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Performing while pushing transformation g p g

Q2 FY14 Management Presentation Q2 FY14 Management Presentation (preliminary figures)

OSRAM Licht AG April 30 2014 April 30, 2014

Safe Harbor Statement 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 described

• herein. Forward-looking statements may include, in particular, statements about future events, future

financial performance plans strategies expectations prospects competitive environment financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. OSRAM Licht AG has based these forward-looking statements

• n its views and assumptions with respect to future events and financial performance. 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 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 looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 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 to the totals provided and percentages may not precisely reflect the absolute figures.

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 2 2

G hi hli ht Q2 FY14 Group highlights Q2 FY14

Comparable top line growth driven by SSL Forward OS and SP Comparable top line growth driven by SSL Forward, OS and SP OSRAM P h ti l d li l

€1,278m revenue (+1% comp.) 9.1% Adj. EBITA margin1) (+160bps y-o-y)

OSRAM Push continuously delivers on plan

€106m benefits in Q2 Remaining plant closures in implementation Next wave OSRAM Push started

Dedicated Segments to drive transformation towards SSL and to harvest „Golden Tail“

34% SSL revenue share (vs 27% in Q2 FY13)

Outlook FY14 confirmed

34% SSL revenue share (vs. 27% in Q2 FY13) New Segments Classic Lamps & Ballasts (CLB) and LED Lamps & Systems (LLS) to effectively address different business dynamics

Outlook FY14 confirmed

Growth targets more challenging New products expected to kick in for next lighting season after Light + Building 2014

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 3

1) Adjusted for “Special items” - "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods

S t hi hli ht Q2 FY14

Lamps & Components (LC)

Segment highlights Q2 FY14

Lamps & Components (LC)

Continued decline in sales: -8% (comp. y-o-y) in Traditional Strong focus on pricing discipline in Classic Lamps & Ballasts Revenue growth (comp. y-o-y) in SSL Forward: +40%

Luminaires & Solutions (LS)

Significant decline in sales due to portfolio adjustments and customer driven project delays Well progressed restructuring in Services shows negative impact on revenue Trough of sales decline reached

Specialty Lighting (SP)

Trough of sales decline reached Growth in automotive outperforms growth of global car production (light vehicles) since 17 quarters

O t S i d t (OS)

p g g p ( g ) q Display/Optics back to growth after seven quarters of decline Frontlight design win for volume model Ford F150 Pickup

Opto Semiconductors (OS)

Six quarters in a row with double-digit revenue growth Sharp increase in the margin compared to previous year quarter Opening ceremony of back-end facility Wuxi in Q3 (May)

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 4

OSRAM Push continues to deliver on plan

OSRAM Push: Overall, comprehensive, continuous performance improvement program

OSRAM Push continues to deliver on plan

Structure Growth

OSRAM Push execution track record

As of FY 13 Q1 FY14 Q2 FY14 Progress Target Transformation costs (€m) (FY12 14) 498 10 34 ~ 600

90%

Operation Culture

EBITA Margin: >8% as average

(FY12 – 14) Plant reductions (FY12 – 14) 7 11 Headcount reduction (‘000) (FY12 – 14) 6.6 2) 0.6 0.6 c.8.7 OSRAM Push gross

64% 90%

OSRAM Push targets:

>8% as average

• ver the cycle

OSRAM Push gross savings, cum. (€m) (FY13 – 15) 433 105 106 c.1,200

54%

OSRAM Push: Next wave to come OSRAM Push targets:

• Cum. gross savings of €1.2bn by FY15 unchanged
• Headcount reduction of 8,700 by FY14 unchanged
• Reduction of manufacturing sites unchanged
• OPEX targets unchanged:
• SG&A1): Reduce by ~8-10% by FY14 vs. FY12
• R&D: Keep absolute terms flat until FY14 vs. FY12

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 5

• Cum. Q4 FY13

1) w/o logistics costs 2) Including impact of Tangerang (closure of production) Q1 FY14 Q2 FY14

Strong growth in SSL lamps – accelerated decline in traditional lamps business burdens overall growth in traditional lamps business burdens overall growth

LC SSL growth Comparable y o y

• Disappointing performance in top line of traditional

lamps 40% 48% 36% 14% Comparable y-o-y lamps

• Cautious outlook given in Q1 FY14 communication.

Traditional lamps declines faster than anticipated

• First two months in recent quarter indicate a

Q2 FY14 Q1 FY13 Q1 FY14 Q2 FY13

continuation of the decline

• We prepare for that trend, therefore following actions

have been decided: LC Traditional growth Comparable y-o-y  Split reporting segment LC into “Traditional” and “SSL”  Delayer GI Sales organization / dematrix LC Traditional

LC / GI LC

• 4%

Q1 Q2

• 8%
• 5%

Q2

• 8%

Q1

dematrix LC Traditional  Global Shared Services initiative  HQ processes / structures to better serve business needs

OSRAM Group OSRAM Group

 Concentrate “Traditional” on profitable ramp-down, concentrate “SSL” on profitable growth  Clear responsibility and affordable structures for “Traditional” and “SSL”  Efficient & effective HQ and shared service processes

Target

Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY13

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 6

 Efficient & effective HQ and shared service processes

1) Capital Market Day

Pi li f d t ll t k

% of total sales generated from products

Pipeline for new products

Pipeline for new products well on track

% of total sales generated from products launched after 06/13

Pipeline for new products

• Q2 results show - as planned - increased

proportion of new products compared to Q1

~90% of which will be SSL-

to Q1

• More new products will be launched in

Q3 and Q4

• Pipeline for new SSL products well on

track in FY14 (examples)

will be SSL- based

track in FY14 (examples)

DURIS S8 PrevaLED Flex Elements VEGA SSL ORBEOS 3. Gen. OSLON Black Flat 9% 11% 14% H1 FY14 act Q1 FY14 act FY14 Target

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 7

Note: Values w/o OLED, Services and pre-materials

OSRAM @ Light and Building 2014 Excellent feedback from our customers Excellent feedback from our customers

Pre aLED Fle Linear oted PrevaLED Flex Linear voted „10 hottest new products“ at L+B by Lux Review High efficiency LED tube voted „10 hottest new products“ at L+B by Lux Review „Everyone is presenting connected light, but no

• ne offers such a thoughtful system as Osram.“

Conrad Elektronik, Lead Purchase Manager

FY

„Can we get that exclusively?“ Bauhaus, Top Management with regard to Lightify „We have been for five days at l+b, and what Osram is showing is clearly the highlight. Very

LIGHTIF

„Very impressive and of course we are working on a project together on the Gaze for Milan Expo 2015 and I think we have seen so many of these applications that are really relevant for the 21. Century. Not only affordable and accessible lighting, also thi th t i t l b tif l ” innovative product and marketing concepts.“ Hagebau, Top Management

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 8

something that is truly beautiful.” Daniel Libeskind – Architect and city planner

Comparable top line growth driven by SSL Forward, OS and SP OS and SP

Comments Q2 y-o-y Revenue development1) Group (€m) Comments Q2 y-o-y Revenue development1)

Quarterly revenue

1,326 1,332 1,278 1,322 1,278

• Overall comparable growth of 1%, despite

continued decline of traditional business (-7% comp.)

Comp. growth (%) Revenue (in €m) 2 4 1 2

• SSL share up to 34% compared to 27% a year

earlier (SSL Forward growth +39%)

• Low single digit comp. growth in EMEA and

g (%) Nom. Growth (%) (3) (2) (2) (3) (3)

Q1 FY14 Q4 FY13 Q3 FY13 Q2 FY13 Q2 FY14

APAC driven by OS and SP

• Americas (mainly US) lagging behind, in part

due to restructuring of Services business

Revenue by Region Q2 Revenue by Segment2) Q2

Americas

31%

EMEA

46%

• nom. (8)%

(1)%

Opto Semiconductors

20%

Lamps & Components

45%

• nom. 12%
• comp. 14%

APAC

23%

EMEA

46%

• nom. 0%
• comp. 2%
• comp. (1)%
• nom. (3)%

comp 3%

Specialty Lighting

28%

Luminaires & Solutions

7%

Lamps & Components

45%

• nom. (8)%
• comp. (2)%
• nom. 7%
• comp. 11%
• nom. (21)%

comp (19)%

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 9

1) nom. (nominal growth) / comp. (comparable growth), adjusted for FX and portfolio effects 2) based on sum of Segments´ revenue, w/o considering corp. items & consolidation

• comp. 3%
• comp. (19)%

Significant increase in profitability Significant increase in profitability

EBITA development Comments Q2 y o y Group (€m) EBITA development Comments Q2 y-o-y

• Adj. EBITA

Margin1) (%)

• Adjusted EBITA margin again above 9%, backed

by OS and SP, but held back by LS and LC

6 4 8.5 7.5 9.3 9.1 7.4 8.1 EBITA Margin (%)

by OS and SP, but held back by LS and LC

• Continued gross margin improvement in SSL and

SSL Forward

• EBITA less burdened by special items y o y

6.4 0.1 1.7 g ( )

81 112

• EBITA less burdened by special items y-o-y
• Strong net income at €69m following prior-year

loss

(1.8) 0.1

2013 2014 Q2 Q3 Q4 FY Q1 Q2 EBITA reported 1 22 (24) 99 112 81

Special items2)

EBITA (€ )

22 1

EBITA reported 1 22 (24) 99 112 81 therein: OSRAM Push transformation costs

• incl. personnel restructuring

(90) (64) (110) (300) (10) (34) Total Special items (98) (72) (133) (310) (11) (35)

(€m)

• 24

Q2 FY13 Q2 FY14 Q1 FY14 Q3 FY13 Q4 FY13

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 10

1) Adjusted for “Special items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods

FY13 FY14 FY14 FY13 FY13

Lamps & Components: Modest top line decline despite substantial growth of SSL despite substantial growth of SSL

Revenue and EBITA margin development Comments Q2 y-o-y

Adj EBITA 6 7 7 3

• Substantial comparable growth in SSL Forward

by 40% but continued decline in traditional business by -8%

EBITA Margin (%)

• Adj. EBITA

Margin1) (%)

668

0.7 (4.8) 6.3 (2.4) (1.3) 2.8 6.7 4.8 7.3 5.2

• Further improvements in SSL margins
• EBITA less burdened by transformation costs

y-o-y; transformation costs also expected for coming quarters

Revenue (€m)

616 643 633 604 668

• EBITA margin held back primarily by mix effects,

while price declines were compensated by Push benefits

• Starting May 1st LC will be split in two reporting

Special items2)

Comp. growth (%) 2

Starting May 1 LC will be split in two reporting segments LLS (LED Lamps & Systems) and CLB (Classic Lamps & Ballasts) to more effectively address different business dynamics

p

Q2 FY13 Q2 FY14 EBITA reported (16) 4 therein: Total Special items (65) (28)

Q2 FY14 Q1 Q1 FY14 Q4 FY13 Q3 FY13 Q2 FY13

growth (%)

Nom. Growth (%) (7) (8) (8) (7) (7)

(2) (1) (2) (2) Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 11

1) Adjusted for “Special Items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods

Luminaires & Solutions: Restructuring ongoing top line trough reached Restructuring ongoing – top line trough reached

Revenue and EBITA margin development Comments Q2 y-o-y g p

EBITA

y y

• Adj. EBITA

Margin1) (%) (18.2) (11.2) (18.0) (6.7) (8.0) (15.1) (16.5) (24 7)

• Substantial revenue decline mainly due to:
• Luminaire portfolio adjustments

EBITA Margin (%)

155

( ) (41.7) (25.9) (24.7)

p j

• Exit of traditional maintenance

business

• Customer driven project delays

Revenue (€m)

101 135 155 131 128

• Continued strong comparable SSL growth
• Top line trough reached, restructuring well

progressed

Special items2)

Q2 FY13 Q2 FY14

Comp. growth (%) (8) (6) 4 (6)

EBITA reported (23) (26) therein: Total Special items (2) (1)

growth (%)

Nom. Growth (%) (9) (21) 1 (7) (8)

Q2 FY14 Q1 FY14 Q4 FY13 Q3 FY13 Q2 FY13

(8) (6) ( ) (19) Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 12

1) Adjusted for “Special Items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods

( )

Specialty Lighting: Again strong profitability based

• n double digit top line growth
• n double-digit top line growth

Revenue and EBITA margin development Comments Q2 y o y Revenue and EBITA margin development Comments Q2 y-o-y

Adj EBITA

• Significant broad based top line growth

(11% comp.):

EBITA Margin (%)

• Adj. EBITA

Margin1) (%) 12.4 15.5 15.8 15.7 13.0 16.4 16.0 15.8 16.3 16.3

• Mainly driven by automotive SSL

components

• Continued growth in traditional automotive
• Display/Optics returned to comparable

393 376 369 359 369

Revenue

Display/Optics returned to comparable growth

• Continued strong EBITA margin benefiting from

capacity utilization

Special items2)

Revenue (€m) Comp. growth (%) 5 9 11 8

Nom. Growth (%) 2 3 5 7 2

Q2 FY13 Q2 FY14 EBITA reported 58 62 therein: Total Special items (2) (2)

Q2 FY14 Q3 FY13 Q2 FY13 Q4 FY13 Q1 FY14

growth (%) 3 5 Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 13

1) Adjusted for “Special items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods

Opto Semiconductors: Broad based growth and exceptional profitability Broad based growth and exceptional profitability

Revenue and EBITA margin development Comments Q2 y-o-y y y

19.2 14 6

• 14% comp. revenue growth across all regions

and all businesses

EBITA Margin (%)

279

14.6 10.2 13.5

and all businesses

• Reported EBITA includes a gain of €7.5m

related to an insurance reimbursement F bl tf li i ith t t ti

13.2

270 270 268 279 241

• Favorable portfolio mix with strong automotive

and industry sales as well as capacity utilization boost EBITA margin y-o-y

Revenue (€m) Comp. growth (%) 14 18 20 14 13

Nom. Growth (%) 14 17 17 12 10

Q2 FY13 Q1 FY14 Q4 FY13 Q2 FY14 Q3 FY13

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 14

FCF b i t li idit i d FCF above prior year, net liquidity increased

Group (€m) Net Debt bridge Capital Expenditure

8 +49% 56 SP

Net Debt bridge

81 3 12 140 44 12

• 3

18 12 27 8 Q2 FY13 38 6 3 11 6 Q2 FY14 1 2 Other LS LC OS

246

∆ non- ∆

• 44

EBITDA

Net

Other Mainly

• 12

Net 366

Other

3

Payment CAPEX

• 56

Sale of Valeo

FCF 42‘

Capex as % of revenue 4.4

Operating Working Capital

Q2 FY13 Q2 FY14

Free Cash Flow

2.9

current assets and liabilities NWC

Net Liquidity Q1 FY14

income / expense y taxes paid

Net Liquidity Q2 FY14

Invest./ Fin. activities y from exit

• f

financial asset

Group WC 42 1 917 828 997

• 201

Trade receivables Inventories 1,137 1,338 1,000 Turns1) 4.0 1 Q2 FY14 Q2 FY13

• 580
• 688

917 828 Trade payables Q2 FY14 Q2 FY13 4.6 Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 15

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

Key financial metrics Key financial metrics

Group (€m)

Q2 FY13 Q2 FY14 Change (y-o-y) Revenue 1,322 1,278 Nom: (3)% Comp: 1% Gross Margin 27.7% 31.8 % 410bps R&D (85) (81) 4 SG&A (263) (246) 17 EBITDA 83 140 57 EBITA 1 81 80 EBITA Margin 0.1% 6.4% 630bps

• Adj. EBITA

99 116 17

• Adj. EBITA Margin

7.5% 9.1% 160bps Financial result

(incl. at-equity results)

(19) 23 42 Income before Taxes (24) 98 122 Taxes 5

• 29

(34) Taxes 5

• 29

(34) Net Income (19) 69 88 Basic EPS (in €) (0.19) 0.65 0.84 Free Cash Flow 1 42 41 CAPEX (38) (56) (18) Employees (in thousands) 38 33 (5) Net Debt / (Liquidity) 19 (366)

1)

(385)

• Adj. Net Debt / EBITDA

1.0 0.0

1) Net liquidity as of March 31, 2014 is Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 16

Equity Ratio 43% 51% 800bps

1) Net liquidity as of March 31, 2014 is presented as a negative figure.

Outlook confirmed – Growth target more challenging

• Comp. revenue growth FY14 expected to exceed global real GDP growth,

1

Growth target more challenging

• Comp. revenue growth FY14 expected to exceed global real GDP growth,

currently estimated at approximately 3% for 20141)

Modest growth in H1 FY14, despite continued growth in SP, OS and SSL Forward business

We expect an adjusted2) EBITA margin of more than 8% in FY14 2 1 We expect an adjusted EBITA margin of more than 8% in FY14 Cumulated gross cost savings of ~€1.2bn until FY15

OPEX targets remain unchanged

3 2

OPEX targets remain unchanged Transformation costs for FY14 expected to approach €100m

Net income for FY14 expected to rise sharply 4 ROCE for FY14 expected to exceed cost of capital of 8.5% Free Cash Flow for FY14 expected to come in with a positive 5 6 Free Cash Flow for FY14 expected to come in with a positive triple-digit €m amount, however below the high FY13 level

Higher cash-out for transformation costs and CAPEX

6

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 17

1) Based on IHS Global Insight 2) Excl. impact from transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters

OSRAM’s transformation path OSRAM’s transformation path

2015

>8% EBITA as Ø over the cycle

Deliver Transform /

2014 2015

Focus / P i iti

2013

Transform / Execute Execute

• Q1: SSL forward lamps break even
• Q2: First dividend to shareholders to be proposed
• Q3: Sales streamlining / new structure in full swing

2011

Structure / People / Processes Prioritize

2012

• Q1: Equipment roll in at Wuxi plant (OS backend facility)
• Q2: New SSL products driving top-line growth
• Q3: Repositioning of LS shows first effects
• Q4: Continuous improvement process is part
• f OSRAM’s DNA

 

• Q1: Top-line and bottom-line on plan
• Q2: Top-line bottomed out
• Q3: Back to profitable growth
• Q4: Majority of restructuring done



• Q4: Transformation becomes part of operational business (“all in”)

  

• Apr: New board members
• Jul: Start of restructuring
• Jul: Restructuring progress, further consolidation of manufacturing

footprint and “OPEX” program started

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 18

Financial Calendar and Investor contacts Financial Calendar and Investor contacts

Upcoming events

• May 6, 2014

Q2 Roadshow Frankfurt

• May 14, 2014

Q2 preliminary report

• May 7, 2014

Q2 Roadshow Milan, London

• May 8, 2014

Q2 Roadshow Lugano

• July 30, 2014

Q3 preliminary figures

Investor Relations contact M B i T + 49 89 6213 4686

• Mr. Boris Tramm

+ 49 89 6213 4686 Munich Office + 49 89 6213 4875 Internet http://www.osram.com/ir Email: ir@osram.com

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 19

Disclaimer Disclaimer

This presentation contains certain non-IFRS measures. FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capital expenditures as percentage of revenues and other operating income, net financial debt, net working capital and certain other items included herein are not recognized measures in accordance with IFRS and should not be considered as an alternative to the applicable IFRS measures. We have provided these measures and other information in this presentation because we believe they id i t ith dditi l i f ti t f O f th t FCF EBITDA EBITA EBITA provide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capital expenditures as percentage of revenues and other operating income, net financial debt, net working capital varies from others in our industry and should not be considered as an alternative to net income (loss), cash flows from operating activities, revenues or any other performance measures derived in accordance with IFRS as measures of operating performance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capital expenditures as percentage of revenues and other operating income net financial debt and net working capital have important expenditures as percentage of revenues and other operating income, net financial debt and net working capital have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under IFRS. Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers 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 figures may not add up exactly to the totals contained in the respective tables and charts.

Management presentation Q2 FY14 (preliminary figures) | April 30, 2014 20