- Revenues fall to EUR 1,550 million in the 2023/24 financial year (previous year: EUR 1,791 million)
- Adjusted EBITDA margin of 24.8%
- Production of semiconductor packaging substrates in Kulim and Leoben will begin at the end of the 2024/25 financial year
- Outlook for the 2024/25 fiscal year: revenues of €1.7 billion to €1.8 billion, adjusted EBITDA margin of 25 to 27 percent
- Strengthened the efficiency improvement plan and reduced the number of employees by a total of 1,000
- Artificial intelligence is an important growth driver for future business success
- Customer diversification continues to be successful
- The new factories in Kulim and Leoben will double revenues by the 2026/27 financial year
LEOBEN, May 14, 2024 /PRNewswire/ -- After a challenging market environment in the 2023/24 fiscal year, AT&S experienced strong growth in the second quarter, the notebook and PC market recovered slightly due to relatively weak demand in some segments in the second half of the year, especially in mobile devices and industrial applications, but demand in the server market slowed further.
Commenting on the company's prospects and challenges, AT&S CEO Andreas Gerstenmayer said: "We believe that AT&S will return to growth in the new fiscal year 2024/25. The overall market recovery in our industry is also expected to have a positive impact on demand by the second half of the 2024/25 financial year, thereby increasing capacity utilisation at our existing facilities. The volume production of our two new factories in Kulim and Leoben at the end of the fiscal year will support business growth and will help us further diversify our semiconductor substrate customer portfolio and meet the needs of more applications in data management and artificial intelligence." In response to continued price pressures, we have strengthened our ongoing efficiency program and will reduce the number of employees at our existing production sites by 1,000, in addition to many other cost-cutting measures. "
Compared to the previous year's record performance, consolidated revenues in the 2023/24 financial year decreased by 13 percent to EUR 1,550 million (previous year: EUR 1,791 million). Consolidated revenue decreased 11% after adjusting for currency effects. This result is mainly due to fundamental changes in the economic environment. Revenue from the Electronic Product Solutions (BU ES) business unit was lower than the strong performance of the prior-year quarter due to unfavorable product mix and high pricing pressures; The Microelectronics Business Unit (BU ME) recorded a slight decline in revenue due to lower server demand. In the 2023/24 financial year, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 26 percent to EUR 307 million from EUR 417 million in the prior-year quarter. The decrease in earnings was mainly due to lower consolidated income. Of course, the negative impact of the current difficult market environment has been mitigated to a certain extent by the company's ongoing efficiency enhancement plan.
| Key figures | ||||||
| million euros | Q42023/24 | Q4 2022/23 | Change in % | FY 2023/24 | FY 2022/23 | Change in % |
| Sales | 345 | 302 | +14 % | 1.550 | 1.791 | -13 % |
| EBITDA | 39 | 0.5 | >+100% | 307 | 417 | -26 % |
| Adjusted EBITDA * | 63 | 17 | >+100% | 384 | 470 | -18 % |
| EBITDA Margin (in %) | 11.3 | 0.2 | - | 19.8 | 23.3 | - |
| Adjusted EBITDA Margin (in %)* | 18.2 | 5.7 | - | 24.8 | 26.2 | - |
| EBIT | -33 | -67 | - | 30 | 146 | -79 % |
| Adjusted EBIT 1* | -7 | -50 | -95 % | 112 | 201 | -53 % |
| 息税前利润率 (in %) | -10 | -22 | - | 2,0 | 8,2 | - |
| Adjusted EBIT margin (in %)1* | -2 | -17 | - | 7,2 | 11,2 | - |
| Profit for the period | -44 | -85 | - | -37 | 137 | - |
| Return on capital | n.a. | n.a. | - | 0,6 | 6,6 | - |
| Net capital expenditure | 156 | 193 | -19 % | 855 | 996 | -14 % |
| Cash flow from operating activities | 159 | -7 | - | 657 | 476 | +38 % |
| Earnings per share (in €) | -1.25 | -2.29 | - | -1.41 | 3.03 | - |
| Number of Employees ** | 13,549 | 14,991 | -10 % | 13,828 | 15,280 | -10 % |
| * After adjusting for start-up costs | ||||||
| ** Average number of employees as of March 31, 2024: 13,507 |
In view of the current volatile market environment, AT&S management has decided not to proceed with the capital increase for the time being, and negotiations with potential investors have been concluded.
In order to further strengthen the Group's position, AT&S plans to sell its plant in Ansan, South Korea, which serves the medical market, and has decided to solicit a binding offer for the sale. From the Group's perspective, the Ansan plant generated revenues of EUR 76 million in the 2023/24 financial year (previous year: EUR 64 million) and EBITDA of EUR 38 million (previous year: EUR 28 million). In the 2023/24 financial year, property, plant and equipment totalled EUR 37 million (previous year: EUR 38 million). Based on the non-binding offer obtained and the strong interest in the transaction, AT&S is now seeking a binding offer. Further decisions will be made by the company's management in the coming months based on the results.
Against the backdrop of the current challenging market environment and the ongoing investment plan, the company's management will propose to the Annual General Meeting on July 4, 2024 that the dividend for the 2023/24 financial year (same period of the previous year: EUR 0.40 per share) be not paid, subject to the approval of the Supervisory Board.
Market environment expectationsAt present, AT&S expects the following market segments: In the mobile device segment, overall market conditions are weak and demand is expected to recover only slightly, and this segment will remain a challenge for AT&S. In contrast, the modular printed circuit board business will continue to grow aggressively.
Although the printed circuit board market in the automotive sector is under pressure due to high supply chain inventory levels, among other reasons, the overall trend is expected to increase in the medium term as the content of electronic components per vehicle continues to increase. In the industrial sector, a slight recovery in the market is expected in 2024.
The notebook market is volatile, especially due to seasonal factors. In the semiconductor substrate market, the demand for laptops is expected to be slightly higher in 2024 than in 2023. This will increase the demand for semiconductor package substrates, and inventories are now normalized.
As more and more investments in the server market are currently shifting towards AI-focused high-priced products, inventory is decreasing at a slower rate than initially anticipated. By the second half of the 2024/25 financial year, inventory levels should return to normal, and application demand for server products is expected to pick up again. This development is also reflected in the latest order plans from AT&S' major customers. AT&S will benefit from the continued change in product mix due to expected changes in product architecture, as well as the trend towards more technologically advanced semiconductor substrates.
2024/25 wealth Annual outlookOver the past few months, some of the industries served by AT&S have stabilized. On this basis, demand is expected to recover, especially in the second half of the 2024/25 financial year. Nonetheless, the company believes strong price pressures will continue. In response to this pressure, companies will continue to implement and further focus on efficiency initiatives that are already underway. In addition to comprehensive cost-cutting measures, a total of 1,000 employees will be laid off at the existing site.
After high investments of €996 million in the 2021/22 and 2022/23 financial years, respectively, net capital expenditure will fall significantly in the coming years. Depending on the market environment and the progress of the project, the management plans to invest around EUR 500 million in the 2024/25 financial year. The majority of the investment will be used for the production of semiconductor substrates at the new plants in Kulim and Leoben. With the two plants starting high-volume production by the end of the 2024/25 financial year, AT&S will further expand its customer base for semiconductor substrates.
AT&S expects annual revenues of between €1.7 billion and €1.8 billion for the 2024/25 financial year, adjusted for around €80 million from the start-up of new production facilities in Kulim and Leoben, and an adjusted EBITDA margin of between 25 and 27 percent.
2026/27 wealth year outstanding achievement guideAndreas Gerstenmayer said: "AT&S will grow with the AI industry by providing technologies for AI, from the carrier boards of AI processors to the efficient energy management solutions for IT infrastructure such as servers and data centers. AT&S is also a popular partner for AI technology on devices equipped with AI functions, such as smartphones and laptops. We have won new customers, AMD, the global market leader in semiconductors, and three other well-known customers in the U.S. specializing in AI solutions, all of whom rely on AT&S technology. AT&S has become a technology partner for the industry and our customers, who value our innovative strength, reliability and solutions, which is why we have successfully won new customers in different cutting-edge applications."
Despite the challenging global economic situation, the expansion of production capacity in Kulim and the expansion of the Leoben site are still being actively promoted. However, based on the latest market forecasts, AT&S adjusted its guidance for the 2026/27 financial year on 10 May 2024. For now, AT&S assumes revenues of around EUR 3.1 billion for the 2026/27 financial year (previous forecast of EUR 3.5 billion) and expects an EBITDA margin of between 27 and 32 percent. This forecast does not include potential revenues from AT&S' second plant in Kulim. The management closely monitors the current situation, responds to developments in a timely manner and makes strategic adjustments.
back Location Technology & Systems Technologies, Inc – Advanced technology and solutions AT&S is one of the leading European and global manufacturers of semiconductor substrates and high-end printed circuit boards. The Group is committed to the production of forward-looking products and positions its core markets in the industrial sector: semiconductor substrates, mobile devices, automotive and aerospace, industrial and medical. As a fast-growing global company, AT&S has production sites in Austria (Leoben, Philing), India (Nanyan Goode), China (Shanghai, Chongqing) and South Korea (Ansan, near Seoul). AT&S is currently building a new production site for high-end semiconductor substrates in Kulim, Malaysia, while in Leoben, AT&S is building a European technical center that includes mass production. The company owns about 13,500 Multiple employees. For more information, please visit our website 。