2018/09/18 · 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’scontrol

OS Market & Technology DaySeptember 18th, 2018

www.osram.com

Light is OSRAM

OS Market & Technology Day

September 18th, 2018

2

Disclaimer

This presentation as well as other reports, presentations, materials delivered to shareholders and press releases 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. In addition, our representatives may from time to time make oral forward-looking statements. 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. These are subject to a number of risks, uncertainties and factors, including, but not

limited to those described in disclosures, in particular in the sub-chapter Risks in the Annual Report. 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, 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 our 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.



3

Agenda for OS Market and Technology Day on September 18th, 2018

Time Topic Responsible

12:00 – 13:00 Lunch & Visit World of Light

15:10 – 16:30 Show cases by Segments

10:45 – 10:50 Welcome Andreas Spitzauer

10:50 – 11:00 Company update OSRAM Dr. Olaf Berlien

11:00 – 11:40 Company update OSRAM OS Dr. Stefan Kampmann

10:00 – 10:45 Arrival and Registration

13:00 – 13:30 Industry and Mobile Devices Bodo Ischebeck

13:30 – 13:50 General Lighting Emmanuel Dieppedalle

13:50 – 14:20 Automotive Wolfgang Lex

14:20 – 15:00 Q&A OSRAM Board and OS Team

15:00 – 15:10 Wrap-up & Closing remarks Dr. Olaf Berlien

From 16:30 End and bus transfers

OS Segment Heads

11:40 – 12:00 Q&A OSRAM Board



4

Strategic communication roadmap 2018

OSRAM Company Strategy Update

OSRAM OSMarket & Technology Day


• Presentation of strategic development for OS

• OS as the group’s technology backbone

for Photonics

• Growth opportunities for OS segments

• OS growth path

November 7th, 2018

• Strategic development of OSRAM Group

• OSRAM Continental JV

• OSRAM Group growth path

• Presentation of financial results Q4/18



5

same as title page

Company Update OSRAM

Dr. Olaf Berlien



6

OSRAM is a global leader in lighting technology

Automotive Lighting (SP) Opto Semiconductors (OS) Digital Solutions (LSS)

~26,900

458million € 15.0%

EBITDA adj. /

margin YTD

Q3/18

Patents &

patent

applications

Employees

worldwide17,400

3.1bn Revenue

YTD Q3/18



7

Photonics

LED technology is changing the way we use light

> LED technology replaces traditional lamps in illumination applications

General lighting Specialty applications

~€5bn

Growth

Treatment

~€10bn

Growth

Visualization

~€5bn

Growth

Sensing

Higher energy efficiency

Full flexibility of light spectrum

More compact & robust

Easier integration in electronics

Precise light emission

past present future

~€30bn

Growth

Illumination

> LED technology enables new application fields

SSL technology dominant (e.g. laser, LED)

Augmented Reality

Horticulture

LIDAR

Video Walls

Material processing

Mobile Spectroscopy



8

Innovation allows us to participate in growth cycles

2015 2020 2025

Market size

Traditional technologies Photonics (LED, Laser…)

2015 2020

€17 bn

Source: OS Market Model, External Market Models

Market for Optoelectronic Components

2025

€8 bn

Illumination Backlighting

(not in OS focus)

Visualization / Sensing / Treatment

Illumination

General Lighting

(excl. horticulture)

Illumination Premium

2017

Market size

Source: Frost & Sullivan 2015

Photonics



9

OSRAM focussing its technology to lead the growth cycle towards photonics

Illumination SSL

Sensing Treatment Visualization

Illumination Trad

Strategy Update

OSRAM 2020+

Phase 3

Focus

2018 +

Three pillar strategy

implemented at good

profitability

Strategic investment in

Opto Semiconductors

Company split and

carve-out of lamps

business

>750 Mio. €

Divestments

Phase 1

Realignment

2015/2016 Launch JV

OSRAM/Continental

(Advanced smart lighting)

Realignment SP

business

Small & mid-size targeted

investments in growth

markets (digital)

Operational measures &

performance programs

Initiated divestment of

Luminaires Business

Phase 2

Transformation

2017/2018

2015

Vertically integrated

lighting expert2020+

High-Tech

Photonics Champion



10

Illumination

Visualization

Sensing

Treatment

OSRAM enables autonomous driving

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

OSRAM enables digital communication

Ambient light sensor/

proximity sensor

Facial

recognition

Facial recognition

Indicators

OSRAM enables wellbeing applications

Mobile Food-Analysis

Baby monitoring

Wearables

OSRAM enables entertainment

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

systemsLED-indoor luminaires

and components

Security

applications

OSRAM enables smart cities

Photonic applications create significant market opportunities for OSRAM



11

Company Update OSRAM OS

Dr. Stefan Kampmann



12

OSRAM OS at a glance

Segment Industry

and Mobile Devices

~35% of revenue

No. 2 in Industry and

Mobile Devices1)

Segment Automotive

~50% of revenue

No. 1 in Automotive2)

~12,600

172017

222023

1.7bn

Market size

in € bn1)

Industry

position

Employees

worldwide

Revenue

2017

2Global

No.

Segment General Lighting

~15% of revenue

No. 3 in High Power2)

Source: IHS Markit, Technology Group, LED Intelligence Service 2018. Data is not an endorsement; 1) Packaged LED (Visible + IR); 2) Packaged LED (Visible)



13

OS business model – Three strong Segments with a joint

setup to drive profitable growth through innovation

Strong Segments

Entrepreneurial Segments covering

all relevant Photonics markets

Joint setup

• Common technology platforms

for chip/package and materials

• Global production footprint

for chip and package

• Product innovation across

all Segments based on existing

and new platforms

Production

Technology

Product Innovation

Industry and

Mobile Devices

General

Lighting

Automotive

Customers



14

OS has tripled revenues since 2007 at high profitability through the cycle

OS revenue (€ mn) and EBITDA (%)

(2007 – 2017)

28%24%

17%

31%

24%

20%22%

26% 27%29% 28%

20112007 20102008 2009

1,685

20142012 2013 2015 2016 2017

520

FY

CAGR

>10%

×3more than



15

Key success factors are innovation and quality

• Strong and broad technology competency across visible and

infrared wavelengths

• Hungry for technological progress to open up new applications

• Innovation partner of choice for the who-is-who of the industry

for more than two decades

• High IP security through both own IP and large cross-licensing

networks

• Deep manufacturing and process know-how, pushing quality

standards towards zero defects

• Highly motivated and passionate teams from R&D to

manufacturing

… recognized by our

customers and the industry

OS is an innovation leader with

highest quality standards …

Global supplier Award 2017

Xiaomi smartphone

best innovation Awards



16

OS consistently outperformed the LED market

~6%

~6%

~5%

~10%

MLS

Lumileds

Nichia

OS

Seoul Semi

~12%

Change

vs. 2017

OS global market share packaged LED1)

(2012 – Q1 2018)

1) Visible LEDs only, excluding IR and UV

Source: IHS Markit, Technology Group, LED Intelligence Service 2018. Data is not an endorsement.

Global market shares Q1 2018 for packaged LED1)

(Percent of total market value)

0

2

4

6

8

10

12

2013

6.5%

7.3%

2012

6.9%

20152014

7.8%

8.6%

2016

~10%

9.6%

2017 Q1 2018



17

Megatrends drive OS future growth

Smart MobilityDigitalization Urbanization



18

Megatrends drive OS to become a comprehensive Photonics company

ApplicationsIllumination

Technology

Visualization

Today’s and

future core

Additional growth

opportunitiesPhotonics

Emitters

Integrated

Circuits Detectors Algorithms

Treatment Sensing

Optics

101110101000110

+



19

A day in 2023 supported by products from OS

Waking up with

Human Centric LightingOn the road to work with

LiDARSecurity access with

Optical Sensors

Efficiency at work with

AR/VRWorking out with

Smart CompanionsHome cooked meal with

Horticulture

6:30am 7:00am 7:30am

7:45am – 5:30pm 6:30pm 8:00pm



20

OS strategy is to build a global leader in Photonics

Photonics business

with structural growth

Global, competitive

manufacturing setup

Leader in technology

and innovation

B

C D

Attractive financial perfor-

mance through the cycle

Global leader

A



21

Illumination as a large and growing market –

Visualization, Sensing, and Treatment as growth boosters

Illumination Backlighting

(not in OS focus)

Visualization/

Sensing/

Treatment

Illumination

General Lighting

(excl. horticulture)

Illumination Premium~2%

~4%

~14%

~4%

~-3%

Overall

2008 2012 2017 20302023

Source: OS Market Model, External Market Models; 1) Market for Optoelectronic Components

CAGR

2017 – 23

Conceptual OS market size1)

A

€17 bn

€22 bn



22

Attractive growth opportunities in all Segments

• Multiple applications in mobile

and industrial Sensing

• New markets in personal health

(Vital sign monitoring)

• Accelerated growth in

Visualization applications

Industry and

Mobile Devices

• Increasing LED penetration

• µ-pixelated and intelligent

light devices Interior and Exterior

• Growing Sensing business

with Autonomous Driving

Automotive

• Increasing LED penetration

in Illumination applications

• Trend to urban and greenhouse

farming (horticulture)

General Lighting

A

Key Business Opportunities



23

Technological success is based on exceptional R&D capabilities

and a strong position in intellectual property

1,200 R&D

experts

5 R&D locations

worldwide

>10% R&D of sales

>450 PhDs

~7,400 patents2)

Value drivers1)

1) 2017; 2) Patents and patent applications

B

Innovation speed

Cross-Segment

synergies

Success factors

Technology and

design building blocks

System and

application

engineering



24

OS technology backbone – From material systems to packages

Industry and

Mobile Devices

Automotive General

Lighting

InGaN (blue to green)

AlInGaP (red and near infrared)

AlInGaAs (near infrared)

Thinfilm (Surface Emitter)

Sapphire (Volume Emitter)

Laser (Edge emitter and VCSEL)

Phosphors

Broad portfolio of LED packages

Chip

technology

Material

systems

Optical

packages

Conversion

B

LED

Die

Conversion

layer



25

“Component+” strategy expands product

portfolio and growth applications

Basic Component

Since ~2010 From ~2018

LED with increasing

commoditization

B

Advanced Component

LED with differentiating

performance features

Component+

Photonics system in

a package

Vital Sign SensorAutomotive Interior Automotive Headlamp

OSLON Black Flat

Integrated Circuit

Detector

Complex

Package

LED

EmittersOptics

Type of

component

Example

TOPLED



26

Competencies are being built up in-house

and through strategic M&A

OS technology building blocks

Journey towards Component+

Build and Buy

approach

Acquire strategic targets to

strengthen technology leadership

and market access

Enable fully integrated offerings

based on strong emitter position

Internal

OS in-house M&A

Beyond

Illumination

Visible

Laser

Thinfilm

Red

µLED

Phosphor

Thinfilm

Blue

Sapphire

Standard

Packages

IR Laser

Eviyos

Novel

Packages

IC design

Optics

…

…

…

(VCSEL)

(Quantum

Dot)

B

Continue build-up of competencies

required for Component+, e.g. in IC

design, optics, package integration

External



27

C

OS benefits from a global manufacturing

footprint for chip and package

Chip Fab

Regensburg, Germany• OS Headquarters

• Innovation center for product design,

process technology, and chip

• Chip lead plant and volume fab

Packaging Fab

Penang, Malaysia

• GL Headquarters

• Innovation center for packaging

• Packaging lead plant and

volume fab

Chip Fab

Kulim, Malaysia

• Worldwide largest 6’’ fab

• Chip sister plant and

volume fab

Packaging Fab

Wuxi, China

• Packaging sister plant

and volume fab

Footprint strategy

Since 1972

Since 2017

Since 2014Since 1978

~1,300 ~700

~6,500 ~1,800

Employees in Operations



28

Kulim ensures OS competitiveness for chips –

Successful ramp of Sapphire and Thinfilm capacity

Successful Sapphire

ramp

Ramp of Thinfilm pro-

duction for Automo-

tive as of CY19

Successful start of

Thinfilm production

Production of further

chip technologies

C



29

• Monolithic Sapphire fab

• Main usage for

General Lighting

2015 Today

• Fab with multiple chip technologies:

Sapphire and Thinfilm

• Growth enabler for all Segments

Kulim utilization concept

Strategy

Assump-

tions

• General Lighting market

as main growth driver

• Thinfilm under pressure

• Further growth of premium markets

with high margin profile

• Thinfilm with increased

competitiveness

Size

KUL 1 KUL 2 KUL 1 Extension

40% less

CAPEX

Higher DCF

and EVA

C

Value output 100% 100%

Product mix in Kulim with higher premium

share generating higher returns



30

OS has a competitive manufacturing strategy

with a strong in-house footprint and manufacturing partners

• Strong in-house

manufacturing footprint

• USP by cost and/or

performance

• Leading manufacturing

technology

• Superior process

expertise

Foundry and manufacturing

partners to

• Optimize capital efficiency

• Ensure flexibility and high

utilization of own

production

• Especially relevant

for Component+

Flexible manufacturing concept

In-house manufacturing Partnering concept

C

Regensburg

Penang

Kulim

Wuxi Foundries

Manufacturing

partners



31

OS will continue to outperform the market in the future by

1) strengthening the core and 2) expanding beyond the core

Current OS core business

Expand and defend core

business against “consumer

grade” competitors by

• Optimized performance-

cost position with

competitive footprint

• Further differentiation

through innovation

1

Basic Component Advanced Component Component+

Illumination

+ Visualization

+ Sensing

+ Treatment

OS 2015OS 2020

OS 2025

1

2

Conceptual OS strategic development

Beyond OS core business

Expand technology

leadership beyond

the core with

• In-house innovation

• Targeted M&A moves

• Flexible manufacturing

concept

2

C

A B



32

20142010

200

20162012 2018 2020+

100

150

250

300

Cyclical growth is part of a high-tech semicon business model

driven by advances in LED technology and new applications

FY

2017Headlamp (next

product gen)

Iris Scan

2014DRL2 (next product gen)

Headlamp

2020+Novel Illumination,

Sensing, Visualization

and Treatment

applications,

e.g. 3D Mobile, LiDAR,

Novel displays

2011Monitor Backlighting

Rear Light, DRL2

Growth waves with novel applications/

products driven by advances in LED technology

10% growth trend line

OSConceptual OS revenue development1 (Index, 2010 = 100)

OS drives growth with new

applications/products enabled

by advances in LED

technology

Cyclical growth:

• Above trend line

OS as innovation leader

introduces new products

• Below trend line

Others follow

D

1) Revenue adjusted for FX effects 2) Day time running light



33

OS is expected to gain market share going forward D

1.685

2017 2018e ≥2020e2019eFY

Revenue development / growth (€ mn / %)

and adjusted EBITDA margin (%)

~10%1)

through the cycle

5-6%1)

5-10%1)Growth

~4%

Assumptions: No recession or financial crisis; current fx rates (esp. EUR, USD, RMB, MYR) 1) Comparable growth

Margin 28.1% 24-25% 22-26% 23-29%



34

OS targets a through the cycle CAPEX ratio

of 12 – 14% going forward

2012 20132011 2018e2014 2015 2016 2017 2019+

12 – 14% targetthrough the cycle

Kulim, Wuxi,

Regensburg

FY

OS CAPEX development

(share of revenue)

D

Note: Through the cycle target does not include any major greenfield or infrastructure investments



35

Summary – OS strategy is to build a global leader in PhotonicsA B

C D

Photonics business with structural growth

• Solid growth in

core Illumination

• High growth

in applications

beyond Illumination

Global, competitive manufacturing setup

• Strong in-house

manufacturing

• Foundry partners for

flexibility and capital

efficiency

Leader in technology and innovation

• Strong technology

base

• Targeted extension

of required capabili-

ties in-house and

through M&A

Attractive financial performance

through the cycle

• Targeted revenue

growth rate1): ~10%

• Targeted adjusted

EBITDA margin1):

23%-29%

Global leader

Assumptions: No recession or financial crisis; current fx rates (esp. EUR, USD, RMB, MYR) 1) Through the cycle



36















OS Segment Heads




37

OS Management Team

Dr. Stefan Kampmann

Chief Executive Officer~25 yrs industry & semicon experience

Ingrid Jägering

Chief Financial Officer~30 yrs industry & semicon experience

Lothar Mergili

Chief Operating Officer>25 yrs industry & semicon experience

Dr. Ulrich Steegmüller

Chief Technology Officer>25 yrs industry & semicon experience

Wolfgang Lex

Head Automotive~35 yrs industry & semicon experience

Bodo Ischebeck

Head Industry and Mobile Devices~25 yrs industry & semicon experience

Emmanuel Dieppedalle

Head General Lighting~25 yrs industry & semicon experience



38

Industry and Mobile Devices

Bodo Ischebeck



39

Shaping the market in Industry and Mobile Devices

INDUSTRY AND MOBILE DEVICES

OS Industry and Mobile

Devices at a glance

#1 in infrared with best

in class LED and Laser

technology

#1 in projection

Great customer access

Deep application

know-how

OS shaped a variety of applications

Industry and

Mobile

Devices

Laser Illumination

Surveillance Flash Material Processing

Vital Sign Monitoring Projection

#2 position overall



40

Visualization, Sensing and Treatment are drivers for growth


3D Sensing, Vital Sign

Monitoring, High

Resolution Video Walls,

Mobile Projection

CAGR

2017 – 2023

4-6%

~15%

Overall

-2 %

(~ 0% w/o

backlighting)

0

5

10

15

2023

11.5

2017

9.1

Stable core market;

strongly declining display

backlighting

(not in OS focus)

Industry and Mobile Devices opto market1)

(€ bn)

Visualization/

Sensing/

Treatment

Illumination

B

A

Source: OS Market Model, External Market Models; 1) ~50%/50% Industry/Mobile Devices



41

Illumination applications provide a stable core market

INDUSTRY AND MOBILE DEVICES – ILLUMINATION

A

Goal

Keep #2 position

in Illumination for Industry

and Mobile Devices

Key effects

Volume growth

compensated by

price decline

Portfolio shifts

to new applica-

tions

Stable market … ... with multiple applications

BacklightingLaser

Airplane Utility vehiclesMulti Applications/

Other

Flash



42

Exciting applications beyond Illumination with large potential for growth

INDUSTRY AND MOBILE DEVICES – VISUALIZATION/SENSING/TREATMENT

Selection of growth opportunities in Industry and Mobile Devices

Starting

today

Starting

next 2+

years

B

SensingVisualization Treatment

AR/VR Headset Mobile Spectroscopy Robotic Sensing / Drones Consumer Health

Fine-pitch Video Wall Advanced 3D Sensing Vital Sign Monitoring Copper Welding

Projection Biometric Recognition Surveillance Material Processing



43

3D Sensing, video wall and projection are the main growth drivers

INDUSTRY AND MOBILE DEVICES – VISUALIZATION/SENSING/TREATMENT

Market growth in Visualization/Sensing/Treatment

(2017 – 2023)

Mark

et

gro

wth

: €

3.1

bn

3D Sensing• Biometrics and 3D images in mobile phones

• Applications in Automotive and Industry

to follow suit

Video Wall: Mini LED/µLEDTrend to higher resolution video walls requiring

Mini LED and µLED technology

Projection• Laser-based high power projectors

• Trend to mobile projection (AR/VR)

OtherVital Sign Monitoring, Spectroscopy, Material

Processing

B1

B2

B3

B




44

3D Sensing has become a key security feature for mobile phones –

And there are more applications

INDUSTRY AND MOBILE DEVICES – SENSING

B1

First mobile phones

Mobile phone security

Today

Significant opportunity for

3D Sensing in mobile phone

security applications

Many more opportunities

for 3D Sensing

• World facing mobile

phone applications for

3D images and

measurements

• Automotive

Rise of biometrics



45

OS stands out in 3D Sensing market

with the broadest light emitter portfolio offering


OS with key technologies

to deliver the best solution

for 3D Sensing

applications

OS extends strong emitter

know-how with e.g. driver

IC and optics towards

Component+

First products

already available

3D Sensing applications Emitter technologies

B1

Examples LED Edge

emitter

VCSEL2)

Mobile

Devices

Industry

Auto-

motive1)

Not used

for 3D

SensingDeep-Dive

1) Different market that shows same emitter technology 2) Vertical-cavity surface-emitting laser



46

Acquisition of VIXAR supports OS in 3D Sensing applications


Highly experienced VCSEL technology team

Offering high efficiency and high power VCSEL arrays

Broad wavelength range from 680nm to 940nm

Scalable manufacturing from Epi, Chip to Package

Custom designs to meet individual requirements

B1



47

OS has strong USPs for 3D Sensing emitter modules


Fully integrated 3D

Sensing emitter module

Required

capabilities

OS USPs

Module

assembly

Extensive internal package design

and manufacturing know-how as well

as broad network of external partners

Emitter

know-how

Comprehensive IR portfolio: Edge emitting

lasers, VCSELs and LEDs; market leader

for IR components

IC

know-how

Growing competencies in internal

driver IC know-how

B1

Example product

Optical element

e.g. micro lens array

Adhesion

Photodiode

VCSEL chip

QFN-package

Optical

capabilities

Strong in-house capabilities for design and

simulation and partners for optical element

manufacturing



48

µLEDs are likely to revolutionize the display market;

initial products in video wall

INDUSTRY AND MOBILE DEVICES – VISUALIZATION: VIDEO WALL

B2

What are µLED

displays?Key benefits

• High resolution, brightness range,

contrast, color saturation

• Possibility for free-form, transparent

and sensor-integrated displays

Red, green, blue

LED Epiwafers

Chip processing

and singulation

Pick and place

onto target substrate

Self emitting displays where small-sized (<100µm)

LED chips constitute individual sub-pixels

Challenges

Still significant technological

challenges before entering mass

market

Applications

Large variety of applications across

different markets; initial products

in video wall market



49

OS is technology leader for µLED chips today

Evolution of chip sizes

INDUSTRY AND MOBILE DEVICES – VISUALIZATION: VIDEO WALL

B2

OS with focus on

premium applications

• High resolution video wall

• Automotive

• Augmented reality

Availability of µLED mass

production after 2022

Under

development

From mid 2000sBefore 2000Availability of chip

technology at OS

µLEDMini LED“Standard” LED

100 to ~10 (2018)

<10 (2020)

<5 (2022)

<2 for monolithic (2025)

arrays

• µLED chips in all colors

• Highest efficiency and reliability

• 6 inch production

• Access to transfer technology

• Proprietary packaging technology

OS USP

in µLED

<200>200Chip size

(µm)



50

OS is market leader in projection, shaping all applications

INDUSTRY AND MOBILE DEVICES – VISUALIZATION: PROJECTION

B3

Full emitter portfolio for

projection

Market leader

in key applications

Continuous innovation

towards new solutions

(Component+)

Projection

applications

Emitter technologies

High power

blue

Laser

RGB low

power

laser

Pixelated

µLED

array

Augmented

Reality

LED

Future scope

Home Projection

Professional

Projection

Mobile

Projection

Not used



51

New trends for mobile projection and augmented reality

INDUSTRY AND MOBILE DEVICES – PROJECTION

B3

Integrated RGB

pico projection module

Required

capabilities

OS USPs

Laser chip

technology

Unique laser portfolio ranging from blue and

green to IR edge emitting lasers / red VCSELs

and in-depth production know-how

Module

assembly

Extensive internal package design and

manufacturing know-how as well as broad

network of external partners

Miniaturization in laser light sources

for mobile projection

Cover

Turning optic

Laser dies

Submounts

Substrate

Optical

capabilities

Strong in-house capabilities for design and

simulation and partners for manufacturing



52

Expected business development – Industry and Mobile Devices


2019 2020+

Market and

Industry

• Asian smartphone 3D Sensing starting in low

volume, high end models

• Growing market for video walls (indoor / outdoor)

and projection (home cinema)

• Fitness trackers and wearables provide good

growth opportunities

• Smartphones will continue to drive new

optoelectronic applications

• Augmented reality glasses seen as possible next

gen. mobile phones requiring new optoelectronics

• Trend to high resolution video walls continues

• Introduction of mobile spectroscopy and 3D vision

in robots and drones

OSRAM OS • Using Vixar to accelerate VCSEL 3D sensing

penetration in Tier1/Tier2 smartphone companies,

especially in Asia

• Introducing a Mini LED videowall product in FY19

• Leverage #1 market position in projection and vital

sign monitoring

• Opto content in mobile devices continues to

increase business opportunity

• Continued expansion of technology

(R&D/Partnering/M&A) increases breadth of offering

• Market leadership continues, supported by strong

customer access and deep application know-how

Assumptions: No recession or financial crisis; current fx rates (esp. EUR, USD, RMB, MYR)



53

Industry and Mobile Devices at a glance


IMOS competence

• #1 emitter player

(LED, VCSEL, Laser, Mini LED/µLED)

• Commitment towards Component+ with detectors,

IC and optical packaging competencies

• High manufacturing flexibility with a mix of in-house

and external manufacturing

OS ambition

OS will remain #1 – 2 market player

in all key applications

Continue to shape the market based on

• Great customer reputation and access

• Deep application know-how

Market development Growth opportunities



54

General Lighting

Emmanuel Dieppedalle



55

General Lighting portfolio includes applications

such as horticulture, street lighting and office lighting

Snapshot of key GL applications

OS General Lighting at a glance

#3 in High Power Professional

applications

#1 in horticulture

Strong customer access and

IP portfolio

End to end control of value chain

from die to package

Outdoor Facade

Street Lighting Office Lighting

Horticulture

GENERAL LIGHTING



56

General Lighting is an important market for OS –

Horticulture as a growth opportunity

GENERAL LIGHTING

CAGR

2017 – 2023

Overall

Treatment

(= Horticulture)

Illumination Illumination applications

provide a growing

core market for OS

Exciting applications in the

area of horticulture with

significant growth potential

General Lighting opto market

(€ bn)

~6%

30%+

~4%

0

2

1

4

3

5

6

2017 2023

4.3

5.9

B

A




57

Illumination market is segmented into Professional

and Consumer as well as High Power and Mid Power

GENERAL LIGHTING – ILLUMINATION

Professional

vs. Consumer

markets have different

success factors,

specifications and

competition

High

Power

Mid

Power

Consumer Professional

A

High Power vs.

Mid Power markets

defined by power

consumption and

system architecture

Residential Hospitality

Shop

Office

Portable

Architainment

Street

Industrial



58

Key success

factors

Competition

Customers

Specs

Professional and Consumer markets differ along four key dimensions


Predominantly Western manufacturers

1. Performance

2. Lifetime and Product Quality

3. Service/Price

75,000h lifetime

Professional

• Strong

• Both Western and Asian competitors

1. Price

2. Price

3. Performance

15,000h lifetime

Mostly Chinese manufacturers

• Aggressive and cost driven

• Mostly Chinese competitors

Consumer

A



59

OS will focus on the Professional market across

High Power and Mid Power applications


High

Power

Mid

Power

Consumer Professional

A

Residential Hospitality

Shop

Office

Architainment

Street

Industrial

Strategic

Focus

Portable

OSLON

(Thinfilm)

OSCONIQ

(Sapphire)



60

In High Power Professional OS already leads

the market in performance and robustness

GENERAL LIGHTING – ILLUMINATION: HIGH POWER

A

Success

differentiators

Performance

Portfolio

Lifetime

Comprehensive portfolio enabled

by IP leadership in red and blue

Technical parameters based on outdoor products which constitute majority value share of market

USP

OS is the market leader

in performance and

robustness in the High

Power Professional market

Top 3

competitor

Lumens

per watt

Best

competitor

OS

Top 3

competitor

Lifetime hrs Best

competitor

OS



61

Today we are already market leader in Europe in High Power Professional

A

Europe and Emerging Markets

Leading market

position

• Majority share across all top players

• Maintain market leadership through

continuous performance improvement

and product innovation

Recent project win

#3OS position in

overall High

Power market


OS High Power products used in

lighting the Istanbul New Airport

2016 – Today Over the next 1 – 2 years



62

High Power with a clear strategy to expand

and win market share in NAFTA and Rest of World

A


2016 – Today Over the next 1 – 2 years

NAFTA

Win with performance

Leverage performance and market

leadership in Europe and emerging

markets to expand aggressively

Rest of world

Win with performance

leadership at lower

cost

• Introduce cost innovation in

packaging (for e.g.: durable

plastic packaging)

• Leverage Thinfilm die

superiority to introduce

full palette of color options

for architainment and other

High Power applications



63

In Mid Power Professional OS is now poised

to continuously expand market share

A

Perfor-

mance

Top 3 in performance and rapidly

pushing for leadership

Already building strong position

in Mid Power based end markets

Package innovation

Western integrated player capable

of innovation across die, package

and phosphorsPerformance

Push for leadership

Cost innovation

Leverage High Power durable plastic

packages to compete on price

Product innovation

Introduce new IP (eg: Quantum

Dots) based products

GENERAL LIGHTING – ILLUMINATION: MID POWER

2016 – Today 2019 – 2020

Building fundamentals to compete Expand share through performance

and innovation

Market

presence

End-to-end

innovation



64

Many new growth opportunities exist beyond

standard Illumination business especially in horticulture

GENERAL LIGHTING

Selection of growth opportunities beyond standard Illumination in General Lighting

Starting

today

Starting

next 2+

years μ -pixelated LED Dynamic, “Follow-Me” Lighting Spatially Tunable Pixelated Light

Quantum Dots Lighting Fog-sensing Street Lights Intelligent High Bay Lighting

Package-less LEDs High Brightness Lighting Vertical Farming HorticultureHuman Centric Lighting

Smart Horticulture

Top Lighting for Greenhouses



65

Urban farming and greenhouses are underlying drivers

for the strong market growth in horticulture

Drivers for market growth

Until 2020 2020 and beyond

Vertical farming and greenhouse inter-lighting

Natural advantage for LEDs because of better

spectral match and low radiative heat damage

Top-lighting in greenhouses

Traditional lighting currently cost beneficial;

LEDs expected to catch-up in 2 – 3 years

Strong performance, comprehensive portfolio

and close customer access are critical

Cost reduction and strong performance

are critical

~4xgrowth in horticulture

LED luminaires

in next five years

B

GENERAL LIGHTING – HORTICULTURE



66

Comprehensive portfolio and strong technology innovation

drive OS market leadership in horticulture

GENERAL LIGHTING – HORTICULTURE

B

White

Blue

True Green

Yellow

Red

Far Red

Hyper Red

Deep Blue Strong technology

leadership and unique

product offerings

OS USP

Market leader and

preferred component

supplier to leading

horticulture customers

OS portfolio

Ph

oto

syn

the

tic r

ele

van

t co

lors

Low Power High PowerMid Power

Comprehensive portfolio enables OS

to mix & match components to

support customers’ unique growth

recipes

Covered by OS products

Clear performance and

cost roadmap to meet

customer requirements

No market need



67

Expected business development – General Lighting

GENERAL LIGHTING

1) Source: OS Market Model, External Market Models


2019 2020+

Market and

Industry

• Softness of General Lighting market

(outdoor/industrial) expected to continue

into the beginning of the new fiscal year

• Horticulture market expected to continue strong

growth driven by continuous efficacy improvements

and cost reduction of luminaires

• Market growth expected to continue with

CAGR of ~6%1)

• Continued strong growth of the horticulture market

driven by top lighting penetration

• Mid Power market share continues to grow

with continued need for improved quality of light

OSRAM OS Expecting to accelerate growth towards H2/FY19:

• New product introductions further

complementing the portfolio

• Entering new markets in the Professional segment

Horticulture expected with good growth in line with

seasonality

• High Power expected to continue to grow stronger

than market

• Continue to remain #1 in horticulture

• New product introductions in Mid Power enables

OS to participate in the growth opportunities



68

Success in the General Lighting markets

enables OS to bring a strong competitive focus into the marketplace

Cost Innovation

Innovative packaging solutions for cost

competitiveness are candidates for transfer

to other markets

Capacity Utilization

High volumes ensure early capacity loading

for fabs especially during qualification of

other products

R&D Speed

Innovation speed is a critical differentiator

for success in GL – lessons learned crucial

for other fast-paced markets

GENERAL LIGHTING



69

General Lighting at a glance

GENERAL LIGHTING

GL

OS competence

• Performance leadership, strong IP portfolio and

innovation focus across value chain from chip to

package

OS ambition

• Illumination: Become market leader across

professional applications by building on strong

performance, IP and customer access foundations


• Close customer access borne out of leading market

positions in High Power Professional and horticulture

• Treatment: Remain leader in horticulture and

maintain differentiation in performance, innovation and

product portfolio



70

Automotive

Wolfgang Lex



71

OS is #1 LED Automotive supplier in the world

Close connection to

>100 Automotive OEMs

High IP security through own

IP and large cross-license network

in the industry

Highly experienced team, motivated

and passionate to shape the future

OS Automotive at a glance

#1 LED Automotive supplier in the

world

Market leader in China

Head

lamp

Rear

light

Auto-

motive

Interior

AUTOMOTIVE



72

Even today, the Automotive portfolio includes a broad range of applications

Rear light

Interior lighting

Ambient lighting

Adaptive cruise control system (LiDAR)Gesture recognition

Pre crash sensing (LiDAR)

Rain sensor

LED/Laser head-

up display

Daytime running light

3D environment

detection (LiDAR)

Side view and lane detection

Ambient light sensor

Driver monitoring

Headlamp

(e.g. laser, matrix)

LED – Non visibleLED – Visible

AUTOMOTIVE



73

The Automotive business faces unique challenges;

OS has been successful in addressing these

AUTOMOTIVE

Key characteristics of the Automotive business

Quality standards

Highest quality standards across value chain

Innovation cycles

Long time to market requires sustained commitment

Price decline

OEMs and suppliers continuously faced with price pressure

Production capacity

Availability of production capacity determines

potential for volume growth

OS has successfully defended the

leading position in Automotive for

more than 25 years



74

New growth waves in Automotive every 5 years –

Visualization and Sensing will scale from 2023

Mid 90s Today

Headlamp

Day time running light

Rear

Interior

Conceptual LED waves in Automotive

AUTOMOTIVE

Market size



75

~€25

~€35+5-7% p.a.

Higher LED content per car drives structural market growth

AUTOMOTIVE

Market growth

7 – 9% p.a.

Ø LED

content

per car1

~107~95

+2% p.a.

20232017

Global light

vehicle

production

1) Includes price decline

Source: OS Market Model, External Market Models, IHS Global Sales and Production Forecast 2018

mn units



76

Transformation from pure Illumination towards digital light business

with Visualization and Sensing use cases

CAGR

2017 – 2023

Overall

Visualization/

Sensing

Illumination

7-9%

20%+

5-7%Increasing LED pene-

tration and intelligent

µPixels

New Sensing and

Visualization applications

Automotive opto market

(€ bn)

4

0

1

2

3

2.2

20232017

3.6

AUTOMOTIVE

B

A




77

Illumination market is mainly driven by the growing market for headlamps

AUTOMOTIVE – ILLUMINATION

Market growth in Illumination

(2017 – 2023)

Headlamp

Double-digit growth

by increasing penetration

Other Exterior

Market growth in mid single-digit range

Interior

Flattish Illumination market. Standardization

of discrete LEDs, growing backlighting market

Mark

et

gro

wth

: €

1.0

bn

Focus of next pages


A



78

Headlamp market will transform towards LED –

OSRAM well positioned to drive transformation

0

20

100

40

60

80

>35%

~20%

~80%

2017

<55%

>10%

2023

95

107

Standard LEDMatrix LED Traditional

Global car production by headlamp technology (units mn)

Proactive management of the

transformation towards LED with

a joint OS/SP go-to-market model

A

AUTOMOTIVE – ILLUMINATION: HEADLAMP


Energy efficiency

Higher functionality

New design options

Drivers for fast increase

of LED penetration



79

One face to the customer – OS uses go-to-market of SP

Business Unit One global salesforce Customers

• 110 Tier 1 contacts

• >100 OEM

direct contacts

>230automotive sales employees

>40Countries

OS

SP

go-to-

market

LED

Lamps and

exchangeable

LED light

sources

OEMs

Setmakers

Distributors

A




80

Headlamp will evolve from a light source

to a µ-pixelated and intelligent digital device


2010 2015 2020

A

# Pixel

1

10

100

1,000

On/off

functionality only

Multiple discrete LEDs

for pixelated headlamps

Component+: Integrated and

high # of pixels

Visualization



81

OS increases the share of wallet

by combining LED and silicon chip into one product


Micro structured

LED Chip

Intelligent

Silicon Driver Chip

Hybrid connection Scale

comparison

EVIYOS

OS value chain

• Combination of two technologies

in one Component+

• Value creation of OS beyond LED chip

A

Assembly in package Intelligent pixelated

LED Light source

>1,000 pixels



82

OS solution is an energy efficient,

scalable high resolution product for headlamps


Most important

criteria

Headlamp

technology

Energy efficiency

Scalability

Resolution

Temperature stability

EVIYOS is a high performance

automotive grade product

Energy efficient solution supports

CO2 saving and range of electric

vehicles

EVIYOS Indirect solutions

e.g. DMD1, LCD

Conclusion Fulfills all

important criteria

Potential use

in premium cars

Good fit Poor fitComparison of high resolution headlamp technologies

A

System cost

1) Digital Micromirror Device



83

Visualization and Sensing are important for both Interior and Exterior as

enabler for Autonomous Driving

AUTOMOTIVE – VISUALIZATION/SENSING

Selection of growth opportunities in Automotive Visualization and Sensing

B

Starting

today

Starting

next 5+

years Advanced car-2-driver interaction Fine-pitch and 3D Displays

LEDs behind Material/Textiles Pixelated Head-up Display

RGB Emotion Driver Monitoring

AM Interior

Pixelated Exterior Displays Light Communication

Pixelated Rear Combination Light Side Window Status Display

Pixelated Headlamp LiDAR Sensors

AM Exterior

SensingVisualization



84

Visualization and Sensing contribute equally to growth beyond Illumination

AUTOMOTIVE – VISUALIZATION/SENSING

Sensing (e.g. for Autonomous Driving)

LiDAR as largest growth driver

Opportunities in Interior Sensing

Visualization: Mini and µLEDs for

Interior and Exterior applications

Examples

• Pixelated rear combination light

with integrated Mini LED

• Head-up display or intelligent ambient lighting

Automotive market growth in Visualization/Sensing

(2017 – 2023)

B2

B1

B

Mark

et

gro

wth

: €

0.3

bn




85

# of OS Visualization products

Automotive Exterior and Interior

Today

Mini LED

µLED

µLED carries attractive growth potential

in Automotive applications in the future

AUTOMOTIVE – VISUALIZATION: PIXELATED LEDS

RGB Ambient LED

with integrated micro-driver

Head-up display

with 16x32 RGB resolution

Segmented rear combination light

2.5D or 3D

Examples

B1



86

OS is the leading LiDAR laser component player

with more than 20 design wins already today

AUTOMOTIVE – SENSING: LiDAR

OS is the worldwide market

leader for IR lasers

Only OS has already delivered over

10 mn lasers to the automotive

industry with 200 bn km

without chip failures

OS is capturing market growth

with more than 20 design

wins already

B2



87

OS has competency for all LiDAR laser technologies –

Edge emitting laser with best overall fit to requirements

AUTOMOTIVE – SENSING: LiDAR

Fit to LiDAR requirements

Output power/efficiency

Temp. stability1)

Component cost

Eye safety

Emitting area

Laser

technology

VCSEL2)Edge

emitting

laser3)

Good fit Poor fitComparison laser technology for Autonomous Driving

B2

For long-range and

short-range LiDARPotential use for short-

range LiDAR

Applications

OS has competency for

all laser technologies

required for Autonomous

Driving

Edge emitting technology

with best overall fit to all

LiDAR requirements

ConclusionBest overall fitFit for short-range

Short-range Long-range Short-range Long-range

1) With regard to power 2) Vertical-cavity surface-emitting laser 3) Typically 905 nm



88

Expected business development – Automotive

AUTOMOTIVE

2019 2020+

Market and

Industry

• Global car production growth: ~2%1)

• Chinese car production growth remains an important

variable for global market growth

• Outcome of pending tariff discussions

(US/China/EU) unclear at this point

• LED penetration in headlamp expected

to continue to grow

• Global car production growth on average ~2% p.a.1)

• Number of Level 3-5 autonomous driving cars

increasing; creating demand for more IR emitters and

sensors per car

• LED penetration in headlamp expected to grow to >45%

• Interior lighting as additional growth driver in a

“shared and electrified” auto environment

OSRAM OS • Current short-term visibility limited due

to market and industry dynamics

• Likely that typical revenue growth patterns of H2>H1

might be slightly more pronounced in FY19

• Introduction of new products for Exterior and Interior

• Increasing LED penetration and advanced solutions

(e.g. pixelated matrix headlamp) drive growth in

Headlamp

• OS with strong position in sensing applications

(e.g. LiDAR)

• Interior as additional growth opportunity

• Market leadership continues, supported by strong

IP position

1) IHS LV production FC August 2018




89

Automotive at a glance

AUTOMOTIVE

AMOS competence

• Leading in product, innovation and IP portfolio

• Strong regional setup incl. China

• Strong quality and manufacturing footprint

• Most experienced team in the industry shaping

the future of Automotive lighting

OS ambition


Transformation from pure Illumination into

Photonics

Continue to be the strong #1 and partner

of choice for the Automotive industry



90















OS Segment Heads




91

Global, competitive manufacturing setup

Photonics business with structural growth

Leader in technology and innovation

Key take-aways

Attractive financial performance

through the cycle



92

Update implementation of new revenue recognition standard IFRS 15

as per Fiscal Year 2019

• In line with our earlier communication in our Annual Report 2017 (Chapter B.6.2.) the Company will implement IFRS 15

as of October 1st, 2018, the beginning of its FY19

• Also in line with earlier communication the Company has opted to choose for the ´modified approach´ of

implementation for the new revenue standard. Given this choice the Company´s financials for FY18 need not to be

adjusted for reasons of comparison.

• As a result of an impact analysis we concluded that IFRS will lead to a change in timing of revenue recognition

mainly for the following themes: transport, consignment warehouses and customized manufacturing

• The Company estimates that the cumulative effect resulting from the timing shift of revenue recognition for the above

mentioned topics can amount to approximately 1% of OSRAM Licht AG´s full year revenue

• This timing effect is expected to be fully reflected in its cumulative entirety during the course of Q1/FY19

Documents

2018/09/18 · 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’scontrol