OSRAM Licht AG Business Report FY ended Sep. 2016
Financial Overview |
(in million EUR) |
| FY ended Sep. 30, 2016 | FY ended Sep. 30, 2015 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 3,785 | 3,572 | 6.0% | 1) |
| EBITDA | 621 | 543 | 14.4% | - |
| Sales by Segment | ||||
| Specialty Lighting (SP) |
2,006 | 1,861 | 7.8% | 2) |
| Opto Semiconductors (OS) |
1,425 | 1,293 | 10.2% | 3) |
-The Company agreed to sell the Lamps business, which became a discontinued operation. Figures are based on the continuing operations.
-Since July, 2016, the Company's business model has been implemented at operational level using four business units: Specialty Lighting (SP) and Opto Semiconductors (OS), both of which remained unchanged, Digital Systems (DS), and Lighting Solutions (LS). Former Lamps business is classified as a discontinued operation as the company signed the agreement for the sale of LEDVANCE, which primarily consisted of Lamps business.
Factors
1) Overall
-The revenue in fiscal year ended September 30, 2016 rose to around EUR 3.8 billion, an increase of 6.0% on a nominal basis. Although there was a sharp year-on-year decline in currency-translation and portfolio effects, revenue was higher when they were included. The revenue growth generated by segments proceeded in line with the company's projections, with SP ahead of forecasts. All business segments rise in revenue, in particular, Opto Semiconductors segments generated the strongest rise with 10.2%.
2) Specialty Lighting
-At more than EUR 2 billion, revenue was clearly higher than in the previous year. The revenue saw a positive trend in all regions with the biggest increase in the Americas. The growth in revenue was attributable to the automotive business, primarily owing to increase in LED module business.
3) Opto Semiconductors
-Revenue rose to EUR 1.4 billion. All reporting regions contributed to growth and EMEA and the Americas saw the biggest percentage increases. Highest growth rates was from premium products (automotive and industrial business as well as infrared components business).
Restructuring
Sale of the lamps business
-The Company announced the carve-out of the lamps business. As an independent entity, the business will be able to operate more freely on the market and realize strategic options, such as partnerships, more easily. (From a press release on June 12, 2015)
-The Company announced the agreement to selling the lamp business to Chinese consortium. The transaction price amounts more than EUR 400 million and the transaction is expected to close in the course of fiscal 2017. (From a press release on July 26, 2016)
Contracts
-The Company announced that it is supplying its laser modules for the headlights of the BMW 7 Series. The Osram laser module features three high-power diodes from Osram’s subsidiary Opto Semiconductors. (From a press release on February 4, 2016)
R&D Expenditure |
(in million EUR) |
| FY ended Sep. 30, 2016 | FY ended Sep. 30, 2015 | |
| Overall | 334 | 286 |
| R&D Intensity (% of R&D expenditure to sales) | 8.8 | 8.0 |
-Fiscal year 2016, the average number of employees in R&D was 2,400 FTE (full time equivalents).
Product Development
New head lamp module
-The Company is the exclusive lighting supplier for Oasis, the latest concept vehicle from Rinspeed, which will be launched at CES 2017. Osram supplied five Multi-LED modules for each headlamp. Depending on the performance desired, low and high beams can be achieved using six to 10 of the Multi-LED modules. The Oasis vehicle features two auxiliary forward lighting LED projection modules; provide a high-quality source of illumination at night to safely guide drivers down the road, and communicate with the outside world. (From a press release on January 5, 2017)
Four-channel laser for LIDAR system
-At electronica 2016, Osram Opto Semiconductors is showcasing a four-channel laser that takes LIDAR (Light Detection and Ranging) systems for autonomous or semi-autonomous driving a step closer. The prototype laser has an extremely short pulse length and four parallel output channels. It therefore offers completely new options for detecting objects and a unique vertical detection zone. This laser technology will be used for the first time in scanning LIDAR sensors based on micro-electromechanical systems (MEMS). Such solutions do not need any mechanism to redirect the laser beam so they are less susceptible to wear and tear. (From a press release on November 7, 2016)
Capital Expenditure |
(in million EUR) |
| FY ended Sep. 30, 2016 | FY ended Sep. 30, 2015 | |
| Overall | 349 | 246 |
| -Specialty Lighting | 69 | 72 |
| -Opto Semiconductors | 239 | 148 |
Divestment
-Disposal of the investment in FELCO (Foshan Electrical and Lighting Co. Ltd., Foshan, China) resulted a cash inflow of EUR 326 million in fiscal 2016.
Investment Outside Germany
-The Company opened its new LED assembly plant in Wuxi, Jiangsu Province, China. Having invested a low three-digit-million euro amount into the facility, the 100,000-square-meter plant is expected to have up to 2,100 employees by 2017. The new facility is the Company's second backend site whose primary activity is assembling LED chips into housings. At full capacity, the new plant will be capable of producing several billion LEDs per year. (From a press release on May 21, 2014)
Investment Plan
-The Company announced that it will invest around EUR 3 billion in new technologies and applications by 2020. Of this amount, approximately EUR 2 billion will be spent on research and development. Additionally, the Company has planned another EUR 1 billion for the construction of a new LED chip plant in Malaysia. The company will invest around EUR 370 million in its Opto Semiconductors (OS) segment for a new LED chip plant in Kulim, Malaysia. Since further expansion measures are already being planned, the company expects to invest a total of around EUR 1 billion there by 2020. The new plant will manufacture 6-inch LED chips. (From a press release on November 10, 2015)