At & S Austria Technologie & Systemtechnik Aktiengesellschaft · VIE:ATS

At & S Austria Technologie & Systemtechnik Aktiengesellschaft — Non-Deal Roadshow (November 2021)

37 slides from At & S Austria Technologie & Systemtechnik Aktiengesellschaft's roadshow presentation, Nov 8, 2021

  1. Slide 1: Stifel US Roadshow

    STIFEL US ROADSHOW 08 November 2021

  2. Slide 2: AT&S at a Glance

    AT&S AT A GLANCE € 1.2 bn € 250 mn Revenue in FY 20/21 EBITDA in FY 20/21 Margin of 20.7% ~13,000 Vienna Employees Listing Prime Standard € 1.3 bn € 0.39 Market Cap Dividend per share as of end Q2 21/22 Stifel US Roadshow

  3. Slide 3: AT&S Solutions Enable the Most Advanced Electronics Applications and Technologies

    AT&S SOLUTIONS ENABLE THE MOST ADVANCED ELECTRONICS APPLICATIONS AND TECHNOLOGIES IC SUBSTRATES HIGH-END PCBS MODULES Stifel US Roadshow

  4. Slide 4: Segment Automotive - Industrial - Medical

    SEGMENT AUTOMOTIVE - INDUSTRIAL - MEDICAL Revenue share* 26% EBITDA margin* Automotive Industrial Medical 7.4%  ADAS  Smart building, grid,  Diagnostics and  Autonomous driving lighting, manufacturing, imaging systems (radar, camera, V-to-X transportation & retail  Therapy application communica

  5. Slide 5: Segment Mobile Devices & Substrates

    SEGMENT MOBILE DEVICES & SUBSTRATES Revenue share* 74% Mobile devices IC substrates EBITDA margin*  Smartphones  High-performance computers 22.4%  Wearables  Servers 432.6  Notebooks & tablets  Client PCs  Consumer electronics (action  Cloud & Edge computing cameras and drones)  5G base sta

  6. Slide 6: Project Update – Chongqing III (CN)

    PROJECT UPDATE – CHONGQING III (CN)  High volume manufacturing already started  Ramp-up of capacities fully on track  Full capacities available as of the beginning of Q3 23/24 Stifel US Roadshow

  7. Slide 7: Project Update – Campus Kulim (MY)

    PROJECT UPDATE – CAMPUS KULIM (MY)  Groundbreaking done  Construction/piling started November 1st  High volume production scheduled for the end of CY 2024 Stifel US Roadshow Remaining plot for further developments

  8. Slide 8: € 500 mn Investment in Austria

    € 500 MN INVESTMENT IN AUSTRIA AT&S SETS A NEW BENCHMARK IN EUROPE Main Investments Leoben-Hinterberg 2020-2025 2020 – 2023 2021 – 2022 2021 – 2025  Technology upgrade  New office building  R&D center for substrates  Substrate cores  Space for 300 employees  Capacity for upscaling Stifel US Ro

  9. Slide 9: Results H1 21/22

    RESULTS H1 21/22 Stifel US Roadshow

  10. Slide 10: Key Developments H1 21/22

    KEY DEVELOPMENTS H1 21/22  Strong revenue growth of +30%  All business segments contributed to company growth  Significant negative FX effects Business  Headwind from increased material, transports and energy costs expansion  Strengthen the R&D activities to secure technology leadership on trac

  11. Slide 11: H1 21/22 Results Summary

    H1 21/22 RESULTS SUMMARY Revenue +30% EBITDA margin -190 bps Adjusted EBITDA margin -100 bps € 698 mn 18.8% 20.1%  Negative FX effects of € 27 mn  EBITDA margin burdened by  Start-up costs for materials and negative FX effects of € 29 mn wages of € 9.4 mn excluded Stifel US Roadshow

  12. Slide 12: H1 21/22 Results Summary

    H1 21/22 RESULTS SUMMARY Revenue EBITDA* Net profit in € mn +30% +18% +30% 698 538 111 131 14 18 H1 20/21 H1 21/22 H1 20/21 H1 21/22 H1 20/21 H1 21/22 * Adjusted EBITDA increase of 23% to € 140 mn (H1 2020/21: € 114 mn) Stifel US Roadshow

  13. Slide 13: Outlook

    OUTLOOK Stifel US Roadshow

  14. Slide 14: Current Year Guidance

    CURRENT YEAR GUIDANCE FY 21/22 – Revenue guidance increased Growth Revenue growth of 21 – 23% (previous: 17 – 19%)  Adjusted EBITDA margin of 21 – 23% Profitability  Adjustment: Start-up effects of the Chongqing and Kulim projects with an amount of approx. € 50 mn Investments Net capex of up to €

  15. Slide 15: Impact of Chiplets on ABF Substrate Capacity

    IMPACT OF CHIPLETS ON ABF SUBSTRATE CAPACITY More capacity is needed due to larger form factor and increasing layer count of ABF substrates Server IC 2019 Server IC 2025 Single Chip 8x  More layers  Less yield Required  Improved performance capacity Chiplets Substrate 4x CPU Net sqm Graphics Core

  16. Slide 16: Global Market Leaders Using ABF Substrates

    GLOBAL MARKET LEADERS USING ABF SUBSTRATES Significant growth rates due to increasing demand for ABF substrates ABF Substrate Server** market 600 Normalized market size* 500 Revenue (mn US-$) 400 300 200 # of Units 100 0 2020 2021 2022 2023 2024 2025 2026 2027 * Normalized to 2020 value ** Server CP

  17. Slide 17: Midterm Guidance

    MIDTERM GUIDANCE FY 25/26 – Benefitting from projects in China and Malaysia Growth Revenue approx. € 3.5 bn (CAGR +24%) (previous: approx. € 3 bn)  EBITDA margin of 27 – 32% Profitability  ROCE of >12% with ramp-up of production  Net debt/EBITDA: <3 (can be temporarily exceeded) Others  Equity r

  18. Slide 18: Good Reasons for Investing in AT&S

    GOOD REASONS FOR INVESTING IN AT&S Unique market position  Broad product portfolio to serve all growth markets #5 TOP 3  Long-standing customer relationships ABF substrates in FY 25/26 producer worldwide with technology and market leaders  Technology innovator due to continuous R&D efforts  Qual

  19. Slide 19: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION Stifel US Roadshow

  20. Slide 20: High-End Focus Results in Stronger Growth

    HIGH-END FOCUS RESULTS IN STRONGER GROWTH AUTOMOTIVE INDUSTRIAL MEDICAL  Dynamic recovery  Infrastructure investments  Stable growth rates  Chip shortage effects limited  Economy tailwind  Diversification of applications 22% 19% 10% YoY Market Growth Stifel US Roadshow

  21. Slide 21: Positive Momentum in Our Main Markets

    POSITIVE MOMENTUM IN OUR MAIN MARKETS CONSUMER – COMPUTER – SUBSTRATES / SEMICON COMMUNICATION  Growth driver work/stay/play at home  Dynamic market growth limited by capacity  Diversification on track  Partnering with customers to expand 18% | 18% | 13.5% 25% YoY Market Growth Stifel US Roadsho

  22. Slide 22: AT&S Outperforms PCB & Substrates Market Growth

    AT&S OUTPERFORMS PCB & SUBSTRATES MARKET GROWTH in US$ bn 88.2 +17.5% 73.6 +3.7% 62.7 Confirmed position as #2 producer for high end PCBs CY 2020 YoY CY 2021 CAGR CY 2026 Automotive 6.2 +22% 7.5 +4% 9.1 Aviation 2.8 +10% 3.0 +2% 3.4 Industrial 2.5 +19.5% 3.0 +1% 3.2 Medical 1.3 +10% 1.4 +2.5% 1.5 AT

  23. Slide 23: Market Players in the High-End Segment

    MARKET PLAYERS IN THE HIGH-END SEGMENT HDI Technology1 ABF Substrates2 1 Compeq 1 Ibiden 2 AT&S 2 Unimicron 3 Unimicron 3 SEMCO 4 Tripod 4 Shinko 5 Zhen Ding 5 AT&S 6 AKM Meadville 6 Kyocera 7 Meiko 7 Nan Ya PCB 8 TTM 8 Kinsus 1 for CY 2020 2 for CY 2019 Source: Prismark, JMS, AT&S assessment Stifel

  24. Slide 24: AT&S Solutions for the Electronics Industry

    AT&S SOLUTIONS FOR THE ELECTRONICS INDUSTRY Module Chip Manufactu- Chip Assembly PCB Substrate Product/Module Product Design ring | Front-end & Test | Back-end Manufacturing Manufacturing Assembly Ownership Design Module Integration houses Service Provider Module Board OEMs Manufacturer (SLP) Fab-le

  25. Slide 25: Multi-Year Overview

    MULTI-YEAR OVERVIEW In € mn +10% CAGR 1188 992 1028 1001 815 23% 24% 21% 19% 16% 432.6 250 246 226 195 131* 2016/17 2017/18 2018/19 2019/20 2020/21 Revenue EBITDA EBITDA margin * Based on ramp-up effects for new plants in China Stifel US Roadshow

  26. Slide 26: AT&S – Global Footprint

    AT&S – GLOBAL FOOTPRINT AT&S plant AT&S sales support office Leoben, headquarters Fehring Nanjangud Chongqing Shanghai Ansan Kulim Austria Austria India China China Korea Malaysia 1,054* 389* 1,354* 3,741* 4,477* 255* 6,000 by 2024 Stifel US Roadshow *Staff, average, FTE, 2020/21; 80 employees in ot

  27. Slide 27: Driving Sustainability

    DRIVING SUSTAINABILITY High level of social, ecological and economic responsibility 2025 Rated by 80% 30% share of women in renewable energies leadership positions Vitality Index Strengthening partnerships >20% with suppliers Achievements* Share of renewable energies Share of women in leadership of

  28. Slide 28: R&D – Basis for Technology Leadership

    R&D – BASIS FOR TECHNOLOGY LEADERSHIP 10% R&D HQ Austria R&D rate Development up to (corresponds to series production at € 119 mn) the production sites International R&D partners 429 21% Patents Vitality Index* Status: FY 2020/21 *Share of revenue of technologically innovative products made in the l

  29. Slide 29: Results H1 21/22

    RESULTS H1 21/22 Stifel US Roadshow

  30. Slide 30: EBITDA Bridge H1

    EBITDA BRIDGE H1 Investments to prepare for future growth Stifel US Roadshow

  31. Slide 31: Quarterly Development

    QUARTERLY DEVELOPMENT in € mn +31% Highest quarterly revenue in history 380 346 304 318 290 Higher R&D expenses to secure future growth 25% 23% 24% 21% 25% 22% 22% 16% 19% 15% Profitability burdened by FX effects and higher Q2 20/21 Q3 20/21 Q4 20/21 Q1 21/22 Q2 21/22 material costs Revenue EBITDA m

  32. Slide 32: Business Development: Mobile Devices & Substrates

    BUSINESS DEVELOPMENT Mobile Devices & Substrates in € mn Additional Chongqing +31% capacity lifts revenue to record level 287 266 218 220 210 Growing demand for PCBs for modules 27% 24% 21% 20% 17% EBITDA margin neg. influenced by FX effects Q2 20/21 Q3 20/21 Q4 20/21 Q1 21/22 Q2 21/22 and start-up

  33. Slide 33: Business Development: Automotive, Industrial & Medical

    BUSINESS DEVELOPMENT Automotive, Industrial & Medical in € mn All divisions grew YoY with Industrial as main driver +31% No significant impact 94 97 93 from chip shortage 80 71 8% 15% 9% Margin includes EU 8% 8% IPCEI funding in key Q2 20/21 Q3 20/21 Q4 20/21 Q1 21/22 Q2 21/22 technologies 3rd Party

  34. Slide 34: H1 21/22 Financial Position

    H1 21/22 FINANCIAL POSITION Cash & cash equivalents Unused credit lines Balancing capital allocation  Deploying capital with clear approach in € mn to invest in strategic growth markets 553 419 437 318 Solid financial structure with € 755 mn cash, cash equivalents and unused credit lines Q1 20/21 3

  35. Slide 35: Balance Sheet

    BALANCE SHEET € mn 31.03.2021 30.09.2021 Change in % Ongoing expansion and technology Total assets 2,390 2,640 +10% upgrades main drivers for increase in total assets Equity 802 872 +9% Stronger increase in total assets Equity ratio 34% 33% -54bps weighs on equity ratio Higher CAPEX feeds into Net d

  36. Slide 36: Cash Flow

    CASH FLOW H1 H1 YoY € mn 20/21 21/22 Change in % CF from operating activities 84 78 -7% Higher CAPEX offset by lower CF from investing activities -238 -283 -19% investments in time deposits CF from financing activities 102 88 -14% Operating free CF mainly driven Operating free CF* -112 -229 >-100% b

  37. Slide 37: 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

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