(413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited

8/17/2019 (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited

http://slidepdf.com/reader/full/413624257-osram-management-presentation-q4-fy14-preliminary-unaudited 1/21

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 $%, &$'

http://www.osram-licht.ag/

http://www.osram-licht.ag/



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



!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



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



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%




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




&) #ased on sum of SegmentsK re"enue, w<o considering corp. items 5 consolidationAPA nom. 49

comp. %9



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



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




lassi' 0amps 7 8allasts -08/)

onsiderable 'ash generation


#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/


*+'D *+' *+' *+' FY14

(11) (13) (13) (19) (14)therein;#otal Spe'ial items

7

l d li fit #ilit l # fitt d

onsiderable 'ash generation



0"minaires 7 Sol"tions -0S/)

Restr"'t"ring &ell progressed


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 *+


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)



Spe'ialty 0ighting -SP/)

#op line gro&th and profitability remain on high level


#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


( m)

;l 2 t t th 0i l < O ti

#op line gro&th and profitability remain on high level



Opto Semi'ond"'tors -OS/)

8a'( to do"ble digit gro&th


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



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


P"sh more than 'ompensates pri'ing press"re and mi+



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=



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



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



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/




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 *+'%




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



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

http://www.osram.com/ir

mailto:[email protected]

http://www.osram.com/ir

mailto:[email protected]

(413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited

Documents

Transcript of (413624257) OSRAM Management Presentation Q4 FY14 Preliminary Unaudited