ams OSRAM announces group development strategy

ams OSRAM recently presented its strategy, business outlook, and development path to become a leader in optical solutions , along with future opportunities, during the Capital Markets Day event for investors. Since obtaining operational control of OSRAM in March 2021, ams OSRAM has been steadily progressing on its successful integration journey.

Alexander Everke, CEO of ams OSRAM, stated:

We are very pleased to present our current achievements and share our vision for the Group's future with all investors and stakeholders at today's Capital Markets Day. We firmly believe that a strategy based on core technologies is the inevitable trend, which will drive market demand for optical solutions, while AMS OSRAM is an active pioneer and leader in this market. We possess a unique, successful, and professional portfolio of optical solutions, providing innovative solutions to our customers. We deeply cultivate end markets such as automotive, consumer, industrial, and medical, driving diversified revenue growth in the semiconductor business, which serves as a strong pillar for the company to achieve its future goals . All these factors form the cornerstone of our sustainable success and our commitment to becoming a socially responsible enterprise.

This Capital Markets Day event was organized by the core members of the OSRAM Board of Directors and the Group Management Team. During the event, OSRAM provided investors and other stakeholders with a detailed overview of the company's development history, future prospects following business expansion, and key growth drivers. The main focus areas of this event were as follows:

Introduce the group's business development and integration since March 2021;

1. Confirm the group's target financial model to provide more support for key drivers, achieving long-term goals of double-digit average annual revenue growth and adjusted EBIT margin growth exceeding 20%;

2. Based on the reconfiguration of the product portfolio, introduce the mid-2024 target of €4.9 ± 0.3 billion in revenue and an adjusted EBIT margin growth of 15% or more;

3. Detail the key drivers that promote revenue growth in the group's product portfolio, including digitalization, smart living, energy efficiency, and sustainability, which align with mainstream market trends;

4. Demonstrating the Group's strong technological position in key growth application areas, including advanced dynamic automotive lighting, microLED display technology, AR/VR optical solutions, automotive sensing, and LED horticultural lighting;

5. Showcasing the Group's future industry development footprint: In addition to implementing a series of integration measures, ams OSRAM will build a new 8-inch LED front-end factory next to its LED plant in Kulim, Malaysia, significantly enhancing production capacity to achieve expected growth in advanced LED and Micro LED technologies. The investment for the new factory is expected to reach approximately €800 million over the next 18-24 months.

艾迈斯欧司朗表示，自2021年3月以来，艾迈斯欧司朗已经取得重大进展，实现一系列重要里程碑，践行了成为光学解决方案领导者的承诺。合并后的艾迈斯欧司朗在全体员工共同愿景的推动下，致力于实现全球一体化战略。因此在过去12个月里，尽管面临终端市场和供应链的重重阻力，艾迈斯欧司朗的业绩表现依然稳健。

At the same time, ams OSRAM is making smooth progress in divesting non-core businesses. It is expected that most of the digital lighting business originally under OSRAM will be sold by the end of 2022, and the spin-off of the original OSRAM China joint venture will also be completed.

As part of the group's ESG strategy definition, ams OSRAM has announced its primary key objectives: to achieve carbon neutrality by 2030 and to reach a 25% share of female leaders by 2026.

Today's Capital Markets Day will demonstrate that the merged AMS OSRAM can seize growth opportunities and achieve a 1+1>2 effect. After the merger, AMS OSRAM has strengthened synergies and energy saving, with enhanced overall strength and an improved initial valuation. Considering these factors, along with other key factors discussed at the Capital Markets Day, AMS OSRAM will become a leader in optical solutions dedicated to creating significant long-term value.