OC Oerlikon : Earnings Presentation FY 2025

About this update from Oc Oerlikon Corporation Ag

‌2025‌ Financial Results 24 February 2026 ‌Agenda Strategy Update & 2025 Overview Financials & Outlook Q&A Page 2 50% cost savings through reconditioning 20x tool life extension through coating 5% efficiency increase through coating ‌Consistent strategy execution over the past decade to drive future performance Pure-play strategy to unlock shareholder value transforming Oerlikon to a global leader in material science and surface technologies Resilient and leaner, to unlock performance and shareholder value Build resilience and capture value from growing markets from Tooling and Automotive to a large range of industries, focused on develop applications to new industries such as in medical, semicon and luxury Continued innovation to maintain tech leadership with an average of 4 to 5% of sales invested in R&D, leading to more than 500 new patents over the last 10y; supporting clients' performance with innovation Agility through lean administration by reducing Administration costs by more than 45% since 2019 ‌Portfolio diversification to increase resilience 2025 Mid-term Leverage tech leadership into new markets PVD/CVD/Thermal Spray Materials Science Advanced Manufacturing Focus to develop industry applications Semiconductor Medical Luxury Defense Luxury Energy Tooling Adding growth markets General industry Automotive Increase market share in the targeted industries Aviation Upside on profitability Moving closer to customers 732 488 348 Europe APAC Americas 2025 Sales in mCHF 1 Leverage regional organization to support local growth strategy 1) Pure-play scope, excluding Barmag ‌Innovation leadership to create value for our customers 5% of revenue invested in R&D in 2025 … … to lead innovation Equipment & Materials Coating services Components Equipment & Materials INSPIRA - Mega Carbon Coater Sinplex PRO ID Gun Surface Two (Aviation) Brake disc powder (Automotive) MetcoMed Ti64 (Medical) MetcoMed CoCrMo F75-A (Medical) Components EYEgate (HRSflow - PMCL) Stargate (HRSflow - PMCL) GlowHRS (automotive) Coatings BALINIT Optura (Tooling - PVD) BALINIT Cavita (Medical) BALORA PVD MCrAlY (Aviation) BALDIA Varia (Tooling - CVD) Dielectric Coating (Automotive) Increasing customer focus to boost market adoption, using improved capital allocation framework ‌Oerlikon Luxury: leveraging our technology to a new market 2021- 2023 Setting the base for diversification Strategy to leverage technology leadership into new areas Sector relying on electroplating, presenting opportunity to establish PVD technology, more sustainable and efficient 2 major acquisitions: Coeurdor in Restructuring and investment to position upon market recovery 2023 - 2025 Sector suffering from a transitory low demand in China post Covid, delaying adoption of new technology Impairment and restructuring costs in 2025 to optimize costs base Investing into new MIM production line in Italy and new PVD coater in Portugal Positioned for growth From 2026 Adoption of PVD expected to accelerate after downturn Lower cost base to capture operational leverage Driving differentiation, with new product launched (e.g. Deep Black) 2021, followed by Riri in 2023 # pieces In % 20 15 10 5 0 Share of stainless steel and PVD 2022 2024 2026 2028 2030 Capturing growth opportunities in new markets Positioned to benefit from market recovery Serve 100% of top brands ‌Foresee end markets stabilizing in 2026 after subdued 2025; continuous supporting trend in aviation General Ind. & Tooling 2026 markets 40% of 2025 sales 1 Automotive 30% Aviation & energy 20% Luxury 2025 markets 10% 2025 markets 2026E markets 2025 markets 2026E markets 2025 markets 2026 markets Euro Area industrial PMIs remained in contraction during 2025, without evidence of recovery US and China PMIs remained broadly neutral, driven by uncertainties due geopolitical risks and additional burden from evolving tariff regimes 2026 expected to remain challenging, with regional discrepancies Growth in light vehicle production driven by Asia in 2025 2 , Europe and Americas remained in contraction Uncertainties in EU generated by changing industrial policies New car model launch decreased by 5% in 2025 4 mainly affected by US, Europe remaining stable and Asia improving Light vehicle production expected to improve in H2 2026 in Europe and US 2 Continuous supporting environment driven by MRO activities, with increasing flying hours New plane production supported by passenger growth and energy efficiency New aircraft deliveries to keep increasing in the next years with improving manufacturing capacities Increase in datacenter power needs driving demand for industrial gas turbine 5 Continued soft end markets due to subdued demand in China, and pressure on Western shoppers' spending Swiss watch exports -1% in 2025 Positive trend to move to more sustainable coating technology 2025 marked by broad end-markets contraction; 2026 expected to stabilize Pure play scope, excluding Barmag reported as discontinued Source LMC as per Dec 25; 3) Source IATA; 4) Source LMC and JSC as per Dec 25; 5) Source HIS Markit ‌Key figures 2025 1 Order Intake CHF 1.7bn +6.5% vs 2024 at constant FX Book to bill Q4'25 1.08x Sales CHF 1.6bn -0.3% vs 2024 at constant FX Leverage ratio 2 3.4x CHF 271m -11% as per March 2026 3 2.7x Op. EBITDA (17.3%) vs 2024 as per end of 2026 3 <2.5x Pure-play scope, excluding Barmag; EBITDA margin refers to operational EBITDA; 2) pro forma 2025 including Barmag proceeds after proposed dividend payment; 3) expected ‌Sustainability is in Oerlikon's DNA 28% 2030 ESG targets on-track Oerlikon's coatings for Tooling and Aviation save >100% of Swiss CO 2 emissions Scope 1 & 2: 23.1 kt CO₂e reduction in 2025, representing -17% compared to 2024 47% electricity from renewable sources: 39 sites use 100% renewable electricity, and 47 sites use at least 75% renewable electricity compared to 2024 Sites with installed energy management systems increased to 93% (2024 at 76% and 2019 baseline at 11%), representing 97% of the total energy consumption Next steps… Validation of Targets (GHG emissions Scope 1, 2 and 3) by Science Based Targets initiative (SBTi) in 2026 Launch the EU CSRD and EU Taxonomy compliance preparation for disclosure (gaps identified in 2025) 1) 20x reflects average across tooling, with peak extension up to 160x; 2) Across 2019 installed base of aero engines; 3) incl. HRSflow 20x lifetime extension 1 of a metal tool through coating… resulting in significant metal saving, saving annually ~8.3 mio metric tons CO 2 or ~ 28% of Swiss CO 2 emissions 5% efficiency increase in aero turbines through coatings… equaling ~26 mio metric tons of CO 2 reduction annually 2 or ~ 88% of Swiss CO 2 emissions PVD coatings in Luxury generate -97% less waste compared to prevailing electroplating Coatings extend lifetime of wind turbine gears up to 70 times 88% Waste Reduction -97% 70x More Rotation ‌Conclusion: Executing strategically to benefit upon market end markets Dividend per share of CHF 0.85 per share proposed (ordinary dividend of CHF 0.20 and one-time extraordinary dividend of CHF 0.65) Executing on our key priorities to strengthen value creation as markets recover Successfully divested Barmag with closing in February 2026 On track with pure play strategy execution; becoming agile and reduce cost overhang following Barmag divestment 2025 with strong Order Intake and flat sales despite challenging end markets, geopolitical uncertainties and trade tensions Strong resilience supported by innovation leadership and continued diversification into new markets; well positioned to accelerate when markets recover ‌Financials & Outlook Marco Freidl CFO ‌Oerlikon delivers stable sales in 2025 1 Continuing operations Markets Orders Sales Operational EBITDA Weak customer purchasing behavior due to difficult macro environment, geopolitical uncertainties and trade tensions Euro area PMIs in contraction , China around neutral level and US marginally improving Support from aviation with continuing growth of passenger traffic and increasing production capacities 2025 sales split by markets Increasing at +6.5% FX adjusted YoY Acceleration in Q4'25 compared to prior year at constant FX, despite weak PMI environment Book-to-bill ratio at 1.06 for the full year (Q4 at 1.08) +2.0% FX adj.: +6.5% Order intake Flat organic YoY FX adjusted, in a context of subdued end markets Q4 improving YoY at constant FX, supported by aviation and energy Luxury stabilizing at a low level Sales -4.3% FX adj.: -0.3% (3 rd party) 17.3% operational EBITDA margin, Impacted by mix effect and FX Counteracted by efficiency, innovation with new product launch and pricing Corporate costs adjustment for pure play on-track , >50% achieved in 2025, more effects following Barmag closing Executing structural cost out actions to support margin Operational ROCE at 4.7%, driven by transitorily lower margin Operational EBITDA 2 Energy Luxury 10% Tooling 20% Americas 22% APAC 31% 1'622 1'655 Margin 17.3% 18.5% 271 -10.9% 304 1'639 1'568 General Industry 22% 5% 30% 15% Aviation Automotive 47% Europe 2024 2025 2024 2025 2024 2025 Pure play scope, excluding Barmag reported as discontinued; 2) Margin based on unrounded figures and total sales, intercompany sales; 2024 pro forma without Barmag, 3) Return on Capital Employed (ROCE) is defined as NOPAT (Operational EBIT after Tax before Amortized of Acquired Intangibles (tax adjusted)) over the Capital Employed; Capital Employed is composed of third-party net operating assets before Amortized Intangibles assets (tax adjusted), current income tax receivables and current income taxes payable and deferred tax assets and liabilities ‌Reinforcing the foundation for profitable growth 1 Cost discipline 45% overhead savings since 2019, further accelerating with pure-play execution Proactively began streamlining admin functions in 2024, ahead of divestment, to avoid cost overhang Continued focus on efficiency through digitalization, automatization and footprint Admin expenses 276 -45% 151 optimization including relocation of coaters between existing sites 2019 2025 Portfolio optimization Stringent portfolio reviews Structurally improving profitability with the restructuring in automotive (combustion engine related), Luxury and some R&D projects in 2025 Upcoming innovation attractively priced , enabled by strengthened capital allocation framework with increased focus on customers and market adoption Strengthened tracking of innovation and aligned compensation Capital allocation framework ROCE Allocate Capex and R&D Selectively reinvest to bring to top right Sales CAGR Gross margin Current portfolio Upcoming innovation Enabling profitable growth Taking measures to structurally improve mid-term profitability Eliminate subscale and dilutive products in materials portfolio to reduce complexity, replacing with more efficient solutions # Product references -53% 2.100 988 2020 2025 Pure play scope, excluding Barmag reported as discontinued ‌Clear focus on balance sheet strengthening Executing on commitment with 2/3 of Barmag proceeds used for deleveraging Further elements of improvement Reducing leverage to 2.7x pro forma, following repayment of CHF 475m term loan out of CHF 716m proceeds Lower EBITDA transitorily impacting leverage 3.4x 2.8x 2.7x <2.5x ~2.0x <2.0x Pro forma equity ratio significantly improving from 25% to 41% 1 Continued tight focus on cost, NWC, Capex and cash management Launched successfully CHF 350m bond in September 2025 and repaid CHF 250m bond in November 2025 Access to CHF ~960m liquidity (cash & RCF) as per YE'25 After Barmag divestment, substantial reduction of restricted cash by CHF 185m and pension liabilities by CHF ~110m Target leverage ratio to decrease below 2x in the mid term 2024 2025 pro forma Oerlikon group incl. Barmag est. Mar 26 including Barmag proceeds, after dividend 2026 2027 Mid term Extraordinary dividend based on Barmag divestment Total dividend of CHF 0.85 per share proposed (CHF 0.20 regular dividend and CHF 0.65 one-time extraordinary dividend from Barmag proceeds) 1) Pro forma as per 31.12.2025, including proceeds of Barmag divestment after proposed dividend ‌Further improvement of leading ESG ratings Oerlikon ESG rated top 20% in average within industrial sector 1 Sustainalytics MSCI EcoVadis 2 CDP Climate Change & Water Security External validation and recognition Climate change Water security medium risk medium risk high risk AAA AAA A 71 70 <50 B B C B B C Sector 2024 2025 Sector 2024 2025 Sector 2025 2026 average score score average score score average score Score Sector 2024 2025 Sector 2024 2025 average score Score average score Score Excluding CDP not available; MSCI in top 15%, EcoVadis in top 18%, Sustainalytics in top 34%; 2) SBTi commitment and target submission after Ecovadis assessment ‌2026 guidance 1 Reflecting soft year for end markets and negative mix effect Sales EBITDA margin 3 Low single digit % organic increase 2 Reflecting expectation of continuing soft end markets, especially in general industries, tooling, automotive and luxury ~17.5% operational EBITDA margin Continued adverse mix effect balanced by corporate cost-out actions with sale of Barmag and additional structural cost-out measures (portfolio / footprint optimization initiated in 2025) 1) Pure play scope, excluding Barmag; 2) at constant FX; 3) operational EBITDA ‌Q&A ‌Appendix ‌2026 Financial Calendar 30 April 2026: Q1 2026 trading update 6 August 2026: H1 2026 financial results 9 September 2026: Oerlikon Capital Market Day in Zurich 29 October 2026: Q3 2026 trading update ‌Reconciliation of net debt development including Barmag divestment impact before dividend 1,320 3.4x 91 160 1,106 1,160 43 6 446 2.8x 158 716 Reported 2024 Increase in cash & cash equivalents Decrease in cash like items Increase in debt and other liabilities Oerlikon incl. Barmag 2025 Barmag net cash Oerlikon reported net debt 2025 1 Proceeds from Barmag divestment Intercompany claim Pro forma Oerlikon net debt 2025 considering Barmag proceeds Pro forma net debt development including Barmag Bridge to reported net debt 2025 excluding intercompany Barmag divestment impact 1) excluding intercompany net debt / cash towards Oerlikon ‌Pro forma 2025 assets and equity including Barmag divestment impact Equity 1,465 1,188 929 277 536 Total equity reported 2025 Assets 3,761 Capital gain including CTA recycling & other Pro forma after divestment 2,895 908 1,022 277 475 3,647 Proposed dividend Pro forma 2025 including Barmag gain net of dividend Equity ratio significantly strengthening from 25% to 41% following Barmag divestment Total Assets held Barmag Assets pro Term loan Proposed Pro forma reported 2025 for sale proceeds forma after repayment dividend 2025 including including divestment Barmag intercompany proceeds net debt repayment of dividend ‌Pro forma 2025 assets and liabilities including Barmag divestment impact Assets 2,895 277 475 908 1,022 3,761 3,647 Liabilities Total reported 2025 Assets held for sale Barmag proceeds including intercompany debt repayment 2,831 Assets pro forma after divestment Term loan repayment Proposed dividend Pro forma 2025 including Barmag proceeds net of dividend 2,181 1,706 475 650 Total liabilities reported 2025 Barmag Sale Pro forma after divestment Term loan repayment Pro forma 2025 after Barmag divestment and term loan repayment ‌On-track with 2030 ESG targets 1 2025 updates Committed to Science Based Targets initiative (SBTi) and near-term targets submitted in 2025 (target validation process ongoing) Double Materiality Assessment disclosed Progress towards 2030 targets 75% 47% 21% Increase % of electrical energy from renewable sources Progress on other indicators versus 2024 81% 85% Increase % R&D investment in products that must cover ESG criteria for the first time in Annual Report 2025 GHG emission intensity (Scope 1&2) decreased from 84.2 to 73.2 tCO₂e/million CHF YoY driven by higher share of renewable electricity and grid greening 85% of R&D expenditure in sustainable products (2024: 81%) Energy management systems at 93% of sites (2024 at 76% and 2019 baseline at 11%) Reduce % of disposed waste Baseline 2025 2030E 33% 27% 53% Baseline 2025 2030E Reduce GHG emission intensity (scope 1&2) 2 2024 2024 84.5 2025 2025 73.2 Procurement: supplier spending mapped with EcoVadis rating process reached 47% level; EcoVadis score of our suppliers improved 2% Reduce rate of recordable work-related injuries (TAFR) 0.48 <0.50 0.87 Baseline 2025 2030E Increase % of women in management and leadership roles 14% 15% 2024 2025 1) Pure-play scope, 2) tons CO 2 eq / CHFm sales Continuing operations EBITDA to EBIT bridge FY 25 FY 24 EBITDA 232 292 Depreciation -94 -99 Impairments 1 -16 -1 EBITA 121 192 Amortization of Acquired Intangibles -33 -40 Other Amortization -36 -38 Impairments 2 -23 -1 EBIT 29 113 ‌2025 reconciliation of profitability measures - Oerlikon 1 1 Impairment of machine and buildings mainly related to the restructuring of Nitriding and some R&D activities 2 Impairment of Intangible Assets mainly related to Eldim and some R&D activities Operational profitability reconciliation 1 FY 25 FY 24 Operational EBITDA 271 304 Restructuring expenses 1 -32 -4 Discontinued activities -1 -2 Acquisition and Integration costs -0 -1 Separation costs -7 -6 EBITDA 232 292 FY 25 FY 24 Restructuring mainly related to cost-out measures in luxury (AMOM), Eldim and automotive (combustion engine related) Operational EBIT 107 128 Restructuring expenses 1 -32 -4 Impairments related to restructuring 1 2 -38 -0 Discontinued activities -1 -4 Acquisition and Integration costs -0 -1 Separation costs -7 -6 EBIT 29 113 1)Pure play scope, excluding Barmag reported as discontinued ‌H2 reconciliation of profitability measures EBITDA to EBIT bridge H2 25 H2 24 EBITDA 110 142 Depreciation -46 -49 Impairments 1 3 -1 EBITA 67 93 Amortization of Acquired Intangibles -16 -19 Other Amortization -17 -19 Impairments 0 -1 EBIT 33 54 Operational profitability reconciliation 1 Mainly partial reversal at Nitriding 1 H2 25 H2 24 Operational EBITDA 139 151 Restructuring expenses 1 -25 -3 Discontinued activities -0 -0 Acquisition and Integration costs -0 -1 Separation costs -3 -4 EBITDA 110 142 H2 25 H2 24 Operational EBIT 61 64 Restructuring expenses 1 -25 -3 Impairments related to restructuring 3 -0 Discontinued activities -1 -1 Acquisition and Integration costs -0 -1 Separation costs -3 -4 EBIT 33 54 Restructuring mainly related to cost-out measures in automotive (combustion engine related) and Luxury (AMOM) ‌Return on Capital Employed (ROCE) H1'25 LTM 2025 Operational EBIT 110 107 + Amortization of acquired intangibles 36 34 - Total current income tax -54 -58 - Total deferred income tax* -15 -1 NOPAT excluding amort/imp of acquired intangibles 78 82 Net Operating Assets (only third-party) 2,097 2,015 - Amortized Acquired Intangibles -294 -275 + Current income tax receivables 13 18 + Total deferred tax assets 70 68 - Current income tax provision -23 -30 - Deferred tax liabilities* -62 -59 Capital Employed excluding amortized acquired intangibles 1,801 1,738 ROCE (excluding effects from amortized acquired intangibles) 4.3% 4.7% *Excluding effects from amortized acquired intangibles Refers to operational EBIT; Net operating assets is based on operating assets minus operating liabilities; Operating assets include total assets without cash and cash equivalents, current financial investments, current income tax receivables and deferred tax assets; Operating liabilities include total liabilities without financial and lease liabilities, current income taxes payable, non-current post-employment benefit liabilities and deferred tax liabilities ‌Investor Relations Aymeric Jamin [email protected] +41 58 360 96 59 [email protected] https://www.oerlikon.com/en/investors ‌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 truth, accuracy or completeness of the information provided in this document, Neither Oerlikon nor any of its directors, officers, employees or advisors, nor any other person connected or otherwise associated with Oerlikon, shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document. The contents of this document, including all statements made therein, is based on estimates, assumptions and other information currently available to the management of Oerlikon. This document contains certain statements related to the future business and financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking statements contained herein could be substantially impacted by risks, influences and other factors, many of which are not foreseeable at present and/or are beyond Oerlikon's control, so that the actual results, including Oerlikon's financial results and operational results, may vary materially from and differ than those, expressly or implicitly, provided in the forward-looking statements, be they anticipated, expected or projected. Oerlikon does not give any assurance, representation or warranty, expressed or implied, that such forward-looking statements will be realized. Oerlikon is under no obligation to, and explicitly disclaims any obligation to, update or otherwise review its forward-looking statements, whether as a result of new information, future events or otherwise. This document, including any and all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Oerlikon for the purchase or disposal of, trading or any transaction in any Oerlikon securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions. Page 28

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