Osram seizes the opportunities of digitalization

2018/02/20

  • Managing Board and Supervisory Board propose a dividend increase of 11 percent
  • Osram continues to invest in R&D and capacity expansion

High-tech company Osram is increasingly focusing on digitalization trends. During the Annual General Meeting, CEO Olaf Berlien outlined to shareholders the promising path the long-established company will take over the coming years. “Digitalization is opening up huge opportunities, which we are seizing successfully. We have excellent technologies and a clear strategy to guide us,” Berlien said at the AGM. “With our clear mission, we will lead Osram successfully into the future. We are tapping the almost endless possibilities of light – and we are enhancing people's lives. That is what each and every one of us is striving for – with energy and passion.”

This new path has proven successful over the past year. With revenue growth of 8 percent to €4.1 billion, Osram achieved an excellent operating profit (adjusted EBITDA) of almost €700 million. The Managing Board and the Supervisory Board are therefore proposing a dividend of 111 euro cents per share to mark the company’s 111th brand anniversary. This represents a year-on-year rise of 11 percent.

At the same time, Osram is increasing its capital expenditure, in particular in the development and manufacture of high-tech products. “We are absolutely convinced of the long-term future success of the company,” Berlien said in front of more than 2,000 shareholders. CFO Ingo Bank pointed to the company’s solid basis, which allows Osram to continue its investment in the expansion of its capacity. “Our operational performance is fully intact, and demand for our LED products remains strong. That is why we are investing in the expansion of our factories,” Bank said. “The company is on solid financial footing and will continue to consistently implement its strategy.”

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 smart phones 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 26,400 employees worldwide as of end of fiscal 2017 (September 30) and generated revenue of more than €4.1 billion. 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.