Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q2 2021 Earnings Presentation
20 slides from Oc Oerlikon's earnings presentation, Aug 3, 2021
Slide 1: Q2 2021 Financial results
Q2 2021 Financial results 3 August 2021 Page 1
Slide 2: Agenda
Agenda 1 Business Update 2 Q2 Financials 3 Q&A Page 2
Slide 3: Summary Q2
Summary Q2 Solid execution – closed 2 accretive M&A deals – raising FY’21 guidance Financials 647m (+7%) 628m (+23%) 111m (+98%) 58m (>+100%) Order intake Sales Operational EBITDA Operational EBIT ▪ Strong operational execution with robust sales and EBITDA growth in Q2, driven by positive momentum i
Slide 4: 2021 markets: End Markets With Varying Recovery Profiles
End Markets With Varying Recovery Profiles Polymer Processing Tooling General Industrial Automotive Aviation 15% 16% 7% Solutions 14% 47% of 2020 Group sales 2021 markets Growth in filament High Mid - High Stable in H2’21 single-digit on low base and non-filament single-digit single-digit ▪ Large fi
Slide 5: Continued Focus on Strategic Priorities
Continued Focus on Strategic Priorities Sustainable Cost Disciplined Capital Innovation Containment Allocation ▪ Drive global technology leadership with ▪ Focus on cost containment and reinvest into ▪ Diversify organically into adjacent markets and effective R&D profitable growth enhance structural
Slide 6: INglass Acquisition Driving Growth and Diversification
INglass Acquisition Driving Growth and Diversification INglass - leader Flow control a critical 1 in hot-runner systems 2 technological part at Oerlikon ▪ INglass is an innovation and market leader in the supply of hot-runner systems, ▪ Oerlikon has extensive flow control know-how across the value c
Slide 7: Acquiring Coeurdor to Expand in Growing High-End Deco
Acquiring Coeurdor to Expand in Growing High-End Deco Coeurdor – leading Oerlikon to 1 supplier to luxury fashion industry 2 expand in high- end deco ▪ Coeurdor is a manufacturer of metalware with a focus on surface treatment ▪ To date, Oerlikon is primarily present in high-end deco applications suc
Slide 8: Financial Overview Q2
Financial Overview Q2 Sales and EBITDA growth driven by both Divisions Order intake +7.2% ▪ Order intake up +7% driven by market recovery in Surface FX adj: +6.3% Solutions; including +3% M&A 1) 647 Orders ▪ Polymer Processing Solutions showed robust performance, 604 YoY trend was impacted by high Q
Slide 9: Surface Solutions with Recovering Markets and Cost Containment
Surface Solutions with Recovering Markets and Cost Containment Market Orders Sales Operational EBITDA ▪ Markets recovering at varying rates ▪ Higher order intake YoY and ▪ Increased +23% at constant FX driven ▪ Increased +229% YoY sequentially by recovery in tooling, automotive and ▪ Automotive with
Slide 10: Polymer Processing Solutions With Substantial Sales and Margin Increase
Polymer Processing Solutions With Substantial Sales and Margin Increase Market Orders Sales Operational EBITDA ▪ Favorable market conditions in ▪ Lower order intake YoY due to Q2’20 ▪ Up +21% at constant FX supported by ▪ Up +31% driven by higher sales filament: further increased order books having
Slide 11: Focus on Cash Flow and ROCE
Focus on Cash Flow and ROCE Operating FCF ROCE impacted by Net Working Capital improving H1’21 ▪ Operating FCF impacted by NWC; expect Q2 LTM ▪ Improvement supported by cost actions NWC impact to partially reverse towards YE; ▪ On FY’19 levels when including 12 on-track with FY expectation 200 month
Slide 12: Focus on Balance Sheet
Focus on Balance Sheet Solid leverage and equity ratios Net debt / operational Equity ratio EBITDA ratio Commitment to strong balance sheet 1.1 33% ▪ Commitment to maintaining a prudent financial policy and strong balance sheet ▪ Expect net debt / EBITDA ratio to improve towards YE ▪ Successfully pl
Slide 13: Raising FY'21 guidance after strong H1
Raising FY’21 guidance after strong H1 Driven by strong momentum, solid execution and accretive M&A Sales Operational EBITDA margin ▪ Expect order intake CHF~2.75 bn ▪ Sales up +10% driven by strong Group momentum and acquisitions 2’350 - ~2’650 15.5% - ~16.5% ▪ Higher margin (+75bps) supported by 2
Slide 14: cerlikon
cerlikon
Slide 15: Appendix
cerlikon Appendix
Slide 16: Q2 Reconciliation of Profitability Measures
Q2 Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions Q2’21 Q2’20 Q2’21 Q2’20 Q2’21 Q2’20 EBITDA 112 34 62 -4 49 37 Depreciation -33 -33 -27 -28 -6 -5 Impairments -1 -- -1 -- -0 -- EBITA 77 1 34 -32 43 33 Amortization of Acquired Intan
Slide 17: YTD Reconciliation of Profitability Measures
YTD Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions HY’21 HY’20 HY’21 HY’20 HY’21 HY’20 EBITDA 200 92 115 35 82 56 Depreciation -65 -67 -53 -56 -10 -9 Impairments -1 -1 -1 -1 -- -- EBITA 134 25 61 -22 71 46 Amortization of Acquired
Slide 18: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) HY 2021 FY 2020 12.1% EBIT 183 73 - Total current income tax -38 -29 - Total deferred tax income 0 6 8.2% NOPAT 146 51 7.0% 6.4% Net Operating Assets 2,341 1,637 5.7% + Current income tax receivables 36 31 + Deferred tax assets 147 139 3.1% - Current income tax paya
Slide 19: Investor Relations
Investor Relations Stephan Gick Stephan.gick@oerlikon.com +41 58 360 98 50 Peter Dickson Peter.dickson@oerlikon.com +41 58 360 96 39 ir@oerlikon.com www.oerlikon.com/en/investors
Slide 20: Disclaimer
Disclaimer OC Oerlikon Corporation AG, Pfäffikon, (together with its affiliates hereinafter referred to as “Oerlikon”) has made great efforts to include accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressed or implied, as to the trut