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

www.ats.net

AT&SFirst choice for advanced applications

Conference Call Preliminary Figures FY 2017/18May 08, 2018

08.30 am CEST

Conference Call presentation: FY 2017/18 1

Table of Contents

Market Update and Summary Business Performance

Financials

Outlook


Market development

Communication

Decline in smartphone sales volume by 2.3% for the first time in 2017

2018 – 2020 5G-capable smartphones provide for above-average growth of 2.8% p.a.

Computer

Slight decline of overall market by approx. 2.5% in 2017

Slight increase forecast for servers in 2018, while tablet sales stagnate

2018 – 2020 average growth of roughly 1.8% p.a.

Consumer

Market trend is the interconnection of devices (“Connected Devices”, “Internet of Things” – “IoT”)

2018 – 2020 average annual growth of roughly 4.3% p.a.

IC substrates

2017 slight growth with a total market volume of $ 5.4 billion

“System-in-package” or “all-in-one” modules for the integration of functions are the growth drivers for the future

2018 – 2020 growth rate of 2.8% p.a.

Development in the customer segments in the calendar year 2017


Market development

Automotive electronics

Strong growth due to continuous increase in the proportion of electronics in vehicles

Electrification, interconnection and autonomous driving are the growth drivers

2018 – 2020 growth of 3.9% p.a.

Industrial electronics

Stable growth in 2017 at 2.9% due to automation and energy efficiency

Driven by robotics, automation and Industry 4.0 activities

2018 – 2020 growth by up to 3.4% p.a.

Medical electronics

Growth in 2017 by roughly 4.8% in mobile diagnostic equipment and therapy devices

High complexity in applications such as diagnostic and imaging devices, mobile devices on and in the body

2018 – 2020 growth rates of 2.1% p.a.

Development in the customer segments in the calendar year 2017

3


Highlights in the financial year 2017/18

Very successful year 2017/18

Growth in all business segments above market average

High operating performance (utilization, yield, efficiency)

Position as technology leader in a challenging industry strengthened

Ramp-up of the new mSAP lines in record time

Operational improvement in the area of IC substrates

Successful positioning in the high-frequency segment

Balance sheet structure significantly strengthened through hybrid bond (€ 173.0 million)

AT&S again listed on the Austrian lead index ATX

Among the top performers of the Vienna Stock Exchange with share price gaining 113.8 % in FY 2017/18

Record levels for revenue, EBITDA and EBIT

4


Preliminary results for the financial year 2017/18

Revenue up 21.7% to € 991.8 million

High-end printed circuit boards for mobile devices, especially mSAP and IC substrates, contributed to revenue growth

Strong demand in the automotive, industrial, medical segments

Negative exchange rate effects amounting to €-46.8 million had an impact on revenue

Generally high operating performance and product mix improve earnings

EBITDA margin: 22.8% (PY: 16.1%)

EBIT margin: 9.1% (PY: 0.8%)

EPS improved from €-0.59 to €1.38

Capex of € 141.7 million financed from cash flow from operating activities

Equity ratio increased to 46.5% due to issue of hybrid bond

Debt repayment period (net debt/EBITDA) improved to 0.9 years

Dividend of € 0.36 (PY: € 0.1) proposed

Record levels for revenue and EBITDA

5


Revenue and EBITDA development

€ in millions

6

Split revenue FY 2017/18: Business Unit

Split revenue FY 2017/18: Customer Region

6

66%

34%Mobile Devices & Substrates

Automotive, Industrial,Medical

63%21%

10%6%

Americas

Germany/Austria

Asia

Other European countries

Revenue: YoY: + 21.7%: very good product mix, high demand and additional revenue from all plantsEBITDA: YoY: + 72.6 %: expansion capex, high operational performance, successful introduction & optimization of mSAP

199.8 199.6

286.0 280.2225.9

814.9

991.8

28.8 29.774.7 85.9

35.7

130.9

226.0

Q42016/17

Q12017/18

Q22017/18

Q32017/18

Q42017/18

FY2016/17

FY2017/18

Revenue EBITDA and margin

16.1%30.7%26.1%14.9%14.4% 15.8% 22,8%


Net CAPEX & Staff

Net CAPEXFY 2017/18: CAPEX at a high level due to mSAP upgrade and Chongqing phase 1

€ in millions

90.3

164.8

254.3240.7

141.7

2013/14 2014/15 2015/16 2016/17 2017/18

* incl. contractors, FTE, average for the period

Staff*Increase in number of employees by more than 2,900

7,0277,638

8,7599,526

9,981

2013/14 2014/15 2015/16 2016/17 2017/18


Business Development – Mobile Devices & Substrates

113.7 113.6

197.6 199.6

137.2

486.5

648.0

12.4 20.959.4 75.0

23.768.5

179.0

Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 FY 2016/17 FY 2017/18

Revenue EBITDA

Successful introduction of mSAP technology

Operational improvements in IC substrates

EBITDA improvements as a result of product mix

Very strong Q2 and Q3, seasonality in Q4

Price pressure on IC substrates remains

€ in millions (unless otherwise indicated)

FY 2016/17 FY 2017/18 Change in %

Revenue 573.0 738.9 29.0%

Revenue with external customers

486.5 648.0 33.2%

EBITDA 68.5 179.0 161.3%

EBITDA margin 12.0% 24.2% -

€ in millions; * Revenue with external customers

Revenue* and EBITDA


84.9 85.0 87.3 79.3 87.7

324.1 339.3

14.5 9.7 13.2 9.3 14.551.5 46.8

Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 FY 2016/17 FY 2017/18

Revenue EBITDA

Business Development – Automotive, Industrial, Medical Continued growth path in all sub-segments,

particularly in Industrial and Medical

EBITDA 2016/17: € 44.3 m (included a reversal of provision of € 7.2 m)

EBITDA margin impacted by negative FX effects, higher raw material prices

€ in millions (unless otherwise indicated)

FY 2016/17 FY 2017/18 Change in %

Revenue 351.5 364.9 3.8%

Revenue with external customers

324.1 339.3 4.7%

EBITDA 51.5 46.8 (9.1%)

EBITDA margin 14.6% 12.8% -

Revenue* and EBITDA

€ in millions; * Revenue with external customers


Table of Contents


Financials

Outlook


Financials FY 2017/18

High demand, additional revenue contribution mainly from both plants in Chongqing, Negative FX impact of € 46.8 m.

Generally high operational performance, successful implementation & optimization of mSAP technology

Further reduction mainly due to positive FX impact

Significantly higher earningsCapitalization of deferred taxes in AustriaReduced tax scheme in Shanghai effected

€ in thousands (unless otherwise stated)01 Apr 2016 – 31 Mar 2017 01 Apr 2017 – 31 Mar 2018

Change

YoY

STATEMENT OF PROFIT OR LOSS

Revenue 814,906 991,843 21.7%

produced in Asia 82% 84% 2pp

produced in Europe 18% 16% (2pp)

EBITDA 130,933 225,977 72.6%

EBITDA margin 16.1% 22.8% 6.7pp

EBIT 6,649 90,286 >100%

EBIT margin 0.8% 9.1% 8.3pp

Finance costs – net (17,499) (14,775) 15.6%

Income taxes (12,047) (18,992) (57.6%)

Profit/(loss) for the year (22,897) 56,519 >100%

Cash earnings 101,764 192,211 88.9%

Earnings per share (€ 0.59) € 1.38 >100%



Increase as a result of hybrid bond issue and net profit

Negative FX effects (mainly RMB-EUR and USD-EUR) of € 53.5 m. Positive: Hybrid bond issue (€ 173.0m)

In 2016/17 special net debt optimization program

Hybrid bond issue (€ 173.0m)

€ in thousands (unless otherwise stated)31 Mar 2017 31 Mar 2018 Change

STATEMENT OF FINANCIAL

POSITION

Non-current assets 1,029,363 944,267 (8.3%)

Current assets 407,331 586,172 43.9%

Equity 540,094 711,391 31.7%

Non-current liabilities 569,849 515,276 (9.6%)

Current liabilities 326,751 303,772 (7.0%)

Total assets 1,436,694 1,530,439 6.5%

Net debt 380,549 209,237 (45.0%)

Net debt/EBITDA 2.9x 0.9x (2.0pp)

Net gearing 70.5% 29.4% (41.1pp)

Net working capital 24,374 72,437 >100%

Net working capital per revenue 3.0% 7.3% 4.3pp

Equity ratio 37.6% 46.5% 8.9pp



Hybrid bond issue (€ 173.0m)

Full Capex financed from operating cash flow

€ in thousands01 Apr 2016 – 31 Mar 2017 01 Apr 2017 – 31 Mar 2018

Change

YoY

STATEMENT OF CASH FLOWS

Operating result (EBIT) 6,649 90,286 >100%

Paid/received interests (15,962) (13,875) 13.1%

Income taxes paid (12,370) (26,015) (>100%)

Non cash bearing of profit or loss 112,207 141,705 26.3%

Cash flow from operating activities

before changes in working capital90,524 192,101 >100%

Changes in working capital 45,892 (48,910) (>100%)

Cash flow from operating activities 136,416 143,191 5.0%

Cash flow from investing activities (161,148) (193,389) (20.0%)

Cash flow from financing activities 54,872 135,547 >100%

Change in cash and cash equivalents 30,140 85,349 >100%

Operating free cash flow1) (104,253) 1,492 >100%

Free cash flow2) (24,732) (50,198) (>100%)

1) Cash flow from operating activities minus Net CAPEX2) Cash flow from operating activities minus cash flow from investing activities


Table of Contents


Financials

Outlook


Market trendsMiniaturization and modularization still the main trends

15

Yole , AT&S AG (2018)

Mobile Phone

Desktop

Notebook

Smartphone

Tablet

Convertible

Internet

of

Things

AR&VR

Virtual

Reality

Artificial

Intelligence

(AI)

Smart Home

Smart Cities

Smart Speaker

Smartwatch

Datacenter/

ServerVehicle

electrificationAutonomous

driving

“real time”

Connectivity

(5G)

~ 2000 ~ 2010

COMPUTING &

CONNECTIVITY

+ SENSING + ACTUATING

~ 2020+


Outlook for 2018/19

Seasonality expected for mobile devices segment, especially in Q1

Technology development projects in CHQ I as preparation of second phase in implementation

Further expansion in CHQ II depending on market development – next evaluation in mid-2018

Technology expansion and capacity increase in the area of autonomous driving at the sites in Nanjangud (India) and Fehring (Austria) currently implemented

Maintenance investments and minor technology upgrades of roughly € 70 to 100 million

Investments in capacity and technology expansion by another € 100 million depending on market development

Outlook 2018/19: Revenue growth by up to 6% and EBITDA margin at 20 to 23%

Core business with stable and growing demand in a competitive environment


Medium-term strategy – More than AT&S

Path of value-added growth will be pursued consistently

Focus on leading position in terms of technology, quality and results

New revenue target of € 1.5 billion

EBITDA margin of 20 to 25%

Positioning as a leading high-end interconnect provider


Questions & Answers

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0

www.ats.net


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