OSRAM in the performance, fiscal year 2017 revenue of over 4 billion euros

Yesterday (6) evening, OSRAM announced the 2017 annual financial performance. The 2017 financial year, OSRAM benefited from the market for its high-tech products continued strong demand, especially in photoelectric semiconductor products. With comparable computation (affected by portfolio and monetary factors), fiscal year 2017 revenue growth over last year more than 8%, reaching more than 4 billion euros. Operating profit reached 16.8%, adjusted for special items, income tax depreciation and amortization (EBITDA) growth of more than 6%, up to 695 million euros, after tax profit of 275 million euros. The proposal to the board of supervisors per share dividend for 1.10 euros, which means that the growth of 10%, also proved from two years ago to run the "diamond" innovation and development plan has remarkable achievements. We are along the continuous development strategy. Despite the unfavourable exchange rate and the impact of investment, OSRAM will continue to maintain a sustained growth in 2018.

OSRAM CEO Olaf Berlien said: "in the process toward the high-tech enterprises are ahead, we achieved a peak in 2017. Thanks to the constant practice in the field of innovation and continue to develop for the potential market, OSRAM is in a very favorable strategic position. The performance of our revenue on the right track, indicates that more potential for fiscal year 2018. Recommended 1.10 euros per share dividend demonstrates OSRAM strong business momentum and strong financial strength."

Strong growth in the fourth quarter of fiscal year 2017 (as of September 30th), the company in the process of assets investment continued to plan, compared with the previous fiscal year, achieved a double growth in revenue and profit of. OSRAM will be in the fiscal year 2018 continued to accelerate the transition to high-tech enterprises. Optical semiconductor products based on the company's revenue has accounted for 2/3. OSRAM is constantly on the investment locations and technologies worldwide, to lay the foundation for sustainable profitable growth. These expenditures and adverse trends in the exchange rate, will also become an important OSRAM will face in the new financial year factors.

The outlook for fiscal year 2018

The 2018 fiscal year, OSRAM will continue to build the foundation for the development of future oriented. Revenue is expected to grow by 5.5% to 7.5%. Income tax depreciation and amortization adjusted for special items before the expected profit will reach 700 million euros, of course it will be affected by various factors, such as monetary factors, opened a factory for the cost and enhance the capacity for sustained development of capital expenditure, these are expected to reach hundreds of millions of euros. Single currency factors predicted the negative impact will be caused 70 million euros. Diluted earnings per share is expected to be 2.40 to 2.60 euros. We expected free cash flow will be negative to 150 million euros in negative 50 million euros. The board of directors have confidence in OSRAM's medium-term development, so again the 2018 fiscal year dividend target of at least 1.10 euros.

Classification of market trends

OSRAM Opto Semiconductors (OS) growth trends and maintain strong business ability. A series of factory production costs and exchange rate trends will affect the operating profit for fiscal year 2018. Because the automobile market for the LED application requirements increase, special lighting (SP) will continue to expand. Asia currently with the highest growth rate. But the lighting system solutions (LSS) division of the business is still not very optimistic. The board of directors has taken action, and a new management team is exploring a lighting business (LS) of all the possibilities. In the financial year will be the new strategic decision to publish.

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