Oc Oerlikon Corporation Ag · SIX:OERL
Oc Oerlikon — Q2 2012 Earnings Presentation
35 slides from Oc Oerlikon's earnings presentation, Aug 3, 2012
Slide 1: Oerlikon reports strong operating performance in Q2 2012
Oerlikon reports strong operating performance in Q2 2012 Dr. Michael Buscher, CEO Jürg Fedier, CFO Oerlikon Q2 and H1 Results 2012 August 3, 2012
Slide 2: Agenda
Agenda 1 Business Update Q2 2012 2 Financials Q2 2012 and H1 2012 3 Outlook 4 Appendix Page 2 Q2 2012 Results Presentation, August 3, 2012
Slide 3: Strong operating performance in Q2 2012
Strong operating performance in Q2 2012 Group EBIT margin improves to 11.7 % in CHF m / in % Sales* Order intake Order backlog EBIT EBIT margin 994 990 1 033 1 605 115 11.7 0% -7% 956 +24% 1 319 93 9.4 -18% +24% Q2 2011 Q2 2012 Q2 2011 Q2 2012 Q2 2011 Q2 2012 Q2 2011 Q2 2012 Q2 2011 Q2 2012 restated
Slide 4: Sales by region
Sales by region Sales share of Asia increased to 42 % Sales* by market region Q2 2012 Sales* by market region Q2 2011 (continuing operations) (restated) North North America America Europe Europe Other Other regions regions Asia/Pacific Asia/Pacific Oerlikon benefits from growth opportunities world
Slide 5: Oerlikon Segments 1/2
Oerlikon Segments 1/2 Second quarter business review Manmade fiber with continued strong performance, highest order intake for five quarters Natural fiber saw weaker contribution Textile ITMA 2012 in Shanghai demonstrated leading technology position Strong Q2 sales growth in China (25 %) C
Slide 6: Oerlikon Segments 2/2
Oerlikon Segments 2/2 Second quarter business review Strong growth in the tools markets in Japan, Germany and the US Solutions for high-volume automotive components Coating supported growth in Europe 87 coating centers worldwide with continued capacity increase Further regional expansion in
Slide 7: Agenda
Agenda 1 Business Update Q2 2012 2 Financials Q2 2012 and H1 2012 3 Outlook 4 Appendix Page 7 Q2 2012 Results Presentation, August 3, 2012
Slide 8: Key figures by Segment Q2 2012
Key figures by Segment Q2 2012 Group** Textile Drive Vacuum Coating Adv.Tech. in CHF m Order intake 956 496 213 92 126 29 Δ to Q2 2011 -7 % -13 % -5 % -7 % 7% 26 % Order backlog 1 319 1 012 202 79 n/a 26 Δ to Q2 2011 -18 % -24 % +31 % -9 % 4% Sales* 990 520 225 93 126 26 Δ to Q2 2011 - - 7% -13 % 7%
Slide 9: FX impact on Sales, EBIT and EBIT margin
FX impact on Sales, EBIT and EBIT margin Oerlikon Group Sales* Q2 2012 Oerlikon Group EBIT Q2 2012 in CHF m in CHF m 0% -4% +990 +987 +115 +110 -3 0 -4 -1 11.7 11.1 EBIT margin in % Q2 2012 Transaction Translation Q2 2012 Q2 2012 Transaction Translation Q2 2012 reported effect effects FX impact adj.
Slide 10: Return On Capital Employed (ROCE)
Return On Capital Employed (ROCE) ROCE = NOPAT / Capital Employed 2011 H1 2012 ROCE Oerlikon definition of ROCE restated cont. op. in % 17.6% 17.5% 16.5% EBIT 429 496 14.9% - Total current income tax -75 -93 - Total deferred income tax -8 -18 NOPAT 346 385 Net Operating Assets 2 108 2 217 + Current
Slide 11: Oerlikon Group key figures HY 2012
Oerlikon Group key figures HY 2012 HY 2011 HY 2012 Δ (restated) (cont. op.) in CHF m Order intake 2 159 1 952 –10 % Order backlog 1 605 1 319 –18 % Sales* 1 900 1 951 +3 % EBITDA (incl. one-time effect property sale Arbon) 276 343 +24 % % of sales 14.5 % 17.6 % EBIT (incl. one-time effect property s
Slide 12: Key figures by Segment HY 2012
Key figures by Segment HY 2012 Textile Drive Vacuum Coating Adv.Tech. in CHF m Order intake 1 000 444 195 253 60 Δ to HY 2011 -16 % -2 % -11 % 4% 20 % Order backlog 1 012 202 79 n/a 26 Δ to HY 2011 -24 % 31 % -9 % 4% Sales* 1 015 449 191 253 43 Δ to HY 2011 4% 8% -9 % 4% -20 % EBITDA 166 62 31 74 -1
Slide 13: Constant range of investments in R&D to secure technological leadership
Constant range of investments in R&D to secure technological leadership Expenditures for R&D in the range of 4-6 % of Sales (restated) in CHF m / as % of Sales 6 194 197 200 6.0 5.5 5 163 5.0 147 5 145 150 4.5 4 4 4.0 4 3.5 100 3.0 74 2.5 2.0 50 1.5 1.0 0.5 0 0.0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2
Slide 14: Oerlikon increased profitability
Oerlikon increased profitability in CHF m HY 2011* HY 2012 Δ Result before interest and taxes (EBIT) 199 267 +34 % in % of sales 10.5 % 13.7 % Financial result -54 -9 n/a Result before taxes (EBT) 145 258 +78 % in % of sales 7.6 % 13.2 % Income taxes -47 -75 n/a in % of EBT 32.4 % 29.1 % Result from
Slide 15: Financial Result
Financial Result in CHF m 35 -44 Financial result 267 258 CHF -9 m Financial income includes proceeds from Pilatus divestment Interest expenses of CHF 26 m Financial result FY 2012 expected at around CHF -100 m EBIT Financial Financial EBT HY 2012 Income Expenses HY 2012 Financial result F
Slide 16: Tax Result
Tax Result in CHF m 258 51 Tax rate H1 2012 at 29 % Current income tax due to 24 183 profitability contribution of most subsidiaries Main tax payers in China, Germany and India Deferred tax expenses mainly due to utilization of tax loss carry forwards Tax rate FY 2012 at around 35 % due to
Slide 17: Maintaining a solid balance sheet
Maintaining a solid balance sheet FY 2011 HY 2012 in CHF m Cash and cash equivalents 742 620 Trade receivables 635 680 Inventories 582 609 Property, plant and equipment 915 817 Intangible assets 1 261 1 234 Total other assets 438 500 Total assets 4 573 4 460 Trade payables 457 410 Current customer a
Slide 18: Net Working Capital
Net Working Capital* Net Working Capital* FY 2007-HY 2012 in % of Sales and CHF m 14% 18% 17% 8% 7% 10% 837 Net working capital 772 increased due to higher receivables, higher inventory and influenced by increased customer advances 499 Net Working Capital 391 HY 2012 at 10 % of 302 289 12-month
Slide 19: CAPEX close to depreciation level
CAPEX close to depreciation level CAPEX / depreciation & CAPEX Depreciation & amortization * amortization ratio * * in CHF m in CHF m -3% +25% 78 76 Mid-term target 70 corridor 1.20 56 1.00 HY 2011 HY 2012 HY 2011 HY 2012 restated cont. op. restated cont. op. * Restated ** Excluding impairment Page
Slide 20: Consolidated Cash Flow Statement HY 2012
Consolidated Cash Flow Statement HY 2012 in CHF m -118 -85 25 205 742 Receivables -20 Inventories -44 -266 Payables/liabilities -85 Customer advances 64 Total -85 624 3 CAPEX PP&E -64 Dividends paid -66 CAPEX intangibles -10 Interest paid -26 Purchase of financial Repayment of investments -2 financi
Slide 21: Comprehensive Refinancing 2012: Increased strategic and operational flexibility
Comprehensive Refinancing 2012 Increased strategic and operational flexibility New Syndicated Credit Facility Swiss Bond Unsecured transaction CHF 300 m Swiss Bond CHF 700m Credit Facility (Facility A) 4-year maturity revolving facility of CHF 450 m and Coupon of 4.25 % ancillary facility
Slide 22: Comprehensive Refinancing 2012: Reduction of debt and diversification
Comprehensive Refinancing 2012 Reduction of debt and diversification Development of debt position FY 2011-Post-Refinancing July 2012 -36% 832 687 Facility B (old) 345 196 535 230 Facility A (new) Facility C (old) 483 486 300 Bond Others 4 5 5 FY 2011 HY 2012 Post Refinancing July 2012 Successful clo
Slide 23: Agenda
Agenda 1 Business Update Q2 2012 2 Financials Q2 2012 and H1 2012 3 Outlook 4 Appendix Page 23 Q2 2012 Results Presentation, August 3, 2012
Slide 24: Outlook Oerlikon Group 2012 increased
Outlook Oerlikon Group 2012 increased Next financial reporting: Q3 2012 on October 30 Guidance The global economic environment remains uncertain and difficult to assess FY 2012 Assuming successful closing of Solar Segment divestment based on Based on the strong Q1 and Q2 performance and a sust
Slide 25: Questions & Answers Session
Questions & Answers Session Page 25 Q2 2012 Results Presentation, August 3, 2012
Slide 26: Agenda
Agenda 1 Business Update Q2 2012 2 Financials Q2 2012 and H1 2012 3 Outlook 4 Appendix Page 26 Q2 2012 Results Presentation, August 3, 2012
Slide 27: Oerlikon's Identity
Oerlikon’s Identity Tagline Vision Mission Page 27 Q2 2012 Results Presentation, August 3, 2012
Slide 28: 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 29: Oerlikon Shares
Oerlikon Shares Oerlikon Shares Oerlikon Shareholder Structure (as of June 14, 2012) Listed on Swiss Exchange (SIX) since 1975 Renova Group Securities symbol: OERL Securities number 81 682 Free Float 51,14% 48,86% ISIN: CH0000816824 No. of shares outstanding: 323 279 836 shares* Re-entry
Slide 30: Coverage 8 Buy/Accumulate – 3 Hold/Neutral
Coverage 8 Buy/Accumulate – 3 Hold/Neutral Broker Analyst Recommendation Date of last update Target Price (as of August 2, 2012) AlphaValue Pierre-Yves Gauthier Buy 06.05.2012 12.00 Bank am Bellevue Michael Studer Hold 02.05.2012 9.50 Bank Vontobel Michael Foeth Buy 25.07.2012 11.00 Berenberg Bank B
Slide 31: 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 32: 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 re
Slide 33: 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 33 Q2 2012 Results Presentation, August 3, 2012
Slide 34: 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 E-mail: ir@oerlikon.com Page 34 Q2 2012 Results Presentation, August 3, 2012
Slide 35: 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