at&s company presentation · procurement & sales: office in hong kong design capacities:...

AT&S Austria Technologie & SystemtechnikAktiengesellschaft

Martin TheyerHead of Strategy Development & CommunicationsFabriksgasse 13A-8700 Leoben

tel: +43384220015909email: [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 whatsoever, 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

Company Presentation 1

AgendaAgendaAgendaAgenda


AT&S Global FootprintAT&S Global FootprintAT&S Global FootprintAT&S Global Footprint

AT&S StrategyAT&S StrategyAT&S StrategyAT&S Strategy

AT&S FinancialsAT&S FinancialsAT&S FinancialsAT&S Financials

AT&S OutlookAT&S OutlookAT&S OutlookAT&S Outlook

AT&S Capital MarketsAT&S Capital MarketsAT&S Capital MarketsAT&S Capital Markets

AT&S InnovationAT&S InnovationAT&S InnovationAT&S Innovation


AT&S Global AT&S Global AT&S Global AT&S Global FootprintFootprintFootprintFootprint


HistoryHistoryHistoryHistory

2011 New Development Lease in Chongqing

2010 Extension of Nanjangud Plant II

2009 Relocation of volume business from Leoben-Hinterberg plant to Shanghai.Reorganization of the plant in Leoben-Hinterberg and focus on the European market.Focus on high-end segment in mobile device sector.

2008 AT&S builds a second plant in Nanjangud (India) . AT&S establishes new sales and marketing subsidiary in San Jose (California). Listing at Vienna Stock Exchange [Wiener Börse].

2007 Ramp-up Shanghai III.

2006 Ramp-up of second plant in Shanghai, China. Acquisition of the Korean flexible printed circuit board producer Tofic Co. Ltd. Relocation of the Fohnsdorf plant to Leoben. Reorganization of the plant in Leoben: split in HDI Operations and SPP Operations (former Fohnsdorf plant).

2005 Focusing on Austrian plants on European niche markets.

2003 Concentration on three business sectors: Telecom, Automotive, Industrial. AT&S listed in the new selected-technology index, TecDAX. Takeover of the printed circuit board business AIK Electronics (77%), Klagenfurt (Austria). Moving AT&S Headquarters to Vienna. Establishing a purchasing center in Hong Kong. Extension of the plant in India, increasing production by 50%.

2002 Production start-up in the new Shanghai factory. Ranking among world's top three HDI/microvia manufacturers. Signing of German Corporate Governance Code.

2000 Opening of the new logistics centre in Nörvenich, Germany. Stepwise start-up of Leoben Hinterberg II, Europe’s most modern printed circuit board factory.

1999 AT&S listed on the New Market [Neuer Markt], Frankfurt. Purchase of Indal, India’s largest printed circuit board factory in Nanjangud: AT&S India.

1998 Start-up of new production hall in Fehring.

1995/96

Conversion to a stock corporation, increase of equity capital, holdings of 212 employees.

1994 Award to the tendering group Androsch-Dörflinger-Zoidl.

1990 Founding of E+E Printed Circuit Board Holding as parent company of the three factories: AT&S Fehring, AT&S Fohnsdorf, AT&S Leoben.

1987 Foundation of AT&S.

1982 Foundation of a Voest-Alpine works in Leoben.

1977 Foundation of the Eumig branch factory in Fohnsdorf -production of single sided printed circuit boards.

1974 Foundation of Körting Electronics works in Fehring. Manufacture of television sets with outsourced printed circuit board manufacture.


AT&S a global AT&S a global AT&S a global AT&S a global footprintfootprintfootprintfootprint

Leoben-Hinterberg: Head Office ~850 people

Fehring: ~440 people

Klagenfurt: ~150 people

Shanghai: ~4,570 people

Ansan-S.Korea: ~215 people

Nanjangud-India: ~1,350 people

� Procurement & Sales: Office in Hong Kong� Design Capacities: Germany� 16 Sales Offices worldwide� 6 production facilities worldwide� 7 670 employees worldwide

AT&S GroupAT&S GroupAT&S GroupAT&S Group


AT&S is currently the

� Technology Leader in HDI and Any-Layer Boards

� Highest automated HDI factory in China

� No. 1 - ECP® supplier with real commercial and industrial set up

� Largest European PCB supplier

� Largest PCB producer in India

� Supplier of the Top Players in each targeted segment

* HDI = High Density Interconnect

AT&S Group came out of the crisis stronger

� Stronger customer relations

� Higher customer diversification


Source: AT&S

AT&S PerformanceAT&S PerformanceAT&S PerformanceAT&S Performance

44%

2010/11

488 Mio. €

9%

24%

12%

1%

28%

21%

486 Mio. €450 Mio. €

2008/09

60%

64%67%

56%

2007/08

372 Mio. €

2009/10

31%

11%

8,7%- 0,2%

- 6,9%

9,5%

Fiscal year

Other

Mobile devices

Industrial

Automotive

10%

3%2%

EBIT-margin (%)

Revenue-growth

31%

15%

27%

25%

1%

Austria+Germany

Rest of Europe

Asia

Canada/USA

Other

� Customer portfolio further diversified

� Ultra modern technology in China providegood starting point for future growth


Revenues per region and customer segments

© All figures based on internal Management Information and might changeSource: AT&S

AT&S Performance 2010/11AT&S Performance 2010/11AT&S Performance 2010/11AT&S Performance 2010/11

67,6

32,4

13,4

76,8

36,5

14,7

65,2

40,3

15,8

61,8

43,9

17,2

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

Mobile Devices Industrial Automotive

Q1 10/11

Q2 10/11

Q3 10/11

Q4 10/11

� All segments show high growth rates on a year to year basis

� Mobile Devices has saisonality inherent in itsbusiness model

AT&S AT&S AT&S AT&S StrategyStrategyStrategyStrategy


Source: Prismark; AT&S

PCB Global Market PCB Global Market PCB Global Market PCB Global Market isisisis worthworthworthworth 52 52 52 52 blnblnblnbln USDUSDUSDUSD

�� Strategic focus on Communication and Medical Segment


Source: Prismark; AT&S

Global HDI Market Global HDI Market Global HDI Market Global HDI Market isisisis worthworthworthworth 6,2 6,2 6,2 6,2 blnblnblnbln USDUSDUSDUSD

� Two thirds of global production takes place in Far-East (excl. Japan) by today

� In 2015 almost 80% of all PCBs (by value) will be produced in Far-East (excl. Japan), only 3% in Europe (5% today)

� Production in China accounts to one third by today. In 2015 almost the half of theworldwide production will take place in China


Source: Prismark; , bpa, JMS, ATS

Top 50 Company Top 50 Company Top 50 Company Top 50 Company RevenuesRevenuesRevenuesRevenues 2009200920092009


Development of net m² output as percentage value

Source: AT&S

Change Change Change Change ofofofof AT&S AT&S AT&S AT&S productionproductionproductionproduction volumevolumevolumevolume ––––Austria vs. Austria vs. Austria vs. Austria vs. AsiaAsiaAsiaAsia

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2003 2004 2005 2006 2007 2008 2009 2010 2011

AT

Asien


Source: AT&S

AT&S Business Segments AT&S Business Segments AT&S Business Segments AT&S Business Segments –––– Overview Overview Overview Overview

Mobile Devices(2010 ≈ 60% of sales)

Target markets/applications• Mobile Phones• PDAs• Digital Still Cameras • Camcorders• Mobile Music Players• Mobile Modems• Tablets

Industrial(2010 ≈ 29% of sales)

Target markets/applications• Industrial Control & Automation• Medical (Diagnostics, Therapy)• Sensor Applications• Notebooks• White & Brown Goods• Defense, Avionics

Automotive(2010≈ 11% of sales)

Target markets/applications• Engine Control• Lighting Control• Navigation Systems• Occupant Safety• Body Controls• Entertainment Electronics


HDIHDIHDIHDI----Market is expected to grow by 9% Market is expected to grow by 9% Market is expected to grow by 9% Market is expected to grow by 9% p.a. (CAGR)p.a. (CAGR)p.a. (CAGR)p.a. (CAGR)

� Growth of smart phones driven by an increase in purchases especially in emerging markets in Asia-Pacific, notably China and India, and Central and Latin American countries

� AT&S has to grow it’s core business to keep pace with market developments and to meet customers’ requirements

Pro

duct

ion

capa

city

in [M

io. m

²]

2009

10,9

2010

11,9

2011

13,1

2012

14,3

2013

15,6

2014

17,1

2015

18,6

0

5

10

15

20

AT&SCAGR

~13% - 15%*

Development of the HDI-Market

Source: Prismark 2010

CAGR+9%


Automotive production and electronic content

Source: Prismark, AT&S

The automotive electronics market The automotive electronics market The automotive electronics market The automotive electronics market outgrows car productionoutgrows car productionoutgrows car productionoutgrows car production

7160

6573

79 83 8794

0

50

100

150

200 2,150

2,100

2,050

2,000

1,950

1,900

1,850

1,800

1,750

1,700

1,6502015

$200

2014

$182

2013

$170

2012

$159

2011

$144

2010

$127

2009

$115

2008

$133

Vehicle production (mil. units)Electronic content per vehicle ($)Electronic content total ($bn)

Electr. Contentin USDbn USD and mil. units

CAGR+10%CAGR+10%

AT&SCAGR~10%

AT&SCAGR~10%


* estimated on the industrial growth rate

Source: Global Data, AT&S

The medical equipment market is driven by The medical equipment market is driven by The medical equipment market is driven by The medical equipment market is driven by increasing demand and new technological capabilitiesincreasing demand and new technological capabilitiesincreasing demand and new technological capabilitiesincreasing demand and new technological capabilities

� Aging population in developed economies

� Increasing awareness, affordability and improved health infrastructure in emerging economies

� Most demand not linked to discretionary consumer spending

� Self diagnosis and treatment at home becomes more common

� The medical equipment market provides significant growth opportunities to AT&S

Medical equipment market (bn USD)

0

50

100

150

200

250

300

350

400

450

500

20122011

CAGR+8%

CAGR+8%

201520102009 20142013

AT&SCAGR~11%*

AT&SCAGR~11%*


AT&S AT&S AT&S AT&S focusesfocusesfocusesfocuses on on on on technologytechnologytechnologytechnologydifferentiationdifferentiationdifferentiationdifferentiation versus versus versus versus mainmainmainmain competitorscompetitorscompetitorscompetitors

Strategy

� building one of the most modern and highly automated PCB plants in China

� developing and investing into newest technologies

� extending its innovation power

� supporting customers by shortening the development cycle and reducing time to markets

Wider functionality on less space in mobile devices

Increasing prevalence of electronic systems in everyday life

Rising penetration rate of communication applications

Optimise

Leadership through process selectionand continuous efficiencyimprovement


ECP®, 2.5D® and NucleuS® are registered trademarks of A T&S AGSource: AT&S


Printed PCB

Assembled PCB

Interconnect Density

Optical

Mechanical Integration

Embedded Component

Advanced Thermal

XORNucleuS®

ECP®

Thermal SubstrateHeavy CuEmbedded Copper

FV+++ FV+FVHDIBVPTH

Smartphone

Advanced Packaging

Medical

Solid State Lighting

Optical Data

2.5D®-R

2.5D®-C

Rigid Flex

ALIVH®

ALIVH®

Mass ProductionMedium SeriesIndustrialisationR&DAnticipate, Innovate

Market-driven development focussedon future competitive advantage

Execute

Decision, investment and projectexecution to ensure rapid time tomarket

AT&S AT&S AT&S AT&S FinancialsFinancialsFinancialsFinancials


© all figures based on internal Managment Information and might changeSource: AT&S

Key Financial Key Financial Key Financial Key Financial RatiosRatiosRatiosRatios 2010/112010/112010/112010/11

In EUR '00003/2011 before non- recurring

items 31.03. 2011

03/2010 before non- recurring

items 31.03. 2010

03/2011 before non- recurring

items 31.03. 2011

YTD YTD YTD YTD QTD QTD

CONSOLIDATED INCOME STATEMENT

Revenues 487.948 372.184 123.140

thereof produced in Asia (in %) 68,6 67,1 62,7

thereof produced in Europe (in %) 31,4 32,9 37,3

EBITDA 98.582 95.947 54.082 34.480 22.188 22.188

EBITDA-Marge 20,2 19,7 14,5 9,3 18,0 18,0

EBIT 49.208 46.531 10.971 -25.562 8.945 8.945

EBIT-Marge 10,1 9,5 2,9 -6,9 7,3 7,3

Net income 37.709 35.032 -1.084 -37.617 5.463 5.463

Cash Earnings 87.218 84.584 42.372 22.771 18.706 18.706


Source: AT&S

Key Financial Key Financial Key Financial Key Financial RatiosRatiosRatiosRatios 2010/112010/112010/112010/11

In EUR '000 31.03. 2011 31.03. 2010 31.12. 2010

YTD YTD YTD

CONSOLIDATED BALANCE SHEET

Total assets 575.335 483.390 603.032

Equity 229.816 208.793 247.243Equity attributable to equity holders of theparent company 229.463 208.304 246.888

Net debt 193.726 147.985 186.624

Net gearing (in %) 84,3 70,9 75,5

Net working capital 79.357 71.906 90.073

Net working capital per revenues(in %) 16,3 19,3 18,5

Equity ratio (in %) 39,9 43,2 41,0

CONSOLIDATED CASH FLOW STATEMENTNet cash generated from operating activities(OCF) 70.707 47.003 42.591

Net CAPEX 115.145 19.505 82.901


Source: AT&S

Balance SheetBalance SheetBalance SheetBalance Sheet

In EUR '000 31.03.2011 31.03.2010

Non-current assets 403.644 326.029

Current Assets

Inventories 53.376 38.700

Trade and other receivables 99.899 90.976

Financial assets 13.912 14.214

Current income tax receivables 277 117

Cash and cash equivalents 4.227 13.354

Total ASSETS 575.335 483.390

Total EQUITY 229.816 208.793

Total LIABILITIES 345.519 274.597

Total equity and liabilities 575.335 483.390


Source: AT&S

Working CapitalWorking CapitalWorking CapitalWorking Capital

In EUR '000 31.03.2011 31.03.2010

Trade and other receivables 99.899 90.976

Inventory 53.376 38.700

Trade and other payables -96.554 -60.436

Current provisions -2.698 -5.478

Working capital as reported 54.023 63.762

Not cash-effective additions to CAPEX 25.334 8.144

Working capital final and change YTD 79.357 -7.451 71.906

Effects of exchange rate changes -1.499

Change in Working Capital -8.950

Working capital/Sales 16,3% 19,3%


Source: AT&S

CapexCapexCapexCapex & & & & GearingGearingGearingGearing

The increase the gearing ratio is mainly due toCCTD movements . Total net debts increased by46m Euro

We have invested in capacity enlargement in Shanghai (HDI Line 11 was ramped up in October) and in India (new plant built in Nanjangud)

19

30

36 31

17%

23%

29% 25%

0%4%8%12%16%20%24%28%32%36%40%

-2

4

10

16

22

28

34

40

Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11

Net

CA

PE

X /

Sal

es

Net

CA

PE

X

(EU

R m

)

148 154 162

194

71%62%

72%85%

-5%

10%

25%

40%

55%

70%

85%

100%

-

30

60

90

120

150

180

31/03/10 30/06/10 30/09/10 31/03/11

Net

Gea

ring

Net

Deb

t (E

UR

m)


Source: AT&S

Cash FlowCash FlowCash FlowCash Flow

In EUR '000 31.03.2011 31.03.2010

Net cash generated from operating activites 70.707 47.003

Net cash used in investing activities (116.671) (18.254)

Net cash generated from/(used in) financing activities 36.945 (22.791)

Net increase/(decrease) in cash and cash equivalents ( 9.019) 5.958

Cash and cash equivalent at beginning of the year 13.354 7.031

Exchange gains/(losses) on cash and cash equivalents (108) 365

Cash and cash equivalents at the end of the year 4.227 13.3 54

OutlookOutlookOutlookOutlook

29* Maximum capacity of plantsSource: AT&S

AT&S AT&S AT&S AT&S increasedincreasedincreasedincreased itsitsitsits capacitycapacitycapacitycapacity bybybyby almostalmostalmostalmost 20%20%20%20%

710k

380k

120k

300k130k

400k

~ 200k

Nanjangud Shanghai Seoul (Korea)Klagenfurt Leoben Fehring Chongqing

NAN Plant II / Phase1 Chongqing New Plant

EX

IST

ING

PLA

NT

S

SHA L11

01/201012/2010

03/2010 09/2010

05/2011Q2 2011 Q1 2013

07/2011

IN PRODUCTION RAMP-UP 2011/12

Production facilities / installed capacity[m²]*:

SHA L12

SHA L13

DEVELOPMENT


Growth scenario forsees that every second HDI PCB used will be manufactured in China

AT&S AT&S AT&S AT&S acquired plot in Chongqing, acquired plot in Chongqing, acquired plot in Chongqing, acquired plot in Chongqing, ChinaChinaChinaChina

� AT&S will build one of the most modern and automated plants in China

� First step to develop the plot (120.000 sqm) as soon as possible

� Building and infrastructure will account for roughly 50 mln Euro

� High end production equipment will be in the range of 150 mln Euro investments

� Additional HDI capacity added to be in the range of 200.000 sqm

AT&S AT&S AT&S AT&S givesgivesgivesgives an Outlook an Outlook an Outlook an Outlook forforforfor 2011/12*2011/12*2011/12*2011/12*


� Expected revenues of EUR 535mln – 550mln*

� EBIT margin > 9 %*

� Effective tax rate of around 20 %

� Investments (CAPEX): EUR 130 mln plus**

� Net Gearing (long term) ≤ 80 %*

*Assuming current exchange rates** depending on the value word done© all figures based on internal Managment Information and might changeSource: AT&S


Total capex requirements ~100 - 130 mln euro needed to ensure two digit growth

Cash Cycle Cash Cycle Cash Cycle Cash Cycle ---- FundingFundingFundingFunding

Our long term funding strategy is that the net debt equity ratio is not exceeding 80% and that sufficient cash is generated over the next years to repay the current net debts level (targeted duration of 5 years)

Internal cash generation ~ 60 - 70mln (10% ebit marg in)

Depreciation ~ 70 - 80mln (11% afa)

Cash earnings ~ 130 - 150 mln euro

Working capital mvt ~ 20 mln euro (18% target)

Interest & dividends ~ 20 mln euro (15% of cash earnings)

Net funding position 0 ~ 20 mln

+

=_

_

=

Source: AT&S


AT&S Capital AT&S Capital AT&S Capital AT&S Capital MarketsMarketsMarketsMarkets


Source: AT&S

AT&S AT&S AT&S AT&S ---- Stock DetailsStock DetailsStock DetailsStock Details

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 shares issued# of shares issued# of shares issued# of shares issued 25.9 million

# of shares outstanding# of shares outstanding# of shares outstanding# of shares outstanding 23.3 million

CalendarCalendarCalendarCalendar

14th of September Annual Board Meeting

20th of October Release of 2nd Quarter Results 2010/11

.


AT&S clearly outperformes theATX Prime Index

© direktanlage.at 23.03.2011

AT&S Capital AT&S Capital AT&S Capital AT&S Capital MarketsMarketsMarketsMarkets –––– shareshareshareshare pricepricepriceprice

� AT&S is currently covered by 6 analysts.

� 5 analysts recommend BUY.

� The expected price range was lifted to 24 Euro. The current consensus is roughly by around 19,22 Euro.

� Estimated EPS are around 1,63 Euro for 2011/12.

AT&S – Well Positioned for the Future

Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!Danke für Ihre Aufmerksamkeit!


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