AT&S

Ladies and gentlemen, thank you for standing by. I'm Anna Egelstrom, your operator today. Welcome and thank you for joining the ETI&S conference call on the results for the fiscal year 2025 and 26. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press 9 and the star key on your telephone. If any participant has difficulties hearing the conference, please press 0 and the pound key for operator assistance. I would now like to turn the conference over to Philipp.

Thank you, Anna. Good afternoon or morning, ladies and gentlemen. Welcome to the AT&S full year 2526 conference call. With us today are Michael Mertin, CEO, and Gerrit Steen, CFO. Mr. Mertin will give an overview of the key developments as well as a market update. Afterwards, Mr. Steen will comment on the financial figures and our guidance. As Anna mentioned, the presentation will be followed by a Q&A session. Now, I would like to hand over to Mr. Mertin. The floor is yours.

Thank you very much, ladies and gentlemen. It's a pleasure to be here again for my second conference call on the AT&S results for fiscal year 2025-2026. And it's a very special pleasure for me, because last year I was absolutely new in my function, just a couple of days in the position of the new CEO, but I gave you a promise at this point in time. My promise was, first of all, I will never tell you things and tell the capital market things we can't fulfill. Second, I promised to have a focus on cash flow. The company needed cash at this point in time. Thirdly, my promise was we will redirect the company towards a path of sustainable, profitable growth. I don't want to say now mission completed. That's definitely not the case. So the mission is still ongoing. But you can see the first steps. You saw it already step by step, quarter by quarter, all these improvements over the years. And now we proudly deliver you the total results of 2526. As you can see on page two of the presentation, we ended up with a total revenue of about 1.8 billion euros. This is plus 21% in constant currency, you know that the dollar exchange rate was going up and down during the year. So constant currency is a little bit easier. For better comparison, you see the previous year's number was 1.6 billion. Okay, pretty nice growth. But more than this, we delivered profitability, 49% versus the comparable previous year, with an EBITDA margin now of 23.3%. So the EBITDA was 418 million euros, significantly higher than the year before. And I promised you not just to have a look on EBITDA, but to have a look on real earnings, and this especially means on EBIT and net profitability. You've seen the improvement over the entire year. Gary Stain will show you the details later on. But you've seen the improvement quarter by quarter, ending up with a total positive EBIT of 66 million for the entire year. plus of 238% versus the comparable structure the last year. The EBIT margin still can be further improved, and you will see we will do it. You see it with the outlook of 3.7%. More important for me than this is that we already delivered net profit in the last two quarters of the last fiscal year. Maybe the most important number is the operating free cash flow. The company was losing cash. In a situation where our shareholder equity was relatively low and the earnings have been negative. Cash is king. So we turned around our operating free cash flow from previously minus 498 to plus 236 million euro. This is a delta of roughly 700 million. And please compare it to our total revenue of 1.8 billion. So cash flow, profitability, growth, customer orientation is key nowadays in the entire company. We had a switch around, we changed incentive systems, we changed our structure towards customers and the entire philosophy of the company is focusing away from being a provider of printed circuit boards towards an innovation partner for our customers for new products and sharing road maps with all of our key customers in both of our segments in the ES business unit as well as in NE. So the more or less classical, you will see it a little bit later, also advanced business of printed circuit boards and embedding and as well for the substrate business in the business unit at NE. Put a tick on this, this was delivered as promised. Hopefully you will agree to this. If you follow me to the next page, page three, you will see that we outperformed the markets. The market development of printed circuit boards was a plus of roughly 11% and for substrates of roughly plus 12% average. And our total growth, even in the situation where we have this turnaround of the company where we had the changes in the management outperformed these market environments. New management. You see it on page number four. You've seen me, hopefully, already now for more than one year. I started May 1st in 25, but now guided by two colleagues, new CFO, Gerrit Stehn, And honestly, when I discuss the numbers, when I sit next to him in my office, the feeling is that we are working together since years now. And the same in an opposite direction, following technology, following innovation, following the entire competence of our production technology. Our CTO, Peter Griesnig, is deeply involved and is one of the key experts worldwide for our technology, our markets. He is recognized by all of the major customers and he knows about production as well because he built the first plant in China. He was responsible for that. So we as a team, we are now leading the company and the big advantage is we share the same vision on the future of the company. It's relatively easy now for us to join and to follow and develop the same strategic guidelines for the company. And we do not have any arguments anymore in the board coming from different positions of different business units.