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.

   ══════════════════════════════════════════════════════════════════════════

   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

   ══════════════════════════════════════════════════════════════════════════

   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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