(413624257) osram management presentation q4 fy14 preliminary unaudited
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8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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www.osram-licht.ag
OSRAM delivers on profitability targets,dividend proposed for the first time
Q4 FY14 Management Presentation
(preliminary, unaudited figures)
OSRAM Licht A
!o"em#er $%, &$'
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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2 Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
Safe arbor Statement
This presentation may contain forward-looking statements that are subject to risks and uncertainties,
including those pertaining to the anticipated benefits to be realized from the proposals described
herein. Forward-looking statements may include, in particular, statements about future events,
future financial performance, plans, strategies, expectations, prospects, competitive
environment, regulation and supply and demand. !"#$ %icht #& has based these forward-
looking statements on its views and assumptions with respect to future events and financial
performance. #ctual financial performance could differ materially from that projected in the forward-
looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. &iven these uncertainties, readers
should not put undue reliance on any forward-looking statements. The information contained in this
presentation is subject to change without notice and !"#$ %icht #& does not undertake any duty
to update the forward- looking statements, and the estimates and assumptions associated with
them, except to the extent re'uired by applicable laws and regulations.
(ue to rounding, numbers presented throughout this and other documents may not add up precisely
to the totals provided and percentages may not precisely reflect the absolute figures.
to totals and may precisely the figures
statements the and associated them to extent
due the uncertainty estimates and and performance
financial plans expectations competitive
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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!ro"p highlights FY14
OSRAM deli"ers on profita#ility targetsSuccessful finish of OSRAM ush hase *urther increase of L/0 sales sharerowth in more than half of the #usinesses
OSRAM strengthens technology leadership Automoti"e #usiness e1tends mar2et leadershipSuccessful shift from 33 to 433 wafer at OSSta#le in"estments in R50
OSRAM plans di"idend for the first time6oard proposes di"idend of 7$.8$ per share
0i"idend proposal corresponds to payout ratio of %$9')
OSRAM intends sta#le di"idend for the fiscal year &$'%
') of net income post minorities
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
Segment highlights FY14
#ransformation pays off $ ma%ority of b"sinesses are gro&ing
Specialty Lighting (S)Strengthened cost and technology leadership in Automoti"e
/1ceeds glo#al car production growth since '8 :uarters
;lay a2y ac:uisition strengthens growth area 0isplay < Optics
Opto Semiconductors (OS)OS #ac2 to dou#le digit growth rate in the fourth :uarter
!ew factory in =u1i #uilds #asis for future growthroducti"ity impro"ements o"ercompensated price decreases
L/0 Lamps and Systems (LLS);ontinued strong growth
>ery good de"elopment of dri"ers and light engines
6rea2-e"en target L/0r lamps ' *+'% on trac2
;lassic Lamps and 6allasts (;L6)Successful management of mar2et change challenges
*ocus on pricing discipline
Strong growth of halogen in the ?S
Luminaires 5 Solutions (LS)&$'% #rea2-e"en target confirmed
Luminaires with strong growth in L/0
Leadership team strengthened
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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OSRAM P"sh on tra'()
#argets of Phase * a''omplished $ Phase ** started
S"''essf"l finish of OSRAM P"sh Phase *
@ransformation costs (7m)
(*+'& ')
lant reductions
(*+'& ')
Beadcount reduction (C$$$)
(*+'& ')
As of OSRAM P"sh Phase * e+e'"tion tra'( re'ord
OSRAM ush gross sa"ings, cum. (7m)(*+'D '%)
EF' ',&$$~400 €min FY15
OSRAM P"sh Phase ** started
% Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
#argets of Phase * a''omplished
FY 14#arget Progress
%88 G4$$ 100%
'' ''100%
'' 100%
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6 Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
Modest reven"e gro&th -'omp./
02 'ontin"es to gain gro"nd!ro"p -3m/
Reven"e development1/ omments Q4 5o5
Q"arterly reven"e *+' and *+' re"enue up #y '9 comp.
Re"enue
(in 7m)
)omp.growth *+
om.
',DD&
*+'D
',D&4
'
*+'
',&FE
1
&
*+'
',&$D
D
*+'
',DD%
Q4
FY14
L/0 share at D89 (D'9 in prior year :uarter)
LLS #oosts re"enue (F&9 comp. y-o-y),
decline of ;L6 at -'D9 comp. y-o-y
OS and S show continued strong
performance, #oth on new :uarterly re"enue
highs LS with industry-leading L/0-share of %49
AA; with clear growth dri"en #y SH Americas only down due to e1it of traditionalmaintenance #usiness&rowth *+ (3) (2) (3) (6) 0
Reven"e by Segment6/ Q4
Opto Semi'ond"'torscomp. ''9 nom. ''9
&'9
lassi' 0amps 7 8allastscomp. ('D)9 nom. (')9
Reven"e by Region Q4
Ameri'as
Spe'ialty 0ightingcomp. '$9 nom. 89
&E9DD9
'$9
89
02 0amps 7 Systemscomp. F&9 nom. F&9
nom. ()9
comp. (D)9
DD9
&%9
&9 MA
nom. '9
comp. &9
0"minaires 7 Sol"tionscomp. (&$)9 nom. (&$)9
')nom.
(nominal growth) < comp. (compara#legrowth), adIusted for *J and portfolio effects
(in m) LLS # t (F&9
02 'ontin"es to gain gro"nd
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7 Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
&) #ased on sum of SegmentsK re"enue, w<o considering corp. items 5 consolidationAPA nom. 49
comp. %9
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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Ad%"sted 8*#A margin &ith 9: on prior year level!ro"p -3m/
8*#A development omments Q4 5o5
#dj. /0T#
$argin1 *+
/0T#$argin *+
2.1
*1.2
3.43.1
2.5
6.7
''&
E'
2.6
6.8
E'
2.9
:.8
ross margin increased on lower
transformation costs
ush measures and functional cost control
mostly compensated negati"e mi1 effects and
price decline
/6@A includes transformation costs of 744m, with
7&8m attri#uta#le to OSRAM ush hase
*+' net income 7'8Dm translates into #asic /S
of 7'.E$H di"idend of 7$.8$ proposed
D4 Spe'ial items ')
&$'D &$'
/6@A(7m)
-&(
*+'D
'
*+'
&
*+'
D
*+'
Q4
FY14
*+ ' & D *+
8*#A reported (&) 88 ''& E' E' D4 D'$
therein;
#otal Spe'ial items -1;;/ -;1</ -11/ -;=/ -6;/ -></ -1;?/
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
OSRAM ush transformation costsincl. personnel restructuring
(''$) (D$$) ('$) (D) (&$) (44) ('D$)
h d f ti l t t l tl
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02 0amps 7 Systems -00S/)
ontin"ed y5o5y improvement
Reven"e and 8*#A margin development omments Q4 y5o5y
#dj. /0T#
$argin1 *+
/0T#$argin *+
*:2.7
*:5.8
*14.5
*:9.4
*16.9
*13.5
'((
rowth pace remains high (F&9 comp. y-o-
y), dri"en #y L/0 lamps and dri"ers
rofita#ility impro"ements due to producti"ity
and "olume
Margin held #ac2 #y supply chain inefficiencies
L/0 lamps spots reached #rea2-e"en in *+'
/6@A includes 7%m special items
E(Re"enue
(7m)
)omp.
growth *+
'$%8%
40
''$
00S !ross Margin 0#M6/ -ad%./
@;><bps
*+'D
'
*+'
&
*+'
D
*+'
Q4
FY14
om.
&rowth *+')
21 42 35 60 72
7 00S !ross Margin 0#M -ad% /
7
ontin"ed y y improvement
AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand- ' & D Q4 ' & D Q4
alone-related costs and su#stantial legal and regulatory matters &) Last twel"e months *+'D *+'D *+'D FY1; *+' *+' *+' FY14
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9 Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
lassi' 0amps 7 8allasts -08/)
onsiderable 'ash generation
Reven"e and 8*#A margin development omments Q4 y5o5y
#dj. /0T#
$argin1 *+
/0T#
$argin *+
8.6
*1.:
1:.4
11.33.9
4.6
6.1
4.5
6.8
*1.2
L/0 transition leads to re"enue
reduction (-'D9 comp. y-o-y)H ;L6 "alue
initiati"e supported again sta#le prices
Again strong growth of BAL ;lassic
#usiness in Americas
OSRAM ush measures and "alue initiati"ecan mostly offset negati"e margin effects from
%(8 %E
%'' "olume declineH profita#ility also #enefitted
Re"enue(7m)
)omp.
growth *+
(8)
(D' (F&from functional cost control
*ree ;ash *low of 74Fm "s. 7D'm in
prior year :uarter
;omprehensi"e asset management
program started with focus on in"entories
Spe'ial items')
'
om.&rowth *+
& D Q4
*+'D *+ 'D *+' *+ '
8*#A reported (F) & (E) 8$
-49/ -1>?/ -4</ -91/
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
*+'D *+' *+' *+' FY14
(11) (13) (13) (19) (14)therein;#otal Spe'ial items
7
l d li fit #ilit l # fitt d
onsiderable 'ash generation
8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited
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0"minaires 7 Sol"tions -0S/)
Restr"'t"ring &ell progressed
Reven"e and 8*#A margin development omments Q4 y5o5y
Again se:uential growth
L/0 share at %49, up from D9 in +
Significant re"enue decline y-o-y-&$9 comp.)
mainly due to e1it of traditional maintenance
#usiness and luminaire portfolio adIustments
;ontinued profita#ility impro"ement
with restructuring showing effect LS #usinesses under common management
to dri"e further synergies, profita#ility and
growth
om. &rowth *+
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
Restr"'t"ring &ell progressed
#dj. /0T#$argin1 *+
*6.8 *2.9 *6.8
*3.1*17.3
*16.1
*:7.8*:5.3
/0T#$argin *+ *71.8
'%%'D%
'&(
'$' ''$
Re"enue
(7m)
)omp.
growth *+
(6)
( m)
Spe'ial items')
*+'D *+'D *+' *+'8*#A reported (4%) ('&E) ('') (F$)
*+'D
'
*+'
&
*+'
D
*+'
Q4
FY14
therein;
#otal Spe'ial items-=4/ -4/ -;/ -1</
1 (9) (21) (16) (20)
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Spe'ialty 0ighting -SP/)
#op line gro&th and profitability remain on high level
Reven"e and 8*#A margin development omments Q4 y5o5y
#dj. /0T#$argin1 *+
15.5
16.7
16.9
16.4
15.2 15.:
17.5
15.5
17.8
Automoti"e #usiness once more dri"er of
re"enue growth ('$9 nom. y-o-y) with growth
in L/0 as well as traditional #usiness
>olume holds adIusted /6@A margin on
prior year le"el despite mi1 effects including
significantly increasing L/0 components
/0T#
$argin *+
Re"enue
(7m)
)omp.growth *+
14.9
D48 DF4 D8D
11
DFE ($(
sourced from OS
;lay a2y to strengthen 0isplay < Optics
#usiness in *+'% (with G74$m re"enue and
operational margin on S le"el)
OL/0 technology e1pected to enter
automoti"e mar2etH OL/0 reported within S
starting ' *+'%
Spe'ial items')
*+'D
'
*+'
&
*+'
D
*+'
Q4
FY14
*+'D *+'D *+' *+'
8*#A reported E &'8 4$ &DF
therein;-?/ -6>/ -;/ -1</om.
&rowth *+2 5 7 5 9 #otal Spe' i al items
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
( m)
;l 2 t t th 0i l < O ti
#op line gro&th and profitability remain on high level
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Opto Semi'ond"'tors -OS/)
8a'( to do"ble digit gro&th
Reven"e and 8*#A margin development omments Q4 y5o5y
13.:
13.2 uarterly re"enues reach new pea2 le"el with 7&88m #enefitting from seasonalityH again newre"enue high
/0T#$argin *+
17.6
&4E
Re"enue
(7m)
)omp.growth *+
14.:
&F$ &F$ &E4
16.8
&88
rowth across all regions
/6@A margin y-o-y on high le"el #ased
on impro"ed product mi1 and operational
performance
5
*+'D
'*+'
&*+'
D*+'
Q4FY14
om.&rowth *+
10 17 12 2 11
( m)
8a'( to do"ble digit gro&th
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Reported 8*#A b"rdened by transformation 'osts,
P"sh m re than 'ompensates pri'ing press"re and mi+
Margin
>.>:
34;9m 9.>: Margin
.<:
Margin
1.?:
8*#A FY1; 8*#A FY1; ;ustomer nflation >olume < ;ost Reduction 8*#A FY14 8*#A FY14
as reported ad%"sted1/ rice ;hange 0egression Measures ad%"sted1/ as reported
< roduct (OSRAM ush)Mi1 < Others
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
P"sh more than 'ompensates pri'ing press"re and mi+
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OSRAM P"sh Phase ** ambition)
"m"lative gross savings of 31.;bn -6<1=56<1>/
!ross savings
in 3mey characteristics hase
&$$&4$ @ransformation
Bey data "ntil FY1>)
',$$$',$$
Operational
@otal gross sa"ings 7'.D#n
Beadcount') reduction GF,E$$
/1p. transformation costs&) G7$.%#n
ush hase &$'&-&$'%
ush hase &$'%-&$'F
@ransformation part includesN
increased restructuring in ermany
higher share of indirect functions
aspiration to delayer and de-matri1
') *ull-time e:ui"alent&) ncluding 7&8m already #oo2ed in *+'
"m"lative gross savings of 1 ;bn -6<1=
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O"r global S!7A program drives 'ompetitiveness
thro"gh lean str"'t"res
OSRAM S!7A Program
Secure f"t"re 'ompetitiveness for SS0
0ean organiCation 5 effi'ient pro'esses
S"stainable str"'t"ral improvements
0ean Qs
/fficient Q set"p, in'reased
fle+ibility
lear responsibilities 6?s <
ser"ice pro"iders
!* Sales Streamlining
OptimiPe Sales f"n'tions 5
'hannels 'ross 8Ds andregions
2e5layer and de5matri+
!SS 7 Pro'ess +'ellen'e
Align b"siness pro'esses
globally
65Pro'ess transformation
to pro"ide 'ost effi'ient 7
effe'tive servi'es for
#usinesses
S"stainably margin5a''retive savings) 31<<m
+ additional €160m from footprint mea!re
"it# an in$remental profit !pide in $ae of improed mar&et o!tloo&
thro"gh lean str"'t"res
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RO and FF FY14 targets a'hieved
!ro"p -3m/apital 1+pendit"re
?<
'E
51;
>>
Eet 2ebt bridge
''D
-'' $
S 'DOS &F
&8
-D &E 'F
-FF
;L6
LLS
D '%
%F
&$ *;* 7%'m EF
LS
Other
D
*+'D
E
*+'
Eet /6@0A Q Q non- Mainly Other ;A/J Other Eet
)apex as 0i"idity !=; currentassets
ta1espaid
income <e1pense
n"est.< 0i"idity*in.
+ of revenue 6.8 Q;FY14
and
lia#ilities
acti"itiesQ4
FY14
Operating Gor(ing apital RO Free ash Flo&
!ro"p G
n"entories
@rade recei"a#les
1,14=
84E
E%D
@
1,611
','%&
E%F 1.?:
?.;: 69461
@rade paya#les -4FF -F88*+'D *+' *+'D *+'
@urns')
*+'D *+'
') 0efined as re"enue (last twel"e months) di"ided #y wor2ing capital
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Bey finan'ial metri's
!om $9
hange
-y5o5y/
!om(D)9
;omp '9
'F Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
!ro"p-3m/
Q4 FY1; Q4 FY14hange
-y5o5y/
FY1; FY14
',DD& ',DD%;omp '9
%,& %,'&
&F.&9 &E.8 9 'F$#ps &E.& D'.9 D&$#ps
(E4) (E%) ' (D (DD') '$
(D'%) (&4%) %$ (','$D) (8E%) ''E
%% ''D %E ' %%4 '&
(&) D4 4$ D'$ &''
('.E)9 &.F9 %$#ps '.89 4.$9 '$#ps
'$E '$4 (&) '$ 8 D8
E.'9 E.$9 ('$)#ps F.F9 E.F9 '$$#ps
('$) ('D) (D) (&&) (%) 'F
ncome #efore () 'F 4' &F8 &&8
@a1es '4 (%) (&') ('F) (E4) (48)
!et ncome (&8) '& ' '8D '%8
6asic /S (in')
($.&E) $.'$ $.DE $.&4 '.E$ '.%
*ree ;ash *low E% %' (D) &E &'4 (4E)
;A/J (8$) (FF) 'D (&$F) (&D) (D4)
/mployees (in thousands) D% D (') D% D (')
!et 0e#t (Li:uidity) ('F&) (EF) (D'%) ('F&) (EF) (D'%)
AdI. !et 0e#t (Li:uidity) < /6@0A $.% ($.') $.% ($.')
/:uity Ratio 89 %'9 &$$#ps 89 %'9 &$$#ps
') ro forma
%'9 89
(D4)
- m/
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18 Management presentation *+' (preliminary, unaudited figures) !o"em#er $%, &$'
O"tloo( 6<1=
1 *or *+'% we e1pect re"enue on *+' le"el on a compara#le #asis
6 =e e1pect the adIusted') /6@A margin to #e at *+' le"el
; OSRAM ush hase in *+'% with gross sa"ings of roughly 7$$m
46iggest yearly share of transformation costs in *+'% will lead to asharp decrease in net income and RO;/
=*ree ;ash *low for *+'% e1pected to come in with a positi"e triple-digit 7m amount, #ut #elow *+' le"el
6ased on &$'% outloo2 and OSRAM3s midterm prospects we
intend di"idend continuity with 7$.8$ per share also for *+'%
') AdIusted for special items < special items include e.g. transformation costs, spin-off- < stand-alone-related costs and su#stantial legal and regulatory matters
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Finan'ial alendar and *nvestor 'onta'ts
Dp'oming events
Eovember 1<, 6<14
Roadshow *ran2furt
2e'ember ;, 6<14
S /uropean ndustrials ;onference, London
E b 11 2 b
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Eovember 11516, 6<14 2e'ember 4, 6<14
?6S /uropean ;onference London 0isclosure of annual report
Eovember 1;514, 6<146eren#erg /uropean ;onference London
Roadshow !ew +or2 5 6oston 2e'ember 1<511, 6<14
Roadshow Bong ong 5 Singapore
*nvestor Relations 'onta't
Mr. 6oris @ramm 8 E8 4&'D 4E4
Munich Office 8 E8 4&'D EF%
nternet http<<ww w .osram.co m <ir
/mail irosram.com