Ams OSRAM : Conference call presentation / investor presentation - Full year + fourth quarter results 2021

Sensing is life

Full year and fourth quarter results 2021

Alexander Everke, CEO

Ingo Bank, CFO

Moritz M. Gmeiner, Head of IR

February 2022

1

Vision and mission for ams OSRAM

Create the uncontested leader in optical solutions
Sensing	Illumination	Visualization

Become the uncontested leader in optical solutions through bold investments in disruptive innovation and continuous transformation delivering best in class profitability and growth

2

Pursue market leadership in key optical segments

Building success from our focus technologies

Emitters

Optical components &

Detectors

micro-modules

Key solution	•	LEDs	•	Optical elements:	•	Light sensors
•	Micro LED / Mini LED		Lenses, light guides,	•	Bio-sensors
components	•	VCSELs / EELs		DOEs	•	Image sensors
	•	Lamps	• Micro-optical packaging
	•	Optical modules

Micro-optical solutions & lamps

Sensing

Illumination

Integrated circuits &

algorithms

• Emitter driver ICs
• Sensor interfaces
• Sensor processors (incl. algorithms)

Visualization

3

Excellent position for leadership in optical solutions

Balanced revenue streams (FY 2021)

27%

40%

Industry-leading portfolio + application expertise

• Focus on leading technology position
• Leader in application expertise across end markets
• Agility to support short and long product life cycles
• Ability to drive innovation in different end markets, applications and customer bases
• Leveraging outstanding IP and manufacturing

33%

Consumer Automotive Industrial and Medical

Leading in key optical applications

• Advanced automotive exterior/interior LED lighting
• LED innovation
  (UV-C, Mini LED, IRED, high power specialty lighting)
• Micro LED next generation display technology
• EEL + VCSEL LIDAR
• 3D solutions (AR, authentication, consumer + industrial)
• Display management, optical sensing, near-to-eye
• High performance imaging

4

Strong value proposition

Commitment to drive growth	Strong focus on long-term value generation
• Bold investments into disruptive technologies and	• Leading technology provider
innovation-led growth	• Re-investing in organic growth opportunities
(R&D target level: 11-14% of revenues)	• Balanced end market exposure creates broadly
• Clear target of double-digit avg. annual revenue growth	supported earnings streams
• Solutions approach to address high differentiation	• Diversified global customer base and sales channels
opportunities + new markets	• Continuous active portfolio management to optimize
• Selective M&A to add technology to build leadership	technology position

Path to strong sustainable profitability	Prudent financial policy
• Realizing significant synergies and savings
• Committed to de-leverage balance sheet
(~EUR 350m until spring 2024)	• Targeting investment grade rating and
• Committed to drive benchmark levels for operational	leverage <2x net debt/adj. EBITDA
and support function costs	• Diversified mix of financing instruments with
(SG&A target level: 7-9% of revenues)	balanced longer-term maturity profile
• Clear target of >20% adj. EBIT margin	• Further increase in OSRAM ownership not a priority

5