OSRAM with continued good profitability

Transcription

1 OSRAM with continued good profitability Q3 FY15 Management Presentation (preliminary figures) July 29, 2015 Light is OSRAM

2 Safe Harbor 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. has based these forward-looking Statements on its views and assumptions with respect to future events and financial performance. Actual 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. Given 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 does not undertake any duty to update the forwardlooking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 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. 2

3 Spotlights OSRAM Q3 FY15 Revenue/-growth (comp.): 1,353m / -1% EBITA/-margin (before spec. items): 129m / 9.5% Reported revenue growth of 12% EBITA before special items above previous year level Lamps carve-out on track LS LLS CLB OS SP SP continues to outperform global car production OS on high profitability level CLB strong in a declining market LLS continues growth path LS improvements slower than expected 3

4 Future Setup Classic Lamps and Ballasts (CLB) LED Lamps and Systems (LLS) Lighting Solutions & Systems (LSS) Specialty Lighting (SP) Opto Semiconductors (OS) Thermal lamps (Halogen and Incandescent lamps) LED Retrofit lamps Luminaires for professional applications Automotive (forward, rear, signal & interior lighting) LED (e.g. general lighting, automotive headlamps and mobile flashes) LAMPS Fluorescent lamps High & Lowpressure discharge lamps Electronic control gears (trad.) Light Engines and modules Light management systems Electronic control gears (LED) Lighting control systems Dynamic lighting (e.g. architectural lighting) Lighting solutions & projects Display / Optic (e.g. special lamps for medicine, industry, entertainment and projection) OLED Infrared emitters, detectors, sensors and power lasers (e.g. for mobile phones, CCTV, automotive safety) OSRAM 4 former segment Luminaires & Solutions (LS)

5 Carve-out Lamps on track for separation in spring 2016 Lamps Lamps at a glance Approx. EUR 2 bn. in revenue Approx employees Operating in 135 countries International footprint with approx. 20 plants Broad international customer base Higher flexibility and ability to adopt Strong trade and retail channel access OSRAM and Sylvania as licensed brands 5

6 Revenue up strongly supported by FX effects Group ( m) Revenue development Comments Q3 FY15 y-o-y Revenue in m comparable nominal 1.203, ,8 Fiscal , , ,6 Currency translation of 11.9% and portfolio effect of 2.0% on Clay Paky. Comp. growth in Americas mainly driven by LLS and lower decline at CLB. APAC with comp. growth in all segments except CLB. (1,1)% 0,8% (5,9)% 0,2% 5,0% 9,5% 12,4% 0,5% (1,5)% (1,4)% EMEA comp. decline due to LS and CLB. 44% LED share, LED growth remained on high level. Q3 Q4 Q1 Q2 Q3 Revenue by segment Q3 FY15 1) Revenue by region Q3 FY15 22,3% 28,3% 31,3% 6,9% 11,2% Opto Semiconductors Specialty Lighting LED Lamps & Systems Luminaires & Solutions Classic Lamps & Ballasts nom. / comp. 2) 16.6% / 3.7% 23.5% / 4.2% 52.3% / 36.4% (6.9)% / (14.2)% (3.1)% / (13.3)% 35,5% 25,6% 38,9% EMEA APAC Americas nom. / comp. 2) 1.3% / (2.8)% 15.8% / (4.1)% 24.8% / 2.4% 1) Based on sum of segments' revenue, w/o considering corp. items & consolidation. 2) Nom. (nominal growth) comp. (comparable growth), adjusted for FX and portfolio effects. 6

7 Strong profitability Group ( m) EBITA development Comments Q3 FY15 y-o-y EBITA margin in % adjusted 1) reported 8,6% 8,0% 6,7% 2,7% Fiscal ,8% 10,8% 9,5% 8,9% 7,4% (3,0)% Both, reported and adjusted EBITA margin clearly above prior year. Again significant positive currency effects on EBITA. Profitability benefits from strong OSRAM Push savings and SG&A cost discipline. EBITA in million Net income and EPS in Q3 FY15 at 63.8m and 0.60, respectively. 80,9 124,7 100,3 36,2 (41,3) Q3 Q4 Q1 Q2 Q3 Special items 1) Q3 Q4 FY Q1 Q2 Q3 EBITA reported (41.3) therein: OSRAM Push transformation costs (20.2) (66.0) (129.9) (184.0) (25.9) (23.2) incl. personnel restructuring Total special items (22.9) (70.0) (138.5) (192.2) (26.8) (28.3) 1) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 7

8 Specialty Lighting: Growth above global car production on rising LED share Revenue and EBITA margin development Comments Q3 FY15 y-o-y EBITA margin in % adjusted 2) reported 14,4% 14,9% 13,7% 14,1% Fiscal ,0% 15,9% 14,1% 14,9% 14,8% 13,3% Automotive with 4% comp. growth, driven by Americas and APAC; DO also contributed to growth. Nom. growth supported by currency translation of 13.1% and Clay Paky with 6.2%. Increase of LED share to 37% from 33%. Revenue in million change in % comparable 378,1 403,7 10,2% 9,7% 432,7 475,3 467,1 15,0% 21,0% 23,5% Substantial positive currency effects in EBITA. Adjusted EBITA margin slightly down y-o-y due to ramp-up costs for new technologies in car lighting and portfolio mix also expected in coming quarters. nominal 5,4% 9,4% 6,1% 5,2% 4,2% Q3 Q4 Q1 Q2 Q3 Special items 1,2) EBITA reported Q3 FY14 Q3 FY therein: Total special items (2.6) (3.5) 1) Prior year figures are adjusted for effects from OLED integration into SP 2) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 8

9 Opto Semiconductors: Profitability level remains high Revenue and EBITA margin development Comments Q3 FY15 y-o-y EBITA margin in % reported Revenue in million change in % comparable nominal Fiscal ,8% 16,7% 16,2% 17,0% 18,5% 321,5 332,8 285,5 299,3 294,7 19,1% 11,5% 9,3% 16,6% 5,0% 11,3% 2,3% 4,3% 8,2% 3,7% All regions growing, main growth drivers being automotive and industry business. Best quarterly EBITA in OS history. High productivity, capacity utilization and wellbalanced business mix. Prior-year revenue and EBITA included proceeds from a license agreement. Q3 Q4 Q1 Q2 Q3 9

10 LED Lamps & Systems: Again sharp top line growth Revenue and EBITA margin development Comments Q3 FY15 y-o-y EBITA margin in % adjusted 1) reported Revenue in million change in % comparable nominal Fiscal (4,4)% (5,9)% (6,6)% (20,3)% (16,0)% (4,3)% (6,0)% (6,7)% (20,3)% (19,5)% 67,7% 71,8% 70,3% 56,1% 52,3% 60,3% 71,8% 65,2% 42,6% 36,4% 144,0 162,5 164,0 167,2 109,8 Substantial comp. revenue growth mainly driven by Americas despite more pronounced base effect. Lighting components outpace growth of LED Lamps. Sharp increase of EBITA margin due to scale and productivity yet, held back by negative currency impact and product sell-offs. Q3 Q4 Q1 Q2 Q3 1) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 10

11 Luminaires & Solutions: Improved profitability despite missing volume Revenue and EBITA margin development Comments Q3 FY15 y-o-y EBITA margin in % adjusted 1) reported (14,9)% (16,1)% Fiscal (6,7)% (7,0)% (11,5)% (9,1)% (8,6)% (15,0)% (11,8)% (16,5)% Comparable revenue decline is largely due to exit of businesses in NAFTA; EMEA luminaires business also behind expectations. Double-digit comp. growth of LED products further y-o-y increase of LED share to 62% up from 48%. Revenue in million Adj. EBITA improved y-o-y due to OSRAM Push measures. change in % comparable nominal 109,8 124,1 111,4 99,6 102,2 (13,4)% (19,8)% (17,3)% (1,0)% (6,9)% Special items 1) (16,1)% (19,8)% (19,3)% (7,8)% (14,2)% Q3 FY14 Q3 FY15 EBITA reported (17.7) (12.0) Q3 Q4 Q1 Q2 Q3 therein: (1.3) (0.2) Total special items 1) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 11

12 Classic Lamps & Ballasts: Strong operational performance and free cash flow Revenue and EBITA margin development Comments Q3 FY15 y-o-y Fiscal EBITA margin in % 6,4% 6,9% 11,4% 10,7% 8,3% Continued decrease of traditional business in accordance with market and our expectation. adjusted 2) reported 3,4% (1,7)% 9,2% 5,6% HAL Classic in Americas with continued sharp growth. Revenue in million change in % comparable 434,9 476,3 (13,4)% 505,2 470,9 421,3 Adjusted EBITA margin substantially above prior year mainly due to lower SG&A costs and ongoing stable prices. Excellent cash conversion with FCF of 60.3m, sharply above prior year level on successful asset management program. nominal (13,6)% (12,5)% (19,2)% (13,9)% (8,3)% (8,5)% (3,1)% (10,2)% (16,3)% (13,3)% Special items 1,2) Q3 FY14 Q3 FY15 EBITA reported Q3 Q4 Q1 Q2 Q3 therein: (12.9) (11.3) Total special items 1) Prior year figures are adjusted for effects from prematerials integration into CLB 2) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-offrelated costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 12

13 OSRAM Push Project progress OSRAM Push Status June 30, 2015 Target (FY15-17) Progress Transformation costs, cumulated ( m) 262 ~450 58% Job reduction, cumulated (in 1,000 FTE) % OSRAM Push cost reduction (gross), cumulated ( m) 324 1,300 25% Ø 100% 13

14 Extraordinarily strong free cash flow development Group ( m) Capital Expenditure Net Liquidity bridge -3,3% SP OS 77,0 14,0 74,4 17, (10.7) 9.6 (25.4) (74.4) (12.0) CLB LLS LS Capex as % of revenue 34,6 39,8 16,6 1,7 10,1 8,8 3,0 5,3 Q Q Net Liquidity 3/31/15 EBITDA Δ NWC FCF Δ other assets and receivables Other cash flows from operating activities Income taxes paid CAPEX Other invest./ fin. activities Net Liquidity 6/30/15 Working Capital Group WC Inventories Trade receivables 1, , ,3% 1, , Free cash flow 52,0 168,4% 139,6 Trade payables (706.7) 6/30/14 Turns 1) 4.4 (681.5) 06/30/ Q3 14 Q3 15 1) Defined as revenue (last twelve months) divided by working capital 14

15 Key financial metrics Key financial metrics Group ( m) Q3 FY14 Q3 FY15 Change (y-o-y) nom. 12.4% Revenue 1, ,352.6 comp. (1.4)% Gross margin 32.6 % 31.5 % (110) bps R&D (84.7) (85.6) 1.1 % SG&A (235.6) (246.8) 4.8 % EBITA % EBITA margin 6.7 % 7.4 % 70 bps Adj. EBITA % Adj. EBITA margin 1) 8.6 % 9.5 % 90 bps EBITDA % Financial result (including at-equity result) (7.6) (3.8) (49.5)% Income before income taxes % Taxes Net income Basic EPS in Tax rate Q3 14: 34.1% Tax rate Q3 15: 28,7% High value in Q3 14 to be investigated. Low rate in Q3 15 (23.0) (25.7) % 43.6% 46.3% Free cash flow due to tax-optimized sale of % OHM, as well as Clay Paky CAPEX (3.3)% Net liquidity % Adj. net debt / EBITDA 2) n/a Equity ratio 53.2 % 52.6 % (60) bps Employees (in thousands) (4.4)% 1) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 2) EBITDA for the 9 months ended June was annualized for calculation purposes. 15

16 Outlook remains unchanged For FY15 we expect revenue on FY14 level on a comparable basis. We expect the adjusted 1) EBITA margin to be above 9.0% for FY15. OSRAM Push Phase II in FY15 with gross savings of roughly 400m. Biggest yearly share of transformation costs in FY15 will lead to a sharp decrease in net income and ROCE. Free Cash Flow for FY15 expected to come in with a positive triple digit m amount, but below FY14 level. Based on 2015 outlook and OSRAM s midterm prospects we intend dividend continuity with 0.90 per share also for FY15. 1) Adjustment for special items includes e.g. transformation costs, carve-out-/ spin-off-related costs, substantial legal and regulatory matters, acquisition related costs and costs related to changes in the managing board 16

17 Financial Calendar and Investor Contacts Upcoming events July 30, 2015 Roadshow, London July 31, 2015 Roadshow, Frankfurt August 10-11, 2015 Jefferies Industrials Conference, New York September 2, 2015 HSBC Capital Goods Conference, London Investor Relations contact Boris Tramm Munich Office Internet ir@osram.com 17

18 Backup

19 Segment overview Segment Overview Q3 FY15 SP OS LLS LS CLB CIE 1) OSRAM Licht Group Revenue (138.0) 1,352.6 Change % vs. PY reported 23.5 % 16.6 % 52.3 % (6.9)% (3.1)% 20.0 % 12.4 % Change % vs. PY comparable 4.2 % 3.7 % 36.4 % (14.2)% (13.3)% 8.6 % (1.4)% EBITA (11.1) (12.0) 23.7 (23.8) EBITA margin 13.3 % 18.5 % (6.7)% (11.8)% 5.6 % 17.3 % 7.4 % Special items EBITA (3.5) - (0.1) (0.2) (11.3) (13.1) (28.3) therein transformation costs (3.0) - (0.1) (0.3) (11.3) (8.5) (23.2) EBITA before special items (11.0) (11.8) 35.0 (10.7) EBITA margin before special items 14.1 % 18.5 % (6.6)% (11.5)% 8.3 % 7.8 % 9.5 % Free cash flow 2) (55.7) Additions to intangible assets and property, plant and equipment Amortization 3) Depreciation 4) Minor differences may occur due to rounding. 1) Contains corporate items, pensions, eliminations, corporate treasury and other reconciling items. 2) Free cash flow constitutes net cash provided by (used in) operating activities less additions to intangible assets and property, plant and equipment. For the Segments, it primarily excludes income tax related and financing interest payments and proceeds. 3) Amortization and impairments represents amortization and impairments of goodwill and intangible assets, net of reversals of impairments. 4) Depreciation represents depreciation and impairments of property, plant and equipment, net of reversals of impairments. 19

20 Disclaimer This presentation contains certain non-ifrs measures. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt, net working capital and certain other items included herein are not recognized measures in accordance with IFRS and should not be considered as an alternative to the applicable IFRS measures. We have provided these measures and other information in this presentation because we believe they provide investors with additional information to measure our performance. Our use of the terms FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt, net working capital varies from others in our industry and should not be considered as an alternative to net income (loss), cash flows from operating activities, revenue or any other performance measures derived in accordance with IFRS as measures of operating performance or to cash flows as measures of liquidity. FCF, EBITDA, EBITA, EBIT, EBITA margin, capital expenditure, capital expenditure as percentage of revenue and other operating income, net financial debt and net working capital have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under IFRS. Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts. 20