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www.osram.com
OSRAM Analyst Day 2016
Dr. Olaf Berlien | January 2016Light is OSRAM
20.01 17:00
OSRAM Analyst Day 20162
This presentation may contain forward-looking statements that are subject to risks and uncertainties,including those pertaining to the anticipated benefits to be realized from the proposals describedherein. Forward-looking statements may include, in particular, statements about future events, futurefinancial performance, plans, strategies, expectations, prospects, competitive environment, regulationand supply and demand. OSRAM Licht AG has based these forward-looking statements on its viewsand assumptions with respect to future events and financial performance. Actual financial perfor-mance could differ materially from that projected in the forward-looking statements due to the inherentuncertainty of estimates, forecasts and projections, and financial performance may be better or worsethan 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 noticeand OSRAM Licht AG does not undertake any duty to update the forward-looking statements, and theestimates and assumptions associated with them, except to the extent required by applicable lawsand regulations.
Due to rounding, numbers presented throughout this and other documents may not add up preciselyto the totals provided and percentages may not precisely reflect the absolute figures.
Safe Harbor Statement
OSRAM Analyst Day 20163
FY 2015 has been very successful for OSRAM
18%
Dec 30th
38.8
Jan 1st
32.8
Share price development 2015 (in €)Reported Free Cash Flow (in €m)
567449
26.3%
20152014
Adjusted EBITA (in €m)Revenue FY (in €bn)
8.4%
2015
5.6
2014
5.1
Nom. +8.4%Comp. -1.0%
in % of revenue2014 8.7%2015 10.2%
1) Closing price Jan 1st and Dec 30th
1)
299216
2014 2015
38%
OSRAM Analyst Day 20164
Enhanced flexibility enabling clear roadmap for success
Decision to carve-out Lamps business
In implementationApril2015
Decision to sell Felco shares for > € 350 mio. Closing achieved in Dec
September2015
Three pillar strategy to develop OSRAM In implementation
November2015
2020 5.1.5 Continuous and sustainable value creation
Decision to reorganize OSRAM as a holding company with clear, decentralized mgmt. structures
FinalizedSpring2015
OSRAM Analyst Day 20165
Initial situationBuilding on strong positions across our markets
Specialty Lighting (SP)
Lighting Solutions& Services (LSS)
Opto Semicon-ductors(OS)
Lamps (LP)
1) Automotive2) Luminaires in Europe, Source CSIL
Market Position
Performance 2015
#1
#5
#2
#2 Carve-out
• Solid growth• High profitability
• In transfor-mation process
46%54%
w/Lamps
Traditional technology
LED-based technology
45%55%
w/o Lamps
OSRAM 2015 revenue sharea LED based company
1)
2)
• Strong growth• High profitability
OSRAM Analyst Day 20166
Right time to proactively position for the future
Specialty Lighting (SP)
Lighting Solutions& Services (LSS)
Opto Semicon-ductors(OS)
• Technical transition to LED• Importance of electronics and software on higher integrated level• Market stagnation of traditional technologies• Growing aftermarket
• Luminaires market with significant growth• Transition from product market to solutions and services• Increasing importance of electronics and software• Integration of connectivity and Light Management features
• Growing importance of „volume emitter“ technology• Growing importance of economies of scale• Consolidation of weaker players expected
Future Challenges / Opportunities
Actions required to secure/ expand current position !
Performance 2015
OSRAM Analyst Day 20167
Target markets
• Growth, profit pool, extent of cyclicality, industry ROCE
• Competitive dynamics (consolidation, entrance of new market players, …)
• Differentiation potential by technology
Capabilities
• Experience with relevant business models
• Customer intimacy
• Technological basis and expertise
• Necessary resources
OSRAMStrategy
2020
TechnologyGrowth
Sustainable value
Rigorous and detailed strategy assessment process
Value
• EBITA margin
• Return on capital employed
• Earnings per share
• Total shareholder return
Stakeholders
• Fulfilment of customers needs
• Long-term interest of our shareholders
• Employee identification and motivation
OSRAM Analyst Day 20168
A diversified strategy based on “3 pillars”
CAGR / market size
Strategic Review
Market position
Profitability
Technology
Competitiveadvantage
2 31
€
OSRAM Licht AG
OSSP LSS
ExpandExpand Expand /new set-up
Worldwide #1 in Automotive
Catch up attractive market
Strong worldwide #2 in LED
OSRAM Analyst Day 20169
OSRAM – clear strategy for a technology player with strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“Innovation and Growth
Initiative
“5.1.5“ in 2020
OSRAM Analyst Day 201610
Specialty Lighting: Automotive market overviewLED-based automotive market with strong growth
SP: Automotive exterior OEM light vehicles light source and controls market 1)
in EUR bn
Halogen
HID (Xenon) Auxiliary 2)
LED
Ford F150 with OSRAM LED Module
Automotive
More than 200 light sources in one verhicle
Laser OLED
Source: OSRAM data, Frost & Sullivan
3.2
4.9
2020
+9%CAGR
2015
Traditional
LED based
1) Exterior market excluding motorcycles and heavy vehicles2) e.g. interior and exterior signal lighting
SP LSS OS
OSRAM Analyst Day 201611
Specialty Lighting markets, in EUR bn
Specialty Lighting: Professional & Industrial Appli cations (PIA)Broad portfolio to capture significant growth poten tial
Ligh
t sou
rce
Ent
erta
inm
ent -
fixtu
res
2020
1.7+5%
CARG
2015
1.3
Source: OSRAM data
Professional and industrial applications
About 300 different sub-applications
Entertainment Projection
Medical Industry2015
+7%CAGR
2020
3.44.8
Studio/Film
Effect/Show
DJ/Club
Architainment
Theater
TV
SP LSS OS
LED based
Traditional
OSRAM Analyst Day 201612
Specialty Lighting:Expand leading positions in Automotive and PIA
Automotive
• Expand in LED-modules and Matrix-solutions
• Invest in new technologies - Laser and OLED
• Forward integration with focus on LED and electronics
• Exploit strong and profitable position in aftermarket
Professional & Industrial Applications (PIA)
• Extend profitable niche business (e.g. entertainment)
• Enter/Expand new niches
• Selective forward integration (e.g. entertainment fixtures)
Selective M&A activities under investigation to strengthen existing business fields
Automotive
Professional & Industrial Applications
2015 2020
1.9
SP revenue plan (organic)in EUR bn
SP LSS OS
© Ralph Larmann
OSRAM Analyst Day 201613
Lighting Solutions & Systems (LSS): Strong growth in luminaires, service and solution m arkets
SSL
Source: OSRAM data, Frost & Sullivan
LS: Professional luminaires and solution product ma rket
DS: Professional components for General Illuminatio n
20202015
55
43
+5%CAGR
20202015
20.5
12.7
+10%CAGR
in EUR bn
in EUR bn
LED modules
Light Management Systems
General Illumination control gear
Trad. control gear
LED based
Traditional
SP LSS OS
DS
LS
LSS
Electroniccontrol gears
LED modules
Light Manag.Systems
Sports&Industry
Office&Shops
Streetlighting
OSRAM Analyst Day 201614
Lighting Solutions & Systems: Catch up in a growing and profitable market
• “LS 800” program running for lighting solutions
• Expand full-solutions offering including services
• Maintain good momentum for light controls and LED modules
• Strengthen connectivity know-how and innovative system architecture
• Increase of electronics and system competence
Organic and inorganic growth to further strengthen technological
portfolio
2015 2020
0.9
LSS revenue plan (organic)
Smart connected light, e.g. street lighting
Parking Mgmt.
Navigation
Local Service/
Information
in EUR bn
Promotion
SP LSS OS
OSRAM Analyst Day 201615
OS is well positioned in Infrared, Auto and Industr y; General Lighting to be the next growth opportunity
2.53.4
4.3
8.5
20.9
2020
Auto
Industry
Infrared (IR1))
+3.9% p.a.
General Lighting 5.4
17.3
2015
1.8
2.9
3.7
4.2
1.4
Consumerincl. Backlighting
Market CAGR[2015 to 2020]
OS position 2015
2.6%
4.0%
-4.0%
3.3%
9.5%
#2 player
#1 player
selective
#2 player
So far not heavily addressed
Market size [€ bn]
Source: IHS
Limited additional growth potential
Next growth opportunity for OS
1) IR = Infrared emitters & detectors + infrared, blue and green laser applications
SP LSS OS
OSRAM Analyst Day 201616
OS: The technology shift from surface to volume emitters is happening in all segments
Application segment
Technology shift complete
Technology shift in progress
Surface emitter domi-nant for next ~5 years
Industry
SSL
• e.g. buttons
• e.g. backlighting
• e.g. signs and signals
• e.g. retrofit
• e.g. day-time running light
• e.g. white goods
• e.g. street lighting
• e.g. headlamps
• e.g. mobile flash
• e.g. projection
Automotive
Consumer
Volume emitter(sapphire)
Surface emitter(thin film)
Si = Silicon Al2O3 = Sapphire example
Technologies
SP LSS OS
OSRAM Analyst Day 201617
OS: The combination of leading in technology, scale and factor costs gives us the right to win
Best factor costs and right
economies of scale
“Mega“-sites forboth FE und BE in a
low-cost-location
Kulim(Malaysia)
Wuxi + Penang(China + Malaysia)
Front-end(FE)
Back-end(BE)
Leading in technology
• Best in class performance in
• Chip size & Wafer size
• Phosphor efficiency
• Deep understanding of technology
1. Technology 2. Scale and 3. Factor Cost
SP LSS OS
Best Chinese Player
~6%
Best Taiwanese
Player
~17%
Worldwide cost leadership
+
The right to win
Estimated chip costs advantage of OSRAM by 2020 vs.:
OSRAM Analyst Day 201618
OS: Modular phased investment strategyPhase I with 370 Mio. EUR
1. Implementation Risk- Top Management attention- Monthly Board reviews- Risk control on corporate level- Dedicated project team- External consultants and assessors- Further scale up of sales & marketing resources
2. Market Risk Management - Modular Equipment ramp-up- Continuous monitoring of market landscape- Conservative price decline expectations
Risk Management
- Building- Equipment
Phase 1� Implement in 2016/17� €370 mio. invest
- In planningPhase 2
- In planningPhase 3
Investment decisions benchmarked against ambitious ROCE hurdle rates
SP LSS OS
OSRAM Analyst Day 201619
OS: Build on strong worldwide #2 position
• Expand existing profitable niche business
• Complete technology portfolio (surface & volume emitter)
• Market leading chip competence for General Illumination (GI)
• Leverage synergies in scale, scope & competence
• Realize profitable double-digit growth
Balanced portfolioin niche and volume business
to gain market share and sustain profitability
2020
1.3
2015
OS revenue plan (organic)
Leading position anysegment we compete
#1 Automotive
#2 Industry
#2 Infrared / Laser
Top position - LEDs for GI
+
in EUR bn
SP LSS OS
OSRAM Analyst Day 201620
OSRAM in 2020: Technology player with strong specialized businesses
OS revenue share, by applications; OSRAM revenue share by business unit
~85%
~15%
~65%
~35%
Opto 2015 Opto 2020
LED for GI
Automotive / Industry / Consumer1)
~15%
SP
LSS
LED for GI
OS
OSRAM 2020
1) Mobile flash, backlighting, automotive signalling, automotive front lighting, automotive interior, infrared illumination, projection, stage lighting, video wall, white goods
SP LSS OS
OSRAM Analyst Day 201621
OSRAM – clear strategy for a technology player with strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“Innovation and Growth
Initiative
“5.1.5“ in 2020
OSRAM Analyst Day 201622
Innovation and growth initiative “Diamond” provides the backbone for technology differentiation
Innovation
“Diamond“ – innovation and growth initiative
Growth
• Systematic Research & Development of smart technologies, e.g. beacons
• Technology scouting
• We create markets (e.g. automotive laser light)
• We conquer leading market positions
OSRAM Analyst Day 201623
Increasing R&D spending to drive future technological innovation
R&D budget8% p.a.1)
(of revenue)
Intellectual Property
~600 patents p.a.~18,000 total~2 patents per day
Selected OSRAM TOP patent fields
>6,600 patents >2,700 patents >1,000 patents
OSEpitaxy,
Chip concepts, conversion
CIInnoventure, Lightmgmt.,
LED modules
SPAutomotive SSL,
Laser
Demographic Change
Urbanization DigitalizationSafety &Security
MobilityInfrastructure
>1,700 patents
OLEDEncapsulation,
SSL, Display
1) on average until 2020
OSRAM Analyst Day 201624
R&D spend will increase across all 3 pillars
20202015 2016
LSS
OS
+22%
SP
Central
+4%CAGR
8% of sales for R&D in average p.a. until 2020
Growth rate R&D spending (illustrative)1)• One time effect in 2016 to push special projects
• All 3 segments will be supported
• R&D spending necessary to conquer leading market positions in attractive markets
• State of the art innovation process established to secure value creation of R&D
1) OSRAM w/o Lamps, before special items
OSRAM Analyst Day 201625
Smart & digital innovation fields
SMARTCITY
SMART BUILDINGS
ADVANCED MATERIALS AND
OPTIC CONCEPTS
SENSORS AND SYSTEMS FOR
SMART LIGHTING
WIRELESS COMMUNICATION AND
LIGHTING
HIGH PERFORMANCE COMPONENTS
OSRAM Analyst Day 201626
OSRAM – clear strategy for a technology player with strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“Innovation and Growth
Initiative
“5.1.5“ in 2020
OSRAM Analyst Day 201627
Significant growth across all segments from 2015 to 2020
OS
1.3
LSS
0.9
SP
1.9
20202015 OS
2020
5.0 – 5.5
2015Pro Forma
3.6
SP
LSS
OSRAM(revenue in bn €)Business Segments
(revenue in bn €)
New holding company structure enables constant review of performance of each pillar and ability to take appropriate portfolio measures at any time
OSRAM Analyst Day 201628
Revenue, in bn €
EBITDA, in bn €
EPS, in €
5.65.1
0.5570.560
5.0
1.81.6
20142015
2020
20142015
2020
20142015
20202)
5.0 – 5.5
0.9 – 1,0
Lamps
Ambition 2020 1
A plan that will deliver real shareholder value by 2020
5
1
51) Presuming stable economic environment incl. no servere anomaly of semiconductor cycle and stable FX, without lamps2) Including share buy back
OSRAM Analyst Day 201629
Conclusion:The right plan to deliver on our goals
This is the right time to implement the new 3 pilla rs strategy in order to stay ahead of the market
1.
The investments across all three pillars deliver th e best overall outcome on long term for the shareholders
2.
Balanced portfolio over three pillars3.
www.osram.com
OSRAM Analyst Day 2016Opto Semiconductors
Aldo Kamper | January 2016 Light is OSRAM
OSRAM Analyst Day 201631
OS is a strong player in all its marketsand a key profit generator for Osram
Outdoor Lighting Residential LightingVideo Walls Projection
Bio Monitoring Handsets / Monitors Forward Lighting Safety & Comfort
1) Percent of total OS Revenues in FY 2014/15, including both visible and infrared products
Industry #2 player, ~25% of Revenues1) General Lighting ~15% of Revenues1)
Consumer ~10% of Revenues1)Automotive #1 player, ~50% of Revenues1)
OSRAM Analyst Day 201632
Bonding Conversion1) Sawing, testing
Front-end Process
Back-end Process
Our integrated business model covers the entire LED value chain, allowing end-to-end optimization
Substrate etc. Chip processing
Epitaxy Coating & structuring
Singulation, testing
Broadest technology base in the industry, all colors from infrared to visible light, applied in LE D & Laser
LED chips
Phosphor Processing Packaged LED
1) In order to make a white LED, it is common to convert blue LEDs with phosphors to white LEDs
OSRAM Analyst Day 201633
Building on strength: OS is the #2 global player fo r over 10 years, continuously delivering healthy margins
Source: IHS 2015
1,125
17%16%
’05
452
12%
’13
1,018
12%
743
22%
’09
468
2%
’08
529
14%
’07
519
18%
’06
501
14%
1,293
’15
18%
899
’12
8%
’10 ’14’11
858
3%
MLS 3%
Avago
Cree
Everlight
Samsung
5%
5%Lumileds
4%
4%
SSC
4%
LG Innotek
11%Nichia
Osram Opto 7%
6%
Fiscal Year
Average 14%
Source: Osram
OS Revenue (€ m) and EBITA margin (2005-2015)
Market share in optoelectronic components (2014)
Market size € 16.2 bn
(2014)
OSRAM Analyst Day 201634
OS is well positioned in Infrared, Auto and Industr y; General Lighting to be the next growth opportunity for OS
Source: IHS 20151) IR = Infrared emitters and detectors going into consumer, automotive and industry applications
2.53.4
4.3
8.5
20.9
2020
Auto
Industry
Infrared (IR1))
General Lighting 5.4
17.3
2015
1.8
2.9
3.7
4.2
1.4
Consumerincl. Backlighting
Market CAGR[2015 to 2020]
OS Position[2015]
2.6%
4.0%
-4.0%
3.3%
9.5%
#2 player
#1 player
selective
#2 player
So far not heavilyaddressed
Market size [€ bn]
Limited additional growth potential
Next growth opportunity for OS
3.9%
OSRAM Analyst Day 201635
OS core technology (surface emitter) is challenged by lower cost technology (volume emitter) in several applica tions
2015
Volume emitter
Share of volume and surface emitter in total LED ma rket
– Good cost efficiency helped sapphire to become mainstream technology for the General Lighting market
– Performance of volume emitter increasingly “good enough” for “classical” surface emitter applications, e.g. street lighting
– Surface emitting technology however still a valuable differentiator in applications that need specific characteristics for the optical system (e.g. projection, stage lighting, headlamps, µAFS)
Surfaceemitter(thin film)
Volume emitter(sapphire)
2020
Surfaceemitter
Volume emitter
Surfaceemitter
Si = Silicon
Al2O3 = Sapphire
Source: IHS 2015, Osram
OSRAM Analyst Day 201636
Investment in General Lighting is increasingly valu e accretive - generating up to €200m annually by 2020
With this investment, OS can deliver >15% EBITA mar gin over the cycle
Value levers
Profitability of the General Lighting opportunity
General Lighting synergy benefits with niche businesses
Long term sustainable success
+
=
Financial impact by 2020
€ 50-100 million EBITA per year once new fab is fully up and running
€ 50-100 million EBITA of synergies per year
Over the cycle: OS EBITA margin >15%
+
=
OSRAM Analyst Day 201637
Timing of our GL investment is right: Overcapacity will be sharply reduced by the time our fab goes online
Industry needs to invest ~5 bn € until 2020 to meet i ncreasing demand
Source: IHS Dec 2015 (already includes OS‘ announced investments in Kulim)
0%
5%
10%
15%
20%
25%350,000
300,000
50,000
100,000
200,000
250,000
150,000
0
2015 2016 20202018 20192017
LED demand Surplus
LED supply
Billion sq. mils of LED Surplus
Low
over
supp
ly
OSRAM Analyst Day 201638
Up to 10% chip cost advantage expected over largest fab in China by 2020
Competitive against the best, better than the rest
OS will reach cost leadership through technology, scale and factor costs once Kulim fab is up & runni ng
3%
5%
Effi-ciency2)
Wafer Size1)
-5%
Subsidy3)Factor costs
9%
Best Taiwanese
player
17%
Scale
5%
Subsidy3)
5%
Best Chinese player
6%
6%
-10%
0%
Effi-ciency2)
Scale Factor costs
5%
Wafer Size1)
Estimates based on OS model1) Incl. tool and process optimization
2) On chip- and phosphor level3) Advantage vs. OS subsidies
1 2 3 4 1 2 3 4
Between 10 to 20% chip cost advantage expected over best Taiwanese fab by 2020
OSRAM Analyst Day 201639
OS cost advantages in detail (1/2)
Estimated cost advantage of OS Kulim Fab due to sca le versus:
0 to 5%5 to 10%
> 10%
35% 25% 40%
Cum. % of worldwide LED capacity in these fabs
Largest Fabs 1)
Large Fabs 1)
Other Fabs 1)
Source: Osram Estimates1) „Largest Fabs“ = Fabs with more than 10 kWSPW 6“ equivalent,
„Large Fabs“ = 5 to 10 kWSPW, „Other Fabs“ with less than 5 kWSPW
• 6” wafers have 2.2x more chips than 4” wafers and 9x more chips than 2” wafers
• Processing costs (besides Epitaxy) and wafer handling are little depending on wafer size but mostly on wafer numbers, resulting in cost advantage of 6” vs. 4”
• Newest and homogeneous state-of-the-art equipment optimized for large scale production
Economies of scale (2020 view)
Wafer size & optimized equipment and processes
1
2
OS Kulim fab with relevant costadvantage due to larger scale versus ~2/3 of the worldwide
LED capacity in 2020
OS‘ 6“ technology with leading processing costs
OSRAM Analyst Day 201640
OS cost advantages in detail (2/2)
Location-specific relative costs per wafer (in 2020)
100%
111%109%106%
Competitor 1(today)
Competitor 2(today)
OSRAM(today)
OSRAM2016
~105
• Higher chip and phosphor efficiency result in smaller chip sizes for same brightness, i.e. in lower chip costs
• 1% higher efficiency equals to 3 ~ 5% lower chip costs• OS with technological advantage due to superior R&D spending,
highly experienced team and strong IP
~100 ~100> ~105
Kulim Malaysia China Taiwan Korea
Efficiency vs. best competitors for volume emitters [%]:
Chip and phosphor efficiency
Factor costs
3
4
OS is reaching quickly best-in-classefficiencies, enabling smaller
– and thereby cheaper – chips forsame brightness levels
OS benefits from lower factor costs in Kulim vs. fabs of our
main competitors
OSRAM Analyst Day 201641
Only OS and one other player have the necessary sca le in niche businesses to realize large synergy benefits
Niche revenues 1) of integrated players[2014]
Synergy Potential: € 50 – 100mEBITA annually
General Lighting synergy bene-fits for OS niche businesses
• Chip volume all in one fab• Operational and purchasing
synergies lowering surface emitter chip costs
• R&D synergies• Overhead cost degression• Use of volume emitter chips in
industry and automotive applications
E FOS B C DA
Source: OS Analysis based on IHS 20151) Sum of automotive and industry revenues
OSRAM Analyst Day 201642
OS is strong enough to accelerate General Lighting invest without diminishing the drive for niche businesses…
FY’11-FY’15 FY’16-FY’20
∑ Investment in Niche Businesses
∑ Investment in General Lighting
CAPEX
R&DSum of 5 years period [in € bn]
~ €½ bn higher invest in Niche
€1+ bn higher invest in General Lighting
… while still generating significant FCF over the pe riod
OSRAM Analyst Day 201643
OS has a proven track record of building and operat ing large fabs in Asia
Regensburg, Germany
Wuxi, China
Penang, Malaysia
Kulim, Malaysia
~ 2,000 Employees– OS HQ– Innovation fab for all
technologies– R&D Center– Since 1972
~ 1,400 Employees– Greenfield LED back-
end plant for assembly of visible and Infrared LEDs
– Since late 2014
~ 5,600 Employees– LED chips and
components – General Lighting HQ– R&D center for LED
assembly– Since 1978 Packaging– Since 2010 Chip
Production
Goal: ~1,500 Employees– Greenfield LED front-
end plant for epitaxy and chip production
– Worldwide largest 6’’ fab
– From 2017
OSRAM Analyst Day 201644
Start of Construction Module 1
Ready for Equipment Module 1
Start of Construction Module 2
RampModule 1
Ready for Equipment Module 2
RampModule 2
Q2-16 Q3-17 Q4-17 Q3-18 Q1-19Q2-17Timeline
More facts about the new LED fab in Kulim
Scaling in 3 steps to >20k WSPW 6” by 2020
• Primarily for volume emitters• Located in Kulim Hi-Tech Park, next to numerous
technology and semiconductors fabs, e.g. Infineon• ~40km to existing Penang plant and headquarters of
OS General Lighting business segment
Total investment: € 1bn until FY20 (thereof € 370m in the first step)
Capacity (WSPW)
6k 13k 20k
OSRAM Analyst Day 201645
’05 ’14 ’15 ’20’07 ’10 ’12’11’08 ’09 ’13’06 ’09’08’05 ’06 ’07 ’15’12 ’13 ’14’10 ’11 ’20
The General Lighting investment enables OS to conti nue to deliver strong growth and healthy profit margins
OS Revenues OS EBITA Margin[% of Revenues]
13%
Fiscal Year Fiscal Year
17%
Assumes no major changes in the general economic situation
0%
With General Lighting invest
ILLUSTRATIVE
13%
17%
OS revenues to rapidly grow in bothNiche and General Lighting, benefiting from
improved over-all competitiveness
Improved General Lighting margins, combined withthe synergy impact of the investment on existingNiche business results in EBITA margins in the
~15% range once fab is up & running
OSRAM Analyst Day 201646
In summary, OS is uniquely positioned to be an industry winner
Financial strength to build scale –Very few others could make this investment
1
Execution experience to deliver sustainable growth –Long history of competing and operating in Asia
2
Low cost leadership gives competitive advantage –Technology, scale and factor costs combine ideally
3
Ability to realize synergies is a point of differen tiation –Our business mix means we can deliver synergy benefits that others cannot
4
It’s right, it’s viable and it will work for OSRAM
OSRAM Analyst Day 201647
This presentation contains certain non-IFRS measures. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capitalexpenditure as percentage of revenue and other operating income, net financial debt, net working capital and certain other itemsincluded herein are not recognized measures in accordance with IFRS and should not be considered as an alternative to theapplicable IFRS measures. We have provided these measures and other information in this presentation because we believe theyprovide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBIT,EBITA margin, capital expenditure, capital expenditure as percentage of revenue 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), cashflows from operating activities, revenue or any other performance measures derived in accordance with IFRS as measures ofoperating performance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure,capital expenditure as percentage of revenue and other operating income, net financial debt and net working capital haveimportant limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results asreported under IFRS.
Certain numerical data, financial information and market data (including percentages) in this presentation have been roundedaccording to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or ifnumbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying(unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figuresmay not add up exactly to the totals contained in the respective tables and charts.
Disclaimer