Increase of profitability

Transcription

1 Increase of profitability OC Oerlikon Investor Presentation July 2012

2 Agenda 1 Business Overview 2 Business Development Q Refinancing Outlook 5 Appendix Page 2

3 More than 100 years of history and Oerlikon s ability to change Schweizerische Werkzeugmaschinenfabrik Oerlikon (SWO) is founded Foundation of Graziano Oerlikon Space lifts off. Launch of first European booster rocket, Ariane 4 Oerlikon- Bührle Group is split up. Core business is renamed Unaxis Opening of the plant in Suzhou, China Takeover of Saurer AG with ist strong textile business New profitability level: Record EBIT margin at 10 percent Swiss roots: Oerlikon was named after a suburb of Zurich Foundation of Balzers Oerlikon-Bührle Holding floats on the stock market Graziano becomes part of Saurer AG Comprehensive rebranding: Oerlikon stands by its business tradition and its Swiss values: quality, reliability, precision, and innovative flair Announcement to divest the Solar Segment Page 3

4 Business Overview Segments Sale concluded: closing expected Q Textile Drive Systems Vacuum Coating Advanced Technologies Solar Group** to 2010 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* >100% Page 4 * in CHF m ** Group EBIT contains corporate/ elimination items, e.g. management and trademark fees, real estate income, income from IT services of CHF 30m

5 Business Overview Markets 2011 Sales* split by geography (CHF m) Oerlikon is an innovative technology conglomerate NorthAm 609 Others 356 Asia 2'031 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 Europe 1'186 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 ) Market presence and example end markets of Oerlikon Group* defines percentage of total Group sales within respective market Food Clothing Transportation Infrastructure Energy Electronics Others Agriculture Technical clothing Automotive Glass coatings Wind turbines Touchscreens Formula 1 Very diversified applications from Agriculture machinery components to machinery for the textile industry * according to research by ubc consulting Page 5 * Sales to third parties

6 Business Overview Long-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 Page 6

7 Company Overview Oerlikon Textile Record EBIT margin of 9% - Focus on Asia Competitive situation Market and technology leader in Manmade Fibers Strong market and technology position for all other textile applications Market Manmade fiber market steady at a high level Natural fiber market saw the expected decline Textile components market continued to grow Regional growth drivers: China and India China represents 40 % of Segment sales in 2011 Highlights 2011 Strong sales growth and record EBIT margin Strengthening of market position in China Operational streamlining (3 Business Units, relocation of management to Shanghai) Innovations presented at ITMA trade show Key Financials CHF m FY 2010 FY 2011 Change OI % Sales* % EBIT >100 % Outlook 2012 Segment expects a slight decline in order intake and sales Slightly increasing profitability due to underlying performance improvement * Sales to third parties Page 7

8 Company Overview Oerlikon Drive Systems Return to profitability in 2011 Competitive situation Leading provider for gear and transmission components as well as solutions in challenging niche markets Market High demand and growth in heavy agriculture equipment and the energy sector as well as in construction machinery and material-handling equipment Transmission systems for high-performance cars remained strong prototypes for electric vehicles India and China as growth regions Highlights 2011 Successful positioning of the Segment as a whole Capacity expansion in Asia Access to market strategy in Asia (China, India) Profitability recovered to an EBIT margin of 6 % Key Financials CHF m FY 2010 FY 2011 Change OI % Sales* % EBIT n/a Outlook 2012 Agriculture, construction, energy and sports cars markets show stable demand Slight sales growth Further increase in profitability due to operational excellence programs * Sales to third parties Page 8

9 Company Overview Oerlikon Vacuum Record EBIT margin of 14% Competitive situation Strong market and technology position with further potential for profitable growth Market The process and surface-treatment industries and the analytics market were performance driver Overall market demand weakened, in particular the solar and the semiconductor industry Tapping of new application areas including degasification of steel and production of LED Highlights 2011 Record EBIT margin of 14% achieved Growing Asian market served in the region Expansion of production capabilities in China to increase capacity by 30% MAGiNTEGRA completed product portfolio Key Financials CHF m FY 2010 FY 2011 Change OI % Sales* EBIT % Outlook 2012 Market environment expected to become more challenging Potential gain in market share due to new products, additional capacity and expansion in the solution and service network Stable sales and margin improvement * Sales to third parties Page 9

10 Company Overview Oerlikon Coating Sales growth and breakthrough innovation Competitive situation Market and technology leader in Physical Vapor Deposition (PVD) Market Continuing high demand from the automotive industry, especially in Europe, as key growth driver Demand for environmentally friendly solutions New applications for coated precision components Key Financials CHF m FY 2010 FY 2011 Change OI % Sales* % EBIT % * Sales to third parties Highlights 2011 Outlook new coating centers in China, India and Poland; expansion of existing centers New innovation S3p and attendant coating system INGENIA Successful expansion into additional application areas of coated precision components 15 % sales growth, record 20 % EBIT margin Stable global outlook for the automotive industry Further regional expansion and opening of new coating centers Slight sales growth and profitability to remain stable at a high level Page 10

11 Company Overview Oerlikon Advanced Technologies Increase in profitability Competitive situation Highly specialized equipment supplier with unique technology competence in PVD coating Market Cooling of the semiconductor equipment market Nanotechnology and solar markets impacted by the current market environment Optical storage media solutions continue to trend lower Highlights 2011 New HEXAGON packaging system launched; increased productivity and reduced maintenance New SOLARIS production system offers further application opportunities Key Financials CHF m FY 2010 FY 2011 Change OI % Sales* % EBIT % * Sales to third parties Outlook 2012 Market penetration of HEXAGON system for semiconductor applications (advanced packaging) Further development of technology to address e.g. energy efficiency management and energy conversion applications Sales to increase slightly, margin to decrease Page 11

12 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 Page 12

13 Key Success Factors Operational Excellence Oerlikon Drive Systems Oerlikon Vacuum Oerlikon Solar Automation in Indian factory replaced manual labor processes Operational Excellence executed by employees ThinFab: On-time delivery increased to 99% 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 workplace improvements, workplace organization methodologies Key achievements Manufacturing output up 30 % Reduced footprint Flow of materials optimized Reduction of inventory 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 Page 13

14 Key Success Factors Innovation R&D expenditures of CHF 213 million in 2011 Oerlikon Textile Oerlikon Coating Oerlikon Advanced Tech. Autocoro 8: new rotor-spinning machine presented at ITMA INGENIA with S3P : the quantum leap in PVD coating HEXAGON: solution for advan-ced packaging technologies 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 Innovation core Significantly faster processing time; S3P opens unique application possibilites Key customer benefits Up to eight different coating processes per day Smooth and dense coatings Future potential Entering new applications and markets with PVD technology Innovation core Transfer of optimized transport concept to demanding 300 mm advanced packaging applications Key customer benefits Two to three times faster Simultaneous wafer move Half as much floor space Future potential Entering new applications and markets Page 14

15 Key Success Factors Global footprint BRIC region China India Brazil and Russia Oerlikon is transforming from an exporter to a local company Oerlikon s exposure 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 Expanding in South Asia s largest growth market Oerlikon s exposure 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 Market intelligence to understand opportunities 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 Page 15

16 China has become Oerlikon s most important market BRIC region Oerlikon Sales in China* (in CHF m) Oerlikon is transforming from an exporter to a local company Key figures 2011 Asia: 49 % of Group sales China: 28 % of Group sales 17 sites 2,525 employees Largest sites: - Suzhou - Jintan - Wuxi Major customers in China: Page 16 *Sales to third parties

17 We are close to our customers Natural Fibers: Sales Urumqi Manmade Fibers: PD, Service production Vacuum: Sales, service Coating: Coating center Vacuum: Production, sale service Coating: Coating center Natural Fibers: Sales Beijing Tianjin Jinan Natural Fibers: Production, sales service Manmade Fibers: Production Coating: Coating center Coating: Coating center Coating: Coating center Coating: Coating center Hanzhong Chengdu Chongqing Vacuum Sales, service Zhengzhou Xi an Guangzhou Jintan Wuxi Suzhou Shanghai Coating: Coating center Wenling Dongguan Coating: Coating center Natural Fibers: Production, sales service Manmade Fibers: Production, service Textile Components: Production, service Balzers Coating: Coating center Drive Systems: Production, service Natural Fibers: Sales, service Manmade Fibers: Sales Textile Components: Sales Vacuum: Sales, service Drive Systems: Sales, service Page 17

18 Agenda 1 Business Overview 2 Business Development Q Refinancing Outlook 5 Appendix Page 18

19 Increase transparency by reporting profitability Group EBIT margin* improves to 11.8 % in CHF m / in % Sales** Order intake Order backlog EBIT EBIT margin* % 961 1,126-12% 996 1,693-21% 1, % % Q restated Q cont. op. Q restated Q cont. op. Q restated Q cont. op. Q restated Q cont. op. Q restated Q cont. op. 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 Page 19 * Excluding one-time effect of property sale Arbon, CH ** Sales to third parties

20 Execution of portfolio optimization Announcements Solar Segment (announced March 2, 2012) Sale of property (announced March 23, 2012) Optical Disc (announced April 3, 2012) Drive Systems operations (announced April 10, 2012) Pilatus Flugzeugwerke AG (announced April 16, 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 sqm property in Arbon, Switzerland Lease back of sqm production and office space One-time effect on EBIT of CHF 39 m recognized in Segment Textile Announcement to exit Optical Disc equipment business Continue to provide high-quality services and spare parts Focus on growth areas 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 Sale of % minority stake Purchase price undisclosed, Book value CHF 28 m Positive one-time effect in financial result in Q2 Page 20

21 Oerlikon Segments 1/2 Good start in the financial year 2012 Textile 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 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 Vacuum Solar industry remained weak China showed some weakness vs. Q Process industry, coating and R&D stable Page 21

22 Oerlikon Segments 2/2 Good start in the financial year 2012 Coating 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 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 Page 22

23 Key figures by Segment Q in CHF m Textile Drive Vacuum Coating Adv.Tech. Order intake Order backlog 1, n/a 23 Sales* Δ to Q (restated) % % % % 16 - EBIT % of sales % % % % -2 n/a EBIT (excl. sale of Arbon property) % of sales % Page 23 * Sales to third parties

24 Return On Capital Employed (ROCE) ROCE = NOPAT / Capital Employed Oerlikon definition of ROCE 2011 reported 2011 restated EBIT Total current income tax ROCE in % 14.9% 16.5% 17.6% - Total deferred income tax NOPAT Net Operating Assets 2'205 2'108 + Current tax receivables Deferred tax assets Current income tax payables Deferred tax liabilities Capital Employed '103 FY 2011 reported FY 2011 restated Q continued operations Q ROCE: Improvement in 12 month rolling NOPAT and stable Capital Employed Oerlikon Group creates value by earning premium over cost of capital Page 24

25 Agenda 1 Business Overview 2 Business Development Q Refinancing Outlook 5 Appendix Page 25

26 Refinancing 2012 Considerations 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 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 Important improvements in financial terms & conditions and strategic flexibility 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 July Page 26

27 Refinancing 2012 Key features of New Syndicated Credit Facility Size of the Facilities 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 Duration Facilities to become effective upon successful issuance/settlement of a Swiss Bond Facility A: 3 years (extension upon request of Oerlikon, subject to approval of the Lenders) Facility B: 12 months (starting from Effective Date) Pricing Margin between % according to margin grid, initial margin of 2.50% Security No asset pledges, no upstream guarantees Financial Covenants Total Borrowing / EBITDA EBITDA / Net Interest Expense Absolute Equity covenant Page 27

28 Refinancing 2012 Key features of the Bonds Swiss Bond Unrated transaction debut for Oerlikon CHF 300m Maturity 4 years Coupon 4.25 % Pricing date 13 June 2012 Settlement date 13 July 2012 Page 28

29 Agenda 1 Business Overview 2 Business Development Q Refinancing Outlook 5 Appendix Page 29

30 Outlook Oerlikon Group 2012 Next financial reporting: Q on August 3 Guidance FY 2012 based on current currency exchange rates Assumptions: No recession scenario Successful closing of Solar Segment divestment Based on the existing full year guidance, we see upside 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 Continued focus on efficiency and portfolio optimization Disciplined execution of Operational Excellence measures Page 30

31 Investment Case Leading position in attractive growth markets Global player/ Strong international footprint Sustainable improved EBIT margin Technological Leadership/ Innovation Solid Balance Sheet/Low Debt Underlying performance improvement Limited Swiss Franc exposure Strong Cash Flow/Dividend Page 31

32 Agenda 1 Business Overview 2 Business Development Q Refinancing Outlook 5 Appendix Page 32

33 Oerlikon s Identity Tagline Vision Mission Page 33

34 Company Overview Management Track Record Management Board Dr. Michael Buscher (1965; German Citizen) Chief Executive Officer, May 2010 Jürg Fedier (1955; Swiss Citizen) Chief Financial Officer, January 2009 Adrian Cojocaru (1965; Romanian Citizen) Chief Human Resources Officer, November 2010 Before joining Oerlikon, Dr. Buscher held various positions at Bombardier (previously AEG Westinghouse, AEG Schienenfahrzeuge, ABB Henschel, ABB Daimler-Benz Transportation, Daimler Chrysler Rail Systems) In 1990, Dr. Buscher began his career as Scientific Assistant. From 1995, he served as System Engineer. In 1997 he was appointed Technical Project Manager and in 2000 he assumed an Engineering Director position covering several sites. In 2003, Dr. Michael Buscher relocated to Switzerland and became Vice President of the Business Unit Locomotives, responsible for global Engineering. One year later he additionally became Site Coordinator Zurich and a member of the Management Team of Bombardier Switzerland. In 2007, Dr. Michael Buscher was appointed President of the Global business Unit Propulsion & Controls, which he very successfully developed until he left Bombardier and joined Oerlikon. In the course of his career he also served on several boards Dr. Buscher holds a Master s degree and gained a PhD in Electrical Engineering from the Technical University of Darmstadt (Germany) Mr. Fedier started his career at Dow Chemical in Horgen (Switzerland) in Over the following years, he held various managerial positions in treasury operations in EMEA. Jürg Fedier was appointed Treasurer of Dow Germany in 1987 and Assistant Treasurer USA in Two years, later he became Treasurer of Dow Japan. In 1998, Jürg Fedier became Global Business Finance Director of the Epoxy Products and Intermediates division in Horgen (Switzerland) before being appointed Global Business Finance Director of Thermosets (USA in 2000). Before returning to Switzerland in March 2006 as Head of Finance of Dow Europe and a member of the Executive Board, Jürg Fedier served as Vice President Finance for Performance Chemicals In March 2007 he took over as CFO of Ciba in Basel (Switzerland). Over the course of his career, Jürg Fedier has served on several Boards of Directors After graduating from college of Commerce in 1978 in Zurich (Switzerland), Jürg Fedier completed several international executive management programs at the International Institute for Management in Lausanne (Switzerland) and the University of Michigan (USA) between 1990 and 2002 Adrian Cojocaru has more than 20 years of professional experience. He served in different HR positions such as Regional Chief Human Resources Officer Middle East & Africa for LG Electronics ( ), base in Dubai (UAE). Prior to this, Adrian Cojocaru held management functions at Reader s Digest (UK, ) and Coca-Cola (Romania), among others. Over the course of this career he successfully carried out a wide range of HR and organisation development projects Adrian Cojocaru graduated as mechanical engineer from the faculty of Engineering & Management of Technological Systems of the Polytechnic University in Bucharest (Romania) and continued his studies in the UK, where he attended the M.S. In Organisational Consulting at the Ashridge Business School Page 34

35 Company Overview Management Track Record Segment CEOs Clement Woon (1960, Singapore Citizen) Gary J. Lehman (1952, US Citizen) Dr. Andreas Widl (1966, Austrian) Dr. Hans Brändle (1961, Swiss Citizen) Andreas R. Dill (1954, Swiss Citizen) Clement Woon joined Oerlikon in 2012 as CEO for Textile segment based on its strong leadership skills, focus on change and transformation, its customer orientation and know-how in Technology and Service Business Prior to joining Oerlikon, Clement Woon was president and CEO of SATS Ltd He also occupied several leadership positions at Leica Geosystems AG and became President of the company Prior to that, he held several leadership positions within Thomson Consumer Electronics Gary J. Lehman joined Oerlikon in 2003 as business unit head of Oerlikon Fairfield and has occupied the position of CEO for Drive Systems segment since 2011 From 1994 to 2003, prior to joining Oerlikon, Gary J. Lehman was Senior Vice President for ITT Automotive and President and CEO for Philips Lighting and Electronics (USA). He was also the founder and manager of The Cannelton group Gary J. Lehman obtained a Master of Business Administration from Case Western Reserve University and a BS Management from Purdue University (USA) Page 35 Dr. Andreas Widl occupied managerial positions for Unaxis and thus joined Oerlikon as part of the Vacuum segment. He occupies the position of CEO of the segment since 2008 Prior to joining Oerlikon, Dr. Andreas Widl worked as a Senior Technology manager for Mannesmann from 1992 to 1999 and several engineering and managerial positions at GE from 1999 to 2004 Dr. Andreas Widl obtained a Physics Diploma and a PhD in Physics from the Technical University of Munich (Germany) From 1992 to now, Dr. Hans Brändle has occupied various managerial positions within Oerlikon Balzers segment. He occupied the position of Executive Vice President from 2005 to 2006 and the position of CEO since 2006 Prior to joining Oerlikon, Dr. Hans Brändle worked as a visiting scientist for IBM Almaden Research (USA) from 1991 to 1992 Dr. Hans Brändle studied Physical Chemistry and obtained a PhD in Physics from the ETH (Switzerland) and an executive MBA from the University of St. Gallen. From 1998, Andreas R. Dill has occupied diverse managerial positions within the Semiconductor and Coating segments at Oerlikon. Andreas R. Dill has occupied the position of CEO of Adv. Tech. since 2010 Prior to joining Oerlikon, Andreas R. Dill occupied several managerial and engineering positions at Zevatech AG (Switzerland) from 1985 to 1998 Andreas R. Dill graduated from the ETH as an Electrical Engineer. He also performed post graduate research at McGill University, Canada

36 Oerlikon Shares Oerlikon Shares Listed on Swiss Exchange (SIX) since 1975 Securities symbol: OERL Securities number ISIN: CH No. of shares outstanding: shares Re-entry to Swiss SMIM on April 17, 2012 Addition to STOXX Europe 600 as of June 18, 2012 Oerlikon Share Price Development Oerlikon Shareholder Structure Free Float 51,32% 0,14% 48,68% Treasury Shares (part of Free Float) Renova Group As of June 22, 2012, Indexed; 100 percent = Closing price per December 31, Oerlikon STOXX 600 SMI SMIM Page 36

37 Coverage 9 Buy/Accumulate 2 Hold/Marketweight Broker (as of July 27, 2012) Analyst Recommendation Date of last update Target Price AlphaValue Pierre-Yves Gauthier Buy Bank am Bellevue Michael Studer Hold Bank Vontobel Michael Foeth Buy Berenberg Bank Benjamin Glaeser Buy Credit Suisse Patrick Laager Neutral Helvea SA Reto Amstalden Accumulate Kepler CM Christoph Ladner Buy Main First Bank Thomas Baumann Buy Societe Generale Jean Baptiste Roussille Buy UBS Torsten Wyss Buy Zürcher Kantonalbank Armin Rechberger Overweight CONSENSUS Page 37

38 Financial Calendar 2012 March 5, 2012 FY Results 2011 and publication of Annual Report Media & Analyst Conference, Zurich April 12, 2012 April 30, 2012 Annual General Meeting of Shareholders - Lucerne Q1 results - Analyst Conference Call August 3, 2012 Q2 results and publication of Interim Report Media & Analyst Conference, Zurich October 30, 2012 Q3 results - Analyst Conference Call Page 38

39 Oerlikon on a new level Sales* FY 2009 FY 2011 (in CHF m) EBIT FY 2009 FY 2011 (in CHF m) 2, % 3,601 4, >100% 419 FY 2009 FY 2010 FY 2011 Net profit/loss FY 2009 FY 2011 (in CHF m) 224 > 100% FY 2009 FY 2010 Net debt FY 2009 FY 2011 (in CHF m) FY ,646 Page 39 FY 2009 FY 2010 FY 2011 FY 2009 FY 2010 FY 2011 * Sales to third parties

40 Oerlikon Group key figures FY 2011 in CHF m FY 2010 FY 2011 Δ Order intake 4,520 4, % Order backlog 1,702 1, % Sales* 3,601 4, % EBITDA % of sales % % >100 % EBIT % of sales 51 1 % % >100 % Net profit % of sales 5 0 % % >100% Cash flow from operating activities before changes in net current assets Net Operating Assets (incl. goodwill and brands) % 2,196 2,205 0 % Page 40 * Sales to third parties

41 Key figures by Segment FY 2011 in CHF m Textile Drive Vacuum Solar Coating Adv.Tech. Order intake 1, Order backlog 1, n/a 8 Sales* Δ to , % % % % % EBITDA % of sales % % % 17 5 % % % EBIT % of sales % 49 6 % 59 14% -10 n/a % % Net Operating Assets Employees 6,230 5,471 1, , Page 41 * Sales to third parties

42 Order bridge by Segment Order intake by Segments in CHF m Order backlog in CHF m 4,520 Growth rate -11% -21% +13% -9% -12% +15% -32% ,043 1,702-13% 1,481 FY 2010 Textile Drive Vacuum Solar Coating Adv. Tech. FY 2011 FY 2010 FY 2011 Page 42

43 Sales bridge by Segment Sales* by Segment in CHF m Growth rate +16% +23% +12% 0% +27% +15% -16% , ,182 FY 2010 Textile Drive Vacuum Solar Coating Adv. Tech. FY 2011 Page 43 * Sales to third parties

44 Sales by location and region FY 2011 Sales* by location North America 12% 1% Other regions 18% Asia/ Pacific Sales* by market region Europe 28% North America 15% 8% Other regions Europe 69% 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 49% Asia/Pacific Page 44 * Sales to third parties

45 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 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY Page 45

46 FX impact on Sales, EBIT and EBIT margin Oerlikon Group Sales* FY 2011 in CHF m +12% Oerlikon Group EBIT FY 2011 in CHF m +17% +4, , EBIT margin in % FY 2011 reported Transaction effect Translation effects FY 2011 FX impact adj. FY 2011 reported Transaction effect Translation effects FY 2011 FX impact adj. 30 % growth normalized for currency impact compared to FY 2010 (CHF 3,601 million) Only minor impact on EBIT margin Page 46 * Sales to third parties

47 Strong improvement in Return on Net Assets (RONA)* EBIT and Net Operating Assets* RONA* in CHF m in % 3, % 2,821 2,196 2, % % % FY 2008** FY 2009 FY 2010 FY 2011 FY 2008** FY 2009 FY 2010 FY 2011 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 *Net Operating Assets include goodwill and brands; RONA is defined as EBIT / Net Operating Assets including goodwill and brands ** 2008 restated Page 47

48 Oerlikon increased net profitability in CHF m FY 2010 FY 2011 Δ Result before interests and taxes (EBIT) in % of sales % % >100 % Financial result in % of sales n/a Result before taxes (EBT) in % of sales -7 n/a % n/a Income taxes in % of EBT 12 n/a % n/a Net profit in % of sales 5 0 % % >100 % Page 48

49 Financial Result in CHF m EBIT FY 2011 Interest income Other financial income Interest on financial debt Interest on provisions for postemployment benefit plans Other financial expenses Foreign currency loss, net EBT FY 2011 Financial income +12 Financial expense -116 Page 49

50 Tax Result in CHF m 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 EBT FY 2011 Current income tax expense Deferred tax expense Net Profit FY 2011 Mid-term targeted tax rate of around 30% Page 50

51 Restoration of solid balance sheet in CHF m Cash and cash equivalents Trade receivables Inventories Property, plant and equipment Intangible assets Total other assets Total assets Trade payables Current customer advances Current and non-current loans and borrowings Non-current post-empl. benefit provisions Total other liabilities Total liabilities Total equity Equity ratio Net debt Gearing 1) FY , , , ,021 1,454 32% % FY , , ,963 1,610 35% 86 5% 1) Net debt / Equity Page 51

52 Net Working Capital * Net Working Capital * FY FY 2011 in % of sales and CHF m 14% % % 499 8% 7% 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 FY 2007** FY 2008 FY 2009 FY 2010 FY 2011 * Net Working Capital is defined as trade receivables + inventories trade payables current customer advances ** 2007 restated Page 52

53 CAPEX nearing depreciation level CAPEX in CHF m Depreciation & amortization * in CHF m CAPEX / depreciation & amortization ratio* % % Mid-term target corridor FY 2010 FY 2011 FY 2010 FY ** 2007** 2008** FY 2011 * Excluding impairment ** Restated Page 53

54 Consolidated Cash Flow Statement FY 2011 in CHF m Receivables -127 Inventories -128 Payables/liabilities 7 Customer advances 143 Hedge accounting -1 Total CAPEX PP&E -141 CAPEX intangibles -26 Increase in marketable securities -129 Proceeds, interest and Others 13 Total -283 Interest paid -52 Repayment of financial debt -139 Other 19 Total Operating Free Cash Flow Cash and cash equivalents at the beginning of the year Operating activities before changes in net current assets Changes in net current assets Investing activities Financing activities Translation adjustments on cash and cash equivalents Cash and cash equivalents at the end of the year Page 54

55 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 Net profit per share 2011 Up to 40% of net profit 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 Page 55

56 Investor Relations Contact OC Oerlikon Management AG Churerstrasse 120 CH-8808 Pfäffikon SZ Switzerland Andreas Schwarzwälder Head of Investor Relations Phone: Mobile: Page 56

57 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 for the use of it. This presentation is based on information currently available to management. The forwardlooking 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. Page 57