Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q3 2016 Earnings Presentation
23 slides from Oc Oerlikon's earnings presentation, Nov 2, 2016
Slide 1: Surface Solutions Segment's solid performance confirms strategic direction
Surface Solutions Segment’s solid performance confirms strategic direction Dr. Roland Fischer, CEO Jürg Fedier, CFO Q3 / 9M 2016 Business Update November 2, 2016
Slide 2: Agenda
Agenda 1 Q3 2016 Business Update 2 Q3 / 9M 2016 Financial Review 3 Outlook 2016 4 Appendix Page 2 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 3: Surface Solutions Segment – Organic sales growth in weak industrial production environment
Surface Solutions Segment – Organic sales growth in weak industrial production environment y-o-y y-o-y in CHF million Q3 16 Q3 15 y-o-y 9M 16 y-o-y ex FX ex FX Order intake 300 299 0.3% -1.1% 917 0.2% -1.6% Sales (3rd parties) 305 296 3.0% +1.5% 915 1.2% -0.7% EBITDA 74 63 17.5% – 206 6.7% – In % of
Slide 4: Manmade Fibers Segment – Sequential improvements indicate trough levels in 2016
Manmade Fibers Segment – Sequential improvements indicate trough levels in 2016 y-o-y y-o-y in CHF million Q3 16 Q3 15 y-o-y 9M 16 y-o-y ex FX ex FX Order intake 134 181 -26.0% -26.1% 383 -34.2% -35.3% Sales (3rd parties) 103 181 -43.1% -42.8% 340 -43.1% -44.0% EBITDA 1 30 -96.7% – 8 -92.2% – In % o
Slide 5: Drive Systems Segment – Higher order intake in weak markets, sequential margin improvement
Drive Systems Segment – Higher order intake in weak markets, sequential margin improvement y-o-y y-o-y in CHF million Q3 16 Q3 15 y-o-y 9M 16 y-o-y ex FX ex FX Order intake 138 129 7.0% 6.7% 453 2.0% 0.2% Sales (3rd parties) 141 157 -10.2% -10.6% 463 -9.4% -11.2% EBITDA 10 16 -37.5% – 31 -39.2% – In
Slide 6: Update on Drive Systems Segment – Key reshaping initiatives progressing well
Update on Drive Systems Segment – Key reshaping initiatives progressing well Initiative Description Progress Reduce product width and depth with a clear Improved order quality by reducing number of customers focus on orders with high value added in the by around 50 area gears, shifting solutions
Slide 7: Agenda
Agenda 1 Q3 2016 Business Update 2 Q3 / 9M 2016 Financial Review 3 Outlook 2016 4 Appendix Page 7 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 8: Overall Group performance builds on solid performance of Surface Solutions Segment
Overall Group performance builds on solid performance of Surface Solutions Segment Top-line development at constant FX (y-o-y)1 in CHF million Q3 16 Q3 151 y-o-y 9M 16 y-o-y -6.9% 609 567 Order intake 572 609 -6.1% 1 753 -9.7% Sales (3rd parties) 549 634 -13.4% 1 718 -14.7% Orders intake Order intak
Slide 9: Business split – Surface Solutions Segment remains value driver of the Group
Business split1 – Surface Solutions Segment remains value driver of the Group Segment sales split Segment EBITDA split in % of sales in % of EBITDA Q3 2015 47% 28% 25% Q3 2015 57% 27% 14% 2% Q3 2016 55% 17% 28% Q3 2016 -4% 91% 12% 1% Surface Solutions Drive Systems Surface Solutions Drive Systems Ma
Slide 10: FX impact on Orders, Sales and EBITDA in Q3 2016
FX impact on Orders, Sales and EBITDA in Q3 20161 Order intake Q3 2016 Sales Q3 2016 EBITDA Q3 2016 In CHF million In CHF million In CHF million -0.9% -0.9% -2.1% 572 567 549 544 81 79 0.1 -0.2 -5.1 -4.5 -2.1 0.4 14.7 14.5 Margin in % Q3 2016 Trans- Trans- Q3 2016 Q3 2016 Trans- Trans- Q3 2016 Q3 20
Slide 11: Financial impact of Metco transaction – Reality check confirms initial assumptions
Financial impact of Metco transaction – Reality check confirms initial assumptions Top-line synergies Cash items Cost synergies (cumulative) Reality check as of Sept. 30, 2016 >CHF 10 million Guidance Integration costs Integration FY 2016: costs <CHF 10m <CHF 10 million 9M 2016: CHF 2.8m Non-cash it
Slide 12: Agenda
Agenda 1 Q3 2016 Business Update 2 Q3 / 9M 2016 Financial Review 3 Outlook 2016 4 Appendix Page 12 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 13: 2016 outlook confirmed – Focus to protect profitability in challenging environment
2016 outlook confirmed – Focus to protect profitability in challenging environment Oerlikon expectations for financial year 2016: Guidance Order intake and sales within the range of CHF 2.3 billion to CHF 2.5 billion Group EBITDA margin around mid-teens Short term: Continued competitive market
Slide 14: Summary Q3 2016
Summary Q3 2016 1. Surface Solutions with organic growth and solid underlying profitability 2. Reaching the trough in Manmade Fibers in 2016 and further progress in reshaping initiatives in Drive Systems 3. Full year guidance for 2016 confirmed Page 14 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 15: Agenda
Agenda 1 Q3 2016 Business Update 2 Q3 / 9M 2016 Financial Review 3 Outlook 2016 4 Appendix Page 15 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 16: EBITDA to EBIT bridge per Segment
EBITDA to EBIT bridge per Segment Oerlikon Group – Q3 2016 Surface Solutions Segment – Q3 2016 In CHF million In CHF million 81 74 -17 57 -30 51 45 -8 -4 -8 37 -6 EBITDA Depr. EBITA Amor. of Other EBIT EBITDA Depr. EBITA Amor. of Other EBIT acquired Amor. acquired Amor. intangibles intangibles Manma
Slide 17: R&D and CapEx on Segment level
R&D and CapEx on Segment level1 R&D expenses H1 2016 CapEx H1 2016 (% of Segment sales) Drive Systems (2 %) Drive Systems 13% 18% Manmade Fibers (4 %) 17% CHF 9% CHF 52m Manmade Fibers 56m 70% 73% Surface Surface Solutions (7 %) Solutions Depreciation & Amortization H1 20162 CapEx / Depr. & Amort. H
Slide 18: Asset allocation and employees on Segment level
Asset allocation and employees on Segment level1 Net operating assets H1 2016 Employees (FTE) by Segment H1 2016 Corporate Drive Systems 2% 18% Drive Systems Surface Manmade Fibers 11% 35% CHF 46% Solutions 13 725 1 889m 71% Surface 17% Solutions Manmade Fibers Operating Assets H1 2016 Employees (FT
Slide 19: Oerlikon shares
Oerlikon shares Oerlikon shares Oerlikon shareholder structure1 as of September 30, 2016 Listed on Swiss Exchange (SIX) since 1973 Securities symbol: OERL Renova Group Securities number 81 682 Others (incl. 0.13% 43.0% ISIN: CH0000816824 treasury shares) 54.0% No. of shares outstanding: 33
Slide 20: Coverage – Buy/Accumulate & Hold/Neutral
Coverage – 7 Buy/Accumulate & 7 Hold/Neutral Broker Analyst Recommendation Date of last Target update price AlphaValue Pierre-Yves Gauthier Buy 06.10.2016 12.30 Baader Helvea Reto Amstalden Buy 05.08.2016 12.50 Bank am Bellevue Alessandro Foletti Hold 05.08.2016 8.90 Berenberg Bank Sebastian Künne H
Slide 21: Financial Calendar 2017
Financial Calendar 2017 February 28, 2017 Q4 / FY 2016 results and publication of Annual Report 2016 - Annual Press Conference April 11, 2017 Annual General Meeting of Shareholders - KKL Lucerne May 2, 2017 Q1 2017 Results - Media & Analyst Conference Call August 8, 2017 Q2 / HY 2017 results and pub
Slide 22: Investor Relations Contact
Investor Relations Contact OC Oerlikon Management AG, Pfäffikon Churerstrasse 120 CH – 8808 Pfäffikon SZ Switzerland Andreas Schwarzwälder Head of Investor Relations Phone: +41-58-360-9622 Mobile: +41-79-810-8211 E-mail: ir@oerlikon.com Page 22 20161102_Oerlikon Q3_9M 2016 Business Update
Slide 23: 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