EANS-News: AT&S grows by double digits in the corona year 2020/21 CNE

5/18/2021, 7:02 AM (Source: euro adhoc)




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Annual Result

Leoben -

* Record revenue of EUR 1,188.2 million (+18.8%), 23% revenue increase in Q4
* Demand for ABF substrates continues unabated
* Production start at plant III in Chongqing to be brought forward - ramp-up in
  the current financial year
* EBITDA of EUR 245.7 million nearly at historic high, EBITDA margin improved
  from 19.4% to 20.7%
* Outlook 2021/22: revenue growth of 13 to 15%, adjusted EBITDA margin in the
  range from 21 to 23%

AT&S closed a challenging year - marked by the corona pandemic - with an
impressive performance and achieved a double-digit increase in revenue and

"With this performance, we have once again proven our resilient business model
and demonstrated that we continuously develop even in times of uncertainty. We
are growing faster than the market while being highly profitable. In the past,
we created the basis that enables us to respond quickly and consistently work on
advancing our growth strategy at the same time. We are fully on track to achieve
our goals," says CEO Andreas Gerstenmayer.

Consolidated revenue was at a record level of EUR 1,188.2 million (PY: EUR
1,000.6 million), up 19% year-on-year. Adjusted for currency effects,
consolidated revenue even rose by 22%. The additional capacity from the
Chongqing I plant, which serves the growing demand for ABF substrates, made a
significant contribution to revenue growth. In the Mobile Devices & Substrates
segment, the broader customer and application portfolio for mobile devices and
demand for printed circuit boards for modules also had a positive effect. In the
AIM segment, revenue in the Medical segment was at the prior-year level while
revenue in the Industrial segment increased slightly. After a weak first half of
the financial year, the Automotive segment recorded revenue in the second half
at the level of the previous year.

EBITDA amounted to EUR 245.7 million (PY: EUR 194.5 million) and nearly matched
the historic high of the financial year 2018/19. The earnings improvement is
predominantly attributable to the higher consolidated revenue. Currency effects,
in particular due to the weaker US dollar, had a negative impact on the revenue
and earnings development. The EBITDA margin amounted to 20.7%, thus exceeding
the prior-year level of 19.4%. EBIT improved from EUR 47.4 million to EUR 79.8
million. The EBIT margin was at 6.7% (previous year: 4.7%).

Finance cost - net changed from EUR -8.7 million to EUR -20.1 million primarily
due to currency effects. Net profit for the year rose from EUR 19.8 million in
the previous year to EUR 47.4 million as a result of the significant increase in
the operating result.

The financial position at year-end is characterised by the increase in non-
current assets. Total assets rose by 28.9% year-on-year to EUR 2,390.0 million
as a result of additions to assets and technology upgrades.
Equity increased by 5.5% year-on-year and amounted to EUR 802.0 million,
primarily due to the increase in net profit for the year. The equity ratio
declined from 41.0% in the previous year to 33.6% in the reporting year and fell
short of the medium-term target of 40.0%. This is attributable in particular to
the increase in total assets as a result of investments and securing the
financing of the future investment programme.

Cash and cash equivalents rose to EUR 552.9 million (PY: EUR 418.0 million). In
addition, AT&S has financial assets of EUR 39.7 million and unused credit lines
of EUR 418.6 million to ensure financing of the future investment programme and
short-term repayments.

"AT&S is economically stable and has a solid balance sheet structure, which was
further strengthened by capital measures in the past year. To secure financing
of the upcoming investments and ongoing business activities, we will continue to
optimise and expand our capital structure," says CFO Simone Faath.

Key figures               Unit         2019/20          2020/21           Change
Revenue            EUR million         1,000.6          1,188.2            18.8%
EBITDA             EUR million           194.5            245.7            26.3%
EBITDA margin                %           19.4%            20.7%                -
EBIT               EUR million            47.4             79.8            68.3%
EBIT margin                  %            4.7%             6.7%                -
Profit for the     EUR million         19.8 *)             47.4            >100%
ROCE                         %            2.8%             5.8%                -
Net CAPEX          EUR million           218.5            435.8            99.4%
Cash flow from
operating          EUR million           185.1            184.7           (0.3%)
Net debt           EUR million           246.7            508.5            >100%
Earnings/share             EUR            0.30             1.01            >100%
Dividend                   EUR            0.25         0.39 **)            56.0%
Number of
employees                    -          10,239           11,349            15.0%

*) Adjustment hedge accounting previous year
**) Proposal to the Annual General Meeting

Outlook 2021/22
The global trend towards a digital society will continue to progress in the
financial year 2021/22. The use of ever smarter devices, i.e. devices equipped
with intelligence, and increasing interconnection are generating exponential
data volume growth. With its solutions and services, AT&S is excellently
positioned in all market segments affected by this development. AT&S will
exploit the business opportunities arising from this development in order to
grow profitably and faster than the market in the future. To enhance our
performance, we consistently invest large sums in technology and capacity
expansion. Our long-term corporate goals reflect our clear growth ambitions in
profitable market segments and applications.

The positive outlook of the electronics industry is currently dampened by a
shortage of semiconductors. The expectations for AT&S's segments are currently
as follows: the persisting strong demand for IC substrates continues to offer
significant growth opportunities in the medium term. The 5G mobile communication
standard will continue to drive growth in the area of Mobile Devices. An upturn
is expected in the Automotive segment despite the semiconductor shortage. Driven
by a boom in industrial robots and the roll-out of the 5G infrastructure, the
Industrial segment will continue to see a positive development in the coming
year. AT&S expects a positive development in the Medical segment for the current
financial year.

Operationally, AT&S will concentrate on the start-up of the new production
capacities at plant III in Chongqing, carry out technology upgrades at other
locations and continue to drive its business performance.

"The market for communication infrastructure, which is responsible for data
transmission, is booming and so is demand for processing capacity. Digitisation
in all areas of life will continue to develop dynamically. Therefore, we are
investing in additional capacity and are significantly expanding our market
position of ABF substrates," says Andreas Gerstenmayer.

Up to EUR 100 million is budgeted for basic investments (maintenance and
technology upgrades) depending on market development. As part of the strategic
projects, the management is planning investments totalling up to EUR 450 million
for the financial year 2021/22 depending on the progress of projects, plus
another EUR 80 million due to period shifts between the financial years.

Guidance for the financial year 2021/22
Against the background of the expectations for global economic growth, of the
available capacities and the markets relevant to AT&S as described above, the
company expects revenue growth of 13 to 15% in the financial year 2021/22,
assuming a euro/US dollar exchange rate of 1.18. Taking into account special
effects amounting to approximately EUR 40 million from the start-up of new
production capacities in Chongqing, the adjusted EBITDA margin is expected to
range between 21 and 23%.

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

Gerda Königstorfer, Director Investor Relations 
Mobile: +43 676 89555925
Email: g.koenigstorfer@ats.net

end of announcement                         euro adhoc

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

EAX0001    2021-05-18/07:02

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