EANS-News: AT & S Austria Technologie und Systemtechnik Aktiengesellschaft / AT&S maintains successful course in the first nine months: Significant increase in revenue and earnings

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Quarterly Report

Leoben -

* Significant contributions to revenue from the two plants in Chongqing, China
* Revenue up 24.5% to EUR 765.9 million
* Continued efficiency improvements and new technology generation drive earnings
* EBITDA: up 86.3% to EUR 190.3 million
* Profit for the period increased from EUR -19.7 million to EUR 47.8 million
* Equity strengthened through issue of hybrid bond, net debt reduced
* Outlook for financial year 2017/18: Management expects EBITDA margin slightly
above given forecast

AT&S continued the very positive trend of the first half of the year and
significantly exceeded all relevant key figures of the prior-year period in
the first nine months of the financial year 2017/18.

"Our most recent investments are bearing fruit, our business is going well and
we have been able to consolidate our position as a technology leader with the
introduction of the latest technology generation", CEO Andreas Gerstenmayer
comments on the development of the first nine months. "Now it is important to
implement further efficiency improvements and to evaluate potential expansion
steps as part of our technology strategy", Gerstenmayer outlines the tasks for
the coming months.

Asset, financial and earnings position
Revenue rose by EUR 150.8 million or 24.5% from EUR 615.1 million to EUR 765.9
million as a result of generally strong demand and additional revenue from the
two plants in Chongqing. Exchange rate effects, especially caused by a weaker
USD, had a negative impact of EUR 23.9 million on revenue.

EBITDA was up EUR 88.2 million or 86.3% and amounted to EUR 190.3 million. The
increase was based on a generally strong operating performance (utilisation,
yield, efficiency) and the successful introduction and rapid optimisation of
the new technology generation, where AT&S holds a leading market position.

This development was supported by a very positive product mix, especially in
the third quarter, and a favourable currency development for production costs
based on a weaker development of the Chinese renminbi against the euro.
Earnings were negatively impacted by continued high raw material prices and
the persisting price pressure on IC substrates. The EBITDA margin amounted to
24.8%, up 8.2 percentage points on the prior-year level of 16.6%.

Compared with the prior-year period, depreciation and amortisation increased
by 12.4% to EUR 101.5 million, which was primarily attributable to the new
plants in Chongqing. EBIT was up EUR 77.0 million to EUR 88.8 million. Due to
the higher depreciation and amortisation EBIT increased to a lesser extent
than EBITDA. The EBIT margin amounted to 11.6% (prior-year period: 1.9%).

Finance costs - net improved significantly from EUR -18.6 million to EUR -11.3
million above all due to positive exchange rate effects (EUR 2.0 million,
previous year: expense of EUR 8.2 million)

Tax expense amounted to EUR 29.7 million in the first nine months (prior-year
period: tax expense of EUR 13.0 million). The increase was due to the good
results at nearly all sites and the fact that the tax certificate in Shanghai
has not yet been granted (it is expected to be regained in the coming months).

Despite the higher tax expense, the profit for the period rose by EUR 67.5
million to EUR 47.8 million due to the substantial increase in the operating
result and the improved finance costs. This led to a significant increase in
earnings per share from EUR -0.51 to EUR 1.21.

Cash flow and statement of financial position
Cash flow from earnings before changes in working capital amounted to EUR
170.3 million after EUR 74.5 million in the previous year. Cash flow from
investing activities - for investments in the plants in Chongqing, technology
investments in other sites and investments in financial assets - amounted to
EUR -246.6 million (prior-year period: EUR -108.7 million).

Equity rose by EUR 159.0 million or 29.4% to EUR 699.1 million. The increase
resulted from the net proceeds of the hybrid bond of EUR 173.0 million and the
profit for the period. Currency differences of EUR 57.9 million and the
dividend payment of EUR 3.9 million had a negative impact on equity.

Net debt decreased by EUR 163.5 million to EUR 217.0 million. The net gearing
ratio, at 31.0%, is significantly lower than at 31 March 2017, at 70.5%.

Key financials:

According to IFRS;     Q1-Q3 2016/17       Q1-Q3 2017/18           Change
in million EUR       01.04.-31.12.2016   01.04.-31.12.2017
Revenue                           615.1               765.9                24.5%
EBITDA                            102.1               190.3                86.3%
EBITDA margin (in                  16.6                24.8                    -
%)
EBIT                               11.8                88.8               > 100%
EBIT margin (in %)                  1.9                11.6                    -
Profit/loss for the               -19.7                47.8               > 100%
period
Cash flow from
operating
activities before                  74.5               170.3               > 100%
changes in working
capital
Net CAPEX                         192.3               124.6              (35.2%)
Equity ratio (in %)              37.61*             45.62**                    -
Net debt                        380.51*            217.02**              (43.0%)
Earnings per
average number of                 -0.51                1.21               > 100%
shares outstanding
(in EUR)

*As of 31.03.2017 **As of 31.12.2017

Mobile Devices & Substrates segment: strong revenue growth and significant
increase in earnings
Despite negative currency effects, revenue increased by 32.2% to EUR 580.0
million, which was primarily attributable to substantial contributions from the
two plants in Chongqing, China. EBITDA rose by EUR 99.2 million to EUR 155.3
million based on general efficiency enhancement measures and higher contribution
margins. Higher raw material prices and the persisting price pressure on IC
substrates had a negative impact. The EBITDA margin, at 26.8%, significantly
exceeded the comparative value of the previous year of 12.8%.

Automotive, Industrial, Medical segment with stable revenue and a slight decline
in earnings due to a one-off effect in the previous year
In the Automotive, Industrial, Medical segment revenue increased by 3.4 % to EUR
270.8 million based on strong demand in all segments, but especially in the
Industrial and Medical segments. EBITDA decreased by 12.6% to EUR 32.3 million,
especially due to a one-off effect: the comparative figures of the previous year
included the reversal of a provision for unused building space amounting to EUR
3.3 million; in addition, negative exchange rate effects and higher raw material
prices had a negative impact on earnings. The EBITDA margin amounted to 11.9%,
down 2.2 percentage points on the previous year.

Outlook for the financial year 2017/18
The Management Board expects the usual seasonality for the fourth quarter of the
financial year 2017/18. For the full financial year, AT&S expects revenue growth
of 20-25% provided that the market environment and the exchange rate development
remain stable. Due to the positive development in the first nine months, the
management expects the EBITDA margin to slightly exceed the in October 2017
given forecast of 19-22%, and additional appreciation and amortisation of
roughly EUR 15 million.

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft - First choice for
advanced applications
AT&S is the European market leader and one of the globally leading manufacturers
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, Medical and Advanced Packaging. 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). The
company employed an average of 9,526 people in the financial year 2016/17. For
further information: www.ats.net

Further inquiry note:
Elke Koch, Director Investor Relations & Communications
Tel: +43 3842 200-5925; Mobile: +43 676 8955 5925; e.koch@ats.net

Marina Konrad, Head of Corporate Communications
Tel: +43 3842 200-5423; Mobile: +43 676 8955 5423; m.konrad@ats.net

end of announcement euro adhoc
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issuer: AT & S Austria Technologie und Systemtechnik Aktiengesellschaft
Fabriksgasse 13
A-8700 Leoben
phone: 03842 200-0
FAX:
mail: e.koch@ats.net
WWW: www.ats.net
ISIN: AT0000969985
indexes: VÖNIX, WBI, ATX GP
stockmarkets: Wien
language: English

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