Ams-osram Ag · SIX:AMS
Ams-osram — Q3 2024 Earnings Presentation
50 slides from Ams-osram's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Results Investor Presentation
Sense the power of light Third Quarter 2024 Results Investor Presentation Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 7 November 2024 1
Slide 2: ams OSRAM at a glance
ams OSRAM at a glance A company in transition to structural growth in automotive, industrial/medical & selected consumer applications with 110+ years of combined company history Our segments & technologies Revenues by application1 & Market positions Semiconductors Automotive & Automotive: Sensors &
Slide 3: Our segments - overview of business units and applications
Our segments - overview of business units and applications AUT = Automotive, I&M = Industrial & Medical, CON = Consumer Opto Semiconductors (OS) CMOS Sensors & ASICs (CSA) Automotive & Specialty Lamps FY23 ~1.4 bn€ ~1.0 bn€ ~1.1 bn€ AUT ~6% In-Cabin Sensing I&M Forward Lighting (FWL) High pixelated
Slide 4: Q3/24: solid revenues in a difficult market
Q3/24: solid revenues in a difficult market All figures in EURm / % of revenues Total revenues EBITDA, EBITDA margin (adj.)2) EBIT, EBIT margin (adj.)2) ø EUR/USD 1.09 1.08 1.09 1.08 1.10 16.5% 16.5% 14.6% 18.8% -2% YoY 17.7% like-for-like1) 7.9% 6.9% 5.2% 6.8% 9.3% -3% +4% +23% +8% +12% 904 +27% 1
Slide 5: Target model: Semiconductor business to grow 6% to 10% through cycle until 2027
Target model: Semiconductor business to grow 6% to 10% through cycle until 2027 Evolution of target operating model to focus on semi growth and reflect current market environment and semi-cycle Growth model Over-the-cycle targets Semiconductor - Revenues Key semi growth elements ~€200m non-core 1. A
Slide 6: ams OSRAM holds leading positions in its core semiconductor & lamps markets
ams OSRAM holds leading positions in its core semiconductor & lamps markets Leverage strong positions with focused core portfolio and commitment to Automotive, Industrial, Medical markets #2 in LED #1 in Light Sensors #1 in traditional Auto lamps/bulbs LED Suppliers by 2023(E) market share Light Sen
Slide 7: Q2/24 design-win update: EVIYOS ramping and traction continuing
Q2/24 design-win update: EVIYOS ramping and traction continuing Ams OSRAM ideally position for emerging pixelated headlight market EVIYOS high-pixelated forward lighting … ✓ ✓ Source: Trendforce, July 2024 2023 2024 2025 - >450 m€ LTV* design wins to date - Continued ramp ensures ams OSRAM average B
Slide 8: ams OSRAM is at the forefront of developing the LiDAR automotive market
ams OSRAM is at the forefront of developing the LiDAR automotive market ams OSRAM is a key partner of Robosense – a Chinese leader in automotive LIDAR modules Deep, collaborative industry partnerships Key Trends: • Autonomous driving • Safety • Traffic jam assistant • Highway pilot emerging • Mobili
Slide 9: Q3/24 design-win momentum continues
Q3/24 design-win momentum continues Design-wins stand at EUR 3.5bn (life-time-value) year-to-date Automotive: Classic FWL >150m€ LTV1) design wins Automotive/Medical: Temp & Position Sensors >50m€ LTV1) design wins Industrial: Professional lighting >75m€ LTV1) design wins Consumer: ALS/PROX sensing
Slide 10: Strong design-win base underpins structural growth through BoM expansion
Strong design-win base underpins structural growth through BoM expansion Winning new business across the board LTV estimates* LTV estimates* EVIYOS – 25k pixel >450 m€ Automotive Temp ~50 m€ in Forward LED & Position Sensors lighting to date Q2 iRGB – intelligent, >100 m€ Industrial: Sensor ~100 m€
Slide 11: Q3 YTD FY 2024 – strong design-win traction continuing
Q3 YTD FY 2024 – strong design-win traction continuing Structural growth from the profitable core underpinned by unabated design-win momentum Industrial Sensor ICs Colored ambient lighting Industrial dToF Sensors – iRGB (Automotive) High Pixelated Forward Lighting (EVIYOS®) Professional lighting ~3.
Slide 12: Re-establish-the-Base implementation ahead of schedule
Re-establish-the-Base implementation ahead of schedule Cost savings reached End-of-FY24 implementation target of EUR ~75m already in Q3/24 Realized savings to date Set-up & Infrastructure - BU end-to-end responsibility established - Structural adjustments implemented to a in EURm significant extent
Slide 13: Upsizing Re-establish-the-Base efficiency program by EUR 75m
Upsizing Re-establish-the-Base efficiency program by EUR 75m Safeguarding profitability in view of market uncertainty and working towards industry benchmark structures • Further efficiency & savings measures Run-rate savings at end of period vs. 2023 reference1) initiated to be effective by End-of-2
Slide 14: Well diversified revenue streams
Well diversified revenue streams Strong exposure to structural growth markets in automotive, industrial, medical and selected consumer applications End market split Application split (estimates) (FY 2023) (FY 2022/23, core portfolio*) Consumer L&S Automotive Lamps Automotive Semi Emitter 19% 25% 23%
Slide 15: Benefitting from globally balanced revenue base and healthy customer split
Benefitting from globally balanced revenue base and healthy customer split Strong regional presence and very balanced customer portfolio Revenues by region Top customers split (FY 2023) (FY 2023) Top 3 customers Americas 21% 19% APAC 50% Top 4-10 customers 15% Other customers 66% 29% EMEA Total: mor
Slide 16: Business outlook
Business outlook Q4 2024 Guidance FY 2024 comments FY 2025 comments − Revenue EUR 810m – 910m − CAPEX expected − In Q1/FY25, weak revenues to land between EUR 500m expected − Adj. EBITDA 15% - 18% to 550m − Full FY25, revenues in line − Based on assumption − FY24 FCF - excluding net with evolved tar
Slide 17: Summary Q3
Summary Q3 Summary Operational update: - Solid Q3 revenue and profitability supported by NRE payments - Semis: consumer segment compensated automotive & industrial weakness - Semis – core portfolio: estimated mid-single-digit yoy growth - Semis: continued design-win momentum, EUR 3.5bn ytd - Strong,
Slide 18: Status Update on revision of microLED strategy
Sense the power of light Status Update on revision of microLED strategy 18
Slide 19: Q3/24 µLED: cost reduction on track, one-offs lower
Q3/24 µLED: cost reduction on track, one-offs lower R&D revision progressing A. Previous microLED development: - R&D re-assigned to core automotive and other LED development - R&D re-assigned to NRE funded technology development - R&D & factory personnel reduced B. 8" Kulim factory: - Process of fin
Slide 20: Revised microLED strategy leads to strengthened free cash flow & adj. EBIT
Revised microLED strategy leads to strengthened free cash flow & adj. EBIT Cancellation of microLED cornerstone project leads to acceleration of adj. EBIT and cash flow improvements in 2025 Cash Flow* Adj. EBIT* 2024 2024 2025 adj. EBIT capitalization funding gross cost adj. EBIT savings >100 m€ 202
Slide 21: Semiconductors: Automotive Growth Drivers
Sense the power of light Semiconductors: Automotive Growth Drivers 21
Slide 22: Offering full technology range and innovation leadership in automotive emitters and light sensors
Offering full technology range and innovation leadership in automotive emitters and light sensors Leading Positions in Automotive Semiconductor Sub-Segments #1 in Automotive Emitters #1 in Automotive Light Sensors #16 in Automotive Semiconductors Auto LED suppliers by 2023(E) market share Auto Light
Slide 23: ams OSRAM automotive content growth
ams OSRAM automotive content growth Driven by safety, convenience and digitalization In Cabin Sensing Display Illumination / Visualization Backlighting Battery Sensing Smart management Ambient Surface lighting Exterior Sensing (LiDAR) Head Up Dynamic Dynamic Display / signaling forward Projection li
Slide 24: Semiconductors: Medical / Industrial Growth Drivers
Sense the power of light Semiconductors: Medical / Industrial Growth Drivers 24
Slide 25: Addressing industrial / medical applications with key to system performance
Addressing industrial / medical applications with key to system performance Leveraging differentiated technology base into multi niches where we are key for the system performance Selected applications Structural growth drivers Typical ams OSRAM BoM potential − Aging population Medical Imaging & ~ 2
Slide 26: Example of leading position in niche – medical imaging CT scan sensors/ICs
Example of leading position in niche – medical imaging CT scan sensors/ICs 8 out of 10 OEMs employ ams OSRAM products – solid revenue growth 2x market growth projected Top 10 CT Players Generation of 3D images based CT scan detectors (units) ams OSRAM on X-ray properties Customer Engagement ~10.9k #
Slide 27: Professional lighting – best light performance tailored to the application
Professional lighting – best light performance tailored to the application ams OSRAM works with most the top players with focus on Professional Lighting 6 out of the 8 top professional lighting (PL) players trust ams OSRAM Estimated sales of lighting fixtures (2022)1) USDm PL Player 1 5,145 PL Playe
Slide 28: Semiconductors: Opportunities & growth drivers in Consumer portable devices
Sense the power of light Semiconductors: Opportunities & growth drivers in Consumer portable devices 28
Slide 29: ams OSRAM’s display management and camera enhancement are leading
ams OSRAM’s display management and camera enhancement are leading Our technologies and products are relevant or key for system performance Display Proximity sensing Flicker Detection Intensity or ToF-based sensors for touch display Elimination of artificial light on/off. modulation bands Spectral Am
Slide 30: ams OSRAM’s spectral ambient light sensing makes the difference
ams OSRAM’s spectral ambient light sensing makes the difference ams OSRAM sensors enable superior camera performance in almost all premium smartphones Autofocus: “Fast and accurate Top Smartphones by Camera score autofocus, even in challenging light Smartphone Model Launch Date Camera score conditio
Slide 31: Lamps & Systems: Lamps for Automotive, Industrial and Entertainment
Sense the power of light Lamps & Systems: Lamps for Automotive, Industrial and Entertainment 31
Slide 32: Strong and stable profit contributor with excellent position in lamps business
Strong and stable profit contributor with excellent position in lamps business AMSP is covering automotive, entertainment and industry applications End market split in AMSP lamps Automotive Automotive lamps ~80% LED retrofits Fixtures & Traditional LED & Laser car accessories lamps modules (e.g. XLS
Slide 33: ams OSRAM is at the forefront of LED retrofits in automotive
ams OSRAM is at the forefront of LED retrofits in automotive Increasing potential of retrofit solutions for on-road and off-road applications 2020 2022 2023 Way forward 1st ever on-road1 LED First leading player launching Further expansion of on-road Expand global leadership headlamp retrofit in Eur
Slide 34: ESG commitments
Sense the power of light ESG commitments 34
Slide 35: Creating sustainable value and improving lives with innovative light and sensor solutions
Creating sustainable value and improving lives with innovative light and sensor solutions ams OSRAM group-wide ESG focus ESG achievments ESG goal: Carbon neutrality by 2030 − Development and ongoing implementation of a comprehensive − Group to be carbon neutral (Scope 1+2) by 2030, endeavor towards
Slide 36: ESG ratings: Our committment to sustainability pays off
ESG ratings: Our committment to sustainability pays off Improvement of Sustainalytics and CDP rating and confirmation of the Group’s ESG performance by S&P Institution Rating Comment CDP B (Management) Climate Change (improvement from C) ecovadis Gold Improvement from silver to gold 18.7 (low risk)
Slide 37: Selected Details of Financials
Sense the power of light Selected Details of Financials 37
Slide 38: Lamps & Systems: aftermarket off-season in Q3, continued weakness in industrial
Lamps & Systems: aftermarket off-season in Q3, continued weakness in industrial All figures in EURm / % of revenues Total revenues EBITDA, EBITDA margin (adj.)1) EBIT, EBIT margin (adj.)1) -9% 22.5% +4% 17.6% 16.0% 19.2% 256 15.0% 13.6% 13.2% 12.2% 1 -26% -5% -7% 279 268 255 60 223 233 51 39 37 38 3
Slide 39: Semis: new product ramps and savings program drive improved performance
Semis: new product ramps and savings program drive improved performance All figures in EURm / % of revenues Opto Semiconductors (OS) segment CMOS Sensors and ASICs (CSA) segment Revenues EBITDA (adj.)1) Revenues EBITDA (adj.)1) +2% 19.3% 22.7% 23.1% +19% 17.9% 2.2% 9.4% 372 381 345 +5% 266 +129% 233
Slide 40: Semis: structural growth in consumer compensates cyclical weakness in automotive and I&M
Semis: structural growth in consumer compensates cyclical weakness in automotive and I&M Semiconductors, figures in EURm Total Semi Rev. Semi AM Rev. Semi I&M Rev. Semi Consumer Rev. -10% 0% +24% -9% -7% ~non-core for exit +9% +45% 0% 260 279 648 629 647 253 251 234 578 596 230 202 185 184 186 177 1
Slide 41: Group adj. Depreciation & Amortization and adj. EBITDA
Group adj. Depreciation & Amortization and adj. EBITDA All figures in EURm D&A (adj.)1) EBITDA (adj.)1) -6% -6% +6% +9% 89 87 160 150 80 79 84 143 135 124 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q2/23 Q3/23 Q4/23 Q2/24 Q3/24 1) Excluding M&A-related, transformation and share-based compensation costs as well a
Slide 42: Reconciliation from EBITDA IFRS reported to EBITDA adjusted figures
Reconciliation from EBITDA IFRS reported to EBITDA adjusted figures Q3 2024, All figures in EURm 6 1 11 13 17 176 166 EBITDA IFRS Transformation Share-based M&A-related costs Result from the microLED EBITDA Adj costs compensation sale of businesses . costs − EBITDA Adj. best reflects underlying prof
Slide 43: Reconciliation from EBIT IFRS reported to EBIT adjusted figures
Reconciliation from EBIT IFRS reported to EBIT adjusted figures Q3 2024, All figures in EURm 13 20 18 6 11 6 82 69 EBIT IFRS Asset Result from the Transformation microLED Share-based M&A-related costs EBIT Adj. restructuring sale of businesses costs compensation costs − EBIT Adj. best reflects under
Slide 44: Working Capital
Working Capital All figures in EURm Working Capital Inventories +32% +8% +21% +4% 730 665 843 613 605 784 814 555 716 752 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Trade & Other Receivables Trade Payables -7% -22% +10% 511 -11% 470 649 421 572 598 566 392 357 505 Q3/23 Q4/23 Q1/24
Slide 45: Strong OCF with customer prepayment, NREs and working capital further up
Strong OCF with customer prepayment, NREs and working capital further up All figures in EURm / % of revenues Operating Cash Flow (OCF) Cash Flow related to Capex Inflow from Divestments Free Cash Flow (FCF)1) (including net interest paid) incl. divestments, incl. net interest paid 27.9% Q3/23 Q4/23
Slide 46: Group: adj. R&D significantly reduced due to NRE payments in OS segment
Group: adj. R&D significantly reduced due to NRE payments in OS segment All figures in EURm / % of revenues Gross profit (adj.)1) R&D expenses (adj.)1) SG&A expenses (adj.)1) OPEX (adj.)1) 29.0% 28.7% 28.4% 29.7% 29.7% 10.6% 10.1% 13.5% 12.2% 9.3% 11.1% 12.7% 11.0% 11.6% 11.2% 21.1% 21.8% 23.3% 22.8
Slide 47: Adj. net result / adj. EPS improving quarter over quarter with help of one-offs
Adj. net result / adj. EPS improving quarter over quarter with help of one-offs All figures in EURm / EUR per share Net results (adj.)1) EPS diluted (adj.)1) 2) CHF 1.05 -0.33 -0.34 -0.01 0.35 Net financing result Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 37 29 1.10 0.37 Q4/23 Q1/24 Q2/24 -34 -35 Q3/23 -1 Q3/24
Slide 48: Strong available liquidity and balanced maturity profile with diversified funding mix
Strong available liquidity and balanced maturity profile with diversified funding mix Current capitalization Current debt maturity profile EURm, IFRS values as of September 2024 EURm, repayment amounts as of September 2024 €m, IFRS values as of December 2023 September 2024 IFRS book values EURm Cash
Slide 49: Cash and debt overview – strong deleveraging in Q4 2023
Cash and debt1) overview – strong deleveraging in Q4 2023 All figures in EURm Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 384 394 401 441 1,312 1,399 1,576 2,269 1,399 2,458 2,475 2,476 2,496 2,960 1,696 1,793 1,840 1,146 1,076 1,977 900 1,097 691 Gross debt Cash Net debt SLB liability − QoQ: strong inc
Slide 50: ams OSRAM Investor Relations
ams OSRAM Investor Relations Dr. Jürgen Rebel Investor Relations contact SVP & Head of Investor Relations juergen.rebel@ams-osram.com Premstaetten Office + 43 3136 500-0 + 43 3136 500-0 Internet https://ams-osram.com/about-us/investor-relations Email investor@ams-osram.com Juliana Baron Senior Direc