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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
February 2018
Investor and Analyst Presentation 1
Table of Contents
Company Overview
Strategy & Market
Financials
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
€ 814.9m
revenue in FY
2016/17
# 1
manufacturer in
Europe
# 3
in high-end technology
worldwide
10,039
employees
Cost-competitive production
footprint with
6
plants in Europe and Asia
Investor and Analyst Presentation 3
What guides us
VISION
FIRST CHOICE FOR ADVANCED APPLICATIONS
MISSION
We set the highest quality standards in our industry
We industrialize leading-edge technology
We care about people
We reduce our ecological footprint
We create value
Investor and Analyst Presentation 4
Market Segments & Product Applications served by AT&S
4
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,HearingAids,
Pacemaker,
Neurostimulation, Drug
Delivery, Prosthesis
…
IC substrates
High Performance
Computer, Microserver
…
Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
Investor and Analyst Presentation 5
Our competitive advantages
Strategic focus on high-end technologies and applications
Outstandingprocess know-how and process efficiency
First high-end IC substrates manufacturer in China
Scale innovation and technology leverage between customer segments
Highest quality
Investor and Analyst Presentation 6
AT&S – Key Facts
542
590
667
763
815
615
766
102
127
168 168
131*
102*
190
31 54
90 77*
7* 12* 89
2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3
2016/17
Q1-3
2017/18
Revenue EBITDA EBIT
Good track record1 Balanced portfolio/Global customer base2
7%
Split revenue: Business Unit, Q1-3 2017/18
Split revenue: Customer Region, Q1-3 2017/18
based on sold to party
+9% +13% +14% +7%
* Based on ramp-up effects for new plants in China
Revenue growth
€ in millions
67%
33%
Mobile Devices & Substrates
Automotive, Industrial, Medical
63%
21%
10%
6% Americas
Germany/Austria
Asia
Other European countries
+24.5%
Investor and Analyst Presentation 7
Global footprint ensures proximity
to supply chain & cost efficiency
1,012* 394* 1,136* 2,388* 4,725* 309*
Plant Shanghai
China
Plant Ansan
Korea
Plant Chongqing
China
Plant Leoben, Headquarters
Austria
Plant Fehring
Austria
Plant Nanjangud
India
AT&S plant & sales office
AT&S sales office
AT&S Headquarters
*Staff, Average, FTE, Q1-3 2017/18; 73 employees in other locations
Investor and Analyst Presentation 8
Table of Contents
Company Overview
Strategy & Market
Financials
Annex
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
Long-term profitable growth
• Medium-term EBITDA margin target of > 20%
• Short-term revenue target of € 1 billion
 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 of 12%
 Sustainable business development with focus on
ROCE
 Transparent dividend payout
Vision:
“First choice
for advanced
application”
The best employees and
management team members
• Talent programs
• Training and continuing development
• Leadership Excellence program
Sustainable business leadership
Benchmark in the industry through
reduction of:
• 5% in CO2 emissions p.a.
• 3% in freshwater consumption p.a.
Capital Excellence
• Equity ratio: > 40%
• Financing costs of < 2% (in a
corresponding interest environment)
• Payback period of debt of < 3 years
Investor and Analyst Presentation 10
Strategic focus on high-end technologies
AT&S Revenue structure in H1 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
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 market – Overview
14.6 14.5
15.3 17.3
7.6
8.7
5.2
6.13.7
4.52.4
2.848.8
53.9
2017 2021
Computing Communication
Consumer Automotive
Industrial/Medical Military/Aerospace
5.0%
4.0%
3.5%
(0.2%)
3.0%
Forecast for the total PCB market until 2021:
CAAGR of 2.5%
3.8%
USD in
billions
11
AT&S outperformed a flat market in the past 6 years and is set to
continue to do so also in the future.
100.5 101.3 103.7 96.9 95.1
105.4
114.8
129.8
148.4
158.5
60
80
100
120
140
160
2011* 2012 2013 2014 2015 2016
Index (2011 = 100)*
PCB & substrates market AT&S revenue
* Basis 2011:
PCB & substrates market: USD 55.4bn
AT&S revenue: € 514m
AT&S outperformed the market by scaling high-end any-layer technology and by leveraging
HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market.
Source: Prismark, February 2017, Yole April 2017
Investor and Analyst Presentation 12
Market Player/Position HDI Technology
12
Market position HDI Technology
Revenue (USD in millions)
Rank Country Supplier HDI Non HDI PCBs IC substrates Total revenue
1 TWN Unimicron 802 490 830 2,122
2 TWN Compeq 679 716 - 1,395
3 AUT AT&S 596 248 -* 844
4 USA TTM 501 1,987 - 2,488
5 JPN Ibiden 368 - 929 1,297
6 TWN Tripod 316 1,052 - 1,368
7 TWN Unitech 311 123 - 434
8 KOR SEMCO 296 204 844 1,344
9 JPN Meiko 251 474 - 725
10 KOR DAP 226 - - 226
Source: Prismark 2016; NTI 2016; AT&S Strategy
* N/A due to single customer
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
7.7%
R&D Quota
(in % in relation to revenue)
227
Patents
International
R&D Partners
As of FY 2016/17 (ended 31/03/2017)
* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
21.8%
Innovation RevenueRate *
R&D
Headquarters
Austria
Industrialization at the respective
production site
Investor and Analyst Presentation 16
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 17
Table of Contents
Company Overview
Strategy & Market
Financials
Annex
18Investor and Analyst Presentation
Strong top-line growth and profitability, improved Cash Flow
Revenue
YoY growth
Operating Cash Flow
YoY development
EBITDA and EBITDA margin
 High demand, additional revenue
contribution from both plants in Chongqing.
Negative FX impact of € 23.9m.
 General high operational performance,
successful implementation & optimization
of mSAP technology.
 Solid operating cash flow reflects strong
earnings in first nine months.
€ in millions€ in millions € in millions; %
541.7
589.9
667.0
762.9
814.9
615.1
765.9
102.4
127.2
167.6 167.5
130.9
102.1
190.3
18.9% 21.6% 25.1% 22.0% 16.1% 16.6% 24.8%
71.7
104.8
143.9 136.9 136.4
16.8
121.0
19Investor and Analyst Presentation
Business Development – Mobile Devices & Substrates
88.7
120.9
104.5
115.9
112.2
123.4 101.0 97.7 126.6
148.6
113.7
113.6
197.6 199.6
Q2
2014/15
Q3
2014/15
Q4
2014/15
Q1
2015/16
Q2
2015/16
Q3
2015/16
Q4
2015/16
Q1
2016/17
Q2
2016/17
Q3
2016/17
Q4
2016/17
Q1
2017/18
Q2
2017/18
Q3
2017/18
 Revenue increase mainly on the back of
the two plants in Chongqing
 EBITDA improvements as a result of general
efficiency measures and higher contribution
margin
 Price pressure on IC substrates remains
€ in millions (unless
otherwise indicated)
Q1-3 2016/17 Q1-3 2017/18 Change in %
Revenue 438.6 580.0 32.2%
Revenue with external
customers
372.9 510.8 37.0%
EBITDA 56.1 155.3 177.0%
EBITDA margin 12.8% 26.8% -
€ in millions; * Revenue with external customers
Revenue per quarter*
Trendline expressing
seasonality
20Investor and Analyst Presentation
Business Development – Automotive, Industrial, Medical
71.7
65.9
72.6
77.8 79.5
72.7
76.6 80.4 79.9 78.9
84.9 85.0 87.3
79.3
Q2
2014/15
Q3
2014/15
Q4
2014/15
Q1
2015/16
Q2
2015/16
Q3
2015/16
Q4
2015/16
Q1
2016/17
Q2
2016/17
Q3
2016/17
Q4
2016/17
Q1
2017/18
Q2
2017/18
Q3
2017/18
 Continued growth path in all sub-segments,
particularly in Industrial and Medical
 EBITDA below last year’s level which included a
reversal of provision of € 3.3m for previously
unused space – EBITDA margin impacted by
negative FX effects, higher raw material prices
€ in millions (unless
otherwise indicated)
Q1-3 2016/17 Q1-3 2017/18 Change in %
Revenue 262.0 270.8 3.4%
Revenue with external
customers
239.2 251.6 5.2%
EBITDA 37.0 32.3 (12.6%)
EBITDA margin 14.1% 11.9% -
Revenue per quarter*
€ in millions; * Revenue with external customers
Investor and Analyst Presentation 21
Net CAPEX & Staff
Net CAPEX
Q1-Q3: € 124.6m for maintenance incl. technology
upgrades and Chongqing phase 1
STAFF*
The increased headcount is primarily based on
Chongqing.
€ in millions
40.5
90.3
164.8
254.3
240.7
124.6
2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18
7,321 7,027
7,638
8,759
9,526
10,039
2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18
* incl. contractors, FTE, average for the period
Investor and Analyst Presentation 22
Financials Q1-3 2017/18
High demand, additional revenue
contribution from both plants in Chongqing.
Negative FX impact of € 23.9m.
General high operational performance,
successful implementation & optimization of
mSAP technology.
Positive FX effects of € 2.0m (Q1-Q3 2016/17:
FX expense 8.2m.
Reduced tax scheme in Shanghai still pending.
€ in thousands (unless otherwise stated)
Q1-3 2016/17 Q1-3 2017/18
Change
YoY
STATEMENT OF PROFIT OR LOSS
Revenue 615,063 765,900 24.5%
produced in Asia 82% 85% 3pp
produced in Europe 18% 15% (3pp)
EBITDA 102,108 190,276 86.3%
EBITDA margin 16.6% 24.8% 8.2pp
EBIT 11,840 88,801 >100%
EBIT margin 1.9% 11.6% 9.7pp
Finance costs – net (18,551) (11,283) 39.2%
Income taxes (13,038) (29,742) (>100%)
Profit for the period (19,749) 47,776 >100%
Earnings per share (€ 0.51) € 1.21 >100%
Investor and Analyst Presentation 23
Financials Q1-3 2017/18
Increase as a result of hybrid bond issue
and net profit
Negative FX effects (mainly RMB-EUR and
USD-EUR) of € 57.9m. Positive: Hybrid bond
issue (€ 173.0m)
Ususal seasonal increase in BU MS
€ in thousands (unless otherwise stated)
31 Mar 2017 31 Dec 2017 Change
STATEMENT OF FINANCIAL
POSITION
Non-current assets 1,029,363 953,813 (7.3%)
Current assets 407,331 579,581 42.3%
Equity 540,094 699,129 29.4%
Non-current liabilities 569,849 556,116 (2.4%)
Current liabilities 326,751 278,149 (14.9%)
Total assets 1,436,694 1,533,394 6.7%
Net debt 380,549 217,028 (43.0%)
Net gearing 70.5% 31.0% (39.5pp)
Net working capital 24,374 73,412 >100%
Net working capital per revenue 3.0% 7.2% 4.2pp
Equity ratio 37.6% 45.6% 8.0pp
Hybrid bond issue
Investor and Analyst Presentation 24
Key credit figures
299
372
405
523
593
545
82
261 274
260
212
328
217
111
131
263
381
217
2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18
Gross debt Financial assets and cash Net debt
2.1
0.9 0.8
1.6
2.9
2012/13 2013/14 2014/15 2015/16 2016/17
 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 25
€ in millions* < 1 Year 1-5 Years > 5 Years Total
Promissory note loans 2014 1.6 48.6 5.0 55.2
Promissory note loans 2015 0.7 217.6 - 218.3
Promissory note loans 2016 0.3 49.9 100.0 150.2
Subsidized loans 24.6 45.6 - 70.2
Bank Borrowings and others 16.4 34.5 - 50.9
Total 31/12/2017 43.6 396.2 105.0 544.8
Total 31/03/2017 73.0 348.3 171.5 592.8
Overview Debt Portfolio Duration
Maturity
* Including accrued interest and placement costs
83.7%
16.3%
Currency mix of debt
portfolio
EUR USD
 Average debt portfolio duration: 3.3
years (2016/17: 3.7 years)
 Average financing costs: 2.5%
(31/03/2017: 2.6%)
 € 191m of credit lines not utilized
(31/03/2017: € 201m)
 Currency mix of EUR and USD to support
natural hedging strategy
Investor and Analyst Presentation 26
Financials Q1-3 2017/18
Hybrid bond issue
Main drivers: increase of inventory by € 30.5m
and increase of receivables by € 34.2m
€ in thousands
Q1-3 2016/17 Q1-3 2017/18
Change
YoY
STATEMENT OF CASH FLOWS
Operating result (EBIT) 11,840 88,801 >100%
Paid/received interests (11,628) (10,446) 10.2%
Paid taxes (10,706) (14,697) (37.3%)
Non cash bearing of profit or loss 85,004 106,647 25.5%
Cash flow from operating activities
before changes in working capital
74,509 170,305 >100%
Changes in working capital (57,705) (49,293) 14.6%
Cash flow from operating activities 16,804 121,012 >100%
Cash flow from investing activities (108,650) (246,612) (>100%)
Cash flow from financing activities 78,440 135,419 72.6%
Change in cash and cash equivalents (13,406) 9,819 >100%
Operating free cash flow1)
(175,473) (3,631) 97.9%
Free cash flow2)
(91,846) (125,600) (36.8%)
1)
Cash flow from operating activities minus Net CAPEX
2)
Cash flow from operating activities minus cash flow from investing activities
Investor and Analyst Presentation 27
Net Working Capital Management
€ in millions; % of revenue
Net Working Capital development
103
92 95
88
24
73
19.0%
15.6%
14.3%
11.6%
3.0%
7.3%
2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18
Net working capital Net working capital per revenue
Investor and Analyst Presentation 28
AT&S – Stock Profile
Listing: Vienna Stock Exchange,
Prime Standard
Indices: ATX Prime, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Annual results 2017/18 08 May 2018
Record date Annual General Meeting 25 June 2018
24th Annual General Meeting 05 July 2018
Ex-dividend day 24 July 2018
Record date dividend 25 July 2018
Dividend payment day 26 July 2018
Financial Calendar Shareholder structure
# of shares outstanding 38.85m
Average daily volume*: ~ 98,263 shares
Performance 1 year*: +171,4%
Dividend 2016/17: € 0.10 per share
Dividend yield: 1.0%
* 01/02/2017 – 31/01/2018
Investor and Analyst Presentation 29
Outlook FY 2017/18
 For Q4:
> usual seasonality
> continuous price pressure – particularly for IC substrates
 FY 2017/18 – provided a stable market environment and exchange rate development:
> revenue growth of 20-25%
> EBITDA margin: based on strong Q1-Q3 earnings - slightly above given forecast
of 19-22%
> additional depreciation of € ~15m
Investor and Analyst Presentation 30
Table of Contents
Company Overview
Strategy & Market
Financials
Annex
Investor and Analyst Presentation 31
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 32
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 33
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 34
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 35
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 36
CSR as a key to sustainable business success
CSR gains importance in long term success
 Improving efficiency
 Motivated and qualified staff
The importance of sustainability is rising within:
 Authorities (basis for securing operation licenses)
 Customers (relevant for placing orders)
51.0 50.7 49.0 50.7
55.7
2012/13 2013/14 2014/15 2015/16 2016/17
Carbon footprint* AT&S aims to reduce
the Group‘s annual
fresh water
consumption per m2
PCB by 3%.
AT&S aims to minimize its
environmental footprint by
reducing the CO2 emissions
per m2 PCB attributable to
production processes by 5% a
year.
* in kg CO2 per sqm weighted PCB
** in liters per sqm weighted PCB
834.7
783.9
734.0 718.6 739.5
2012/13 2013/14 2014/15 2015/16 2016/17
Freshwater consumption**
Investor and Analyst Presentation 37
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
Visit: www.ats.net; @AT&S IR_PR; AtundS
Investor and Analyst Presentation 38
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 February 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 February 2018
  • 2. Investor and Analyst Presentation 1 Table of Contents Company Overview Strategy & Market Financials 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 € 814.9m revenue in FY 2016/17 # 1 manufacturer in Europe # 3 in high-end technology worldwide 10,039 employees Cost-competitive production footprint with 6 plants in Europe and Asia
  • 4. Investor and Analyst Presentation 3 What guides us VISION FIRST CHOICE FOR ADVANCED APPLICATIONS MISSION We set the highest quality standards in our industry We industrialize leading-edge technology We care about people We reduce our ecological footprint We create value
  • 5. Investor and Analyst Presentation 4 Market Segments & Product Applications served by AT&S 4 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,HearingAids, 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 Our competitive advantages Strategic focus on high-end technologies and applications Outstandingprocess know-how and process efficiency First high-end IC substrates manufacturer in China Scale innovation and technology leverage between customer segments Highest quality
  • 7. Investor and Analyst Presentation 6 AT&S – Key Facts 542 590 667 763 815 615 766 102 127 168 168 131* 102* 190 31 54 90 77* 7* 12* 89 2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2016/17 Q1-3 2017/18 Revenue EBITDA EBIT Good track record1 Balanced portfolio/Global customer base2 7% Split revenue: Business Unit, Q1-3 2017/18 Split revenue: Customer Region, Q1-3 2017/18 based on sold to party +9% +13% +14% +7% * Based on ramp-up effects for new plants in China Revenue growth € in millions 67% 33% Mobile Devices & Substrates Automotive, Industrial, Medical 63% 21% 10% 6% Americas Germany/Austria Asia Other European countries +24.5%
  • 8. Investor and Analyst Presentation 7 Global footprint ensures proximity to supply chain & cost efficiency 1,012* 394* 1,136* 2,388* 4,725* 309* Plant Shanghai China Plant Ansan Korea Plant Chongqing China Plant Leoben, Headquarters Austria Plant Fehring Austria Plant Nanjangud India AT&S plant & sales office AT&S sales office AT&S Headquarters *Staff, Average, FTE, Q1-3 2017/18; 73 employees in other locations
  • 9. Investor and Analyst Presentation 8 Table of Contents Company Overview Strategy & Market Financials Annex
  • 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 Long-term profitable growth • Medium-term EBITDA margin target of > 20% • Short-term revenue target of € 1 billion  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 of 12%  Sustainable business development with focus on ROCE  Transparent dividend payout Vision: “First choice for advanced application” The best employees and management team members • Talent programs • Training and continuing development • Leadership Excellence program Sustainable business leadership Benchmark in the industry through reduction of: • 5% in CO2 emissions p.a. • 3% in freshwater consumption p.a. Capital Excellence • Equity ratio: > 40% • Financing costs of < 2% (in a corresponding interest environment) • Payback period of debt of < 3 years
  • 11. Investor and Analyst Presentation 10 Strategic focus on high-end technologies AT&S Revenue structure in H1 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 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 market – Overview 14.6 14.5 15.3 17.3 7.6 8.7 5.2 6.13.7 4.52.4 2.848.8 53.9 2017 2021 Computing Communication Consumer Automotive Industrial/Medical Military/Aerospace 5.0% 4.0% 3.5% (0.2%) 3.0% Forecast for the total PCB market until 2021: CAAGR of 2.5% 3.8% USD in billions 11 AT&S outperformed a flat market in the past 6 years and is set to continue to do so also in the future. 100.5 101.3 103.7 96.9 95.1 105.4 114.8 129.8 148.4 158.5 60 80 100 120 140 160 2011* 2012 2013 2014 2015 2016 Index (2011 = 100)* PCB & substrates market AT&S revenue * Basis 2011: PCB & substrates market: USD 55.4bn AT&S revenue: € 514m AT&S outperformed the market by scaling high-end any-layer technology and by leveraging HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market. Source: Prismark, February 2017, Yole April 2017
  • 13. Investor and Analyst Presentation 12 Market Player/Position HDI Technology 12 Market position HDI Technology Revenue (USD in millions) Rank Country Supplier HDI Non HDI PCBs IC substrates Total revenue 1 TWN Unimicron 802 490 830 2,122 2 TWN Compeq 679 716 - 1,395 3 AUT AT&S 596 248 -* 844 4 USA TTM 501 1,987 - 2,488 5 JPN Ibiden 368 - 929 1,297 6 TWN Tripod 316 1,052 - 1,368 7 TWN Unitech 311 123 - 434 8 KOR SEMCO 296 204 844 1,344 9 JPN Meiko 251 474 - 725 10 KOR DAP 226 - - 226 Source: Prismark 2016; NTI 2016; AT&S Strategy * N/A due to single customer
  • 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 7.7% R&D Quota (in % in relation to revenue) 227 Patents International R&D Partners As of FY 2016/17 (ended 31/03/2017) * Revenue generated with products with new, innovative technologies introduced to the market within the last three years 21.8% Innovation RevenueRate * R&D Headquarters Austria Industrialization at the respective production site
  • 17. Investor and Analyst Presentation 16 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:
  • 18. Investor and Analyst Presentation 17 Table of Contents Company Overview Strategy & Market Financials Annex
  • 19. 18Investor and Analyst Presentation Strong top-line growth and profitability, improved Cash Flow Revenue YoY growth Operating Cash Flow YoY development EBITDA and EBITDA margin  High demand, additional revenue contribution from both plants in Chongqing. Negative FX impact of € 23.9m.  General high operational performance, successful implementation & optimization of mSAP technology.  Solid operating cash flow reflects strong earnings in first nine months. € in millions€ in millions € in millions; % 541.7 589.9 667.0 762.9 814.9 615.1 765.9 102.4 127.2 167.6 167.5 130.9 102.1 190.3 18.9% 21.6% 25.1% 22.0% 16.1% 16.6% 24.8% 71.7 104.8 143.9 136.9 136.4 16.8 121.0
  • 20. 19Investor and Analyst Presentation Business Development – Mobile Devices & Substrates 88.7 120.9 104.5 115.9 112.2 123.4 101.0 97.7 126.6 148.6 113.7 113.6 197.6 199.6 Q2 2014/15 Q3 2014/15 Q4 2014/15 Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18  Revenue increase mainly on the back of the two plants in Chongqing  EBITDA improvements as a result of general efficiency measures and higher contribution margin  Price pressure on IC substrates remains € in millions (unless otherwise indicated) Q1-3 2016/17 Q1-3 2017/18 Change in % Revenue 438.6 580.0 32.2% Revenue with external customers 372.9 510.8 37.0% EBITDA 56.1 155.3 177.0% EBITDA margin 12.8% 26.8% - € in millions; * Revenue with external customers Revenue per quarter* Trendline expressing seasonality
  • 21. 20Investor and Analyst Presentation Business Development – Automotive, Industrial, Medical 71.7 65.9 72.6 77.8 79.5 72.7 76.6 80.4 79.9 78.9 84.9 85.0 87.3 79.3 Q2 2014/15 Q3 2014/15 Q4 2014/15 Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18  Continued growth path in all sub-segments, particularly in Industrial and Medical  EBITDA below last year’s level which included a reversal of provision of € 3.3m for previously unused space – EBITDA margin impacted by negative FX effects, higher raw material prices € in millions (unless otherwise indicated) Q1-3 2016/17 Q1-3 2017/18 Change in % Revenue 262.0 270.8 3.4% Revenue with external customers 239.2 251.6 5.2% EBITDA 37.0 32.3 (12.6%) EBITDA margin 14.1% 11.9% - Revenue per quarter* € in millions; * Revenue with external customers
  • 22. Investor and Analyst Presentation 21 Net CAPEX & Staff Net CAPEX Q1-Q3: € 124.6m for maintenance incl. technology upgrades and Chongqing phase 1 STAFF* The increased headcount is primarily based on Chongqing. € in millions 40.5 90.3 164.8 254.3 240.7 124.6 2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18 7,321 7,027 7,638 8,759 9,526 10,039 2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18 * incl. contractors, FTE, average for the period
  • 23. Investor and Analyst Presentation 22 Financials Q1-3 2017/18 High demand, additional revenue contribution from both plants in Chongqing. Negative FX impact of € 23.9m. General high operational performance, successful implementation & optimization of mSAP technology. Positive FX effects of € 2.0m (Q1-Q3 2016/17: FX expense 8.2m. Reduced tax scheme in Shanghai still pending. € in thousands (unless otherwise stated) Q1-3 2016/17 Q1-3 2017/18 Change YoY STATEMENT OF PROFIT OR LOSS Revenue 615,063 765,900 24.5% produced in Asia 82% 85% 3pp produced in Europe 18% 15% (3pp) EBITDA 102,108 190,276 86.3% EBITDA margin 16.6% 24.8% 8.2pp EBIT 11,840 88,801 >100% EBIT margin 1.9% 11.6% 9.7pp Finance costs – net (18,551) (11,283) 39.2% Income taxes (13,038) (29,742) (>100%) Profit for the period (19,749) 47,776 >100% Earnings per share (€ 0.51) € 1.21 >100%
  • 24. Investor and Analyst Presentation 23 Financials Q1-3 2017/18 Increase as a result of hybrid bond issue and net profit Negative FX effects (mainly RMB-EUR and USD-EUR) of € 57.9m. Positive: Hybrid bond issue (€ 173.0m) Ususal seasonal increase in BU MS € in thousands (unless otherwise stated) 31 Mar 2017 31 Dec 2017 Change STATEMENT OF FINANCIAL POSITION Non-current assets 1,029,363 953,813 (7.3%) Current assets 407,331 579,581 42.3% Equity 540,094 699,129 29.4% Non-current liabilities 569,849 556,116 (2.4%) Current liabilities 326,751 278,149 (14.9%) Total assets 1,436,694 1,533,394 6.7% Net debt 380,549 217,028 (43.0%) Net gearing 70.5% 31.0% (39.5pp) Net working capital 24,374 73,412 >100% Net working capital per revenue 3.0% 7.2% 4.2pp Equity ratio 37.6% 45.6% 8.0pp Hybrid bond issue
  • 25. Investor and Analyst Presentation 24 Key credit figures 299 372 405 523 593 545 82 261 274 260 212 328 217 111 131 263 381 217 2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18 Gross debt Financial assets and cash Net debt 2.1 0.9 0.8 1.6 2.9 2012/13 2013/14 2014/15 2015/16 2016/17  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
  • 26. Investor and Analyst Presentation 25 € in millions* < 1 Year 1-5 Years > 5 Years Total Promissory note loans 2014 1.6 48.6 5.0 55.2 Promissory note loans 2015 0.7 217.6 - 218.3 Promissory note loans 2016 0.3 49.9 100.0 150.2 Subsidized loans 24.6 45.6 - 70.2 Bank Borrowings and others 16.4 34.5 - 50.9 Total 31/12/2017 43.6 396.2 105.0 544.8 Total 31/03/2017 73.0 348.3 171.5 592.8 Overview Debt Portfolio Duration Maturity * Including accrued interest and placement costs 83.7% 16.3% Currency mix of debt portfolio EUR USD  Average debt portfolio duration: 3.3 years (2016/17: 3.7 years)  Average financing costs: 2.5% (31/03/2017: 2.6%)  € 191m of credit lines not utilized (31/03/2017: € 201m)  Currency mix of EUR and USD to support natural hedging strategy
  • 27. Investor and Analyst Presentation 26 Financials Q1-3 2017/18 Hybrid bond issue Main drivers: increase of inventory by € 30.5m and increase of receivables by € 34.2m € in thousands Q1-3 2016/17 Q1-3 2017/18 Change YoY STATEMENT OF CASH FLOWS Operating result (EBIT) 11,840 88,801 >100% Paid/received interests (11,628) (10,446) 10.2% Paid taxes (10,706) (14,697) (37.3%) Non cash bearing of profit or loss 85,004 106,647 25.5% Cash flow from operating activities before changes in working capital 74,509 170,305 >100% Changes in working capital (57,705) (49,293) 14.6% Cash flow from operating activities 16,804 121,012 >100% Cash flow from investing activities (108,650) (246,612) (>100%) Cash flow from financing activities 78,440 135,419 72.6% Change in cash and cash equivalents (13,406) 9,819 >100% Operating free cash flow1) (175,473) (3,631) 97.9% Free cash flow2) (91,846) (125,600) (36.8%) 1) Cash flow from operating activities minus Net CAPEX 2) Cash flow from operating activities minus cash flow from investing activities
  • 28. Investor and Analyst Presentation 27 Net Working Capital Management € in millions; % of revenue Net Working Capital development 103 92 95 88 24 73 19.0% 15.6% 14.3% 11.6% 3.0% 7.3% 2012/13 2013/14 2014/15 2015/16 2016/17 Q1-3 2017/18 Net working capital Net working capital per revenue
  • 29. Investor and Analyst Presentation 28 AT&S – Stock Profile Listing: Vienna Stock Exchange, Prime Standard Indices: ATX Prime, WBI Thomson Reuters (A): ATSV.VI Bloomberg (A): ATS:AV Annual results 2017/18 08 May 2018 Record date Annual General Meeting 25 June 2018 24th Annual General Meeting 05 July 2018 Ex-dividend day 24 July 2018 Record date dividend 25 July 2018 Dividend payment day 26 July 2018 Financial Calendar Shareholder structure # of shares outstanding 38.85m Average daily volume*: ~ 98,263 shares Performance 1 year*: +171,4% Dividend 2016/17: € 0.10 per share Dividend yield: 1.0% * 01/02/2017 – 31/01/2018
  • 30. Investor and Analyst Presentation 29 Outlook FY 2017/18  For Q4: > usual seasonality > continuous price pressure – particularly for IC substrates  FY 2017/18 – provided a stable market environment and exchange rate development: > revenue growth of 20-25% > EBITDA margin: based on strong Q1-Q3 earnings - slightly above given forecast of 19-22% > additional depreciation of € ~15m
  • 31. Investor and Analyst Presentation 30 Table of Contents Company Overview Strategy & Market Financials Annex
  • 32. Investor and Analyst Presentation 31 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
  • 33. Investor and Analyst Presentation 32 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
  • 34. Investor and Analyst Presentation 33 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
  • 35. Investor and Analyst Presentation 34 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
  • 36. Investor and Analyst Presentation 35 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
  • 37. Investor and Analyst Presentation 36 CSR as a key to sustainable business success CSR gains importance in long term success  Improving efficiency  Motivated and qualified staff The importance of sustainability is rising within:  Authorities (basis for securing operation licenses)  Customers (relevant for placing orders) 51.0 50.7 49.0 50.7 55.7 2012/13 2013/14 2014/15 2015/16 2016/17 Carbon footprint* AT&S aims to reduce the Group‘s annual fresh water consumption per m2 PCB by 3%. AT&S aims to minimize its environmental footprint by reducing the CO2 emissions per m2 PCB attributable to production processes by 5% a year. * in kg CO2 per sqm weighted PCB ** in liters per sqm weighted PCB 834.7 783.9 734.0 718.6 739.5 2012/13 2013/14 2014/15 2015/16 2016/17 Freshwater consumption**
  • 38. Investor and Analyst Presentation 37 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 Visit: www.ats.net; @AT&S IR_PR; AtundS
  • 39. Investor and Analyst Presentation 38 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.