OSRAM Analyst Day 2016 - Dr. Olaf Berlien | January 2016 Light is OSRAM - OSRAM Group
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20.01 17:00 www.osram.com OSRAM Analyst Day 2016 Dr. Olaf Berlien | January 2016 Light is OSRAM
Safe Harbor 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. OSRAM Licht AG has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial perfor- mance 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. 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 not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. Due 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. 2 OSRAM Analyst Day 2016
FY 2015 has been very successful for OSRAM
Revenue FY (in €bn) Adjusted EBITA (in €m)
26.3%
8.4% Nom. +8.4% in % of revenue
Comp. -1.0% 2014 8.7%
2015 10.2%
5.1 5.6 567
449
2014 2015 2014 2015
1)
Reported Free Cash Flow (in €m) Share price development 2015 (in €)
38% 18%
299 38.8
216 32.8
2014 2015 Jan 1st Dec 30th
3 OSRAM Analyst Day 2016
1) Closing price Jan 1st and Dec 30thEnhanced flexibility enabling
clear roadmap for success
Decision to reorganize OSRAM
Spring
as a holding company with clear, Finalized
2015
decentralized mgmt. structures
April
Decision to carve-out In implementation
2015
Lamps business
September Decision to sell Felco shares
2015 for > € 350 mio. Closing achieved in Dec
November Three pillar strategy to develop
2015 OSRAM In implementation
Continuous and sustainable
2020 5.1.5
value creation
4 OSRAM Analyst Day 2016Initial situation
Building on strong positions across our markets
Market Performance
Position 2015
OSRAM 2015 revenue share
a LED based company
w/Lamps
Specialty Lighting 1) • Solid growth
(SP) #1 • High profitability
46%
Opto Semicon- • Strong growth 54%
ductors #2 • High profitability
(OS)
Lighting Solutions 2) • In transfor- w/o Lamps
& Services #5 mation process
(LSS)
45%
55%
Lamps
(LP) #2 Carve-out
5 OSRAM Analyst Day 2016
1) Automotive LED-based technology
2) Luminaires in Europe, Source CSIL Traditional technologyRight time to proactively position for the future
Performance 2015 Future Challenges / Opportunities
• Technical transition to LED
Specialty Lighting • Importance of electronics and software on higher integrated level
(SP) • Market stagnation of traditional technologies
• Growing aftermarket
• Luminaires market with significant growth
Lighting Solutions • Transition from product market to solutions and services
& Services • Increasing importance of electronics and software
(LSS) • Integration of connectivity and Light Management features
Opto Semicon- • Growing importance of „volume emitter“ technology
• Growing importance of economies of scale
ductors
• Consolidation of weaker players expected
(OS)
Actions required to secure/ expand current position!
6 OSRAM Analyst Day 2016Rigorous and detailed strategy assessment process
Target markets Value
• Growth, profit pool, extent of cyclicality, • EBITA margin
industry ROCE • Return on capital employed
• Competitive dynamics (consolidation,
entrance of new market players, …)
OSRAM • Earnings per share
• Total shareholder return
• Differentiation potential by technology Strategy
2020
Stakeholders Technology
Capabilities
Growth
• Fulfilment of customers needs Sustainable value • Experience with relevant business
models
• Long-term interest of our shareholders
• Customer intimacy
• Employee identification and motivation
• Technological basis and expertise
• Necessary resources
7 OSRAM Analyst Day 2016A diversified strategy based on “3 pillars”
Strategic Review OSRAM Licht AG
CAGR / SP LSS OS
market size Worldwide #1 in Catch up Strong worldwide
Automotive attractive market #2 in LED
Market
position 2 1 3
Profitability €
Technology
Competitive
advantage
Expand /
Expand Expand
new set-up
8 OSRAM Analyst Day 2016OSRAM – clear strategy for a technology player with
strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“ “5.1.5“ in 2020
Innovation and Growth
Initiative
9 OSRAM Analyst Day 2016Specialty Lighting: Automotive market overview SP LSS OS
LED-based automotive market with strong growth
SP: Automotive exterior OEM light vehicles
light source and controls market1)
in EUR bn
Automotive
Halogen LED
+9% HID (Xenon) Auxiliary2)
4.9
CAGR
Laser OLED
3.2
LED based
Traditional
2015 2020 Ford F150 with OSRAM LED Module
More than 200 light sources in one verhicle
1) Exterior market excluding motorcycles and heavy vehicles
Source: OSRAM data, Frost & Sullivan 2) e.g. interior and exterior signal lighting
10 OSRAM Analyst Day 2016SP LSS OS
Specialty Lighting: Professional & Industrial Applications (PIA)
Broad portfolio to capture significant growth potential
Specialty Lighting markets, in EUR bn Professional and industrial applications
Entertainment Projection
+7%
Light source
CAGR
4.8
3.4
LED based
Traditional
2015 2020
Medical Industry
+5%
CARG 1.7
Entertainment - fixtures
1.3
Architainment
DJ/Club
Effect/Show
Studio/Film
Theater About 300 different sub-applications
TV
2015 2020
Source: OSRAM data
11 OSRAM Analyst Day 2016Specialty Lighting: SP LSS OS
Expand leading positions in Automotive and PIA
Automotive
• Expand in LED-modules and Matrix-solutions Automotive
• Invest in new technologies - Laser and OLED
• Forward integration with focus on LED and electronics Professional
• Exploit strong and profitable position in aftermarket & Industrial
Applications
© Ralph Larmann
Professional & Industrial Applications (PIA)
• Extend profitable niche business (e.g. entertainment) SP revenue plan (organic)
in EUR bn
• Enter/Expand new niches
• Selective forward integration (e.g. entertainment
fixtures)
1.9
Selective M&A activities under investigation
to strengthen existing business fields
2015 2020
12 OSRAM Analyst Day 2016Lighting Solutions & Systems (LSS): SP LSS OS
Strong growth in luminaires, service and solution markets
LS: Professional luminaires and solution product market
in EUR bn
+5%
CAGR
55
Sports&Industry
43
LS
LED based Office&Shops
Traditional
Streetlighting
LSS
2015 2020
DS: Professional components for General Illumination
Electronic
in EUR bn
SSL control gears
+10%
CAGR
20.5
DS
LED modules
12.7 LED modules
General Illumination control gear
Light Manag.
Light Management Systems
Systems
Trad. control gear
2015 2020 Source: OSRAM data, Frost & Sullivan
13 OSRAM Analyst Day 2016Lighting Solutions & Systems: SP LSS OS
Catch up in a growing and profitable market
• “LS 800” program running for lighting
solutions
• Expand full-solutions offering including
services
• Maintain good momentum for light
controls and LED modules
• Strengthen connectivity know-how Parking
Local Mgmt.
and innovative system architecture Service/
Promotion Information
• Increase of electronics and system Navigation
competence Smart connected light, e.g. street lighting
LSS revenue plan (organic)
Organic and inorganic growth to in EUR bn
further strengthen technological
portfolio 0.9
2015 2020
14 OSRAM Analyst Day 2016OS is well positioned in Infrared, Auto and Industry; SP LSS OS
General Lighting to be the next growth opportunity
Market size
[€ bn]
+3.9% p.a. Market CAGR OS position
20.9 [2015 to 2020] 2015
2.9 2.6% #2 player
17.3
1.8 4.0% #1 player Limited
Infrared (IR1)) 2.5 additional
Auto 1.4 3.4 -4.0% selective growth
Consumer potential
4.2 4.3 3.3%
incl. Backlighting #2 player
Industry 3.7
So far not Next growth
8.5 9.5% heavily opportunity
General Lighting 5.4 addressed for OS
2015 2020
Source: IHS 1) IR = Infrared emitters & detectors + infrared, blue and green laser applications
15 OSRAM Analyst Day 2016OS: The technology shift from surface to volume SP LSS OS
emitters is happening in all segments
Volume emitter Surface emitter
Technologies
(sapphire) (thin film)
Application Technology shift Technology shift in Surface emitter domi-
segment complete progress nant for next ~5 years
Automotive • e.g. buttons • e.g. day-time • e.g. headlamps
running light
Consumer • e.g. backlighting • e.g. mobile flash
Industry • e.g. signs and signals • e.g. white goods • e.g. projection
SSL • e.g. retrofit • e.g. street lighting
16 OSRAM Analyst Day 2016
Si = Silicon
Al2O3 = Sapphire exampleOS: The combination of leading in technology, SP LSS OS
scale and factor costs gives us the right to win
1. Technology 2. Scale and 3. Factor Cost The right to win
Best factor costs
Leading in Worldwide cost
and right
technology leadership
economies of scale
Estimated chip costs advantage
Front-end of OSRAM by 2020 vs.:
(FE)
~17%
Kulim
(Malaysia)
+ “Mega“-sites for
~6%
both FE und BE in a
low-cost-location
• Best in class performance in
• Chip size & Wafer size Back-end
(BE)
• Phosphor efficiency Wuxi + Penang
(China + Malaysia) Best Best
• Deep understanding of Chinese Taiwanese
technology Player Player
17 OSRAM Analyst Day 2016OS: Modular phased investment strategy SP LSS OS
Phase I with 370 Mio. EUR
Risk Management
1. Implementation Risk
- Top Management attention
- Monthly Board reviews
- Risk control on corporate level
- Dedicated project team
- External consultants and assessors
- Further scale up of sales & marketing resources
2. Market Risk Management
- Modular Equipment ramp-up
- Continuous monitoring of market landscape
- Conservative price decline expectations
Phase 1
- Building
Implement in 2016/17
- Equipment
€370 mio. invest
Phase 2 - In planning
Investment decisions benchmarked
Phase 3 - In planning against ambitious ROCE hurdle rates
18 OSRAM Analyst Day 2016SP LSS OS
OS: Build on strong worldwide #2 position
Leading position any
• Expand existing profitable niche business
segment we compete
• Complete technology portfolio
(surface & volume emitter) #1 Automotive
• Market leading chip competence for #2 Industry
General Illumination (GI) #2 Infrared / Laser
• Leverage synergies in scale, scope & +
competence
Top position - LEDs for GI
• Realize profitable double-digit growth
OS revenue plan (organic)
in EUR bn
Balanced portfolio
in niche and volume business
to gain market share and sustain profitability 1.3
2015 2020
19 OSRAM Analyst Day 2016OSRAM in 2020: SP LSS OS
Technology player with strong specialized businesses
OS revenue share, by applications; OSRAM revenue share by business unit
Opto 2015 Opto 2020 OSRAM 2020
LED for GI
~15% ~35%
OS ~15%
LSS
~85%
~65%
SP
Automotive / Industry / Consumer1)
LED for GI
1) Mobile flash, backlighting, automotive signalling, automotive front lighting, automotive interior, infrared illumination, projection,
stage lighting, video wall, white goods
20 OSRAM Analyst Day 2016OSRAM – clear strategy for a technology player with
strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“ “5.1.5“ in 2020
Innovation and Growth
Initiative
21 OSRAM Analyst Day 2016Innovation and growth initiative “Diamond” provides
the backbone for technology differentiation
“Diamond“ – innovation and growth initiative
Innovation Growth
• Systematic Research & • We create markets (e.g.
Development of smart automotive laser light)
technologies, e.g. beacons • We conquer leading market
• Technology scouting positions
22 OSRAM Analyst Day 2016Increasing R&D spending to drive future
technological innovation
8% p.a.1)
R&D budget
(of revenue)
Intellectual ~600 patents p.a.
Demographic Safety &
Urbanization
Change
Digitalization Infrastructure
Security
Mobility Property ~18,000 total
~2 patents per day
Selected OSRAM TOP patent fields
OS SP OLED CI
Epitaxy, Automotive SSL, Encapsulation, Innoventure,
Chip concepts, Laser SSL, Lightmgmt.,
conversion Display LED modules
>6,600 patents >2,700 patents >1,700 patents >1,000 patents
1) on average until 2020
23 OSRAM Analyst Day 2016R&D spend will increase across all 3 pillars
8% of sales for R&D in average p.a. until 2020
• One time effect in 2016 to Growth rate R&D spending (illustrative)1)
push special projects
• All 3 segments will be +4%
CAGR
supported
+22%
• R&D spending necessary to
conquer leading market Central
positions in attractive LSS
markets SP
• State of the art innovation
process established to OS
secure value creation of
2015 2016 2020
R&D
1) OSRAM w/o Lamps, before special items
24 OSRAM Analyst Day 2016Smart & digital innovation fields
SENSORS AND WIRELESS
HIGH
SYSTEMS FOR COMMUNICATION AND
PERFORMANCE
SMART LIGHTING LIGHTING
COMPONENTS
ADVANCED
SMART MATERIALS AND
SMART BUILDINGS OPTIC
CITY
CONCEPTS
25 OSRAM Analyst Day 2016OSRAM – clear strategy for a technology player with
strongly specialized, profitable businesses
3 Pillars Strategy “Diamond“ “5.1.5“ in 2020
Innovation and Growth
Initiative
26 OSRAM Analyst Day 2016Significant growth across all segments
from 2015 to 2020
OSRAM
Business Segments (revenue in bn €)
(revenue in bn €) 5.0 – 5.5
1.9
3.6
1.3
0.9
SP
SP LSS OS LSS
2015 2020 OS
New holding company structure enables constant 2015 2020
review of performance of each pillar and ability to Pro Forma
take appropriate portfolio measures at any time
27 OSRAM Analyst Day 2016Ambition 20201
A plan that will deliver real shareholder value by 2020
Revenue, in bn €
5
2014 5.1
2015 Lamps 5.6
2020 5.0 – 5.5
EBITDA, in bn €
1 2014
2015
0.560
0.557
2020 0.9 – 1,0
EPS, in €
5 2014
2015
20202)
1.8
1.6
5.0
1) Presuming stable economic environment incl. no servere anomaly of semiconductor cycle and stable FX, without lamps
2) Including share buy back
28 OSRAM Analyst Day 2016Conclusion:
The right plan to deliver on our goals
This is the right time to implement the new 3 pillars strategy
1.
in order to stay ahead of the market
The investments across all three pillars deliver the best overall
2.
outcome on long term for the shareholders
3. Balanced portfolio over three pillars
29 OSRAM Analyst Day 2016www.osram.com OSRAM Analyst Day 2016 Opto Semiconductors Aldo Kamper | January 2016 Light is OSRAM
OS is a strong player in all its markets and a key profit generator for Osram Automotive #1 player, ~50% of Revenues1) Consumer ~10% of Revenues1) Forward Lighting Safety & Comfort Bio Monitoring Handsets / Monitors Industry #2 player, ~25% of Revenues1) General Lighting ~15% of Revenues1) Video Walls Projection Outdoor Lighting Residential Lighting 1) Percent of total OS Revenues in FY 2014/15, including both visible and infrared products 31 OSRAM Analyst Day 2016
Our integrated business model covers the entire LED
value chain, allowing end-to-end optimization
Front-end Substrate etc. Chip processing LED chips
Process
Coating & Singulation,
Epitaxy
structuring testing
Back-end Phosphor Processing Packaged LED
Process
Sawing,
Bonding Conversion1)
testing
Broadest technology base in the industry,
all colors from infrared to visible light, applied in LED & Laser
1) In order to make a white LED, it is common to convert blue LEDs with phosphors to white LEDs
32 OSRAM Analyst Day 2016Building on strength: OS is the #2 global player for over
10 years, continuously delivering healthy margins
Market share in optoelectronic OS Revenue (€ m) and EBITA margin
components (2014) (2005-2015)
22%
Nichia 11%
18% 17% 18%
16%
Osram Opto 7% 14%
14% Average
12% 12%
Samsung 6% 1,293 14%
8%
Lumileds 5% 1,125
2% 1,018
Everlight 5% 899
858
LG Innotek 4% 743
SSC 4% 501 519 529 468
Market size 452
Cree 4% € 16.2 bn
MLS 3% (2014)
Avago 3%
’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
Fiscal Year
Source: IHS 2015 Source: Osram
33 OSRAM Analyst Day 2016OS is well positioned in Infrared, Auto and Industry;
General Lighting to be the next growth opportunity for OS
Market size Market CAGR OS Position
[€ bn] [2015 to 2020] [2015]
3.9%
20.9
2.9 2.6% #2 player
17.3
1.8 4.0% #1 player Limited
Infrared (IR1)) 2.5
additional
Auto 3.4 -4.0% selective growth
1.4
potential
Consumer
4.2 4.3 3.3% #2 player
incl. Backlighting
Industry 3.7
So far not Next growth
8.5 9.5% heavily opportunity
General Lighting 5.4 addressed for OS
2015 2020
Source: IHS 2015
1) IR = Infrared emitters and detectors going into consumer, automotive and industry applications
34 OSRAM Analyst Day 2016OS core technology (surface emitter) is challenged by lower
cost technology (volume emitter) in several applications
Share of volume and surface emitter in total LED market
2015 2020
Surface
emitter Surface
emitter
(thin film) Surface
emitter
Volume Volume
emitter emitter
Volume
emitter
(sapphire) – Good cost efficiency helped sapphire to become mainstream
technology for the General Lighting market
– Performance of volume emitter increasingly “good enough”
for “classical” surface emitter applications, e.g. street lighting
Si = Silicon – Surface emitting technology however still a valuable differentiator in
Al2O3 = Sapphire applications that need specific characteristics for the optical system
(e.g. projection, stage lighting, headlamps, µAFS)
Source: IHS 2015, Osram
35 OSRAM Analyst Day 2016Investment in General Lighting is increasingly value
accretive - generating up to €200m annually by 2020
With this investment, OS can deliver >15% EBITA margin over the cycle
Value levers Financial impact by 2020
Profitability of the € 50-100 million EBITA per year once
General Lighting opportunity new fab is fully up and running
+ +
General Lighting synergy benefits € 50-100 million EBITA
with niche businesses of synergies per year
= =
Over the cycle:
Long term sustainable success
OS EBITA margin >15%
36 OSRAM Analyst Day 2016Timing of our GL investment is right: Overcapacity will
be sharply reduced by the time our fab goes online
Industry needs to invest ~5 bn € until 2020 to meet increasing demand LED demand Surplus
LED supply
Billion sq. mils of LED Surplus
350,000 25%
300,000
20%
250,000
15%
200,000
150,000
10%
Low oversupply
100,000
5%
50,000
0 0%
2015 2016 2017 2018 2019 2020
Source: IHS Dec 2015 (already includes OS‘ announced investments in Kulim)
37 OSRAM Analyst Day 2016OS will reach cost leadership through technology,
scale and factor costs once Kulim fab is up & running
Up to 10% chip cost advantage expected Between 10 to 20% chip cost advantage
over largest fab in China by 2020 expected over best Taiwanese fab by 2020
-5%
9% 17%
6%
-10% 3%
5% 6% 5%
5%
5%
0%
Scale Wafer Effi- Factor Subsidy3) Best Scale Wafer Effi- Factor Subsidy3) Best
Size1) ciency2) costs Chinese Size1) ciency2) costs Taiwanese
player player
1 2 3 4 1 2 3 4
Competitive against the best, better than the rest
Estimates based on OS model 2) On chip- and phosphor level
1) Incl. tool and process optimization 3) Advantage vs. OS subsidies
38 OSRAM Analyst Day 2016OS cost advantages in detail (1/2)
1 Economies of scale (2020 view)
Estimated cost advantage of OS Kulim Fab due to scale versus:
Largest Large Other Fabs1)
Fabs1) Fabs1)
> 10%
OS Kulim fab with relevant cost
advantage due to larger scale
5 to 10%
versus ~2/3 of the worldwide
0 to 5%
LED capacity in 2020
35% 25% 40%
Cum. % of worldwide LED capacity in these fabs
2 Wafer size & optimized equipment and processes
• 6” wafers have 2.2x more chips than 4” wafers and 9x more chips
than 2” wafers
• Processing costs (besides Epitaxy) and wafer handling are little OS‘ 6“ technology with
depending on wafer size but mostly on wafer numbers, resulting leading processing costs
in cost advantage of 6” vs. 4”
• Newest and homogeneous state-of-the-art equipment optimized
for large scale production
Source: Osram Estimates
39 OSRAM Analyst Day 2016
1) „Largest Fabs“ = Fabs with more than 10 kWSPW 6“ equivalent,
„Large Fabs“ = 5 to 10 kWSPW, „Other Fabs“ with less than 5 kWSPWOS cost advantages in detail (2/2)
3 Chip and phosphor efficiency
• Higher chip and phosphor efficiency result in smaller chip sizes
for same brightness, i.e. in lower chip costs
• 1% higher efficiency equals to 3 ~ 5% lower chip costs
• OS with technological advantage due to superior R&D spending,
highly experienced team and strong IP
OS is reaching quickly best-in-class
Efficiency vs. best competitors for volume emitters [%]:
efficiencies, enabling smaller
~105 > ~105 – and thereby cheaper – chips for
~100 ~100 same brightness levels
Competitor 1 Competitor 2 OSRAM OSRAM
(today) (today) (today) 2016
4 Factor costs
Location-specific relative costs per wafer (in 2020)
109% 111%
106% OS benefits from lower factor
costs in Kulim vs. fabs of our
100%
main competitors
Kulim Malaysia China Taiwan Korea
40 OSRAM Analyst Day 2016Only OS and one other player have the necessary scale in
niche businesses to realize large synergy benefits
Niche revenues1) of integrated players
[2014] General Lighting synergy bene-
fits for OS niche businesses
• Chip volume all in one fab
• Operational and purchasing
synergies lowering surface
emitter chip costs
• R&D synergies
• Overhead cost degression
• Use of volume emitter chips in
industry and automotive
applications
Synergy Potential: € 50 – 100m
OS A B C D E F EBITA annually
Source: OS Analysis based on IHS 2015
1) Sum of automotive and industry revenues
41 OSRAM Analyst Day 2016OS is strong enough to accelerate General Lighting invest
without diminishing the drive for niche businesses…
Sum of 5 years period R&D
[in € bn] FY’11-FY’15 FY’16-FY’20 CAPEX
∑ Investment in
Niche Businesses ~ €½ bn higher
invest in Niche
∑ Investment in €1+ bn higher
General Lighting invest in
General Lighting
… while still generating significant FCF over the period
42 OSRAM Analyst Day 2016OS has a proven track record of building and operating
large fabs in Asia
Regensburg, Germany Penang, Malaysia
~ 2,000 Employees ~ 5,600 Employees
– OS HQ – LED chips and
– Innovation fab for all components
technologies – General Lighting HQ
– R&D Center – R&D center for LED
– Since 1972 assembly
– Since 1978 Packaging
– Since 2010 Chip
Production
Wuxi, China Kulim, Malaysia
~ 1,400 Employees Goal: ~1,500 Employees
– Greenfield LED back- – Greenfield LED front-
end plant for assembly end plant for epitaxy
of visible and Infrared and chip production
LEDs – Worldwide largest
– Since late 2014 6’’ fab
– From 2017
43 OSRAM Analyst Day 2016Scaling in 3 steps to >20k WSPW 6” by 2020
More facts about the new LED fab in Kulim
• Primarily for volume emitters
• Located in Kulim Hi-Tech Park, next to numerous
technology and semiconductors fabs, e.g. Infineon
• ~40km to existing Penang plant and headquarters of
OS General Lighting business segment
Total investment: € 1bn until FY20
(thereof € 370m in the first step)
Timeline Q2-16 Q2-17 Q3-17 Q4-17 Q3-18 Q1-19
Start of Ready for Start of Ramp Ready for Ramp
Construction Equipment Construction Module 1 Equipment Module 2
Module 1 Module 1 Module 2 Module 2
Capacity
6k 13k 20k
(WSPW)
44 OSRAM Analyst Day 2016The General Lighting investment enables OS to continue
to deliver strong growth and healthy profit margins
ILLUSTRATIVE
OS Revenues OS EBITA Margin
[% of Revenues]
With General
Lighting invest
17% 17%
13% 13%
0%
’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’20 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’20
Fiscal Year Fiscal Year
OS revenues to rapidly grow in both Improved General Lighting margins, combined with
Niche and General Lighting, benefiting from the synergy impact of the investment on existing
improved over-all competitiveness Niche business results in EBITA margins in the
~15% range once fab is up & running
45 OSRAM Analyst Day 2016 Assumes no major changes in the general economic situationIn summary, OS is uniquely positioned
to be an industry winner
Financial strength to build scale –
1
Very few others could make this investment
Execution experience to deliver sustainable growth –
2
Long history of competing and operating in Asia
Low cost leadership gives competitive advantage –
3
Technology, scale and factor costs combine ideally
Ability to realize synergies is a point of differentiation –
4
Our business mix means we can deliver synergy benefits that others cannot
It’s right, it’s viable and it will work for OSRAM
46 OSRAM Analyst Day 2016Disclaimer This presentation contains certain non-IFRS measures. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt, net working capital and certain other items included herein are not recognized measures in accordance with IFRS and should not be considered as an alternative to the applicable IFRS measures. We have provided these measures and other information in this presentation because we believe they provide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt, net working capital varies from others in our industry and should not be considered as an alternative to net income (loss), cash flows from operating activities, revenue or any other performance measures derived in accordance with IFRS as measures of operating performance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt and net working capital have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under IFRS. Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts. 47 OSRAM Analyst Day 2016
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