AT&S First choice for advanced applications - Company Presentation February 2020 www.ats.net
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AT&S
First choice for advanced applications
Company Presentation
February 2020
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.net
Company Overview
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.net
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
Company Presentation 2
A world leading high-tech PCB & IC substrates company
Outperforming
High-end interconnect solutions
for market growth
Mobile Devices, Automotive, Industrial,
Medical Applications and Semiconductor
over the last
decade
#1
Industry high-end PCB producer
worldwide *
Among the top € 1bn
PCB producers revenue in
worldwide FY 2018/19 Efficient global production
footprint with
6
~ 10,000 plants in Europe and Asia
Employees**
* For CY 2018
Source: Prismark
** For AT&S FY 2018/19
Company Presentation 3
Global footprint ensures proximity
to supply chain & cost efficiency
AT&S plant & sales office
AT&S sales office
AT&S Headquarters
974* 404* 1,241* 2,369* 4,461* 289*
Leoben, Headquarters Fehring Nanjangud Chongqing Shanghai Ansan
Austria Austria India China China Korea
*Staff, Average, FTE, FY 2018/19; 73 employees in other locations
Company Presentation 4
5
Market Segments & Product Applications served by AT&S
Computer,
Communications, IC substrates Automotive Industrial Medical
Consumer Appliances
Smartphones, Tablets, High Performance Advanced Driver Machine-2-Machine Patient
Wearables, Ultrabooks, Computer, Microserver Assistance Systems, Communication, Monitoring, Hearing Aids,
Cameras Emergency-Call, X2X Robots, Industrial Pacemaker,
Communication Computer, Neurostimulation, Drug
X2X Communication Delivery, Prosthesis
Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
Company Presentation 5
AT&S – Key Facts
1 Strong growth track record 2 Balanced portfolio/Global customer base
Revenue split by segment: Q1-3 2019/20
1,028
992
815
31%
763 790
+4% 753 Mobile Devices & Substrates
667 +22%
+7%
69% Automotive, Industrial,
+14%
(4.7%) Medical
250 Revenue split by customer: Q1-3 2019/20
226 221 (based on customer’s headquarters)
168 168 156
131* 90 117 122
90 77* 48
7*
7%
2014/15 2015/16 2016/17 2017/18 2018/19 Q1-3 Q1-3 8%
2018/19 2019/20 Americas
Revenue EBITDA EBIT Revenue growth 16%
7% Germany/Austria
69% Asia
€ in millions Other European countries
6
*Based on ramp-up effects for new plants in China
Company Presentation 6
Strategic focus on high-end technologies
AT&S Revenue structure in FY 2018/19 – based on technologies
High-end technology share > 75%
HDI and any-layer PCBs,
Embedding, IC substrates
High-end
HDI PCBs and
IC substrates
~ 30%
Complementary technology
share: < 25%
SS, DS, ML,
Single-sided (SS), double-sided (DS), multilayer- (ML),
Flex, RF
flex and rigid-flex (RF) PCBs
~ 70%
Structure of general PCB market – based on technologies
Source: Prismark, AT&S
Company Presentation 7
More than AT&S
Broadening the service range and opening up of new business opportunities
Leading
provider of
interconnect
Technology solutions
Innovation power
Module integration
Clear focus on dedicated applications
services
Build-up of additional
capabilities
Substrates for HPC
modules
Diversification of
PCBs/substrates application and
for modules customer portfolio
mSAP / SLP High growth
potential
IC substrates Technology leader
Printed circuit boards
One of the leading
Leading producer of high- producers
end PCB
Company Presentation 8
Leading provider of high-end PCBs and IC substrates
Well positioned for the future
Unique market position
Broad product portfolio to serve all growth markets
Long-standing customer relationships with technology and market leaders
Technology innovator due to continuous R&D efforts
Quality benchmark with outstanding process know-how, productivity and efficiency
Growth oriented strategy
Megatrend-driven markets with attractive growth potential
Address growth opportunities with incremental investments
Sustainable profitability
AT&S has constantly outperformed the PCB and substrates market over the last years
EBITDA margin of 20 – 25% above industry average
Strong cash flow generation and therefore improved internal financing capabilities
Solid balance sheet and attractive dividend policy
Investor and Analyst Presentation 9 910
Market players in the high-end segment
Market position HDI Technology (2018)
HDI
Rank Supplier Country/Region mSAP IC Substrates
(revenue in USD millions)
1 AT&S AUT 838
2 Unimicron TWN 799
3 Compeq TWN 779
4 TTM USA 681
5 Meiko JPN 472
6 Tripod TWN 443
7 Zhen Ding TWN 349
8 DAP KOR 276
9 CMK JPN 259
10 SEMCO KOR 245
Source: Prismark
Company Presentation 10Driving the Industry - Miniaturization & Modularization
2003/04 2013 2019 202X
?
TYPE Mobile Phone Smartphone Smartphone All in One
PCB 125x55mm 85x20mm 60x29mm 25x25mm?
FORM FACTOR 1 0.25 0.23 0.06?
LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm
TECHN. 1-n-1 Any-layer mSAP FO/SAP/mSAP
(Sandwich structure)
Company Presentation 11R&D as the key for technological leadership
7.4%
R&D Quota
(equivalent to € 75.7 million)
279
Patents
International International
R&D Partners R&D Partners
R&D 35.3%
Headquarters Innovation Revenue Rate *
Austria
Industrialization at the respective
production site
As of FY 2018/19
* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
Company Presentation 12Financials
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.netHighlights in Q1-3 2019/20 Market drivers remain in place Current global market environment still challenging Global trade frictions have eased, but are still creating some uncertainties in the market Weakness in automotive market is mainly created by uncertainties about the future of the powertrain General weak economic environment weighs on European industrial investment behaviour Macroeconomic environment impacts revenue and earnings Positive trend at IC substrates nearly compensates for lower volume and unfavourable product mix in Mobile Devices Weaker market environment in the Industrial and Automotive segment causes temporary higher price pressure Automotive segment with stable performance despite difficult market situation Reduced volume in the Industrial segment Medical & Healthcare with robust trend Company Presentation 14 14
Financials in Q1-3 2019/20 AT&S held up well in a challenging environment Revenue at € 753.2 million (PY: € 790.1 million) Positively impacted by FX effects EBITDA at € 156.4 million (PY: € 220.5 million) Ongoing preparations for future applications demand higher R&D expenses (e.g. run-up costs for modularization and miniaturization) EBITDA margin with 20.8% (PY: 27.9%) still within target margin range of 20 – 25% EBIT at € 47.7 million (PY: € 121.5 million) Deviation from EBITDA development explained by higher depreciation Operating free cash flow at € 31.2 million (PY: € 90.0 million) Higher capex due to IC substrates investment Company Presentation 15 15
Market Update &
Outlook
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.netPCB & IC substrates market – Overview
Forecast for the total PCB & IC substrates market
until 2024: CAGR of 5.9%
Data center expansions, networking and AI processors trigger
additional demand for high-value IC substrates
Despite a temporary slowdown, automotive business is driven by
autonomous driving, V2X communication and electrification of
vehicles
Consumer: Wireless connectivity of smart devices enabling IoT drives
the need for high-end PCBs and substrates for module applications
Despite a flat development in 2019 smartphone unit sales, high-end
PCB demand for mainboards and modules will grow due to additional
functionalities
Short term market decline in 2019 is driven by macro-economic
conditions. Mid-term the growth will resume driven by application
trends.
Source: Prismark, January 2020; Yole (for IC Substrates), May 2019
Company Presentation 17 17Module integration services market
Total market growth is forecast at ~12% p.a. Overview
between 2019 and 2024
Major driver is the general modularization trend to reduce time to market,
size and cost for electronic products
AI and 5G requirements further drive module integration
Market revenue includes services for PCB/substrate, module assembly and
test
Strategic applications
Power
Power modules include both low voltage power management for
consumer devices as well as power inverters for data centers, industrial
machinery and electrified vehicles
RF/Wireless
5G communication modules for smartphones, consumer devices,
automotive, and machine-to-machine communication provide growth
opportunities by integration of RF functions
Sensor and camera
Sensor and camera modules provide strong growth opportunities
Source: A.T. Kearney (8/2018), AT&S (9/2019)
Company Presentation 18 18Growth opportunities in all segments
Future trends still intact
Communication Consumer / Computer Automotive Industrial / Medical
Increased digital New applications Autonomous driving Automation
networking (IoT) (smartwatch, speakers, RADAR, LiDAR, camera Machine-to-machine
Additional functionality robots, VR, …) 5G communication (5G)
Edge & cloud computing Artificial Intelligence
5G Artificial Intelligence
Networking Electrification of the drive
Artificial Intelligence Mobile therapy and
Increasing electronics share
Big data / data server per vehicle diagnostic devices
Company Presentation 19 19Supply chain in the electronics industry
New business opportunities through entry into the module market
Module Design Chip Chip Assembly PCB Substrate Product/ Product
Manufacturing & Test Manufacturing Manufacturing Module Ownership
(Front-end) (Back-end) Assembly
Design
03 Module Integration Service Provider
houses
02
OEMs
Module Board Manufacturer (SLP)
Fab-less
01 01
OSATs ODM/EMS/
Wafer Foundries OEMs
IC Players OSATs
PCB Substrate
Company Presentation 20 20Outlook for financial year 2019/20 adjusted AT&S production sites in China affected by coronavirus All factories in China are again producing with reduced capacities Following aspects could influence the development in the coming months: Deterioration of the current general conditions Provision of production materials and personnel Processes in supply chain and demand situation Revenue to amount to € 960 million (previously: at the prior-year level of € 1,028.0 million) EBITDA margin of 18 to 20 % expected (previously: between 20% and 25%) Company Presentation 21
Annex
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.netAT&S – Stock Profile
Listing: Vienna Stock Exchange, # of shares outstanding 38.85m
Prime Standard Dividend yield: 1.6 %
Indices: ATX, ATX Prime, Vönix, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Shareholder structure
Company Presentation 23AT&S Product Portfolio – I
ECP®: IC substrates Substrate-like printed circuit boards
Embedded Component Packaging mSAP
Embedded Component Packaging allows to embed IC substrates serve as interconnection platform with Substrate-like PCBs (mSAP technology) are the next
active/passive components (e.g. wafer level dies) within higher density (Line/Space < 15 micron) between evolution of high-end HDI PCBs with higher density:
the layers of a PCB – contributes to miniaturization. semiconductors (Chips) & PCBs . Line/Space < 30 micron.
Production site
Leoben, Shanghai Chongqing Chongqing, Shanghai
Applications
Devices such as smartphones, tablets, digital High-end processors for Mobile applications like smartphones
cameras and hearing aids Computer, Communication, Automotive, Industrial
Company Presentation 24AT&S Product Portfolio – II
HDI HDI microvia printed Multilayer printed circuit Double-sided printed IMS printed circuit boards
any-layer printed circuit circuit boards – high boards circuit boards – insulated metal
boards density interconnect substrate
Further technological HDI: high density interconnect, Found in almost every area of Used in all areas of electronics. IMS: insulated metal substrate.
enhancement to HDI microvia: meaning industrial electronics. AT&S AT&S focuses on double-sided Primary function: heat
All electrical connections in HDI laser-drilled connections produces printed circuit boards printed circuit boards with dissipation for use mainly with
any-layer boards consist of laser- (microvias). HDI is first step with 4 to 28 layers, in quantities thicknesses in the range of 0.1- LEDs and power components.
drilled microvias. Advantage: towards miniaturization. from individual prototypes to 3.2mm.
further miniaturization, and AT&S can produce 4-layer small batches and mass
higher performance and laser PCBs up to 6-n-6 production.
reliability. AT&S produces HDI HDI multi layer PCBs.
any-layer in 4 to 12 layers.
Production site
Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring
Applications
Smartphones, Tablets, Mobile phones and nearly all Used in all electronic Primarily industrial and Lighting industry
Notebooks electronic applications including applications including touch automotive applications
automotive (navigation, panels, and in products ranging
infotainment and driver from aircraft to motorcycles,
assistance systems) from storage power plants to
solar arrays
Company Presentation 25AT&S Product Portfolio – III
Flexible printed Semi-flexible printed Rigid-flex printed Flexible printed circuit
circuit boards circuit boards circuit boards boards on aluminum
Used to replace wiring and More limited bend radius than Combine the Used when installing LEDs
connectors, allowing for flexible printed circuit advantages of flexible in car headlights, for
connections and geometries that boards. The use of a and rigid printed circuit example, where the
are not possible with rigid standard thin laminate boards, yielding benefits printed circuit board is
printed circuit boards. makes them a cost-effective for signal transmission, bonded to an aluminum
alternative. size and stability. heat sink to which the
LEDs are then attached.
Production site
Ansan, Fehring Fehring Ansan Ansan
Applications
Nearly all areas of Automotive applications Industrial electronics, Lighting, automotive,
electronics, including such as production building lighting
measuring devices and machines and industrial
medical applications robots
Company Presentation 26Management
Andreas Gerstenmayer, CEO Monika Stoisser-Göhring, CFO Heinz Moitzi, COO
Joined AT&S as CEO in 2010 CFO since 2017 COO since 2005;
Previous positions include: Previous positions include: With AT&S since 19811)
18 years of work experience at Siemens, Since 2011 with AT&S in senior Previous positions include:
including Managing Director with positions in Finance and Human Various management positions
Siemens Transportation Systems GmbH Resources within AT&S
Austria and CEO of the Drive Technology Various positions at international Measurement engineer with Leoben
business unit in Graz from 2003 to 2008 accounting and tax consulting University of Mining and Metallurgy
Partner at FOCUSON Business companies Education:
Consulting GmbH after leaving Siemens Education: Degree from Higher Technical
Education: Certified Tax Consultant College of Electrical Engineering
Degree in Production Engineering from Degree in Business Administration
Rosenheim University of Applied from Karl-Franzens University Graz
Sciences
1)He was already with the founding company of AT&S
Company Presentation 27Milestones in the Group’s history
1987 1994 1999 2002
Founding of the Group, emerging Privatization and Initial public offering on Frankfurt Stock Exchange Start of production at new Shanghai
from several companies owned by acquisition by Messrs („Neuer Markt“). Acquisition of Indal Electronics facility – one of the leading HDI
the Austrian State Owned Androsch, Dörflinger, Zoidl Ltd., largest Indian printed circuit board plant production sites in the world
Industries (Nanjangud) – today, AT&S India Private Limited
2010 2009 2008
Start of production New production direction: Austrian AT&S change
at plant II in India plants produce for high-value niches to Vienna Stock
in the automotive and industrial
segment; Shanghai focuses on the
Exchange 2006
high-end mobile devices segment Acquisition of Korean
flexible printed circuit
board manufacturer,
2011 2013 Tofic Co. Ltd. – today,
Construction starts on new AT&S enters the IC substrate AT&S Korea Co., Ltd.
plant in Chongqing, China market in cooperation with a
Capacity increase in leading manufacturer of
Shanghai by 30% semiconductors
2018 2019
Start of the second AT&S is the global
2015 2016 2017 expansion phase at number one for high-
AT&S again achieves record high sales and AT&S starts serial production Successful introduction and plant 1 in Chongqing end printed circuit
earnings for financial year 2014/15 and of IC substrates at the plant optimisation of the mSAP technology boards
decides to increase the investment program in in Chongqing in Shanghai and Chongqing
Chongqing from € 350 million to € 480 million
Company Presentation 28Making sustainability central to our vision and mission
Responsible Responsible Responsible
Management Employer Resource Management
Business Ethics Innovation Safety Knowledge Part-time Climate Change Energy
Health Diversity Waste CO2
Anti-Corruption Human Rights Compensation LCA
RBA Employee Development Emissions Water Shortage
Communication Digitization
Working conditions,
Health & Safety
Business Ethics
Environment
100% 52 3.391 12 ≡ 9,3
AT&S employees sign the Code of Conduct Nationalities Women (34,5%) GWh kt CO2
As of 31.03.2019 Savings in the Financial Year 2018/19
Company Presentation 29Disclaimer 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. Company Presentation 30
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