DGAP-News: Osram has a robust start to fiscal year 2020

- Performance programs show positive effect

- Adjusted EBITDA margin of semiconductor business increases to over 20 percent

- Osram confirms annual forecast

After a challenging fiscal year 2019, Osram has made a robust start to fiscal 2020. On a comparable basis, revenue in the first quarter (ending December) grew slightly by 0.5 percent to 873 million euros. The adjusted EBITDA margin increased on a comparable basis by nearly two percentage points to 13.0 percent. The semiconductor business in particular showed a significant recovery in margins. Adjusted EBITDA climbed by more than 22 percent to 114 million euros within a year. This development is due to the Osram performance programs, higher production volumes and positive effects from the change to IFRS 16 accounting standard. "The performance programs initiated at an early stage had a lasting effect in the first quarter," said Olaf Berlien, CEO of OSRAM Licht AG.

The important sales markets for Osram developed economically as expected from October to the end of December. It was therefore essential for Osram's management to take timely and consistent countermeasures. These steps are clearly reflected in the figures of the individual business segments.

Revenue in the business segment Opto Semiconductors was roughly stable and amounted to 359 million euros. The operating margin in the first quarter was in line with earlier figures. The segment achieved an adjusted EBITDA margin of 24.5 percent, compared with 19.5 percent in the prior-year quarter.

In the segment Digital, revenues climbed by more than 2 percent to 217 million euros within a one-year period. Adjusted EBITDA reached the break-even point following a loss of minus 10 million euros in the previous year.

In the segment Automotive, the economic situation remains uncertain. Revenue increased comparatively by 0.7 percent to 480 million euros. Adjusted EBITDA was at the previous year's level of 47 million euros.

Considering the still uncertain economic outlook in the customer industries, the Osram Managing Board confirms its existing forecast for the current fiscal year: Revenue is expected to be between minus and plus 3 percent compared to the previous year. The adjusted EBITDA margin is estimated at 9 to 11 percent. Free cash flow is expected to be positive, potentially in the mid double-digit million range.

Osram will hold a conference call for analysts with the Company's Management Board on Thursday, February 6, starting at 2:00 p.m. CET. It will be broadcast online at https://87399.choruscall.eu/links/osram200206ir.html. A recording of the call also will be available at this address.

The corresponding documentation can be found here: https://www.osram-group.com/en/investors/publications/2020

PRESS CONTACTS
Torsten Wolf
Phone +49 89 6213-2506
E-mail: [email protected]

Jens Hack
Phone +49 89 6213-2129
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Susanne Enninger
Phone +49 89 6213-3996
E-mail: [email protected]
 

Selected key figures for the OSRAM Licht AG (continued operations) in the first quarter

(¹adjusted for currency and portfolio effects)
(²Adjusted for special items, including e.g. transformation costs, significant legal and regulatory issues, as well as M&A - related costs.)

 

Development of the reporting segments in the first quarter

(¹adjusted for currency and portfolio effects)
(²Adjusted for special items, including e.g. transformation costs, significant legal and regulatory issues, as well as M&A - related costs.)

ABOUT OSRAM
OSRAM, based in Munich, is a leading global high-tech company with a history dating back more than 110 years. Primarily focused on semiconductor -based technologies, our products are used in highly diverse applications ranging from virtual reality to autonomous driving and from smartphones to smart and connected lighting solutions in buildings and cities. OSRAM uses the endless possibilities of light to improve the quality of life for individuals and communities. OSRAM's innovations enable people all over the world not only to see better, but also to communicate, travel, work and live better. OSRAM has approximately 23,500 employees worldwide as of end of fiscal 2019 (September 30) and generated revenue of about 3.5 billion euros from continuing activities. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED 400; trading symbol: OSR). Additional information can be found at www.osram.com.

Disclaimer
This document contains statements and information pertaining to our future business and financial performance and future developments that may constitute forward-looking statements - i.e. statements about processes that take place in the future, not in the past. These statements pertaining to the future can be identified by expressions such as "anticipate", "expect", "want", "intend", "plan", "believe", "aspire", "estimate", "will", "predict" or words of similar meaning. Such statements are based on current expectations and certain assumptions of OSRAM‟s management. They are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are outside the control of OSRAM, have an influence over OSRAM's business activities, achievement, business strategies and results. These factors may cause the actual results to differ materially from the statements of OSRAM, successes and achievements to results, performance or achievements expressed or implied in the forward-looking statements or on the basis of earlier trends can be expected. These factors include in particular, but are not limited to, the matters described in the chapter "Report on Risks and Opportunities" in the Annual Report of OSRAM Licht Group. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of OSRAM may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. OSRAM neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. 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 they reference.