ORIOR : Alternative Performance Measures Half Year 2022

ORIOR AG

ALTERNATIVE PERFORMANCE MEASURES HALF-YEAR 2022

ORIOR HALF-YEARREPORT 2022 | Alternative Performance Measures

Alternative Performance Measures

ORIOR uses financial performance measures in its Annual Reports, Half Year Reports and additional communication with investors that are not defined by Swiss GAAP FER (Alternative Performance Measures). According to the management they provide useful and relevant information regarding the operative and financial performance of the group.

Below the most important performance measures are explained and reconciled to Swiss GAAP FER figures. The Alternative Performance Measures in use may not correspond to performance measures with similar names of other companies. Every Alternative Performance Measure shown in the financial report is related to the performance of the current or the previous year.

Performance

Net sales development

Due to its international profile and frequent acquisitions the ORIOR Group classifies net sales deviations to the previous year in three effects:

- Organic growth

- Currency translation effect

- Acquisition effect

	Organic growth
	Organic growth is defined as the net sales deviations after removal of acquisition /disinvestment effects and
	currency fluctuations. This allows a comparison with the previous year assuming a steady consolidation scope
	and constant currencies. The calculated organic growth corresponds to the residual after calculation the currency
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translation effect and the acquisition effect.
	Currency translation effect
	The currency translation effect shows the impact of currency fluctuations on net sales. It is calculated as differ-
	ence between net sales of the current year and net sales of the current year in constant currency (constant curren-
	cy means the translation of foreign subsidiaries with the average currency rate of the previous year).
	Acquisition effect
	The acquisition effect presents the net sales gained by acquisitions. As long as the corresponding previous period
	has not been consolidated these net sales are defined as acquisition effect. This means acquisition's net sales of
	the first 12 months are considered acquisition effect.

The resulting effects are then shown in relation to the net sales of the previous year.

Net sales development 2022	Jan - Jun 22	Org	FX	Akq	Jan - Jun 21
Net sales in kCHF	309 194	22 552	- 5 269	0	291 910
Net sales development by effect	5.9%	7.7%	- 1.8%	0.0%
Ø currency rate CHF/EUR			1.0321
Net sales development 2021	Jan - Jun 21	Org	FX	Akq	Jan - Jun 20
Net sales in kCHF	291 910	2 474	2 022	0	287 414
Net sales development by effect	1.6%	0.9%	0.7%	0.0%
Ø currency rate CHF/EUR			1.0942

ORIOR HALF-YEARREPORT 2022 | Alternative Performance Measures

Gross profit and gross margin

Gross profit and gross margin are not defined in the total cost method structure by Swiss GAAP FER. ORIOR uses gross profit and gross margin to explain the development of cost of goods sold. Gross profit consists of the net sales reduced by raw materials, goods and services purchased adjusted by the changes in inventories. Gross margin is calculated as gross profit divided by net sales.

in kCHF	Jan - Jun 22	Jan - Jun 21
Net sales	309 194	291 910
Raw materials / goods purchased	- 171 031	- 166 924
Changes in inventory	3 092	4 928

Gross profit	141 255	129 914
Gross margin	45.7%	44.5%

EBITDA and EBITDA margin

EBITDA equals earnings before interest, taxes, depreciation and amortisation. EBITDA margin is calculated as EBITDA divided by net sales.

in kCHF	Jan - Jun 22	Jan - Jun 21
Earnings before Interest and Tax (EBIT)	17 469	17 125
+ Depreciation - property, plant and equipment	8 639	9 820
+ Amortisation - intangible assets	4 133	4 122
EBITDA	30 241	31 067
Net sales	309 194	291 910
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EBITDA	30 241	31 067
EBITDA margin	9.8%	10.6%

Adjusted EBITDA

ORIOR uses an adjusted EBITDA in order to disclose the development of operative performance without profit- related impacts from acquisitions. Acquisition impacts mainly include transaction and integration costs with effect on profit and loss. This ensures comparability as these are one-off transaction and integration effects related to acquisitions. These adjustments on EBITDA are disclosed as Adjusted EBITDA. There were no material transaction and integration costs, neither in the reporting period nor in the previous year. Therefore, no reconciliation is needed.

ORIOR HALF-YEARREPORT 2022 | Alternative Performance Measures

Liquidity/capital structure

Equity ratio

Equity ratio is the ratio of total equity, including non-controlling interests, to total assets or total liabilities.

in kCHF	30.06.2022	30.06.2021
Total assets	378 114	373 600
Equity attributable to owners of the parent	74 532	65 690
Non-controlling interests	1 892	2 183
Total equity	76 424	67 874
Equity ratio	20.2%	18.2%

ORIOR applies the method of goodwill offset against equity which is allowed according to Swiss GAAP FER. The theoretical capitalisation and amortisation of goodwill is not shown in the notes to the half year report. Therefore, the calculation of the equity ratio under the assumption that ORIOR would apply the method of capitalising and depreciating goodwill is excluded.

Cash conversion

ORIOR defines cash conversion as relation of cash flow from operating activities to EBITDA. This performance measure shows how much of the operating result before depreciation and amortisation has been translated to cash flow from operating activities.

		in kCHF	Jan - Jun 22	Jan - Jun 21
		EBITDA	30 241	31 067
		Cash flow from operating activities	26 749	26 987
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	Cash conversion	88.5%	86.9%

Net debt/EBITDA-ratio

ORIOR uses this performance measure to demonstrate the relation between debt and profitability. Net debt, which is calculated below, is divided by EBITDA of the last twelve months.

in kCHF	Jan - Jun 22	Jan - Jun 21
EBITDA 2nd half of previous year	33 023	29 329
EBITDA 1st half of reporting period	30 241	31 067
EBITDA LTM*	63 264	60 396
+ Current financial liabilities	14 317	10 529
+ Non-current financial liabilities	146 637	155 389
- Cash and cash equivalents	- 25 296	- 18 845
Net debt	135 658	147 073
Net debt / EBITDA ratio	2.14	2.44

* LTM = Last Twelve Months

ORIOR HALF-YEARREPORT 2022 | Alternative Performance Measures

RoCE

Return on Capital Employed [ROCE] shows the profitability of the capital employed. EBIT of the last twelve months is divided by the capital employed as at reporting date. As the entire capital of an acquisition /disinvestment is included in capital employed, an acquisition's/disinvestment's EBIT of the months before / after the transaction is added /subtracted to show last twelve months.

in kCHF	Jan - Jun 22	Jan - Jun 21
+ Current assets	191 050	177 290
- Current liabilities	- 122 467	- 112 781
- Cash and cash equivalents	- 25 296	- 18 845
- Current financial assets	- 633	- 565
+ Current financial liabilities	14 317	10 529
+ Property, plant and equipment	123 694	121 885
+ Intangible assets	59 165	71 346
+ Financial assets	4 205	3 079
Capital employed	244 035	251 939
EBIT - LTM *	35 695	32 908
EBIT - Acquisitions	0	0
EBIT - LTM * adjusted	35 695	32 908
ROCE	14.6%	13.1%
* LTM = Last Twelve Months

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