at&s company presentation

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

April 2014

AT&SCompany 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.

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AT&S – the quality leader of PCB production

Best positioned in highly attractive market

IC-Substrates – the foundation for future success

Transformation model

Appendix

Agenda

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Focus on high -end production capabilities

� AT&S is one of the world’s leading manufacturers of high valued circuit boards

� AT&S operates in attractive niche growth markets

� AT&S is committed to the highest quality standards

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A wide spectrum of high-end products

4

History

2013 � Cooperation with leading semiconductor manufacturer to enter IC substrate market

2011 � Acquisition of land and start of construction of a high-end plant in Chongqing, China – AT&S’s seventh high-end manufacturing facility

2010 � Relocation of Group Headquarters from Vienna to Leoben-Hinterberg

� Ramp-Up plant II in Nanjangud

2009 � Restructuring and reorientation of Leoben plant towards high-value industrial business

� Focusing Shanghai on high-end mobile devices segment

2008 � Relisting on the Vienna Stock Exchange (Prime Market)

2006 � AT&S buys flexible plant in Korea

2002 � Start of production in new AT&S plant in Shanghai – one of the world’s leading HDI* facilities

1999 � AT&S listed on the Neuer Markt at the Frankfurt Stock Exchange

� AT&S buys PCB plant in India

1987 � Foundation of AT&S

* High Density Interconnect (laser-drilled printed c ircuit boards )

Management

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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 business unit 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)

Karl M. Asamer, CFO

� Joined AT&S as CFO in 2014� Previous positions include:

� Managing Director of GEKA Group in Germany� Commercial Managing Director of Sell GmbH in Germany

� Education:� Degree: doctorate in business administration in Linz, Austria

► Seasonality and new product launches twice a year

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Business SegmentsCharacteristic Applications

55%

SegmentRevenue

share*

*) Based on external revenues for FY 2012/13

45%

Mobile Device

Industrial & Automotive

Advanced Packaging

Target market diversification provides for superior earnings stabilityand a close relationship with selected technology leaders in each market segment

Selected Market leaders

Siemens

General Electric

EADS

Hella

Continental

Texas Instruments

TDK-EPCOS

Sony

LG

Motorola

Blackberry

Canon

Samsung

Nokia

Huawei

ZTE

Apple

► Higher predictability and fewer product launches

FY 2012/13 FY 2013/14

� Includes the segment Advanced Packaging (still in the process of being established) as well as group management and financial activities

FY 2012/13 FY 2013/14

Others

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Successful shift to Asia

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

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Production plants

Headquarters

Presence

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

Sustainable growth play

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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

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Appendix

Agenda

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� Size of components continues to decrease

� Increased number of applications per area

�Further digitalisation in more and more application s

Source: Fotoarchiv AT&S AG

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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 in Western Europe lead to increased demand for medical diagnostics and electronic medical devices

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 (August 2013)

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$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$55,039

$56,732$59,301

$61,555$63,894

$66,442

$0,000

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1980

1981

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1983

1984

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1986

1987

1988

1989

1990

1991

1992

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1994

1995

1996

1997

1998

1999

2000

2001

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2011

2012

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2014

2015

2016

2017

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Technological leadership and quality focus

HDI PCB manufacturer ranking

Source: Prismark, August 2013

Rank(2012) Supplier Revenue($m)

1 Unimicron 782

2 489

3 Compeq 468

4 CMK 467

5 Ibiden 455

6 SEMCO 449

7 TTM 390

8 Zhen Ding 345

9 Tripod 260

10 Unitech 242

ATS – Ready for the next step

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

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

� But no further increase of HDI capacities planned

� Leverage on leadership in miniaturisation &integration

Focus on entering the field of IC-substrates

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Appendix

Agenda

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2

3

4

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What is an IC -Substrate?

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Substrate (15µm – 7µm)

PCB (50µm-25µm)

Chip (40nm – 10nm)

Performance 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:

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Main difference

PCB commodity vs. HDI vs. IC -Substrate

Source: Prismark, August 2013 , company estimates

Market size

No. of competitors

Prod-cap. China [%]

Tech. Spec. (L/S)

Quality standards

Level of automation

Entry barriers

PCB Commodity HDI

28.020 M$2012 7.918 M$2012

> 2000 > 50

48% 45%

-40 µm 40 µm

high high

high high

low high

IC Substrate

8.935 M$2012

< 20

5%

10-12 µm

very high

very high

very high

Level of complexity

6.530 6.222

7.615 8.400

8.935 9.550

10.080 10.670

11.285 11.990

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

08 09 10 11 12 13e 14e 15e 16e 17e

IC Substrate market prediction

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

Source: Japan Marketing Survey Co. Ltd., IC Substrate Annual Report 2012 (Dec 2012)

17% 16%

16%16%

15%

16%

38%36%

34%32%

29%28%

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

� Limited number of participants for IC-substrates

� High barriers to entry

� Key technology for future density requirements

� According to general market and industry expectations IC-substrates fabrication plants generate approx. 1.1 Dollars of revenues for every Dollar invested

� Higher operational margin expected compared to HDI technology

Projekt Chongqing

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Project Status Chongqing

Q1 Q2 Q3 Q4CY 2013

Q1 Q2 Q3 Q4CY 2014

Q4CY 2012

Q1 Q2 Q3 Q4CY 2015

Q1 Q2 Q3 Q4CY 2016

Signing

Completion ofInfrastructure

Start Equipment Installation

Start Equipment Characterisation

Certification

Start SeedTraining

Start Equipment Ordering

Plant Lay-outProduct-Specification

Ramp-up Volume Production

�

�

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� Investment as of 31/12/2013: EUR 94m*

*Additions to assets

� �

�

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Appendix

Agenda

1

2

3

4

5

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Path for sustainable growth

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

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

� 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

� Enter the high-end IC substrate market

Strategic focus during transformation period

New Business – IC-substratesCore Business – HDI PCBs

� AT&S will further improve its technology portfolio to strengthen its market position but will not incr ease HDI capacity in the next three years

� Investments in core activities planned to be in the € 20-40m range per annum

� Planned investment of c. € 350m (excl. ramp-up costs) in Chongqing in IC-substrates over the next three years

Financ-ing

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Appendix

Agenda

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2

3

4

5

Distribution of Distribution of Distribution of Distribution of TurnoverTurnoverTurnoverTurnover

*EUR 451m of revenue in Q1-3 2013/14** Revenue split is based on place of performance

23Figures are based on internal management information systems and are subject to change | Source: AT&S AG

*EUR 451m of revenue in Q1-3 2013/14** Revenue split is based on customer‘s headquarter

24%

12%

52%

12%

Distribution of Turnover* Ship to Party**

Austria/Germany

Rest of Europe

Asia

Canada/USA 25%6%

15%

54%

Distribution of Turnover*by Headquarter**

Austria/Germany

Rest of Europe

Asia

Canada/USA/Mexico/Others

/Mexico/Others

Mobile Devices business

Sales increased by 10%*

(EUR 252.3m Q1-3 2013/14 vs. EUR 229.2m Q1-3 2012/13)

� good capacity utilisation in Shanghai plant

� strong demand from smartphone and tablet customers

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Segment Segment Segment Segment TurnoverTurnoverTurnoverTurnover

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Industrial & Automotive business

Sales increased by 12%*

(EUR 195.5m Q1-3 2013/14 vs. EUR 174.6m Q1-3 2012/13)

� continuing high demand for high-end applications

� stable development for industrial business

Distribution of Segment Turnover**

in EURm

**Figures are based on internal management information systems and are subject to change | Source: AT&S AG*in comparison to Q1-3 2012/13

69.8

55.9

68.7

59.6

90.7

59.1

68.1 68.0

74.5

66.4

90.1

66.3

87.7

62.8

-

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 12/13

Q2 12/13

Q3 12/13

Q4 12/13

Q1 13/14

Q2 13/14

Q3 13/14

Statement of Profit or Loss

In EUR '000 (unless otherwise indicated)

01.04. - 31.12.2013 01.04. - 31.12.20121)

before non-recurring

items

after non-recurring

items

before non-recurring

items

after non-recurring

items

STATEMENT OF PROFIT OR LOSS

Revenue 450,947 405,121

produced in Asia 76% 75%

produced in Europe 24% 25%

EBITDA 103,142 100,138 74,576 74,576

EBITDA margin 22.9% 22.2% 18.4% 18.4%

EBIT 46,462 43,458 21,131 21,131

EBIT margin 10.3% 9.6% 5.2% 5.2%

Net income 33,441 30,437 5,589 5,589

Cash Earnings 90,088 87,084 59,034 59,034


1) Adjusted according to IAS 19 revised

Statement of Financial Position

In EUR '000 (unless otherwise indicated) 31.12.2013 31.03.20131)

STATEMENT OF FINANCIAL POSITION

Total assets 771,367 726,663

Total equity 396,231 304,844

Net debt 112,301 217,409

Net gearing ratio 28.3% 71.3%

Net working capital 99,569 102,679

Net working capital / revenue 16.6% 19.0%

Equity ratio 51.4% 42.0%



Statement of Cash Flows

In EUR '000 01.04. -31.12.2013

01.04. -31.12.20121)

CASH FLOW

Net cash generated from operating activities 82,070 28,260

Net cash used in investing activities -69,866 -32,950

Net cash generated from financing activites 13,182 18,522

Net increase in cash and cash equivalents 25,386 13,832

CAPEX, net 69,717 32,844



Net Gearing reached 28%.CAPEX related mainly to Chongqing Q3 2013/14 EUR 26m.

Development of Capital Investment


8

11

29 30

-

5

10

15

20

25

30

Q4 12/13 Q1 13/14 Q2 13/14 Q3 13/14

Ne

t C

AP

EX

( i

n E

UR

m)

217 199 203

112

-5%

10%

25%

40%

55%

70%

85%

100%

-

30

60

90

120

150

180

210

240

270

Q4 12/13 Q1 13/14 Q2 13/14 Q3 13/14

Net

Gea

ring

Net

Deb

t (E

UR

m)

Change of Term Structure


Short Term Borrowings

< 1 yearLong Term Borrowings

>1 year

Debt Structure 30/09/2013

EUR 167mEUR 138m

Short Term Borrowings

<1year

Long Term Borrowings

>1year

Debt Structure 31/12/2013

EUR 169m

EUR 46m

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 sharesof sharesof sharesof shares outstanding post right issue outstanding post right issue outstanding post right issue outstanding post right issue 38.9m

CalendarCalendarCalendarCalendar

Annual results 2013/14 8 May 20148 May 20148 May 20148 May 2014

Annual General MeetingAnnual General MeetingAnnual General MeetingAnnual General Meeting 3 July 20143 July 20143 July 20143 July 2014

Dividend Payment Dividend Payment Dividend Payment Dividend Payment 24 July 201424 July 201424 July 201424 July 2014

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Shareholder structure pre and post transaction

To find out more – visit www.ats.net

31

at&s company presentation

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