AT&S Posts Solid Results in FY 2015/16

Estimated reading time: 7 minutes

With an increase by 8.2%, this segment raised revenue from EUR 301.8 million in the previous year to EUR 326.7 million. The positive development was on the one hand based on the ever increasing demand for electronic components in the automotive segment, and, on the other hand, on increasing demand in the medical technology segment. The segment was negatively impacted by currency fluctuations resulting in higher manufacturing costs in India and Korea, which could only partially be passed on to customers. Overall, this led to a decline in EBITDA by EUR 4.7 million or 13.5% to EUR 30.1 million. The EBITDA margin decreased by 2.3 percentage points to 9.2% (previous year: 11.5%).

Segment Other

This segment includes general holding activities and the Business Unit Advanced Packaging. It focuses on embedding active and passive components into printed circuit boards. As this business unit is still small, it is not yet reported as a separate segment but recorded a significant increase in revenue by 102.9% to EUR 22.1 million.

Status Project Chongqing

AT&S invested EUR 190.3 million into the project Chongqing in the financial year. The establishment of the two plants in Chongqing proceeded according to plan. On 23 February 2016, the plant for IC substrates was certified and serial production started. This plant produces IC substrates as a connection between the chip and the printed circuit board for applications such as notebooks and PCs. The start-up phase is satisfactory regarding technology and capacity utilisation. The facilities for the second production line for IC substrates are currently being established step by step.

The infrastructure for the second plant, which will produce substrate-like PCBs starting in the second half of the calendar year 2016, has been completed. The equipment is being installed.

Outlook for the financial year 2016/17

It can be assumed that after the deceleration of growth in the segment of communication devices (e.g. smartphones and tablets), new impetus from the Internet of Things segment will provide for further long-term growth. At the same time, there will not be the one “Big Thing”, but many related “smart things”. Against the background of slower growth dynamics in parts of the existing customer segments and increased competition, AT&S expects stronger seasonality again in certain business quarters (especially in Q1 2016/17 and in Q4 2016/17) and continued low visibility in the financial year 2016/17. Provided that the macroeconomic environment remains stable, the USD-EUR exchange rate is similar to that of the financial year 2015/16 and demand in the core business remains stable, the management expects an increase in revenue of 10-12% for the current financial year. The EBITDA margin should range between 18-20% based on the expected start-up costs for the further ramp-up in Chongqing; the EBITDA margin in the core business will be at a comparable level to the financial year 2015/16. The higher depreciation and amortisation of roughly EUR 40 million p.a. for the project Chongqing will have a significant influence on EBIT.

• < Previous Page