35
www.osram-licht.ag Roadshow Presentation OSRAM delivers on profitability targets, OSRAM Licht AG January 2015 dividend proposed for the first time

OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

  • Upload
    others

  • View
    6

  • Download
    0

Embed Size (px)

Citation preview

Page 1: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

www.osram-licht.ag

Roadshow Presentation

OSRAM delivers on profitability targets,

OSRAM Licht AGJanuary 2015

dividend proposed for the first time

Page 2: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Safe Harbor Statement

This presentation may contain forward-looking statements that are subject to risks and uncertainties,including those pertaining to the anticipated benefits to be realized from the proposals describedherein. Forward-looking statements may include, in particular, statements about future events, futurefinancial performance, plans, strategies, expectations, prospects, competitive environment,regulation and supply and demand. OSRAM Licht AG has based these forward-looking statementson its views and assumptions with respect to future events and financial performance. Actualfinancial performance could differ materially from that projected in the forward-looking statementsdue to the inherent uncertainty of estimates, forecasts and projections, and financial performance

Roadshow Presentation (preliminary, unaudited figures) | January 201522

due to the inherent uncertainty of estimates, forecasts and projections, and financial performancemay be better or worse than anticipated. Given these uncertainties, readers should not put unduereliance on any forward-looking statements. The information contained in this presentation is subjectto change without notice and OSRAM Licht AG does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extentrequired by applicable laws and regulations.

Due to rounding, numbers presented throughout this and other documents may not add up preciselyto the totals provided and percentages may not precisely reflect the absolute figures.

Page 3: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

OSRAM: THE global lighting brand

Only global lighting pure play

World class portfolio of lighting products and solutions

From "Analogue" to "Digital"

Lighting market set for growth

Integrated lighting expert with trusted brand,

Roadshow Presentation (preliminary, unaudited figures) | January 20153

Strong technology focus

Well positionedIntegrated lighting expert with trusted brand, excellent channel access and technology leadership

Structures, processes, product pipeline and technology in place

Committed managementDiverse, entrepreneurial, motivated and incentivized management team

3

Page 4: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Revenue by Segment 1) FY14

Revenue by Region 2) FY14

OSRAM is the largest, pure play global lighting com pany

Opto Semiconductorscomp. 12% nom. 10%

Specialty Lightingcomp. 10% nom. 7%

Classic Lamps & Ballastscomp. (10)% nom. (15)%

Luminaires & Solutionscomp. (14)% nom. (16)%

OSRAM is the clear global #2 lighting player 4)

LED Lamps & Systemscomp. 57% nom. 53%

20%

28%

35%

8%9%

Customer reach across all channels 3)

9%

13%

40%*8%*

30%*

AFTM 3)

Retail

Trade

Electronic distributors

OEM

*Professional lighting: 78%

Roadshow Presentation (preliminary, unaudited figures) | January 20154

Revenue by Region 2) FY14

32%

~34kemployees 6)

8.7% adj. EBITA Margin

36% LED share5) 6.4% R&D of sales

€5.1bn sales

1) Based on sum of segments’ revenue, without considering corporate items and consolidation 2) Based on location of customers3) Excluding the supply to competitors and to the other Business Units; as of FY12 4) OSRAM estimate based on company publications 5) As % of sales6) FTEs as of 30.09.2014 Source: OSRAM data

APAC

Americas

EMEA44%

OSRAM is the clear global #2 lighting player 4)

41%35% EMEA

APAC

2nd

3rd

Americas2ndcomp. 2% nom. 0%

comp. (2)% nom. (7)%

comp. 2% nom. (2)%

24%

FY14

Page 5: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Segment overview

Specialty Lighting (SP)

OptoSemiconductors (OS)

Luminaires and Solutions (LS)

Classic Lamps and Ballasts (CLB)

LED Lamps and Systems (LLS)

Roadshow Presentation (preliminary, unaudited figures) | January 20155

− Automotive (forward, rear, signal & interior lighting)

− Display / Optic (e.g. special lamps for medicine, industry, entertainment and projection)

− OLED

− LED (e.g. General lighting, automotive headlamps and mobile flashes)

− Infrared emitters, detectors, sensors and power lasers (e.g. for mobile phones, CCTV, automotive safety)

− Lasers

− Luminaires for professional applications

− Light management systems

− Dynamic lighting (e.g. architectural lighting)

− Lighting solutions & projects

− Thermal lamps (Halogen and Incandescent lamps)

− Energy saving lamps

− Low-pressure discharge lamps

− High-pressure discharge lamps

− Electronic control gears

− LED retrofit lamps

− Light engines

− Drivers

Page 6: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

LED Lamps and Systems (LLS)

Focus areas: Key financial figures• LED based lamps, light engines and

drivers

• LED share: 100%

Values in € mn FY13 FY14

Total revenue 298 454

Adj. EBITA Margin

(95) (31.9)%

(84)(18.5)%

CAPEX 7 24

Free Cash Flow (98) (161)

Roadshow Presentation (preliminary, unaudited figures) | January 20156

Segment highlights: Quarterly development• Continued strong growth• Further investment in drivers and light

engines

• Technological change towards LED based products

• Global mega trends, e.g. digitalization of light

Key topics67

78 69

8495

105 110144

(34.6%)(27.7%)

(38.5%)

(28.4%)

(25.7%)

(13.5%)

(20.3%)(16.0%)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly sales [EUR mn] Adj. EBITA margin [%]

FY13 FY14

Page 7: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Classic Lamps and Ballasts (CLB)

Focus areas: Key financial figures• Halogen-, Compact

Fluorescent-, Low Pressure Discharge-, High Pressure Discharge – Lamps, Electronic Control Gears

• LED share: 0%

Values in € mn FY13 FY14

Total revenue 2,302 1,963

Adj. EBITA Margin

222 9.6%

1728.7%

CAPEX 80 54

Free Cash Flow 139 163

Roadshow Presentation (preliminary, unaudited figures) | January 20157

Segment highlights:• Positive Free Cash Flow• Stable pricing environment• Successful management of market transition to LED• Strong growth of Halogen in the US

Key topics

627 590535

549548

511431

472

8.7%

11.9%10.4%

7.6%

12.3%

9.0%

6.1% 6.7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly sales [EUR mn] Adj. EBITA margin [%]

Quarterly development

FY13 FY14

• Successful ramp down of business, continuous focus on complexity reduction and pricing discipline

• Continuous improvement in asset management • Pays for its own restructuring; delivers surplus cash

Page 8: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Luminaires and Solutions (LS)

Three focus areas: Key financial figures• Indoor-/Outdoor Luminaires for street-,

outdoor lighting and office buildings

• Integrated Soft- and Hardware portfolio with scalable solutions for i.e. architectural lighting

• Lighting performance and efficiency upgrade projects and solutions

Values in € mn FY13 FY14

Total revenue 561 469

Adj. EBITA Margin

(65) (11.5)%

(60)(12.8)%

CAPEX 10 10

Free Cash Flow -76 -81

Roadshow Presentation (preliminary, unaudited figures) | January 20158

Segment highlights: Quarterly development• Trough reached in Q2 FY14• Restructuring well progressed• Industry leading LED share

(Q4 FY14: 56%)• New, focussed and experienced

management driving business

• Focus on profitable core• Set for future profitable growth

Key topics

148128 131

155 135

101 110124

(9.1%)

(16.5%) (15.1%)

(6.7%)

(8.0%)

(24.7%)

(14.9%)

(6.7%)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly sales [EUR mn] Adj. EBITA margin [%]

FY13 FY14

Page 9: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Specialty Lighting (SP)

Focus areas: Key financial figures• Automotive (forward, rear, signal &

interior lighting)

• Display / Optic (special lamps for medicine, industry, entertainment and projection)

• OLED

Values in € mn FY13 FY14

Total revenue 1,456 1,551

Adj. EBITA Margin

246 16.9%

24615.9%

CAPEX 38 40

Free Cash Flow 242 204

Roadshow Presentation (preliminary, unaudited figures) | January 20159

Segment highlights: Quarterly development• No. 1 position in AM business• World's first supplier for automotive

laser light module• OSRAM XBO lamp in every 3rd cinema

• Outgrowing global automotive production• OLED to enter automotive market• More than 200 light sources per vehicle

Key topics

359369

359 369 376

393

378

404

19.9%16.3%

15.8% 15.5% 16.4% 16.3%

15.2% 15.5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly sales [EUR mn] Adj. EBITA margin [%]

FY13 FY14

Page 10: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Opto Semiconductors (OS)

Focus areas Key financial figures• LED e.g. for General lighting,

automotive headlamps and mobile flashes

• Infrared emitters, detectors, sensors and power lasers e.g. for mobile phones, CCTV, automotive safety

• Lasers

Values in € mn FY13 FY14

Total revenue 1,018 1,125

EBITA Margin

124 12.2%

19417.2%

CAPEX 63 98

Free Cash Flow 239 180

Roadshow Presentation (preliminary, unaudited figures) | January 201510

Segment highlights Quarterly development

• Global no. 2 LED manufacturer with >40 years of experience

• Highly diversified product portfolio• Excellent market access with long term

customer relationships• World class IP position and innovation

strength

Source: Audi

230 241279 268 270 270 286

299

9.8% 10.2%

13.5% 14.6%13.2%

19.2%19.8%

16.7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly sales [EUR mn] EBITA margin [%]

FY13 FY14

• Maintain strong market position• Investment in profitable growth

Key topics

Page 11: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

OSRAM Push Phase II ambition:Cumulative gross savings of €1.3bn (2015-2017)

200260 Transformation

Key characteristics Phase II

Key data until FY17:

Total gross savings: €1.3bnHeadcount1) reduction: ~7,800Exp. transformation costs2): ~€0.45bn

Transformation part includes…• increased restructuring in Germany

Gross savingsin €m

Roadshow Presentation (preliminary, unaudited figures) | January 201511

Operational

Push Phase II2015-2017

1,040

Push Phase I2012-2015

1,000• increased restructuring in Germany• higher share of indirect functions• aspiration to delayer and de-matrix

1) Full-time equivalent2) Including €29m already booked in FY14

Project progress

• Implementation of transformation measures as scheduled

• Negotiations with labor unions well progressed• Agreement of social plan for the transformation

measures in Germany signed in Q1FY15• Bulk of planned FY15 transformation costs booked

accordingly

Page 12: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Profitable growth

Achieve medium-term an EBITA margin of >8% as average over the cycle1)

ROCE clearly above WACC1)

1

2

3

Commitment to our investors

Roadshow Presentation (preliminary, unaudited figures) | January 201512

ROCE clearly above WACC1)

Competitive profitability profile in the lighting i ndustry

3

Clear defined Dividend Policy: 30-50% payout ratio of net income2)4

1) EBITA margin and ROCE for FY15 are expected to be lower than the respective targets due to high transformation costs.2) Based on IFRS Group Net Income, payout ratio will take into account exceptional non-cash effects within income.

Page 13: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Q4 FY14 Management Presentation

Roadshow Presentation (preliminary, unaudited figures) | January 20151313

Q4 FY14 Management Presentation(preliminary and unaudited)

Page 14: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

OSRAM delivers on profitability targetsSuccessful finish of OSRAM Push Phase IFurther increase of LED sales share Growth in more than half of the businesses

OSRAM strengthens technology leadershipAutomotive business extends market leadership

Group highlights FY14

Roadshow Presentation (preliminary, unaudited figures) | January 201514

Successful shift from 4’’ to 6’’ wafer at OSStable investments in R&D

OSRAM plans dividend for the first timeBoard proposes dividend of €0.90 per shareDividend proposal corresponds to payout ratio of 50%1)

OSRAM intends stable dividend for the fiscal year 2015

1) of net income post minorities

Page 15: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Segment highlights FY14Transformation pays off – majority of businesses are growing

Specialty Lighting (SP)Strengthened cost and technology leadership in AutomotiveExceeds global car production growth since 19 quarters Clay Paky acquisition strengthens growth area Display / Optics

Opto Semiconductors (OS)OS back to double digit growth rate in the fourth quarterNew factory in Wuxi builds basis for future growthProductivity improvements overcompensated price decreases

Roadshow Presentation (preliminary, unaudited figures) | January 201515

LED Lamps and Systems (LLS)Continued strong growthVery good development of drivers and light enginesBreak-even target LEDr lamps Q1 FY15 on track

Classic Lamps and Ballasts (CLB)Successful management of market change challengesFocus on pricing disciplineStrong growth of halogen in the US

Luminaires & Solutions (LS)2015 break-even target confirmedLuminaires with strong growth in LEDLeadership team strengthened

Page 16: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

OSRAM Push on track:Targets of Phase I accomplished – Phase II started

OSRAM Push Phase I execution track record

As of FY 14

Target Progress

Transformation costs (€m)(FY12 – 14)

599 ~600

Plant reductions11 11

����100%

����100%

Successful finish of OSRAM Push Phase I

Roadshow Presentation (preliminary, unaudited figures) | January 201516

Plant reductions(FY12 – 14)

11 11

Headcount reduction (‘000)(FY12 – 14)

8.7 8.7

OSRAM Push gross savings, cum. (€m)(FY13 – 15)

871 1,200

����

����

����

100%

100%

~400 €m in FY15

OSRAM Push Phase II started!

Page 17: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Modest revenue growth (comp.)LED continues to gain ground

Comments Q4 y-o-yRevenue development 1)

Quarterly revenue

Comp. growth (%)

Revenue(in €m)

Group (€m)

1,2031,2781,3261,332 1,335

(1)

1

4

12

� FY14 and Q4 FY14 revenue up by 1% comp.

� LED share at 39% (31% in prior year quarter)

� LLS boosts revenue (72% comp. y-o-y), decline of CLB at -13% comp. y-o-y

� OS and SP show continued strong performance, both on new quarterly revenue highs

� LS with industry-leading LED-share of 56%

Roadshow Presentation (preliminary, unaudited figures) | January 201517

Nom.Growth (%) (6) 0(2) (3)(3)

Q3FY14

Q2FY14

Q1FY14

Q4FY13

Q4FY14

Revenue by Region Q4Revenue by Segment 2) Q4

Americas33%

APAC25%

EMEA42%nom. 1%comp. 2%

nom. (4)%comp. (3)%

nom. 6%comp. 5%

Specialty Lightingcomp. 10% nom. 9%

28%

Opto Semiconductorscomp. 11% nom. 11% 21%

Luminaires & Solutionscomp. (20)% nom. (20)%

9%LED Lamps & Systemscomp. 72% nom. 72%

10%

Classic Lamps & Ballastscomp. (13)% nom. (14)%

33%

(1)� LS with industry-leading LED-share of 56%

� APAC with clear growth driven by SP; Americas only down due to exit of traditional maintenance business

1) nom. (nominal growth) / comp. (comparable growth), adjusted for FX and portfolio effects2) based on sum of Segments' revenue, w/o considering corp. items & consolidation

Page 18: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Adjusted EBITA margin with 8% on prior year level

EBITA development Comments Q4 y-o-y

Group (€m)

Adj. EBITAMargin1) (%)

� Gross margin increased on lower transformation costs

� Push measures and functional cost control mostly compensated negative mix effects and price decline

� EBITA includes transformation costs of €66m, with €29m attributable to OSRAM Push Phase II

6.4

8.5

6.7

2.7

8.69.3 9.1

8.08.1

Roadshow Presentation (preliminary, unaudited figures) | January 201518

2013 2014

Q4 FY Q1 Q2 Q3 Q4 FY

EBITA reported (24) 99 112 81 81 36 310

therein:

OSRAM Push transformation costsincl. personnel restructuring

(110) (300) (10) (34) (20) (66)(130)

Total Special items (133) (310) (11) (35) (23) (70)(139)

EBITAMargin (%)

Special items 1)

EBITA(€m)

36

8181

112

-24

Q3FY14

Q4FY14

Q2FY14

Q1FY14

Q4FY13

€29m attributable to OSRAM Push Phase II

� FY14 net income €193m translates into basic EPS of €1.80; dividend of €0.90 proposed

(1.8)

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Page 19: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Revenue and EBITA margin development Comments Q4 y-o -y

� Growth pace remains high (72% comp. y-o-y), driven by LED lamps and drivers

� Profitability improvements due to productivity and volume

� Margin held back by supply chain inefficiencies

� LED lamps spots reached break-even in Q4 FY14

� EBITA includes €5m special items

EBITAMargin (%)

144

(20.3)

(25.7)

(13.5)

(28.4)

(19.5)

(16.0)

LED Lamps & Systems (LLS): Continued y-o-y improvement

Adj. EBITAMargin1) (%)

Roadshow Presentation (preliminary, unaudited figures) | January 201519

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 2) Last twelve months

� EBITA includes €5m special items

Revenue(€m)

144

11010595

84

Comp.growth (%)

Nom.Growth (%)

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

68

3848 40

21 42 6035

LLS Gross Margin LTM 2) (adj.)72

72Q4

FY14

+370bps

Q3 FY14

Q2 FY14

Q1FY14

Q4 FY13

Q3 FY13

Q2FY13

Q1 FY13

Page 20: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Revenue and EBITA margin development Comments Q4 y-o-y

EBITAMargin (%)

Adj. EBITAMargin1) (%)

548549

3.5

11.9

3.6

6.1

9.0

(1.2)

7.6

12.3� LED transition leads to revenue reduction

(-13% comp. y-o-y); CLB value initiative supported again stable prices

� Again strong growth of HAL Classic business in Americas

� OSRAM Push measures and value initiative can mostly offset negative margin effects from volume decline; profitability also benefitted

6.7

(1.8)

Classic Lamps & Ballasts (CLB): Considerable cash generation

Roadshow Presentation (preliminary, unaudited figures) | January 201520

Special items 1)

Q4 FY13 FY 13 Q4 FY14 FY 14

EBITA reported (7) 42 (8) 90

therein:Total Special items

(48) (179) (40) (81)

472431

511548549

(11) (13) (19)

Q3FY14

Q4FY14

Q2FY14

Q1FY14

Q4FY13

(14)

(2)(8) (8)

(13)

volume decline; profitability also benefitted from functional cost control

� Free Cash Flow of €67m vs. €31m in prior year quarter

� Comprehensive asset management program started with focus on inventories

(13)

(14)

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Nom.Growth (%)

Revenue(€m)

Comp.growth (%)

Page 21: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Luminaires & Solutions (LS): Restructuring well progressed

EBITAMargin (%)

Adj. EBITAMargin1) (%)

155

(16.1)

(11.2)

(41.7)

(25.9)

(6.7) (8.0)

(14.9)

(24.7)

� Again sequential growth

� LED share at 56%, up from 34% in PYQ

� Significant revenue decline y-o-y (-20% comp.) mainly due to exit of traditional maintenance business and luminaire portfolio adjustments

� Continued profitability improvement with restructuring showing effect

(9.1)(6.7)

Revenue and EBITA margin development Comments Q4 y-o-y

Roadshow Presentation (preliminary, unaudited figures) | January 201521

Special items 1)

Q4 FY13 FY13 Q4 FY14 FY14

EBITA reported (65) (128) (11) (70)

therein:Total Special items

(54) (64) (3) (10)

124110

101

135155

(9) (21)1 (16)

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

(13)

4

(6)

(19)

restructuring showing effect

� LS businesses under common management to drive further synergies, profitability and growth

(20)

(20)

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Revenue(€m)

Comp.growth (%)

Nom.Growth (%)

Page 22: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Specialty Lighting (SP): Top line growth and profitability remain on high le vel

EBITAMargin (%)

Adj. EBITAMargin1) (%) 15.5 15.8

14.5

13.0

16.416.0 15.2

16.3

� Automotive business once more driver of revenue growth (10% nom. y-o-y) with growth in LED as well as traditional business

� Volume holds adjusted EBITA margin on prior year level despite mix effects including significantly increasing LED components sourced from OS

� Clay Paky to strengthen Display / Optics

14.715.5

Revenue and EBITA margin development Comments Q4 y-o-y

Roadshow Presentation (preliminary, unaudited figures) | January 201522

55 72

Q4 FY13 FY13 Q4 FY14 FY14

EBITA reported 48 219 60 237

therein:Total Special items

(9) (27) (3) (10)

Special items 1)

Margin (%)

404378393376369

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

� Clay Paky to strengthen Display / Optics business in FY15 (with ~€60m revenue and operational margin on SP level)

� OLED technology expected to enter automotive market; OLED reported within SP starting Q1 FY15

811 109 10

9

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Nom.Growth (%)

Revenue(€m)

Comp.growth (%)

Page 23: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Opto Semiconductors (OS): Back to double digit growth

EBITAMargin (%)

299

19.2

14.6

19.8 � Quarterly revenues reach new peak level with €299m benefitting from seasonality; again new revenue high

� Growth across all regions

� EBITA margin y-o-y on high level based on improved product mix and operational performance

13.2

16.7

Revenue and EBITA margin development Comments Q4 y-o-y

Roadshow Presentation (preliminary, unaudited figures) | January 201523

217 1210

299286

270270268

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

5

20

1413

11

11

Nom.Growth (%)

Revenue(€m)

Comp.growth (%)

Page 24: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Margin7.7%

Margin 6.0%

€438m Margin 8.7%

Reported EBITA burdened by transformation costs, Push more than compensates pricing pressure and mix

Roadshow Presentation (preliminary, unaudited figures) | January 201524

EBITA FY14 adjusted 1)

EBITA FY14 as reported

Cost Reduction Measures

(OSRAM Push)

Volume / Degression / Product

Mix / Others

InflationCustomer Price Change

EBITA FY13 adjusted 1)

EBITA FY13 as reported

Margin 1.9%

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Page 25: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Our global SG&A program drives competitiveness through lean structures

OSRAM SG&A Program

Lean HQs GSS & Process ExcellenceGI Sales Streamlining

• Secure future competitiveness for SSL• Lean organization & efficient processes• Sustainable structural improvements

Roadshow Presentation (preliminary, unaudited figures) | January 201525

Lean HQs

• Efficient HQ setup , increased flexibility

• Clear responsibilities BUs / service providers

GSS & Process Excellence

• Align business processes globally

• E2E-Process transformationto provide cost efficient & effective services for businesses

GI Sales Streamlining

• Optimize Sales functions & channels cross BUs and regions

• De-layer and de-matrix

+ additional €160m from footprint measures with an incremental profit upside in case of improv ed market outlook

Sustainably margin-accretive savings: €100m

Page 26: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Net Debt bridgeCapital Expenditure

ROCE and FCF FY14 targets achieved

Group (€m)

34 15

2729

1813

74

Q4 FY13

90

3 4

-13

Q4 FY14

77

8 5

Other

LS

LLS

CLB

OS

SP

Net Debt bridge

28 17

0113

Net

-3

∆ non-

487

-11

CAPEX Other

-77

Other ∆EBITDANet

420

Mainly

FCF €51m

Roadshow Presentation (preliminary, unaudited figures) | January 201526

1) Defined as revenue (last twelve months) divided by working capital

Capex as% of revenue 5.8

Group WC

Turns1)

Operating Working Capital

216284

FY14FY13

Q4 FY13 Q4 FY14Other

-677 -799

857853

968

Trade receivables

Trade payables

+66

Inventories

Q4 FY14

1,211

1,152

Q4 FY13

1,145

Free Cash Flow

6.7

Net Liquidity

Q4 FY14

current assets

and liabilities

Invest./ Fin.

activities

income / expense

NWCNet

LiquidityQ3

FY14

taxes paid

4.6 4.2

ROCE

1.9%

FY14

9.3%

FY13

Page 27: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Key financial metrics

Q4 FY13 Q4 FY14Change

(y-o-y) FY13 FY14

Change (y-o-y)

Revenue 1,332 1,335 Nom: 0%Comp: 1%

5,289 5,142Nom: (3)%Comp: 1%

Gross Margin 27.2% 28.9 % 170bps 28.2% 31.4% 320bps

R&D (86) (85) 1 (341) (331) 10

SG&A (315) (265) 50 (1,103) (985) 118

EBITDA 55 113 58 414 556 142

EBITA (24) 36 60 99 310 211

EBITA Margin (1.8)% 2.7% 450bps 1.9% 6.0% 410bps

Adj. EBITA 108 106 (2) 410 449 39

Adj. EBITA Margin 8.1% 8.0% (10)bps 7.7% 8.7% 100bps

Group (€m)

Roadshow Presentation (preliminary, unaudited figures) | January 201527

1) Pro forma

Adj. EBITA Margin 8.1% 8.0% (10)bps 7.7% 8.7% 100bps

Financial result(incl. at-equity results) (10) (13) (3) (22) (5) 17

Income before Taxes (44) 17 61 50 279 229

Taxes 16 (5) (21) (17) (86) (69)

Net Income (29) 12 41 34 193 159

Basic EPS (in €) (0.28)1)

0.10 0.38 0.26 1.80 1.54

Free Cash Flow 85 51 (34) 284 216 (68)

CAPEX (90) (77) 13 (207) (243) (36)

Employees (in thousands) 35 34 (1) 35 34 (1)

Net Debt (Liquidity) (172) (487) (315) (172) (487) (315)

Adj. Net Debt (Liquidity) / EBITDA 0.5 (0.1) 0.5 (0.1)

Equity Ratio 49% 51% 200bps 49% 51% 200bps

Page 28: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

For FY15 we expect revenue on FY14 level on a comparable basis1

Outlook 2015

2 We expect the adjusted1) EBITA margin to be at FY14 level

3 OSRAM Push Phase II in FY15 with gross savings of roughly €400m

Roadshow Presentation (preliminary, unaudited figures) | January 201528

4Biggest yearly share of transformation costs in FY15 will lead to a sharp decrease in net income and ROCE

5Free Cash Flow for FY15 expected to come in with a positive triple-digit €m amount, but below FY14 level

����Based on 2015 outlook and OSRAM’s midterm prospects we intend dividend continuity with €0.90 per share also for FY15

1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

Page 29: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Financial Calendar and Investor contacts

Upcoming events� January 13/14, 2015

Commerzbank Investment Seminar, New York

� February 4, 2015Preliminary figures 1st quarter FY 2015

� February 5, 2015Bankhaus Lampe – German Equity Forum, London

� February 6, 2015Roadshow, Paris

Roadshow Presentation (preliminary, unaudited figures) | January 201529

Investor Relations contact

Boris Tramm + 49 89 6213 4686

Munich Office + 49 89 6213 4875

Internet http://www.osram.com/ir

Email: [email protected]

Roadshow, Paris

Page 30: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Income statement

OSRAM Licht Group

Consolidated Statement of Income (preliminary)For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014 (unaudited) and 2013 (in € million)

2014 2013 2014 2013Revenue 1,334.8 1,332.0 5,142.1 5,288.7Cost of goods sold and services rendered -949.5 -970.1 -3,528.8 -3,797.2Gross profit 385.4 361.9 1,613.4 1,491.5Research and development expenses -84.6 -86.2 -331.4 -341.2Marketing, selling and general administrative expenses -265.5 -315.3 -985.3 -1,102.8Other operating income 1.3 8.6 40.6 65.6Other operating expense -6.9 -3.4 -53.2 -40.6

Three months endedSeptember 30

Consolidated Statement of Comprehensive Income (preliminary)For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014(unaudited) and 2013 (in € million)

2014 2013 2014 2013Net income (loss) 12.0 -28.6 193.1 33.6Items that will not be reclassified to profit or lo ssRemeasurements of defined benefit plans -28.5 28.0 -29.0 75.9Items that may be reclassified subsequently to prof it or lossCurrency translation differences 82.0 -36.1 65.7 -71.5Available-for-sale financial assets -0.1 -0.1 0.5 - Derivative financial instruments -1.3 0.1 -2.2 0.2

Three months endedSeptember 30

Roadshow Presentation (preliminary, unaudited figures) | January 201530

Income (loss) from investments accounted for using the equity method, net 1.1 0.4 35.9 13.6Interest income 0.7 1.1 3.2 5.9Interest expense -13.5 -8.7 -40.8 -32.0Other financial income (expense), net -0.8 -2.6 -3.2 -9.9

Income (loss) before income taxes 17.1 -44.2 279.2 50.1Income taxes -5.1 15.6 -86.1 -16.5

Net income (loss) 12.0 -28.6 193.1 33.6

Attributable to: Non-controlling interests 1.1 1.2 5.2 6.0Shareholders of OSRAM Licht AG 10.9 -29.8 187.9 27.6

Undiluted earnings per share (in €) 0.10 -0,28 1) 1.80 0.26Diluted earning per share (in €) 0.10 -0,28 1) 1.79 0.26

Percentages and numbers may contain rounding differences.

(1) Pro forma

Derivative financial instruments -1.3 0.1 -2.2 0.2subtotal 80.6 -36.1 64.0 -71.3

Other comprehensive income (loss), net of tax (1) 52.1 -8.1 35.0 4.6Total comprehensive income (loss) 64.1 -36.7 228.1 38.2

Attributable to:Non-controlling interests 3.3 0.7 6.9 5.8Shareholders of OSRAM Licht AG 60.8 -37.4 221.2 32.4

Percentages and numbers may contain rounding differences.

(1) Other comprehensive income (loss), net of tax includes income (losses) of €-0.1 million and €0.3 million, respectively, from investments accounted for using the equity method in the three months ended September 30, 2014 and for the f iscal year 2014 (for the previous year: €-0.1 million and €-2.5 million, respectively), of w hich €0.0 million and €0.0 million, respectively, is attributable to items that w ill not be reclassif ied to profit or loss (for the previous year: €0.0 million and €-4.2 million, respectively).

Page 31: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Cash Flow

OSRAM Licht Group

Consolidated Statement of Cash Flow (preliminary)For the fiscal years ended September 30, 2014 (unaudited) and September 30, 2013 (in € million)

2014 2013Cash flows from operating activitiesNet income (loss) 193.1 33.6Adjustments to reconcile net income (loss) to cash provided (used in) operating activities

Amortization, depreciation and impairments 272.1 341.1Income taxes 86.1 16.5Interest (income) expense, net 37.6 26.1

2014 2013Cash flows from investing activitiesAdditions to intangible assets and property, plant and equipment -243.2 -207.4Acquisitions, net of cash acquired - 0.5Purchases of investments -0.3 -38.9Proceeds and (payments) from sales of investments, intangible assets and property, plant and equipment 86.8 17.3Proceeds and (payments) from the sale of business activities -0.5 23.4Net cash provided by (used in) investing activities -157.2 -205.1Cash flows from financing activitiesPurchase of common stock - -9.2

Roadshow Presentation (preliminary, unaudited figures) | January 201531

Interest (income) expense, net 37.6 26.1(Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net 5.2 0.4(Gains) losses on sales of investments, net -32.0 - (Income) loss from investments -4.8 -13.7Other non-cash (income) expenses -4.8 36.5Change in current assets and liabilities

(Increase) decrease in inventories -146.8 13.3(Increase) decrease in trade receivables 18.6 -77.7(Increase) decrease in other current assets -17.7 -10.4Increase (decrease) in trade payables 83.8 74.1Increase (decrease) in current provisions 26.6 8.2Increase (decrease) in other current liabilities -61.0 154.8

Change in other assets and liabilities 24.6 -41.5Income taxes paid -28.4 -77.1Dividends received 2.3 6.3Interest received 4.6 1.2

Net cash provided by (used in) operating activities 459.1 491.7

Purchase of common stock - -9.2Proceeds from re-issuance of treasury stock - 3.3Proceeds from issuance of long-term debt - 300.0Transaction costs related to unused credit facilities - -21.1Repayment of long-term debt -160.0 - Change in short-term debt and other financing activities -11.8 18.7Interest paid -13.4 -8.2Dividends paid to non-controlling interest shareholders -2.7 -5.6Profit and loss transfer with Siemens Group - 336.6Interest paid to Siemens Group - -3.8Other transactions / financing with Siemens Group 11.8 -397.2Net cash provided by (used in) financing activities -176.1 213.5Effect of exchange rates on cash and cash equivalents 19.8 -9.2Net increase (decrease) in cash and cash equivalents 145.6 490.9Cash and cash equivalents at beginning of period 522.1 31.2Cash and cash equivalents at end of period 667.7 522.1Cash and cash equivalents at end of period (Consoli dated Statements of Financial Position) 667.7 522.1

Percentages and numbers may contain rounding differences.

Page 32: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Balance sheet

OSRAM Licht Group

Consolidated Statement of Financial Position (preliminary)As of September 30, 2014 (unaudited) and September 30, 2013 (in € million)

As ofSeptember 30

As ofSeptember 30

2014 2013AssetsCurrent AssetsCash and cash equivalents 667.7 522.1Available-for-sale financial assets 1.4 0.8Trade receivables 857.5 853.4

As ofSeptember 30

As ofSeptember 30

2014 2013Liabilities and equityCurrent liabilitiesShort-term debt and current maturities of long-term debt 43.6 55.9Trade payables 798.6 677.0Other current financial liabilities 46.3 39.2Current provisions 123.5 93.9

Roadshow Presentation (preliminary, unaudited figures) | January 201532

Trade receivables 857.5 853.4Other current financial assets 64.9 58.2Inventories 1,152.1 968.3Income tax receivables 29.2 50.0Other current assets 91.3 93.6Noncurrent assets held for sale 2.9 47.0

Total current assets 2,867.0 2,593.4Goodwill 37.7 35.1Other intangible assets 105.6 119.5Property, plant and equipment 1,137.1 1,132.7Investments accounted for using the equity method 62.3 57.7Other financial assets 12.3 18.8Deferred tax assets 425.0 397.1Other assets 62.7 71.0

Total assets 4,709.5 4,425.3

Current provisions 123.5 93.9Income tax payables 90.1 66.8Other current liabilities 466.2 530.8

Total current liabilities 1,568.3 1,463.6Long-term debt 138.2 295.0Pension plans and similar commitments 444.4 358.5Deferred tax liabilities 1.0 1.3Provisions 14.9 16.2Other financial liabilities 0.3 0.4Other liabilities 141.6 121.0

Total liabilities 2,308.7 2,256.0EquityCommon stock, no par value 104.7 104.7Additional paid-in capital 2,026.2 2,022.9Retained earnings 190.4 31.5Other components of equity 57.4 -4.9Treasury shares, at cost -2.9 -5.6Total equity attributable to shareholders of OSRAM Licht AG 2,375.8 2,148.6Non-controlling interests 25.0 20.7Total equity 2,400.8 2,169.3

Total liabilities and equity 4,709.5 4,425.3

Percentages and numbers may contain rounding differences.

Page 33: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Segments

OSRAM Licht Group

Notes to the Consolidated Financial Statements - Segment Information (preliminary)For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014 (unaudited) and 2013 (in € million)

2014 2013 2014 2013Segments

Three months endedSeptember 30

Three months endedSeptember 30

Total revenue EBITA (1)

2014 2013 2014 2013

Total revenue EBITA (1)

Roadshow Presentation (preliminary, unaudited figures) | January 201533

Percentages and numbers may contain rounding differences.

(1)

(2)

(3)

(4)

(5)

(6) Segment information data for comparison periods has been adapted to the new composition of segments.

EBITA is earnings before f inancial results (Income (loss) from investments accounted for using the equity method, net; Interest income; Interest expense and Other f inancial income (expense), net), Income taxes and Amortization as defined below .Assets of the segments and corporate items and pensions are defined as Total assets, less f inancing receivables and tax related assets as w ell as noninterest-bearing provisions and liabilities other than tax liabilities (e.g. trade payables).

Free cash flow constitutes net cash provided by (used in) operating activities less additions to intangible assets and property, plant and equipment. For the segments, it primarily excludes income tax-related and financing interest payments and proceeds.Amortization represents amortization and impairments of goodw ill and intangible assets, net of reversals of impairments.

Depreciation represents depreciation and impairments of property, plant and equipment, net of reversals of impairments. The nine months ended June 30, 2014 include impairment losses on property, plant and equipment used for the production of prematerials of €6.2 million related to the reassessment of the strategic business prospects and mainly affecting the CLB segment.

SegmentsLED Lamps & Systems (6) 144.0 83.8 -28.1 -23.8Classic Lamps & Ballasts (6) 472.3 549.5 -8.3 -6.5Luminaires & Solutions 124.1 154.8 -11.2 -64.6Specialty Lighting 403.6 369.1 59.5 47.9Opto Semiconductors 299.3 268.4 49.8 39.1Total Segments 1,443.3 1,425.7 61.7 -7.9

Reconciliation to consolidated financial statementsCorporate items and pensions 5.3 4.4 -25.3 -16.2Eliminations, corporate treasury and other reconciling items -113.8 -98.1 -0.3 -0.3

OSRAM Licht Group 1,334.8 1,332.0 36.2 -24.3

SegmentsLED Lamps & Systems (6) 454.3 297.8 -89.2 -95.1Classic Lamps & Ballasts (6) 1,962.6 2,302.1 89.9 42.5Luminaires & Solutions 469.2 561.3 -70.0 -128.3Specialty Lighting 1,551.0 1,455.8 236.5 218.8Opto Semiconductors 1,124.5 1,018.0 193.8 123.8Total Segments 5,561.6 5,635.0 361.0 161.7

Reconciliation to consolidated financial statementsCorporate items and pensions 17.4 17.8 -49.8 -61.5Eliminations, corporate treasury and other reconciling items -436.8 -364.2 -0.9 -0.7

OSRAM Licht Group 5,142.1 5,288.7 310.4 99.5

Page 34: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Impact of OLED integration into Specialty Lighting (SP)

Group (€m)

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 FY 14

SP ex. OLED (as reported)

Revenue 376 393 378 404 1,551

adj. EBITA 62 64 58 63 246

adj. EBITA margin 16.4% 16.3% 15.2% 15.5% 15.9%

OLED

Revenue 0 0 0 0 0

EBITA -2 -4 -3 -3 -12

Roadshow Presentation (preliminary, unaudited figures) | January 201534

EBITA -2 -4 -3 -3 -12

SP incl. OLED

Revenue 376 393 378 404 1,551

adj. EBITA 59 61 54 60 234

adj. EBITA margin 15.7% 15.4% 14.4% 14.9% 15.1%

1)

1) Restated pro forma figures

Page 35: OSRAM Roadshow Presentation Jan 2015/media/Files/O/Osram/... · Successful finish of OSRAM Push Phase I 16 Roadshow Presentation (preliminary, unaudited figures) | January 2015 (FY12

Disclaimer

This presentation contains certain non-IFRS measures. FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capitalexpenditures as percentage of revenues and other operating income, net financial debt, net working capital and certain other itemsincluded herein are not recognized measures in accordance with IFRS and should not be considered as an alternative to theapplicable IFRS measures. We have provided these measures and other information in this presentation because we believe theyprovide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBITAmargin, capital expenditures, capital expenditures as percentage of revenues and other operating income, net financial debt, networking capital varies from others in our industry and should not be considered as an alternative to net income (loss), cash flowsfrom operating activities, revenues or any other performance measures derived in accordance with IFRS as measures of operatingperformance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capitalexpenditures as percentage of revenues and other operating income, net financial debt and net working capital have important

Roadshow Presentation (preliminary, unaudited figures) | January 201535

expenditures as percentage of revenues and other operating income, net financial debt and net working capital have importantlimitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reportedunder IFRS.

Certain numerical data, financial information and market data (including percentages) in this presentation have been roundedaccording to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or ifnumbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying(unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figuresmay not add up exactly to the totals contained in the respective tables and charts.