OSRAM Licht AG Business Report FY ended Sep. 2018

Financial Overview

(in million EUR)
  FY ended Sep.
30, 2018
FY ended Sep.
30, 2017
Rate of Change (%) Factors
Sales 4,115 4,128 (0.3) 1)
EBITDA 477 621 (23.3) -
Sales by Segment
Specialty Lighting (SP) 2,224 2,312 (3.8) 2)
Opto Semiconductors (OS) 1,725 1,685 2.4 3)

1) Net Sales
-The Company’s net sales reduced by 0.3% over the previous year to EUR 4,115 million in the fiscal year ended September 30, 2018. Revenue growth primarily held back by challenging market conditions; decrease in demand from automotive industry, postponement of projects by customers in the areas mobile devices (Particularly smartphones) and smart farming, and a slowdown in the general lighting sector in the USA and Europe.

2) Specialty Lighting
-In the fiscal year ended September 30, 2018, the Specialty Lighting business unit’s sales decreased by 3.8% over the previous year to EUR 2,224 million. In the automotive business, despite the increase attributable to LED products was greater than the decrease attributable to traditional products, because of negative currency effect as 4.9%. 

3) Opto Semiconductors
-Sales in the Company’s Opto Semiconductors business unit in the fiscal year ended September 30, 2018 totaled USD 1,725 million, an increase of 2.4% over the previous year. Strongest growth rate (comparable) was general lighting (double-digit percentage rise), automotive business was moderate.


-The Company announced that it has added to its expertise in semiconductor-based optical security technology by acquiring US-based Vixar Inc. The Company will have a unique breadth of technological expertise and an expanded product portfolio after bringing on board Vixar’s specialist capabilities in the field of VCSEL. Approximately 20 employees of the company, which is based in Plymouth, Minnesota, will transfer to Osram as a result of the acquisition. The way in which VCSEL technology captures 3D environmental data has applications in everything from gesture recognition, augmented reality, robotics, and proximity sensors to autonomous driving. VCSEL stands for vertical cavity surface emitting laser and is a special type of laser diode in which the light is emitted perpendicular to the surface of the semiconductor chip. (From a press release on May 3, 2018)


Recent Developments

-The Company informed that Osram Continental GmbH joint venture, 50:50 JV set up by Continental and Osram, is up and running. Following the successful completion of all negotiations the joint venture has been launched as planned in the second half of 2018. Osram Continental will initially employ around 1,500 people at 16 locations worldwide, basing its headquarters in Munich (Germany). The plan is to move the headquarters to Garching (Germany). The joint venture aims to generate annual sales in the mid-triple-digit-million-euro range. Osram Continental is planning growth rates of up to double digits annually for the next five years. This is based on strong growth in the market for LED as well as laser-based lighting modules and solutions and associated electronics. The first products to be developed by the joint venture are expected to be ready for series production by 2021. (From a press release on July 3, 2018)


ーThe Company informed that standardized LED signal lamps from Osram and Koito are being used for the first time on the new Toyota Corolla Sport.(From a press release on October 8, 2018)

-The Company informed that Osram Opto Semiconductors and Joyson Safety Systems are equipping the new Cadillac CT6 with an innovative system for semi-autonomous driving. ‘Super Cruise’ is the industry’s first true hands-free driving technology for the highway.(From a press release on September 6, 2018)

-The Company informed that Audi uses the expertise of Osram Opto Semiconductors in the front lighting of its new flagship A8. The Oslon Compact PL for adaptive front lighting has been installed in the Audi A8 for the first time.(From a press release on March 13, 2018)

-The Company announced that the next generation of Osram SMARTRIX modules, developed in collaboration with Varroc Lighting Systems, gives SUVs a fresh look and improved intelligent lighting. Jaguar Land Rover is now launching the next vehicles with smart headlight technology from the Company.(From a press release on December 5, 2017)


R&D Expenditure 

(in million EUR)
  FY ended Sep. 30, 2018 FY ended Sep. 30, 2017 FY ended Sep. 30, 2016
Overall 421 364 334
% of sales 10.2 8.8 8.8

-In the fiscal year ended September 30, 2018, the Company had approximately 2,700 employees working in research and development.

Product Development

Laser for auxiliary high beam "PLPT9 450D_E A01"

-The second generation of blue multi-mode laser diodes doubles the range compared to previous LED solutions to 600 meters and simplifies the system design at the same time, when used in the auxiliary high beam of the car.

New infrared LEDs (IREDs) "Synios SFH 4772S A01" "Synios SFH 4775S A01"

-It will help the vehicle identify the driver using iris scanning or facial recognition, unlock the doors and even disable the engine immobilizer.

New laser "SPL DS90A_3"

-An edge emitter scans the vicinity of the car with an infrared laser beam across a particular angle segment. And the system uses the scans to create a high-resolution 3D map of the environment. 

The lighting solution

ーInstalled a serial control driver from Inova Semiconductors in the new E4633i product from the Osire family in addition to the three-color chips (red, blue and green). It is now possible for a large number of separate LEDs to be controlled via a serial bus system either individually or in groups.

LED "Oslon Boost HX"

-It delivers exceptional luminance of more than 200 cd/mm2, taking light-based driver assistance systems and communication with the driver into new territory.

New ambient light sensor (ALS) with integrated circuitry (IC) "SFH 5701 A01"

-With the help of ambient light sensors, however, the backlighting of car interior displays can be regulated in such a way that they are easy to read in all weather conditions and brightness levels. 

Standardized LED light "XLS(eXchangeable LED Signal)"

-The UN/ECE (R128) standardized lamps will be available in four types for different signal applications in yellow (LY5), white (LW5, L1) and red (LR5).The yellow LY5 is used for turn indicators, LW5 is a white signal lamp for reversing and DRL lights. The two other members of the XLS product family currently in planning are a red brake, rear and fog light (LR5) and a white high-precision fog light (L1).(From a press release on June 6, 2018)

"Oslon Black" for the infrared range with six new automotive IREDs

-The 850 nm versions are intended for exterior applications such as night vision, pedestrian protection, pre-field recognition and lane detection. The new 940 nm versions are suitable above all for interior automotive applications such as driver monitoring, seat occupancy detection and gesture recognition.

The world’s first SMT package for large-area photodiode chips

ーIt complies with the strict demands of the automotive industry and is even approved up to an operating temperature of 125°C. The new SFH 2200 A01 and SFH 2200 FA A01 photodiodes meet the requirements for AEC-Q101-C qualification and are ideally suited for use in rain sensors.

The world’s first hybrid LED prototype "Eviyos"

-Integrated hybrid LED in which a μ-structured light emitting chip and individual pixel control has been combined in a single component.

Capital Expenditure

(in million EUR)
  FY ended Sep. 30, 2018 FY ended Sep. 30, 2017 FY ended Sep. 30, 2016
Overall 467 537 349
-Specialty Lighting 49 57 69
-Opto Semiconductors 393 443 239

-In the past fiscal year, OSRAM maintained a high level of capital expenditure of around EUR 467 million (previous year: EUR 537 million). The bulk of the spending was accounted for by property, plant, and equipment. Most of this was in OS, where it was used to expand capacity for manufacturing LED chips.


-The Company announced that its new LED chip factory in Kulim, Malaysia, begins operation on time. A total of EUR 370 million was invested in the first stage of completion. Osram can expand the factory in two additional stages, entailing total investment costs of up to EUR one billion including expansion of the LED assembly capacities in Osram's global factory alliance. The Osram factory in Kulim will produce blue LED chips which, by means of a converter layer, can generate white light. The plan is to also produce LED chips in Kulim in the medium term for premium applications, such as automotive lighting and video projection. Osram is also expanding its plant in Regensburg, which currently has about 2,500 employees, and will additionally hire up to 1,000 employees. Premium LED chips and laser diodes, which are used, for example, in high-quality car headlights, will be manufactured there as well as infrared diodes for cars for intelligent assistance systems. (From a press release on November 23, 2017)