effective chemical-free disinfection. Medical imaging developed positively given 
the company's strong market position while the spectral sensing innovation for 
highly accurate Covid-19 LFT test analysis at the point-of-care showed 
sequential growth. ams OSRAM pursues further opportunities here and are 
developing new Digital Health applications in the in-vitro test market for the 
coming years. 
 
The Lamps & Systems (L&S) business recorded a very solid overall performance in 
the first quarter. The automotive market performed strongly with good revenue 
growth and higher profitability year-on-year. Sustained very robust demand 
across regions reflects the ongoing recovery of automotive demand compared to 
last year. A strong order situation is continuing into the current quarter which 
also echoes demand/supply imbalances in the market. With production fully 
utilized despite year-on-year efficiency improvements, customer demand exceeds 
available volumes in several areas. As a global market leader and driver of 
innovation, the focus for the coming years is on next generation lighting, 
including highly pixelated headlamp systems offering very innovative driver 
assistance and higher safety, supported by the group's strong aftermarket 
position. 
 
The L&S business in the industrial and medical market saw a mixed picture given 
different effects from Covid-19 and market developments. Reduced end market 
demand continues to impact the majority of the construction- and building- 
related L&S business in major regions while certain areas of the Digital Systems 
business show a recovery of demand. The entertainment-related market remains 
strongly challenged across geographies. The disposal process for the Digital 
Systems business, which had been initiated by OSRAM earlier, continues to 
progress as part of the group's portfolio alignment. 
 
The ams OSRAM business is seeing a strong order situation, particularly in the 
automotive and, to a lesser extent, industrial market, which is continuing into 
the current quarter. At the same time, ams OSRAM notes maximum capacity 
utilization in several areas as well as certain allocation situations towards 
existing customer demand. The company is also aware of tight supply chain 
conditions in certain segments of the semiconductor industry. Given the complex 
nature of supply chains and currently constrained forecasting of supply chain 
participants ams OSRAM may therefore experience indirect or direct revenue 
effects or swings related to product availability and customers' manufacturing 
plans in the future. 
 
Starting this quarter, the financial outlook relates to the ams OSRAM group. The 
overall business is expected to continue to develop positively across segments 
in the second quarter. This expectation is particularly driven by the ongoing 
dynamic recovery of global automotive demand despite a generally tight supply 
chain. Solid demand trends in other business areas support this development in 
light of seasonal effects in the consumer market. At the same time, pandemic- 
related effects continue to influence regional economies and end markets with 
different intensity. For the second quarter 2021, ams OSRAM therefore expects 
group revenues of USD 1,430-1,530 million, 5% lower sequentially at the 
midpoint, with an expected adjusted operating (EBIT) margin of 7-10%, all based 
on currently available information. 
 
We currently expect a more limited seasonality for this year with group revenues 
for the second half presently expected to be slightly higher compared to the 
first half. This is due to the expected automotive production situation in light 
of continued strong automotive demand as well as an expected lower market share 
in the consumer market, the latter with a net revenue effect of below 5% of 
currently expected full year group revenues. At the same time and based on our 
strong relationships, we have multiple ongoing development and program 
activities for all of our largest customers in the consumer and automotive 
market. 
 
In addition, the group re-confirms its overall financial target model which 
looks for double digit average yearly revenue growth in % and an adjusted 
operating profitability of 20-25%. The expectations above assume no unforeseen 
negative effects from the Covid-19 pandemic that would result in a meaningful 
negative impact on the group's business. 
 
Additional financial information for the first quarter 2021 is available on the 
company website at https://ams.com/financial-reports [https://ams.com/financial- 
reports]. 
 
### 
 
About ams Group 
The ams Group, including the listed companies ams AG as parent company and OSRAM 
Licht AG, is a global leader in optical solutions. By adding intelligence to 
light and passion to innovation, we enrich people's lives. This is what we mean 
by Sensing is Life. 
 
With over 110 years of combined history, our core is defined by imagination, 
deep engineering expertise and the ability to provide global industrial capacity 
in sensor and light technologies. We create exciting innovations that enable our 
customers in the consumer, automotive, healthcare and industrial sectors 
maintain their competitive edge and drive innovation that meaningfully improves 
the quality of life in terms of health, safety and convenience, while reducing 
impact on the environment. 
 
Our around 30,000 employees worldwide focus on innovation across sensing, 
illumination and visualization to make journeys safer, medical diagnosis more 
accurate and daily moments in communication a richer experience. Our work 
creates technology for breakthrough applications, which is reflected in over 
15,000 patents granted and applied. Headquartered in Premstaetten/Graz (Austria) 
with a co-headquarter in Munich (Germany), the group achieved well over USD 5 
billion combined revenues in 2020 (pro-forma). ams AG is a listed company on the 
SIX Swiss Exchange (ISIN: AT0000A18XM4). OSRAM Licht AG remains a listed company 
on the XETRA market in Germany (ISIN: DE000LED4000). More at https://ams- 
osram.com 
 
ams is a registered trademark of ams AG. In addition many of our products and 
services are registered or filed trademarks of ams Group. All other company or 
product names mentioned herein may be trademarks or registered trademarks of 
their respective owners. Information provided in this press release is accurate 
at time of publication and is subject to change without advance notice. 
 
Join ams social media channels: >Twitter [https://twitter.com/amsAnalog] 
>LinkedIn [https://www.linkedin.com/company/ams-ag] >Facebook [https:// 
www.facebook.com/amsAnalog] >YouTube [https://www.youtube.com/user/amsAnalog] 
Join OSRAM social media channels: >Twitter [https://twitter.com/Osramcom] 
>LinkedIn [https://www.linkedin.com/company/osram] >Facebook [https:// 
www.facebook.com/osram/] >YouTube [https://www.youtube.com/user/osram] 
 
Please note: The ams brand is owned by ams AG, the OSRAM brand is owned by OSRAM 
GmbH. ams group and OSRAM group are in the process of integration. The 
combination of the ams and OSRAM brand is not representing a new brand. This is 
a visual symbol of the two companies coming together, representing the 
aspiration of our future joined group. 
 
[1] Excluding acquisition-related, one-time restructuring and share-based 
compensation costs and results from investments in associates. 
 
 
 
 
 
Further inquiry note: 
Moritz M. Gmeiner 
Vice President Investor Relations 
Tel: +43 3136 500-0 
Fax: +43 3136 500-931211 
Email: investor@ams.com 
 
end of announcement                         euro adhoc 
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(END) Dow Jones Newswires

May 04, 2021 01:00 ET (05:00 GMT)