LEOBEN, AUSTRIA – AT&S continued its growth course unabated in its fiscal first quarter, with record revenue and earnings.

Consolidated revenue improved 58% to €503 million ($512 million) in the period ended Jun. 30 on broad-based demand. Automotive recorded the strongest growth, constrained in part by bottlenecks in the automotive supply industry. ABF substrate demand was solid, boosted by new capacity in Chongqing, China. Adjusted for currency effects, consolidated revenue rose 44%.

“Despite a difficult environment, we demonstrated once again that we have been focusing on the right markets,” said Andreas Gerstenmayer, CEO. “We are on track to meet our short- and medium-term targets, both in strategic and in operational terms. We are aiming for revenue of roughly €2.2 billion in the financial year 2022-23, with an adjusted EBITDA margin of 27 to 30%. If the build-up of additional production capacity in Chongqing, Kulim and Leoben continues as planned, we will generate revenue of 3.5 billion euros already in the financial year 2025/26, with an EBITDA margin of 27 to 32%.”

EBITDA rose 196% to €137 million, primarily due to the increase in consolidated revenue. Currency fluctuations of the US dollar and the Chinese renminbi had a positive influence of €32 million on earnings. Startup costs in Chongqing and Kulim, Malaysia, as well as Leoben, and higher material, transport and energy costs had a negative impact on earnings. Research and development expenditures were further increased to ensure that AT&S will remain a leading innovation driver going forward.

Adjusted for startup costs, EBITDA was €145 million, an increase of 183%. Without currency effects, adjusted EBITDA would have grown 120%.

EBITDA margin was 27.3% (adjusted for startup costs: 28.8%), well above the prior year level of 14.6%. Depreciation and amortization increased by €18 million to €64 million (13% of revenue) due to additions to assets and technology upgrades. EBIT rose to €73 million from -€400,000. EBIT margin was 14.5%, versus -0.1%.

AT&S continues to concentrate on the startup of new production capacities at plant III in Chongqing, the investment project in Kulim and expansion of the site in Leoben and technology upgrades at other locations.

Expectations for AT&S’s segments are currently as follows: the market conditions for IC substrates continue to offer significant growth opportunities in the medium term. The 5G mobile communication standard as well as the module printed circuit board business will remain positive drivers in the area of Mobile Devices. In the Automotive segment, the semiconductor shortage should ease somewhat and the growth trend should therefore intensify. In the Industrial and Medical segments, AT&S expects a continued positive development for the current financial year.

As part of the strategic projects, management is planning investments totaling €1 billion for current fiscal year, depending on the progress of projects. Roughly €150 million is budgeted for basic investments. Planned investments amounting to €100 million of the investment budget for the financial year 2021/22 have been postponed to the financial year 2022/23. As a result, the planned investment volume totals €1.25 billion.

In view of the first quarter report, AT&S affirmed its outlook for fiscal year 2023, with revenue expected to total €2.2 billion and adjusted EBITDA margin of 27% to 30%.

The progress of the production capacity expansion in Chongqing and in Kulim, as well as the expansion of the site in Leoben is still positive despite the challenging global economic and health situation. Therefore, AT&S expects revenue of €3.5 billion in fiscal 2025-26 and EBITDA margin of 27% to 32%.

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