At & S Austria Technologie & Systemtechnik Aktiengesellschaft · VIE:ATS
At & S Austria Technologie & Systemtechnik Aktiengesellschaft — H1 2022/23 Earnings Presentation
26 slides from At & S Austria Technologie & Systemtechnik Aktiengesellschaft's earnings presentation, Nov 3, 2022
Slide 1: Results H1 2022/23 Conference Call
RESULTS H1 2022/23 CONFERENCE CALL November 03, 2022
Slide 2: Key Developments H1 22/23
KEY DEVELOPMENTS H1 22/23 Strong revenue growth of +53% Additional substrate capacities in China as a key driver All business areas contributed to company growth Business Premium Phones as a fast growing segment expansion Significant FX effects on track Good progress in all recruiting pr
Slide 3: Moving Ahead with Careful Foresight
SUCCESS IN SPITE OF CHALLENGING “MOVING AHEAD WITH TIMES CAREFUL FORESIGHT” HOW DO WE REACT TO? Energy CAPEX-Check Gas oil Various efficiency programs Energy saving plans (cost, working capital, …) Solar energy program in Kulim Short cycle market reviews 150GWh of approx. 400 GWh, i.e. app
Slide 4: The Big Market Trends Are Still Valid
THE BIG MARKET TRENDS ARE STILL VALID Megatrend Key requirement AT&S strategic priorities BIG DATA 5G IC Efficient Data Substrates Digitalization Utilization Advanced Packaging Ambition Artificial Internet of Efficient Electrification Intelligence Things Systems PCB 4 Conference Call H1 2022/23
Slide 5: Digitalization Is Constantly on the Rise
DIGITALIZATION IS CONSTANTLY ON THE RISE Our Markets: Computing, Communication, Consumer $70 000 Short-term trends • Normalization of notebook market to new normal $60 000 • PCB market in Million USD Consumer demand declining from hyped Covid levels • Very high level of uncertainty leading to cautio
Slide 6: Recovery After Chip Shortage
RECOVERY AFTER CHIP SHORTAGE Our Markets: Automotive, Industrial, Medical, Aerospace $25 000 Short-term trends • Automotive market still in recovery • PCB market in Million USD $20 000 Relaxing of the chip shortage allows the markets to further recover in 2022 • Electrification and higher electronic
Slide 7: 5G on a Growth Path
5G ON A GROWTH PATH Smartphone vs Premium Phones 1 600 1 400 Units shipped in Million per year 1 200 1 000 800 600 Premium portion of smartphone 400 comparatively resilient 200 5G adoption quickly progressing 0 Premium Phones are a big part of the 5G Phones – AT&S grows below 5G 5G (including Premiu
Slide 8: The Boom and Booster of Digitalization
THE BOOM AND BOOSTER OF DIGITALIZATION Historic computing market development 500 Tablet boom Quarterly Shipments (normalized) 450 Covid boost 400 350 Notebook boom 300 250 The infrastructure 200 need per client device Cloud boost is rapidly growing 150 100 Maintenance of More and faster apps Ini
Slide 9: Impact of Chiplets on ABF Substrate
IMPACT OF CHIPLETS ON ABF SUBSTRATE THE BACKBONE OF DIGITALIZATION CAPACITY Packaging to enable more-than-Moore growth More capacity is needed due to larger form factor and increasing Architecture to date Future architecture Substrate layer count of ABF substrates Single chip Improved Chiplets per
Slide 10: ABF Substrate: Gamechangers Are Driving Long-Term Business
ABF SUBSTRATE: GAMECHANGERS ARE DRIVING LONG- TERM BUSINESS Short-term Mid-term Long-term Market 3-6 months 6-12 months >1 year Digitalization fuels Steadily growing, demand. Server & Steadily growing market shares rapidly Heterogeneous cloud computing changing integrations demanding larger substrat
Slide 11: Our Strategic Focus: Package Substrate Market
OUR STRATEGIC FOCUS: PACKAGE SUBSTRATE MARKET in $ bn CAGR 12.1 9.2 +7.1% 7.0 4.6 3.3 IC Substrate based on ABF material continues to show exciting growth over 2019 2020 2021e 2022e … 2026e the next couple of years FCBGA/LGA substrates * FCCSP/FC-BOC, WB PBGA/CSP, Module Source: Prismark, August 202
Slide 12: Foundation for Future Success: AT&S Substrate Triangle & People
FOUNDATION FOR FUTURE SUCCESS: AT&S SUBSTRATE TRIANGLE & PEOPLE LEOBEN-HINTERBERG R&D center for IC substrates The only plant in Europe where this substrate technology is produced Capacity for upscaling within our substrate triangle CHONGQING I & III KULIM Solid production Capacity expansi
Slide 13: Results H1 2022/23
RESULTS H1 2022/23 Petra Preining, CFO 13 Conference Call H1 2022/23
Slide 14: H1 2022/23 Results Summary
H1 2022/23 RESULTS SUMMARY* Revenue +53% EBITDA margin +10.7 pp Adjusted EBITDA margin +11.2 pp € 1,070 MM 29.5% 31.3% Positively impacted by FX EBITDA margin increased by Start-up costs for materials and effects of € 116 MM FX effects of € 79 MM wages of € 20 MM excluded * YoY changes 14 Conf
Slide 15: H1 2022/23 Results Summary
H1 2022/23 RESULTS SUMMARY Revenue EBITDA* Net profit in € MM +53% 1070 +141% +1,129% 698 224 315 131 18 H1 21/22 H1 22/23 H1 21/22 H1 22/23 H1 21/22 H1 22/23 * Adjusted EBITDA increase of 139% to € 335 MM (H1 2021/22: € 140 MM) 15 Conference Call H1 2022/23
Slide 16: Quarterly Revenue and EBITDA Margin Development
QUARTERLY REVENUE AND EBITDA MARGIN DEVELOPMENT in € MM +49% Quarterly revenue on record level 567 503 449 443 380 Growth mainly driven by 318 increased capacity 34% 24% 29% 27% 26% 27% 31% 16% 22% 25% 24% 15% Margin improvement due to higher revenue Q1 21/22 Q2 21/22 Q3 21/22 Q4 21/22 Q1 22/23 Q2 2
Slide 17: Business Development: Mobile Devices & Substrates
BUSINESS DEVELOPMENT Mobile Devices & Substrates in € MM +59% Chongqing capacity expansion drove 454 revenue 386 349 334 287 Strong demand for 220 PCBs for modules 36% 32% 29% 25% 21% 17% EBITDA margin profile further improved Q1 21/22 Q2 21/22 Q3 21/22 Q4 21/22 Q1 22/23 Q2 22/23 3rd party revenue E
Slide 18: Business Development: Automotive, Industrial & Medical
BUSINESS DEVELOPMENT Automotive, Industrial & Medical in € MM Revenue growth +21% supported by FX 109 116 113 Margin reflects start-up 97 93 100 costs and higher R&D expenditures 15% 10% 18% 5% 8% -2% IPCEI funding expected to provide margin Q1 21/22 Q2 21/22 Q3 21/22 Q4 21/22 Q1 22/23 Q2 22/23 tail
Slide 19: H1 2022/23 Financial Position
H1 2022/23 FINANCIAL POSITION Cash & cash equivalents Unused credit lines Balancing capital allocation in € MM Deploying capital with clear approach to invest in strategic growth markets Hybrid bond placement and customer 1,120 1,094 prepayments drive cash and cash equivalents Solid financial
Slide 20: Debt Financing Overview
DEBT FINANCING OVERVIEW Maturity of outstanding debt instruments* in € MM 43% of debt instruments have a fixed interest rate 613 Diversified financing sources – rising share of funding backed by 421 governmental and supranational 306 organizations Current financing costs of 1.4% (in H1) 105
Slide 21: Balance Sheet
BALANCE SHEET € MM Mar. 31, 22 Sep. 30, 22 Change in % Ongoing expansion and customer Total assets 3,746 4,318 +15% prepayments main drivers Equity 1,252 1,491 +19% Higher earnings and positive FX Equity ratio 33.4% 34.5% +1.1 pp effects support Net debt 212 297 +40% Net debt/EBITDA ratio of 0.6 21
Slide 22: Cash Flow
CASH FLOW H1 H1 YoY € MM 21/22 22/23 Change in % Supported by better result and CF from operating activities 102 366 +257% customer prepayments CF from investing activities -283 -526 - Driven by higher CAPEX CF from financing activities 63 46 -28% Operating free CF* -204 -124 - Net CAPEX 307 490 +60
Slide 23: Current Year Guidance
CURRENT YEAR GUIDANCE* FY 2022/23 Revenue Mid-single-digit percentage range below previous expectation of approx. €2.2 billion Profitability Adjusted EBITDA margin of 27–30% Investments Net CAPEX of up to € 1,250 MM * For further details please see press release from Nov 03, 2022 23 Conference Call
Slide 24: Mid-Term Guidance
MID-TERM GUIDANCE FY 2025/26 Growth Revenue approx. € 3.5 bn (CAGR +22%) EBITDA margin of 27–32% Profitability ROCE of >12% with ramp-up of production Net debt/EBITDA: <3 (can be temporarily exceeded) Others Equity ratio: >30% (may temporarily fall below) 24 Conference Call H1 2022/23
Slide 25: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Conference Call H1 2022/23
Slide 26: Disclaimer
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. AT&S does not provide any representations or warrant