OSRAM delivers on profitability targets, dividend proposed for the first time

Transcription

1 Roadshow Presentation OSRAM delivers on profitability targets, dividend proposed for the first time OSRAM Licht AG January 2015

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. OSRAM Licht AG 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 OSRAM Licht AG 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 OSRAM: THE global lighting brand Only global lighting pure play World class portfolio of lighting products and solutions From "Analogue" to "Digital" Lighting market set for growth Well positioned Integrated lighting expert with trusted brand, excellent channel access and technology leadership Strong technology focus Structures, processes, product pipeline and technology in place Committed management Diverse, entrepreneurial, motivated and incentivized management team 3

4 OSRAM is the largest, pure play global lighting company Revenue by Segment 1) Customer reach across all channels 3) Opto Semiconductors comp. 12% nom. 10% 20% Classic Lamps & Ballasts comp. (10)% nom. (15)% 35% 13% 9% 30%* OEM Electronic distributors Specialty Lighting comp. 10% nom. 7% 28% 8% 9% Luminaires & Solutions comp. (14)% nom. (16)% LED Lamps & Systems comp. 57% nom. 53% 40%* 8%* Trade Retail AFTM 3) *Professional lighting: 78% Revenue by Region 2) OSRAM is the clear global #2 lighting player 4) Americas comp. (2)% nom. (7)% 32% 44% EMEA comp. 2% nom. 0% 2 nd 35% 2 nd EMEA Americas 41% 24% APAC comp. 2% nom. (2)% 3 rd APAC 5.1bn sales 36% LED share5) 8.7% ~34k 6.4% R&D of adj. EBITA Margin employees 6) sales 1) Based on sum of segments revenue, without considering corporate items and consolidation 2) Based on location of customers 3) Excluding the supply to competitors and to the other Business Units; as of FY12 4) OSRAM estimate based on company publications 5) As % of sales 6) FTEs as of Source: OSRAM data 4

5 Segment overview LED Lamps and Systems (LLS) Classic Lamps and Ballasts (CLB) Luminaires and Solutions (LS) Specialty Lighting (SP) Opto Semiconductors (OS) LED retrofit lamps Light engines Drivers Thermal lamps (Halogen and Incandescent lamps) Energy saving lamps Low-pressure discharge lamps High-pressure discharge lamps Electronic control gears Luminaires for professional applications Light management systems Dynamic lighting (e.g. architectural lighting) Lighting solutions & projects Automotive (forward, rear, signal & interior lighting) Display / Optic (e.g. special lamps for medicine, industry, entertainment and projection) OLED LED (e.g. General lighting, automotive headlamps and mobile flashes) Infrared emitters, detectors, sensors and power lasers (e.g. for mobile phones, CCTV, automotive safety) Lasers 5

6 LED Lamps and Systems (LLS) Focus areas: LED based lamps, light engines and drivers LED share: 100% Segment highlights: Continued strong growth Further investment in drivers and light engines Key topics Technological change towards LED based products Global mega trends, e.g. digitalization of light Key financial figures Values in mn Total revenue Adj. EBITA Margin (95) (31.9)% (84) (18.5)% CAPEX 7 24 Free Cash Flow (98) (161) Quarterly development (34.6%) 67 Quarterly sales [EUR mn] Adj. EBITA margin [%] (27.7%) (38.5%) 84 (28.4%) (25.7%) 95 (13.5%) (20.3%) (16.0%) 144 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 6

7 Classic Lamps and Ballasts (CLB) Focus areas: Halogen-, Compact Fluorescent-, Low Pressure Discharge-, High Pressure Discharge Lamps, Electronic Control Gears LED share: 0% Segment highlights: Positive Free Cash Flow Stable pricing environment Successful management of market transition to LED Strong growth of Halogen in the US Key topics Successful ramp down of business, continuous focus on complexity reduction and pricing discipline Continuous improvement in asset management Pays for its own restructuring; delivers surplus cash Key financial figures Values in mn Total revenue 2,302 1,963 Adj. EBITA Margin % % CAPEX Free Cash Flow Quarterly development % Quarterly sales [EUR mn] Adj. EBITA margin [%] 11.9% % % 12.3% % % 6.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 7

8 Luminaires and Solutions (LS) Three focus areas: Indoor-/Outdoor Luminaires for street-, outdoor lighting and office buildings Integrated Soft- and Hardware portfolio with scalable solutions for i.e. architectural lighting Lighting performance and efficiency upgrade projects and solutions Segment highlights: Trough reached in Q2 Restructuring well progressed Industry leading LED share (Q4 : 56%) New, focussed and experienced management driving business Key topics Focus on profitable core Set for future profitable growth Key financial figures Values in mn Total revenue Adj. EBITA Margin (65) (11.5)% (60) (12.8)% CAPEX Free Cash Flow Quarterly development 148 (9.1%) Quarterly sales [EUR mn] Adj. EBITA margin [%] (16.5%) (15.1%) (6.7%) (8.0%) (24.7%) (14.9%) (6.7%) 124 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 8

9 Specialty Lighting (SP) Focus areas: Automotive (forward, rear, signal & interior lighting) Display / Optic (special lamps for medicine, industry, entertainment and projection) OLED Segment highlights: No. 1 position in AM business World's first supplier for automotive laser light module OSRAM XBO lamp in every 3rd cinema Key topics Outgrowing global automotive production OLED to enter automotive market More than 200 light sources per vehicle Key financial figures Values in mn Total revenue 1,456 1,551 Adj. EBITA Margin % % CAPEX Free Cash Flow Quarterly development 19.9% 359 Quarterly sales [EUR mn] Adj. EBITA margin [%] 16.3% % 15.5% 16.4% 16.3% % 15.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 9

10 Opto Semiconductors (OS) Focus areas LED e.g. for General lighting, automotive headlamps and mobile flashes Infrared emitters, detectors, sensors and power lasers e.g. for mobile phones, CCTV, automotive safety Lasers Key financial figures Values in mn Total revenue 1,018 1,125 EBITA Margin % % CAPEX Free Cash Flow Segment highlights Global no. 2 LED manufacturer with >40 years of experience Highly diversified product portfolio Excellent market access with long term customer relationships World class IP position and innovation strength Key topics Maintain strong market position Investment in profitable growth Source: Audi Quarterly development Quarterly sales [EUR mn] EBITA margin [%] % 19.8% 16.7% 13.5% 14.6% 13.2% 9.8% 10.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10

11 OSRAM Push Phase II ambition: Cumulative gross savings of 1.3bn ( ) Gross savings in m Key characteristics Phase II Key data until FY17: Transformation Total gross savings: 1.3bn Headcount 1) reduction: ~7,800 Exp. transformation costs 2) : ~ 0.45bn 1,000 1,040 Operational Transformation part includes increased restructuring in Germany higher share of indirect functions aspiration to delayer and de-matrix Project progress Push Phase I ) Full-time equivalent 2) Including 29m already booked in Push Phase II Implementation of transformation measures as scheduled Negotiations with labor unions well progressed Agreement of social plan for the transformation measures in Germany signed in Q1FY15 Bulk of planned FY15 transformation costs booked accordingly 11

12 Commitment to our investors 1 Profitable growth 2 Achieve medium-term an EBITA margin of >8% as average over the cycle 1) 3 ROCE clearly above WACC 1) 4 Clear defined Dividend Policy: 30-50% payout ratio of net income 2) Competitive profitability profile in the lighting industry 1) EBITA margin and ROCE for FY15 are expected to be lower than the respective targets due to high transformation costs. 2) Based on IFRS Group Net Income, payout ratio will take into account exceptional non-cash effects within income. 12

13 Q4 Management Presentation (preliminary and unaudited) 13

14 Group highlights OSRAM delivers on profitability targets Successful finish of OSRAM Push Phase I Further increase of LED sales share Growth in more than half of the businesses OSRAM strengthens technology leadership Automotive business extends market leadership Successful shift from 4 to 6 wafer at OS Stable investments in R&D OSRAM plans dividend for the first time Board proposes dividend of 0.90 per share Dividend proposal corresponds to payout ratio of 50% 1) OSRAM intends stable dividend for the fiscal year ) of net income post minorities 14

15 Segment highlights Transformation pays off majority of businesses are growing Specialty Lighting (SP) Strengthened cost and technology leadership in Automotive Exceeds global car production growth since 19 quarters Clay Paky acquisition strengthens growth area Display / Optics Opto Semiconductors (OS) OS back to double digit growth rate in the fourth quarter New factory in Wuxi builds basis for future growth Productivity improvements overcompensated price decreases LED Lamps and Systems (LLS) Continued strong growth Very good development of drivers and light engines Break-even target LEDr lamps Q1 FY15 on track Classic Lamps and Ballasts (CLB) Successful management of market change challenges Focus on pricing discipline Strong growth of halogen in the US Luminaires & Solutions (LS) 2015 break-even target confirmed Luminaires with strong growth in LED Leadership team strengthened 15

16 OSRAM Push on track: Targets of Phase I accomplished Phase II started Successful finish of OSRAM Push Phase I Transformation costs ( m) (FY12 14) Plant reductions (FY12 14) Headcount reduction ( 000) (FY12 14) OSRAM Push gross savings, cum. ( m) ( 15) As of FY 14 OSRAM Push Phase I execution track record Target 599 ~ ,200 Progress 100% 100% 100% ~400 m in FY15 OSRAM Push Phase II started! 16

17 Modest revenue growth (comp.) LED continues to gain ground Group ( m) Revenue development 1) Quarterly revenue Revenue (in m) Comp. growth (%) 1,332 1,326 1,278 1,335 1, Q4 Q1 Q2 Q3 Q4 Nom. Growth (%) (3) (2) (3) (6) 0 Revenue by Segment 2) Q4 1 (1) 1 Comments Q4 y-o-y and Q4 revenue up by 1% comp. LED share at 39% (31% in prior year quarter) LLS boosts revenue (72% comp. y-o-y), decline of CLB at -13% comp. y-o-y OS and SP show continued strong performance, both on new quarterly revenue highs LS with industry-leading LED-share of 56% APAC with clear growth driven by SP; Americas only down due to exit of traditional maintenance business Revenue by Region Q4 Opto Semiconductors comp. 11% nom. 11% Specialty Lighting comp. 10% nom. 9% 21% 28% 33% 10% 9% Luminaires & Solutions comp. (20)% nom. (20)% Classic Lamps & Ballasts comp. (13)% nom. (14)% LED Lamps & Systems comp. 72% nom. 72% 1) nom. (nominal growth) / comp. (comparable growth), adjusted for FX and portfolio effects 2) based on sum of Segments' revenue, w/o considering corp. items & consolidation Americas nom. (4)% comp. (3)% APAC 33% 25% nom. 6% comp. 5% 42% EMEA nom. 1% comp. 2% 17

18 Adjusted EBITA margin with 8% on prior year level Group ( m) EBITA development Comments Q4 y-o-y Adj. EBITA Margin 1) (%) Gross margin increased on lower transformation costs Push measures and functional cost control mostly compensated negative mix effects and price decline EBITA Margin (%) (1.8) 112 EBITA includes transformation costs of 66m, with 29m attributable to OSRAM Push Phase II net income 193m translates into basic EPS of 1.80; dividend of 0.90 proposed Special items 1) EBITA ( m) -24 Q4 Q1 Q2 Q3 Q4 Q4 FY Q1 Q2 Q3 Q4 FY EBITA reported (24) therein: OSRAM Push transformation costs incl. personnel restructuring (110) (300) (10) (34) (20) (66)(130) Total Special items (133) (310) (11) (35) (23) (70)(139) 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 18

19 LED Lamps & Systems (LLS): Continued y-o-y improvement Revenue and EBITA margin development Comments Q4 y-o-y Adj. EBITA Margin 1) (%) EBITA Margin (%) (28.4) (25.7) (13.5) (20.3) (16.0) (19.5) 144 Growth pace remains high (72% comp. y-o-y), driven by LED lamps and drivers Profitability improvements due to productivity and volume Margin held back by supply chain inefficiencies LED lamps spots reached break-even in Q4 EBITA includes 5m special items Revenue ( m) LLS Gross Margin LTM 2) (adj.) Comp. growth (%) bps Q4 Q1 Q2 Q3 Q4 Nom Growth (%) 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / standalone-related costs and substantial legal and regulatory matters 2) Last twelve months Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19

20 Classic Lamps & Ballasts (CLB): Considerable cash generation Revenue and EBITA margin development Comments Q4 y-o-y Adj. EBITA Margin 1) (%) LED transition leads to revenue reduction (-13% comp. y-o-y); CLB value initiative supported again stable prices Again strong growth of HAL Classic business in Americas EBITA Margin (%) Revenue ( m) Comp. growth (%) Nom. Growth (%) (1.2) 549 (2) Q (8) (8) Q1 Q2 431 (14) Q3 (11) (13) (13) (19) (1.8) 472 (13) Q4 (14) OSRAM Push measures and value initiative can mostly offset negative margin effects from volume decline; profitability also benefitted from functional cost control Free Cash Flow of 67m vs. 31m in prior year quarter Comprehensive asset management program started with focus on inventories Special items 1) Q4 FY 13 Q4 FY 14 EBITA reported (7) 42 (8) 90 therein: Total Special items (48) (179) (40) (81) 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 20

21 Luminaires & Solutions (LS): Restructuring well progressed Revenue and EBITA margin development Comments Q4 y-o-y Adj. EBITA Margin 1) (%) EBITA Margin (%) (6.7) (8.0) (11.2) (41.7) (24.7) (25.9) 101 (14.9) (16.1) 110 (6.7) (9.1) 124 Again sequential growth LED share at 56%, up from 34% in PYQ Significant revenue decline y-o-y (-20% comp.) mainly due to exit of traditional maintenance business and luminaire portfolio adjustments Continued profitability improvement with restructuring showing effect LS businesses under common management to drive further synergies, profitability and growth Revenue ( m) Comp. growth (%) 4 Special items 1) Nom. Growth (%) Q4 (6) Q1 (19) Q2 (13) Q3 1 (9) (21) (16) (20) Q4 (20) Q4 Q4 EBITA reported (65) (128) (11) (70) therein: Total Special items (54) (64) (3) (10) 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 21

22 Specialty Lighting (SP): Top line growth and profitability remain on high level Revenue and EBITA margin development Comments Q4 y-o-y Adj. EBITA Margin 1) (%) EBITA Margin (%) Revenue ( m) Comp. growth (%) Automotive business once more driver of revenue growth (10% nom. y-o-y) with growth in LED as well as traditional business Volume holds adjusted EBITA margin on prior year level despite mix effects including significantly increasing LED components sourced from OS Clay Paky to strengthen Display / Optics business in FY15 (with ~ 60m revenue and operational margin on SP level) OLED technology expected to enter automotive market; OLED reported within SP starting Q1 FY15 Special items 1) Nom. Growth (%) Q4 2 Q1 Q2 5 7 Q3 5 Q4 9 Q4 Q4 EBITA reported therein: Total Special items (9) (27) (3) (10) 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 22

23 Opto Semiconductors (OS): Back to double digit growth Revenue and EBITA margin development Comments Q4 y-o-y Quarterly revenues reach new peak level with 299m benefitting from seasonality; again new revenue high 16.7 Growth across all regions EBITA Margin (%) EBITA margin y-o-y on high level based on improved product mix and operational performance Revenue ( m) Comp. growth (%) Nom. Growth (%) Q4 10 Q1 Q Q3 2 Q

24 Reported EBITA burdened by transformation costs, Push more than compensates pricing pressure and mix Margin 7.7% 438m Margin 8.7% Margin 6.0% Margin 1.9% EBITA as reported EBITA adjusted 1) Customer Price Change Inflation Volume / Degression / Product Mix / Others Cost Reduction Measures (OSRAM Push) EBITA adjusted 1) EBITA as reported 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 24

25 Our global SG&A program drives competitiveness through lean structures OSRAM SG&A Program Secure future competitiveness for SSL Lean organization & efficient processes Sustainable structural improvements Lean HQs Efficient HQ setup, increased flexibility Clear responsibilities BUs / service providers GI Sales Streamlining Optimize Sales functions & channels cross BUs and regions De-layer and de-matrix GSS & Process Excellence Align business processes globally E2E-Process transformation to provide cost efficient & effective services for businesses Sustainably margin-accretive savings: 100m + additional 160m from footprint measures with an incremental profit upside in case of improved market outlook 25

26 ROCE and FCF targets achieved Group ( m) Capital Expenditure SP 13 OS CLB LLS LS Other Q4 Q4 Capex as % of revenue Net Debt bridge Net EBITDA Liquidity Q3-3 NWC FCF 51m non- Mainly current taxes assets paid and liabilities -77 Other CAPEX income / expense 487 Other Net Invest./ Liquidity Fin. Q4 activities Operating Working Capital Group WC +66 ROCE Free Cash Flow Inventories Trade receivables 1, ,211 1, % 9.3% Trade payables Turns 1) Q4 Q ) Defined as revenue (last twelve months) divided by working capital 26

27 Key financial metrics Group ( m) Q4 Q4 Revenue 1,332 1,335 Change (y-o-y) Nom: 0% Comp: 1% 5,289 5,142 Change (y-o-y) Nom: (3)% Comp: 1% Gross Margin 27.2% 28.9 % 170bps 28.2% 31.4% 320bps R&D (86) (85) 1 (341) (331) 10 SG&A (315) (265) 50 (1,103) (985) 118 EBITDA EBITA (24) EBITA Margin (1.8)% 2.7% 450bps 1.9% 6.0% 410bps Adj. EBITA (2) Adj. EBITA Margin 8.1% 8.0% (10)bps 7.7% 8.7% 100bps Financial result (incl. at-equity results) (10) (13) (3) (22) (5) 17 Income before Taxes (44) Taxes 16 (5) (21) (17) (86) (69) Net Income (29) Basic EPS (in ) (0.28) 1) Free Cash Flow (34) (68) CAPEX (90) (77) 13 (207) (243) (36) Employees (in thousands) (1) (1) Net Debt (Liquidity) (172) (487) (315) (172) (487) (315) Adj. Net Debt (Liquidity) / EBITDA 0.5 (0.1) 0.5 (0.1) Equity Ratio 49% 51% 200bps 49% 51% 200bps 1) Pro forma 27

28 Outlook For FY15 we expect revenue on level on a comparable basis 2 We expect the adjusted 1) EBITA margin to be at level 3 OSRAM Push Phase II in FY15 with gross savings of roughly 400m 4 5 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 tripledigit m amount, but below level Based on 2015 outlook and OSRAM s midterm prospects we intend dividend continuity with 0.90 per share also for FY15 1) Adjusted for special items / special items include e.g. transformation costs, spin-off- / stand-alone-related costs and substantial legal and regulatory matters 28

29 Financial Calendar and Investor contacts Upcoming events January 13/14, 2015 Commerzbank Investment Seminar, New York February 4, 2015 Preliminary figures 1 st quarter FY 2015 February 5, 2015 Bankhaus Lampe German Equity Forum, London February 6, 2015 Roadshow, Paris Investor Relations contact Boris Tramm Munich Office Internet ir@osram.com 29

30 Income statement OSRAM Licht Group Consolidated Statement of Income (preliminary) For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014 (unaudited) and 2013 (in million) Consolidated Statement of Comprehensive Income (preliminary) For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014 (unaudited) and 2013 (in million) Three months ended September Revenue 1, , , ,288.7 Cost of goods sold and services rendered , ,797.2 Gross profit , ,491.5 Research and development expenses Marketing, selling and general administrative expenses ,102.8 Other operating income Other operating expense Income (loss) from investments accounted for using the equity method, net Interest income Interest expense Other financial income (expense), net Income (loss) before income taxes Income taxes Net income (loss) Attributable to: Non-controlling interests Shareholders of OSRAM Licht AG Undiluted earnings per share (in ) ,28 1) Diluted earning per share (in ) ,28 1) Three months ended September Net income (loss) Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans Items that may be reclassified subsequently to profit or loss Currency translation differences Available-for-sale financial assets Derivative financial instruments subtotal Other comprehensive income (loss), net of tax (1) Total comprehensive income (loss) Attributable to: Non-controlling interests Shareholders of OSRAM Licht AG Percentages and numbers may contain rounding differences. (1) Other comprehensive income (loss), net of tax includes income (losses) of -0.1 million and 0.3 million, respectively, from investments accounted for using the equity method in the three months ended September 30, 2014 and for the fiscal year 2014 (for the previous year: -0.1 million and -2.5 million, respectively), of w hich 0.0 million and 0.0 million, respectively, is attributable to items that w ill not be reclassified to profit or loss (for the previous year: 0.0 million and -4.2 million, respectively). Percentages and numbers may contain rounding differences. (1) Pro forma 30

31 Cash Flow OSRAM Licht Group Consolidated Statement of Cash Flow (preliminary) For the fiscal years ended September 30, 2014 (unaudited) and September 30, 2013 (in million) Cash flows from operating activities Net income (loss) Adjustments to reconcile net income (loss) to cash provided (used in) operating activities Amortization, depreciation and impairments Income taxes Interest (income) expense, net (Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net (Gains) losses on sales of investments, net (Income) loss from investments Other non-cash (income) expenses Change in current assets and liabilities (Increase) decrease in inventories (Increase) decrease in trade receivables (Increase) decrease in other current assets Increase (decrease) in trade payables Increase (decrease) in current provisions Increase (decrease) in other current liabilities Change in other assets and liabilities Income taxes paid Dividends received Interest received Net cash provided by (used in) operating activities Cash flows from investing activities Additions to intangible assets and property, plant and equipment Acquisitions, net of cash acquired Purchases of investments Proceeds and (payments) from sales of investments, intangible assets and property, plant and equipment Proceeds and (payments) from the sale of business activities Net cash provided by (used in) investing activities Cash flows from financing activities Purchase of common stock Proceeds from re-issuance of treasury stock Proceeds from issuance of long-term debt Transaction costs related to unused credit facilities Repayment of long-term debt Change in short-term debt and other financing activities Interest paid Dividends paid to non-controlling interest shareholders Profit and loss transfer with Siemens Group Interest paid to Siemens Group Other transactions / financing with Siemens Group Net cash provided by (used in) financing activities Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash and cash equivalents at end of period (Consolidated Statements of Financial Position) Percentages and numbers may contain rounding differences. 31

32 Balance sheet OSRAM Licht Group Consolidated Statement of Financial Position (preliminary) As of September 30, 2014 (unaudited) and September 30, 2013 (in million) As of September 30 As of September Assets Current Assets Cash and cash equivalents Available-for-sale financial assets Trade receivables Other current financial assets Inventories 1, Income tax receivables Other current assets Noncurrent assets held for sale Total current assets 2, ,593.4 Goodwill Other intangible assets Property, plant and equipment 1, ,132.7 Investments accounted for using the equity method Other financial assets Deferred tax assets Other assets Total assets 4, ,425.3 As of September 30 As of September Liabilities and equity Current liabilities Short-term debt and current maturities of long-term debt Trade payables Other current financial liabilities Current provisions Income tax payables Other current liabilities Total current liabilities 1, ,463.6 Long-term debt Pension plans and similar commitments Deferred tax liabilities Provisions Other financial liabilities Other liabilities Total liabilities 2, ,256.0 Equity Common stock, no par value Additional paid-in capital 2, ,022.9 Retained earnings Other components of equity Treasury shares, at cost Total equity attributable to shareholders of OSRAM Licht AG 2, ,148.6 Non-controlling interests Total equity 2, ,169.3 Total liabilities and equity 4, ,425.3 Percentages and numbers may contain rounding differences. 32

33 Segments OSRAM Licht Group Notes to the Consolidated Financial Statements - Segment Information (preliminary) For the three months ended September 30, 2014 (unaudited) and 2013 and for the fiscal years ended September 30, 2014 (unaudited) and 2013 (in million) Total revenue EBITA (1) Total revenue EBITA (1) Three months ended September 30 Three months ended September Segments LED Lamps & Systems (6) Classic Lamps & Ballasts (6) Luminaires & Solutions Specialty Lighting Opto Semiconductors Total Segments 1, , Reconciliation to consolidated financial statements Corporate items and pensions Eliminations, corporate treasury and other reconciling items OSRAM Licht Group 1, , Segments LED Lamps & Systems (6) Classic Lamps & Ballasts (6) 1, , Luminaires & Solutions Specialty Lighting 1, , Opto Semiconductors 1, , Total Segments 5, , Reconciliation to consolidated financial statements Corporate items and pensions Eliminations, corporate treasury and other reconciling items OSRAM Licht Group 5, , Percentages and numbers may contain rounding differences. (1) EBITA is earnings before financial results (Income (loss) from investments accounted for using the equity method, net; Interest income; Interest expense and Other financial income (expense), net), Income taxes and Amortization as defined (2) Assets of the segments and corporate items and pensions are defined as Total assets, less financing receivables and tax related assets as w ell as noninterest-bearing provisions and liabilities other than tax liabilities (e.g. trade payables). (3) 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 (4) Amortization represents amortization and impairments of goodw ill and intangible assets, net of reversals of impairments. (5) Depreciation represents depreciation and impairments of property, plant and equipment, net of reversals of impairments. The nine months ended June 30, 2014 include impairment losses on property, plant and equipment used for the production of prematerials of 6.2 million related to the reassessment of the strategic business prospects and mainly affecting the CLB segment. (6) Segment information data for comparison periods has been adapted to the new composition of segments. 33

34 Impact of OLED integration into Specialty Lighting (SP) Group ( m) Q1 Q2 Q3 Q4 FY 14 SP ex. OLED (as reported) Revenue ,551 adj. EBITA adj. EBITA margin 16.4% 16.3% 15.2% 15.5% 15.9% OLED Revenue EBITA SP incl. OLED 1) Revenue ,551 adj. EBITA adj. EBITA margin 15.7% 15.4% 14.4% 14.9% 15.1% 1) Restated pro forma figures 34

35 Disclaimer This presentation contains certain non-ifrs measures. FCF, EBITDA, EBITA, EBITA margin, capital expenditures, capital expenditures as percentage of revenues 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, EBITA margin, capital expenditures, capital expenditures as percentage of revenues 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, revenues 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, EBITA margin, capital expenditures, capital expenditures as percentage of revenues 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. 35