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 | |
- LMC forecast at end Q2'22
- 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 |
- 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 |
- 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
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OC Oerlikon Corporation AG Pfäffikon published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 04:31:02 UTC.