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    OERL   CH0000816824

OC OERLIKON CORPORATION AG

(OERL)
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OC Oerlikon : Media Release Q2/HY 2021

08/03/2021 | 06:15am EST

Ad hoc announcement pursuant to Art. 53 LR

News

Second-Quarter and Half-Year 2021 Results

Increased Guidance Reflects Positive Business Momentum

in Both Divisions, Effective Cost Measures and Recent

Acquisitions

  • Strong second quarter Group results with +23% in sales and +98% in operational EBITDA vs. prior year. Group operational EBITDA margin at 17.7%.
  • Polymer Processing Solutions Q2 sales increased by 25% and operational EBITDA by 31% year-over-year, driven by strong execution. Operational EBITDA margin at 15.9%.
  • Surface Solutions' significant improvement in Q2 order intake of +45% and sales of +22% vs. prior year, mainly attributable to capturing business as demand picks up. Operational EBITDA margin improved to 18.8%.
  • 2021 guidance increased, factoring in strong operating momentum in both Divisions, sustained cost-out benefits and acquisitions. 2021 sales expected to be around CHF 2.65 billion and operational EBITDA margin to be around 16.5%.

Key figures for the Oerlikon Group as of June 30, 2021 (in CHF million)

Q2 2021

Q2 2020

H1 2021

H1 2020

Order intake

647

604

7.2%

1 289

1 081

19.3%

Order backlog

705

647

8.9%

705

647

8.9%

Sales

628

510

23.2%

1 196

1 039

15.1%

Operational EBITDA1

111

56

97.6%

202

117

72.5%

Operational EBITDA margin1

17.7%

11.1%

660 bps

16.9%

11.3%

560 bps

Operational EBIT1

58

6

>100%

99

15

>100%

Operational EBIT margin1

9.2%

1.2%

800 bps

8.3%

1.5%

680 bps

Net result

-

-

-

72

-32

n.a.

1 For the reconciliation of operational and unadjusted figures, please see table I and II on page 2 of this release.

Pfäffikon, Schwyz, Switzerland - August 3, 2021 - "We are pleased to deliver a strong second quarter and half-year peformance, confirming our strategy and the actions we took over the past two years," said Dr. Roland Fischer, CEO Oerlikon Group.

"Surface Solutions continued to capture business as demand picks up, and the improved EBITDA margin underlines the continued positive effects from our cost actions. Polymer Processing Solutions saw healthy demand in both filament and non-filament businesses. Our strategic diversification in polymer processing, including flow control and sustainable recycling technologies, is expected to generate additional revenue opportunities in the coming years," added Dr. Fischer.

"In view of our strong business momentum and the acquisitions of INglass and Coeurdor, we are increasing our guidance. We expect 2021 sales to be around CHF 2.65 billion (previously: CHF 2.35-2.45 billion), and the operational EBITDA margin to be around 16.5% (previously: 15.5%-16.0%)," concluded Dr. Fischer.

OC Oerlikon Management AG, Pfäffikon

Telephone: +41

58 360 96 96

Churerstrasse 120, P.O. Box

Fax: +41

58 360 91 96

CH-8808 Pfäffikon SZ

www.oerlikon.com

1/4

Strong Second Quarter

Group orders increased across all regions by 7.2% to CHF 647 million, and sales were up 23.2% to CHF 628 million, driven by recovery in Surface Solutions and higher demand in Polymer Processing Solutions. At constant exchange rates, Group sales increased by 22% to CHF 622 million.

The operational EBITDA for the second quarter nearly doubled (+97.6%) to CHF 111 million, corresponding to a margin of 17.7%. The latter represents an increase of 660 basis points versus the prior year, driven by positive operating leverage and structural cost measures. Operational EBIT for Q2 2021 was CHF 58 million, or 9.2% of sales (Q2 2020: CHF 6 million, 1.2%). Q2 2021 EBITDA was CHF 112 million or 17.8% of sales (Q2 2020: CHF 34 million, 6.7%) and EBIT was CHF 56 million, or 9.0% of sales (Q2 2020: CHF -22 million, -4.2%).

Oerlikon Group 2021 Half-Year Overview

In the first half of 2021, the Group's order intake increased by 19.3% year-on-year to CHF 1 289 million and sales were up 15.1% to CHF 1 196 million. Operational EBITDA for the half year amounted to CHF 202 million, corresponding to a margin of 16.9%. Operational EBIT was CHF 99 million, or 8.3% of sales. EBITDA was CHF 200 million, or 16.7% of sales (HY 2020: CHF 92 million, 8.9%), and EBIT was CHF 95 million, or 7.9% of sales (HY 2020: CHF -16 million, -1.5%). The reconciliation of the operational and unadjusted figures can be found in the tables below.

Table I: Reconciliation of Q2 2021 and H1 2021 operational EBITDA and EBITDA1

In CHF million

Q2 2021

Q2 2020

H1 2021

H1 2020

Operational EBITDA

111

56

202

117

Income/Expenses related to restructuring

1

-21

1

-21

Expenses related to discontinued activities

-

-1

-

-3

Expenses related to acquisition and integration costs2

-1

-

-3

-

EBITDA

112

34

200

92

Table II: Reconciliation of Q2 2021 and H1 2021 operational EBIT and EBIT1

In CHF million

Q2 2021

Q2 2020

H1 2021

H1 2020

Operational EBIT

58

6

99

15

Income/Expenses related to restructuring

1

-21

1

-21

Expenses related to discontinued activities

-

-2

-

-4

Impairment charges

-2

-5

-2

-5

Expenses related to acquisition and integration costs2

-1

-

-3

-

EBIT

56

-22

95

-16

1 All amounts (including totals and subtotals) have been rounded according to normal commercial practice. Thus, an addition of the figures presented can result in rounding differences. 2 Since Q2 2021, operational EBITDA and operational EBIT are additionally adjusted by acquisition and integration costs. For comparability, prior period figures have been adjusted accordingly.

In addition, prior year figures have been adjusted retrospectively for activities that recently have been discontinued.

The net income for the first half of the year increased by CHF 104 million to CHF 72 million, driven by the improvement in EBITDA. As of June 30, 2021, Oerlikon had CHF 486 million of net debt, attributed to acquisitions and dividend payment. Cash flow from operating activities for the first half of 2021 was CHF 36 million, compared to CHF -5 million in 2020, due to the improved net result.

2021 Guidance Raised

In light of the strong business momentum, continued effectiveness of cost actions and the recent acquisitions, Oerlikon is increasing its 2021 guidance. Assuming markets continue to recover and there are no new major disruptions from the pandemic, the Group expects order intake for the full year to be around CHF 2.75 billion, sales to be around CHF 2.65 billion (previously: CHF 2.35-2.45 billion) and the operational EBITDA margin to be around 16.5% (previously: 15.5%-16.0%). In Polymer Processing Solutions, sales are expected to increase to around CHF 1.35 billion (previously: CHF 1.10-1.15 billion) and the operational EBITDA margin to be between 14.5%-15.0% (previously: ~14.0%). In Surface Solutions, sales are expected to be around CHF 1.3 billion (previously: CHF 1.25-1.30 billion) and the operational EBITDA margin to be between 18.0%-18.5% (previously: 16.5%-17.5%).

OC Oerlikon Management AG, Pfäffikon

Telephone: +41

58 360 96 96

Churerstrasse 120, P.O. Box

Fax: +41

58 360 91 96

CH-8808 Pfäffikon SZ

www.oerlikon.com

2/4

Division Overview

Surface Solutions Division

Key figures for the Surface Solutions Division as of June 30, 2021 (in CHF million)

Q2 2021

Q2 2020

H1 2021

H1 2020

Order intake

345

238

45.0%

672

571

17.7%

Order backlog

168

161

4.0%

168

161

4.0%

Sales (to third parties)

320

262

22.0%

624

587

6.3%

Operational EBITDA

60

18

>100%

115

59

93.0%

Operational EBITDA margin

18.8%

7.0%

1 180 bps

18.3%

10.1%

820 bps

Surface solutions markets, except aerospace and power generation, continued to recover across all regions in the second quarter. Automotive saw strong recovery in the first half of 2021 (Q2: +49% year- over-year) despite challenges with chip shortage. Tooling (Q2: +27% year-over-year) and general industries (Q2: +24% year-over-year) also noted improving trends. The Division succeeded in capturing business as demand returned. Order intake increased by 45% to CHF 345 million and sales increased by 22% to CHF 320 million. The significant year-over-year increase in order intake and sales was driven both by business improvements as well as recovery from the pandemic-impacted 2020 base.

Q2 operational EBITDA improved by ~230% and the EBITDA margin by 1 180 basis points, driven by positive operating leverage, cost control and business mix. Operational EBIT was CHF 20 million, or 6.2% of sales. EBITDA was CHF 62 million or 19.2% of sales (Q2 2020: CHF -4 million, -1.5%). EBIT was CHF 20 million or 6.1% of sales (Q2 2020: CHF -50 million, or -19.1%).

The successfully closed acquisition of Coeurdor in Q2 expands Oerlikon's offering and foothold in the luxury goods market. Oerlikon has been offering innovative surface coatings applied in high-end deco, consumer and white goods. The addition of Coeurdor and its expertise opens up revenue opportunities in the growing luxury sector.

Polymer Processing Solutions Division

Key figures for the Polymer Processing Solutions Division as of June 30, 2021 (in CHF million)

Q2 2021

Q2 2020

H1 2021

H1 2020

Order intake

302

366

-17.4%

618

510

21.1%

Order backlog

537

486

10.6%

537

486

10.6%

Sales (to third parties)

309

248

24.6%

572

452

26.4%

Operational EBITDA

49

37

30.7%

82

56

45.9%

Operational EBITDA margin

15.9%

15.1%

80 bps

14.3%

12.4%

190 bps

The Polymer Processing Solutions Division delivered another strong quarter, driven by demand for filament and plant engineering solutions in China, including staple fibers and continuous polycondensation plants. The carpet yarn market in the U.S. noted initial signs of recovery in the second quarter. Q2 sales increased by 24.6% to CHF 309 million. The Q2 2021 order intake of CHF 302 million was 17.4% lower versus a record second quarter in 2020; first half 2021 order intake was up 21.1% over H1 2020.

Operational EBITDA increased by 30.7% to CHF 49 million, or 15.9% of sales, driven by operating leverage and the INglass acquisition. Operational EBIT was CHF 38 million, or 12.2% of sales (Q2 2020: CHF 30 million, 12.1%). Second-quarter EBITDA was CHF 49 million, or 15.8% of sales (Q2 2020: CHF 37 million, 15.1%) and EBIT was CHF 38 million or 12.2% of sales (Q2 2020: CHF 30 million, 12.0%).

The INglass acquisition, completed in the beginning of June 2021, accelerated Oerlikon's strategy of diversifying its polymer processing business into non-filament areas, such as hot runners and engineering and consultancy services for developing advanced polymer processing products. This acquisition and other organic diversification efforts, such as sustainable recycling of polymers, are expected to generate additional revenues for Oerlikon in the coming years.

OC Oerlikon Management AG, Pfäffikon

Telephone: +41

58 360 96 96

Churerstrasse 120, P.O. Box

Fax: +41

58 360 91 96

CH-8808 Pfäffikon SZ

www.oerlikon.com

3/4

Additional Information

Oerlikon will present its results during a conference call today beginning at 10:30 CEST. To participate, please click on this linkto join the webcast.

To ask questions in the Q&A session, please dial in.

Country

Local toll call numbers

Switzerland

+41

58 310 50 00

UK

+44

207 107 06 13

USA

+1 631 570 56 13

The interim (half-year) report 2021 can be downloaded at http://www.oerlikon.com/interimreport-2021,and the media release, including a full set of tables, can be found at www.oerlikon.com/pressreleasesand www.oerlikon.com/ir.

About Oerlikon

Oerlikon (SIX: OERL) is a global innovation powerhouse for surface engineering, polymer processing and additive manufacturing. The Group's solutions and comprehensive services, together with its advanced materials, improve and maximize the performance, function, design and sustainability of its customers' products and manufacturing processes in key industries. Pioneering technology for decades, everything Oerlikon invents and does is guided by its passion to support customers' goals and foster a sustainable world. Headquartered in Pfäffikon, Switzerland, the Group operates its business in two Divisions - Surface Solutions and Polymer Processing Solutions. It has a global footprint of more than 10 600 employees at 179 locations in 37 countries and generated sales of CHF 2.3 billion in 2020.

For further information, please contact:

Sara Vermeulen-Anastasi

Stephan Gick

Head of Group Communications

Head of Investor Relations

Tel: +41 58 360 98 52

Tel: +41 58 360 98 50

Sara.vermeulen@oerlikon.com

stephan.gick@oerlikon.com

www.oerlikon.com

www.oerlikon.com

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, are 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 from 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.

OC Oerlikon Management AG, Pfäffikon

Telephone: +41

58 360 96 96

Churerstrasse 120, P.O. Box

Fax: +41

58 360 91 96

CH-8808 Pfäffikon SZ

www.oerlikon.com

4/4

Disclaimer

OC Oerlikon Corporation AG Pfäffikon published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 09:55:25 UTC.


© Publicnow 2021
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