Financial Overview

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012	Rate of Change (%)	Factors
Overall
Sales	5,288.7	5,399.8	(2.1)	1)
EBITDA	413.6	392.9	5.3	-
Sales by Segment
Specialty Lighting	1,455.8	1,404.5	3.7	2)
Opto Semiconductors	1,018.0	899.1	13.2	3)

Factors
1) Overall
-In 2013, the Company's sales dropped 2.1% to EUR 5,288.7 million due primarily to the disposal of shares in its joint ventures with Mitsubishi Electric and Toshiba. Unfavorable currency effects also had a negative impact on the Company's sales.

2) Specialty Lighting
-Sales in the Company's Specialty Lighting segment grew 3.7% to EUR 1,455.8 million in the fiscal year ending Sep. 30, 2013. Growth in the segment is attributed to increased demand for SSL products and high-pressure discharge lamps for the automotive industry.

3) Opto Semiconductors
-The Company's Opto Semiconductors segment experienced a 13.2% increase in sales in 2013 to EUR 1,018.0 million, the first time that the segment had exceeded EUR 1 billion. Notably, infrared components and LEDs had the largest increase in sales for the segment.

Outlook

-In the fiscal year ending September 30, 2013, 29% of the Company's total sales came from its LED business, up from 25% a year ago. The Company hopes to have LED products account for half of its total revenue by 2017.

Restructuring

Agreement to divest Valeo Sylvania
-The Company and Valeo S.A. have entered into a put and call option agreement. According to the agreement, in the first quarter of calendar year 2014, Valeo would acquire all of the Company's shares in Valeo Sylvania, a 50/50 joint venture between the two entities in North America. Valeo and the Company have also agreed to reinforce their cooperation in the automotive lighting business with a strategic supply agreement. (From a press release on June 18, 2013)

Corporate reorganization
-The Company announced its corporate reorganization program for the transformation of the lighting market to semiconductor based products. The Company had already initiated a comprehensive corporate program in early 2012. The corresponding reduction of an additional 4,700 jobs by 2014 will mostly be achieved through plant sales. Some 1,900 jobs have already been reduced worldwide in the fiscal year ending September 30, 2012, of which 300 were in German locations. These program measures are estimated to result in cumulative gross savings of approximately EUR 1 billion by 2015. Based on current plans, in addition to the 1,000 jobs already affected in January, a further 400 jobs will be affected in Germany, primarily related to the sites in Berlin, Wipperfurth and Munich. (From a press release on November 30, 2012)

Awards

-Continental AG announced that it has awarded the Company as "Supplier of the Year 2012" in recognition of the Company's interfaces, voltage regulators, analog ICs, and other components.

R&D Expenditure

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Overall	341.2	339.5

-Approximately 62% of the Company's research and development spending is in the solid-state lighting (SSL) segment. In the fiscal year ending Sep. 30, 2013, the amount invested in research and development was 6.5% of sales.

-As of September 30, 2013, the Company had approximately 2,500 employees who worked in 36 research and development locations around the world.

Product Development

OLED taillight
-Having shown a concept at last year's symposium, the Company displayed a new OLED taillight at the 2013 International Symposium on Automotive Lighting (ISAL). Unlike its predecessor, the OLED taillight on display was compliant with ECE standards for both rear lights and braking lights. Additionally, the OLED can be split into individually controllable segments to display various lighting sequences. The Company expects to see OLEDs available on roads in 2016. (From a press release on September 27, 2013)

LED component for AFS
-At the 2013 International Symposium on Automotive Lighting, the Company displayed a new LED component designed specifically for Advanced Forward Lighting Systems (AFS). The new component contains five chips which can be individually switched on and off based on the current driving situation and the location of other drivers on the road.

Multichip LED
-The Company's Opto Semiconductors segment announced that it has developed its new multichip-LED, RGB MultiLED. The main feature of the new MultiLED is a very broad blue color range with a wavelength of up to 447 nanometers (nm) and high brightness. This is due to the use of three LED chips in red, green and blue (RGB). (From a press release on August 6, 2013)

LEDs for interior lighting
-The Company unveiled the new generation of the Topled and Mini Topled LEDs from its Opto Semiconductors segment. The standard packages have been retained but now contain LEDs in a new brightness class with white light that is ideal for the interior illumination of buses, trains, aircraft and cars. Other features of the LEDs include durability, resistance to electrostatic discharge (ESD), and improved corrosion stability. The LEDs are also certified to automotive industry standard AEC Q101. (From a press release on March 27, 2013)

Infrared chip prototype
-The Company announced that its infrared chip prototype has achieved a new record with a wall plug efficiency of up to 72 percent and an external quantum efficiency of 67 percent. The wavelength of the chip prototype of 850 nanometers is perfect for infrared illumination, particularly for surveillance tasks. There are also potential safety applications in the automotive sector, such as pre-crash sensors and illumination sources for night vision systems. The new chip is expected to go into series production between the start and middle of 2013. (From a press release on December 5, 2012)

LED component for subcompact vehicles
-Osram Opto Semiconductors, a segment of the Company, is offering the new Oslon LX LED component for installation in subcompact vehicles. The package for the Oslon LX is compact, measuring only 3x3 square millimeters. They will be used mainly for daytime running lights and fog lights. Low beam and high-beam applications are also possible, however, with a combination of several LEDs. (From a press release on October 25, 2012)

Compact high-power LED
-Osram Opto Semiconductors, a segment of the Company, will unveil the prototype of the Oslon Compact, the compact high-power LED for the automotive market. The small size of the new Oslon Compact enables a single LED type to be used as the default light source for all automotive forward lighting applications. The light points in the headlight can be placed in any arrangement, for example, and customized designs can be developed to give different vehicles a unique appearance. (From a press release on October 2, 2012)

Capital Expenditure

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Overall	207.4	187.2
-Specialty Lighting	37.8	43.0
-Opto Semiconductors	62.8	62.4

Investment in Germany

-The Company is building up capacities in future-oriented business areas, such as halogen lamps and LEDs. Thus, the Company created 200 jobs in the past fiscal year in Germany alone. During the course of the year, the Company also inaugurated a new halogen production line at its Eichstatt location with construction of a second line already underway. The Company also developed a future concept at its Augsburg site. Key aspects of this concept include the development of the location into a center of excellence for manufacturing processes of LED-based products or the expansion of fluorescent lamp production. (From a press release on November 30, 2012)

-The Company announced that it held a groundbreaking ceremony for a new halogen production line in Eichstatt, Germany. The production line produces burners for halogen lamps and started operations in the summer of 2013. The total investment for the new plant was in excess of EUR 10 million. The Eichstatt production site has been in operation since 1962. Each year, around 250 million lamps, including halogen lamps, halogen lamps for automotive lighting and xenon short-arc lamps for use in cinemas are manufactured in Eichstatt. (From a press release on October 30, 2012)

Investment Outside Germany

<China>
-The Company is planning to open a new LED assembly facility in Wuxi, China, in 2014.