AT&S First choice for advanced applications€¦ · Company Presentation May 2018. Company...

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0

www.ats.net

AT&SFirst choice for advanced applications

Company PresentationMay 2018

Company Presentation 1

Table of Contents

AT&S at a glance

AT&S Financials

Appendix


What guides us

VISION

FIRST CHOICE FOR ADVANCED APPLICATIONS

MISSIONWe 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


AT&S – outstanding 2017/18 results

High-end interconnect solutionsfor

Mobile Devices, Automotive, Industrial, Medical

Applications and Semiconductor Industry

Highest revenue

in AT&S history€ 991.8 m (+21.7%)

EBITDA€ 226.0 (+72.6%)

22.8%EBITDA margin

46.5% Equity ratio

9,981employees

Dividend proposal

0.36 €


4

Market Segments & Product Applications served by AT&S

Computer, Communication,

Consumer

Smartphones, Tablets, Wearables, Ultrabooks,

Solid State Drives, Microserver

...

Industrial

Machine-2-Machine Communication,

Robots, Industrial Computer,

X2X Communication

…

Automotive

Advanced Driver Assistance Systems,

Emergency-Call, X2X Communication

…

Medical

Patient Monitoring, Hearing Aids,

Pacemaker, Neurostimulation, Drug

Delivery, Prosthesis

…

IC substrates

High Performance Computer, Microserver

…

Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical


AT&S – Key Facts

542590

667

763815

992

102 127168 168

131*

226

31 5490 77*

7*

90

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

Revenue EBITDA EBIT

Good track record1 Balanced portfolio/Global customer base2

7%

Split revenue: Business Unit, FY 2017/18

Split revenue: Customer Region, FY 2017/18based on sold to party

+9%+13%

+14%+7%

* Based on ramp-up effects for new plants in China

Revenue growth

€ in millions

66%

34%Mobile Devices & Substrates

Automotive, Industrial, Medical

63%21%

10%6% Americas

Germany/Austria

Asia

Other European countries

+21.7%


Global footprint ensures proximity to supply chain & cost efficiency

1,008* 394* 1,143* 2,361* 4,694* 307*

Plant Shanghai China

Plant AnsanKorea

Plant ChongqingChina

Plant Leoben, HeadquartersAustria

Plant FehringAustria

Plant NanjangudIndia

AT&S plant & sales office

AT&S sales office

AT&S Headquarters

*Staff, Average, FTE, FY 2017/18; 73 employees in other locations


Strategic focus on high-end technologies

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

High-endHDI PCBs andIC substrates

~ 30%

Single-sided (SS), double-sided (DS), multilayer- (ML), flex and rigid-flex (RF) PCBs

~ 70%

High-end technology share > 75% HDI and any-layer PCBs, Embedding

Complementary technology share: < 25% SS, DS, ML,

Flex, RF

Structure of general PCB market – based on technologies

Source: Prismark PCB Report 2Q17/ August 2017; AT&S Controlling


Our competitive advantages

Strategic focus on high-end technologies and applications

Outstanding process know-how and process efficiency

First high-end IC substrates manufacturer in China

Scale innovation and technology leverage between customer segments

Highest quality


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

Wearable Electronics

Smart Mobility Autonomous Driving Car2X Communication

Smart City Smart Lighting

Smart Buildings Home/Building Automatization Smart Home Devices

Smart Production/Industry 4.0 Automatization/Robotics Machine-to-Machine Communication

Smart Healthcare Connected Patient Monitoring Systems Connected Consumer Healthcare Devices

Smart Energy Smart Metering

Building Blocks of IoT Modules: Sensing, Connectivity, Energy Storage/Harvesting, Power Management

30-50 billion of „Things“ will be connected in 2020

Wearable electronic devices offer revenue opportunities of USD 61.7bn beyond the smartphone market in 2020Source: Gartner Inc. 2016


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


From vision to strategy

Targets/Key PerformanceIndicators

Strategy

Expansion of technology leadership• Leading provider of new interconnect solutions• Innovation revenue rate: > 20%

Focus on high-end technologies and applications Focus on innovative solutions “More than AT&S”

Medium-term profitable growth• Medium-term revenue target of € 1.5 billion• Medium-term EBITDA margin target of 20-25%

Focus on fast-growing and profitable applications Highest service level and customer orientation Operational excellence Focus on cash flow generation

Creation of shareholder value• Long-term ROCE ≥ 12%

Sustainable business development with focus on ROCE Transparent dividend payout

Vision:“First choice for advanced application”

Sustainable Management• Fulfill and further develop standards in the area

of quality, environment, health & safety…

Human resource development Uphold business ethics


R&D as the key for technological leadership

6.6% R&D Quota

(in % in relation to revenue) 231 Patents

International R&D Partners

As of FY 2017/18 (ended 31/03/2018)* Revenue generated with products with new, innovative technologies introduced to the market within the last three years

40.4%Innovation Revenue Rate *

R&DHeadquarters

AustriaIndustrialization at the respective

production site


Future positioning as leading high-end interconnect solutions provider

Core businessNew technologies and interconnect

solutions

Extended technology toolbox

Additional customers

Additional applications

Broader positioning in the value chain

+

Mo

re t

han

AT&

S

Overview of the transformation from a high-endPCB manufacturer to a high-end interconnect solutions provider:


Table of Contents

AT&S at a glance

AT&S Financials

Appendix


Net CAPEX & Staff

Net CAPEXFY 2017/18: CAPEX at a high level due to mSAP upgrade and Chongqing phase 1

€ in millions

90.3

164.8

254.3240.7

141.7

2013/14 2014/15 2015/16 2016/17 2017/18

* incl. contractors, FTE, average for the period

Staff*Increase in number of employees by more than 2,900

7,0277,638

8,7599,526

9,981

2013/14 2014/15 2015/16 2016/17 2017/18


Revenue and EBITDA development

€ in millions

16

Split revenue FY 2017/18: Business Unit

Split revenue FY 2017/18: Customer Region

16

66%

34%Mobile Devices & Substrates

Automotive, Industrial,Medical

63%21%

10%6%

Americas

Germany/Austria

Asia

Other European countries

Revenue: YoY: + 21.7%: very good product mix, high demand and additional revenue from all plantsEBITDA: YoY: + 72.6 %: expansion capex, high operational performance, successful introduction & optimization of mSAP

199.8 199.6

286.0 280.2225.9

814.9

991.8

28.8 29.774.7 85.9

35.7

130.9

226.0

Q42016/17

Q12017/18

Q22017/18

Q32017/18

Q42017/18

FY2016/17

FY2017/18

Revenue EBITDA and margin

16.1%30.7%26.1%14.9%14.4% 15.8% 22,8%


Outlook for 2018/19

Seasonality expected for mobile devices segment, especially in Q1

Technology development projects in CHQ I as preparation of second phase in implementation

Further expansion in CHQ II depending on market development – next evaluation in mid-2018

Technology expansion and capacity increase in the area of autonomous driving at the sites in Nanjangud (India) and Fehring (Austria) currently implemented

Maintenance investments and minor technology upgrades of roughly € 70 to 100 million

Investments in capacity and technology expansion by another € 100 million depending on market development

Outlook 2018/19: Revenue growth by up to 6% and EBITDA margin at 20 to 23%

Core business with stable and growing demand in a competitive environment


Medium-term strategy – More than AT&S

Path of value-added growth will be pursued consistently

Focus on leading position in terms of technology, quality and results

New revenue target of € 1.5 billion

EBITDA margin of 20 to 25%

Positioning as a leading high-end interconnect provider


AT&S – Stock ProfileListing: Vienna Stock Exchange,

Prime Standard

Indices: ATX Prime, WBI

Thomson Reuters (A): ATSV.VI

Bloomberg (A): ATS:AV

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

Results for the first quarter 2018/19 31 July 2018

Results for the second quarter 2018/19 31 July 2018

Financial Calendar Shareholder structure

# of shares outstanding 38.85m

Average daily volume*: ~ 115,000 shares

Performance 1 year*: +107%

Dividend proposal 2017/18: € 0.36 per share

* 02/05/2017 – 30/04/2018


Table of Contents

AT&S at a glance

AT&S Financials

Appendix


AT&S Product Portfolio – I

ECP®:Embedded Component Packaging IC substrates Substrate-like printed circuit boards

mSAP

Embedded Component Packaging allows to embed active/passive components (e.g. wafer level dies) within the layers of a PCB – contributes to miniaturization.

IC substrates serve as interconnection platform withhigher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs .

Substrate-like PCBs (mSAP technology) are the next evolution of high-end HDI PCBs with higher density: Line/Space < 30 micron.

Production siteLeoben, Shanghai Chongqing Chongqing, Shanghai

ApplicationsDevices such as smartphones, tablets, digitalcameras and hearing aids

High-end processors for Computer, Communication, Automotive, Industrial

Mobile applications like smartphones


HDI any-layer printed circuit

boards

HDI microvia printed circuit boards – high density interconnect

Multilayer printed circuit boards

Double-sided printed circuit boards

IMS printed circuit boards – insulated metal

substrate

Further technological enhancement to HDI microvia: All electrical connections in HDI any-layer boards consist of laser-drilled microvias. Advantage: further miniaturization, and higher performance and reliability. AT&S produces HDI any-layer in 4 to 12 layers.

HDI: high density interconnect, meaninglaser-drilled connections (microvias). HDI is first step towards miniaturization.AT&S can produce 4-layerlaser PCBs up to 6-n-6HDI multi layer PCBs.

Found in almost every area of industrial electronics. AT&S produces printed circuit boards with 4 to 28 layers, in quantities from individual prototypes to small batches and mass production.

Used in all areas of electronics. AT&S focuses on double-sided printed circuit boards with thicknesses in the range of 0.1-3.2mm.

IMS: insulated metal substrate. Primary function: heat dissipation for use mainly with LEDs and power components.

Production siteShanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring

ApplicationsSmartphones, Tablets, Notebooks

Mobile phones and nearly all electronic applications including automotive (navigation, infotainment and driver assistance systems)

Used in all electronic applications including touch panels, and in products ranging from aircraft to motorcycles, from storage power plants to solar arrays

Primarily industrial and automotive applications

Lighting industry

AT&S Product Portfolio – II


Flexible printed circuit boards

Semi-flexible printed circuit boards

Rigid-flex printed circuit boards

Flexible printed circuitboards on aluminum

Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid printed circuit boards.

More limited bend radius than flexible printed circuitboards. The use of astandard thin laminatemakes them a cost-effective alternative.

Combine theadvantages of flexibleand rigid printed circuitboards, yielding benefitsfor signal transmission,size and stability.

Used when installing LEDsin car headlights, forexample, where theprinted circuit board isbonded to an aluminumheat sink to which theLEDs are then attached.

Production siteAnsan, Fehring Fehring Ansan Ansan

ApplicationsNearly all areas ofelectronics, includingmeasuring devices andmedical applications

Automotive applications Industrial electronics,such as productionmachines and industrialrobots

Lighting, automotive,building lighting

AT&S Product Portfolio – III


Management

Andreas Gerstenmayer, CEO

Joined AT&S as CEO in 2010

Previous positions include:

18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems GmbH Austria and CEO of the Drive Technology business unit in Graz from 2003 to 2008

Partner at FOCUSON Business Consulting GmbH after leaving Siemens

Education:

Degree in Production Engineering from Rosenheim University of Applied Sciences

Monika Stoisser-Göhring, CFO

CFO since 2017 Previous positions include:

Since 2011 with AT&S in senior positions in Finance and Human Resources

Various positions at international accounting and tax consulting companies

Education: Training as Tax Consultant Degree in Business Administration

from Karl-Franzens University Graz

Heinz Moitzi, COO

COO since 2005; with AT&S since 19811)

Previous positions include: Various management positions

within AT&S Measurement engineer with Leoben

University of Mining and Metallurgy Education:

Degree from Higher Technical College of Electrical Engineering

1)He was already with the founding company of AT&S


Milestones in the Group’s history

1987Founding of the Group, emerging

from several companies owned by

the Austrian State Owned

Industries

1994Privatization and

acquisition by Messrs

Androsch, Dörflinger, Zoidl

1999Initial public offering on Frankfurt Stock Exchange

(„Neuer Markt“). Acquisition of Indal Electronics

Ltd., largest Indian printed circuit board plant

(Nanjangud) – today, AT&S India Private Limited

2002Start of production at new Shanghai

facility – one of the leading HDI

production sites in the world

2010Start of production

at plant II in India

2009New production direction: Austrian

plants produce for high-value niches

in the automotive and industrial

segment; Shanghai focuses on the

high-end mobile devices segment

2008AT&S change

to Vienna Stock

Exchange 2006Acquisition of Korean

flexible printed circuit

board manufacturer,

Tofic Co. Ltd. – today,

AT&S Korea Co., Ltd.

2015AT&S again achieves record high sales and earnings for

financial year 2014/15 and decides to increase the investment

program in Chongqing from € 350 million to € 480 million

2011 Construction starts on new

plant in Chongqing, China

Capacity increase in

Shanghai by 30%

2013AT&S enters the IC substrate

market in cooperation with a

leading manufacturer of

semiconductors 2016AT&S starts serial production of

IC substrates at the plant in

Chongqing


A sustainability benchmark in the industry

26

“Highest resourceefficiency“

“Highest standards at all locations worldwide“

“Highesttransparency“

* Basis for CO2 output: 2015/16

Sustainability reporting since 2012/13 Gold recognition from the Responsible

Business Alliance Conflict minerals reporting Public CDP reporting on climate change

(C score) and water (B score)

Resourceconsumptionstable/declining

Revenue growth Environment: ISO 14001 Safety: OHSAS 18001 Energy: ISO 50001 Quality: ISO 9001, ISO/TS 16949

AS/EN 9100, DS/EN 13485


DisclaimerThis presentation is provided by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, having its headquarter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), and thecontents are proprietary to AT&S and for information only.

AT&S does not provide any representations or warranties with regard to this presentation or for the correctness and completeness of the statements contained therein, and noreliance may be placed for any purpose whatsoever on the information contained in this presentation, which has not been independently verified. You are expressly cautioned notto place undue reliance on this information.

This presentation may contain forward-looking statements which were made on the basis of the information available at the time of preparation and on management‘s expectationsand assumptions. However, such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments, results, performanceor events may vary significantly from the statements contained explicitly or implicitly herein.

Neither AT&S, nor any affiliated company, or any of their directors, officers, employees, advisors or agents accept any responsibility or liability (for negligence or otherwise) for anyloss whatsoever out of the use of or otherwise in connection with this presentation. AT&S undertakes no obligation to update or revise any forward-looking statements, whether asa result of changed assumptions or expectations, new information or future events.

This presentation does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither this presentationnor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation does not constitute any financial analysis or financial research andmay not be construed to be or form part of a prospectus. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen orresident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which wouldrequire any registration or licensing within such jurisdiction.

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