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

Published On: May 17, 20225.9 min read1189 words
    • 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%
    • The 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

    in € millionQ4 2021/22Q4 2020/21Change in %FY 2021/22FY 2020/21Change in %
    EBITDA adjusted*1166452%37825548%
    EBITDA margin (in %)23.919.422.020.7
    EBITDA margin adjusted (in %)*26.220.923.821.5
    EBIT adjusted*6019218%1709080%
    EBIT margin (in %)
    EBIT margin adjusted (in %)*
    Profit for the period4211291%10347117%
    ROCE (in %)*n.a.n.a.7.85.8
    Net CAPEX16613227%60243638%
    Cash flow from operating activities3818n.a.713185286%
    Earnings per share (in €)1.010.22357%2.391.01138%
    Number of employees**13,04611,34915%13,04611,34915%
    *Adjusted for start-up costs**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

    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%.

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