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EANS-News AT & S Austria Technologie und Systemtechnik Aktiengesellschaft / First half of 2017/18: AT&S with significant increase in revenue and earnings

Nachrichtenagentur: news aktuell
02.11.2017, 20:02  |  542   |   |   
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Mid Year Results

Leoben -

* Very strong demand and utilisation at the capacity limit
* Ramp-up of new technology generation mSAP better and faster than expected
* Further efficiency enhancements at IC substrate plant in Chongqing
* Revenue up 25.7% to EUR 485.7 million
* EBITDA more than doubled to EUR 104.4 million
* Profit for the period positive again at EUR 15.4 million


In the first six months of the financial year 2017/18, AT&S recorded a very
positive revenue and earnings development compared with the same period of the
previous year, which also led to an increase in the guidance for the financial
year 2017/18 on 9 October 2017.

"After some very challenging quarters, primarily due to the ramp-up of both
plants in Chongqing, China, we now see a development in the right direction
again," says CEO Andreas Gerstenmayer. "Several factors are decisive in this
context: On the one hand, we not only achieved significantly higher revenue with
IC substrates in comparison with the previous year, but also efficiency
improvements, even though the price situation is still tense. On the other hand,
the introduction of the new technology generation in the core business went
faster and better than expected, and the other business segments also developed
very positively so that nearly all our plants are working at full capacity. With
this development, we have accomplished an important step to return to an
adequate company performance again."

Asset, financial and earnings position
Revenue rose by EUR 99.2 million or 25.7% from EUR 386.5 million to EUR 485.7
million. EBITDA was up EUR 52.3 million or 100.4% from EUR 52.1 million to EUR
104.4 million. The increase is primarily attributable to general efficiency
measures and the fact that the technological challenges of the newly introduced
technologies in the core business were overcome faster than expected. This
development was supported by a positive product mix and - based on the weaker
development of the Chinese renminbi against the euro - a favourable currency
development for production costs. The EBITDA margin amounted to 21.5%, thus
exceeding the prior-year level of 13.5% by 8.0 percentage points. The
comparative figures of the previous year were characterised by the ramp-up of
the two new plants in Chongqing, which entailed fixed production costs while
earnings were still low.

Depreciation and amortisation increased by 16.6% to EUR 67.5 million compared to
the same period of the previous year, which was primarily attributable to the
new plants in Chongqing. EBIT rose by EUR 42.7 million from
EUR -5.8 million to EUR 36.9 million and improved to a lesser extent than EBITDA
due to the increase in depreciation and amortisation. The EBIT margin was at
7.6% (prior-year period: -1.5 %).

Finance costs - net improved significantly from EUR -10.0 million to EUR -5.6
million especially due to positive exchange rate effects (H1 2017/18: EUR 3.1
million, prior-year period: EUR -3.7 million).

Tax expense amounted to EUR 15.9 million in the first six months (prior-year
period: tax income of EUR 1.0 million). The increase was attributable to the
good results at nearly all sites, on the basis of the discontinuation of the
capitalisation of deferred taxes for Chongqing and the discontinuation of the
reduced tax rate in Shanghai (which is expected to be regained in 2017).

Despite the increase in tax expense, the profit for the period improved by EUR
30.2 million from a loss of
EUR -14.8 million to a profit of EUR 15.4 million, due to a significantly better
operating result and improved finance costs - net. As a result, earnings per
share rose significantly from EUR -0.38 to EUR 0.40.

Cash and statement of financial position
Cash flow from earnings before changes in working capital amounted to EUR 87.2
million compared with EUR 36.9 million in the previous year. Cash flow from
investing activities - investments in plant under construction in Chongqing,
technology investments in other locations and investments in financial assets -
totalled EUR -95.1 million (prior-year period: EUR -155.1 million).

Despite the positive operating result equity declined by -8.8 % to EUR 492.6
million due to negative currency differences of EUR 59.0 million. The equity
ratio amounted to 36.1% (31 March 2017: 37.6%).

Net debt rose by 14.5% to EUR 435.7 million. This expected increase resulted
from investing activities and the higher net working capital. The net gearing
ratio increased to 88.5% compared with 70.5% at 31 March 2017.

Key financials:

According to IFRS; H1 2016/17 H1 2017/18 Change
in EUR million 01.04.-30.09.2016 01.04.-30.09.2017
Revenue 386.5 485.7 25.7%
EBITDA 52.1 104.4 > 100%
EBITDA margin (in 13.5 21.5 -
%)
EBIT -5.8 36.9 > 100%
EBIT margin (in %) -1.5 7.6 -
Profit/loss for the -14.8 15.4 > 100%
period
Cash flows from
operating
activities before 36.9 87.2 > 100%
changes in working
capital
Net CAPEX 142.5 95.0 -33.4%
Equity ratio 37.6* 36.1 -
Net debt 380.5* 435.7 14.5%
Earnings per
average number of -0.38 0.40 > 100%
shares outstanding
(in EUR)

* As of 31/03/2017.

Mobile Devices & Substrates segment with significant revenue growth and improved
earnings
The faster ramp-up of the new technology generation mSAP with a very positive
demand development, very strong demand also in the other parts of core business
and substantially higher revenue from IC substrates led to an increase in
revenue by 33.1% to EUR 358.9 million. EBITDA improved by EUR 55.8 million to
EUR 80.3 million and is based on general efficiency enhancement measures and
higher contribution margins. The EBITDA margin, at 22.4%, clearly exceeded the
prior-year level of 9.1%.

Automotive, Industrial, Medical segment with higher revenue and stable earnings
development
In the Automotive, Industrial, Medical segment revenue was up 6.0% to EUR 184.8
million based on strong demand in all segments, but especially in the Industrial
and Medical business. EBITDA was unchanged compared with the level of the
previous year, at EUR 23.0 million. The comparative figures of the previous year
included the reversal of a provision of building space unused until then in the
amount of EUR 3.3 million. The EBITDA margin, at 12.4%, was 0.8 percentage
points down on the previous year due to negative exchange rate effects, higher
raw material prices and the non-recurrence of the effect of the reversal of the
provision in the previous year. These effects were partially compensated by a
better product mix and efficiency enhancement measures.

Outlook for the financial year 2017/18
Provided that the macroeconomic environment and the USD/EUR currency relation
remain stable, the Management Board expects an increase in revenue by 20-25% for
the financial year 2017/18 (original forecast: 10-16%), an EBITDA margin of 19-
22% (original forecast 16-18%) and additional depreciation of roughly EUR 15
million in comparison with the financial year 2016/17 (original forecast:
approx. EUR 25 million).



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: ATX GP, VÖNIX, WBI
stockmarkets: Wien
language: English


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