OSRAM 1Q18 has continued to grow, the comparable revenue reached 8 billion

Yesterday, OSRAM disclosed the first quarter of fiscal year 2018 (October 1, 2017 -2017 December 31st) earnings. In the first quarter of fiscal year 2018, OSRAM continues to increase, and increase capital expenditures. The market for high-tech products, especially for photoelectric semiconductor products is still a great demand. This quarter comparable revenue reached 1 billion 30 million euros (about 8 billion yuan), compared with the same period last year increased by 5%. Special projects adjusted EBITDA reached 172 million euros (about 1 billion 836 million yuan), to maintain the same level with last year. The adjusted EBITDA margin reached 16.7%. Due to strong growth in operation, the company almost completely offset the negative impact of monetary factors, continue to increase R & D investment, coupled with the expansion of production scale (such as the creation of a new factory in Malaysia, opened) also increased capital expenditures of the company. R & D expenses has now reached 9.4% of revenue. OSRAM will continue to follow the development strategy smoothly.

So before the 2018 fiscal year will be announced, effect of capital expenditure and monetary factors. Only because of the negative impact of recent changes in the exchange rate, the first quarter revenue losses of more than 60 million euros. In order to realize the sustainable profit growth, OSRAM will continue to invest in its production capacity and future technology. The new LED technology related products revenue has accounted for 2/3 of revenue based on the actual.

OSRAM Group CEO Olaf Berlien said: "our first quarter performance is good. Although the exchange rate has caused tremendous resistance to us, but we still achieve further growth, and maintain a high rate of profit. From the current point of view, we are expected in the second half of the fiscal year and then climb the peak. The market for our products has a strong and persistent demand, this suggests that we increase production and investment in new technology decision is correct, because they can help us to better seize opportunities, to achieve long-term growth."

From the business sector, the first quarter data show: OSRAM Opto Semiconductors (OS) growth momentum and strength is not affected by the operation. In the first quarter, improve increase production to reduce the cost of profits, which we have seen.

In order to cater to the market of LED (especially in the field of general lighting) of the high demand, OSRAM in November 2017 opened a new factory opened in Malaysia. The scale of production will be in accordance with the plan to expand capacity, is also encouraging. We are expected to witness the first stage of additional capacity investments in fiscal year end.

The largest proportion of revenues accounted for special lighting (SP) has also been a drag on the exchange rate. The status quo of the global automotive products in the field of joy and sorrow. The market situation of the car has not changed since the fourth quarter, we expect that it will continue to grow, but the rate will be lower than the 2017 fiscal year.

However, LED lighting is still constantly breakthrough trend, especially in the automotive industry. In the new car in LED will gradually replace the traditional lighting technology, which will help us in the field of business strategy.

To solve the lighting system scheme (LSS), we have not seen much improvement in the business environment. In view of the construction market of new industrial and office buildings for depression, especially in the North American market. Therefore, the categories of lighting lamps, electronic ballast and related services demand continued to decline.

The 2018 fiscal year, OSRAM will continue to focus on the present, look to the future. The company's revenue growth rate from 5.5% to 7.5%. Special projects adjusted EBITDA for 700 million euros, and will receive money, opened a factory production cost and improve the effect of R & D funds and other factors, will increase the cost of up to hundreds of millions of euros. In this fiscal year, OSRAM estimates of expected earnings per share of 2.4 to 2.6 euros. Free cash flow is expected in the 50 million - to - 150 million euros between. The board is full of confidence on OSRAM's medium-term prospects for development, so the fiscal year 2018 plan again at least 1.11 euros per share dividend target.

In the past three months, the euro exchange rate continued to rise, especially against the dollar. The key data on OSRAM's influence. This fiscal year forecast from November onwards will be based on the current exchange rate of Euro 1 is equal to 1.18 dollars.

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