AT&S Investor and Analyst Presentation October 2017

AT&S Investor and Analyst Presentation October 2017

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  AT & SAustria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse 13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-Mail [email protected] www.ats.net AT&S First choice for advanced applications Investor and Analyst Presentation October 2017
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  Company Overview Strategy &Market Annex Financials Table of Contents 1
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  High-end interconnect solutions for Mobile Devices,Automotive, Industrial, Medical Applications and Semiconductor Industry Continuously outperforming market growth € 814.9m revenue in FY 2016/17 # 1 manufacturer in Europe # 3 in high-end technology worldwide 9,901 employees Cost-competitive production footprint with 6 plants in Europe and Asia AT&S – a world leading high-tech PCB and IC substrates company 2
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  Outstanding process know-how and process efficiency Ourcompetitive advantages Cost advantage as first high-end IC substrates manufacturer in China Strategic focus on high-end technologies and applications Technology leverage between customer segments Quality 3
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  What guides us VisionFirst choice for advanced applications Targets  Strengthening the technology leadership  Long-term profitable growth with the target to be one of the most profitable players in the industry  Generation of shareholder value Strategy  Focus on high-end technologies and applications with above average growth potential and long-term profitability  Focus on highest service-level and customer orientation  Focus on operational excellence  Focus on cash flow generation 4
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  High-end PCBs andIC substrates for high-end applications Revenue Share*Segment Selected Market Leaders** GoPro Sony LG Canon Qualcomm Lenovo Nvidia Vivo Huawei Samsung Xiaomi ZTE Intel Apple Alphabet Asus Selected Applications Osram Hella Siemens Boston Scientific Continental Harman Airbus Sonova Mobile Devices & Substrates Automotive, Industrial, Medical Consumer Electronic Smartphones Wearables Tablets, Ultra- books, 2 in 1 Automotive: Navigation, Advanced Driver Assistance Systems, Infotainment... Industrial: Machine-2-Machine communication, industry computer... Medical: MRT, hearing aids, pacemaker, patient monitoring... * Based on external revenue; Q1 2017/18 ** Does not reflect actual customer base 5 IC substrates for High Performance Computing 57% 43%
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  542 590 667 763 815 179 200 102 127 168168 131* 19* 30*31 54 90 77* 7* (9)* (3)* 2012/13 2013/14 2014/15 2015/16 2016/17 Q1 2016/17 Q1 2017/18 Revenue EBITDA EBIT AT&S – Key Facts Good track record1 Balanced portfolio/Global customer base2 7% Split revenue: Business Unit, Q1 2017/18 Split revenue: Customer Region, Q1 2017/18 based on sold to party +9% +13% +14% +7% * Based on ramp-up effects for new plants in China Revenue growth € in millions 6 57% 43% Mobile Devices & Substrates Automotive, Industrial, Medical 26% 7% 12% 55% Germany/Austria Other European countries Asia Americas +12%
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  Global footprint ensuresproximity to supply chain & cost efficiency  European production facilities: high mix/low volume  Asian production facilities: high volume/low mix  Sales network spanning three continents  9,901 employees* Plant Shanghai, China Staff: 4,666* Plant Ansan, Korea Staff: 306* Plant Nanjangud, India Staff: 1,115* Plant Chongqing, China In ramp phase Staff: 2,360* Plant Leoben, Austria Headquarters Staff: 995* Plant Fehring, Austria Staff: 383* AT&S sales officesAT&S plants * Average, FTE, Q1 2017/18; 76 employees in other locations 7
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  14.6 14.5 15.3 17.3 7.6 8.7 5.2 6.13.7 4.5 2.4 2.8 48.8 53.9 20172021 Computing Communication Consumer Automotive Industrial/Medical Military/Aerospace 5.0% 4.0% 3.5% (0.2%) 3.0% PCB market – Overview Source: Prismark, Feb. 2017; Yole Apr. 2017 Moderate growth of 2.4% forecast for the total PCB market until 2021. CAAGR 2017- 2021: 2.4% 3.8% USD in billions 8 AT&S outperformed a flat market in the past 6 years and is set to continue to do so also in the future. 100.5 101.3 103.7 96.9 95.1 105.4 114.8 129.8 148.4 158.5 2011* 2012 2013 2014 2015 2016 Index (2011 = 100)* PCB & substrates market AT&S revenue * Basis 2011: PCB & substrates market: USD 55.4bn AT&S revenue: € 514m AT&S outperformed the market by scaling high-end any-layer technology and by leveraging HDI technology to the Computer-, Consumer-, Automotive-, Industrial and Medical market.
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  Company Overview Strategy &Market Annex Financials Table of Contents 9
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  10 AT&S positioning Strategic focuson high-end technologies AT&S revenue structure in 2016/17 – based on technologies High-end HDI PCBs and IC substrates ~ 30% Single-sided (SS), double-sided (DS), multilayer (ML), flex and rigid-flex (RF) PCBs ~ 70% High-end technology share > 70% HDI and any-layer PCBs, Embedding, IC substrates Complementary technology share: < 30% SS, DS, ML, Flex, RF Structure of general PCB market – based on technologies
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  11 Source: Prismark 2016;NTI 2016; AT&S Strategy * N/A due to single customer Market position HDI Technology Revenue (USD in millions) Rank Country Supplier HDI Non HDI PCBs IC substrates Total revenue 1 TWN Unimicron 802 490 830 2,122 2 TWN Compeq 679 716 - 1,395 3 AUT AT&S 596 248 -* 844 4 USA TTM 501 1,987 - 2,488 5 JPN Ibiden 368 - 929 1,297 6 TWN Tripod 316 1,052 - 1,368 7 TWN Unitech 311 123 - 434 8 KOR SEMCO 296 204 844 1,344 9 JPN Meiko 251 474 - 725 10 KOR DAP 226 - - 226 Market Player/Position HDI Technology
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  12 Driving Future Trends:Internet of Things (IoT) Applications Everything is going to be smart and/or connected  Healthcare & Fitness  Smart Watches and Glasses Wearable Electronics Smart Mobility  Autonomous Driving  Car2X Communication Smart City  Smart Lighting Smart Buildings  Home/Building Automatization  Smart Home Devices Smart Production/Industry 4.0  Automatization/Robotics  Machine-to-Machine Communication Smart Healthcare  Connected Patient Monitoring Systems  Connected Consumer Healthcare Devices Smart Energy  Smart Metering  Building Blocks of IoT Modules: Sensing, Connectivity, Energy Storage/Harvesting, Power Management  30-50 billion of “Things” will be connected in 2020  Wearable electronic devices offer revenue opportunities of USD 61.7bn beyond the smartphone market in 2020 Source: Gartner Inc. 2016
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  The world ischanging – miniaturization & modularization as main drivers 2003/04 2013 2017 202x ? Type Mobile Phone Smartphone Smartphone All in One PCB 125x55mm 85x20mm 80x20mm 25x25mm ? Form factor 1 0.25 0.23 0.06 ? Line/Space 100/100µm 40/40µm 30/30µm 10/10µm Techn. 1-n-1 Any-layer mSAP – Any-layer FO/SAP/mSAP 13
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  From vision tostrategy 14 Targets/Key Performance Indicators Strategy Expansion of technology leadership • Leading provider of new interconnect solutions • Innovation revenue rate: > 20%  Focus on high-end technologies and applications  Focus on innovative solutions Long-term profitable growth • Medium-term EBITDA margin target of > 20% • Short-term revenue target of € 1 billion  Focus on fast-growing and profitable applications  Highest service level and customer orientation  Operational excellence  Focus on cash flow generation Creation of shareholder value • Long-term ROCE of 12%  Sustainable business development with focus on ROCE  Transparent dividend payout Vision: “First choice for advanced applications” The best employees and management team members • Talent programs • Training and continuing development • Leadership Excellence program Sustainable business leadership Benchmark in the industry through reduction of: • 5% in CO2 emissions p.a. • 3% in freshwater consumption p.a. Capital Excellence • Equity ratio: > 40% • Financing costs of < 2% (in a corresponding interest environment) • Payback period of debt of < 3 years
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   21.8% ofAT&S‘ total revenue in 2016/17 is generated by products with new, innovative technologies introduced to the market within the last three years (Innovation Revenue Rate).  196 patent families, resulting in 227 patents.  R&D expenses: € 62.8m in the financial year 2016/17. R&D quota (i.e. relation to revenue): 7.7%. 24.7 31.8 57.9 95.5 62.8 2012/13 2013/14 2014/15 2015/16 2016/17 19.2 26.5 29.2 19.6 21.8 2012/13 2013/14 2014/15 2015/16 2016/17 124 153 174 212 227 2012/13 2013/14 2014/15 2015/16 2016/17 IRR (Innovation Revenue Rate) € in millions in % Quantity PatentsR&D expenses Research and development as the key for technological leadership 15
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  Overview of thetransformation from a high-end PCB manufacturer to a high-end interconnect solutions provider: Core business New technologies and interconnect solutions Extended technology toolbox Additional customers Additional applications Broader positioning in the value chain MorethanAT&S + Future positioning as leading high-end interconnect solutions provider 16
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  Plants Chongqing IC substrateproject Investment* Phase 1: ~ € 280m Investment* as of 30/06/2017: € 267m mSAP project Investment* Phase 1**: ~ € 230m Investment* as of 30/06/2017: € 222m  Plant 1 - IC substrates: > 12 products for client computer and server qualified, 7 under qualification > Price pressure remains > Operational performance on target level (output, yield) > Focus on improvement activities will remain > Introduction of next generation products expected for beginning of 2018  Plant 2 - mSAP: > mSAP successfully implemented > Serial production started in July 2017 * CAPEX for tangible fixed assets ** incl. investment of ~ € 30m for mSAP technology 17
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  18 Company Overview Strategy &Market Annex Financials Table of Contents
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  Sound top-line growth,margins influenced by new plants in Chongqing Revenue YoY growth Operating Cash Flow YoY development EBITDA and EBITDA-margin  Increase despite lost capacities in plant Shanghai; main revenue contribution from Chongqing plant 1.  Increase mainly due to improvements in Chongqing plant 1 and stable core business.  Decrease based on higher net working capital (seasonal increase and discontinuation of several optimization programs). € in millions 541.7 589.9 667.0 762.9 814.9 178.9 199.6 € in millions € in millions; % 19 102.4 127.2 167.6 167.5 130.9 18.8 29.7 18.9% 21.6% 25.1% 22.0% 16.1% 10.5% 14.9% 71.7 104.8 143.9 136.9 136.4 (11.8) (49.3)
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  68.0 88.7 120.9 104.5 115.9 112.2 123.4 101.097.7 126.6 148.6 113.7 113.6 Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1 2017/18  Revenue increase mainly based on contribution from Chongqing – but also stable demand in core business despite lost capacities in plant Shanghai.  EBITDA improvements resulting mainly from improvement measures from Chongqing as well as positive FX effects. Business Development – Mobile Devices & Substrates € in millions (unless otherwise indicated) Q1 2016/17 Q1 2017/18 Change in % Revenue 120.4 137.3 14.0% Revenue with external customers 97.7 113.6 16.2% EBITDA 8.7 20.9 139.3% EBITDA margin 7.3% 15.2% - € in millions; * Revenue with external customers Revenue per quarter* 20 Trendline expressing seasonality
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  72.6 71.7 65.9 72.6 77.8 79.5 72.776.6 80.4 79.9 78.9 84.9 85.0 Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 Q1 2015/16 Q2 2015/16 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1 2017/18  Automotive, Industrial, Medical continued growth course in all sub-segments.  EBITDA increase based on better product mix and cost- and efficiency improvements, negatively impacted by FX effects and price increases of raw materials. Business Development – Automotive, Industrial, Medical 21 € in millions; * Revenue with external customers € in millions (unless otherwise indicated) Q1 2016/17 Q1 2017/18 Change in % Revenue 86.7 89.6 3.3% Revenue with external customers 80.4 85.0 5.7% EBITDA 8.9 9.7 9.6% EBITDA margin 10.2% 10.9% - Revenue per quarter* Linear trendline demonstrating more stable business develop- ment
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  Net CAPEX &Staff Net CAPEX Net CAPEX spending of € 69.7m in Q1 2017/18 includes investments in Chongqing project (whereof € 36.0m) and technology investments in existing locations. STAFF* The increased headcount is primarily based on Chongqing. € in millions 66.3 76.2 49.8 48.4 69.7 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q4 2016/17 Q1 2017/18 7,339 7,386 7,417 7,443 7,541 1,826 1,929 2,035 2,083 2,360 9,165 9,315 9,452 9,526 9,901 Q1 2016/17 H1 2016/17 Q1-3 2016/17 2016/17 Q1 2017/18 Core business Employees Chongqing * incl. contractors, FTE, average for the period 22
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  € in thousands(unless otherwise stated) Q1 2016/17 Q1 2017/18 Change YoY STATEMENT OF PROFIT OR LOSS Revenue 178,867 199,636 11.6% produced in Asia 79.0% 81.0% 2.0pp produced in Europe 21.0% 19.0% (2.0pp) EBITDA 18,831 29,651 57.5% EBITDA margin 10.5% 14.9% 4.4pp EBIT (9,169) (3,408) 62.8% EBIT margin (5.1%) (1.7%) 3.4pp Finance costs – net (5,718) (2,217) 61.2% Income taxes 1,253 (5,604) (>100%) Loss for the period (13,634) (11,229) 17.6% Earnings per share (€ 0.35) (€ 0.29) 17.6% Financials Q1 2017/18 23 Increase despite lost capacities in plant Shanghai; main contribution from Chongqing. Increase mainly due to improvements in Chongqing. Lower capitalized interests, positive FX effects vs. negative FX effects last year. No capitalized deferred taxes for Chongqing, reduced tax scheme Shanghai not yet in place. Higher depreciation of € 5.1m caused lower EBIT improvements.
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  € in thousands(unless otherwise stated) 31 Mar 2017 30 Jun 2017 Change STATEMENT OF FINANCIAL POSITION Non-current assets 1,029,363 994,010 (3.4%) Current assets 407,331 309,837 (23.9%) Equity 540,094 485,243 (10.2%) Non-current liabilities 569,849 563,626 (1.1%) Current liabilities 326,751 254,978 (22.0%) Total assets 1,436,694 1,303,847 (9.2%) Net debt 380,549 496,735 30.5% Net gearing 70.5% 102.4% 31.9pp Net working capital 24,374 90,355 >100% Net working capital per revenue 3.0% 11.3% 8.3pp Equity ratio 37.6% 37.2% (0.4pp) Financials Q1 2017/18 24 Decrease due to net loss and negative FX effects of € 43.6m. Increase due to CAPEX spending and increase of net working capital. Seasonal increase and discontinuation of several optimization programs.
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  299 372 405 523 593 559 82 261 274 260 212 62 217 111 131 263 381 497 2012/13 2013/142014/15 2015/16 2016/17 Q1 2017/18 Gross debt Financial assets and cash Net debt 2.1 0.9 0.8 1.6 2.9 2012/13 2013/14 2014/15 2015/16 2016/17  Target: < 3x Net debt/EBITDA Gross debt, financial assets and cash, net debt  Reflects CAPEX for and financing start-up phase in Chongqing as well as upgrades on other locations. € in millions 25 Gross debt, financial assets and cash, net debt Multiple
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  Overview Debt PortfolioDuration 26 Maturity * Including accrued interest and placement costs 78.7% 19.6% 1.7% Currency mix of debt portfolio EUR USD RMB € in millions* < 1 Year 1-5 Years > 5 Years Total Promissory note loans 2014 0.8 61.1 5.0 66.9 Promissory note loans 2015 1.7 153.4 66.2 221.3 Promissory note loans 2016 0.3 49.9 100.0 150.2 Subsidized loans 13.1 28.3 - 41.4 Bank Borrowings and others 29.8 48.9 - 78.7 Total 30/06/2017 45.7 341.6 171.2 558.5 Total 31/03/2017 73.0 348.3 171.5 592.8  Average debt portfolio duration: 3.8 years (2016/17: 3.7 years)  Average financing costs: 2.6% (as of 30/06/2017)  € 235m of credit lines not utilized (as of 30/06/2017)  Currency mix of EUR and USD to support natural hedging strategy
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  € in thousands Q12016/17 Q1 2017/18 Change YoY STATEMENT OF CASH FLOWS Operating result (EBIT) (9,169) (3,408) 62.8% Paid/received interests (1,414) (3,379) (>100%) Paid taxes (5,145) (8,771) (70.5%) Non cash bearing of profit or loss 24,293 33,078 36.2% Cash flow from operating activities before changes in working capital 8,565 17,520 >100% Changes in working capital (20,363) (66,813) (>100%) Cash flow from operating activities (11,798) (49,293) (>100%) Cash flow from investing activities (101,527) (66,966) 34.0% Cash flow from financing activities 125,671 (25,082) (>100%) Change in cash and cash equivalents 12,346 (141,341) (>100%) Financials Q1 2017/18 27 Stable CAPEX for equipment, lower CAPEX for financial assets. Decrease based on higher net working capital. Increase due to two new promissory note loans of total € 150m payable in Q1.
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  Net Working CapitalManagement 103 92 95 88 24 90 19.0% 15.6% 14.3% 11.6% 3.0% 11.3% 2012/13 2013/14 2014/15 2015/16 2016/17 Q1 2017/18 Net working capital Net working capital per revenue € in millions; % of revenue Net Working Capital development 28
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  AT&S – StockProfile Listing: Vienna Stock Exchange, Prime Standard Indices: ATX Prime, WBI Thomson Reuters (A): ATSV.VI Bloomberg (A): ATS:AV Results for the first half-year 2017/18 03 November 2017 Results for the first three quarters 2017/18 31 January 2018 Annual results 2017/18 08 May 2018 Record date Annual General Meeting 25 June 2018 24th Annual General Meeting 05 July 2018 Ex-dividend day 24 July 2018 Record date dividend 25 July 2018 Dividend payment day 26 July 2018 29 Financial Calendar Shareholder structure # of shares outstanding 38.85m Average daily volume: ~ 62,500 shares* Performance YTD: +28.89%* Dividend 2016/17: € 0.10 per share Dividend yield: 1.0% * 01/01/2017 – 30/09/2017
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  Outlook FY 2017/18 30 AT&S expects for the core business a continuous growing demand in all customer segments – in a highly competitive environment.  Provided that the market environment and the exchange rate development remain stable, management expects revenue growth of 20-25%. EBITDA margin should be on a level of 19-22%, based on the market effects on IC substrates, and the ramp of the mSAP production lines. Higher depreciation for mainly new production lines of additional ~ € 15m in FY 2017/18 will impact EBIT.
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  Overview of thetransformation from a high-end PCB manufacturer to a high-end interconnect solutions provider: New technologies and interconnect solutions Additional customers Additional applications MorethanAT&S +  This new positioning “More than AT&S” is the foundation for returning back to an EBITDA margin level > 20% (mid-term target). Outlook beyond 2017/18 31 Extended technology toolbox Core business Broader positioning in the value chain
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  32 Company Overview Strategy &Market Annex Financials Table of Contents
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  AT&S Product Portfolio– I ECP®: Embedded Component Packaging IC substrates Substrate-like printed circuit boards mSAP Embedded Component Packaging allows to embed active/passive components (e.g. wafer level dies) within the layers of a PCB – contributes to miniaturization. IC substrates serve as interconnection platform with higher density (Line/Space < 15 micron) between semiconductors (Chips) & PCBs . Substrate-like PCBs (mSAP technology) are the next evolution of high-end HDI PCBs with higher density: Line/Space < 30 micron. Production site Leoben Chongqing Chongqing, Shanghai Applications Devices such as smartphones, tablets, digital cameras and hearing aids High-end processors for Computer, Communication, Automotive, Industrial Mobile applications like smartphones 33
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  AT&S Product Portfolio– II HDI any-layer printed circuit boards HDI microvia printed circuit boards – high density interconnect Multilayer printed circuit boards Double-sided printed circuit boards IMS printed circuit boards – insulated metal substrate Further technological enhancement to HDI microvia: All electrical connections in HDI any-layer boards consist of laser-drilled microvias. Advantage: further miniaturization, and higher performance and reliability. AT&S produces HDI any-layer in 4 to 12 layers. HDI: high density interconnect, meaning laser-drilled connections (microvias). HDI is first step towards miniaturization. AT&S can produce 4-layer laser PCBs up to 6-n-6 HDI multi layer PCBs. Found in almost every area of industrial electronics. AT&S produces printed circuit boards with 4 to 28 layers, in quantities from individual prototypes to small batches and mass production. Used in all areas of electronics. AT&S focuses on double-sided printed circuit boards with thicknesses in the range of 0.1-3.2mm. IMS: insulated metal substrate. Primary function: heat dissipation for use mainly with LEDs and power components. Production site Shanghai Shanghai, Leoben Leoben, Nanjangud, Fehring Fehring, Nanjangud Fehring Applications Smartphones, Tablets, Notebooks Mobile phones and nearly all electronic applications including automotive (navigation, infotainment and driver assistance systems) Used in all electronic applications including touch panels, and in products ranging from aircraft to motorcycles, from storage power plants to solar arrays Primarily industrial and automotive applications Lighting industry 34
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  AT&S Product Portfolio– III Flexible printed circuit boards Semi-flexible printed circuit boards Rigid-flex printed circuit boards Flexible printed circuit boards on aluminum AT&S patented technologies Used to replace wiring and connectors, allowing for connections and geometries that are not possible with rigid printed circuit boards. More limited bend radius than flexible printed circuit boards. The use of a standard thin laminate makes them a cost-effective alternative. Combine the advantages of flexible and rigid printed circuit boards, yielding benefits for signal transmission, size and stability. Used when installing LEDs in car headlights, for example, where the printed circuit board is bonded to an aluminum heat sink to which the LEDs are then attached. Production site Ansan, Fehring Fehring Leoben, Ansan Ansan Applications Nearly all areas of electronics, including measuring devices and medical applications Automotive applications Industrial electronics, such as production machines and industrial robots Lighting, automotive, building lighting ECP®: Embedded Component Packaging ECP® is a patented AT&S packaging technology used to embed active and passive electronic components in the inner layers of a printed circuit board. ECP® technology is used in ever smaller, more efficient and more powerful devices, such as smartphones, tablets, digital cameras and hearing aids. Production site: Leoben 2.5D® Technology Platform Combines mechanical and electronic miniaturization, and enables partial reduction of the thickness of a circuit board. Advantage: populated assemblies have a thinner profile. Can be also used to make cavities in the printed circuit board, e.g. for acoustic channels. Major application for this technology is the 2.5D® rigid-flex printed circuit board, a lower cost alternative for flex-to install applications. Production sites: Leoben, Shanghai 35
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  Management Andreas Gerstenmayer, CEO Born 1965; 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 business unit 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, COO  Born 1956; COO 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 Monika Stoisser-Göhring, CFO  Born 1969; CFO since 2017  Previous positions include:  Since 2011 with AT&S in senior positions in Finance and Human Resources  Various positions at international accounting and tax consulting companies  Education:  Training as Tax Consultant  Degree in Business Administration from Karl-Franzens University Graz * He was already with the founding company of AT&S  Responsibilities:  Sales and Marketing  Procurement  Investor Relations, External and Internal Communications  Business Development & Strategy  Compliance  Responsibilities:  Finance and Accounting, Treasury  Controlling  Human Resources incl. CSR & Sustainability  Legal Affairs, Risk Management and Internal Audit  IT & Tools  Responsibilities:  Research & Development (R&D)  Operations  Quality Management  Business Process Excellence  Environment  Safety 36
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  Milestones in theGroup’s history 1987 Founding of the Group, emerging from several companies owned by the Austrian State Owned Industries. 1994 Privatization and acquisition by Messrs. Androsch, Dörflinger, Zoidl. 1999 Initial public offering on Frankfurt Stock Exchange („Neuer Markt“). Acquisition of Indal Electronics Ltd., largest Indian printed circuit board plant (Nanjangud) – today, AT&S India Private Limited. 2002 Start of production at new Shanghai facility – one of the leading HDI production sites in the world. 2010 Start of production at plant II in India. 2009 New production direction: Austrian plants produce for high-value niches in the automotive and industrial segment; Shanghai focuses on the high-end mobile devices segment. 2008 AT&S changes to Vienna Stock Exchange. 2006 Acquisition of Korean flexible printed circuit board manufacturer, Tofic Co. Ltd. – today, AT&S Korea Co., Ltd. 2015 AT&S again achieves record high sales and earnings for financial year 2014/15 and decides to increase the investment program in Chongqing from € 350m to € 480m. 2011  Construction starts on new plant in Chongqing, China.  Capacity increase in Shanghai by 30%. 2013 AT&S enters the IC substrates market in cooperation with a leading manufacturer of semiconductors. 2016 AT&S starts the serial production of IC substrates at the plant in Chongqing. 37
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  Five core dimensionsof sustainability within AT&S Energy and carbon footprint Water AT&S – a learning organizationResources Thinking ahead – shaping the future CSR gains importance in long term success  Improving efficiency  Motivated and qualified staff CSR as a key to sustainable business success The importance of sustainability is rising within:  Authorities (basis for securing operation licenses)  Customers (relevant for placing orders) 38
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  AT&S saves CO2and Water… AT&S aims to minimize its environmental footprint by reducing the CO2 emissions per m2 PCB attributable to production processes by 5% a year. ** in liters per sqm weighted PCB * in kg CO2 per sqm weighted PCB 39 51.0 50.7 49.0 50.7 55.7 2012/13 2013/14 2014/15 2015/16 2016/17 Carbon footprint* 834.7 783.9 734.0 718.6 739.5 2012/13 2013/14 2014/15 2015/16 2016/17 Freshwater consumption**  Increase is based on growing product complexity  Evaluation and adjustment of sustainability key performance indicators by a complexity factor AT&S aims to reduce the Group‘s annual fresh water consumption per m2 PCB by 3%.
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  Visit: www.ats.net; Twitter@AT&S IR_PR; YouTube AtundS AT&S – First choice for advanced applications IR contact: Elke Koch Fabriksgasse 13, 8700 Leoben/Austria Tel: +43 3842 200 5925 Mobile: +43 676 8955 5925 Fax: +43 3842 200 15909 [email protected] www.ats.net 40
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  Disclaimer This presentation isprovided 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. 41