Osram Licht Ag · HAM:OSR

Osram Licht — Investor Day (May 2013)

114 slides from Osram Licht's investor day presentation, May 17, 2013

Slide 2: Disclaimer
Disclaimer You will be permitted access to this capital markets presentation subject to your consent to the following conditions: • Recording the presentation and any reproduction of the presentation is not permitted • By accessing the presentation you consent to these restrictions The document made
Slide 3: Transaction overview
Transaction overview • Spin-off to benefit both Siemens and OSRAM • Siemens to focus on core activities with highest portfolio synergy • OSRAM to gain both higher entrepreneurial freedom and direct access to capital market • Obtained AGM approval in favor of spin-off • OSRAM Management Roadshow plan
Slide 4: Ownership structure: Siemens will remain anchor shareholder
Ownership structure Siemens will remain anchor shareholder Spin-off overview 100% Siemens AG Siemens Pension Fund Siemens shareholders 17.0% 2.5% OSRAM Licht AG 80.5% 100% OSRAM Beteiligungen GmbH 80.5% 19.5% OSRAM GmbH Note: Final structure © Siemens AG 2013. All rights reserved. 4 Capital Market D
Slide 5: Today's presenters
Today's presenters Wolfgang Dehen (CEO) Dr. Peter Laier (CTO) Dr. Klaus Patzak (CFO) Since OSRAM Licht AG, Since OSRAM Licht AG, Since OSRAM Licht AG, 2012 Chairman of the Managing 2013 Member of the Managing 2012 Member of the Managing Board OSRAM GmbH 1), Board OSRAM GmbH 1), Board OSRAM GmbH 1),
Slide 8: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand Only global lighting 1 World class portfolio of lighting products and solutions pure play From "Analogue" 2 Lighting market set for accelerating growth to "Digital" Integrated lighting expert with trusted brand, 3 Well positioned excellent channel access and technolo
Slide 9: World class portfolio of lighting products and solutions
World class portfolio of lighting products and solutions LED 1) Trendsetter 1st in Automotive 2nd in General Illumination ThinGaN 2) production on 6" wafers 1st direct emitting green laser diode R&D record for red and warm-white LED efficiency Innovative "OSTAR Headlamp LED"- technology 1st in Proje
Slide 10: Lighting market set for accelerating growth
Lighting market set for accelerating growth From to "Digital Light" "Analogue" Light is design! Light is life! Light is dynamic! Light is productivity! Light is creation! Light is smart! Light is health! Light is energy! Light is vision! Light is emotion! Light is safety! Light is yours! "Light is O
Slide 11: Integrated lighting expert with trusted brand, channel access and technology leadership
Integrated lighting expert with trusted brand, excellent channel access and technology leadership € 5.4bn sales in ~150 countries ~18k Access to Professional versatile sales Customers channels Global R&D R&D and production 6.3% of sales footprint Highest no. of >20k patents 1) LED cross-licensing ag
Slide 12: Strategic objectives – commitments – rigorous transformation program
Strategic objectives – commitments – rigorous transformation program Profitability ~€1bn gross savings Build on our core strengths cumulated FY 2013-15 EBITA Margin: Expand and enhance >8% as average our value proposition over the cycle Instill from FY 2015 entrepreneurial culture Capital Growth eff
Slide 13: Structures, processes, product pipeline and technology in place
Structures, processes, product pipeline and technology in place 1 Product pipeline well filled for continuous innovation 2 Strong technology expertise 3 Creating value as integrated lighting expert through reduced time to market and strong focus on quality and cost 4 Improve efficiency with new proc
Slide 14: Strong financial profile
Strong financial profile ✔ Healthy balance sheet ✔ High cash generation capabilities ✔ Profitability improvement well on track © Siemens AG 2013. All rights reserved. 14 Capital Market Day OSRAM | May 17, 2013
Slide 15: Diverse, entrepreneurial, motivated and incentivized management
Diverse, entrepreneurial, motivated and incentivized management Wolfgang Dehen Dr. Peter Laier Dr. Klaus Patzak (CEO) (CTO) (CFO) SP 1) OS 2) Lamps Light Engines Luminaires Solutions Hans-J. Schwabe Aldo Kamper Dr. Peter Dobiasch Dr. Geert van der Meer Christian Schraft Mike Mastroyiannis EMEA Ameri
Slide 16: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 17: OSRAM is the largest, pure play global lighting company
OSRAM is the largest, pure play global 1 lighting company FY 2012 Revenue split by reporting segment 1) Luminaires & Solutions Specialty Lighting (L&S) 10% (SP) 25% 25% Lamps & Components 16% 49% 49% (L&C) Opto Semiconductors (OS) Revenue split by region 2) Americas 35% 35% EMEA 41% 41% 24% New OSRA
Slide 18: OSRAM is the clear global #2 lighting player
1 OSRAM is the clear global #2 lighting player Global positioning 1) 2nd EMEA 2nd 2nd Americas 3rd APAC Globally Positioning by end market 1) Relative size compared to competitors (indexed) 5) 1st in Automotive 150 Competitor 1 1st in Projection 100 2nd in Lamps 2) 65 Competitor 2 2nd in Opto Semico
Slide 19: Opto Semiconductors is a consistent #2 and well positioned for growth
Opto Semiconductors (OS) is a consistent #2 1 and is well positioned for future growth Market leader across diversified Key business highlights product portfolio 1) • Broad product portfolio (visible, infrared, laser) • Strong diversification across market segments • Close, long-term customer relati
Slide 20: Specialty Lighting with strong customer relationships and aftermarket
Specialty Lighting (SP) with strong customer relation- 1 ships, technology leadership and significant aftermarket Leading in component business 1) Key business highlights • Market leader in high-growth Automotive and Display / Optic applications, undisputed leadership 1st in Automotive Lighting in A
Slide 21: Lamps & Components a global leader with excellent channel access
Lamps & Components (L&C) a global leader with 1 excellent channel access Leading in component business 1) Key business highlights • Strong professional and consumer lighting brand • Market access in all regions and relevant sales 2nd in Lamps channels • One of the leaders in advanced technologies: L
Slide 22: Luminaires & Solutions strong in LED dynamic lighting and professional luminaires
Luminaires & Solutions (L&S) is strong in LED 1 dynamic lighting and professional luminaires Leading in luminaire, solution and Key business highlights service business 1) • The acquisition of Siteco provides a 4th in LED Luminaires comprehensive professional SSL luminaires portfolio Europe • Togeth
Slide 23: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 24: More lighting, greater energy efficiency and higher value
More lighting, greater energy efficiency 2 and higher value Growth drivers Characteristics Demographic 1 More people, more elderly change 2 Volume Electrification More grids Growth Emerging market 3 More income shift 4 Energy efficiency More efficient lighting solutions 5 Decarbonization More regula
Slide 25: Lighting market set for sustainable growth while industry transforms
Lighting market is set for sustainable 2 growth while industry is undergoing transformation Total lighting market, €bn CAGR 2) Main trends 2011–16 2016–20 2011–20 • Historical growth rates x% SSL penetration rate (incl. OLED) Ɖ 5% 3% 4% were at ~2% p.a. 3) during 2000-2010 OLED 113 >100% 69% >100% •
Slide 26: Markets for SP and OS grow faster than total lighting market
Markets for SP and OS grow faster 2 than the total lighting market €bn Opto Semiconductor components market Specialty Lighting market (w/o fixtures) 3) w/o backlighting 1) CAGR CAGR CAGR 7% 2011-2020 2011-2020 Total CAGR 4% 13 CAGR 6% 8 12 16 % 7 9 General Illumination 15% 8% 5 Automotive SSL Other
Slide 27: SSL transition drives growth of General Illumination market
SSL Transition drives the growth of 2 General Illumination market €bn Lamps and Components 1) Luminaires and Solution market 2) CAGR CAGR 2011-2020 2011-2020 CAGR 5% 75 63 SSL 47 SSL 32 % CAGR 8% 36 28 29 % 18 SSL Traditional green Traditional Green SSL -5 % Traditional Green -7 %3) -6 % Traditional
Slide 28: SSL with an accelerated life cycle and time to market
SSL with an accelerated life cycle and 2 time to market 1910 • 1841: 1st Incandescent lamp patent Basic to Green • 1880: 1st Prototype of incandescent lamp • 1910: Tungsten Light Bulb 72 years Tradition • 1936: Fluorescent Lamp • 1970: 1st Red LED • 1982: DULUX CFLi 1) 1982 • 1990: 1st Surface Mount
Slide 29: The lighting market is more than lumen/watt or lumen/$
The lighting market is more than 2 lumen/watt or lumen/$ Intelligent Applications Light & Quality & Design + of Life + Lighting Solutions Cabin lighting for Daylight Context-aware Safety and usability nighttime flights classroom dynamic lighting of streets and roads © Siemens AG 2013. All rights res
Slide 30: Example: Dynamic lighting solution Baku Flame Towers
Example: Dynamic lighting solution 2 Baku Flame Towers (2012) © Siemens AG 2013. All rights reserved. 30 Capital Market Day OSRAM | May 17, 2013
Slide 31: The Lighting Industry is in transformation to SSL, but keep in mind that…
The Lighting Industry is in transformation 2 to SSL, but keep in mind that… 1 Traditional lighting will still be around in 2020 2 There will still be sockets, i.e. replacement business, in 2020 3 Trade, OEM and Retail remain key sales channels Application lifetime is often shorter than the technical
Slide 32: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access 3 and technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 33: OSRAM develops from components only into integrated SSL lighting player
OSRAM develops from "components only" 3 into an integrated SSL lighting player Lighting value chain Example General Illumination Traditional Tradition Transition Transformation Traditional lamps Consumer fixtures and ballasts Professional fixtures SSL Con- Lamps Value- ceptual Chip Packages Luminair
Slide 34: OSRAM: Trusted partner throughout the transition
3 OSRAM: Trusted partner throughout the transition Trusted brand OSRAM global reach 2001 1965 1926 1919 1906 Second brands: OSRAM: “Hell wie der lichte Tag” – OSRAM as bright as daylight – Slogan established 1949 Source: OSRAM data, FY 2012 © Siemens AG 2013. All rights reserved. 34 Capital Market D
Slide 35: Strong presence in all key technologies and distribution channels
3 Strong presence in all key technologies and distribution channels: a clear advantage in the transition phase Share of revenue, FY 2012 Comprehensive technology portfolio Balanced global reach 1) Green* SSL* 25% Americas 35% EMEA 47% 47% 41% 41% 28% 28% Basic 24% * Energy efficient 72% APAC Diversi
Slide 36: OSRAM's excellent channel access
3 OSRAM’s excellent channel access Market and OSRAM revenue split by channel FY 2012, in % General Illumination 1) Automotive Lighting 2) Opto Semiconductors 100% 100% 100% 100% 100% 100% Direct OEM After- Elect. market Distr. Retail OEM OEM Trade Market Market Market • Preferred supplier for key tr
Slide 37: Industry leading R&D investment to secure technology leadership
Industry leading R&D investment to 3 secure technology leadership R&D expenditure in % of revenue, FY 2010-2012 Strong patent position Lighting Key competitor industry Total • Approx. 20k patents and patent (in %) applications 5.8 6.3 5.1 • Industry's highest number of cross-license agreements for L
Slide 38: Domain know-how across professional applications of the lighting spectrum
OSRAM's domain know-how covers a variety 3 of professional applications across the lighting spectrum Examples of professional applications Ultraviolet Visible Infrared Wave length 400 nm 500 nm 600 nm 700 nm 1.000 nm 10.000 nm Water purification Advanced Forward Lighting Sensing Lithography Horticul
Slide 39: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 40: Three strategic objectives: profitability, growth and capital efficiency
OSRAM has three strategic objectives: 4 profitability, growth and capital efficiency • Harvest traditional lighting business 1 Our commitment • Leverage global customer reach and to shareholders further strengthen customer intimacy Build on our • Leverage core domain know-how core strengths to suppo
Slide 41: Harvest traditional lighting business to finance the SSL transition
Harvest traditional lighting business 4 as platform for financing the SSL transition OSRAM SSL revenue and profitability, 2012 Market Split 2) Revenue share Profitability 1) 2012 2017 SSL 22% 25% 51% 49% 75% 78% Traditional Traditional SSL SSL Total Comp. products Traditional SSL & systems3) "Harves
Slide 42: Three strategic objectives: profitability, growth and capital efficiency
OSRAM has three strategic objectives: 4 profitability, growth and capital efficiency • Harvest traditional lighting business 1 Our commitment • Leverage global customer reach and to shareholders further strengthen customer intimacy Build on our • Leverage core domain know-how core strengths to suppo
Slide 43: OSRAM strategy to integrate forward along industry value chain
OSRAM strategy to integrate forward 4 along industry value chain Example: General Illumination Illustrative Demand Demand fulfillment Repeat creation along lighting value chain business Lamps Value- Conceptual Chip Packages Luminaires Solution adding Selling Light Engine & Services Controls General
Slide 44: Value creation through integrated approach at critical interfaces
OSRAM creates value through integrated approach 4 by combining domain know-how at critical interfaces Example General Illumination Lamps Value- Chip Packages Luminaires Solution adding Light Engine Services & Controls Example: Integrated Light Engine System Light engine with Light engine with integr
Slide 45: Intelligent push/pull go-to-market model
Expand and enhance our value proposition by 4 applying intelligent push/pull go-to-market model Go-to-market model for General Illumination (Illustrative) OSRAM Key Account Management Today's Model Future Model ("Push") ("Push & Pull") Trade OEM Retail / DIY 1) Supported by: (e-)business, (e-)inform
Slide 46: Three strategic objectives: profitability, growth and capital efficiency
OSRAM has three strategic objectives: 4 profitability, growth and capital efficiency • Harvest traditional lighting business 1 Our commitment • Leverage global customer reach and to shareholders further strengthen customer intimacy Build on our • Leverage core domain know-how core strengths to suppo
Slide 47: Instill entrepreneurial culture
4 Instill entrepreneurial culture OSRAM management People and performance culture principles • Senior managers assessed by external Management personnel management experts appraisal • 360⁰ feedback mandatory for senior managers Ownership • Short Term Bonus: Financial and individual target-based Comm
Slide 48: Rigorous transformation program PUSH aimed at >8% margin
4 Rigorous transformation program PUSH aimed to bring OSRAM towards >8% margin as average over the cycle OSRAM PUSH approach OSRAM PUSH target Performance improvement Improvement levers program 2012-2014 examples EBITA Today Clear targets and actions with P&L • Footprint rationalization impact Gross
Slide 49: SP and OS are solid profit contributors; L&C and L&S have upside
SP and OS are constant and solid profit contributors 4 L&C and L&S have potential for significant upside EBITA (€m) 1) 193 166 210 118 227 232 126 107 76 47 -15 -76 -40 -82 FY 2010 FY 2011 FY 2012 H1 2013 Specialty Lighting: Industry outperformer Opto Semiconductors: Above industry-average profitabi
Slide 50: OSRAM Business Units generally on track
OSRAM Business Units generally on track 4 Luminaires & Solutions in repositioning Share of total revenue FY 2012 1) Status 25% Constant Above average Specialty Lighting outperformer profitability over the cycle Opto Competitive Club of 3 top and Semiconductors 16% player bottom line performers Gener
Slide 51: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 52: Structures, processes, product pipeline and technology in place
Structures, processes, product pipeline and 5 technology in place 1 Product pipeline well filled for continuous innovation 2 Strong technology expertise 3 Creating value as integrated lighting expert through reduced time to market and strong focus on quality and cost 4 Improve efficiency with new pr
Slide 53: Integrated player in SSL products, systems and solutions
OSRAM as integrated player in the arena of 5 SSL products, systems and solutions Transformation Transition Tradition Systems / Solutions SSL Products Traditional Products System & Integration Controls / Software Capabilities Leveraging existing technology strengths to build up needed expertise for t
Slide 54: Filled technology and product pipeline with continuous innovation
Filled technology and product pipeline with 5 continuous innovation is key to OSRAM's growth Examples Technology Technology Development Introduction Growth Maturity & Harvest Scouting Concepts Don’t miss Strong growing market; Flat / Negative market; Technology Technology next Market in early phase
Slide 55: Technology at the core of OSRAM's strength
5 Technology at the core of OSRAM's strength Highest no. of LED cross- licensing Major >20K patents 1) agreements 2) development in Intellectual centers in 3 Property regions and Portfolio close to markets 6.3% of sales in R&D 5.8 6.3 Ø FY 2010-11 FY 2012 10 Corporate 2.7K Technology Technology Labs
Slide 56: Comprehensive technology and product portfolio (OS, SP)
Integrated lighting expert with comprehensive 5 technology and product portfolio (OS, SP) Opto Semiconductors (OS) Specialty Lighting (SP) Luminaires (LUM) Solutions (SOL) Services (SER) Light Engine & Controls Chip Packages (LE) Opto Semiconductors (OS) Specialty Lighting (SP) • Mastering full spec
Slide 57: Comprehensive technology and product portfolio (L&C, L&S)
Integrated lighting expert with comprehensive 5 technology and product portfolio (L&C, L&S) Lamps (LP) Opto Semiconductors (OS) Luminaires (LUM) Solutions (SOL) Services (SER) Light Engine & Controls Chip Packages (LE) Lamps and Components (L&C) Luminaires and Solutions (L&S) • OCTRON Long Life T8 l
Slide 58: Broad know-how creates new products, improves time to market and cost
Integrated lighting expert: Broad know-how creates 5 new products, improves time to market and cost base 1 Opto Semiconductors (OS) Specialty Lighting (SP) Luminaires (LUM) Solutions (SOL) Services (SER) Chip Packages Lamps(LP), Light Engines(LE) 2 3 5 6 4 1 OS + SP: LASER technology for 4 OS + SOL:
Slide 59: Value through collaboration between OS and LE
Integrated lighting expert generates value through 5 collaboration between OS and LE Example: PrevaLED Core Light Engines Generation II Generation III with integrated approach (OS, LE) • Performance and cost improvement with joint Launched in 2011 Launch scheduled “cross OSRAM” development (use know
Slide 60: Flawless project execution with improved Time to Market, cost and quality
Flawless project execution with improved 5 Time to Market, cost and quality Reduced Time to Market Flexible Industrialization Pre-MPM With MPM Target Specifi- Develop Manufac- Product Idea Design Sequential Parallel Integrated cation -ment turing In-house PLM PLM Contract Manufacturing Plat- Phase S
Slide 61: KPIs for R&D cost, Time to Market and innovation
KPI’s to drive focused approach on R&D cost, 5 Time to Market and innovation R&D cost in €m and % of sales % of total sales generated from products Total R&D spending in % of revenue developed in the last 3 years 6.0% 6.3% OSRAM Target OSRAM Target >25%1) 301 339 FY 2011 FY 2012 FY 2015 FY 2011 FY 2
Slide 62: Efficient R&D spending while managing the transition to SSL
Structure and processes in place for efficient R&D 5 spending while managing the transition to SSL Shift of R&D spending with transition from Traditional to SSL • SSL share of total R&D spending Technology Technology Development Introduction Growth Maturity & Harvest will increase by shifting resour
Slide 63: CTO priorities
5 CTO priorities ✔ Technology leadership, introduce platform and module strategies ✔ Improve project performance, Time to Market, cost control, KPI’s Execute OSRAM PUSH, adopt manufacturing and R&D footprint to new ✔ market and business models ✔ Preventive quality management and strengthen supplier
Slide 64: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 65: Strong financial profile
OSRAM: THE global lighting brand 6 Strong financial profile 6.1 Historical Financials 2010–2012 6.2 Current Trading Update and Outlook 2013 6.3 Balance Sheet, Financing Structure, Dividend Policy © Siemens AG 2013. All rights reserved. 65 Capital Market Day OSRAM | May 17, 2013
Slide 66: OSRAM is well positioned and has a strong financial profile
OSRAM is well positioned 6.1 and has a strong financial profile ✔ Delivered growth in FY 2012 – in both segments and regions ✔ SP and OS in good shape and performing Need for profitability improvement of General Illumination businesses addressed ✔ by OSRAM PUSH program – execution well on track ✔ He
Slide 67: Revenue growth across segments and regions
Revenue growth across segments 6.1 and regions Group, €m Revenue by segment Comments 8 7 Growth (%) • Strong revenue growth since FY 2010 Comp. Growth (%) 8 1 • FX and Siteco acquisition supportive of 5,400 Group 4,680 5,031 nominal revenue growth in FY 2012 1.244 1.405 SP 1.174 • SSL growth in FY 2
Slide 68: SP and OS performance mitigates EBITA decline
SP and OS performance mitigates 6.1 EBITA decline Group, €m EBITA (by segment) Comments Margin (%) 12.4 8.7 1.0 • Specialty Lighting 583 Total Stable profit contributor SP 193 437 • Opto Semiconductors OS 210 53 Held up well versus competition 166 227 • General Illumination 1) 118 GI 1) 232 Severely
Slide 69: FY 2012 impacted by transformation costs
FY 2012 significantly impacted by transformation 6.1 costs – mostly relating to General Illumination Group, €m EBITA impact of special items 1) FY FY FY • PUSH transformation costs Special items 2010 2011 2012 reduced FY 2012 EBITA by EBITA reported 583 437 53 €199m, mostly consisting of • impairmen
Slide 70: SP: Strong performance with EBITA margins >15%
SP: Strong performance with EBITA margins 6.1 continuously >15% Specialty Lighting, €m Revenue and EBITA development Comments Revenue Growth (%) 6 13 • FY 2012: Continued strong growth, Comp. growth (%) 11 9 mainly driven by automotive 1,405 (traditional lamps as well as LED 1,174 1,244 components)
Slide 71: OS: Resilience compared to competitors
OS: Resilience compared to competitors 6.1 with acceleration throughout FY 2012 Opto Semiconductors, €m Revenue and EBITA development Comments Revenue Growth (%) 15 5 • While volumes rose in FY 2011 and FY Comp. growth (%) 17 1 2012, prices decreased due to excess capacity in worldwide LED productio
Slide 72: General Illumination in transformation phase
General Illumination in transformation phase 6.1 since beginning of FY 2012 General Illumination, €m 1) Revenue and EBITA development Comments Revenue Growth (%) 7 7 • Profitability in FY 2012 impacted by Comp. growth (%) 6 (1) decrease in ballasts and HPD lamps and weak demand in Southern Europe, C
Slide 73: OSRAM PUSH with cumulated gross savings of ~€1bn
OSRAM PUSH with cumulated gross 6.1 savings of ~€1bn over three years Group EBITA margin development >8% 2) 1.0% c.€1.0bn EBITA Special items Customer Inflation Volume / Cost reduction EBITA FY 2012 FY 2012 price change degression / measures FY 2015E product mix / others • Fixed costs reduction by ≥
Slide 74: OSRAM PUSH savings include productivity improvements and pay-back
OSRAM PUSH savings include productivity 6.1 improvements and pay-back from transformation Group Total cost reduction impact Total expected transformation costs of a mid-three digit Fill Level FY 2013 €m figure until FY 2014 (~ €200m already booked in Degree of FY 2012) Implementation… 2) …as per: ≥1
Slide 75: OSRAM PUSH well on track and in execution mode
OSRAM PUSH well on track and in 6.1 execution mode Group, €m Manufacturing footprint adjustments 1) OPEX targets 2) Reduction in number of manufacturing sites SG&A (w/o logistics costs) R&D ~(25)% (8) to (10)% 43 841 39 33 flat 339 FY 2011 FY 2012 FY 2014E FY 2012 FY 2014E FY 2012 FY 2014E Headcount
Slide 76: OSRAM PUSH as key lever for transformation
OSRAM PUSH as key lever for 6.1 transformation 1 Operational discipline – use of OSRAM PUSH methodology: Ambitious goals, concrete actions, rigid implementation, monitoring bottom-line impact 2 Payback from transformation measures More than 85% of transformation costs within General Illumination Foc
Slide 77: Strong cash generation in FY 2012
Strong cash generation in FY 2012 driven by lower 6.1 Capex and improved working capital efficiency Group, €m Capital expenditure 312 Free Cash Flow development Total 253 36 FCF4) 438 (44) 277 SP 24 187 157 Adjusted for €500m OS 138 43 pension funding (op. cash outflow / 62 fin. cash inflow) GI1) 87
Slide 78: Strong financial profile
OSRAM: THE global lighting brand 6 Strong financial profile 6.1 Historical Financials 2010–2012 6.2 Current Trading Update and Outlook 2013 6.3 Balance Sheet, Financing Structure, Dividend Policy © Siemens AG 2013. All rights reserved. 78 Capital Market Day OSRAM | May 17, 2013
Slide 79: Overall improved H1 FY 2013
Overall improved H1 FY 2013 – 6.2 confirming management's strategy 1 Stable comparable revenue H1 in line with expectations ✔ 2 Continued growth in OS and SP ✔ EBITA margin improvement y-o-y, supported by growing OS business and 3 ✔ decrease in major special impacts 4 Progress in execution of OSRAM
Slide 80: Solid start to FY 2013, topline on plan
6.2 Solid start to FY 2013, topline on plan Group, €m Revenue development Comments Half-year revenue H1 Growth (%) (2) • H1 FY 2013 revenue of €2,678m y-o-y H1 Comp. (0) unchanged on a comparable basis growth (%) 2,731 • Absolute revenue decline can be 2,678 attributed to continued macro-economic un
Slide 81: H1 2013 EBITA impacted by PUSH transformation costs
H1 2013 EBITA significantly impacted by 6.2 PUSH transformation costs Group EBITA development Comments • H1 2013 EBITA came in at €102m or 3.8% of revenue, supported by lower special 8.7 7.4 EBITA 1.4 3.8 0.1 items related to the transformation, spin-off Margin (%) 0 (6.0) and legal matters 120 • Q2
Slide 82: Specialty Lighting with solid growth and high margins
Specialty Lighting with solid growth and 6.2 sustained high profit margins Specialty Lighting Revenue and EBITA margin development Comments EBITA 19.1 Margin (%) 17.8 17.4 17.9 17.7 15.7 • Comparable revenue growth driven by HID and LED components in the 0 automotive sector as well as Americas and e
Slide 83: Opto Semiconductors with strong growth momentum
Opto Semiconductors with strong growth 6.2 momentum and significantly improved profitability Opto Semiconductors Revenue and EBITA margin development Comments 10.2 • Continuing growth momentum in OS 10.0 9.8 EBITA 5.7 7.3 driven by infrared components and Margin (%) 4.0 LEDs for applications in gene
Slide 84: Lamps & Components results subdued by transformation
Lamps & Components results subdued 6.2 by ongoing transformation Lamps & Components Revenue and EBITA margin development Comments EBITA 8.3 • Nominal growth impacted by Margin (%) (0.7) (1.1) 0.2 (2.4) divestment of joint ventures in Japan 0 (9.8) • Comparable growth declined because of weaker NAFTA
Slide 85: Luminaires & Solutions challenged by weak services business
Luminaires & Solutions challenged by 6.2 weak environment for services business Luminaires & Solutions Revenue and EBITA margin development Comments 0 (6.9) EBITA (12.6) (14.6) (19.6) (11.5) (18.2) • Revenue below H1 FY 2012 due to Margin (%) weaker project business within Solutions & Services – mai
Slide 86: Free cash flow in H1 on level of previous year
Free cash flow in H1 on level of previous 6.2 year despite pay-out from transformation Group, €m Free cash flow Comments FCF1) 902) 91 (6)2) 96 90 1 • Stable cash flow development y-o-y while investments in working capital and assets remain constant • Continued cash outflows from change in working c
Slide 87: Guidance for 2013
Guidance for 2013 confirms current momentum 6.2 of company performance 1 Modest y-o-y comparable revenue growth expected for H2 FY 2013 Driven by new products and progress in reorganizing our sales force 2 FY 2013 revenue expected on prior year level on a comparable basis No further economic slowdow
Slide 88: Strong financial profile
OSRAM: THE global lighting brand 6 Strong financial profile 6.1 Historical Financials 2010–2012 6.2 Current Trading Update and Outlook 2013 6.3 Balance Sheet, Financing Structure, Dividend Policy … © Siemens AG 2013. All rights reserved. 88 Capital Market Day OSRAM | May 17, 2013
Slide 89: Financial net debt decreased significantly
Financial net debt decreased significantly due to 6.3 capital strengthening and operational cash flows Group, €m Net debt transition Free Cash Flow = €91m 247 (56) (3) (19) (78) (19) (15) 163 (96) 337 (595) Net debt Loss Debt Pro forma EBITDA Change in Change in Taxes paid, Capex Other Net debt FY 2
Slide 90: Strong balance sheet and sufficient funding capability
Strong balance sheet and sufficient funding 6.3 capability Group, €m Pro-forma capitalization Conservative finance policy Equity 1,946 2,109 2,183 • Strong balance sheet following +163 Adjusted equity contributions by Siemens of 1,096 net debt c.€1.2bn (€500m pension funding (337) 3) and €200m capit
Slide 91: Substantially funded pension plans
6.3 Substantially funded pension plans Group, €m Funded status of principal pension plans and Significant components of the defined benefit other post-employment benefits as of March cost of our principal pension and principal 31st, 2013 other post-employment benefits Italy H1 1,963 13 Switzerland F
Slide 92: Tax situation, dividend policy and M&A hurdle rates
Attractive tax situation, clear dividend policy 6.3 and M&A hurdle rates • High / negative effective tax rates in FY 2011 / FY 2012: • Affected by goodwill impairments (FY 2012) • Revenue proportion in high taxed countries Taxes • No self contained tax strategies due to integration in Siemens tax gr
Slide 93: CFO priorities
6 CFO priorities ✔ Foster performance culture ✔ Drive financial targets deep into organization ✔ Execute on OSRAM PUSH ✔ Rigorous portfolio management (segments / countries) ✔ Active dialogue with the capital markets ✔ Deliver value for shareholders © Siemens AG 2013. All rights reserved. 93 Capital
Slide 94: Investor Relations / Financial Communication / Financial Calendar
Investor Relations / Financial Communication / 6 Financial Calendar Investor relations Financial communication • Quarterly conference calls Contact post listing: • Investor roadshows and conferences • Regular updates at Capital Market Days • Transparency, consistency and credibility Financial calend
Slide 95: OSRAM: THE global lighting brand
OSRAM: THE global lighting brand 1 World class portfolio of lighting products and solutions 2 Lighting market set for accelerating growth Integrated lighting expert with trusted brand, excellent channel access and 3 technology leadership 4 Strategic objectives - commitments - rigorous transformation
Slide 96: Diverse, entrepreneurial, motivated and incentivized management
Diverse, entrepreneurial, motivated and 7 incentivized management Management team Wolfgang Dehen Dr. Peter Laier Dr. Klaus Patzak (CEO) (CTO) (CFO) Business Specialty Opto Lamps Light Luminaires Solutions Units Lighting Semicon. Engines Hans-J. Schwabe Aldo Kamper Dr. Peter Dobiasch Dr. Geert van de
Slide 97: Commitment to our investors
7 Commitment to our investors 1 Profitable growth: Gain market share 2 Profitability: EBITA margin of >8% as average over the cycle from FY 2015 3 Capital efficiency: ROCE clearly above WACC 4 Clear defined Dividend Policy: 30-50% payout ratio of net income 1) Competitive profitability profile in th
Slide 98: OSRAM's Transformation Path
7 OSRAM’s Transformation Path Back to normal (>8% EBITA as Ø over the cycle) Deliver Transform / 2015 Execute Transform / Execute 2014 Focus / 2013 Prioritize Back to normal Structure / People / Processes 2012 Growth of top and bottom-line (new products, payback of restructuring) 2011 Q1: Q2: Top-li
Slide 101: Historic P&L and Cash Flow Statement
Historic P&L and Cash Flow Statement Group P&L, €m Group Cash Flow Statement, €m FY FY FY H1 H1 FY FY FY H1 H1 (€m) 2010 2011 2012 2012 1) 2013 (€m) 2010 2011 2012 2012 1) 2013 Revenue 4,680 5,031 5,400 2,731 2,678 Net income / (loss) 335 246 (378) (327) 49 Amortization, depreciation and impairments
Slide 102: Historic Balance Sheet
Historic Balance Sheet Group Balance Sheet, €m Assets Equity and Liabilities FY FY FY H1 FY FY FY H1 (€m) 2010 2011 2012 2013 (€m) 2010 2011 2012 2013 Cash and cash equivalents (incl. Short term debt and current maturities of 19 44 32 51 25 22 47 53 available for sale financial assets) long-term deb
Slide 103: Segment information
Segment information Group and segments, €m Total revenue EBITA 2010 2011 2012 H1 2012 3) H1 2013 2010 2011 2012 H1 2012 3) H1 2013 General Lighting 2,944 3,164 3,387 232 107 (184) Therein: Lamps & Components 2,786 1,450 1,363 (76) (10) (15) Luminaires & Solutions 602 308 276 (82) (39) (40) Specialty
Slide 104: Disclaimer
Disclaimer Unless otherwise indicated, financial information contained in this presentation refers to combined financial statements and has been prepared in accordance with IFRS as adopted in the EU (“IFRS”). In this presentation the term “combined financial statements” refers to the audited combine
Slide 105: Reconciliation and definitions for Non-GAAP measures (I)
Reconciliation and definitions for Non-GAAP measures (I) To supplement OSRAM’s Combined Financial Statements presented in accordance with IFRS, OSRAM presents the following supplemental financial measures: Adjusted or organic growth rates of revenue; Free cash flow; EBITDA, EBITA and EBIT and EBITA
Slide 106: Reconciliation and definitions for Non-GAAP measures (II)
Reconciliation and definitions for Non-GAAP measures (II) Figures for Revenue Adjusted for Foreign Currency Translation Effects and Portfolio Effects We present, on a regional basis and for reportable segments, the percentage change of revenue from period to period adjusted for foreign currency tran
Slide 107: Reconciliation and definitions for Non-GAAP measures (III)
Reconciliation and definitions for Non-GAAP measures (III) We determine for foreign currency translation effects and portfolio effects adjusted percentage change of revenue by deducting the percentage figures for the foreign currency translation effects and portfolio effects from the nominal percent
Slide 108: Reconciliation and definitions for Non-GAAP measures (IV)
Reconciliation and definitions for Non-GAAP measures (IV) Free cash flow OSRAM defines Free cash flow as Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. The IFRS financial measure most directly comparable to Free cash flow is
Slide 109: Reconciliation and definitions for Non-GAAP measures (V)
Reconciliation and definitions for Non-GAAP measures (V) Quantitative reconciliation of EBIT, EBITA and EBITDA H1 H1 FY10 FY11 FY12 FY121) FY13 Net income (loss) 335 246 (378) (327) 49 Plus: Income taxes 175 130 32 182 4 Plus: Other financial (income) expense, net 3 3 12 2 6 Plus: Interest expense 9
Slide 110: Reconciliation and definitions for Non-GAAP measures (VI)
Reconciliation and definitions for Non-GAAP measures (VI) Net Debt, Total Debt, Adjusted Total Liquidity; Adjusted Net Debt We define net debt as total debt less adjusted total liquidity. Total debt is defined as short-term debt and current maturities of long- term debt plus long-term debt plus paya
Slide 111: Reconciliation and definitions for Non-GAAP measures (VII)
Reconciliation and definitions for Non-GAAP measures (VII) Limitations on the usefulness of OSRAM’s supplemental financial measures The non-GAAP measures reported by us may be subject to limitations as analytical tools. In particular: With respect to revenue figures adjusted for foreign currency tra
Slide 112: Glossary
Glossary Term Explanation ACC Adaptive cruise control AFTM Aftermarket, sales channel for Automotive lighting products AM Automotive Americas For OSRAM the region Americas comprises the US, Canada, Mexico and South America APAC For OSRAM the region APAC comprises Asia, Australia and the Pacific BU B
Slide 113: Glossary
Glossary Term Explanation GLS General Lighting Service lamp, an industry-wide synonym for incandescent lamp HID High Intensity Discharge Lamp HPD High Pressure Discharge Lamp HW Hardware IP Intellectual Property Connected Light @ OSRAM describes elements of a Lighting System digitally communicating
Slide 114: Glossary
Glossary Term Explanation LUM Business Unit Luminaires OEM Original Equipment Manufacturer OLED Organic Light Emitting Diode; also a business segment within OSRAM OS Business Unit Opto Semiconductors RAP Robust Application Platform module - OSRAM LED module family for street lighting SER Services, a

OSRAM Licht — Investor Day (May 2013) on 6ix

Osram Licht — Investor Day (May 2013)

Slide 1: Capital Market Day OSRAM

Slide 2: Disclaimer

Slide 3: Transaction overview

Slide 4: Ownership structure: Siemens will remain anchor shareholder

Slide 5: Today's presenters

Slide 6: OSRAM video

Slide 7: Capital Market Day OSRAM | May 17, 2013

Slide 8: OSRAM: THE global lighting brand

Slide 9: World class portfolio of lighting products and solutions

Slide 10: Lighting market set for accelerating growth

Slide 11: Integrated lighting expert with trusted brand, channel access and technology leadership

Slide 12: Strategic objectives – commitments – rigorous transformation program

Slide 13: Structures, processes, product pipeline and technology in place

Slide 14: Strong financial profile

Slide 15: Diverse, entrepreneurial, motivated and incentivized management

Slide 16: OSRAM: THE global lighting brand

Slide 17: OSRAM is the largest, pure play global lighting company

Slide 18: OSRAM is the clear global #2 lighting player

Slide 19: Opto Semiconductors is a consistent #2 and well positioned for growth

Slide 20: Specialty Lighting with strong customer relationships and aftermarket

Slide 21: Lamps & Components a global leader with excellent channel access

Slide 22: Luminaires & Solutions strong in LED dynamic lighting and professional luminaires

Slide 23: OSRAM: THE global lighting brand

Slide 24: More lighting, greater energy efficiency and higher value

Slide 25: Lighting market set for sustainable growth while industry transforms

Slide 26: Markets for SP and OS grow faster than total lighting market

Slide 27: SSL transition drives growth of General Illumination market

Slide 28: SSL with an accelerated life cycle and time to market

Slide 29: The lighting market is more than lumen/watt or lumen/$

Slide 30: Example: Dynamic lighting solution Baku Flame Towers

Slide 31: The Lighting Industry is in transformation to SSL, but keep in mind that…

Slide 32: OSRAM: THE global lighting brand

Slide 33: OSRAM develops from components only into integrated SSL lighting player

Slide 34: OSRAM: Trusted partner throughout the transition

Slide 35: Strong presence in all key technologies and distribution channels

Slide 36: OSRAM's excellent channel access

Slide 37: Industry leading R&D investment to secure technology leadership

Slide 38: Domain know-how across professional applications of the lighting spectrum

Slide 39: OSRAM: THE global lighting brand

Slide 40: Three strategic objectives: profitability, growth and capital efficiency

Slide 41: Harvest traditional lighting business to finance the SSL transition

Slide 42: Three strategic objectives: profitability, growth and capital efficiency

Slide 43: OSRAM strategy to integrate forward along industry value chain

Slide 44: Value creation through integrated approach at critical interfaces

Slide 45: Intelligent push/pull go-to-market model

Slide 46: Three strategic objectives: profitability, growth and capital efficiency

Slide 47: Instill entrepreneurial culture

Slide 48: Rigorous transformation program PUSH aimed at >8% margin

Slide 49: SP and OS are solid profit contributors; L&C and L&S have upside

Slide 50: OSRAM Business Units generally on track

Slide 51: OSRAM: THE global lighting brand

Slide 52: Structures, processes, product pipeline and technology in place

Slide 53: Integrated player in SSL products, systems and solutions

Slide 54: Filled technology and product pipeline with continuous innovation

Slide 55: Technology at the core of OSRAM's strength

Slide 56: Comprehensive technology and product portfolio (OS, SP)

Slide 57: Comprehensive technology and product portfolio (L&C, L&S)

Slide 58: Broad know-how creates new products, improves time to market and cost

Slide 59: Value through collaboration between OS and LE

Slide 60: Flawless project execution with improved Time to Market, cost and quality

Slide 61: KPIs for R&D cost, Time to Market and innovation

Slide 62: Efficient R&D spending while managing the transition to SSL

Slide 63: CTO priorities

Slide 64: OSRAM: THE global lighting brand

Slide 65: Strong financial profile

Slide 66: OSRAM is well positioned and has a strong financial profile

Slide 67: Revenue growth across segments and regions

Slide 68: SP and OS performance mitigates EBITA decline

Slide 69: FY 2012 impacted by transformation costs

Slide 70: SP: Strong performance with EBITA margins >15%

Slide 71: OS: Resilience compared to competitors

Slide 72: General Illumination in transformation phase

Slide 73: OSRAM PUSH with cumulated gross savings of ~€1bn

Slide 74: OSRAM PUSH savings include productivity improvements and pay-back

Slide 75: OSRAM PUSH well on track and in execution mode

Slide 76: OSRAM PUSH as key lever for transformation

Slide 77: Strong cash generation in FY 2012

Slide 78: Strong financial profile

Slide 79: Overall improved H1 FY 2013