Strong Execution in 20222
• 2022 with highest Group order intake and sales since Oerlikon focused on two divisions. Order intake increased by 7% (+11% FX-adjusted); sales grew by 10% (+14% FX-adjusted).
• Operational EBITDA increased by 10%; the corresponding margin was 17.1%.
• After a record performance in 2022, preparing for less robust demand in filament in 2024.
• Agreement signed in Q4 to acquire Riri1 to become a market leader in luxury metalware.
• Board to propose an ordinary dividend of CHF 0.35 per share at the AGM.
• 2023 outlook: organic sales of CHF ~2.8 billion at constant FX rates expected; additional CHF 100-150 million sales from Riri acquisition, depending on closing date; operational EBITDA margin of 16.0-16.5%.
• Proposing to strengthen diversity and independence of Board with new Board nominee.
Key Figures of the Oerlikon Group as of December 31, 2022 (in CHF Million)
| FY 2022 | FY 2021 | ∆ | Q4 2022 | Q4 2021 | ∆ | |
| Order intake | 2 990 | 2 797 | 6.9% | 663 | 673 | -1.4% |
| Order backlog | 782 | 736 | 6.3% | 782 | 736 | 6.3% |
| Sales | 2 909 | 2 649 | 9.8% | 736 | 758 | -3.0% |
| Operational EBITDA1 | 498 | 452 | 10.1% | 122 | 127 | -4.2% |
| Operational EBITDA margin1 | 17.1% | 17.1% | 0 bps | 16.6% | 16.8% | -20 bps |
| Operational EBIT1 | 277 | 240 | 15.8% | 64 | 72 | -10.6% |
| Operational EBIT margin1 | 9.5% | 9.0% | 50 bps | 8.7% | 9.4% | -70 bps |
| Result from continuing operations | 93 | 162 | -42.7% | – | – | – |
| Net result | 93 | 168 | -44.9% | – | – | – |
| ROCE (rolling 12-month) | 5.3%2 | 7.6% | – | 5.3%2 | 7.6% | – |
“We demonstrated strong execution on our strategy, focusing on growth, diversification, and sustainability, despite macroeconomic headwinds,” said Michael Suess, Executive Chairman, Oerlikon.
“We accelerated our expansion into luxury with the agreement to acquire Riri, strengthened our regional structure and business, especially in the Americas, and were pleased to see our sustainability ratings upgraded,” added Suess. “Continued lockdowns and weaker textile demand have led to a difficult market environment for our filament business. In Q4, we took the appropriate steps to prepare for lower sales in 2024 and preserve our profitability.”
Strong 2022 Top-Line Driven by Both Divisions
Oerlikon delivered growth in orders and sales, supported by strong execution in both divisions. Group order intake increased by 6.9% to CHF 2 990 million, 10.6% FX-adjusted, and Group sales increased by 9.8% to CHF 2 909 million, 13.9% FX-adjusted, compared to the previous year.
Operational EBITDA up 10% in 2022
Group operational EBITDA increased by 10.1% to CHF 498 million, versus CHF 452 million in 2021. The operational EBITDA margin was sustained at the same level at 17.1% as in the prior year, despite transitory impacts from rising input costs (incl. energy) and adverse mix. The operational EBIT margin was 9.5% (CHF 277 million) compared to 9.0% (CHF 240 million) in the previous year.
EBITDA and EBIT Impacted by Preemptive Measures to Mitigate Softening Macro Environment
Group unadjusted EBITDA decreased 5.8% year-over-year to CHF 418 million, or 14.4% of sales, while Group unadjusted EBIT was CHF 176 million, or 6.0% of sales. As previously indicated, Oerlikon is optimizing its product portfolio and started to take proactive cost actions in Q4 2022 to mitigate potential macroeconomic impacts.
In Surface Solutions, Oerlikon exited its Russian operations and discontinued its inline embedded PVD (ePD) business to optimize its portfolio, consistent with its strengthened capital allocation framework. The discontinuations resulted in one-off, primarily non-cash expenses. The 2021/22 operational EBIT(DA) is adjusted to reflect the discontinuation of these activities.
Moreover, both divisions have proactively begun streamlining their organization. The one-off provisions for these measures have been booked in Q4 2022, and the majority of the associated positive income statement impacts are expected in the second half of 2023.
The reconciliation of the operational and unadjusted figures can be seen in the tables below.
Table I: Reconciliation of Q4 2022 and FY 2022 Operational EBITDA and EBITDA1
| In CHF million | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
| Operational EBITDA | 122 | 127 | 498 | 452 |
| Expenses/income from restructuring2 | -53 | 1 | -54 | 2 |
| Expenses related to discontinued activities3 | -11 | 1 | -17 | -5 |
| Expenses related to acquisition and integration costs | -3 | – | -9 | -5 |
| EBITDA | 55 | 129 | 418 | 444 |
Table II: Reconciliation of Q4 2022 and FY 2022 Operational EBIT and EBIT1
| In CHF million | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
| Operational EBIT | 64 | 72 | 277 | 240 |
| Expenses/income from restructuring2 | -53 | 1 | -54 | 2 |
| Impairment charges | – | -5 | – | -8 |
| Expenses related to discontinued activities3 | -30 | – | -39 | -9 |
| Expenses related to acquisition and integration costs | -3 | – | -9 | -5 |
| EBIT | -22 | 67 | 176 | 220 |
The Group’s net result was CHF 93 million in 2022, compared with CHF 168 million in 2021. The improvement in operational EBITDA did not completely offset the one-off costs and impairments. Earnings per share in 2022 were CHF 0.27 (CHF 0.50 in 2021).
As of December 31, 2022, Oerlikon had net debt of CHF 471 million. This corresponds to a net debt/operational EBITDA ratio of 0.9. Net debt was impacted by an increase in net working capital related to higher raw material prices and lower customer advances due to weakening end markets. Oerlikon’s total equity ratio was 33% at the end of 2022.
