AT&S Austria Technologie & Systemtechnik AG

Earnings Release • Aug 22, 2012

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Quarterly Financial Report 01 2012/2013

Key figures

	IFRS
(If not otherwise stated, all figures in EUR 1,000)	Q1 2012/13	Q1 2011/12
CONSOLIDATED INCOME STATEMENT
Revenues	126,034	110,463
thereof produced in Asia	73%	66%
thereof produced in Europe	27%	34%
EBITDA	21,057	18,185
EBITDA margin	16.7%	16.5%
EBIT	3,709	4,429
EBIT margin	2.9%	4.0%
Net income	517	2,061
Net income of owners of the parent company	519	2,135
Cash earnings	17,867	15,890
CONSOLIDATED BALANCE SHEET
Total assets	748,831	594,784
Total equity	300,080	227,946
Total equity of owners of the parent company	300,135	227,666
Net debt	243,798	216,945
Net gearing	81.2%	95.2%
Net working capital	100,946	85,558
Net working capital per revenues	20.0%	19.4%
Equity ratio	40.1%	38.3%
CONSOLIDATED CASH FLOW STATEMENT
Net cash generated from operating activities (OCF)	6,113	14,341
CAPEX, net	9,284	28,307
GENERAL INFORMATION
Payroll (incl. leased personnel), ultimo	7,310	7,284
Payroll (incl. leased personnel), average	7,378	7,379
KEY STOCK FIGURES
Earnings per share (EUR)	0.02	0.09
Cash earnings per share (EUR)	0.77	0.68
Market capitalisation, end of period	190,079	309,024
Market capitalisation per equity	63.3%	135.7%
Weighted average number of shares outstanding	23,322,588	23,322,588
KEY FINANCIAL FIGURES
ROE1)	0.7%	3.6%
ROCE1)	3.1%	3.8%
ROS	0.4%	1.9%

1) Calculated on the basis of average values.

Highlights

• AT&S ends first quarter of 2012/13 with sales of EUR 126m, up 14% on the total for the same period a year earlier
• Mobile Devices lagging expectations
• Automotive and Industrial continuing stable
• AT&S reaffirms guidance and continues to forecast sales and earnings growth for current financial year based on the following factors:
• ongoing introduction of new models
• expansion of customer portfolio
• improved capacity utilisation at production facilities

Statement of the Management Board

Dear shareholders,

The first three months of the financial year 2012/13 were modest. We started the quarter well, but were confronted with various unforeseen events in the second half. Mobile Devices customers wound down a number of ongoing projects earlier than originally scheduled, and there were delays in the introduction of new models. The result was capacity underutilisation at our plant in Shanghai, which had a negative impact on the Group's profit. Consolidated net profit fell short of expectations, at EUR 0.52m.

Favourable developments on various new projects show that the current situation can be safely viewed as a transformation period. Order intake picked up again significantly in the first few weeks of July. Shanghai is filling up, and capacity utilisation is increasing again. With new models coming to market, as well as the expansion of the customer portfolio, we are looking to the months ahead with confidence. We reaffirm our positive outlook for the financial year 2012/13, which forecasts year on year increases in both revenues and profits – subject to stable macroeconomic conditions.

First quarter results In the first quarter of the financial year 2012/13 AT&S Group posted sales of around EUR 126m, which was EUR 16m more than in the same period last year. Earnings before interest and tax (EBIT) for the first quarter came to EUR 3.7m. The first quarter was shaped by traditional seasonal factors as well as a series of events in the Mobile Devices segment. Scheduled changeovers to new models and sales problems experienced by individual customers led to short-term capacity underutilisation at the plant in Shanghai. Delays in the introduction of new models led to lower than budgeted capacity utilisation in Shanghai for the first quarter, a development which was reflected in the narrower EBIT margin.

Industrial and automotive business grew steadily as a result of strong demand for high-end printed circuit boards in the automotive supply industry. The realignment of the Leoben plant towards technical niche products has proved its worth in today's challenging business environment. Demand from our major customers in the industrial sector continues to be weak. Overall, capacity utilisation in our Austrian plants was in line with expectations.

Key indicators for the first three months of the financial year 2012/13 were as follows:

• Sales revenues EUR 126.03m
• Gross profit: EUR 15.45m,
• for a gross margin of 12.26% EBITDA: EUR 21.06m,
• for an EBITDA margin of 16.71% Operating profit: EUR 3.71m,
• for an EBIT margin of 2.9%
• Profit before tax: EUR 0.03m
• Consolidated net profit: EUR 0.52m Earnings per share: EUR 0.02
• No. of shares outstanding (average)*: 23,323 * Thousands of shares

Financing The maturities of the total financial liabilities of EUR 319.4m were as follows:

Less than 1 year	EUR 144.5m
1-5 years	EUR 140.4m
More than 5 years	EUR 34.5m

The net debt increased only slightly (EUR 244m compared with EUR 243m at 31 March 2012).

Chongqing Construction of the plant in Chongqing is progressing according to plan. Phase I – consisting of the construction of an administration building and a production facility for the first phase of expansion – will be completed shortly. We are currently involved in intensive discussions with our customers regarding the future technological focus of the plant.

Audits successfully completed at

all plants In mid-May all AT&S sites successfully achieved recertification for the ISO 9001, ISO/TS 16949, ISO 14001 and OHSAS 18001 standards. Independent auditors confirmed that the guidelines were being systematically applied in all AT&S plants. The worldwide audits demonstrate once again how AT&S, as one of the world's strongest performing producers of printed circuit boards, achieves the optimal combination of economic performance, environmental responsibility and social commitment with the aid of an integrated management system.

AT&S backs high-flying young tech- nologists We would like to pay tribute to the excellent

work put in by the students on the Electronics & Technology Management course at the Joanneum University of Applied Sciences in Kapfenberg by awarding the AT&S Stipend for Excellence in Electronics to three outstanding students – one of whom will be female. This scheme is also an effective way of highlighting the urgent need for highly qualified technical experts. Close cooperation with universities, and investment in training and further education are important ways for us as to do something about the shortage of suitably trained experts in the region and position the Group as an attractive local employer.

Andreas Gerstenmayer Chairman

With best regards

Thomas Obendrauf Chief Financial Officer

Heinz Moitzi Chief Technical Officer

Corporate governance informationen

18th Annual General Meeting The 18th Annual General Meeting of AT & S Austria Technologie und Systemtechnik Aktiengesellschaft (AT&S), held on 5 July 2012, resolved that the retained earnings as at 31 March 2012 amounting to EUR 24,237,345.84 should be distributed in payment of a dividend of EUR 0.32 per share on the qualifying shares in issue on the payment date, with the remaining amount being carried forward.

Investment income withholding tax of 25% is deductible from the dividend payable. In accordance with the statutory tax regulations and the Articles of Association, the dividend payment date is 26 July 2012. Dividends will be paid through the respective depository banks. The paying agent is Raiffeisen Centrobank AG, Vienna.

The Chairman of the Supervisory Board Mr. Hannes Androsch reported that during financial year 2011/12 the Board received reports on business developments and the state of the Company's affairs in four meetings with the Management Board, and that the Supervisory Board monitored the Management Board in accordance with the law and the Company's Articles of Association. The annual financial statements and the consolidated financial statements for the financial year 2011/12, including the notes to the accounts, the management report and the Group management report, were given an unqualified audit opinion by the auditors, PwC Wirtschaftsprüfung GmbH, Vienna. The members of the Management Board and the Supervisory Board were discharged from liability for the financial year 2011/12.

The Annual General Meeting approved Supervisory Board remuneration of EUR 238,600 for the financial year 2011/12.

PwC Wirtschaftsprüfung GmbH, Vienna was reappointed as the Company and Group auditors for the financial year 2012/2013.

Changes in the Audit Committee On

31 May 2012, the Supervisory Board appointed Regina Prehofer to the Audit Committee in place of Willibald Dörflinger. She was also appointed chairwoman of the Committee. The composition of the Audit Committee is now as follows:

• Regina Prehofer (chairwoman)
• Gerhard Pichler (finance expert)
• Georg Riedl

The following members were delegated to the Audit Committee by the employee representatives:

• Wolfgang Fleck
• Günther Wölfler

AT&S stock options

Stock options held by members of the Management Board were as follows (Supervisory Board members do not receive stock options):

	Stock options allocated as of	Allocation of	Allocation of	Allocation of	Allocation of	Allocation
	30 June 2012	1 April 2012	1 April 2011	1 April 2010	1 April 2009	of 1 April 2008
Andreas Gerstenmayer	120,000	40,000	40,000	40,000	0	0
Heinz Moitzi	144,000	30,000	30,000	30,000	24,000	30,000
Thomas Obendrauf	64,500	30,000	30,000	1,500	1,500	1,500
Exercise price (EUR)		9.86	16.60	7.45	3.86	15.67

AT&S stock

Shareholdings As of 30 June 2012, 50.8% of AT&S's shares were in the free float, 21.51% were held by the Androsch Private Foundation, 17.74% by the Dörflinger Private Foundation and 9.95% by AT&S.

Share price in the first three months of 2012/13 Over the past three months, the performance of AT&S stock was mainly determined by the following factors:

• The continued drop in volumes traded on the Vienna Stock Exchange
• The debate surrounding the debt crisis in certain European countries and the resulting lack of confidence of international investors in European equities
• Negative reports concerning some key customers in the smartphone segment

AT&S stock lost 11% of its value in the first three months of the financial year, taking its market capitalisation to approximately EUR 190m at the end of the period.

One very pleasing development was the decision of investment bank Kepler and private bank Hauck & Aufhäuser – both of which specialise in independent research – to begin coverage of AT&S stock. At the end of the reporting period the AT&S share was being followed by six analyst houses, of which four rated the share "buy" and two gave it a "hold" recommendation.

In May, AT&S took part in Deutsche Bank's 2012 German, Swiss and Austrian Conference in Frankfurt. Over 50 investors visited the Hinterberg plant for an investors' day organised in cooperation with the Vienna Stock Exchange.

AT&S against the ATX Prime

Key stock figures for the first three months (EUR)

	30 June 2012	30 June 2011
Earnings per share	0.02	0.09
High	9.60	16.05
Low	7.70	12.25
Close	8.15	13.25

AT&S share

Vienna Stock Exchange
969985
AT0000969985
ATS
ATSV.VI
ATS AV
ATX Prime, WBI SME

Financial calendar

24 October 2012	Treasury stock Publication of results for
	17.74% second quarter 2012/13 Dörflinger Private Foundation
22 January 2013	Publication of results for
	21.51% third quarter 2012/13 Androsch Private Foundation
8 May 2013	Publication of annual results 2012/13 50.80%

ContaCt Investor Relations

Martin Theyer Tel: +43 (0)3842/200-5909 E-mail: m.theyer@ats.net

Interim Financial Report (IFRS)

Consolidated Income Statement

	1 April - 30 June
(in EUR 1,000)	2012	2011
Revenues Cost of sales	126,034 (110,581)	110,463 (96,635)
Gross Profit	15,453	13,828
Selling costs	(6,827)	(5,992)
General and administrative costs	(4,695)	(5,283)
Other operating result	(222)	1,876
Operating result	3,709	4,429
Financial income	216	381
Financial expense	(3,897)	(2,492)
Financial result	(3,681)	(2,111)
Profit before tax	28	2,318
Income tax expense	489	(257)
Profit for the period	517	2,061
thereof owners of the parent company	519	2,135
thereof non-controlling interests	(2)	(74)
Earnings per share for profit attributable to equity holders of the parent company (in EUR per share):
- basic	0.02	0.09
- diluted	0.02	0.09
Weighted average number of shares outstanding - basic (in thousands)	23,323	23,323
Weighted average number of shares outstanding - diluted (in thousands)	23,352	23,407

Consolidated Statement of Comprehensive Income

	1 April - 30 June
(in EUR 1,000)	2012	2011
Profit for the period	517	2,061
Currency translation differences	16,475	(3,895)
Fair value (losses) of available-for-sale financial assets, net of tax	(20)	(3)
Fair value (losses) of cash flow hedges, net of tax	(2)	(33)
Other comprehensive income for the period	16,453	(3,931)
Total comprehensive income for the period	16,970	(1,870)
thereof owners of the parent company	16,970	(1,796)
thereof non-controlling interests	–	(74)

Consolidated Balance Sheet

	30 June	31 March
(in EUR 1,000)	2012	2012
ASSETS
Non-current assets
Property, plant and equipment	466,175	454,466
Intangible assets	2,342	2,451
Financial assets	96	96
Overfunded retirement benefits	526	581
Deferred tax assets	18,235	16,819
Other non-current assets	9,058	8,730
	496,432	483,143
Current assets
Inventories	65,621	64,909
Trade and other receivables	110,615	115,483
Financial assets	735	768
Current income tax receivables	666	617
Cash and cash equivalents	74,762	29,729
	252,399	211,506
Total assets	748,831	694,649
EQUITY Share capital	45,535	45,535
Other reserves	39,006	22,555
Retained earnings	215,594	215,075
Equity attributable to owners of the parent company	300,135	283,165
Non-controlling interests	(55)	(55)
Total equity	300,080	283,110
LIABILITIES
Non-current liabilities
Financial liabilities	174,920	188,729
Provisions for employee benefits	14,448	13,895
Other provisions	11,233	11,422
Deferred tax liabilities	6,085	5,701
Other liabilities	3,563	3,641
	210,249	223,388
Current liabilities
Trade and other payables	91,299	98,037
Financial liabilities	144,472	84,399
Current income tax payables	1,026	3,551
Other provisions	1,705	2,164
	238,502	188,151
Total liabilities	448,751	411,539
Total equity and liabilities	748,831	694,649

Consolidated Statement of Cash Flows

		1 April - 30 June
(in EUR 1,000)	2012	2011
Cash flows from operating activities
Profit for the period	517	2,061
Adjustments to reconcile profit for the period to cash generated from operations:
Depreciation, amortisation and impairment of property, plant and equipment and
intangible assets	17,348	13,756
Changes in non-current provisions	343	90
Income tax expense/(income)	(489)	257
Financial expense	3,681	2,111
(Gains)/losses from the sale of fixed assets	(17)	109
Release from government grants	(110)	(360)
Other non-cash expense/(income), net	285	(249)
Changes in working capital:
- Inventories	527	(2,571)
- Trade receivables and others	3,389	12,736
- Trade and other payables	(10,601)	(3,228)
- Other provisions	(456)	(651)
Cash generated from operations	14,417	24,061
Interest paid	(5,408)	(5,515)
Interest and dividends received	123	62
Income tax paid	(3,019)	(4,267)
Net cash generated from operating activities	6,113	14,341
Cash flows from investing activities
Capital expenditure for property, plant and equipment and intangible assets	(12,597)	(28,369)
Proceeds from sale of property, plant and equipment and intangible assets	3,313	62
Proceeds from sale of available for sale securities	35	–
Purchases of financial assets	(56)	(619)
Proceeds from sale of financial assets	61	800
Net cash used in investing activities	(9,244)	(28,126)
Cash flows from financing activities
Changes in other borrowings	47,195	26,659
Proceeds from government grants	16	362
Net cash generated from financing activities	47,211	27,021
Net increase in cash and cash equivalents	44,080	13,236
Cash and cash equivalents at beginning of the year	29,729	4,227
Exchange gains/(losses) on cash and cash equivalents	953	(8)
Cash and cash equivalents at end of the period	74,762	17,455

Consolidated Statement of Changes in Equity

	Equity
				attributable to
				owners	Non
	Share	Other	Retained	of the parent	controlling	Total
(in EUR 1,000)	capital	reserves	earnings	company	interests	equity
31 March 2011	44,475	(12,032)	197,020	229,463	353	229,816
Profit for the period	–	–	2,135	2,135	(74)	2,061
Other comprehensive income for the period	–	(3,931)	–	(3,931)	–	(3,931)
Total comprehensive income for the period	–	(3,931)	2,135	(1,796)	(74)	(1,870)
30 June 2011	44,475	(15,963)	199,155	227,667	279	227,946
31 March 2012	45.535	22.555	215.075	283.165	(55)	283.110
Profit for the period	–	–	519	519	(2)	517

30 June 2012	45.535	39.006	215.594	300.135	(55)	300.080
Total comprehensive income for the period	–	16.451	519	16.970	–	16.970
Other comprehensive income for the period	–	16.451	–	16.451	2	16.453

Segment Reporting

1 April - 30 June 2012

		Industrial &		Elimination /
(in EUR 1,000)	Mobile Devices	Automotive	Others	Consolidation	Group
Segment sales	78,569	56,052	392	(8,979)	126,034
Intersegment sales	(8,782)	(167)	(30)	8,979	–
Segment revenue, net	69,787	55,885	362	–	126,034
Operating result	1,414	2,482	(193)	6	3,709
Financial result					(3,681)
Profit before income tax					28
Income tax expense					489
Profit for the period					517
Intangible and tangible fixed assets	409,006	50,918	8,593	–	468,517
Investments	12,839	830	713	–	14,382
Depreciation/amortisation	14,792	1,996	560	–	17,348

1 April - 30 June 2011

		Industrial &		Elimination /
(in EUR 1,000)	Mobile Devices	Automotive	Others	Consolidation	Group
Segment sales	59,282	55,533	224	(4,576)	110,463
Intersegment sales	(4,546)	–	(30)	4,576	–
Segment revenue, net1)	54,736	55,533	194	–	110,463
Operating result2)					4,429
Financial result					(2,111)
Profit before income tax					2,318
Income tax expense					(257)
Profit for the period					2,061
Intangible and tangible fixed assets	341,189	52,994	9,811	–	403,994
Investments	30,406	2,675	213	–	33,294
Depreciation/amortisation	11,403	1,947	406	–	13,756

Additional information

Revenue broken down by region is as follows:

	1 April - 30 June
(in EUR 1,000)	2012	2011
Austria	4,790	5,600
Germany	32,085	33,862
Hungary	5,862	12,238
Other European countries	11,176	9,783
Asia	56,319	29,061
Canada, USA, Mexico	13,965	18,523
Other	1,837	1,396
	126,034	110,463

1) A changed foreign currency translation principle leads to a minor different segment revenue net in comparison to the prior year financial report

2) A retrospective segmentation for the comparison period exceeds the economically justifiable time and effort

Notes to the Interim Financial Report

General

Accounting and valuation policies The interim report for the quarter ended 30 June 2012 has been prepared in accordance with the standards (IFRS and IAS) and interpretations (IFRIC and SIC) of the International Accounting Standards Board (IASB) as adopted by the European Union, and taking IAS 34 into account.

The consolidated interim financial statements do not include all the information contained in the consolidated annual financial statements and should be read in conjunction with the consolidated annual financial statements for the year ended 31 March 2012.

There are no differences in accounting and valuation policies compared with those applied in the financial year ended 31 March 2012, with the exception of the segment reporting.

In the financial year 2011/12 the Management Board – with the Supervisory Board's approval – decided to improve the Group's organisational structure with the aim of adapting its operational processes even better to its customers' needs. Three business units were created: Mobile Devices, Industrial & Automotive and Advanced Packaging. Since internal reporting was also adapted to reflect the changes, segment reporting has also been changed. Advanced Packaging is still under development as a business unit, and is therefore not yet disclosed separately but is included under "Other". Since no comparable information is available for the financial year 2011/12, no comparative segment operating results for the year are disclosed.

The consolidated interim statements for the three months ended 30 June 2012 are unaudited and have not been the subject of external audit review.

Notes to the income statement

Revenues Sales in the first quarter of the current financial year increased 14% in comparison with the same period last year, principally as a result of higher sales volumes in Mobile Devices. Since a large part of these sales are invoiced in USD, the strength of the dollar during the period under review was also a positive factor.

Quarter on quarter, Industrial & Automotive sales were stable. Demand in the automotive sector was strong, but was weaker in industrial business, reflecting the overall economic weakness of that sector.

The geographical distribution of production volumes – 73% in

Asia and 27% in Europe – showed a shift in the direction of Asia (in the comparable period last year, the split was 66% to 34%). Sales volumes were also more heavily weighted in Asia's favour, with 45% of sales generated there, compared with 11% in America and 44% in Europe. In the same period last year, Asia accounted for 26% of the total, with America contributing 17% and Europe 57%.

Gross profit The higher sales also brought an increase in gross profit, but the gross profit margin of 12% for the quarter was unchanged from last year. The gross profit margin in both Mobile Devices and Industrial & Automotive remained stable.

Operating results In the first quarter of last financial year the Group achieved an operating profit amounting to 4% of sales revenues. In the current financial year, unfavourable exchange rate movements together with start-up costs for Chongqing resulted in a negative other operating result, so that the EBIT margin fell back to 2.9%. The cost centres for administrative and selling costs and for other operating income and expenses have been grouped in a different way in the financial year 2012/13, so that segment EBIT for the quarter is not comparable with that of the previous year, which is therefore not shown.

Financial resultsFinancial income consisted of interest income on short-term investments and valuation effects principally associated with intra-group USD financial receivables.

Financial expenses consisted of interest expense of EUR 3.6m, compared with EUR 2.3m in the same period last year, and of unrealised exchange gains on Group financing. The increase in interest expense incurred reflects the accrual for interest on the EUR 100m bond issued in November 2011.

Taxes on income The change – as compared with the same period last year – in the effective rate of tax on a consolidated basis is mainly a consequence of the recognition of deferred taxation in China on the first quarter's earnings.

Notes to the statement of compre- hensive income

Currency translation differences The favourable movement of EUR 16.5m on the foreign currency translation reserve in the first quarter of the current financial year consisted almost exclusively of changes in exchange rates of the Group's functional currencies, the renminbi yuan (CNY) and Hong Kong dollar (HKD), against the Group reporting currency, the euro. In the same period last year there was an unfavourable movement amounting to EUR 3.9m.

Notes to the balance sheet

Assets and finances Net debt, at EUR 243.8m, remained stable at the same level as at 31 March 2012. Net current assets rose from EUR 92.3m at 31 March 2012 to EUR 100.9m. Over the same period, the net gearing ratio fell from 86% to 81%.

As a result of the healthy earnings and of foreign currency translation gains, consolidated equity rose from EUR 283.1m at the end of the last financial year to EUR 300.1m at 30 June 2012. Consolidated total comprehensive income for the period totalled EUR 17.0m.

Treasury shares In the 16th Annual General Meeting of 7 July 2010 the Management Board was again authorised for a period of 30 months from the date of the resolution to acquire the Company's own shares up to a maximum amount of 10% of the share capital. The Management Board was also again authorised – for a period of five years (i.e., until 6 July 2015) and subject to the approval of the Supervisory Board – to dispose of treasury shares otherwise than through the stock exchange or by means of a public offering, and in particular for the purpose of enabling the exercise of employee stock options or the conversion of convertible bonds, or as consideration for the acquisition of businesses or other assets.

No further treasury shares were acquired under the share repurchase scheme in the first quarter of this financial year. At 30 June 2012 and taking into account the stock options exercised, the Group held the same number of treasury shares – 2,577,412 shares, or 9.95% of the issued share capital – as at 31 March 2012, with a total acquisition cost of EUR 46.6m.

Notes to the statement of cash

flows Net cash generated from operating activities came to EUR 6.1m, compared with EUR 14.3m in the same period last year. The main reason was the change in other financial assets held for trading purposes.

The net cash used in investing activities totalled EUR 9.2m, significantly lower than the net outflow of EUR 28.1m in the first quarter of the last financial year, which was the result of heavy investment in the final phase of expansion of capacity in Shanghai.

The cash inflow from financing activities increased by EUR 47.2m, as the result of a loan of EUR 69.0m provided by Österreichische Kontrollbank (OeKB). At the same time, Management stepped up repayment of short-term financial liabilities, with the effect that the net cash used in financing activities came out at EUR 21.8m.

Other information

Dividends After the end of the first quarter of the current financial year, the Annual General Meeting of 5 July 2012 resolved on a dividend of EUR 0.32 per share out of retained earnings at 31 March 2012.

Related party transactions In the first quarter of the current financial year fees of EUR 91,000 payable to AIC Androsch International Management Consulting GmbH were incurred in connection with various projects.

Leoben-Hinterberg, 24 July 2012

Management Board

Andreas Gerstenmayer m.p. Thomas Obendrauf m.p. Heinz Moitzi m.p.

Group Interim Management Report

Business developments and perfor- mance Sales of printed circuit boards, particularly for mo-

bile devices, are subject to seasonal fluctuations. The first and fourth quarters of the financial year tend to be characterised by capacity under-utilisation, while the second and third quarters are generally periods of higher output. Sales of EUR 126m in the first quarter of the current financial year were up by 14% in comparison with the same period last year. For the coming quarters we are expecting further increases in sales, provided always that the macroeconomic environment remains stable.

In terms of business segments, Mobile Devices achieved a marked increase in sales as compared with the first quarter of the last financial year – they were up 28%, to EUR 69.8m. It should be noted, however, that last year's first quarter results for Mobile Devices fell substantially short of expectations because of the disaster in Japan. In Industrial & Automotive, sales were stable – EUR 55.9m, as against EUR 55.5m in the comparable period last year.

The Austrian facilities in particular were again successful in raising prices per square metre by focusing production on hightech printed circuit boards.

Our plant in Shanghai, which is geared towards large batches using HDI technology, achieved less than full capacity utilisation in the first quarter as a result of model changes, delayed products ramp-ups and the sales problems experienced by some customers. We are expecting the situation to improve in the coming months.

Work on a further production facility in Chongqing, China, continues. Discussions with customers as to future technological requirements are underway.

Significant risks, uncertainties and opportunities There were no material differences in the categories of risk exposure in the course of the first quarter of the financial year 2012/13 compared with those described in detail in the notes to the 2011/12 consolidated financial statements under II. Risk Report.

Liquidity at AT&S is excellent. The issue of a five-year EUR 100m bond in November 2011 and the provision of a long-term loan by Österreichische Kontrollbank in April 2012 mean that ample long-term funds are available. Sufficient credit facilities are also available to cover the increased working capital requirements resulting from higher volumes of business. In addition to this, on the basis of the authorisation conferred in the Annual General Meeting of 7 July 2010, the Management Board also has the option of issuing up to 12,950,000 new shares out of authorised capital and convertible bonds up to a nominal value of EUR 100,000,000, and may dispose of treasury shares.

In the first quarter of financial 2012/13 there was a significant positive cash flow from operating activities. On the basis of expected continuing net cash inflows from operating activities and the extensive financing options, enough liquidity is available to cover all currently planned and potential future investments.

For more information on the use of financial instruments please refer to the detailed Risk Report in the notes to the consolidated annual financial statements. Group exposure to currency risk and its effects on operating profit is further reduced by the fact that the Group's sales in US dollars are largely originated in production facilities in the extended dollar area. With respect to the remaining effects, changes in the exchange rates of functional currencies against the reporting currency, the euro, are mainly recognised directly in equity without affecting profit or loss.

Net gearing of 81% at 30 June 2012 was lower than at the end of the financial year 2011/12 (86%). Foreign currency translation gains from the appreciation of the CNY and HKD against the EUR helped to strengthen the Group's equity base, so that we were nearly able to achieve the target ratio of 80%.

In the first quarter, internal and external growth expectations for AT&S were missed by a small margin. With respect to the opportunities and risks attaching to developments in the external environment for financial 2012/13 as a whole, the assumption is still that total sales of the printed circuit board industry worldwide will increase.

Outlook The increasing use of electronic devices in a wide range of day-to-day applications justifies the assumption that the demand for printed circuit boards will continue to grow, especially at the high value end of the spectrum. Given AT&S's concentration on the high-tech segment, Management is assuming that the Group's opportunities for growth are above average.

As long as the macroeconomic environment remains stable, we are predicting continuing revenue growth. Current global economic developments have made it more difficult to quantify future demand reliably, which in turn makes forecasting more uncertain.

Decisions on future investments will be taken in the coming weeks, after discussions with our customers.

Leoben-Hinterberg, 24 July 2012

Management Board

Andreas Gerstenmayer m.p. Thomas Obendrauf m.p. Heinz Moitzi m.p.

Contact details and credits

Contact

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria Tel: +43 (0)3842 200-0 www.ats.net

Public Relations And Investor Relations

Martin Theyer Tel.: +43 (0)3842/200-5909 E-mail: m.theyer@ats.net

Editorial team

Michael Dunst Christina Schuller Monika Stoisser-Göhring

Published by and responsible for content

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria www.ats.net

Design

Werbeagentur DMP Digital Motion Picture Datenverarbeitungs GmbH www.agentur-dmp.at

Picture Archiv

www.shutterstock.com

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 8700 Leoben Austria www.ats.net