ams and Osram unveils growth strategy to become a leader in optical solutions

ams and Osram unveils growth strategy to become a leader in optical solutions

【Introduction】Premstätten, Austria and Munich, Germany, April 12, 2022 – ams and Osram (SIX: AMS), the world’s leading optical solutions provider, introduced itself to investors at its Capital Markets Day event Strategy, business outlook, development path and future opportunities to become a leader in optical solutions. Since taking control of Osram in March 2021, ams and Osram have been steadily on the road to a successful integration.

ams and Osram unveils growth strategy to become a leader in optical solutions

● ams Osram demonstrated a development strategy aimed at becoming a leader in optical solutions and key drivers for creating long-term sustainable value. After one year in the management of Osram, ams Osram has established clear financial goals;

● ams Osram meets megatrends with a strong technology portfolio, delivering strong growth in diversified revenue metrics;

● For the combined business, ams Osram adopts a targeted financial model to support strategic objectives with potential value drivers;

● Set higher medium-term financial targets for a fully adjusted product portfolio of 4.9 ± 300 million euros in revenue and an adjusted EBIT margin growth of 15% or more by 2024. Additional investment of up to approximately EUR 800 million in new 8-inch LED front-end factory to support advanced LED and microLED technologies; announced carbon neutrality target by 2030.

Alexander Everke, CEO of ams Osram, said: “We are very pleased to be able to present our current achievements and share our vision for the future of the Group to investors and stakeholders on Capital Markets Day today. A strategy based on core technologies is the general trend that will drive the market demand for optical solutions, and ams Osram is an active pioneer and leader in this market. We have a unique, successful and professional optical solutions portfolio, Providing innovative solutions to customers. Our deep exposure to end markets such as automotive, consumer, industrial and medical, and driving diversified revenue growth in the semiconductor business are a strong pillar for the company to achieve future goals. All these factors are our sustainable success. , become the cornerstone of a socially responsible enterprise.”

The Capital Markets Day was organized by the entire ams Osram Board of Directors and core members of the Group Management Team. During the event, ams Osram provided investors and other stakeholders with a detailed overview of the company’s development history, its prospects after business expansion and key drivers. The highlights of this event are as follows:

● Introduce the business development and integration of the Group since March 2021;

● Confirmation of the Group’s target financial model to provide additional support for key drivers to achieve long-term targets of double-digit average annual revenue growth and adjusted EBIT margin growth of over 20%;

● Introducing a mid-term target for 2024 of 4.9 ± 300 million euros in revenue and 15% or more adjusted EBIT margin growth, based on a realigned product mix;

● detailing the key drivers of top-line growth in the Group’s product portfolio, including businesses in line with mainstream market trends such as digitalization, smart living, energy efficiency and sustainability;

● Demonstrate the Group’s strong technological position in key growth applications, including advanced dynamic automotive lighting, microLED Display technology, AR/VR optical solutions, automotive sensing and LED horticultural lighting;

● Demonstrate the Group’s future industrial development footprint: In addition to implementing a series of integration measures, ams Osram will build a new 8-inch LED front-end factory next to the LED factory in Kulim, Malaysia, to effectively increase production capacity and realize advanced LED technology and expected growth of MicroLED. Investments in the new plant are expected to amount to around 800 million euros over the next 18-24 months.

Since March 2021, ams Osram has made significant progress and achieved a series of important milestones, fulfilling its commitment to be a leader in optical solutions. The combined ams Osram is committed to a globally integrated strategy driven by a shared vision of all employees. As a result, over the past 12 months, ams Osram’s performance has remained solid despite end-market and supply chain headwinds. At the same time, ams Osram is progressing smoothly in divesting non-core businesses. It is expected to complete the sale of most of the original Osram digital lighting business by the end of 2022, as well as the divestiture of the original Osram Continental joint venture. As part of the definition of the Group’s ESG strategy, ams Osram has announced its first key targets: achieving carbon neutrality by 2030 and 25% of women in leadership positions by 2026.

This Capital Markets Day will prove that the combined ams and Osram can seize the growth opportunities and achieve the effect of 1+1>2. After the merger, ams Osram has enhanced synergies and energy savings, stronger overall strength and improved initial valuation. Taken together, and other key factors discussed in the Capital Markets Day, ams Osram will be a leader in optical solutions committed to creating significant long-term value.

About ams Osram

The ams Osram Group (SIX: AMS) is a global leader in optical solutions. We bring intelligence to light, infuse passion into innovation, and enrich people’s lives. That’s what “sensing is life” is all about.

With a history of more than 110 years, we are guided by the imagination of future technology, combined with deep engineering expertise and strong global industrial production capacity, and have been deeply involved in the field of sensing and optical technology for a long time, and continue to promote innovation. In the fields of consumer electronics, automotive, medical health and industrial manufacturing, we are committed to providing customers with competitive solutions, and in terms of health, safety and convenience, we are committed to improving the quality of life and promoting green environmental protection.

With approximately 24,000 employees worldwide, we focus on innovations in sensing, lighting and visualization to make journeys safer, medical diagnosis more accurate and communication easier. We are committed to developing ground-breaking applied innovations with more than 15,000 patents granted and applied for.

Group headquarters are located in Premstaetten/Graz, Austria, with joint headquarters in Munich, Germany. In 2021, the group’s total revenue will exceed US$5 billion. ams-OSRAM AG is listed on the SIX Swiss Exchange (ISIN: AT0000A18XM4).

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