AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben
Tel +43 (0) 3842 200-0 | E-Mail [email protected]
www.ats.net
AT&SCompany Presentation 2014
July 2014
Disclaimer
1
Despite a diligent preparation of this presentation the information contained herein has not been independently
verified and we assume no liability for the content or any action based on this presentation. We do not give any
warranty, guarantee or commitment, neither explicitly nor implicitly. No reliance should be placed on the fairness,
accuracy, completeness or correctness of this information or opinions contained herein and neither AT&S nor any of
its employees assume responsibility for the completeness or accuracy of the information contained or not in this
presentation. The presentation does not include and does not constitute or form part of any offer whatsoever, nor
does it constitute or form part of any kind of prospectus.
This presentation contains certain forward-looking statements. These are based on management’s views and
assumptions and involve known and unknown risks and uncertainties. Actual results may differ materially from
those projected or implied in such forward-looking statements. Forward-looking information involves risks and
uncertainties that could significantly affect expected results.
This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor
any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
2
AT&S – the quality leader of PCB production
Best positioned in highly attractive market
Mid Term Strategy
Financials
Agenda
3
3D X-ray image of embedded electronic
components
ECP® -
Embedded Component
Packaging
AT&S – first choice …..
AT&S – …..for advanced applications
4
Product: Flexible printed circuit board on aluminium
Application: for Audi A6
5
Double-sided printed
circuit boards
HDI microvia printed
circuit boards
HDI any-layer printed
circuit boards
IMS printed
circuit boardsMultilayer
printed circuit boards
AT&S Product Portfolio
AT&S is one of the world’s leading manufacturers of high valued circuit boards
AT&S is committed to the highest quality & CSR standards in the industry
6
History
2013 � Cooperation with leading semiconductor manufacturer
to enter IC substrate market
2011 � Acquisition of land and start of construction of a high-
end plant in Chongqing, China – AT&S’s seventh high-
end manufacturing facility
2010 � Relocation of Group Headquarters from Vienna to
Leoben
� Ramp-Up plant II in Nanjangud
2009 � Restructuring and reorientation of Leoben plant
towards high-value industrial business
� Focusing Shanghai on high-end mobile devices segment
2008 � Relisting on the Vienna Stock Exchange (Prime Market)
2006 � AT&S buys flexible plant in Korea
2002 � Start of production in new AT&S plant in Shanghai –
one of the world’s leading HDI* facilities
1999 � AT&S listed on the Neuer Markt at the Frankfurt Stock
Exchange
� AT&S buys PCB plant in India
1987 � Foundation of AT&S
* High Density Interconnect (laser-drilled printed circuit boards)
Management
7
Andreas Gerstenmayer, CEO
� Joined AT&S as CEO in 2010� Previous positions include:
− 18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems GmbH Austria and CEO of the Drive Technology business unit in Graz from 2003 to 2008
− Partner at FOCUSON Business Consulting GmbH after leaving Siemens� Education and other positions:
− Member of the Research Council of Styria− Degree in Production Engineering from Rosenheim University of Applied Sciences
Heinz Moitzi, CTO
� CTO since 2005; with AT&S since 1981� 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 − Studied electrical installation with Stadtwerke Judenburg (Judenburg municipal utility company)
Karl M. Asamer, CFO
� Joined AT&S as CFO in 2014� Previous positions include:
− Managing Director of GEKA Group in Germany− Managing Director of Sell GmbH in Germany
� Education:− Degree: doctorate in business administration in Linz, Austria
► volatility due to seasonal effects
8
Business Segments
Characteristic Applications
54%
SegmentRevenue share*
*) Based on external revenues in EURm for FY 2013/14
46%
Mobile Device
Industrial & Automotive
Advanced Packaging
Target market diversification provides for superior earnings stabilityand a close relationship with selected technology leaders in each market segment
Selected Market Leaders
Siemens
General Electric
EADS
Hella
Continental
Texas Instruments
TDK-EPCOS
Sony
LG
Motorola
Blackberry
Canon
Samsung
Nokia
Huawei
ZTE
Apple
►► more stable business due to longer product life time
FY 2012/13 FY 2013/14
� Includes the segment Advanced Packaging (still in the process of being established) as well as group management and financial activities
FY 2012/13 FY 2013/14
Others
9
Profitable Growth Path
Revenue and margin development
Local presence in key markets & access to emerging Asian smartphone players
� Well balanced customer and industry portfolio
� Strong presence in both Asia and Europe
� Advanced know-how to capture regional market growth
EURm
5yr CAGR 27.5%
10
Locations and Competencies
11
AT&S – the quality leader of PCB production
Best positioned in highly attractive market
Mid Term Strategy
Financials
Agenda
PCB growth cycle
Global PCB turnover ($m)
� The PCB Market is a fast growing market
� We are just at the beginning of a new growth cycle
Source: Prismark; Forecast Prismark (August 2013)
12
$6,465$6,734
$7,437
$10,179$11,682
.$11,071$12,348
$18,117$19,946
20,18521,500
$18,974$18,212
$20,842
$22,837$26,375
$29,703$32,559
$34,288.$36,058
$42.642
$33,237$32,109
$34,485
$38,753
$42,424
$47,626$50,269
$50,786
$44,155
$52,469
$55,409$55,039
$56,732$59,301
$61,555$63,894
$66,442
$0,000
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben
Tel +43 (0) 3842 200-0 | E-Mail [email protected]
www.ats.net
MegatrendsURBANISIERUNGNEW WORK
GLOBALISIERUNG
MOBILITÄT
INDIVIDUALISIERUNG
SILVER SOCIETY
KONNEKTIVITÄT
GESUNDHEIT
NEUES LERNEN
NEO-ÖKOLOGIE
Mega Trend: for example Internet of Things (IoT)
Source: http://www.forbes.com and http://de.control4.com
“The world is made up of trillions of things — cars, planes, jet engines, exercise equipment, the
items on my desk. And then there’s the Internet. This category is about all of these things and the
Internet, as we know it, coming together. Anything I can do over the Internet blended with my
things.” Chet Pipkin, CEO and founder of Belkin
“Everything Is Connected: What 'The Internet Of Things' Means Now”
Forbes Magazine, April 2014
13
1995 2000 2014
Fixed Computer You go to the
device
MobilityThe device goes
with you
IoTeveryday physical things can become a
computer that is connected to the
Internet
2020
Internet of Everything
200 Million
*
* Number of connected devices
10 Billion
50 Billion
15
Expected market growth: Revenues in Wearable Devices will grow from 8,8 bln US$ (2012) to 30 bln
US$ (2018)
Sales of Wearables units: 2014 - 105mln units/2018: 210mln units
Deep Brain Neurostimlators
GastricStimulators
Foot Drop Implants
CochlearImplants
CardiacDefibrillators/Pacemakers
Insulin Pump
Megatrend – for example Wearables
Quelle: Shutterstock, Agentur DMP
16
AT&S – the quality leader of PCB production
Best positioned in highly attractive market
Mid Term Strategy
Financials
Agenda
17
Mid Term Strategy
� Increase revenue in selected market niches (medical,
automotive, etc.)
� AT&S to leverage its patented chip embedding
technology with a major industry player
� Continue growth strategy (High-end Smartphones,
Tablets, Ultrabooks, etc.)
� Improve GP-Margin (Portfolio management, Improve
plant utilization)
� Enter the high-end IC
substrate market
New Business – IC-substrates
Core Business – HDI PCBs
AT&S will further improve its technology portfolio to strengthen its market position but will not increase significantly production capacities in the next three years
� Investments in core activities planned to be in the € 20-40m range per annum
� Planned investment of c. € 350m (excl. ramp-up costs) in Chongqing in IC-substrates over the next three years
Financ-ing
+
What is an IC-Substrate?
18
Substrate (15µm – 7µm)
PCB (50µm-25µm)
Chip (40nm – 10nm)
Performance increase (Moores Law)
Size reduction PCB (Trend: Miniaturisation)
1
2
3 Technical parameter (~ 25µm)(Physical process border)
3
2
1
Mitochondrion – 1µmDNA – 1nmHair – 100µm
Scale:
19
Main difference
PCB commodity vs. HDI vs. IC-Substrate
Source: Prismark, August 2013 , company estimates
Market size
No. of competitors
Prod-cap. China [%]
Tech. Spec. (L/S)
Quality standards
Level of automation
Entry barriers
PCB Commodity HDI
28,020 M$2012 7,918 M$2012
> 2000 > 50
48% 45%
-40 µm 40 µm
high high
high high
low high
IC Substrate
8,935 M$2012
< 20
5%
10-12 µm
very high
very high
very high
Level of complexity
20
Project Chongqing
Projektstatus Chongqing
Completion of
Infrastructure
Start Equipment Installation
Start Equipment
Characterisation
Certification
Start
Training
Start Equipment
Ordering
Plant Lay-out
Product-
Specification
Ramp-up Volume Production
�
21Hinweis: Zahlen basieren auf die bereits getätigten Bestellungen und können daher von den unter net capex ausgewiesenen Ziffern abweichen
*Value work done at 31/03/2014
�
�
�
�
Q4 Q1 Q2 Q3
GJ 2013/14
Q4 Q1 Q2 Q3
GJ 2014/15
Q3GJ 2012/13
Q4 Q1 Q2 Q3
GJ 2015/16
Q4 Q1 Q2 Q3
GJ 2016/17
Q4
Investment as of 31/3/2014: EUR 111 m*
22
AT&S – the quality leader of PCB production
Best positioned in highly attractive market
Mid Term Strategy
Financials
Agenda
Distribution of Turnover
*EUR 451m of revenue in Q1-3 2013/14
** Revenue split is based on shipping location
23
*EUR 451m of revenue in Q1-3 2013/14
** Revenue split is based on customer‘s headquarter
24%
12%
52%
12%
Distribution of Turnover* Ship to Party**
Austria/Germany
Rest of Europe
Asia
Canada/USA 25%
6%
15%
54%
Distribution of Turnover*by Headquarter**
Austria/Germany
Rest of Europe
Asia
Canada/USA /Mexico/Others
/Mexico/
Others
Statement of Profit or Loss
24
1) Adjusted according to IAS 19 revised
In EUR '000 (unless otherwise indicated)
01.04.2013 - 31.03.2014 01.04.2012 - 31.12.20131)
before non-
recurring itemsafter non-recurring items after non-recurring items
STATEMENT OF PROFIT OR LOSS
Revenue589,909 541,673
produced in Asia 75.9 % 73.9 %
produced in Europe24.1 % 26.1 %
EBITDA130,179 127,175 102,356
EBITDA margin22.1 % 21.6 % 18.9 %
EBIT56,934 53,930 31,365
EBIT margin9.7 % 9.1 % 5.8 %
Net income41,223 38,219 14,573
Cash Earnings114,417 111,413 85,563
Statement of Financial Position
25
1) Adjusted according to IAS 19 revised
In EUR '000 (unless otherwise indicated) 31.03.2014 31.03.20131)
STATEMENT OF FINANCIAL POSITION
Total assets 916,059 726,663
Total equity 390,680 304,844
Net debt 110,874 217,409
Net gearing ratio 28.4 % 71.3 %
Net working capital 91,722 102,679
Net working capital / revenue 15.6 % 19.0%
Equity ratio 42.7 % 42.0 %
Statement of Cash Flows
26
1) Adjusted according to IAS 19 revised
In EUR '000 01.04.2013 - 31.03.2014 01.04.2012 - 31.03.20131)
CASH FLOW
Net cash generated from operating
activities 104,759 71,673
Net cash used in investing activities -90,288 -40,549
Net cash generated from financing
activites 169,144 17,933
Net increase in cash and cash
equivalents 183,615 49,057
CAPEX, net 90,276 40,459
AT&S – Financing Strategy
27
The management has worked to strengthen the balance sheet in the past two years :
� Successful placement of a retail bond worth
EUR 100m in November 2011
� Successful capital increase of gross EUR 100m in
September / October 2013
� Successful placement of Schuldschein (SSD) loan worth
EUR 158m in January 2014
� Increase of internal financing power (EBITDA) of about
EUR 34m to EUR 127m in the last 5 years
148
194
242.5217
111
71%
84% 86%
70%
28%
0
50
100
150
200
250
300
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009/10 2010/11 2011/12 2012/13 2013/14
Net Debt Net Gearing
EURm
28
Overview Debt Portfolio Duration
Maturity
In EURm < 1 Year 1-5 Years >5 Years Total
Corporate Bond - 99.5 - 99.4
Export Loans 32.0 - - 32.0
Public funds and other 2.0 0.3 0.3 2.6
Bank Borrowings 12.1 182.9 42.8 237.8
Total 2013/14 46.1 282.7 43.1 371.9
Total* 2012/13 129.8 145.7 23.0 298.5
*audited figures 2012/13
AT&S - Stock Profile
Listing Vienna Stock Exchange, Prime Standard
Indices ATX Prime, WBI
Reuters RIC (A) ATSV.VI
Bloomberg (A) ATS AV
# of shares outstanding post right issue 38.85m
Calendar
Annual General Meeting 3 July 2014
Dividend Payment 24 July 2014
1st Quarter Result 2014/15 24 July 2014
29
Shareholder structure & trading volume
*including direct and indirect holdings
*
*
To find out more [email protected]; Twitter @AT&S IR_PR; YouTube AtundS
30
AT&S – first choice for advanced applications
Martin Theyer
Director Communications
Tel: +43 3842 2005909
Mobile: +43 676 8955 5909
Fax: +43 3842 200 15909
www.ats.net
