AT&S first choice for advanced applications

Transcription

1 AT&S first choice for advanced applications Company Presentation April 2016 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse13 A-8700 Leoben Tel +43 (0) info@ats.net

2 Table of Contents Company Overview Strategy & Market Financials Annex 1

3 AT&S a world leading high-tech PCB company One of the most profitable players in the industry: above industry EBITDA margins Strong cash flow generation Proven long term successful financial track record Megatrend-driven markets with attractive growth potential Entering a new high-end business segment by 2016 Pure high-end segment play Technology & quality leader Largest European PCB producer Partner of choice for blue chip customer base Balanced industry portfolio Strong Asian production footprint with focus on high volume/low mix European footprint: high mix/low volume Operational excellence: Outstanding process know-how, productivity and efficiency 2

4 AT&S Key Facts Strong track record 1 Balanced portfolio / Global customer base 2 Split revenue: Business Unit, Q1-Q3 2015/ % +5% +9% +13% % % 60% Mobile Devices & Substrates Automotive, Industrial, Medical / / / / /15 Q1-Q3 Q1-Q3 in millions 2014/ /16 Revenue EBITDA EBIT Revenue growth Split revenue: Customer Region, Q1-Q3 2015/16 based on sold to party 57% 7% 23% 14% 6% Germany/Austria Other European countries Asia Americas 3

5 Global footprint ensures proximity to supply chain & cost efficiency European production facilities: high mix/low volume Asian production facilities: high volume/low mix Sales network spanning three continents 8,688 employees* AT&S plants AT&S sales offices Plant Leoben, Austria Headquarters Staff: 911* Plant Fehring, Austria Staff: 373* Plant Nanjangud, India Staff: 1,167* Plant Chongqing, China under construction Staff: 1,289* Plant Shanghai, China Staff: 4,636* Plant Ansan, Korea Staff: 276* *Average, FTE, Q1-Q3 2015/16; 36 employees in other locations 4

6 Balanced high-end product portfolio to level seasonality Segment Mobile Devices & Substrates Revenue Share 1) 60% Characteristic volatility due to seasonal effects (Revenue in millions) Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 Selected Applications Communication Consumer Electronics Computing Selected Market Leaders GoPro Sony LG Canon Qualcomm Blackberry Lenovo Huawei Samsung Xiaomi ZTE Intel Apple Automotive, Industrial, Medical 40% stable business due to longer product life time (Revenue in millions) Q1 14/15Q2 14/15Q3 14/15Q4 14/15Q1 15/16Q2 15/16Q3 15/16 Automotive: Lighting, thermal, sensors, safety, infotainment, powertrain Industrial: Instrumentation & control, power solutions, lighting Medical: Patient monitoring, therapy, diagnostic Osram Hella Siemens Continental Harmann General Electric EADS Others Advanced Packaging Includes the segment Advanced Packaging (in the process of being established) as well as group management and financial activities Texas Instruments ST Microelectronics Freescale Semiconductor RFMD TDK-Epcos 1) Based on external revenue in millions in Q1 2015/16 Qualcomm 5

7 Table of Contents Company Overview Strategy & Market Financials Annex 6

8 AT&S Positioning Strategy Strategic focus on high-end technologies AT&S Revenue structure in 2014/15 - 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 > 70% HDI and Anylayer PCBs, Embedding Complementary technology share: <30% SS, DS, ML, Flex, RF Structure of general PCB market based on technologies 7

9 Strategy: Selecting segments and applications Market segments selected by AT&S: Mobile Devices & Substrates Automotive Industrial Medical Specific applications that show attractive, overall growth within our addressed market segments : Smartphones, Tablets, Ultrabooks, Wearables.. Navigation, Advanced Driver Assistance Systems, Infotainment.. Machine-2-Machine Communication, Industrial Computer Hearing Aids, Patient Monitoring.. Criteria for selection Attractive, specific application growth: > 10 % Potential for sustainable high EBITDA margins : > 20 % Technological fit: dense structures: micrometer 8

10 Market Player/Position HDI Technology 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 9

11 The Total PCB & Substrate Market will reach around 70 bn US $ in 2019 Overall Market development Market per Segments [US$ in millions] CAGR 4% CAGR 4% Market per Technology [US$ in millions] Source: AT&S; Prismark (2015), JMS (2014), YOLE (2015) Advanced Packaging represents the Embedded die package forecast. FC-Substrates represents FC-BGA and FC-CSP package substrates. 10

12 The world is changing miniaturisation & modularisation as main drivers 2003/ ? Type Mobile Phone Smartphone System in Package All in One PCB 125x55mm 85x20mm 30x30mm 20x20? Form Factor ? Line/Space 100/100µm 40/40µm 30/30µm 20/20µm? Technology 1-n-1 Anylayer Anylayer&Embedding? 11

13 AT&S advanced technology solutions General Description & Technology Application Areas Customer Base Market Size High-End (HDI) PCBs PCBs are the interconnection platform for electric, electronic & mechanical components (such as resistors, capacitors, IC s, connectors; etc.) Density: Line/ Space > 35 micron Computer, Consumer, Communication, Automotive Industrial, Medical OEM s Tier 1 Tier 2 AT&S addresses a market of USD 5.8bn * Substrate-like PCBs OEM s Tier 1 Tier 2 Technology in introduction, part of High end HDI and Low-end Substrate market Substrate-like PCBs are the next evolution of high-end HDI PCBs with higher density: Line/Space 20-30micron Wearables and applications of the Internet of Things * AT&S addresses part of a total market of USD 47.5bn/ source: Global Production Value 2014, Prismark, March

14 AT&S advanced technology solutions General Description & Technology Application Areas Customer Base Market Size IC Substrates High-end processors for Computer, Communication, Automotive, Industrial OEM s Semiconductor Industry AT&S addresses a market of USD 5.1bn * IC-Substrates serve as interconnection platform with higher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs Embedded Component Packaging (ECP ) Embedded Component Packaging allows to embed active/passive components (e.g. wafer level dies) within the layers of a PCB contributes to miniaturisation Power Electronics, e.g. for Automotive, Industrial OEM s Semiconductor Industry AT&S addresses a market of USD 210m ** * AT&S addresses part of a total market of USD 7.6bn/ source: Global Production Value 2014, Prismark, March 2015;) ** Source: AT&S; Prismark (2015), JMS (2014), YOLE (2015); Advanced Packaging represents the Embedded die package forecast. IC (FC)-Substrates represents FC-BGA and FC-CSP package substrates. 13

15 Growth Project Chongqing IC-S & Substrate-like PCBs Building 1: IC Substrate plant Building 2: Substrate-like PCB plant Specifications: Clean Room Class < 100 Specifications: Clean Room Class < 10,000 to < 1,000 in special areas 14

16 Growth Project Chongqing Overview Plant I Plant II Products: IC Substrates Substrate-like PCBs Capacity: 150,000 sqm/p.a.* 200,000 sqm/p.a.* Investment** Phase 1: ~ 280m ~ 200m Investment** as of 31/12/2015: 195.6m 45.3m Location: Chongqing, Central China Total investment: 480m in first phase (until mid 2017) Expected CAPEX-revenue ratio: mean of 0.9 (at full expansion incl. second phase) Start of High Volume Mass Production > IC Substrates: February 2016 > Substrate-like PCBs: expected second half 2016 * at full expansion (incl. a second phase not yet scheduled) ** Capex for tangible fixed assets 15

17 Driving Future Trends in Customer Segments: Internet of Things (IoT) and Application Structures Wearable Electronics Smart Mobility Smart City Healthcare Glasses Autonomous Driving Car2Car Communication Smart Lighting Smart Buildings Smart Production/Industry 4.0 Smart Healthcare Smart Energy Home/Building Automatisation Energy Management Automatisation/Robotics Production Control Systems Connectivity (e.g. online patient monitoring) Smart Metering billion of Things will be connected in 2020 Wearables market forecast: USD billion by 2018 Source: IHS,

18 Table of Contents Company Overview Strategy & Market Financials Annex 17

19 Sound top-line growth, above industry margins and increasing cash conversion Revenue Y-O-Y growth EBITDA and EBITDA-margin Operating Cash Flow Y-O-Y development % 20.1% 18.9% % % 26.0% 24.0% in millions in millions in millions Continuous growth path up to full capacity utilisation Revenue with products out of Asian production increased from 69% in 2010/11 to 81% in Q1-Q3 2015/16 EBITDA increase due to good product mix and high capacity utilisation EBITDA margin guidance FY 2015/16: >19% due to impact from ramp-up Chongqing plant Operating cash flow generation driven by strong EBITDA performance 18

20 Capex & Staff CAPEX CAPEX reflects investments in Chongqing project (whereof 122.1m) and technology investments in existing locations. STAFF* The increased headcount is primarily based on the Chongqing project. 8, ,417 7,638 7,321 7, , / / / /15 Q1-Q3 2014/15 ( in millions) Q1-Q3 2015/ / / / /15 Q1-Q3 2015/16 Core business Employees project Chongqing * incl. leased personnel, FTE, average for the period 19

21 Financials Q1-Q3 2015/16 in thousands (unless otherwise indicated) STATEMENT OF PROFIT OR LOSS Revenue 584, ,416 produced in Asia 81% 79% produced in Europe 19% 21% EBITDA 140, ,284 EBITDA margin 24.0% 26.0% EBIT 76,074 70,811 EBIT margin 13.0% 14.5% Finance costs - net (2,664) (4,376) Income Taxes (13,182) (16,097) Revenue increase of 19.4%: 7.6% from organic growth and 11.8% from FX effects. EBITDA increase of 10.2% based on high capacity utilisation and good product mix; Positive FX effects of 10.9m included. EBITDA margin decline in comparison to very high benchmark of 26.0% in Q1-Q3 2014/15 Higher interest expenses overcompensated by higher interest income and capitalised interests for qualified assets Profit for the period 60,228 50,338 Cash Earnings 124, ,751 EPS in

22 Profit for the period and earnings per share / / / / /15 Q1-Q3 2014/15 Q1-Q3 2015/16-20 Number of shares, average number; in million pcs. Earnings per share; in Earnings per share increased by 19.6% 21

23 Financials Q1-Q3 2015/16 in thousands (unless otherwise indicated) STATEMENT OF FINANCIAL POSITION Non-current assets 836, ,757 Current assets 639, ,055 Equity 599, ,358 Non-current liabilities 548, ,070 Improvement of net income was overcompensated by negative FX effects Current liabilities 328, ,384 Total assets 1,476,089 1,220,812 Net debt 192, ,510 Net gearing 32.1% 21.6% Net working capital 81,271 95,319 Net working capital per revenue 10.4% 14.3% Equity ratio 40.6% 49.5% 22

24 Financial debt, cash and net debt / / / / /15 Gross debt Cash Net debt 23

25 Net debt/ebitda / / / / /15 Expected multiple in temporary peak of Chongqing investments: < 3.5x 24

26 Overview Debt Portfolio Duration Maturity in millions < 1 Year 1-5 Years > 5 Years Total Corporate Bond Refinancing 2015/16 Export Loans Public funds and other Bank Borrowings Total 31/12/ Total 31/03/ Average debt portfolio duration: 4.0 years (2014/15: 3.8 years) Average financing costs of 2.7% 153m of credit lines not utilised 25

27 Financials Q1-Q3 2015/16 in thousands ) STATEMENT OF CASH FLOWS Profit for the period 60,228 50,338 Non cash bearing of profit or loss 63,195 65,442 Changes in Working Capital 6,475 (20,406) Decrease in Net Working Capital due to improved customer payment term. Cash flow from operating activities 129,898 95,374 Cash flow from investing activities (175,667) (130,433) Cash flow from financing activities 204,117 16,838 Change in cash and cash equivalents 158,348 (18,221) Continuous planned high CAPEX based on investments in Chongqing and continuous upgrades of existing production facilities. 26

28 Net Working Capital Management Net Working Capital Development - in millions and in % of revenue 18.0% 19.0% 15.6% 14.3% 10.4% / / / /15 Q3 2015/16 Net Working Capital development Net Working Capital % of revenue 27

29 AT&S - Stock Profile Listing: Indices: ThomsonReuters (A): Bloomberg (A): Vienna Stock Exchange, Prime Standard ATX, WBI ATSV.VI ATS AV # of shares outstanding 38.85m Avg. daily volume: shares Performance ytd: % Performance 1 year: % Dividend 2014/15: EUR 0.36/per share Dividend yield: 2.5% Financial Calendar 1 year development / Daily volume Annual Results 2015/16 10 May 2016 Record Date Annual General Meeting 27 June nd Annual General Meeting 07 July 2016 Ex-Dividend Day 26 July 2016 Record Date Dividend 27 July 2016 Dividend Payment Day 28 July 2016 Results for the first quarter 2016/17 28 July 2016 Results for the first half-year 2016/17 03 November 2016 AT&S ATX 28

30 AT&S Shareholder structure 14.9% of Free Float not identified 29

31 Outlook FY 2015/16 Management expects the satisfactory capacity utilisation to continue for the financial year 2015/16 provided that the macroeconomic environment remains stable and customer demand continues at a good level. On the basis of the organic growth in the first nine months, an expected seasonality in the next three months, management confirms its revenue guidance of EUR 740 million. Influenced by the expected costs of the start-up of the new plants in Chongqing, the EBITDA margin should exceed 19% (guidance at the beginning of the financial year: 18-20%). This includes an EBITDA margin in the core business at a similar level of the previous year. 30

32 Table of Contents Company Overview Strategy & Market Financials Annex 31

33 AT&S Product Portfolio 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 laser-drilled microvias. Advantage: further miniaturisation, 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 miniaturisation. 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 doublesided 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 32

34 AT&S Product Portfolio Flexible printed circuit boards Semi-flexible printed circuit boards Rigid-flex printed circuit boards Flexible printed circuit boards on aluminium AT&S patented technologies ECP: Embedded Component Packaging Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid 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. 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 Used when installing LEDs in car headlights, for example, where the printed circuit board is bonded to an aluminium heat sink to which the LEDs are then attached. Lighting, automotive, building lighting 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 site: Leoben 2.5D Technology Platform Combines mechanical and electronic miniaturisation, 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 rigid-flex printed circuit board, a lower cost alternative for flex-to install applications. Production sites: Leoben, Shanghai 33

35 Management Andreas Gerstenmayer, CEO 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 and other positions: Member of the Research Council of Styria Degree in Production Engineering from Rosenheim University of Applied Sciences Karl M. Asamer, CFO Joined AT&S as CFO in 2014 Previous positions include: Managing Director of GEKA Group in Germany Managing Director of Sell GmbH in Germany Education: Degree: doctorate in business administration in Linz, Austria Heinz Moitzi, COO 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 34

36 Milestones 35

37 CSR as a key to sustainable business success CSR gains importance in long term success Improving efficiency Motivated and qualified staff The importance of sustainability is rising within: Authorities (basis for securing operation licences) Customers (relevant for placing orders) Five core dimensions of sustainability within AT&S Energy and carbon footprint Water Resources AT&S a learning organisation Thinking ahead shaping the future 36

38 AT&S saves CO 2 and Water Sustainability Figures and Fields of Action CO 2 -Footprint ) AT&S aims to minimise its environmental footprint by reducing the CO 2 emissions per m 2 PCB attributable to production processes by 5% a year. 2011/ / / /15 In kg per sqm weighted PCB Freshwater consumption ) AT&S aims to reduce the Group s annual fresh water consumption per m 2 PCB by 3% ) Since 2012/13 calculation according to EICC standards before that AT&S internal calculation 2011/ / / /15 In liters per sqm weighted PCB 37

39 AT&S first choice for advanced applications IR Contact: Elke Koch Fabriksgasse 13, 8700 Leoben/Austria Tel: Mobile: Fax: Visit: IR_PR; YouTube AtundS 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 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. 39