at&s first choice for advanced applications€¦ · company presentation june 2020. at & s...
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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 PresentationJune 2020
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0
www.ats.net
Company Overview
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
Among the top PCB producers
worldwide
A world leading high-tech PCB & IC substrates company
* For CY 2019 Source: Prismark
** For AT&S FY 2019/20
High-end interconnect solutionsfor
Mobile Devices, Automotive, Industrial, Medical Applications and Semiconductor
Industry
Outperforming
market growth over the last
decade# 2
high-end PCB producer worldwide*
€ 1bnrevenue in FY 2019/20
~ 10,000Employees**
Efficient global production footprint with
6 plants in Europe and Asia
Company Presentation 4
Global footprint ensures proximity to supply chain & cost efficiency
977* 395* 1.315* 2.676* 4.542* 258*
Shanghai China
AnsanKorea
ChongqingChina
Leoben, HeadquartersAustria
FehringAustria
NanjangudIndia
AT&S plant
AT&S sales support office
AT&S Headquarters
*Staff, Average, FTE, FY 2019/20; 75 employees in other locations
Company Presentation 5
5
Market Segments & Product Applications served by AT&S
Computer, Communications,
Consumer Appliances
Smartphones, Tablets, Wearables, Ultrabooks,
Cameras
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 6
AT&S – Key Facts
763815
9921,028 1,001
168131*
226 250195
77*7*
90 11747
2015/16 2016/17 2017/18 2018/19 2019/20
Revenue EBITDA EBIT
(2.7%)
Strong growth track record1 Balanced portfolio/Global customer base2
7%
+7%
+22%
€ in millions*Based on ramp-up effects for new plants in China
Revenue growth
+4%
Revenue split by segment: FY 2019/20
Revenue split by customer: FY 2019/20(based on customer’s headquarters)
6
69%
31%
Mobile Devices & Substrates
Automotive, Industrial,Medical
68%
16%
8%8%
Americas
Germany/Austria
Asia
Other European countries
Company Presentation 7
Strategic focus on high-end technologies
AT&S revenue structure – 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 > 80%* HDI and any-layer PCBs,
Embedding, IC substrates
Complementary technology share: < 20%*
SS, DS, ML,Flex, RF
Structure of general PCB market – based on technologies
* for FY 2019/20Source: Prismark, AT&S
Company Presentation 8
More than AT&S
Printed circuit boards
Leading producer of high-end PCB
IC substrates
One of the leading producers
mSAP / SLP
Technology leader
PCBs/substrates for modules
High growth potential
Substrates for HPC modules
Diversification of application and customer portfolio
Broadening the service range and opening up of new business opportunities
Module integration services Build-up of additional capabilities
Technology
Innovation power
Clear focus on dedicated applications
Leadingprovider ofinterconnectsolutions
Company Presentation 9
Leading provider of high-end PCBs and IC substrates
Unique market position Broad product portfolio to serve all growth markets
Long-standing customer relationships with technology and market leaders
Technology innovator due to continuous R&D efforts
Quality benchmark with outstanding process know-how, productivity and efficiency
Growth oriented strategy Megatrend-driven markets with attractive growth potential
Address growth opportunities with incremental investments
Sustainable profitability AT&S has constantly outperformed the PCB and substrates market over the last years
EBITDA margin of 20 – 25% above industry average
Strong cash flow generation and therefore improved internal financing capabilities
Solid balance sheet and attractive dividend policy
Well positioned for the future
9
Company Presentation 10
Market players in the high-end segment10
Market position HDI Technology (2019)
Rank Supplier Country/Region mSAP IC SubstratesHDI
(revenue in US-$ millions)
1 Compeq TWN 776
2 AT&S AUT 736
3 TTM USA 716
4 Unimicron TWN 706
5 Tripod TWN 508
6 Meiko JPN 461
7 Zhen Ding TWN 428
8 Korea Circuit KOR 227
9 Founder PCB CHN 222
10 CMK JPN 220
Source: Prismark, AT&S Market Intelligence
Company Presentation 11
Driving the Industry - Miniaturization & Modularization
?
2003/04 2013 2019 202X
TYPE Mobile Phone Smartphone Smartphone All in One
PCB 125x55mm 85x20mm 60x29mm 25x25mm?
FORM FACTOR 1 0.25 0.23 0.06?
LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm
TECHN. 1-n-1 Any-layer mSAP(Sandwich structure)
FO/SAP/mSAP
Company Presentation 12
R&D as the key for technological leadership
International R&D Partners
As of FY 2019/20* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
R&DHeadquarters
AustriaIndustrialization at the respective
production site
9.5%R&D Quota
(equivalent to € 94.8 million)
30.8%Innovation Revenue Rate *
International R&D Partners
326 Patents
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0
www.ats.net
Financials
Company Presentation 14
AT&S development in FY 2019/20Satisfying operating performance despite challenging environment
Excellent crisis management helped to mitigate impact on revenue
Lower volume and unfavourable product mix in Mobile Devices segment
Strong trend at IC substrates business
Automotive segment with almost stable performance despite difficult market situation
Reduced volume in the Industrial segment
Weaker market environment in the Industrial and Automotive segment causes temporary higher price pressure
Medical & Healthcare continued positive trend
14
Company Presentation 15
Financials in FY 2019/20Revenue exceeds the one-billion-euro mark again
Revenue at € 1,000.6 million (PY: € 1,028.0 million)
EBITDA at € 194.5 million (PY: € 250.1 million)
EBIT at € 47.4 million (PY: € 117.2 million)
Operating free cash flow at € -33.4 million (PY: € 69.7 million)
Earnings per share down to € 0.34; dividend of € 0.25 proposed
15
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0
www.ats.net
Market Update & Outlook
Company Presentation 17
PCB & IC substrates market outlook
6.8 8.93.7
3.12.6
3.21.3
1.54.8
9.3
17.2
23.814.5
16.9
8.0
10.0
CY 2 0 1 9 CY 2 0 2 5
Consumer
Computer
Communication
Substrates
Medical
Industrial
Aviation
Automotive
58.0
76.6+4.7%
+2.4%
+3.8%
+2.5%
+5.6%
+11.4%
+4.5%
+2.8%
+3.1%
CAGRin US-$ billionSource: Prismark, April 2020
Company Presentation 18
Global Module Integration Service Market
in US-$ billionSource: A.T. Kearney (8/2018), AT&S (04/2020)
by application
Total annual market growth is forecast at 11.3% from 2019 to 2025(Market revenue includes services for PCB/substrate, module assembly and test)
8.713.7
5.8
9.64.0
7.9
2.3
10.2
11.2
19.2
CY 2 0 1 9 CY 2 0 2 5
Camera
Sensor
RF/Wireless
Power
Other
32.0
60.6+11.3%
+12.0%
+7.9%
+9.4%
+28.5%
+8.9%
CAGR
Company Presentation 19
Growth opportunities in all segmentsFuture trends still intact
19
New applications (smartwatch, speakers, robots, VR, …)
Edge & cloud computing
Networking
Big data / data server
Consumer / Computer
Increased digital networking (IoT)
Additional functionality
5G
Artificial Intelligence
Communication
Automation
Machine-to-machine communication (5G)
Artificial Intelligence
Mobile therapy and diagnostic devices
Industrial / Medical
Autonomous driving RADAR, LiDAR, camera 5G Artificial Intelligence
Electrification of the drive Increasing electronics share
per vehicle
Automotive
Company Presentation 20
Supply chain in the electronics industryNew business opportunities through entry into the module market
20
SubstrateManufacturing
Module Design Chip Manufacturing
(Front-end)
PCBManufacturing
Chip Assembly & Test(Back-end)
Product/Module
Assembly
ProductOwnership
OSATs
PCB
Wafer FoundriesODM/EMS/
OSATsOEMs
OEMs
Fab-less IC Players
Module Integration Service ProviderDesign houses
02
Module Board Manufacturer (SLP)
01
0
Substrate
0
Company Presentation 21
Outlook for 2020/21AT&S is well positioned to positively participate in intact market trends
Future trends not harmed by COVID-19 pandemic
Influences on customer demand in the coming months expected Product launches may be delayed in the Mobile Devices segment
Visibility in Automotive business is limited
Industrial segment continues to develop at a low level
Stable development for medical applications
Demand for IC substrates remains strong according to current forecasts
Solid performance in Q1 with revenue and EBITDA at the level of previous year
Outlook update as soon as economic framework conditions can be better quantified
Investments in the IC substrate and module business to be consistently continued Depending on market developments CAPEX for maintainance and tech-upgrade of up to € 80 million
CAPEX for strategic projects of up to € 410 million
Company Presentation 22
Medium-term guidance confirmed
Expansion of technology leadership Leading provider of new interconnect solutions Innovation revenue rate: > 20%
Focus on continued profitable growth
Revenue target of € 2 billion
Prosecution of sustainable margin improvement Medium-term EBITDA margin target of 25-30%
Creation of shareholder value Medium-term ROCE above 12%
Sustainability management 80% renewable energy Eco-balancing of product groups 30 % women in management positions
First choice for advanced applications
Technology development to module integration and capacitiy expansion
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0
www.ats.net
Annex
Company Presentation 24
AT&S – Stock ProfileListing: Vienna Stock Exchange,
Prime Standard
Indices: ATX, ATX Prime, Vönix, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Shareholder structure
# of shares outstanding 38.85m
Dividend per share*: € 0.25*Proposed to the AGM
Company Presentation 25
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 26
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 27
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 28
Management
Andreas Gerstenmayer, CEO and CFO (interim)
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
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 29
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 MessrsAndrosch, 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 productionat plant II in India
2009New production direction: Austrianplants produce for high-value nichesin the automotive and industrialsegment; Shanghai focuses on thehigh-end mobile devices segment
2008AT&S changeto Vienna StockExchange 2006
Acquisition of Koreanflexible printed circuitboard 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
2017Successful introduction and optimisation of the mSAP technology in Shanghai and Chongqing
2016AT&S starts serial production of IC substrates at the plant in Chongqing
2018Start of the second expansion phase at plant 1 in Chongqing
2019AT&S is the global number one for high-end printed circuit boards
Company Presentation 30
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.
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