DGAP-News: Osram keeps up its strong operating performance in the third quarter and positions itself for future market of autonomous driving

Released : 07/26/2017 18:36

Osram keeps up its strong operating performance in the third quarter and positions itself for future market of autonomous driving

DGAP-News: OSRAM Licht AG / Key word(s): 9-month figures/Quarter Results

26.07.2017 / 18:36
The issuer is solely responsible for the content of this announcement.

  • Comparable revenue rises by more than 3 percent; or by more than 8 percent if adjusted for a prior-year non-recurring effect
  • At more than 16 percent, adjusted EBITDA margin remains at a high level
  • Managing Board confirms its outlook for fiscal year 2017
  • Osram acquires stake in a company specializing in navigation technology for self-driving cars

"Osram's operating performance continues to be very strong. We are forging ahead with our transformation into a systems provider. By acquiring a stake in LeddarTech, we are paving the way for success in the key future market of autonomous driving," said Olaf Berlien, CEO of OSRAM Licht AG.

Osram continued to grow in the third quarter of fiscal 2017. On a comparable basis (i.e. adjusted for portfolio and currency effects), growth in the third quarter stood at just above 3 percent. Additionally adjusted for a EUR47 million carve-out related revenue spike in the previous year, revenue increased by more than 8 percent to EUR1.06 billion in the period from April to June 2017. This growth was driven by persistently high demand for opto semiconductors and continued strong demand from the automotive sector. At EUR174 million, EBITDA[1] adjusted for special items was again on a par with the high level of the prior year, giving a margin of 16.4 percent (prior year: 17.0 percent). Profit after tax from continuing operations came to EUR64 million (prior year: EUR78m) in the third quarter.

The LED business (Opto Semiconductors, OS segment) benefited among others from the high demand for consumer goods products, such as components used in iris-scan smartphone unlocking, and from the strong growth in the general lighting business. The Specialty Lighting (SP) segment reported a healthy level of business in the automotive market. The LED modules business and the entertainment business both performed strongly. In the Lighting Solutions & Systems (LSS) segment, the challenges remained, particularly in the US business. However, the many measures taken to raise profitability in this area are making further progress. Two weeks ago we reached a reconciliation of interests at the Traunreut plant where headcount will be reduced with the minimum social impact.

Osram takes the next step towards autonomous driving

Osram has acquired a strategic 25.1 percent share in LeddarTech Inc., a Canadian company that develops a proprietary LiDAR technology integrated into semiconductors and sensor modules for self-driving cars and driver assistance systems. LeddarTech specializes in solid-state LiDAR (Light Detection And Ranging) systems that use infrared light to monitor the area around them, and its advanced optical sensing technology is highly complementary with Osram's semiconductor products. The two companies already work together and Osram has now made an investment in LeddarTech in the mid double-digit million euros. "Osram is already the world's leading provider of sensor lights for autonomous vehicles and is experiencing steadily rising demand in this field. We see the investment in LeddarTech as a logical step on the way to becoming the leading provider of solutions in this area," said Stefan Kampmann, Osram's Chief Technology Officer.

Through partnerships, equity investments and takeovers, Osram is expanding its existing technology base in the field of components and modules with everything from software and electronics to system solutions. This is opening up new applications and markets in autonomous driving, intelligent light control, and Industry 4.0 (the industrial Internet of Things). Osram's recent takeover of LED Engin, a Silicon Valley-based vendor of customized LEDs, and its purchase of a stake in Munich-based horticulture start-up Agrilution highlight this approach.

Outlook for fiscal year 2017

In light of how the business has performed so far this year and the current market trend, Osram confirmes its outlook for fiscal year 2017. For the current fiscal year, the Managing Board anticipates comparable revenue growth of between 7 and 9 percent and an EBITDA margin adjusted for special items of between 16.5 percent and 17.5 percent. Diluted earnings per share is forecast to be within a range of EUR2.70 to EUR2.90. The company is aiming to achieve a free cash flow at break-even level.

The company will hold a conference call for journalists featuring the Managing Board of OSRAM Licht AG today, starting at 9 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 1 p.m. CEST, at www.osram-group.de/de-DE/investors/publications/2017.

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

Torsten Wolf
Phone +49 89 6213-2506
E-mail: torsten.wolf@osram.com

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

Selected key figures for the OSRAM Light Group (continuing operations) in the third quarter

  Q3 2017 Q3 2016 Change (nominal)
Revenue 1,056 995 6.2%
EBITDA 147 154 (5.0%)
...margin 13.9% 15.5% (160 bps)
Adjusted EBITDA 174 169 2.9%
...margin 16.4% 17.0% (50 bps)
EBITA 97 110 (11.7%)
...margin 9.2% 11.1% (190 bps)
Adjusted EBITA 125 125 0.2%
...margin 11.8% 12.5% (70 bps)
Profit after tax 64 78 (17.9%)
Free cash flow 39 (20) n/a
Employees ('000) 25.7 24.9 3.2%

(Unaudited figures. Items stated in EUR million, margin in %, employees as of June 30. Negative values in brackets.)

Performance of the reporting segments in the third quarter[2]

  Q3 2017 Q3 2016 Change (nominal)
Opto Semiconductors      
...Total revenue 439 369 19.1%
...EBITDA 126 106  
.Adjusted EBITDA 126 106  
Specialty Lighting      
...Total revenue 563 561 0.2%
...EBITDA 66 71  
.Adjusted EBITDA 73 75  
Lighting Solutions & Systems      
...Total revenue 253 261 (3.4%)
...EBITDA (19) 3  
...Adjusted EBITDA (4) 6  

(Unaudited figures, stated in EUR million; negative values in brackets.)

OSRAM, based in Munich, is a globally leading lighting manufacturer with a history dating back about 100 years. The product portfolio includes high-tech applications based on semiconductor technology such as infrared or laser lighting. The products are used in highly diverse applications ranging from virtual reality, autonomous driving or mobile phones to smart and connected lighting solutions in buildings and cities. In automotive lighting, the company is the global market and technology leader. Based on continuing operations (excluding Ledvance), OSRAM had around 24,600 employees worldwide at the end of fiscal 2016 (September 30) and generated revenue of almost EUR3.8 billion in that fiscal year. 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.

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 beyond OSRAM's control, affect OSRAM's operations, performance, business strategy and results and could cause the actual results, performance or achievements of OSRAM to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historic trends. 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.

[1] Earnings before interest, taxes, depreciation, amortization, and impairment.

[2] Figures for 2016 have been restated because, from the beginning of 2017, OSRAM reported further revenue with LED components for automotive customers in the Specialty Lighting segment

26.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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