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RESULTS Q1-3 2024/25 CONFERENCE CALL February 04, 2025
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KEY DEVELOPMENTS Conference Call Q1-3 2024/25 Geschäftsjahr in einem heraus- forderndem Marktumfeld Q3: Stable revenue & increased adj. EBITDA Cost reductions well underway Closing of Ansan sale on January 31, 2025 Dr. Riedl succeeds the late Dr. Androsch as Chairman of the Supervisory Board Announcement of new CEO expected soon Outlook for 2024/25 confirmed 2
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2026/27 GUIDANCE UPDATE Outperforming the market in a challenging environment 3 Conference Call Q1-3 2024/25 61 67 2024e 2026e Market size PCB Advanced Substrates Overcapacity and price pressure persist Capex will be aligned to lower demand and increased flexibility Intensified effort to cut cost 2024‒26 revenue growth of ~20% CAGR CAGR: 5% CAGR: 11% 10 12 2024e 2026e in USD bn Guidance as of Dec. 17, 2024 Market size Source: Prismark, IDC | September‒December 2024
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Very weak Automotive & Industrial in Europe Mobile and Computing growth primarily in low-end markets Continued price pressure PCB AND END MARKET Conference Call Q1-3 2024/254 Weak automotive & industrials and continued price pressure Source: Prismark, IDC | September‒December 2024 Market size PCBs Automotive and industrial market size for PCBs 8.7 8.9 2.9 2.8 2023 2024e 16.5 16.9 40.6 43.8 2023 2024e PCBs for Computer, Consumer, Communication PCBs for Automotive, Industrial, Medical, Aviation 57.0 +7% PCBs for Industrial PCBs for Automotive 11.6 +1% 11.7 60.7 in USD bn
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256 218 209 283 243 745 734 18% 16% 18% 24% 20% 24% 21% Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 9M 2023/24 9M 2024/25 Q3 2024/25 BUSINESS UNIT: ELECTRONICS SOLUTIONS Conference Call Q1-3 2024/25 3rd party revenue EBITDA margin -5% 9M Revenue flat: volume growth and price pressure Q3 YoY slightly down: full yoy price effect outweighs positive product mix/volume Q3 QoQ decrease: pull-in effects in Mobile Devices and weak market Europe 5 9M YTD topline stable despite market environment Revenue and EBITDA margins in € MM
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AI investment strong Classic datacenter muted Client with moderate growth Inventories normalize IC SUBSTRATES AND END-MARKET Conference Call Q1-3 2024/256 Price pressure leads to decrease in ABF Substrates market 2023 2024e Market size for Advanced Substrates 9.5 +1% 9.6 Source: Prismark, IDC | September‒December 2024 in USD bn
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135 127 141 168 154 460 463 4% 4% 20% 12% 18% 18% 17% Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 9M 2023/24 9M 2024/25 Q3 2024/25 BUSINESS UNIT: MICROELECTRONICS Conference Call Q1-3 2024/25 3rd party revenue EBITDA margin +14% 9M Revenue flat: volume growth and price pressure Q3 YoY growth: positive effect of new customers Q3 QoQ decrease: volatile order momentum 7 BU in preparation for ramp of new plants Revenue and EBITDA margins in € MM
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Conference Call Q1-3 2024/25 AT&S GLOBAL EXPANSION THE PROGRESS HTB3 Completion of the building: 06/2024 Customers: 3 Employees: 340 (Dec. 2024) Start of production: Jan.-Mar. 2025 KULIM Completion of the building: 07/2024 Customer: AMD Employees: 1,200 (Dec. 2024) Start of production: Jan.-Mar. 2025 8
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COST SAVING AND EFFIENCY PROGRAM Conference Call Q1-3 2024/259 Strong focus on sustainable OPEX savings Cost saving program target1 [Sustainable saving in € MM] Baseline actual cost of FY23/24 ~2,500 cost saving measures are developed and tracked [Sustainable saving in € MM] € 80 MM sustainable saving achieved by Dec. 2024 1 Kulim and HTB-ICS OPEX saving excluded from the € 250 MM target and managed separately, due to the ramping situation FY24/25 saving result 120 FY24/25 FY25/26 250+ FY26/27 15 40 80 120 Q1 2024/25 H1 2024/25 9M 2024/25 FY 2024/25 expected Procurement Operation SG&A Further saving detailing out ongoing
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RESULTS Q1-3 2024/25 Petra Preining, CFO Conference Call Q1-3 2024/2510
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KEY DEVELOPMENTS Conference Call Q1-3 2024/25 Geschäftsjahr in einem heraus- forderndem Marktumfeld High leverage will be reduced Ansan sale closed on January 31, 2025 New factoring contract in finalization Financing option with IFC in finalization Net working capital optimization efforts remain high Decrease in interest rates supports financing costs Tailwind from strong US-$ supports operating business 11
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391 345 349 451 397 1,205 1,197 13% 12% 18% 21% 19% 22% 19% 18% 18% 28% 28% 27% 27% 28% Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Q1-3 2023/24 Q1-3 2024/25 2 Conference Call Q1-3 2024/25 Revenue EBITDA margin Adjusted EBITDA margin 12 +1% -1% Revenue: € 1,197 MM Group: -1% Electronics Solutions: -2%1 Microelectronics: +1%1 Adj. EBITDA2: € 332 MM Increase by 4% Adjusted EBITDA margin: +1.1pp EBITDA margin: -2.9pp Net loss: € -95 MM Decrease by € 102 MM 1 3rd party revenue 2 Adjusted for start-up effects as well as one-time costs of the efficiency and cost optimization program (incl. garden leave) Q1-3 2024/25 RESULTS SUMMARY Stable 9M YTD topline and strong Adj. EBITDA margins in € MM Revenue and EBITDA margins
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SALE OF AT&S KOREA COMPLETED Conference Call Q1-3 2024/25 Strategic profile sharpened and significant cash inflow Closing of Ansan sale to SO.MA.CI.S. on January 31, 2025 Group’s profile sharpened Effects on Q4 2024/25 figures EBITDA will be increased by approx. € 325 MM Gain will not be included in adjusted EBITDA € 386 MM of cash inflow expected (of which € 79 MM already been received) Net debt / EBITDA to fall <3 13
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676 550 Q1 20/21 Q1 21/22 Q1-3 2024/25 FINANCIAL POSITION Conference Call Q1-3 2024/25 582 134 Q4 22/23 Q2 23/24 in € MM December 31, 2024March 31, 2024 December 31, 2024March 31, 2024 Solid financial structure with € 685 MM cash, cash equivalents and unused credit lines Sale of Ansan will further increase cash & cash equivalents by € 306 MM New factoring provider contract in finalization New IFC loan of $ 250 MM (plus a possible increase of $ 150 MM) not yet included in the chart14 Ongoing measures will further increase liquidity significantly Cash & cash equivalents Balancing capital allocationUnused credit lines
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DEBT FINANCING OVERVIEW Conference Call Q1-3 2024/2515 1 Amounts by maturity as of December 31, 2024. Promissory note loans, term loans with banks, bank borrowings and others; including accrued interest and placement costs and finance leases | 2026/27 column is not including hybrid bond of € 350 MM 195 459 478 151 299 663 2024/25 2025/26 2026/27 2027/28 2028/29 > 2028/29 30.0% of debt instruments have a fixed interest rate Current financing costs of 4.80% (as of Q3 2024/25) Not yet included: new IFC lines Decrease in current financing cost in € MM Maturity of outstanding debt instruments1
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WORKING CAPITAL DEVELOPMENT Conference Call Q1-3 2024/25 Inventories WC payables2WC receivables1 Net working capital to LTM revenue 153 133 160 185 166 171 171 350 272 322 301 467 454 290 -301 -290 -339 -328 -336 -340 -340 11.7% 7.7% 9.2% 10.3% 19.3% 18.5% 7.9% Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2023/24 Q2 2024/25 Q3 2024/25 Q3 2024/25 (incl. Factoring simulation) 1 Trade and other receivables and contract assets 2 Trade and other payables and other current provisions, without liabilities from investments 3 Average factoring volume of Q2 2023/24 to Q1 2024/25 taken into account 3 16 High management focus on working capital optimization in € MM Working capital and relation to revenue
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€ MM Q1-3 23/24 Q1-3 24/25 YoY Change in % CF from operating activities 497 -29 -106% CF from investing activities -725 -306 +58% CF from financing activities 59 192 +227% Operating free CF1 -201 -357 -77% Net CAPEX 699 328 -53% CASH FLOW Conference Call Q1-3 2024/25 1 Cash flow from operating activities minus Net CAPEX17 CAPEX reduction well on track Reduced factoring activities
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BALANCE SHEET Conference Call Q1-3 2024/2518 Not reflecting Ansan sale € MM Mar. 31, 24 Dec. 31, 24 Change in % Total assets 4,675 4,803 +3% Equity 967 1,004 +4% Equity ratio 20.7% 20.9% +0.2pp Net debt 1,403 1,655 +18% Net debt/EBITDA ratio: 6.1
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CURRENT YEAR GUIDANCE Conference Call Q1-3 2024/25 FY 2024/25e Revenue Approx. € 1.5 to 1.6 bn Profitability Adjusted EBITDA margin of 24‒26% Adjusted for start-up effects as well as one-time costs of the efficiencyand cost optimization program (incl. garden leave) in the amount of approx. € 120 MM Investments Net CAPEX slightly below € 500 MM 19
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MID-TERM GUIDANCE Conference Call Q1-3 2024/25 FY 2026/27e Revenue Approx. € 2.1 to 2.4 bn Profitability EBITDA margin of 24–28% ROCE below the mid-term target of 12% Others Net debt/EBITDA: <3 (can be temporarily exceeded) Equity ratio temporarily <20% (assuming repayment of hybrid capital at the end of the 2026/27 financial year) 20
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Q&A Conference Call Q1-3 2024/25
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THANK YOU FOR YOUR ATTENTION AT&S INVESTOR RELATIONS ir@ats.net +43 3842 200 5450 Conference Call Q1-3 2024/25
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DISCLAIMER Conference Call Q1-3 2024/25 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 forward-looking 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.