AT&S First choice for advanced applications Investor and Analyst Presentation May 2018

Transcription

1 AT&S First choice for advanced applications Investor and Analyst Presentation May 2018 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Tel +43 (0)

2 Table of Contents Company Overview Strategy & Market FY 2017/18 & Outlook Annex Investor and Analyst Presentation 1

3 AT&S outstanding 2017/18 results High-end interconnect solutions for Mobile Devices, Automotive, Industrial, Medical Applications and Semiconductor Industry Highest revenue in AT&S history m (+21.7%) 46.5% Equity ratio 22.8% EBITDA margin EBITDA (+72.6%) 9,981 employees Dividend proposal 0.36 Investor and Analyst Presentation 2

4 3 Market Segments & Product Applications served by AT&S Computer, Communication, Consumer IC substrates Automotive Industrial Medical Smartphones, Tablets, Wearables, Ultrabooks, Cameras High Performance Computer, Microserver Advanced Driver Assistance Systems, Emergency-Call, X2X Communication Machine-2-Machine Communication, Robots, Industrial Computer, X2X Communication Patient Monitoring, Hearing Aids, Pacemaker, Neurostimulation, Drug Delivery, Prosthesis Segment Mobile Devices & Substrates Segment Automotive, Industrial, Medical Investor and Analyst Presentation 3

5 Our competitive advantages Strategic focus on high-end technologies and applications Scale innovation and technology leverage between customer segments Outstanding process know-how and process efficiency Highest quality First high-end IC substrates manufacturer in China Investor and Analyst Presentation 4

6 AT&S Key Facts 1 Good track record 2 Balanced portfolio/global customer base Split revenue: Business Unit, FY 2017/18 in millions % % % % % % 66% Mobile Devices & Substrates Automotive, Industrial, Medical * * 90 7* 2012/ / / / / /18 Revenue EBITDA EBIT Revenue growth * Based on ramp-up effects for new plants in China Split revenue: Customer Region, FY 2017/18 based on sold to party 10% 6% Americas 21% 63% 7% Germany/Austria Asia Other European countries Investor and Analyst Presentation 5

7 Global footprint ensures proximity to supply chain & cost efficiency AT&S plant & sales office AT&S sales office AT&S Headquarters 1,008* 394* 1,143* 2,361* 4,694* 307* Plant Leoben, Headquarters Austria Plant Fehring Austria *Staff, Average, FTE, FY 2017/18; 73 employees in other locations Plant Nanjangud India Plant Chongqing China Plant Shanghai China Plant Ansan Korea Investor and Analyst Presentation 6

8 Table of Contents Company Overview Strategy & Market FY 2017/18 & Outlook Annex Investor and Analyst Presentation 7

9 From vision to strategy Vision: First choice for advanced application Targets/Key Performance Indicators Expansion of technology leadership Leading provider of new interconnect solutions Innovation revenue rate: > 20% Medium-term profitable growth Medium-term revenue target of 1.5 billion Medium-term EBITDA margin target of 20-25% Creation of shareholder value Long-term ROCE 12% Sustainable Management Fulfill and further develop standards in the area of quality, environment, health & safety Strategy Focus on high-end technologies and applications Focus on innovative solutions More than AT&S Focus on fast-growing and profitable applications Highest service level and customer orientation Operational excellence Focus on cash flow generation Sustainable business development with focus on ROCE Transparent dividend payout Human resource development Uphold business ethics Investor and Analyst Presentation 8

10 Strategic focus on high-end technologies AT&S Revenue structure in FY 2017/18 based on technologies High-end HDI PCBs and IC substrates ~ 30% Single-sided (SS), double-sided (DS), multilayer- (ML), flex and rigid-flex (RF) PCBs ~ 70% High-end technology share > 75% HDI and any-layer PCBs, Embedding, IC Substrates Complementary technology share: < 25% SS, DS, ML, Flex, RF Structure of general PCB market based on technologies Source: Prismark PCB Report 2Q17/ August 2017; AT&S Controlling Investor and Analyst Presentation 9

11 Market trends Miniaturization and modularization still the main trends Internet of Things real time Connectivity (5G) Smartphone Tablet Convertible Smart Home Smart Cities Smart Speaker Smartwatch Datacenter/ Server Autonomous driving Vehicle electrification Mobile Phone + SENSING + ACTUATING Desktop Notebook COMPUTING & CONNECTIVITY ~ 2000 ~ 2010 ~ AR&VR Virtual Reality Artificial Intelligence (AI) Yole, AT&S AG (2018) Investor and Analyst Presentation 10 10

12 PCB & IC substrates market Overview Forecast for the total PCB & IC substrates market until 2022: CAAGR of 3.0% AT&S outperformed a flat market in the past 6 years and is set to continue to do so also in the future % 2.3% 3.1% 3.9% 4.3% 3.5% IC Substrates Military/Aerospace Industrial/Medical Automotive Consumer Communication Computing Index (2012 = 100)* * PCB & substrates market AT&S revenue AT&S outperformed the market by scaling high-end any-layer technology and by leveraging HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market. 1.8% USD in billions Source: Prismark, February 2018, Yole April 2017 * Basis 2012: PCB & substrates market: USD 55.7bn AT&S revenue: 542m Investor and Analyst Presentation 11 11

13 Driving the industry: miniaturization & modularization 2003/ X? TYPE Mobile Phone Smartphone Smartphone All in One PCB 125x55mm 85x20mm 80x20mm 25x25mm? FORM FACTOR ? LINE/SPACE 100/100µm 40/40µm 30/30µm 10/10µm TECHNOLOGY 1-n-1 Any-layer msap Any-layer FO/SAP/mSAP Investor and Analyst Presentation 12

14 Future positioning as leading high-end interconnect solutions provider More than AT&S Overview of the transformation from a high-end PCB manufacturer to a high-end interconnect solutions provider: Extended technology toolbox Additional customers Core business + New technologies and interconnect solutions Additional applications Broader positioning in the value chain Investor and Analyst Presentation 13

15 Table of Contents Company Overview Strategy & Market FY 2017/18 & Outlook Annex Investor and Analyst Presentation 14

16 Highlights in the financial year 2017/18 Record levels for revenue, EBITDA and EBIT Very successful year 2017/18 Growth in all business segments above market average High operating performance (utilization, yield, efficiency) Position as technology leader in a challenging industry strengthened Ramp-up of the new msap lines in record time Operational improvement in the area of IC substrates Successful positioning in the high-frequency segment Balance sheet structure significantly strengthened through hybrid bond ( million) AT&S again listed on the Austrian lead index ATX Among the top performers of the Vienna Stock Exchange with share price gaining % in FY 2017/18 Investor and Analyst Presentation 15 15

17 Preliminary results for the financial year 2017/18 Record levels for revenue and EBITDA Revenue up 21.7% to million High-end printed circuit boards for mobile devices, especially msap and IC substrates, contributed to revenue growth Strong demand in the automotive, industrial, medical segments Negative exchange rate effects amounting to million had an impact on revenue Generally high operating performance and product mix improve earnings EBITDA margin: 22.8% (PY: 16.1%) EBIT margin: 9.1% (PY: 0.8%) EPS improved from to 1.38 Capex of million financed from cash flow from operating activities Equity ratio increased to 46.5% due to issue of hybrid bond Debt repayment period (net debt/ebitda) improved to 0.9 years Dividend of 0.36 (PY: 0.1) proposed Investor and Analyst Presentation 16 16

18 Revenue and EBITDA development Revenue: YoY: %: very good product mix, high demand and additional revenue from all plants EBITDA: YoY: %: expansion capex, high operational performance, successful introduction & optimization of msap Split revenue FY 2017/18: Business Unit % 66% Mobile Devices & Substrates Automotive, Industrial, Medical in millions % 14.9% 26.1% 30.7% 15.8% 16.1% 22,8% Q4 2016/17 Q1 2017/18 Q2 2017/18 Revenue Q3 2017/18 Q4 2017/18 EBITDA and margin FY 2016/17 Split revenue FY 2017/18: Customer Region Investor and Analyst Presentation FY 2017/18 21% 6% 10% 63% Americas Germany/Austria Asia Other European countries 17

19 Net CAPEX & Staff Net CAPEX FY 2017/18: CAPEX at a high level due to msap upgrade and Chongqing phase 1 Staff* Increase in number of employees by more than 2, ,027 7,638 8,759 9,526 9, / / / / / / / / / /18 in millions * incl. contractors, FTE, average for the period Investor and Analyst Presentation 18

20 Business Development Mobile Devices & Substrates in millions (unless otherwise indicated) FY 2016/17 FY 2017/18 Change in % Revenue % Revenue with external customers % EBITDA % EBITDA margin 12.0% 24.2% - Successful introduction of msap technology Operational improvements in IC substrates EBITDA improvements as a result of product mix Very strong Q2 and Q3, seasonality in Q4 Price pressure on IC substrates remains Revenue* and EBITDA Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 FY 2016/17 FY 2017/18 Revenue EBITDA in millions; * Revenue with external customers Investor and Analyst Presentation 19

21 Business Development Automotive, Industrial, Medical in millions (unless otherwise indicated) FY 2016/17 FY 2017/18 Change in % Revenue % Revenue with external customers % EBITDA (9.1%) EBITDA margin 14.6% 12.8% - Continued growth path in all sub-segments, particularly in Industrial and Medical EBITDA 2016/17: 44.3 m (included a reversal of provision of 7.2 m) EBITDA margin impacted by negative FX effects, higher raw material prices Revenue* and EBITDA Q4 2016/17 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 FY 2016/17 FY 2017/18 in millions; * Revenue with external customers Revenue EBITDA Investor and Analyst Presentation 20

22 Outlook for 2018/19 Core business with stable and growing demand in a competitive environment Seasonality expected for mobile devices segment, especially in Q1 Technology development projects in CHQ I as preparation of second phase in implementation Further expansion in CHQ II depending on market development next evaluation in mid-2018 Technology expansion and capacity increase in the area of autonomous driving at the sites in Nanjangud (India) and Fehring (Austria) currently implemented Maintenance investments and minor technology upgrades of roughly 70 to 100 million Investments in capacity and technology expansion by another 100 million depending on market development Outlook 2018/19: Revenue growth by up to 6% and EBITDA margin at 20 to 23% Investor and Analyst Presentation 21

23 Medium-term strategy More than AT&S Positioning as a leading high-end interconnect provider Path of value-added growth will be pursued consistently Focus on leading position in terms of technology, quality and results New revenue target of 1.5 billion EBITDA margin of 20 to 25% Investor and Analyst Presentation 22

24 Table of Contents Company Overview Strategy & Market FY 2017/18 & Outlook Annex Investor and Analyst Presentation 23

25 AT&S Stock Profile Listing: Indices: Thomson Reuters (A): Bloomberg (A): Vienna Stock Exchange, Prime Standard ATX Prime, WBI ATSV.VI ATS:AV # of shares outstanding 38.85m Average daily volume*: ~ 115,000 shares Performance 1 year*: +107% Dividend proposal 2017/18: 0.36 per share * 02/05/ /04/2018 Financial Calendar Shareholder structure Publication of the Annual Report 2017/18 06 June 2018 Record date Annual General Meeting 25 June th Annual General Meeting 05 July 2018 Ex-dividend day 24 July 2018 Record date dividend 25 July 2018 Dividend payment day 26 July 2018 Results for the first quarter 2018/19 31 July 2018 Results for the second quarter 2018/19 31 July 2018 Investor and Analyst Presentation 24

26 Market development Development in the customer segments in the calendar year 2017 Communication Decline in smartphone sales volume by 2.3% for the first time in G-capable smartphones provide for above-average growth of 2.8% p.a. Computer Slight decline of overall market by approx. 2.5% in 2017 Slight increase forecast for servers in 2018, while tablet sales stagnate average growth of roughly 1.8% p.a. Consumer Market trend is the interconnection of devices ( Connected Devices, Internet of Things IoT ) average annual growth of roughly 4.3% p.a. IC substrates 2017 slight growth with a total market volume of $ 5.4 billion System-in-package or all-in-one modules for the integration of functions are the growth drivers for the future growth rate of 2.8% p.a. Investor and Analyst Presentation 25

27 Market development Development in the customer segments in the calendar year 2017 Automotive electronics Strong growth due to continuous increase in the proportion of electronics in vehicles Electrification, interconnection and autonomous driving are the growth drivers growth of 3.9% p.a. Industrial electronics Stable growth in 2017 at 2.9% due to automation and energy efficiency Driven by robotics, automation and Industry 4.0 activities growth by up to 3.4% p.a. Medical electronics Growth in 2017 by roughly 4.8% in mobile diagnostic equipment and therapy devices High complexity in applications such as diagnostic and imaging devices, mobile devices on and in the body growth rates of 2.1% p.a. Investor and Analyst Presentation 26 26

28 Financials FY 2017/18 in thousands STATEMENT OF CASH FLOWS 01 Apr Mar Apr Mar 2018 Change YoY Operating result (EBIT) 6,649 90,286 >100% Paid/received interests (15,962) (13,875) 13.1% Income taxes paid (12,370) (26,015) (>100%) Non cash bearing of profit or loss 112, , % Cash flow from operating activities before changes in working capital 90, ,101 >100% Changes in working capital 45,892 (48,910) (>100%) Cash flow from operating activities 136, , % Cash flow from investing activities (161,148) (193,389) (20.0%) Cash flow from financing activities 54, ,547 >100% Hybrid bond issue ( 173.0m) Change in cash and cash equivalents 30,140 85,349 >100% Operating free cash flow 1) (104,253) 1,492 >100% Full Capex financed from operating cash flow Free cash flow 2) (24,732) (50,198) (>100%) 1) Cash flow from operating activities minus Net CAPEX 2) Cash flow from operating activities minus cash flow from investing activities Investor and Analyst Presentation 27

29 Financials FY 2017/18 in thousands (unless otherwise stated) 31 Mar Mar 2018 Change STATEMENT OF FINANCIAL POSITION Non-current assets 1,029, ,267 (8.3%) Current assets 407, , % Equity 540, , % Non-current liabilities 569, ,276 (9.6%) Negative FX effects (mainly RMB-EUR and USD-EUR) of 53.5 m. Positive: Hybrid bond issue ( 173.0m) Current liabilities 326, ,772 (7.0%) Total assets 1,436,694 1,530, % Net debt 380, ,237 (45.0%) Hybrid bond issue ( 173.0m) Net debt/ebitda 2.9x 0.9x (2.0pp) Net gearing 70.5% 29.4% (41.1pp) Net working capital 24,374 72,437 >100% Net working capital per revenue 3.0% 7.3% 4.3pp Equity ratio 37.6% 46.5% 8.9pp In 2016/17 special net debt optimization program Increase as a result of hybrid bond issue and net profit Investor and Analyst Presentation 28

30 Financials FY 2017/18 in thousands (unless otherwise stated) STATEMENT OF PROFIT OR LOSS 01 Apr Mar Apr Mar 2018 Change YoY Revenue 814, , % produced in Asia 82% 84% 2pp produced in Europe 18% 16% (2pp) EBITDA 130, , % EBITDA margin 16.1% 22.8% 6.7pp High demand, additional revenue contribution mainly from both plants in Chongqing, Negative FX impact of 46.8 m. Generally high operational performance, successful implementation & optimization of msap technology EBIT 6,649 90,286 >100% EBIT margin 0.8% 9.1% 8.3pp Finance costs net (17,499) (14,775) 15.6% Income taxes (12,047) (18,992) (57.6%) Profit/(loss) for the year (22,897) 56,519 >100% Further reduction mainly due to positive FX impact Significantly higher earnings Capitalization of deferred taxes in Austria Reduced tax scheme in Shanghai effected Cash earnings 101, , % Earnings per share ( 0.59) 1.38 >100% Investor and Analyst Presentation 29

31 Key credit figures Gross debt, financial assets and cash, net debt Net debt/ebitda / / / / / /18 Gross debt Financial assets and cash Net debt in millions 2013/ / / / /18 Multiple Net debt decrease based on lower net capex (Chongqing phase I finished) & Hybrid bond issue Target: < 3x Investor and Analyst Presentation 30

32 Net Working Capital Management 19.0% Net Working Capital development 15.6% 14.3% % % % / / / / / /18 in millions; % of revenue Net working capital Net working capital per revenue Investor and Analyst Presentation 31

33 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 with higher 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 site Leoben, Shanghai Chongqing Chongqing, Shanghai Applications Devices such as smartphones, tablets, digital cameras and hearing aids High-end processors for Computer, Communication, Automotive, Industrial Mobile applications like smartphones Investor and Analyst Presentation 32

34 AT&S Product Portfolio II 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 laserdrilled microvias. Advantage: further miniaturization, and higher performance and reliability. AT&S produces HDI any-layer in 4 to 12 layers. HDI: high density interconnect, meaning laser-drilled connections (microvias). HDI is first step towards miniaturization. AT&S can produce 4-layer laser PCBs up to 6-n-6 HDI 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 mm. IMS: insulated metal substrate. Primary function: heat dissipation for use mainly with LEDs and power components. Production site Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring Applications Smartphones, 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 Investor and Analyst Presentation 33

35 AT&S Product Portfolio III Flexible printed circuit boards Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid printed circuit boards. Semi-flexible printed circuit boards More limited bend radius than flexible printed circuit boards. The use of a standard thin laminate makes them a cost-effective alternative. Rigid-flex printed circuit boards Combine the advantages of flexible and rigid printed circuit boards, yielding benefits for signal transmission, size and stability. Production site Ansan, Fehring Fehring Leoben, Ansan Ansan Applications Nearly all areas of electronics, including measuring devices and medical applications Automotive applications Industrial electronics, such as production machines and industrial robots Flexible printed circuit boards on aluminum Used when installing LEDs in car headlights, for example, where the printed circuit board is bonded to an aluminum heat sink to which the LEDs are then attached. Lighting, automotive, building lighting AT&S patented technologies ECP : Embedded Component Packaging ECP is a patented AT&S packaging technology used to embed active and passive electronic components in the inner layers of a printed circuit board. ECP technology is used in ever smaller, more efficient and more powerful devices, such as smartphones, tablets, digital cameras and hearing aids. Production sites: Leoben, Shanghai 2.5D Technology Platform Combines mechanical and electronic miniaturization, and enables partial reduction of the thickness of a circuit board. Advantage: populated assemblies have a thinner profile. Can be also used to make cavities in the printed circuit board, e.g. for acoustic channels. Major application for this technology is the 2.5D rigidflex printed circuit board, a lower cost alternative for flex-to install applications. Production sites: Leoben, Shanghai Investor and Analyst Presentation 34

36 Management Andreas Gerstenmayer, CEO Monika Stoisser- Göhring, CFO Heinz Moitzi, COO 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 CFO since 2017 Previous positions include: Since 2011 with AT&S in senior positions in Finance and Human Resources Various positions at international accounting and tax consulting companies Education: Training as Tax Consultant Degree in Business Administration from Karl-Franzens University Graz COO since 2005; with AT&S since ) 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 Investor and Analyst Presentation 35

37 Milestones in the Group s history 1987 Founding of the Group, emerging from several companies owned by the Austrian State Owned Industries 1994 Privatization and acquisition by Messrs Androsch, Dörflinger, Zoidl 1999 Initial 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 2002 Start of production at new Shanghai facility one of the leading HDI production sites in the world 2010 Start of production at plant II in India 2009 New production direction: Austrian plants produce for high-value niches in the automotive and industrial segment; Shanghai focuses on the high-end mobile devices segment 2011 Construction starts on new plant in Chongqing, China Capacity increase in Shanghai by 30% 2008 AT&S change to Vienna Stock Exchange 2006 Acquisition of Korean flexible printed circuit board manufacturer, 2013 AT&S enters the IC substrate market in cooperation with a leading manufacturer of semiconductors AT&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 Tofic Co. Ltd. today, AT&S Korea Co., Ltd. AT&S starts serial production of IC substrates at the plant in Chongqing Investor and Analyst Presentation 36

38 37 A sustainability benchmark in the industry Highest resource efficiency Highest standards at all locations worldwide Highest transparency Revenue growth Environment: ISO Resource consumption stable/declining Safety: OHSAS Energy: ISO Quality: ISO 9001, ISO/TS AS/EN 9100, DS/EN Sustainability reporting since 2012/13 Gold recognition from the Responsible Business Alliance Conflict minerals reporting Public CDP reporting on climate change (C score) and water (B score) * Basis for CO 2 output: 2015/16 Investor and Analyst Presentation 37

39 AT&S First choice for advanced applications IR contact Gerda Königstorfer Tel: Mobile: Fax: Johannes Mattner Tel: Mobile: Visit: IR_PR; AtundS Fabriksgasse 13, 8700 Leoben/Austria Investor and Analyst Presentation 38

40 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 orevents 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 forward-looking statements, whether as a result of changed assumptions orexpectations, 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. Investor and Analyst Presentation 39