EQS-Adhoc: ams-OSRAM AG: ams OSRAM continues healthy financial performance with first quarter revenues and operating profitability (adj.) above midpoint of expectation range despite demanding supply chain …

EQS-Ad-hoc: ams-OSRAM AG / Key word(s): Quarter Results/Quarterly /
Interim Statement
ams-OSRAM AG: ams OSRAM continues healthy financial performance with first
quarter revenues and operating profitability (adj.) above midpoint of
expectation range despite demanding supply chain …

03-May-2022 / 07:00 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS – a service of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss
Exchange
——————————

ams OSRAM continues healthy financial performance with first quarter
revenues and operating profitability (adj.) above midpoint of expectation
range despite demanding supply chain and market environment

• First quarter revenues of EUR 1.25 billion and adjusted EBIT margin of
10.1%, above the midpoint of the guidance range
• Continuing to deliver portfolio re-alignment with announced sale of
automotive lighting systems business established after dissolution of
OSRAM Continental joint venture and closing of disposal of
horticultural lighting systems business Fluence, on track for further
planned disposals
• Recent Capital Markets Day confirmed revenue growth trajectory based
on a multi-vector, differentiated application portfolio alongside a
clear path for significant margin expansion
• Second quarter expected revenues of EUR 1,150-1,250 million (EUR
1,180-1,280 million on a comparable portfolio basis) and expected
adjusted EBIT margin of 8-11% reflect constrained supply chain
environment and deconsolidation effects

Premstaetten, Austria and Munich, Germany (3 May 2022) — ams OSRAM (SIX:
AMS), a global leader in optical solutions, reports positive first quarter
group financial results. „Our business continued to perform well in the
first quarter where we delivered results above the midpoint of our
guidance range. As supply chain and end market imbalances remain a key
influence, our automotive and industrial & medical businesses showed a
very positive performance and our consumer business provided a strong
contribution fully matching expectations“, said Alexander Everke, CEO of
ams OSRAM, commenting on the first quarter.

„Our programs for integration and synergy creation are fully on track and
I am pleased to see the positive momentum they are creating for our
business. As part of these plans, we continue to move ahead in re-aligning
our business portfolio. In the quarter we already announced the disposal
of the automotive lighting systems business AMLS which was established
following the dissolution of the OSRAM Continental joint venture in the
fourth quarter 2021. In addition, we just closed the disposal of the
horticulture lighting systems business Fluence as expected. We are now
focused on implementing the remaining portfolio re-alignments and
disposals as communicated,“ Everke added.

„Tightness in chip supply and imbalances in multiple supply chains remain
at the center of developments in our markets and are not restricted to the
automotive market. In light of this situation our business demonstrated a
robust operational performance in the quarter. We do not expect these
imbalances to be resolved quickly, while recent additional end market
volatility and global market uncertainties are adding to a demanding
environment going forward.

At our recent Capital Markets Day, we laid out a strong model for mid- and
long-term profitable growth which we expect to deliver through a range of
attractive growth drivers across end markets. We are keen to move forward
on these opportunities through focused investments into our technology
portfolio for visualization, illumination, and sensing as well as into
industry-leading manufacturing capabilities. This innovation platform will
enable us to drive profitability and differentiation to create long-term
value in optical solutions,“ Everke concluded.

Quarterly financial summary

EUR millions Q1 2022 Q4 2021* QoQ Q1 2021* YoY
(except per share data)
Revenues 1,246 1,229 1.4% 1,282 -3%
Gross margin adj.^1) 33.1% 33.4% -30 bps 35.0% -190 bps
Operating income adj.^1) 126 118 7% 143 -12%
Operating margin adj.^1) 10.1% 9.6% +50 bps 11.1% -100 bps
Net result adj.^1) 102 119 -14% 74 38%
Diluted EPS adj.^1) 0.39 0.45   0.31  
Diluted EPS adj. (in CHF)^1)2) 0.40 0.49   0.34  
Operating Cash Flow 147 179 -18% 206 -29%
Net debt 1,853 1,795 3% 1,674 11%

^1) Excluding M&A-related, transformation and share-based compensation
costs as well as results from investments in associates and sale of a
business
2) Earnings per share in CHF were converted using the average currency
exchange rate for the respective periods
* 2021 financials reflect reclassification within functional cost
categories
Note: EPS denotes earnings per share

First quarter group revenues were EUR 1,246 million, up 1% sequentially
compared to the fourth quarter 2021 and down 3% compared to same quarter
2021 (first quarter 2022 USD 1,394 million). Adjusted^[1][1] group gross
margin for the first quarter 2022 was 33%, unchanged from the fourth
quarter and down from 35% for the same quarter 2021. The first quarter
adjusted^1 group result from operations (EBIT) was EUR 126 million or 10%
of revenues compared to EUR 118 million or 10% for the fourth quarter and
EUR 143 million or 11% of revenues for the same period 2021 (unadjusted:
EUR 40 million or 3% of revenues for the first quarter).

First quarter adjusted^1 group net result was EUR 102 million compared to
EUR 119 million for the fourth quarter and EUR 74 million for the same
quarter 2021 (unadjusted: EUR 15 million for the first quarter). First
quarter adjusted^1 diluted earnings per share^[2][2] were EUR 0.39 or CHF
0.40 (EUR 0.06 or CHF 0.06 unadjusted). First quarter group operating cash
flow was EUR 147 million while group free cash flow reached EUR 34
million. Group net debt was EUR 1,853 million on 31 March 2022,
translating into a group leverage of 2.0x net debt/adjusted^1 EBITDA. Cash
and cash equivalents stood at EUR 1,235 million on 31 March 2022.

The group’s Semiconductors segment contributed strongly to group
performance again, generating 63% of revenues in the first quarter of 2022
at a healthy adjusted operating margin of 13%. The segment’s automotive
market area recorded very positive results driven by available backlog in
a market environment which remains characterized by end-to-end supply
imbalances and reduced production volumes. The consumer market area showed
a robust performance that was fully in line with expectations and
reflected seasonal effects together with sequentially lower global
smartphone shipments and a volatile demand environment. This performance
continued to be driven by optical sensing solutions that power a range of
applications across multiple device types and consumer market segments.
The industrial and medical market area contributed very attractively to
group results given positive demand momentum for advanced LED lighting in
established and emerging markets and a supportive contribution from
industrial and medical imaging.

As presented at the recent Capital Markets Day, ams OSRAM follows a clear
strategy for growth through optical innovations. The group’s R&D
investments and product developments focus on growth opportunities
including consumer and automotive light sensing, 3D technologies for
world-facing camera applications, AR/VR applications, display management,
horticulture and UV-C LED solutions, advanced automotive LED front
lighting, and LED technology to create micro-LED displays.

The Lamps & Systems (L&S) segment showed an overall positive performance
in the first quarter contributing 37% of revenues. The L&S automotive
business including legacy traditional lighting continued to positively
track expectations as results reflect seasonal effects and good overall
demand. The other areas of the L&S business provided solid contributions
from their diversified range of industrial, building-related and medical
applications in a generally supportive demand environment.

For the second quarter 2022, ams OSRAM expects group revenues of EUR
1,150-1,250 million (EUR 1,180-1,280 million on a comparable portfolio
basis) and an expected adjusted operating (EBIT) margin of 8-11%, based on
currently available information and exchange rates. This includes a
revenue deconsolidation effect for the second quarter reflecting the
closing of the disposal of the horticulture lighting systems business
Fluence which reduces expected second quarter revenues by approx. EUR 30
million on a comparable portfolio basis. Expectations for the second
quarter mirror the continued demanding market environment in the
automotive industry where constrained supply chain situations and ongoing
volatility continue to impact production volumes across regions. The
expectations for the second quarter also reflect the current volatile
demand development in the consumer market, a decreased year-on-year
contribution from the consumer market in line with previous comments, and
deconsolidation effects when compared to the previous year.

Additional selected financial information for the first quarter 2022 is
available on the company [3]website. The first quarter 2022 investor
presentation is also available on the company [4]website. ams OSRAM will
hold a conference call on the first quarter results on Tuesday, 3 May 2022
at 10am CEST. The conference call will be available via webcast at:
[5] https://bit.ly/3EpGGoO

###

About ams OSRAM

The ams OSRAM Group (SIX: AMS) is a global leader in optical solutions. By
adding intelligence to light and passion to innovation, we enrich people’s
lives. This is what we mean by Sensing is Life.

With over 110 years of combined history, our core is defined by
imagination, deep engineering expertise and the ability to provide global
industrial capacity in sensor and light technologies. We create exciting
innovations that enable our customers in the consumer, automotive,
healthcare and industrial sectors maintain their competitive edge and
drive innovation that meaningfully improves the quality of life in terms
of health, safety and convenience, while reducing impact on the
environment.

Our around 24,000 employees worldwide focus on innovation across sensing,
illumination and visualization to make journeys safer, medical diagnosis
more accurate and daily moments in communication a richer experience. Our
work creates technology for breakthrough applications, which is reflected
in over 15,000 patents granted and applied. Headquartered in
Premstaetten/Graz (Austria) with a co-headquarters in Munich (Germany),
the group achieved over EUR 5 billion revenues in 2021 and is listed as
ams-OSRAM AG on the SIX Swiss Exchange (ISIN: AT0000A18XM4).
Find out more about us on [6] https://ams-osram.com

ams is a registered trademark of ams-OSRAM AG. In addition many of our
products and services are registered or filed trademarks of ams OSRAM
Group. All other company or product names mentioned herein may be
trademarks or registered trademarks of their respective owners.

Join ams OSRAM social media channels: [7]>Twitter [8]>LinkedIn
[9]>Facebook [10]>YouTube

^[1] Excluding M&A-related, transformation and share-based compensation
costs as well as results from investments in associates and sale of a
business

^[2] Based on 261,246,563 basic / 261,463,122 diluted shares

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03-May-2022 CET/CEST News transmitted by EQS Group AG. www.eqs.com

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Language: English
Company: ams-OSRAM AG
Tobelbader Straße 30
8141 Premstaetten
Austria
Phone: +43 3136 500-0
E-mail: investor@ams-osram.com
Internet: https://ams-osram.com/
ISIN: AT0000A18XM4
WKN: A118Z8
Listed: Regulated Unofficial Market in Dusseldorf, Frankfurt, Munich,
Stuttgart, Tradegate Exchange; BX, SIX, Vienna Stock Exchange
(Third Market (MTF))
EQS News ID: 1341561

 
End of Announcement EQS News Service

1341561  03-May-2022 CET/CEST

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