Osram masters corona year 2020 well

- Osram's Managing Board keeps operating margin stable in fiscal 2019/ 2020

- Comparable sales fell by 13.8 percent

- Free cash flow positive at twelve million euros

- Management confirms outlook for 2021
 

Osram has come through the Year of Corona well thanks to efficient management. "We acted early and consistently. We have protected both our employees and our production. This has paid off. Our free cash flow was positive in the last fiscal year at twelve million euros. We are particularly proud of this," said Olaf Berlien, CEO of OSRAM Licht AG. Despite a comparable revenue decline of almost 14 percent, the adjusted EBITDA margin remained stable at the previous year's level of over eight percent. The measures taken have all progressed as planned. The net result has been impacted by the fall in revenue due to the crisis, the planned costs for the transformation and for depreciation relating to the Osram Continental joint venture. The Managing Board confirms the forecast for the new fiscal year issued at the end of September. The current trend in incoming orders for semiconductor business is positive.

The semiconductor business of the Opto Semiconductors (OS) unit contributed in particular to this development. The streamlining of the product portfolio is having a positive impact here. Because of corona, revenue fell by around nine percent to 1.34 billion euros, whereas the adjusted EBITDA margin climbed to more than 20 percent.

Automotive business (AM) was more affected by the economic effects of the pandemic. Revenue fell by 14 percent to 1.59 billion euros. Adjusted EBITDA was around 76 million euros. Adjusted EBITDA margin for the automotive segment as a whole was about five percent. This reflects dilution effects from Osram Continental. Its business is to be returned to the parent companies and is planned to be developed positively. This will also significantly improve the profitability of the automotive segment.
The Digital (DI) unit was even worse affected, with revenue falling by one fifth to 742 million euros. As a result, adjusted EBITDA was negative at minus 28 million euros.

Encouraging developments in the fourth quarter

The two major business segments, Opto Semiconductors and Automotive, indicate improvements in the fourth quarter of the fiscal year. Profitability increased accordingly in both segments. The Opto Semiconductors unit even achieved an adjusted EBITDA margin of roughly 22 percent.

There was a noticeable upturn in the automotive market, which is an important one for Osram. Overall, the situation has improved significantly in the core markets in recent months.

For the 2021 fiscal year, Osram expects comparable revenue growth of between six and ten percent, an adjusted EBITDA margin of nine to eleven percent, and free cash flow in the neutral to low positive double-digit million euro range. This forecast is based on the assumption that the effects of the COVID-19 pandemic will be overcome in the course of the fiscal year 2021. Any economic consequences of a worsening pandemic situation are therefore not reflected in the forecast values.

Osram will hold a conference call for journalists on Friday, November 6, starting at 9:00 a.m. CET with the Managing Board of OSRAM Licht AG. It will also be broadcast on the internet at https://87399.choruscall.eu/links/osram201106pr.html. You can also use this address to view a recording of the conference.

From 2:00 p.m. CET on November 6 you can follow the analyst conference with the Managing Board using this link: https://87399.choruscall.eu/links/osram201106ir.html


The related documentation is available here: https://www.osram-group.com/en/investors/publications/2020

The annual report of OSRAM Licht AG will be published on December 2 on the Investor Relations website at https://www.osram-group.com/en/investors/publications/2020