Annex
  • 9. Investor and Analyst Presentation 8 Future positioning as leading high-end interconnect solutions provider Core business New technologies and interconnect solutions Extended technology toolbox Additional customers Additional applications Broader positioning in the value chain + MorethanAT&S Overview of the transformation from a high-end PCB manufacturer to a high-end interconnect solutions provider:
  • 10. Investor and Analyst Presentation 9 From vision to strategy Targets/Key Performance Indicators Strategy Expansion of technology leadership • Leading provider of new interconnect solutions • Innovation revenue rate: > 20% Focus on high-end technologies and applications Focus on innovative solutions “More than AT&S” Medium-term profitable growth • Medium-term revenue target of € 1.5 billion • Medium-term EBITDA margin target of 20-25% Focus on fast-growing and profitable applications Highest service level and customer orientation Operational excellence Focus on cash flow generation Creation of shareholder value • Long-term ROCE ≥ 12% Sustainable business development with focus on ROCE Transparent dividend payout Vision: “First choice for advanced application” Sustainable Management • Fulfill and further develop standards in the area of quality, environment, health & safety… Human resource development Uphold business ethics
  • 11. Investor and Analyst Presentation 10 Strategic focus on high-end technologies AT&S Revenue structure in FY 2017/18 – based on technologies High-end HDI PCBs and IC substrates ~ 30% Single-sided (SS), double-sided (DS), multilayer- (ML), flex and rigid-flex (RF) PCBs ~ 70% High-end technology share > 75% HDI and any-layer PCBs, Embedding, IC Substrates Complementary technology share: < 25% SS, DS, ML, Flex, RF Structure of general PCB market – based on technologies Source: Prismark PCB Report 2Q17/ August 2017; AT&S Controlling
  • 12. Investor and Analyst Presentation 11 PCB & IC substrates market – Overview 15.3 15.8 18.6 19.9 8.3 9.0 5.5 5.9 3.9 4.22.5 2.65.6 5.9 2018 2020 IC Substrates Military/Aerospace Industrial/Medical Automotive Consumer Communication Computing 3.0% 3.9% 4.3% 1.8% 3.5% 2.3% 59.7 63.4 Forecast for the total PCB & IC substrates market until 2020: CAAGR of 3.1% 2.8% USD in billions 11 Source: Prismark, February 2018; Yole, March 2018 IC substrates − Rising demand for server processors with positive impact on IC substrates − “System-in-Package” or “All-in-One” modules for the integration of functions are the growth drivers for the future Industrial / Medical − Driven by robotics, automation and Industry 4.0 activities − High complexity in applications such as diagnostic and imaging devices, mobile devices on and in the human body Automotive − Main drivers are autonomous driving and e-mobility Consumer − Market trend is the interconnection of devices (“Connected Devices”, “Internet of Things” – “IoT”) Communication − 5G offers potential opportunities for further growth Computer − Slight increase forecast for servers in 2018, while tablet sales stagnate
  • 13. Investor and Analyst Presentation 12 Market trends Miniaturization and modularization still the main trends 12 Source: Yole , AT&S AG (2018)
  • 14. Investor and Analyst Presentation 13 Driving the future: Internet of Things (IoT) Applications Healthcare & Fitness Smart Watches and Glasses Wearable Electronics Smart Mobility Autonomous Driving Car2X Communication Smart City Smart Lighting Smart Buildings Home/Building Automatization Smart Home Devices Smart Production/Industry 4.0 Automatization/Robotics Machine-to-Machine Communication Smart Healthcare Connected Patient Monitoring Systems Connected Consumer Healthcare Devices Smart Energy Smart Metering Building Blocks of IoT Modules: Sensing, Connectivity, Energy Storage/Harvesting, Power Management 30-50 billion of „Things“ will be connected in 2020 Wearable electronic devices offer revenue opportunities of USD 61.7bn beyond the smartphone market in 2020 Source: Gartner Inc. 2016
  • 15. Investor and Analyst Presentation 14 Driving the industry: miniaturization & modularization ? 2003/04 2013 2017 202X TYPE Mobile Phone Smartphone Smartphone All in One PCB 125x55mm 85x20mm 80x20mm 25x25mm? FORM FACTOR 1 0.25 0.23 0.06? LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm TECHNOLOGY 1-n-1 Any-layer mSAP – Any-layer FO/SAP/mSAP
  • 16. Investor and Analyst Presentation 15 R&D as the key for technological leadership 6.6% R&D Quota (in % in relation to revenue) 258 Patents International R&D Partners As of FY 2017/18 (ended 31/03/2018) * Revenue generated with products with new, innovative technologies introduced to the market within the last three years 40.4% Innovation Revenue Rate * R&D Headquarters Austria Industrialization at the respective production site
  • 17. Investor and Analyst Presentation 16 Table of Contents Company Overview Strategy & Market Financials Outlook Annex
  • 18. Investor and Analyst Presentation 17 Highlights for the first quarter 2018/19 Successful start into the new fiscal year despite seasonality trends in the sector Additional revenue and earnings contribution mainly from Chongqing Revenue increase by 11.2% to € 222.1 million − IC substrates contributed to revenue growth − Good demand especially in Medical & Healthcare EBITDA margin climbs to 23.4 % (PY: 14.9%) − One-time valuation effects, among others due to FX impact since April 2018 Issue of a promissory note loan of € 292.5 million successfully completed − Increase in reserves for planned growth with a revenue target of € 1.5 billion − Securing favourable conditions for the long term at the current average interest rate of 1.18% − Optimisation of the maturity profile and refinancing of promissory note loan issued in 2014 Investment in recent years is paying off 17
  • 19. Investor and Analyst Presentation 18 Revenue and EBITDA development € in millions 18 Split revenue Q1 2018/19: Business Unit Split revenue Q1 2018/19: Customer Region 18 62% 38% Mobile Devices & Substrates Automotive, Industrial, Medical 61% 23% 8% 8% Americas Germany/Austria Asia Other European countries Revenue: YoY: +11.2%: additional revenue from Chongqing and higher demand for IC substrates EBITDA: YoY: +75.4%: higher contribution mainly from Chongqing and one-time valuation effects 199.6 286.0 280.2 225.9 222.1 29.7 74.7 85.9 35.7 52.0 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19 Revenue EBITDA and margin 26.1% 30.7%14.9% 15.8% 23.4%
  • 20. Investor and Analyst Presentation 19 Net CAPEX & Staff Net CAPEX € in millions 69.7 25.3 29.6 17.1 17.1 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19 * incl. contractors, FTE, average for the period Staff* Efficiency measures and seasonality reduced headcount 9,901 10,159 10,057 9,807 9,598 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19
  • 21. Investor and Analyst Presentation 20 Business Development – Mobile Devices & Substrates 113.6 197.6 199.6 137.2 137.8 20.9 59.4 75.0 23.7 39.3 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19 Revenue EBITDA Additional contribution to revenue mainly from Chongqing Operational improvements and better product mix in IC substrates EBITDA improvements as a result of higher contribution margin from Chongqing € in millions (unless otherwise indicated) Q1 2017/18 Q1 2018/19 Change in % Revenue 137.3 160.2 16.6% Revenue with external customers 113.6 137.8 21.3% EBITDA 20.9 39.3 88.0% EBITDA margin 15.2% 24.5% € in millions; * Revenue with external customers Revenue* and EBITDA
  • 22. Investor and Analyst Presentation 21 85.0 87.3 79.3 87.7 83.3 9.7 13.2 9.3 14.5 12.0 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19 Revenue EBITDA Business Development – Automotive, Industrial, Medical Good demand in the segment Automotive, Industrial and Medical Continued growth path especially in Medical Autonomous driving and e-mobility offer further potential for revenue growth EBITDA margin impacted by good mix and positive FX effects € in millions (unless otherwise indicated) Q1 2017/18 Q1 2018/19 Change in % Revenue 89.6 89.6 0.0% Revenue with external customers 85.0 83.3 -2.0% EBITDA 9.7 12.0 23.2% EBITDA margin 10.9% 13.4% Revenue* and EBITDA € in millions; * Revenue with external customers
  • 23. Investor and Analyst Presentation 22 € in thousands (unless otherwise stated) Q1 2017/18 Q1 2018/19 Change YoY STATEMENT OF PROFIT OR LOSS Revenue 199,636 222,081 11.2% produced in Asia 81% 83% 2pp produced in Europe 19% 17% (2pp) EBITDA 29,651 51.996 75.4% EBITDA margin 14.9% 23.4% 8.5pp EBIT (3,408) 18,323 - EBIT margin (1.7%) 8.3% - Finance costs – net (2,217) 1,703 - Income taxes (5,604) (6,477) 15.6% Profit for the period (11,229) 13,549 - Earnings per share (€ 0.29) € 0.30 - Financials Q1 2018/19 Additional revenue contribution mainly from Chongqing Negatively impacted by USD development Higher contributions to earnings from Chongqing Other result positively effected by FX valuation of accounts receivables Lower gross interest expenses, higher interest income, positive FX effects The slight increase can be attributed to the reduced tax scheme in Shanghai
  • 24. Investor and Analyst Presentation 23 Financials Q1 2018/19 Profit for the period (+€ 13.5m) First-time adoption of IFRS 9 and 15 (+€ 10.4m) Positive FX effects (+€ 8.7m) Seasonal increase and effects of first-time adoption of IFRS 15 € in thousands (unless otherwise stated) 31 Mar 2018 30 Jun 2018 Change STATEMENT OF FINANCIAL POSITION Non-current assets 944,267 927,983 (1.7%) Current assets 586,172 623,958 6.4% Equity 711,391 743,604 4.5% Non-current liabilities 515,276 520,427 1.0% Current liabilities 303,772 287,910 (5.2%) Total assets 1,530,439 1,551,941 1.4% Net debt 209,237 214,076 2.3% Net gearing 29.4% 28.8% (0.6pp) Net working capital 72,437 127,320 75.8% Net working capital per revenue 7.3% 14.3% 7.0pp Equity ratio 46.5% 47.9% 1.4pp Stable, despite seasonal increase of NWC, due to positive result
  • 25. Investor and Analyst Presentation 24 Financials Q1 2018/19 Clearly higher EBIT and lower change in WC Lower capex for equipment (previous year impacted by Chongqing) € in thousands Q1 2017/18 Q1 2018/19 Change YoY STATEMENT OF CASH FLOWS Operating result (EBIT) (3.408) 18.323 - Paid/received interests (3.379) (1.752) 48,2% Paid taxes (8.771) (7.160) 18,4% Non cash bearing of profit or loss 33.079 29.016 (12,3%) Cash flow from operating activities before changes in working capital 17.520 38.427 >100% Changes in working capital (66.813) (33.842) 49,3% Cash flow from operating activities (49.293) 4.585 - Cash flow from investing activities (66.966) (21.614) 67,7% Cash flow from financing activities (25.082) 1.230 - Change in cash and cash equivalents (141.341) (15.799) 88,8% Operating free cash flow1) (118.981) (12.497) 89,5% Free cash flow2) (116.259) (17.029) 85,4% 1) Cash flow from operating activities minus Net CAPEX 2) Cash flow from operating activities minus cash flow from investing activities Nearly balanced due to improved operating cash flow and lower capex needs
  • 26. Investor and Analyst Presentation 25 Table of Contents Company Overview Strategy & Market Financials Outlook Annex
  • 27. Investor and Analyst Presentation 26 Outlook for 2018/19 Revenue growth by up to 6% and EBITDA margin at 20 to 23% At this stage, upper end of guidance expected, due to positive Q1 development Maintenance investments and minor technology upgrades of roughly € 70 to 100 million Investments in capacity and technology expansion by another € 100 million depending on market development Technology expansion and capacity increase in the area of autonomous driving at the sites in Nanjangud (India) and Fehring (Austria) on track Technology development projects in CHQ I as preparation of second phase in implementation Further expansion in CHQ II depending on market development – next evaluation in mid FY 2018/2019
  • 28. Investor and Analyst Presentation 27 Medium-term strategy – More than AT&S AT&S outperformed a flat market in the past 6 years − by scaling high-end any-layer technology − by leveraging HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market Positioning as a leading high-end interconnect provider 100.8 103.2 96.4 94.6 103.2 108.9 123.1 140.8 150.4 183.0 60 100 140 180 220 260 300 2012* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e PCB & substrates market AT&S revenue 276.8 120.53.0% p.a. 8.6% p.a. *Index (2012 = 100) 2012: PCB & substrates market: USD 55.7bn; AT&S revenue: € 542m Source: AT&S, Prismark (February 2018), Yole (March 2018) Path of value-added growth will be pursued consistently Focus on leading position in terms of technology, quality and results New revenue target of € 1.5 billion EBITDA margin of 20 to 25%
  • 29. Investor and Analyst Presentation 28 Table of Contents Company Overview Strategy & Market Financials Outlook Annex
  • 30. Investor and Analyst Presentation 29 AT&S – Stock Profile Listing: Vienna Stock Exchange, Prime Standard Indices: ATX, WBI Thomson Reuters (A): ATSV.VI Bloomberg (A): ATS:AV Results for the first half-year 2018/19 31 October 2018 Results for the first three quarters 2018/19 31 January 2019 Annual Results 2018/19 07 May 2019 Financial Calendar Shareholder structure # of shares outstanding 38.85m Average daily volume*: ~ 142,000 shares Performance 1 year*: +79% Dividend 2017/18: € 0.36 per share * 01/08/2017 – 31/07/2018
  • 31. Investor and Analyst Presentation 30 Highlights in the financial year 2017/18 Very successful year 2017/18 − Growth in all business segments above market average − High operating performance (utilization, yield, efficiency) Position as technology leader in a challenging industry strengthened − Ramp-up of the new mSAP lines in record time − Operational improvement in the area of IC substrates − Successful positioning in the high-frequency segment Balance sheet structure significantly strengthened through hybrid bond (€ 173.0 million) AT&S again listed on the Austrian lead index ATX Among the top performers of the Vienna Stock Exchange with share price gaining 113.8 % in FY 2017/18 Record levels for revenue, EBITDA and EBIT 30
  • 32. Investor and Analyst Presentation 31 Results for the financial year 2017/18 Revenue up 21.7% to € 991.8 million − High-end printed circuit boards for mobile devices, especially mSAP and IC substrates, contributed to revenue growth − Strong demand in the automotive, industrial, medical segments − Negative exchange rate effects amounting to €-46.8 million had an impact on revenue Generally high operating performance and product mix improve earnings − EBITDA margin: 22.8% (PY: 16.1%) − EBIT margin: 9.1% (PY: 0.8%) EPS improved from €-0.59 to €1.38 Capex of € 141.7 million financed from cash flow from operating activities Equity ratio increased to 46.5% due to issue of hybrid bond Debt repayment period (net debt/EBITDA) improved to 0.9 years Dividend of € 0.36 (PY: € 0.1) Record levels for revenue and EBITDA 31
  • 33. Investor and Analyst Presentation 32 Net CAPEX & Staff Net CAPEX FY 2017/18: CAPEX at a high level due to mSAP upgrade and Chongqing phase 1 € in millions 90.3 164.8 254.3 240.7 141.7 2013/14 2014/15 2015/16 2016/17 2017/18 * incl. contractors, FTE, average for the period Staff* Increase in number of employees by more than 2,900 7,027 7,638 8,759 9,526 9,981 2013/14 2014/15 2015/16 2016/17 2017/18
  • 34. Investor and Analyst Presentation 33 Key credit figures 299 372 405 523 593 540 82 261 274 260 212 331 217 111 131 263 381 209 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Gross debt Financial assets and cash Net debt 0.9 0.8 1.6 2.9 0.9 2013/14 2014/15 2015/16 2016/17 2017/18 Target: < 3x Net debt/EBITDA Net debt decrease based on lower net capex (Chongqing phase I finished) & Hybrid bond issue € in millions Gross debt, financial assets and cash, net debt Multiple
  • 35. Investor and Analyst Presentation 34 Net Working Capital Management € in millions; % of revenue Net Working Capital development 103 92 95 88 24 72 19.0% 15.6% 14.3% 11.6% 3.0% 7.3% 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Net working capital Net working capital per revenue
  • 36. Investor and Analyst Presentation 35 AT&S Product Portfolio – I ECP®: Embedded Component Packaging IC substrates Substrate-like printed circuit boards mSAP Embedded Component Packaging allows to embed active/passive components (e.g. wafer level dies) within the layers of a PCB – contributes to miniaturization. IC substrates serve as interconnection platform with higher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs . Substrate-like PCBs (mSAP technology) are the next evolution of high-end HDI PCBs with higher density: Line/Space < 30 micron. Production site Leoben, Shanghai Chongqing Chongqing, Shanghai Applications Devices such as smartphones, tablets, digital cameras and hearing aids High-end processors for Computer, Communication, Automotive, Industrial Mobile applications like smartphones
  • 37. Investor and Analyst Presentation 36 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 miniaturization, 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 miniaturization. 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- 3.2mm. 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 AT&S Product Portfolio – II
  • 38. Investor and Analyst Presentation 37 Flexible printed circuit boards Semi-flexible printed circuit boards Rigid-flex printed circuit boards Flexible printed circuit boards on aluminum 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 aluminum 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 AT&S Product Portfolio – III 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 sites: Leoben, Shanghai 2.5D® Technology Platform Combines mechanical and electronic miniaturization, 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
  • 39. Investor and Analyst Presentation 38 Management 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: − Degree in Production Engineering from Rosenheim University of Applied Sciences Monika Stoisser- Göhring, CFO CFO since 2017 Previous positions include: − Since 2011 with AT&S in senior positions in Finance and Human Resources − Various positions at international accounting and tax consulting companies Education: − Training as Tax Consultant − Degree in Business Administration from Karl-Franzens University Graz 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 1)He was already with the founding company of AT&S
  • 40. Investor and Analyst Presentation 39 Milestones in the Group’s history 1987 Founding of the Group, emerging from several companies owned by the Austrian State Owned Industries 1994 Privatization and acquisition by Messrs Androsch, Dörflinger, Zoidl 1999 Initial public offering on Frankfurt Stock Exchange („Neuer Markt“). Acquisition of Indal Electronics Ltd., largest Indian printed circuit board plant (Nanjangud) – today, AT&S India Private Limited 2002 Start of production at new Shanghai facility – one of the leading HDI production sites in the world 2010 Start of production at plant II in India 2009 New production direction: Austrian plants produce for high-value niches in the automotive and industrial segment; Shanghai focuses on the high-end mobile devices segment 2008 AT&S change to Vienna Stock Exchange 2006 Acquisition of Korean flexible printed circuit board manufacturer, Tofic Co. Ltd. – today, AT&S Korea Co., Ltd. 2015 AT&S again achieves record high sales and earnings for financial year 2014/15 and decides to increase the investment program in Chongqing from € 350 million to € 480 million 2011 Construction starts on new plant in Chongqing, China Capacity increase in Shanghai by 30% 2013 AT&S enters the IC substrate market in cooperation with a leading manufacturer of semiconductors 2016 AT&S starts serial production of IC substrates at the plant in Chongqing
  • 41. Investor and Analyst Presentation 40 A sustainability benchmark in the industry “Highest resource efficiency“ “Highest standards at all locations worldwide“ “Highest transparency“ * Basis for CO2 output: 2015/16 Sustainability reporting since 2012/13 Gold recognition from the Responsible Business Alliance Conflict minerals reporting Public CDP reporting on climate change (C score) and water (B score) Resource consumption stable/declining Revenue growth Environment: ISO 14001 Safety: OHSAS 18001 Energy: ISO 50001 Quality: ISO 9001, ISO/TS 16949 AS/EN 9100, DS/EN 13485
  • 42. Investor and Analyst Presentation 41 AT&S – First choice for advanced applications IR contact Gerda Königstorfer Tel: +43 3842 200 5925 Mobile: +43 676 8955 5925 Fax: +43 3842 200 15909 g.koenigstorfer@ats.net Johannes Mattner Tel: +43 3842 200 5450 Mobile: +43 676 8955 6093 j.mattner@ats.net Fabriksgasse 13, 8700 Leoben/Austria www.ats.net Visit: www.ats.net; @AT&S IR_PR; AtundS
  • 43. Investor and Analyst Presentation 42 Disclaimer This presentation is provided by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, having its headquarter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), and the contents are proprietary to AT&S and for information only. 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, and no reliance may be placed for any purpose whatsoever on the information contained in this presentation, which has not been independently verified. You are expressly cautioned not to place undue reliance on this information. This presentation may contain forward-looking statements which were made on the basis of the information available at the time of preparation and on management‘s expectations and assumptions. However, such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments, results, performance or events may vary significantly from the statements contained explicitly or implicitly herein. Neither AT&S, nor any affiliated company, or any of their directors, officers, employees, advisors or agents accept any responsibility or liability (for negligence or otherwise) for any loss whatsoever out of the use of or otherwise in connection with this presentation. AT&S undertakes no obligation to update or revise any forward-looking statements, whether as a result of changed assumptions or expectations, new information or future events. This presentation does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation does not constitute any financial analysis or financial research and may not be construed to be or form part of a prospectus. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.