20130416 at&s company presentation london...seasonality and new product launches twice a year 7...

AT&S Company Presentation

Disclaimer

1

Despite a diligent preparation of this presentation the information contained herein has not been independently verified and we assume no liability for the content or any action based on this presentation. We do not give any warranty, guarantee or commitment, neither explicitly nor implicitly. No reliance should be placed on the fairness, accuracy, completeness or correctness of this information or opinions contained herein and neither AT&S nor any of its employees assume responsibility for the completeness or accuracy of the information contained or not in this presentation. The presentation does not include and does not constitute or form part of any offer whatsoever, nor does it constitute or form part of any kind of prospectus.This presentation contains certain forward-looking statements. These are based on management’s views and assumptions and involve known and unknown risks and uncertainties. Actual results may differ materially from those projected or implied in such forward-looking statements. Forward-looking information involves risks and uncertainties that could significantly affect expected results.

This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

2

AT&S – the quality leader of PCB production

Best positioned in highly attractive market

IC-Substrates – the foundation for future success

Mid-term strategy and measures

Investment highlights

Appendix

Agenda

1

2

3

6

4

5

3






Appendix

Agenda

1

2

3

6

4

5

Management team – introduction

4

Andreas Gerstenmayer, CEO� Joined AT&S as CEO in 2010

� Previous positions include:

� 18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems GmbH Austria and CEO of the Drive Technology businessunit in Graz from 2003 to 2008

� Partner at FOCUSON Business Consulting GmbH after leaving Siemens

� Education and other positions:

� Member of the Research Council of Styria

� Degree in Production Engineering from Rosenheim University of Applied Sciences

Heinz Moitzi, CTO

� CTO since 2005; with AT&S since 1981

� Previous positions include:

� Various management positions within AT&S

� Measurement engineer with Leoben University of Mining and Metallurgy

� Education:

� Degree from Higher Technical College of Electrical Engineering

� Studied electrical installation with Stadtwerke Judenburg (Judenburg municipal utility company)

Sustainable growth play

5

Technology leader for high-end PCBsI

Profitable and sustainably growing marketII

Best positioning vs. Asian competitorsIII

Leveraging on technological leadershipIV

Focus on high -end production capabilities

� Production of tailor made PCBs

� Design service for customer solutions

� ECP® technology

6

► Seasonality and new product launches twice a year

7

Attractive business mix

Characteristic Applications

56%

SegmentRevenue

share*

*) Based on AT&S financials 1.April – 31.December 2012

44%

Mobile Device

Industry & Automotive

Advanced Packaging

Target market diversification provides for superior earnings stabilityand a close relationship with the technology leader s in each market segment

Market leaders

Siemens

General Electric

EADS

Hella

Continental

Texas Instruments

TDK-EPCOS

Sony

RIM

LG

Samsung

Huawei

Nokia

ZTE

Apple

► Higher predictability and fewer product launches

FY 2011/12 FY 2012/13

FY 2011/12 FY 2012/13

� Growing business withcomplementary know-how

8

Successful shift to Asia – fit for future growth

Production split by region and year, revenue and ma rgin development

� Continuous shift of production volumes to Asia

Local presence in key markets & access to emerging Asian smartphone players

� Strong presence in both Asia and Europe

� Close to the main mobile device assembly sites

� Advanced know-how to capture local market growth

Global set-up with access to key markets

9

Production plants

Headquarters

Sales offices

Production plant under construction

International presence and key technology productio n overview

Headquarters: Leoben-Hinterberg

Target region: globalKey technologies: HDI, special products, protoypes, quick turnaround business, rigid-flex PCBs

Plant: Chongqing(under construction)

Key production capability after completion: IC substrates

Plant: Ansan

Target region: Korea, Europe

Key technologies: flexible and rigid-flex PCBs

Plant: Shanghai

Target region: globalKey technologies: HDI volume

business

Plant: Fehring

Target region: EuropeKey technologies: double-sided,

flexible, semi-flexible, rigid-flex PCBs

Plant: Nanjangud

Target region: Europe, IndiaKey technologies: double-sided and

multilayer PCBs

9 8

14 13 13

9

20

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

� Continuous expansion of IP portfolio

Patent applications

� Over 300 R&D employees

� Sustainable R&D spend (c. 6% of sales on average)

� 15% of revenues generated by products launched within the last three years

Innovation – the foundation for success

R&D as key growth driver Selected R&D Partners

IP portfolio

� Current IP portfolio comprises 82 patents and patent families, most of which secure proprietary production processes

� 5 trademarks (ECP ®, 2.5 D ®, Nucleus ®, ALIVH ®, AT&S ®)

� Rigorous protection of intellectual property rights

� Continuing expansion of patent portfolio

10

11






Appendix

Agenda

1

2

3

6

4

5

On the edge of a new growth cycleGlobal PCB turnover ($m)

� The PCB Market is a fast growing market� We are just at the beginning of a new growth cycle

Source: Prismark; Forecast Prismark (February 2013)

12

$6,465$6,734

$7,437

$10,179$11,682

$11,071$12,348

$18,117$19,946

$20,185$21,500

$18,974$18,212

$20,842

$22,837$26,375

$29,703$32,559

$34,288$36,058

$42,642

$33,237$32,109

$34,485

$38,753

$42,424

$47,626

$50,269$50,786

$44,155

$52,469

$55,409$54,310

$56,071$58,629

$60,915$63,291

$65,654

$0,000

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

13

Technological leadership and quality focus

HDI PCB manufacturer ranking

Source: Prismark

ATS – Quality leader in PCB manufacturing

� Technology leader in the market for high-end printed circuit boards

� Leadership in miniaturisation and integration

� AT&S’ high-end interconnection solutions give customers a decisive competitive edge

� Highly innovative solutions implemented with high process quality on an industrial scale

� Environmentally sustainable processes

� Quality and efficient management of natural resources is at the heart of our plants’ setup

Unimicron

Compeq

TTM Technologies

Multek

Ipiden

Foxconn

Samsung

CMK

LG Inotek

� Size of components continues to decrease

� Increased number of applications per area

�Further digitalisation in more and more application s

Source: Daimler, Google

14

Benefiting from global megatrends

Source: ifixit

Transistor density to further increase

Source: Wikipedia (Henry‘s law)

Miniaturisation and increase of battery life

� Moore’s law : Every two years, the number of transistors per chip area doubles

iPad 1 vs. iPad 2

� More and more communication technology is being integrated into industrial solutions

� Increased health consciousness and demographic change western Europe lead to increased demand for medical diagnostics and electronic medical devices

15






Appendix

Agenda

1

2

3

6

4

5

IC-Substrates – a logical next step for AT&S

Year Technical Development min. L/S [µm]

Multi Layer

HDI Any Layer

Advanced Packaging

PCB

HDI Micro Via

IC Substrate

100

40

15

25

60

HDI Anylayer +

1982

1998

2005

2010

2014

2016 8

Core Business

AT&S PCB Technology Road AT&S PCB Technology Road AT&S PCB Technology Road AT&S PCB Technology Road MapMapMapMap

New Business

16

IC-Substrates in a nutshell

17

Substrate (15µm – 7µm)

PCB (50µm-25µm)

Chip (40nm – 10nm)

Main influencing factorsPerformance increase(Moores Law)

Size reduction PCB (Trend: Miniaturisation)

1

2

3 Technical parameter (~ 25µm) (Physical process border)

3

2

1

Mitochondrion – 1µm DNA – 1nmHair – 100µm

Scale:

18

Main differences

Market size

No. of competitors

Prod-cap. China [%]

Tech. Spec. (L/S)

Quality standards

Level of automation

Entry barriers

PCB Commodity HDI

30.530 M$2011 7.423 M$2011

> 2000 > 50

48% 45%

-40 µm 40 µm

high high

high high

low high

IC Substrate

8.636 M$2011

< 20

5%

10-12 µm

very high

very high

very high

PCB commodity vs. HDI vs. IC -Substrate

Source: Prismark, company estimates

IC Substrate market development

IC-Substrates – an attractive niche market

19

2.6383.025

3.565

4.977

6.467

7.058 6.959

5.911

8.102 8.636

8.230

9.793 10.429

11.106 11.829

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

02 03 04 05 06 07 08 09 10 11 12e 13e 14e 15e 16e

IC Substrate market [$m] Market characteristics & impact for AT&S

Source: Prismark

17% 16%

16%16%

15%

16%

38%36%

34%32%

29%28%

55% 55% 52% 50% 49% 47%

� Limited number of participants for FC substrates

� High barriers to entry

� Key technology for future density requirements

� For every Dollar invested we expect approx. 1.2 Dollars of revenues p.a.

� Higher operational margin expected compared to HDI technology

Requirements AT&S’ USP

Best-positioned to enter IC -Substrates

�Highest quality

standards� Quality leadership

� First-choice partner for industry leaders

Time-to-market � Construction of Chongqing site already started mid 2011

�

Processknow-how

� Technological leadership in high-end PCB production

� Know-how synergies from core business and patented chip embedding technology �

Industry collaboration

� Collaboration agreement with Intel Corporation

� Technological cooperation and supply agreement in place �

Ramp-upexperience

� Successful track-record of ramp-up in China

� Extensive experience in setting up new complex production processes �

20

Track-record in setting up high -tech plants

21

� The construction status in Chongqing is a significant business advantage for AT&S (time)

� AT&S has a proven track record in setting up a LCC plant in China

� AT&S has already received the facility, equipment and material specifications

� AT&S developing know how for the material handling, operational systems and technology recipes

Chongqing – Status quo & Roadmap

Control

Equipment Specification

transfer to AT&S

22






Appendix

Agenda

1

2

3

6

4

5

23

Path for sustainable growth

Strategic focus Upside potential

� Continue growth strategy (High-end Smartphones, Tablets, Ultrabooks, etc.)

� Improve GP-Margin (Portfolio management, Improve plant utilization)

� Strategic partnership with MFLEX to produce HDI rigid-flex PCBs for new applications and designs

� Increase revenue in selected market niches (medical, automotive, etc.)

� AT&S to leverage its patented chip embedding technology with a major industry player

� Enter the high margin league for technology leaders

� Estimated Capex for new plant in Chongqing of c. € 350m over the next three years

� Investment in a new high-end production line in Shanghai for a substrate technology (“interposer”)

� Earlier involvement in technology development

� New high margin business � Org. synergies Chongqing

� Earlier involvement in technology development

� Synergies within the high-margin business

� Broader IP portfolio� New business opportunities

New

Bus

ines

sC

ore

Bus

ines

s

24






Appendix

Agenda

1

2

3

6

4

5

Sustainable growth play

25

Technology leader for high-end PCBsI

Profitable and sustainably growing marketII

Best positioning vs. Asian competitorsIII

Leveraging on technological leadershipIV

� Leading innovator in the PCB industry, specialised in integration density & miniaturisation

� First choice for top players and quality leaders in each market segment

� Highly attractive market with exposure to global key megatrends

� Focus on high-quality and thus high-margin markets

� Strong production footprint in China is key for cost efficiency and crucial to serve emerging Asian players

� Partner of choice for quality components

� Advanced Packaging: One of the first manufacturers with a patented chip embedding technology (ECP®)

� IC-Substrates: The high-margin segment of the industry

26






Appendix

Agenda

1

2

3

6

4

5

Distribution of Distribution of Distribution of Distribution of TurnoverTurnoverTurnoverTurnover

27Figures are based on internal management information systems and are subject to change | Source: AT&S AG

Turnover FY 2012/13 Turnover FY 2012/13

27%

13%

47%

13%

Distribution of Turnover by Ship to Party

Austria/Germany

Rest of Europe

Asia

Canada/USA

26%7%

13%

54%

Distribution of Turnover by Headquarter

Austria/Germany

Rest of Europe

Asia

Canada/USA

Mobile Devices

Revenue remained almost unchanged year on year (EUR 297.3 million 2012/13 vs. EUR 297 million 2011/12)

� The first six months were marked by under-utilization due to delayed product launches

� In the second half, the loading factor in Shanghai was in line with expectations

� The customer portfolio was further diversified

28

Segment Segment Segment Segment TurnoverTurnoverTurnoverTurnover

28

Industrial & Automotive

Sales increased year on year to EUR 242.6 million (vs. EUR 215.7 million 2011/12):

� Demand, especially for HDI PCBs in the automotive sector continued to grow strongly

� Consistent continuation of the positive development in the medical technology segment

� Strong capacity utilization in all plants

Distribution of Segment Turnover

in EURm

Figures are based on internal management information systems and are subject to change | Source: AT&S AG

acc. to IFRS segment reporting

54.7 55.5

75.1

56.2

81.4

47.7

85.8

56.3

69.8

55.9

68.7

59.6

90.7

59.1

68.1 68.0

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

Mobile Devices Industrial & Automotive

Q1 11/12

Q2 11/12

Q3 11/12

Q4 11/12

Q1 12/13

Q2 12/13

Q3 12/13

Q4 12/13

Income Statement FY 2012/13

In EUR '000 2012/13 2011/12

CONSOLIDATED INCOME STATEMENT

Revenues 541,673 514,180

Produced in Asia (in %) 73.9 73.4

Produced in Europe (in %) 26.1 26.6

EBITDA 101,885 103,356

EBITDA margin (in %) 18.8 20.1

EBIT 30,894 42,139

EBIT margin (in %) 5.7 8.2

Net income 14,102 26,514

Cash Earnings 85,092 87,767


Balance Sheet 31 March 2013

In EUR '000 31.03.2013 31.03.2012

CONSOLIDATED BALANCE SHEET

Total assets 727,201 694,649

Total equity 312,453 283,110

Net debt 217,409 242,536

Net gearing (in %) 69.6 85.7

Net working capital 102,679 92,323

Net working capital / revenues (in %) 19.0 18.0

Equity ratio (in %) 43.0 40.8


Net Gearing Ratio was reduced to about 70%.The investment profile was significantly reduced compared with the same period last year.

Development of Capital Investment


244 255 252

217

-5%

10%

25%

40%

55%

70%

85%

100%

-

30

60

90

120

150

180

210

240

270

Q112/13

Q212/13

Q312/13

Q412/13

Net

Gea

ring

Net

Deb

t(in

EU

Rm

)

9

16

8 7

-

5

10

15

20

25

30

Q112/13

Q212/13

Q312/13

Q412/13

Ne

t C

AP

EX

( i

n E

UR

m)

AT&S - Stock Profile

ListingListingListingListing Vienna Stock Exchange, Prime Standard

IndicesIndicesIndicesIndices ATX Prime, WBI

Reuters RIC (A)Reuters RIC (A)Reuters RIC (A)Reuters RIC (A) ATSV.VI

Bloomberg (A)Bloomberg (A)Bloomberg (A)Bloomberg (A) ATS AV

# of shares issued# of shares issued# of shares issued# of shares issued 25.9m

# of shares outstanding# of shares outstanding# of shares outstanding# of shares outstanding 23.3m

CalendarCalendarCalendarCalendar

04.07.1304.07.1304.07.1304.07.13 Annual shareholder meetingAnnual shareholder meetingAnnual shareholder meetingAnnual shareholder meeting

25.07.13 Dividend payment date and 25.07.13 Dividend payment date and 25.07.13 Dividend payment date and 25.07.13 Dividend payment date and

exexexex----dividend datedividend datedividend datedividend date

23.07.13 123.07.13 123.07.13 123.07.13 1stststst Quarter ReleaseQuarter ReleaseQuarter ReleaseQuarter Release

32

To find out more – visit www.ats.net

33

20130416 at&s company presentation london...seasonality and new product launches twice a year 7...

Documents