www.osram-licht.ag Q1 FY14 Management Presentation (preliminary figures) Solid start into FY14 Solid start into FY14 OSRAM Licht AG January 29, 2014
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 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. 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 2 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Group highlights Q1 FY14 Continued focus on profitable growth €1,326m revenue (+2% comp.) 9.3% Adj. EBITA-margin 1) (+140bps y-o-y) OSRAM Push continues to deliver on plan €105m benefits OSRAM drives further expansion of SSL share 33% SSL revenue share (vs. 26% in Q1 FY13) Outlook FY14 confirmed 1) Adjusted for “Special items” - "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods 3 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Segment highlights Q1 FY14 Specialty Lighting (SP) Growth in automotive outperforms global car production growth (light vehicles) since 16 quarters Introduced phaser module for laser-based projection in Display / Optics Opto Semiconductors (OS) Significant revenue growth and margin expansion y-o-y Construction of back-end facility Wuxi finalized, equipment roll-in in plan Construction of back-end facility Wuxi finalized, equipment roll-in in plan Start of 6 inch wafer production for red and yellow LEDs Lamps & Components (LC) Focus on margin quality: +220bps adj. EBITA margin improvement y-o-y Strong SSL growth with LED lamps, light engines and drivers Luminaires & Solutions (LS) Transformation of LS business in execution; restructuring of Services in North America timely ahead of plan More than 40% of our Luminaires business is already SSL based 4 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
OSRAM Push continues to deliver in plan OSRAM Push: Overall, comprehensive, sustainable performance improvement program OSRAM Push execution track record Structure Growth As of Q1 FY13 FY14 Progress Target Transformation costs ≤ 600 (€m) 498 10 85% (FY12 – 14) Plant reductions 7 0 11 64% (FY12 – 14) Headcount reduction Operation Culture (‘000) 6.6 3) 0.6 c.8.7 83% (FY12 – 14) EBITA Margin: OSRAM Push gross OSRAM Push gross >8% as average >8% as average 45% savings, cum. (€m) 433 105 c.1,200 over the cycle (FY13 – 15) Overview headcount development 2) OSRAM Push targets: 41.4 39.2 35.1 34.1 OSRAM � Cum. gross savings of €1.2bn by FY15 unchanged Group � Headcount reduction of 8,700 by FY14 unchanged 7.8 7.6 � Reduction of manufacturing sites unchanged 6.4 6.5 Segment � OPEX targets unchanged: OS � SG&A 1) : Reduce by ~8-10% by FY14 vs. FY12 FY11 FY12 FY13 Q1 FY14 � R&D: Keep absolute terms flat until FY14 vs. FY12 1) w/o logistics costs 3) Including impact of Tangerang (closure of production) Cum. Q4/ FY13 2) FY data as of Sep. 30th, Q1 as of Dec 31st, data in thousands Q1 FY14 5 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Equipment roll in at Wuxi plant 1972 : First assembly 2001: Groundbreaking 2012: Groundbreaking of 2 nd Back-end facility line for LEDs in of new LED Front-end Regensburg facility in Regensburg in Wuxi 1978: LED Back-end 2009: Setup of LED facility in Malaysia chip production site in Malaysia Project Major Milestones � New Back-end facility May 2012 Signing Investment contract with Wuxi New District � Packaging of visible & IR LED chips � R&D center for advanced packaging Aug 2012 Ground breaking ceremony � Sales and Marketing Application Centers Oct 2012 Start civil works � Improve access to the Asia and Chinese lighting market (after piling completed) � Take part in government programs � Create up to 2,150 jobs until 2017 Q1 FY14 Equipment roll in Q3 FY14 Expected start of production 6 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Top-line growth following strong finish in FY13 Group (€m) Revenue development Comments Q1 y-o-y � Comparable growth of 2%, held back by strong Quarterly revenue fiscal year-end finish 1,357 1,322 1,332 1,326 � Reported revenue held back by negative 1,278 currency translation effects � Transformation to SSL gains pace with +28% Revenue comparable growth of SSL revenue; total SSL 4 (in €m) share at 33%, up from 26% y-o-y 2 2 Comp. � APAC and EMEA: comp. growth mainly � APAC and EMEA: comp. growth mainly 0 0 growth (%) growth (%) (1) (1) driven by OS and SP � Americas: growth of most segments held Q1 Q2 Q3 Q4 Q1 FY13 FY13 FY13 FY13 FY14 back by declining services business Growth (%) (2) (1) (3) (3) (2) Revenue by Segment 1) Q1 Revenue by Region 1) Q1 Opto Semiconductors Americas nom. 17% 19% comp. 20% nom. (6%) 31% Lamps & Components EMEA 45% 45% comp. 0% nom. (7%) nom. 0% 26% comp. (2)% comp. 3% Specialty Lighting 23% 9% nom. 5% nom. (9)% APAC nom. (2%) Luminaires & Solutions comp. 9% comp. (6)% comp. 4% 1) Based on sum of Segments´ revenue, w/o considering corp. items & consolidation; nom. (nominal growth) / comp. (comparable growth, adjusted for FX and portfolio effects) 7 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Broad based profitability increase Group (€m) EBITA development Comments Q1 y-o-y � Adj. EBITA margin increased to 9.3% (+140 bps), Adj. EBITA 9.3 Margin 1) (%) 7.9 8.5 8.1 mainly supported by OSRAM Push and higher 7.5 7.4 EBITA 7.4 capacity utilization primarily at OS Margin (%) � Continued gross margin improvement in SSL forward 1.7 � Special items nearly level with Q1 FY13 and � Special items nearly level with Q1 FY13 and 0.1 0.1 impacted reported EBITA with €11m (1.8) 112 100 � Profit before tax up 26.1% y-o-y; strong net income at €68.1m on prior year level Special items 2) 22 2013 2014 Q1 Q2 Q3 Q4 FY Q1 1 EBITA EBITA reported 100 1 22 (24) 99 112 (€m) therein: -24 OSRAM Push transformation costs (36) (90) (64) (110) (300) (10) incl. personnel restructuring Q1 Q2 Q3 Q4 Q1 Total Special items (7) (98) (72) (133) (310) (11) FY13 FY13 FY13 FY13 FY14 1) Adjusted for “Special items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods 8 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
Lamps & Components: Strong profitability increase due to OSRAM Push benefits Revenue and EBITA margin development Comments Q1 y-o-y � Strong finish of FY13 results in a modest Adj. EBITA 6.7 decrease of revenue in Q1 FY14 7.3 Margin 1) (%) 6.3 4.5 4.8 EBITA � 2.8 Successful launch of LEDr Classic family 0.2 Margin (%) (1.3) led to sharp increase of SSL revenues (2.4) (4.8) � � Strong margin following weak profitability in Strong margin following weak profitability in 695 695 668 668 643 633 Q4 2013, on the back of OSRAM Push as 604 well as cost discipline; prior year quarter impacted by higher inventory write-downs Revenue � Higher transformation costs expected in (€m) coming quarters Special items 2) Comp. 2 growth (%) (1) Q1 FY13 Q1 FY14 (2) (2) (3) EBITA reported 2 40 Q1 Q2 Q3 Q4 Q1 FY13 FY13 FY13 FY13 FY14 therein: (29) (3) Growth (%) Total Special items (5) (7) (7) (8) (7) 1) Adjusted for “Special Items” 2) "Special items” in this context include certain items, e.g. (personnel) restructuring costs, that will also occur in future periods 3) Growth rates FY12 not available (due to change in segment structure as of FY13) 9 Management presentation Q1 FY14 (preliminary figures) | January 29, 2014
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