EQS-News: AT&S’s recovery continues

EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s): Half
   Year Results/Quarter Results
   AT&S’s recovery continues

   02.11.2023 / 07:29 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

    

   AT&S’s recovery continues

    

     • Revenue in the second quarter of 2023/24 at € 452 million, up 25% on
       the preceding quarter, but still down 20% on the prior-year quarter
       (Q2 2022/23: € 567 million; Q1 2023/24: € 362 million)
     • Adjusted EBITDA margin of 30.6% only slightly below previous year
     • Guidance for FY 2023/24 and 2026/27 confirmed

    

    

   Leoben –

   AT&S maintained a solid performance in a continuously volatile market
   environment in the first half of the financial year 2023/24. “Although the
   economic environment has changed fundamentally compared to last year and
   we have been confronted with many challenges, we have been able to
   continue the recovery shown at the beginning of the financial year,” says
   AT&S CEO Andreas Gerstenmayer and explains, “We introduced efficiency and
   cost optimisation programmes in a timely manner. Not only are these
   measures taking effect faster than planned, they have also significantly
   improved the earnings situation.”

   Gerstenmayer sees positive trends for the future: “Even though we expect
   market volatility to continue for the time being, the major trends
   regarding digitalisation and electrification remain intact and offer AT&S
   clear growth opportunities.”

    

   In comparison with the strong prior-year period, consolidated revenue
   declined by 24% to € 814 million in the first half of 2023/24 (PY:
   € 1,070 million). Adjusted for currency effects, consolidated revenue fell
   by 21%. This development was primarily driven by the fundamental changes
   in the economic environment. However, within the first half of the
   financial year, a significant increase was recorded in both segments:
   compared with the first quarter, revenue in the second quarter rose by 30%
   in the Electronics Solutions segment and by 18% in the Microelectronics
   segment.

    

   EBITDA decreased by 31% from € 315 million to € 217 million in the first
   half of the year. The reduction in earnings is primarily attributable to
   the decline in consolidated revenue. In order to counter effects such as
   price pressure and inflation, which result from the currently difficult
   market situation, AT&S already initiated comprehensive cost optimisation
   and efficiency programmes in the past financial year. These programmes
   already made a higher contribution in the first half of the financial year
   2023/24 than originally planned. As was the case with revenue, both
   segments also significantly improved EBITDA within the first half of the
   financial year. EBITDA in the Electronics Solutions segment increased by
   119% to € 89 million in the second quarter (Q1 2023/24: € 41 million) due
   to higher revenue and a better product mix. In the Microelectronics
   segment, EBITDA was up 43% on the first quarter from € 35 million to
   € 50 million for similar reasons.

    

   Currency fluctuations had a positive influence of € 15 million on
   earnings. Adjusted for start-up costs in Kulim, Malaysia, and Leoben,
   Austria, EBITDA amounted to € 249 million (PY: € 335 million), which
   corresponds to a decrease by 26%.

    

   The EBITDA margin amounted to 26.6% (EBITDA margin adjusted for start-up
   costs: 30.6%), thus falling short of the prior-year level of 29.5% (EBITDA
   margin adjusted for start-up costs: 31.3%). The margin was supported by
   the cost optimisation and efficiency programmes and once again by the
   positive development in the Medical segment – a sector for which AT&S is
   currently assessing strategic options. Depreciation and amortisation
   increased by € 0.9 million to € 135 million (16.6% of revenue) due to
   additions to assets and technology upgrades. EBIT fell from € 181 million
   to € 82 million. Finance costs – net declined from € 66 million in the
   previous year to € -18 million primarily due to a change in currency
   effects on cash and cash equivalents. Profit for the period declined from
   € 224 million to € 49 million, leading to a decline in earnings per share
   by € 4.50 from € 5.52 to € 1.02.

    

   The financial position as of September 30, 2023 is still characterised by
   investing activities and the associated financing activities. Total assets
   increased to € 4,317 million due to additions to assets, up 4% compared to
   the balance sheet date March 31, 2023. Despite the positive profit for the
   period, the equity ratio decreased by 2.1 percentage points to 25.7% as a
   result of the high investment volume and due to negative foreign exchange
   effects in other comprehensive income (OCI).

    

   Cash and cash equivalents declined to € 712 million (March 31, 2023:
   € 792 million). In addition, AT&S has unused credit lines of € 623 million
   to secure the financing of the future investment programme and short-term
   repayments.

    

   Key figures

                                           Q2 Change        H1      H1 Change
   in € million            Q2 2023/24 2022/23   in %   2023/24 2022/23   in %
   Revenue                        452     567   -20%       814   1,070   -24%
   EBITDA                         142     178   -20%       217     315   -31%
   EBITDA adjusted^*              157     190   -18%       249     335   -26%
   EBITDA margin (in %)          31.3    31.4      -      26.6    29.5      -
   EBITDA margin adjusted        34.7    33.6      -      30.6    31.3      -
   (in %)^*
   EBIT                            73     108   -32%        82     181   -55%
   EBIT adjusted^*                 89     121   -26%       116     202   -65%
   EBIT margin (in %)            16.2    19.1      -      10.0    16.9      -
   EBIT margin adjusted          19.7    21.4      -      14.2    18.9      -
   (in %)^*
   Profit for the period           51     128   -60%        49     224   -78%
   ROCE (in %)^*                 n.a.    n.a.      -       6.4    19.5      -
   Net CAPEX                      245     213   -15%       517     490     6%
   Cash flow from                 112     160   -30%       341     366    -7%
   operating activities
   Earnings per share (in        1.20    3.17   -62%      1.02    5.52   -81%
   €)
   Number of employees^**      13,854  15,727   -12%    13,982  15,309    -9%

   ^* Adjusted for start-up costs

   ^** Incl. leased personnel, average. As at September 30, 2023: 13,741

    

   Outlook 2023/24

   Depending on the market development, AT&S will continue to push ahead the
   investment projects in Kulim and the expansion of the site in Leoben and
   implement technology upgrades at other locations in the financial year
   2023/24. In view of the highly volatile environment, the ongoing
   investment projects will be reviewed at frequent intervals and adapted to
   the respective current situation if required.

    

   The expectations for AT&S’s segments are currently as follows: In the
   markets for IC substrates, demand for notebooks in 2023 is expected to be
   lower than in 2022. Servers saw a slump at the beginning of the year
   caused by the economic situation, with a recovery expected in the short
   term so that the prior-year level should be exceeded as early as the
   second half of 2024.

    

   In the area of mobile devices, where overall market conditions are weak,
   the module printed circuit board business will remain a positive driver
   for AT&S. While the Automotive segment is subject to a growth trend as the
   electronic content per vehicle is increasing, the PCB market is under
   price pressure. In the Industrial segment, the market is expected to
   decline this year.

    

   The management is planning investments totalling up to € 1.1 billion for
   the financial year 2023/24 depending on the market environment and
   progress of projects.

    

   AT&S expects the market environment to remain challenging with continued
   price pressure in the second half of 2023/24, and persisting high
   volatility and low visibility. High inflation rates, rising interest
   rates, recession risks as well as geopolitical developments continue to
   represent additional elements of uncertainty for the end markets.

    

   In this challenging environment, AT&S expects annual revenue between € 1.7
   and 1.9 billion. Not including effects from the start-up of the new
   production capacities in Kulim and Leoben totalling approximately
   € 100 million, the adjusted EBITDA margin is expected to range between 25
   and 29%.

    

   Guidance 2026/27

   The progress of the production capacity expansion in Kulim and the
   expansion of the site in Leoben is still positive despite the challenging
   global economic situation. Therefore, AT&S assumes that revenue of
   approximately € 3.5 billion will be generated in the financial year
   2026/27 and expects an EBITDA margin in the range from 27 to 32%. The
   management monitors the currently tense geopolitical situation very
   carefully in order to be able to respond to developments at any time and
   to make strategic adaptations.

    

    

   AT & S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
   Technologies & Solutions

   AT&S is a globally leading manufacturer of high-end IC substrates and
   printed circuit boards. AT&S industrialises
   leading-edge technologies for its core business segments IC Substrates,
   Mobile Devices, Automotive & Aerospace, 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. In Leoben, a European competence
   centre including series production is being built.
   The company employs roughly 14,000 people. For further information please
   visit [1]www.ats.net

    

    

   Press contact:

   Gerald Reischl, Vice President Corporate Communications

   Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; [2][email protected]

    

   Investor Relations contact:

   Philipp Gebhardt, Senior Director Investor Relations

   Tel: +43 3842 200 2274; Mobile: +43 664 7800 2274; [3][email protected]

    

    

   AT & S Austria Technologie & Systemtechnik Aktiengesellschaft

   Fabriksgasse 13
   8700 Leoben / Austria
   [4]www.ats.net

   ══════════════════════════════════════════════════════════════════════════

   02.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     AT&S Austria Technologie & Systemtechnik AG
                Fabriksgasse 13
                8700 Leoben
                Austria
   Phone:       +43 (1) 3842200-0
   E-mail:      [email protected]
   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: 1763029


    
   End of News EQS News Service


   1763029  02.11.2023 CET/CEST

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0f51707980ec28aa6913e5887cb44c51&application_id=1763029&site_id=apa_ots_austria&application_name=news
   2. mailto:[email protected]
   3. mailto:[email protected]
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0f51707980ec28aa6913e5887cb44c51&application_id=1763029&site_id=apa_ots_austria&application_name=news

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print