Group Performance

Oerlikon delivered profitable growth in 2022. The Polymer Processing Solutions Division achieved record orders and sales and improved the operating margin in 2022. The Surface Solutions Division noted year-over-year increases in sales and orders as it capitalized on opportunities from the gradual recovery in aerospace, automotive and general industries.

In 2022, Group order intake increased 6.9% to CHF 2 990 million, including an adverse currency impact of 3.7%, compared to CHF 2 797 million in the previous year. Group sales increased by 9.8% in 2022 to CHF 2 909 million, including an adverse currency impact of 4.1% (2021: CHF 2 649 million).

Group operational EBITDA increased by 10.1% to CHF 498 million, or 17.1% of sales (2021: CHF 452 million). The operational EBIT margin was 9.5% (CHF 277 million), compared to 9.0% (CHF 240 million) in the previous year. Group unadjusted EBITDA decreased by 5.8% to CHF 418 million, or 14.4% of sales, while Group unadjusted EBIT was CHF 176 million, or 6.0% of sales. In 2021, unadjusted Group EBITDA was CHF 444 million, or 16.7% of sales, and EBIT was CHF 220 million, or 8.3% of sales.

The Oerlikon Group’s income from continuing operations in 2022 was CHF 93 million, compared with CHF 162 million in 2021. Net profit amounted to CHF 93 million in 2022, or earnings per share of CHF 0.27, versus CHF 168 million, or earnings per share of CHF 0.50, in 2021.

A Globally Balanced Business

A portfolio and pipeline full of innovative technologies, a global footprint and an 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 2022, while the Polymer Processing Solutions Division accounted for 52% of Group sales. 

Serving customers in close proximity, Oerlikon operates 205 sites in 37 countries, with 92 sites in Europe, the Middle East and Africa, 68 sites in Asia-Pacific and 45 sites in the Americas. Asia-Pacific continued to account for the largest proportion of Group sales in 2022. Sales in Asia-Pacific increased by 5% to CHF 1 595 million, or 55% of Group sales, versus CHF 1 512 million, or 57% of Group sales, in 2021. Europe remained the second-largest regional contributor to Group sales in 2022, with sales totaling CHF 808 million, or 28% of sales, compared with CHF 784 million, or 30% of sales, in 2021. Group sales in the Americas increased by 43% to CHF 507 million in 2022, versus CHF 353 million in 2021, and the share of the region’s sales to Group sales increased to 17%.

Solid Balance Sheet Strength with Equity Ratio of 32%

As of December 31, 2022, Oerlikon had total assets of CHF 3 937 million, compared to CHF 4 341 million at year-end 2021. The Oerlikon Group had equity (attributable to shareholders of the parent) of CHF 1 274 million, representing an equity ratio of 32%. The decrease in total assets is mainly attributed to foreign exchange effects and a lower cash and cash equivalent position.

Operating Cash Flow

Cash flow from operating activities before changes in net current assets decreased by 5.0% to CHF 361 million, compared with CHF 380 million in 2021. Net working capital, defined as trade receivables plus inventories minus trade payables and current customer advances, totaled CHF 179 million in 2022, versus CHF -57 million in 2021.

Capital expenditure (CAPEX) amounted to CHF 130 million, compared to CHF 131 million in 2021. Excluding amortization of acquired intangible assets, the CAPEX-to-­depreciation ratio was 1.0 times.

Cash flow from investing activities was CHF -155 million in 2022, compared with CHF -413 million in 2021. Cash flow from financing activities amounted to CHF -182 million in 2022, compared with CHF 266 million in 2021. Oerlikon reported a change in cash and cash-equivalent position at the end of 2022 of CHF -138 million, mainly driven net working capital fluctuation, compared with CHF 187 million at the end of 2021.

Acquisitions and Divestitures 

In December 2022, the Surface Solutions Division signed an agreement to acquire the Riri Group, a leading provider of coated metal accessories for the luxury fashion industry. This is the ideal next step following Oerlikon’s acquisition of Coeurdor in 2021 and will make Oerlikon a market leader, providing a complete offering of coated luxury metalware for high-end fashion brands.

Commitment to R&D

Oerlikon remains committed to investing around 4% of its annual revenues in research and development (R&D). In 2022, R&D expenditure for the year was CHF 113 million, or 3.9% of Group sales, compared with CHF 105 million, or 4.0% of Group sales, in 2021. 

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, consistent with the previous five years, of CHF 0.35 per share at the 50th AGM on March 21, 2023.