Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

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The focus of investment was on further expansion of business
activities in China and India. Oerlikon Drive Systems expanded
production in India and constructed a new plant in Suzhou,
China. Oerlikon Coating built new centers in both China and
India. Oerlikon Vacuum boosted capacity at Tianjin, China and
Oerlikon Textile expanded production in Suzhou.
The Group’s financial position
continues to improve
The company’s strong operational performance resulted in a
significant increase in cash flow. Cash flow from operating activities
before changes in net current assets increased to
CHF 541 million in 2011, up from CHF 354 million a year ago.
The Group continued to keep net working capital at a low level:
2011 net working capital amounted to CHF 289 million, compared
with CHF 302 million at the end of 2010.
The net financial result amounted to CHF –104 million (previous
year: CHF –58 million). The Group is evaluating refinancing
options to further reduce financial expenses and to diversify its
sources of funding.
Higher profits increased taxes to CHF 91 million (2010: tax
income of CHF 12 million), leading to a Group tax rate of 29 %.
The Group’s net profit in 2011 totaled CHF 224 million (previous
year: CHF 5 million).
As of December 31, 2011, equity (attributable to shareholders)
totaled CHF 1 586 million (December 31, 2010: CHF 1 430 million).
The equity ratio rose from 32 % of total assets at the end
of 2010 to 35 % at the end of 2011. Net debt was reduced to
CHF 86 million at the end of 2011 from CHF 274 million at the
end of 2010. This represents a gearing (net debt/equity) of 5 %
(2010: 19 %) and a leveraging (net debt/EBITDA) of 0.14 (2010:
0.99).
Human Resource work intensified
Oerlikon launched a new HR information system in 2011 which
employs a series of modules to further improve employee
efficiency and the quality of work in the Group. Module topics
include professional performance management, personnel development
planning and 360-degree monitoring of management.
Thanks to a uniform Group-wide system of key perfor-
Operating cash flow 1
in CHF million
90
511
435
493
(11 %)
1 430
(32 %)
1 586
(35 %)
2009 2 2010 2011 2009 2 2010 2011
1 Before changes in net current assets
2 Continuing operations
Letter Information for Investors Operational Review Sustainability Compliance Corporate Governance
Equity 1
in CHF million (% of sales)
Oerlikon Group
1 Attributable to shareholders of the parent
2 Continuing operations
mance indicators, the effectiveness of managers’ work can be
evaluated and compared. The evaluation scores help determine
compensation and have an impact on the executives’
long-term career development. This, in combination with the
Learning Agility program, ensures that high-potential employees
are identified and systematically supported.
Technical and commercial apprenticeships and traineeships
as well as leadership-training workshops for experienced
managers are also given top priority. Hundreds of employees
took advantage of these programs in 2011.
Sustainability reporting to be expanded
A number of Oerlikon’s products aims to directly or indirectly
improve the ecological footprint of the company’s customers
and of end consumers. In many cases they contribute to the
reduction of energy consumption. This is not only true for the
solar business, but for all of Oerlikon’s Segments. For example,
Oerlikon Textile has developed new machines which reduce
energy consumption by up to 50 %. Oerlikon’s technologies
are being used in the production of LEDs and of low-consumption
diesel engines. The company also aims to lower the energy
consumption of its products and of its production process.
In terms of operational integrity, all local regulations are met
and all certificates (ISO, OSHA, etc.) held by the company have
been issued for individual production sites. Currently, Oerlikon
is building up a company-wide system for Health, Safety and
Environment (HSE) which will monitor and control all HSE activities
on a Group-wide basis in order to make sure that worldclass
standards are being followed in all our locations. Reporting
on sustainability will therefore be intensified in future.
Changes to the Board of Directors and Executive
Management
The Annual General Meeting of May 10, 2011, elected Tim
Summers as a member of the Board of Directors and reelected
the remaining members Kurt J. Hausheer, Dr. Urs A. Meyer,
Gerhard Pegam, Carl Stadelhofer, Wolfgang Tölsner and Hans
Ziegler. Following the Annual General Meeting, the Board of
Directors elected Tim Summers to the position of Chairman in
its first meeting held under its new composition.
Net debt
in CHF million
1 646
274
86
2009 2010 2011