Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q3 2018 Earnings Presentation
26 slides from Oc Oerlikon's earnings presentation, Oct 30, 2018
Slide 1: Strong growth momentum continued in all businesses – guidance confirmed
Strong growth momentum continued in all businesses – guidance confirmed Dr. Roland Fischer, CEO Jürg Fedier, CFO Q3 2018 Business Update October 30, 2018
Slide 2: Agenda
Agenda 1 Q3 2018 Business Update 2 Q3 2018 Financial Review 3 Outlook 4 Appendix Page 2 Oerlikon Q3 2018 business update October 30, 2018
Slide 3: Continued strong quarterly growth and good operating profitability – outlook confirmed
Continued strong quarterly growth and good operating profitability1 – outlook confirmed 1 ▪ Group order intake up 22.2 % – Group sales up 28.9 % Achieving strong top-line growth ▪ Driven by growth in Surface Solutions (>10 %) and maintained momentum in Manmade Fibers (>50 %) ▪ Group’s EBITDA margin
Slide 4: Surface Solutions Segment – Delivering good top-line growth and maintaining attractive profitability level
Surface Solutions Segment – Delivering good top-line growth and maintaining attractive profitability level OPERATIONAL PERFORMANCE MARKET DEVELOPMENT 5% ▪ Good growth in orders and sales driven by Tooling, ▪ Tooling market with continued solid demand in all Asia / Pacific Automotive, Aviation and Ge
Slide 5: Automotive – a structural growth market for the Surface Solutions Segment
Automotive – a structural growth market for the Surface Solutions Segment DRIVERS FOR EXPECTED FUTURE OUTPERFORMANCE CAGR 2015-2018e INNOVATION ▪ Recent launch of ePD (embedded Physical Vapor Deposition), S3 (Segmented Synchroniser System) Oerlikon ▪ Brake Disc: rust and dust free brake disc Automot
Slide 6: Manmade Fibers Segment – Healthy order intake level maintained and strong sales increase achieved
Manmade Fibers Segment – Healthy order intake level maintained and strong sales increase achieved OPERATIONAL PERFORMANCE MARKET DEVELOPMENT 7% ▪ Good order intake driven by large filament project ▪ Maintaining healthy demand in filament equipment Asia / Pacific orders and in CP2 projects (China) ma
Slide 7: Agenda
Agenda 1 Q3 2018 Business Update 2 Q3 2018 Financial Review 3 Outlook 4 Appendix Page 7 Oerlikon Q3 2018 business update October 30, 2018
Slide 8: Group performance builds on strong top-line growth in both Segments and investments in the future
Group performance builds on strong top-line growth in both Segments and investments in the future1 in CHF million 3Q18 3Q17 y-o-y 9M18 9M17 y-o-y ▪ Surface Solutions Segment with continued strong order intake and good sales growth; level of profitability within guided Order intake 655 536 22.2% 2'09
Slide 9: Business split – Ongoing recovery in Manmade Fibers reflected in Group splits
Business split1 – Ongoing recovery in Manmade Fibers reflected in Group splits Segment sales split Segment EBITDA split Q3 2018 54% 46% Q3 2018 -2% 67% 35% Q3 2017 63% 37% Q3 2017 -2% 77% 25% in % of total sales in % of EBITDA Surface Solutions Manmade Fibers Surface Solutions Manmade Fibers Other R
Slide 10: FX impact on Orders, Sales and EBITDA in Q3 2018
FX impact on Orders, Sales and EBITDA in Q3 20181 Order intake Q3 2018 Sales Q3 2018 EBITDA Q3 2018 In CHF million In CHF million In CHF million 0.5% 0.7% -1.6% 655 652 687 682 103 105 -4 1 -1 -4 1 1 15.0 15.3 Margin in % Q3 2018 Transaction Translation Q3 2018 FX Q3 2018 Transaction Translation Q3
Slide 11: Return On Capital Employed (ROCE)
Return On Capital Employed (ROCE) In % 9M 20181 FY 20173 EBIT 245 219 - Total current income tax -65 -75 11.7% 11.1% - Total deferred tax income -9 11 8.2% NOPAT 171 155 5.7% Net Operating Assets 1’531 1’949 + Current income tax receivables 17 27 -19.8% + Deferred tax assets 117 151 - Current income
Slide 12: Agenda
Agenda 1 Q3 2018 Business Update 2 Q3 2018 Financial Review 3 Outlook 4 Appendix Page 12 Oerlikon Q3 2018 business update October 30, 2018
Slide 13: 2018 Group outlook confirmed – Delivering top-line growth and attractive profitability level
2018 Group outlook confirmed1 – Delivering top-line growth and attractive profitability level >15 % Underlying Group / Segment assumptions intake Order up to exceeding 2'211 Oerlikon Group2 Surface Solutions Segment 2’600 2’600 ▪ Guidance based on restated results 2017 ▪ Order intake to increase aro
Slide 14: Q&A
Q&A 1 Achieving strong top-line growth 2 Attractive EBITDA margin 3 Confirming growth and profitability guidance for 2018 4 Nomination of additional non-affiliated member to the Board (AGM 2019) Page 14 Oerlikon Q3 2018 business update October 30, 2018
Slide 15: Agenda
Agenda 1 Q3 2018 Business Update 2 Q3 2018 Financial Review 3 Outlook 4 Appendix Page 15 Oerlikon Q3 2018 business update October 30, 2018
Slide 16: Group – Restated key financial figures
Group – Restated key financial figures Divestment Drives Systems / IFRS 15 in CHF million Key financial figures (divestment Q1 2018 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Drive Systems / IFRS 15) restated restated restated restated restated restated Oerlikon Group Order intake 757 2’211 525 534 536 61
Slide 17: Segments – Restated key financial figures (IFRS)
Segments – Restated key financial figures (IFRS) in CHF million 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Key financial figures (IFRS 15) restated restated restated restated restated Surface Solutions Segment Order intake 1’412 351 340 348 373 Order backlog 124 100 102 115 124 Sales (3rd parties) 1’370 3
Slide 18: Balanced FX profile across the Group – Limited Swiss Franc exposure
Balanced FX profile across the Group – Limited Swiss Franc exposure Sales 3rd 2018 (e)1 COGS 2018 (e) 1 14% 11% 2% 2% ≈ 15% 47% 19% 47% 22% 21% EUR USD CNY CHF Other 1 Continuing operations ▪ No major currency mismatch – natural hedge in place ▪ Limited transaction risk – translation effects from re
Slide 19: EBITDA to EBIT bridge for Oerlikon Group
EBITDA to EBIT bridge for Oerlikon Group EBITDA to EBIT bridge – Q3 20181 EBITDA to EBIT bridge – Q3 20172 In CHF million In CHF million 103 -25 78 89 -10 -6 62 -25 64 -9 -6 49 EBITDA Depr. & Imp. EBITA Amor.of acqu. Other Amor. EBIT EBITDA Depr. & Imp. EBITA Amor.of acqu. Other Amor. EBIT intangibl
Slide 20: EBITDA to EBIT bridge per Segment – Q3 2018
EBITDA to EBIT bridge per Segment – Q3 2018 Surface Solutions Segment Manmade Fibers Segment In CHF million In CHF million 69 -21 48 -9 36 -4 32 -5 34 -1 30 -1 EBITDA Depr. & Imp. EBITA Amor. of acqu. Other Amor. EBIT EBITDA Depr. & Imp. EBITA Amor. of acqu. Other Amor. EBIT intangibles intangibles
Slide 21: Oerlikon Transformation – Streamlining the portfolio and focus on Surface Solutions
Oerlikon Transformation – Streamlining the portfolio and focus on Surface Solutions Coating Segment: Coating Segment: Surface Solutions Segment: Manmade Fibers Segment: Surface Solutions Recentis & Primateria & Eicker KG, Rox acquisition Metco acquisition Laser Cladding Services Trützschler Nonwoven
Slide 22: Oerlikon shares
Oerlikon shares Oerlikon shares Oerlikon shareholder structure1 as of October 26, 2018 ▪ Listed on Swiss Exchange (SIX) since 1973 Liwet Holding AG ▪ Securities symbol: OERL 43.03% ▪ Securities number 81 682 BlackRock Inc. 47.51% ▪ ISIN: CH0000816824 Black Creek IM ▪ Number of shares outstanding: 33
Slide 23: Coverage – 6 Buy / Add – 7 Hold / Neutral – 0 Sell
Coverage – 6 Buy / Add – 7 Hold / Neutral – 0 Sell / Underperform Broker Analyst Recommendation Date of last update Target price AlphaValue N.N. Add 07.08.2018 18.70 Baader Helvea Reto Amstalden Buy 25.10.2018 19.40 Berenberg Bank Sebastian Künne Hold 14.08.2018 16.00 Credit Suisse Patrick Laager Ne
Slide 24: Financial Calendar 2018 / 2019
Financial Calendar 2018 / 2019 October 30, 2018 Q3 / 9M 2018 results - Media & Analyst Conference Call March 5, 2019 Q4 / FY 2018 results - Media & Analyst Conference in Zurich April 9, 2019 Annual General Meeting of Shareholderrs - KKL Lucerne May 7, 2019 Q1 2019 results - Media & Analyst Conferenc
Slide 25: Investor Relations Contact
Investor Relations Contact OC Oerlikon Management AG, Pfäffikon Churerstrasse 120 CH – 8808 Pfäffikon SZ Switzerland Andreas Schwarzwälder Head of Investor Relations Senior Vice President Phone: +41-58-360-9622 Mobile: +41-79-810-8211 E-mail: a.schwarzwaelder@oerlikon.com Page 25 Oerlikon Q3 2018 bu
Slide 26: 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