AT&S Reports 28.2% Revenue Increase in H1 2014/15

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Cash flow and statement of financial position

Based on the very positive earnings development, a 65.3% increase in cash flow from operating activities to EUR 55.6 million was recorded compared with EUR 33.6 million in H1 2014/15.

Cash flow from investing activities – investments in the plant in Chongqing, which is under construction, and technology investments at other production sites – amounted to EUR 97.5 million (H1 2014/15: EUR 88.7 million).

Despite a higher profit for the period, equity declined by 4.8% to EUR 575.1 million due to negative currency differences. Consequently, the equity ratio, at 47.2%, was 2.3 percentage points below the value at 31 March 2015.

As expected, net debt rose by 49.0% from EUR 130.5 million to EUR 194.4 million in the first six months of the financial year 2015/16 due to the high investment activities in Chongqing, the dividend payment and higher working capital (resulting from higher revenue). The net gearing ratio, at 33.8 % as of 30 September 2015, exceeded the level of 31 March 2015.

Business Unit Mobile Devices & Substrates with continued growth of revenue

The continued strong demand for high-end HDI printed circuit boards for smartphones continued in the first half of 2015/16. USD exchange rates, which are still favourable from a euro perspective, also had a positive impact. Overall, this led to a substantial increase in revenue by EUR 78.0 million or 40.0%, from EUR 194.8 million to EUR 272.8 million compared with the prior-year reporting period. Based on very good capacity utilisation at the upper capacity limit and efficient cost management, EBITDA increased by 30.2% to EUR 67.6 million. At 24.8%, the EBITDA margin was at a lower level than in the reporting period of the previous year (26.7%) as a result of negative currency translation effects from sales to the automotive, industrial, medical segment in EUR and production costs in renminbi.

Business Unit Automotive, Industrial, Medical increases revenue and maintains profitability level

With revenue growth of 11.6%, this segment exceeded the prior-year figure of EUR 151.9 million generating revenue of EUR 169.5 million. The main driver was the continuously growing demand by the automotive sector, which reflects the trend towards more electronic components in vehicles and the medical segment. Demand in the industrial segment was slightly below the high level of the previous year. Based on very high capacity utilisation, EBITDA rose by 8.2% compared with the prior-year value, to EUR 19.2 million. The EBITDA margin, at 11.3%, remained at a similar level as in the comparative period of the previous year (11.7%) based on the currency-related increase in production costs in India and Korea.

Set-up of Chongqing site still on schedule – certification at the end of the year

In the first six months AT&S invested EUR 98.2 million in additions to assets – above all in the establishment of the two plants in Chongqing, which is proceeding according to plan. The plant for IC substrates is currently in the final phase of qualification. We expect certification to take place at the end of the year, as planned. Beginning 2016, serial production is expected to be launched. The fixed product mix – IC substrates for the product segment computing (notebooks, PCs, etc.) for the initial customer, a leading semiconductor manufacturer – corresponds to the original plan. The construction of plant II for substrate-like printed circuit boards is rapidly progressing. Serial production is expected to start from the second half of 2016. At 30 September 2015, AT&S had invested EUR 196.3 million in the Chongqing project. The two technologies planned for this site are intended to secure the leading technology position and profitable growth of AT&S in the long term.



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