Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Investor Presentation (November 2024)
36 slides from Oc Oerlikon's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024 Page 1
Slide 2: Agenda
Agenda Overview 1 Market leader in sweet spots with technology barriers to entry 50% cost savings through reconditioning Pure Play Transformation 2 Unlocking value Surface Solutions 3 Well positioned for 4-6% sales growth and 300bps margin upside Polymer Processing Solutions 4 Market leader exposed
Slide 3: There is not a single day without Oerlikon
There is not a single day without Oerlikon … to outer space Subsea hardware Luxury goods Lightweight mobility Masks, filters, geotextiles Apparel Air travel Communication satellites From the bottom of the ocean … Page 3
Slide 4: Industrial technology leader in sweet spots with barriers to entry
Industrial technology leader in sweet spots with barriers to entry Cutting-edge Broad market Key financials technology coverage 2023 Surface Solutions (56% of sales) Sales 2.7bn 16.5% margin Integrated coating solutions based on broad Non-Filament Tooling Polymer Processing Surface Solutions equipme
Slide 5: Growth strategy Surface Solutions
Growth strategy Surface Solutions Increasing demand for surface solutions driven by efficiency, performance and sustainability ▪ Realize >20% sales upside in Americas and Asia with new Accelerate regional organization >20% regional expansion ▪ Leverage competitive advantages of integrated offering a
Slide 6: Mid-term growth drivers Polymer Processing Solutions
Mid-term growth drivers Polymer Processing Solutions ▪ Filament equipment market grew with 3% CAGR 02- Filament equipment market 22 driven by underlying manmade fibers market growth, +4% Oerlikon Sales CAGR 14-22 innovation, rising GDP and limited alternative resources CHF bn Leadership +3% ▪ Positi
Slide 7: Pure Play Transformation: Unlocking Value
Pure Play Transformation Unlocking Value
Slide 8: Oerlikon finalizing portfolio transformation started 10 years ago
Oerlikon finalizing portfolio transformation started 10 years ago From 5 Divisions in 2014 … To 2 Divisions 2019 - 2024 2024 - 2026 ▪ Limited synergies given Surface different end markets, Solutions geographies, customers, Market Leaders in business models and cycles sweet spots with technology entr
Slide 9: Pure play implementation on-track
Pure play implementation on-track Update 5 November 2024 Evaluations ongoing to separate Manmade Fibers ▪ Looking into various options for the value accretive separation of Polymer Processing Solutions’ Manmade Fibers business 1 Executing on organizational separation ▪ The Manmade Fibers business wi
Slide 10: Surface Solutions well-positioned for profitable growth
Surface Solutions well-positioned for profitable growth Sound positioning Enabling efficiency Clear set of & sustainability growth levers Market leader in cutting-edge Accelerate surface technology regional Present in niche market expansion At technology forefront since 50% cost savings 1946 (PVD) t
Slide 11: Oerlikon Surface Solutions Division Overview
Oerlikon Surface Solutions Division Overview
Slide 12: Surface Solutions is well positioned for profitable growth
Surface Solutions is well positioned for profitable growth Sound positioning: Surface technology leader in niche market with high barriers to entry and 1 diversified end market exposure 4-6% sales growth potential: Capitalize on increasing demand for surface solutions by driving 2 regional expansion
Slide 13: Enabling efficiency and avoided carbon emissions for customers
Enabling efficiency and avoided carbon emissions for customers Surface solutions improve efficiency, performance and Oerlikon’s coatings for Tooling and Aviation sustainability save >100% of Swiss CO2 emissions Uncoated Older standard Coating Oerlikon Coating 20x lifetime extension 2 of a metal tool
Slide 14: Developed Surface Solutions into a diversified technology leader close to customers
Developed Surface Solutions into a diversified technology leader close to customers 2013 2023 End markets focused on Tooling Diversified end markets aligned to key megatrends Sales Energy Diversified Luxury Tooling the end Automotive Tooling General markets industry Automotive Aviation Specialized i
Slide 15: Surface Solutions at a glance
Surface Solutions at a glance Key metrics Integrated high- Sales split Customers 2023 tech offering 2023 #1 Coating By markets >30k active customers Market leader services APAC including industry leaders in coating solutions Americas 23% 28% Coating Serving top players materials CHF 1.5bn ▪ 100% in
Slide 16: Market leader in niche market with high barriers to entry
Market leader in niche market with high barriers to entry Market leader in high-tech niche surface solutions markets 1 PVD competitors include Ionbond (IHI), Eifeler (Voestalpine), Cemecon; Thermal spray competitors include Höganäs and Praxair (Linde) 1 At technology forefront since 1946 (PVD) e.g.
Slide 17: Growth strategy Surface Solutions
Growth strategy Surface Solutions Increasing demand for surface solutions driven by efficiency, performance and sustainability ▪ Realize >20% sales upside in Americas and Asia with new Accelerate regional organization >20% regional expansion ▪ Leverage competitive advantages of integrated offering a
Slide 18: One face to the customer benefiting from integrated portfolio
One face to the customer benefiting from integrated portfolio Technology leadership in materials and equipment drives profitable growth in services Coating services Coating materials Coating equipment Components Additive Manufacturing ▪ Global network of 150+ coating ▪ Manufacturing and sale of ▪ Ma
Slide 19: Unparalleled ability to innovate across multiple end-markets
Unparalleled ability to innovate across multiple end-markets Services, materials, components and equipment based on leading-edge coating technologies ▪ Carbides, nitrides and other materials are deposited onto the surface of a component or tool; occurs in a high temperature vacuum with the support o
Slide 20: Combining surface technologies tailored to the customer's needs
Combining surface technologies tailored to the customer’s needs Case example: SubSea valve Oerlikon increasing efficiency, extending service life and reducing weight Thin film Valve coatings: Corrosion, erosion protection, low (PVD) 1 friction, wear resistance 2 Thermal Valve Stems/Actuators: Cleara
Slide 21: Cutting-edge surface solutions technology: Deep dive PVD
Cutting-edge surface solutions technology: Deep dive PVD PVD coatings: Harder than steel … … but only a few thousandths of a millimeter thin 0.05mm 0.003mm Coating Human hair BALINIT® hard coating Substrate Page 21 PVD = Physical Vapor Deposition
Slide 22: High-tech coating processes: Deep dive PVD
High-tech coating processes: Deep dive PVD Drills Physical Vapor Deposition (PVD) getting coated in a PVD PVD is a coating process carried out under high vacuum vacuum and at temperatures between 80 and 600 °C; chamber metals are deposited onto a surface serving as ultra thin, resilient and environm
Slide 23: Surface Solutions margins of 20%+ continue to be a key management focus
Surface Solutions margins of 20%+ continue to be a key management focus 2019-21: 2022-23: 2024 - Mid-term: Clear path to 20%+ Efficiency gains despite Unprecedented input cost Drive innovation, margin: lower sales during pressure, not yet fully operating leverage and COVID ->18.3% compensated effici
Slide 24: Polymer Processing Solutions Division Overview
Polymer Processing Solutions Division Overview Oerlikon is evaluating options for separation of its Manmade Fibers Business with the aim of value creation for all stakeholders (as announced on 20 Feb 2024 & 5 November 2024)
Slide 25: Polymer Processing Solutions at a glance
Polymer Processing Solutions at a glance Key metrics Offering Sales split 2023 2023 Non-Filament: HRSflow (polymer lightweight parts) #1 Machines & plants By markets 12% Manmade Fibers Filament market leader with 40-50% share For polymer processing business 1 Non-Filament excl. HRSflow 29% 59% (e.g.
Slide 26: Technological leadership drives growth
Technological leadership drives growth Technological synergies between Oerlikon machinery for Filament and Non-Filament Polycondensation Extrusion (chemical process) (mechanical process) Polymer chips Heating Melt flow Gear pumps Synergies (Flow Control) Spinneret Hot Runner Systems 1 driving Spinne
Slide 27: Manmade fibers outgrowing natural fibers
Manmade fibers outgrowing natural fibers Growth drivers +4% manmade fibers growth Population growth and Global fiber demand1 affluence Need for Better availability equipment Oerlikon with ~45% global equipment market share for Lower resource intensity Manmade fibers manmade fibers used in apparel CA
Slide 28: Mid-term growth drivers Polymer Processing Solutions
Mid-term growth drivers Polymer Processing Solutions ▪ Filament equipment market grew with 3% CAGR 02- Filament equipment market 22 driven by underlying manmade fibers market growth, +4% Oerlikon Sales CAGR 14-22 innovation, rising GDP and limited alternative resources CHF bn Leadership +3% ▪ Positi
Slide 29: Operational Execution & ESG
Operational Execution & ESG Enabling Profitable Growth and Avoided Carbon Emissions for Customers
Slide 30: Operational focus to drive profitable growth
Operational focus to drive profitable growth 3 focus areas Leverage … ▪ Drive sustainable innovation and technology leadership to outgrow Grow & markets Technology innovate ▪ Leverage technology leadership into new growth areas and leadership geographies; organically and with accretive M&A ▪ Apply s
Slide 31: Growth & innovation track record
Growth & innovation track record Demand driven by sustainability and efficiency Sales 1) Organic CAGR +8% ▪ Geographic expansion in Americas Track record of (2023: +13% 2) supported by new innovation and Surface organization 1.38 1.52 4-6% sales growth Solutions 1.20 1.28 ▪ Leverage technology leade
Slide 32: Growth accelerated by sustainable megatrends
Growth accelerated by sustainable megatrends Oerlikon R&D on Oerlikon’s coatings for Tooling/Aviation save >100% of Swiss CO2 emissions Energy consumption 20x lifetime extension 3 of a metal Resulting in significant metal saving, saving tool through coating (vs. uncoated) annually ~8.3 mio metric to
Slide 33: Strengthening the base for profitable growth
Strengthening the base for profitable growth Admin expenses ▪ 24% overhead savings since 2019, despite 3 acquisitions -24% 276 Cost ▪ Proactive cost actions initiated in 209 Q4’22 ahead of filament headwinds efficiency ▪ Continued focus on efficiency incl. digitalization and footprint optimization o
Slide 34: Progressing towards 2030 ESG targets
Progressing towards 2030 ESG targets 0 Reduce emission intensity (scope 1&2) in relevant Reduce % of 21% 27% operations to 54 disposed waste become climate 61 42% neutral 1 Baseline 2023 2030E Baseline 2023 2030E 100% 20% Increase % of Increase % of 14% 12% electrical energy 35% women in from renewa
Slide 35: 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 36: 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