Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — FY2021 Earnings Presentation
24 slides from Oc Oerlikon's earnings presentation, Mar 1, 2022
Slide 1: 2021 Financial Results
2021 Financial Results 1 March 2022 Page 1
Slide 2: Agenda
Agenda 1 Summary 2 Business Review 3 Financials & Outlook 4 Q&A Page 2
Slide 3: Summary 2021
Summary 2021 2021 with profitable growth, driving EBITDA above pre COVID-19 level Financials 2.8bn (+25%) 2.6bn (+17%) 447m (+39%) 231m (+94%) 2021 Order intake Sales Operational EBITDA Operational EBIT ▪ Strong operational execution with growth driven by both Divisions, benefits from the cost-out p
Slide 4: 2021 Market Recovery With Varying Speeds and H2 Shortages
2021 Market Recovery With Varying Speeds and H2 Shortages Filament Non-Filament General Industrial & Automotive Aviation 33% of 2021 Group sales 19% 5% Tooling 14% 29% 2021 markets Growth Growth Growth H1 recovery paused Slight recovery in H2 (shortages) as of H2 ▪ Strong demand and visibility ▪ Str
Slide 5: 2021 With Continued Focus on Strategy Execution
2021 With Continued Focus on Strategy Execution … Grow & Improve Drive Sustainability Diversify Profitability Progress ▪ Outgrow markets by focusing on technology ▪ Apply strict cost focus and benefit from operating ▪ Drive environmental and social progress at leadership and sustainable innovation l
Slide 6: Driving Top-Line Growth
Driving Top-Line Growth Outgrow GDP driven by strong value proposition Sales bn: +11% +7% 1.40-1.45 1.43 ▪ +5% CAGR 15-19 1), above global & cont. market growth Aviation recovery GDP growth of +2.9% Surface 1.20 1.28 ▪ Longer-cycle Exceed market growth supported by Shorter-cycle Solutions recovery s
Slide 7: Increasing Profitability
Increasing Profitability Higher margins benefiting from cost-out program ▪ 2021 margin exceeding 2019 18.5-19.5% 17.9% margin on not yet fully 16.9% recovered sales Surface ▪ Cost-out program executed 14.7% Solutions during crisis benefiting margins ▪ Continued cost containment in Group place alongs
Slide 8: Strengthening Focus on Capital Return
Strengthening Focus on Capital Return Strengthened capital allocation framework Double-digit ROCE ambition 9.7% ROCE ▪ Intensified the ▪ Focused capital Allocate Capex internal competition allocation and and R&D for capital: zero- 7.6% monitoring along investments to based budgeting 7.0% defined gro
Slide 9: Driving Sustainability Progress at Oerlikon and its Customers
Driving Sustainability Progress at Oerlikon and its Customers Sustainability rating upgrades 2021 Deliver on Oerlikon ESG 1 roadmap 2030 1) MSCI Sustainalytics Ecovadis ▪ Become climate neutral on scope 1 and 2: increase share of energy from renewable sources to 100% and improve operational efficien
Slide 10: Financials & Outlook
Financials & Outlook Philipp Müller CFO
Slide 11: Financial Overview
Financial Overview 2021 with strong sales and EBITDA growth driven by both Divisions Order intake +24.8% ▪ Order intake +25% in FY’21, driven by both Divisions FX adj: +24.2% 2’797 Orders including +5% from M&A 1) 2’241 ▪ Q4 +5% YoY supported by Surface Solutions and M&A 2020 2021 Sales +17.3% ▪ Sal
Slide 12: Surface Solutions Benefitting From Shorter-Cycle Recovery and Cost Control
Surface Solutions Benefitting From Shorter-Cycle Recovery and Cost Control Markets Orders Sales Operational EBITDA ▪ Markets recovering at different speeds ▪ Higher order intake in FY’21, driven by ▪ Increased +7.2% in FY’21 supported by ▪ Improved +30.3% in FY’21 with 320bps market recovery shorter
Slide 13: Polymer Processing Solutions With Record Sales
Polymer Processing Solutions With Record Sales Markets Orders Sales Operational EBITDA ▪ Favorable market conditions in ▪ Record order intake, driven by Filament ▪ Record sales in FY’21 and in Q4 driven ▪ Increased +41.3% driven by higher Filament: order book almost filled in and Non-Filament in FY’
Slide 14: Focus on Cash Flow and ROCE
Focus on Cash Flow and ROCE Solid ROCE Operating FCF improving FY’21 ▪ Solid execution drives CHF 199m operating FY’21 ▪ Above FY’19 levels FCF ▪ Almost double-digit when excluding M&A 1) 444 ▪ NWC impacted by higher sales, supply chain ▪ Ambition of sustainable double-digit ROCE in the mid- shortag
Slide 15: Solid leverage and equity ratios
Solid leverage and equity ratios Improved net debt/EBITDA since H1 Net debt / operational Equity ratio 2) EBITDA ratio 1) Commitment to strong balance 0.7 sheet 34% ▪ Commitment to maintain a prudent financial policy and strong balance sheet H1’21: 1.1 ▪ Successfully placed CHF 575m senior unsecured
Slide 16: Conclusion: Well-Positioned for Profitable & Sustainable Growth
Conclusion: Well-Positioned for Profitable & Sustainable Growth Sales bn: ▪ Surface Solutions growth above GDP ~ 2.90 driven by ecological and economical 2.59 2.65 value proposition for customers 1 Sales growth ▪ Transforming Polymer Processing Solutions into a growth platform by 2.26 diversifying i
Slide 17: 2022 Guidance
2022 Guidance Profitable growth in both Divisions Sales Operational EBITDA margin +10% ▪ Sales +10% driven by both Divisions ▪ Higher margin supported by strong Group execution in both Divisions ~2’900 ~17.5% 2’649 16.9% ▪ Capex CHF~150m 2021 2022 2021 2022 Sales Operational EBITDA margin ▪ Sales +1
Slide 18: cerlikon
cerlikon
Slide 19: Appendix
cerlikon Appendix
Slide 20: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) FY 2021 FY 2020 12.1% EBIT 220 73 - Total current income tax -66 -29 - Total deferred tax income 11 6 8.2% NOPAT 165 51 7.6% 7.0% Net Operating Assets 2’204 1’637 5.7% + Current income tax receivables 34 31 + Deferred tax assets 145 139 3.1% - Current income tax pay
Slide 21: Q4 Reconciliation of Profitability Measures
Q4 Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 EBITDA 129 108 58 73 75 46 Depreciation -34 -33 -26 -27 -7 -5 Impairments 0 -4 0 -3 -0 -0 EBITA 95 71 32 42 67 40 Amortization of Acquired Intang
Slide 22: 2021 Reconciliation of Profitability Measures
2021 Reconciliation of Profitability Measures EBITDA to EBIT bridge Group Surface Solutions Polymer Processing Solutions FY21 FY20 FY21 FY20 FY21 FY20 EBITDA 444 288 232 144 208 150 Depreciation and Impairments -133 -133 -106 -111 -24 -19 Impairments -1 -5 -1 -5 -0 -0 EBITA 309 150 125 29 184 130 Am
Slide 23: 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 24: 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