Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q3 2021 Earnings Presentation
20 slides from Oc Oerlikon's earnings presentation, Nov 3, 2021
Slide 1: Q3 2021 Financial results
Q3 2021 Financial results 3 November 2021 Page 1
Slide 2: Agenda
Agenda 1 Business Update 2 Q3 Financials 3 Q&A Page 2
Slide 3: Summary Q3
Summary Q3 Record Q3 orders and continued margin expansion – global supply chains remain constrained Financials 835m (+61%) 695m (+17%) 117m (+26%) 61m (+43%) Order intake Sales Operational EBITDA Operational EBIT ▪ Strong operational execution with robust financial growth in Q3, driven by continued
Slide 4: End Markets: Supply Chain Bottlenecks Hampering Speed of Recovery
End Markets: Supply Chain Bottlenecks Hampering Speed of Recovery Filament Non-Filament General Industrial & Automotive Aviation 31% of 2020 Group sales 16% 7% Tooling 14% 31% environment Growth Growth Growth Shortages – return to Slightly up Market growth thereafter from low levels ▪ Strong demand
Slide 5: Continued Focus on Strategic Priorities
Continued Focus on Strategic Priorities Sustainable Cost Disciplined Capital Innovation Containment Allocation ▪ Drive global technology leadership with ▪ Focus on cost containment and reinvest into ▪ Diversify organically into adjacent markets and effective R&D profitable growth enhance structural
Slide 6: Automotive Impacted by Supply Chain Challenges in Near-term, Mid-term Outlook Intact
Automotive Impacted by Supply Chain Challenges in Near-term… Mid-term Outlook Intact Outlook Oerlikon focusing investments into near-term transition to future mobility Light vehicle production Light vehicle production per New EV opportunities # cars in m 1) power train alternative # cars in m 2) ▪ S
Slide 7: Transforming Polymer Processing Solutions Into a Growth Platform
Transforming Polymer Processing Solutions Into a Growth Platform Organic growth Sales CAGR Driving 1 3 CAGR +5% CAGR initiatives in +48% +17% structural growth adjacent markets Division sales ▪ Drive market share gain through innovation, high quality, new product development and improved customer +2
Slide 8: Clear Focus to Sustainably Improve ROCE
Clear Focus to Sustainably Improve ROCE Internal focus on ROCE further strengthened Achieve double-digit ROCE opROCE(A) 13.1% 9.9% 10.8% 13.9% Capital allocation framework ROCE ROCE 8.1% 7.0% Double digit ROCE Allocate Capex and R&D 6.4% investments to high-return and growth areas Sales 3.1% CAGR FY
Slide 9: Oerlikon Well Positioned for Profitable Growth
Oerlikon Well Positioned for Profitable Growth Recovering sales on reduced cost base Operational EBITDA margin Sales 1,488 ▪ Shorter-cycle business driving 1,250-1,300 2021 sales recovery, with upside from longer-cycle business beyond Surface transitory impacts from supply 18.0 -18.5% chain shortage
Slide 10: Financial Overview Q3
Financial Overview Q3 Robust growth driven by both Divisions Order intake +61.0% ▪ Order intake +61% including +9% from M&A 1) FX adj: +58.2% Orders ▪ Driven by record order intake in Polymer Processing 518 835 Solutions and market recovery in Surface Solutions Q3’20 Q3’21 Sales +17.2% ▪ Sales +17%
Slide 11: Surface Solutions With Improving Top and Bottom Line
Surface Solutions With Improving Top and Bottom Line Market Orders Sales Operational EBITDA ▪ Markets recovering at differing rates ▪ Higher order intake YoY; sequentially ▪ Increased +15% at constant FX, driven ▪ Increased +41% YoY slightly down due to market shortages by YoY growth across end mark
Slide 12: Polymer Processing Solutions With Record Order Intake and Sales
Polymer Processing Solutions With Record Order Intake and Sales Market Orders Sales Operational EBITDA ▪ Favorable market conditions in ▪ Record order intake in last eight years, ▪ Increased +17% at constant FX ▪ Increased +15% driven by higher sales Filament: further increased order books driven ma
Slide 13: Conclusion: Confirming FY'21 Group Guidance
Conclusion: Confirming FY’21 Group Guidance Following Strong Q3 and Based on Current Visibility Drive profitable growth ▪ Enhance growth with expansion into adjacent areas (e.g. Non- Filament) and investments into future mobility ▪ Strong cost focus enabling return to operational 16-18% EBITDA margi
Slide 14: cerlikon
cerlikon
Slide 15: Appendix
cerlikon Appendix
Slide 16: ESG Rating Improvements Following 1st Sustainability Report
ESG Rating Improvements Following 1st Sustainability Report Our ESG commitment to 2030 Ratings improvements 2021 Environmental Further ratings updates in progress AA 28 D+ D+ ▪ Annual update schedules Med ▪ Implement energy management systems at low 34 D+ means some ratings are A risk 35 risk 100% o
Slide 17: Q3 Reconciliation of Profitability Measures
Q3 Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions Q3’21 Q3’20 Q3’21 Q3’20 Q3’21 Q3’20 EBITDA 115 88 58 37 52 48 Depreciation -34 -33 -26 -28 -7 -5 Impairments -0 -1 -0 -1 -- -- EBITA 81 54 32 8 45 44 Amortization of Acquired Intang
Slide 18: YTD Reconciliation of Profitability Measures
YTD Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions 9M’21 9M’20 9M’21 9M’20 9M’21 9M’20 EBITDA 315 180 174 72 133 104 Depreciation -99 -100 -80 -84 -17 -14 Impairments -1 -2 -1 -2 -- -- EBITA 214 78 93 -14 116 90 Amortization of Acq
Slide 19: Investor Relations
Investor Relations Stephan Gick Stephan.gick@oerlikon.com +41 58 360 98 50 Peter Dickson Peter.dickson@oerlikon.com +41 58 360 96 39 ir@oerlikon.com www.oerlikon.com/en/investors
Slide 20: 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