AT & S Austria Technologie & Systemtechnik Aktiengesellschaft · VIE:ATS

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft — AT&S Austria Technologie & Systemtechnik — Investor Presentation (November 2024)

46 slides from AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's investor presentation, November 2024

  1. Slide 1: Investor Presentation H1 2024/25

    INVESTOR PRESENTATION H1 2024/25 1 Investor Presentation – H1 2024/25

  2. Slide 2: Company Snapshot

    COMPANY SNAPSHOT 2 Investor Presentation – H1 2024/25

  3. Slide 3: AT&S at a Glance

    AT&S AT A GLANCE World leading high-tech PCB and ABF substrates company ~13,500 #2 €1.55 Bn High-end PCB Employees Revenue in FY 23/24 manufacturer worldwide (1) ~800 #5 €307 MM Active patents ABF substrates EBITDA in FY 23/24 manufacturer worldwide (1) margin of 19.8% Leoben, Austria 6 + 1 (2) €3.0

  4. Slide 4: A European Company With A Scalable, Global Production Footprint

    A European Company With A Scalable, Global Production Footprint Headquarters in Austria Only non-Asian company One of two non-Asian and plants in Austria, producing IC-Substrates in companies among the China, India, South Korea significant volumes Top 50 of PCB companies and (soon) Malaysia AT&S pla

  5. Slide 5: High-End Technologies …

    HIGH-END TECHNOLOGIES … AT&S solutions enable the most advanced electronics applications and technologies High-End PCBs ABF Substrates Substrates for Modules  Printed circuit boards designed to support  ABF substrates for Flip Chip technology  Comprehensive solutions for modules the most complex,

  6. Slide 6: … To Enable High-End Applications

    … TO ENABLE HIGH-END APPLICATIONS AT&S solutions enable the most advanced electronics applications and technologies High-End PCBs Robots Smartphone Neurostimulation Consumer electronics Substrates ABF Server & cloud computing High performance computers Notebooks and 2-in-1-devices for Modules Substr

  7. Slide 7: Key Business Highlights

    KEY BUSINESS HIGHLIGHTS 7 Investor Presentation – H1 2024/25

  8. Slide 8: Big Market Trends

    BIG MARKET TRENDS Megatrend Key requirement AT&S strategic priorities BIG DATA 5G IC Substrates Efficient Data Digitalization Utilization Advanced Packaging Ambition Artificial Internet of Efficient Electrification Intelligence Things Systems PCB 8 Investor Presentation – H1 2024/25

  9. Slide 9: Printed Circuit Board Developments

    PRINTED CIRCUIT BOARD DEVELOPMENTS Electronics Solutions Main driver – Customer development Applications and players in focus Growing the volume with existing customers and further market penetration Consumer Devices CAGR 6% Revenue with Digital Infrastructure ≥€10 million/ year customer Existing cu

  10. Slide 10: Leading Global PCB Player With Broad Portfolio for the High-End

    LEADING GLOBAL PCB PLAYER WITH BROAD PORTFOLIO FOR THE HIGH-END Consumer and Computing Automotive  Smartphones  Infotainment  Wearables  ADAS  Datacenter  V2X Industrial Medical  Telecom Infrastructure  Hearing aids  Satellites  Bionics  M2X Shanghai | China Chongqing II | China Nanjangud

  11. Slide 11: IC Substrate Developments

    IC SUBSTRATE DEVELOPMENTS Microelectronics Main driver – Customer diversification Applications and players in focus High-performance computing +>50% ~14 8 5 1 AI, edge computing and IoT Existing customers FY22/23 FY23/24 FY26/27 Servers Application diversification Cloud computing Expected by FY 26/2

  12. Slide 12: Increased Data Volume Will Require Significant Performance Improvement in Processors

    INCREASED DATA VOLUME WILL REQUIRE SIGNIFICANT PERFORMANCE IMPROVEMENT IN PROCESSORS Higher level of functional integration requires more sophisticated ABF substrates Server IC 2019 Server IC 2025 8x Instead of using monolithic Required designs, various chip elements capacity are integrated as one d

  13. Slide 13: Resilient Production Network for IC Substrates

    RESILIENT PRODUCTION NETWORK FOR IC SUBSTRATES 1  Research and production centre for packaging and IC substrate 1 Leoben 2 CHONGQING  Start of production: (AUSTRIA) (CHINA) Jan-Mar 2025 2  Extensive production know- how in CHQ I since 2016  Capacity expansion through CHQ III 3  Significant capa

  14. Slide 14: Sustainability as Key Driver for AT&S

    SUSTAINABILITY AS KEY DRIVER FOR AT&S Our long-term goals What we achieved in FY 2023/24 80% Decarbonization 73.9% Recycling of all production sites of 200kg of in-house copper per Renewable energies by 2025 Renewable energies by 2030 day 38% Scope 1&2 48% Scope 3 72 nationalities Absolute reduction

  15. Slide 15: Financial Performance & Outlook

    FINANCIAL PERFORMANCE & OUTLOOK 15 Investor Presentation – H1 2024/25

  16. Slide 16: Key Developments

    KEY DEVELOPMENTS  Management Board takes over CEO responsibilities  Geschäftsjahr Plants in Kulim and Leoben start of manufacturing beginning of 2025 in einem  Weak end markets and continuous price heraus- pressure prove need for cost optimization program forderndem  Outlook for 2024/25 reduced

  17. Slide 17: H1 2024/25: Group & Business Units

    H1 2024/25: GROUP & BUSINESS UNITS in € MM  Decrease by 2% -2% Revenue -1% without currency effects  Electronics Solutions: 0%1 € 800 MM  Microelectronics: -5%1 814 800  Decrease by 27% -27% without currency effects EBITDA 489 491  EBITDA margin: -7.0pp  19.6% 31% € 157 MM  Adjusted EBITDA ma

  18. Slide 18: Q2 2024/25: Results Summary

    Q2 2024/25: RESULTS SUMMARY in € MM 0% 2 +29% YoY positive product mix/volume 452 451 effect outweighed price pressure 391 35% 345 349 28% QoQ up due to improved 28% 31% 18% 18% mix/volume effect despite price 18% 21% pressure 13% 12% Q2 23/24 Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 Revenue EBITDA margi

  19. Slide 19: Financials… Where We Come From

    FINANCIALS… WHERE WE COME FROM Overview of KPIs In € MM 3,000 +25% CAGR +9% CAGR 1,791 1,500-1,600 1,590 1,550 27-32% Mid-term 26% 25% 1,188 21% 24% 25-27% guidance 432.6 378 470 384 255 2020/21 2021/22 2022/23 2023/24 2024/25e 2026/27e Revenue Adjusted EBITDA Adjusted EBITDA margin EBITDA margin ad

  20. Slide 20: Current Year Guidance

    CURRENT YEAR GUIDANCE FY 2024/25 Revenue Approx. € 1.5 to 1.6 billion  Adjusted EBITDA margin of 24‒26% Profitability  Adjusted for start-up effects as well as one-time costs of the efficiency and cost optimization program (incl. garden leave) in the amount of approx. € 110 million Investments Net

  21. Slide 21: Mid-Term Guidance

    MID-TERM GUIDANCE FY 2026/27e Growth Revenue approx. € 3.0 billion (CAGR +25%)  EBITDA margin of 27–32% Profitability  ROCE of >12% with ramp-up of production  Net debt/EBITDA: <3 (can be temporarily exceeded) Others  Equity ratio: ~20% 21 Investor Presentation – H1 2024/25

  22. Slide 22: Strengths & Opportunities

    STRENGTHS & OPPORTUNITIES Leading high-end 1 Diversified customer 2 European company 3 technology portfolio across broad with scalable, global WHAT MAKES US STRONG NOW manufacturer industry segments production footprint High standards 4 Thriving 5 Track record of success 6 in ESG and on the megatren

  23. Slide 23: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION Investor Presentation – H1 2024/25

  24. Slide 24: Appendix

    APPENDIX 24 Investor Presentation – H1 2024/25

  25. Slide 25: Key Financial Developments

    KEY FINANCIAL DEVELOPMENTS  Successful signing of Ansan sale triggered IFRS 5 (disposal group)  Geschäftsjahr Further financing option accessed by IFC  Selection process for new factoring in einem provider in execution  heraus- Temporarily high leverage will be reduced forderndem by Ansan sale a

  26. Slide 26: Q2 2024/25 Business Unit: Electronics Solutions

    Q2 2024/25 BUSINESS UNIT: ELECTRONICS SOLUTIONS in € MM +2% YoY positive product mix/volume +35% effect outweighed price pressure 277 256 283 QoQ up due to seasonal pick-up in 218 mobile devices 209 32% 24% 18% 18% 16% Q2 23/24 Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 3rd party revenue EBITDA margin 26 I

  27. Slide 27: Q2 2024/25 Business Unit: Microelectronics

    Q2 2024/25 BUSINESS UNIT: MICROELECTRONICS in € MM -4% YoY volume growth slightly +19% overcompensated by significant price pressure 176 168 QoQ driven by positive mix/volume 135 141 26% 127 effects 20% 12% 4% 4% Q2 23/24 Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 3rd party revenue EBITDA margin 27 Investo

  28. Slide 28: H1 2024/25 Financial Position

    H1 2024/25 FINANCIAL POSITION Cash & cash equivalents Unused credit lines Balancing capital allocation in € MM  Change of factoring provider leads to a distorted picture in the second half of the year  Solid financial structure with € 901 MM cash, cash equivalents 686 648 582 and unused credit lin

  29. Slide 29: Debt Financing Overview

    DEBT FINANCING OVERVIEW Maturity of outstanding debt instruments1 in € MM 664  28.0% of debt instruments have a fixed interest rate 473 449  Current financing costs of 4.95% 371 (as of Q2 2024/25) 297  New IFC loan of € 250 MM with 2 years grace period 123 2024/25 2025/26 2026/27 2027/28 2028/29

  30. Slide 30: Agreement for Sale of AT&S Korea

    AGREEMENT FOR SALE OF AT&S KOREA  AT&S and SO.MA.CI.S. have signed agreement  Purchase price of € 405 MM (equity value)  AT&S Korea book value at € 73 MM (as at March 31, 2024)  Expected taxes of about € 80 MM (current as well as deferred)  Transaction expected to be completed in or before Marc

  31. Slide 31: High Management Focus on Working Capital

    HIGH MANAGEMENT FOCUS ON WORKING CAPITAL Working capital and relation to revenue in € MM 19.3% 10.6% 11.7% 10.3% 9.2% 10.1% 7.7% 467 323 350 322 301 325 272 154 153 133 160 185 166 166 -302 -301 -290 -339 -328 -336 -336 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2023/24 Q2 2024/25 Q2 2024/25 (in

  32. Slide 32: Cash Flow

    CASH FLOW € MM H1 23/24 H1 24/25 YoY Change in % Lower EBITDA and prepayment as CF from operating activities 341 -91 -127% well as reduced factoring activities CF from investing activities -532 -212 +60% CF from financing activities 100 337 +238% Operating free CF1 -176 -345 -96% Net CAPEX 517 254 -

  33. Slide 33: Balance Sheet

    BALANCE SHEET € MM Mar. 31, 24 Sept. 30, 24 Change in % Total assets 4,675 4,907 +5% Equity 967 980 +1% Equity ratio 20.7% 20.0% -0.7pp Net debt 1,403 1,670 +19% Net debt/ EBITDA ratio: 6.7 33 Investor Presentation – H1 2024/25

  34. Slide 34: Persistent Growth Drivers in Temporarily Difficult Environment

    PERSISTENT GROWTH DRIVERS IN TEMPORARILY DIFFICULT ENVIRONMENT Digitalization and electrification … …as continued growth drivers GLOBAL DATA … DRIVES THE VOLUME GROWTH UNDERLYING MARKET in zettabyte Substrates 291  Server and cloud computing Big  HPC/AI 5G Data  Networking/5G  Client computing A

  35. Slide 35: PCB and End Market

    PCB AND END MARKET Market size for PCBs [USD bn] +6% 65 60.5  Recovery in Computing and 60 57.0 Communication 55 50  Weak Automotive and Industrial 45 PCBs for Computer,  Continued price pressure 40 43.6 Consumer, 40.6 6% 35 Communication 30 23/24 YoY unit growth Smartphones 25 20 5% 15 PCBs for

  36. Slide 36: IC Substrates and End Market

    IC SUBSTRATES AND END MARKET Market size for Advanced Substrates [USD bn] 0% 10 9.5 9.5 9  Increased client demand 8  Classic datacenter remains weak 7  Persistent price pressure 6 2% 5 23/24 YoY unit growth Notebooks 4 3 13% 23/24 YoY unit growth Server 2 1 0 2023 2024e 36 Investor Presentation

  37. Slide 37: Application Landscape in Growth Markets

    APPLICATION LADSCAPE IN GROWTH MARKETS Used in nearly all electric devices Consumer and Industrial electronics, Datacenter and Infrastructure, Medical Classic PCB Server & cloud Automotive HPC, AI, edge, IoT For miniaturization and performance Mobile devices and wearables, computing, Advanced driver

  38. Slide 38: Cost Saving and Efficiency Program

    COST SAVING AND EFFICIENCY PROGRAM Cost saving program intensified and extended FY24/25 saving progress [Saving in € MM ] [Sustainable saving in € MM, accumulative] Cost avoidance and non-sustainable Sustainable saving 40 ~250 250+ 170 120 15 Carry over 80 FY23/24 FY24/25 FY25/26 Q1 FY24/25 H1 FY24/

  39. Slide 39: Four Strategic Fields of Action for ESG

    THE FOUR STRATEGIC FIELDS OF ACTION FOR ENVIRONMENTAL SOCIAL GOVERNANCE (ESG) E Decarbonisation & Energy S Decent & Safe Work G Sustainable supply chain With this holistic and Security and Efficiency  Occupational Health & business ethics future-oriented  Resource-efficient and and Safety  Risk M

  40. Slide 40: ESG Ratings

    ESG RATINGS Recognition from leading ESG ratings 17.3 Low Risk Update: 2024 B- Prime Update: 2023 BBB Update: 2024 B Climate Change B Water Update: 2023 71Gold Update: 2023 40 Investor Presentation – H1 2024/25

  41. Slide 41: Strategic Priorities Along Existing and New Product Segments

    STRATEGIC PRIORITIES ALONG EXISTING AND NEW PRODUCT SEGMENTS AT&S strategic priorities IC Substrates PCBs and substrate-like Advanced Packaging IC PCBs Development and scaling Substrates Optimization Marketing of proven Customer diversification Embedding technologies for: Focus on profitability and

  42. Slide 42: AT&S Expansion

    HTB3  Completion of the building: 06/2024  Customer: 3  Employees: 360 (Oct 2024) AT&S  Start of production: Jan-Mar 2025 EXPANSION THE PROGRESS KULIM  Completion of the building: 07/2024  Customer: AMD  Employees: 1,500 (Oct 2024)  Start of production: Jan-Mar 2025 42 Investor Presentation

  43. Slide 43: R&D Line: Leoben Becomes Competence Center

    R&D LINE: LEOBEN BECOMES COMPETENCE CENTER Development of IC substrates and microelectronic packages in one place Autonomy: Development of expertise for IC substrates and packaging technologies in Europe High-end PCB Independence: Only industrial research center for these technologies in Europe Coll

  44. Slide 44: Answers to the Challenges in Electronics

    ANSWERS TO THE CHALLENGES IN ELECTRONICS Transport of huge data volumes through innovative solutions for low- loss data transmission at high Rapid data growth due frequencies. to digitalization More powerful computing systems thanks to packages which connect many chips in the most efficient way. Eff

  45. Slide 45: Investments Strengthen Market Position

    INVESTMENTS STRENGHTEN MARKET POSITION HDI Technology1 ABF Substrates1 1 Compeq 1 Unimicron 2 AT&S 2 Ibiden 3 TTM 3 Nan Ya PCB 4 Unimicron 4 Shinko 5 Tripod 5 AT&S 6 Meiko 6 SEMCO 7 Zhen Ding 7 Kyocera 8 AKM Meadville 8 Kinsus 1 for CY 2023 Source: Prismark 45 Investor Presentation – H1 2024/25

  46. Slide 46: Disclaimer

    DISCLAIMER This presentation is provided by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, having its headquarter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), and the contents are proprietary to AT&S and for information only. AT&S does not provide any representations or warrant

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