Ams OSRAM : Strategy update + second quarter 2023 results

Sensing is life

Update on strategy & Second quarter results 2023

Aldo Kamper, CEO

Rainer Irle, CFO

Dr Juergen Rebel, SVP Investor Relations

July 2023

Focus on profitability and on monetizing innovation, benefitting from structural growth and our strong position in our key markets

Strategy & business outlook reassessed by new management team

Key challenges of previous business model

Adjusted business model

• Strong focus on disruptive, custom technologies for high volume opportunities in the Consumer device arena is risky when it comes to industrialization, execution and market adoption
• 'Home-made'execution issues, partly due to unclear ownership in current matrix organization

• Focus semiconductor portfolio on differentiated, intelligent sensors and emitter components
• Expand leading positions in relevant Automotive, Industrial, Medical markets with strengthened investments into structural growth opportunities
• Exit non-core semiconductor businesses with revenue run-rate of EUR 300 - 400 million

• Uptake of new markets or adoption of new, disruptive technologies have not always happened as quickly as planned
• De-prioritizationof some structural growth opportunities in sticky core markets such as Automotive, Industrial and Medical
• High sensitivity to macro-economic shocks such as pandemic and geopolitical crises

• Continue to pursue specific opportunities in Consumer markets where we sustainably differentiate
• Invest selectively in disruptive innovation such as microLED technology
• 'Re-establishthe Base' program adjusting semiconductor portfolio, company over-head, infrastructure and organization to new adjusted business model
• Streamline organizational set-up within Semiconductor segment by going from 3 to 2 Business Units with full end-to-end ownership & responsibility
• Portfolio streamlining and efficiency measures target savings of EUR 150 million by end-of-2025 and improving Cash Flow of the Group

Laying the foundation for 6 - 10% revenue CAGR from new base and ~15% adj. EBIT by 2026

2

Benefitting from structural growth and our strong position in Automotive, Industrial, Medical markets

Growing from the core of sensor & emitter components by increasingly adding intelligence to drive system performance

Semiconductor Addressable Markets* - application view -

2022 / CAGR**

Automotive

EUR 4 bn

13% CAGR

Industrial / Medical

EUR 9 bn 4% CAGR

Selected high-volume

Consumer applications

EUR 4 bn 9% CAGR

Core Semiconductor Portfolio

sensorsIntelligent	Sensors		Emitters
	Leading	Intelligentemitters
		positions
		Technology
		Leadership
		Innovation

&	&
	Mixed
	Signal ICs

Functional Applications

Sensing

Illumination

Visualization

3 ams OSRAM market model due to lack of suitable external market models

• 2022 - 2026 CAGR due to 2022 was last full year actuals, and cyclical dip in 2023

=> No dedicated market reports for ams OSRAM addressed application segments available

Growth in core portfolio is driven by secular megatrends

Digitalization

Smart Living (IoT)

Energy efficiency & sustainability

Automotive

Industrial

Medical

Consumer

•	Projected lighting
•	Smart surfaces
•	Advanced displays		•	Industrial automation				•	Camera enhancement
	(incl. microLED)		•	Robotics		• Medical imaging		•	Spectral & light sensing

•	Dynamic forward & signal		•	Home Automation
	lighting		•	Building Automation				•	AR/VR glasses sensing
•	In-cabin sensing		•	Outdoor lighting					& visualization
•	ADAS/AD (LIDAR)		•	Industrial lighting		• Personal & home care		•	Vital signs monitoring

							•	Enhanced display
		•	Horticulture					management
• Ambient lighting,		•	LED + laser projection				•	Next generation displays
UV-C* disinfection		•	UV-C* disinfection		• UV-C* disinfection			(microLED)

4 *Ultra Violet light at 200 ~ 280 nm wavelength

Addressed application segments grow faster than the overall market

Semiconductor focus markets - product category view vs addressed application segment view

Addressed

Semiconductor Markets*

- application view -

2022 / 4-yr CAGR**

Automotive

EUR 4 bn

13% CAGR

Industrial / Medical

EUR 9 bn 4% CAGR

Selected high-volume

Consumer applications

EUR 4 bn 9% CAGR

~€17bn

SAM***

of

€66bn

TAM

Optoelectronics &	LED market	Light sensors
Sensors	(incl. microLED)
	~74bn		~19bn		~3.1bn
~66bn
		~14bn		~2.2bn
(Source: WSTS)	(Source: Trendforce)	(Source: WSTS)
2022	2026	2022	2026	2022	2026

*ams OSRAM market model due to lack of suitable external market models

5 ** 2022 - 2026 CAGR due to 2022 was last full year actuals, and cyclical dip in 2023

• Serviceable Addressed Market => no dedicated, only partial market reports for ams OSRAM addressed application segments available