AT&S Company Presentation

Transcription

1 Fabriksgasse13 A8700 Leoben Tel +43 (0) Fax +43 (0) March 2011 AT&S Company Presentation

2 2 Company Presentation Disclaimer 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 forwardlooking statements. Actual results may differ materially from those projected or implied in such forwardlooking statements. Forwardlooking information involves risks and uncertainties that could significantly affect expected results. AT&S Martin Theyer Head of Strategy Development & Communications Fabriksgasse 13 A8700 Leoben tel: m.theyer@ats.net

3 3 Company Presentation AT&S Global Footprint

4 Company Presentation History 2009 Relocation of volume business from LeobenHinterberg plant to Shanghai. Reorganization of the plant in LeobenHinterberg and focus on the European market. Focus on highend 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] Rampup Shanghai III Rampup 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 selectedtechnology 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 startup 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 startup 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 Startup 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 AndroschDörflingerZoidl 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 VoestAlpine 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.

5 Company Presentation AT&S a global footprint Procurement & Sales: Office in Hong Kong Design Capacities: Germany 16 Sales Offices worldwide 6 production facilities worldwide employees worldwide Klagenfurt: ~150 people Fehring: ~450 people 5 LeobenHinterberg: Head Office ~630 people NanjangudIndia: ~1,425 people Shanghai: ~4,420 people AnsanS.Korea: ~215 people

6 6 Company Presentation AT&S Group AT&S is currently under the Top 2 Leading HDI Suppliers worldwide in regards to revenues Top 5 Technology Leaders in regards to HDI and Any Layer Top 3 ECP suppliers worldwide with real commercial and industrial set up No. 1 of the European PCB suppliers No. 1 of the PCB producers in India Dealing with the Top Players in each targeted segment * HDI = High Density Interconnect

7 Company Presentation The good message first we are growing again AT&S managed the turn around after Lehman Brothers very quickly the only loss making quarters were Q3 2008/09 and Q1 2009/10 all other quarters were positive. Revenues (EUR m) ,7% 450 0,2% 372 6,9% ,0% 2007/ / / /11e Ebit Margin 10,0%

8 Company Presentation AT&S Performance Revenuegrowth Revenues per business segment 2007/ /11 44% 8 Mobile Devices share is about 59% and increased by almost 45% compared to same periode last year. Automotive share is about 12% and increased by almost 34% compared to same periode last year. Industrial share is about 28% and increased by almost 54% compared to same periode last year. Overall is the customer portfolio well balanced. Fiscal year 8,7% 486 Mio. 2% 67% 21% 10% 10% 2007/08 0,2% 450 Mio. 3% 64% 24% 9% 2008/09 6,9% 372 Mio. 60% 28% 11% 2009/ Mio. 1% 59% 28% 12% ~ 9% 2010/11 (forecast) 18% 30% EBITmargin (%) 23% 28% Other Mobile devices Industrial Automotive

9 Company Presentation AT&S Performance Revenues per region and customer segments Importance of the Asian market is increasing our core markets Austria & Germany develop better than expected ,6 144,4 209,6 32,4 68,9 109,2 28,1 13,4 43,9 Mobile Devices Industrial Automotive Q1 10/11 Q2 10/11 Q3 10/11 Cumulative Sales of 365m Euros exceed internal expectations all three customer segments delivered two digit growth rates net earnings were slightly down as a result of December holidays in Europe and US.

10 10 Company Presentation AT&S Strategy

11 11 Company Presentation PCB Global Market is worth 52 bln USD Source: Prismark; AT&S

12 12 Company Presentation Global HDI Market is worth 6,2 bln USD Source: Prismark; AT&S

13 Company Presentation We foresee strong market growth in all our core business segments PCB market growth (bn USD) 48.4 Prismark; AT&S AT&S CAGR ~10% CAGR 4.9% 49.9 CAGR 6.7% IC Packaging Consumer Computing Defence/Aerospace Automotive Industrial/Medical Communications

14 Company Presentation 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 14 Mobile Devices ( % of sales) Target markets/applications Mobile Phones PDAs Digital Still Cameras Camcorders Mobile Music Players Mobile Modems Services 1% of sales Automotive ( % of sales) Target markets/applications Engine Control Lighting Control Navigation Systems Occupant Safety Body Controls Entertainment Electronics

15 Company Presentation 15 Smart phone shipments are expected to grow by 19% p.a. (CAGR) Global smart phone shipments (million units) Covered by GBI Study CAGR +9% 2012 GBI Research: Microprocessor Market to 2020 AT&S CAGR ~13% 15%* Extrapolation 2015 Smart phone shipments to hit 300 m in 2012 and 500 m in 2015 Growth of smart phones driven by an increase in purchases especially in emerging markets in AsiaPacific, 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 * estimated on HDI output in Shanghai

16 Company Presentation AT&S Business Segments Mobile Devices Mobile Devices today within AT&S Top supplier of the Mobile Phone industry (8 of top 10 mobile phone manufacturers) Longterm customer relationships to industry leaders (OEMs) Extensive HDI technology experience Major HDI capacity holder Reputation as high quality supplier 16 Strategic direction (1) Focus on Smart Phone / High End segment (2) For those customers, be a full product supplier (3) Expand other handhelds (by growing DSC, Gaming etc.) (4) Push new technologies (ECPTM, RFPC, NucleuS TM, FV1+)

17 Company Presentation The automotive electronics market outgrows car production Automotive production and electronic content bn USD and mil. units $ Source:Prismark, AT&S AT&S $ Electronic content total ($bn) $ $ CAGR +10% $ Electronic content per vehicle ($) AT&S CAGR ~10% $ $ Vehicle production (mil. units) $ Electr. Content in USD 2,150 2,100 2,050 2,000 1,950 1,900 1,850 1,800 1,750 1,700 1,650

18 Company Presentation AT&S Business Segments Automotive Automotive today within AT&S # 1 in Europe / # 6 worldwide Over the last years (except FY 08/09) AT&S was growing 7 times faster than the Automotive PCB industry Strong relationship to European Tier 1 supplier Reputation as high quality supplier and technology driver 18 Strategic direction (1) Participate in HDI growth (Information & Safety) (2) Push technologies like Thermal Management, Thick Copper, HSMtec, ECP TM, and 2.5D (Environment, Information & Safety) (3) Increase market share in Europe (taking advantage of the weaknesses of traditional European suppliers) (4) Expand today s mainly European business to a global scale with the support of existing accounts

19 Company Presentation 19 The medical equipment market is driven by increasing demand and new technological capabilities Medical equipment market (bn USD) Global Data, AT&S CAGR +8% AT&S CAGR ~11%* 2015 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

20 Company Presentation AT&S Business Segments Industrial Industrial today within AT&S #1 in Industrial in Europe (18% share) 15% CAAGR over the last years Accomplished entrance in Notebook HDI market Single European supplier with own production capacity in Asia 20 Strategic direction (1) Further expand Industrial business in EU: BeNeLux, France, Italy and UK (2) Develop market in Americas to a significant size (potential comparable to Europe) (3) Cover complete medical market from diagnostics to therapy, as well as defense (no warfare) and avionics (4) Computing: Focus on HDI business. Develop PTH business with selected customers

21 21 Company Presentation AT&S Innovation AT&S Innovation

22 Company Presentation 22 These trends will offer additional growth opportunities to us Markets and applications of the early 21st century Intelligent environment with approximately 1,000 processors and sensors per citizen, which are interconnected. The generation 50+ will be the biggest and at the same time financially strongest target group. Microelectronic and sensor technology offer chances to support seniorfriendly living and housing as well as new opportunities in the telemedical services. Robots will carry out routine work in hospitals, hotels, and many private households. They will be on the 2020 Christmas wish list of many families. Honda and other automotive OEMs consider selfdrive cars possible by Mankind will start to connect bodies and brains with technological addons already in the coming decade.

23 Company Presentation AT&S Innovation Anticipate, Innovate Marketdriven development focussed on future competitive advantage Smartphone Advanced Packaging Medical Solid State Lighting Optical Data Interconnect Density Printed PCB Optical Assembled PCB Mechanical Integration Embedded Component Advanced Thermal 23 Execute ECP, 2.5D and NucleuS are registered trademarks of AT&S AG Decision, investment and project execution to ensure rapid time to market FV+++ NucleuS 2.5D C ECP Embedded Copper Optimise PTH BV Heavy Cu HDI Rigid Flex FV Mass Production Medium Series Industrialisation R&D Leadership through process selection and continuous efficiency improvement FV+ XOR 2.5D R Thermal Substrate

24 24 Company Presentation AT&S Innovation AT&S Product Offering PCB Board 2010 DC/DC Converters, IPD ESD/EMI As one of the first PCB Producers we have successfully started serial production of embedded components in Q2. We partnered up with one US Top Player to launch the market entry successfully in November. By end of the fiscal year AT&S will produce almost 500 k per months. We are currently ramping up the output to almost 3 Million Units per months over the next 1215 months.

25 25 Company Presentation AT&S Financials

26 Company Presentation Key Financial Ratios 9M 2010/11 Margin Total revenues 364,8 242,7 26 6M 2010/11 Margin Gross profit 71,6 19,6% 46,1 19,0% EBITDA 1) 76,368 20,9% 49,1 20,3% EBIT 1) 40,3 11% 25,5 10,5% PBT 36,45 10% 24,5 10,1% Net income 29,6 8,1% 19,1 7,9% EPS 2) 1,27 0,82 Avg. # shares outstanding 3) ) EUR m, adjusted for nonrecurring items 2) EUR 3) Thousands of shares

27 Company Presentation Capex & Gearing Net CAPEX (EUR m) NetCAPEX is in line with the capacity expansion for Shanghai and Nanjangud line 11 in Shanghai went live for India no ramp up costs are expected from January 2011 ongoing % 19 17% 30 23% 36 29% Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/ % 32% 24% 16% 8% 0% Net CAPEX / Sales Net Gearing Ratio slightly increased over the last three months in total additional 32m Euros needed to be financed through third party debts. The remaining 52m Euros were financed through internal cash generation. Net Debt (EURm) % 72% 62% % 31/03/10 30/06/10 30/09/10 31/12/10 100% 85% 70% 55% 40% 25% 10% 5% Net Gearing

28 28 Company Presentation In EUR '000 31/12/ /03/2010 Trade and other receivables Inventory Trade and other payables Current provisions Working capital as reported Not casheffective additions to CAPEX Working capital and change YTD Effects of exchange rate changes YTD 335 Change in Working Capital YTD Working capital/sales 18.5% 19.3% Working Capital

29 29 Company Presentation Gearing Ratio In EUR '000 31/12/ /09/2010 Shortterm borrowings Longterm borrowings Total debt Cash and cash equivalents (3.788) (8.514) Financial assets, current (14.051) (14.279) Financial assets, noncurrent (96) (96) Net debt Equity Net gearing ratio 76% 72%

30 30 Company Presentation AT&S Outlook

31 Company Presentation AT&S Outlook Different Investment Phases to increase max. tec. Capacity* > Phase One already started EXISTING PLANTS PHASE ONE 03/ /2010 NAN Werk II/1 SHA L11 01/ /2010 Production facilities / installed capacity[m²]*: 31 SHA L12 PHASE TWO 05/2011 Q Q1 2013? SHA L k Chongqing New Plant 07/2011 *the real output is dependant on the actual loading mix of each plant and is therefore hard to predict estimated volume increase in Shanghai to 710k/m2 and Nanjangud to 355k/m2 by end 2012/13

32 32 Company Presentation AT&S Outlook Guidance 2010/11* *Assuming stable exchange rate differencies and no economic down turn ** estimated cash spent very hard to predict due to cross overs over the years Expected revenues of EUR 470m 500m EBIT margin 9% Effective tax rate of around 20% Investments (CAPEX): EUR 100m 130m** Net Gearing 80% by yearend.

33 33 Company Presentation AT&S Capital Markets AT&S Capital Markets

34 34 Company Presentation AT&S Stock Details Listing Vienna Stock Exchange, Prime Standard Indices ATX Prime, WBI Reuters RIC (A) ATSV.VI Bloomberg (A) ATS AV # of shares issued 25.9 million # of shares outstanding 23.3 million Calendar 10 May 2011 results FY 2010/11

35 35 Company Presentation AT&S Capital Markets share price AT&S clearly outperformes the ATX Prime Index. direktanlage.at 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 20,00 Euro. Estimated EPS are around 1,40 Euro for 2010/11.

36 36 Company Presentation AT&S Well Positioned for the Future Many thanks for your attention!