Strong Start into FY15 Q1 FY15 Management Presentation (preliminary - - PowerPoint PPT Presentation

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Strong Start into FY15

Q1 FY15 Management Presentation (preliminary figures) (preliminary figures)

OSRAM Licht AG | February 4, 2015 Light is OSRAM

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, 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

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 2 2

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. 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.

1,393 1,335 1,203 1,278 1,326

Seasonally strong top-line

Comments Q1 FY15 y-o-y Revenue development1)

Quarterly revenue

Comp. growth (%) Revenue (in €m)

Group (€m)

1 2 1

5% nominal, 0.5% comparable revenue growth Positive currency effect of 3% and portfolio effect of 1% LED share at 39%, up by 600 bps y-o-y EMEA with modest comparable growth mainly driven by LLS Americas growing after three quarters of decline

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 3

Q1 FY15 Q4 FY14 Q3 FY14 Q2 FY14 Q1 FY14

Nom. growth (%) 5 (3) (6) (2)

Revenue by Region Q1 FY15 Revenue by Segment2) Q1 FY15

Americas

32%

APAC

24%

EMEA

44%

• nom. 2%
• comp. 1%
• nom. 6%
• comp. (2)%

20%

Opto Semiconductors

• nom. 9% comp. 4%

Specialty Lighting

• nom. 15% comp. 6%

29%

Luminaires & Solutions

• nom. (17)% comp. (19)%

7%

LED Lamps & Systems

• nom. 70% comp. 65%

11%

Classic Lamps & Ballasts

• nom. (8)% comp. (10)%

34%

(1)

Americas growing after three quarters of decline APAC lagging behind despite strong performance at SP

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

• nom. 9%
• comp. 1%

6.7 8.5 6.4 2.7 (3.0) 8.0 9.1 8.6 10.8 9.3

Exceptional operational profitability – reported EBITA held back by transformation costs

EBITA development

EBITA margin (%)

Comments Q1 FY15 y-o-y Group (€m)

• Adj. EBITA

margin1) (%)

Adjusted EBITA up 23% y-o-y, benefiting from volume as well as OSRAM Push savings Agreement related to social plan for the transformation measures in Germany signed in Q1 FY15 With €184m a substantial amount of planned FY15 transformation costs was booked

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 4

2014 2015 Q1 Q2 Q3 Q4 FY Q1 EBITA reported 112 81 81 36 310 (41) therein: OSRAM Push transformation costs

• incl. personnel restructuring

(10) (34) (20) (66) (130) (184) Total Special items (11) (35) (23) (70) (139) (192)

Special items1)

EBITA (€m)

36 81 81 112 (41) Q1 FY15 Q3 FY14 Q4 FY14 Q2 FY14 Q1 FY14

FY15 transformation costs was booked accordingly Net loss: €39m; EPS: € -0.40

1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board)

Revenue and EBITA margin development Comments Q1 FY15 y-o-y

Seasonally strong top-line Growth pace remained high with +65% comparable Product group LED Lamps reached break-even Reduced price decline, but currency headwinds

EBITA margin (%)

162

(19.5) (13.5) (20.3) (25.7) (4.3) (4.4)

LED Lamps & Systems: Target reached

• Adj. EBITA

margin1) (%) (16.0) OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 5 Revenue (€m)

162 144 110 105 95

Comp. growth (%) Nom. growth (%)

Q2 FY 14 Q1 FY14 Q1 FY 15 Q4 FY 14 Q3 FY 14

72 48 40 68 42 35 72 60 65 70

Special items1)

Q1 FY14 Q1 FY15 EBITA reported (25) (7) therein: Total Special items (0) 1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board)

551

Revenue and EBITA margin development Comments Q1 FY15 y-o-y

EBITA margin (%)

• Adj. EBITA

margin1) (%) (1.7) 3.4 3.4 6.9 6.4 11.8 12.3 9.0

Only 10% comparable revenue decline due to exceptional strong halogen business and high year-end customer demand CLB value initiative supported again stable prices Adjusted EBITA margin below prior year quarter mainly due to volume, partly compensated by cost discipline

11.4 (13.4)

Classic Lamps & Ballasts: Seasonally strong quarter

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 6

505 476 435 515 551

Special items1)

Q1 FY14* Q1 FY15 EBITA reported 65 (68) therein: Total Special items (3) (125)

(13) (13) (14)

Q1 FY 15 Q4 FY 14* Q3 FY 14* Q2 FY 14* Q1 FY14*

(13) (8) (8) (14) (19)

compensated by cost discipline Positive FCF of €32m even though burdened by transformation cash-out

(10) (8) Nom. growth (%) Revenue (€m) Comp. growth (%)

1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board) *) Figures shown reflect Prematerials integration into CLB

Luminaires & Solutions: Focus strategy affects top-line

EBITA margin (%)

• Adj. EBITA

margin1) (%) (9.1) (25.9) (11.2) (16.1) (8.0) (24.7) (6.7) (14.9)

Declining top-line due to focus measures mainly in NAFTA Further increase of LED share to 58% up from 45% in prior year quarter EBITA margin expected to improve in 2nd half

• f FY15 on increasing LED share and higher

revenue

(8.6) (7.0)

Revenue and EBITA margin development Comments Q1 FY15 y-o-y

135

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 7 (21) (16) (9) (20)

Q1 FY 15 Q3 FY 14 Q2 FY 14 Q1 FY14 Q4 FY 14

(20) (6) (19) (13) (19) (17) Revenue (€m) Comp. growth (%) Nom. growth (%)

Special items1)

Q1 FY14 Q1 FY15 EBITA reported (15) (10) therein: Total Special items (4) (2) 1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board)

111 124 110 101 135

Specialty Lighting: Again strong performance

EBITA margin (%)

• Adj. EBITA

margin1) (%) 15.7 13.7 14.1 15.3 15.4 14.9 14.9 14.4

6% comparable growth: all regions, businesses and technologies increasing Adjusted EBITA margin improved, including currency tailwinds Clay Paky successfully arrived at OSRAM – business performance on track

14.9 16.0

Revenue and EBITA margin development Comments Q1 FY15 y-o-y

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 8

433 404 378 393 376

9 7 5 5 margin (%)

Q3 FY14* Q2 FY14* Q1 FY15 Q4 FY14* Q1 FY14*

9 10 10 11 6 15 Nom. growth (%) Revenue (€m) Comp. growth (%)

Special items1)

Q1 FY14* Q1 FY15 EBITA reported 58 64 therein: Total Special items (2) (5) 1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board) *) Figures shown reflect OLED integration into SP

295 299

Opto Semiconductors: Profitability remained on high level

EBITA margin (%) 19.8 13.2 16.7

Moderate comparable revenue growth compared to exceptionally strong growth in prior year quarter All regions growing, main growth driver being industry business Y-o-y EBITA increase benefited from volume, productivity and favorable product mix

19.2 16.2

Revenue and EBITA margin development Comments Q1 FY15 y-o-y

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 9

295 299 286 270 270 Q2 FY 14 Q1 FY 14 Q1 FY15 Q4 FY 14 Q3 FY 14

11 12 2 17

Prior year EBITA impacted by net €8.1m expenses for legal matters and license income

11 14 5 20 9 4 Nom. growth (%) Revenue (€m) Comp. growth (%)

OSRAM Push continued

Status Dec 31, 2014 Target (FY15-17) Progress Transformation costs, cumulated (€m) 213 ~450

47%

Project progress OSRAM Push

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 10

Transformation costs, cumulated (€m) 213 ~450 Job reduction, cumulated (in 1,000 FTE) 0.5 7.8 OSRAM Push cost reduction (gross), cumulated (€m) 93 1,300

47% 6% 7%

Net Debt bridge Capital Expenditure

9 13 2 14 32 7 +78% 59 3 2 6 33 1 2 Other LS LLS CLB OS SP

6 75 37 16

Net Liquidity Other invest./

464

Acquis.

• 79

CAPEX

• 59

Income taxes

• 19

Other cash ∆ other assets and ∆ NWC EBITDA Net Liquidity

487

FCF 56‘

Group (€m)

Free Cash Flow decreased only due to higher Capex and cash outflow for transformation

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 11 Capex as % of revenue 4.2 Group WC Turns1) 4.6

Working Capital

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

56 72

• 22%

Q1 FY15 Q1 FY14 Q1 15 Q1 14 831 841

• 716
• 671

979 +9% Trade payables Trade receivables Inventories 12/31/14 1,246 1,122 12/31/13 1,139 4.2

Free Cash Flow

2.5

Liquidity 12/31/14 invest./ fin. activities taxes paid cash flows from

• perating

activities assets and receivables NWC Liquidity 09/30/14

Key financial metrics

Q1 FY14 Q1 FY15 Change (y-o-y) Revenue 1,326 1,393 Nom: 5% Comp: 0% Gross margin 32.4% 23.5% (890) bps R&D (81) (91) 12% SG&A (238) (286) 20% EBITA 112 (41) n.a. EBITA margin 8.5% (3.0)% (1.150) bps

• Adj. EBITA

123 151 23%

• Adj. EBITA margin

1)

9.3% 10.8% 150 bps

Group (€m)

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 12

1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board)

EBITDA 166 16 (90)% Financial result

including at-equity results

(8) (7) (13)% Income (loss) before Taxes 97 (56) n.a. Taxes (29) 17 n.a. Net Income (loss) 68 (39) n.a. Basic EPS in € 0.63 (0.40) n.a. Free Cash Flow 72 56 (22)% CAPEX (33) (59) 78% Net Liquidity (246) (464) 89%

• Adj. Net Debt / EBITDA

0.1 (0.1) Equity Ratio 51% 50% (10) bps Employees In thousands 34.1 33.7 (1)%

For FY15 we expect revenue on FY14 level on a comparable basis We expect the adjusted1) EBITA margin to be at FY14 level OSRAM Push Phase II in FY15 with gross savings of roughly €400m Biggest yearly share of transformation costs in FY15 will lead to a 3 2 1

Outlook confirmed

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 13

Biggest yearly share of transformation costs in FY15 will lead to a sharp decrease in net income and ROCE Free Cash Flow for FY15 expected to come in with a positive triple digit €m amount, but below FY14 level 4 5

1) Adjusted for special items (including e.g. transformation costs, spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board)

• Based on 2015 outlook and OSRAM’s midterm prospects we

intend dividend continuity with €0.90 per share also for FY15

Financial Calendar and Investor contacts

Upcoming events

• February 5, 2015

Bankhaus Lampe – German Equity Forum, London

• February 6, 2015

Roadshow, Paris

• March 19, 2015

Bank of America Merrill Lynch – Global Industrials Conference, London

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 14

Investor Relations contact Boris Tramm + 49 89 6213 4686 Munich Office + 49 89 6213 4875 Internet http://www.osram.com/ir Email: ir@osram.com

Disclaimer

This presentation contains certain non-IFRS measures. FCF, EBITDA, EBITA, EBIT, 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 provide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBIT, 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

• f operating performance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital

expenditures, capital expenditures as percentage of revenues and other operating income, net financial debt and net working

OSRAM Licht AG Management Presentation Q1 FY15 (preliminary figures) | February 4, 2015 15

expenditures, capital 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.