CMD 2022 | ams OSRAM

Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
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ams OSRAM outlines path to leadership in optical solutions to drive significant value generation and achieve 20+% adj. EBIT margin target, adding mid-term financial targets, at virtual CMD

ams OSRAM presents its strategy to become the leader in optical solutions and key drivers to create sustained long-term value, confirming its targeted financial objectives after one year of operational control of OSRAM
Insights into the business to demonstrate the group’s strong technology portfolio contributing to important megatrends, offering a robust outlook across diverse revenue growth vectors
Targeted financial model, geared to the combined business, with underlying value drivers to underpin its strategic goals
Adds mid-term financial targets for the fully re-aligned portfolio of EUR 4.9 billion +/- EUR 300 million revenues and 15% or better adjusted EBIT margin in 2024 and additional investment in significant new 8” LED front-end capacity to support advanced LED technologies and microLED of up to approx. EUR 800 million; announces target to be Carbon Neutral by 2030

Premstätten, Austria and Munich, Germany (5 April 2022) -- ams OSRAM (SIX: AMS), a global leader in optical solutions, today provides investors with an update on its strategy, business outlook and path to become the leader in optical solutions at its Capital Markets Day (“CMD”). The CMD will showcase the opportunities for ams OSRAM which has been on a successful integration path since ams OSRAM gained operational control of OSRAM in March 2021.

“We are very excited to walk investors and stakeholders through our achievements so far and share our enthusiasm for the group’s future at today’s CMD,” said Alexander Everke, CEO of ams OSRAM. “We strongly believe we have a compelling strategy, anchored by major technologies, that will drive the demand for optical solutions in markets in which we are active and holding leading positions. We command a unique, winning and focused optical solutions portfolio offering innovative solutions to our customers. This is underpinned by the diversity of our revenue growth vectors in our Semiconductors business, across the Automotive, Consumer, Industrial and Medical end markets. The confluence of these factors will create the foundations of sustainable and responsible success.”

The CMD will be presented by the entire Management Board of ams OSRAM, together with key senior members of the broader management team. The CMD will provide investors and other stakeholders with a detailed understanding of how the journey of ams OSRAM is evolving, the outlook for the enlarged business and the key drivers thereof. In particular, the CMD will focus on the following:

Presenting how the group’s business and integration have evolved since March 2021;
Confirming the group’s targeted financial model, providing more underpinning regarding the key drivers of the long-term target model of double-digit average annual revenue growth and 20+% adjusted EBIT margin
Introducing 2024 mid-term targets of EUR 4.9 billion +/- EUR 300 million revenues and adjusted EBIT margin of 15% or better, on the basis of the re-aligned portfolio;
Detailing the key drivers, across growth vectors, in the group’s portfolio serving the major market trends of Digitization, Smart Living, and Energy Efficiency & Sustainability;
Showcasing the group’s strong technology position in key growth applications including advanced dynamic automotive lighting, microLED display technology, optical solutions for AR/VR, automotive sensing, and horticulture LED lighting, among others;
Presenting the group’s future industrial footprint: Next to a range of footprint consolidation steps, ams OSRAM will build a new 8” LED front-end facility alongside its existing LED fab in Kulim, Malaysia, adding significant capacity to support expected growth in advanced LED technologies and MicroLED. The new facility investment is expected to amount to up to approx. EUR 800 million over the next 18-24 months.

ams OSRAM has already made significant progress since March 2021 with a range of key milestones achieved, demonstrating the commitment to become the leader in optical solutions. The combined ams OSRAM is driven by its employees’ collective vision to achieve its strategy in a global one team approach. This has already translated into a solid financial performance despite end market and supply chain headwinds over the last 12 months. At the same time, ams OSRAM is progressing well in divesting non-core businesses through the sale of the majority of the former OSRAM Digital business, which is expected to be completed by year-end 2022, and the completed unwinding of the former OSRAM-Continental joint venture. As part of the definition of the group’s ESG strategy, ams OSRAM today publishes first key targets: to be Carbon Neutral by 2030 and to have 25% of leadership positions held by women in 2026.

The CMD will demonstrate that the combined ams OSRAM group is able to deliver in excess of a standalone situation, also by strengthening the realisation and execution of key growth opportunities. This joint platform is further reinforced by the enhanced synergy and savings potential where initial estimates have been increased. The combination of these factors, alongside other key topics discussed in the CMD, will enable ams OSRAM to create an optical solutions champion with a focus on significant long-term value generation.

Webcast Details

The link to access the CMD livestream will be available at https://ams-osram.com/cmd. The event will start at 1pm CEST and end around 5pm CEST.