AT & S Austria Technologie & Systemtechnik AG

Q12016/17 results influenced by start-up effects of the new plants in China guidance 16/17 confirmed

Business news for the stock market

Leoben (pta042/27.07.2016/17:45) - - In comparison with Q4 2015/16: stable core business in the Mobile Devices segment, growth in the Automotive, Industrial, Medical segment
- In comparison with Q1 2015/16: expected seasonality with the corresponding start-up effects of the new plants in Chongqing
- Ramp-up of plant 1 currently flatter than expected; nevertheless, AT&S still expects full utilisation of the first production line towards the end of the calendar year 2016
- Plant 2 for substrate-like printed circuit boards was started in early July, ahead of schedule
-Further promissory note loans of EUR 150 million placed and OeKB investment financing transaction of EUR 75 million concluded
-Guidance for FY 2016/17 confirmed

AT&S, one of the global technology leaders for high-end printed circuit boards, starts the new financial year 2016/17 with the expected, usual seasonality of mobile devices and the corresponding start-up effects of the new plants in Chongqing. In the future, these plants will make a substantial contribution to the company's growth course. Andreas Gerstenmayer, CEO of AT&S, commented: "Starting with the financial year 2016/17, we are beginning the next phase of transformation, which will result in a completely new positioning of AT&S in the market, but also in a new dimension of the company. Until the new plants in Chongqing, China, have been ramped up and reach the break-even, the start-up effects and higher depreciation will be clearly reflected in the results. We have already taken this into account in our guidance for the year, but we expect the effects in the first quarter to be stronger than in the coming quarters. However, we have to pursue this course in order to ensure the profitable growth of AT&S on a sustained basis in the future."

He added: "Moreover, we see the usual seasonality in the first quarter, which was barely existent in the first quarter of last year. The ramp-up of the plant for IC substrates is technically highly demanding and is currently slightly flatter than expected. However, we still stick to our target of full utilisation of the first production line towards the end of the calendar year 2016. Ahead of schedule we started plant 2, with the first production line for substrate-like PCBs, with the first sub-processes."