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

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft — 9M 2024/25 Earnings Presentation

41 slides from AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's earnings presentation, March 2025

  1. Slide 1: Investor Presentation 9M 2024/25

    INVESTOR PRESENTATION 9M 2024/25 1 Investor Presentation – 9M 2024/25

  2. Slide 2: Company Snapshot

    COMPANY SNAPSHOT 2 Investor Presentation – 9M 2024/25

  3. Slide 3: AT&S at a Glance

    AT&S AT A GLANCE World leading high-tech PCB and ABF substrates company ~13,000 #2 €1.55 Bn High-end PCB Employees Revenue in FY 23/24 manufacturer worldwide (1) ~800 #5 €307 MM Active patents ABF substrates EBITDA in FY 23/24 manufacturer worldwide (1) margin of 19.8% Leoben, Austria 6 €2.1-2.4 Bn

  4. Slide 4: A European Company With A Scalable, Global Production Footprint

    A European Company With A Scalable, Global Production Footprint Headquarters in Austria Only non-Asian company One of two non-Asian and plants in Austria, producing IC-Substrates in companies among the China, India and Malaysia significant volumes Top 50 of PCB companies AT&S plant AT&S sales suppor

  5. Slide 5: High-End Technologies …

    HIGH-END TECHNOLOGIES … AT&S solutions enable the most advanced electronics applications and technologies High-End PCBs ABF Substrates Substrates for Modules  Printed circuit boards designed to support  ABF substrates for Flip Chip technology  Comprehensive solutions for modules the most complex,

  6. Slide 6: … To Enable High-End Applications

    … TO ENABLE HIGH-END APPLICATIONS AT&S solutions enable the most advanced electronics applications and technologies High-End PCBs Robots Smartphone Optical Modules Consumer electronics Substrates ABF Server & cloud computing High performance computers Notebooks and 2-in-1-devices for Modules Substra

  7. Slide 7: Key Business Highlights

    KEY BUSINESS HIGHLIGHTS 7 Investor Presentation – 9M 2024/25

  8. Slide 8: Big Market Trends

    BIG MARKET TRENDS Megatrend Key requirement AT&S strategic priorities BIG DATA 5G IC Substrates Efficient Data Digitalization Utilization Advanced Packaging Ambition Artificial Internet of Efficient Electrification Intelligence Things Systems PCB 8 Investor Presentation – 9M 2024/25

  9. Slide 9: Printed Circuit Board Developments

    PRINTED CIRCUIT BOARD DEVELOPMENTS Electronics Solutions Main driver – Customer development Applications and players in focus Growing the volume with existing customers and further market penetration Consumer Devices CAGR 6% Revenue with Digital Infrastructure ≥€10 million/ year customer Existing cu

  10. Slide 10: IC Substrate Developments

    IC SUBSTRATE DEVELOPMENTS Microelectronics Main driver – Customer diversification Applications and players in focus High-performance computing +>50% ~14 8 5 1 AI, edge computing and IoT Existing customers FY22/23 FY23/24 FY26/27 Servers Application diversification Cloud computing Expected by FY 26/2

  11. Slide 11: Increased Data Volume Will Require Significant Performance Improvement in Processors

    INCREASED DATA VOLUME WILL REQUIRE SIGNIFICANT PERFORMANCE IMPROVEMENT IN PROCESSORS Higher level of functional integration requires more sophisticated ABF substrates Server IC 2019 Server IC 2025 8x Instead of using monolithic Required designs, various chip elements capacity are integrated as one d

  12. Slide 12: Resilient Production Network for IC Substrates

    RESILIENT PRODUCTION NETWORK FOR IC SUBSTRATES 1  Research and production centre for packaging and IC substrate 1 Leoben 2 CHONGQING  Start of production: (AUSTRIA) (CHINA) Jan-Mar 2025 2  Extensive production know- how in CHQ I since 2016  Capacity expansion through CHQ III 3  Significant capa

  13. Slide 13: Sustainability as Key Driver for AT&S

    SUSTAINABILITY AS KEY DRIVER FOR AT&S Our long-term goals What we achieved in FY 2023/24 80% Decarbonization 73.9% Recycling of all production sites of 200kg of in-house copper per Renewable energies by 2025 Renewable energies by 2030 day 38% Scope 1&2 48% Scope 3 72 nationalities Absolute reduction

  14. Slide 14: Financial Performance & Outlook

    FINANCIAL PERFORMANCE & OUTLOOK 14 Investor Presentation – 9M 2024/25

  15. Slide 15: Key Developments I

    KEY DEVELOPMENTS I  Q3: Stable revenue & increased adj. EBITDA  Cost reductions well underway Geschäftsjahr  Closing of Ansan sale on January 31, 2025 in einem  heraus- Dr. Riedl succeeds the late Dr. Androsch as Chairman of the Supervisory Board forderndem  Marktumfeld Announcement of new CEO

  16. Slide 16: Key Developments II

    KEY DEVELOPMENTS II  High leverage will be reduced  Ansan sale closed on January 31, 2025  New factoring contract in finalization Geschäftsjahr  Financing option with IFC in finalization in einem  Net working capital optimization efforts heraus- remain high  forderndem Decrease in interest rat

  17. Slide 17: Q1-3 2024/25 Results Summary

    Q1-3 2024/25 RESULTS SUMMARY Stable 9M YTD topline and strong Adj. EBITDA margins Revenue and EBITDA margins Revenue: € 1,197 MM in € MM -1%  Group: -1% 2  Electronics Solutions: -2%1  Microelectronics: +1%1 1,205 1,197 +1% Adj. EBITDA2: € 332 MM  Increase by 4% 451  Adjusted EBITDA margin: +1.

  18. Slide 18: Current Year Guidance

    CURRENT YEAR GUIDANCE FY 2024/25e Revenue Approx. € 1.5 to 1.6 bn  Adjusted EBITDA margin of 24‒26% Profitability  Adjusted for start-up effects as well as one-time costs of the efficiency and cost optimization program (incl. garden leave) in the amount of approx. € 110 MM Investments Net CAPEX sl

  19. Slide 19: Mid-Term Guidance

    MID-TERM GUIDANCE FY 2026/27e Revenue Approx. € 2.1 to 2.4 bn (CAGRe: ~20%)  EBITDA margin of 24–28% Profitability  ROCE below the mid-term target of 12%  Net debt/EBITDA: <3 (can be temporarily exceeded) Others  Equity ratio temporarily <20% (assuming repayment of hybrid capital at the end of t

  20. Slide 20: Strengths & Opportunities / Aspirations

    STRENGTHS & OPPORTUNITIES Leading high-end 1 Diversified customer 2 European company 3 technology portfolio across broad with scalable, global WHAT MAKES US STRONG NOW manufacturer industry segments production footprint High standards 4 Thriving 5 Track record of success 6 in ESG and on the megatren

  21. Slide 21: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION Investor Presentation – 9M 2024/25

  22. Slide 22: Appendix

    APPENDIX 22 Investor Presentation – 9M 2024/25

  23. Slide 23: 2026/27 Guidance Update

    2026/27 GUIDANCE UPDATE Outperforming the market in a challenging environment Market size Market size PCB Advanced Substrates Guidance as of Dec. 17, 2024 in USD bn CAGR: 5%  Overcapacity and price pressure persist 67 CAGR: 11% 61  Capex will be aligned to lower demand and increased flexibility 12

  24. Slide 24: Cost Saving and Efficiency Program

    COST SAVING AND EFFIENCY PROGRAM Strong focus on sustainable OPEX savings Cost saving program target1 FY24/25 saving result [Sustainable saving in € MM] [Sustainable saving in € MM] 250+ SG&A Further Procurement saving 120 detailing 120 out 80 Operation ongoing 40 15 FY24/25 FY25/26 FY26/27 Q1 2024/

  25. Slide 25: PCB and End Market

    PCB AND END MARKET Weak automotive & industrials and continued price pressure Market size Automotive and industrial PCBs market size for PCBs in USD bn  Very weak Automotive & +7% +1% 60.7 Industrial in Europe 57.0 11.6 11.7 2.9 2.8 PCBs for  Mobile and Computing Industrial PCBs for 43.8 Computer,

  26. Slide 26: Q3 2024/25 Business Unit: Electronics Solutions

    Q3 2024/25 BUSINESS UNIT: ELECTRONICS SOLUTIONS 9M YTD topline stable despite market environment Revenue and EBITDA margins in € MM  9M Revenue flat: volume 745 734 growth and price pressure -5%  Q3 YoY slightly down: full yoy price effect outweighs positive 256 283 product mix/volume 218 243 209

  27. Slide 27: IC Substrates and End-Market

    IC SUBSTRATES AND END-MARKET Price pressure leads to decrease in ABF Substrates market Market size for Advanced Substrates in USD bn +1%  AI investment strong 9.5 9.6  Classic datacenter muted  Client with moderate growth  Inventories normalize 2023 2024e 27 Investor Presentation – 9M 2024/25 So

  28. Slide 28: Q3 2024/25 Business Unit: Microelectronics

    Q3 2024/25 BUSINESS UNIT: MICROELECTRONICS BU in preparation for ramp of new plants Revenue and EBITDA margins in € MM 460 463  9M Revenue flat: volume growth and price pressure +14%  Q3 YoY growth: positive effect 168 154 of new customers 135 127 141 4% 20% 18% 17%  Q3 QoQ decrease: volatile 4%

  29. Slide 29: Sale of AT&S Korea Completed

    SALE OF AT&S KOREA COMPLETED Strategic profile sharpened and significant cash inflow  Closing of Ansan sale to SO.MA.CI.S. on January 31, 2025  Group’s profile sharpened  Effects on Q4 2024/25 figures  EBITDA will be increased by approx. € 325 MM  Gain will not be included in adjusted EBITDA 

  30. Slide 30: Q1-3 2024/25 Financial Position

    Q1-3 2024/25 FINANCIAL POSITION Ongoing measures will further increase liquidity significantly Cash & cash equivalents Unused credit lines Balancing capital allocation in € MM  Solid financial structure with 676 € 685 MM cash, cash equivalents and unused credit lines 582 550  Sale of Ansan will fu

  31. Slide 31: Debt Financing Overview

    DEBT FINANCING OVERVIEW Decrease in current financing cost Maturity of outstanding debt instruments1 in € MM 663  30.0% of debt instruments have a fixed interest rate 459 478  Current financing costs of 4.80% 299 (as of Q3 2024/25) 195 151  Not yet included: new IFC lines 2024/25 2025/26 2026/27

  32. Slide 32: Working Capital Development

    WORKING CAPITAL DEVELOPMENT High management focus on working capital optimization Working capital and relation to revenue in € MM 19.3% 18.5% 11.7% 10.3% 9.2% 7.7% 7.9% 467 454 350 322 301 290 272 153 133 160 185 166 171 171 -301 -290 -339 -328 -336 -340 -340 Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2023

  33. Slide 33: Cash Flow

    CASH FLOW CAPEX reduction well on track € MM Q1-3 23/24 Q1-3 24/25 YoY Change in % CF from operating activities 497 -29 -106%  Reduced factoring activities CF from investing activities -725 -306 +58% CF from financing activities 59 192 +227% Operating free CF1 -201 -357 -77% Net CAPEX 699 328 -53%

  34. Slide 34: Balance Sheet

    BALANCE SHEET Not reflecting Ansan sale € MM Mar. 31, 24 Dec. 31, 24 Change in % Total assets 4,675 4,803 +3% Equity 967 1,004 +4% Equity ratio 20.7% 20.9% +0.2pp Net debt 1,403 1,655 +18%  Net debt/EBITDA ratio: 6.1 34 Investor Presentation – 9M 2024/25

  35. Slide 35: Four Strategic Fields of Action for ESG

    THE FOUR STRATEGIC FIELDS OF ACTION FOR ENVIRONMENTAL SOCIAL GOVERNANCE (ESG) E Decarbonisation & Energy S Decent & Safe Work G Sustainable supply chain With this holistic and Security and Efficiency  Occupational Health & business ethics future-oriented  Resource-efficient and and Safety  Risk M

  36. Slide 36: ESG Ratings

    ESG RATINGS Recognition from leading ESG ratings 17.3 Low Risk Update: 2024 B- Prime Update: 2023 BBB Update: 2024 B Climate Change B Water Update: 2023 71Gold Update: 2023 36 Investor Presentation – 9M 2024/25

  37. Slide 37: AT&S Global Expansion

    HTB3  Completion of the building: 06/2024  Customers: 3  Employees: 340 (Dec. 2024) AT&S GLOBAL  Start of production: Jan.-Mar. 2025 EXPANSION THE PROGRESS KULIM  Completion of the building: 07/2024  Customer: AMD  Employees: 1,200 (Dec. 2024)  Start of production: Jan.-Mar. 2025 37 Investor

  38. Slide 38: R&D Line: Leoben Becomes Competence Center

    R&D LINE: LEOBEN BECOMES COMPETENCE CENTER Development of IC substrates and microelectronic packages in one place Autonomy: Development of expertise for IC substrates and packaging technologies in Europe High-end PCB Independence: Only industrial research center for these technologies in Europe Coll

  39. Slide 39: Strategic Priorities Along Existing and New Product Segments

    STRATEGIC PRIORITIES ALONG EXISTING AND NEW PRODUCT SEGMENTS AT&S strategic priorities IC Substrates PCBs and substrate-like Advanced Packaging IC PCBs Development and scaling Substrates Optimization Marketing of proven Customer diversification Embedding technologies for: Focus on profitability and

  40. Slide 40: Investments Strengthen Market Position

    INVESTMENTS STRENGHTEN MARKET POSITION HDI Technology1 ABF Substrates1 1 Compeq 1 Unimicron 2 AT&S 2 Ibiden 3 TTM 3 Nan Ya PCB 4 Unimicron 4 Shinko 5 Tripod 5 AT&S 6 Meiko 6 SEMCO 7 Zhen Ding 7 Kyocera 8 AKM Meadville 8 Kinsus 1 for CY 2023 Source: Prismark 40 Investor Presentation – 9M 2024/25

  41. Slide 41: 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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