Osram AG Business Report FY2009

Business Highlights

Business overview

-Revenue in FY2009 decreased 13% compared to FY2008 on lower revenue in all its businesses. On a geographic basis, the strongest declines came from Europe, C.I.S., Africa, Middle East and the Americas. Lower capacity utilization sharply reduced profit in the current period.

 

Contracts

-Volkswagen's L1 concept car, which presented at the Frankfurt International Motor Show (IAA), has headlights that are equipped with new OSRAM Joule JFL2 LED systems. The vehicle can go into production in 2013. The LED modules take care of the dipped and main beam functions and consume less energy than conventional headlamps. Joule JFL2 will be introduced in production in early 2010. (From a press release on September 28, 2009)

-In July 2009, the Company has supplied its SNAPINLITE halogen headlight lamps for the Volkswagen Golf VI and the Tesla Roadster. The base system with "snap-in" receptacle allows lamps to be put into place or changed easily. The front lights of the Golf include H15 dual filament lamps, while H9B lamps have been installed in the Roadster. (From a press release on Jul 15, 2009)

-In Oct. 2007, Osram Sylvania announced that it is providing D3R mercury-free XENON (high intensity discharge) lighting that will be offered as an option on the 2008 Ford Mustang. The 2008 Ford Mustang was the second Ford Motor Company vehicle to feature Osram Sylvania mercury-free XENON lighting. The Lincoln Navigator was also equipped with mercury-free XENON technology. (From a press release on Oct. 1, 2007)

-In Feb. 2007, the Company announced that the Joule System will be equipped with the 2008 Ford Taurus X (formerly the Ford Freestyle) and 2008 Mercury Sable (formerly the Mercury Montego).

-In Feb. 2006, the Company introduced a complete mercury-free high intensity discharge (HID) lamp and ballast system. The D3 HID forward lighting system debuted on the 2007 Lincoln Navigator.

-In June 2005, Osram Sylvania supplied "Joule" LED lighting system for the 2006 Ford Mercury Mountaineer.

R&D


R&D Expenditure

(In millions of EUR)
   N.A.
since FY2008
FY2007 FY2006
Total 242 237

 

R&D Structure

-At the end of 1998, the Automotive Lighting division established four global product teams. A fifth team, which concentrates on light-emitting diodes (LEDs), was formed at Osram Opto Semiconductors. Team members come from several countries and multiple functions: development, production, marketing and controlling.

 

Technological Alliance

-In Mar. 2009, the Company and Everlight Electronics Co. Ltd of Taiwan signed a cross license agreement. The Company extended the existing license about manufacturing and sales of its patented white and colored LEDs with Everlight, which had initially been signed in Sep. 2003. In addition, Everlight granted to the Company a license to use housing patents of Everlight. (From a press release on Mar. 26, 2009)

-In Sep. 2007, the Company and Toyoda Gosei Co., Ltd. ("Toyoda Gosei") entered an agreement to allow the two entities, inclusive of their subsidiaries, to use each other's patents for specific technologies in Group III-V nitride compound semiconductor light emitting diodes ("LEDs"), including white LEDs technology. The Company and Toyoda Gosei intend to maintain an amicable business relationship in their pursuit of the development of quality high-luminosity LEDs technologies and the expansion of the LED market through fair competition. This agreement will provide both parties with greater freedom in their development efforts by eliminating the potential risk of infringing each other's patents. New developments in LED technology will be further facilitated, including an acceleration of research to improve the luminosity of LEDs, by actively promoting research works at both companies.

-In Aug. 2007, the Company granted to Seoul Semiconductors against compensation a license to manufacture and sell white LEDs with conversion technology using patents owned by the Company's subsidiary Osram Opto Semiconductors. In return Seoul Semiconductors granted to the Company a license to use housing patents of Seoul Semiconductors. This agreement paves the way for a closer cooperation between the two companies. Conversion technology, which was developed by Osram Opto Semiconductors, enables the production of white LEDs using blue emitting InGaN (Indium Gallium Nitride) based chips and suitable fluorescent converter. The Company signed royalty bearing license agreements with various companies - for example Rohm, Everlight, Lite-On, Harvatek Vishay, Samsung Electrics, Yashin and Citizen.

Product Development

-In Sep. 2009, OSRAM Opto Semiconductors added the OSLON MX ECE to its automotive LED product portfolio. The component is mainly intended for the daytime running lights of mid-range vehicles and is positioned between the Advanced Power TOPLED and the Golden Dragon. This 1W small-sized LED offers a light output of 70 to 95 lm and can be operated at temperatures up to 150℃. A 0.5W solution - Oslon SX ECE which offers a light output of 40 to 60 lm - is also available. (From a press release on September 10, 2009)

OSTAR Headlamp

-In July 2007, Osram Opto Semiconductors announced that it had developed the next generation of its already impressively bright OSTAR Headlamp LED. The new and improved headlamp LED features five chips connected in a series, with a color temperature of 6000 K and a peak performance of 620 lumen (lm) at 700 mA - twice the brightness of its predecessor. Operating without a lens, the high brightness of the new OSTAR Headlamp LED has been achieved through a combination of measures. OSRAM's thin-film chip technology, in combination with an improved phosphor converter, gives this new LED product high luminance and improved efficacy with minimum space requirements. Samples of the new OSTAR Headlamp LED are currently available, with volume production to begin in the third quarter of 2008. (From a press release on July 5, 2007)

-In Nov. 2006, Osram Opto Semiconductors announced the launch of its new OSTAR Headlamp. With the launch of the OSTAR Headlamp, and the upcoming launch of OSTAR Headlamp Hot Spot, Osram Opto Semiconductors will target vehicle forward lighting applications based on both reflector and projector systems. Systems designed with OSTAR Headlamps produce bright, white light and are ideal for applications such as high and low beam headlights, fog lights, daytime running lights and Adaptive Front lighting Systems (AFS). The new high-power light sources are equipped with five large ThinGaN chips. The proprietary ThinGaN architecture generates the high brightness and illuminance required to meet both Halogen and HID performance. (From a press release by the company on Nov. 14, 2006)

Ceramos Reflector
-In May 2008, all the properties that light sources need for backlighting medium-sized LCDs (5 to 20") are combined in the Company's new high-power Ceramos Reflector LED in its tiny package (2.3 x 3.2 x 0.8mm. The LED also withstands temperatures as high as 150C and is extremely durable with a life of up to 50,000 hours. Thanks to ThinGaN technology, the Ceramos Reflector provides strong light, coupled with high luminous efficacy of 70 lm/W from an operating current of 80 mA. Applications include satellite navigation devices for road vehicles and aircraft and any other displays that need to be read in bright ambient light. These LEDs are suitable for standard solder processes. They do not use any mercury at all and meet the requirements of the RoHS directive. (From a press release on May 20, 2008)

JOULE LED
-In the USA market, the Company has been supplying the JOULE LED rear lighting system for more than two years. This system provides greater safety at the back. LED signal lights are used to provide taillights, brake lights and flashers. The LED brake lamp lights up almost instantaneously (around 1.8 milli seconds to be precise) to give the driver behind you more time to react.

NIGHT BREAKER
-In October 2007, the Company introduced a halogen headlight; the NIGHT BREAKER, offering the right solutions for safety at night and in poor weather. The newly developed high-performance filament allow the NIGHT BREAKER lamps to produce around 90% more light than conventional lamps and, thanks to a new type of coating, the light is 10% whiter.

Investment Activities

Capital Expenditure

(In millions of EUR)
   N.A.
since FY2010
FY2009 FY2008
Capital expenditures on tangible assets 182 386

 

Overseas Investment

-In Apr. 2008, the Company held an opening ceremony for the new Asia regional headquarters of its subsidiary, Osram Opto Semiconductors, in Hong Kong. Osram Opto Semiconductors Asia Ltd., the new office, will initially coordinate sales and marketing activities in Asia. Osram Opto Semiconductors selected Hong Kong for its regional headquarters to be nearer to customers and partners in Asia, especially China, Korea and Japan. (From a press release on Apr. 17, 2008)

-In July, 2007, Osram Opto Semiconductors started construction of an LED chip factory in Penang. The factory in Penang will operate in addition to the main plant in Regensburg to manufacture LED chips in state-of-the-art nitride technology. The Company is investing millions of euros in the new factory, with a floor area of more than 30,000 square meters. The new plant is scheduled to be completed in the spring of 2009. In addition, the capacity of the existing LED assembly line in Penang will be increased by more than 50 percent.