OSRAM Kulim Opening 2017

OSRAM Licht AG | November 23, 2017

Light is OSRAM

www.osram.com

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

2

Disclaimer

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining

to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular,

statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment,

regulation and supply and demand. OSRAM Licht AG has based these forward-looking statements on its current views and expectations

and on certain assumptions of which many are beyond OSRAM Licht AG’s control. Actual financial performance could differ materially

from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial

performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-

looking statements. The information contained in this presentation is subject to change without notice and OSRAM Licht AG does not

undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except

to the extent required by applicable laws and regulations.

This presentation includes references to non-IFRS financial measures, including, but not limited to: FCF, EBITDA, EBITA, EBIT, EBITDA

margin, capital expenditure, capital expenditure as percentage of revenue, net financial debt, and net working capital. We have provided

these measures and other information in this presentation because we believe they provide investors with additional information to assess

our performance. Our use of these supplemental financial measures may vary from others in our industry and should not be considered

in isolation or as an alternative to our results as reported under IFRS.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided

and percentages may not precisely reflect the absolute figures.

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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Three pillar strategy

Opto

Semiconductors

Specialty Lighting Lighting Solutions

& Systems

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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Global Digitalization Trends driving OSRAM’s future

Source: OSRAM, Analysis of 28 market segments with internal and external sources, Market: 2017, growth: 2017 – 2021 p.a.

Illuminating Sensing

Visualizing Treating

Market:

~€30bn

Growth:

+5 – +10%

Market:

~€10bn

Growth:

~ +10%

Market:

~€5bn

Growth:

> +20%

Market:

~€5bn

Growth:

> +10%

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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OS LSSSP

Market size in bn €

Financials based on FY17

17‘‘€ 20‘‘€

Industry position

Global No. 2

Segment revenue

1.7 bn €

adj. EBITDA

473m €

adj. EBITDA margin

28.1%

Free cash flow

62m €

Growth drivers:

Automotive

Smartphone

General Lighting

2016 2020

Infrared

Opto Semiconductors (OS)

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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2008 2012 2016 2020 2024 2028 2030

Profitable Opportunities ahead

CONCEPTUAL

OS Market

Backlighting

General Lighting

Premium, IR Emitter, Laser

Visualization and Sensing

New biz opportunities for OS

IHS 2015

OS LSSSP

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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New Applications and a compelling Strategy

are expected to generate double digit Growth

1) Infineon, ams AG, Seoul Semiconductor, Cree, Epistar, Everlight Electronics, HC Semitek, TI, Renesas

Focus Applications OS revenue

development (€bn)

Adj. EBITDA margin

Peer group1)

20 – 24%

Target range OS

25 – 29%

Visualization

and Sensing

General Lighting

Premium,

IR Emitter, Laser

OS Strategy

“Shape the future”

Win in new

business opportunities

“Gain competitive scale”

“Mega”-sites in a low-

cost-locations (Kulim,

Wuxi)

“Grow the core”

Strengthen techno-

logy leadership

1.7

16

1.4

15 17 19e 20e18e

1.1

OS LSSSP

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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• Construction on time

(March 2016 – November 2017)

• Finished below budget

• Production ramp up in November, 2017

• Faster start of Premium production

OS in a leading industry Position –

Technology, scale and factor cost

Best in Class & Market Leadership2. Scale and 3. Factor Cost

Kulim: Worldwide largest 6’inch LED fab is starting production

Revenue growth

Innovation

Profitability

11. Technology

OS LSSSP

Best factor costs and right

economies of scaleLeading in technology

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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Specialty Lighting (SP)

Automotive

Entertainment

Industry position

Global No. 1

Segment revenue

2.3 bn €

Adj. EBITDA

339m €

adj. EBITDA margin

14.7%

Free cash flow

235m €

1)

Growth drivers:

Automotive

Entertainment

Industry

Market size in bn €

12‘‘€ 15‘‘€

2016 2020

1) In Automotive lighting, Financials based on FY17

OS LSSSP

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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Lighting Solutions and Systems (LSS)

Segment revenue

1.0 bn €

adj. EBITDA

-21m €

adj. EBITDA margin

-2.1%

Free cash flow

-68m €

Growth drivers:

Energy saving

Market size in billion €

67‘‘€ 89‘‘€

2016 2020

Beyond lighting

Industrial sites

City beautification

OS LSSSP

Financials based on FY17

OSRAM Licht AG

OSRAM Kulim Opening | November 23, 2017

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Illuminating

Visualizing

Sensing

Treating

Autonomous driving with OSRAM

Adaptive cruise control system

(LIDAR)

LED / Laser

head-up

display

Headlamp

(e.g. laser,

matrix)

Pre crash sensing (LIDAR)

Rain sensor

Daytime

running light

Side view and

lane detection

Ambient light sensor

Driver monitoring

Interior lighting

Ambient lighting

Gesture recognition

3-D environment

detection (LIDAR)

Rear light

LED Flash

Display backlighting

Bio-Monitoring

Eye tracking

IR remote control

Gesture recognition

Digital communication with OSRAM

Ambient light sensor/

proximity sensor

Facial

recognition

Iris-Scanning

Iris scan or

facial recognition

Indicators

Wellbeing with OSRAM

Mobile Food-Analysis

Baby monitoring

Wearables

Entertainment with OSRAM

Concerts

Cinema

Shows & Events

Stage & Theatre

Studio, TV & Film

Wireless networks for park

management

Personalized

advertising

Indoor-Navigation

Access control

Integrated sensors for traffic

detection and traffic control

Intelligent LED-street lights

Light management

systemsLED-indoor luminaires

and components

Security

applications

OSRAM equips Smart Cities

Digitalization and new Applications are creating significant Market

opportunities for OSRAM

OSRAM Kulim Opening 2017

OSRAM Licht AG | November 23, 2017

Light is OSRAM

www.osram.com