EANS-News: AT & S Austria Technologie & Systemtechnik Aktiengesellschaft / AT&S continues growth course - 10% increase in revenue and EBITDA CNE

11/3/2020, 7:17 AM (Source: euro adhoc)

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Financial Figures/Balance Sheet

Leoben - 3 November 2020

* Diversified business model supports positive business development
* Significant increase in demand for ABF substrates
* Half-year revenue up 9.7% to EUR 537.8 million (PY: EUR 490.3 million), EBITDA
  margin of 20.7% at prior-year level
* Investments in the IC substrate and module business to be continued as planned
* Outlook 2020/21: Increase in revenue of ~15% with an EBITDA margin in the
  range of 20% to 22%

AT&S has managed one of the most severe economic crises since the Second World
War excellently so far and recorded a 10% increase in both revenue and EBITDA.
The diversified business model, which is additionally strengthened by the
capacity expansion for IC substrates and the establishment of the module
business, is currently robust in terms of profitability.

"AT&S is on track. Although the current pandemic weighs on demand in some areas
and has a significant impact on the target markets, we were able to continue our
growth course. The automotive market, which was hit particularly hard, is
fortunately showing signs of bottoming out from our perspective. Progressing
digitalisation thanks to increasing data traffic, the Internet of Things and
increased connectivity are currently massively raising the requirements for
digital infrastructure and its end devices. Based on the positive development in
the first half, we are optimistic for the remaining months of the financial
year. However, our business development depends on the further course of the
coronavirus pandemic, the extent of the stimulus packages offered and
geopolitical factors," CEO Andreas Gerstenmayer comments on the first six
months.

AT&S increased consolidated revenue to EUR 537.8 million (PY: EUR 490.3 million)
in the first half of the financial year. The successful start-up of the
increased production capacity in Chongqing I, which serves the growing demand
for ABF substrates, made a significant contribution to revenue growth. The
broader customer and application portfolio in the Mobile Devices segment had a
positive effect and compensated for revenue shifts due to delays in the launch
of new products. In the AIM business unit, the Industrial segment recorded an
increase in revenue. The Automotive segment was confronted with lower demand in
the first half-year, but recently showed sequential improvement. Although the
Medical segment recorded robust demand, a change in product mix caused revenue
to decline.

EBITDA rose from EUR 101.1 million to EUR 111.2 million. This increase in
earnings are primarily attributable to higher consolidated revenue, taking into
account that investments in research and development were intensified in order
to prepare for future technology generations and to pursue the modularisation
strategy. These expenditures make the company future-proof and increase the
earnings potential significantly in the medium term.

The EBITDA margin, at 20.7%, was at the prior-year level of 20.6%. EBIT improved
from EUR 29.4 million to EUR 32.8 million. The EBIT margin was 6.1% (previous
year: 6.0%). Finance cost - net declined from EUR 2.8 million to EUR -13.0
million due to a lower interest result and negative currency effects. Despite
the significantly higher operating result and above all due to the negative
finance costs - net, profit for the period decreased from EUR 19.5 million to
EUR 14.7 million.

The financial position was solid at the reporting date. Total assets rose by
9.0% to EUR 2.0 billion due to additions to assets and technology upgrades
compared with the balance sheet date.

Equity decreased by -3.9% to EUR 730.4 million due to negative exchange rate
effects. Based on this decline in equity and the increase in total assets, the
equity ratio, at 36.2%, was lower than at 31 March 2020. Net debt rose by 54.0%
from EUR 246.7 million to EUR 380.0 million due to the increase in investment
activities. Cash and cash equivalents totalled EUR 348.5 million. In addition,
AT&S has financial assets of EUR 177.7 million and unused credit lines of EUR
425.5 million to finance the future investment programme and short-term
repayments.

Key figures               Unit      H1 2019/20       H1 2020/21           Change
                                                                             in%
Revenue            EUR million           490.3            537.8             9.7%
EBITDA             EUR million           101.1            111.2            10.0%
EBITDA margin                %           20.6%            20.7%                -
EBIT
(operating         EUR million            29.4             32.8            11.8%
result)
EBIT margin                  %            6.0%             6.1%                -
Profit/loss        EUR million            19.5             14.7           -25.0%
for the period
ROCE                         %            3.4%             5.2%                -
Net CAPEX          EUR million            92.0            195.7            >100%
Cash flow from
operating          EUR million            62.2             83.6            34.4%
activities
Net debt           EUR million        246.7 *)        380.0 **)            54.0%
Earnings per               EUR            0.40             0.27           -31.7%
share
Number of                    -          10,126           10,855             7.2%
employees1)


*) As of 31.03.2020 **) As of 30.09.2020

Outlook 2020/21
Thanks to its strategic orientation, AT&S considers itself in a good position to
manage the current crisis successfully and to continue to positively participate
in the intact trends in the market.

The current expectations of the market development for the coming months of the
current financial year are as follows:

* According to current forecasts, the demand for IC substrates will continue to
  be strong.
* Due to delayed product launches, demand for mobile devices shifted into the
  third quarter of the financial year; the usual seasonality is expected for the
  fourth quarter.
* After bottoming out, the Automotive segment shows a slightly positive trend.
* The Industrial segment will remain at the level of the previous year.
* Slight growth is expected for medical applications for the full year.

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 strong results in the first half of the year, the good order situation in
the third quarter of the financial year, the successful start-up of the
additional capacity in Chongqing I and the excellent market positioning reassure
the Management Board in giving an outlook for the year despite the uncertainties
in the global markets. Assuming that there is no massive negative impact on the
relevant key markets, the production sites and the supply chain due to the
Covid-19 pandemic, the Management Board expects a significant boost for the
financial year 2020/21 with revenue growth of roughly 15% and an EBITDA margin
in the range of 20% to 22%.

Investment activities in the financial year 2020/21
"The capacity expansion in Chongqing strengthens our global market position for
IC substrates and modules; therefore we continue to drive our investment
projects. They are the basis for the company's further growth," CEO Andreas
Gerstenmayer comments on the current investment programme. 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 / Österreich

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:      VÖNIX, ATX, ATX GP, WBI
stockmarkets: Wien
language:     English

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