Slides
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1 Sense the power of light 1 Full Year and Fourth Quarter 2024 Results Investor Presentation Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 11 February 2025
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2 2 ams OSRAM at a glance A company in transition to structural growth in automotive, industrial/medical & selected consumer applications with 110+ years of combined company history Industrial & medical: − #1 horticulture led lighting − #1 in CT medical imaging Revenues by application1 & Market positions Return to structural growth – value proposition Our segments & technologies Semiconductors Lamps & Systems Sensors & ICs Key Figures1 & Semiconductor TAM3 − Target operating model 2027: 6-10% semi core revenue CAGR, 20-24% adj. EBITDA (group), ~8% CAPEX to sales − ‘Re-establish the base’ program to achieve run-rate savings of ~225m€ by E-2026 (vs. 2023 actuals) − Positive Free Cash Flow (including net interest)4 => > 100 m€ in 2025 LED & lasers 52% 25% 23% ~2.4 bn€ ~1.0 bn€ Consumer: − #2 in light sensors Automotive: − #1 Auto LED & lasers − #1 in traditional lamps 12 bn€ TAM3 Ind. & Med.: mid-single digit % CAGR2 Auto: high-single digit % CAGR2 Consumer: mid-single digit % CAGR2 Revenues 3.4 bn€ Adj. EBITDA 575 m€ / 16.8% Customers: >10k Employees: ~19.7k Engineers; ~5k Patents: >13k 1 Fiscal Year 2024 2 Fiscal Year 2024 with CAGR 2024 – 2027 3 Total Addressable Semiconductors Market => no dedicated, only partial market reports for ams OSRAM addressed application segments available 4 Defined as Operating Cashflow – Capital expenditures + proceeds from divestments 2
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3 3 I&M ~18% AUT ~82% CON ~68% I&M ~26% AUT ~6% Our segments - overview of business units and applications AUT = Automotive, I&M = Industrial & Medical, CON = Consumer Opto Semiconductors (OS) CMOS Sensors & ASICs (CSA) Lamps & Systems CON ~7% I&M ~30% AUT ~64% Semiconductors Cinema Forward Lighting (FWL) High pixelated FWL Signaling Hyper-red LEDs Industrial & Outdoor Sensing illumination Display & HUD In-Cabin Sensing Medical imaging (e.g. CT Sensors) 1D/2D/3D sensing Camera enhancement Spectral & Ambient Light Sensing Display Proximity Sensing Flicker Detection LED replacement lamps LED standard lamps Classic halogen & Xenon lamps ~1.4 bn€ ~1.0 bn€ ~1.0 bn€FY24 3
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4 4 Q4/24: Revenues and adj. EBITDA above mid-point of the guidance 847 819 881 882908 Group revenues − QoQ: Revenue above mid-point of guided range of EUR 810m to 910m − YoY: -3% like-for-like growth (constant currencies, same portfolio) due to EoL of OEM module business and decline in non-core, semiconductor legacy portfolio (mostly exited by end-FY24) ø EUR/USD 1.08 1.10 1.07 +0% -3% 1) Based on like-for-like portfolio comparison and constant currencies 2) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses -3% YoY like-for-like1) 1.08 1.09 150 124 135 166 150 16.5% 14.6% 16.5% 18.8% 17.0% -10% Q4/23 Q2/24 Q4/24 +0% Q3/24Q1/24 − QoQ: adj. EBITDA margin above mid-point of the guided range, supported by FX and currently recurring non-refundable engineering payments − YoY: adj. EBITDA flat despite lower revenues due to underlying ‘Re- establish the Base’ cost-savings and non-refundable engineering payments EBITDA, EBITDA margin (adj.)2) Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 FX effects 4 Auto lamps with strong aftermarket season, solid auto semi revenues compensated weak I&M semi business All figures in EURm / % of revenues
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5 5 Semiconductors: structural growth in consumer compensates cyclical weakness in automotive and I&M All figures in EURm / % of revenues 279 177 174 253 155 170 251 185 159 234 184 230240 158 210 Q1/24 Q2/24 I&M denotes Industrial & Medical − QoQ: normal seasonal demand pattern − YoY: strong increase due to ramp of new products and solid overall consumer handheld and wearables sales − QoQ: up due to backlog orders in OS and ramp of auto sensors − YoY: down in line with market cyclicality compared to all-time- high in Q4/23 Q3/24 Q4/24Q4/23 − QoQ: down due to horticulture seasonality and weakness in mass market & medical − YoY: reduction due to persistent inventory correction in capital goods market, medical equipment and overall market weakness -14% +3% -11% -14% +21% -9% Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Automotive revenues I&M revenues Consumer revenuesTotal semi revenues 629 578 596 647 608 -6% -3% Q1/24 Q2/24 Q3/24 Q4/24Q4/23 − QoQ: I&M with seasonal & cyclical weakness, auto stable, consumer seasonally softer − YoY:slight decline driven by auto inventory correction and I&M decline ~non-core for exit
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6 6 Free Cash Flow positive in Q4 and FY24 All figures in EURm / % of revenues 1) Free Cash Flow (FCF) defined as Operating CF (incl. net interest paid) – Capex + proceeds from divestments -125 -60 -119 188 2 Free Cash Flow (FCF)1) incl. divestments, incl. net interest paid Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 2 FY 24 12FY 23 -332 1) FCF in both FY23 and FY24 including divestments and interest payment EURm Q4/23 Q3/24 Q4/24 Operating CF 34 246 79 strong underlying adj. EBITDA despite seasonality (in Q3/24, EUR >200m customer prepayment) CAPEX -222 -102 -104 significant overhang from microLED equipment that could not be cancelled (EUR >40m) Inflow from divest. 63 45 27 27m in Q4/24, overhang equipment from microLED project that was sold
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7 7 FY24 achievements Staying on course in executing the strategic efficiency program RtB in spite of major change in microLED strategy Revenue growth of ~7% yoy in the semi core portfolio1 ‘Re-establish- the Base’ (RtB) savings implementation ahead of plan & upsized2 Non-core semiconductor portfolio (mostly) exited3 Technology leadership strengthened 4 Strong design-win momentum for structural growth continued5 Profitability stabilized, minimizing microLED strategy transformation cost6 FCF positive (incl. interest paid) supported by customer prepayments7
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8 8 FY24 – new consumer ramps compensated slow industrial & automotive business Growth in the core semi-portfolio, decline in reported revenue due to L&S deconsolidation & non-core semi portfolio exit Semi Automotive2) Semi Industry & Medical2) Semi Consumer2) Lamps & Systems2) 1,003 978 FY 23 FY 24 742 682 FY 23 FY 24 1,041 1,000 124 FY 23 FY 24 681 769 FY 23 FY 24 13%-2% -8% Group Revenues − L&S: portfolio divestitures & phase out of legacy OEM module products − Semi: gradual exit in non-core portfolio; growth in core-portfolio driven by ramp of new products in consumer compensating slow demand in industrial & automotive end markets FY 23 FY 24 L&S divestitures FX effect 3,466 3,428 124 Semiconductors2) ~2,075 ~2,230 FY 23 FY 24 +0% non-core portfolio in exit semi-core growth approx. ~7% yoy 3,590 3,428 2,426 2,429 -1% YoY like-for-like1) 1) Based on like-for-like portfolio comparison and constant currencies 2) including FX effect 3,437 -4% YoY like-for-like1)9 1,165
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9 9 FY24 – adj. EBITDA margin stable All figures in EURm / % of revenues 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses − Adj. EBITDA: market weakness offset improvements due to ‘Re-establish the Base’, lower cost base and gradual exit of non-profitable non-core semiconductor portfolio & customer development payments; deconsolidation of L&S portfolio also reduced adj. EBITDA − Adj. EBIT: in addition, improved margin due to lower depreciation after impairment of manufacturing equipment -5% FY 23 FY 24 adj. EBITDA, EBITDA margin 1) adj. EBIT , EBIT margin 1) +3% 233 (6.5%) 241 (7.0%) FY 23 FY 24 604 575 16.8% 16.8%
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10 Target model: Semiconductor business to grow 6% to 10% through cycle until 2027 2024 2027 Lamps & Systems Semiconductors Semi non-core ~200 m€ non-core Leverage Group Free Cash Flow 3) Group adj. EBITDA Margin Net Debt / (adj.) EBITDA < 2x Positive by 2025 20% to 24% Notes: 1) Driven from new base following disposal/exit of “non-core” semiconductor assets 2) >2x WSTS opto-electronics F99 & sensors H99 = 3.1% CAGR `22 to `26 due to addressed segments 3) Free Cash Flow = Operating Cash Flow (incl. net interest paid) less cash flow from CAPEX plus proceeds from divestments Evolution of target operating model to focus on semi growth and reflect current market environment and semi-cycle 20% - 24% 3 elements for EBITDA target: 1. Re-stablish-the-Base program (EUR 225m savings by E-26) 2. Ramp of new design-wins 3. Cycle / market recovery Profitability model – focus on EBITDA Over-the-cycle targets 2024 2027 Semiconductor - Revenues 6% - 10% CAGR 1) Group CAPEX ~8% of Sales Growth model Managing for CF and EBITDA Semi Lamps Lamps Semi Key semi growth elements 1. Automotive (largest) 2. Mobile light sensors 3. Industrial & medical ~ slightly down or flat
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11 11 ams OSRAM holds leading positions in its core semiconductor & lamps markets Leverage strong positions with focused core portfolio and commitment to Automotive, Industrial, Medical markets 1. Nichia 2. ams OSRAM 3. Seoul Semiconductors 4. Samsung LED 5. MLS 14% 13% 7% 7% 6% LED Suppliers by 2024(E) market share (Total market USD ~11.5bn; TrendForce) 1. ams OSRAM 2. STMicroelectronics 3. Sensortek (Sitronix) 4. ADI (includes Maxim) 5. Capella/Vishay 37% 32% 5% 4% 3% Light Sensor Suppliers by 2023 market share (Total market USD ~1.39bn; OMDIA) #2 in LED #1 in Light Sensors #1 in Traditional Auto Lamps Bulb Suppliers by 2024(E) market shares (Total market USD ~1.3bn; own market model due to lack of external research) 1. ams OSRAM 2. Lumileds 3. Others (incl. Asian suppliers) 11 Sources: TrendForce 2024 LED Player Revenue and Capacity 4Q24, OMDIA 3Q24 + own assumptions
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12 12 FY 2024 – continued design-win traction underpinning structural growth model Colored ambient lighting – iRGB / RGB (Automotive) triple digit m€ m€ LTV* in FY24 High Pixelated Forward Lighting (EVIYOS®) (Automotive) triple digit m€ Q4 design-wins >1 bn EUR, across the board, strong traction with automotive in China ~5 bn € LTV* Tileable CT scanning sensors (Medical) triple digit m€ LIDAR (Automotive) triple digit m€ (to date) Classic LED forward lighting (Automotive) triple digit m€ Classic signaling (Automotive) triple digit m€ Senlor ICs (Industrial) triple digit m€ Display Management (Consumer) triple digit m€ Camera Enhancement (Consumer) triple digit m€ Augmented reality (Consumer) double digit m€ dToF Sensors (Industrial) double digit m€ Professional lighting (Industrial) triple digit m€ Horticulture (Industrial) triple digit m€ Temp & Position Sensors (Automotive) triple digit m€ Driver & occupancy monitoring (Automotive) triple digit m€ (to date) *Design-wins in 2024: estimated project life-time value
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13 ‘Re-establish the Base’ implementation ahead of schedule Run-rate savings of EUR ~110m reached by end of FY24 – upsized total target EUR ~225m by end-of-2026 0 50 100 150 200 250 End-24 End-25 End-26 Run-rate savings at end of period vs. 2023 reference1) in EURm ~110 target-line ~75 ~150 ~225 Portfolio - Non-core portfolio exited Upsizing and extension of RtB in Q3/24: - Further efficiency & savings measures initiated to be effective by End-of-2026 - In total, approx. EUR 225m of run-rate savings targeted by End-of-2026 => All measures detailed out to reach target Q4/26 Note: No 100% fall-through to bottom line (2023 ref.) due to price decline & general cost increases (inflation, factor price changes, etc..) Monetizing Innovation - New products ramped Set-up & Infrastructure - New set-up working Implementation status End-24: Refinancing (2023) - completed
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14 14 ams OSRAM wins the German Future Award 2024 ams OSRAM ideally positioned for emerging pixelated headlight market 25k pixel ‘digital headlight’ EVIYOSTM − ~ EUR 0.5bn LTV* design wins to date − Continued ramp ensures ams OSRAM average BOM growth ams OSRAM wins the German Future Award 2024 Innovation − Micro-projectors − Transparent displays − Optical data communication links Awarded Technology – Microscopic LED pixel – Structured interconnect layer – Driver circuit – Thin conversion layer *cumulated, estimated project life-time values Realized application Potential applications
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15 15 Well diversified revenue streams by end market, region and healthy customer split Strong exposure to structural growth markets, strong regional presence and very balanced customer portfolio I&M = Industrial & Medical End market split (FY 2024) 52% 25% 23% Automotive Consumer I&M 15 Revenues by region (FY 2024) Americas EMEA 50% 29% 21% APAC Top customers split (FY 2024) Other customers Top 4-10 customers 21% 12% 67% Top 3 customers Total: more than 10k customers
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16 Summary Q4 & FY2024 Q4: - revenue and profitability above mid-point of the guidance - FCF1) positive FY24: - FCF1) positive with EUR 12m - FY24 growth in the core semi-conductor portfolio of approx. 7%, driven by ramp of new consumer products - FY24 reported revenues -5% due to L&S de-consolidation and non- core semi-portfolio decline - FY24 profitability with 16.8% adj. EBITDA margin flat yoy - Roughly EUR 5bn LTV of new business secured by new design-wins - RtB2) savings ahead of schedule with EUR 110m end-2024, non- core semi portfolio mostly exited Highlights 1) FCF including net interest paid 2) RtB: ‘Re-establish the Base‘ strategic efficiency program, launched July 2023
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17 Business outlook − Revenue EUR 750m – 850m − Adj. EBITDA 16% +/- 1.5% − Based on assumption EUR/USD 1.05 Q1 2025 Guidance FY 2025 comments − Revenues: 2nd half-year much stronger than 1st half-year due to product ramps and some market normalization − Profitability: improving compared to FY24 with 'Re-establish the Base' run-rate savings showing stronger effect even in moderate revenue development − CAPEX: less than 8% of sales − FCF (incl. net interest paid) more than EUR 100m positive low double digit % increase H2/25H1/25 Ramp of new designs / projects: Seasonal & small cyclical uptick mobile phone sensors automotive FWL lasers for industrial further projects BtB improving in Q1/25
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18 18 Sense the power of light Semiconductors: Automotive Growth Drivers
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19 19 #1 in Automotive Visible Emitters #1 in Automotive Light Sensors 1. ams OSRAM 2. Elmos 3. Vishay 4. Melexis 5. Hamamatsu 6. Rohm 34% 21% 15% 6% 4% 1% Auto Light Sensor suppliers by 2023 market share (Total market USD ~80m; OMDIA) 1. ams OSRAM 2. Nichia 3. Lumileds 4. Seoul Semiconductor 5. Dominant 6. Samsung LED 7. Stanley 8. Everlight 9. Jufei 10. Lextar 33% 23% 10% 8% 7% 6% 3% 2% 2% 1% Auto LED suppliers by 2024(E) market share (Total market USD ~3.5bn; TrendForce) Offering full technology range and innovation leadership in automotive emitters and light sensors Leading Positions in Automotive Semiconductor Sub-Segments Sources: TrendForce 2023 LED Player Revenue and Capacity 4Q24, OMDIA Light Sensor Report 2024; OMDIA Competitive Landscaping Tool 1Q23 #16 in Automotive Semiconductors Automotive semiconductor suppliers by 2022 market share (Total market USD ~64bn; OMDIA) 1. NXP 2. Infineon 3. STMicro … 15. Toshiba 16. ams OSRAM 17. Melexis 18. Sanken 19. Fuji Electric 20. Nichia 11% 11% 8% … 1.5% 1.5% 1.2% 1.1% 1.0% 0.9%
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20 20 Exterior Sensing (LiDAR) ams OSRAM automotive content growth Driven by safety, convenience and digitalization Dynamic signaling Ambient lighting Optical Sensing • Ambient Light Sensing • Rain, light & tunnel sensing • Touchless trunk opener In Cabin Sensing Position & Angle Sensing Display Backlighting Static forward lighting Static signaling Functional illumination Dynamic forward lighting Head Up Display / Projection Sensing Illumination / Visualization Smart Surface Battery management BOM3) 2024 (SAM) BOM3) 2029 (SAM) ~25€ ~15€ ~20€ ~40€ ~40€1) ~60€ Automotive Semicon Market2) Memory Sensors LED Processors/ Logic Power/Analog/ Discretes 6.5% 43.5% 13% 26.1% average € across all vehicle classes 20 10.9% 1) Premium cars >50€ already today 2) Source: Yole Overview of the Semiconductor Devices Industry 2024, assuming similar split between LED and Sensors like in the previous Yole Study 2023. 3) BOM growth includes car unit growth (IHS), content growth (take rates / technology penetration) and considers ASP
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21 21 Sense the power of light Semiconductors: Opportunities & growth drivers in Medical & Industrial
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22 22 Addressing industrial / medical applications with key to system performance Leveraging differentiated technology base into multi niches where we are key for the system performance Selected applications Structural growth drivers Typical ams OSRAM BoM potential Medical Imaging & Diagnostics − Aging population − Lower radiation dosage − Higher specificity − Health programs ~ 25 – several ten k € (from image sensor to module for high end CT scanner) Horticulture & Smart Farming − HPS lamp replacement − Focus on near-shoring and freshness − Yield improvement through optimized illumination − Project business: subject to energy & financing cost ~100 – 200 € per luminaire* Robotics − Automation, productivity − Contextual awareness and obstacle detection − Human machine interface ~20+ € Home & Building Automation & Smart Appliances − Intelligent / compact presence & ALS sensing − Multi-parameter smoke detection − Smart surfaces ~1 – 5 € (upside with Aliyos or Eviyos) LED & laser projection − Home entertainment, lifestyle − Replacement of traditional lamps − Trickle-down from premium to mid-range ~5 – 80 € (from consumer to high power projectors) Outdoor / Industrial lighting − Urbanization − HID replacement ~5 – 50 € per luminaire* (from small LED street luminaire to high power stadium light) UV-C disinfection − Growth opportunity starting 2026 − Regulation & traditional lamp replacement once LEDs reach step by step >10% to >20% WPE ~20 – 2,500 € (from consumer device to industry scale water reactor disinfection) 22 *fixture combining light source with reflector, lens elements, etc.
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23 23 Professional lighting – best light performance tailored to the application ams OSRAM works with most the top players with focus on Professional Lighting 6 out of the 8 top professional lighting (PL) players trust ams OSRAM Customers value of ams OSRAM products High efficacy focused on lm/W Reliability and extreme long lifetime High light quality for high end luminaire design IndoorOutdoor 1) Source: CSIL Lighting World Market Outlook November 2023 537 576 699 925 1,281 1,521 3,658 5,145 Estimated sales of lighting fixtures (2022)1) USDm PL Player 1 PL Player 2 PL Player 3 PL Player 4 PL Player 5 PL Player 6 PL Player 7 PL Player 8
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24 24 ams OSRAM with key portfolio to benefit from nascent robotics megatrend Best-in-class portfolio for making machines smarter, more autonomous and more effective in HMI Global Shutter: Mira NanEye Single-zone dToF TMF880X Battery Management Analog Front-End: AS8510 NIR emitter + sensor Capacitive sensor AS8579 Angular: AS5047D Linear: e.g. AS5510 AS734x Color sensors TCS3530 Customizable multi-lenses array OSLON Black/ P1616 Household Robots & Drones need to reliably determine their environment and position and have easy human-machine interfaces with clear signaling capabilities. SFH4253 + SFH5721 ALS/Flicker sensors TLS25xx BIDOS Family Multi-zone dToF TMF882x Low / Mid / High Power: SYNIOS S 2222 OSLON SIGNAL
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25 25 Example of leading position in niche – medical imaging CT scan sensors/ICs 8 out of 10 OEMs employ ams OSRAM products – solid revenue growth 2x market growth projected Top 10 CT Players ams OSRAM Customer Engagement (Source: Yole) 2022 2026 ~8.7k ~10.9k CT scan detectors (units) ams OSRAM 64-Slice CT Detector Module Generation of 3D images based on X-ray properties #1 CT Player #2 CT Player #3 CT Player #4 CT Player #5 CT Player #6 CT Player #7 CT Player #8 CT Player #9 CT Player #10 CT Player engaged no engagement Sources: Yole Intelligence, Digital X-Ray Imaging 2022 volumes
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26 26 Sense the power of light Semiconductors: Opportunities & growth drivers in Consumer portable devices
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27 27 Flicker Detection Elimination of artificial light modulation bands Spectral Ambient Light Sensing Auto White Balancing to improve contrast & low light performance. Light source identification (TL, LED, sun) for better colors. Multi-zone for segmented analysis. Display Proximity sensing Intensity or ToF-based sensors for touch display on/off. AR Support Social media (SnapChat, TikTok), room scanning, navigation, gaming, E- Commerce ams OSRAM’s display management and camera enhancement are leading Our technologies and products are relevant or key for system performance Depth Sensing for Auto Focus & Bokeh Single and Multi-zone dToF-based depth sensing for depth-of-field effects and sharp images, also in low light situations 27 Household Robots & Drones Reliable position sensing and easy human-machine interfaces with clear signaling capabilities
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28 28 ams OSRAM’s spectral ambient light sensing makes the difference ams OSRAM sensors enable superior camera performance in almost all premium smartphones TMF882x Mutizone dToF Camera Enhancement: Light, Color, Flicker & Range sensors TSL2585 ALS/UV/Flicker TCS3410 RGB/Flicker source: https://www.dxomark.com/smartphones/ Autofocus: “Fast and accurate autofocus, even in challenging light conditions”* AWB & Flicker: “Excellent for photographing family and friends, thanks to accurate skin tones and high details”* Winning combination: Spectral + ALS 1. Huawei P70 Ultra 2. Honor Magic6 Pro 3. Huawei Mate 60 Pro+ Oppo Find X7 Ultra 5. Huawei P60 Pro 6. Apple iPhone 15 Pro Max Apple iPhone 15 Pro 8. Google Pixel 8 Pro Oppo Find X6 Pro 10. Honor Magic5 Pro 163 158 157 157 156 154 154 153 153 152 Camera score Top Smartphones by Camera score Smartphone Model Apr 2024 Feb 2024 Sep 2023 Mar 2024 Mar 2023 Sep 2023 Sep 2023 Oct 2023 Mar 2023 Feb 2023 Launch Date *DXOMARK July 2024, ALS denotes Ambient Light Sensor
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29 29 Sense the power of light Lamps & Systems: Lamps for Automotive, Industrial and Entertainment
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30 30 Strong and stable profit contributor with excellent position in lamps business AMSP is covering automotive, entertainment and industry applications Automotive Entertainment and Industry Traditional lamps LED & Laser modules (e.g. XLS) Fixtures & car accessories Automotive Aftermarket (AFTM) Automotive OEM Entertainment & Industry lamps Automotive lamps End market split in L&S ~20% ~80% − Large installed base globally − Expanding our leading market position softens slowly declining market volume − LEDr and XLS with positive market growth in declining lamps business − New opportunities beyond lamps with fixtures & car accessories using our strong brand and channel position. 30 Semiconductors Entertainment Cinema Medical LED replacement lamps
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31 31 Sense the power of light ESG commitments
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3232 ESG achievements − Ongoing implementation of a comprehensive group climate strategy, aligning our actions with global climate goals. − Annual sustainability reporting, demonstrating our commitment to transparency and accountability (GRI compliant) − Comprehensive reporting of CO2 emissions, including our own activities (Scope 1 + 2) and significant progress in reporting emissions along the value chain (Scope 3). − ESG Committee, driving our sustainability efforts and ensuring focused decision-making. − Sustainability Policy and internal Sustainability Guideline in place, guiding our actions towards a more sustainable future. − All production sites exceeding a defined threshold are certified to ISO 14001. − Cyber Security ISO 27001 certification − High rankings in ESG ratings. ESG goal: Carbon neutrality by 2030 − Group to be carbon neutral (Scope 1+2) by 2030, endeavor towards net zero ambition − “Operations Sustainability Program” for semiconductor production sites − Reduction of energy consumption and emissions at our own sites by 20% through efficiency measures − Conversion of electricity supply to 100% renewable energy − Self-generated electricity, solar energy production at sites e.g. in Austria, China, Slovakia and Germany − 100% green electricity at production sites in Germany + Austria − Strategy based on principle "avoid, reduce, compensate“, reduction path developed − Reducing emissions via energy efficiency measures at several locations, plan established to compensate for inevitable CO 2 emissions Creating sustainable value and improving lives with innovative light and sensor solutions ESG update: Climate strategy, carbon neutrality goal, ESG Committee
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33 33 ESG ratings: Our committment to sustainability pays off Improvement of ecovadis and confirmation of the Group’s ESG performance by S&P and ISS CDP B (Management) Climate Change (improvement from C) ecovadis Platinum Improvement from gold to platinum among the top 1% of companies assessed by EcoVadis SUSTAINALYTICS 18.7 (low risk) 70.4 (strong management) ESG Risk Rating improvement +11%; ESG Risk Management +7% ISS Score B- (PRIME) Keep strong prime status MSCI BBB Average managing the most significant ESG risks and opportunities S&P Global CSA Score 68 (out of 100) Positioning in 1 st Quartile CSA Score date: 17/10/2024 Rating CommentInstitution
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34 34 Sense the power of light Additional Details of Selected Financials
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35 35 Lamps & Systems: strong aftermarket in Q4, continued weakness in industrial All figures in EURm / % of revenues 37 51 30 28 41 13.2% 19.2% 13.6% 12.2% 14.9% − QoQ: strong increase due to typical aftermarket season − YoY: slight decline due to discontinued OEM module business EBIT, EBIT margin (adj.)1) +46% +11% Q4/23 Q2/24 Q4/24Q3/24Q1/24 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses EBITDA, EBITDA margin (adj.)1)L&S revenues − QoQ: adj. EBITDA increase due to seasonal revenue pick-up from aftermarket business − YoY: in Q4/23 negative special one-time effect from raw-materials re-valuation topic. 279 268 223 233 275 +18% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 -1% +4% Q3/24Q4/23 Q2/24 +35% Q4/24Q1/24 48 60 39 37 50 17.4% 22.5% 17.6% 16.0% 18.2%
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36 36 OS: automotive stable, I&M very weak, adj. EBITDA in line w/ fall-through - QoQ: Seasonal decline in horticulture, automotive stable due to backlog orders, industrial mass-market still very weak. - YoY: cyclical weakness in automotive against the backdrop of all-time- high revenues in automotive in Q4/23 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses - QoQ: decrease in line with revenue fall-through and normalized, recurring non-refundable engineering payments (Q3/24 had higher engineering payments due to catch-up effect) - YoY: decrease in line with fall through from reduced factory loading and higher raw material prices compared to a year ago All figures in EURm / % of revenues -26% EBITDA, EBITDA margin (adj.)1) Q3/24Q4/23 Q2/24 -42% Q4/24Q1/24 365 345 372 381 350 -8% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 OS revenues -4% 69 67 84 88 51 19.0% 19.3% 22.7% 23.1% 14.6%
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37 37 CSA: solid performance in consumer & ramp of sensors in automotive - QoQ: slight seasonal decline in portable consumer devices, persistent weakness in I&M applications - YoY: increase in consumer sensor products did not fully compensate decline in I&M revenues 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses - QoQ: increase due to 'Re-establish the Base' savings and a positive one-time effect despite seasonally lower revenues - YoY: increase due to 'Re-establish the Base' cost base improvements and higher loading in consumer products All figures in EURm / % of revenues +38% EBITDA, EBITDA margin (adj.)1) Q3/24Q4/23 Q2/24 +15% Q4/24Q1/24 262 233 224 266 258 -3% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 CSA revenues -2% 40 5 21 48 55 15.3% 2.2% 9.4% 17.9% 21.3%
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38 38 198 197 187 180 179 21.8% 23.3% 22.8% 20.4% 20.3% 115 93 95 99 106 12.7% 11.0% 11.6% 11.2% 12.0% Group: adj. R&D significantly reduced due to NRE payments in OS segment All figures in EURm / % of revenues − Adj. gross profit: QoQ decline due to multiple effects e.g. product mix, provisions; YoY decline due to product mix, lower volume, FX and raw materials − Adj. R&D expenses: temporary drop due to customer engineering payments payments for joint technology development − Adj. SG&A expenses: quarterly increase due to ’lighting season’ marcom expenses in L&S segment 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses 92 114 100 82 74 10.1% 13.5% 12.2% 9.3% 8.4% R&D expenses (adj.)1) 260 241 243 262 239 28.7% 28.4% 29.7% 29.7% 27.1% Gross profit (adj.)1) -9% -8% -10% -20% SG&A expenses (adj.)1) OPEX (adj.)1) -1% -10% Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Q1/24 Q2/24 Q3/24Q4/24Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 +7% -8%
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39 39 Group adj. Depreciation & Amortization and adj. EBITDA All figures in EURm 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses 150 124 135 166 150 EBITDA (adj.)1) Q1/24 Q2/24 Q3/24 Q4/24Q4/23 87 80 79 84 90 D&A (adj.)1) Q1/24 Q2/24 Q3/24 Q4/24Q4/23 +0% -10%+3% +7%
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40 40 2025 57 150 3 Reconciliation from EBITDA IFRS reported to EBITDA adjusted figures Q4 2024, All figures in EURm − EBITDA Adj. best reflects underlying profitability of business and overall group development − Transformation costs: mostly from implementing 'Re-establish the Base'. − microLED: net positive impact e.g. lower equipment cancellation fees. microLEDTransformation costs Share-based compensation costs M&A-related costs EBITDA Adj . 130 EBITDA IFRS Result from the sale of businesses 1 Result from Equity Investments
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41 41 1930 0.3 7 56 5 60 0 3 Q4 2024, All figures in EURm − EBIT Adj. best reflects underlying profitability of business and overall group development − Transformation costs: mostly from implementing 'Re-establish the Base'. − microLED: net positive impact e.g. lower equipment cancellation fees. − Asset restructuring: Historic M&A transactions (e.g. OSRAM) result in significant purchase price allocation expenses (non-cash, resulting in D&A), heavily impacting EBIT IFRS. EBIT IFRS Asset restructuring Result from the sale of businesses Transformation costs microLED Share-based compensation costs M&A-related costs EBIT Adj.Result from Equity Investments Reconciliation from EBIT IFRS reported to EBIT adjusted figures
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42 42 -222 -120 -176 -102 -104 24.4% 14.1% 21.5% 11.4% 11.8% Free Cash Flow positive in Q4 All figures in EURm / % of revenues 34 55 55 246 79 3.8% 6.4% 6.7% 27.9% 9.0% Cash Flow related to Capex 1) Free Cashflow (FCF) defined as Operating CF (incl. net interest paid) – Capex + proceeds from divestments − Operating CF: strong underlying adj. EBITDA despite seasonality (in Q3/24, EUR >200m customer prepayment) − CAPEX: significant overhang from microLED equipment that could not be cancelled (EUR >40m) − Inflow from divestments: overhang equipment from microLED project that was sold Operating Cash Flow (OCF) (including net interest paid) Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Inflow from Divestments -125 -60 -119 188 2 Free Cash Flow (FCF)1) incl. divestments, incl. net interest paid Q1/24 Q2/24 Q3/24 Q4/24Q4/23 63 5 2 45 27 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 2 2
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43 43 426 392 11.9% 11.4% ‘RtB’ reduces OPEX by -10%, keeps Gross Margin stable against headwinds All figures in EURm / % of revenues − Adj. gross profit/margin: small gross profit reduction mainly due to de-consolidation effects (L&S), ‘Re-establish the Base’ (RtB) savings keep GM stable − Adj. R&D expenses: reduction by -9% yoy based on RtB savings and adjustment of microLED strategy − Adj. SG&A expenses: reduction by -8% yoy based on RtB savings 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses 408 370 11.4% 10.8% R&D expenses (adj.)1) 1,031 984 28.7% 28.7% Gross profit (adj.)1) -5% -9% SG&A expenses (adj.)1) FY24FY23 FY24FY23 FY24FY23 -8%
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44 44 -0.34 -0.35 -0.01 0.37 0.03 Adj. net result / adj. EPS dropped quarter over quarter while remaining positive All figures in EURm / EUR per share − Net financing driven by net interest expenses (interest expenses plus interest received) and an option valuation gain − Weighted average number of shares outstanding during Q4/24: 98,924,792 considering the reverse split registered 24 September 2024 with new shares trading on 30 September 2024 2) Earnings per share for the comparative periods were adjusted following the reverse share split on 30 September 2024 -1.79 -7.19 -0.42 0.24 -0.59 EPS diluted IFRS 2) -16 -35 -1 37 3 Net results (adj.)1) -82 -710 -41 24 -58 Net results IFRS Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 EPS diluted (adj.)1) 2) Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 CHF -6.82 -0.41 0.23 -0.55-1.70 -80 -57 -55 -35 -58 Net financing result Q1/24 Q2/24 Q3/24 Q4/24Q4/23 Q1/24 Q2/24 Q3/24 Q4/24Q4/23 -0.34 -0.01 0.35 0.02-0.33CHF 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses
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45 45 1.61 0.03 FY24 - adj. net result reduced yoy, IFRS net result improved but not yet positive All figures in EURm / EUR per share 2) earnings per share for the comparative periods were adjusted following the reverse share split on 30 September 2024 -52.00 -7.94 EPS diluted IFRS 2) 50 3 Net result (adj.)1) -1,613 -785 Net result IFRSEPS diluted (adj.)1) 2) CHF -49.40 -7.56 0.031.53CHF 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses FY23 FY24FY23 FY24 FY23 FY24 FY23 FY24 − Adj. net result impacted by higher interest cost after re-financing in 2023 and higher income tax − Adj EPS FY23: number of shares increased from 274m to 998m on 7 Dec 2023. With reverse split on 24 Sep 2024, the number of shares is 99.8m. − FY23: negative net result driven by 1.3bn impairment charges on goodwill. − FY24: net result improved, but still negative mainly due to change of microLED strategy incurring impairments and transformation cost of together EUR 576m and EUR 100m of additional other transformation cost
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46 46 Working Capital All figures in EURm 613 665 605 730 833 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 +36% +14% Working Capital 716 752 814 843 809 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 +13% -4% Inventories 470 511 357 392 496 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 +5% +27% Trade Receivables 572 598 566 505 472 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 -18% -7% Trade Payables
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47 47 Strong available liquidity and balanced maturity profile with diversified funding mix Current capitalization €m, IFRS values as of December 2023 Notes: 1. Amounts reflect carrying amounts / book values. For 2025CB - Nominal Amount: EUR 447.4m (formerly EUR 600m; reduced by 2 buybacks in the meantime) / Book Value under Debt (IFRS per December 2024): EUR 445m. For 2027CB - Nominal Amount: EUR 760m / Book Value under Debt (IFRS per December 2024): EUR 691m 2. Includes R&D loans, Bank Facilities and Promissory Notes 3. Includes cash, RCF, bilateral bank facilities; does not include additionally available, significant factoring lines €m, repayment amounts as of December 2024 Current debt maturity profile IFRS book values December 2024 EUR million Cash (1,098) Other Financial Debt 1), 2) 176 2025 EUR Convertible Bond (0.00%)1) 445 2027 EUR Convertible Bond (2.125%)1) 691 2029 EUR Senior Unsecured Note (10.50%)1) 820 2029 USD Senior Unsecured Note (12.25%)1) 379 SLB Malaysia transaction 1) 441 Total debt 2,952 Total net debt 1,854 Outstanding OSRAM Licht AG – Put Options 585 Available Liquidity 3) 1,764 €m, IFRS values as of December 2024 10 760 825 447 100 385 560 26 1.210 586 2025 2026 2027 2028 2029 2030 2031 2032 2033 40 487 110 SSD / Promissory Notes Bank Facilities 2025 EUR CB (0.00%) 2027 EUR CB (2.125%) 2029 EUR HYB (10.50%) 2029 USD HYB (12.25%) SLB Malaysia (6.00%)
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48 48 Cash and debt1) overview – almost unchanged in Q4 2024 All figures in EURm Q2 2024 Q3 2024 Q4 2024 Gross debt Cash Net debt Q4 2023 SLB liability 1) Excluding microLED strategy adaption expenses, M&A-related, other transformation and share-based compensation costs as well as results from investments in associates and sale of businesses 2) Malaysia SLB Transaction (closed in Dec-23) shown under the B/S item “other liability” acc. to IFRS Q1 2024 2,475 1,076 394 1,399 1,854 2,458 1,146 384 1,312 1,696 − QoQ: flat cash position at EUR 1.1bn − QoQ: Debt balance almost unchanged following successful refinancing of maturing bank loans − QoQ: SLB liability unchanged (capitalized accrued interest compensated by FX effects in EUR/MYR) 1,413 2,511 1,098 441 1,793 1,977 1,576 2,476 900 401 1,840 1,399 2,496 1,097 441
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49 49 ams OSRAM Investor Relations 49 Investor Relations contact Juliana Baron Senior Director Investor Relations juliana.baron@ams-osram.com + 49 89 6213-0 Dr. Jürgen Rebel SVP & Head of Investor Relations juergen.rebel@ams-osram.com + 43 3136 500-0 Upcoming events February 12-13, 2025 Non-Deal Roadshow London February 14, 2025 Non-Deal Roadshow Zurich February 24-28, 2025 US Roadshow NYC, Boston, Chicago March 6-7, 2025 Oddo BHF TMT Virtual Conference March 25-26, 2025 Jefferies EU Midcap Conference London April 7-9, 2025 Oddo BHF / RB Conference Zurich Premstaetten Office + 43 3136 500-0 Internet https://ams-osram.com/about-us/investor-relations Email investor@ams-osram.com Vanessa Li Principal Specialist Investor Relations vanessa.li@ams-osram.com + 49 89 6213-0