Slide 1: Second Quarter 2024 Results Investor Presentation
Sense the power of light Second Quarter 2024 Results Investor Presentation Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 26 July 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: Solid group revenues in a difficult market
Solid group 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 1.09 1.08 1.09 1.08 17.7% 16.8% 16.5% 16.5% -3% YoY 7.9% 14.6% 6.9% 6.8% -4% like-for-like1) 5.9% 5.2% -6% -3% 904 +9% +12% 851 1 +27
Slide 5: Mid-term target operating model intact
Mid-term target operating model intact Growth band adjusted to 6% to 8% with ad-hoc on microLED on 28 Feb 2024 Over-the-cycle mid-term targets Growth model Revenues Exit of Semi non-core business 6 - 8% CAGR1 €3.6 bn ~€300 – 400m Key growth contributors Adjusted EBIT Margin ~€3.15 bn 1. Automotive (
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: 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 10: 1H FY 2024 – strong design-win traction continuing
1H 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 ~2.5 bn
Slide 11: Re-establish-the-base implementation progress
Re-establish-the-base implementation progress Cost savings on track to reach End-FY24 implementation target of EUR ~75m run-rate savings Realized savings to date: Set-up & Infrastructure - BU end-to-end responsibility established - Structural adjustments implemented to a significant extent Monetizin
Slide 12: 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 13: 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 14: Business outlook
Business outlook Q3 2024 Guidance H2 / 2024 comments − Revenue EUR 830m - 930m − ~75 m€ run-rate savings at year-end from ‘Re-establish-the-Base’ program on track − Adj. EBITDA 17% - 20% − Some cost headwinds e.g. personnel cost, less capitalization − Based on assumption − CAPEX might land between E
Slide 15: Summary Q2
Summary Q2 Summary Q2/24: − Solid Q2 revenue and above mid-point profitability − Continued year-over-year structural growth in automotive semis − Strong design-win momentum in core business with EUR 2.5bn year-to-date ‘Re-establish-the-Base’ progress update − EUR ~60m savings realized to date – on t
Slide 16: Q1/FY24 - revision of microLED strategy
Sense the power of light Q1/FY24 - revision of microLED strategy 16
Slide 17: Q1/24 update: revision of microLED strategy
Q1/24 update: revision of microLED strategy Significant EBIT and Cash Flow improvements in 2025 Restructuring of microLED development Exit of 8” Kulim – Sale-and-Lease-Back (SLB) − Substantial restructuring of microLED related organizations − Target option: transfer of new, 8” state-of-the-art facil
Slide 18: 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 19: Semiconductors: Automotive Growth Drivers
Sense the power of light Semiconductors: Automotive Growth Drivers 19
Slide 20: 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 21: ams OSRAM Automotive and Mobility
ams OSRAM Automotive and Mobility 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 ligh
Slide 22: Semiconductors: Medical / Industrial Growth Drivers
Sense the power of light Semiconductors: Medical / Industrial Growth Drivers 22
Slide 23: 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 24: 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 25: Semiconductors: Opportunities & growth drivers in Consumer portable devices
Sense the power of light Semiconductors: Opportunities & growth drivers in Consumer portable devices 25
Slide 26: 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 27: 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 28: Lamps & Systems: Lamps for Automotive, Industrial and Entertainment
Sense the power of light Lamps & Systems: Lamps for Automotive, Industrial and Entertainment 28
Slide 29: 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 30: 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 31: ESG commitments
Sense the power of light ESG commitments 31
Slide 32: ESG update: Climate strategy, carbon neutrality goal, ESG Committee
ESG update: Climate strategy, carbon neutrality goal, ESG Committee 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 group climate strategy
Slide 33: At ams OSRAM, we are highly committed to sustainability
At ams OSRAM, we are highly committed to sustainability External recognitions confirm our engagement within ESG (actual status per rating) Institution Rating Comment CDP B Climate Change (improvement from C) ecovadis Gold Improvement from silver to gold 21.0 ESG Risk Rating low medium risk, SUSTAINA
Slide 34: Selected Details of Financials
Sense the power of light Selected Details of Financials 34
Slide 35: Lamps & Systems: seasonally weak Q2, continued weakness in industrial
Lamps & Systems: seasonally weak Q2, continued weakness in industrial All figures in EURm / % of revenues Total revenues EBIT, EBIT margin (adj.)2) EBITDA, EBITDA margin (adj.)2) -7% YoY -11% like-for-like1) 22.5% 256 -17% 19.2% 17.6% 251 15.8% 15.0% 13.6% 1 13.2% 12 -25% -41% 279 268 239 255 60 223
Slide 36: Semis – structural growth & progress of savings program outweigh difficult market
Semis – structural growth & progress of savings program outweigh difficult market All figures in EURm / % of revenues Opto Semiconductors (OS) segment CMOS Sensors and ASICs (CSA) segment Revenues EBITDA (adj.)1) Revenues EBITDA (adj.)1) +8% -4% 19.3% 22.7% 2.2% 9.4% 345 372 +25% 233 224 +320% 67 84
Slide 37: Semis: Structural growth in Auto compensates ramp-down of Consumer legacy
Semis: Structural growth in Auto compensates ramp-down of Consumer legacy Semiconductors, figures in EURm Total Semi Rev. Semi AM Rev. Semi I&M Rev. Semi Consumer Rev. +6% -1% -9% -1% -1% +3% +19% -6% 260 279 648 629 238 253 251 600 578 596 187 202 185 186 177 175 174 170 159 155 Q2/23 Q3/23 Q4/23 Q
Slide 38: 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) -15% -6% -1% +9% 93 89 87 160 150 80 79 143 135 124 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q2/24 Q3/24 1) Excluding M&A-related, transformation and share-based compensation costs as well
Slide 39: Reconciliation from EBITDA IFRS reported to EBITDA adjusted figures
Reconciliation from EBITDA IFRS reported to EBITDA adjusted figures Q2 2024, All figures in EURm 13 14 1 2 135 106 EBITDA IFRS Transformation Share-based M&A-related costs Result from the EBITDA Adj costs compensation sale of businesses . costs − EBITDA Adj. best reflects underlying profitability of
Slide 40: Reconciliation from EBIT IFRS reported to EBIT adjusted figures
Reconciliation from EBIT IFRS reported to EBIT adjusted figures Q2 2024, All figures in EURm 21 17 -7 1 6 56 4 15 EBIT IFRS Result from Equity Result from the Transformation MicroLED Share-based M&A-related costs EBIT Adj. Investments sale of businesses costs compensation costs − EBIT Adj. best refl
Slide 41: Working Capital
Working Capital All figures in EURm Working Capital Inventories +9% +1% -9% +8% 665 613 605 804 784 814 554 555 716 752 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Trade & Other Receivables Trade Payables -18% -18% -30% -5% 511 686 470 649 435 421 598 572 566 357 Q2/23 Q3/23 Q4/23 Q1
Slide 42: Operating cash flow and FCF now includes net interest paid; CAPEX reduced
Operating cash flow and FCF now includes net interest paid; CAPEX reduced All figures in EURm / % of revenues Operating Cash Flow Cash Flow related to Capex Inflows from Divestments Free Cash Flow (FCF)1) (including net interest paid) incl. divestments, incl. net interest paid 23.9% 15.5% 3.8% 6.4%
Slide 43: Group: microLED cancellation still elevating adj. R&D
Group: microLED cancellation still elevating adj. R&D All figures in EURm / % of revenues Gross profit (adj.)1) R&D expenses (adj.)1) SG&A expenses (adj.)1) OPEX (adj.)1) 27.8% 29.1% 28.6% 28.5% 29.7% 12.3% 10.6% 10.1% 13.5% 12.2% 11.2% 11.1% 12.7% 11.0% 11.6% 22.0% 21.1% 21.8% 23.3% 22.8% +3% -5% 0
Slide 44: Adj. net result / Adj. EPS improving quarter over quarter, reaching break-even
Adj. net result / Adj. EPS improving quarter over quarter, reaching break-even All figures in EURm / EUR per share Net results (adj.)1) EPS diluted (adj.)1) CHF 0.12 0.10 -0.03 -0.03 0.00 Net financing result (adj.)1) Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 31 29 -25 Q4/23 Q1/24 Q2/24 0.12 0.11 -34 Q2/23 Q3/2
Slide 45: 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 €m, IFRS values as of June 2024 €m, IFRS values as of December 2023 June 2024 IFRS book values EUR million €m, repayment amounts as of June 2024 Cash (900) 999 O
Slide 46: Cash and debt overview – strong deleveraging in Q4 2023
Cash and debt1) overview – strong deleveraging in Q4 2023 All figures in EURm Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 384 394 401 1,312 1,399 1,576 2,034 2,269 2,458 2,475 2,476 2,875 2,960 1,696 1,793 1,146 1,076 1,977 900 841 691 Gross debt Cash Net debt SLB liability − QoQ: reduction of cash posi
Slide 47: 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