OC Oerlikon : Earnings Presentation Q2/HY 2022

Q2 2022 Financial Results

3 August 2022

Page 1

Overview Q2

Strong Q2 performance confirming growth strategy

Orders

• Q2 order intake +19%, including +6% from M&A 1)
• Driven by Polymer Processing Solutions

+19.5%

FX adj: +21.7%

647	773
Q2'21	Q2'22

+21.2%

FX adj: +23.6%

1'289	1'563
H1'21	H1'22

Sales

• Q2 sales +17% including +6% from M&A 1)
• Sales +24% in Polymer Processing Solutions and +10% in Surface Solutions despite supply chain challenges

+16.9%

+19.7%

FX adj.: +19.7%

FX adj.: +22.4%

734

1'432

628

1'196

Q2'21

Q2'22

H1'21

H1'22

Operational EBITDA

Profit

• Q2 operational EBITDA +15%
• Q2 margin of 17.4% and H1 margin of 17.2%

+15.0%

111	128
17.7%	17.4%
	Margin
Q2'21	Q2'22

+22.2%

202247

16.9%17.2%

Margin

H1'21H1'22

1) INglass and Coeurdor consolidated as of June 1, 2021; * Numbers in financial charts of this presentation are in CHF m except when stated otherwise

Page 2

End Markets: Solid Demand Partly Offset by Market Disruptions

Filament

33% of 2021 Group sales

Market environment	Growth

Non-Filament		General Industrial &		Automotive
19%		Tooling	14%
	29%

Growth	Growth	Return to growth
		as shortages fade

Aviation

5%

Recovery from low levels

• Order book filled for 2023; 2024 firmly on-track
• Structural need for filament equipment from growing population
• Manmade fibers with better availability and resource

intensity than natural fibers

• Flow control benefitting from lightweight trend in automotive; market share gains in non- automotive enabled by customer synergies with Surface Solutions
• Strong demand for plant engineering solutions, such as polycondensation plants
• Revitalization of interiors (carpet yarns) in US

• General industry recovered YoY, though end-market supply chain bottlenecks hampering the recovery speed (e.g. in Tooling)
• Strong demand in semiconductors with increasing penetration of PVD where Oerlikon is leading; solid demand in luxury continued
• Gaining order momentum in oil & gas driving materials business

• Supply chain shortages impacted H1; modest easing of shortages expected in H2
• LMC expecting global light vehicle production up low-teens in H2 compared to H1'22, driven by Asia1)
• Successfully pioneering e-mobility applications (e.g. e-gearing, compressor shaft, differential shaft, thermal insulation systems)

• Aviation recovered off low base
• Mainly driven by recovery of MRO business with increased flying hours
• Domestic passenger growth was flat as Chinese lockdowns masked growth elsewhere; international passenger growth up >300% YoY in April/May 2)

Polymer Processing Solutions		Surface Solutions
Benefitting from market growth, technology		Well-positioned for recovery
leadership and ongoing end-market extension		beyond transitory supply chain shortages

1. LMC forecast at end Q2'22
2. Source: IATA

Page 3

Surface Solutions With Higher Sales and EBITDA

Markets	Orders		Sales

Operational EBITDA

• Supply chain shortages impacting customers; expect continued impacts from shortages in H2, though at a reduced intensity compared to H1
• Chinese lockdowns shifted some business from Q2 into H2

• Orders +3.1% FX adjusted
• Stable order intake to support H2 sales guidance

• Increased +12.3% FX adjusted, including +2.2% from M&A 2)
• Driven by Tooling, General Industries, Aviation and Energy; Automotive impacted by supply chain shortages at customers

• Increased +3.6%
• Margin impacted by shortages in high- margin businesses and by higher input costs; favorable impact of price increases expected in H2
• Temporarily offsetting positive operating leverage and cost efficiencies

Q2'22 sales split by markets 3)

Order intake

						+1.1%
						FX adj: +3.1%
	Energy	Tooling	Americas	APAC	345	348
General
5%	23%
Industry	26%	31%	32%
	11%	26%	45%
Aviation
		Auto-	Europe	Q2'21	Q2'22
		motive

Sales

(3rd party)

+10.0%

FX adj.: +12.3%

	352
320
Q2'21	Q2'22

Operational EBITDA 1)
+3.6%
60	63
18.8%	17.7%
Margin
Q2'21	Q2'22

1. Margin based on unrounded figures and total sales, including intercompany sales; 2) Coeurdor consolidated as of June 1, 2021; hence 2.2% refers to April and May 2022 sales; 3) Minor changes in geographical sales split disclosure following introduction of new geographical organization in 2022; Q1'22 s ales split was 30% APAC, 46% Europe, and 23% Americas

Page 4

Polymer Processing Solutions With Significant Growth

Markets	Orders		Sales

Operational EBITDA

• Filament order book filled for 2023 and firmly on-trackin 2024; large Filament customers expanding in the value chain; demand for energy efficient equipment
• Non-Filamentwith strong demand for plant engineering solutions; revitalization of carpet yarns in US; Flow Control experiencing strong demand

• Strong order intake, driven by Filament and Non-Filament
• Chinese lockdowns shifted some orders and sales from Q2 into H2; current lockdowns with no major impact on 2022 guidance expected

• Increased +24% driven by strong demand and solid execution; includes CHF +29m or +9% YoY from M&A 3)
• Non-Filamentsales +42%, driven by INglass and organic growth
• H1 sales of CHF 752m, well on-track for FY guidance of CHF 1.5bn

• Increased +33% in Q2 YoY
• Higher margin due to operating leverage, cost control, and INglass acquisition which had a strong quarter
• H1 margin of 16.4%, roughly in-line with FY guidance of ~16.0%

Q2'22 sales split by markets 1)

Flow Control		Americas
	14%	Europe	12%
Nonwoven &
Plant						15%
13%
Engineering
					62%
		11%
Industrial &							74%

Interiors

FilamentAPAC

Order intake

+40.4%

FX adj.: +42.9%

	425
302
Q2'21	Q2'22

Sales

(3rd party)

+24.0%

FX adj.: +27.3%

	383
309
Q2'21	Q2'22

Operational EBITDA 2)

	+33.5%
	65
49
15.9%	17.1%
Margin
Q2'21	Q2'22

1. Minor changes in geographical sales split disclosure following introduction of new geographical organization in 2022; Q1'22 s ales split was 74% APAC, 18% Europe, and 8% Americas; 2) Margin based on unrounded figures and total sales, including intercompany sales; 3) INglass consolidated as of June 1, 2021, hence CHF 29m refer to April and May 2022 sales

Page 5