OSRAM Licht : Earnings Release Q1/21 (unaudited)

www.osram.com

Strong first quarter thanks to favorable business momentum and continued performance management

Q1 FY21 Earnings Release (unaudited figures)

OSRAM Licht AG | February 09, 2021

Light is OSRAM

Disclaimer

This presentation as well as other reports, presentations, materials delivered to shareholders and press releases 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. In addition, our representatives may from time to time make oral forward-looking statements. 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 current views and expectations and on certain assumptions of which many are beyond OSRAM Licht AG's control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the sub-chapter Risks in the Annual Report. 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 forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

This presentation includes references to non-IFRS financial measures, including, but not limited to: FCF, EBITDA, EBITDA margin, capital expenditure, capital expenditure as percentage of revenue, net financial debt and net working capital. We have provided these measures and other information in this presentation because we believe they provide investors with additional useful information to assess our performance. Our use of these supplemental financial measures may vary from others in our industry and should not be considered in isolation or as an alternative to our results as reported under IFRS.

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 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Mastering the threefold challenge: High semiconductor demand, driving performance improvements, OSRAM/ams integration project

Statement from the CEO

Q1 FY21 summary:

• Revenue at €840m, comparable sequential increase of 14% / flat YoY
• Adj. EBITDA at €162m (19.3% margin)
• FCF at €50m

"OSRAM had a remarkable start to the fiscal year. The quick rebound in automotive and other industries has led to full order books and we are doing our best to maximize production. These signals from major end markets, in conjunction with an overall stabilized macroeconomic forecast, encouraged us to revisit the outlook for fiscal year 2021.

I am especially pleased with the first quarter profit and cash performance. At a comparable revenue level to the prior year period, we made excellent progress in terms of gross profit improvement and simultaneous cost reduction. This is again a clear result from the long-term performance programs as well as the COVID-related SHIELD measures.

As part of our ongoing portfolio evaluation, we have decided to start the search process for a new best owner for the DI lighting components business.

Meanwhile, OSRAM and ams are working together to complete the business

combination, pending court procedures regarding DPLTA registration."

3 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Favorable development in profitability and free cash flow

Revenue (€m) / Comp. Growth

	-0.1%
873	840
Q1/20	Q1/21

Overall stable revenue on a comparable basis, DI posts decline due to entertainment business

Adj. EBITDA Margin

+6.3%p	Significant
profitability increase

			19.3%		thanks to ongoing
	13.0%			performance
			€162m		programs and high
	€114m
			factory loading
	Q1/20	Q1/21

Free Cash Flow (€m)

			+43
			50		All business units
						cash-positive
	7
	Q1/20		Q1/21

Comments:

• Most businesses on a very positive trajectory, notable exception remains entertainment & cinema lighting
• Very strong numbers at OS - operational challenges posed by high order volume and maximum factory utilization under pandemic conditions
• Adj. EBITDA improvement driven by OS and AM
• High profitability leads to positive FCF

4 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Continued upward trend in macroeconomic indicators - supply chain pressure rising across key industries

	OECD Leading Indicator1)
Global	101		OECD Composite Leading Indicator
Economics
100				Calendar months
	99
	98
	97
	96
	95
	94
	93
	01/18	07/18	01/19	07/19	01/20	07/20	01/21

Global Manufacturing PMI2)

56		J.P. Morgan Purchasing Manager Index
54				Calendar months
52
50
48
46
44
42
40
38
01/18	07/18	01/19	07/19	01/20	07/20	01/21

Sources: 1) OECD Composite Leading Indicator (CLI) as published on data.oecd.org

2) JP Morgan Purchasing Manager Index, J.P. Morgan and IHS Markit in cooperation with ISM and IFPSM

5 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Global car production now predicted to reach 86m units in FY21, still short of pre-crisis levels but steadily improving

Global light vehicle production by quarter		Light vehicle production by region (YoY, %)

Automotive	Units (million)	Y/Y
Market		FY21

World

Europe

74m		86m
		68%

100%

15.9

16.6

		-4%					-4%			3%	15%				1%
30
	-22%
25			-43%					23.4
										20.5		21.2	20.6
20
15
10
5
0
		Oct-		Jan- Apr- Jul- Oct- Jan-			Apr- Jul-
		Dec'19 Mar'20 Jun'20 Sep'20 Dec'21 Mar'21		Jun'21 Sep'21

50%-18.2

0%	FY20	FY21

-50%

NAFTA

24.3

-21.9

FY20FY21

-23.3

FY20FY21

China

10.2

-5.3

FY20FY21

Source: Light vehicle production forecast based on monthly IHS Data, fiscal year based. As of: January 19, 2021

6 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Performance programs near target achievement, ahead of schedule

Overhead

productivity

global

Transformation

of plants

Savings total

1) Gross savings compared to prior year baseline

FY18-201)

Q1 FY211)

Comments

€142m		€15m	▪	Continued performance push despite COVID
		and supply chain challenges
			▪	All programs executed according to plan

▪ Total program target of €300m till FY22 will

already be achieved in the course of FY21

€113m€10m

€255m		€25m		Σ €280m since program launch

7 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Process started to identify new best owner for DI components business

• Intended sale is part of wider, continuous portfolio evaluation (e.g. previous Siteco divestment) to sharpen the profile as Photonics Champion and concentrate on high-margin businesses
• The DI components business with ballasts, drivers and modules holds a strong market position in Europe and North America
• After successful restructuring, the business is now ready to unlock further growth prospects under new ownership

OSRAM

Opto Semiconductors (OS)

Automotive (AM)

Digital (DI)

Entertainment &	Industry/
Cinema Lighting	Horticulture
Connected Building		Dynamic Lighting
Applications

Lighting Components

8 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Revenue on a stable level compared to prior year

Revenue (€m) / Comp. growth (%)1)

OSRAM Group: Revenue bridge Q1 FY21 YoY									OS Revenue Development (comp. growth)
873		-5.5%	1.8%	-0.1%		840										+4.7%	11.7%
								359	362		356
																				297	320
																				Q1/20	Q2/20	Q3/20	Q4/20	Q1/21
																		AM Revenue Development (comp. growth)
	Revenue	FX	Portfolio	Comparable	Revenue
		Q1/20						growth		Q1/21
														+1.4%	20.4%
OSRAM Group: Revenue by Region Q1 FY21
									480			474
									431		395
																				282

			Comp. growth
29.4% 32.2%		EMEA	-4.0%

APAC+5.7%

AMERICAS-2.9%

38.4%

Q1/20

Q2/20

Q3/20

Q4/20

Q1/21

DI Revenue Development (comp. growth)

		-12.6%
217	200			8.0%
159	165	178
Q1/20	Q2/20	Q3/20	Q4/20	Q1/21

9 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Adj. EBITDA Margin clearly above prior year

Adjusted EBITDA (€m) / Adjusted EBITDA Margin (%)

Adjusted EBITDA1) Q1 FY21 YoY

OS adjusted EBITDA

		19.3%
	-4	15
13.0%	37
		162
114

Adj. EBITDA	Volume/	Price & Inflation	Mix/	Adj. EBITDA
Q1/20	Degression	vs. Productivity2)	Q1/21
Other

Comments

• Adj. EBITDA in Corporate Items: €-14m
• EBITDA Special Items: €-31m (incl. €-8m personnel restructuring)
• Net Income: €+6m from continuing operations, including €-20m impairment related to DI portfolio
• Adj. EBITDA improvement driven by higher GP, lower OPEX as well as positive one-offs, mainly at OS
• Productivity almost offsets price erosion and inflation
• OPEX significantly below prior year due to performance program savings and COVID-19 related cancellations of events as well as reduced travelling

	24.5%				31.7%
	21.0%		21.3%
	88	76	12.2%	68	113
	36
	Q1/20	Q2/20	Q3/20	Q4/20	Q1/21

AM adjusted EBITDA

9.7%								13.6%
6.9%		5.5%
	65
	47
		30
			22
							-23
							-8.0%
	Q1/20	Q2/20	Q3/20	Q4/20	Q1/21
DI adjusted EBITDA
				0.8%
					2
		-1									-1
							-7
-0.3%				-23			-0.8%
			-4.2%
							-14.2%
	Q1/20	Q2/20	Q3/20	Q4/20	Q1/21

1) Adjustment for special items (S.I.) includes a.o. transformation costs, substantial legal and regulatory matters as well as share based compensations, and costs related to M&A activities including the sale of subsidiaries, investments and other businesses.

2) Related to COGS.

10 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Positive Free Cash Flow driven by profitability

Free Cash Flow / Net Debt / Liquidity (€m)

Free Cash Flow1) bridge Q1 FY21

EBITDA
131
Trade Receivables
-54
Inventories	-25
Trade Payables	52
Income taxes paid
	-3
Capex	-21
Other	-30
FCF1)
50

1) Defined as net cash provided by (used in) operating activities less capital expenditures

2) LTM = last twelve months

Net debt bridge Q1 FY21

3.45

Leverage Ratio (Net Debt / EBITDA LTM2) as reported) 2.67

-541

-507

-5

-9

-3

50

Net Debt,

FCF

Acquisition of

Investments in

Reclassification

Net Debt,

Sep 30, 2020

companies

financial assets

of net financial

Dec 31, 2020

less acquired

and other

debt of OSRAM

cash and cash

investing &

Continental as

equivalents

financing activities

assets held for

sale

Cash and cash equivalents plus unused lines of credit

696

723

375

450

Undrawn, central

credit facilities

Cash & Cash

321

Equivalents

273

Sep 30, 2020

Dec 31, 2020

11 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Outlook for FY211) 2)

Revenue		Adj. EBITDA margin	Free Cash Flow
Comparable revenue		Adjusted EBITDA	Free Cash Flow ranging
growth between		margin	from 70 million Euro to
10% and 14%		of 12% to 15%	130 million Euro3)

1. Assumptions: No material negative effects from further COVID-19 lockdowns or considerable disturbances in the supply chain; Outlook does not assume any effects from the takeover by ams AG. Outlook is based on currently prevailing FX rates (esp. €, US$, CN¥, M$) at the release date of FY21 updated outlook (Jan 26, 2021).
2. Outlook as communicated in ad hoc announcement on January 26, 2021
3. Incl. cash outflow from transformation and M&A-related costs; excl. proceeds from possible divestments.

12 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Appendix

Financial calendar and IR contact information

Upcoming events

• February 23, 2021
  Annual General Meeting, Munich, Germany

Investor Relations contact

Telephone	+ 49 89 6213 4259
Internet	http://www.osram-group.de/en/investors
Email	[e-mail]

14 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Key financial metrics (continuing operations)1) (unaudited)

Group (€m)	Q1 FY21	Q1 FY20	Change (YoY)
			nom.	-3.8 %
Revenue	840	873	comp.	-0.1 %
Gross margin	29.2%	29.3%		-10 bps
R&D	-82	-88		-7.2 %
SG&A	-144	-163		-11.7 %
EBITDA	131	98		33.5 %
EBITDA margin	15.6%	11.3%		440 bps
Adj. EBITDA	162	114		42.1 %
Adj. EBITDA margin	19.3%	13.0%		620 bps
Financial result, including at-equity result (continuing operations)	-15	-10		61.5 %
Income (loss) before income taxes (continuing operations)	15	1		955.4 %
Taxes	-9	0		n.a.
Net income (loss) (continuing operations)	6	1		369.6 %
Diluted EPS in € (continuing operations)	0.16	0.12		35.6 %
Free cash flow (continuing operations)	50	7		636.1 %
CAPEX	-21	-28		-26.0 %
Net debt	-507	-585		-13.3 %
Equity ratio	43.7%	48.8%		-510 bps
Employees (in thousands)	21.2	22.8		-7.3 %

15 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Segment overview (continuing operations)1) (unaudited)

Q1 FY21 (€m)	OS	AM	DI	CIE	OSRAM
Licht Group
Revenue	356	474	178	-169	840
Change % vs. PY reported	-0.7%	-1.1%	-17.9%		-3.8%
Change % vs. PY comparable	4.7%	1.4%	-12.6%		-0.1%
EBITDA	111	58	-6	-31	131
EBITDA margin	31.1%	12.3%	-3.5%		15.6%
Special items EBITDA	-2	-6	-5	-17	-31
therein transformations costs	-2	-6	-4	-1	-13
EBITDA before special items	113	65	-1	-14	162
EBITDA margin before special items	31.7%	13.6%	-0.8%		19.3%
Assets1)	1,167	638	295	1,852	3,953
Free cash flow	44	8	1	-3	50
Additions to intangible assets and property, plant
and equipment	12	7	1	0	21
Amortization2)	2	1	3	1	6
Depreciation PP&E	51	8	5	0	63
Depreciation right of use assets	4	3	2	2	11

1. Net assets on segment level; total assets on group level; CIE includes reconciling items
2. Without goodwill impairment DI portfolio

16 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Consolidated statement of income (continuing operations)1) (unaudited)

		Three months ended	Three months ended
		Dec 31	Dec 31
in (€m)	2020	2019
Revenue	840	873
Cost of goods sold and services rendered	-595	-617
Gross profit	245	256
Research and development expenses	-82	-88
Marketing, selling and general administrative expenses	-144	-163
Other operating income	34	7
Other operating expense	-22	-1
Income (loss) from investments accounted for using the equity method, net	0	-1
Interest income	1	1
Interest expense	-13	-5
Other financial income (expense), net	-3	-3
Income (loss) before income taxes OSRAM (continuing operations)	15	1
Income taxes	-9	0
Income (loss) OSRAM (continuing operations)	6	1
Income (loss) from discontinued operation, net of tax	0	-4
Net income (loss)	7	-2
Attributable to:
Non-controlling interests	-9	-10
Shareholders of OSRAM Licht AG	16	7
Basic earnings per share (in €)	0.17	0.08
Diluted earning per share (in €)	0.17	0.08
Basic earnings per share (in €) OSRAM (continuing operations)	0.16	0.12
Diluted earning per share (in €) OSRAM (continuing operations)	0.16	0.12
17	OSRAM Licht AG
	Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Consolidated Statement of Comprehensive Income (continuing operations) (unaudited)

	Three months ended	Three months ended
	Dec 31	Dec 31
in (€m)	2020	2019
Net income (loss)	7	-2
Remeasurements of defined benefit plans	10	24
thereof: income tax	1	-9
Measurements of equity instruments at fair value	0	0
thereof: income tax	0	0
Items that will not be reclassified to profit or loss	10	24
Currency translation differences	-28	-22
Derivative financial instruments	6	5
thereof: income tax	-3	-2
Items that may be reclassified subsequently to profit or loss	-23	-18
Other comprehensive income (loss), net of tax	-12	6
Total comprehensive income (loss)	-5	4
Attributable to:
Non-controlling interests	-10	-10
Shareholders of OSRAM Licht AG	4	14

18 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Consolidated statement of financial position (continuing operations) (unaudited)

	As of	As of
	Dec 31	Sep 30
in (€m)	2020	2020
Assets
Current Assets
Cash and cash equivalents	273	321
Trade receivables	465	440
Other current financial assets	62	32
Contract assets	5	5
Inventories	656	641
Income tax receivables	14	21
Other current assets	86	93
Assets held for sale	138	117
Total current assets	1,699	1,669
Goodwill	150	176
Other intangible assets	113	120
Property, plant and equipment	1,178	1,224
Right of use assets	180	190
Investments accounted for using the equity method	52	51
Other financial assets	29	29
Deferred tax assets	489	486
Other assets	63	43
Total assets	3,953	3,987

1) As of December 10, 2020 OSRAM held 2,664,388 treasury shares (September 30, 2020: 2,664,388 shares).

	As of	As of
	Dec 31	Sep 30
in (€m)	2020	2020
Liabilities and equity
Current liabilities
Short-term debt and current maturities of long-term debt	643	714
Trade payables	407	372
Other current financial liabilities	100	109
Current contract liabilities	8	9
Current provisions	70	56
Income tax payables	91	85
Other current liabilities	343	352
Liabilities associated with assets held for sale	127	111
Total current liabilities	1,789	1,808
Long-term debt	138	148
Pension plans and similar commitments	145	144
Deferred tax liabilities	15	16
Provisions	33	33
Other financial liabilities	0	0
Contract liabilities	1	1
Other liabilities	105	100
Total liabilities	2,227	2,250
Equity
Common stock, no par value	97	97
Additional paid-in capital	1,657	1,662
Retained earnings	114	89
Other components of equity	-29	-7
Treasury shares, at cost 1)	-94	-94
Total equity attributable to shareholders of OSRAM Licht AG	1,745	1,747
Non-controlling interests	-20	-10
Total equity	1,726	1,737
Total liabilities and equity	3,953	3,987

19 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Consolidated statement of cash flows (continuing operations)	1/2
(unaudited)
	Three months ended	Three months ended
	Dec 31	Dec 31
in (€m)
2020	2019
Cash flows from operating activities
Net income (loss)	7	-2

Adjustments to reconcile net income (loss) to cash provided

Income (loss) from discontinued operation, net of tax Amortization, depreciation, and impairments

Income taxes

Interest (income) expense, net

(Gains) losses on sales and disposals of businesses, intangible assets, and property, plant and equipment, 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

Interest received

0	4
100	87
9	0
12	5
-1	0
0	3
-4	1
-25	-32
-54	14
-21	8
52	-29
14	1
-15	-21
-2	3
-3	-7
1	0

Net cash provided by (used in) operating activities - OSRAM (continuing operations)	71	35
Net cash provided by (used in) operating activities discontinued operation	-	-
Net cash provided by (used in) - OSRAM Licht Group (total)	71	35

20 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021

Consolidated statement of cash flows (continuing operations)	2/2
(unaudited)
	Three months ended	Three months ended
	Dec 31	Dec 31
in (€m)	2020	2019
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment	-21	-28
Acquisitions, net of cash and cash equivalents acquired	-5	-4
Purchases of investments	-2	-2
Proceeds and payments from sales of investments, intangible assets, and property, plant and equipment	1	2
Proceeds and payments from the sale of business activities, net cash disposed of	-	-10
Net cash provided by (used in) investing activities - OSRAM (continuing operations)	-27	-42
Net cash provided by (used in) investing activities discontinued operation	-	-
Net cash provided by (used in) investing activities - OSRAM Licht Group (total)	-27	-42
Cash flows from financing activities
Proceeds from capital increases at subsidiaries with minority interests	4	-
Repayment of long-term debt	-	-8
Change in short-term debt and other financing activities	-13	-106
Interest paid and upfront fees for the shareholder loan from ams	-3	-4
Dividends paid to non-controlling interests	-	-3
Financing with the ams group	-75	-
Net cash provided by (used in) financing activities - OSRAM (continuing operations)	-87	-121
Net cash provided by (used in) financing activities discontinued operation	-	-
Net cash provided by (used in) financing activities - OSRAM Licht Group (total)	-87	-121
Effect of exchange rates on cash and cash equivalents	-2	-1
Net increase (decrease) in cash and cash equivalents	-45	-128
Cash and cash equivalents at beginning of period	330	327
Cash and cash equivalents at the end of period	285	198
Less: Cash and cash equivalents of discontinued operation and assets held for sale at end of the reporting period	12	-
Cash and cash equivalents at end of period (consolidated statement of financial position)	273	198

21 OSRAM Licht AG

Q1 FY21 Earnings Release (unaudited figures) | February 09, 2021