Osram Discloses Final Figures for the Second Quarter

Osram’s performance in the second fiscal quarter was as expected.
Revenue on a comparable basis fell by 13.5 percent to 862 million euros
in the period from January to the end of March. The adjusted EBITDA
margin was 8.1 percent. When preliminary key figures were published at
the end of March, the lighting company had forecast a decline in sales
of around 15 percent for the second quarter and an adjusted EBITDA
margin in the mid to higher single-digit range. As announced at that
time, the decline was due in part to the continuing weakness of the
automotive, general lighting and mobile device markets. This led to high
inventory levels, particularly in China. In addition, the general
economic slowdown is adversely affecting business development.

Adjusted for special items, EBITDA at EUR 70 million was 56 percent
below the prior-year figure, while net income was EUR minus 91 million
due to transformation costs and an impairment charge in the controls
business. As communicated ad hoc at the end of March, the Management
Board is responding consistently to the development of the markets and
plans savings of over 200 million euros by 2021.

“In our 113-year history, we have repeatedly experienced challenging
times, but each time we have emerged stronger than before. Our long-term
strategy of implementing new applications in the LED sector remains
intact. The focus is on optical semiconductors, automotive and digital
applications,” said Olaf Berlien, CEO of OSRAM Licht AG.

In the past quarter, the Opto Semiconductors division recorded a decline
in sales of around 18.8 percent on a comparable basis. This reflects not
only the economic effects but also the weakness in the automotive
industry and general lighting. High inventories in Asia further curbed
development. Sales in the automotive division were 10.6 percent lower
due to reduced expectations worldwide in the automotive industry. In the
Digital division, sales fell by 8.5 percent due to the weakness in
general lighting and the control gear business.

As announced in March, the Management Board expects a decline in revenue
from continuing operations of 11 to 14 percent, an adjusted EBITDA
margin of 8 to 10 percent and a negative free cash flow of between EUR
50 million and EUR 150 million for the 2019 financial year.

In mid-February, Osram announced that management was in closer talks
with Bain Capital and The Carlyle Group about a possible takeover. The
due diligence process continues. As communicated from the beginning, it
remains to be seen whether an agreement will be reached. The Management
Board conducts the discussions in the interests of the company and thus
of shareholders, employees and other stakeholders such as business
partners and customers.

Beginning at 2 p.m. CEST on May 8, you can attend the analysts’
conference with the Managing Board at http://services.choruscall.eu/links/osram190508ir.html.

Selected key figures for the OSRAM Light Group in the second quarter

Development of the reporting segments in the second quarter

ABOUT OSRAM

OSRAM, based in Munich, is a leading global high-tech company with a
history dating back more than 110 years. Primarily focused on
semiconductor-based technologies, our products are used in highly
diverse applications ranging from virtual reality to autonomous driving
and from smartphones to networked, intelligent lighting solutions in
buildings and cities. OSRAM utilizes the infinite possibilities of light
to improve the quality of life for individuals and communities. OSRAM’s
innovations will enable people all over the world not only to see
better, but also to communicate, travel, work, and live better. As of
the end of fiscal year 2018 (September 30), OSRAM had approximately
26,200 employees worldwide. It generated revenue of more than €3.8
billion from continued operation in fiscal year 2018. The company is
listed on the stock exchanges in Frankfurt and Munich (ISIN:
DE000LED4000; WKN: LED400; trading symbol: OSR). Additional information
can be found at www.osram.com.

Disclaimer

This document contains forward-looking statements and information, i.e.
statements about events that lie in the future rather than the past.
These forward-looking statements can be identified by words such as
‘expect’, ‘want’, ‘anticipate’, ‘intend’, ‘plan’, ‘believe’, ‘seek’,
‘estimate’, ‘will’, and ‘predict’. Such statements are based on current
expectations and certain assumptions made by OSRAM’s management, so they
are subject to various risks and uncertainties. A wide range of factors,
many of which are beyond OSRAM’s control, have an influence on the
business activities, success, business strategy, and results of OSRAM.
These factors may cause the actual results, success, and performance of
OSRAM to differ significantly from those expressly or implicitly
communicated in the forward-looking statements or from those that are
expected on the basis of past trends. In particular, these factors
include, but are not limited to, the circumstances described in the
report on risks and opportunities contained in the annual report of the
OSRAM Licht Group. If one or more of these risks or uncertainties
materializes, or should the underlying assumptions prove incorrect, the
actual results, performance, and success of OSRAM may differ
significantly from those described in forward-looking statements as
being expected, anticipated, intended, planned, believed, sought,
estimated, or projected. OSRAM assumes no obligation, nor does it
intend, to update these forward-looking statements above and beyond the
legal requirements or to adjust them in light of unexpected
developments. Due to rounding, numbers presented in this and other
reports may not add up precisely to the totals provided and percentages
may not precisely reflect the absolute figures to which they relate.

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