H1 2020/21 – AT&S continues growth course – 10% increase in revenue and EBITDA
- Diversified business model supports positive business development
- Significant increase in demand for ABF substrates
- Half-year revenue up 9.7% to € 537.8 million (PY: € 490.3 million), EBITDA margin of 20.7% at prior-year level
- Investments in the IC substrate and module business to be continued as planned
- Outlook 2020/21: Increase in revenue of ~15% with an EBITDA margin in the range of 20% to 22%
Leoben – AT&S has managed one of the most severe economic crises since the Second World War excellently so far and recorded a 10% increase in both revenue and EBITDA. The diversified business model, which is additionally strengthened by the capacity expansion for IC substrates and the establishment of the module business, is currently robust in terms of profitability.
“AT&S is on track. Although the current pandemic weighs on demand in some areas and has a significant impact on the target markets, we were able to continue our growth course. The automotive market, which was hit particularly hard, is fortunately showing signs of bottoming out from our perspective. Progressing digitalisation thanks to increasing data traffic, the Internet of Things and increased connectivity are currently massively raising the requirements for digital infrastructure and its end devices. Based on the positive development in the first half, we are optimistic for the remaining months of the financial year. However, our business development depends on the further course of the coronavirus pandemic, the extent of the stimulus packages offered and geopolitical factors,” CEO Andreas Gerstenmayer comments on the first six months.
AT&S increased consolidated revenue to € 537.8 million (PY: € 490.3 million) in the first half of the financial year. The successful start-up of the increased production capacity in Chongqing I, which serves the growing demand for ABF substrates, made a significant contribution to revenue growth. The broader customer and application portfolio in the Mobile Devices segment had a positive effect and compensated for revenue shifts due to delays in the launch of new products. In the AIM business unit, the Industrial segment recorded an increase in revenue. The Automotive segment was confronted with lower demand in the first half-year, but recently showed sequential improvement. Although the Medical segment recorded robust demand, a change in product mix caused revenue to decline.
The EBITDA margin, at 20.7%, was at the prior-year level of 20.6%. EBIT improved from € 29.4 million to € 32.8 million. The EBIT margin was 6.1% (previous year: 6.0%). Finance cost – net declined from € 2.8 million to € -13.0 million due to a lower interest result and negative currency effects. Despite the significantly higher operating result and above all due to the negative finance costs – net, profit for the period decreased from € 19.5 million to € 14.7 million.
The financial position was solid at the reporting date. Total assets rose by 9.0% to € 2.0 billion due to additions to assets and technology upgrades compared with the balance sheet date.
Equity decreased by -3.9% to € 730.4 million due to negative exchange rate effects. Based on this decline in equity and the increase in total assets, the equity ratio, at 36.2%, was lower than at 31 March 2020. Net debt rose by 54.0% from € 246.7 million to € 380.0 million due to the increase in investment activities. Cash and cash equivalents totalled € 348.5 million. In addition, AT&S has financial assets of € 177.7 million and unused credit lines of € 425.5 million to finance the future investment programme and short-term repayments.
| FINANCIALS Acc. to IFRS; (in EUR million) | H1 2019/20 01.04.2019-30.09.2019 | H1 2020/21 01.04.2020-30.09.2020 | Change |
|---|---|---|---|
| Group | |||
| Revenue | 490.3 | 537.8 | 9.7% |
| EBITDA | 101.1 | 111.2 | 10.0% |
| EBITDA margin (in %) | 20.6 | 20.7 | - |
| EBIT | 29.4 | 32.8 | 11.8% |
| EBIT margin (in %) | 6.0 | 6.1 | - |
| Profit/loss for the period | 19.5 | 14.7 | (25.0%) |
| Cash flow from operating activities | 62.2 | 83.6 | 34.4% |
| Net CAPEX | 92.0 | 195.7 | >100% |
| Equity Ratio (in %) | 41.0* | 36.2** | - |
| Net debt | 246.7* | 380.0** | 54.0% |
| Earnings per share | 0,40 | 0,27 | (31.7%) |
| * as of balance sheet date 31.03.2020 ** as of balance sheet date 30.09.2020 |
Outlook 2020/21
Thanks to its strategic orientation, AT&S considers itself in a good position to manage the current crisis successfully and to continue to positively participate in the intact trends in the market.
The current expectations of the market development for the coming months of the current financial year are as follows:
- According to current forecasts, the demand for IC substrates will continue to be strong.
- Due to delayed product launches, demand for mobile devices shifted into the third quarter of the financial year; the usual seasonality is expected for the fourth quarter.
- After bottoming out, the Automotive segment shows a slightly positive trend.
- The Industrial segment will remain at the level of the previous year.
- Slight growth is expected for medical applications for the full year.
Operationally, AT&S will concentrate on optimally utilising existing and building new capacities, especially for IC substrates and module printed circuit boards in Chongqing in the current year, and above all continue to drive the expansion of its business performance.
The strong results in the first half of the year, the good order situation in the third quarter of the financial year, the successful start-up of the additional capacity in Chongqing I and the excellent market positioning reassure the Management Board in giving an outlook for the year despite the uncertainties in the global markets. Assuming that there is no massive negative impact on the relevant key markets, the production sites and the supply chain due to the Covid-19 pandemic, the Management Board expects a significant boost for the financial year 2020/21 with revenue growth of roughly 15% and an EBITDA margin in the range of 20% to 22%.
Investment activities in the financial year 2020/21
“The capacity expansion in Chongqing strengthens our global market position for IC substrates and modules; therefore we continue to drive our investment projects. They are the basis for the company’s further growth,” CEO Andreas Gerstenmayer comments on the current investment programme. In line with spending discipline, a reduced budget of up to € 80 million is planned for basic investments (maintenance and technology upgrades) depending on the market development. As part of the strategic projects, the management plans investments totalling up to € 410 million for the financial year 2020/21 – depending on the progress of projects – plus € 30 million due to period shifts between the financial years.
Press contact:
Gerald Reischl, Director Communications & Public Relations
Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; Send an e-mail
Gerda Königstorfer, Director Investor Relations
Tel: +43 3842 200 5925; Mobile: +43 676 8955 5925; Send an e-mail
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