Performance Programs gain speed - market environment remains - PowerPoint PPT Presentation

www.osram.com Performance Programs gain speed - market environment remains challenging Q3 FY19 Earnings Release (unaudited figures) OSRAM Licht AG | July 31, 2019 Light is OSRAM

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Performance programs gain speed Statement from the CEO Overall, our third quarter developed in line with expectations. We are still facing challenging environment in our core markets and as of today, we see no signs of recovery. Global economic indicators continue to slow down. The automotive sector in particular remains on a sharp decline. At the same time, the counter measures, that we put in place earlier in the year, are starting to take effect. Our performance programs gain speed and show first results – especially in our Opto segment. This gives us some confidence for the rest of the year – despite the fact Third quarter summary that we are not seeing any significant short-term recovery of the markets. • Revenue of € 850m We therefore confirm our full year targets for fiscal year 2019 adjusted in • Adjusted EBITDA margin of 6.8% • March. Performance measures taking effect 3 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Initiated performance measures show results - Q3 FY19 remains impacted by continuously challenging market and economy conditions Revenue ( € m) / comparable growth Adj. EBITDA ( € m) / margin -14.9% -80 936 138 850 58 14.7% 6.8% Q3/18 Q3/19 Q3/18 Q3/19 Free cash flow ( € m) Comments +39  Continuously weak market environment in China 91  No solution in sight for global trade conflicts 52  Initiated Performance measures take effect Q3/18 Q3/19 4 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Indicators of the current economic environment continue to slow down - industry climate shows signs of relief IFO World economic climate Global Manufacturing PMI Ifo economic climate index, Calendar year based JP Morgan Purchasing Manager Index, Calendar year based 55 30 25 54 20 15 53 10 52 5 0 51 -5 50 -10 -15 49 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Jan’18 Jun’18 Jan’19 Jun’19 Source: ifo World Economic Survey, May 2019 Source: J.P.Morgan and IHS Markit in association with ISM and IFPSM, July 2019 5 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Global automotive markets now declining in all regions – China is affected most severe IHS – Light vehicle production IHS – Global light vehicle production (YoY comparison) (forecast yearly production number worldwide, FY based) 6% 100 4% 99 4% 3% Y/Y % 98 2% 97 million 2% NAFTA 0% 96 (-0.3%) 95 1% -2% 94 Europe 0% -4% 93 (-3.6%) 91.7 92 -6% 91.0 -1% 91 -8% 90 -2% -10% 89 -3% 88 China -12% -4.1% 87 (-12.0%) -4% -4.8% -14% 86 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 85 -5% 18 18 18 18 18 18 19 19 19 19 19 19 19 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May 19 Jun-19 Jul- 19 Source: IHS monthly data, Juli 2019 6 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Key OSRAM customers (automotive Tier 1) continue to fall short of their agreed-on purchasing volumes on a YTD view 2019 Deviation between VPA 1) to % growth LED automotive: Change Act 2018 vs contract 2019 (01.01.19-31.12.19) June vs. actual orders YTD (CY) vs. March Customer 1 +22% -40% +1% Customer 2 +9% -20% -6% Customer 3 -13% -7% -10% -4% Customer 4 -2% -5% +1% Customer 5 -6% -45% Customer 6 +16% +28% -4% Customer 7 -4% +0% -32% Customer 8 -4% +6% -8% Customer 9 0% +15% -24% • General weakness in the automotive industry continues 1) VPA: Volume Purchase Agreement 7 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Significant progress for OS restructuring and for Siteco sale Status Q3/19 Level of completion Define Detail Implement • Divest LS North America business OSRAM • Divest LS European business (Siteco) • Execute performance programs: Overhead, Footprint • Permanent Portfolio Mgmt. towards Photonics Champion • Drive competitiveness in core business Opto • Accelerate growth in new application fields e.g. sensing and µLED Semiconductors • Extend value chain towards Component+ • Fit for the Future OS • Execute growth plan in OSRAM CONTINENTAL Automotive • Stay #1 in light sources • Aftermarket growth with light sources and portfolio extension • Implement new organizational setup (DI) Digital • Transform lighting electronics into digital infrastructure provider • Ramp-up digital business in focus applications 8 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Management Board and Supervisory Board recommend the voluntary takeover offer from Bain & Carlyle Attractive offer price Investor agreement Full strategy support with comprehensive of 35 euros per share and investment in commitments to the in cash growth workforce and locations 9 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Summary Key Financial Performance Q3 FY19 • Market weakness in Automotive and General Lighting continued to drive Revenue ( € m) / comp. growth 0.7% revenue decline in all segments -14.9% • 936 Overall Osram business in China declined -24% y-o-y; yet improved 850 sequentially by 12% (vs. Q2 FY19) Q3/18 Q3/19 • Q3 FY19 adjusted EBITDA margin @ 6.8%; sharp decline vs. PY mainly Adj. EBITDA ( € m) / margin due to negative volume effects and lower fix cost absorption 14.7% • EBITDA Special Items in Q3 FY19 at € -16m; CIE Adj. EBITDA -18m 6.8% 138 • Gross savings generation from strategic performance programs gaining 58 traction: € 32m in the quarter; expect to exceed full year savings targets Q3/18 Q3/19 • Positive Free Cash Flow of € 91m driven by improved Working Capital and Free Cash Flow ( € m) 1) 91 lower CapEx spend 52 • Net income : € -35m from continuing operations; Q3/18 Q3/19 € -17m from discontinued operations 1) Defined as net cash provided by (used in) operating activities less capital expenditures. 10 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019

Revenue declines in all segments y-o-y; Sequential stabilization in OS and DI; AM sequentially lower in line with seasonality Revenue ( € m) / Comp. growth (%) OSRAM Group: Revenue bridge Q3 FY19 YoY OS Revenue Development -21.2% 936 1.9% 850 3.8% -14.9% -0.8% 443 350 361 361 Q3/18 Q1/19 Q2/19 Q3/19 AM Revenue Development Revenue FX Portfolio Comparable Revenue Q3/18 growth Q3/19 -12.5% -5.3% APAC decline largely impacted by China (-24%) 470 443 446 431 Q3/18 Q1/19 Q2/19 Q3/19 Comp. growth DI Revenue Development -14.7% 30.2% EMEA 33.4% -12.5% -18.2% APAC -9.1% Americas +1.7% 228 227 222 202 36.5% Q3/18 Q1/19 Q2/19 Q3/19 11 OSRAM Licht AG Q3 FY19 Earnings Release (unaudited figures) | July 31, 2019