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Successful FY17 laying Foundation for sustainable Growth

Q4 FY17 Earnings Release (preliminary, unaudited figures)

OSRAM Licht AG | November 06, 2017 Light is OSRAM

www.osram.com

OSRAM Licht AGQ4 FY17 Earnings Release (preliminary, unaudited figures) | November 06, 2017

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Disclaimer

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertainingto 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. OSRAM Licht AG has based these forward-looking statements on its current views and expectationsand on certain assumptions of which many are beyond OSRAM Licht AG’s control. Actual financial performance could differ materiallyfrom that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financialperformance may be better or worse than anticipated. Given 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 OSRAM Licht AG does notundertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, exceptto the extent required by applicable laws and regulations.

This presentation includes references to non-IFRS financial measures, including, but not limited to: FCF, EBITDA, EBITA, EBIT, EBITDAmargin, capital expenditure, capital expenditure as percentage of revenue, net financial debt, and net working capital. We have providedthese measures and other information in this presentation because we believe they provide investors with additional information to assessour performance. Our use of these supplemental financial measures may vary from others in our industry and should not be consideredin isolation or as an alternative to our results as reported under IFRS.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals providedand percentages may not precisely reflect the absolute figures.


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“OSRAM successfully delivered against its strategic and financial targets in 2017. We accelerated our transformation into a technology company and have continued our investments in future growth. Today OSRAM is well positioned as a technology leader driving growth through innovation.

Our outlook for FY18 builds on the expectation of continuing our growth momentum, whilst investing into innovation and the expansion of our global footprint.

Based on the strong performance in FY17 we will propose to increase our dividend by 10% to €1.10.”

Fiscal Year 2017 –A successful, important year for OSRAM

FY17 highlights• Revenue of €4,128m; comp. growth

at 8.1%, driven by OS and SP• Adjusted EBITDA margin of 16.8%; y-o-y

earnings grow with €43m• Positive free cash flow despite higher

capital expenditures • Delivered on guidance for FY17

Statement from the CEO


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Strong performance in FY17

Revenue (€m) / comp. growth

3,785

+8.1%

FY17

4,128

FY16

Strong growth, driven by OS and SP

EBITDA adj. (€m) / margin

+43

FY17

695

16.8%

FY16

652

17.2%

Strong increase in EBITDA

Free cash flow (€m)

99

24

+75

FY17FY16

Higher than prior year despite higher capital expenditures

Earnings per share, diluted (€)

2.78

FY16

2.511)

FY17

+10.8%Double Digit growth in EPS

1) Adjusted for proceeds from the FELCO disposal in FY16; Reported EPS in FY16 for continued operations = €5.12


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3 Pillar Strategy “Diamond“Innovation and Growth Initiative

“5.1.5“ in 2020

• Successful divestiture of Lamps Business (Ledvance)

• Footprint: Expansion Regensburg and Wuxi started. Plovdiv finalized. Kulim: Ready for Production

• M&A: Leddartech, Digital Lumens, Maneri-Agraz, LED Engin, Tvilight, Beaconsmind, Blickfeld

• R&D : Increased innovation spend for Digital Applications Roadmap

• Delivered important Milestones in FY17

Three Pillar Strategy and Diamond Initiative in full execution mode


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Growth Trend continues

Plovdiv

Kulim

Schwabmünchen

Regensburg

Ramp-up cost

1) Estimated adj. EBITDA based on ramp-up, FX effects and R&D (approx.)

Guidance FY18• Comp. Revenue growth: 5.5% – 7.5%• Adj. EBITDA: ~ €700m

Adj. EBITDA FY18 (€m)

~700

40 - 6030 - 40

~77070 - 75

ActualFY17

695

GuidanceFY18

~850

Adj. EBITDAFXRamp-UpR&D

R&DRamp-up

FX

Like-for-like1) FY18


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Global Digitalization Trends driving OSRAM’s future

Source: OSRAM, Analysis of 28 market segments with internal and external sources, Market: 2017, growth: 2017 – 2021 p.a.

Illuminating Sensing

Visualizing Treating

Market: ~€30bn

Growth: +5 – +10%

Market: ~€10bn

Growth: ~ +10%

Market: ~€5bn

Growth:> +20%

Market: ~€5bn

Growth: > +10%


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OS LSSSP

Market size in bn €

Financials based on FY17

17‘‘€ 20‘‘€

Industry position

Global No. 2

Segment revenue

1.7 bn €

adj. EBITDA

473m €

adj. EBITDA margin

28.1%

Free cash flow

62m €

Growth drivers:

AutomotiveSmartphoneGeneral Lighting

2016 2020

Infrared

Opto Semiconductors (OS)


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2008 2012 2016 2020 2024 2028 2030

Profitable Opportunities ahead

CONCEPTUAL

OS Market

Backlighting

General Lighting

Premium, IR Emitter, Laser

Visualization and Sensing

New biz opportunities for OSIHS 2015

OS LSSSP


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New Applications and a compelling Strategy are expected to generate double digit Growth

1) Infineon, ams AG, Seoul Semiconductor, Cree, Epistar, Everlight Electronics, HC Semitek, TI, Renesas

Focus Applications OS revenue development (€bn)

Adj. EBITDA margin

Peer group1)

20 – 24%Target range OS25 – 29%

Visualizationand Sensing

General Lighting

Premium, IR Emitter, Laser

OS Strategy

“Shape the future” Win in new

business opportunities

“Gain competitive scale” “Mega”-sites in a low-

cost-locations (Kulim, Wuxi)

“Grow the core” Strengthen techno-

logy leadership

1.7

16

1.4

15 17 19e 20e18e

1.1

OS LSSSP


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Construction of Kulim:The video can be found on our website

http://www.osram-group.com/en/site-services/kulim


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• Construction on time (March 2016 – November 2017)

• Finished below budget• Production ramp up in November, 2017• Faster start of Premium production

OS in a leading industry Position –Technology, scale and factor cost

Best in Class & Market Leadership2. Scale and 3. Factor Cost

Kulim: Worldwide largest 6’inch LED fab is starting production

Revenue growth

Innovation

Profitability

11. Technology

OS LSSSP

Best factor costs and righteconomies of scale

Leading in technology


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OS on its way to become the largest Business Unit of OSRAM

OS expected revenue share by segments; OSRAM expected revenue share by Business Unit

~85%

~15%

~82-84%

~16-18%

Opto 2015 Opto 2020e

LSS

LED for GI

~7%OS

premium

SP

OSRAM 2020eBIZ-Plan 2015 ~ 35% BIZ-Plan 2015

~ 15%

LED for General Illumination

Automotive / Industry / Consumer1) (premium)

1) Mobile flash, backlighting, automotive signalling, automotive front lighting, automotive interior, infrared illumination, projection, laser, stage lighting, video wall, white goods

OS LSSSP


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Specialty Lighting (SP)

Automotive

Entertainment

Industry position

Global No. 1

Segment revenue

2.3bn €

Adj. EBITDA

339m €

adj. EBITDA margin

14.7%

Free cash flow

235m €

1)

Growth drivers:

AutomotiveEntertainmentIndustry

Market size in bn €

12‘‘€ 15‘‘€

2016 2020

1) In Automotive lighting, Financials based on FY17

OS LSSSP


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SSL Business

LED

System

Multi-function driver and controller

LEDs and electronics on PCB

Chip and Package

Fully integrated "Plug & Play" light engines

Assemblies

Lamp

Elec-tronics

FixtureFixture

HAL / HID / SIGN

Integrated / Non-Integrated

Traditional Business

Assemblies

Set

mak

er

Ligh

ting

Supp

lier

Set

mak

er

102989695

20202019

CAGR 2%

20182017

5.5

2017

4.1

CAGR 12%

2020

In million units; Source: IHS Sep 2017

Market development light vehicle production Exterior automotive lighting1), in € bn

Source: OSRAM market data

Electronics

Module

1) Light sources & controls market

Ligh

ting

Supp

lier

New Technologies triggering shifts in Value chains and new Opportunities for Collaboration

Trad.

LED

OS LSSSP


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Term Sheet signed: Possible Joint Venture with Continental offers additional value creation for OSRAM

Strengthens Technology and Market leadership position in Automotive Lighting

Enhances existing Automotive Lighting portfoliowith key new applications and competencies

Strong growth in a fast growing market (>10% p.a expected market growth)

Advanced Driver Assistance Systems • Dynamic and high-resolution light distribution• Shape car electronics architectureConnectivity • Car-to-Car (“seeing around the corner“)• Car-to-Infrastructure (traffic lights)

Autonomous Driving• Processing of vehicle environment data

LED Module Electro-nics System Fixture

OSRAM Continental GmbH

OS LSSSP


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AutomotiveSSL lighting

Joint Venture would create Opportunity to unlock further Revenue growth potential

1) Continental, Hella, Leoni AG, Norma Group, ElringKlinger, Ushio, Valeo, Autoliv Joint Venture

Focus Applications SP revenue development (€bn)

Adj. EBITDA margin

Peer group1)

11 – 15%Target range SP11 – 14%

SP Strategy

“Drive innovation” Front lighting,

electronics and sensor system

2.3

16 20e19e18e17

2.1

15

1.9

Special lighting “Focus and expand ” Entertainment

and Industry

AutomotiveTRAD lighting

“Last man standing” Market leader

(NAFTA and EMEA) Grow share in APAC

OS LSSSP


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Lighting Solutions and Systems (LSS)

Segment revenue

1.0 bn €

adj. EBITDA

-21m €

adj. EBITDA margin

-2.1%

Free cash flow

-68m €

Growth drivers:

Energy saving

Market size in billion €

67‘‘€ 89‘‘€

2016 2020

Beyond lighting

Industrial sites

City beautification

OS LSSSP

Financials based on FY17


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New businessBeyond Lighting

“Buy and Build” Digital Lumens,

Beaconsmind, …

DSSmart Components

Portfolio of 3rd Pillar “LSS” in motion

1) LSS: Zumtobel, Fagerhult, Philips Lighting New business

Focus Applications LSS revenue development (€bn)

Adj. EBITDA margin

Peer group1)

6 – 12%Target range LSS6 – 8%

LSS Strategy

“Selective expansion” Organic and

inorganic growth

20e19e18e17

1.0

16

1.0

15

0.9

OS LSSSP

LSGeneral Lighting

“Get profitable” Portfolio streamlining Cost structure,

Footprint


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Illuminating

Visualizing

Sensing

Treating

No autonomous driving without OSRAMAdaptive cruise control system (LIDAR)

LED / Laser head-up display

Headlamp (e.g. laser, matrix)

Pre crash sensing (LIDAR)Rain sensor

Daytime running light

Side view and lane detection

Ambient light sensor

Driver monitoring

Interior lightingAmbient lighting

Gesture recognition

3-D environment detection (LIDAR)

Rear light

LED Flash

Display backlighting

Bio-Monitoring

Eye tracking

IR remote controlGesture recognition

No digital communication without OSRAM

Ambient light sensor/ proximity sensor

Facial recognition

Iris-Scanning

Iris scan or facial recognition

Indicators

No wellbeing without OSRAM

Mobile Food-Analysis

Baby monitoring

Wearables

No entertainment without OSRAM

Concerts

Cinema

Shows & Events

Stage & Theatre

Studio, TV & Film

Wireless networks for park management

Personalized advertising

Indoor-Navigation

Access control

Integrated sensors for traffic detection and traffic control

Intelligent LED-street lights

Light management systemsLED-indoor luminaires

and components

Security applications

OSRAM equips Smart Cities

Digitalization and new Applications are creating significant Market opportunities for OSRAM


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Q4 FY17 comparable revenue growth at 12.4% (~7% excl. prior year carve-out effects)

Revenue growth continues for OS and SP; Market environment for LSS remains challenging

Q4 FY17 adjusted EBITDA margin improves 110 bps YoY to 15.5%

Free Cash Flow slightly negative in Q4 FY17 - as expected: OS capital expenditures (Kulim); FY17 Free Cash Flow positive with €99m

EBITDA Special Items at €42m in Q4 FY17, largely driven by cost structure measures for LSS; FY17 EBITDA Special Items at €74m in line with guidance

Q4 FY17 reported EPS at 40 Eurocents; adjusted EPS at 73 Eurocents (+ 45% YoY)

Summary financial performance: Strong finish of FY17

FY17 guidance delivered: Growth, Adj. EBITDA margin, EPS and FCF


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Strong growth continues in Q4 FY17

Revenue (€m)Comments Q4 FY17Quarterly development / comp. growth1)

991909

Q4/16

-0.6%

7.6%

Q2/17

3.2%

Q4/17Q1/17 Q3/17

12.4%

1,029

9.7%

1,0561,051

Regional split Q4 FY17

39.1%25.5%

35.4%

EMEA

AmericasAPAC

Comp. growth14.5%18.9%1.0%

1) Comparable growth year-over-year, adjusted for currency and portfolio effects.

Growth at approximately 7% when adjusted for carve-out related IT measures in Q4 FY16 (~ €47m)

APAC recorded double digit growth in all reporting segments

EMEA growth driven by SP and OS, double digit decline in traditional ballasts as LEDification of lighting controls accelerates

US market continues to be challenging for LSS

LED share at 68% vs. 65% in Q4 FY16


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Revenue (€m)

Weaker USD affects Q4 FY17 growth rates of all business units

OSRAM Group: Revenue bridge Q4 FY17 YoY

Revenue growth Q4 FY17

Nom.growth FX Portfolio Comp.

growth

Opto Semiconductors 15.3% -4.1% 0.0% 19.4%

Specialty Lighting 11.4% -4.1% 2.1% 13.4%

Lighting Solutions & Systems -5.9% -3.1% 3.1% -6.0%

Comments

Foreign exchange (FX) impact largely driven by appreciation of EUR against USD

Portfolio effect driven by M&A activities (NovitaTec, Maneri-Agraz, Digital Lumens, LED Engin) plus business with LEDVANCE

Nominal growth at 13.2%, currency effects of -400bps and portfolio effects of +480bps

-4.0%

FX

4.8%

Portfolio

12.4%

Comparable growth

1,029

Revenue Q4/17

Revenue Q4/16

909


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Volume growth driving increase in earnings and margin expansion

Adjusted EBITDA (€m) / Adjusted EBITDA margin (%)Adj. EBITDA contribution Q4 FY17 YoYAdjusted EBITDA margin1) Q4 FY17 YoY

1) Adjustment for special items (S.I.) includes e.g. transformation costs, substantial legal and regulatory matters, and costs related to mergers and acquisitions activities.

Adj. EBITDA margin Q4/17

15.5%

Volume / Mix / Other

1.6%

Portfolio

-0.5%

FX

0.0%

Adj. EBITDA margin Q4/16

14.4%

CommentsComments

Adjusted EBITDA margin above PYQ, driven by growth in OS and SP

Productivity programs deliver cost efficiencies of approximately €71m in the quarter

Contribution to profitability from OS and SP overcompensates lower profitability in LSS

Adjusted EBITDA in corporate items of €-26m in line with expectations; similar to PYQ

27-14

OS SP

14

Adj. EBITDA Q4/17

160

CIE

2

LSSAdj. EBITDA Q4/16

131


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Business units: Key financials Q4 FY17

429372

+19.4%

Q4/17Q4/16

12194

Q4/17

28.2%

Q4/16

25.4%OS

Revenue (€m) / Comp. growth (%) Adj. EBITDA1) (€m) / Adj. EBITDA margin (%)

551495

Q4/16

+13.4%

Q4/17

715811.7%

Q4/17

12.9%

Q4/16

SP

242258

-6.0%

Q4/17Q4/16

-76

2.5%

Q4/17

-3.0%Q4/16

LSS

Comments

OS Strong finish of FY17; all business segments contributing Profitability remains on high level despite ongoing investments

into innovation and marketing spend Kulim production start on track for November, 2017

SP SP grew by an estimated 6% (when adjusting for carve-out

related effects in PYQ) LED and aftermarket drive growth; Traditional light sources

with a modest decline

LSS Challenging business development especially in the US

market; APAC region with double digit growth Lack of growth and less favorable mix leads to negative

EBITDA Structural cost measures underway



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Revenue / Adjusted EBITDA1) (€m) / Adjusted EBITDA margin (%)

Summary: FY17 performance in line with guidance

Adjusted EBITDA

69516.8%

Revenue

4,128

Comp. growth8.1%

Comments

FY17 growth acceleration for OSRAM driven by OS and SP;LSS business performance disappointing; challenging US market in H2; fast decline in traditional ballasts

Adjusted EBITDA at high level; OSRAM adj. EBITDA margin slightly lower due to LSS; lower OS margin reflects upfront investments into general lighting (R&D, M&S)

OS FY17 SP FY17 LSS FY17

OSRAM FY17

28.1%

Revenue

1,685

Comp. growth19.1%

Adjusted EBITDA

473

Adjusted EBITDA

339

14.7%

Revenue

2,312

Comp. growth6.7%

-2.1%

Revenue

989Comp. growth

-2.0%

Adjusted EBITDA

-21

+€43m/-40 bpsvs. PY

+€65m/-70 bpsvs. PY

+€34m/+40 bpsvs. PY

-€37m/-370 bpsvs. PY



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FY17: Actively deployed capital of around €1bn; Positive free cash flow

Free Cash Flow / Asset Management / Net Liquidity (€m)Net liquidity bridgeFree cash flow1)

Net working capital (days outstanding2)) Capital expenditure (percent of revenue)

239443

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€187m

FY17

537 (13.0%)

35 57

FY16

349 (9.2%)

41 69 Others / corporate

LSSSPOS

634655 662

-752-601580

544 (48)

Sep 30, 2016

634 (61)

-14.1%

Trade payables

Trade receivablesInventories

Sep 30, 2017

1) Defined as net cash provided by (used in) operating activities less capital expenditure.2) Defined as operating net working capital divided by revenue (last twelve months) times 365 days.

99

24

+75

FY17FY16

99

478

411396

Net liquidity Sep 30, 2017

Cash flow from disc. operations and others

-107

Other investing

and financial

items

-17

Dividend payment

-97

Share buyback

-165

Acquisitions and financial investments

-176

LEDVANCE sale

FCFNet liquidity Sep 30, 2016


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FY17 reported EPS of €2.78 in line with guidance

Earnings per share, diluted (€)Adjusted EPS FY17Adjusted EPS1) Q4 FY17

+44.6%

Q4/17

0.73

0.40

0.34

Q4/16

0.51

0.45

0.06

Reported EPSEPS from S.I.

Reported EPS of €2.78 approximately at midpoint of FY17 guidance (€2.70 – €2.90) FY16 reported EPS greatly impacted by a one time benefit related to the proceeds from the FELCO disposal (€2.61) Adjusted EPS grows close to 8% for the FY17 Tax rate at approx. 30%, in line with expectations

Comments


Q4/17

3.38

2.78

0.60

FY17

+7.8%

FELCO2.61

2.51

FY16

3.14

-1.98

EPS from S.I.Reported EPS

5.12


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Assumptions FY18 guidance: Current business environment

Light vehicle production YoY

China

-0.1%

6.3%

NAFTA

1.5%

-2.6%

Europe

3.2%2.6%

IHS estimate 2018IHS estimate 2017

US nonresidential construction and electric lighting orders

Source: IHS report 10/2017 calendar year figures recalculated according to OSRAM fiscal year.

-10%

-5%

0%

5%

10%

15%

09/1709/13 09/14 09/15 09/1609/11 09/12

Census Bureau US Construction Nonresidential SA, YoY US Durable Goods New Orders Electric Lighting Equipment, 12 months rolling, YoY


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Foreign Exchange / Adjusted EBITDA1) (€m)

FX headwind expected for FY18

~37%~15%

~48%

EUR OthersUSD

Comments

Appreciation of EUR vs. USD expected to have unfavorable impact on OSRAM´s revenue and profitability in FY18 given the company´s unbalanced currency footprint

EUR / USD sensitivity: +/- 1 USD cent = ~ €9m adj. EBITDA (FY17 basis, annualized)

Hedging policy of OSRAM is at a minimum to hedge the total net currency position between 75% and 100% for the next three months

Revenue by currency

Exchange RateEUR / USD FY17 Assumption

FY18

Period end 1.18 1.18

Average 1.11 1.18Guidance, expected Adj. EBITDA

FY18

~700

Expected Business Improvement

(net of ramp-up cost)

75-80

FX

-70 to -75

Adj. EBITDA FY17

695

16.8%

Adjusted EBITDA development (expectation)



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Outlook FY18

Comparable revenue growth:~ 5.5% - 7.5%

Adjusted EBITDA: ~ €700m

Free cash flow:~ €-50m - €-150m

Earnings per share: ~ €2.40 - €2.60


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Financial calendar and IR contact information

Upcoming events

November 09, 2017Deutsche Bank Conference, Paris, France & Roadshow, London, UK

November 10, 2017Roadshow, Frankfurt, Germany

November 13, 2017Roadshow, New York, USA

November 14-15, 2017UBS European Conference, London, UK

Munich Office + 49 89 6213 4875

Internet http://www.osram-group.de/en/investors

Email [email protected]

Investor Relations contact


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34

Applications that will shape OSRAM‘s Future

Visualizing

Sensing

Treating

Illuminating


35

No autonomous driving without OSRAM

Rear light

Interior lightingAmbient lighting

Adaptive cruise control system (LIDAR)Gesture recognition

Pre crash sensing (LIDAR)

Rain sensor

LED/Laser head-up display

Daytime running light

3-D environment detection (LIDAR)

Side view and lane detection

Ambient light sensor

Driver monitoring

Headlamp (e.g. laser, matrix)

LED – Non visibleLED – Visible


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No digital communication without OSRAM

LED – Non visibleLED – Visible

LED Flash

Display backlighting

Bio-Monitoring

Eye tracking

IR remote control

Gesture recognition

Ambient light sensor/proximity sensor

Facial recognition

Iris-Scanning

Iris scan or facial recognition

Indicators


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No wellbeing without OSRAM

Mobile Food-Analysis

Smart devices

Baby monitoring


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No entertainment without OSRAM

Concerts

Stage and Theatre

Studio, TV and Film

Shows and Events Cinema


39

Wireless networks for park management

Personalized advertisementIndoor-Navigation

Access control

Integrated sensors for traffic detection and traffic control

Light management systemsLED-indoor luminaires and components

Security applications

OSRAM enables Smart Cities

Intelligent LED-street lightsLED – Non visibleLED – Visible


40

OSRAM Continental GmbH

2018 2018Today

Internal/External Communication

Signing of JV Contract

Closing: Go Live “Day 1”

2021

Release of 1st joint developed product

Next steps and milestones


41

Digitalization drives innovation across the whole value chain We broaden our competencies also by M&A

Electronic Software

System (Component/Module + Electronic + Software)

Solution (System + Service)

Service

Component/Module


42

Overall highlights of employee survey

74

82

73

79

83

76

68

Leadership

Vision, values and strategy

Retention

Working conditions

Sustainable engagement

Empowerment

Openness

4

8

2

n/a

4

7

7

9

7

7

4

5

5

7

OSRAM overall 2014

High technology norm 2016Total favorable score

Improvement/Higher values compared to external norm

Key messages

• Significant improvements in all categories compared to 2014

• Outstanding results in comparison to other high tech companies

• 81% of employees worldwide participated


43

Key financial metrics (preliminary, unaudited)Group (€m) Q4 FY16 Q4 FY17 Change (y-o-y) FY16 FY17 Change (y-o-y)

nom. 13.2% nom. 9.1%Revenue 909 1,029 comp. 12.4% 3,785 4,128 comp. 8.1%Gross margin 35.1% 33.2% -190 bps 35.7% 34.8% -100 bpsR&D -92 -95 3.5% -334 -364 9.0%SG&A -163 -190 16.4% -604 -697 15.4%EBITA 74 65 -12.9% 440 423 -3.8%

EBITA margin 8.2% 6.3% -190 bps 11.6% 10.3% -140 bpsAdj. EBITA 80 108 34.1% 471 500 6.2%

Adj. EBITA margin 8.9% 10.5% 160 bps 12.5% 12.1% -30 bps

EBITDA 125 118 -5.5% 621 621 0.0%EBITDA margin 13.7% 11.4% -230 bps 16.4% 15.1% -140 bps

Adj. EBITDA 131 160 21.8% 652 695 6.6%Adj. EBITDA margin 14.4% 15.5% 110 bps 17.2% 16.8% -40 bps

Financial result (including at-equity result) -5 -2 -61.8% 290 -8 -Income before income taxes 60 55 -8.0% 701 389 -44.5%Taxes -15 -15 -1.9% -169 -114 -32.4%Net income 44 40 -10.2% 532 275 -48.3%Diluted EPS in € 0.45 0.40 -11.1% 5.12 2.78 -45.7%

Free cash flow 30 -28 - 24 99 316.0%CAPEX -129 -192 48.5% -349 -537 53.7%Net liquidity 396 411 3.8% 396 411 3.8%Adj. net liquidity / EBITDA1) 0.4 0.4 0.0% 0.3 0.4 33.3%Equity ratio 51.8% 58.0% 620 bps 51.8% 58.0% 620 bpsEmployees (in thousands) 24.6 26.4 7.0% 24.6 26.4 7.0%

Please note: All numbers represent continuing operations, i.e. excluding Ledvance business sold in March 2017 and presented as discontinued operations starting Q4 FY16. 1) Adj. net liquidity: Net liquidity less pension plans and similar commitments.


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Segment overview (preliminary, unaudited)

Q4 FY17 (€m) OS2) SP2) LSS CIE OSRAM Licht Group

Revenue 429 551 242 -193 1,029Change % vs. PY reported 15.3% 11.4% -5.9% 13.2%Change % vs. PY comparable 19.4% 13.4% -6.0% 12.4%EBITA 88 51 -43 -32 65EBITA margin 20.6% 9.3% -17.9% 6.3%EBITA before special items 88 58 -13 -26 108EBITA margin before special items 20.6% 10.6% -5.4% 10.5%EBITDA 121 65 -37 -31 118EBITDA margin 28.2% 11.8% -15.2% 11.4%Special items EBITDA 0 -6 -30 -6 -42therein transformations costs 0 -2 -28 -4 -34EBITDA before special items 121 71 -7 -26 160EBITDA margin before special items 28.2% 12.9% -3.0% 15.5%

Assets1) 858 724 345 2,310 4,238Free cash flow -2 13 12 -50 -28

Additions to intangible assets and property, plant and equipment 161 22 8 1 192Amortization 1 4 3 1 8Depreciation 33 14 6 0 53

1) Net assets on segment level; total assets on group level; CIE includes reconciling items.2) Beginning with fiscal year 2017, certain external revenue in the automotive sector, yet reported in the OS segment, are reported at SP. Instead, OS now reports intersegment revenue (eliminated within the corporate consolidation).

Prior-year figures were adjusted accordingly.


45

Segment overview (preliminary, unaudited)

FY17 (€m) OS2) SP2) LSS CIE OSRAM Licht Group

Revenue 1,685 2,312 989 -858 4,128Change % vs. PY reported 18.9% 8.3% -1.5% 9.1%Change % vs. PY comparable 19.1% 6.7% -2.0% 8.1%EBITA 351 266 -96 -98 423EBITA margin 20.9% 11.5% -9.7% 10.3%EBITA before special items 351 289 -43 -97 500EBITA margin before special items 20.9% 12.5% -4.4% 12.1%EBITDA 473 317 -72 -97 621EBITDA margin 28.1% 13.7% -7.3% 15.1%Special items EBITDA 0 -22 -51 -1 -74therein transformations costs 0 -9 -49 1 -57EBITDA before special items 473 339 -21 -96 695EBITDA margin before special items 28.1% 14.7% -2.1% 16.8%

Assets1) 858 724 345 2,310 4,238Free cash flow 62 235 -68 -130 99

Additions to intangible assets and property, plant and equipment 443 57 35 2 537Amortization 3 14 7 2 26Depreciation 121 52 24 1 198

1) Net assets on segment level; total assets on group level; CIE includes reconciling items.2) Beginning with fiscal year 2017, certain external revenue in the automotive sector, yet reported in the OS segment, are reported at SP. Instead, OS now reports intersegment revenue (eliminated within the corporate consolidation).

Prior-year figures were adjusted accordingly.


46

Consolidated statement of income (preliminary, unaudited)

Three months endedSeptember 30

Twelve months endedSeptember 30

2017 2016 2017 2016

Revenue 1,029 909 4,128 3,785Cost of goods sold and services rendered -687 -590 -2,692 -2,432Gross profit 342 319 1,436 1,353Research and development expenses -95 -92 -364 -334Marketing, selling and general administrative expenses -190 -163 -697 -604Other operating income 4 1 30 6Other operating expense -4 -1 -7 -9Income (loss) from investments accounted for using the equity method, net 0 0 -2 306Interest income 2 1 7 2Interest expense -3 -4 -12 -17Other financial income (expense), net 0 -1 -1 -2

Income before income taxes OSRAM (continuing operations) 55 60 389 701Income taxes -15 -15 -114 -169

Income OSRAM (continuing operations) 40 44 275 532Income (loss) from discontinued operation, net of tax 3 -92 -51 -134Net income (loss) 42 -48 224 398

Attributable to: Non-controlling interests 1 -1 3 1Shareholders of OSRAM Licht AG 41 -46 220 397

Basic earnings per share (in €) 0.43 -0.46 2.27 3.84Diluted earning per share (in €) 0.43 -0.46 2.26 3.83

Basic earnings per share (in €) OSRAM (continuing operations) 0.40 0.45 2.79 5.14Diluted earning per share (in €) OSRAM (continuing operations) 0.40 0.45 2.78 5.12


47

Consolidated statement of financial position (preliminary, unaudited)

As of September 30

As of September 30

As of September 30

As of September 30

2017 2016 2017 2016Assets Liabilities and equityCurrent Assets Current liabilitiesCash and cash equivalents 609 457 Short-term debt and current maturities of long-term debt 16 20Available-for-sale financial assets 2 1 Trade payables 752 601Trade receivables 634 580 Other current financial liabilities 29 50Other current financial assets 44 53 Current provisions 75 98Inventories 662 655 Income tax payables 99 89Income tax receivables 35 52 Other current liabilities 309 305Other current assets 112 192 Liabilities associated with assets held for sale 0 785Assets held for sale 2 1,136 Total current liabilities 1,280 1,948Total current assets 2,100 3,124 Long-term debt 184 42Goodwill 148 77 Pension plans and similar commitments 150 206Other intangible assets 142 113 Deferred tax liabilities 10 2Property, plant and equipment 1,396 1,060 Provisions 32 18Investments accounted for using the equity method 66 - Other financial liabilities 10 2Other financial assets 13 4 Other liabilities 111 97Deferred tax assets 314 384 Total liabilities 1,778 2,315Other assets 59 38 EquityTotal assets 4,238 4,801 Common stock, no par value 105 105

Additional paid-in capital 2,035 2,035Retained earnings 699 512Other components of equity 5 60Treasury shares, at cost -392 -237Total equity attributable to shareholders of OSRAM Licht AG 2,452 2,473Non-controlling interests 8 13Total equity 2,460 2,486Total liabilities and equity 4,238 4,801


48

Consolidated statement of cash flows (preliminary, unaudited)

Three months ended Twelve months endedSeptember 30 September 30

2017 2016 2017 2016

Cash flows from operating activities

Net income (loss) 42 -48 224 398

Adjustments to reconcile net income (loss) to cash provided

Income (loss) from discontinued operation, net of tax -3 92 51 134Amortization, depreciation, and impairments 61 60 224 210Income taxes 15 15 114 169Interest (income) expense, net 1 4 5 15

(Gains) losses on sales and disposals of businesses, intangible assets, and property, plant and equipment, net 1 1 -16 2

(Gains) losses on sales of investments, net - - 0 -307(Income) loss from investments 0 - 2 0Other non-cash (income) expenses 7 - 27 3Change in current assets and liabilities

(Increase) decrease in inventories 19 -14 -23 -75(Increase) decrease in trade receivables -11 38 -62 -20(Increase) decrease in other current assets -2 -13 11 -101Increase (decrease) in trade payables 38 8 160 25Increase (decrease) in current provisions -9 5 -29 22Increase (decrease) in other current liabilities 19 46 -26 114

Change in other assets and liabilities 17 -4 12 14Special contributions to pension plans and settlement of a pension plan - - - -169Income taxes paid -32 -30 -45 -64Dividends received 0 0 0 1Interest received 2 1 7 2

Net cash provided by (used in) operating activities OSRAM (continuing operations) 164 159 636 373Net cash provided by (used in) operating activities discontinued operation -2 -25 -87 -186

Net cash provided by (used in) - OSRAM Licht Group (total) 163 134 548 187

Three months ended Twelve months endedSeptember 30 September 30

2017 2016 2017 2016

Cash flows from investing activitiesAdditions to intangible assets and property, plant and equipment -192 -129 -537 -349Acquisitions, net of cash and cash equivalents acquired -46 - -108 -Purchases of investments -59 - -68 -Proceeds and payments from sales of investments, intangible assets, and property, plant and equipment 0 -1 27 327Proceeds and payments from sales of business activities, net of cash and cash equivalents disposed of - 0 380 -1Net cash provided by (used in) investing activities OSRAM (continuing operations) -297 -130 -305 -23Net cash provided by (used in) investing activities discontinued operation - -9 -14 14Net cash provided by (used in) investing activities -OSRAM Licht Group (total) -297 -139 -319 -9Cash flows from financing activitiesPurchase of treasury stock -1 -93 -165 -234Proceeds from issuance of long-term debt - - 150 -Repayment of long-term debt -2 - -8 -Change in short-term debt and other financing activities -9 4 -3 9Interest paid -1 3 -9 1Dividends paid to shareholders of OSRAM Licht AG - - -97 -94Dividends paid to non-controlling interest shareholders -4 - -7 -Net cash provided by (used in) financing activities OSRAM (continuing operations) -18 -86 -139 -319Net cash provided by (used in) financing activities discontinued operation - -20 -16 -24Net cash provided by (used in) financing activities -OSRAM Licht Group (total) -18 -106 -154 -343Effect of exchange rates on cash and cash equivalents -9 -2 -25 -3Net increase (decrease) in cash and cash equivalents -162 -113 50 -168Cash and cash equivalents at beginning of period 771 672 559 727Cash and cash equivalents at the end of period 609 559 609 559Less: Cash and cash equivalents of discontinued operation at end of the reporting period - 102 - 102Cash and cash equivalents at end of period (consolidated statement of financial position) 609 457 609 457

successful fy17 laying foundation for sustainable growth/media/files/o/osram/... · global no. 1...

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