Annual result 2024

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

Surface Solutions with stable order intake and sales at constant exchange rates, despite macroeconomic headwinds in 2024. The operating EBITDA margin rose to 18.0%.
Orders at Polymer Processing Solutions stabilized and improved in Q4 compared to the previous year. Sales and operating EBITDA are declining due to a lower order backlog in 2023 Achieved a strong operating EBITDA margin of 12.8%.
Stable order intake for the Group despite the challenging environment. Lower sales and operating EBITDA due to the cyclical decline in orders at Polymer Processing Solutions in the previous year. The operating EBITDA margin improved by 10 basis points to 16.6%.
Important milestone in the Pureplay strategy: the manmade fibers business will be managed as a subsidiary under the name Barmag, Oerlikon stands for surface technologies and will include the HRSflow business as of January 2025.
Generation change: Dirk Linzmeier succeeds Markus Tacke as COO and new member of the Executive Board.
Changes to the Board of Directors: Dr. Stefan Brupbacher, Marco Musetti and Dr. Eveline Steinberger nominated for election as new members. They replace Irina Matveeva, Gerhard Pegam and Zhenguo Yao, who are not standing for re-election.
Dividend per share: The Board of Directors will propose an ordinary dividend of CHF 0.20 per share.
Outlook for 2025: Organic sales are expected to be stable or increase by a low single-digit percentage at constant exchange rates. An operating EBITDA margin of ~15.5% is expected. Innovations and pricing at Surface Solutions should be compensated by a temporarily lower margin at Barmag (manmade fibers business).

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

	FY 2024	FY 2023	Compared to previous year	Q4 2024	Q4 2023	Compared to previous year
Order intake	2 372	2 457	-3,^5%1	540	552	-2,^2%3
Turnover	2 372	2 693	-11,^9%2	626	633	-1,^1%4
Operating EBITDA	393	444	-11,6%	108	100	7,7%
Operating EBITDA margin	16,6%	16,5%	10 bp.	17,2%	15,8%	140 bp.
EBITDA	369	384	-3,7%	97	64	50,0%
EBITDA margin	15,6%	14,2%	140 bp.	15,4%	10,2%	520 bp.
Consolidated ^profit5	72	23	209,6%	-	-	-

Differences in totals compared to the sum of the individual figures may result from rounding. The reconciliation of the operating EBITDA figures to the reported EBITDA figures can be found in the results presentation. ¹Effects of mergers and acquisitions: +1.3%, foreign exchange (FX): -3.0%, organic: -1.8% ²Effects of mergers and acquisitions: +1.0%, foreign exchange: -2.8%, organic: -10.1%. ³ Impact of mergers and acquisitions: 0%, foreign exchange: -1.5%, organic: -0.7% ⁴Impact of mergers and acquisitions: 0%, foreign exchange: -2.1%, organic: +1.0% 5 Only reported annually and semi-annually

Michael Suess, Executive Chairman of Oerlikon, commented as follows:

"In 2024, we successfully held our own in a difficult market environment thanks to our innovative strength and cost efficiency. Thanks to these efforts, we are well positioned for a market recovery. Both divisions contributed to this stable performance. Our future core business Surface Solutions once again improved its profitability and was able to keep sales stable. Polymer Processing Solutions achieved high profitability despite 25% lower sales than in 2023, while the order backlog stabilized over the course of the year."

"Our Pureplay strategy has reached an important milestone. Effective January 1, 2025, Oerlikon is a market leader for surface technologies with a subsidiary for manmade fiber solutions under the traditional name Barmag. We are making good progress in evaluating various options for the final spin-off over the next 12 to 24 months. Our ultimate goal remains to create maximum value for all stakeholders."

"In addition, we would like to welcome Dirk Linzmeier as Chief Operating Officer (COO) and member of the Group Executive Board. With this step, we are driving forward the generational change in the operational management of the company. We would like to thank Markus Tacke for his outstanding leadership and commitment. He stands for significantly higher profitable growth, the development of new markets and the improvement of our competitiveness and innovation."

Generation change in the operational management of the company

Effective April 1, 2025, Oerlikon appoints Dirk Linzmeier, 48, as Chief Operating Officer (COO) and new member of the Executive Board. As part of our strategic transformation to a pureplay company, he will lead the Surface Solutions business under the Oerlikon name in the newly created role of COO, reporting to Executive Chairman Michael Suess. Linzmeier has the necessary qualifications for this role: He has a strong track record of delivering profitable growth in leading technology companies and a keen understanding of our key end markets. He will bring his extensive expertise in transformation, digitalization and software to Oerlikon's transformation from an industrial conglomerate to a high-tech surface solutions and advanced materials company. Linzmeier is currently CEO of TTTech Auto, an Austrian "unicorn" and leading provider of system solutions for secure software-defined vehicles.

Linzmeier succeeds Markus Tacke, who has successfully managed the business for more than five years and led it into a new phase of profitable growth. Tacke will remain on board as a strategic advisor until the end of 2025 to ensure a seamless transition in operational management.

Change in 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 as new members. The election will take place at the upcoming Annual General Meeting on April 1, 2025. The new members will replace Irina Matveeva, Gerhard Pegam and Zhenguo Yao, who are no longer standing for re-election. The announced changes to the Board of Directors are in line with the company's current strategic transformation into a leading provider of surface technologies that is strongly rooted in the Swiss culture of quality and innovation.

Important Pureplay milestone: Oerlikon is a leader in surface technologies with a subsidiary for manmade fiber solutions

In February 2024, Oerlikon announced the final step of its long-term Pureplay strategy to focus on the high-tech business for surface solutions and advanced materials.

To this end, Oerlikon 2024 has driven forward the organizational separation of the manmade fiber business (Polymer Processing Solutions without HRSflow). As of January 1, 2025, this business will operate as an independent subsidiary and assume the name Barmag. Georg Stausberg will remain on the Group Executive Board and will continue to report to Executive Chairman Michael Süss. HRSflow will be reported as part of Surface Solutions as of January 1, 2025.

As announced in November 2024, Oerlikon has started to combine the functions of the Group and the former Surface Solutions Division to become more efficient and agile and to align administrative costs with the sales size of the future pureplay company. To ensure business continuity and a successful implementation of the spin-off during the challenging transformation phase, Oerlikon has introduced a retention plan for certain employees who are critical for a successful implementation.

Oerlikon is on track to evaluate options for the separation of Barmag (manmade fibers business) in the next 12 to 24 months with the aim of creating value for all stakeholders.

Oerlikon has evolved over the last decade from an industrial conglomerate to a leading supplier of surface technologies. The Group has downsized from five divisions to the current two divisions. The proceeds were used for dividends as well as organic and inorganic development of both divisions. Surface Solutions is now a resilient market leader, diversified across technologies, end markets and regions. Barmag (manmade fibers business) is the clear market leader for filament systems in terms of innovation and sustainability and shows growth through the cycle as well as an attractive return on capital.

Oerlikon Group management report for 2024

In 2024, despite the challenging environment, the Group's organic order intake remained roughly stable at constant exchange rates compared to the previous year (-1.8%). Organic sales decreased at constant exchange rates (-10.1%) due to the decline in orders from Polymer Processing Solutions in 2023.

Operating EBITDA amounted to CHF 393 million (2023: CHF 444 million) or 16.6% of sales (2023: 16.5%). This strong margin was supported by cost efficiency, innovation and pricing against the backdrop of lower sales. Oerlikon's net result amounted to CHF 72 million, an increase of 209.6% compared to the previous year, which was impacted by one-off charges.

Dividend of CHF 0.20 per share

The Board of Directors will recommend that shareholders approve the distribution of an ordinary dividend of CHF 0.20 per share at the Annual General Meeting (AGM) to be held on April 1, 2025. The AGM will take place at ENTRA, Rapperswil-Jona.

Outlook for 2025

At Group level, Oerlikon expects organic sales to remain stable or increase in the low single-digit percentage range at constant exchange rates. Innovation, pricing and cost efficiencies at Surface Solutions are expected to be offset by the temporarily lower margin at Barmag (manmade fibers business). As a result, Oerlikon expects an operating EBITDA margin of around 15.5% for the Group.

At Surface Solutions, Oerlikon expects organic sales to remain stable or increase by a low single-digit percentage at constant exchange rates despite weak end markets. The scope includes HRSflow, which will be part of Surface Solutions from 2025. The operating EBITDA margin is expected to be in the range of 18.5% to 19.0% (2024: 18.6% incl. HRSflow). This is a stable development compared to the previous year despite the challenging environment.

Barmag (manmade fibers business) should achieve stable or low single-digit percentage growth in organic sales at constant exchange rates. The order backlog is likely to have reached a low point in 2024. The operating EBITDA margin is expected to be around 7.5% (2024: 10.3%). This corresponds to a decline compared to the previous year due to price concessions made in 2024 to maintain the order volume. Beyond 2025, the operating EBITDA margin of Barmag (manmade fibres business) should be positively influenced by a price recovery and the ongoing optimization of the manufacturing footprint.

Surface Solutions Division: stable sales and improved profitability

Orders on hand at Surface Solutions remained roughly stable in 2024 (-1.6%) and Q4 (-3.0%) compared to the previous year (constant exchange rate, organic) despite weak markets. Customer purchasing behavior was cautious due to the weak industrial economy. Manufacturing PMIs in the eurozone remained in negative territory throughout the year, with PMI momentum slowing in Europe, the US and China in the second half of 2024.

The division achieved stable organic sales in 2024 (-0.1%) and Q4 (-1.2%) at constant exchange rates despite declining end markets. Resilience was supported by continued innovation and robust performance in general industry and aerospace, offsetting headwinds in tooling, automotive and luxury goods.

The operating EBITDA margin improved by 90 basis points to 18.0% in 2024. This increase was supported by innovation, pricing, efficiency and the continuous reduction of smaller, less profitable products from the materials portfolio. The operating EBITDA margin in Q4 decreased slightly compared to the previous year due to mix effects.

The division successfully launched several new products, including BALINIT ALCRONA EVO for the tool industry. In the luxury industry, the first customized PVD coatings (physical vapor deposition process) were well received by customers and successfully launched on the market. To take advantage of the strong growth potential in the US, the business opened a modern coating center in the US for the aerospace and gas turbine sectors. The transfer of additive manufacturing (3D printing) to the United States at the beginning of 2024 got off to a successful start. The business has seen a sharp rise in orders from the aerospace, defense and semiconductor industries. This contributed significantly to Additive Manufacturing reaching break-even at EBITDA level in the fourth quarter of 2024. In Germany, the division also secured further orders for its new battery protection solutions for e-mobility.

Key figures as at December 31, 2024 (in CHF million)

	FY 2024	FY 2023	Year-on-year comparison	Q4 2024	Q4 2023	Year-on-year comparison
Order intake	1 476	1 514	-2,^5%1	353	370	-4,^6%3
Turnover (with third parties)	1 498	1 521	-1,^5%2	378	391	-3,^4%4
Operating EBITDA	270	262	3,1%	67	72	-6,9%
Operating EBITDA margin	18,0%	17,1%	90 bp.	17,6%	18,2%	-60 bp.
EBITDA	263	230	14,3%	64	48	34,2%
EBITDA margin	17,5%	15,1%	240 bp.	17,0%	12,2%	480 bp.
Differences in totals compared to the sum of the individual figures may result from rounding. The reconciliation of the operating EBITDA figures to the reported EBITDA figures can be found in the results presentation. ¹Effects of mergers and acquisitions: +2.2%, foreign exchange (FX): -3.0%, organic: -1.6% ²Effects of mergers and acquisitions: +1.8%, foreign exchange: -3.2%, organic: -0.1% ³ Impact of mergers and acquisitions: 0%, FX: -1.6%, organic: -3.0% ⁴Effects of mergers and acquisitions: 0%, foreign exchange: -2.2%, organic: -1.2%

Polymer Processing Solutions division: order backlog and high profitability stabilize

Following the decline in orders from the filament business in 2023, Polymer Processing Solutions' order backlog stabilized in the 2024 financial year (-2.1% at constant exchange rates) and recorded a slight increase in the fourth quarter (+4.1% at constant exchange rates). The division recorded positive momentum in small and medium-sized filament orders in 2024. However, weak industrial production, which is reflected in the PMIs, had a negative impact on the non-filament business, where order intake in the second half of the year fell to its lowest level since 2016.

2024 sales decreased by 23.0% at constant exchange rates, reflecting the shift in order backlog in 2023 (Q4 sales: +4.6% at constant exchange rates).

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

The Polymer Processing Solutions division introduced important innovations in 2024. These include advanced energy-efficient technologies and components for manmade fiber production as well as new digital applications for atmos.io, the innovative digital environment solution for higher productivity and material quality.

Key figures as at December 31, 2024 (in CHF million)

	FY 2024	FY 2023	Year-on-year comparison	Q4 2024	Q4 2023	Year-on-year comparison
Order intake	896	943	-5,^0%1	187	182	2,^8%3
Turnover (with third parties)	875	1 172	-25,^4%2	248	241	2,^7%4
Operating EBITDA	112	170	-34,0%	38	27	38,5%
Operating EBITDA margin	12,8%	14,5%	-170 bp.	15,2%	11,2%	400 bp.
EBITDA	108	143	-24,1%	37	15	136,2%
EBITDA margin	12,4%	12,2%	20 bp.	14,7%	6,4%	830 bp.
Differences in totals compared to the sum of the individual figures may result from rounding. The reconciliation of the operating EBITDA figures to the reported EBITDA figures can be found in the presentation of results. ¹Effects of mergers and acquisitions: 0%, foreign exchange (FX): -2.9%, organic: -2.1% ²Effects of mergers and acquisitions: 0%, foreign exchange: -2.3%, organic: -23.0% ³ Impact of mergers and acquisitions: 0%, FX: -1.3%, organic: +4.1% ^{4 Impact}of mergers and acquisitions: 0%, foreign exchange: -1.9%, organic: +4.6%

Further information

Conference Annual Results 2024

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

9:30 CET	Personal media briefing	Zunfthaus zur Saffran
13:30 CET	Hybrid analyst and investor conference	Zunfthaus zur Saffran and live webcast

Virtual live presentation for analysts and investors

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

For the Q&A session, please dial in via one of these telephone numbers:

Switzerland/Europe	+41 58 310 50 00
Great Britain	+44 207 107 06 13
USA	+1 631 570 56 13
Further international telephone numbers	Please click here

The following documents on the financial year 2024 can be downloaded from the Oerlikon website

Annual Report 2024 (English)	www.oerlikon.com/annualreport-2024
Sustainability Report 2024 (English)	www.oerlikon.com/sustainabilityreport-2024
Press release results of the financial year 2024	www.oerlikon.com/pressreleases
Presentation financial year 2024	www.oerlikon.com/en/investors/reports-publications

About Oerlikon

Oerlikon (SIX: OERL) is a global leader in surface technologies with a manmade fiber solutions subsidiary, Barmag. With a unique portfolio of surface technologies, advanced materials, coating equipment and components, we improve our customers' products: increasing efficiency, durability and sustainability. Oerlikon serves a wide range of industries, including aerospace, automotive, energy, medical technology and luxury goods. Headquartered in Pfäffikon, Switzerland, the Group has over 12 000 employees at 199 locations in 38 countries with sales of CHF 2.4 billion in 2024.

Disclaimer

OC Oerlikon Corporation AG, Pfäffikon (hereinafter together with the Group companies referred to as "Oerlikon"), has made considerable efforts to ensure that only current and factually accurate information is included in this document. Nevertheless, it should be noted and clarified that Oerlikon hereby disclaims all warranties, express or implied, as to the completeness and accuracy of the information contained in this document. Neither Oerlikon nor any of its directors, officers, employees, advisors or other persons connected or otherwise related to Oerlikon shall be liable for any damages or losses of any kind arising directly or indirectly from the use of this document.

This document (and all information contained herein) is based on estimates, assumptions and other information currently available to Oerlikon's management. This document contains statements that relate to the future operating and financial performance of Oerlikon or future events relating to Oerlikon. Such statements may be deemed to be forward-looking statements. Such forward-looking statements involve and are subject to certain risks, uncertainties and other factors which are not foreseeable at this time and/or over which Oerlikon has no control. These risks, uncertainties and other factors could cause Oerlikon's results (in particular its operating and financial results) to differ materially from those expressed or implied by such forward-looking statements. Oerlikon makes no representation or warranty, express or implied, that such forward-looking statements will prove to be accurate. Oerlikon is under no obligation and assumes no liability whatsoever to update or otherwise revise such forward-looking statements to reflect new information, future events or other developments.

This document (and any information contained herein) does not constitute an offer to buy, sell or otherwise deal in securities of Oerlikon, nor should it be construed as a solicitation of an offer to buy, sell or otherwise deal in securities of Oerlikon. Investors are fully and exclusively responsible for their own investment decisions.

Clone of: Annual result 2024