AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S

 
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
AT&S
First choice for advanced applications
               Investor and Analyst Presentation
                                     March 2018

            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 March 2018 - AT&S
Table of Contents

      Company Overview

      Strategy & Market

      Financials

      Annex

Investor and Analyst Presentation   1
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
AT&S – a world leading high-tech PCB & IC substrates company

  High-end interconnect solutions                  Continuously
                      for                       outperforming
   Mobile Devices, Automotive, Industrial,
   Medical Applications and Semiconductor       market growth                   #3
                   Industry                                            in high-end technology
                                                                              worldwide

                    #1                       € 814.9m
             manufacturer in                  revenue in FY
                                                 2016/17           Cost-competitive production
                Europe                                                    footprint with

                                                                               6
                                                       10,039       plants in Europe and Asia

                                                       employees

Investor and Analyst Presentation                                                                2
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
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                                            3
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
4
    Market Segments & Product Applications served by AT&S

         Computer,
       Communication,                      IC substrates           Automotive                        Industrial                 Medical
         Consumer
     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

    Investor and Analyst Presentation                                                                                                                4
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
Our competitive advantages

                                    Strategic focus on high-end technologies and applications

                                    Scale innovation and technology leverage between customer segments

                                    Outstanding process know-how and process efficiency

                                    Highest quality

                                    First high-end IC substrates manufacturer in China

Investor and Analyst Presentation                                                                        5
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
AT&S – Key Facts
1                 Good track record                                                                2           Balanced portfolio/Global customer base
                                                                                                       Split revenue: Business Unit, Q1-3 2017/18

                                                        815
€ in millions                             763                                         766                                            Mobile Devices & Substrates
                                                                                                        33%
                             667
                                                                       615
                590
542                                                                                                                67%               Automotive, Industrial, Medical
      +9%             +13%         +14%          +7%                         +24.5%

                                                                                        190            Split revenue: Customer Region, Q1-3 2017/18
                               168              168
    102
                  127                                         131*
                                                                             102*                      based on sold to party
                                     90           77*
          31            54
                                                                7*             12*            89

                                                                                                            6%                       Americas
 2012/13 2013/14 2014/15 2015/16 2016/17                                Q1-3    Q1-3
                                                                       2016/17 2017/18
                                                                                                         10%
                                                                                                                                     Germany/Austria
           Revenue                    EBITDA                    EBIT         Revenue growth            21%                      7%   Asia
                                                                                                                   63%
                                                                                                                                     Other European countries
* Based on ramp-up effects for new plants in China

 Investor and Analyst Presentation                                                                                                                                     6
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
Global footprint ensures proximity
   to supply chain & cost efficiency

   AT&S plant & sales office
   AT&S sales office
   AT&S Headquarters

                       1,012*                              394*                            1,136*                     2,388*                    4,725*                 309*

Plant Leoben, Headquarters        Plant Fehring                          Plant Nanjangud            Plant Chongqing            Plant Shanghai            Plant Ansan
Austria                           Austria                                India                      China                      China                     Korea
   *Staff, Average, FTE, Q1-3 2017/18; 73 employees in other locations

     Investor and Analyst Presentation                                                                                                                                        7
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
Table of Contents

      Company Overview

      Strategy & Market

      Financials

      Annex

Investor and Analyst Presentation   8
AT&S First choice for advanced applications - Investor and Analyst Presentation March 2018 - AT&S
From vision to strategy
                           Targets/Key Performance                               Strategy
                           Indicators
                           Expansion of technology leadership                     Focus on high-end technologies and applications
                           • Leading provider of new interconnect solutions       Focus on innovative solutions
Vision:                    • Innovation revenue rate: > 20%
“First choice
for advanced               Long-term profitable growth                              Focus on fast-growing and profitable applications
application”               • Medium-term EBITDA margin target of > 20%              Highest service level and customer orientation
                           • Short-term revenue target of € 1 billion               Operational excellence
                                                                                    Focus on cash flow generation
                           Creation of shareholder value                          Sustainable business development with focus on
                           • Long-term ROCE of 12%                                 ROCE
                                                                                  Transparent dividend payout

                           The best employees and                   Sustainable business leadership       Capital Excellence
                           management team members                  Benchmark in the industry through     • Equity ratio: > 40%
                           • Talent programs                        reduction of:                         • Financing costs of < 2% (in a
                           • Training and continuing development    • 5% in CO2 emissions p.a.              corresponding interest environment)
                           • Leadership Excellence program          • 3% in freshwater consumption p.a.   • Payback period of debt of < 3 years

 Investor and Analyst Presentation                                                                                                                9
Strategic focus on high-end technologies

                                                                  AT&S Revenue structure in H1 2017/18 – based on technologies

                                                                                   High-end technology share > 75%
                                                                                  HDI and any-layer PCBs, Embedding
                                              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 PCB Report 2Q17/ August 2017; AT&S Controlling

 Investor and Analyst Presentation                                                                                               10
PCB market – Overview
           Forecast for the total PCB market until 2021:   AT&S outperformed a flat market in the past 6 years and is set to
           CAAGR of 2.5%                                   continue to do so also in the future.
                                       53.9
              48.8                          2.8
                         3.8%               4.5
              2.4        5.0%
                                                                     Index (2011 = 100)*
                                                                                                                                             158.5
              3.7                           6.1                                                                                148.4
                                                            160                                                  129.8
              5.2        4.0%
                                                            140                                    114.8
                                                            120                         105.4
                         3.5%               8.7
               7.6                                          100
                                                             80                         100.5      101.3         103.7          96.9         95.1
                         3.0%                                60
              15.3                         17.3                         2011*           2012       2013          2014          2015          2016

                                                                                   PCB & substrates market               AT&S revenue

                         (0.2%)
              14.6                         14.5            AT&S outperformed the market by scaling high-end any-layer technology and by leveraging
USD in
                                                           HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market.
billions

              2017                        2021
             Computing                Communication
             Consumer                 Automotive
             Industrial/Medical       Military/Aerospace    * Basis 2011:
                                                            PCB & substrates market: USD 55.4bn
   Source: Prismark, February 2017, Yole April 2017         AT&S revenue: € 514m

     Investor and Analyst Presentation                                                                                            11                 11
12
     Market Player/Position HDI Technology

                                                        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                                                                                              12
Driving the future: Internet of Things (IoT) Applications
               Wearable Electronics      Healthcare & Fitness
                                         Smart Watches and Glasses

                    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                                                                            13
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                                                    14
R&D as the key for technological leadership

                        7.7%
                       R&D Quota
                   (in % in relation to revenue)
                                                                    227
                                                                    Patents

                                                                                                    International
                                                                                                    R&D Partners

                            R&D                                    21.8%
                        Headquarters
                                                               Innovation Revenue Rate *
                           Austria
                 Industrialization at the respective
                           production site

    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

Investor and Analyst Presentation                                                                                              15
Future positioning
as leading high-end interconnect solutions provider

                                                                                    More than AT&S
Overview of the transformation from a high-end
                                                       Extended technology
PCB manufacturer to a high-end interconnect            toolbox
solutions provider:

                                                       Additional customers

                                    New technologies
Core business              +        and interconnect
                                       solutions
                                                       Additional applications

                                                       Broader positioning in the
                                                       value chain

Investor and Analyst Presentation                                                                    16
Table of Contents

      Company Overview

      Strategy & Market

      Financials

      Annex

Investor and Analyst Presentation   17
Strong top-line growth and profitability, improved Cash Flow
                        Revenue                                         EBITDA and EBITDA margin                                        Operating Cash Flow
                        YoY growth                                                                                                          YoY development
                                                                18.9% 21.6% 25.1% 22.0% 16.1%         16.6% 24.8%
                                     814.9
                             762.9                   765.9                                                                               143.9 136.9
                                                                                                                                                     136.4
                     667.0
             589.9                           615.1                                                                                                                   121.0
    541.7                                                                                                                       104.8

                                                                                                              190.3     71.7
                                                                                167.6 167.5
                                                                        127.2                 130.9
                                                                102.4                                 102.1
                                                                                                                                                              16.8

 € in millions                                               € in millions; %                                           € in millions

  High demand, additional revenue                            General high operational performance,
                                                                                                                       Solid operating cash flow reflects strong
   contribution from both plants in Chongqing.                 successful implementation & optimization
                                                                                                                        earnings in first nine months.
   Negative FX impact of € 23.9m.                              of mSAP technology.

Investor and Analyst Presentation                                                                                                                                            18
Business Development – Mobile Devices & Substrates
 € in millions (unless                                                                                        Revenue increase mainly on the back of
                                         Q1-3 2016/17              Q1-3 2017/18      Change in %
 otherwise indicated)                                                                                          the two plants in Chongqing
 Revenue                                      438.6                   580.0            32.2%                  EBITDA improvements as a result of general
 Revenue with external
                                              372.9                   510.8            37.0%                   efficiency measures and higher contribution
 customers
                                                                                                               margin
 EBITDA                                            56.1               155.3           177.0%
                                                                                                              Price pressure on IC substrates remains
  EBITDA margin                                    12.8%               26.8%             -

                                                                                                                       197.6   199.6
  Revenue per quarter*
                                                                                             148.6                                     Trendline expressing
             120.9                115.9                    123.4                                     113.7                             seasonality
                        104.5                 112.2                 101.0     97.7   126.6                     113.6
   88.7

   Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2      Q3
 2014/15 2014/15 2014/15 2015/16 2015/16 2015/16 2015/16 2016/17 2016/17 2016/17 2016/17 2017/18 2017/18 2017/18
€ in millions; * Revenue with external customers

  Investor and Analyst Presentation                                                                                                                           19
Business Development – Automotive, Industrial, Medical
 € in millions (unless                                                                                    Continued growth path in all sub-segments,
                                           Q1-3 2016/17           Q1-3 2017/18      Change in %
 otherwise indicated)                                                                                      particularly in Industrial and Medical
 Revenue                                      262.0                  270.8             3.4%
                                                                                                          EBITDA below last year’s level which included a
 Revenue with external                                                                                     reversal of provision of € 3.3m for previously
                                              239.2                  251.6             5.2%
 customers
                                                                                                           unused space – EBITDA margin impacted by
 EBITDA                                            37.0               32.3            (12.6%)
                                                                                                           negative FX effects, higher raw material prices
   EBITDA margin                                   14.1%              11.9%                -

  Revenue per quarter*                                                                                84.9   85.0   87.3
                                              79.5                  76.6     80.4   79.9       78.9                        79.3
                                    77.8                   72.7
   71.7                  72.6

              65.9

   Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2      Q3
 2014/15 2014/15 2014/15 2015/16 2015/16 2015/16 2015/16 2016/17 2016/17 2016/17 2016/17 2017/18 2017/18 2017/18
€ in millions; * Revenue with external customers

  Investor and Analyst Presentation                                                                                                                          20
Net CAPEX & Staff

 Net CAPEX                                                               STAFF*
 Q1-Q3: € 124.6m for maintenance incl. technology                        The increased headcount is primarily based on
 upgrades and Chongqing phase 1                                          Chongqing.

                                       254.3                                                                                                      10,039
                                                 240.7                                                                                9,526
                                                                                                                             8,759
                                                                                                          7,638
                                                                          7,321           7,027
                             164.8

                                                             124.6
                   90.3

      40.5

    2012/13       2013/14   2014/15   2015/16   2016/17   Q1-3 2017/18   2012/13        2013/14         2014/15          2015/16     2016/17   Q1-3 2017/18

  € in millions                                                           * incl. contractors, FTE, average for the period

Investor and Analyst Presentation                                                                                                                             21
Financials Q1-3 2017/18
€ in thousands (unless otherwise stated)                                  Change
                                           Q1-3 2016/17    Q1-3 2017/18
                                                                            YoY
STATEMENT OF PROFIT OR LOSS

                                                                                      High demand, additional revenue
Revenue                                         615,063        765,900       24.5%    contribution from both plants in Chongqing.
                                                                                      Negative FX impact of € 23.9m.
 produced in Asia                                  82%             85%          3pp
 produced in Europe                                18%             15%        (3pp)
                                                                                       General high operational performance,
EBITDA                                          102,108        190,276       86.3%     successful implementation & optimization of
                                                                                       mSAP technology.
 EBITDA margin                                   16.6%           24.8%        8.2pp

EBIT                                             11,840          88,801      >100%
 EBIT margin                                       1.9%          11.6%        9.7pp

                                                                                      Positive FX effects of € 2.0m (Q1-Q3 2016/17:
Finance costs – net                            (18,551)        (11,283)      39.2%    FX expense 8.2m.

Income taxes                                   (13,038)        (29,742)    (>100%)    Reduced tax scheme in Shanghai still pending.

Profit for the period                          (19,749)          47,776      >100%

Earnings per share                              (€ 0.51)         € 1.21      >100%

Investor and Analyst Presentation                                                                                                     22
Financials Q1-3 2017/18
€ in thousands (unless otherwise stated)
                                           31 Mar 2017   31 Dec 2017   Change

STATEM ENT OF FINANCIAL
POSITION
Non-current assets                           1,029,363       953,813      (7.3%)

Current assets                                 407,331       579,581      42.3%
                                                                                   Negative FX effects (mainly RMB-EUR and
Equity                                         540,094       699,129      29.4%    USD-EUR) of € 57.9m. Positive: Hybrid bond
                                                                                   issue (€ 173.0m)
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%)   Hybrid bond issue

Net gearing                                      70.5%         31.0%    (39.5pp)

Net working capital                             24,374        73,412      >100%    Ususal seasonal increase in BU MS

Net working capital per revenue                   3.0%          7.2%       4.2pp
                                                                                   Increase as a result of hybrid bond issue
Equity ratio                                     37.6%         45.6%       8.0pp
                                                                                   and net profit

Investor and Analyst Presentation                                                                                               23
Key credit figures
         Gross debt, financial assets and cash, net debt                                                   Net debt/EBITDA

                                                       593
                                           523                       545
                                                                                                                                    2.9

                               405
                   372                                                                   2.1
                                                              381          328
    299                                                                                                                   1.6
                         261         274         263
           217
                                                 260                                               0.9
                                                             212           217                                  0.8
                         111
                                     131
           82
     2012/13       2013/14     2014/15     2015/16     2016/17      Q1-3 2017/18       2012/13   2013/14      2014/15   2015/16   2016/17
                 Gross debt      Financial assets and cash          Net debt
 € in millions                                                                     Multiple

      Net debt decrease based on lower net capex                                      Target: < 3x
       (Chongqing phase I finished) & Hybrid bond issue

Investor and Analyst Presentation                                                                                                           24
Overview Debt Portfolio Duration
                                                              Maturity                                         Currency mix of debt
  € in millions*                                   < 1 Year   1-5 Years          > 5 Years          Total           portfolio
  Promissory note loans 2014                         1.6          48.6              5.0              55.2

  Promissory note loans 2015                         0.7          217.6              -              218.3       16.3%

  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
                                                                                                                               83.7%
  Total 31/03/2017                                  73.0          348.3            171.5            592.8
* Including accrued interest and placement costs
                                                                                                                        EUR   USD
        Average debt portfolio duration: 3.3                        € 191m of credit lines not utilized
         years (2016/17: 3.7 years)                                   (31/03/2017: € 201m)
        Average financing costs: 2.5%                               Currency mix of EUR and USD to support
         (31/03/2017: 2.6%)                                           natural hedging strategy

     Investor and Analyst Presentation                                                                                                 25
Financials Q1-3 2017/18
€ in thousands                                                                                        Change
                                                                   Q1-3 2016/17        Q1-3 2017/18
                                                                                                        YoY
STATEM ENT OF C ASH FL OWS

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
                                                                              74,509       170,305       >100%
before changes in working capital
Changes in working capital                                                 (57,705)        (49,293)      14.6%
                                                                                                                  Main drivers: increase of inventory by € 30.5m
                                                                                                                  and increase of receivables by € 34.2m
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%    Hybrid bond issue
Change in cash and cash equivalents                                        (13,406)           9,819      >100%

Operating free cash flow1)                                               (175,473)          (3,631)      97.9%
Free cash flow           2)
                                                                           (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                                                                                                                             26
Net Working Capital Management
              19.0%                   Net Working Capital development

                               15.6%
                                                  14.3%

               103                                          11.6%
                                 92                    95
                                                               88
                                                                                                 7.3%

                                                                                                  73

                                                                                3.0%

                                                                                 24

             2012/13           2013/14           2014/15    2015/16            2016/17        Q1-3 2017/18

                                 Net working capital        Net working capital per revenue
 € in millions; % of revenue

Investor and Analyst Presentation                                                                            27
AT&S – Stock Profile
Listing:                             Vienna Stock Exchange,      # of shares outstanding     38.85m
                                     Prime Standard              Average daily volume*:      ~ 102,690 shares
Indices:                             ATX Prime, WBI              Performance 1 year*:        +124%
Thomson Reuters (A):                 ATSV.VI                     Dividend 2016/17:           € 0.10 per share
Bloomberg (A):                       ATS:AV                      Dividend yield:             1.0%
                                                                 * 01/03/2017 – 28/02/2018

          Financial Calendar                                  Shareholder structure

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

Investor and Analyst Presentation                                                                               28
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                                                    29
Table of Contents

      Company Overview

      Strategy & Market

      Financials

      Annex

Investor and Analyst Presentation   30
AT&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

Investor and Analyst Presentation                                                                                                                                       31
AT&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

Investor and Analyst Presentation                                                                                                                                                   32
AT&S Product Portfolio – III
      Flexible printed                 Semi-flexible printed             Rigid-flex printed       Flexible printed circuit            AT&S patented
       circuit boards                     circuit boards                   circuit boards          boards on aluminum                  technologies
                                                                                                                             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
Used to replace wiring and          More limited bend radius than   Combine the                 Used when installing LEDs    more powerful devices, such as
connectors, allowing for            flexible printed circuit        advantages of flexible      in car headlights, for       smartphones, tablets, digital
connections and geometries that     boards. The use of a            and rigid printed circuit   example, where the           cameras and hearing aids.
are not possible with rigid         standard thin laminate          boards, yielding benefits   printed circuit board is     Production sites: Leoben, Shanghai
printed circuit boards.             makes them a cost-effective     for signal transmission,    bonded to an aluminum
                                    alternative.                    size and stability.         heat sink to which the
                                                                                                                             2.5D® Technology
                                                                                                LEDs are then attached.
                                                                                                                             Platform
                                                                                                                             Combines mechanical and electronic
                                                                                                                             miniaturization, and enables partial
Production site                                                                                                              reduction of the thickness of a
Ansan, Fehring                      Fehring                         Leoben, Ansan               Ansan                        circuit board. Advantage: populated
                                                                                                                             assemblies have a thinner profile.
                                                                                                                             Can be also used to make cavities in
Applications                                                                                                                 the printed circuit board, e.g. for
Nearly all areas of                 Automotive applications         Industrial electronics,     Lighting, automotive,        acoustic channels. Major application
electronics, including                                              such as production          building lighting            for this technology is the 2.5D® rigid-
measuring devices and                                               machines and industrial                                  flex printed circuit board, a lower
medical applications                                                robots                                                   cost alternative for flex-to install
                                                                                                                             applications.
                                                                                                                             Production sites: Leoben, Shanghai

Investor and Analyst Presentation                                                                                                                                       33
Management

                 Andreas                                      Monika Stoisser-                                 Heinz Moitzi,
                 Gerstenmayer, CEO                            Göhring, CFO                                     COO

 Joined AT&S as CEO in 2010                    CFO since 2017                           COO since 2005; with AT&S since
                                                Previous positions include:               19811)
 Previous positions include:
                                                  Since 2011 with AT&S in senior         Previous positions include:
    18 years of work experience at Siemens,        positions in Finance and Human          Various management positions
     including Managing Director with               Resources                                 within AT&S
     Siemens Transportation Systems GmbH          Various positions at international       Measurement engineer with Leoben
     Austria and CEO of the Drive Technology        accounting and tax consulting             University of Mining and Metallurgy
     business unit in Graz from 2003 to 2008        companies                             Education:
    Partner at FOCUSON Business                Education:                                 Degree from Higher Technical
     Consulting GmbH after leaving Siemens        Training as Tax Consultant                 College of Electrical Engineering
                                                  Degree in Business Administration
 Education:                                        from Karl-Franzens University Graz
    Degree in Production Engineering from
     Rosenheim University of Applied                                                        1)He was already with the founding company of AT&S
     Sciences
 Investor and Analyst Presentation                                                                                                               34
Milestones 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
                                                                                                                                    2016
                                                                                                                                    AT&S starts serial production of
                                                                                                                                    IC substrates at the plant in
                                                                                                                                    Chongqing
                                                   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

 Investor and Analyst Presentation                                                                                                                                     35
36
     A sustainability benchmark in the industry

         “Highest resource                                  “Highest standards at all                          “Highest
         efficiency“                                        locations worldwide“                               transparency“
                                         Revenue growth         Environment:   ISO 14001                  Sustainability reporting since 2012/13
                                         Resource               Safety:        OHSAS 18001                Gold recognition from the Responsible
                                         consumption            Energy:        ISO 50001                   Business Alliance
                                         stable/declining       Quality:       ISO 9001, ISO/TS 16949     Conflict minerals reporting
                                                                                AS/EN 9100, DS/EN 13485    Public CDP reporting on climate change
                                                                                                            (C score) and water (B score)

      * Basis for CO2 output: 2015/16

     Investor and Analyst Presentation                                                                                                               36
AT&S – First choice for advanced applications

                                                            IR contact
                                                            Johannes Mattner
                                                            Fabriksgasse 13,
                                                            8700 Leoben/Austria

                                                            Tel: +43 3842 200 5450
                                                            Mobile: +43 676 8955 6093
                                                            Fax: +43 3842 200 15909
                                                            j.mattner@ats.net

                                                            www.ats.net

   Visit: www.ats.net;              @AT&S IR_PR;   AtundS

Investor and Analyst Presentation                                                       37
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.
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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
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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
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Investor and Analyst Presentation                                                                                                                                                           38
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