ATS Automation Secures $60 Million EV Order Booking and Provides Global Operations Update

Cambridge, ON, April 8, 2020 /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced it has received an Order Booking from a global automotive manufacturer for a fully automated battery assembly system for their North American manufacturing operations.

This enterprise program is valued at approximately $60 million and includes the design, build, and installation of two turnkey battery assembly systems. These systems are critical components of the customer's electric vehicle (EV) strategy. The Order Booking will be recorded in the Company's fourth quarter of fiscal 2020 and is expected to be delivered over the next 18 months.

"Our ability to develop a low-risk solution based on our demonstrated EV expertise and technology were critical in the customer's decision to award ATS this strategic program," said Andrew Hider, Chief Executive Officer. "The program will be built on our best-in class SuperTrakTM linear motion technology. We look forward to delivering on this important project, and the opportunity to expand this program in the future."

Update on Global Operations

ATS today provided an update on its global operations and the impact of the ongoing healthcare crisis caused by the recent novel coronavirus ("COVID-19") outbreak. COVID-19 has impacted and could further impact the Company's operations and the operations of customers and suppliers as a result of quarantines, facility closures, and travel and logistical restrictions in connection with the outbreak.

"The global pandemic has caused uncertainty in our end-markets, which we expect will impact customer ordering activity," said Mr. Hider. "While some customers are proceeding with strategic projects, as evidenced by the enterprise program we announced today, others have shut down their operations and some are placing ongoing programs on hold or deferring new projects to focus on preserving liquidity."

Mr. Hider continued, "Our first priority is to ensure the safety, health and mental wellness of our employees and ensuring they are informed on all matters related to COVID-19 and are equipped with the necessary resources. We are similarly concerned for the well-being of our customers, suppliers, and our communities, and we are committed to taking precautionary measures recommended by global health authorities. We have a pandemic response team that is working around the clock to coordinate our global approach and ensure local regulations are followed."

Measures implemented to enable social distancing across ATS' operations, including remote work and flexible schedules, have caused the Company to operate below full capacity. Travel restrictions and closures of customer facilities have disrupted customer projects and service activity. These factors are expected to negatively impact fourth quarter operating margins and are expected to impact the Company's operating results in the first quarter of fiscal 2021.

With travel restrictions in place, the Company is leveraging innovative technologies such as IlluminateTM Manufacturing Intelligence and Enhanced Remote Support to assist customers in maximizing overall equipment efficiency and operational efficiency and productivity of their operations. These initiatives are intended to help mitigate disruption.

Management is focused on cost-containment measures and the preservation of liquidity. The duration and impact of the global pandemic is uncertain at this time. However, the Company entered its fourth fiscal quarter in a favourable position with Order Backlog of $939 million and a strong balance sheet featuring cash of $117.7 million together with $647.5 million of unutilized multi-purpose credit available as at December 29, 2019.

About ATS

ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services, including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, chemicals, consumer products, electronics, food, beverage, transportation, energy, and oil and gas. Founded in 1978, ATS employs approximately 4,500 people at 23 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

Source ATS Automation Tooling Systems Inc.

For Further Information:
Ryan McLeod
Vice President
Corporate Controller
519 653-6500