Press releases (12/03/12)

Oerlikon divests Natural Fibers and Textile Components Business Units to the Jinsheng Group

A further successful step in rebalancing Oerlikon’s portfolio

Conference Call

• Significant reduction of Oerlikon’s exposure to the textile industry from 53 % to 33 % of total sales
• Remaining Textile Segment to focus on the manmade fiber business
• Transaction based on an enterprise value of around CHF 650 million
• Oerlikon guidance for full year 2012 revised upwards
• Closing expected in Q3 2013

Pfäffikon SZ, Switzerland – December 3, 2012 – The Oerlikon Group has signed an agreement with the Jinsheng Group of China to divest the Natural Fibers and Textile Components Business Units from its Textile Segment. The divestment is an important strategic step to optimize and balance Oerlikon’s portfolio by significantly reducing the Group’s overall exposure to the textile industry.

Oerlikon’s Textile Segment will focus on the manmade fiber business, a high performing segment with less cyclicality. The transaction is based on an enterprise value of around CHF 650 million and is expected to close in Q3 2013.

Oerlikon CEO Michael Buscher said: ”This transaction is a further milestone in balancing the Oerlikon portfolio. It significantly reduces our overall exposure to the textile industry and allows us to focus on the less cyclical, higher margin manmade fibers business, which will deliver sustainable benefit to our shareholders, customers and employees."

The divestment of the Natural Fibers and Textile Components Business Units considerably reduces Oerlikon Group’s exposure to the global textile business, whilst retaining and building on its position as a world leader in the manmade fibers segment. With sales of CHF 2.0 billion in 2011, the Textile Segment represented 53 % of total restated Group sales (excluding the recently divested Solar business). The Business Units being sold accounted for sales of CHF 1.1 billion in 2011 and employ around 3 800 employees. After the divestment, the restated share of revenues from the textile sector will be around 33 % of total Group sales.

Process and Guidance

The transaction is subject to merger control approval in a number of countries. Closing is expected in Q3 2013.

Oerlikon will report the Natural Fibers and Textile Components Business Units under “Discontinued Operations” in the 2012 full year accounts. Consequently, Oerlikon updates its guidance for the financial year 2012. Based on preliminary restated FY 2011 Group figures for sales (CHF 2.7 billion), order intake (CHF 2.9 billion) and an accretive EBIT margin impact, Oerlikon expects the following for continuing operations for the financial year 2012:

• sales growth of more than 5 % (prior: to be at 2011 levels)
• order intake to be close to previous year’s level (prior: up to minus 5 %)
• EBIT margin expected to increase by around 1 percentage point on prior guidance (prior: around 12.5 %, reported)

Additional information

The Oerlikon Management will host a conference call in English for analysts, financial media and investors tomorrow starting at 09.30 a.m. CET. To participate, please dial the following numbers a few minutes before the start:

Switzerland                    +41 22 417 7109 Germany                       +49 30 9919 4890 Austria                           +43 1 795 76048 UK                                +44 20 7138 0815 USA                              +1 718 354 1359 Confirmation Code:         9480655

The accompanying presentation can be viewed in parallel by opening the following link http://webmeeting.adobeconnect.com/e9480655. Please sign in as a guest.

The Oerlikon Management will host a conference call in German for the media tomorrow starting at 12:00 p.m. CET. To participate, please dial the following numbers a few minutes before the start:

Switzerland                    +41 22 592 7641 Germany                       +49 30 99 19 4890 Austria                           +43 1 25 302 17 62 Confirmation Code:         5421625

The accompanying presentation can be viewed in parallel by opening the following link http://webmeeting.adobeconnect.com/e5421625. Please sign in as a guest.

Disclaimer:

OC Oerlikon Corporation AG, Pfäffikon (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 and Oerlikon disclaims any liability whatsoever for the use of it.

This document (including all statements made therein) is 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 actual results, including Oerlikon`s financial results and results of operation, may vary materially from and be worse than those (expressly or implicitly) anticipated, expected or projected in the forward-looking statements. There can be no assurance and no representation or warranty, express or implied, is given that such forward-looking statements will be realized. Oerlikon is under no obligation to (and expressly disclaims any obligation to) update or otherwise review its forward-looking statements, whether as a result of new information, future events, or otherwise.

This document, including any and all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Oerlikon for the purchase or disposal, trading or any transaction in any Oerlikon securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions.