EANS-News: AT & S Austria Technologie & Systemtechnik Aktiengesellschaft / AT&S starts well into the new financial year CNE

8/4/2020, 7:14 AM (Source: euro adhoc)

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Quarterly Report

Leoben -

* Excellent crisis management and stability of business structure support
  positive business development
* Quarterly revenue increases to EUR 247.9 million (PY: EUR 222.7 million),
  EBITDA margin of 15.9% at prior-year level
* Q2: Revenue expected at prior-year level and EBITDA margin in the range of 20%
  to 25%
* Investments in IC substrate and module business to be consistently continued
* AT&S considers market trends intact and adheres to medium-term guidance

AT&S reports a very good first quarter. Although the COVID-19 pandemic changed
day-to-day life in the market and in the company, AT&S was able to compensate
for the effects on ongoing production at its locations and consequently for the
economic impact. "In these turbulent times, marked by economic and market
uncertainty, the stability of AT&S's successful business structure and the
excellent market position have become evident. Close cooperation with customers,
the focus on high-end technologies and high quality standards prove to be the
basis of AT&S's success," says AT&S CEO Andreas Gerstenmayer.

Thanks to the excellent crisis management, AT&S generated a group revenue of EUR
247.9 million (PY: EUR 222.7 million). The broader customer and application
portfolio as well as increases in sales volume of IC substrates, mobile devices
and in the Industrial segment had a positive impact. Revenue in the Automotive
segment declined due to difficult market conditions.

EBITDA rose from EUR 34.9 million to EUR 39.5 million. The increase in earnings
is primarily due to the higher consolidated revenue, taking into account that
investments in research & development were intensified to prepare for future
technology generations and to pursue the modularisation strategy. These
expenditures make the company future-proof and significantly expand the earnings
potential in the medium term.

The EBITDA margin amounted to 15.9% and was therefore at the prior-year level of
15.7%. EBIT improved from EUR -0.6 million to EUR 0.2 million. The EBIT margin
was 0.1% (previous year: -0.3%). Finance costs - net declined from EUR -1.7
million to EUR -5.2 million due to lower interest and currency results.
The asset and financial position remained solid at the reporting date. Total
assets rose by 6.8% to EUR 2.0 billion compared to 31 March 2020 due to
additions to assets and technology updates.

Equity decreased by -4.5% to EUR 726.4 million, which was related to negative
earnings and currency effects. Based on the decline in equity and the increase
in total assets, the equity ratio, at 36.7% was lower than at 31 March 2020. Net
debt rose by 20.9% from EUR 246.7 million to EUR 298.3 million. Cash and cash
equivalents totalled EUR 387.6 million. In addition, AT&S also has financial
assets of EUR 224.5 million and unused credit lines of EUR 419.6 to finance the
future investment programme and short-term repayments.

Key figures               Unit      Q1 2019/20       Q1 2020/21           Change
                                                                            in %
Revenue            EUR million           222.7            247.9            11.3%
EBITDA             EUR million            34.9             39.5            13.1%
EBITDA margin                %          15.7 %           15.9 %                -
EBIT
(operating         EUR million            -0.6              0.2                -
result)
EBIT margin                  %          -0.3 %            0.1 %                -
Profit/loss        EUR million            -6.2             -7.5                -
for the period
ROCE                         %          -1.8 %           -0.9 %                -
Net CAPEX          EUR million            49.7             81.9            64.8%
Cash flow from
operating          EUR million            28.5             28.1            -1.3%
activities
Net debt           EUR million         246.7*)         298.3**)            20.9%
Earnings per               EUR           -0.21            -0.25                -
share
Number of                    -           9,965           10,587             6.2%
employees1)


*) As of 31.03.2020 **) As of 30.06.2020

Outlook 2020/21
Despite the downward revisions of economic forecasts, the global megatrends in
the electronics industry are still intact overall - especially due to
progressing digitalisation, the new 5G mobile communication standard and massive
data volume growth. AT&S is excellently positioned in this market and well
equipped to overcome the crisis.

The expectations for the individual segments of AT&S for the current financial
year are as follows:

* Product launches may be delayed in the Mobile Devices segment due to uncertain
  consumer behaviour and as a result of low visibility.
* In the Automotive segment, no quick recovery to the pre-crisis level is
  expected for the automotive market.
* From today's perspective, the development of the Industrial segment will be
  comparable to the previous year.
* Slight growth is expected for medical applications for the full year.
* The demand for IC substrates will remain strong according to current
  forecasts.

Operationally, AT&S will concentrate on optimally utilising existing and
building new capacities, especially for IC substrates and module printed circuit
boards in Chongqing in the current year, and above all continue to drive the
expansion of its business performance.

The upheavals caused by the pandemic have strongly affected predictability and
lead to uncertainty in forecasts. AT&S will therefore report on recent events in
the markets and in the company on an ongoing basis throughout the financial year
and update the outlook as soon as the economic framework conditions can be
better quantified. Based on the current information, AT&S expects a continued
solid performance in the second quarter with revenue at the level of the
previous year and an EBITDA margin in the target range of 20% to 25%.

Investment activities in the financial year 2020/21
AT&S will continue its investment programme for new capacities and technologies
in the current financial year as previously announced. In line with spending
discipline, a reduced budget of up to EUR 80 million is planned for basic
investments (maintenance and technology upgrades) depending on the market
development. As part of the strategic projects, the management plans investments
totalling up to EUR 410 million for the financial year 2020/21 - depending on
the progress of projects - plus EUR 30 million due to period shifts between the
financial years.

Further inquiry note:
Gerald Reischl, Director Communications & Public Relations 
Mobile: +43 664 8859 2452; g.reischl@ats.net

Gerda Königstorfer, Director Investor Relations 
Mobile: +43 676 8955 5925; g.koenigstorfer@ats.net

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
8700 Leoben / Austria 
www.ats.net

end of announcement                         euro adhoc
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issuer:       AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
              Fabriksgasse  13
              A-8700 Leoben
phone:        03842 200-0
FAX:          
mail:         ir@ats.net
WWW:          www.ats.net
ISIN:         AT0000969985
indexes:      ATX, WBI, VÖNIX, ATX GP
stockmarkets: Wien
language:     English

EAX0001    2020-08-04/07:14

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