At & S Austria Technologie & Systemtechnik Aktiengesellschaft · VIE:ATS
At & S Austria Technologie & Systemtechnik Aktiengesellschaft — Q1 2019/20 Earnings Presentation
25 slides from At & S Austria Technologie & Systemtechnik Aktiengesellschaft's earnings presentation, Aug 2, 2019
Slide 1: AT&S First choice for advanced applications
AT&S First choice for advanced applications Conference Call – Q1 2019/20 August 02, 2019 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net
Slide 2: Highlights Q1 / 2019/20
Highlights Q1 / 2019/20 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net
Slide 3: PCB & IC substrates market – Overview
PCB & IC substrates market – Overview Forecast for the total PCB & IC substrates market IC substrates until 2024: CAGR of 5.6% − Networking and AI processors trigger demand for high-value IC substrates − Cloud computing drives data center expansions − Increase in server demand − Processor heterogene
Slide 4: Highlights in Q1 2019/20
Highlights in Q1 2019/20 Solid quarter despite strong seasonality and challenging environment Revenue flat at € 222.7 million − Diversified product, technology and customer portfolio supported to compensate for market fluctuations − Strong demand for IC substrates − Robust development of Medical & H
Slide 5: Financials and Key Figures
Financials and Key Figures AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net
Slide 6: Revenue and EBITDA development
Revenue and EBITDA development Revenue and EBITDA impacted by seasonality and market environment Revenue split by segment: Q1 2019/20 294.8 273.3 35% 237.9 Mobile Devices & Substrates 222.1 222.7 65% Automotive, Industrial, Medical Revenue split by region*: Q1 2019/20 9% 86.3 82.2 7% Americas 52.0 1
Slide 7: Business Development – Mobile Devices & Substrates
Business Development – Mobile Devices & Substrates € in millions (unless IC substrate continued to grow due to higher Q1 2018/19 Q1 2019/20 Change in % otherwise indicated) value portfolio and rising sales volume Revenue 160.2 166.4 3.9% Due to stronger seasonality lower demand Revenue with external
Slide 8: Business Development – Automotive, Industrial, Medical
Business Development – Automotive, Industrial, Medical € in millions (unless Q1 2018/19 Q1 2019/20 Change in % Medical & Healthcare continued to show otherwise indicated) Revenue good demand 89.6 88.1 -1.7% Revenue with external Weaker market-related demand in Industrial customers 83.3 78.9 -5.2% Ov
Slide 9: Financials Q1 2019/20
Financials Q1 2019/20 STATEMENT OF PROFIT OR LOSS Change € in thousands Q1 2018/19 Q1 2019/20 YoY Revenue 222,081 222,739 0.3% Supported by IC substrates and Medical & Healthcare EBITDA 51,996 34,905 (32.9%) Unfavourable product mix, lower manufactured value and R&D costs for future applications EBI
Slide 10: Financials Q1 2019/20
Financials Q1 2019/20 STATEMENT OF FINANCIAL POSITION € in thousands 31 Mar 2019 30 Jun 2019 Change Equity 803,451 759,304 (5.5%) Negative FX effects and lower earnings Total assets 1,784,106 1,774,855 (0.5%) Net debt 150,258 208,626 38.8% Higher capex and impact of IFRS 16 Net working capital 160,5
Slide 11: Financials Q1 2019/20
Financials Q1 2019/20 STATEMENT OF CASH FLOWS Change € in thousands Q1 2018/19 Q1 2019/20 YoY Cash flow from operating activities 4,585 28, 505 >100% Mainly due to increase in trade payables Cash flow from investing activities (21,614) (63,745) (>100%) Higher net capex main driver Cash flow from fin
Slide 12: Net CAPEX
Net CAPEX Investment in IC substrates capacity main trigger for YoY growth 254.3 240.7 164.8 141.7 100.8 49.7 17.1 2014/15 2015/16 2016/17 2017/18 2018/19 Q1 2018/19 Q1 2019/20 € in millions Conference Call – Q1 2019/20 11
Slide 13: Headcount
Headcount Capacity extensions require more staff 9,872 10,057 9,965 9,598 9,718 Q1 2018/19 Q2 2018/19 Q3 2018/19 Q4 2018/19 Q1 2019/20 * incl. contractors, FTE, average for the period Conference Call – Q1 2019/20 12
Slide 14: Investment in the future of AT&S
Investment in the future of AT&S AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net
Slide 15: AT&S initiates next growth step
AT&S initiates next growth step IC substrates business becomes an even more important pillar Future high-performance computing modules drives the technological demands on all components of the modules including IC substrates Production of IC substrates for high-performance computing modules − Constr
Slide 16: Drivers behind the investment
Drivers behind the investment Globally generated data grow by more than 30% p.a. until 2025 Explosive growth of data Smart applications and devices with an increasing number of low cost sensors Decreasing storage costs per Giga Byte due to memory technology advances Data sharing (entertainment, offi
Slide 17: AT&S operating successfully in China
AT&S operating successfully in China Industry best-in-class for ramping new technologies and facilities Since 2001 plant in Shanghai for high-end HDI Since 2013 site in Chongqing with two plants for IC substrates and new technologies First high-end IC substrates manufacturer in China SLP main trigge
Slide 18: Facts & Figures – Segment Mobile Devices & Substrates
Facts & Figures – Segment Mobile Devices & Substrates Revenue nearly doubled over the last five years 800 8000 7 083 6 860 Significant growth generated by the segment 700 6 693 7000 Mobile Devises 5 990 683,9 600 648,0 6000 Worldwide Market leader in high-end printed 5 017 circuit boards (HDI, High
Slide 19: New plant in Chongqing
New plant in Chongqing One of the most modern IC Substrate plants in the world Manufacturing floors space of 65,000 m2 (equals nine football pitches) IC substrates for HPC modules demand clean environment − Fulfills highest design standards to guarantee necessary product quality − High portion of cl
Slide 20: Securing profitable growth in tomorrow
Securing profitable growth in tomorrow Medium-term guidance Step towards module integration and “More than AT&S” − Group revenue to double to € 2 billion (CAGR of roughly 15%) − EBITDA margin of 25% to 30% − ROCE target above 12% Significant financing capabilities and solid finance structure to mana
Slide 21: More than AT&S
More than AT&S Broadening the service range and opening up of new business opportunities Leading provider of interconnect Technology solutions Innovation power Module integration Clear focus on dedicated applications services Build-up of additional capabilities Substrates for HPC modules Diversifica
Slide 22: Outlook 2019/20
Outlook 2019/20 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net
Slide 23: Outlook for 2019/20
Outlook for 2019/20 Revenues and EBITDA outlook continues to be confirmed Volatile and currently weaker market environment for mobile devices, in the Automotive and Industrial segment causes low visibility On an annual basis the Management Board expects revenue to remain stable and an EBITDA margin
Slide 24: Thank you for your attention!
Thank you for your attention! AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net 23
Slide 25: 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