EQS-Adhoc: ams-OSRAM AG: ams OSRAM delivers overall solid full year and fourth quarter results in line with fourth quarter guidance and reflecting difficult market environment; sees muted demand situation …
EQS-Ad-hoc: ams-OSRAM AG / Key word(s): Quarter Results/Annual Results
ams-OSRAM AG: ams OSRAM delivers overall solid full year and fourth
quarter results in line with fourth quarter guidance and reflecting
difficult market environment; sees muted demand situation …
07-Feb-2023 / 07:00 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS News – 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
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ams OSRAM delivers overall solid full year and fourth quarter results in
line with fourth quarter guidance and reflecting difficult market
environment; sees muted demand situation in key markets in first quarter
• Fourth quarter revenues of EUR 1,177 million and adj. EBIT margin of
7.3% show results fully in line with guidance range; strong operating
cash flow for fourth quarter and full year
• Last planned disposal signed and Traxon disposal closed in fourth
quarter, two remaining closings expected in first half of 2023 marking
full completion of planned disposals
• Significant deep customer engagement confirms strategic leadership
position in smallest structure size microLED technology
• Providing further program information based on latest available
information and its assessment, ams OSRAM sees relevant revenues from
leading microLED technology starting in 2025
• Expected first quarter revenues of EUR 900-1,000 million and expected
adj. EBIT margin of 4-7% reflect ongoing market correction effects in
important markets, lower expected production and shipment volumes,
adverse exchange rate and deconsolidation effects
• Expecting to achieve mid-term targets within lower half of target
ranges for revenues and adj. EBIT margin given expected business mix
with current macro-economic trends and inflation pressures further
impacting mid-term volumes
• Alexander Everke stepping down as CEO of ams OSRAM as of 31 March
2023, successor Aldo Kamper assumes CEO position on 1 April 2023
Premstaetten, Austria, and Munich, Germany (7 February 2023) — ams OSRAM
(SIX: AMS), a global leader in optical solutions, reports solid full year
and fourth quarter 2022 financial results. “Our business delivered full
year and fourth quarter results that reflect a solid overall performance
of our business in an increasingly difficult sector and macro-economic
environment over the course of the second half. We recorded full year
group revenues of EUR 4,819 million together with fourth quarter revenues
and adj. operating margin that were fully in line with our guidance range.
Our full year results reflect an overall good performance of our
automotive activities and a robust contribution by our industrial and
medical areas together with a more mixed performance of our consumer
markets, all against the backdrop of significant sector impacts from last
year’s geopolitical and macro-economic developments translating into,
among other effects, substantial inflationary pressures. In the ending
quarter, our automotive business performed well in-line with expectations
including seasonal effects while inventory adjustments continued. Our
consumer, industrial and medical activities showed an overall muted
performance in the quarter driven by the negative macro-economic momentum
and impacts on large customer demand from Covid-19 in China”, commented
Alexander Everke, CEO of ams OSRAM.
“2022 has been a demanding year for the global semiconductor sector and
the negative macro-economic trends continue to shape the situation in our
end markets as we enter 2023. We have been able to deliver overall solid
results for 2022 in light of imbalances in automotive supply chains, a
muted performance of consumer markets, volatile developments in the China
region, and significant inflationary pressures driven by the Ukraine war.
We have also signed or completed all planned disposals of businesses
outside of our strategic focus, even as the market situation has become
more demanding. We are confident to fully achieve our expected level of
total proceeds including around EUR 100 million currently remaining to be
received. All other integration programs also advanced according to plan
over the course of last year. These successful steps testify to our
progress in realizing the integration of OSRAM and the expected synergies
and savings, all in line with our original commitments,” Everke noted.
“We are currently observing characteristics of a market correction and
expect the prevailing macro-economic and sector situation to continue
during the first half of 2023. Similar to other industry participants and
assuming an expected recovery of demand exiting the first half,
particularly in China and Europe, we currently expect an improved business
environment in the second half of 2023 compared to the first half, based
on current exchange rates.
Despite the demanding business environment we see near-term, we are not
changing our focus on innovation, technological leadership and high
performance solutions. We continue to invest significantly in R&D in the
current year for next generation technologies in illumination,
visualization and sensing. We also continue our focused investments into
production infrastructure to support our leading position and growth for
the long-term, including our industry-first 8” LED manufacturing facility.
Working with major OEMs worldwide, we will continue to enable attractive
sizeable growth markets for optical solutions”, Everke added.
As communicated, Alexander Everke will step down as CEO of ams OSRAM as of
31 March 2023 after seven years at the helm of the company. Aldo Kamper
will become CEO of ams OSRAM on 1 April 2023. Aldo Kamper has been CEO of
Leoni AG, Nuremberg, a global player in energy and data management
solutions for the automotive industry, since 2018. Prior, he spent over 15
years in different management positions with OSRAM, including general
manager of the business unit Opto Semiconductors, which recorded
significant growth under his leadership.
Quarterly financial summary
EUR millions Q4 2022 Q3 2022 QoQ Q4 2021* YoY
(except per share data)
Revenues 1,177 1,213 -3% 1,229 -4%
Gross margin adj.^1) 28.5% 28.7% -20 bps 33.4% -490 bps
Operating income adj.^1) 86 91 -6% 118 -27%
Operating margin adj.^1) 7.3% 7.5% -20 bps 9.6% -230 bps
Net result adj.^1) 29 47 -39% 119 -75%
Diluted EPS adj.^1) 0.11 0.18 0.45
Diluted EPS adj. (in CHF)^1)2) 0.11 0.18 0.48
Operating Cash Flow 201 151 33% 179 12%
Net debt 1,717 1,595 8% 1,795 -4%
^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
Full year 2022 group revenues were EUR 4,819 million, down 4% compared to
full year 2021, influenced by deconsolidation effects. Fourth quarter
group revenues were EUR 1,177 million, down 3% sequentially compared to
the third quarter 2022 and down 4% compared to same quarter 2021,
influenced by deconsolidation effects. Adjusted[1]^[1]^group gross margin
for the full year 2022 was 31%, down from 34% for full year 2021.
Adjusted^1 group gross margin for the fourth quarter 2022 was 29%,
unchanged from for the third quarter and down from 33% for the same
quarter 2021.
The adjusted^1 group result from operations (EBIT) for full year 2022 was
EUR 407 million or 8% of revenues compared to EUR 502 million or 10% of
revenues for full year 2021 (unadjusted: EUR -161 million or -3% of
revenues for 2022). The fourth quarter adjusted^1 group result from
operations (EBIT) was EUR 86 million or 7% of revenues compared to EUR 91
million or 8% for the third quarter and EUR 118 million or 10% of revenues
for the same period 2021 (unadjusted: EUR -90 million or -8% of revenues
for the fourth quarter).
Adjusted^1 group net result for full year 2022 was EUR 124 million
compared to EUR 272 million for full year 2021 (unadjusted: EUR -444
million for 2022). Fourth quarter adjusted^1 group net result was EUR 29
million compared to EUR 47 million for the third quarter and compared to
EUR 119 million for the same quarter 2021 (unadjusted: EUR -147 million
for the fourth quarter). Adjusted^1 diluted earnings per share[2][2] for
full year 2022 were EUR 0.47 or CHF 0.47 (EUR -1.70 or CHF -1.70
unadjusted). Fourth quarter adjusted^1 diluted earnings per share[3][3]
were EUR 0.11 or CHF 0.11 (EUR -0.56 or CHF -0.56 unadjusted). Reflecting
the current end market and macro-economic environment, ams OSRAM has
decided to suspend its cash dividend policy for fiscal year 2022 to focus
on strengthening its business position in 2023.
The group operating cash flow for full year 2022 was strong at EUR 599
million while group free cash flow reached EUR 62 million. Fourth quarter
group operating cash flow was EUR 201 million while group free cash flow
was EUR -32 million. Group net debt was EUR 1,717 million on
31 December 2022, translating into a group leverage of 2.0x net
debt/adjusted^1 EBITDA. Through the expected repayments of the matured USD
convertible bond and other financial liabilities more than EUR 400 million
of debt was repaid in 2022. Cash and cash equivalents reflected the
mentioned repayments and stood at EUR 1,087 million on 31 December 2022.
The Semiconductors segment provided the most relevant contribution to full
year results at 66% of full year revenues, together with a solid adjusted
operating (EBIT) margin of 10%. In the fourth quarter, the Semiconductors
segment similarly contributed 65% of revenues. The semiconductor
automotive business recorded solid full year results in light of the
demanding market situation last year. The automotive market environment in
2022 was characterized by vehicle production impacts and continued supply
chain volatility as well as notable inventory adjustments in automotive
supply chains in the second half of the year. In the fourth quarter, the
semiconductor automotive business performed well in-line with expectations
as the mentioned inventory adjustments continued in the quarter. The
semiconductor automotive business confirmed its position as global leader
in automotive LED lighting last year while managing through the
unsupportive market dynamics and expanding its design pipeline for the
future. High performance solutions and innovation for a full range of
exterior and interior applications form the basis of ams OSRAM’s success
and strong customer penetration in all key regions. As an example, ams
OSRAM added to its revenue pipeline for next generation highly-pixelated
LED front lighting last year. The company’s solution offers outstanding
performance as a fully integrated light source/driver system where around
25,000 addressable light points enable a new level of performance and
safety functions for several OEMs.
The segment’s consumer market area recorded full year results in-line with
expectations that reflected the less favorable market development in the
year. Although major segments of the smartphone and consumer market held
up well through the largest part of the year, a lack of demand recovery in
the China and Android markets from the late first half through the second
half of the year meaningfully impacted the consumer market last year. In
the fourth quarter, the consumer market area tracked muted expectations
due to additional negative volume effects in the smartphone market from
Covid-19-related manufacturing reductions in China. ams OSRAM underlined
its position as a market-leading supplier of optical solutions such as
display management and camera enhancement sensing to the leading
smartphone OEMs last year, including good market and design traction for
future devices.
Providing additional information related to its microLED development and
industrialization program and based on latest available information and
its assessment, ams OSRAM currently expects to start recording relevant
revenues from its leading microLED technology in 2025. The company’s
significant deep customer engagement in this area confirms ams OSRAM’s
strategic leadership position in smallest structure size microLED
technology as well as its frontrunner position for high volume
industrialization of this next generation technology.
The segment’s industrial and medical business showed an overall good
performance last year as industrial markets provided attractive demand
support for a large part of the year. Next to industrial LED solutions,
industrial imaging offered a healthy contribution which was augmented by a
good performance of the medical business. In the fourth quarter,
increasingly negative demand effects driven by the macro-economic
environment and regional dynamics in China impacted the segment’s
industrial business in certain areas including LED industrial and outdoor
lighting and horticulture solutions.
Aligning with the demanding market environment and current macro-economic
trends, ams OSRAM continues to actively focus its business and development
activities around its core competences and sizeable growth opportunities
in semiconductor light emission and sensing.
The Lamps & Systems (L&S) segment provided 34% of full year 2022 revenues
and showed a solid performance for the year, together with an adjusted
operating (EBIT) margin of 6%. The L&S automotive business including
legacy traditional lighting recorded an overall positive development last
year in light of the sector environment. In the fourth quarter, the L&S
automotive business performed well including supportive aftermarket
seasonal effects. The other areas of the L&S segment offered a solid
contribution to full year results from industrial, building-related and
medical applications which was helped by improved demand over most of the
year. In the fourth quarter, the other areas of the L&S segment tracked
general end market demand showing influences from global macro-economic
trends. Pro-forma fourth quarter segment revenues for the retained L&S
business after completion of all previously announced disposals, i.e.
deconsolidation of all closed and to-be-closed disposals, were 29% of same
basis group revenues or EUR 307 million.
Actively reflecting the market development in 2022, ams OSRAM focused
expenses even more strongly last year while continuing to invest
significantly into R&D and capital expenditures. Streamlined capital
expenditures in 2022 included upgrade investments and expenditures for
ams OSRAM’s industry-first 8” LED production facility which is under
construction at the company’s existing location in Malaysia. The
construction of the facility building progressed fully in line with plans
last year and is nearing completion despite a more demanding supply and
cost situation for large-scale building projects. Further significant
expenditures in-line with the company’s strategic plans will continue in
the current year as construction of the 8” LED front-end facility is
progressing towards production availability during 2024.
For the first quarter 2023, ams OSRAM is experiencing a weakened demand
environment in important markets as negative macro-economic trends
continue to create visible market correction effects. The overall demand
situation in the company’s automotive markets remains muted while
inventory adjustments are showing certain signs of stabilizing. At the
same time, the company’s consumer and industrial businesses are impacted
by prevailing lower levels of demand driven by weak smartphone volumes,
negative macro-economic influences, and Covid-19-related impacts in China,
in addition to negative consumer seasonality quarter-on-quarter. These
dynamics are expected to drive sequentially lower expected production and
shipment volumes for the first quarter, with additional negative
quarter-on-quarter effects from adverse exchange rate developments and a
revenue loss of around EUR 15m due to a fire-related capacity loss at a
supplier.
ams OSRAM therefore expects first quarter group revenues of EUR 900-1,000
million (EUR 910-1,010 million excluding quarter-on-quarter
disposal-related deconsolidation effects) and an adj. operating (EBIT)
margin of 4-7%. These expectations are based on currently available
information and exchange rates and reflect a revenue deconsolidation
effect for the first quarter from closing the disposal of the Traxon
lighting business which reduces expected first quarter revenues by around
EUR 10 million on a comparable portfolio basis. Furthermore, the
expectations include disposal-related deconsolidation effects on a
year-on-year basis with a first quarter revenue effect of around
EUR 80 million.
Similar to other industry participants and assuming an expected recovery
of demand exiting the first half, particularly in China and Europe, ams
OSRAM presently expects an improved business environment in the second
half of 2023 compared to the first half, based on current exchange rates.
Looking further out, ams OSRAM expects to achieve its mid-term financial
targets for 2024 within the lower half of the target ranges for revenues
and adj. EBIT margin. These expectations are based on the currently
expected business mix for the target period which reflects this year’s
macro-economic trends, current regional dynamics and inflation pressures.
These effects are seen to further underline the previously mentioned
negative impacts to mid-term volumes.
Additional selected financial information for the full year and fourth
quarter 2022 is available on the company [4]website. The full year and
fourth quarter 2022 investor presentation is also available on the company
[5]website. ams OSRAM will hold a conference call on the full year and
fourth quarter results on Tuesday, 7 February 2023 at 8.30am CET. The
conference call will be available via [6]webcast.
###
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 automotive, consumer,
industrial and healthcare 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 22,000 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 4.8 billion revenues in 2022 and is listed as
ams-OSRAM AG on the SIX Swiss Exchange (ISIN: AT0000A18XM4).
Find out more about us on [7] 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: [8]>Twitter [9]>LinkedIn
[10]>Facebook [11]>YouTube
[12]^[1] Excluding M&A-related, transformation and share-based
compensation costs as well as results from investments in associates and
sale of a business
[13]^[2]^Based on 261,266,718 basic / 261,266,718 diluted shares in FY
2022
[14]^[3]^Based on 261,327,262 basic / 261,327,262 diluted shares in Q4
2022
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07-Feb-2023 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
(Vienna MTF)
EQS News ID: 1553041
End of Announcement EQS News Service
1553041 07-Feb-2023 CET/CEST
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