AT&S Company Presentation · Procurement & Sales: Office in Hong Kong Design Capacities: Germany 16...
Transcript of AT&S Company Presentation · Procurement & Sales: Office in Hong Kong Design Capacities: Germany 16...
Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | Fax +43 (0) 3842 200-216 | E-mail [email protected] Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | Fax +43 (0) 3842 200-216 | E-mail [email protected]
August 2011
AT&SCompany Presentation
AT&S Austria Technologie & SystemtechnikAktiengesellschaft
Martin TheyerHead of Strategy Development & CommunicationsFabriksgasse 13A-8700 Leoben
tel: +43384220015909email: [email protected]
Despite a diligent preparation of this presentation we assume no liability for the content or any action basedon this presentation. We do not give any warranty, guarantee or commitment, neither explicitly nor implicitly.Neither AT&S nor any of its employees assume responsibility for the completeness or accuracy of theinformation contained or not in this presentation. The presentation does not include and does not constituteor 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. 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.
DisclaimerDisclaimerDisclaimerDisclaimer
Company Presentation 1
AgendaAgendaAgendaAgenda
Company Presentation 2
AT&S Global FootprintAT&S Global FootprintAT&S Global FootprintAT&S Global Footprint
AT&S StrategyAT&S StrategyAT&S StrategyAT&S Strategy
AT&S FinancialsAT&S FinancialsAT&S FinancialsAT&S Financials
AT&S OutlookAT&S OutlookAT&S OutlookAT&S Outlook
AT&S Capital MarketsAT&S Capital MarketsAT&S Capital MarketsAT&S Capital Markets
AT&S InnovationAT&S InnovationAT&S InnovationAT&S Innovation
Company Presentation 3
AT&S Global AT&S Global AT&S Global AT&S Global FootprintFootprintFootprintFootprint
Company Presentation 4
HistoryHistoryHistoryHistory
2011 New Development Lease in Chongqing
2010 Extension of Nanjangud Plant II
2009 Relocation of volume business from Leoben-Hinterberg plant to Shanghai.Reorganization of the plant in Leoben-Hinterberg and focus on the European market.Focus on high-end segment in mobile device sector.
2008 AT&S builds a second plant in Nanjangud (India) . AT&S establishes new sales and marketing subsidiary in San Jose (California). Listing at Vienna Stock Exchange [Wiener Börse].
2007 Ramp-up Shanghai III.
2006 Ramp-up of second plant in Shanghai, China. Acquisition of the Korean flexible printed circuit board producer Tofic Co. Ltd. Relocation of the Fohnsdorf plant to Leoben. Reorganization of the plant in Leoben: split in HDI Operations and SPP Operations (former Fohnsdorf plant).
2005 Focusing on Austrian plants on European niche markets.
2003 Concentration on three business sectors: Telecom, Automotive, Industrial. AT&S listed in the new selected-technology index, TecDAX. Takeover of the printed circuit board business AIK Electronics (77%), Klagenfurt (Austria). Moving AT&S Headquarters to Vienna. Establishing a purchasing center in Hong Kong. Extension of the plant in India, increasing production by 50%.
2002 Production start-up in the new Shanghai factory. Ranking among world's top three HDI/microvia manufacturers. Signing of German Corporate Governance Code.
2000 Opening of the new logistics centre in Nörvenich, Germany. Stepwise start-up of Leoben Hinterberg II, Europe’s most modern printed circuit board factory.
1999 AT&S listed on the New Market [Neuer Markt], Frankfurt. Purchase of Indal, India’s largest printed circuit board factory in Nanjangud: AT&S India.
1998 Start-up of new production hall in Fehring.
1995/96
Conversion to a stock corporation, increase of equity capital, holdings of 212 employees.
1994 Award to the tendering group Androsch-Dörflinger-Zoidl.
1990 Founding of E+E Printed Circuit Board Holding as parent company of the three factories: AT&S Fehring, AT&S Fohnsdorf, AT&S Leoben.
1987 Foundation of AT&S.
1982 Foundation of a Voest-Alpine works in Leoben.
1977 Foundation of the Eumig branch factory in Fohnsdorf -production of single sided printed circuit boards.
1974 Foundation of Körting Electronics works in Fehring. Manufacture of television sets with outsourced printed circuit board manufacture.
Company Presentation 5
AT&S a global AT&S a global AT&S a global AT&S a global footprintfootprintfootprintfootprint
Leoben-Hinterberg: Head Office ~850 people
Fehring: ~440 people
Klagenfurt: ~150 people
Shanghai: ~4,570 people
Ansan-S.Korea: ~215 people
Nanjangud-India: ~1,350 people
� Procurement & Sales: Office in Hong Kong� Design Capacities: Germany� 16 Sales Offices worldwide� 6 production facilities worldwide� 7 670 employees worldwide
AT&S GroupAT&S GroupAT&S GroupAT&S Group
Company Presentation 6
AT&S is currently the
� Technology Leader in HDI and Any-Layer Boards
� Highest automated HDI factory in China
� No. 1 - ECP® supplier with real commercial and industrial set up
� Largest European PCB supplier
� Largest PCB producer in India
� Supplier of the Top Players in each targeted segment
* HDI = High Density Interconnect
AT&S Group came out of the crisis stronger
� Stronger customer relations
� Higher customer diversification
Company Presentation 7
Source: AT&S
AT&S PerformanceAT&S PerformanceAT&S PerformanceAT&S Performance
44%
2010/11
488 Mio. €
9%
24%
12%
1%
28%
21%
486 Mio. €450 Mio. €
2008/09
60%
64%67%
56%
2007/08
372 Mio. €
2009/10
31%
11%
8,7%- 0,2%
- 6,9%
9,5%
Fiscal year
Other
Mobile devices
Industrial
Automotive
10%
3%2%
EBIT-margin (%)
Revenue-growth
31%
15%
27%
25%
1%
Austria+Germany
Rest of Europe
Asia
Canada/USA
Other
� Customer portfolio further diversified
� Ultra modern technology in China providegood starting point for future growth
Company Presentation 8
Revenues per region and customer segments
© All figures based on internal Management Information and might changeSource: AT&S
AT&S Performance 2010/11AT&S Performance 2010/11AT&S Performance 2010/11AT&S Performance 2010/11
67,6
32,4
13,4
76,8
36,5
14,7
65,2
40,3
15,8
61,8
43,9
17,2
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
Mobile Devices Industrial Automotive
Q1 10/11
Q2 10/11
Q3 10/11
Q4 10/11
� All segments show high growth rates on a year to year basis
� Mobile Devices has saisonality inherent in itsbusiness model
AT&S AT&S AT&S AT&S StrategyStrategyStrategyStrategy
Company Presentation 10
Source: Prismark; AT&S
PCB Global Market PCB Global Market PCB Global Market PCB Global Market isisisis worthworthworthworth 52 52 52 52 blnblnblnbln USDUSDUSDUSD
���� Strategic focus on Communication and Medical Segment
Company Presentation 11
Source: Prismark; AT&S
Global HDI Market Global HDI Market Global HDI Market Global HDI Market isisisis worthworthworthworth 6,2 6,2 6,2 6,2 blnblnblnbln USDUSDUSDUSD
� Two thirds of global production takes place in Far-East (excl. Japan) by today
� In 2015 almost 80% of all PCBs (by value) will be produced in Far-East (excl. Japan), only 3% in Europe (5% today)
� Production in China accounts to one third by today. In 2015 almost the half of theworldwide production will take place in China
Company Presentation 12
Source: Prismark; , bpa, JMS, ATS
Top 50 Company Top 50 Company Top 50 Company Top 50 Company RevenuesRevenuesRevenuesRevenues 2009200920092009
Company Presentation 13
Development of net m² output as percentage value
Source: AT&S
Change Change Change Change ofofofof AT&S AT&S AT&S AT&S productionproductionproductionproduction volumevolumevolumevolume ––––Austria vs. Austria vs. Austria vs. Austria vs. AsiaAsiaAsiaAsia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2003 2004 2005 2006 2007 2008 2009 2010 2011
AT
Asien
Company Presentation 14
Source: AT&S
AT&S Business Segments AT&S Business Segments AT&S Business Segments AT&S Business Segments –––– Overview Overview Overview Overview
Mobile Devices(2010 ≈ 60% of sales)
Target markets/applications• Mobile Phones• PDAs• Digital Still Cameras • Camcorders• Mobile Music Players• Mobile Modems• Tablets
Industrial(2010 ≈ 29% of sales)
Target markets/applications• Industrial Control & Automation• Medical (Diagnostics, Therapy)• Sensor Applications• Notebooks• White & Brown Goods• Defense, Avionics
Automotive(2010≈ 11% of sales)
Target markets/applications• Engine Control• Lighting Control• Navigation Systems• Occupant Safety• Body Controls• Entertainment Electronics
Company Presentation 15
HDIHDIHDIHDI----Market is expected to grow by 9% Market is expected to grow by 9% Market is expected to grow by 9% Market is expected to grow by 9% p.a. (CAGR)p.a. (CAGR)p.a. (CAGR)p.a. (CAGR)
� Growth of smart phones driven by an increase in purchases especially in emerging markets in Asia-Pacific, notably China and India, and Central and Latin American countries
� AT&S has to grow it’s core business to keep pace with market developments and to meet customers’ requirements
Pro
duct
ion
capa
city
in [M
io. m
²]
2009
10,9
2010
11,9
2011
13,1
2012
14,3
2013
15,6
2014
17,1
2015
18,6
0
5
10
15
20
AT&SCAGR
~13% - 15%*
Development of the HDI-Market
Source: Prismark 2010
CAGR+9%
Company Presentation 16
Automotive production and electronic content
Source: Prismark, AT&S
The automotive electronics market The automotive electronics market The automotive electronics market The automotive electronics market outgrows car productionoutgrows car productionoutgrows car productionoutgrows car production
7160
6573
79 83 8794
0
50
100
150
200 2,150
2,100
2,050
2,000
1,950
1,900
1,850
1,800
1,750
1,700
1,6502015
$200
2014
$182
2013
$170
2012
$159
2011
$144
2010
$127
2009
$115
2008
$133
Vehicle production (mil. units)Electronic content per vehicle ($)Electronic content total ($bn)
Electr. Contentin USDbn USD and mil. units
CAGR+10%CAGR+10%
AT&SCAGR~10%
AT&SCAGR~10%
Company Presentation 17
* estimated on the industrial growth rate
Source: Global Data, AT&S
The medical equipment market is driven by The medical equipment market is driven by The medical equipment market is driven by The medical equipment market is driven by increasing demand and new technological capabilitiesincreasing demand and new technological capabilitiesincreasing demand and new technological capabilitiesincreasing demand and new technological capabilities
� Aging population in developed economies
� Increasing awareness, affordability and improved health infrastructure in emerging economies
� Most demand not linked to discretionary consumer spending
� Self diagnosis and treatment at home becomes more common
� The medical equipment market provides significant growth opportunities to AT&S
Medical equipment market (bn USD)
0
50
100
150
200
250
300
350
400
450
500
20122011
CAGR+8%
CAGR+8%
201520102009 20142013
AT&SCAGR~11%*
AT&SCAGR~11%*
Company Presentation 18
AT&S InnovationAT&S InnovationAT&S InnovationAT&S Innovation
Company Presentation 19
AT&S AT&S AT&S AT&S focusesfocusesfocusesfocuses on on on on technologytechnologytechnologytechnologydifferentiationdifferentiationdifferentiationdifferentiation versus versus versus versus mainmainmainmain competitorscompetitorscompetitorscompetitors
Strategy
� building one of the most modern and highly automated PCB plants in China
� developing and investing into newest technologies
� extending its innovation power
� supporting customers by shortening the development cycle and reducing time to markets
Wider functionality on less space in mobile devices
Increasing prevalence of electronic systems in everyday life
Rising penetration rate of communication applications
Optimise
Leadership through process selectionand continuous efficiencyimprovement
Company Presentation 20
ECP®, 2.5D® and NucleuS® are registered trademarks of A T&S AGSource: AT&S
AT&S InnovationAT&S InnovationAT&S InnovationAT&S Innovation
Printed PCB
Assembled PCB
Interconnect Density
Optical
Mechanical Integration
Embedded Component
Advanced Thermal
XORNucleuS®
ECP®
Thermal SubstrateHeavy CuEmbedded Copper
FV+++ FV+FVHDIBVPTH
Smartphone
Advanced Packaging
Medical
Solid State Lighting
Optical Data
2.5D®-R
2.5D®-C
Rigid Flex
ALIVH®
ALIVH®
Mass ProductionMedium SeriesIndustrialisationR&DAnticipate, Innovate
Market-driven development focussedon future competitive advantage
Execute
Decision, investment and projectexecution to ensure rapid time tomarket
AT&S AT&S AT&S AT&S FinancialsFinancialsFinancialsFinancials
Company Presentation 22
© all figures based on internal Managment Information and might changeSource: AT&S
Key Financial Key Financial Key Financial Key Financial RatiosRatiosRatiosRatios 2010/112010/112010/112010/11
In EUR '00003/2011 before non- recurring
items 31.03. 2011
03/2010 before non- recurring
items 31.03. 2010
03/2011 before non- recurring
items 31.03. 2011
YTD YTD YTD YTD QTD QTD
CONSOLIDATED INCOME STATEMENT
Revenues 487.948 372.184 123.140
thereof produced in Asia (in %) 68,6 67,1 62,7
thereof produced in Europe (in %) 31,4 32,9 37,3
EBITDA 98.582 95.947 54.082 34.480 22.188 22.188
EBITDA-Marge 20,2 19,7 14,5 9,3 18,0 18,0
EBIT 49.208 46.531 10.971 -25.562 8.945 8.945
EBIT-Marge 10,1 9,5 2,9 -6,9 7,3 7,3
Net income 37.709 35.032 -1.084 -37.617 5.463 5.463
Cash Earnings 87.218 84.584 42.372 22.771 18.706 18.706
Company Presentation 23
Source: AT&S
Key Financial Key Financial Key Financial Key Financial RatiosRatiosRatiosRatios 2010/112010/112010/112010/11
In EUR '000 31.03. 2011 31.03. 2010 31.12. 2010
YTD YTD YTD
CONSOLIDATED BALANCE SHEET
Total assets 575.335 483.390 603.032
Equity 229.816 208.793 247.243Equity attributable to equity holders of theparent company 229.463 208.304 246.888
Net debt 193.726 147.985 186.624
Net gearing (in %) 84,3 70,9 75,5
Net working capital 79.357 71.906 90.073
Net working capital per revenues(in %) 16,3 19,3 18,5
Equity ratio (in %) 39,9 43,2 41,0
CONSOLIDATED CASH FLOW STATEMENTNet cash generated from operating activities(OCF) 70.707 47.003 42.591
Net CAPEX 115.145 19.505 82.901
Company Presentation 24
Source: AT&S
Balance SheetBalance SheetBalance SheetBalance Sheet
In EUR '000 31.03.2011 31.03.2010
Non-current assets 403.644 326.029
Current Assets
Inventories 53.376 38.700
Trade and other receivables 99.899 90.976
Financial assets 13.912 14.214
Current income tax receivables 277 117
Cash and cash equivalents 4.227 13.354
Total ASSETS 575.335 483.390
Total EQUITY 229.816 208.793
Total LIABILITIES 345.519 274.597
Total equity and liabilities 575.335 483.390
Company Presentation 25
Source: AT&S
Working CapitalWorking CapitalWorking CapitalWorking Capital
In EUR '000 31.03.2011 31.03.2010
Trade and other receivables 99.899 90.976
Inventory 53.376 38.700
Trade and other payables -96.554 -60.436
Current provisions -2.698 -5.478
Working capital as reported 54.023 63.762
Not cash-effective additions to CAPEX 25.334 8.144
Working capital final and change YTD 79.357 -7.451 71.906
Effects of exchange rate changes -1.499
Change in Working Capital -8.950
Working capital/Sales 16,3% 19,3%
Company Presentation 26
Source: AT&S
CapexCapexCapexCapex & & & & GearingGearingGearingGearing
The increase the gearing ratio is mainly due toCCTD movements . Total net debts increased by46m Euro
We have invested in capacity enlargement in Shanghai (HDI Line 11 was ramped up in October) and in India (new plant built in Nanjangud)
19
30
36 31
17%
23%
29% 25%
0%4%8%12%16%20%24%28%32%36%40%
-2
4
10
16
22
28
34
40
Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
Net
CA
PE
X /
Sal
es
Net
CA
PE
X
(EU
R m
)
148 154 162
194
71%62%
72%85%
-5%
10%
25%
40%
55%
70%
85%
100%
-
30
60
90
120
150
180
31/03/10 30/06/10 30/09/10 31/03/11
Net
Gea
ring
Net
Deb
t (E
UR
m)
Company Presentation 27
Source: AT&S
Cash FlowCash FlowCash FlowCash Flow
In EUR '000 31.03.2011 31.03.2010
Net cash generated from operating activites 70.707 47.003
Net cash used in investing activities (116.671) (18.254)
Net cash generated from/(used in) financing activities 36.945 (22.791)
Net increase/(decrease) in cash and cash equivalents ( 9.019) 5.958
Cash and cash equivalent at beginning of the year 13.354 7.031
Exchange gains/(losses) on cash and cash equivalents (108) 365
Cash and cash equivalents at the end of the year 4.227 13.3 54
OutlookOutlookOutlookOutlook
29* Maximum capacity of plantsSource: AT&S
AT&S AT&S AT&S AT&S increasedincreasedincreasedincreased itsitsitsits capacitycapacitycapacitycapacity bybybyby almostalmostalmostalmost 20%20%20%20%
710k
380k
120k
300k130k
400k
~ 200k
Nanjangud Shanghai Seoul (Korea)Klagenfurt Leoben Fehring Chongqing
NAN Plant II / Phase1 Chongqing New Plant
EX
IST
ING
PLA
NT
S
SHA L11
01/201012/2010
03/2010 09/2010
05/2011Q2 2011 Q1 2013
07/2011
IN PRODUCTION RAMP-UP 2011/12
Production facilities / installed capacity[m²]*:
SHA L12
SHA L13
DEVELOPMENT
Company Presentation 30
Growth scenario forsees that every second HDI PCB used will be manufactured in China
AT&S AT&S AT&S AT&S acquired plot in Chongqing, acquired plot in Chongqing, acquired plot in Chongqing, acquired plot in Chongqing, ChinaChinaChinaChina
� AT&S will build one of the most modern and automated plants in China
� First step to develop the plot (120.000 sqm) as soon as possible
� Building and infrastructure will account for roughly 50 mln Euro
� High end production equipment will be in the range of 150 mln Euro investments
� Additional HDI capacity added to be in the range of 200.000 sqm
AT&S AT&S AT&S AT&S givesgivesgivesgives an Outlook an Outlook an Outlook an Outlook forforforfor 2011/12*2011/12*2011/12*2011/12*
Company Presentation 31
� Expected revenues of EUR 535mln – 550mln*
� EBIT margin > 9 %*
� Effective tax rate of around 20 %
� Investments (CAPEX): EUR 130 mln plus**
� Net Gearing (long term) ≤ 80 %*
*Assuming current exchange rates** depending on the value word done© all figures based on internal Managment Information and might changeSource: AT&S
Company Presentation 32
Total capex requirements ~100 - 130 mln euro needed to ensure two digit growth
Cash Cycle Cash Cycle Cash Cycle Cash Cycle ---- FundingFundingFundingFunding
Our long term funding strategy is that the net debt equity ratio is not exceeding 80% and that sufficient cash is generated over the next years to repay the current net debts level (targeted duration of 5 years)
Internal cash generation ~ 60 - 70mln (10% ebit marg in)
Depreciation ~ 70 - 80mln (11% afa)
Cash earnings ~ 130 - 150 mln euro
Working capital mvt ~ 20 mln euro (18% target)
Interest & dividends ~ 20 mln euro (15% of cash earnings)
Net funding position 0 ~ 20 mln
+
=_
_
=
Source: AT&S
Company Presentation 33
AT&S Capital AT&S Capital AT&S Capital AT&S Capital MarketsMarketsMarketsMarkets
Company Presentation 34
Source: AT&S
AT&S AT&S AT&S AT&S ---- Stock DetailsStock DetailsStock DetailsStock Details
ListingListingListingListing Vienna Stock Exchange, Prime Standard
IndicesIndicesIndicesIndices ATX Prime, WBI
Reuters RIC (A)Reuters RIC (A)Reuters RIC (A)Reuters RIC (A) ATSV.VI
Bloomberg (A)Bloomberg (A)Bloomberg (A)Bloomberg (A) ATS AV
# of shares issued# of shares issued# of shares issued# of shares issued 25.9 million
# of shares outstanding# of shares outstanding# of shares outstanding# of shares outstanding 23.3 million
CalendarCalendarCalendarCalendar
14th of September Annual Board Meeting
20th of October Release of 2nd Quarter Results 2010/11
.
Company Presentation 35
AT&S clearly outperformes theATX Prime Index
© direktanlage.at 23.03.2011
AT&S Capital AT&S Capital AT&S Capital AT&S Capital MarketsMarketsMarketsMarkets –––– shareshareshareshare pricepricepriceprice
� AT&S is currently covered by 6 analysts.
� 5 analysts recommend BUY.
� The expected price range was lifted to 24 Euro. The current consensus is roughly by around 19,22 Euro.
� Estimated EPS are around 1,63 Euro for 2011/12.
AT&S – Well Positioned for the Future
Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!
Company Presentation 36