EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
Annual Results
AT&S Austria Technologie & Systemtechnik AG: AT&S makes significant
progress in strategy implementation and boosts revenue and earnings to
record levels

17.05.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

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AT&S makes significant progress in strategy implementation and boosts
revenue and earnings to record levels

– Annual revenue 2021/22 increases by 34% to € 1,590 million (PY: € 1,188
million)

– Adjusted EBITDA at € 378 million, up 48% on the previous year

– Guidance for FY 2022/23: revenue of approx. € 2 billion, adjusted EBITDA
margin between 23 and 26%

– Medium-term outlook for 2025/26 confirmed

Leoben – AT&S significantly increased revenue and earnings in the
financial year 2021/22 and continues its strong growth course as part of
its strategy implementation.

“In a volatile market environment, we were able to close the financial
year with revenue and earnings at a record level,” says CEO Andreas
Gerstenmayer. “This strong performance once again confirms our growth
strategy and gives us reason to be optimistic about the future in the new
financial year. We expect revenue of roughly € 2 billion and an EBITDA
margin between 23 and 26%. The growth course will also continue in the
years to come: in the financial year 2025/26, we will generate revenue of
approximately € 3.5 billion and increase the EBITDA margin to 27 to 32%,”
Gerstenmayer comments on the further development.

Consolidated revenue increased by 34% to € 1,590 million in the financial
year 2021/22 (PY: € 1,118 million). Adjusted for currency effects,
consolidated revenue rose by 33%. Revenue grew on a broad basis, with the
additional capacity for ABF substrates in Chongqing, China, proving to be
the main driver. In addition, the broader application portfolio for mobile
devices and module printed circuit boards also contributed to revenue
growth. In the AIM business unit, all three segments benefited
disproportionately from the dynamic market environment, with the
Industrial segment recording the strongest growth. The Automotive segment
also saw an increase in revenue despite the shortage of semiconductors.

EBITDA rose by 42% from € 246 million to € 349 million. The good result
was positively influenced mainly by the significant increase in revenue,
which more than compensated for burdening effects such as the start-up
costs in Chongqing and Kulim, Malaysia, as well as higher material,
transport and energy costs. Moreover, research and development expenses
were further increased and ensure that AT&S will remain a leading
innovation driver going forward. Currency fluctuations, in particular of
the Chinese renminbi, had a negative impact of € 20 million on the
earnings development; without these fluctuations, the growth rate would
have been 50%.

Adjusted for the start-up costs, EBITDA amounted to € 378 million (PY: €
255 million), which is equivalent to an increase by 48%. Without currency
effects, adjusted EBITDA would have grown by 56%.

The EBITDA margin amounted to 22.0% (EBITDA margin adjusted for start-up
costs: 23.8%), thus exceeding the prior year level of 20.7% (EBITDA margin
adjusted for start-up costs: 21.5%). Depreciation and amortisation rose by
€ 57 million to € 223 million (14% of revenue) due to additions to assets
and technology upgrades. EBIT increased from € 80 million to € 126
million. The EBIT margin amounted to 8.0% (PY: 6.7%). Finance costs – net
improved from € -20 million in the previous year to € -4 million, mainly
due to a change in currency effects. Profit for the year surged from € 47
million to € 103 million, leading to a 138% increase in earnings per share
from € 1.01 to € 2.39.

The financial position was characterised by an increase in non-current
assets at the end of the reporting period. Total assets increased to €
3,746 million, up 57% compared to March 31, 2021 as a result of the inflow
of liquid funds due to bilateral agreements, additions to assets and
technology upgrades. Despite the significant increase in total assets, the
equity ratio remained nearly constant at 33.4% (PY: 33.6%) thus exceeding
30% despite the large-scale investment programme.

Cash and cash equivalents increased to € 1,120 million (March 31, 2021: €
553 million). In addition, AT&S has financial assets and unused credit
lines of € 337 million to secure the financing of the future investment
programme and short-term repayments.

Key figures

Q4 Q4 Change in   FY FY Change
in € million 2021/22 2020/21 % 2021/22 2020/21 in %
Revenue 443 304 46%   1,590 1,188 34%
EBITDA 106 59 79%   349 246 42%
EBITDA adjusted^1) 116 64 52%   378 255 48%
EBITDA margin (in %) 23.9 19.4 –   22.0 20.7 –
EBITDA margin adjusted 26.2 20.9 –   23.8 21.5 –
(in %)^1)
EBIT 44 14 211%   126 80 46%
EBIT adjusted^1) 60 19 218%   170 90 80%
EBIT margin (in %) 9.9 4.6 –   8.0 6.7 –
EBIT margin adjusted 13.5 6.1 –   10.7 7.5 –
(in %)^1)
Profit for the period 42 11 291%   103 47 117%
ROCE (in %)^1) n.a. n.a. –   7.8 5.8 –
Net CAPEX 166 132 27%   602 436 38%
Cash flow from 381 8 n.a.   713 185 286%
operating activities
Earnings per share (in 1.01 0.22 357%   2.39 1.01 138%
€)
Number of employees^2) 13,046 11,349 15%   13,046 11,349 15%

1) Adjusted for start-up costs
2) Incl. leased personnel, average

Advance payments by customers
In the financial year 2021/22, AT&S received payments amounting to € 446
million to finance production facilities as part of bilateral agreements.
In accordance with the requirements of the Austrian Financial Market
Authority (FMA), these payments are recognised as “contract liabilities”
and “cash and cash equivalents” in the balance sheet as well as “cash flow
from operating activities” in the cash flow statement, and have
significant influence on some AT&S key figures.

– The ratio of net debt / EBITDA is 0.6 and therefore substantially below
the medium-term target of <3 (may temporarily also exceed this mark).

– Cash and cash equivalents amount to € 1,120 million.

– Free cash flow from operating activities is positive at € 111 million.

As part of the planned investments, there will be an outflow of the
contributions and their effects on the key figures will decline again.

Dividend proposal
Due to the good annual results, the Management Board will propose the
distribution of a dividend of € 0.90 per share to the Annual General
Meeting on July 7, 2022. This value consists of a basic dividend of € 0.78
and a special dividend of € 0.12 € per share.

The introduction of the special dividend is due to the positive
development of all key economic indicators in the financial year 2021/22.

Guidance 2022/23
In the financial year 2022/23, AT&S will continue to concentrate on the
start-up of the new production capacities at plant III in Chongqing, and
push ahead the investment project in Kulim, Malaysia, and the expansion of
the site in Leoben, Austria, and implement technology upgrades at other
locations.

The expectations for AT&S’s segments are currently as follows: the market
conditions for IC substrates continue to offer significant growth
opportunities in the medium term. The 5G mobile communication standard as
well as the module printed circuit board business will remain a positive
driver in the area of Mobile Devices. In the Automotive segment, the
semiconductor shortage should ease somewhat and the growth trend should
therefore intensify. In the Industrial and Medical segments, AT&S expects
a continued positive development for the current financial year.

Planned investments amounting to € 100 million of the investment budget
for the financial year 2021/22 have been postponed to the financial year
2022/23. The growing technological requirements and the additionally
installed production facilities are leading to an increase in required
basic investments; depending on the market development, these are
estimated at roughly € 150 million. As part of the strategic projects, the
management is planning additional investments totalling up to € 1 billion
for the financial year 2022/23 depending on the progress of projects. As a
result, the planned investment volume will total up to € 1,250 million.

AT&S expects revenue of approximately € 2 billion (FY 2021/22: € 1.6
billion). Taking into account effects of the ramp-up of the new production
capacities in Kulim, Leoben and Chongqing amounting to approximately € 75
million, the adjusted EBITDA margin should range between 23 and 26%. Due
to the expected balance sheet increase and possible currency effects, it
cannot be ruled out that the equity ratio could temporarily fall below the
medium-term target of >30%. The outlook is based on the assumption that no
unforeseen effects occur, for example due to an escalation of the war in
Ukraine or COVID-related lockdowns.

Outlook 2025/26
The progress of the production capacity expansion in Chongqing, China, and
in Kulim, Malaysia, as well as the expansion of the site in Leoben,
Austria, is still positive despite the challenging global economic and
health situation. Therefore, AT&S assumes that revenue of € 3.5 billion
will be generated in the financial year 2025/26 and expects an EBITDA
margin in the range from 27 to 32%.

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
Technologies & Solutions
AT&S is a globally leading manufacturer of high-end printed circuit boards
and IC substrates. AT&S industrialises leading-edge technologies for its
core business segments Mobile Devices & Substrates, Automotive, Industrial
and Medical. AT&S has a global presence with production sites in Austria
(Leoben, Fehring) and plants in India (Nanjangud), China (Shanghai,
Chongqing) and Korea (Ansan near Seoul). A new high-end production site
for IC substrates is currently being established in Kulim, Malaysia. The
company employs roughly 13,000 people. For further information please
visit [1] www.ats.net

Press contact:
Gerald Reischl, Director Communications & Public Relations
Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; [2]g.reischl@ats.net

Investor Relations contact:
Philipp Gebhardt, Director Investor Relations
Tel: +43 3842 200 2274; Mobile: +43 664 7800 2274; [3]p.gebhardt@ats.net

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
8700 Leoben / Austria
[4] www.ats.net

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17.05.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Austria
Phone: +43 (1) 3842200-0
E-mail: ir@ats.net
Internet: www.ats.net
ISIN: AT0000969985, AT0000A09S02
WKN: 922230
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange;
Vienna Stock Exchange (Official Market)
EQS News ID: 1353893

 
End of News EQS News Service

1353893  17.05.2022 

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