AT&S first choice for advanced applications

Transcription

1 AT&S first choice for advanced applications How to invest in China successfully and sustainably September 2, 2015 Elke Koch, Director Investor Relations AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse13 A-8700 Leoben Tel +43 (0) info@ats.net

2 Largest European manufacturer for high-end PCBs Segment Selected Applications Selected Market Leaders Mobile Devices & Substrates Communication Computing Consumer Electronics Wearables GoPro Sony LG Canon Qualcomm Blackberry Lenovo Huawei Samsung Xiaomi ZTE Intel Apple Automotive: Advanced Driver Assistance Systems, lighting, thermal, sensors, safety, infotainment, powertrain Industrial: Instrumentation & control, power solutions, lighting Medical: Patient monitoring, therapy (e.g.mrt), diagnostic (e.g. pace makers) Osram Continental Hella Harmann Siemens EADS General Electric Automotive, Industrial, Medical 1) Based on external revenue in millions in Q1 2015/16 1

3 AT&S Key Facts Strong track record 1 Balanced portfolio / Global customer base 2 Distribution revenue: Business Unit, Q1 2015/ % +5% +9% +13% +38% 40% 60% Mobile Devices & Substrates Automotive, Industrial, Medical / / / / /15 Q1 Q1 in millions 2014/ /16 Revenue EBITDA EBIT Revenue growth Distribution revenue: Customer Region, Q1 2015/16 based on sold to party 57% 7% 23% 14% 6% Germany/Austria Other European countries Asia Americas 2

4 Global footprint ensures cost efficiency European production facilities: high mix/low volume Asian production facilities: high volume/low mix Sales network spanning three continents About ~8,500 employees AT&S plants AT&S sales offices Plant Leoben, Austria Headquarters Staff: ~ 900 Plant Fehring, Austria Staff: ~300 Plant Nanjangud, India Staff: ~1,100 Plant Chongqing, China under construction Staff: ~1,100 Plant Shanghai, China Staff: ~4,600 Plant Ansan, Korea Staff: ~300 3

5 Competitive position among Asian peers Market position HDI Technology Rank Country Supplier HDI Revenue (US$ in millions) Non HDI PCBs IC- Substrates Total revenue 1 TWN Unimicron ,148 2 TWN Compeq ,047 3 AUT AT&S KOR SEMCO ,212 1,865 5 JPN Ibiden 426-1,080 1,506 6 USA TTM ,368 7 TWN Zhen Ding 343 1,774-2,117 8 TWN Tripod 305 1,077-1,382 9 KOR DAP TWN Unitech Source: Prismark, August 2014; NTI CY2013; AT&S Strategy 4

6 One of the largest Austrian Industrial Investors in China China is AT&S largest and high-end PCB manufacturing base 2001 Beijing AT&S China project signed in Beijing by top leaders of China and Austria Shanghai Former Austria President and Mayor of Shanghai attend the Groundbreaking Ceremony. Austrian President visited AT&S Shanghai plant 2010 Shanghai 2011 Vienna Hu meeting up with Austrian President and Chairman of AT&S Supervisory Board 5

7 AT&S in China SHANGHAI Investment : 623 million Technology High-End HDI multilayer & anylayer PCBs > for mobile devices & automotive CHONGQING 2013 mid-2017: 480 million IC Substrates > for high-end processors Substrate-like PCBs > for wearables and other IoT applications Why is AT&S investing into China? Close to the electronic value chain and Asian and Chinese market Build an ecosystem to meet growing customer demand for advanced applications and high product quality Stay competitive as high volume manufacturing and high automated/efficient in operation Lift industrial benchmark and build a role model in product performance, service and corporate responsibility 6

8 Current investment project Chongqing Location: Chongqing, Central China 2 plants for 2 technologies Total tangible investment: 480m in first phase (until mid 2017) Expected ramp-up: > IC Substrates: Beginning of 2016 > Substrate-like PCBs: second half

9 Renminbi: opportunities & risks for AT&S RMB as major cost basis for AT&S: > assets > wages > base material RMB is part of natural hedging at AT&S: > early conversion of liquid funds continuously used like RMB - at higher interest rates Current devaluation: > positive effect on manufacturing costs > negative effect on equity translated into Euro Bank of China is currently one of our strategic capital market partners in China and Europe: > as financing partner > as partner for investing surplus money > as main bank for operating business in China 8

10 Renminbi: opportunities & risks for AT&S AT&S has invested more than 800 million since 2000 and wants to further invest in China to maintain the position close to the value chain and increase its technological position We support the goal to establish the RMB as global currency, since: Financing the investments in local currency would be an AT&S preference 9

11 Renminbi: opportunities & risks for AT&S In order to do so, we do need the following preconditions: > lower cost of capital for competitive interest rates > full convertibility between all currencies > currency stability on a mid term basis > no barriers between offshore and onshore money > no cash pool restrictions between China and Europe > reduction of SAFE regulation to a minimum (IC loan financing, currency conversion, export payments ) > Elimination of withholding taxes and respect double tax treaties to avoid double taxation 10

12 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 warranties with regard to this presentation or for the correctness and completeness of the statements contained therein, and no reliance may be placed for any purpose whatsoever on the information contained in this presentation, which has not been independently verified. You are expressly cautioned not to place undue reliance on this information. This presentation may contain forward-looking statements which were made on the basis of the information available at the time of preparation and on management s expectations and assumptions. However, such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments, results, performance or events may vary significantly from the statements contained explicitly or implicitly herein. Neither AT&S, nor any affiliated company, or any of their directors, officers, employees, advisors or agents accept any responsibility or liability (for negligence or otherwise) for any loss whatsoever out of the use of or otherwise in connection with this presentation. AT&S undertakes no obligation to update or revise any forwardlooking statements, whether as a result of changed assumptions or expectations, new information or future events. This presentation does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation does not constitute any financial analysis or financial research and may not be construed to be or form part of a prospectus. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. 11