AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
EANS-News: AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
First half of 21/22 ? AT&S continues strong growth course
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Earnings
Leoben -
* Half-year revenue increases by 30% to EUR 698 million (PY: EUR 538 million)
* Adjusted EBITDA at EUR 140 million, up 23% on the previous year
* Guidance for FY 21/22 increased: revenue growth of 21-23% (previously: 17-
19%), adjusted EBITDA margin expected in the range of 21-23%
* Even more favourable impact of positive market environment and major projects
in China and Malaysia on medium-term guidance
Leoben - AT&S reports a very positive revenue development in the first half of
2021/22.
"Our performance in the first half of the year once again shows the positive
dynamics in our sector and proves that we are consistently implementing the
right strategy. Despite the volatility in some of our markets, we see a
continued sharp increase in demand for our products. As we expand our capacity,
we will be able to serve this demand even better in the future," says CEO
Andreas Gerstenmayer. "We expect our revenue to increase by 21 to 23 percent
already this year. Our strategy is also proving successful in the medium term,
so that we now anticipate revenue of EUR 3.5 billion in the financial year 2025/
26 due to positive product mix developments," Gerstenmayer comments on the
further development.
Consolidated revenue rose by 29.7% to EUR 697.6 million in the first half of
2021/22 (PY: EUR 537.8 million). Adjusted for currency effects, the increase in
consolidated revenue even amounted to 34.8%. As expected, the additional
capacity in Chongqing to cover growing demand for ABF substrates directly
contributed to this growth. The broader application portfolio for mobile devices
and the demand for module printed circuit boards also supported the growth
trend. In the AIM segment, all three areas contributed to revenue growth, with
the Industrial segment recording the sharpest increase. In the Automotive
segment, the shortage of semiconductors has so far not led to any significant
limitations on revenue, but the company will continue to monitor the development
in this segment very closely.
EBITDA increased by 17.7% from EUR 111.2 million to EUR 130.9 million. While
revenue growth had a positive impact on earnings, the start-up costs in
Chongqing and higher material, transport and energy costs reduced earnings. In
addition, AT&S significantly increased its research and development expenses,
enabling the company to live up to its role as an innovation driver. Currency
fluctuations of the US dollar and the Chinese renminbi had a negative impact of
EUR 29.0 million on the earnings development. Without these fluctuations, growth
would have amounted to 43.8%.
Adjusted for the start-up costs, EBITDA amounted to EUR 140.3 million (PY: EUR
113.8 million), which corresponds to an increase by 23.3%. Not including start-
up costs and currency fluctuations, earnings would have increased by 48.8%.
The EBITDA margin amounted to 18.8% (EBITDA margin adjusted for start-up costs:
20.1%), falling short of the prior-year level of 20.7% (EBITDA margin adjusted
for start-up costs: 21.2%). Depreciation and amortisation rose by EUR 22.0
million compared with the previous year and amounted to EUR 100.4 million due to
additions to assets and technology upgrades. As a result, EBIT declined from EUR
32.8 million to EUR 30.5 million. The EBIT margin amounted to 4.4% (PY: 6.1%).
Finance costs - net improved from EUR -13.8 million to EUR - 7.8 million due to
lower negative exchange rate effects. Profit for the period increased by EUR 4.2
million from EUR 14.1 million to EUR 18.3 million primarily due to the
improvement in finance costs - net.
The financial position was characterised by an increase in non-current assets at
the end of the reporting period. Total assets rose to EUR 2,639.6 million, up
10.4% compared with 31 March 2021, as a result of additions to assets and
technology upgrades. The significant increase in total assets led to a decline
in the equity ratio by 0.5 percentage points although equity rose by 8.7%. The
equity ratio thus amounted to 33.0% at the end of the first half-year and
temporarily fell short of the medium-term target of 40.0% due to the extensive
investment programme.
Cash and cash equivalents decreased to EUR 437.4 million (31 March 2021: EUR
552.9 million). In addition, AT&S has financial assets of EUR 16.4 million and
unused credit lines of EUR 318 million to secure the financing of the future
investment programme and short-term repayments.
Expansion of the Leoben site
In view of the ongoing boom in demand in the microelectronics sector and ever-
new performance requirements for electronic systems, AT&S has decided to put an
even stronger focus on research and development. On 15 October 2021, the company
therefore announced investments in a new R&D center for substrate and packaging
solutions for the global semiconductor industry at its location in Leoben-
Hinterberg. In addition, another technology upgrade of the production facilities
will be implemented. The investments totalling EUR 500 million are planned up to
2025. The investment total includes previously communicated investments in a
technology upgrade and the new AT&S office building.
Outlook 2021/22
AT&S will concentrate on the start-up of the new production capacities at plant
III in Chongqing, continue to push ahead the investment project in Kulim,
Malaysia, and implement technology upgrades at other locations in the current
year.
The expectations for AT&S's segments are currently as follows: the persisting
strong demand for IC substrates also offers significant growth opportunities in
the medium term. The 5G mobile communication standard will continue to drive
growth in the area of Mobile Devices. A positive development is expected in the
Automotive segment despite the semiconductor shortage. Driven by the roll-out of
the 5G infrastructure, the Industrial segment will continue to see a positive
development in the coming year. In the Medical segment, AT&S expects a positive
development for the current financial year.
The company still plans to invest up to EUR 700 million in new capacities and
technologies in the current financial year.
Due to the good development in the first half of the financial year and the
continued strong dynamics of the IC substrate market, AT&S has slightly raised
the forecast for the development of revenue and now expects revenue growth of 21
to 23% (previously: 17 to 19%). The adjusted EBITDA margin is expected to range
between 21 and 23%, not including approximately EUR 50 million for the start-up
of the new production capacity in Chongqing and in Kulim. The outlook is based
on the assumption of a euro/US dollar exchange rate of 1.20 and that there are
no unexpected effects of supply shortages, material cost and energy price
fluctuations.
Outlook 2025/26
The expansion of production capacity in Chongqing, China, and in Kulim,
Malaysia, is progressing more rapidly than previously anticipated despite the
challenging global economic and health situation. Therefore, AT&S now assumes
that revenue of EUR 3.5 billion will be generated in the financial year 2025/26
(previously: approx. EUR 3 billion). The EBITDA margin is still expected to
range between 27 and 32%.
H1 key figures
Unit H1 2021/22 H1 2020/21 Change
in %
Revenue EUR million 697.6 537.8 29.7%
EBITDA EUR million 130.9 111.2 17.7%
EBITDA EUR million 140.3 113.7 23.3%
adjusted*)
EBITDA margin % 18.8% 20.7% -
EBITDA margin % 20.1% 21.2% -
adjusted*)
EBIT EUR million 30.5 32.8 (7.0%)
EBIT EUR million 46.5 35.5 31.0%
adjusted*)
EBIT margin % 4.4% 6.1% -
EBIT margin % 6.7% 6.6% -
adjusted*)
Profit for the EUR million 18.3 14.1 30.1%
period **)
ROCE**) % 3.5% 5.3% -
Net CAPEX EUR million 306.9 195.7 56.9%
Cash flow from
operating EUR million 78.0 83.6 (6.7%)
activities
Earnings per EUR 0.36 0.25 42.8%
share**)
Number of - 12,590 10,855 16.0%
employees***)
*) Adjusted for start-up costs Chongqing
**) H1 2020/21: Adjustment hedge accounting
***) incl. leased personnel, average
Further inquiry note:
Press Contact:
Gerald Reischl, Director Communications & Public Relations
Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; g.reischl@ats.net
Investor Relations Contact
Philipp Gebhardt, Director Investor Relations
Tel: +43 3842 200 2274; Mobile +43 664 7800 2274; p.gebhardt@ats.net
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
8700 Leoben / Austria
www.ats.net
end of announcement euro adhoc
--------------------------------------------------------------------------------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
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