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AT&S AT&S AT&S AT&S
Company Company Company Company PresentationPresentationPresentationPresentationFebruary 2013February 2013February 2013February 2013
AT&S Austria Technologie & SystemtechnikAktiengesellschaft
Martin TheyerDirector of Strategy & IR/PRFabriksgasse 13A-8700 Leoben
Tel: +43 3842 200 5909Email: [email protected]
Despite a diligent preparation of this presentation we assume no liability for the content or any action basedon this presentation. We do not give any warranty, guarantee or commitment, neither explicitly nor implicitly.Neither AT&S nor any of its employees assume responsibility for the completeness or accuracy of theinformation contained or not in this presentation. The presentation does not include and does not constituteor form part of any offer what so ever, 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 those projected or implied in such forward-looking statements. Forward-looking information involves risks and uncertainties that could significantly affect expected results.
DisclaimerDisclaimerDisclaimerDisclaimer
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OverviewOverviewOverviewOverview
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Business Business Business Business modelmodelmodelmodel
� AT&S Austria Technologie & Systemtechnik AG is the largest producer of printed circuit boards in Europe and India, and also ranks among the industry leaders worldwide in innovation and the continuing development of printed circuit board manufacturing technologies. The AT&S Group employs more than 7,500 people around the world.
� AT&S’s main business divisions are Mobile Devices, Industrial & Automotive. Its core activity is the manufacture of high-end printed circuit boards – the nerve centres of so many electronic appliances.
� AT&S is headquartered in Austria and carries out research and development in Austria and China. It has production facilities in Austria, China, India and Korea, a sales service and design centre in Germany, and a sales network spanning four continents.
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LocationsLocationsLocationsLocations
Leoben-Hinterberg: Head Quarter~755 people
Fehring: ~380 people
Klagenfurt: ~110 people
Shanghai: ~4.900 people
Ansan-Korea: ~235 people
� 6 production facilities worldwide� Purchasing & Sales Office: Hong Kong, China� Design-Center: Nörvenich, Germany� 16 Sales Offices on four continents� About 7 500 employees� R&D: Hinterberg and Shanghai – Cooperation with well-known � partners from Industry and Science
Nanjangud-Indien: ~1.040 people
Chongqing~ under construction
AT&S main focus is on highAT&S main focus is on highAT&S main focus is on highAT&S main focus is on high---- end solutions in end solutions in end solutions in end solutions in profitable profitable profitable profitable market market market market segmentssegmentssegmentssegments
Tod
ay‘s
Bus
ines
s
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� Global Player in the PCB premium class
� Top 2 HDI* any-layer supplier
� Largest PCB multilayer manufacturer in India
� Leading supplier to all OEMs of smartphones and tab lets
� Leading supplier to the European Industry & Automot ive
� Largest European PCB manufacturer
WeWeWeWe operateoperateoperateoperate in an in an in an in an atractiveatractiveatractiveatractive marketmarketmarketmarket
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Historical Historical Historical Historical CyclesCyclesCyclesCycles in in in in thethethethe PCB PCB PCB PCB ProductionProductionProductionProduction
7Source: Prismark (2012) *Estimates AT&S AG
Global Turn Over
* * * * *
• Upcoming years expected to be growth years• The average growth cycle last approx. 5.75 years based on history• The market growth for the upcoming cycle is estiamted to be approx. 6% p.a.
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The PCB The PCB The PCB The PCB maketmaketmaketmaket is growing with different is growing with different is growing with different is growing with different speeds and marginsspeeds and marginsspeeds and marginsspeeds and margins
Overall Market development
2011 2016
Market per Segments 2011 – 2016 [Mio. US $] Market per Technology 2011 – 2016 [Mio. US $]
8.636
2.1461.090
2.9753.0677.278
13.312
17.290
11.829
2.4251.462
5.486
3.816
8.268
18.331
22.471
55.794
74.087 Segment CAGR
IC Substrate 6,5%
Av. & Security 2,5%
Medical 6,0%
Industrial 13,0%
Computing 5,4%
Communication 6,6%
Automotive 4,5%
Consumer 2,6%
5,8%p.a.
8.636
9.205
7.423
22.458
5.420
2.652
11.829
13.237
11.019
27.646
6.762
3.593
55.794
74.087 Segment CAGR
IC Substrate 6,5%
Flex/R-Flex 7,5%
HDI 8,2%
SS 6,3%
ML 4,2%
DS 4,5%
5,8% p.a.
2011 2016
Overall
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OurOurOurOur StrategyStrategyStrategyStrategy –––– growthgrowthgrowthgrowth throughthroughthroughthrough innovationinnovationinnovationinnovation
0
100
200
300
400
500
600
700
800
900
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
AT
&S
Rev
enue
[ME
UR
]
AT&S AT&S AT&S AT&S hashashashas a a a a clearclearclearclear plan plan plan plan howhowhowhow totototo growgrowgrowgrow profitable profitable profitable profitable throughthroughthroughthrough innovationinnovationinnovationinnovation in in in in thethethethe nextnextnextnext yearsyearsyearsyears
AP
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Multi Layer
HDI*
Embedding*IC-Substrates
SS, DS
Core Business
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AT&S PCB Technology Road Map
Technology Road map of AT&S
Year Technical Development min. L/S [µm]
Multi Layer
HDI Any Layer
AdvancedPackaging
PCB
HDI Micro Via
IC Substrate
100
40
15
25
60
HDI Anylayer +
1982
1998
2005
2010
2014
2016 8
Core Business New Business
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WhatWhatWhatWhat isisisis a a a a substratesubstratesubstratesubstrate????
What is a substrate?
• IC carrier, „a high end PCB“• Signal routers between IC and PCB + components• Voltage routers between IC and PCB + voltage source• i.o.c. thin, planar, organic, GFR, multilayered, copper clad
laminate
Substrate footprint for Intel micro processor
IC faced (green dots)
• Pitch 135µm• Lines/spaces 12µm
PCB faced (red dots)• Pitch 400µm• Lines/spaces 35µm
Substrates are partof the package(market & industry)
PCBs are not (99.9%)Main difference
between PCB and subtrates
FCFCFCFC----BGA Shipments by SuppliersBGA Shipments by SuppliersBGA Shipments by SuppliersBGA Shipments by Suppliers
AT&S is entering a very attractive market with stellar gr owthopportunities, few players and premium margins expectat ions
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Strong Strong Strong Strong BusinesBusinesBusinesBusines Case for Chongqing PlantCase for Chongqing PlantCase for Chongqing PlantCase for Chongqing Plant
admin. building under construction
14© AT&S AG
• AT&S will have a market share of 6% once Chongqing is ful ly ramped up• Return on Investment is higher than in the HDI* segment• Cash turn over is two times higher than today• For every Dollar invested we expect one Dollar of Revenues• High entry barriers for the competition in the champions l eague
AT&S Segment AT&S Segment AT&S Segment AT&S Segment slpitslpitslpitslpit after the transformationafter the transformationafter the transformationafter the transformation
IC
Cor
e B
usin
ess
New
Bus
ines
s
57%
15
43%
<1%
Revenue SplitToday
Revenue SplitStrategic Plan
45%
29%
3%
24%
FinancialsFinancialsFinancialsFinancials
Distribution of Distribution of Distribution of Distribution of TurnoverTurnoverTurnoverTurnover
17Figures are based on internal management information systems and are subject to change | Source: AT&S AG
Turnover YTD 2012/13 Turnover YTD 2012/13
25%7%
13%
55%
Distribution of Turnover by Headquarter
Austria+Germany
Rest of Europe
Asia
Canada/USA26%
13%
50%
11%
Distribution of Turnover Ship to Party
Austria+Germany
Rest of Europe
Asia
Canada/USA
Mobile Devices
First 9 months revenues up from EUR 211m to EUR 229m
� sales reached new record high
� new products launched successfully
� good loading in Shanghai during the last 3 months
� new OEMs added to customer portfolio
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Segment Segment Segment Segment TurnoverTurnoverTurnoverTurnover
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Industrial & Automotive
First 9 months revenues up from EUR 159m to EUR 175m
� automotive growth rate of 10% YoY, HDI growth of 50% (HDI boards for Multimedia, driver assistance and lighting applications)
� medical segment grows by more than 50% => applications for medical therapy doubled within the last fiscal year especially for flex boards
� Hinterberg shows sustainable performance due to growing prototype business
� industrial development in line with the overall European economic environment
Distribution of Segment Turnover
in EURm
Figures are based on internal management information systems and are subject to change | Source: AT&S AG
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
0,0
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 FY11/12
Q2 FY11/12
Q3 FY11/12
Q4 FY11/12
Q1 FY12/13
Q2 FY12/13
Q3 FY12/13
Financial Financial Financial Financial FiguresFiguresFiguresFigures Q3 2012/13Q3 2012/13Q3 2012/13Q3 2012/13
In EUR '000 Q1 - Q3 2012/13 Q1 - Q3 2011/12
CONSOLIDATED INCOME STATEMENT
Revenues 405,121 371,754
Produced in Asia (in %) 75 72
Produced in Europe (in %) 25 28
EBITDA 74,426 75,913
EBITDA margin (in %) 18.4 20.4
EBIT 20,981 31,644
EBIT margin (in %) 5.2 8.5
Net income 5,439 21,864
Cash Earnings 58,883 66,159
19Figures are based on internal management information systems and are subject to change | Source: AT&S AG
Financial Financial Financial Financial FiguresFiguresFiguresFigures Q3 2012/13Q3 2012/13Q3 2012/13Q3 2012/13
In EUR '000 31.12.2012 31.12.2011
CONSOLIDATED BALANCE SHEET
Total assets 709,546 722,209
Total equity 289,225 289,293
Net debt 252,143 255,727
Net gearing (in %) 87.2 88.4
Net working capital 120,774 108,184
Net working capital / revenues (in %) 22.4 21.8
Equity ratio (in %) 40.8 40.1
20Figures are based on internal management information systems and are subject to change | Source: AT&S AG
No material changes in net debt and net gearing.Net investments relates to Shanghai and construction activities for Chongqing Phase I.
Development of Capital InvestmentDevelopment of Capital InvestmentDevelopment of Capital InvestmentDevelopment of Capital Investment
21Figures are based on internal management information systems and are subject to change | Source: AT&S AG
243 244 255 252
-5%
10%
25%
40%
55%
70%
85%
100%
-
30
60
90
120
150
180
210
240
270
Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13
Net
Gea
ring
Net
Deb
t(in
EU
Rm
)
21
9
16
8
-
5
10
15
20
25
30
Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13
Net
CA
PE
X (
in E
UR
m)
Investment HighlightsInvestment HighlightsInvestment HighlightsInvestment Highlights
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AT&S AT&S AT&S AT&S is overlooked and undervalued is overlooked and undervalued is overlooked and undervalued is overlooked and undervalued
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Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!
ToToToTo find out find out find out find out moremoremoremore –––– visitvisitvisitvisit www.ats.netwww.ats.netwww.ats.netwww.ats.net
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