AT&S grows by double digits in the corona year 2020/21

“With this performance, we have once again proven our resilient business model and demonstrated that we continuously develop even in times of uncertainty. We are growing faster than the market while being highly profitable. In the past, we created the basis that enables us to respond quickly and consistently work on advancing our growth strategy at the same time. We are fully on track to achieve our goals,” says CEO Andreas Gerstenmayer in a press release. Consolidated revenue for the PCB manufacturer was at a record level of EUR 1,188.2 million, up 19% from EUR 1,000.6 million during the year before. Adjusted for currency effects, consolidated revenue even rose by 22%. The additional capacity from the Chongqing I plant, which serves the growing demand for ABF substrates, made a significant contribution to revenue growth. In the Mobile Devices & Substrates segment, the broader customer and application portfolio for mobile devices and demand for printed circuit boards for modules also had a positive effect. In the AIM segment, revenue in the Medical segment was at the prior-year level while revenue in the Industrial segment increased slightly. After a weak first half of the financial year, the Automotive segment recorded revenue in the second half at the level of the previous year. EBITDA amounted to EUR 245.7 million (EUR 194.5 million the year before) and nearly matched the historic high of the financial year 2018/19. The earnings improvement is predominantly attributable to the higher consolidated revenue. At the same time, the company says that currency effects, in particular due to the weaker US dollar, had a negative impact on the revenue and earnings development. EBIT improved from EUR 47.4 million during the previous period to EUR 79.8 million. Net profit for the year rose from EUR 19.8 million in the previous year to EUR 47.4 million as a result of the significant increase in the operating result. Cash and cash equivalents rose to EUR 552.9 million (EUR 418.0 million the previous year). In addition, AT&S has financial assets of EUR 39.7 million and unused credit lines of EUR 418.6 million to ensure financing of the future investment programme and short-term repayments. “AT&S is economically stable and has a solid balance sheet structure, which was further strengthened by capital measures in the past year. To secure financing of the upcoming investments and ongoing business activities, we will continue to optimise and expand our capital structure,” says CFO Simone Faath. Outlook 2021/22 The positive outlook of the electronics industry is currently dampened by a shortage of semiconductors. The expectations for AT&S’s segments are currently as follows: the persisting strong demand for IC substrates continues to offer significant growth opportunities in the medium term. The 5G mobile communication standard will continue to drive growth in the area of Mobile Devices. An upturn is expected in the Automotive segment despite the semiconductor shortage. Driven by a boom in industrial robots and the roll-out of the 5G infrastructure, the Industrial segment will continue to see a positive development in the coming year. AT&S expects a positive development in the Medicalsegment for the current financial year. Operationally, AT&S will concentrate on the start-up of the new production capacities at plant III in Chongqing, carry out technology upgrades at other locations and continue to drive its business performance. “The market for communication infrastructure, which is responsible for data transmission, is booming and so is demand for processing capacity. Digitisation in all areas of life will continue to develop dynamically. Therefore, we are investing in additional capacity and are significantly expanding our market position of ABF substrates,” says Andreas Gerstenmayer. Up to EUR 100 million is budgeted for basic investments (that is maintenance and technology upgrades) depending on market development. As part of the strategic projects, the management is planning investments totalling up to EUR 450 million for the financial year 2021/22 depending on the progress of projects, plus another EUR 80 million due to period shifts between the financial years. The company expects revenue growth of 13% to 15% in the financial year 2021/22. Taking into account special effects amounting to approximately EUR 40 million from the start-up of new production capacities in Chongqing, the adjusted EBITDA margin is expected to range between 21% and 23%