Revenue remained stable, and OSRAM announced the third quarter results of the 2018 fiscal year

* third quarter revenue remained stable, up to 1 billion 20 million euros * adjusted tax interest depreciation and amortization profit margin (EBITDA) maintained at 13.1%* OSRAM starting lamps and lanterns sales plan * by 2020, the cost cost of 130 million to 140 million euros was cut.

Olaf Berlien, chief executive of OSRAM group, said: "although the market environment is not optimistic, we are still creating good returns in important business areas. We are actively responding to the temporary slowdown in customer demand in the automotive industry and further savings. To ensure success, we are speeding up the restructuring of the company, and in the long run, OSRAM will continue to grow. "

In the third quarter of the 2018 fiscal year, OSRAM remained stable in a difficult market environment. The third quarter revenue was flat in the same period of last year, up to 1 billion 20 million euros. After the special project, the profit (EBITDA) of interest tax depreciation and amortization (EBITDA) was lower than the same period last year, to 133 million euro. After the adjustment, the profit rate of EBITDA reached 13.1%. Exchange rate changes, as well as the increase in the cost of developing and upgrading production capacity, affected more than forty million euros after the adjustment of the third quarter in the third quarter. These factors accumulated more than 130 million euros in the first three quarter of 2018, of which 75 million came from the exchange rate. Recently, affected by existing and imminent trade restrictions, customers and dealers worldwide have changed their buying behavior, which also aggravates the group's revenue pressure. The integration of these factors will affect the operation of the company in the next few months, which has also prompted the board to adjust its annual expectations at the end of June. In this context, the board has made a decision to streamline the product line in the future, and the first step is to sell the lamps and lanterns.

Management is looking for a variety of measures to adjust the current market situation. First, we will streamline global administration and management, which can reduce the operating costs by about 20%. In addition, the group has implemented a number of structural and operational optimization projects, including improvements in R & D, supply chain, and efficiency in the German factory. These optimized projects can achieve a cost savings of 130 million to 140 million euros in 2020.

The overall economy slowed in the third quarter of the fiscal year, and the reduction in demand for the auto industry became the primary factor affecting the performance of OS and SP. Trade tariff policies from the United States, more stringent emission tests in Europe and lower production expectations for high-end products will bring more uncertainty. In addition, we are also facing delays in mobile equipment and plant lighting projects, as well as the continuing slowdown in the general lighting market.

The strategic adjustment plan for the professional lighting system solutions (LS) department is now being implemented at the beginning of the year. In addition to the continuing sale of American services, the board is planning to sell the lamps and lanterns. In the financial report, the lighting business of the lighting system solution (LSS) plate has been stabilized because of a number of favorable improvements.

2018 fiscal year expectation

OSRAM adjusted its financial expectations for the 2018 fiscal year at the end of June. Based on these changes, the board of directors is expected to increase from 1 to 3% (3 to 5%) in fiscal year 2018 (3 to 5%), and the adjusted EBITDA is expected to be 5.7 to 600 million euros (earlier: about 640 million euros). The diluted earnings per share were expected to be 1 to 1.2 euros (1.9 to 2.1 euros). This includes unconventional costs associated with the "OSRAM future concept". Cash flow is expected to be minus 1.5 to 200 million euros (previously: cash flow is negative 50 million to 150 million euros).

As announced earlier, the board is adjusting the development strategy. The results will be announced at the capital market conference in November 7th.

The long-term growth prospects of OSRAM are still optimistic. LED and laser technology are in line with global trends and will continue to serve the high-tech growth market. The group is actively carrying out technological innovation and has expanded its product line in the field of innovation technology in the near future. This includes the acquisition of Vixar company and plant lighting company Fluence, which specialize in the field of compact 3D recognition technology. The acquisition of the two companies will be completed in the early fourth quarter of the fiscal year, and the takeover of the Trilux subsidiary BAG Electronics will also be completed in the same period. The joint venture with the continental group in the target intelligent vehicle lighting field also started operation in the early July.

(* the financial year of the OSRAM group is calculated for October 1st to September 30th of the next year and 4-6 months in the third quarter).

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