EANS-News: AT & S Austria Technologie & Systemtechnik Aktiengesellschaft / AT&S reports increase in revenue and excellent profitability in the first nine months

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Quarterly Report

Leoben - AT&S reports increase in revenue and excellent profitability in the
first nine months

* Broad product portfolio supports positive business development
* Very strong demand for IC substrates and in the Medical & Healthcare segment
* Weaker demand in Mobile Devices in the third quarter
* Slight increase in revenue to EUR 790.1 million
* EBITDA up nearly 16% mainly due to efficiency increases
* Better profitability with an EBITDA margin of 27.9% and an EBIT margin of
15.4%
* Outlook for 2018/19: revenue growth of around 3% and EBITDA margin of 24 to
26%

In comparison with the same period of the previous year, AT&S increased revenue
and significantly improved earnings. "After a very positive first half-year, the
demand for mobile devices declined towards the end of the third quarter. Thanks
to the broad product, technology and customer portfolio, we were nevertheless
able to match the exceptionally high level of the previous year," AT&S CEO
Andreas Gerstenmayer commented on the current development.

Accumulated revenue rose by 3.2% from EUR 765.9 million to EUR 790.1 million.
Sales increases for IC substrates and in the Medical & Healthcare segment
partially offset the decline in demand recorded in the Mobile Devices,
Automotive and Industrial segments in the third quarter. Exchange rate effects,
especially the weaker US dollar, had a negative impact on the revenue
development. Positive effects resulted from the application of the new
accounting standard (IFRS 15).

EBITDA increased by 15.9% from EUR 190.3 million to EUR 220.5 million. The
increase primarily results from efficiency and productivity improvements, the
absence of the start-up costs incurred in Chongqing in the previous year and a
favourable product mix. This result was supported by positive currency effects.
The EBITDA margin amounted to 27.9% in the first nine months, an increase of 3.1
percentage points compared to the previous year level of 24.8%.

EBIT improved from EUR 88.8 million to EUR 121.5 million. The EBIT margin
amounted to 15.4% (previous year: 11.6%).
Finance costs - net improved significantly from EUR -11.3 million to EUR -2.6
million. Although gross debt was substantially higher than in the previous year,
gross interest expenses, at EUR 9.6 million, were lower than the prior-year
level of EUR 10.8 million due to optimisation measures carried out subsequent to
the hybrid bond. Interest income of EUR 3.1 million exceeded the prior-year
level of EUR 0.7 million. This increase resulted primarily from the improved
interest environment in the USD area. Exchange rate effects had a positive
impact of EUR 6.5 million on finance costs (previous year: income of EUR 2.0
million).
Statement of financial position and cash flow
Based on this increase in equity and the higher total assets resulting from the
issue of the promissory note loan, the equity ratio, at 42.9%, was 3.6
percentage points lower compared to 31 March 2018. Net debt declined by 34.7%
from EUR 209.2 million to EUR 136.7 million. Cash flow from operating activities
amounted to EUR 153.2 million in the first nine months of the financial year
2018/19 (previous year: EUR 121.0 million).

______________________________________________________________________________
|Acc. to IFRS; (in | Q1-3 2017/18 | Q1-3 2018/19 | Change |
|EUR_million)______|_01.04.-31.12.2017_|_01.04.-31.12.2018_|___________________|
|Revenue___________|______________765.9|______________790.1|_______________3.2%|
|EBITDA____________|______________190.3|______________220.5|______________15.9%|
|EBITDA margin (in | 24.8| 27.9| |
|%)________________|___________________|___________________|___________________|
|EBIT______________|_______________88.8|______________121.5|______________36.9%|
|EBIT_margin_(in_%)|_______________11.6|_______________15.4|___________________|
|Profit for the | 47.8| 92.3| 93.1%|
|period____________|___________________|___________________|___________________|
|Cash flow from | | | |
|operating | 121.0| 153.2| 26.6%|
|activities________|___________________|___________________|___________________|
|Net_CAPEX_________|______________124.6|_______________63.2|_____________-49.3%|
|Equity ratio (in | 46.5*| 42.9**| -|
|%)________________|___________________|___________________|___________________|
|Net_debt__________|_____________209.2*|____________136.7**|_____________-34.7%|
|Earnings per | | | |
|average number of | 1.21| 2.21| 83.2%|
|shares outstanding| | | |
|(in_EUR)__________|___________________|___________________|___________________|

* At 31.03.2018 ** At 31.12.2018

Mobile Devices & Substrates segment increases profitability
Although the positive business development continued, the demand for mobile
devices started to weaken in the third quarter of 2018/19. The segment benefited
primarily from a higher-value product portfolio of IC substrates. Accordingly,
the segment's revenue increased by 3.7% from EUR 580.0 million to EUR 601.5
million. Exchange rate effects had a negative impact of EUR 10.8 million on the
reported revenue.

EBITDA improved by 14.1% from EUR 155.3 million to EUR 177.2 million. The
significant increase in earnings primarily resulted from the successfully
implemented efficiency and productivity improvement measures and the absence of
start-up costs in Chongqing. This effect was supported by a higher-value product
portfolio of IC substrates and positive currency effects. Overall, the segment
recorded an EBITDA margin of 29.5%, which significantly exceeded the comparative
value of 26.8% in the prior-year period.

Automotive, Industrial, Medical segment at the level of the previous year
The segment's revenue, at EUR 270.6 million, was at the level of the previous
year. Strong demand was recorded in the Medical & Healthcare sector in the first
nine months, while demand in the other two sectors was slightly weaker.

The segment's EBITDA, at EUR 38.3 million, exceeded the prior-year figure of EUR
32.3 million by EUR 6.0 million. The contribution to earnings from a better
product mix and positive currency effects compensated for a decline in volume.

Outlook for the financial year 2018/19
Based on the current market development, especially the current weakness in
demand in the Mobile Devices and Automotive segments, the Management Board now
expects revenue growth of around 3% for the financial year 2018/19 (previously 6
to 8%). The Management Board confirms an EBITDA margin of 24 to 26%, which is
supported primarily by efficiency and productivity improvement measures and a
higher-value product portfolio of IC substrates.

Based on investments for the second expansion phase at plant 1 in Chongqing
leading to cash outflows at a later time, total investments will amount to
roughly EUR 100 to 120 million for the financial year 2018/19 (previously
roughly EUR 140 to 160 million), with maintenance investments still expected at
the planned level.

Further inquiry note:
Gerda Königstorfer, Director Investor Relations & Communications
Tel: +43 3842 200-5925; Mobile: +43 676 8955 5925; g.koenigstorfer@ats.net

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

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