AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-Mail info@ats.net

www.ats.net

AT&S first choice for advanced applications

Company Presentation

September 2014

1

AT&S – the quality leader of PCB production

Best positioned in highly attractive market

Agenda

AT&S Strategy

AT&S Corporate Social Responsibility

Präsentationstitel / Verfasser / Ort, Datum 2

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AT&S at a glance

AT&S is one of the word‘s leading manufacturer of high-end

printed circuit boards

AT&S industrializes leading-edge technology for its business

segments mobile devices, automotive & aviation, industrial

electronics, medical & healthcare and advanced packaging

AT&S took the next step in implementing its high-tech strategy by

entering the IC substrate business

Management

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Andreas Gerstenmayer, CEO

Joined AT&S as CEO in 2010 Previous positions include:

18 years of work experience at Siemens, including Managing Director with Siemens Transportation Systems GmbH Austria and CEO of the Drive Technology business unit in Graz from 2003 to 2008

Partner at FOCUSON Business Consulting GmbH after leaving Siemens Education and other positions:

Member of the Research Council of Styria Degree in Production Engineering from Rosenheim University of Applied Sciences

Heinz Moitzi, COO

COO since 2005; with AT&S since 1981 Previous positions include:

Various management positions within AT&S Measurement engineer with Leoben University of Mining and Metallurgy

Education: Degree from Higher Technical College of Electrical Engineering Studied electrical installation with Stadtwerke Judenburg (Judenburg municipal utility company)

Karl M. Asamer, CFO

Joined AT&S as CFO in 2014 Previous positions include:

Managing Director of GEKA Group in Germany Managing Director of Sell GmbH in Germany

Education: Degree: doctorate in business administration in Linz, Austria

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History

2013 Collaboration agreement with leading semiconductor manufacturer to enter IC substrate market

2011 Acquisition of land and start of construction of a high-end plant in Chongqing, China

2010 Relocation of Group Headquarters from Vienna to Leoben Ramp-Up plant II in Nanjangud

2009 Restructuring and reorientation of Leoben plant towards high-value industrial business

Focusing Shanghai on high-end mobile devices segment

2008 Relisting on the Vienna Stock Exchange (Prime Market)

2006 AT&S buys flexible plant in Korea

2002 Start of production in new AT&S plant in Shanghai – one of the world’s leading HDI* facilities

1999 AT&S listed on the Neuer Markt at the Frankfurt Stock Exchange

AT&S buys PCB plant in India

1994 Privatisation and acquisition by Hannes Androsch, Willibald Dörflinger and Helmut Zoidl

1987 Foundation of AT&S

* High Density Interconnect (laser-drilled printed circuit boards)

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Financials

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Global footprint

Production facilities in Europe and Asia Headquarters in Leoben, Austria Procurement center in Hong Kong, China

Design center in Düren, Germany Sales network spanning three continents About ~7,300 employees

BU IA Plant Leoben, Austria Headquarters Staff: ~ 800 Customer Orientation: 9% Automotive 91% Industrial

BU IA Plant Fehring, Austria Staff: ~350 Customer Orientation: 44% Automotive 56% Industrial

BU MS Plant Shanghai, China Staff: ~4.250 Customer Orientation: 84% Mobile Devices 14% Automotive 2% Industrial

BU IA Plant Ansan, Korea Staff: ~250 Customer Orientation: 13% Automotive 47% Industrial 40% Mobile Devices

BU IA Plant Nanjangud, India Staff: ~1.100 Customer Orientation: 60% Automotive 40% Industrial

BU MS Plant Chongqing, China under construction Staff: ~400

AT&S AG Headquarters

Leoben, Austria

BU MS Headquarters

Hong Kong, China

AT&S AG Headquarters Sales Offices /Representations Business Unit Mobile Devices & Substrates (BU MS) Business Unit Industrial & Automotive (BU IA)

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1 day with AT&S

9

AT&S – the quality leader of PCB production

Best positioned in highly attractive market

Agenda

AT&S Strategy

AT&S Corporate Social Responsibility

Distribution of Revenue

*Revenue Q1 2014/15

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*Revenue Q1 2014/15

Figures are based on internal management information systems and are subject to change | Source: AT&S AG

29%

15%

52%

4%

Distribution of Revenue* by shipping location

Austria/Germany

Rest of Europe

Asia

Americas

Other European countries

29%

8%

22% 41%

Distribution of Revenue* by Customer´s headquarter

Austria/Germany

Rest of Europe

Asia

Americas

Other European countries

► volatility due to seasonal effects

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Business Segments

Characteristic Applications

54%

Segment Revenue share*

*) Based on external revenues € in millions for FY 2013/14

46%

Mobile Devices & Substrates

Industrial & Automotive

Advanced Packaging

Target market diversification provides for superior earnings stability and a close relationship with selected technology leaders in each market segment

Examplary Market Leaders

Siemens

General Electric

EADS

Hella

Continental

Texas Instruments

TDK-EPCOS

Sony

LG

Motorola

Blackberry

Canon

Samsung

Nokia

Huawei

ZTE

Apple

► more stable business due to longer product life time

Includes the segment Advanced Packaging (still in the process of being established) as well as group management and financial activities

Others

(€ in millions)

74.5 90.1 87.7

69.0 68.0

Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15

66.4 66.3 62.9 69.7 72.6

Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15

(€ in millions)

Project Status Chongqing (as of 30/06/2014)

Completion of Infrastructure

Start Equipment Installation

Start Equipment Characterisation

Certification

Start Training

Start Equipment Ordering

Plant Lay-out Product- Specification

Ramp-up Volume Production

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*Additions to tangible fixed assets as of 30/06/2014

Q4 Q1 Q2 Q3

FY 2013/14

Q4 Q1 Q2 Q3

FY 2014/15

Q3

FY 2012/13

Q4 Q1 Q2 Q3

FY 2015/16

Q4 Q1 Q2 Q3

FY 2016/17

Q4

Investment as of 30/06/2014: € 136 million*

Figures are based on internal management information systems and are subject to change | Source: AT&S AG

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AT&S – the quality leader of PCB production

Best positioned in highly attractive market

Agenda

AT&S Strategy

AT&S Corporate Social Responsibility

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-Mail info@ats.net

www.ats.net

Megatrends URBANISATION NEW WORK

GLOBALISATION

MOBILITY

INDIVIDUALISATION

SILVER SOCIETY

CONNECTIVITY

HEALTHCARE

NEW LEARNING

NEO-ECOLOGY

Megatrend: eg. Internet of Things (IoT)

Source: http://www.forbes.com and http://de.control4.com

“The world is made up of trillions of things — cars, planes, jet engines, exercise equipment, the items on my desk. And then there’s the Internet. This category is about all of these things and the Internet, as we know it, coming together. Anything I can do over the Internet blended with my things.” Chet Pipkin, CEO and founder of Belkin “Everything Is Connected: What 'The Internet Of Things' Means Now” Forbes Magazine, April 2014

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1995 2000 2014

Fixed Computer You go to the

device

Mobility The device goes

with you

IoT everyday physical things can become a

computer that is connected to the Internet

2020

Internet of Everything

200 Million

*

* Number of connected devices

10 Billion

50 Billion

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Expected market growth: Revenues in Wearable Devices will grow

from 8,8 bln US$ (2012) to 30 bln US$ (2018)

Sales of Wearables units: 2014 - 105mln units/2018: 210mln units

Deep Brain Neurostimlators

Gastric Stimulators

Foot Drop Implants

Cochlear Implants

Cardiac Defibrillators/ Pacemakers

Insulin Pump

Source: Shutterstock, Agentur DMP

Megatrend: eg. Wearables

17 Source: IHS, 2014 The World Market for Wearable Technology

The Wearables Market – Application Fields

0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016 2017 2018

Industrie

Infotainment

Fitness/Wellness

Gesundheit/Medizin

Bill

ion

US$

World Market for Wearables– according to application field

Industry

Infotainment

Fitness/Wellness

Health/Medical

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-Mail info@ats.net

www.ats.net

Electronic Industry Trends

Power Electronics / High Current

Production Processes / Business Models

Modules / Packages

Miniaturisation

Flexibility

High Speed / High Frequency

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Quelle: Shutterstock

Trends in the Electronic Industry Flexibility, Miniaturisation

Integrating Electronics into everyday life

Technology meets Design Connectivity

Globalisation Healthcare

Mobility Individualisation

Miniaturisation

Devices are getting smaller, lighter and more efficient – the electronics must meet these demandsƒƒ

Flexible Electronics

ƒƒIntegration of electronics in confined spaces (package, car, medical devices)

Mobile/portable electronics

Conjunction/combination of electronic modules

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3D Röntgendarstellung eingebetteter elektronischer Bauelemente

Trends in the Electronic Industry Modules / Packages

Healthcare

Mobility Individualisation

Module / Packages

New functional modules, ƒƒintegrated into devices additionally (e.g. sensors) – small space with high packing density and high efficiency – PCB-technology offers new possibilities

Connectivity

Globalisation Integrating Electronics into everyday life

Technology meets Design

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Trends in the Electronic Industry High Speed / High Frequency

High Speed / High Frequency is needed for

Connectivity

Globalisation

Mobility Individualisation Contactless communication between people and devices, exchanging large

volumes of data with eachother (pictures, videos, etc.), especially in new areas such as information-, automotive-, industrial and medical technology

Radar applications implemented in the newest cars, are a must for self-driving cars and working devices/equipment!

Source: Shutterstock

22

Trends in the Electronic Industry Power Electronics / High Currents

Energy-efficient mobility leads to electrification of mobility – mechanical solutions are replaced by energysaving electronic solutions

New, economic lighting techniques (e.g. LED) are electronically interconnected and in need of efficient cooling system

Heat management in highly integrated electronics

Appropriate handling of high currents and effective cooling systems for components in power electronics

Source: Shutterstock

Connectivity

Globalisation

Mobility Individualisation

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Trends in the Electronic Industry Production Processes / Business Models

Using data in order to optimise and improve production processes

Integrating new and additional steps along the value-added chain

Automation of production processes in daily life

Economic use of production resources

Production processes and business models are continually changing

Smart Sensors communicate with eachother and send evaluations of the collected data to their central control units via the internet

Quelle: Shutterstock

Source: Shutterstock

Connectivity

Globalisation

New Work New Ecology

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AT&S – the quality leader of PCB production

Best positioned in highly attractive market

Agenda

AT&S Strategy

AT&S Corporate Social Responsibility

CSR gains importance in long term business success:

increases in efficiency highly motivated and qualified staff

CSR - an increasingly important factor in sustainable business success

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Importance of CSR is rising within:

public authorities (basis for securing operation licences) customers (relevant for placing orders)

Five core dimensions of sustainability within AT&S

Energy and carbon footprint

Water

AT&S – a learning organisation

Resources

Thinking ahead – shaping the future

AT&S reduces CO² output and saves water…

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Sustainability – indicators and aspects

AT&S aims to minimise the carbon footprint of its production and transportation of finished PCBs. The target is to reduce to CO2 emissions per m² PCB by 5% yoy.

AT&S has set a target in FY 2013/14 to reduce the freshwater consumption. The freshwater used for the manufacturing of PCBs will be reduced per m² PCB by 3% yoy.

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…and focuses also on other areas

Resources Internal benchmarks for recycling Increasing the recycling ratio, and

recycling waste Comprehensive value stream

analysis of selected processes in order to increase efficiency

Thinking ahead, shaping the future • Customers and market requirements • Statutory requirements • Staff interests • Occupational Health and Safety • Integrating the value chain • Business ethics

AT&S as a learning organisation • Internal and external training and

continuing education programmes for staff

• Recruiting and retaining specialist staff

• Using knowledge to strengthen motivation

Sustainability – indicators and aspects

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft | Fabriksgasse13 | A-8700 Leoben Tel +43 (0) 3842 200-0 | E-mail info@ats.net

www.ats.net

Many thanks for your attention