OSRAM Kulim Opening 2017 OSRAM Licht AG | November 23, 2017 Light - - PowerPoint PPT Presentation

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OSRAM Kulim Opening 2017 OSRAM Licht AG | November 23, 2017 Light - - PowerPoint PPT Presentation

www.osram.com OSRAM Kulim Opening 2017 OSRAM Licht AG | November 23, 2017 Light is OSRAM Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the


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OSRAM Kulim Opening 2017

OSRAM Licht AG | November 23, 2017 Light is OSRAM

www.osram.com

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 2

Disclaimer

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 described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. OSRAM Licht AG has based these forward-looking statements on its current views and expectations and on certain assumptions of which many are beyond OSRAM Licht AG’s control. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward- looking statements. The information contained in this presentation is subject to 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 extent required by applicable laws and regulations. This presentation includes references to non-IFRS financial measures, including, but not limited to: FCF, EBITDA, EBITA, EBIT, EBITDA margin, capital expenditure, capital expenditure as percentage of revenue, net financial debt, and net working capital. We have provided these measures and other information in this presentation because we believe they provide investors with additional information to assess

  • ur performance. Our use of these supplemental financial measures may vary from others in our industry and should not be considered

in isolation or as an alternative to our results as reported under IFRS. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 3

Three pillar strategy Opto Semiconductors Specialty Lighting Lighting Solutions & Systems

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 4

Global Digitalization Trends driving OSRAM’s future

Source: OSRAM, Analysis of 28 market segments with internal and external sources, Market: 2017,  growth: 2017 – 2021 p.a.

Illuminating Sensing Visualizing Treating Market: ~€30bn Growth: +5 – +10% Market: ~€10bn Growth: ~ +10% Market: ~€5bn Growth: > +20% Market: ~€5bn Growth: > +10%

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 5

OS LSS SP

Market size in bn €

Financials based on FY17

17‘‘€ 20‘‘€

Industry position

Global No. 2

Segment revenue

1.7 bn €

  • adj. EBITDA

473m €

  • adj. EBITDA margin

28.1 %

Free cash flow

62 m €

Growth drivers:

Automotive Smartphone General Lighting

2016 2020

Infrared

Opto Semiconductors (OS)

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 6

2008 2012 2016 2020 2024 2028 2030

Profitable Opportunities ahead

CONCEPTUAL

OS Market Backlighting General Lighting Premium, IR Emitter, Laser Visualization and Sensing

New biz opportunities for OS IHS 2015

OS LSS SP

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New Applications and a compelling Strategy are expected to generate double digit Growth

1) Infineon, ams AG, Seoul Semiconductor, Cree, Epistar, Everlight Electronics, HC Semitek, TI, Renesas

Focus Applications OS revenue development (€bn)

  • Adj. EBITDA margin

Peer group1) 20 – 24% Target range OS 25 – 29%

Visualization and Sensing General Lighting Premium, IR Emitter, Laser

OS Strategy

“Shape the future”  Win in new business opportunities “Gain competitive scale” “Mega”-sites in a low- cost-locations (Kulim, Wuxi) “Grow the core”  Strengthen techno- logy leadership

1.7 16 1.4 15 17 19e 20e 18e 1.1

OS LSS SP

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 8

  • Construction on time

(March 2016 – November 2017)

  • Finished below budget
  • Production ramp up in November, 2017
  • Faster start of Premium production

OS in a leading industry Position – Technology, scale and factor cost

Best in Class & Market Leadership

  • 2. Scale and 3. Factor Cost

Kulim: Worldwide largest 6’inch LED fab is starting production Revenue growth Innovation Profitability 1

  • 1. Technology

OS LSS SP

Best factor costs and right economies of scale Leading in technology

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 9

Specialty Lighting (SP)

Automotive Entertainment

Industry position

Global No. 1

Segment revenue

2.3 bn €

  • Adj. EBITDA

339 m €

  • adj. EBITDA margin

14.7 %

Free cash flow

235 m €

1)

Growth drivers:

Automotive Entertainment Industry

Market size in bn € 12‘‘€ 15‘‘€ 2016 2020

1) In Automotive lighting, Financials based on FY17

OS LSS SP

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Lighting Solutions and Systems (LSS)

Segment revenue

1.0 bn €

  • adj. EBITDA
  • 21 m €
  • adj. EBITDA margin
  • 2.1 %

Free cash flow

  • 68 m €

Growth drivers:

Energy saving

Market size in billion € 67‘‘€ 89‘‘€ 2016 2020

Beyond lighting Industrial sites City beautification

OS LSS SP Financials based on FY17

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OSRAM Licht AG OSRAM Kulim Opening | November 23, 2017 11 Illuminating Visualizing Sensing Treating

Autonomous driving with OSRAM

Adaptive cruise control system (LIDAR) LED / Laser head-up display Headlamp (e.g. laser, matrix) Pre crash sensing (LIDAR) Rain sensor Daytime running light Side view and lane detection Ambient light sensor Driver monitoring Interior lighting Ambient lighting Gesture recognition 3-D environment detection (LIDAR) Rear light LED Flash Display backlighting Bio-Monitoring Eye tracking IR remote control Gesture recognition

Digital communication with OSRAM

Ambient light sensor/ proximity sensor

Facial recognition

Iris-Scanning

Iris scan or facial recognition Indicators

Wellbeing with OSRAM

Mobile Food-Analysis Baby monitoring Wearables

Entertainment with OSRAM

Concerts Cinema Shows & Events Stage & Theatre Studio, TV & Film Wireless networks for park management Personalized advertising Indoor-Navigation Access control Integrated sensors for traffic detection and traffic control Intelligent LED-street lights Light management systems LED-indoor luminaires and components Security applications

OSRAM equips Smart Cities

Digitalization and new Applications are creating significant Market

  • pportunities for OSRAM
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OSRAM Kulim Opening 2017

OSRAM Licht AG | November 23, 2017 Light is OSRAM

www.osram.com