Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q1 2012 Earnings Presentation
43 slides from Oc Oerlikon's earnings presentation, Apr 30, 2012
Slide 1: Increase of profitability
Increase of profitability Dr. Michael Buscher, CEO Jürg Fedier, CFO Oerlikon Q1 Results 2012 April 30, 2012
Slide 2: Agenda
Agenda 1 Business Update Q1 2012 2 Financials Q1 2012 3 Outlook 4 Appendix Page 2 Q1 2012 Investor Presentation, April 30, 2012
Slide 3: Group EBIT margin improves to 11.8%
Increase transparency by reporting profitability Group EBIT margin* improves to 11.8 % in CHF m / in % Sales** Order intake Order backlog EBIT EBIT margin* 961 1,126 1,693 152 11.7 11.8 906 -12% 996 +43% +1% +6% 39 1,345 -21% 106 113 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1
Slide 4: Execution of portfolio optimization
Execution of portfolio optimization Announcements Solar Segment Divestment of Solar Segment to Tokyo Electron (TEL), Japan (announced March 2, 2012) Transaction based on EV of CHF 250 million Closing expected in summer, mainly dependent on merger control approval in China Sale of property Sa
Slide 5: Oerlikon Segments 1/2
Oerlikon Segments 1/2 Good start in the financial year 2012 Manmade fiber steady at a high level Natural fiber saw first improvements in order intake from Q4 trough Textile Autocoro 8 well received in the market Strong growth in China China represents 53 % of Q1 Segment sales Stable dema
Slide 6: Oerlikon Segments 2/2
Oerlikon Segments 2/2 Good start in the financial year 2012 Strong automotive sector in established markets like Europe, the US and Japan Coating Tools and high-volume components in automotive Continued expansion of capacity especially in Asia First signs of recovery in semiconductor industr
Slide 7: Agenda
Agenda 1 Business Update Q1 2012 2 Financials Q1 2012 3 Outlook 4 Appendix Page 7 Q1 2012 Investor Presentation, April 30, 2012
Slide 8: Oerlikon Group key figures Q1 2012
Oerlikon Group key figures Q1 2012 in CHF m Q1 20111 Q1 20122 Δ Order intake 1,126 996 –12 % Order backlog 1,693 1,345 –21 % Sales* 906 961 +6 % EBIT 106 152 43 % % of sales 11.7 % 15.8 % EBIT (excl. sale of Arbon property) 106 113 7% (2011 comparable FY 2011) 11.7 % 11.8 % ROCE3 16.5 % 17.6 % 1 res
Slide 9: FX impact on Sales, EBIT and EBIT margin
FX impact on Sales, EBIT and EBIT margin Oerlikon Group Sales* Q1 2012 Oerlikon Group EBIT Q1 20121 in CHF m in CHF m +5% +4% +1,005 +118 +961 +113 -2 +46 -1 +6 11.8 11.7 EBIT margin1 in % Q1 2012 Transaction Translation Q1 2012 Q1 2012 Transaction Translation Q1 2012 reported effect effects FX impa
Slide 10: Key figures by Segment Q1 2012
Key figures by Segment Q1 2012 Textile Drive Vacuum Coating Adv.Tech. in CHF m Order intake 504 231 103 127 31 Order backlog 1,031 211 80 n/a 23 Sales* 496 224 98 127 16 Δ to Q1 2011 (restated) 8.3 % 9.3 % -3.9 % 1.6 % - EBIT 90 19 14 27 -2 % of sales 18.1 % 8.5 % 14.1 % 21.3 % n/a EBIT (excl. sale
Slide 11: Order bridge by Segment
Order bridge by Segment Order intake by Segments Order backlog in CHF m in CHF m Growth rate -12% -21% 1,126 -19 % +1 % -14 % +2% +15 % 1,693 -122 996 3 -17 2 4 1,345 Q1 2011 Textile Drive Vacuum Coating Adv. Q1 2012 Q1 2011 Q1 2012 restated Tech. Page 11 Q1 2012 Investor Presentation, April 30, 201
Slide 12: Sales bridge by Segment
Sales bridge by Segment Sales* by Segment in CHF m Growth rate +6% +8 % +9 % -4 % +2 % 0% 961 906 19 -4 2 -0 38 Q1 2011 Textile Drive Vacuum Coating Adv. Q1 2012 restated Tech. * Sales to third parties Page 12 Q1 2012 Investor Presentation, April 30, 2012
Slide 13: EBIT bridge by Segment
EBIT bridge by Segment EBIT by Segment (excluding sale of Arbon property) in CHF m Growth rate +7% -3 -1 -1 113 106 8 -9 13 +34 % +73 % -18 % -4 % n/a Q1 2011 Textile Drive Vacuum Coating Adv. Corp./Elim. Q1 2012 restated Tech. Page 13 Q1 2012 Investor Presentation, April 30, 2012
Slide 14: Return On Capital Employed (ROCE)
Return On Capital Employed (ROCE) ROCE = NOPAT / Capital Employed 2011 2011 ROCE Oerlikon definition of ROCE reported restated in % 17.6% 16.5% EBIT 419 429 14.9% - Total current income tax -78 -75 - Total deferred income tax -13 -8 NOPAT 328 346 Net Operating Assets 2'205 2'108 + Current tax receiv
Slide 15: Agenda
Agenda 1 Business Update Q1 2012 2 Financials Q1 2012 3 Outlook 4 Appendix Page 15 Q1 2012 Investor Presentation, April 30, 2012
Slide 16: Outlook Oerlikon Group 2012
Outlook Oerlikon Group 2012 Next financial reporting: Q2 2012 on August 3 Guidance Assumptions: No recession scenario FY 2012 Successful closing of Solar Segment divestment based on Based on the existing full year guidance, we see current currency upside potential in business volume and profitab
Slide 17: Questions & Answer Session
Questions & Answer Session Page 17 Q1 2012 Investor Presentation, April 30, 2012
Slide 18: Agenda
Agenda 1 Business Update Q1 2012 2 Financials Q1 2012 3 Outlook 4 Appendix Page 18 Q1 2012 Investor Presentation, April 30, 2012
Slide 19: Oerlikon's Identity
Oerlikon’s Identity Tagline Vision Mission Page 19 Q1 2012 Investor Presentation, April 30, 2012
Slide 20: Investment Case
Investment Case Leading position Global player/ Sustainable in attractive Strong interna- improved growth markets tional footprint EBIT margin Technological Solid Balance Leadership/ Sheet/Low Debt Innovation Underlying Limited Strong Cash performance Swiss Franc Flow/Dividend improvement exposure P
Slide 21: Oerlikon Shares
Oerlikon Shares Oerlikon Shares Oerlikon Shareholder Structure Listed on Swiss Exchange (SIX) since 1975 Renova Group Securities symbol: OERL Securities number 81 682 Free Float 52,02% 47,98% ISIN: CH0000816824 No. of shares outstanding: 323 124 010 shares 0,18% Re-entry to Swiss SMIM on
Slide 22: Coverage
Coverage 7 Buy/Accumulate – 3 Hold/Marketweight Broker Analyst Recommendation Date of last update Target Price (as of April 27, 2012) AlphaValue Pierre-Yves Gauthier Buy 16.03.2012 11.30 Bank am Bellevue Michael Studer Hold 06.03.2012 8.20 Bank Vontobel Michael Foeth Buy 26.04.2012 10.00 Credit Suis
Slide 23: Financial Calendar 2012
Financial Calendar 2012 March 5, 2012 FY Results 2011 and publication of Annual Report 2011 - Media & Analyst Conference, Zurich April 12, 2012 Annual General Meeting of Shareholders - Lucerne April 30, 2012 Q1 results - Analyst Conference Call August 3, 2012 Q2 results and publication of Interim Re
Slide 24: Oerlikon on a new level
Oerlikon on a new level Sales* FY 2009 – FY 2011 (in CHF m) EBIT FY 2009 – FY 2011 (in CHF m) +16% 4,182 419 3,601 >100% 2,877 51 -589 FY 2009 FY 2010 FY 2011 FY 2009 FY 2010 FY 2011 Net profit/loss FY 2009 – FY 2011 (in CHF m) Net debt FY 2009 – FY 2011 (in CHF m) 224 > 100% 5 -86 -274 -592 -1,646
Slide 25: Oerlikon Group key figures FY 2011
Oerlikon Group key figures FY 2011 in CHF m FY 2010 FY 2011 Δ Order intake 4,520 4,043 –11 % Order backlog 1,702 1,481 –13 % Sales* 3,601 4,182 +16 % EBITDA 278 605 >100 % % of sales 8% 14 % EBIT 51 419 >100 % % of sales 1% 10 % Net profit 5 224 >100% % of sales 0% 5% Cash flow from operating activi
Slide 26: Key figures by Segment FY 2011
Key figures by Segment FY 2011 Textile Drive Vacuum Solar Coating Adv.Tech. in CHF m Order intake 1,977 892 400 202 484 88 Order backlog 1,053 213 77 130 n/a 8 Sales* 2,037 821 409 323 484 108 Δ to 2010 23 % 12% - 27 % 15% -16% EBITDA 233 94 72 17 141 14 % of sales 11 % 11 % 18 % 5% 29 % 13 % EBIT 1
Slide 27: Order bridge by Segment
Order bridge by Segment Order intake by Segments Order backlog in CHF m in CHF m Growth rate -11% -13% 4,520 -21% +13% -9% -12% +15% -32% 1,702 -532 4,043 1,481 100 -38 -28 62 -41 FY 2010 Textile Drive Vacuum Solar Coating Adv. FY 2011 FY 2010 FY 2011 Tech. Page 27 Q1 2012 Investor Presentation, Apr
Slide 28: Sales bridge by Segment
Sales bridge by Segment Sales* by Segment in CHF m Growth rate +16% +23% +12% 0% +27% +15% -16% 4,182 69 62 -21 3,601 88 -1 384 FY 2010 Textile Drive Vacuum Solar Coating Adv. FY 2011 Tech. * Sales to third parties Page 28 Q1 2012 Investor Presentation, April 30, 2012
Slide 29: Sales by location and region FY 2011
Sales by location and region FY 2011 Sales* by location Sales* by market region North North America America Other 12% regions 15% 1% Europe 28% Other 8% regions Asia/ 18% Pacific Europe 69% 49% Asia/Pacific Oerlikon benefits from growth opportunities worldwide Asian markets fueled sales up by 27
Slide 30: Constant range of investments in R&D to secure technological leadership
Constant range of investments in R&D to secure technological leadership Investments in R&D in the range of 5 – 7 % of sales in CHF m / as % of sales 300 8 274 7 260 247 239 7 250 7 6 210 213 6 5 200 5 5 5 150 4 3 100 2 50 1 0 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Page 30 Q1 2012 Investor
Slide 31: FX impact on Sales, EBIT and EBIT margin
FX impact on Sales, EBIT and EBIT margin Oerlikon Group Sales* FY 2011 Oerlikon Group EBIT FY 2011 in CHF m in CHF m +12% +17% +4,688 +490 +4,182 +419 +22 +484 +51 +20 10.0 10.5 EBIT margin in % FY 2011 Transaction Translation FY 2011 FY 2011 Transaction Translation FY 2011 FX reported effect effect
Slide 32: Strong improvement in Return on Net Assets (RONA)
Strong improvement in Return on Net Assets (RONA)* EBIT and Net Operating Assets* RONA* in CHF m in % 3,498 19.0% 2,821 2,196 2,205 0 2.3% 419 -1.7% 51 -59 -589 -20.9% l FY 2008** FY 2009 FY 2010 FY 2011 FY 2008** FY 2009 FY 2010 FY 2011 Strong improvement in EBIT and RONA following turn-around in
Slide 33: Oerlikon increased net profitability
Oerlikon increased net profitability in CHF m FY 2010 FY 2011 Δ Result before interests and taxes (EBIT) 51 419 >100 % in % of sales +1 % +10 % Financial result -58 -104 n/a in % of sales Result before taxes (EBT) -7 315 n/a in % of sales n/a +8 % Income taxes 12 -91 n/a in % of EBT n/a 29 % Net pro
Slide 34: Financial Result
Financial Result in CHF m 7 5 -73 419 -11 -21 -11 315 EBIT Interest Other Interest on Interest on Other financial Foreign EBT FY 2011 income financial financial debt provisions expenses currency FY 2011 income for post- loss, net employment benefit plans Financial income Financial expense +12 -116 P
Slide 35: Tax Result
Tax Result in CHF m 315 Tax rate of 29 % 78 Current income tax due to 13 224 profitability contribution of most subsidiaries Main tax payers in China, India and Germany Deferred tax expenses mainly due to utilization of tax loss carry forwards Mid-term targeted tax rate of around 30% EBT F
Slide 36: Restoration of solid balance sheet
Restoration of solid balance sheet FY 2010 FY 2011 in CHF m Cash and cash equivalents 751 742 Trade receivables 588 635 Inventories 468 582 Property, plant and equipment 942 915 Intangible assets 1,293 1,261 Total other assets 433 438 Total assets 4,475 4,573 Trade payables 419 457 Current customer
Slide 37: Net Working Capital
Net Working Capital* Net Working Capital* FY 2007- FY 2011 in % of sales and CHF m 14% 18% 17% 8% 7% Net working capital 837 decreased despite higher 772 inventory related to higher sales and was mainly influenced by increased 499 customer advances Net Working Capital FY 2011 302 289 at 7 % of 1
Slide 38: CAPEX nearing depreciation level
CAPEX nearing depreciation level CAPEX / depreciation & CAPEX Depreciation & amortization * amortization ratio* in CHF m in CHF m -10% +11% 195 175 2.26 167 150 Mid-term 1.58 target corridor 1.39 1.20 1.00 0.95 0.77 0.63 FY 2010 FY 2011 FY 2010 FY 2011 2006** 2007** 2008** 2009 2010 FY 2011 * Exclud
Slide 39: Consolidated Cash Flow Statement FY 2011
Consolidated Cash Flow Statement FY 2011 in CHF m -14 -106 Receivables -127 541 Inventories -128 -283 Payables/liabilities 7 Customer advances 143 Hedge accounting -1 Total -106 756 -172 742 6 Interest paid -52 CAPEX PP&E -141 Repayment of CAPEX intangibles -26 financial debt -139 Increase in market
Slide 40: Dividend policy and dividend for 2011
Dividend policy and dividend for 2011 Dividend yield of 4 % Dividend policy to pay out AGM approved to pay out up to 40 % of net profit CHF 0.20 per share for 2011 0.68 0.27 0.20 0.27 Net profit per share 2011 Up to 40% of net profit Max. pay-out Dividend proposal Dividend distributed from the res
Slide 41: Oerlikon Customer Base (Selection)
Oerlikon Customer Base (Selection) Preferred technology supplier to technology leaders in their respective industries Global customer base and world leading brand names Strong long-term customer relationships Page 41 Q1 2012 Investor Presentation, April 30, 2012
Slide 42: Investor Relations Contact
Investor Relations Contact OC Oerlikon Management AG Churerstrasse 120 CH-8808 Pfäffikon SZ Switzerland Andreas Schwarzwälder Head of Investor Relations Phone: +41 58 360 9622 Mobile: +41 79 810 8211 eMail: ir@oerlikon.com Page 42 Q1 2012 Investor Presentation, April 30, 2012
Slide 43: Disclaimer
Disclaimer Oerlikon has made great efforts to include accurate and up-to-date information in this document. However, we make no representation or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever