Ams-osram Ag · SIX:AMS
Ams-osram — Q1 2023 Earnings Presentation
22 slides from Ams-osram's earnings presentation, May 2, 2023
Slide 1: First quarter results 2023
Sensing is life First quarter results 2023 Aldo Kamper, CEO / Interim CFO Moritz M. Gmeiner, Head of IR May 2023 1
Slide 2: Q1 2023 Key developments
Q1 2023 Key developments Overview of key developments First quarter results in line with guidance reflecting difficult market environment and macro-economic trends Subdued demand situation across areas drives ongoing underutilization with negative impact on profitability Strong quarter for aut
Slide 3: Disposals progress
Q1 2023 Key developments Disposals progress Closing of last two remaining disposals in March/Q1 (entertainment lighting) and April/Q2 (Digital Systems Europe/Asia) All planned and communicated disposals of businesses outside of strategic focus areas now closed Successful completion of portfoli
Slide 4: Synergy creation / integration update
Q1 2023 Key developments Synergy creation / integration update Creation of synergies and savings (EURm)1) Overall target 350 EUR 305m synergy and savings run-rate at end of 305 Q1 2023 (87% of total expected run-rate), in line with plans 245 Synergy creation and integration programs fully on tra
Slide 5: Capital expenditures
Q1 2023 Key developments Capital expenditures Capital expenditures (EURm / % of revenues) 33% 20% Significant investment into manufacturing capabilities as 9% 11% part of long-term strategy 537 Strong sequential increase in capex in Q1, predominantly for industry-first 8” LED front-end facility
Slide 6: Q1 2023 Semiconductors segment
Q1 2023 Semiconductors segment Automotive market Consumer market Industrial & Medical mkt. Moderate sequential decline, in line Significantly negative q-o-q shipment Unfavorable results in line with with company expectations trend in several product areas expectations Inconsistent order patt
Slide 7: Q1 2023 Lamps & Systems segment
Q1 2023 Lamps & Systems segment Automotive market Other markets L&S automotive incl. traditional Industrial, building-related and lighting for aftermarket and OEM medical business supportive Robust segment performance driven Mixed demand trends across by aftermarket business for lamps areas
Slide 8: Financial results Q1 2023
Sensing is life Financial results Q1 2023
Slide 9: Group revenues
Group revenues Total revenues 4,8191) -21% 1,246 1,177 73 13 927 Deconsolidation effects due to disposals 1,173 1,164 1) EUR 307m full year deconsolidation effects Q1 2022 Q4 2022 Q1 2023 FY 2022 due to disposals FY2022/FY2021 Revenues in-line with guidance range, challenging market environment ca
Slide 10: Balanced revenue distribution
Balanced revenue distribution Revenues by segment (Q1 2023) Revenues by end market (Q1 2023) Revenues by region (FY 2022) 16% 30% 41% 50% 59% 52% 34% 18% Semiconductors Lamps & Systems Automotive Consumer Industrial & Medical EMEA APAC Americas Q1 with strong Lamps & Systems contribution, particul
Slide 11: Group profitability
Group profitability Gross profit, gross margin (adj.)1) EBIT, EBIT margin (adj.)1) 33% 31% 10% 7% 8% 5% 29% 29% 1,470 407 -19% -42% 412 126 336 272 86 50 Q1 2022 Q4 2022 Q1 2023 FY 2022 Q1 2022 Q4 2022 Q1 2023 FY 2022 Gross profit tracked company expectations Adj. EBIT margin in line with guidan
Slide 12: Operating expenses
Operating expenses R&D expenses (adj.)1) SG&A expenses (adj.)1) 12% 12% 12% 12% 12% 11% 11% 10% 137 140 136 127 122 127 115 116 12% 12% 11% 12% 11% 12% 10% 12% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Strong decrease in operating expenses on absolute basis over last quarters
Slide 13: Semiconductors segment performance
Semiconductors segment performance Total revenues EBIT, EBIT margin (adj.)1) 13% 10% 3,167 6% 302 -3% -29% 789 767 99 547 45 Q1 2022 Q4 2022 Q1 2023 FY 2022 -15 Q1 2022 Q4 2022 Q1 2023 FY 2022 Moderate sequential decline in automotive business driven by further inventory adjustments in Q1 Signif
Slide 14: Lamps & Systems segment performance
Lamps & Systems segment performance Total revenues EBIT, EBIT margin (adj.)1) 17% 1,652 10% 6% 6% 106 -8% 65 457 411 42 73 380 13 27 384 398 Q1 2022 Q4 2022 Q1 2023 FY 2022 Q1 2022 Q4 2022 Q1 2023 FY 2022 Deconsolidation effects due to disposals Robust performance and resilience on comparable port
Slide 15: Adj. net result / Adj. EPS
Adj. net result / Adj. EPS Net result (adj.)1) EPS diluted (adj.)1) 0.40 CHF 0.11 CHF 0.02 CHF 0.47 CHF 124 102 0.47 0.39 29 0.11 6 0.02 Q1 2022 Q4 2022 Q1 2023 FY 2022 Q1 2022 Q4 2022 Q1 2023 FY 2022 Financial result Q1 EUR -32m Income tax result Q1 EUR -12m IFRS reported net result EUR -134m
Slide 16: Cash Flow
Cash Flow Operating / Free Cash Flow (FCF) 17% 18% 12% 12% 599 147 201 162 Operating Cash Flow 34 62 Free Cash Flow -32 -139 Q1 2022 Q4 2022 Q1 2023 FY 2022 Continuing strong operating cash flow generation in Q1, up year-on-year (18% of revenues) Free cash flow (FCF) development as expected give
Slide 17: Cash and debt overview
Cash and debt overview Q3 2022 Q4 2022 Q1 2023 1,595 1,717 1,940 2,838 2,803 2,800 1,243 1,087 861 Gross debt Cash Net debt Expected uptick in group leverage to 2.5x net debt/adjusted1) EBITDA at end of Q1 2023 driven by net debt and trailing EBITDA trend Well-layered debt and maturity structure
Slide 18: Outlook
Outlook Q2 2023 financial guidance Comments Reflecting ongoing subdued demand trends, seasonal Revenues effects, continued reduced production volumes, and EUR 800-900 million meaningful deconsolidation effects (sequentially flat at the midpoint of EUR 880-980 million Approx. EUR 80m q-o-q decons
Slide 19: Sensing is life
Sensing is life
Slide 20: Profit and loss statement
Profit and loss statement IFRS reported figures Q1 2023 Q1 2022 FY 2022 Revenues 927 1,246 4,819 Gross profit 209 385 1,258 Gross margin (IFRS reported) 23% 31% 26% Gross margin (adjusted1)) 29% 33% 31% Research and development -147 -162 -630 Selling, general and administrative -143 -156 -608 Ot
Slide 21: Balance sheet
Balance sheet Mar 31, Dec 31, Mar 31, Dec 31, Assets 2023 2022 Liabilities and equity 2023 2022 Cash and cash equivalents 861 1,087 Current interest-bearing loans 164 169 Current financial investments 21 21 Trade payables 737 811 Trade receivables 529 533 Income tax payables 79 87 Inventories
Slide 22: Cash flow
Cash flow Selected cash flow items Q1 2023 Q1 2022 FY 2022 Net result -134 15 -444 Amortization, depreciation and impairment 173 157 1,018 Cash flows from operating activities 162 147 599 Capital expenditures -302 -113 -537 Acquisitions of subsidiaries, net of cash acquired -31 0 -25 Proceeds f