20130416 phönix roadshow presentation_final_update

AT&S Roadshow | April 2013

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AT&S – the quality leader of PCB production

Best positioned in highly attractive market

IC-Substrates – the foundation for future success

Mid-term strategy and measures

Investment highlights

Appendix

Agenda

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Appendix

Agenda

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Management team – introduction

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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 businessunit 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

Heinz Moitzi, CTO

� CTO since 2005; with AT&S since 1981

� 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

� Studied electrical installation with Stadtwerke Judenburg (Judenburg municipal utility company)

Sustainable growth play

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Technology leader for high-end PCBsI

Profitable and sustainably growing marketII

Best positioning vs. Asian competitorsIII

Leveraging on technological leadershipIV

Focus on high-end production capabilities

� Production of tailor made PCBs

� Design service for customer solutions

� ECP® technology

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► Seasonality and new product launches twice a year

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Attractive business mix

Characteristic Applications

56%

SegmentRevenue

share*

*) Based on AT&S financials 1.April – 31.December 2012

44%

Mobile Device

Industry & Automotive

Advanced Packaging

Target market diversification provides for superior earnings stabilityand a close relationship with the technology leaders in each market segment

Market leaders

Siemens

General Electric

EADS

Hella

Continental

Texas Instruments

TDK-EPCOS

Sony

RIM

LG

Huawei

Nokia

ZTE

► Higher predictability and fewer product launches

FY 2011/12 FY 2012/13

FY 2011/12 FY 2012/13

� Growing business withcomplementary know-how

55.5 56.247.7

56.3 55.959.6 59.1

Q1 Q2 Q3 Q4 Q1 Q2 Q3

54.7

75.181.4

85.8

69.8 68.7

90.7

Q1 Q2 Q3 Q4 Q1 Q2 Q3

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Successful shift to Asia – fit for future growth

31% 35%

41%

53% 61%

67% 69% 73%

19.9%

17.9%

15.3% 16.4%

11.6%

9.3%

19.7% 20.1%

5.0%

10.0%

15.0%

20.0%

25.0%

0%

20%

40%

60%

80%

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Percentage of Asian production volume EBITDA margin

332 375 467 450 372 488 514486

Group revenues [€m]

Production split by region and year, revenue and margin development

� Continuous shift of production volumes to Asia

Local presence in key markets & access to emerging Asian smartphone players

� Strong presence in both Asia and Europe

� Close to the main mobile device assembly sites

� Advanced know-how to capture local market growth

Global set-up with access to key markets

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Production plants

Headquarters

Sales offices

Production plant under construction

International presence and key technology production overview

Headquarters: Leoben-Hinterberg

Target region: global

Key technologies: HDI, special products, protoypes, quick turnaround business, rigid-flex PCBs

Plant: Chongqing

(under construction)

Key production capability after

completion: IC substrates

Plant: Ansan

Target region: Korea,

Europe

Key technologies: flexible and rigid-flex PCBs

Plant: Shanghai

Target region: global

Key technologies: HDI volume business

Plant: Fehring

Target region: Europe

Key technologies: double-sided, flexible, semi-flexible, rigid-flex PCBs

Plant: Nanjangud

Target region: Europe, India

Key technologies: double-sided and multilayer PCBs

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14 13 13

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2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

� Continuous expansion of IP portfolio

Patent applications

� Over 300 R&D employees

� Sustainable R&D spend (c. 6% of sales on average)

� 15% of revenues generated by products launched within

the last three years

Innovation – the foundation for success

R&D as key growth driver Selected R&D Partners

IP portfolio

� Current IP portfolio comprises 82 patents and patent

families, most of which secure proprietary production

processes

� 5 trademarks (ECP ®, 2.5 D ®, Nucleus ®, ALIVH ®, AT&S ®)

� Rigorous protection of intellectual property rights

� Continuing expansion of patent portfolio

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Appendix

Agenda

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3

6

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On the edge of a new growth cycle

Global PCB turnover ($m)

� The PCB Market is a fast growing market� We are just at the beginning of a new growth cycle

Source: Prismark

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Technological leadership and quality focus

HDI PCB manufacturer ranking

Source: Prismark

ATS – Quality leader in PCB manufacturing

� Technology leader in the market for high-end

printed circuit boards

� Leadership in miniaturisation and integration

� AT&S’ high-end interconnection solutions give

customers a decisive competitive edge

� Highly innovative solutions implemented with

high process quality on an industrial scale

� Environmentally sustainable processes

� Quality and efficient management of natural

resources is at the heart of our plants’ setup

� Size of components continues to decrease

� Increased number of applications per area

�Further digitalisation in more and more applications

Source: Daimler, Google

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Benefiting from global megatrends

Source: ifixit

Transistor density to further increase

Source: Wikipedia (Henry‘s law)

Miniaturisation and increase of battery life

� Moore’s law: Every two years, the number of transistors per chip area doubles

iPad 1 vs. iPad 2

� More and more communication technology is being integrated into industrial solutions

� Increased health consciousness and demographic change western Europe lead to increased demand for medical diagnostics and electronic medical devices

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Appendix

Agenda

1

2

3

6

4

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IC-Substrates – a logical next step for AT&S

Year Technical Development min. L/S [µm]

Multi Layer

HDI Any Layer

Advanced Packaging

PCB

HDI Micro Via

IC Substrate

100

40

15

25

60

HDI Anylayer +

1982

1998

2005

2010

2014

2016 8

Core Business

AT&S PCB Technology Road Map

New Business

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IC-Substrates in a nutshell

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Substrate (15µm – 7µm)

PCB (50µm-25µm)

Chip (40nm – 10nm)

Main influencing factorsPerformance increase(Moores Law)

Size reduction PCB (Trend: Miniaturisation)

1

2

3 Technical parameter (~ 25µm) (Physical process border)

3

2

1

Mitochondrion – 1µmDNA – 1nmHair – 100µm

Scale:

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Main differences

Market size

No. of competitors

Prod-cap. China [%]

Tech. Spec. (L/S)

Quality standards

Level of automation

Entry barriers

PCB Commodity HDI

30.530 M$2011 7.423 M$2011

> 2000 > 50

48% 45%

-40 µm 40 µm

high high

high high

low high

IC Substrate

8.636 M$2011

< 20

5%

10-12 µm

very high

very high

very high

PCB commodity vs. HDI vs. IC-Substrate

Source: Prismark, company estimates

IC Substrate market development

IC-Substrates – an attractive niche market

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2,6383,025

3,565

4,977

6,467

7,058 6,959

5,911

8,102 8,636

8,230

9,793 10,429

11,106

11,829

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

02 03 04 05 06 07 08 09 10 11 12e 13e 14e 15e 16e

IC Substrate market [$m] Market characteristics & impact for AT&S

Source: Prismark

17% 16%

16%16%

15%

16%

38%36%

34%32%

29%28%

55% 55% 52% 50% 49% 47%

� Closed club of 4-5 players for FC-BGA

substrates

� High barriers to entry

� Key technology for future density

requirements

� For every Dollar invested we expect approx.

1.2 Dollars of revenues p.a.

� Higher operational margin expected

compared to HDI technology

Requirements AT&S’ USP

Best-positioned to enter IC-Substrates

�Highest quality

standards

� Quality leadership

� First-choice partner for industry leaders

Time-to-market � Construction of Chongqing site already started mid 2011

�

Processknow-how

� Technological leadership in high-end PCB production

� Know-how synergies from core business and patented chip embedding technology �

Strong industry partner

� Strategic partnership agreement with a major semiconductor producer

� Technological cooperation and supply agreement in place �

Ramp-upexperience

� Successful track-record of ramp-up in China

� Extensive experience in setting up new complex production processes �

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Track-record in setting up high-tech plants

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� The construction status in Chongqing is a significant business advantage for AT&S (time)

� High partner involvement ensures a fast and secure ramp-up phase

� AT&S has a proven track record in setting up a LCC plant in China

� AT&S has already received the facility, equipment and material specifications

� AT&S will receive know how transfer for the material handling, operational systems and technology recipes

Chongqing – Status quo & Roadmap

Control

Equipment Specification

transfer to AT&S

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Appendix

Agenda

1

2

3

6

4

5

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Path for sustainable growth

Strategic focus Upside potential

� Continue growth strategy (High-end Smartphones, Tablets, Ultrabooks, etc.)

� Improve GP-Margin (Portfolio management, Improve plant utilization)

� Strategic partnership with MFLEX to produce HDI rigid-flex PCBs for new applications and designs

� Increase revenue in selected market niches (medical, automotive, etc.)

� AT&S to leverage its patented chip embedding technology with a major industry player

� Enter the high margin league for technology leaders

� Estimated Capex for new plant in Chongqing of c. € 350m over the next three years

� Investment in a new high-end production line in Shanghai for a substrate technology (“interposer”)

� Earlier involvement in technology development

� New high margin business � Org. synergies Chongqing

� Earlier involvement in technology development

� Synergies within the high-margin business

� Broader IP portfolio� New business opportunities

Ne

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usin

ess

Co

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Bu

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ess

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Appendix

Agenda

1

2

3

6

4

5

Sustainable growth play

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Technology leader for high-end PCBsI

Profitable and sustainably growing marketII

Best positioning vs. Asian competitorsIII

Leveraging on technological leadershipIV

� Leading innovator in the PCB industry, specialised in integration density & miniaturisation

� First choice for top players and quality leaders in each market segment

� Highly attractive market with exposure to global key megatrends

� Focus on high-quality and thus high-margin markets

� Strong production footprint in China is key for cost efficiency and crucial to serve emerging Asian players

� Partner of choice for quality components

� Advanced Packaging: One of the first manufacturers with a patented chip embedding technology (ECP®)

� IC-Substrates: The high-margin segment of the industry

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Appendix

Agenda

1

2

3

6

4

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AT&S - Stock Profile

Listing Vienna Stock Exchange, Prime Standard

Indices ATX Prime, WBI

Reuters RIC (A) ATSV.VI

Bloomberg (A) ATS AV

# of shares issued 25.9m

# of shares outstanding 23.3m

Calendar

08.05.13 Release of Annual Results 2012/13

04.07.13 Annual shareholder meeting

25.07.13 Dividend payment date and

ex-dividend date

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AT&S – Diversification

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Turnover YTD 2012/13 Turnover YTD 2012/13

25%7%

13%

55%

Austria+Germany

Rest of Europe

Asia

Canada/USA26%

13%

50%

11%

Austria+Germany

Rest of Europe

Asia

Canada/USA

Distribution of Turnover, Ship to Party Distribution of Turnover by Headquarter

Mobile Devices

� Seasonality

� Very short prodcut life cycles

� Higher loading volatility

� Short visibility

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AT&S – Business cyclicality

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Industrial & Automotive

� Longer product life cycles

� Medical segment grows by more than 50%

� growing prototype business

� Automotive segment reports record high turn over

� Higher visibility

Distribution of Segment Turnover

in €m

54.7 55.5

75.1

56,2

81.4

47,7

85.8

56.3

69.8

55.9

68.7

59.6

90.7

59.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Mobile Devices Industrial & Automotive

Q1 FY11/12 Q2 FY11/12 Q3 FY11/12 Q4 FY11/12

Q1 FY12/13 Q2 FY12/13 Q3 FY12/13

AT&S - Financial performance

In € '000 Q1 - Q3 2012/13 Q1 - Q3 2011/12

CONSOLIDATED INCOME STATEMENT

Revenues 405,121 371,754

Produced in Asia (in %) 75 72

Produced in Europe (in %) 25 28

EBITDA 74,426 75,913

EBITDA margin (in %) 18.4 20.4

EBIT 20,981 31,644

EBIT margin (in %) 5.2 8.5

Net income 5,439 21,864

Cash Earnings 58,883 66,159

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AT&S – Sound balance sheet

In € '000 31.12.2012 31.12.2011

CONSOLIDATED BALANCE SHEET

Total assets 709,546 722,209

Total equity 289,225 289,293

Net debt 252,143 255,727

Net gearing (in %) 87.2 88.4

Net working capital 120,774 108,184

Net working capital / revenues (in %) 22.4 21.8

Equity ratio (in %) 40.8 40.1

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To find out more – visit www.ats.net

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Disclaimer

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Despite a diligent preparation of this presentation the information contained herein has not been independently verified and 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. No reliance should be placed on the fairness, accuracy, completeness or correctness of this information or opinions contained herein and 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. These are based on management’s views and assumptions and involve known and unknown risks and uncertainties. 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.

This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.