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

At & S Austria Technologie & Systemtechnik Aktiengesellschaft — Commerzbank and ODDO BHF Corporate Conference 2021

32 slides from At & S Austria Technologie & Systemtechnik Aktiengesellschaft's conference presentation, Sep 2, 2021

  1. Slide 1: Consistency in Change

    CONSISTENCY IN CHANGE Commerzbank and ODDO BHF Corporate Conference 2021 Investor and Analyst Presentation 02 September, 2021

  2. Slide 2: 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 Achievements1 Share of renewable energies Share of women in leadership of

  3. Slide 3: Leading Provider of High-End PCBs & IC Substrates

    LEADING PROVIDER OF HIGH-END PCBs & IC SUBSTRATES Well positioned for the future €1.2 bn ~€3 bn Unique market position revenue revenue FY 25/26  Broad product portfolio to serve all growth markets FY 20/21  Long-standing customer relationships with technology and market leaders  Technology innova

  4. Slide 4: Global Footprint

    GLOBAL FOOTPRINT 1,0541 3891 1,3541 3,7411 4,4771 2551 Leoben, Headquarters Fehring Nanjangud Chongqing Shanghai Ansan Austria Austria India China China Korea AT&S plant AT&S sales support office AT&S Headquarters 1 Staff, Average, FTE, FY 20/21; 80 employees in other locations 4 Investor and Analys

  5. Slide 5: Market Segments & Product Applications

    MARKET SEGMENTS & PRODUCT APPLICATIONS Mobile devices IC substrates Automotive Industrial Medical  Smartphones  High-performance  ADAS  Smart building, grid,  Diagnostics and  Wearables computers  Autonomous driving lighting, manufacturing, imaging systems  Notebooks & tablets  Servers (rad

  6. Slide 6: Key Facts

    KEY FACTS Outperformed the market in the last years In € mn Revenue split by segment: FY 20/21 +10% CAGR Mobile Devices and Substrates 26% Automotive, Industrial, Medical 1188 1028 1001 74% 992 815 23% 24% 21% Revenue split by customer: FY 20/21 Based on customer’s headquarters 19% 16% 8% Americas 4

  7. Slide 7: AT&S Outperforms PCB & IC Substrates Market Growth

    AT&S OUTPERFORMS PCB & IC SUBSTRATES* MARKET GROWTH in US$ bn 88.2 +14.5% +4.2% 62.7 71.8 Confirmed position as #2 producer for high end PCBs CY 2020 YoY CY 2021 CAGR CY 2026 Automotive 6.2 +19.4% 7.4 +4.1% 9.1 Aviation 2.8 +7.6% 3.0 +2.4% 3.4 Industrial 2.5 +12.4% 2.8 +2.5% 3.2 Medical 1.3 +9.1% 1.

  8. Slide 8: Strategic Business Drivers

    STRATEGIC BUSINESS DRIVERS 8 Investor and Analyst Presentation

  9. Slide 9: Game Changers Are Driving Our Business

    GAME CHANGERS ARE DRIVING OUR BUSINESS 5G Big Data New technologies and systems bring a significant data volume increase Artificial Internet of Intelligence Things 9 Investor and Analyst Presentation

  10. Slide 10: Increasing Data Volumes Require New Design Solutions and Better Performance

    INCREASING DATA VOLUMES REQUIRE NEW DESIGN SOLUTIONS AND BETTER PERFORMANCE Existing technologies cannot meet future requirements Instead of using monolithic designs, various chip elements are integrated as one device MONOLITHIC CHIP CHIPLETS A singular piece of silicon, A heterogeneous collection o

  11. Slide 11: High-Performance Processors Need High-Performance ABF Substrates

    HIGH-PERFORMANCE PROCESSORS NEED HIGH- PERFORMANCE ABF SUBSTRATES Growing demand supports AT&S growth strategy Servers, networking, AI and gaming are driving the trend towards significantly bigger and more complex substrates  Increased substrate size  Increased layer count  Increased interconnect

  12. Slide 12: New Manufacturing Site in Kulim / Malaysia

    NEW MANUFACTURING SITE IN KULIM / MALAYSIA Additional capacities for IC substrates  Investment of up to € 1.7 billion in Kulim, Malaysia  ABF substrates for high-performance processors  Construction of new production complex between 2021 - 2026 Future  Appr. 230,000 m2 in size diversification 

  13. Slide 13: Update ABF Substrates Projects

    UPDATE ABF SUBSTRATES PROJECTS CHONGQING III  First parts of the production equipment have already been qualified as well as be put into operation  Process & equipment characterisation and certification earlier  Full capacities available with the beginning of Q4 2023 KULIM  Contract with custome

  14. Slide 14: Strong Commitment to Innovation and Growth

    STRONG COMMITMENT TO INNOVATION AND GROWTH R&D investments – a key revenue and margin driver +40 % in € mn 167 +25 % Investments in R&D a key part of our focused 119 business strategy 95 31% 27% Target 21% Vitality index > 20% FY 19/20 FY 20/21 FY 21/22e Vitality index 14 Investor and Analyst Presen

  15. Slide 15: Results Q1 21/22

    RESULTS Q1 21/22 15 Investor and Analyst Presentation

  16. Slide 16: Key Developments Q1 21/22

    KEY DEVELOPMENTS Q1 21/22 All business segments contributed to company growth  Strong revenue growth of +28%  Additional capacities and strong demand push ABF substrates business  PCBs for modules with further growth Growth  Automotive recovery  Industrial with strong performance continued  St

  17. Slide 17: Q1 21/22 Results Summary

    Q1 21/22 RESULTS SUMMARY Revenue at historic high Revenue +28% EBITDA margin -130 bps Adjusted EBITDA margin -50 bps € 318 mn 14.6% 16.0%  Negative FX effects of € 22 mn  EBITDA margin burdened by  Start-up costs for materials and negative FX effects of € 18 mn wages of € 4.5 mn excluded 17 Inves

  18. Slide 18: Q1 21/22 Results Summary

    Q1 21/22 RESULTS SUMMARY Revenue EBITDA* Net profit in € mn +28% +17% +33% 318 248 46 39 Q1 20/21 Q1 21/22 Q1 20/21 Q1 21/22 -5 -8 * Adjusted EBITDA of € 51 mn (Q1 2020/21: € 41 mn) Q1 20/21 Q1 21/22 18 Investor and Analyst Presentation

  19. Slide 19: EBITDA Bridge Q1

    EBITDA BRIDGE Q1 Investments to prepare for future growth 19 Investor and Analyst Presentation

  20. Slide 20: Q1 21/22 Financial Position

    Q1 21/22 FINANCIAL POSITION Solid financial structure for future growth Cash & cash equivalents Unused credit lines Balancing capital allocation  Deploying capital with clear approach in € mn to invest in strategic growth markets 553 561 419 329 Sound investment decisions to generate strong operati

  21. Slide 21: Net Capex

    NET CAPEX Further investments mainly pushed by IC substrates in € mn Capex outlook 2021/22  CAPEX guidance increased from up to € 630 mn to up to € 700 mn <700  CAPEX increase is mainly related to the new production site for IC substrates in Kulim 436  CAPEX for strategic projects of up to € 450

  22. Slide 22: Current Year Guidance

    CURRENT YEAR GUIDANCE FY 21/22 – Revenue guidance increased Growth Revenue growth of 17 – 19% (previous: 13 – 15%)  Adjusted EBITDA margin of 21 – 23% Profitability  Adjustment: Start-up effects of the Chongqing and Kulim projects with an amount of appr. € 50 mn 22 Investor and Analyst Presentatio

  23. Slide 23: Midterm Guidance

    MIDTERM GUIDANCE FY 25/26 – Considering the investment in Malaysia Growth Revenue appr. € 3 bn (CAGR +20%)  EBITDA margin of 27 – 32% Profitability  ROCE of >12% with ramp-up of production Others  Net debt/EBITDA: <3 (can be temporarily exceeded) 23 Investor and Analyst Presentation

  24. Slide 24: Annex

    ANNEX 24 Investor and Analyst Presentation

  25. Slide 25: 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 25 Inv

  26. Slide 26: More Than AT&S

    MORE THAN AT&S Broadening the service range and opening up of new business opportunities Leading Module integration services provider of Build-up of additional capabilities interconnect solutions PCBs/substrates for modules Substrates for HPC modules High growth potential Diversification of applicat

  27. Slide 27: 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

  28. Slide 28: AT&S – Stock Profile

    AT&S – STOCK PROFILE Shareholder structure Listing Indices Vienna Stock Exchange, ATX, Vönix, Prime Standard WBI 18% 18% 64% Thomson Bloomberg (A) Free float ATS:AV Dörflinger Private Foundation1 Reuters (A) Androsch Private Foundation1 ATSV.VI # of shares Dividend for outstanding 20/21 38.85 m € 0.

  29. Slide 29: Balance Sheet

    BALANCE SHEET € mn 31.03.2021 30.06.2021 Change in % Ongoing expansion and technology Total assets 2,390 2,516 +5% upgrades main drivers for increase in total assets Equity 802 799 -0.4% Increase in total assets weighs Equity ratio 34% 32% -180bps on equity ratio Higher CAPEX feeds into Net debt 509

  30. Slide 30: Cash Flow

    CASH FLOW Increase in Operating Cash flow driven by better result Q1 Q1 YoY € mn 20/21 21/22 Change in % CF from operating activities 28 31 +8% Higher CAPEX offset by lower CF from investing activities -171 -130 -24% investments in time deposits CF from financing activities 119 110 -8% Operating fre

  31. Slide 31: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION AT&S INVESTOR RELATIONS ir@ats.net +43 3842 200 5925 Investor and Analyst Presentation

  32. Slide 32: 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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