2024 Full Year Results

Feb 18, 2025 Ad hoc announcement pursuant to Art. 53 LR

Surface Solutions with stable orders and sales at constant FX, despite macro headwinds in 2024. Operational EBITDA margin improved to 18.0%.
Polymer Processing Solutions’ orders stabilized and improved in Q4 year-over-year. Sales and operational EBITDA down due to lower order intake in 2023. Reached strong operational EBITDA margin of 12.8%.
Stable Group orders despite challenging environment. Sales and operational EBITDA lower due to the cyclical downturn in prior year’s Polymer Processing Solutions orders. Operational EBITDA margin improved by 10 bps to 16.6%.
Important milestone achieved in pure-play strategy: The Manmade Fibers business operates as a subsidiary and will adopt its traditional Barmag name, HRSflow will be reported as part of Surface Solutions, as of January 2025. Oerlikon stands for surface technologies.
Generational change: Dirk Linzmeier to join as COO and Member of the Executive Committee, succeeding Markus Tacke.
BoD change: Dr. Stefan Brupbacher, Marco Musetti and Dr. Eveline Steinberger nominated for election as new members for the Board of Directors. They will succeed Irina Matveeva, Gerhard Pegam and Zhenguo Yao who will not stand for re-election.
Dividend proposal: Board to propose an ordinary dividend of CHF 0.20 per share.
2025 outlook: Expect organic sales at constant FX to be stable or to increase by a low single-digit percentage. Operational EBITDA margin of ~15.5% expected, with innovation and pricing at Surface Solutions expected to be offset by transitorily lower margin at Barmag (Manmade Fibers).

Key figures of the Oerlikon Group as of December 31, 2024 (in CHF million)

	FY 2024	FY 2023	YoY	Q4 2024	Q4 2023	YoY
Order intake	2 372	2 457	-3.5%¹	540	552	-2.2%³
Sales	2 372	2 693	-11.9%²	626	633	-1.1%⁴
Operational EBITDA	393	444	-11.6%	108	100	7.7%
Operational EBITDA margin	16.6%	16.5%	10 bps	17.2%	15.8%	140 bps
EBITDA	369	384	-3.7%	97	64	50.0%
EBITDA margin	15.6%	14.2%	140 bps	15.4%	10.2%	520 bps
Net result⁵	72	23	209.6%	–	–	–

Due to rounding, some totals may not correspond with the sum of the separate figures. For the reconciliation of operational and reported EBITDA figures, please see earnings presentation. ¹ Impact from M&A: +1.3%, foreign exchange (FX): -3.0%, organic: -1.8%. ² Impact from M&A: +1.0%, FX: -2.8%, organic: -10.1%. ³ Impact from M&A: 0%, FX: -1.5%, organic: -0.7%. ⁴ Impact from M&A: 0%, FX: -2.1%, organic: +1.0%. ⁵ Reported annually and semi-annually only.

Michael Suess, Executive Chairman of Oerlikon, stated:

“In 2024, we successfully navigated short-term market headwinds by launching new products, driving cost discipline, and improving efficiency. These efforts position us to emerge stronger when markets recover. Both divisions contributed to this resilient performance. Our future core business Surface Solutions further improved profitability and kept sales stable. Polymer Processing Solutions achieved a strong profitability despite 25 percent lower sales than in 2023 while the order intake stabilized throughout the year.”

“Our pure-play strategy has achieved an important milestone. Effective January 1, 2025, Oerlikon is a leader in surface technologies with its subsidiary for manmade fibers solutions, Barmag. For the final separation, we are making good progress in evaluating various options over the next 12-24 months. Our ultimate goal remains to create maximum value for all stakeholders.”

“Additionally, we would like to welcome Dirk Linzmeier as Chief Operating Officer (COO) and Member of the Executive Committee. With this step we are driving generational change in the company’s operational leadership. We thank Markus Tacke for his outstanding leadership and dedication, driving profitable growth, entering new markets, and enhancing our competitiveness and innovation.”

Generational change in the company’s operational leadership

Oerlikon appoints Dirk Linzmeier, 48, as Chief Operating Officer (COO) and Member of the Executive Committee, effective April 1, 2025. As part of the company’s strategic transition to pure play the newly created COO role will lead the Surface Solutions business operations under the name Oerlikon and will report to Executive Chairman Michael Suess. Linzmeier brings the right profile with a strong track record in delivering profitable growth for top-tier technology leaders and a deep understanding of Oerlikon’s key end markets. His extensive expertise in transformation, digitalization and software will be a valuable asset as Oerlikon transitions from an industrial conglomerate to a pure-play technology leader for Surface Solutions and Advanced Materials. Linzmeier is currently CEO of TTTech Auto, an Austrian unicorn that is a leading system solution provider for safe software-defined vehicles.

Linzmeier will succeed Markus Tacke, who successfully led the business for more than 5 years and has been driving a new phase of profitable growth. Tacke will remain as a strategic advisor until the end of 2025 to ensure a seamless transition in operational leadership.

Changes to the Board of Directors

As part of its long-term succession planning, the Board of Directors has nominated Dr. Stefan Brupbacher, Marco Musetti and Dr. Eveline Steinberger for election as new members at the upcoming Annual General Meeting on April 1, 2025. They will succeed Irina Matveeva, Gerhard Pegam and Zhenguo Yao who will not stand for re-election. These announced changes to the Board are aligned with Oerlikon’s current strategic transformation into a leader in surface technologies, strongly rooted in Swiss quality and innovation culture.

Important pure-play milestone achieved: Oerlikon is a leader in surface technologies with a subsidiary for manmade fibers solutions

In February 2024, Oerlikon announced the final step in its long-term pure-play strategy, stating that it will focus on high-tech surface solutions and advanced materials moving forward.

Throughout 2024, Oerlikon initiated and progressed the organizational separation of Manmade Fibers (Polymer Processing Solutions excluding HRSflow). As of January 1, 2025, this business operates as a stand-alone subsidiary and will adopt the traditional Barmag name. Georg Stausberg will remain on the Executive Committee and continue to report to Executive Chairman Michael Suess. HRSflow will be reported as part of Surface Solutions, effective January 1, 2025.

As announced in November 2024, Oerlikon began implementing its efficiency plan to combine the Corporate and Surface Solutions Division functions to align costs with the pure-play scope. To ensure business continuity and retain talent, Oerlikon introduced a retention plan. This streamlining will result in an agile and lean organization.

These steps lay the groundwork for Oerlikon to focus exclusively on surface technologies. Oerlikon is on track with evaluating options for the separation of Barmag (Manmade Fibers) over the coming 12-24 months, with the aim of creating value for all stakeholders.

Oerlikon has been transforming from an industrial conglomerate into a surface technologies leader over the last decade. The Group has streamlined from five divisions to its current two, using the proceeds for dividends and to develop both divisions organically and inorganically. Surface Solutions is now a resilient market leader, diversified across technologies, end markets and geographies. Barmag (Manmade Fibers) is the clear filament equipment market leader in terms of innovation and sustainability, showing growth through the cycle and attractive returns.

Oerlikon Group 2024 financial overview

In 2024, the Group’s organic order intake was roughly stable year-over-year at constant FX (-1.8%) despite the difficult environment. Organic sales decreased (-10.1%) at constant FX, driven by Polymer Processing Solutions’ order downturn in 2023.

Operational EBITDA was CHF 393 million (2023: CHF 444 million), or 16.6% of sales (2023: 16.5%). This represents a strong margin in the context of lower sales, supported by efficiency, innovation, and pricing. Oerlikon’s net result was 72 million, an increase of 209.6% compared to last year's level which was impacted by one-off charges.

Dividend of CHF 0.20 per share

The Board will recommend to shareholders an ordinary dividend payout of CHF 0.20 per share at the AGM on April 1, 2025, taking place at ENTRA, Rapperswil-Jona, Switzerland.

2025 outlook

At the Group level, Oerlikon expects organic sales at constant FX to be stable or to increase by a low single-digit percentage. Innovation, pricing and efficiency at Surface Solutions is expected to be offset by a transitorily lower margin at Barmag (Manmade Fibers). As a result, Oerlikon expects ~15.5% operational EBITDA margin for the Group.

For Surface Solutions, Oerlikon expects organic sales at constant FX to be stable or to increase by a low single-digit percentage, despite soft end markets. The scope includes HRSflow, which is part of Surface Solutions as of 2025. The operational EBITDA margin is expected to be in the range of 18.5%-19.0% (2024: 18.6% including HRSflow). This represents a stable development year-over-year, despite the challenging environment.

Barmag (Manmade Fibers) is expected to have stable or a low single-digit percentage increase in organic sales at constant FX. Order intake is expected to have seen the trough in 2024. Operational EBITDA margin is expected at ~7.5% (2024: 10.3%). This represents a year-over-year decrease as a result of transitory price concessions done in 2024 to maintain order volume. Beyond 2025, Barmag’s (Manmade Fibers) operational EBITDA margin is expected to be positively impacted by a pricing recovery and the ongoing optimization of manufacturing footprint.

Surface Solutions division: Stable sales and improved profitability

Surface Solutions’ orders remained roughly stable in 2024 (-1.6%) and Q4 (-3.0%) year-over-year (organic constant FX), despite weak markets. Customer purchasing behavior was cautious due to soft industrial activity. Manufacturing PMIs in the Eurozone stayed strongly in contraction throughout the year, with PMI momentum slowing in H2’24 across Europe, USA and China.

The division achieved stable organic sales in 2024 (-0.1%) and Q4 (-1.2%) at constant FX despite declining end markets. The resilience was supported by continued innovation and a robust performance in general industries and aviation, compensating for headwinds in tooling, automotive and luxury.

The operational EBITDA margin improved by 90 basis points to 18.0% in 2024. This increase was supported by innovation, pricing, efficiency, and the ongoing removal of smaller, less profitable products from the materials portfolio. The Q4 operational EBITDA margin slightly decreased year-over-year due to mix.

The division successfully launched several new products, including BALINIT ALCRONA EVO for tooling. In the luxury industry, the first tailored PVD (Physical Vapor Deposition) coatings were accepted by customers and successfully launched in the market. To capitalize on the strong growth potential in the U.S., the business opened an advanced coating technology center in the United States for the aerospace and gas turbine sectors. The transfer of Additive Manufacturing production to the United States in early 2024 supported new order wins in the aerospace, defense, and semiconductor industries, driving EBITDA break-even in the fourth quarter of 2024. In Germany, the division secured further orders for its e-mobility battery shielding solutions.

Key figures as of December 31, 2024 (CHF million)

	FY 2024	FY 2023	YoY	Q4 2024	Q4 2023	YoY
Order intake	1 476	1 514	-2.5%¹	353	370	-4.6%³
Sales (to third parties)	1 498	1 521	-1.5%²	378	391	-3.4%⁴
Operational EBITDA	270	262	3.1%	67	72	-6.9%
Operational EBITDA margin	18.0%	17.1%	90 bps	17.6%	18.2%	-60 bps
EBITDA	263	230	14.3%	64	48	34.2%
EBITDA margin	17.5%	15.1%	240 bps	17.0%	12.2%	480 bps
Due to rounding, some totals may not correspond with the sum of the separate figures. For the reconciliation of operational and reported EBITDA figures, please see earnings presentation. ¹ Impact from M&A: +2.2%, foreign exchange (FX): -3.0%, organic: -1.6%. ²Impact from M&A: +1.8%, FX: -3.2%, organic: -0.1%. ³ Impact from M&A: 0%, FX: -1.6%, organic: -3.0%. ⁴ Impact from M&A: 0%, FX: -2.2%, organic: -1.2%.

Polymer Processing Solutions Division

Following the filament downturn in 2023, Polymer Processing Solutions’ order intake stabilized year-over-year throughout 2024 (-2.1% at constant FX) and showed a slight increase (+4.1% at constant FX) in Q4. The division saw positive momentum in small- and mid-sized filament orders in 2024. However, sluggish industrial production, as indicated by PMIs, impacted the non-filament business, where H2 orders decreased to 2016 trough levels.

Sales in 2024 at constant currency declined by 23.0%, reflecting the postponement of orders in 2023 (Q4 sales: +4.6% at constant FX).

The division achieved a strong operational EBITDA margin of 12.8% in 2024 (15.2% in Q4) despite 25% lower sales than in 2023 and 43% lower sales than in 2022. This was supported by the early and effective cost measures implemented throughout the cyclical downturn, counteracting lower volume and limited pass-through of higher input costs to maintain volume.

Notably, the Polymer Processing Solutions division launched important innovations in 2024, including advanced energy-efficient technologies and components for manmade fiber production, and new digital applications for atmos.io, the innovative digital environment solution for enhanced productivity and material quality.

Key figures as of December 31, 2024 (CHF million)

	FY 2024	FY 2023	YoY	Q4 2024	Q4 2023	YoY
Order intake	896	943	-5.0%¹	187	182	2.8%³
Sales (to third parties)	875	1 172	-25.4%²	248	241	2.7%⁴
Operational EBITDA	112	170	-34.0%	38	27	38.5%
Operational EBITDA margin	12.8%	14.5%	-170 bps	15.2%	11.2%	400 bps
EBITDA	108	143	-24.1%	37	15	136.2%
EBITDA margin	12.4%	12.2%	20 bps	14.7%	6.4%	830 bps
Due to rounding, some totals may not correspond with the sum of the separate figures. For the reconciliation of operational and reported EBITDA figures, please see earnings presentation. ¹ Impact from M&A: 0%, foreign exchange (FX): -2.9%, organic: -2.1%. ² Impact from M&A: 0%, FX: -2.3%, organic: -23.0%. ³ Impact from M&A: 0%, FX: -1.3%, organic: +4.1%. ⁴ Impact from M&A: 0%, FX: -1.9%, organic: +4.6%.

Additional information

2024 Full-Year results conferences

Oerlikon will present its results today, February 18, 2025, as follows:

9:30 CET	In-person media briefing	Zunfthaus zur Saffran
13:30 CET	Hybrid Analysts and Investors Conference	Zunfthaus zur Saffran and live webcast

Live Webcast for Analysts and Investors

The analysts and investors conference will also be broadcast live via webcast and can be viewed via this Link. The recording of the analyst and investor conference will be available from February 19, 2025, onward at www.oerlikon.com/en/investors/reports-publications.

To ask questions, please dial in using one of these numbers:

Switzerland/Europe	+41 58 310 50 00
United Kingdom	+44 207 107 06 13
United States	+1 631 570 56 13
Other international numbers	Please click here

FY2024 Documents can be downloaded from Oerlikon’s website:

Annual Report 2024 (in English)	www.oerlikon.com/annualreport-2024
Sustainability Report 2024 (in English)	www.oerlikon.com/sustainabilityreport-2024
2024 FY Results News Release	www.oerlikon.com/pressreleases
2024 Results Presentation	www.oerlikon.com/en/investors/reports-publications

About Oerlikon

Oerlikon (SIX: OERL) is a global leader in surface technologies with a subsidiary for manmade fibers solutions, Barmag. With a unique portfolio in surface engineering, advanced materials, coating equipment and components, we make our customers’ products better: improved efficiency, durability and sustainability. Oerlikon serves a wide range of industries, including Aerospace, Automotive, Energy, Medical and Luxury. Headquartered in Pfaeffikon, Switzerland, the Group has a global presence with over 12 000 employees across 199 locations in 38 countries, achieving sales of CHF 2.4 billion in 2024.

Disclaimer

OC Oerlikon Corporation AG, Pfaeffikon together with its affiliates, hereinafter referred to as “Oerlikon”, has made great efforts to include accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressed or implied, as to the truth, accuracy or completeness of the information provided in this document. Neither Oerlikon nor any of its directors, officers, employees or advisors, nor any other person connected or otherwise associated with Oerlikon, shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document.

The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Oerlikon. This document contains certain statements related to the future business and financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking statements contained herein could be substantially impacted by risks, influences and other factors, many of which are not foreseeable at present and/or are beyond Oerlikon’s control, so that the actual results, including Oerlikon’s financial results and operational results, may vary materially from and differ from those, expressly or implicitly, provided in the forward-looking statements, be they anticipated, expected or projected. Oerlikon does not give any assurance, representation or warranty, expressed or implied, that such forward-looking statements will be realized. Oerlikon is under no obligation to, and explicitly disclaims any obligation to, update or otherwise review its forward-looking statements, whether as a result of new information, future events or otherwise.

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