Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — FY2024 Earnings Presentation
35 slides from Oc Oerlikon's earnings presentation, Feb 18, 2025
Slide 1: 2024 Financial Results
2024 Financial Results 18 February 2025 Page 1
Slide 2: Agenda
Agenda 1 Strategy Update & 2024 Overview 50% cost savings through reconditioning 2 Financials & Outlook 3 Q&A 20x tool life extension through coating 5% efficiency increase Page 2 through coating
Slide 3: Announcing well-planned generational change as Oerlikon prepares for pure play future
Announcing well-planned generational change as Oerlikon prepares for pure play future Dirk Linzmeier Background ▪ 2022-25: CEO of TTTech Auto Chief Operating Officer & member of the EC ▪ 2017-22: CEO of ams OSRAM Automotive Lighting Systems (21-22) and OSRAM Continental (17-21) Joining Oerlikon: Apr
Slide 4: Oerlikon finalizing portfolio transformation started 10 years ago
Oerlikon finalizing portfolio transformation started 10 years ago From 5 Divisions in 2014 … To 2 Divisions since 2019 2024: Initiating Finalization of ▪ Limited synergies given Surface different end markets, Transformation Solutions geographies, customers, Market Leaders in business models and cycl
Slide 5: Made Surface Solutions resilient and geared towards growth
Made Surface Solutions resilient and geared towards growth … 2013 2024 Mid-term ▪ PVD/CVD Develop Diversified PVD • Luxury technology ▪ Thermal Spray • Semiconductor technologies ▪ Additive Manufacturing • E-Mobility Energy Luxury Auto- Tooling motive Added growth Sales General Innovate markets indu
Slide 6: … and ensured attractive positioning
… and ensured attractive positioning Surface technology leader in sweet spot with high barriers to entry and strong USP #1 AI Market leader in high-tech At technology forefront since Highly scalable global specialized surface solutions 1946 (PVD); global player 2 footprint enabling leveraging of Str
Slide 7: Accelerated innovation with successful market introductions in 2024
Accelerated innovation with successful market introductions in 2024 Next generation coating Next generation equipment Next generation Matrix ALCRONA EVO INVENTA kila Materials Components ▪ Increasing tool lifetime by >30%, enabling ▪ Next level of flexibility, productivity and ▪ High-performance mat
Slide 8: Drove market leadership in Polymer Processing Solutions
Drove market leadership in Polymer Processing Solutions … Innovated & developed the market Drove growth through-the-cycle Enabled 5% manmade fibers textile market growth Filament equipment market with recovery ahead +2.7% CAGR 01-23 >1bn Clothed +5% Manmade fibers CAGR 2001-23 Oerlikon sales 2016-23
Slide 9: ... and retained attractive positioning
... and retained attractive positioning Textile machinery equipment leader positioned in niche markets with high barriers to entry #1 -90% less water consumption for t- shirts made from manmade fibers compared to cotton Leading equipment manufacturer for At technology forefront Enabling sustainabili
Slide 10: Pure play rational market leaders in niche markets with high barriers to entry
Pure play rational 2 market leaders in niche markets with high barriers to entry – but no synergies Surface Polymer Processing Solutions Solutions ▪ Market leader in cutting-edge surface technology ▪ Market leader for equipment to produce manmade yarns ▪ Highly fragmented market; >30k customers with
Slide 11: Separating Barmag (Manmade Fibers) over next 24 months
Separating Barmag (Manmade Fibers) over next 24 months 2024: Prepared separation Board and management evaluated options for separation with the aim of value creation for all stakeholders Separating Barmag over Initiated and progressed organizational separation: Manmade next 24 months Fibers is set-u
Slide 12: Looking back: 2024 with challenging macro environment impacting Oerlikon
Looking back: 2024 with challenging macro environment impacting Oerlikon Macro challenges … … weighing on global industrial production since mid 2022 Geopolitical tensions Contracting Manufacturing PMIs: + Subdued Chinese economy + Growth Inflation + China 50 Cautious consumer spending US Contractio
Slide 13: Subdued end markets
Subdued end markets Surface Solutions Polymer Processing Solutions General Ind. & Tooling Automotive Luxury Aviation Filament Non-Filament 32% of 2024 Group sales 15% 7% 9% 23% 14% 2024 markets 2025E markets 2024 2025E 2024 2025E 2024 2025E 2024 2025E 2024 2025E ▪ Slowing PMI momentum in ▪ Global li
Slide 14: Continued operational execution despite challenging environment
Continued operational execution despite challenging environment Strengthen Drive Improve resilience sustainability profitability +8% CAGR 22-24 in Americas 33% overhead savings since 2019 On track with 2030 ESG targets since intro of new geographic organization 2 supported by continued digitalizatio
Slide 15: Sustainability is in Oerlikon's DNA
Sustainability is in Oerlikon’s DNA 2030 ESG targets Oerlikon’s coatings for Tooling and Aviation on-track save >100% of Swiss CO2 emissions Scope 1 & 2: 20x lifetime extension 1 of a metal tool through ▪ 100% electricity from renewable sources used in 23 sites, with improving mix coating… resulting
Slide 16: Conclusion: Executing operationally and strategically despite challenging end markets
Conclusion: Executing operationally and strategically despite challenging end markets 2 attractively positioned divisions with mid-term growth drivers well intact On track with pure play strategy execution; becoming agile / focused and creating two distinct investment opportunities Executing operati
Slide 17: Financials & Outlook
Financials & Outlook Markus Richter CFO
Slide 18: 2024 financial overview
2024 financial overview Strong execution in challenging markets ▪ Stable order intake (-0.5%) YoY at constant FX, including +1.3% from M&A 1 -3.5% FX adj.: -0.5% ▪ Surface Solutions +0.5% YoY at constant FX despite slowing end markets (PMIs) 2’457 2’372 Orders ▪ Polymer Processing Solutions stabiliz
Slide 19: Strengthening the base for profitable growth
Strengthening the base for profitable growth Admin expenses ▪ 33% overhead savings since 2019, despite 3 acquisitions -33% 276 Cost ▪ Proactive cost actions initiated in Q4’22 184 ahead of filament headwinds efficiency ▪ Continued focus on efficiency incl. digitalization, automatization and footprin
Slide 20: Surface Solutions with stable organic sales and improving margin despite contracting PMIs
Surface Solutions with stable organic sales and improving margin despite contracting PMIs Markets Orders Sales Operational EBITDA ▪ Continued cautious customer ▪ Stable at constant FX (+0.5%); including ▪ Stable at constant FX (+1.7%), incl. ▪ Margin improved +90bps YoY purchasing behavior due to ma
Slide 21: Polymer Processing Solutions with order stabilization and strong cost control
Polymer Processing Solutions with order stabilization and strong cost control Markets Orders Sales Operational EBITDA ▪ Filament slightly improved in 2024 YoY ▪ Stabilizing YoY at CHF 896m: -2.1% in ▪ Decreased -23.0% FX adjusted YoY, ▪ Strong margin despite cyclically low after difficult market env
Slide 22: Focus on Cash Flow and ROCE
Focus on Cash Flow and ROCE Solid operating FCF ROCE impacted despite Filament downturn by challenging environment 2024 ▪ Operating FCF strongly improved to CHF 162m YoY, 2024 ▪ ROCE impacted by current filament downturn which led to transitory despite lower EBITDA from filament downturn lower opera
Slide 23: Focus on balance sheet and dividend
Focus on balance sheet and dividend Net debt / operational EBITDA transitory Commitment to maintaining balance sheet higher strength ▪ Increased to 2.8x, driven by Polymer ▪ Expect YE’25 leverage ratio to be stable YoY Processing Solutions’ downturn transitorily ▪ Continued tight focus on cost, NWC,
Slide 24: Leading ESG ratings
Leading ESG ratings 1 Oerlikon ESG rated top 20% within industrial sector Sustainalytics 2 MSCI EcoVadis ISS ESG External medium medium AAA 66 C C validation and risk risk Silver recognition AA 61 C- Silver A high <50 risk Sector 2022 2025 Sector 2023 2025 Sector 2023 2024 Sector 2023 2024 average s
Slide 25: 2025 Guidance
2025 Guidance Continued operational execution in challenging end markets 1 2 Sales growth EBITDA margin Flat to low single ▪ Sales stable to slightly improving supported by recent order stabilization in Barmag digit % growth and Surface Solutions’ continued execution despite soft end markets 2’372 1
Slide 26: cerlikon
cerlikon
Slide 27: Appendix
Appendix
Slide 28: 2024 key financials with HRSflow reclassified to Surface Solutions (unaudited)
2024 key financials with HRSflow reclassified from Polymer Processing Solutions to Surface Solutions (unaudited) Representing baseline for 2025 quarters following Barmag (Manmade Fibers) having been set-up as largely independent organization since beginning of 2025 Page 28
Slide 29: Improving price-cost spreads of filament customers
Improving price-cost spreads of filament customers 500 300 FDY POY 100 Improving spreads of 0 customers -100 Precondition for filament customers to invest into new Barmag equipment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Chart representing average annual selling price of polyester pro
Slide 30: On-track with 2030 ESG targets
On-track with 2030 ESG targets 2024 updates Progress towards 2030 targets ▪ GHG emission intensity (scope 1&2) up from 0 54 to 61 YoY, due to lower sales and M&A; Reduce emission based on 2023 sales level, emissions intensity intensity (scope 1&2) in relevant Reduce % of 21% would be slightly down f
Slide 31: 2024 reconciliation of profitability measures
2024 reconciliation of profitability measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 EBITDA 369 384 263 230 108 143 Depreciation -115 -126 -88 -97 -24 -26 Impairments -1 -33 -1 -27 -0 -5 EBITA 253 225 174 106 84 112 Amortization
Slide 32: Q4 reconciliation of profitability measures
Q4 reconciliation of profitability measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions Q4' 24 Q4' 23 Q4' 24 Q4' 23 Q4' 24 Q4' 23 EBITDA 97 64 64 48 37 15 Depreciation -29 -30 -22 -23 -6 -6 Impairments -1 -32 -1 -27 -0 -5 EBITA 67 2 41 -2 30 4 Amortization of Acquired
Slide 33: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) 2023 2024 12.1% 10.8% EBIT 105 168 - Total current income tax -67 -69 - Total deferred income tax 25 22 8.2% 7.6% NOPAT 63 121 7.0% 6.5% 5.7% 5.8% Net Operating Assets 2'429 2'423 + Current income tax receivables 27 24 5.1% 3.1% 5.3% reported + Deferred tax assets 1
Slide 34: Investor Relations
Investor Relations Stephan Gick Stephan.gick@oerlikon.com +41 58 360 98 50 Aymeric Jamin Aymeric.jamin@oerlikon.com +41 58 360 96 59 ir@oerlikon.com www.oerlikon.com/en/investors
Slide 35: 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