EQS-News: AT&S Austria Technologie & Systemtechnik AG: Q1-Q3 21/22 – AT&S continues strong growth course

EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
Quarterly / Interim Statement
AT&S Austria Technologie & Systemtechnik AG: Q1-Q3 21/22 – AT&S continues
strong growth course

03.02.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

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Q1-Q3 21/22 – AT&S continues strong growth course

– Nine-month revenue increases by 30% to € 1,147 million (PY: € 884
million)

– Adjusted EBITDA at € 262 million, up 37% on the previous year

– Guidance for FY 21/22 increased again: revenue growth of 28‒30%;
adjusted EBITDA margin expected in the range of 21‒23%

– Medium-term outlook for 2025/26 confirmed: revenue of approx. € 3.5
billion and EBITDA-margin of 27‒32%

Leoben – AT&S reports a very positive revenue development in the first
three quarters of 2021/22.

„Once again, we were able to significantly increase our revenue and
earnings in a challenging market environment, with quarterly records for
both figures,“ says CEO Andreas Gerstenmayer. „Since the ramp-up of our
new plant in Chongqing, China, is progressing faster than expected, we can
increase our revenue guidance for the current financial year to 28 to 30%.
This once again confirms our growth strategy and therefore also reinforces
our revenue projection of approximately € 3.5 billion in the financial
year 2025/26,“ Gerstenmayer comments on the further development.

Consolidated revenue increased by 30% to € 1,147 million in the first
three quarters of 2021/22 (PY: € 884 million). Adjusted for currency
effects, the increase in consolidated revenue even amounted to 32%. This
growth was primarily driven by the additional capacity in Chongqing for
ABF substrates. The broader application portfolio for mobile devices as
well as module printed circuit boards also contributed to revenue growth.
In the AIM business unit, all three segments supported the growth trend,
with the Industrial segment recording the biggest increase. Despite the
shortage of semiconductors, revenue in the Automotive segment also grew,
though not as dynamically as would be possible without this limitation.

EBITDA rose by 30% from € 187 million to € 244 million. While the increase
in revenue had a positive impact on earnings, the start-up costs in
Chongqing and Kulim as well as higher material, transport and energy costs
had a negative effect on earnings. In order to live up to its role as an
innovation driver going forward, AT&S continued to increase its research
and development expenses significantly. Currency fluctuations of the US
dollar and the Chinese renminbi had a negative impact of € 30 million on
the earnings development; without these fluctuations, the growth rate
would have been 47%.

Adjusted for the start-up costs, EBITDA amounted to € 262 million (PY: €
192 million), which is equivalent to an increase by 37%. Not including
start-up costs and currency fluctuations, earnings would have increased by
53%.

The EBITDA margin amounted to 21.3% (EBITDA margin adjusted for start-up
costs: 22.9%), falling short of the prior-year level of 21.1% (EBITDA
margin adjusted for start-up costs: 21.7%). Depreciation and amortisation
rose by € 40 million to € 161 million due to additions to assets and
technology upgrades. Nevertheless, EBIT was up from € 66 million to € 83
million. The EBIT margin amounted to 7.2% (PY: 7.4%). Finance costs – net
improved from € -20 million in the previous year to currently € -11
million, mainly due to a change in currency effects. Profit for the period
rose from € 37 million to € 62 million, leading to an 81% increase in
earnings per share from € 0.79 € to € 1.42.

 

The financial position was characterised by an increase in non-current
assets at the end of the reporting period. Total assets rose to € 3,016
million, up 26% compared with March 31, 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 2.0 percentage points despite a
19% increase in equity. The equity ratio amounted to 31.6% at December 31,
2021, thus exceeding 30% despite the large-scale investment programme.

Cash and cash equivalents increased to € 644 million (March 31, 2021: €
553 million). In addition, AT&S has financial assets and unused credit
lines of € 336 million at its disposal to secure the financing of the
future investment programme and short-term repayments.

Hybrid bond
In January AT&S very successfully completed the issue of a hybrid bond of
€ 350 million, its largest financial market transaction since the IPO. The
holders of the 2017 hybrid bond were invited to exchange their bond for
this new bond. 76% of the investors accepted this offer.

Key figures

Q3 Q3 Change   Q1-Q3 Q1-Q3 Change
in € million 2021/22 2020/21 in% 2021/22 2020/21 in%
Revenue 449 346 30%   1.147 884 30%
EBITDA 113 76 49%   244 187 30%
EBITDA adjusted^1) 120 81 49%   262 192 37%
EBITDA margin (in %) 25.2 21.8 –   21.3 21.1 –
EBITDA margin adjusted (in 26.8 23.3 –   22.9 21.7 –
%)^1)
EBIT 52 33 59%   83 66 26%
EBIT adjusted^1) 64 35 81%   110 71 55%
EBIT margin (in %) 11.6 9.5 –   7.2 7.4 –
EBIT margin adjusted (in 14.2 10.2 –   9.6 8.0 –
%)^1)
Profit for the period^2) 43 23 90%   62 37 68%
ROCE (in %)^1) n.a. n.a. –   6.6 7.0 –
Net CAPEX 129 108 19%   436 304 43%
Cash flow from operating 229 93 147%   332 177 88%
activities
Earnings per share (in €) 1.06 0.53 99%   1.42 0.79 81%
Number of employees^3) 12,821 11,167 15%   12,821 11,167 15%

 

1) Adjusted for start-up costs Chongqing
2) Q1-Q3 2020/21: Adjustment hedge accounting
3) Incl. leased personnel, average

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 the expansion of the site in Leoben, Austria, 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 € 700 million in new capacities
and technologies in the current financial year.

Due to the faster ramp-up and further efficiency enhancements at plant III
in Chongqing as well generally strong demand in the fourth quarter, AT&S
has raised the forecast for the development of revenue and now expects
revenue growth of 28 to 30% (previously: 21 to 23%). The adjusted EBITDA
margin is still expected to range between 21 and 23%, not including
approximately € 25 to 35 million (previously: approximately € 50 million)
for the start-up of the new production capacity in Chongqing and in Kulim.
The outlook is based on the assumption that no unexpected effects such as
supply shortages, material and energy price fluctuations occur.

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 satisfactory 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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03.02.2022 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: 1276055

 
End of News EQS News Service

1276055  03.02.2022 

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