DGAP-News: Osram accelerates its technological shift and explores future markets

- Adjusted EBITDA margin remains high at 15.1 percent

- Osram acquires provider of groundbreaking VCSEL technology

- Osram acquires US horticulture specialist Fluence

- Sale of US luminaire service business initiated

"The first half of the fiscal year was challenging due to various factors. However, the long-term growth trend remains intact, while the reorganization and the technological shift are continuing," said Olaf Berlien , CEO of OSRAM Licht AG .

Osram generated slight growth in the second quarter of fiscal year 2018. At EUR1.01 billion , revenue on a comparable basis was up by 1.8 percent year-on-year. EBITDA adjusted for special items amounted to EUR153 million , which was below the figure reported a year earlier. The adjusted EBITDA margin reached 15.1 percent. In the second quarter, the company's financial position was affected by persistently strong exchange-rate effects and some market factors. Irrespective of the short-term effects, Osram has chosen the right strategy, under which it is focusing on semiconductor-based high-tech products. Moreover, the group has acquired other companies in order to expand its technology portfolio in areas with high potential for the future.

A look at the segments shows that the latest market trends and the continued weakness of the US dollar are impacting on current business. Meanwhile the new factory in Kulim is stepping up production as scheduled and has secured its first big-ticket customers in the Americas , Europe , and Asia . The site's development is progressing as planned and the predicted volume production will be reached toward the end of the fiscal year.

Osram recently enhanced its semiconductor-based lighting and laser technology portfolio by acquiring Vixar. This US provider of advanced VCSEL technology will add compact 3D identification technology to the Osram product range and will offer significant synergies. Vixar is a fabless semiconductor company and has developed a supply chain consisting of merchant foundries.

Of late, Specialty Lighting (SP) has increasingly seen a shift from conventional headlamps, such as halogen or xenon, to cutting-edge LED solutions. At the same time, the business unit has been expanding its range of lighting for plants. To strengthen this business unit, Osram has acquired the specialty lighting provider Fluence. Based in Austin, Texas , Fluence develops and sells luminaires used in the cultivation of vegetables and medicinal plants. Its products will expand Osram's horticulture portfolio (see separate press release).

There have been no indications of a fundamental trend reversal in the performance of the Lighting Solutions & Systems (LSS) segment. Demand for luminaires, electronic ballasts, and services remains weak in this segment. In the first instance, the Managing Board is tackling the critical aspect of the LS business unit, initiating the sale of the service business in the US. The relevant documentation for prospective buyers is currently being compiled.

Adjusted outlook for the full fiscal year

Last week, Osram adjusted its outlook for the current fiscal year. Based on current exchange rates, a comparable revenue increase of 3.0-5.0 percent (previously: 5.5-7.5 percent) and adjusted EBITDA of ~EUR640 million (previously: ~EUR700 million ) are now forecast. Furthermore, Osram expects earnings per share (diluted) of EUR1.90-EUR2.10 (previously: EUR2.40-EUR2.60 ) and a negative free cash flow of EUR50 million to EUR150 million (unchanged) for fiscal year 2018.

The Company will hold a conference call for journalists featuring the Managing Board of OSRAM Licht AG today, starting at 8.30 a.m. CEST . The conference will be broadcast online at www.osram-group.com/en/media/media-calendar. A recording will be made available there afterwards.

You can follow the conference call for analysts, which starts at 2 p.m. CEST at http://services.choruscall.eu/links/osram180503ir.html.

Press contacts

Stefan Schmidt
Tel. +49 89 6213-4680
E-mail: stefan.schmidt@osram.com

Jens Hack
Tel. +49 89 6213-2129
E-mail: j.hack@osram.com

Selected key figures for the Osram Light Group in the second quarter

(Provisional, unaudited figures. Items stated in EUR million, margin in %, employees at March 31 : negative values in brackets)
(¹ adjusted for special items, e.g. transformation costs, significant legal and regulatory matters, and M&A-related costs.)

Performance of the reporting segments in the second quarter

(Provisional, unaudited figures. Items stated in EUR million, margin in %, negative values in brackets)

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 networked, intelligent lighting solutions in buildings and cities. OSRAM utilizes the infinite possibilities of light to improve the quality of life for individuals and communities. OSRAM's innovations will enable people all over the world not only to see better, but also to communicate, travel, work, and live better. As of the end of fiscal year 2017 ( September 30 ), OSRAM had approximately 26,400 employees worldwide. It generated revenue of more than EUR4.1 billion in fiscal year 2017. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED400; trading symbol: OSR). Additional information can be found at www.osram.com.

Disclaimer
This document contains forward-looking statements and information, i.e. statements about events that lie in the future rather than the past. These forward-looking statements can be identified by words such as 'expect', 'want', 'anticipate', 'intend', 'plan', 'believe', 'seek', 'estimate', 'will', and 'predict'. Such statements are based on current expectations and certain assumptions made by OSRAM's management, so they are subject to various risks and uncertainties. A wide range of factors, many of which are beyond OSRAM's control, have an influence on the business activities, success, business strategy, and results of OSRAM . These factors may cause the actual results, success, and performance of OSRAM to differ significantly from those expressly or implicitly communicated in the forward-looking statements or from those that are expected on the basis of past trends. In particular, these factors include, but are not limited to, the circumstances described in the report on risks and opportunities contained in the annual report of the OSRAM Licht Group . If one or more of these risks or uncertainties materializes, or should the underlying assumptions prove incorrect, the actual results, performance, and success of OSRAM may differ significantly from those described in forward-looking statements as being expected, anticipated, intended, planned, believed, sought, estimated, or projected. OSRAM assumes no obligation, nor does it intend, to update these forward-looking statements above and beyond the legal requirements or to adjust them in light of unexpected developments. Due to rounding, numbers presented in this and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures to which they relate.