Slide 1: Securing solid financial base for structural growth through a holistic financing solution
Sensing is life Securing solid financial base for structural growth through a holistic financing solution Aldo Kamper, CEO Rainer Irle, CFO Dr Juergen Rebel, SVP Investor Relations 27 September 2023
Slide 2: Disclaimer
Disclaimer IMPORTANT: The following applies to this document, which has been prepared by ams-OSRAM AG (the “Company” and together with its subsidiaries, the “Group”) and comprises the slides for a presentation in connection with proposed offering of its no-par value shares and senior notes (the “Off
Slide 3: Holistic re-financing plan to strengthen balance sheet, reduce leverage and support structural growth
Holistic re-financing plan to strengthen balance sheet, reduce leverage and support structural growth in AIM and selected Consumer businesses New management team plans to set-up conservative balance sheet structure and long-term stable financing Goals & motivation – financing needs Strong support
Slide 4: Financing plan increases equity, reduces debt, enables balanced maturity profile
Financing plan increases equity, reduces debt, enables balanced maturity profile Overview of holistic EUR 2.25bn* financing plan Fall/winter 2023/24: Financing around EUR ~1.9bn Additional measures ’Combo deal’ of around EUR 1.6bn Financing in 2024: remaining amount of around EUR 350mn Mix of Seni
Slide 5: Financing plan addresses existing debt maturities of EUR 2.2bn until 2025
Financing plan addresses existing debt maturities of EUR 2.2bn until 2025 Current capitalisation Current debt maturity profile EUR mn, IFRS values as of June 2023 June-23 EUR mn, nominal values as of June 2023 EUR 2.2bn 1,711 debt EUR mn maturities Cash (841) until 2025 414 Promissory notes 120 Bank
Slide 6: Debt maturities shall be addressed with a mix of rights issue and senior note issuances
Debt maturities shall be addressed with a mix of rights issue and senior note issuances, along with other financing sources Commentary Overview of sources EUR mn The plan is expected to cover Fall/winter 2023/24 (EUR ~1.9bn) 2024 financing needs until 2025/2026 addressing existing debt maturities of
Slide 7: Capital increase and additional financing measures support path to investment grade profile
Capital increase and additional financing measures support path to investment grade profile Leverage <2.0x (net debt / adj. EBITDA) is prerequisite for investment grade profile Commentary Overview of net leverage EUR mn Major step towards strengthening Cash 1,235 1,413 1,243 1,087 861 841 841 the ba
Slide 8: Rights issue overview
Rights issue overview All options are value neutral for existing shareholders • Shares are issued at a discount to the prevailing market price Illustrative Example • At issuance, shares will trade at the TERP defined as the weighted average price of the shares outstanding prior to the discounted rig
Slide 9: EGM convocation overview
EGM convocation overview EGM details EGM to be held on October 20, 2023 at 10.00am Vienna time at the company´s premises at A-8141 Premstaetten, Tobelbader Strasse 30 Resolutions 1) Resolution on the ordinary increase of the share capital of the company by way of a rights issue pursuant to sec.
Slide 10: Strong liquidity position of EUR ~1.8bn, incl. EUR 926mn undrawn credit facilities
Strong liquidity position of EUR ~1.8bn, incl. EUR 926mn undrawn credit facilities at the end of Q2 2023 Commentary Healthy cash balance of EUR mn, Amount EUR 841mn supporting operational business as of June 2023 needs through 2024 Undrawn credit facilities of Cash and cash equivalents EUR 841mn EUR
Slide 11: OSRAM minority shareholding put options
OSRAM minority shareholding put options Undrawn RCF of EUR 800mn covering the potential execution of put options Revolving Credit Facility of EUR 800mn Undrawn (Maturity Sep 2025) – beyond maturity of senior unsecured notes in July 2025 As of 30 June 2023 First extension option successfully gran
Slide 12: Planned sale and repurchase of treasury shares to avoid automatic dilution
Planned sale and repurchase of treasury shares to avoid automatic dilution Background Under Austrian law, treasury shares do not receive subscription rights in a rights issue Considerations As the company does not receive any rights for the treasury shares, the company’s holdings automatically w
Slide 13: Summary: Securing a stable financial base for structural growth
Summary: Securing a stable financial base for structural growth Comprehensive financial plan of EUR 2.25 billion to reduce debt and increase equity ratio to ~30% on a pro-forma basis for achieving investment grade profile by 2026 Staged combination of rights issue, senior unsecured notes and other
Slide 14: Glossary
Glossary ami OSRAM
Slide 15: Glossary / definitions
Glossary / definitions Term Explanation Net Debt Financial debt excluding lease liabilities minus cash and cash equivalents FCF Free Cashflow defined as cash flow from operations minus capex Defined as Net Debt / Adj. EBITDA (excluding M&A-related, transformation and share-based compensation costs a
Slide 16: Global leader in intelligent sensing and emitting
Global leader in intelligent sensing and emitting Selected slides of Q2 2023 investor presentation 16
Slide 17: Intelligent sensing and emitting
Intelligent sensing and emitting Intelligence to light and passion to innovation for Automotive, Industrial, Medical and select Consumer application areas Sensing Illumination Visualization We continuously advance our technologies in sensing, illumination and visualization to make the world safer, s
Slide 18: Focus on profitability and on monetizing innovation, benefitting from structural growth
Focus on profitability and on monetizing innovation, benefitting from structural growth and our strong position in our key markets Strategy & business outlook reassessed by new management team Key challenges of previous business model Adjusted business model Strong focus on disruptive, custom tech
Slide 19: Benefitting from structural growth and strong position
Benefitting from structural growth and strong position Growing from the core of sensor & emitter components by increasingly adding intelligence to drive system performance Semiconductor Addressable Markets* Core Semiconductor Portfolio Functional Applications - application view - Sensing 2022 / CAGR
Slide 20: 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 #2 in Light Sensors #1 in traditional Auto lamps/bulbs LED Suppliers by 2022 market share Light Sensor
Slide 21: Automotive & Industrial/Medical contribute already today ~80% of revenues
Automotive & Industrial/Medical contribute already today ~80% of revenues Revenue split H1 2023 for group and by segments ams OSRAM Group Semiconductors Lamps & Systems Emitters ~56% Sensors + ICs ~44% Consumer 18% Consumer Automotive I&M 8% 6% 31% 25% Automotive Automotive I&M 51% 54% 40% I&M 67% C
Slide 22: Benefitting from balanced regional set-up and healthy customer split
Benefitting from balanced regional set-up and healthy customer split Strong regional presence and very balanced customer portfolio Revenues by region (H1 2023) Top customers split (H1 2023) Top 3 customers Americas 22% 18% 47% APAC 14% Top 4-10 customers Other customers 68% 31% EMEA 22 Confidential
Slide 23: Semiconductors core portfolio in Automotive, Industrial, Medical drives significant future growth
Semiconductors core portfolio in Automotive, Industrial, Medical drives significant future growth Strong design win base enables meaningful growth from new core portfolio in Semiconductors Target 2023-2026 revenue CAGR from new base (predominantly driven by ’25 and ’26) Monetizing Ramping Kulim-2 /
Slide 24: Updated mid-term target financial model
Re-assessment of portfolio and market outlook leads to an updated mid-term target financial model Focus on profitability and structural growth from the new core portfolio in Semiconductors Over-the-cycle mid-term target financial model Assumptions: Starting base is CY 2023 revenues, less Revenue g
Slide 25: In Summary: sharpening the profile & the set up for maximum result
In Summary: sharpening the profile & the set up for maximum result Focus on profitability and monetizing innovation, benefitting from structural growth in Automotive, Industrial, Medical New management with holistic value creation mindset and proven track record Focusing the Semiconductor portfo
Slide 26: Sustainability commitments
Sustainability commitments Selected slides of Q2 2023 investor presentation 26
Slide 27: Creating sustainable value and improving lives with optical solutions
Creating sustainable value and improving lives with optical solutions ESG update: Sustainability Strategy, Carbon Neutrality Goal, ESG Committee ESG ACHIEVEMENTS ESG GOAL – Second group sustainability report published, Carbon neutrality by 2030 demonstrating our commitment to transparency – Group to
Slide 28: 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 C Climate Change CDP Water Security B- ecovadis Silver within best 5% of sector SUSTAINALYTICS Score 21 low medium risk, improvement +
Slide 29: ams OSRAM Investor Relations
ams OSRAM Investor Relations Dr. Jürgen Rebel Investor Relations contact 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 Marco Tiefenbacher Principal Inv