AT&S Austria Technologie & Systemtechnik AG

Quarterly Report • Nov 4, 2021

HIGHLIGHTS H1 2021/22

First half of 2021/22 – AT&S continues strong growth course

• Half-year revenue increases by 30% to € 698 million (PY: € 538 million)
• Adjusted EBITDA at € 140 million, up 23% on the previous year
• Guidance for financial year 2021/22 increased: revenue growth of 21-23% (previously: 17-19%), adjusted EBITDA margin expected in the range of 21-23%
• Even more favourable impact of positive market environment and major projects in China and Malaysia on medium-term guidance

KEY FIGURES

	Unit	H1 2020/21	H1 2021/22	Change in %
Revenue	€ in millions	537.8	697.6	29.7%
EBITDA	€ in millions	111.2	130.9	17.7%
EBITDA adjusted1)	€ in millions	113.7	140.3	23.3%
EBITDA margin	%	20.7%	18.8%	–
EBITDA margin adjusted1)	%	21.2%	20.1%	–
EBIT	€ in millions	32.8	30.5	(7.0%)
EBIT adjusted1)	€ in millions	35.5	46.5	31.0%
EBIT margin	%	6.1%	4.4%	–
EBIT margin adjusted1)	%	6.6%	6.7%	–
Loss for the period2)	€ in millions	14.1	18.3	30.1%
ROCE2)	%	5.3%	3.5%	–
Net CAPEX	€ in millions	195.7	306.9	56.9%
Operating free cash flow	€ in millions	(112.1)	(228.9)	–
Earnings per share2)	€	0.25	0.36	42.8%
Employees3)	–	10,855	12,590	16.0%

1) Adjustment start-up costs

2) Q2 2020/21: Adjustment Hedge Accounting (see Note "Other information")

3) Incl. contract staff, average

CORPORATE GOVERNANCE INFORMATION

27TH AT&S ANNUAL GENERAL MEETING

The 27th Annual general Meeting of AT & S Austria Technologie und Systemtechnik Aktiengesellschaft (AT&S), which was held virtually, adopted a dividend of € 0.39 per share for the financial year 2020/21.

Deloitte Audit Wirtschaftsprüfungs GmbH was appointed the statutory auditor for the annual financial statements and consolidated financial statement for the financial year 2021/22.

In addition to the acquisition of treasury shares and any related withdrawal of shares, the Supervisory Board was authorised by the Annual General Meeting to make amendments to the Articles of Association which result from the withdrawal of shares, and the related resolution of the Annual General Meeting of 4 July 2019 was revoked.

All other agenda items presented for resolution were also adopted by the shareholders represented at the Annual General Meeting.

CHANGES IN THE MANAGEMENT BOARD

Peter Schneider was appointed CSO of AT&S as of 1 June 2021.

CFO Simone Faath stepped down from the AT&S Management Board at the end of 25 October 2021.

DIRECTORS' DEALINGS

Purchases and sales carried out by members of the Management Board, Supervisory Board and related persons are reported to the Financial Market Authority (FMA) in accordance with Art. 19 of Regulation (EU) No. 596/2014 and published via an EU-wide system as well as on the AT&S website.

GROUP INTERIM MANAGEMENT REPORT

BUSINESS DEVELOPMENTS AND SITUATION

AT&S significantly increased both revenue and EBITDA in the first half of the financial year in comparison with the previous year. Digitalisation continues to drive the demand for AT&S technology. Strategically, AT&S is still fully on track. In particular, the production of IC substrates is running at full speed. The implementation of the capacity expansion in Chongqing is making very good progress and the first components of the production equipment have already been qualified and commissioned.

Revenue amounted to € 697.6 million, and exceeded the € 537.8 million recorded in the comparative period of the previous year (deviation € 159.8 million or 29.7%). Adjusted for currency effects, consolidated revenue even increased by 34.8%. Additional capacity and the growing demand for ABF substrates made a significant contribution to revenue growth. The development was also supported by the broader customer and application portfolio in the Mobile Devices segment and by the demand for module printed circuit boards. In the AIM business unit, all three segments contributed to revenue growth. While the Automotive segment recorded a strong increase in revenue after a weak first half in the previous year, the shortage of semiconductors will continue.

Exchange rate effects, especially due to the weaker US dollar, had a negative impact of € 27.5 million or -3.9% on the development of revenue.

The share of revenue from products made in Asia rose from 87.1% to 87.8% in the current financial year.

EBITDA rose from € 111.2 million by € 19.7 million or 17.7% to € 130.9 million. While the increase in revenue had a positive impact on earnings, other operating income, at € -3.7 million, was € 5.6 million below the prior-year figure of € 1.9 million, which was primarily due to start-up losses in Chongqing. EBITDA adjusted for start-up losses rose by 23.3% from € 113.7 million to € 140.3 million. In addition, substantial investments in the future for the strategic business expansion led to higher expenses.

In preparation for future technology generations and to pursue the modularisation strategy, AT&S also intensified investments in research & development. These expenditures make the company future-proof and significantly expand the earnings potential in the medium term.

The EBITDA margin amounted to 18.8% in the first six months and was therefore below the prior-year level of 20.7%. Adjusted

€ in millions (unless otherwise stated)
			Change
	H1 2021/22	H1 2020/21	in %
Revenue	697.6	537.8	29.7%
Operating result before interest, tax, depreciation and amortisation (EBITDA)	130.9	111.2	17.7%
EBITDA adjusted1)	140.3	113.7	23.3%
EBITDA margin (%)	18.8%	20.7%
EBITDA margin adjusted (%)1)	20.1%	21.2%
Operating result (EBIT)	30.5	32.8	(7.0%)
EBIT adjusted1)	46.5	35.5	31.0%
EBIT margin (%)	4.4%	6.1%
EBIT margin adjusted (%)1)	6.7%	6.6%
Profit for the period2)	18.3	14.1	30.1%
2) Earnings per share (€)	0.36	0.25	44.0%
Additions to property, plant and equipment and intangible assets	321.2	233.1	37.8%
Average number of staff (incl. leased personnel)	12,590	10,855	16.0%

1) Adjustment start-up costs

Result key data

2) Previous year: Adjustment Hedge Accounting (see Note "Other information")

for start-up losses, the EBITDA margin was 20.1% (previous year: 21.2%).

Depreciation and amortisation rose by € 22.0 million or 28.1% to € 100.4 million, which was primarily attributable to additions to assets and technology upgrades.

EBIT decreased by € 2.3 million from € 32.8 million to € 30.5 million. The EBIT margin was 4.4% (previous year: 6.1%).

Finance costs – net increased from € -13.8 million to € -7.8 million. This was mainly caused by lower negative currency effects of € 0.2 million (previous year: negative effects of € 6.0 million) and a positive hedging result of € 0.1 million (previous year: € -1.5 million), which were partially compensated by a lower interest result (change € -1.5 million). Gross interest expenses of € 8.5 million were € 1.6 million higher than the prior-year figure of € 6.9 million due to the higher financing volume. Interest income amounted to € 1.1 million, down € 0.9 million on the prior-year level of € 2.0 million. This decrease largely resulted from a lower investment volume.

Income tax expenses amounted to € 4.4 million in the first six months (previous year: € 4.9 million). The change in the effective tax rate (based on net profit for the period) resulted from the changed composition of earnings (different shares in

Mobile Devices & Substrates segment – overview

earnings of the individual companies in countries with different tax rates).

Despite a lower operating result, profit for the period increased by € 4.2 million, from € 14.1 million to € 18.3 million primarily due to improved finance costs – net. As a result, earnings per share rose from € 0.25 to € 0.36 . Interest on hybrid capital of € 4.2 million (previous year: € 4.2 million) was deducted in the calculation of earnings per share.

BUSINESS DEVELOPMENT BY SEGMENTS

The AT&S Group breaks its operating activities down into three segments: Mobile Devices & Substrates, Automotive, Industrial, Medical, and Others. For further information on the segments and segment reporting please refer to the Annual Report 2020/21.

The share of the Mobile Devices & Substrates segment in total external revenue declined from 75.4% to 72.7%. The share of the Automotive, Industrial, Medical segment increased to 27.3% (previous year: 24.6%).

Mobile Devices & Substrates segment

The segment's revenue increased by € 124.0 million or 27.9%, from € 444.4 million to € 568.4 million. The successful start-up of the expanded capacity in Chongqing, which serves the increasing demand for ABF substrates, made a significant

€ in millions (unless otherwise stated)
			Change
	H1 2021/22	H1 2020/21	in %
Segment revenue	568.4	444.4	27.9%
Revenue from external customers	507.0	405.6	25.0%
Operating result before interest, tax, depreciation and amortisation (EBITDA)	108.1	101.2	6.8%
EBITDA adjusted1)	117.4	102.5	14.5%
EBITDA margin (%)	19.0%	22.8%
EBITDA margin adjusted (%)1)	20.6%	23.1%
Operating result (EBIT)	23.6	37.1	(36.2%)
EBIT adjusted1)	39.5	38.4	2.9%
EBIT margin (%)	4.2%	8.3%
EBIT margin adjusted (%)1)	7.0%	8.6%
Additions to property, plant and equipment and intangible assets	289.0	209.5	37.9%
Employees (incl. leased personnel), average	9,334	7,827	19.3%

1) Adjustment start-up costs

contribution to revenue growth. The broader customer and application portfolio for mobile devices and the demand for module printed circuit boards also had a positive effect.

EBITDA improved by € 6.9 million or 6.8% from € 101.2 million to € 108.1 million as a result of higher sales volume and a more favourable product mix.

Overall, this resulted in an EBITDA margin of 19.0%, which fell short of the prior-year value of 22.8%.

The segment's depreciation and amortisation rose by € 20.3 million or 31.7% from € 64.1 million to € 84.4 million due to an increase in property, plant and equipment (change since 30 September 2020: € 492.0 million) resulting from investments in the future and technology upgrades.

EBIT amounted to € 23.6 million, down € 13.5 million on the prior-year value of € 37.1 million. The EBIT margin was 4.2% (previous year: 8.3%).

Automotive, Industrial, Medical segment

The segment's revenue, at € 213.1 million, was 39.5% higher than in the previous year (€ 152.7 million). All segments generated higher revenue in the first six months than in the comparative period, with the Industrial segment reporting the sharpest increase. While in the Automotive segment sales volume, and consequently revenue, was significantly higher

Automotive, Industrial, Medical segment – overview € in millions (unless otherwise stated)

			Change
	H1 2021/22	H1 2020/21	in %
Segment revenue	213.1	152.7	39.5%
Revenue from external customers	190.5	132.1	44.2%
Operating result before interest, tax, depreciation and amortisation (EBITDA)	23.8	9.4	>100%
EBITDA adjusted1)	23.9	10.7	>100%
EBITDA margin (%)	11.2%	6.1%
EBITDA margin adjusted (%)1)	11.2%	7.0%
Operating result (EBIT)	10.1	(3.2)	>100%
EBIT adjusted1)	10.2	(1.9)	>100%
EBIT margin (%)	4.8%	(2.1%)
EBIT margin adjusted (%)1)	4.8%	(1.2%)
Additions to property, plant and equipment and intangible assets	27.9	20.6	35.7%
Employees (incl. leased personnel), average	2,956	2,792	5.9%

1) Adjustment start-up costs

than in the previous year, revenue in the Medical & Healthcare segment exceeded the prior-year level primarily because of a more favourable product mix.

The segment's EBITDA, at € 23.8 million, exceeded the prioryear level of € 9.4 million by € 14.4 million, which was primarily attributable to substantially higher revenue.

Due to these effects, the EBITDA margin increased by 5.1 percentage points from 6.1% to 11.2%.

Depreciation and amortisation of the segment rose by € 1.1 million or 8.8% from € 12.6 million to € 13.7 million.

EBIT increased by € 13.3 million from € -3.2 million to € 10.1 million.

Others segment

The Others segment is primarily characterised by holding activities. The earnings of activities included in the Others segment were lower than in the previous year.

FINANCIAL POSITION

Total assets increased by € 249.6 million or 10.4% from € 2,390.0 million to € 2,639.6 million in the first six months. Additions to assets and technology upgrades amounting to € 321.2 million (additions to assets led to cash CAPEX of € 307.0 million) were offset by depreciation and amortisation totalling € 100.4 million. In addition, exchange rate effects increased fixed assets by € 35.7 million. Property plant and equipment reported in the consolidated statement of financial position as of 30 September 2021 also included right-of-use assets according to IFRS 16 of € 85.8 million. Correspondingly, financial liabilities include lease liabilities of € 82.7 million. Inventories increased from € 152.5 million to € 192.1 million.

Cash and cash equivalents amounted to € 437.4 million (31 March 2021: € 552.9 million). In addition to cash and cash equivalents, AT&S has financial assets of € 16.4 million and unused credit lines of € 318.0 million at its disposal.

Equity increased by € 69.5 million or 8.7% from € 802.0 million to € 871.5 million. The profit for the period of € 18.3 million and positive currency effects of € 44.0 million, which resulted from the translation of net asset positions of subsidiaries, were offset by the dividend payout of € 15.2 million. In addition, the remeasurement of post-employment obligations (€ -0.9 million) and changes in hedging instruments for cash flow hedges (€ -1.5 million) had a negative impact on equity. Hybrid capital increased by € 24.6 million. Despite the increase in equity, the equity ratio, at 33.0%, was 0.6 percentage points lower than at 31 March 2021 due to the significant increase in total assets (increase by € 249.6 million).

Net debt increased by € 278.5 million or 54.8% from € 508.5 million to € 787.0 million.

Cash flow from operating activities amounted to € 78.0 million in the first six months of the financial year 2021/22 (previous year: € 83.6 million). Cash inflows were offset by cash outflows for net investments of € 306.9 million (previous year: € 195.7 million), resulting in negative free cash flow from operations of € -228.9 million (previous year: € -112.1 million).

The net gearing ratio rose from 63.4% to 90.3%. This increase results from the above-mentioned change in equity and the substantial increase in net debt.

SIGNIFICANT EVENTS AFTER THE INTERIM REPORTING PERIOD

On 15 October 2021 AT&S announced investments in a new R&D center for substrate and packaging solutions for the global semiconductor industry at its location in Leoben-Hinterberg. In addition, another technology upgrade of production facilities will be implemented. Overall, investments of € 500 million are planned up to 2025. The investment total includes previously

Others segment – overview
€ in millions (unless otherwise stated)

	H1 2021/22	H1 2020/21	Change in %
Segment revenue	–	–	n.a.
Revenue from external customers	–	–	n.a.
Operating result before interest, tax, depreciation and amortisation (EBITDA)	(1.0)	0.6	(>100%)
EBITDA margin (%)	–	–
Operating result (EBIT)	(3.2)	(1.1)	(>100%)
EBIT margin (%)	–	–
Additions to property, plant and equipment and intangible assets	4.2	3.0	39.8%
Employees (incl. leased personnel), average	300	236	27.0%

communicated investments in a technology upgrade and the new AT&S office building.

Mrs. Simone Faath stepped down from the Management Board with effect from the end of 25 October 2021.

SIGNIFICANT RISKS, UNCERTAINTIES AND OPPORTUNITIES

In the Group Management Report of the consolidated financial statements 2020/21 the relevant risk categories are explained in detail under section 5 "Risk and opportunities management", which still apply at the reporting date. As described in this chapter, incorrect assessments of technological developments, changes in demand and negative price developments can have severe adverse effects on the intrinsic value of investments. Risks in conjunction with the Covid-19 pandemic are explained in detail for each risk category.

OUTLOOK

AT&S will concentrate on the start-up of the new production capacities at plant III in Chongqing, continue to push ahead the investment project in Kulim, Malaysia, and implement technology upgrades at other locations in the current year.

The expectations for AT&S's segments are currently as follows: the persisting strong demand for IC substrates also offers significant growth opportunities in the medium term. The 5G mobile communication standard will continue to drive growth in the area of Mobile Devices. A positive development is expected in the Automotive segment despite the semiconductor shortage. Driven by the roll-out of the 5G infrastructure, the Industrial segment will continue to see a positive development in the coming year. In the Medical segment, AT&S expects a positive development for the current financial year.

Investment

The company still plans to invest up to € 700 million in new capacities and technologies in the current financial year.

Guidance for the financial year 2021/22

Due to the good development in the first half of the financial year and the continued strong dynamics of the IC substrate market, AT&S has slightly raised the forecast for the development of revenue and now expects revenue growth of 21 to 23% (previously: 17 to 19%). The adjusted EBITDA margin is expected to range between 21 and 23%, not including approximately € 50 million for the start-up of the new production capacity in Chongqing and in Kulim. The outlook is based on the assumption of a euro/US dollar exchange rate of 1.20 and that there are no unexpected effects of supply shortages, material cost and energy price fluctuations.

Outlook 2025/26

The expansion of production capacity in Chongqing, China, and in Kulim, Malaysia, is progressing more rapidly than previously anticipated despite the challenging global economic and health situation. Therefore, AT&S now assumes that revenue of € 3.5 billion will be generated in the financial year 2025/26 (previously: € 3 billion). The EBITDA margin is still expected to range between 27 and 32%.

Leoben-Hinterberg, 4 November 2021

The Management Board

Andreas Gerstenmayer m.p. Peter Schneider m.p. Ingolf Schröder m.p.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

€ in thousands	1 Jul - 30 Sep 2021	1 Jul - 30 Sep 2020	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
Revenue	379,897	289,896	697,580	537,758
Cost of sales	(328,084)	(241,815)	(612,775)	(469,285)
Gross profit	51,813	48,081	84,805	68,473
Distribution costs	(10,725)	(8,235)	(20,919)	(16,436)
General and administrative costs	(13,917)	(10,300)	(29,658)	(21,127)
Other operating income	13,791	8,795	13,979	10,441
Other operating costs	(10,046)	(5,748)	(17,676)	(8,515)
Other operating result	3,745	3,047	(3,697)	1,926
Operating result	30,916	32,593	30,531	32,836
Finance income	1,231	996	2,642	1,958
Finance costs	(5,927)	(8,949)	(10,486)	(15,774)
Finance costs – net1)	(4,696)	(7,953)	(7,844)	(13,816)
Profit before tax1)	26,220	24,640	22,687	19,020
Income taxes1)	(2,629)	(2,642)	(4,378)	(4,948)
Profit for the period1)	23,591	21,998	18,309	14,072
Attributable to owners of hybrid capital	2,096	2,096	4,168	4,168
Attributable to owners of the parent company1)	21,495	19,902	14,141	9,904
Earnings per share attributable to equity holders of the parent company (in € per share):1)
– basic	0.55	0.51	0.36	0.25
– diluted	0.55	0.51	0.36	0.25
Weighted average number of shares outstanding – basic (in thousands)	38,850	38,850	38,850	38,850
Weighted average number of shares outstanding – diluted (in thousands)	38,850	38,850	38,850	38,850

1) Previous year: Adjustment Hedge Accounting (see Note "Other information")

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ in thousands	1 Jul - 30 Sep 2021	1 Jul - 30 Sep 2020	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
Profit for the period1)	23,591	21,998	18,309	14,072
Items to be reclassified:
Currency translation differences, net of tax	40,289	(5,287)	44,045	(31,205)
(Losses) from the fair value measurement of financial assets, net of tax	–	(56)	–	(56)
(Losses) from the fair value measurement of hedging instruments for cash flow hedges, net of tax 1)	402	–	(1,463)	–
Items not to be reclassified:	-852	-2949	-852	-2949
Remeasurement of post-employment obligations, net of tax	(852)	(2,949)	(852)	(2,949)
Other comprehensive income for the period1)	39,839	(8,292)	41,730	(34,210)
Total comprehensive income for the period1)	63,430	13,706	60,039	(20,138)
Attributable to owners of hybrid capital	2,096	2,096	4,168	4,168
Attributable to owners of the parent company1)	61,334	11,610	55,871	(24,306)

1) Previous year: Adjustment Hedge Accounting (see Note "Other information")

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS Property, plant and equipment 1,560,417 1,301,400 Intangible assets 39,343 42,813 Financial assets 117 117 Deferred tax assets 28,811 25,113 Other non-current assets 9,216 Non-current assets 1,637,904 Inventories 192,096 Trade and other receivables and contract assets 354,735 Financial assets 16,445 Current income tax receivables 972 Cash and cash equivalents 437,411 Current assets 1,001,659 Total assets 2,639,563 EQUITY Share capital 141,846 Other reserves 68,809 Hybrid capital 197,505 Retained earnings 463,358 Equity attributable to owners of the parent company 871,518 Total equity 871,518 LIABILITIES Financial liabilities 1,189,563 1,017,143 Provisions for employee benefits 54,559 53,331 Contract liabilities 34,569 – Deferred tax liabilities 1,876 1,935 Other liabilities 43,597 41,039 Non-current liabilities 1,324,164 1,113,448 Trade and other payables 380,824 382,584 Financial liabilities 51,378 84,101 Current income tax payables 7,848 3,411 Other provisions 3,831 4,405 Current liabilities 443,881 474,501 Total liabilities 1,768,045 Total equity and liabilities 2,639,563	€ in thousands	30 Sep 2021	31 Mar 2021
			7,948
			1,377,391
			152,528
			265,293
			39,746
			2,154
			552,850
			1,012,571
			2,389,962
			141,846
			27,079
			172,887
			460,201
			802,013
			802,013
			1,587,949
			2,389,962

CONSOLIDATED STATEMENT OF CASH FLOWS

€ in thousands	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
Operating result	30,531	32,836
Depreciation, amortisation and impairment of property, plant and equipment and intangible assets	100,358	78,326
Gains/losses from the sale of fixed assets	227	100
Changes in non-current provisions	1,246	5,388
Changes in non-current contract liabilities	34,569	–
Non-cash expense/(income), net	5,728	1,599
Interest paid	(8,652)	(6,173)
Interest received	1,077	1,957
Income taxes paid	(2,053)	(4,599)
Cash flow from operating activities before changes in working capital	163,031	109,434
Inventories	(35,474)	(35,515)
Trade and other receivables and contract assets	(85,759)	(37,360)
Trade and other payables	36,738	47,106
Other provisions	(575)	(83)
Cash flow from operating activities	77,961	83,582
Capital expenditure for property, plant and equipment and intangible assets	(306,953)	(195,853)
Proceeds from the sale of property, plant and equipment and intangible assets	45	200
Capital expenditure for financial assets	(15,023)	(82,470)
Proceeds from the sale of financial assets	38,612	39,914
Cash flow from investing activities	(283,319)	(238,209)
Proceeds from borrowings	135,271	109,762
Repayments of borrowings	(59,149)	(11,785)
Proceeds from issuing of hybrid capital	24,530	–
Proceeds from government grants	2,284	13,538
Dividends paid	(15,152)	(9,713)
Cash flow from financing activities	87,784	101,802
Change in cash and cash equivalents	(117,574)	(52,825)
Cash and cash equivalents at beginning of the year	552,850	417,950
Exchange gains/(losses) on cash and cash equivalents	2,135	(16,614)
Cash and cash equivalents at end of the period	437,411	348,511

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

					Equity
					attributable to owners	Non
	Share	Other		Retained	of the parent	controlling	Total
€ in thousands	capital	reserves	Hybrid capital	earnings	company	interests	equity
31 Mar 20201)	141,846	14,723	172,887	430,803	760,259	–	760,259
Profit for the period	–	–	–	14,072	14,072	–	14,072
Other comprehensive income for the period	–	(34,210)	–	–	(34,210)	–	(34,210)
thereof currency translation differences, net of tax	–	(31,205)	–	–	(31,205)	–	(31,205)
thereof remeasurement of post-employment obligations, net of tax	–	(2,949)	–	–	(2,949)	–	(2,949)
thereof change in financial assets, net of tax	–	(56)	–	–	(56)	–	(56)
Total comprehensive income for the period	–	(34,210)	–	14,072	(20,138)	–	(20,138)
Dividends paid relating to 2019/20	–	–	–	(9,713)	(9,713)	–	(9,713)
30 Sep 20201)	141,846	(19,487)	172,887	435,162	730,408	–	730,408
31 Mar 2021	141,846	27,079	172,887	460,201	802,013	–	802,013
Profit for the period	–	–	–	18,309	18,309	–	18,309
Other comprehensive income for the period	–	41,730	–	–	41,730	–	41,730
thereof currency translation differences, net of tax	–	44,045	–	–	44,045	–	44,045
thereof remeasurement of post-employment obligations, net of tax	–	(852)	–	–	(852)	–	(852)
thereof change in hedging instruments for cash flow hedges, net of tax	–	(1,463)	–	–	(1,463)	–	(1,463)
Total comprehensive income for the period	–	41,730	–	18,309	60,039	–	60,039
Dividends paid relating to 2020/21	–	–	–	(15,152)	(15,152)	–	(15,152)
Proceeds hybrid capital	–	–	24,618	–	24,618	–	24,618
30 Sep 2021	141,846	68,809	197,505	463,358	871,518	–	871,518

1) Previous year: Adjustment hedge accounting (see Note "Other information")

SEGMENT REPORTING

	Mobile Devices & Substrates		Automotive, Industrial, Medical			Elimination/ Others Consolidation			Group
	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30	1 Apr - 30
€ in thousands	Sep 2021	Sep 2020	Sep 2021	Sep 2020	Sep 2021	Sep 2020	Sep 2021	Sep 2020	Sep 2021	Sep 2020
Segment revenue	568,384	444,436	213,097	152,742	–	–	(83,901)	(59,420)	697,580	537,758
Internal revenue	(61,336)	(38,818)	(22,565)	(20,602)	–	–	83,901	59,420	–	–
External revenue	507,048	405,618	190,532	132,140	–	–	–	–	697,580	537,758
Operating result before depreciation/amortisation	108,063	101,181	23,813	9,386	(987)	595	–	–	130,889	111,162
Depreciation/amortisation incl. appreciation	(84,426)	(64,103)	(13,684)	(12,573)	(2,248)	(1,650)	–	–	(100,358)	(78,326)
Operating result	23,637	37,078	10,129	(3,187)	(3,235)	(1,055)	–	–	30,531	32,836
Finance costs - net1)									(7,844)	(13,816)
Loss before tax1)									22,687	19,020
Income taxes1)									(4,378)	(4,948)
Loss for the period1)									18,309	14,072
Property, plant and equipment and intangible assets2)	1,402,499	1,161,891	183,477	170,629	13,784	11,693	–	–	1,599,760	1,344,213
Additions to property, plant and equipment and intangible assets	289,002	209,501	27,930	20,577	4,226	3,024	–	–	321,158	233,102

1) Previous year: Adjustment hedge accounting (see Note "Other information")

2) Previous year values as of 31 March 2021

INFORMATION BY GEOGRAPHIC REGION

Revenues broken down by customer region, based on customer's headquarters:

€ in thousands	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
Austria	10,867	7,030
Germany	77,389	57,377
Other European countries	43,004	29,475
China	3,915	28,941
Other Asian countries	41,884	26,616
Americas	520,521	388,319
Revenue	697,580	537,758

Property, plant and equipment and intangible assets broken down by domicile:

€ in thousands	30 Sep 2021	31 Mar 2021
Austria	126,863	116,733
China	1,385,378	1,160,930
Others	87,519	66,550
Property, plant and equipment and intangible assets	1,599,760	1,344,213

NOTES TO THE INTERIM FINANCIAL REPORT

GENERAL INFORMATION

Accounting and measurement policies The interim report ended 30 September 2021 has been prepared in accordance with the standards (IFRS and IAS) and interpretations (IFRIC and SIC) of the International Accounting Standards Board (IASB), taking IAS 34 into account, as adopted by the European Union. The accounting and measurement principles applied as at 31 March 2021 were applied without a change with the exception of the IFRS which are mandatorily effective as of 1 April 2021.

The interim consolidated financial statements do not include all the information contained in the annual consolidated financial statements and should be read in conjunction with the consolidated annual financial statements for the year ended 31 March 2021.

The interim consolidated financial statements for the period ended 30 September 2021 are unaudited and have not been the subject of external audit review.

NOTES TO THE STATEMENT OF PROFIT OR LOSS

Revenue Group revenue in the first six months of the current financial year increased by 29.7% from € 537.8 million in the last year to € 697.6 million.

Gross Profit The current gross profit of € 84.8 million was 23.9% above the € 68.5 million achieved in the same period last year. The reasons for the increase are higher revenues and therefore additional contribution margins. Higher expenses for research and development burdened the gross profit.

Operating result Despite an increased in gross profit, the consolidated operating result of AT&S decreased to € 30.5 million or 4.4% of revenue. The operating result was mainly burdened by lower other operating income, which is mainly due to higher startup costs in Chongqing. Higher administration and distribution costs additionally reduced the operating result.

Finance costs – net The finance costs of € 10.5 million were € 5.3 million below the prior-year level. The decline was mainly caused by lower negative exchange rate effects than in the prior-year period. Financial income was € 2.6 million and essentially resulted from the investment of free cash and interests from bank deposits. Overall, net finance costs improved by € 6.0 million and amounted to € -7.8 million.

Income taxes The change of the effective tax rate on the consolidated level compared with the same period of the previous year mainly results from the variation of proportions of Group earnings contributed by individual companies with different tax rates.

Seasonality Due to the great importance of mobile devices, the revenue of AT&S usually shows the following seasonal development: the first quarter of the financial year is usually weaker than the second and third quarters, which are typically characterised by very high demand in preparation for the launches of the latest product generation. In the fourth quarter, customer demand is generally lower. This quarter is also characterised by the holiday shutdown due to the Chinese New Year's celebrations at our large Chinese plants.

NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME

Currency translation differences The positive deviation in the foreign currency translation reserves in the current financial year by € 44.0 million was the result of the change in the exchange rate of the Chinese yuan renminbi and the US dollar against the Group's reporting currency, the euro.

		Closing rate		Average rate
	30 Sep 2021	31 Mar 2021	Change in %	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020	Change in %
Chinese yuan renminbi	7.5043	7.7106	(2.7 %)	7.6876	7.9621	(3.4 %)
Hong Kong dollar	9.0126	9.1214	(1.2 %)	9.2382	8.8190	4.8 %
Malaysian Ringgit	4.8442	4.8654	(0.4 %)	4.9374	4.8433	1.9 %
Indian rupee	85.8568	85.7896	0.1 %	87.5291	85.0491	2.9 %
Japanese yen	129.6400	129.8600	(0.2 %)	130.9442	121.2900	8.0 %
South Korean won	1,372.3325	1,324.7169	3.6 %	1,353.3168	1,367.3944	(1.0 %)
Taiwan dollar	32.2001	33.4295	(3.7 %)	33.1506	33.6545	(1.5 %)
US dollar	1.1571	1.1734	(1.4 %)	1.1885	1.1378	4.5 %

NOTES TO THE STATEMENT OF FINANCIAL POSITION

Assets and Finances Net debt, at € 787.0 million, increased versus the € 508.5 million outstanding at 31 March 2021. In contrast to this, net working capital rose from € 200.9 million as at 31 March 2021 to € 288.5 million mainly due to increased inventories and receivables. The increase in trade receivables was caused, among other things, by higher revenues in the second quarter of the current financial year compared with the fourth quarter of the financial year 2020/21. The net gearing ratio, at 90.3%, was above the 63.4% at 31 March 2021.

Valuation hierarchies for financial instruments measured at fair value Three valuation hierarchies have to be distinguished in the valuation of financial instruments measured at fair value.

• Level 1: fair values are determined on the basis of publicly quoted prices in active markets for identical financial instruments.
• Level 2: if no publicly quoted prices in active markets exist, then fair values are determined on the basis of valuation methods based to the greatest possible extent on market prices.
• Level 3: in this case, the models used to determine fair value are based on inputs not observable in the market.

€ in thousands
30 Sep 2021	Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at fair value through profit or loss:
– Bonds	989	–	–	989
Financial assets at fair value through other comprehensive income without recycling	–	118	–	118
Financial liabilities
Derivative financial instruments	–	6,595	–	6,595
€ in thousands
31 Mar 2021	Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at fair value through profit or loss:
– Bonds	986	–	–	986
Financial assets at fair value through other comprehensive income without recycling	–	117	–	117
Financial liabilities
Derivative financial instruments	–	6,599	–	6,599

The financial instruments valued at fair value at the end of the reporting period at the three valuation levels were as follows:

Export loans, government loans and other bank borrowings amounting to € 1,234.3 million (31 March 2021: € 1,094.6 million) are measured at amortised cost. The fair value of these liabilities was € 1,240.6 million (31 March 2021: € 1,100.1 million).

Other financial commitments At 30 September 2021 the Group had other financial commitments amounting to € 403.1 million in connection with contractually binding investment commitments. This relates to investments in the Shanghai, Chongqing, Nanjangud and Leoben plants. As at 31 March 2021 other financial commitments stood at € 251,5 million. Due to a decision which AT&S India received on 29 April 2021, a penalty payment of up to € 2.0 million could be imposed due to failure to provide the required documentation of a recycling process/disposal process. Based on a current estimate of the local company, the probability of having to pay the full amount is considered to be low and the decision was contested. A precise estimate regarding the probability of occurrence and the amount of a possible penalty payment is not possible at present.

Equity Consolidated equity changed due to the consolidated profit for the period of € 18.3 million, dividend payment of € 15.2 million, positive impacts from currency translation differences of € 44.0 million, losses of remeasurement of postemployment obligations of € 0.9 million. Furthermore losses from the fair value measurement of hedging instruments for cash flow hedges of € 1.5 million and additional new hybrid capital of € 24.6 million lead to an increase from € 802.0 million at 31 March 2021 to € 871.5 million at 30 September 2021.

Hybrid Capital In the financial year 2021/22 the Group was granted financing within the framework of bilateral agreements. In the half-year financial statements 2021/2022 such financing in the amount of € 24.6 million (US\$ 30.0 million) is reported as equity; further tranches will follow. The redemption terms of this financing are comparable to those of the hybrid bond issued by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft in November 2017: it has perpetual maturity and can be called in only by AT & S Austria Technologie & Systemtechnik Aktiengesellschaft, but not be the creditors. If it is not redeemed between 2026 and 2030, the interest rate will be increased on a pro-rata basis from 2026, and will consist of a risk-free interest rate on the basis of the US bonds and a fixed mark-up of 8.85%. From 2030 onwards, the entire amount not redeemed by then would be subject to interest. The classification as equity is based on our analysis according to which the financing is a financial instrument due to separate rights and obligations and therefore requires an assessment pursuant to IAS 32. Due to the unrestricted possibility to evade the settlement of the financing, the financing was accordingly classified as equity. In analogy to the hybrid bond issued by us, the financing is reported under the item hybrid capital.

The recognition under equity is subject to currently ongoing pre-clearance procedures with the Austrian Financial Market Authority (FMA). The result of these procedures is still pending at the time of the preparation of these financial statements.

At the 25th Annual General Meeting on 4 July 2019 the Management Board was authorised until 3 July 2024 to increase the share capital of the Company, subject to the approval of the Supervisory Board, by up to € 21,367,500 by way of issuing up to 19,425,000 no-par value bearer shares, for contributions in cash or in kind, in one or several tranches, including issue by means of an indirect share offering via banks in accordance with section 153 para 6 Austrian Stock Corporation Act (AktG). The Management Board was authorised, subject to the approval of the Supervisory Board, to determine the detailed terms and conditions of issue (in particular, issue price, nature of contributions in kind, rights related to shares, exclusion of subscription rights, etc.) (authorised capital). The Supervisory Board was authorised to approve amendments to the Articles of Association required by the issue of shares out of authorised capital.

At the 25th Annual General Meeting of 4 July 2019 the Management Board was also authorised until 3 July 2024, subject to the approval of the Supervisory Board, to issue convertible bearer bonds up to a maximum nominal value of € 150,000,000 in one or several tranches, and to grant the holders of the convertible bond subscription and/or conversion rights to up to 19,425,000 new no-par value bearer shares in the Company in accordance with the terms and conditions of the convertible bond to be determined by the Management Board. For this purpose, the Management Board was also authorised to fully or partially exclude shareholders' subscription rights to convertible bonds. In accordance with section 159 para 2 item 1 AktG, the share capital of the Company was also conditionally increased by up to € 21,367,500 by issuing up to 19,425,000 new no-par value bearer shares. This conditional capital increase will only take place to the extent that holders of convertible bonds issued in accordance with the resolution of the Annual General Meeting of 4 July 2019 exercise their conversion or subscription rights to shares of the Company granted to them. The Management Board was also authorised, subject to the approval of the Supervisory Board, to determine further details of the conditional capital increase (in particular, the amount of the issue and the rights related to shares). The Supervisory Board was authorised to adopt amendments to the Articles of Association resulting from the issue of shares from conditional capital. The same applies in case the authorisation to issue convertible bonds is not exercised and in case the conditional capital is not used.

With respect to the authorised share capital increase and/or the conditional capital increase, the following restrictions on the amounts of the increases are to be observed, as required under the resolutions passed at the 25th Annual General Meeting of 4 July 2019: The total of (i) the number of new shares actually issued or potentially issuable out of conditional capital under the terms and conditions of the convertible bonds, and (ii) the number of shares issued out of authorised capital may not exceed 19,425,000 (definition of amount of authorisations).

The Annual General Meeting approved a resolution amending Section 4 (Nominal Capital) of the Articles of Association to reflect these changes.

At the 27th Annual General Meeting of 8 July 2021 the Management Board was authorised to reclassify an amount of up to € 80,000,000 of the total profit carried forward – after dividend payments – of € 53,396,054.76 to free reserves, subject to the approval of the Supervisory Board.

Treasury shares At the 27th Annual General Meeting of 8 July 2021 the Management Board was again authorised for a period of 30 months from the date of the resolution to acquire treasury shares up to a maximum amount of 10% of the share capital at a minimum price that may be no more than 30% lower than the average unweighted closing price of the previous ten trading days and at a highest price per share of a maximum of up to 30% above the average unweighted closing price of the previous ten trading days. The shares can be acquired over the stock exchange, by way of a public offering or any other legally permitted way and for any legally permitted purpose. The Management Board was also authorised to withdraw repurchased treasury shares as well as treasury shares already held by the Company without any further resolution of the Annual General Meeting. The Supervisory Board was authorised to adopt amendments to the Articles of Association resulting from the withdrawal of treasury shares. Furthermore, the Management Board was authorised, for a period of five years, i.e. up to and including 3 July 2024, subject to approval of the Supervisory Board, to sell or use the repurchased treasury shares or treasury shares currently held by the Company other than via the stock exchange or by public offer, in particular for the purposes of stock transfer programmes, convertible bonds or as a consideration for the acquisition of entities, investments or other assets or for any other legal purpose, and to exclude a general purchase opportunity for shareholders.

As at 30 September 2021, the Group held no treasury shares.

NOTES TO THE STATEMENT OF CASH FLOWS

Cash flow from operating activities amounted to € 78.0 million compared with € 83.6 million in the same period last year. The lower operating result of € 30.5 million (previous year: € 32.8 million) and an increase in trade payables and other liabilities of € 85.8 million (previous year: increase of € 37.4 million) were the main reasons for the lower cash flow.

Cash flow from investing activities amounts to € -283.3 million and is thus above the level of € -238.2 million reached in the same period last year. Thereof capital expenditure for property, plant and equipment and intangible assets accounts for € 307.0 million. This year's capital expenditures are predominantly in the Chinese plants and technology upgrades in the other plants. Capital expenditure for financial assets amounts to € 15.0 million, and proceeds from the sale of financial assets amount to € 38.6 million for the investment and reinvestments of liquid funds. Payables for capex amounting to € 126.4 million will become payable after 30 September 2021.

Cash flow from financing activities amounts to € 87.8 million and is mainly attributable to additions of loans, received government grants and additional hyprid capital.

The non-cash expense/income is as follows:

€ in thousands	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
Release of government grants	(2,296)	(1,511)
Other non-cash expense/(income), net	8,024	3,110
Non-cash expense/(income), net	5,728	1,599

OTHER INFORMATION

Impact of the coronavirus (SARS-COV-2) The global spread of the coronavirus since January 2020 has led to significant government measures worldwide to contain the pandemic. With respect to the going concern there are no uncertainties for the AT&S Group. There are no significant changes regarding financial risks. The future situation in the individual countries will continue to be monitored very closely.

Change in consolidation structure In the financial year 2021/22, a new company was acquired in Malaysia for the purpose of capacity expansion in the Substrates business unit. Since this is not a business in accordance with IFRS 3 at the date of acquisition, the provisions of this standard are not applicable. The effects of the initial consolidation of this company on the consolidated financial statements are immaterial.

Adjustment of prior-year figures Due to a changed assessment of the interest rate swaps entered into in 2017/18 and 2018/19 it was found that effectiveness in accordance with IAS 39 is no longer given. Recognition of measurement gains or losses through other comprehensive income is thus no longer permitted. Consequently, they must be recognised in profit or loss under finance costs – net, so that a retroactive correction had to be made in accordance with IAS 8. Since the other comprehensive income increased by the same amount the total comprehensive income for the period remained unchanged.

Dividends The Annual General Meeting of 8 July 2021 resolved on a dividend payment of € 0.39 per share from the total balancesheet profit as at 31 March 2021. The dividend distribution of € 15.2 million took place on 29 July 2021.

Related party transactions In connection with various projects, the Group received consulting services from companies where Supervisory Board Chairman Mr. Androsch (AIC Androsch International Management Consulting GmbH) was active. The fees charged are as follows:

€ in thousands	1 Apr - 30 Sep 2021	1 Apr - 30 Sep 2020
AIC Androsch International Management Consulting GmbH	182	182
Total fees	182	182

At the balance sheet date, there are no outstanding balances or obligations to the above mentioned legal and consulting companies.

Leoben-Hinterberg, 4 November 2021

Management Board

Andreas Gerstenmayer m.p. Ingolf Schröder m.p. Peter Schneider m.p.

STATEMENT OF ALL LEGAL REPRESENTATIVES

We confirm to the best of our knowledge that the interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group interim management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the interim financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

Leoben-Hinterberg, 4 November 2021

The Management Board

Andreas Gerstenmayer m.p. Chief Executive Officer Peter Schneider m.p. Chief Sales Officer Ingolf Schröder m.p. Chief Operations Officer

AT&S SHARE

Positive development in the first half of the year

Despite challenges such as the persisting omnipresence of the COVID-19 pandemic or the disruption of global supply chains, AT&S was able to show positive trends in its reporting. In Malaysia, AT&S will make its largest investment in the company's history to date, aiming to serve the strong demand for IC substrates. Thanks to the solid business results for 2020/21, the dividend paid out was increased to € 0.39 per share. In addition, the figures for the first quarter showed improvements over the comparative period.

In the first half of the year, Investor Relations focused its capital market communication on further strengthening investors' trust in the company, its growth story "More than AT&S" and in the industry. In view of the COVID-19 pandemic, the IR team's communication with the financial market still predominantly took place at a virtual level. Stifel published its first analysis of AT&S with a "buy" rating during the reporting period. Six analysts currently cover the AT&S share.

The AT&S share showed a positive performance in the first half of 2021/22 and even marked a new all-time high of € 39.70 on 29 July 2021.

Share performance

AT&S against ATX Prime and TecDAX

With a closing price (30 September 2021) of € 32.95, the AT&S share gained 7.7% in the first half of the financial year. Volatility was still high with the price ranging between € 27.95 and € 39.70. The average volume traded on the Vienna Stock Exchange was approximately 72,000 shares.

Key Share figures for the first six months

€	30 Sep 2021	30 Sep 2020
Earnings per share	0.36	0.25
High	39.70	18.00
Low	27.95	12.32
Close	32.95	16.14

Financial calendar

03/02/2022	Publication of the first three quarters 2021/22
17/05/2022	Publication Preliminary Annual Results 2021/22
09/06/2022	Publication Annual Results 2021/22
27/06/2022	Record Date Annual General Meeting
07/07/2022	28th Annual General Meeting
26/07/2022	Ex-Dividend Day
27/07/2022	Record Date Dividend

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

CONTACT

Philipp Gebhardt Phone: +43 (0)3842 200 2274 p.gebhardt@ats.net

DISCLAIMER

This report contains forward-looking statements which were made on the basis of the information available at the time of publication. These can be identified by the use of such expressions as "expects", "plans", "anticipates", "intends", "could", "will", "aim" and "estimation" or other similar words. These statements are based on current expectations and assumptions. Such statements are by their very nature subject to known and unknown risks and uncertainties. As a result, actual developments may vary significantly from the forwardlooking statements made in this report. Recipients of this report are expressly cautioned not to place undue reliance on such statements. Neither AT&S nor any other entity accept any responsibility for the correctness and completeness of the forward-looking statements contained in this report. AT&S undertakes no obligation to update or revise any forwardlooking statements, whether as a result of changed assumptions or expectations, new information or future events.

Percentages and individual items presented in this report are rounded, which may result in rounding differences.

Formulations attributable to people are to be understood as gender-neutral.

This report in no way represents an invitation or recommenddation to buy or sell shares in AT&S.

The report is published in German and English. In case of doubt, the German version is binding.

No responsibility accepted for errors or omissions.

Published on 4 November 2021

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