AT&S Company Presentation

Transcription

1 AT&S Company Presentation August Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse13 A-8700 Leoben Tel +43 (0) Fax +43 (0)

2 Disclaimer AT&S Austria Technologie & Systemtechnik Aktiengesellschaft Martin Theyer Head of Strategy Development & Communications Fabriksgasse 13 A-8700 Leoben tel: Despite a diligent preparation of this presentation we assume no liability for the content or any action based on 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 the information contained or not in this presentation. The presentation does not include and does not constitute or 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. Company Presentation 1

3 Agenda AT&S Global Footprint AT&S Strategy AT&S Innovation AT&S Financials AT&S Outlook AT&S Capital Markets Company Presentation 2

4 AT&S Global Footprint Company Presentation 3

5 History 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 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] Ramp-up Shanghai III 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) Focusing on Austrian plants on European niche markets 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% Production start-up in the new Shanghai factory. Ranking among world's top three HDI/microvia manufacturers. Signing of German Corporate Governance Code Opening of the new logistics centre in Nörvenich, Germany. Stepwise start-up of Leoben Hinterberg II, Europe s most modern printed circuit board factory 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 Start-up of new production hall in Fehring /96 Conversion to a stock corporation, increase of equity capital, holdings of 212 employees Award to the tendering group Androsch-Dörflinger-Zoidl Founding of E+E Printed Circuit Board Holding as parent company of the three factories: AT&S Fehring, AT&S Fohnsdorf, AT&S Leoben Foundation of AT&S Foundation of a Voest-Alpine works in Leoben Foundation of the Eumig branch factory in Fohnsdorf - production of single sided printed circuit boards Foundation of Körting Electronics works in Fehring. Manufacture of television sets with outsourced printed circuit board manufacture. Company Presentation 4

6 AT&S a global footprint Procurement & Sales: Office in Hong Kong Design Capacities: Germany 16 Sales Offices worldwide 6 production facilities worldwide employees worldwide Shanghai: ~4,570 people Fehring: ~440 people Leoben-Hinterberg: Head Office ~850 people Nanjangud-India: ~1,350 people Klagenfurt: ~150 people Ansan-S.Korea: ~215 people Company Presentation 5

7 AT&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 Company Presentation 6

8 AT&S Performance Revenue-growth AT&S Group came out of the crisis stronger Stronger customer relations Higher customer diversification 9,5% 8,7% 486 Mio. 2% - 0,2% 450 Mio. 3% - 6,9% 488 Mio. 1% EBIT-margin (%) 44% 372 Mio. 67% 64% 56% 60% Fiscal year 21% 10% 2007/08 24% 9% 2008/09 28% 11% 31% 12% Other Mobile devices Industrial 2009/10 Automotive 2010/11 Source: AT&S Company Presentation 7

9 AT&S Performance 2010/11 Revenues per region and customer segments 15% 27% 31% 25% 1% Austria+Germany Rest of Europe Asia Canada/USA Other 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 67,6 76,8 65,2 61,8 43,9 40,3 36,5 32,4 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 17,2 15,8 13,4 14,7 - Mobile Devices Industrial Automotive Customer portfolio further diversified Ultra modern technology in China provide good starting point for future growth All segments show high growth rates on a year to year basis Mobile Devices has saisonality inherent in its business model All figures based on internal Management Information and might change Source: AT&S Company Presentation 8

10 AT&S Strategy

11 PCB Global Market is worth 52 bln USD Strategic focus on Communication and Medical Segment Source: Prismark; AT&S Company Presentation 10

12 Global HDI Market is worth 6,2 bln USD 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 the worldwide production will take place in China Source: Prismark; AT&S Company Presentation 11

13 Top 50 Company Revenues 2009 Source: Prismark;, bpa, JMS, ATS Company Presentation 12

14 Change of AT&S production volume Austria vs. Asia Development of net m² output as percentage value 90% 80% 70% 60% 50% 40% AT Asien 30% 20% 10% 0% Source: AT&S Company Presentation 13

15 AT&S Business Segments Overview Industrial ( % of sales) Target markets/applications Industrial Control & Automation Medical (Diagnostics, Therapy) Sensor Applications Notebooks White & Brown Goods Defense, Avionics Mobile Devices ( % of sales) Target markets/applications Mobile Phones PDAs Digital Still Cameras Camcorders Mobile Music Players Mobile Modems Tablets Automotive ( % of sales) Target markets/applications Engine Control Lighting Control Navigation Systems Occupant Safety Body Controls Entertainment Electronics Source: AT&S Company Presentation 14

16 HDI-Market is expected to grow by 9% p.a. (CAGR) Development of the HDI-Market 20 Production capacity in [Mio. m²] 10, , , CAGR +9% 14,3 AT&S CAGR ~13% - 15%* , , , 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 Source: Prismark 2010 Company Presentation 15

17 The automotive electronics market outgrows car production Automotive production and electronic content Electr. Content bn USD and mil. units in USD 200 CAGR $ % $182 $170 $159 2,150 2,100 2, $144 $133 $127 2, $ AT&S CAGR ~10% ,950 1,900 1,850 1,800 1,750 1, ,650 Electronic content total ($bn) Electronic content per vehicle ($) Vehicle production (mil. units) Source: Prismark, AT&S Company Presentation 16

18 The medical equipment market is driven by increasing demand and new technological capabilities Medical equipment market (bn USD) CAGR +8% AT&S CAGR ~11%* 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 * estimated on the industrial growth rate Source: Global Data, AT&S Company Presentation 17

19 AT&S Innovation Company Presentation 18

20 AT&S focuses on technology differentiation versus main competitors Increasing prevalence of electronic systems in everyday life Rising penetration rate of communication applications Wider functionality on less space in mobile devices 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 Company Presentation 19

21 AT&S Innovation Anticipate, Innovate Market-driven development focussed on future competitive advantage Execute Decision, investment and project execution to ensure rapid time to market Optimise Mass Production Medium Series Industrialisation R&D Leadership through process selection and continuous efficiency improvement Interconnect Density FV+++ PTH BV HDI FV FV+ Smartphone Printed PCB ALIVH ALIVH Advanced Packaging Optical Assembled PCB NucleuS XOR Medical Mechanical Integration 2.5D -C Rigid Flex 2.5D -R Solid State Lighting Embedded Component ECP Optical Data Advanced Thermal Embedded Copper Heavy Cu Thermal Substrate ECP, 2.5D and NucleuS are registered trademarks of AT&S AG Source: AT&S Company Presentation 20

22 AT&S Financials

23 Key Financial Ratios 2010/11 In EUR '000 03/2011 before non-recurring items /2010 before non-recurring items /2011 before non-recurring items YTD YTD YTD YTD QTD QTD CONSOLIDATED INCOME STATEMENT Revenues thereof produced in Asia (in %) 68,6 67,1 62,7 thereof produced in Europe (in %) 31,4 32,9 37,3 EBITDA EBITDA-Marge 20,2 19,7 14,5 9,3 18,0 18,0 EBIT EBIT-Marge 10,1 9,5 2,9-6,9 7,3 7,3 Net income Cash Earnings all figures based on internal Managment Information and might change Source: AT&S Company Presentation 22

24 Key Financial Ratios 2010/11 In EUR ' YTD YTD YTD CONSOLIDATED BALANCE SHEET Total assets Equity Equity attributable to equity holders of the parent company Net debt Net gearing (in %) 84,3 70,9 75,5 Net working capital Net working capital per revenues(in %) 16,3 19,3 18,5 Equity ratio (in %) 39,9 43,2 41,0 CONSOLIDATED CASH FLOW STATEMENT Net cash generated from operating activities (OCF) Net CAPEX Source: AT&S Company Presentation 23

25 Balance Sheet In EUR ' Non-current assets Current Assets Inventories Trade and other receivables Financial assets Current income tax receivables Cash and cash equivalents Total ASSETS Total EQUITY Total LIABILITIES Total equity and liabilities Source: AT&S Company Presentation 24

26 Working Capital In EUR ' Trade and other receivables Inventory Trade and other payables Current provisions Working capital as reported Not cash-effective additions to CAPEX Working capital final and change YTD Effects of exchange rate changes Change in Working Capital Working capital/sales 16,3% 19,3% Source: AT&S Company Presentation 25

27 Capex & Gearing We have invested in capacity enlargement in Shanghai (HDI Line 11 was ramped up in October) and in India (new plant built in Nanjangud) The increase the gearing ratio is mainly due to CCTD movements. Total net debts increased by 46m Euro Net CAPEX (EUR m) % 25% 23% 17% Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 40% 36% 32% 28% 24% 20% 16% 12% 8% 4% 0% Net CAPEX / Sales Net Debt (EURm) % 71% 72% 62% 31/03/10 30/06/10 30/09/10 31/03/11 100% 85% 70% 55% 40% 25% 10% -5% Net Gearing Source: AT&S Company Presentation 26

28 Cash Flow In EUR ' Net cash generated from operating activites Net cash used in investing activities ( ) (18.254) Net cash generated from/(used in) financing activities (22.791) Net increase/(decrease) in cash and cash equivalents (9.019) Cash and cash equivalent at beginning of the year Exchange gains/(losses) on cash and cash equivalents (108) 365 Cash and cash equivalents at the end of the year Source: AT&S Company Presentation 27

29 Outlook

30 AT&S increased its capacity by almost 20% IN PRODUCTION RAMP-UP 2011/12 03/ /2010 DEVELOPMENT EXISTING PLANTS 01/2010 SHA L11 NAN Plant II / Phase1 12/2010 SHA L12 05/2011 Q Q Chongqing New Plant 07/2011 SHA L13 Production facilities / installed capacity[m²]*: 710k 300k 400k 130k 380k 120k ~ 200k Fehring Klagenfurt Leoben Nanjangud Shanghai Seoul (Korea) Chongqing * Maximum capacity of plants Source: AT&S 29

31 AT&S acquired plot in Chongqing, China Growth scenario forsees that every second HDI PCB used will be manufactured in China AT&S will build one of the most modern and automated plants in China First step to develop the plot ( 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 sqm Company Presentation 30

32 AT&S gives an Outlook for 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 change Source: AT&S Company Presentation 31

33 Cash Cycle - Funding Total capex requirements ~ mln euro needed to ensure two digit growth Internal cash generation ~ 60-70mln (10% ebit margin) + Depreciation ~ 70-80mln (11% afa) = Cash earnings ~ 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 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) Source: AT&S = Company Presentation 32

34 AT&S Capital Markets Company Presentation 33

35 AT&S - Stock Details Listing Indices Reuters RIC (A) Bloomberg (A) Vienna Stock Exchange, Prime Standard ATX Prime, WBI ATSV.VI ATS AV # of shares issued 25.9 million # of shares outstanding 23.3 million Calendar 14th of September Annual Board Meeting 20 th of October Release of 2 nd Quarter Results 2010/11 Source: AT&S Company Presentation 34

36 AT&S Capital Markets share price AT&S clearly outperformes the ATX Prime Index. 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. direktanlage.at Company Presentation 35

37 AT&S Well Positioned for the Future Danke für Ihre Aufmerksamkeit! Company Presentation 36