Business Report

Oerlikon delivered profitable growth in 2021. The Polymer Processing Solutions Division achieved record orders and sales and strongly improved the operating margin in 2021. The Surface Solutions Division noted year-over-year increases in sales and orders as it capitalized on opportunities from the gradual recovery in general industries, tooling and automotive.

In 2021, Group order intake increased 24.8% to CHF 2 797 million, including a positive currency impact of 0.6%, compared to CHF 2 241 million in the previous year. Group sales increased by 17.3% in 2021 to CHF 2 649 million, including a positive currency impact of 0.7% (2020: CHF 2 258 million).

Group operational EBITDA increased by 38.5% to CHF 447 million, versus CHF 323 million in 2020. Correspondingly, the operational EBITDA margin improved to 16.9%, which was 260 basis points higher than the 14.3% in 2020, reflecting the sustained positive impacts from cost actions. The operational EBIT margin was 8.7% (CHF  231  million), compared to 5.3% (CHF 119 million) in the previous year.Group unadjusted EBITDA increased 54.2% to CHF 444 million, or 16.7% of sales, while Group unadjusted EBIT was CHF 220 million, or 8.3% of sales. In 2020, unadjusted Group EBITDA was CHF 288 million, or 12.7% of sales, and EBIT was CHF 73 million, or 3.2% of sales.

The Oerlikon Group’s income from continuing operations in 2021 was CHF 162 million, compared with CHF 38 million in 2020, an increase of 326%. After effects from discontinued operations in 2021, net profit amounted to CHF 168 million in 2021, or earnings per share of CHF 0.50, versus CHF 38 million, or earnings per share of CHF 0.11, in 2020.

A Globally Balanced Business
A portfolio and filledpipeline of innovative technologies, a global footprint and industry-leading scope of comprehensive services continue to be key components of Oerlikon’s strategy. The Surface Solutions Division generated 48% of total Group sales in 2021, while the Polymer Processing Solutions Division accounted for 52% of Group sales.

With a global footprint serving customers in close proximity, Oerlikon operates 207 sites in 38 countries, with  97 sites in Europe, Middle East and Africa, 67 sites in  Asia-Pacific and  43  sites in the Americas. Asia-Pacifi continued to account for the largest proportion of Group sales in 2021. Sales in Asia-Pacific increased  by 24% to CHF 1 495 million, or 56% of Group sales, versus CHF 1 208 million, or 54% of Group sales, in 2020. Europe remained the second-largest regional contributor to Group sales in 2021, with sales totaling CHF 760 million, or 29% of sales, compared with CHF 716 million, or 32% of sales, in 2020. Group sales in North  America totaled CHF 305 million in 2021, versus CHF 271 million in 2020, and the share of the region’s sales to Group shares remained constant at 12%. Sales in other regions was stable at 3% of Group sales in 2021, with sales of CHF 89 million, compared to CHF 62 million in 2020.

Solid Balance Sheet Strength with Equity Ratio of 33%
As of December 31, 2021, Oerlikon had total assets of CHF 4 341 million, compared to CHF 3 340 million at year-end 2020. The Oerlikon Group had equity (attributable to shareholders of the parent) of CHF 1 424 million, repre-senting an equity ratio of 33%. The increase in total assets is  attributed  to  an  improved  cash  and  cash  equivalent position and increase in goodwill from the acquisitions.

Operating Cash Flow
Cash flowfrom operating activities before changes in net current assets increased by 88.1% to CHF 380 million due  to  the  improved  net  result,  compared  with CHF 202 million in 2020. Net working capital, definedas trade and trade note receivables plus inventories minus trade payables and current customer advances, totaled CHF -57 million in 2021, versus CHF -86 million in 2020. 

Capital expenditure (CAPEX) amounted to CHF 131 million, compared  to  CHF 118 million in 2020. Excluding amortization of acquired intangible assets, the CAPEX- to-depreciation ratio was 1.0 times. 

Cash flowfrom investing activities was CHF -413 million  in 2021 due to acquisitions, compared with CHF -108 million in 2020. Cash flowfrom financingactivities amount-ed  to  CHF 266 million in 2021, compared with CHF -432 million in 2020. Oerlikon reported a change in cash and cash-equivalent position at the end of 2021 of CHF 187 million, compared with CHF -244 million at the end of 2020.

Commitment to R&D
Oerlikon remains committed to invest around 4% of its annual revenues in research and development (R&D). In 2021, R&D expenditure for the year were CHF 105 million, or 4.0% of Group sales, compared with CHF 101 million, or 4.5% of Group sales, in 2020.

Acquisitions and Divestitures 
In June 2021, the Polymer Processing Solutions Division acquired INglass, accelerating its strategy to expand into the high-growth polymer processing solutions market. Oerlikon HRSflow, the new brand that ensued from the acquisition, has a market-leading innovative hot runner systems technology for multiple industries, from auto­motive, consumer goods and household appliances to packaging, waste management, construction and transportation.

An important acquisition for the Surface Solutions Division was also completed: Coeurdor – a leading full-service provider of components for the fast-growing luxury goods industry. Coeurdor’s creativity, agility and fast turnaround to meet the needs of customers in the highly demanding luxury market are strong additions to what Oerlikon offers today in the high-end deco market. 

Dividend Payout
Oerlikon believes that a dividend payout is an important means of returning value to shareholders. Thus, the Board of Directors is recommending an ordinary dividend payout, consistent with the previous four years, of CHF 0.35 per share, at the 49th Annual General Meeting of Shareholders on April 5, 2022.