AT&S First choice for advanced applications - Company Presentation August 2019 www.ats.net
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AT&S
First choice for advanced applications
Company Presentation
August 2019
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben
Tel +43 (0) 3842 200-0
www.ats.net
Table of Contents
AT&S at a glance
AT&S Financials
Market Update & Outlook
Annex
Company Presentation 1
What guides us
VISION
FIRST CHOICE FOR ADVANCED APPLICATIONS
MISSION
We 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 2
AT&S – a world leading high-tech PCB & IC substrates company
Outperforming
High-end interconnect solutions
for market growth
Mobile Devices, Automotive, Industrial,
Medical Applications and Semiconductor
over the last
decade
#1
Industry high-end PCB producer
worldwide *
Among the top € 1bn
PCB producers revenue in
worldwide* FY 2018/19 Efficient global production
footprint with
6
~ 10,000 plants in Europe and Asia
Employees**
* For CY 2018
Source: Prismark
** For AT&S FY 2018/19
Company Presentation 3
Global footprint ensures proximity
to supply chain & cost efficiency
AT&S plant & sales office
AT&S sales office
AT&S Headquarters
974* 404* 1,241* 2,369* 4,461* 289*
Leoben, Headquarters Fehring Nanjangud Chongqing Shanghai Ansan
Austria Austria India China China Korea
*Staff, Average, FTE, FY 2018/19; 73 employees in other locations
Company Presentation 4
Market Segments & Product Applications served by AT&S
Computer,
Communication, IC substrates Automotive Industrial Medical
Consumer
Smartphones, Tablets, High Performance Advanced Driver Machine-2-Machine Patient
Wearables, Ultrabooks, Computer, Microserver Assistance Systems, Communication, Monitoring, Hearing Aids,
Solid State Drives, Emergency-Call, X2X Robots, Industrial Pacemaker,
Microserver Communication Computer, Neurostimulation, Drug
X2X Communication Delivery, Prosthesis
Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical
Company Presentation 5
AT&S – Key Facts
1 Strong growth track record 2 Balanced portfolio/Global customer base
Revenue split by segment: Q1 2019/20**
992 1,028
815
763 35%
667 +4% Mobile Devices & Substrates
+22%
+7% 65% Automotive, Industrial,
+14%
Medical
226 250 221 +0.3% 223
168 168
90 131* 90 117 52
Revenue split by customer: Q1 2019/20**
77* 35 (based on customer’s headquarters)
7* 18
(1)
2014/15 2015/16 2016/17 2017/18 2018/19 Q1 Q1
2018/19 2019/20 9%
7%
Americas
Revenue EBITDA EBIT Revenue growth 18% Germany/Austria
7%
66% Asia
€ in millions
*Based on ramp-up effects for new plants in China Other European countries
6
** Figures in parentheses refer to same period last year
Company Presentation 6
Strategic focus on high-end technologies
AT&S Revenue structure in FY 2018/19 – based on technologies
High-end technology share > 75%
HDI and any-layer PCBs,
Embedding, IC substrates
High-end
HDI PCBs and
IC substrates
~ 30%
Complementary technology
share: < 25%
SS, DS, ML,
Single-sided (SS), double-sided (DS), multilayer- (ML),
Flex, RF
flex and rigid-flex (RF) PCBs
~ 70%
Structure of general PCB market – based on technologies
Source: Prismark, AT&S
Company Presentation 7
More than AT&S
Broadening the service range and opening up of new business opportunities
Leading
provider of
interconnect
Technology solutions
Innovation power
Module integration
Clear focus on dedicated applications
services
Build-up of additional
capabilities
Substrates for HPC
modules
Diversification of
PCBs/substrates application and
for modules customer portfolio
mSAP / SLP High growth
potential
IC substrates Technology leader
Printed circuit boards
One of the leading
Leading producer of high- producers
end PCB
Company Presentation 8
Competitive Advantage
Leading provider of high-end technologies and applications
• Highly advanced position in miniaturisation and modularisation
• Technology advantage at mSAP due to timely extension of the IC substrates technology
Long-standing customer relationships with technology and market leaders
Market outperformance and high 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
Successful industrialisation of leading-edge technologies combined with highest quality
• Outstanding process know-how, productivity and efficiency
Solid balance sheet with strengthened equity ratio of 45.0% in 2018/19
• Attractive dividend policy
Company Presentation 9Market players in the high-end segment
Market position HDI Technology (2018)
HDI
Rank Supplier Country/Region mSAP IC Substrates
(revenue in USD millions)
1 AT&S AUT 838
2 Unimicron TWN 799
3 Compeq TWN 779
4 TTM USA 681
5 Meiko JPN 472
6 Tripod TWN 443
7 Zhen Ding TWN 349
8 DAP KOR 276
9 CMK JPN 259
10 SEMCO KOR 245
Source: Prismark
Company Presentation 10Driving 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 11R&D as the key for technological leadership
7.4%
R&D Quota
(equivalent to € 75.7 million)
279
Patents
International International
R&D Partners R&D Partners
R&D 35.3%
Headquarters Innovation Revenue Rate *
Austria
Industrialization at the respective
production site
As of FY 2018/19
* Revenue generated with products with new, innovative technologies introduced to the market within the last three years
Company Presentation 12Table of Contents
AT&S at a glance
AT&S Financials
Market Update & Outlook
Annex
Company Presentation 13Highlights in Q1 2019/20
Solid quarter despite strong seasonality and challenging environment
Revenue flat at € 222.7 million
Diversified product, technology and customer portfolio supported to compensate for market fluctuations
Strong demand for IC substrates
Robust development of Medical & Healthcare
Demand in Mobile Devices and Industrial subdued
EBITDA lower at € 34.9 million
Previous year period was impacted by positive product mix
Due to challenging market environment
• Strong saisonality in Mobile Devices as well as market-related underutilization
• Weaker demand in Automotive and Industrial
• Lower manufactured value due to saisonality and visibility
As preparation for future applications higher R&D expenses (run-up costs for modularization, miniaturization and future applications)
EBITDA margin at 15.7% (PY: 23.4%)
EBIT at € (0.6) million in line with EBITDA
Company Presentation 14 14Table of Contents
AT&S at a glance
AT&S Financials
Market Update & Outlook
Annex
Company Presentation 15PCB & IC substrates market – Overview
Forecast for the total PCB & IC substrates market IC substrates
until 2024: CAGR of 5.6%
− Networking and AI processors trigger demand for high-value IC
substrates
− Cloud computing drives data center expansions
− Increase in server demand
− Processor heterogenious integration drives further increase in IC
substrate unit size and the number of substrate layers
Automotive
− Despite a temporary slowdown, future growth is strongly driven by
autonomous driving (e.g. RADAR, LIDAR, cameras, …), “Vehicle-to-X”
communication modules and power module PCBs for electrification
Consumer
− Wireless connectivity of smart devices enabling IoT drives need for
high-end PCBs and substrates for module applications
Communication
− Despite a flat development in 2019 smartphone unit sales, high-end
PCB demand for mainboards and modules will grow due to additional
functionalities like 5G, AI and sensors
− 5G infrastructure will increase demand PCBs and substrates for
mainboards as well as modules
€ in billions
Source: Prismark, June 2019; Yole, May 2019
Company Presentation 16 16Growth opportunities in all segments
Focus on high-end applications
Communication Consumer / Computer Automotive Industrial / Medical
Increased digital New applications Autonomous driving Automation
networking (IoT) (smartwatch, speakers, RADAR, LiDAR, camera Machine-to-machine
Additional functionality robots, VR, …) 5G communication (5G)
Edge & cloud computing Artificial Intelligence
5G Artificial Intelligence
Networking Electrification of the drive
Artificial Intelligence Mobile therapy and
Increasing electronics share
Big data / data server per vehicle diagnostic devices
High end market growth ~10% CAGR (until 2024)
Company Presentation 17 17Supply chain in the electronics industry
New business opportunities through entry into the module market
Module Design Chip Chip Assembly PCB Substrate Product/ Product
Manufacturing & Test Manufacturing Manufacturing Module Ownership
(Front-end) (Back-end) Assembly
Design
03 Module Integration Service Provider
houses
02
OEMs
Module Board Manufacturer (SLP)
Fab-less
01 01
OSATs ODM/EMS/
Wafer Foundries OEMs
IC Players OSATs
PCB Substrate
Company Presentation 18 18Outlook for 2019/20 Revenues and EBITDA outlook continues to be confirmed Volatile and currently weaker market environment for mobile devices, in the Automotive and Industrial segment causes low visibility On an annual basis the Management Board expects revenue to remain stable and an EBITDA margin in the range of 20 to 25% Investment (CAPEX) activity in the current financial year Maintenance investments and minor technology upgrades in the amount of € 80 to 100 million Depending on the market development, an additional € 100 million for capacity and technology expansions Investments in IC substrates increase from € 80 million up to € 180 million Company Presentation 19
Table of Contents
AT&S at a glance
AT&S Financials
Market Update & Outlook
Annex
Company Presentation 20AT&S – Stock Profile
Listing: Vienna Stock Exchange, # of shares outstanding 38.85m
Prime Standard Dividend yield: 1.6 %
Indices: ATX, ATX Prime, Vönix, WBI
Thomson Reuters (A): ATSV.VI
Bloomberg (A): ATS:AV
Shareholder structure
Company Presentation 21AT&S Product Portfolio – I
ECP®: IC substrates Substrate-like printed circuit boards
Embedded Component Packaging mSAP
Embedded Component Packaging allows to embed IC substrates serve as interconnection platform with Substrate-like PCBs (mSAP technology) are the next
active/passive components (e.g. wafer level dies) within higher density (Line/Space < 15 micron) between evolution of high-end HDI PCBs with higher density:
the layers of a PCB – contributes to miniaturization. semiconductors (Chips) & PCBs . Line/Space < 30 micron.
Production site
Leoben, Shanghai Chongqing Chongqing, Shanghai
Applications
Devices such as smartphones, tablets, digital High-end processors for Mobile applications like smartphones
cameras and hearing aids Computer, Communication, Automotive, Industrial
Company Presentation 22AT&S Product Portfolio – II
HDI HDI microvia printed Multilayer printed circuit Double-sided printed IMS printed circuit boards
any-layer printed circuit circuit boards – high boards circuit boards – insulated metal
boards density interconnect substrate
Further technological HDI: high density interconnect, Found in almost every area of Used in all areas of electronics. IMS: insulated metal substrate.
enhancement to HDI microvia: meaning industrial electronics. AT&S AT&S focuses on double-sided Primary function: heat
All electrical connections in HDI laser-drilled connections produces printed circuit boards printed circuit boards with dissipation for use mainly with
any-layer boards consist of laser- (microvias). HDI is first step with 4 to 28 layers, in quantities thicknesses in the range of 0.1- LEDs and power components.
drilled microvias. Advantage: towards miniaturization. from individual prototypes to 3.2mm.
further miniaturization, and AT&S can produce 4-layer small batches and mass
higher performance and laser PCBs up to 6-n-6 production.
reliability. AT&S produces HDI HDI multi layer PCBs.
any-layer in 4 to 12 layers.
Production site
Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring
Applications
Smartphones, Tablets, Mobile phones and nearly all Used in all electronic Primarily industrial and Lighting industry
Notebooks electronic applications including applications including touch automotive applications
automotive (navigation, panels, and in products ranging
infotainment and driver from aircraft to motorcycles,
assistance systems) from storage power plants to
solar arrays
Company Presentation 23AT&S Product Portfolio – III
Flexible printed Semi-flexible printed Rigid-flex printed Flexible printed circuit
circuit boards circuit boards circuit boards boards on aluminum
Used to replace wiring and More limited bend radius than Combine the Used when installing LEDs
connectors, allowing for flexible printed circuit advantages of flexible in car headlights, for
connections and geometries that boards. The use of a and rigid printed circuit example, where the
are not possible with rigid standard thin laminate boards, yielding benefits printed circuit board is
printed circuit boards. makes them a cost-effective for signal transmission, bonded to an aluminum
alternative. size and stability. heat sink to which the
LEDs are then attached.
Production site
Ansan, Fehring Fehring Ansan Ansan
Applications
Nearly all areas of Automotive applications Industrial electronics, Lighting, automotive,
electronics, including such as production building lighting
measuring devices and machines and industrial
medical applications robots
Company Presentation 24Management
Andreas Gerstenmayer, CEO Monika Stoisser-Göhring, CFO Heinz Moitzi, COO
Joined AT&S as CEO in 2010 CFO since 2017 COO since 2005;
Previous positions include: Previous positions include: With AT&S since 19811)
18 years of work experience at Siemens, Since 2011 with AT&S in senior Previous positions include:
including Managing Director with positions in Finance and Human Various management positions
Siemens Transportation Systems GmbH Resources within AT&S
Austria and CEO of the Drive Technology Various positions at international Measurement engineer with Leoben
business unit in Graz from 2003 to 2008 accounting and tax consulting University of Mining and Metallurgy
Partner at FOCUSON Business companies Education:
Consulting GmbH after leaving Siemens Education: Degree from Higher Technical
Education: Certified Tax Consultant College of Electrical Engineering
Degree in Production Engineering from Degree in Business Administration
Rosenheim University of Applied from Karl-Franzens University Graz
Sciences
1)He was already with the founding company of AT&S
Company Presentation 25Milestones in the Group’s history
1987 1994 1999 2002
Founding of the Group, emerging Privatization and Initial public offering on Frankfurt Stock Exchange Start of production at new Shanghai
from several companies owned by acquisition by Messrs („Neuer Markt“). Acquisition of Indal Electronics facility – one of the leading HDI
the Austrian State Owned Androsch, Dörflinger, Zoidl Ltd., largest Indian printed circuit board plant production sites in the world
Industries (Nanjangud) – today, AT&S India Private Limited
2010 2009 2008
Start of production New production direction: Austrian AT&S change
at plant II in India plants produce for high-value niches to Vienna Stock
in the automotive and industrial
segment; Shanghai focuses on the
Exchange 2006
Acquisition of Korean
high-end mobile devices segment
flexible printed circuit
board manufacturer,
2011 2013 Tofic Co. Ltd. – today,
Construction starts on new AT&S enters the IC substrate AT&S Korea Co., Ltd.
plant in Chongqing, China market in cooperation with a
Capacity increase in leading manufacturer of
Shanghai by 30% semiconductors
2018 2019
Start of the second AT&S is the global
2015 2016 2017 expansion phase at number one for high-
AT&S again achieves record high sales and AT&S starts serial production Successful introduction and plant 1 in Chongqing end printed circuit
earnings for financial year 2014/15 and of IC substrates at the plant optimisation of the mSAP technology boards
decides to increase the investment program in in Chongqing in Shanghai and Chongqing
Chongqing from € 350 million to € 480 million
Company Presentation 26A sustainability benchmark in the industry
“Highest resource “Highest standards at all “Highest
efficiency“ locations worldwide“ transparency“
YoY change in % Sustainability reporting since 2012/13
Revenue +3.6% Environment: ISO 14001 Gold recognition from the Responsible
Safety: OHSAS 18001 Business Alliance
Intensities
Energy: ISO 50001 Public conflict minerals reporting (in-line
CO2 footprint -5.0% Quality: ISO 9001, IATF 16949 with Responsible Minerals Initiative)
Water withdrawal -6.5% AS/EN 9100, DS/EN 13485 Public CDP reporting on climate change
Waste -15.8%
(C score) and water (B- score)
Company Presentation 27Disclaimer
T his presentation is pro vi de dby AT & S Austria Tec hnologie & Systemtec hnik Aktiengesellsc haft, ha ving its hea dqu arter at Fabriksgasse 13, 8700 Leoben, Austria (“AT&S”), an dt he
contents are proprietary to AT&S and for information only.
AT&S does not pro vi de any re pr esentations or w
arranties w it hregar dto t his presentation or for t he correctness an dcom pleteness of t he statements containe dt herein, an dno
reliance may be place dfor any pur pose wha tsoe ver on t he information containe din t his presentation, whi c h has not been in de pen dently verifie d. You are e xpressly cautione dnot
to place undue reliance on this information.
T his presentation may contain for war d-looking statements whi c hwe re ma de on t he basis of t he information a vailable at t he time of pre paration an don management‘s e xpectations
an dassum ptions. Ho we ver, suc hstatements are by t heir very nature sub ject to kno wn an dunknown risks an duncertainties. As a result, actual de velo pments, results, performance
or events may vary significantly from the statements contained explicitly or implicitly herein.
Ne it her AT&S, nor any affiliate dcom pany, or any of t heir directors, officers, em ployees, a dvisors or agents acce pt any res ponsibility or liability (for negligence or othe r w
i se) for any
loss wha tsoe ver out of t he use of or ot her w
ise in connection w it ht his presentation. AT&S un dertakes no obligation to u pdate or re vise any for w ar d-looking statements, whe t her as
a result of changed assumptions or expectations, new information or future events.
T his presentation does not constitute a recommen dation, an offer or in vitation, or solicitation of an offer, to subscribe for or purc hase any securities, an dneit her t his presentation
nor anyt hing containe d herein s hall form t he basis of any contract or commitment wha tsoe ver. T his presentation does not constitute any financial analysis or financial researc han d
may not be construe dto be or form part of a pros pectus. T his presentation is not directe dat, or inten de dfor distribution to or use by, any person or entity t ha t is a citi zen or
resi dent or locate din any locality, state, country or ot her ju ris diction whe re suc h distribution, pu blication, a vailability or use w
o uld be contrary to la wor regulation or whi c h wo ul d
require any registration or licensing within such jurisdiction.
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