oc oerlikon investor presentation june 2012...jun 27, 2012 · key success factors –overview page...

OC Oerlikon Investor Presentation

June 2012

Increase of profitability

Agenda

1 Business Overview

2 Business Development Q1 2012

3 Refinancing 2012

4 Outlook

5 Appendix

OC Oerlikon Investor Presentation, June 2012

Business OverviewSegments

TextileTextileTextileTextileDrive Drive Drive Drive

SystemsSystemsSystemsSystemsVacuumVacuumVacuumVacuum CoatingCoatingCoatingCoating

Advanced Advanced Advanced Advanced

TechnologiesTechnologiesTechnologiesTechnologiesSolarSolarSolarSolar

Textile

solution

provider

Mechatronic,

hydrostatic

and electric

drive systems

Full vacuum

solutions,

components

and services

Coating

services and

equipment

Manufacturing

equipment

supplier of the

semi, PV and

clean tech

industries

Turn key

solutions for

thin film silicon

photovoltaic

Sales 2011*

EBIT 2011* 183

2’037

49

821

59

409

97

484

11

108

-10

323

* in CHF m

Group**Group**Group**Group**∆ to ∆ to ∆ to ∆ to

2010201020102010

4’182

419

16%

>100%

Sale concluded:

closing expected

Q3 2012

** Group EBIT contains corporate/ elimination items, e.g. management and trademark fees, real estate income, income from IT services of CHF 30m


Business OverviewMarkets

* Sales to third parties

� Oerlikon is an innovative technology conglomerate

� Oerlikon is focused on high quality businesses with leading

positions in global markets

� Innovation is at the core of Oerlikon business model across all

segments

� Oerlikon is an early mover in Asia where the company now enjoys

a strong reputation and track record

� Market capitalization of CHF 2.6 bn (as per 31.05.2012)

Market presence and example end markets of Oerlikon Group*

FoodFoodFoodFood ClothingClothingClothingClothing TransportationTransportationTransportationTransportation InfrastructureInfrastructureInfrastructureInfrastructure EnergyEnergyEnergyEnergy ElectronicsElectronicsElectronicsElectronics OthersOthersOthersOthers

2011 Sales* split by geography (CHF m)

Asia

2'031

Europe

1'186

NorthAm

609

Others

356

� Very diversified

applications from

Agriculture machinery

components to machinery

for the textile industryAgriculture Technical

clothing

Automotive Glass

coatings

Wind turbines Touch-

screens

Formula 1

defines percentage

of total Group sales

within respective

market

* according to research by ubc consulting


Business OverviewLong-term relationships with blue chip customers

� Preferred technology supplier to technology leaders in their respective industries

� Global customer base and world leading brand names

� Strong long-term customer relationships


Key Success Factors – Overview

Operational

Excellence

� All Segments achieved substantial gains in Operational Excellence

� Improvement in business processes

� Systematic execution of initiatives

Innovation

� Innovation is an integral part of Oerlikon’s DNA

� Continued expenditures in R&D: CHF 213 million in 2011

� Focus on long-term customer benefits

Global

Footprint

� Taking advantage of growth opportunities around the world

� Sharpened focus on the most important growth markets – China and India

� Penetration of under-represented growth markets (e.g. Brazil, Russia)

Markets� Focus on structural growth markets

� Trends toward urbanization, a growing middle class and technical advancement

are offering opportunities for profitable growth


Key Success FactorsOperational Excellence

Oerlikon Vacuum Oerlikon Drive Systems

Operational Excellence executed

by employees

Automation in Indian factory re-

placed manual labor processes

Measures

Modernization of operations,

integration of workforce,

introduction of lean production

Key achievements

� 30 % higher production output

� 40 % less workforce required

� No lay-offs due to higher

demand

Measures

Teamwork project to identify work-

place improvements, workplace

organization methodologies

Key achievements

� Manufacturing output up 30 %

� Reduced footprint

� Flow of materials optimized

� Reduction of inventory

Oerlikon Solar

Measures

Transformation and optimization

of procurement process

Key achievements

� Reduction of suppliers from

1,700 to little more than 500

� Key supplier approach

� Optimization of supply chain

� Lowered production costs

ThinFab: On-time delivery

increased to 99%


Key Success Factors Innovation – R&D expenditures of CHF 213 million in 2011

Oerlikon Textile

Autocoro 8: new rotor-spinning

machine presented at ITMA

Innovation core

Individually driven spinning

positions with up to

200,000 rpm

Key customer benefits

� Productivity up to 25 % higher

� Up to 480 spinning positions

� Increased flexibility

Future potential

Attracting new customers

and markets

Oerlikon Advanced Tech.Oerlikon Coating

Innovation core

Transfer of optimized transport

concept to demanding 300 mm

advanced packaging applications


� Two to three times faster

� Simultaneous wafer move

� Half as much floor space

Future potential

Entering new applications and

markets

Innovation core

Significantly faster processing

time; S3P™ opens unique

application possibilites


� Up to eight different coating

processes per day

� Smooth and dense coatings

Future potential

Entering new applications and

markets with PVD technology

HEXAGON: solution for advan-ced

packaging technologies

INGENIA with S3P™: the quantum

leap in PVD coating


Key Success Factors Global footprint – BRIC region

Brazil and RussiaChina India

Oerlikon’s exposure

2011: 2–3 % of Group sales in

Brazil, 1–2% in Russia

Key initiatives

� Developing comprehensive

market penetration strategy

for Russia and Brazil

� Growth opportunities from

infrastructure projects and

industrial expansion

� Country representatives


2011: 10 % of Group sales

Production sites for Coating,

Drive Systems (DS)

Key initiatives

� Serving rapidly increasing

domestic demand, e.g. Textile

� DS capacity increase

� Coating centers to serve

domestic automotive industry

� Country representative


2011: 28 % of Group sales,

Suzhou is one of the

largest locations worldwide

Key initiatives

� Management transferred

� New Drive Systems factory

� Expansion of Vacuum/Coating

� Trainee program for college

graduates in Suzhou

� Country representative

Market intelligence to understand

opportunities

Oerlikon is transforming from an

exporter to a local companyExpanding in South Asia’s largest

growth market


Key Success Factors Growth Markets

TransportationFood Clothing

ElectronicsInfrastructure Energy

defines revenue split of Segments

in respective market, appraisal by

ubc consulting


Agenda

1 Business Overview


3 Refinancing 2012

4 Outlook

5 Appendix


Increase transparency by reporting profitabilityGroup EBIT margin* improves to 11.8 %

in CHF m / in %

Continued profitability improvement

� Reported EBIT margin of 15.8 % include

one-time effect of CHF 39 million in Textile (Sale of Arbon property)

� Adjusted for currency effects, sales would have increased by 11 %

� Growth in the US and Asia; China in particular (China sales increased by 34 %)

� Operational Excellence programs to drive profitability

� Oerlikon included in SMIM Index and STOXX Europe 600

Consistent execution of portfolio optimization

Order intakeSales**

Q1 2012

cont. op.

996996996996

Q1 2011

restated

1,1261,1261,1261,126

-12%906906906906

+6%

Q1 2012

cont. op.

961961961961

Q1 2011

restated

EBIT

39

106106106106

+43%

Q1 2012

cont. op.

152152152152

113

Q1 2011

restated

Order backlog

1,6931,6931,6931,693

-21%

Q1 2012

cont. op.

1,3451,3451,3451,345

Q1 2011

restated

EBIT margin*

11.711.711.711.7

+1%

Q1 2012

cont. op.

11.811.811.811.8

Q1 2011

restated

** Sales to third parties* Excluding one-time effect of property sale Arbon, CHOC Oerlikon Investor Presentation, June 2012

Execution of portfolio optimization

Announcements

Solar Segment(announced March 2, 2012)

� Divestment of Solar Segment to Tokyo Electron (TEL), Japan

� Transaction based on EV of CHF 250 million

� Closing expected in summer,

mainly dependent on merger control approval in China

Sale of property(announced March 23, 2012)

� Sale of 200 000 sqm property in Arbon, Switzerland

� Lease back of 14 000 sqm production and office space

� One-time effect on EBIT of CHF 39 m recognized in Segment Textile

Optical Disc (announced April 3, 2012)

� Announcement to exit Optical Disc equipment business

� Continue to provide high-quality services and spare parts

� Focus on growth areas

Drive Systems operations(announced April 10, 2012)

� Announcement to streamline manufacturing footprint

� Number of production facilities in Italy to be reduced from seven to five

� Closing of Garessio plant and non-binding LOI to sell Porretta Terme

Pilatus Flugzeugwerke AG(announced April 16, 2012)

� Sale of 13.97 % minority stake

� Purchase price undisclosed, Book value CHF 28 m

� Positive one-time effect in financial result in Q2


Textile

Vacuum

Oerlikon Segments 1/2

Good start in the financial year 2012

� Solar industry remained weak

� China showed some weakness vs. Q1 2011

� Process industry, coating and R&D stable

Drive Systems

� Stable demand in mining, energy and agriculture

� Increased demand in construction

� North America as growth driver

� Operational streamlining in Italy

� Ramp-up of China production facility

according to schedule

� Manmade fiber steady at a high level

� Natural fiber saw first improvements in

order intake from Q4 trough

� Autocoro 8 well received in the market

� Strong growth in China

� China represents 53 % of Q1 Segment sales


Coating

Oerlikon Segments 2/2

Good start in the financial year 2012

Advanced

Technologies

� First signs of recovery in semiconductor industry

� Structural changes by exiting optical disc market with

impact on inventory

� Focus on growth areas such as semiconductor and energy

conversion, storage and efficiency management

� Strong automotive sector in established markets like

Europe, the US and Japan

� Tools and high-volume components in automotive

� Continued expansion of capacity especially in Asia


Key figures by Segment Q1 2012

Order intake

Order backlog

Sales*

Δ to Q1 2011 (restated)

EBIT% of sales

EBIT (excl. sale of Arbon property)

% of sales

in CHF mVacuum

103

80

98-3.9 %

1414.1 %

Textile

504

1,031

4968.3 %

9018.1 %

Coating

127

n/a

1271.6 %

2721.3 %

5110.3 %

Adv.Tech.

31

23

16-

-2n/a

Drive

231

211

2249.3 %

198.5 %



� Q1 2012 ROCE: Improvement in 12 month rolling NOPAT and stable Capital Employed

� Oerlikon Group creates value by earning premium over cost of capital

ROCE

Return On Capital Employed (ROCE)ROCE = NOPAT / Capital Employed

17.6%17.6%17.6%17.6%

Q1 2012

continued

operations

FY 2011

restated

16.5%16.5%16.5%16.5%

FY 2011

reported

14.9%14.9%14.9%14.9%

in %OerlikonOerlikonOerlikonOerlikon ddddefinitionefinitionefinitionefinition of ROCEof ROCEof ROCEof ROCE 2011201120112011

reportedreportedreportedreported

2011201120112011

restatedrestatedrestatedrestated

EBIT 419 429

- Total current income tax -78 -75

- Total deferred income tax -13 -8

NOPATNOPATNOPATNOPAT 328328328328 346346346346

Net Operating Assets 2'205 2'108

+ Current tax receivables 18 17

+ Deferred tax assets 111 109

- Current income tax payables -61 -59

- Deferred tax liabilities -73 -72

Capital EmployedCapital EmployedCapital EmployedCapital Employed 2‘200 2'103


Agenda

1 Business Overview


3 Refinancing 2012

3 Outlook

5 Appendix


Refinancing 2012Considerations and execution on refinancing 2012


Current

situation

� Financing structure clearly shaped by the restructuring situation of the year 2010

� Existing Syndicated Facility has very high interest costs and a lot of legal restrictions

� Successful turnaround since 2010 and new level of profitability in 2011

� Net debt at 31.12.2011 was CHF 86m

� Net debt/EBITDA-levels have been very low between 0 and 1 during the last six quarters

Oerlikon’s

objectives

in the

refinancing

process

� Ensure long term liquidity

� Reduce interest costs, administrative burden and complexity

� Create higher operating and strategic flexibility

� Widen and diversify our financing sources and achieve first-time entry to Capital Markets

� Achieve a financing structure that is aligned to actual financial condition

� Enhance positive market perception

� Limit the number of participants for New Syndicated Loan to core banks

Execution

of

refinancing

actions

� New CHF 800m Syndicated Facility Agreement has been signed as per 05.06.2012New CHF 800m Syndicated Facility Agreement has been signed as per 05.06.2012New CHF 800m Syndicated Facility Agreement has been signed as per 05.06.2012New CHF 800m Syndicated Facility Agreement has been signed as per 05.06.2012

� Important improvements in financial terms & conditions and strategic flexibility

� Successful placement of a 4 year CHF 300 million domestic bond (Coupon of 4.25 %) Successful placement of a 4 year CHF 300 million domestic bond (Coupon of 4.25 %) Successful placement of a 4 year CHF 300 million domestic bond (Coupon of 4.25 %) Successful placement of a 4 year CHF 300 million domestic bond (Coupon of 4.25 %)

� Strong demand demonstrates re-established confidence in underlying performance

� Refinancing of existing facilities expected to be finalized in JulyRefinancing of existing facilities expected to be finalized in JulyRefinancing of existing facilities expected to be finalized in JulyRefinancing of existing facilities expected to be finalized in July

Refinancing 2012Key features of New Syndicated Credit Facility


Size of the

Facilities

Duration

� Total Facility amount: CHF 800m, thereof CHF 700m Revolving Credit Facility (Facility A)

� Facility A: CHF 450m for cash drawings and CHF 250m Ancillary Facilities

� CHF 100m optional term loan (Facility B) – optional tranche as short-term buffer

� Facilities to become effective upon successful issuance/settlement of a Swiss Bond

� Facility A: 3 years +1 +1 (extension upon request of Oerlikon, subject to approval of the Lenders)

� Facility B: 12 months (starting from Effective Date)

Security � No asset pledges, no upstream guarantees

Financial

Covenants

� Total Borrowing / EBITDA

� EBITDA / Net Interest Expense

� Absolute Equity covenant

Pricing � Margin between 2.00 – 3.00 % according to margin grid, initial margin of 2.50%

Refinancing 2012Key features of the Bonds


Maturity � 4 years

Swiss Bond� Unrated transaction – debut for Oerlikon

� CHF 300m

Coupon � 4.25 %

Pricing date � 13 June 2012

Settlement

date� 13 July 2012

Agenda

1 Business Overview


3 Refinancing 2012

4 Outlook

5 Appendix


Outlook Oerlikon Group 2012Next financial reporting: Q2 2012 on August 3

� Assumptions: No recession scenarioSuccessful closing of Solar Segment divestment

� Based on the existing full year guidance, we seeupside potential in business volume and profitability

� Significant one-off effects:

� Property sale of Arbon, Switzerland (CHF 39 m EBIT)

� Sale of minority stake Pilatus Flugzeugwerke AG (positive financial income)

� Dividend policy in place

Guidance

FY 2012

based on

current currency

exchange rates

Continued focus on efficiency and portfolio optimization –

Disciplined execution of Operational Excellence measures


Investment Case

Leading position Leading position Leading position Leading position

in attractive in attractive in attractive in attractive

growth marketsgrowth marketsgrowth marketsgrowth markets

Sustainable Sustainable Sustainable Sustainable

improved improved improved improved

EBIT margin EBIT margin EBIT margin EBIT margin

UnderlyingUnderlyingUnderlyingUnderlying

performanceperformanceperformanceperformance

improvementimprovementimprovementimprovement

Solid Balance Solid Balance Solid Balance Solid Balance

Sheet/Low DebtSheet/Low DebtSheet/Low DebtSheet/Low Debt

Strong Cash Strong Cash Strong Cash Strong Cash

Flow/DividendFlow/DividendFlow/DividendFlow/Dividend

Technological Technological Technological Technological

Leadership/ Leadership/ Leadership/ Leadership/

Innovation Innovation Innovation Innovation

Limited Limited Limited Limited

Swiss Franc Swiss Franc Swiss Franc Swiss Franc

exposure exposure exposure exposure

Global player/ Global player/ Global player/ Global player/

Strong internaStrong internaStrong internaStrong interna----

tional footprinttional footprinttional footprinttional footprint


Agenda

1 Business Overview


3 Refinancing 2012

4 Outlook

5 Appendix


Vision MissionTagline

Oerlikon’s Identity


Oerlikon Shares

Oerlikon Shares Oerlikon Shareholder Structure

Oerlikon Share Price Development

As of June 22, 2012, Indexed; 100 percent = Closing price per December 31, 2011

� Listed on Swiss Exchange (SIX) since 1975

� Securities symbol: OERL

� Securities number 81 682

� ISIN: CH0000816824

� No. of shares outstanding: 323 124 010 shares

� Re-entry to Swiss SMIM on April 17, 2012

� Addition to STOXX Europe 600 as of June 18, 2012

48,68%Free Float51,32%

Treasury Shares

(part of Free Float)

0,14%

Renova Group


90.0

100.0

110.0

120.0

130.0

140.0

150.0

160.0

170.0

180.0

190.0

30.1

2.11

06.0

1.12

13.0

1.12

20.0

1.12

27.0

1.12

03.0

2.12

10.0

2.12

17.0

2.12

24.0

2.12

02.0

3.12

09.0

3.12

16.0

3.12

23.0

3.12

30.0

3.12

06.0

4.12

13.0

4.12

20.0

4.12

27.0

4.12

04.0

5.12

11.0

5.12

18.0

5.12

25.0

5.12

01.0

6.12

08.0

6.12

15.0

6.12

22.0

6.12

Oerlikon STOXX 600 SMI SMIM

Coverage8 Buy/Accumulate – 2 Hold/Marketweight

BrokerBrokerBrokerBroker((((asasasas ofofofof JulyJulyJulyJuly 25, 2012)25, 2012)25, 2012)25, 2012)

AnalystAnalystAnalystAnalyst RecommendationRecommendationRecommendationRecommendation Date of last updateDate of last updateDate of last updateDate of last update Target PriceTarget PriceTarget PriceTarget Price

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 06.06.2012 11.00

Credit Suisse Patrick Laager Neutral 30.04.2012 9.50

Helvea SA Reto Amstalden Accumulate 30.04.2012 10.60

Kepler CM Christoph Ladner Buy 30.04.2012 11.00

Main First Bank Thomas Baumann Buy 30.04.2012 9.75

Societe Generale Jean Baptiste Roussille Buy 30.04.2012 9.30

UBS Torsten Wyss Buy 02.05.2012 11.50

Zürcher Kantonalbank Armin Rechberger Overweight 02.05.2012 -

CONSENSUS CONSENSUS CONSENSUS CONSENSUS 10.4610.4610.4610.46


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 Report 2012

- Media & Analyst Conference, Zurich

October 30, 2012 Q3 results

- Analyst Conference Call


Oerlikon on a new level

Sales* FY 2009 – FY 2011 (in CHF m)

224224224224

5555

-592-592-592-592

> 100%

FY 2011FY 2010FY 2009

FY 2009

2,8772,8772,8772,877

3,6013,6013,6013,601

+16%

FY 2011

4,1824,1824,1824,182

FY 2010

Net debt FY 2009 – FY 2011 (in CHF m)

-86-86-86-86

-274-274-274-274

FY 2011FY 2010FY 2009

----1,6461,6461,6461,646

EBIT FY 2009 – FY 2011 (in CHF m)

419419419419

51515151

-589-589-589-589

>100%

FY 2011FY 2010FY 2009

Net profit/loss FY 2009 – FY 2011 (in CHF m)

* Sales to third partiesOC Oerlikon Investor Presentation, June 2012

Oerlikon Group key figures FY 2011

in CHF m

Order intake 4,0434,520 –11 %

Order backlog 1,4811,702 –13 %

Sales* 4,1823,601 +16 %

EBITDA% of sales

60514 %

2788 %

>100 %

Net profit% of sales

2245 %

50 %

>100%

FY 2010 FY 2011 Δ

2,2052,196 0 %Net Operating Assets (incl. goodwill and brands)

EBIT% of sales

41910 %

511 %

>100 %

Cash flow from operating activities before

changes in net current assets541354 +53 %



Key figures by Segment FY 2011

Order intake

Order backlog

Sales*Δ to 2010

EBITDA% of sales

EBIT% of sales

in CHF mVacuum

400

77

409-

7218 %

5914%

Net Operating

Assets165

Employees 1,472

Textile

1,977

1,053

2,03723 %

23311 %

Coating

484

n/a

48415%

14129 %

1839 %

9720 %

618 303

6,230 2,986

Adv.Tech.

88

8

108-16%

1413 %

1110 %

82

200

Drive

892

213

82112%

9411 %

496 %

936

5,471

Solar

202

130

32327 %

175 %

-10n/a

97

660



Order backlogOrder intake by Segments

in CHF m

62626262100100100100

Adv.

Tech.

Coating

-11%

FY 2011

4,0434,0434,0434,043

----41414141

Solar

----28282828

Vacuum

----38383838

DriveTextile

----532532532532

FY 2010

4,5204,5204,5204,520-13%

FY 2011

1,7021,7021,7021,702

1,4811,4811,4811,481

FY 2010

Order bridge by Segment

----21%21%21%21% +15%+15%+15%+15%----12%12%12%12%----9%9%9%9%+13%+13%+13%+13% ----32%32%32%32%

Growth rate

in CHF m


626262626969696988888888

384384384384

+16%

FY 2011

4,1824,1824,1824,182

Adv.

Tech.

----21212121

CoatingSolarVacuum

----1111

DriveTextileFY 2010

3,6013,6013,6013,601

Sales bridge by Segment

Sales* by Segment

in CHF m

Growth rate

+23%+23%+23%+23% +15%+15%+15%+15%+27%+27%+27%+27%0%0%0%0%+12%+12%+12%+12% ----16%16%16%16%



� Oerlikon benefits from growth opportunities worldwide

� Asian markets fueled sales up by 27 %; Europe up by 9 %; North America up by 1 %;

Other regions up by 14 %

� Assessment of emerging markets (BRIC) to better balance geographical diversification

Sales* by location Sales* by market region

28%28%28%28%

49%49%49%49%

15%15%15%15%

8%8%8%8%

Europe

Asia/Pacific

Other

regions

North

America

18%18%18%18%

12%12%12%12%

69%69%69%69%Europe

Asia/

Pacific

Other

regions1%1%1%1%

North

America

Sales by location and region FY 2011



Constant range of investments in R&D

to secure technological leadership

Investments in R&D in the range of 5 – 7 % of sales

in CHF m / as % of sales

213213213213

239239239239

210210210210

247247247247

274274274274260260260260

7777

55556666

5555

0

50

100

150

200

250

300

0

1

2

3

4

5

6

7

8

FY 2011

5555

FY 2010

7777

FY 2009FY 2008FY 2007FY 2006


FX impact on Sales, EBIT and EBIT margin

+484+484+484+484+22+22+22+22

+12%

FY 2011

FX impact adj.

+4,688+4,688+4,688+4,688

Translation

effects

Transaction

effect

FY 2011

reported

+4,182+4,182+4,182+4,182

Oerlikon Group Sales* FY 2011

in CHF m

Oerlikon Group EBIT FY 2011

in CHF m

+51+51+51+51+20+20+20+20

+419+419+419+419

+17%

FY 2011 FX

impact adj.

+490+490+490+490

Translation

effects

Transaction

effect

FY 2011

reported

10.510.510.510.510.010.010.010.0

� 30 % growth normalized for currency impact

compared to FY 2010 (CHF 3,601 million)� Only minor impact on EBIT margin

EBIT margin in %



� Strong improvement in EBIT and RONA following turn-around in 2010,

� Despite the strong recovery, Net Operating Assets remained stable in 2011

� Stringent asset management and improved profitability led to improved RONA

EBIT and Net Operating Assets* RONA*

Strong improvement in Return on

Net Assets (RONA)*

19.0%19.0%19.0%19.0%

FY 2011FY 2010

2.3%2.3%2.3%2.3%

FY 2009

----20.9%20.9%20.9%20.9%

FY 2008**

----1.7%1.7%1.7%1.7%419419419419

51515151

-589-589-589-589

-59-59-59-59

FY 2011

2,2052,2052,2052,205

FY 2010

2,1962,1962,1962,196

FY 2009

2,8212,8212,8212,821

FY 2008**

3,4983,4983,4983,498

in CHF m in %

** 2008 restated*Net Operating Assets include goodwill and brands; RONA is defined as EBIT / Net Operating Assets including goodwill and brands


Oerlikon increased net profitability

Result before interests and taxes (EBIT)in % of sales

Financial resultin % of sales

Result before taxes (EBT)in % of sales

Income taxesin % of EBT

Net profitin % of sales

in CHF mFY 2010 FY 2011

51+1 %

-58

-7n/a

12n/a

Δ

>100 %

n/a

n/a

n/a

50 %

>100 %

419+10 %

-104

315+8 %

-9129 %

2245 %


Financial Result

315315315315

55557777419419419419

EBT

FY 2011

Foreign

currency

loss, net

----11111111

Other financial

expenses

----21212121

Interest on

provisions

for post-

employment

benefit plans

----11111111

Interest on

financial debt

----73737373

Other

financial

income

Interest

income

EBIT

FY 2011

Financial income

+12

Financial expense

-116

in CHF m


Tax Result

78787878

224224224224

315315315315

Net Profit

FY 2011

Deferred tax

expense

13131313

Current income

tax expense

EBT FY 2011

� Tax rate of 29 %

� Current income tax due to

profitability contribution of

most subsidiaries

� Main tax payers in China,

India and Germany

� Deferred tax expenses

mainly due to utilization of

tax loss carry forwards

� Mid-term targeted tax rate

of around 30%

in CHF m


Restoration of solid balance sheet

1) Net debt / Equity

Cash and cash equivalents

in CHF m

Trade receivables

Inventories

Property, plant and equipment

Total other assets

Total assets

Current and non-current loans and borrowings

Total liabilities

Gearing1)

Total equity

Equity ratio

Net debt

Total other liabilities

Intangible assets

Non-current post-empl. benefit provisions

Trade payables

Current customer advances

FY 2011

742

635

582

915

1,261

438

5%

4,573

856

525

654

2,963

1,610

35%

86

457

471

FY 2010

751

588

468

942

1,293

433

19%

4,475

1,078

499

690

3,021

1,454

32%

274

419

335


Net Working Capital*

** 2007 restated

* Net Working Capital is defined as trade receivables + inventories – trade payables – current customer advances

Net Working Capital* FY 2007- FY 2011

289289289289302302302302

499499499499

837837837837772772772772

17%17%17%17%

FY 2008

18%18%18%18%

FY 2007**

14%14%14%14%

FY 2011

7%7%7%7%

FY 2010

8%8%8%8%

FY 2009

� Net working capital decreased despite higher inventory related to higher sales and was mainly influenced by increased customer advances

� Net Working Capital FY 2011 at 7 % of 12-month rolling sales

in % of sales and CHF m


1.39

0.950.77

2.26

0.63

1.58

Depreciation & amortization*CAPEXCAPEX / depreciation & amortization ratio*

167167167167

150150150150

+11%+11%+11%+11%

FY 2011FY 2010

195195195195

175175175175

----10%10%10%10%

FY 2011FY 2010 2007** 2008**2006** 2009

Mid-termtarget

corridor1.20

1.00

2010

in CHF m in CHF m

CAPEX nearing depreciation level

** Restated

* Excluding impairment

FY 2011


Consolidated Cash Flow Statement FY 2011

742742742742

541541541541

756756756756

----14141414

Cash and cash

equivalents at

the end of the

year

Translation

adjustments on

cash and cash

equivalents

6666

Financing

activities

----172172172172

Investing

activities

----283283283283

Changes in net

current assets

----106106106106

Operating

activities before

changes in net

current assets

Cash and cash

equivalents at

the beginning

of the year

152 Operating Free

Cash Flow

CAPEX PP&E -141

CAPEX intangibles -26

Increase in marketable

securities -129

Proceeds, interest and

Others 13

Total -283

in CHF m

Interest paid -52

Repayment of

financial debt -139

Other 19

Total -172

Receivables -127

Inventories -128

Payables/liabilities 7

Customer advances 143

Hedge accounting -1

Total -106


Dividend policy and dividend for 2011

Dividend yield of 4 %

Dividend policy to pay out

up to 40 % of net profit

AGM approved to pay out CHF 0.20 per share for 2011

0.270.270.270.27

0.680.680.680.68

Up to 40% of net profitNet profit per share 2011

0.200.200.200.20

0.270.270.270.27

Max. pay-out Dividend proposal

� Dividend distributed from the reserve from

capital contribution

� Dividend yield of 4 % based on a share price

of CHF 5.03 at year-end 2011


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

eMail: [email protected]


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 for the use of it.

This presentation is based on information currently available to management. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected or projected. Oerlikon is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

All information provided in this document is not intended as, and may not be construed as, an offer or solicitation for the purchase or disposal, trading or any transaction in any Oerlikon securities. Investors must not rely on this information for investment decisions.

Disclaimer


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