-- at&s company presentation

Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | Fax +43 (0) 3842 200-216 | E-mail [email protected]

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May 2011

AT&S Company Presentation

www.ats.net

Austria Technologie & SystemtechnikAktiengesellschaft

2Company Presentation

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Source: AT&S

Disclaimer

Despite a diligent preparation of this presentation we assume no liability for the content or any action based onthis presentation. We do not give any warranty, guarantee or commitment, neither explicitly nor implicitly. NeitherAT&S nor any of its employees assume responsibility for the completeness or accuracy of the informationcontained or not in this presentation. The presentation does not include and does not constitute or form part ofany offer whatsoever, nor does it constitute or form part of any kind of prospectus.

This presentation contains certain forward-looking statements. Actual results may differ materially from thoseprojected or implied in such forward-looking statements. Forward-looking information involves risks anduncertainties that could significantly affect expected results.

AT&S Austria Technologie & Systemtechnik Aktiengesellschaft

Martin TheyerHead of Strategy Development & CommunicationsFabriksgasse 13A-8700 Leoben

tel: +43384220015909email: [email protected]

www.ats.net



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Source: AT&S

AT&S Global Footprint

www.ats.net



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Source: AT&S

History

2002 Production start-up in the new Shanghai factory. Ranking among world's top three HDI/microvia manufacturers. Signing of German Corporate Governance Code.

2000 Opening of the new logistics centre in Nörvenich, Germany. Stepwise start-up of Leoben Hinterberg II, Europe’s most modern printed circuit board factory.

1999 AT&S listed on the New Market [Neuer Markt], Frankfurt. Purchase of Indal, India’s largest printed circuit board factory in Nanjangud: AT&S India.

1998 Start-up of new production hall in Fehring.

1995/96

Conversion to a stock corporation, increase of equity capital, holdings of 212 employees.

1994 Award to the tendering group Androsch-Dörflinger-Zoidl.

1990 Founding of E+E Printed Circuit Board Holding as parent company of the three factories: AT&S Fehring, AT&S Fohnsdorf, AT&S Leoben.

1987 Foundation of AT&S.

1982 Foundation of a Voest-Alpine works in Leoben.

1977 Foundation of the Eumig branch factory in Fohnsdorf -production of single sided printed circuit boards.

1974 Foundation of Körting Electronics works in Fehring. Manufacture of television sets with outsourced printed circuit board manufacture.

2011 New Development Lease in Chongqing

2010 Extension of Nanjangud Plant II

2009 Relocation of volume business from Leoben-Hinterberg plant to Shanghai.Reorganization of the plant in Leoben-Hinterberg and focus on the European market.Focus on high-end segment in mobile device sector.

2008 AT&S builds a second plant in Nanjangud (India) . AT&S establishes new sales and marketing subsidiary in San Jose (California). Listing at Vienna Stock Exchange [Wiener Börse].

2007 Ramp-up Shanghai III.

2006 Ramp-up of second plant in Shanghai, China. Acquisition of the Korean flexible printed circuit board producer Tofic Co. Ltd. Relocation of the Fohnsdorf plant to Leoben. Reorganization of the plant in Leoben: split in HDI Operations and SPP Operations (former Fohnsdorf plant).

2005 Focusing on Austrian plants on European niche markets.

2003 Concentration on three business sectors: Telecom, Automotive, Industrial. AT&S listed in the new selected-technology index, TecDAX. Takeover of the printed circuit board business AIK Electronics (77%), Klagenfurt (Austria). Moving AT&S Headquarters to Vienna. Establishing a purchasing center in Hong Kong. Extension of the plant in India, increasing production by 50%.

www.ats.net



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Source: AT&S

AT&S – a global footprint

Leoben-Hinterberg: Head Office ~850 people

Fehring: ~440 people

Klagenfurt: ~150 people

Shanghai: ~4,570 people

Ansan-S.Korea: ~215 people

Nanjangud-India: ~1,350 people

� Procurement & Sales: Office in Hong Kong

� Design Capacities: Germany

� 16 Sales Offices worldwide

� 6 production facilities worldwide

� 7 670 employees worldwide

www.ats.net



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Source: AT&S

AT&S Group

AT&S is currently the

� Technology Leader in HDI and Any-Layer Boards

� Highest automated HDI factory in China

� No. 1 - ECP® supplier with real commercial and industrial set up

� Largest European PCB supplier

� Largest PCB producer in India

� Supplier of the Top Players in each targeted segment

* HDI = High Density Interconnect

www.ats.net



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Source: AT&S

486

372

450

500

-6,9%

8,7%

-0,2%

9,0%

-

100

200

300

400

500

2007/08* 2008/09 2009/10 2010/11e*

Rev

enue

s (E

UR

m)

-10,0%

Ebi

t Mar

gin

The good message first - we are growing again

AT&S managed the turn around after Lehman Brothers very quickly – the only loss making quarters were Q3 2008/09 and Q1 2009/10 – all other quarters were positive.

* Pre-Crisis Level with new Set up

www.ats.net



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Source: AT&S

AT&S PerformanceRevenuegrowth

44%

� AT&S Group came out of the crisis strenghtened� Stronger customer relations and less volatility compared to pre-crisis period� Overall is the customer portfolio well balanced

30%

18% 23%

28%

Revenues per business segment 2007/08 – 2010/11

2010/11 (forecast)

475-500 Mio. €

9%

24%

12%

1%

28%

21%

10%

486 Mio. €450 Mio. €

2008/09

60%

64%67%

59%

2007/08

372 Mio. €

2009/10

28%

11%

8,7%- 0,2%

- 6,9%

~ 9%

Fiscal year

Other

Mobile devices

Industrial

Automotive

10%

3%2%

EBIT-margin (%)

www.ats.net



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Source: AT&S

AT&S Performance

67,6

32,4

13,4

144,4

68,9

28,1

209,6

109,2

43,9

0

50

100

150

200

250

Mobile Devices Industrial Automotive

Q1 10/11

Q2 10/11

Q3 10/11

� Cumulative Sales of 365m Euros exceed internal expectations– all three customer segments delivered two digit growth rates – net earnings were slightly down as a result of December holidays in Europe and US.

� Importance of the Asian market is increasing – our core markets Austria & Germany develop better than expected.

Revenues per region and customer segments Revenues per region and customer segments Revenues per region and customer segments Revenues per region and customer segments

www.ats.net



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Source: AT&S

AT&S Strategy

www.ats.net



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Source: AT&S

PCB Global Market is worth 52 bln USD

Source: Prismark; AT&S

Expected growth rate of 6% p.a.

Strategic focus on Communication and Medical Segment

www.ats.net



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Source: AT&S

Global HDI Market is worth 6,2 bln USD

Source: Prismark; AT&S

• Two thirds of global production takes place in Far-East (excl. Japan) by today• In 2015 almost 80% of all PCBs (by value) will be produced in Far-East (excl. Japan), only 3%

in Europe (5% today)• Production in China accounts to one third by today. In 2015 almost the half of the worldwide

production will take place in China

www.ats.net



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Source: AT&S

Top 50 Companies Revenues 2009

Source: Prismark; , bpa, JMS, ATS

www.ats.net



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Source: AT&S

Change of AT&S production volume – Austria vs. Asia

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2003 2004 2005 2006 2007 2008 2009 2010 2011

84%

76%71%

67%

53%

45%42% 41%

36%

16%

24%29%

33%

47%

55%58% 59%

64%

AT Asien

Development of net m² output as percentage value

www.ats.net



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Source: AT&S

AT&S Strategy

www.ats.net



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Source: AT&S

Services≈ 1% of sales

AT&S Business Segments – Overview

Mobile Devices(2010 ≈ 60% of sales)

Target markets/applications� Mobile Phones� PDAs� Digital Still Cameras � Camcorders� Mobile Music Players� Mobile Modems� Tablets

Industrial(2010 ≈ 29% of sales)

Target markets/applications� Industrial Control &

Automation� Medical (Diagnostics,

Therapy)� Sensor Applications� Notebooks� White & Brown Goods� Defense, Avionics

Automotive(2010≈ 11% of sales)

Target markets/applications� Engine Control� Lighting Control� Navigation Systems� Occupant Safety� Body Controls� Entertainment Electronics

www.ats.net



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Source: AT&S

Smart phone shipments are expected to grow by 19% p.a. (CAGR)

Source: GBI Research: Microprocessor Market to 2020

Global smart phone shipments (million units)

500

100

400

300

200

0201420132012

CAGR+9%

CAGR+9%

20152008 201120102009

• Smart phone shipments to hit 300 m in 2012 and 500 m in 2015

• Growth of smart phones driven by an increase in purchases especially in emerging markets in Asia-Pacific, notably China and India, and Central and Latin American countries

� AT&S has to grow it’s core business to keep pace with market developments and to meet customers’ requirements

* estimated on HDI output in Shanghai

AT&SCAGR

~13% - 15%*

AT&SCAGR

~13% - 15%*

Covered by GBI - Study Extrapolation

www.ats.net



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Source: AT&S

The automotive electronics market outgrows car production

Source:Prismark, AT&S

Automotive production and electronic contentElectr. Content

in USD

2,150

2,100

2,050

2,000

1,950

1,900

1,850

1,800

1,750

1,700

1,650

bn USD and mil. units

CAGR+10%CAGR+10%

2015

$200

2014

$182

2013

$170

2012

$159

2011

$144

2010

$127

2009

$115

2008

$133

Vehicle production (mil. units)Electronic content per vehicle ($)Electronic content total ($bn)

AT&SCAGR~10%

AT&SCAGR~10%

www.ats.net



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Source: AT&S

The medical equipment market is driven by increasing demand and new technological capabilities

Source: Global Data, AT&S

Medical equipment market (bn USD)

20122011

CAGR+8%

CAGR+8%

201520102009 20142013

• Aging population in developed economies

• Increasing awareness, affordability and improved health infrastructure in emerging economies

• Most demand not linked to discretionary consumer spending

• Self diagnosis and treatment at home becomes more common

� The medical equipment market provides significant growth opportunities to AT&S

* estimated on the industrial growth rate

AT&SCAGR~11%*

AT&SCAGR~11%*

www.ats.net



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Source: AT&S

AT&S Innovation

AT&S Innovation

www.ats.net



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Source: AT&S

These trends will offer additional growth opportunities to us

www.ats.netSource: AT&S

Markets and applications of the early 21st century

Mankind will start to connect bodies and brains with technological add-ons already in the coming decade.

Intelligent environment with approximately 1,000 processors and sensors per citizen, which are interconnected.

The generation 50+ will be the biggest and at the same time financially strongest target group. Microelectronic and sensor technology offer chances to support senior-friendly living and housing as well as new opportunities in the tele-medical services.

Robots will carry out routine work in hospitals, hotels, and many private households. They will be on the 2020 Christmas wish list of many families.

Honda and other automotive OEMs consider self-drive cars possible by 2015.

www.ats.net



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Source: AT&S

AT&S Innovation

Printed PCB

Mass ProductionMedium SeriesIndustrialisationR&D

Assembled PCB

Interconnect Density

Optical

Mechanical Integration

Embedded Component

Advanced Thermal

XORNucleuS®

ECP®

Thermal SubstrateHeavy CuEmbedded Copper

FV+++ FV+FVHDIBVPTH

Smartphone

Advanced Packaging

Medical

Solid State Lighting

Optical Data

2.5D®-R

2.5D®-C

Rigid Flex

ECP®, 2.5D® and NucleuS® are registered trademarks of AT&S AG

Anticipate, InnovateMarket-driven development focussedon future competitive advantage

ExecuteDecision, investment and projectexecution to ensure rapid time tomarket

OptimiseLeadership through process selectionand continuous efficiencyimprovement

ALIVH®

ALIVH®

www.ats.net



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Source: AT&S

AT&S Financials

www.ats.net



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Source: AT&S

Key Financial Ratios

9M 9M 9M 9M 2010/112010/112010/112010/11 Margin Margin Margin Margin

6M 6M 6M 6M 2010/112010/112010/112010/11 MarginMarginMarginMargin

Total revenues 364,8 242,7

Gross profit 71,6 19,6% 46,1 19,0%

EBITDA 1) 76,368 20,9% 49,1 20,3%

EBIT 1) 40,3 11% 25,5 10,5%

PBT 36,45 10% 24,5 10,1%

Net income 29,6 8,1% 19,1 7,9%

EPS 2) 1,27 0,82

Avg. # sharesoutstanding 3) 23.323 23.323

1) EUR m, adjusted for non-recurring items 2) EUR 3) Thousands of shares

www.ats.net



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Source: AT&S

Net Gearing Ratio slightly increased over the last three months – in total additional 32m Euros needed to be financed through third party debts. The remaining 52m Euros were financed throughinternal cash generation.

Net-CAPEX is in line with the capacityexpansion for Shanghai and Nanjangud – line11 in Shanghai went live – for India no ramp upcosts are expected from January 2011 ongoing.

Capex & Gearing

7

19

30

36

7%

17%

23%

29%

-2

4

10

16

22

28

34

40

Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11

Net

CA

PE

X

(EU

R m

)

0%

8%

16%

24%

32%

40%

Net

CA

PE

X /

Sal

es

187

162148 154

71% 72%62%

76%

-

30

60

90

120

150

180

31/03/10 30/06/10 30/09/10 31/12/10

Net

Deb

t (E

UR

m)

-5%

10%

25%

40%

55%

70%

85%

100%

Net

Gea

ring

www.ats.net



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Source: AT&S

In EUR '000 31/12/2010 31/03/2010

Trade and other receivables 108.055 90.976

Inventory 61.015 38.700

Trade and other payables -107.620 -60.436

Current provisions -5.958 -5.478

Working capital as reported 55.492 63.762

Not cash-effective additions to CAPEX 34.581 8.144

Working capital and change YTD 90.073 -18.167 71.906

Effects of exchange rate changes YTD 335

Change in Working Capital YTD -17.833

Working capital/Sales 18.5% 19.3%

Working Capital

www.ats.net



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Source: AT&S

Gearing Ratio

In EUR '000 31/12/2010 30/09/2010

Short-term borrowings 108.839 85.613

Long-term borrowings 95.721 98.920

Total debt 204.560 184.533

- Cash and cash equivalents (3.788) (8.514)

- Financial assets, current (14.051) (14.279)

- Financial assets, non-current (96) (96)

Net debt 186.624 161.645

Equity 247.243 223.922

Net gearing ratio 76% 72%

www.ats.net



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Source: AT&S

AT&S Outlook

www.ats.net



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Source: AT&S

AT&S Outlook

NAN Plant II / Phase1Chongqing New Plant

EX

IST

ING

PLA

NT

S

SHA L11

01/2010 09/2010

03/2010 09/2010

05/2011 Q2 2011 Q1 2013?

07/2011

IN PRODUCTION RAMP-UP 2011/12

Production facilities / installed capacity[m²]*:710k

Nanjangud Shanghai Seoul (Korea)

380k

120k

Klagenfurt Leoben Fehring

300k130k

400k

Chongqing

210k t.b.d.

SHA L12

IN PLAN

SHA L13

www.ats.net



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Source: AT&S

AT&S OutlookGuidance 2010/11*

*Assuming stable exchange rate differencies and no economic down turn ** estimated cash spent – very hard to predict due to cross overs over the years

� Expected revenues of EUR 470m – 500m � EBIT margin ≥ 9% � Effective tax rate of around 20%� Investments (CAPEX): EUR 100m- 130m**� Net Gearing ≤80% by year-end.

www.ats.net



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Source: AT&S

The long term funding strategy must be that the net debt equity ratio is not exceeding 80% and that sufficient cash is generated over the next years to repay the current net debts level (targeted duration of 5 years)

Internal cash generation ~ 60 - 70mln (10% ebit margin)

Depreciation ~ 70 - 80mln (11% afa)

Cash earnings ~ 130 - 150 mln euro

Working capital mvt ~ 20 mln euro (18% target)

Interest & dividends ~ 20 mln euro (15% of cash earnings)

Cash Cycle - FundingTotal capex requirements ~100 - 130 mln euro needed to ensure two digit growth

Net funding position 0 ~ 20 mln

+

=_

_

=

www.ats.net



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Source: AT&S

AT&S Capital Markets

AT&S Capital Markets

www.ats.net



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Source: AT&S

AT&S - Stock Details

Listing Vienna Stock Exchange, Prime Standard

Indices ATX Prime, WBI

Reuters RIC (A) ATSV.VI

Bloomberg (A) ATS AV

# of shares issued 25.9 million

# of shares outstanding 23.3 million

Calendar

10 May 2011 results FY 2010/11

www.ats.net



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Source: AT&S

AT&S Capital Markets – share price

AT&S clearly outperformes the ATX Prime Index

.

© direktanlage.at 23.03.2011

AT&S is currently covered by 6 analysts. 5 analysts recommend BUY.The expected price range was lifted to 24 Euro. The current consensus is roughly by around 20,00 Euro.Estimated EPS are around 1,50 Euro for 2010/11.

www.ats.net



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Source: AT&S

AT&S - Well Positioned for the Future

Many thanks for your attention!

-- at&s company presentation

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