at&s first choice for advanced applications€¦ · company presentation may 2018. company...
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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
Company PresentationMay 2018
Company Presentation 1
Table of Contents
AT&S at a glance
AT&S Financials
Appendix
Company Presentation 2
What guides us
VISION
FIRST CHOICE FOR ADVANCED APPLICATIONS
MISSIONWe set the highest quality standards in our industry
We industrialize leading-edge technology
We care about people
We reduce our ecological footprint
We create value
Company Presentation 3
AT&S – outstanding 2017/18 results
High-end interconnect solutionsfor
Mobile Devices, Automotive, Industrial, Medical
Applications and Semiconductor Industry
Highest revenue
in AT&S history€ 991.8 m (+21.7%)
EBITDA€ 226.0 (+72.6%)
22.8%EBITDA margin
46.5% Equity ratio
9,981employees
Dividend proposal
0.36 €
Company Presentation 4
4
Market Segments & Product Applications served by AT&S
Computer, Communication,
Consumer
Smartphones, Tablets, Wearables, Ultrabooks,
Solid State Drives, Microserver
...
Industrial
Machine-2-Machine Communication,
Robots, Industrial Computer,
X2X Communication
…
Automotive
Advanced Driver Assistance Systems,
Emergency-Call, X2X Communication
…
Medical
Patient Monitoring, Hearing Aids,
Pacemaker, Neurostimulation, Drug
Delivery, Prosthesis
…
IC substrates
High Performance Computer, Microserver
…
Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
Company Presentation 5
AT&S – Key Facts
542590
667
763815
992
102 127168 168
131*
226
31 5490 77*
7*
90
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Revenue EBITDA EBIT
Good track record1 Balanced portfolio/Global customer base2
7%
Split revenue: Business Unit, FY 2017/18
Split revenue: Customer Region, FY 2017/18based on sold to party
+9%+13%
+14%+7%
* Based on ramp-up effects for new plants in China
Revenue growth
€ in millions
66%
34%Mobile Devices & Substrates
Automotive, Industrial, Medical
63%21%
10%6% Americas
Germany/Austria
Asia
Other European countries
+21.7%
Company Presentation 6
Global footprint ensures proximity to supply chain & cost efficiency
1,008* 394* 1,143* 2,361* 4,694* 307*
Plant Shanghai China
Plant AnsanKorea
Plant ChongqingChina
Plant Leoben, HeadquartersAustria
Plant FehringAustria
Plant NanjangudIndia
AT&S plant & sales office
AT&S sales office
AT&S Headquarters
*Staff, Average, FTE, FY 2017/18; 73 employees in other locations
Company Presentation 7
Strategic focus on high-end technologies
AT&S Revenue structure in H1 2017/18 – based on technologies
High-endHDI PCBs andIC substrates
~ 30%
Single-sided (SS), double-sided (DS), multilayer- (ML), flex and rigid-flex (RF) PCBs
~ 70%
High-end technology share > 75% HDI and any-layer PCBs, Embedding
Complementary technology share: < 25% SS, DS, ML,
Flex, RF
Structure of general PCB market – based on technologies
Source: Prismark PCB Report 2Q17/ August 2017; AT&S Controlling
Company Presentation 8
Our competitive advantages
Strategic focus on high-end technologies and applications
Outstanding process know-how and process efficiency
First high-end IC substrates manufacturer in China
Scale innovation and technology leverage between customer segments
Highest quality
Company Presentation 9
Driving the future: Internet of Things (IoT) Applications Healthcare & Fitness Smart Watches and Glasses
Wearable Electronics
Smart Mobility Autonomous Driving Car2X Communication
Smart City Smart Lighting
Smart Buildings Home/Building Automatization Smart Home Devices
Smart Production/Industry 4.0 Automatization/Robotics Machine-to-Machine Communication
Smart Healthcare Connected Patient Monitoring Systems Connected Consumer Healthcare Devices
Smart Energy Smart Metering
Building Blocks of IoT Modules: Sensing, Connectivity, Energy Storage/Harvesting, Power Management
30-50 billion of „Things“ will be connected in 2020
Wearable electronic devices offer revenue opportunities of USD 61.7bn beyond the smartphone market in 2020Source: Gartner Inc. 2016
Company Presentation 10
Driving the industry: miniaturization & modularization
?
2003/04 2013 2017 202X
TYPE Mobile Phone Smartphone Smartphone All in One
PCB 125x55mm 85x20mm 80x20mm 25x25mm?
FORM FACTOR 1 0.25 0.23 0.06?
LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm
TECHNOLOGY 1-n-1 Any-layer mSAP – Any-layer FO/SAP/mSAP
Company Presentation 11
From vision to strategy
Targets/Key PerformanceIndicators
Strategy
Expansion of technology leadership• Leading provider of new interconnect solutions• Innovation revenue rate: > 20%
Focus on high-end technologies and applications Focus on innovative solutions “More than AT&S”
Medium-term profitable growth• Medium-term revenue target of € 1.5 billion• Medium-term EBITDA margin target of 20-25%
Focus on fast-growing and profitable applications Highest service level and customer orientation Operational excellence Focus on cash flow generation
Creation of shareholder value• Long-term ROCE ≥ 12%
Sustainable business development with focus on ROCE Transparent dividend payout
Vision:“First choice for advanced application”
Sustainable Management• Fulfill and further develop standards in the area
of quality, environment, health & safety…
Human resource development Uphold business ethics
Company Presentation 12
R&D as the key for technological leadership
6.6% R&D Quota
(in % in relation to revenue) 231 Patents
International R&D Partners
As of FY 2017/18 (ended 31/03/2018)* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
40.4%Innovation Revenue Rate *
R&DHeadquarters
AustriaIndustrialization at the respective
production site
Company Presentation 13
Future positioning as leading high-end interconnect solutions provider
Core businessNew technologies and interconnect
solutions
Extended technology toolbox
Additional customers
Additional applications
Broader positioning in the value chain
+
Mo
re t
han
AT&
S
Overview of the transformation from a high-endPCB manufacturer to a high-end interconnect solutions provider:
Company Presentation 14
Table of Contents
AT&S at a glance
AT&S Financials
Appendix
Company Presentation 15
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
Company Presentation 16
Revenue and EBITDA development
€ in millions
16
Split revenue FY 2017/18: Business Unit
Split revenue FY 2017/18: Customer Region
16
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%
Company Presentation 17
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
Company Presentation 18
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
Company Presentation 19
AT&S – Stock ProfileListing: Vienna Stock Exchange,
Prime Standard
Indices: ATX Prime, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Record date Annual General Meeting 25 June 2018
24th Annual General Meeting 05 July 2018
Ex-dividend day 24 July 2018
Record date dividend 25 July 2018
Dividend payment day 26 July 2018
Results for the first quarter 2018/19 31 July 2018
Results for the second quarter 2018/19 31 July 2018
Financial Calendar Shareholder structure
# of shares outstanding 38.85m
Average daily volume*: ~ 115,000 shares
Performance 1 year*: +107%
Dividend proposal 2017/18: € 0.36 per share
* 02/05/2017 – 30/04/2018
Company Presentation 20
Table of Contents
AT&S at a glance
AT&S Financials
Appendix
Company Presentation 21
AT&S Product Portfolio – I
ECP®:Embedded Component Packaging IC substrates Substrate-like printed circuit boards
mSAP
Embedded Component Packaging allows to embed active/passive components (e.g. wafer level dies) within the layers of a PCB – contributes to miniaturization.
IC substrates serve as interconnection platform withhigher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs .
Substrate-like PCBs (mSAP technology) are the next evolution of high-end HDI PCBs with higher density: Line/Space < 30 micron.
Production siteLeoben, Shanghai Chongqing Chongqing, Shanghai
ApplicationsDevices such as smartphones, tablets, digitalcameras and hearing aids
High-end processors for Computer, Communication, Automotive, Industrial
Mobile applications like smartphones
Company Presentation 22
HDI any-layer printed circuit
boards
HDI microvia printed circuit boards – high density interconnect
Multilayer printed circuit boards
Double-sided printed circuit boards
IMS printed circuit boards – insulated metal
substrate
Further technological enhancement to HDI microvia: All electrical connections in HDI any-layer boards consist of laser-drilled microvias. Advantage: further miniaturization, and higher performance and reliability. AT&S produces HDI any-layer in 4 to 12 layers.
HDI: high density interconnect, meaninglaser-drilled connections (microvias). HDI is first step towards miniaturization.AT&S can produce 4-layerlaser PCBs up to 6-n-6HDI multi layer PCBs.
Found in almost every area of industrial electronics. AT&S produces printed circuit boards with 4 to 28 layers, in quantities from individual prototypes to small batches and mass production.
Used in all areas of electronics. AT&S focuses on double-sided printed circuit boards with thicknesses in the range of 0.1-3.2mm.
IMS: insulated metal substrate. Primary function: heat dissipation for use mainly with LEDs and power components.
Production siteShanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring
ApplicationsSmartphones, Tablets, Notebooks
Mobile phones and nearly all electronic applications including automotive (navigation, infotainment and driver assistance systems)
Used in all electronic applications including touch panels, and in products ranging from aircraft to motorcycles, from storage power plants to solar arrays
Primarily industrial and automotive applications
Lighting industry
AT&S Product Portfolio – II
Company Presentation 23
Flexible printed circuit boards
Semi-flexible printed circuit boards
Rigid-flex printed circuit boards
Flexible printed circuitboards on aluminum
Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid printed circuit boards.
More limited bend radius than flexible printed circuitboards. The use of astandard thin laminatemakes them a cost-effective alternative.
Combine theadvantages of flexibleand rigid printed circuitboards, yielding benefitsfor signal transmission,size and stability.
Used when installing LEDsin car headlights, forexample, where theprinted circuit board isbonded to an aluminumheat sink to which theLEDs are then attached.
Production siteAnsan, Fehring Fehring Ansan Ansan
ApplicationsNearly all areas ofelectronics, includingmeasuring devices andmedical applications
Automotive applications Industrial electronics,such as productionmachines and industrialrobots
Lighting, automotive,building lighting
AT&S Product Portfolio – III
Company Presentation 24
Management
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:
Degree in Production Engineering from Rosenheim University of Applied Sciences
Monika Stoisser-Göhring, CFO
CFO since 2017 Previous positions include:
Since 2011 with AT&S in senior positions in Finance and Human Resources
Various positions at international accounting and tax consulting companies
Education: Training as Tax Consultant Degree in Business Administration
from Karl-Franzens University Graz
Heinz Moitzi, COO
COO since 2005; with AT&S since 19811)
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
1)He was already with the founding company of AT&S
Company Presentation 25
Milestones in the Group’s history
1987Founding of the Group, emerging
from several companies owned by
the Austrian State Owned
Industries
1994Privatization and
acquisition by Messrs
Androsch, Dörflinger, Zoidl
1999Initial public offering on Frankfurt Stock Exchange
(„Neuer Markt“). Acquisition of Indal Electronics
Ltd., largest Indian printed circuit board plant
(Nanjangud) – today, AT&S India Private Limited
2002Start of production at new Shanghai
facility – one of the leading HDI
production sites in the world
2010Start of production
at plant II in India
2009New production direction: Austrian
plants produce for high-value niches
in the automotive and industrial
segment; Shanghai focuses on the
high-end mobile devices segment
2008AT&S change
to Vienna Stock
Exchange 2006Acquisition of Korean
flexible printed circuit
board manufacturer,
Tofic Co. Ltd. – today,
AT&S Korea Co., Ltd.
2015AT&S again achieves record high sales and earnings for
financial year 2014/15 and decides to increase the investment
program in Chongqing from € 350 million to € 480 million
2011 Construction starts on new
plant in Chongqing, China
Capacity increase in
Shanghai by 30%
2013AT&S enters the IC substrate
market in cooperation with a
leading manufacturer of
semiconductors 2016AT&S starts serial production of
IC substrates at the plant in
Chongqing
Company Presentation 26
A sustainability benchmark in the industry
26
“Highest resourceefficiency“
“Highest standards at all locations worldwide“
“Highesttransparency“
* Basis for CO2 output: 2015/16
Sustainability reporting since 2012/13 Gold recognition from the Responsible
Business Alliance Conflict minerals reporting Public CDP reporting on climate change
(C score) and water (B score)
Resourceconsumptionstable/declining
Revenue growth Environment: ISO 14001 Safety: OHSAS 18001 Energy: ISO 50001 Quality: ISO 9001, ISO/TS 16949
AS/EN 9100, DS/EN 13485
Company Presentation 27
DisclaimerThis presentation is provided by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, having its headquarter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), and thecontents are proprietary to AT&S and for information only.
AT&S does not provide any representations or warranties with regard to this presentation or for the correctness and completeness of the statements contained therein, and noreliance may be placed for any purpose whatsoever on the information contained in this presentation, which has not been independently verified. You are expressly cautioned notto place undue reliance on this information.
This presentation may contain forward-looking statements which were made on the basis of the information available at the time of preparation and on management‘s expectationsand assumptions. However, such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments, results, performanceor events may vary significantly from the statements contained explicitly or implicitly herein.
Neither AT&S, nor any affiliated company, or any of their directors, officers, employees, advisors or agents accept any responsibility or liability (for negligence or otherwise) for anyloss whatsoever out of the use of or otherwise in connection with this presentation. AT&S undertakes no obligation to update or revise any forward-looking statements, whether asa result of changed assumptions or expectations, new information or future events.
This presentation does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither this presentationnor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation does not constitute any financial analysis or financial research andmay not be construed to be or form part of a prospectus. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen orresident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which wouldrequire any registration or licensing within such jurisdiction.