Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q2 2023 Earnings Presentation
16 slides from Oc Oerlikon's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Financial Results
Q2 2023 Financial Results 3 August 2023 Page 1
Slide 2: Overview Q2
Overview Q2 8% organic sales growth in Surface Solutions despite challenging environment; Filament market with limited activity for Polymer Processing Solutions FX with significant headwind: -15.0% ▪ Order intake -8.3% YoY at constant FX, FX adj.: -8.3% including +5.7% from M&A 1) Vs CHF Since Jan 2
Slide 3: End markets impacted by increasingly challenging macro conditions
End markets impacted by increasingly challenging macro conditions Polymer Processing Solutions Surface Solutions Filament Non-Filament General Ind. & Tooling Automotive Luxury Aviation 1) 31% of 2022 Group sales 19% 25% 13% 7% 6% Customers delay Flow Control Softening Mixed picture Growth Continued
Slide 4: Surface Solutions with sales growth in Q2, pricing and cost actions to support margins in H2
Surface Solutions with sales growth in Q2, pricing and cost actions to support margins in H2 Markets Orders Sales Operational EBITDA ▪ Cautious customer purchasing behavior ▪ Increased +21.9% FX adjusted; ▪ Increased +20.1% FX adjusted; ▪ Impacted by FX, negative sales mix and continued in Q2 due to
Slide 5: Polymer Processing Solutions impacted by order postponements; non-filament and cost measures on-track
Polymer Processing Solutions impacted by order postponements; non-filament and execution on cost measures on-track Markets Orders Sales Operational EBITDA ▪ Filament market impacted by customers ▪ Impacted by order postponements in ▪ Supported by continued deliveries from ▪ Margin impacted by FX, sa
Slide 6: Focus on Cash Flow and ROCE
Focus on Cash Flow and ROCE Operating FCF Underlying ROCE impacted by Net Working Capital impacted by customer advances H1’23 ▪ Operating FCF transitorily impacted by NWC Q2 LTM ▪ Reached 8.3% operational ROCE 1) when excluding Riri, slightly down YoY mainly due to less customer advances in Polymer
Slide 7: Updated 2023 guidance
Updated 2023 guidance Updating sales guidance for FX - confirming organic guidance Sales guidance as per Feb 2023 Updated sales guidance ▪ Continue to expect organic 2022 2.91bn 2022 2.91bn mid-single digit % sales decrease at constant FX, 100- driven by postponed Riri Depending on ~135 150m investm
Slide 8: Q2 conclusion: Managing short-term headwinds
Q2 conclusion: Managing short-term headwinds … ▪ Surface Solutions with 10% sales growth in H1 (organic, FX adj.) despite contracting manufacturing PMIs ▪ Cost and pricing measures to positively impact H2 margins Managing short-term headwinds ▪ Polymer Processing Solutions executing in difficult env
Slide 9: ... and execute on mid-term growth strategy
… and execute on mid-term growth strategy Demand driven by sustainability and efficiency ▪ Drive geographic expansion in Americas (H1: +13% FX adj.) and Asia (H1: +3% FX adj.) supported by new organization Surface ▪ Leverage core competencies into new areas (H1: battery shielding, Solutions Riri/lux
Slide 10: cerlikon
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Slide 11: Appendix
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Slide 12: Q2 reconciliation of profitability measures
Q2 reconciliation of profitability measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions Q2' 23 Q2' 22 Q2' 23 Q2' 22 Q2' 23 Q2' 22 EBITDA 110 125 62 61 44 65 Depreciation -35 -34 -27 -26 -6 -7 Impairments -0 -1 -0 -1 -0 0 EBITA 75 90 35 35 37 58 Amortization of Acquired
Slide 13: YTD reconciliation of profitability measures
YTD reconciliation of profitability measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions HY 23 HY 22 HY 23 HY 22 HY 23 HY 22 EBITDA 224 237 120 118 99 123 Depreciation -66 -67 -51 -52 -13 -14 Impairments -0 -1 0 -1 -0 0 EBITA 158 170 69 65 86 109 Amortization of Acquir
Slide 14: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) 2022 H1'23 12.1% EBIT 176 164 - Total current income tax -89 -95 10.0% 8.3% excl. - Total deferred income tax 20 30 M&A 8.2% NOPAT 107 99 7.6% 7.0% 6.9% 5.7% Net Operating Assets 2'063 2'801 + Current income tax receivables 19 26 + Deferred tax assets 117 129 3.1% 5
Slide 15: Investor Relations
Investor Relations Stephan Gick Stephan.gick@oerlikon.com +41 58 360 98 50 ir@oerlikon.com www.oerlikon.com/en/investors
Slide 16: 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