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

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft — Commerzbank Corporate Conference 2020

40 slides from AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's conference presentation, Sep 3, 2020

  1. Slide 1: Commerzbank Corporate Conference 2020

    COMMERZBANK CORPORATE CONFERENCE 2020 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft |SEPTEMBER 3, Leoben Fabriksgasse 13 | A-8700 2020 Tel +43 (0) 3842 200-0 www.ats.net

  2. Slide 2: A world leading high-tech PCB & IC substrates company

    A world leading high-tech PCB & IC substrates company Outperforming High-end interconnect solutions for market growth Mobile Devices, Automotive, Industrial, Medical Applications and Semiconductor over the last #2 decade high-end PCB producer Industry worldwide* Among the top € 1bn PCB producers rev

  3. Slide 3: Leading provider of high-end PCBs and IC substrates

    Leading provider of high-end PCBs and IC substrates Well positioned for the future  Unique market position  Broad product portfolio to serve all growth markets  Long-standing customer relationships with technology and market leaders  Technology innovator due to continuous R&D efforts  Quality b

  4. Slide 4: Market Segments & Product Applications

    3 Market Segments & Product Applications Computer, Communications, IC substrates Automotive Industrial Medical Consumer Appliances Smartphones, Tablets, High Performance Advanced Driver Machine-2-Machine Patient Wearables, Ultrabooks, Computer, Microserver Assistance Systems, Communication, Monitori

  5. Slide 5: Key facts FY 2019/20

    Key facts FY 2019/20 Revenue split by segment: FY 2019/20 +7% CAGR 1,028.0 31% 991.8 1,000.6 Mobile Devices & Substrates 814.9 24.3% 762.9 69% Automotive, Industrial, Medical 22.0% 22.8% 19.4% 16.1% Revenue split by customer: FY 2019/20 226.0 250.1 167.5 194.5 (based on customer’s headquarters) 130.

  6. Slide 6: Global footprint ensures proximity to supply chain & cost efficiency

    Global footprint ensures proximity to supply chain & cost efficiency AT&S plant AT&S sales support office AT&S Headquarters 1,012* 398* 1,326* 3,082* 4,441* 249* Leoben, Headquarters Fehring Nanjangud Chongqing Shanghai Ansan Austria Austria India China China Korea *Staff, Average, FTE, Q1 2020/21;

  7. Slide 7: Market players in the high-end segment

    6 Market players in the high-end segment Market position HDI Technology (2019) HDI Rank Supplier Country/Region (revenue in US-$ millions) 1 Compeq TWN 776 2 AT&S AUT 736 3 TTM USA 716 4 Unimicron TWN 706 5 Tripod TWN 508 6 Meiko JPN 461 7 Zhen Ding TWN 428 8 Korea Circuit KOR 227 9 Founder PCB CHN

  8. Slide 8: Strategic focus on high-end technologies

    Strategic focus on high-end technologies AT&S revenue – based on technologies HDI and any-layer PCBs, Embedding, IC substrates High-end technology share > 80%* High-end HDI PCBs and IC substrates ~ 30% SS, DS, ML, Flex, RF Complementary technology Complementary technology share Single-sided (SS), do

  9. Slide 9: 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

  10. Slide 10: Market Update & Growth Drivers

    MARKET UPDATE & GROWTH DRIVERS AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net

  11. Slide 11: PCB & IC substrates market outlook

    PCB & IC substrates market outlook +4.7% 76.6 +3.9% 10.0 Consumer 58.0 +2.5% 16.9 Computer 8.0 Communication Substrates 14.5 Medical +5.5% 23.7 Industrial Aviation 17.2 +11.4% 9.3 Automotive +3.0% 4.8 +3.1% 1.5 1.3 +2.4% 3.1 3.2 2.6 2.7 +4.5% 6.8 8.9 in US-$ billion Source: Prismark, April 2020; Sub

  12. Slide 12: Game changers for innovative applications

    Game changers for innovative applications 5G Big data AI IoT Investor and Analyst Presentation 11

  13. Slide 13: 5G – The new standard for connectivity

    5G – The new standard for connectivity Significant growth opportunities ahead Total smartphones 5G smartphones 2025: 1.54 billion units 2025: 907 million units 2019: 1.37 billion units 5G Big data 2019: 16 million units AI +2.0% CAGR +119% CAGR Source: IDC (2020), AT&S Analysis Investor and Analyst

  14. Slide 14: IoT and Big data

    IoT and Big data Strong growth drivers for IC substrates Connected devices Global data volume 5G 2025: 55 billion units 2025: 175 Zetabyte 2019: 42 billion units Big data 2019: 40 Zetabyte AI +4.6% CAGR +27.9% CAGR IoT Source: IDC (2019, 2020) Investor and Analyst Presentation 13

  15. Slide 15: IoT and Big data

    IoT and Big data Strong growth drivers for IC substrates High-end processor modules High-end IC substrates Growth by adding 5G value for AT&S 2025: 1.88 billion units 2025: US-$ 9.2 billion More powerful 2019: 1.18 billion units processors modules require larger form factor, 2019: higher layer count

  16. Slide 16: IoT and Big data growth drivers for IC substrates

    IoT and Big data growth drivers for IC substrates AT&S first high-end IC substrates manufacturer in China  IC substrates market should show strong growth of 11 % (CAGR) until 2025  Strategic focus on business with IC substrates to follow the trend of the heterogeneous module integration  Increase

  17. Slide 17: IC substrates business in Chongqing

    IC substrates business in Chongqing Capacity expansion and technology investment pushed forward  CHQ I:Despite COVID-19 the first IC substrates capacities patch of equipment was installed and 1.4x 500% qualified and the ramp up is on track 360% 1.6x  Relevant revenue contribution out of 220% 190%

  18. Slide 18: Module business

    Module business Investor and Analyst Presentation 17

  19. Slide 19: Modules & module integration

    Modules & module integration AT&S solutions for the electronics industry Customer requirements driving Module integration market demand for modularization 2025: US-$ 52 billion*  Changing customer requirements Increased functionality - lower driving the need for modularization space  Strong growth

  20. Slide 20: AT&S solutions for the electronics industry

    AT&S solutions for the electronics industry New business opportunities through entry into the module market Module Design Chip Chip Assembly & PCB Substrate Product/ Product Manufacturing Test Manufacturing Manufacturing Module Ownership (Front-end) (Back-end) Assembly Design 02 Module Integration S

  21. Slide 21: Q1 2020/21 – Financials and Key Figures

    Q1 2020/21 – FINANCIALS AND KEY FIGURES AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 www.ats.net

  22. Slide 22: Global market development

    Global market development Long-term trends largely unaffected, effect of COVID-19 with short-term impact  Digital technologies and electronics are increasingly gaining importance for people’s lifestyle  Growth in data drives the need for processor modules and therefore high-end IC substrates  Tra

  23. Slide 23: AT&S development in Q1 2020/21

    AT&S development in Q1 2020/21 Strong first quarter despite challenging environment  Excellent crisis management helped to mitigate impact on revenue  IC substrates once again with strong demand  Mobile Devices segment supported by customer and application diversification  Drop in vehicle sales

  24. Slide 24: Revenue and EBITDA development

    Revenue and EBITDA development 267.6 263.0  Revenue and EBITDA positively influenced by 247.3 247.9 currency effects 222.7  Future technology generations require higher R&D spending 24.7%  Positive EBIT of € 0,2 million despite higher depreciation 21.0% 15.7% 15.9%  Net profit lower at € -7.5 mi

  25. Slide 25: Revenue distribution Q1 2020/21

    Revenue distribution Q1 2020/21 Revenue split by segment Revenue split by region based on customer’s headquarters 5% 24% 12% 13% 76% 70% Mobile Devices & Substrates Automotive, Industrial, Medical Americas Germany/Austria Asia Other European countries 24 Investor and Analyst Presentation 24 24

  26. Slide 26: Business development – Mobile Devices & Substrates

    Business development – Mobile Devices & Substrates 186.0 190.1 187.2  IC substrates revenue driven by higher 166.0 volume and better product mix 143.8  Higher volume as well as broadened customer and application portfolio support 26.0% Mobile Devices 23.7%  Revenue and earnings positively impacte

  27. Slide 27: Business development – Automotive, Industrial, Medical

    Business development – Automotive, Industrial, Medical 81.6 81.3  Industrial segment shows solid development 78.9 72.9 driven by better product mix 60.7  Automotive segment burdened by strong decrease in vehicle sales  Medical & Healthcare influenced by 12.4% temporary unfavourable product mix 8.

  28. Slide 28: Net CAPEX

    Net CAPEX Investments in IC substrates and technology upgrades main reason for increase 254.3 240.7 218.5 141.7 100.8 81.9 49.7 2015/16 2016/17 2017/18 2018/19 2019/20 Q1 2019/20 Q1 2020/21 in € millions Investor and Analyst Presentation 27

  29. Slide 29: Balance Sheet

    Balance Sheet 31.03.2020 30.06.2020 Change in % Total assets Mio. € 1,853.5 1,980.1 6.8% Equity Mio. € 760.3 726.4 (4.5%) Equity ratio % 41.0% 36.7% – Net debt Mio. € 246.7 298.3 20.9% Investor and Analyst Presentation 28

  30. Slide 30: Solid finance structure

    Solid finance structure Existing funds and cashflow generation help to meet repayments and capex needs 1,031.8  High level of existing liquid funds  Cash: € 387.6 million 419.6  Financial assets: € 224.6 million  Additional unused credit lines of € 419.6 million  Future cashflow still to be con

  31. Slide 31: Outlook

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

  32. Slide 32: Outlook for 2020/21

    Outlook for 2020/21 AT&S is well positioned to positively participate in intact market trends  Future trends not harmed by COVID-19 pandemic  Expectations for customer demand for the current year  Product launches may be delayed in the Mobile Devices segment due to uncertain consumer sentiment 

  33. Slide 33: Medium-term guidance confirmed

    Medium-term guidance confirmed Technology development to module integration and capacitiy expansion Expansion of technology leadership  Leading provider of new interconnect solutions  Innovation revenue rate: > 20% Focus on continued profitable growth  Revenue target of € 2 billion  Prosecution

  34. Slide 34: Annex

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

  35. Slide 35: AT&S – Stock Profile

    AT&S – Stock Profile Listing: Vienna Stock Exchange, # of shares outstanding 38.85m Prime Standard Dividend for 2019/20: € 0.25 per share Indices: ATX, Vönix, WBI Thomson Reuters (A): ATSV.VI Bloomberg (A): ATS:AV Financial Calendar Shareholder structure Publication of the first half-year 2020/21 03

  36. Slide 36: Financials Q1 2020/21

    Financials Q1 2020/21 STATEMENT OF PROFIT OR LOSS Change Revenues increase in IC-Substrates, Mobile € in thousands Q1 2019/20 Q1 2020/21 YoY Devices and Industrial segment, lower Revenue 222,739 247,862 11.3% volume in Automotive segment out of market situation EBITDA 34,905 39,493 13.1% EBITDA deve

  37. Slide 37: Financials Q1 2020/21

    Financials Q1 2020/21 STATEMENT OF FINANCIAL POSITION Change € in thousands 31 Mar 2020 30 Jun 2020 YoY Quarterly loss and negative FX-effects led to Equity 760,259 726,415 (4.5%) an decrease in equity Higher property/plant/equipment and increase Total assets 1,853,510 1, 980,050 6.8% in financing a

  38. Slide 38: Financials Q1 2020/21

    Financials Q1 2020/21 STATEMENT OF CASH FLOWS Change € in thousands Q1 2019/20 Q1 2020/21 YoY Positive effects from result and negative effect Cash flow from operating activities 28,505 28,124 (1.3%) out change in working capital Higher net capex and higher temporary net Cash flow from investing act

  39. Slide 39: 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 38

  40. Slide 40: 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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