Earnings Release • Feb 19, 2014
Earnings Release
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| before non recurring items |
after non recurring items |
before non recurring items |
after non recurring items |
|
|---|---|---|---|---|
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS | Q1-3 2013/14 | Q1-3 2012/13 1) | ||
| Revenue | 450,947 | 405,121 | ||
| thereof produced in Asia | 76% | 75% | ||
| thereof produced in Europe | 24% | 25% | ||
| EBITDA | 103,142 | 100,138 | 74,576 | 74,576 |
| EBITDA margin | 22.9% | 22.2% | 18.4% | 18.4% |
| EBIT | 46,462 | 43,458 | 21,131 | 21,131 |
| EBIT margin | 10.3% | 9.6% | 5.2% | 5.2% |
| Profit for the period | 33,441 | 30,437 | 5,589 | 5,589 |
| thereof owners of the parent company | 33,408 | 30,404 | 5,589 | 5,589 |
| Cash earnings | 90,088 | 87,084 | 59,034 | 59,034 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 31 December 2013 | 31 March 2013 1) | ||
| Total assets | 771,367 | 726,663 | ||
| Total equity | 396,231 | 304,844 | ||
| Total equity of owners of the parent company | 396,250 | 304,895 | ||
| Net debt | 112,301 | 217,409 | ||
| Net gearing | 28.3% | 71.3% | ||
| Net working capital | 99,569 | 102,679 | ||
| Net working capital per revenue | 16.6% | 19.0% | ||
| Equity ratio | 51.4% | 42.0% | ||
| CONSOLIDATED STATEMENT OF CASH FLOWS | Q1-3 2013/14 | Q1-3 2012/13 1) | ||
| Net cash generated from operating activities (OCF) | 82,070 | 28,260 | ||
| CAPEX, net | 69,717 | 32,844 | ||
| GENERAL INFORMATION | 31 December 2013 | 31 March 2013 1) | ||
| Payroll (incl. leased personnel), end of reporting period | 7,100 | 7,011 | ||
| Payroll (incl. leased personnel), average | 7,043 | 7,321 | ||
| KEY STOCK FIGURES | Q1-3 2013/14 | Q1-3 2012/13 1) | ||
| Earnings per share (EUR) | 1.18 | 1.08 | 0.24 | 0.24 |
| Cash earnings per share (EUR) | 3.20 | 3.09 | 2.53 | 2.53 |
| Weighted average number of shares outstanding | 28,192,723 | 23,322,588 | ||
| Market capitalisation, end of reporting period | 277,778 | 187,980 | ||
| Market capitalisation per equity | 70.1% | 66.2% | ||
| Shares outstanding, end of reporting period | 38,850,000 | 23,322,588 | ||
| KEY FINANCIAL FIGURES | Q1-3 2013/14 | Q1-3 2012/13 1) | ||
| ROE 2) | 12.7% | 11.9% | 2.6% | 2.6% |
| ROCE 2) | 11.0% | 10.4% | 4.7% | 4.7% |
| ROS | 7.4% | 6.8% | 1.4% | 1.4% |
1) Adjusted in application of IAS 19 revised
2) Calculated on the basis of average values
*compared to Q1 – Q3 2012/13
Dear shareholders,
In the first three quarters of the financial year 2013/14 we faced a challenging economic climate. However, demand for our high-end technologies was very strong, particularly for mobile devices.
Growth rates for Automotive and Medical Technology remained high. Thanks to our strong position in these markets, capacity utilisation was strong at all of our plants, with revenue and earnings up significantly compared with the same period a year earlier. Taking seasonal factors into account for the remaining quarter, the full-year guidance for 2013/14 remains unchanged.
RESULTS Q1 – Q3 2013/14 In the first three quarters of the financial year 2013/14 AT&S Group posted sales of around EUR 451 million (m), a year-on-year improvement of some 11%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) advanced by around 34% to EUR 100m. Consolidated net income increased from EUR 6m in the same reporting period last year to EUR 30m. Earnings per share increased from EUR 0.24 to EUR 1.08.
Our continued strong performance in the third quarter was chiefly attributable to the excellent capacity utilisation at all plants, and to sustained demand for high-value applications from our mobile devices and automotive customers.
Key indicators for the first nine months of the financial year 2013/14 are as follows:
FINANCING The maturities of the total financial liabilities of EUR 215.3m were as follows:
| Less than 1 year: | EUR | 45.6m |
|---|---|---|
| 1–5 years: | EUR 152.4m | |
| More than 5 years: | EUR | 17.3m |
MOBILE DEVICES SCORES WITH OUT-STANDING QUALITY The Shanghai plant reported strong capacity utilisation once again in the third quarter. Overall, revenue for the first nine months of the year was up by about 10% or EUR 23m on the same period of 2012/13.
The importance of the AT&S's stringent quality standards was recently reflected in the Best Quality Performance 2013 award presented to the group in its capacity as lead supplier for smartphones to one of the world's largest smartphone manufacturers, ZTE.
& AUTOMOTIVE Demand remained high, particularly for high-value printed circuit boards from automotive customers. Total revenue for Industrial and Automotive rose by about 12% or around EUR 21m year on year.
ADVANCED PACKAGING There were indications of significant market interest in AT&S's patented ECP® technology, which confirms the correctness of the decision to address one of the most important current technology trends, while setting the signal for revenue gains in the medium term.
Gearing up the Chongqing plant for the new integrated circuit (IC) substrates business is progressing according to plan. Over the past nine months the group's investment activities have focused on installing the necessary infrastructure.
OUTLOOK 2013/14 In light of seasonal patterns in the printed circuit board industry, our full-year guidance is unchanged for 2013/14, with revenue growth of 5% year on year and an EBITDA margin of 18-20%.
With best regards
Andreas Gerstenmayer Chairman of the Management Board
Heinz Moitzi Chief Technical Officer
Karl Asamer (born 19 January 1970) was appointed CFO – as the successor to Chief Financial Officer Thomas Obendrauf, who retired from the Management Board with effect from the end of the 2012/13 financial year – and Deputy Chairman of the Management Board by the Supervisory Board on the basis of a recommendation by the Nomination and Renumeration Committee. Karl Asamer will take up his new role on 1 April 2014, and his appointment as board member initially extends for three years. Management Board Member Andreas Gerstenmayer's appointment as interim Chief Financial Officer ends at the end of the current financial year, on 31 March 2014. The 78th meeting of the Supervisory Board, held on 19 December 2013, passed a resolution on the corresponding changes to the rules and procedures of the Management Board.
Each member of the Management Board is responsible for the following areas of the business, which does not affect their statutory collective responsibility:
a) As Chairman of the Management Board (CEO), Andreas Gerstenmayer's responsibilities are:
b) Karl Asamer was appointed Deputy Chairman of the Management Board with effect from 1 April 2014. As CFO, his managerial responsibilities are:
c) As COO, Heinz Moitzi's responsibilities are:
Franz Katzbeck, a delegate of the Works Council in Fehring, was appointed to the Supervisory Board. He replaces Johann Fuchs, who had performed this role since January 2000. Franz Katzbeck attended a meeting of the Supervisory Board for the first time on 19 December 2013. The composition of the Supervisory Board is now as follows:
Members of the Supervisory Board
Shareholder representatives
Members of the Nomination and Renumeration Committee
AT&S CAPITAL INCREASE On 17 September 2013 the Supervisory Board of AT&S AG made a policy decision and passed a resolution to carry out a capital increase by issuing up to 12,950,000 new shares, and also to sell 2,577,412 shares held by AT&S AG.
As a first step, the Project Committee of the Supervisory Board made an implementing decision authorising a resolution to allot 3,367,471 new shares representing subscription rights waived by the two principal shareholders to institutional investors in an accelerated bookbuilding process. The issue was registered in the Register of Companies on 20 September 2013. On the basis of a second implementing decision of the Project Committee of the Supervisory Board on 4 October 2013, a further 9,582,529 new shares were issued at a price of EUR 6.50 per share. This second increase in capital was registered in the Register of Companies on 5 October 2013. In the course of issuing new shares, at the same time the 2,577,412 shares held by AT&S AG were sold at a price of EUR 6.50 per share. In consequence, AT&S AG no longer holds any treasury stock.
AT&S STOCK OPTIONS Stock options held by members of the Management Board were as follows (Supervisory Board members do not receive stock options). Number of shares:
| Stock options | Origin of stock options on stock | |||||
|---|---|---|---|---|---|---|
| as of 31 December 2013 * |
Allocation of 1 April 2012 |
Allocation of 1 April 2011 |
Allocation of 1 April 2010 |
Allocation of 1 April 2009 |
||
| Andreas Gerstenmayer | 120,000 | 40,000 | 40,000 | 40,000 | 0 | |
| Heinz Moitzi | 114,000 | 30,000 | 30,000 | 30,000 | 24,000 | |
| Exercise Price (EUR) | 9.86 | 16.60 | 7.45 | 3.86 |
* The stock option plan affected by the new rules has now expired, with the last allocation made on 1 April 2012. Options granted under this scheme must be exercised by 31 March 2016. No new stock option plan has been implemented.
DIRECTORS' DEALINGS In the course of the capital increase there were the following directors' dealings in respect of AT&S senior managers and related parties for the purposes of section 48d Austrian Stock Exchange Act (BörseG):
| Notifying person | Legal peron, trust, partnership |
Purchase | Sale Basis |
Transaction date |
Price per share/right |
|
|---|---|---|---|---|---|---|
| Brigitte Androsch | 18,100 | Exercise of subscription rights |
19.09.2013 | EUR 6.50 | ||
| Heinz Moitzi | 1,114 | Exercise of subscription rights |
20.09.2013 | EUR 6.50 | ||
| Willi Dörflinger | Dörflinger Management & Beteiligungs GmbH |
2,307,692 | Exercise of subscription rights |
25.09.2013 | EUR 6.50 | |
| Gerhard Pichler | 7,650 | Exercise of subscription rights |
25.09.2013 | EUR 6.50 | ||
| Hannes Androsch | AIC Androsch International Management Consulting GmbH |
769,230 | Exercise of subscription rights |
25.09.2013 | EUR 6.50 | |
| Georg Riedl, Gerhard Pichler |
Dörflinger Private Foundation |
349,913 | Sale of subscrip tion rights to AT&S shares (ISIN: AT0000A120R2) |
26.09.2013 | EUR 0.0150 | |
| Hannes Androsch | 153,846 | Exercise of subscription rights |
27.09.2013 | EUR 6.50 | ||
| Georg Riedl | 6,192 | Exercise of subscription rights |
09.10.2013 | EUR 6.50 |
The relevant directors' dealings notifications can be viewed and downloaded in the FMA Directors' Dealings Database, at http://www.fma.gv.at/en/companies/issuers/directors-dealings/directorsdealings-database.html.
DIRECTORS' HOLDINGS The members of the Supervisory Board and the Management Board voluntarily undertook to publicly disclose the number of shares in AT & S Austria Technologie & Systemtechnik Aktiengesellschaft held by them. The holdings of individuals with close personal relationships with members of the Supervisory Board or Management Board are not disclosed.
| Shares | ||||
|---|---|---|---|---|
| As of 31 March 2013 |
Change | As of 31 December 2013 |
% capital | |
| Heinz Moitzi | 1,672 | 1,114 | 2,786 | 0.01% |
| Hannes Androsch | 445,853 | 153,846 | 599,699 | 1.54% |
| Androsch Private Foundation AIC Androsch International Management Consulting GmbH |
5,570,666 – |
– 769,230 |
5,570,666 769,230 |
14.34% 1.98% |
| Dörflinger Management & Beteiligungs GmbH | – | 2,307,692 | 2,307,692 | 5.94% |
| Dörflinger Private Foundation | 4,594,688 | – | 4,594,688 | 11.83% |
| Gerhard Pichler | 19,118 | 7,650 | 26,768 | 0.07% |
| Georg Riedl | 9,290 | 6,192 | 15,482 | 0.04% |
| Johann Fuchs | 4 | – | 4 | 0.00% |
| Total - all directors' holdings | 10,641,291 | 3,245,724 | 13,887,015 | 35.75% |
| Treasury shares * | 2,577,412 | (2,577,412) | – | – |
| Other shares in issue | 12,681,297 | 12,281,688 | 24,962,985 | 64.25% |
| Total | 25,900,000 | 12,950,000 | 38,850,000 | 100.00% |
* At the second stage of the capital increase, the 2,577,412 shares held by the Group were sold at a price of EUR 6.50 per share.
SHAREHOLDINGS Before the capital increase, Androsch Privatstiftung and Dörflinger Privatstiftung held 21.51% and 17.74% of AT&S stock respectively. After the successful conclusion of the transaction on 9 October 2013, Androsch Privatstiftung and Dörflinger Privatstiftung hold (directly and indirectly) 16.32% and 17.77% of AT&S stock respectively. The free float increased from 50.80% to 65.91%. The successful placing of the shares has strengthened the balance sheet, broadened the investor base and increased the liquidity of the stock.
QUARTERS Trading volumes were highly satisfactory over the past three months. Immediately after the capital increase, the daily average rose threefold compared with the same period a year earlier. Increased liquidity and additional interest in AT&S stock from institutional investors in Austria and abroad was reflected in increased demand over the past nine months.
The Group hosted a number of meetings with investors in Zurich, Frankfurt and Geneva during and after the capital increase. In addition, the Management Board also conducted more background discussions with analysts to keep them informed of the latest business developments and the progress made at the new plant in Chongqing.
| 31 December 2013 | 31 December 2012 | |
|---|---|---|
| Earnings per share | 1.08 | 0.24 |
| High | 8.40 | 9.60 |
| Low | 6.10 | 6.25 |
| Close | 7.15 | 8.06 |
| Vienna Stock Exchange | |
|---|---|
| Security ID number | 969985 |
| ISIN-Code | AT0000969985 |
| Symbol | ATS |
| Reuters RIC | ATSV.VI |
| Bloomberg | ATS AV |
| Indexes | ATX Prime, WBI SME |
| 8 May 2014 | Publication of annual results 2013/14 |
|---|---|
| 3 July 2014 | 20th Annual General Meeting |
| 24 July 2014 | Dividend payment date |
Tel.: +43 (0)3842 200-5909 E-mail: [email protected]
| 1 October - 31 December | 1 April - 31 December | |||
|---|---|---|---|---|
| (in EUR 1,000) | 2013 | 2012 1) | 2013 | 2012 1) |
| Revenue | 151,013 | 150,350 | 450,947 | 405,121 |
| Cost of sales | (117,861) | (123,719) | (357,335) | (347,820) |
| Gross profit | 33,152 | 26,631 | 93,612 | 57,301 |
| Distribution costs | (8,421) | (7,298) | (23,458) | (21,283) |
| General and administrative costs | (6,153) | (4,827) | (17,273) | (14,135) |
| Other operating result | (5,687) | (1,904) | (6,419) | (752) |
| Non-recurring items | – | – | (3,004) | – |
| Operating result | 12,891 | 12,602 | 43,458 | 21,131 |
| Finance income | 67 | 25 | 180 | 257 |
| Finance costs | (2,907) | (7,073) | (9,268) | (13,178) |
| Finance costs - net | (2,840) | (7,048) | (9,088) | (12,921) |
| Profit before tax | 10,051 | 5,554 | 34,370 | 8,210 |
| Income taxes | (1,571) | (2,027) | (3,933) | (2,621) |
| Profit for the period | 8,480 | 3,527 | 30,437 | 5,589 |
| thereof owners of the parent company | 8,464 | 3,524 | 30,404 | 5,589 |
| thereof non-controlling interests | 16 | 3 | 33 | – |
| Earnings per share attributable to equity holders of the parent company (in EUR per share): |
||||
| - basic | 0.22 | 0.15 | 1.08 | 0.24 |
| - diluted | 0.22 | 0.15 | 1.04 | 0.24 |
| Weighted average number of shares outstanding - basic (in thousands) |
37,660 | 23,323 | 28,193 | 23,323 |
| Weighted average number of shares outstanding - diluted (in thousands) |
38,850 | 23,351 | 29,251 | 23,351 |
| 1 October - 31 December | 1 April - 31 December | |||
|---|---|---|---|---|
| (in EUR 1,000) | 2013 | 2012 1) | 2013 | 2012 1) |
| Profit for the period | 8,480 | 3,527 | 30,437 | 5,589 |
| Components to be reclassified to income: | ||||
| Currency translation differences | (3,800) | (6,924) | (30,396) | 8,127 |
| Fair value (losses) of available-for-sale financial assets, net of tax | – | – | – | (20) |
| Fair value gains of cash flow hedges, net of tax | 23 | 28 | 78 | 32 |
| Other comprehensive income for the period | (3,777) | (6,896) | (30,317) | 8,139 |
| Total comprehensive income for the period | 4,703 | (3,369) | 119 | 13,728 |
| thereof owners of the parent company | 4,686 | (3,373) | 87 | 13,724 |
| thereof non-controlling interests | 16 | 4 | 32 | 4 |
| 31 December | 31 March | |
|---|---|---|
| (in EUR 1,000) | 2013 | 2013 1) |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 438,237 | 437,763 |
| Intangible assets | 8,912 | 1,952 |
| Financial assets | 96 | 96 |
| Deferred tax assets | 27,248 | 21,323 |
| Other non-current assets | 9,766 | 9,657 |
| 484,259 | 470,791 | |
| Current assets | ||
| Inventories | 67,564 | 62,417 |
| Trade and other receivables | 116,022 | 111,802 |
| Financial assets | 837 | 770 |
| Current income tax receivables | 665 | 657 |
| Cash and cash equivalents | 102,020 | 80,226 |
| 287,108 | 255,872 | |
| Total assets | 771,367 | 726,663 |
| EQUITY | ||
| Share capital | 141,846 | 45,914 |
| Other reserves | 12,035 | 42,351 |
| Retained earnings | 242,369 | 216,630 |
| Equity attributable to owners of the parent company | 396,250 | 304,895 |
| Non-controlling interests | (19) | (51) |
| Total equity | 396,231 | 304,844 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Financial liabilities | 169,683 | 168,665 |
| Provisions for employee benefits | 23,557 | 22,277 |
| Other provisions | 9,902 | 10,437 |
| Deferred tax liabilities | 9,088 | 6,386 |
| Other liabilities | 3,107 | 3,948 |
| 215,337 | 211,713 | |
| Current liabilities | ||
| Trade and other payables | 102,251 | 77,348 |
| Financial liabilities | 45,571 | 129,837 |
| Current income tax payables | 7,545 | 1,299 |
| Other provisions | 4,432 | 1,622 |
| 159,799 | 210,106 | |
| Total liabilities | 375,136 | 421,819 |
| Total equity and liabilities | 771,367 | 726,663 |
| 1 April - 31 December | ||||
|---|---|---|---|---|
| (in EUR 1,000) | 2012 1) | |||
| Cash flows from operating activities | ||||
| Profit for the period | 30,437 | 5,589 | ||
| Adjustments to reconcile profit for the period to cash generated from operating activities: | ||||
| Depreciation, amortisation and impairment of property, plant and equipment and intangible assets | 56,680 | 53,445 | ||
| Changes in non-current provisions | 840 | (250) | ||
| Income taxes | 3,933 | 2,621 | ||
| Finance costs | 9,088 | 12,921 | ||
| Losses from the sale of fixed assets | 25 | 548 | ||
| Release from government grants | (861) | (705) | ||
| Other non-cash expense/(income), net | 46 | (46) | ||
| Changes in working capital: | ||||
| - Inventories | (8,243) | (5,069) | ||
| - Trade and other receivables | (10,103) | (10,322) | ||
| - Trade and other payables | 13,016 | (14,080) | ||
| - Other provisions | 2,873 | (546) | ||
| Cash generated from operating activities | 97,731 | 44,106 | ||
| Interest paid | (12,710) | (12,175) | ||
| Interest and dividends received | 169 | 226 | ||
| Income taxes paid | (3,120) | (3,897) | ||
| Net cash generated from operating activities | 82,070 | 28,260 | ||
| Cash flows from investing activities | ||||
| Capital expenditure for property, plant and equipment and intangible assets | (70,164) | (36,196) | ||
| Proceeds from sale of property, plant and equipment and intangible assets | 447 | 3,352 | ||
| Proceeds from sale of available-for-sale financial assets | – | 35 | ||
| Purchases of financial assets | (176) | (292) | ||
| Proceeds from sale of financial assets | 27 | 151 | ||
| Net cash used in investing activities | (69,866) | (32,950) | ||
| Cash flows from financing activities | ||||
| Changes in other financial liabilities | (78,931) | 24,473 | ||
| Proceeds from government grants | 846 | 1,512 | ||
| Dividends paid | (4,665) | (7,463) | ||
| Proceeds of share issue | 79,179 | – | ||
| Sale of treasury shares | 16,753 | – | ||
| Net cash generated from financing activities | 13,182 | 18,522 | ||
| Net increase in cash and cash equivalents | 25,386 | 13,832 | ||
| Cash and cash equivalents at beginning of the year | 80,226 | 29,729 | ||
| Exchange gains/(losses) on cash and cash equivalents | (3,592) | 167 | ||
| Cash and cash equivalents at end of the period | 102,020 | 43,728 |
| (in EUR 1,000) | Share capital |
Other reserves |
Retained earnings |
Equity attributable to owners of the parent company |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|
| 31 March 2012 1) | 45,535 | 22,555 | 209,521 | 277,611 | (55) | 277,556 |
| Profit for the period | – | – | 5,589 | 5,589 | – | 5,589 |
| Other comprehensive income for the period | – | 8,135 | – | 8,135 | 4 | 8,139 |
| thereof currency translation differences | – | 8,123 | – | 8,123 | 4 | 8,127 |
| thereof change in available-for-sale financial assets, net of tax |
– | (20) | – | (20) | – | (20) |
| thereof change in hedging instruments for cash flow hedges, net of tax |
– | 32 | – | 32 | – | 32 |
| Total comprehensive income for the period | – | 8,135 | 5,589 | 13,724 | 4 | 13,728 |
| Dividend relating to 2011/12 | – | – | (7,463) | (7,463) | – | (7,463) |
| 31 December 2012 1) | 45,535 | 30,690 | 207,647 | 283,872 | (51) | 283,821 |
| 31 March 2013 1) | 45,914 | 42,351 | 216,630 | 304,895 | (51) | 304,844 |
| Profit for the period | – | – | 30,404 | 30,404 | 33 | 30,437 |
| Other comprehensive income for the period | – | (30,316) | – | (30,316) | (1) | (30,317) |
| thereof currency translation differences | – | (30,394) | – | (30,394) | (1) | (30,395) |
| thereof change in hedging instruments for cash flow hedges, net of tax |
– | 78 | – | 78 | – | 78 |
| Total comprehensive income for the period | – | (30,316) | 30,404 | 88 | 32 | 120 |
| Dividend relating to 2012/13 | – | – | (4,665) | (4,665) | – | (4,665) |
| Sale of treasury shares, net of tax | 16,753 | – | – | 16,753 | – | 16,753 |
| Proceeds of share issue | 79,179 | – | – | 79,179 | – | 79,179 |
| 31 December 2013 | 141,846 | 12,035 | 242,369 | 396,250 | (19) | 396,231 |
| Industrial & | Elimination/ | ||||
|---|---|---|---|---|---|
| (in EUR 1,000) | Mobile Devices | Automotive | Others | Consolidation | Group |
| Segment revenue | 294,086 | 201,745 | 5,517 | (50,401) | 450,947 |
| Intersegment revenue | (41,815) | (6,223) | (2,363) | 50,401 | – |
| Revenue from external customers | 252,271 | 195,522 | 3,154 | – | 450,947 |
| Operating result | 38,408 | 7,451 | (2,433) | 32 | 43,458 |
| Finance costs - net | (9,088) | ||||
| Profit before tax | 34,370 | ||||
| Income taxes | (3,933) | ||||
| Profit for the period | 30,437 | ||||
| Property, plant and equipment and | |||||
| intangible assets | 389,483 | 47,264 | 10,402 | – | 447,149 |
| Investments | 72,640 | 5,209 | 8,258 | – | 86,107 |
| Depreciation/amortisation | 49,476 | 6,211 | 993 | – | 56,680 |
| Non-recurring items | – | 3,004 | – | – | 3,004 |
| Industrial & | Elimination/ | ||||
|---|---|---|---|---|---|
| (in EUR 1,000) | Mobile Devices | Automotive | Others | Consolidation | Group |
| Segment revenue | 256,200 | 175,438 | 1,379 | (27,896) | 405,121 |
| Intersegment revenue | (27,016) | (790) | (90) | 27,896 | – |
| Revenue from external customers | 229,184 | 174,648 | 1,289 | – | 405,121 |
| Operating result | 16,734 | 5,930 | (1,679) | 146 | 21,131 |
| Finance costs - net | (12,921) | ||||
| Profit before tax | 8,210 | ||||
| Income taxes | (2,621) | ||||
| Profit for the period | 5,589 | ||||
| Property, plant and equipment and intangible assets 2) |
383,203 | 49,095 | 7,417 | – | 439,715 |
| Investments | 27,085 | 2,984 | 1,509 | – | 31,577 |
| Depreciation/amortisation | 45,805 | 5,979 | 1,661 | – | 53,445 |
| Non-recurring items | – | – | – | – | – |
1) Adjusted in application of IAS 19 revised
Revenue broken down by customer region, based on ship–toregion:
Property, plant and equipment and intangible assets broken down by domicile:
| 1 April - 31 December | ||||
|---|---|---|---|---|
| (in EUR 1,000) | 2013 | 2012 | ||
| Austria | 14,947 | 14,440 | ||
| Germany | 93,718 | 92,450 | ||
| Hungary | 9,872 | 15,624 | ||
| Other European countries | 42,947 | 35,954 | ||
| Asia | 234,763 | 202,034 | ||
| Canada, USA, Mexico | 50,412 | 39,547 | ||
| Other | 4,288 | 5,072 | ||
| 450,947 | 405,121 |
| 447,149 | 439,715 | |
|---|---|---|
| Others | 24,595 | 30,502 |
| China | 389,833 | 383,157 |
| Austria | 32,721 | 26,056 |
| (in EUR 1,000) | 2013 | 2013 |
| 31 December | 31 March | |
2) Value as of 31 March 2013
ACCOUNTING AND VALUATION POLICIES The interim report for the three quarters ended 31 December 2013 has been prepared in accordance with the standards (IFRS and IAS) of the International Accounting Standards Board (IASB), taking into acount IAS 34, and the interpretations (IFRIC and SIC) as adopted by the European Union.
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 2013.
In June 2011 the International Accounting Standards Board (IASB) published amendments to IAS 19 Employee Benefits (IAS 19 revised). The revised IAS 19 replaces the expected return on plan assets and the interest cost on pension obligations with the net interest expense or income. Actuarial gains and losses, effects of the limit on net asset value (asset ceiling), and in part also the actual income from plan assets are to be recognised as remeasurements in the period in which they arise, as part of other comprehensive income (OCI) under equity. The corridor method and the immediate recognition of actuarial gains and losses through profit or loss are no longer permissible. The revised IAS 19 prescribes retroactive application and requires disclosure of the effects of first-time application on the opening balance sheet. These changes were applied in the current interim financial statements, as they were in the interim statements as at 30 June 2013 and 30 September 2013. The comparative figures have accordingly been restated. The equity ratio as at 31 March 2013 was reduced from 43% to 42%.
The consolidated interim statements for the nine months ended 31 December 2013 are unaudited and have not been the subject of external audit review.
REVENUE Sales in the first three quarters of the financial year 2013/14 amounted to EUR 450.9 million (m), 11% more than in the same period last year.
This positive development reflected improved sales in all business segments. Thanks to continuing strong demand for smartphones, sales in Mobile Devices jumped by 10%. Industrial & Automotive sales were markedly up, by 12%, on the same period last year. Automotive and Medical & Healthcare both generated growth, while Industrial also reported an increase in sales in spite of the overall economic situation.
Broken down by customer location, sales rose across the value chain in all geographic regions. Asian customers continued to account for the lion's share of revenue, accounting for EUR 234.8m or 52% of the total. The largest increase, of 27%, was attributable to our American customers.
The distribution of production volumes – 76% in Asia and 24% in Europe – reflected a slight shift in favour of the former compared with the same period a year earlier (75% in Asia and 25% in Europe).
GROSS PROFIT At EUR 93.6m, gross profit for the first three quarters was up significantly on the EUR 57.3m recorded in the same period of the financial year 2012/13. This highly satisfactory outcome is attributable both to good capacity utilisation at all of the Group's plants and to the unrelenting pursuit of increased efficiency.
Broken down by segment, Mobile Devices saw its gross profit margin advance from 14% to 22%, while that of Industrial & Automotive edged up from 14% to 15%.
OPERATING RESULT On the basis of the very satisfactory gross profit, the consolidated operating result of EUR 43.5m or 9.6% was also highly satisfactory. Management's decision to close the Klagenfurt plant because of its continuing losses meant that a provision of EUR 3.0m in expenses for the first quarter of the current financial year was recognised under non-recurring items. In November 2013 Panasonic announced its decision to discontinue production of ALIVH technology. As there is no reason to believe that there will be any future demand for the ALIVH prototype production line in Shanghai due to an absence of future orders, valuation adjustments have been made for the equipment used exclusively for this technology. These adjustments had a negative effect on other operating income of EUR 4.8m. An impairment of EUR 0.4m relating to a licence for this technology was recognised.
From the segment perspective, as a result of the improvement in gross profit Mobile Devices reported a highly gratifying jump in operating result to EUR 38.4m, compared with EUR 16.7m in the first nine months of the previous financial year. In spite of the costs incurred in the closure of the Klagenfurt plant, Industrial & Automotive saw its operating result increase from EUR 5.9 m to EUR 7.5m.
FINANCE COSTS - NET The changed financing structure and lower interest rates meant that interest expense fell by some EUR 2.5m to EUR 8.0m. Currency fluctuations were responsible for expenses of some EUR 0.7m. Net finance costs stood at EUR -9.1m, EUR 3.8m lower than in the same period last year.
INCOME TAXES The change – as compared with the same period last year – in the effective rate of tax on a consolidated basis is principally a consequence of the varying proportions of Group earnings contributed by individual companies with different tax rates and subject to different tax regulations.
Taxes on income are also significantly affected by the measurement of deferred taxation: for a large part of the tax loss carryforwards arising, no deferred tax assets have been recognised, since the likelihood of their being realisable in the foreseeable future is low.
CURRENCY TRANSLATION DIFFERENCES The EUR -30.4m decrease in the foreign currency translation reserve in the current financial year was the result of the changes in exchange rates of the Group's functional currencies - the Chinese renminbi, Hong Kong dollar, US dollar and Indian rupee - against the Group reporting currency, the euro, as well as the revaluation of long-term US dollar and euro loans extended by the parent company to its subsidiaries in Asia.
ASSETS AND FINANCES Net debt of EUR 112.3m was significantly less than the EUR 217.4m outstanding at 31 March 2013. Net current assets fell from EUR 102.7m as at 31 March 2013 to EUR 99.6m. The net gearing ratio of 28% at the end of the quarter was considerably lower than the 71% recorded at the end of the most recent financial year.
valuing financial instruments at fair value, it is necessary to distinguish between three levels.
The financial instruments valued at fair value at the end of the reporting period at the three valuation levels were as follows:
| (in EUR 1,000) 31 December 2013 |
Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets Financial assets at fair value through profit or loss: |
||||
| - Bonds | 837 | – | – | 837 |
| Available-for-sale financial | ||||
| assets | 96 | – | – | 96 |
| Financial liabilities Derivative financial instru ments |
– | 14 | – | 14 |
| (in EUR 1,000) 31 March 2013 |
Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets Financial assets at fair value through profit or loss: |
||||
| - Bonds | 770 | – | – | 770 |
| Available-for-sale financial assets |
96 | – | – | 96 |
| Financial liabilities Derivative financial instru ments |
– | 118 | – | 118 |
Bonds, export loans, government loans and other bank borrowings amounting to EUR 215.3 Mio. (31 March 2013: EUR 298.5 Mio.) are measured at amortised cost. The fair value of these liabilities was EUR 222.5m (31 March 2013: EUR 323.1m).
OTHER FINANCIAL COMMITMENTS At 31 December 2013 the Group had other financial liabilities amounting to EUR 53.1m, in connection with contractually binding investment commitments, the majority of which were related to the expansion of the new plant in Chongqing. As at 30 September 2013 other financial liabilities stood at EUR 56.6m.
SHARE CAPITAL On 17 September 2013 the Supervisory Board of AT&S AG made a policy decision and passed a resolution to carry out a capital increase by issuing up to 12,950,000 new shares, and also to sell 2,577,412 shares held by AT&S AG.
As a first step, the Project Committee of the Supervisory Board made an implementing decision authorising a resolution to allot 3,367,471 new shares representing subscription rights waived by the two principal shareholders to institutional investors in an accelerated bookbuilding process. An issue price for all new shares was set at EUR 6.50 during the course of this preplacement. The issue was registered in the Register of Companies on 20 September 2013. After deduction of transaction costs, this increased the subscribed capital from EUR 45.9m to EUR 66.7m.
On the basis of a second implementing decision of the Project Committee of the Supervisory Board on 4 October 2013, a further 9,582,529 new shares were issued at a price of EUR 6.50 per share. The gross proceeds of the issue were EUR 62.3m. Adjusted for transaction costs relating to the second tranche of the capital increase and taking the disposal of treasury stock into account (see the section on 'Treasury shares' below for details), the subscribed capital now amounts to EUR 141.8m.
Consolidated equity increased from EUR 304.8m at 31 March 2013 to EUR 396.2m. This change reflects the consolidated profit of EUR 30.4m, foreign exchange losses of EUR -30.4m, the dividend payment of EUR -4.7m, the capital increase of EUR 79.2m as well as the effects of the disposal of treasury stock worth EUR 16.8m.
TREASURY SHARES In the 19th Annual General Meeting of 4 July 2013 the Management Board was again authorised for a period of 30 months from the date of the resolution to acquire and retire 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 3 July 2018) and subject to the approval of the Supervisory Board – to dispose of treasury shares otherwise than through the stock exchange or by means of public offerings, 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 three quarters of this financial year.
At the second stage of the capital increase, the 2,577,412 shares held by the Group were sold at a price of EUR 6.50 per share. As at 31 December 2013 the Group no longer held any treasury stock.
NOTES TO THE STATEMENT OF CASH FLOWS Net cash generated by operating activities in the first three quarters of the financial year amounted to EUR 82.1m, compared with EUR 28.3m in the same period last year. This considerable increase was mainly due to the EUR 24,8m rise in consolidated profit for the period and an EUR 27,1m rise in liabilities.
Net cash used in investing activities amounted to EUR -69.9m. The investments in the current financial year primarily relate to the new production facility in Chongqing.
Cash flows from financing activities came to EUR 13.2m, of which EUR 79.2m related to the capital increase and EUR 16.8m to the disposal of treasury shares. These inflows were offset by outflows of EUR 78.9m relating to repayment of financial liabilities.
DIVIDENDS In the current financial year, the Annual General Meeting of 4 July 2013 resolved on a dividend payment of EUR 0.20 per share out of retained earnings as at 31 March 2013. The dividend distribution of EUR 4.7m took place on 25 July 2013.
RELATED PARTY TRANSACTIONS In the first three quarters of the financial year 2013/14 fees amounting to EUR 296,000 were payable to AIC Androsch International Management Consulting Ges.m.b.H. in connection with various projects, fees of EUR 4,000 were payable to Dörflinger Management & Beteiligungs GmbH and fees of EUR 6,000 to legal firm Riedl & Ringhofer. As at 31 December 2013 the Group had obligations of EUR 29,000 to AIC Androsch International Management Consulting GmbH.
Leoben-Hinterberg, 23 January 2014
Management Board
Andreas Gerstenmayer m.p. Heinz Moitzi m.p.
FORMANCE In contrast to the normal seasonal patterns of previous years, demand was stable throughout the first three quarters of the current financial year, with strong overall capacity utilisation.
There were significant increases in sales for the first three quarters in all segments compared with the same period last year, with Mobile Devices reporting a 10% increase and Industrial & Automotive posting gains of 12%.
In terms of customer regions, sales increased in America, and in Asia and Europe. The proportion of printed circuit board sales produced in Asia – 76% – was more or less unchanged from last year.
In the first three quarters of the current financial year all AT&S plants reported solid capacity utilisation. As a result, gross profit for the first nine months of the financial year was up by about 63% on the same period a year earlier.
In the light of the continuing loss-making situation in the Klagenfurt plant, in May 2013 the Management Board decided to close it. Although a provision of EUR 3.0m was charged to expense, EBIT amounted to EUR 43.5m and the EBIT margin was 9.6%.
In November 2013 Panasonic announced its decision to discontinue production of ALIVH technology. Consequently we see no option for the continued development of this line of business, and the value of the specialist equipment needed for the prototype line was adjusted accordingly. In future, this line of business will no longer have a negative impact on earnings.
Karl Asamer was appointed to the Management Board in December 2013 for a period of three years. He will officially take up his position as CFO of AT&S AG on 1 April 2014.
MATERIAL EVENTS AFTER THE RE-PORTING PERIOD There were no material events after the end of the reporting period.
SIGNIFICANT RISKS, UNCERTAINTIES AND OPPORTUNITIES There were no material differences in the categories of risk exposure in the course of the first three quarters of financial year 2013/14 compared with those described in detail in the notes to the 2012/13 consolidated financial statements under II. Risk Report.
AT&S's liquidity is excellent. The issue of a five-year EUR 100m bond in November 2011 and the provision of a longterm loan by Oesterreichische Kontrollbank in April 2012 mean that ample long-term funds are available. Following the successful conclusion of the capital-raising measures, the disposal of treasury shares and the positive cash flow position – despite repayment of money market financing of EUR 80m – the Group currently has cash and cash equivalents of about EUR 100m which will primarily be used to finance equipment in Chongqing. Sufficient short-term credit facilities are also available to cover working capital requirements. As regards planned investments in Chongqing and the necessary liquidity for the upcoming investment phase, we are currently engaged in bank negotiations to secure the necessary long-term financing.
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. Changes in the exchange rates of functional currencies against the reporting currency, the euro, are mainly recognised directly in equity without affecting profit and loss.
Net gearing reached an all-time low of 28% as at 31 December 2013. Unfavourable exchange rate differences caused by the rise of the euro against the Chinese renminbi, the Hong Kong dollar, the US dollar and the Indian rupee led to a reduction of equity.
At the start of the current financial year, AT&S considerably exceeded its external growth expectations. With respect to the opportunities and risks related to developments in the external environment in early 2014, we anticipate slightly weaker demand owing to seasonal factors.
OUTLOOK Taking seasonal patterns into account, we are forecasting moderate revenue growth of 5% and an EBITDA margin of 18-20% for the financial year 2013/14.
Leoben-Hinterberg, 23 January 2014
Management Board
Andreas Gerstenmayer m.p. Heinz Moitzi m.p.
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria Tel: +43 (0)3842 200-0 Fax: +43 (0)3842 200-216 www.ats.net
Werbeagentur DMP Digital Motion Picture Datenverarbeitungs GmbH www.agentur-dmp.at
www.shutterstock.com
Martin Theyer Tel.: +43 (0)3842 200-5909 E-mail: [email protected]
Michael Dunst Stefan Greimel Christina Schuller Monika Stoisser-Göhring Martin Theyer
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria www.ats.net
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