Ams-osram Ag · SIX:AMS
Ams-osram — Q3 2024 Earnings Presentation
18 slides from Ams-osram's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Results Earnings Call
Sense the power of light Third Quarter 2024 Results Earnings Call Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 07 November 2024
Slide 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 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: Q&A
Q&A Aldo Rainer Dr. Jürgen Kamper Irle Rebel CEO CFO Head of IR 18