Ams OSRAM : Third quarter 2023 results

Sensing is life

Third quarter 2023 results Earnings Call

Aldo Kamper, CEO

Rainer Irle, CFO

Dr Juergen Rebel, SVP Investor Relations

31 October 2023

Disclaimer

Part 1

IMPORTANT: The following applies to this document, which has been prepared by ams-OSRAM AG (the "Company" and together with its subsidiaries, the "Group") and comprises (i) the slides for a presentation on the Company's third quarter results for 2023, which include certain information in connection with proposed offerings of its no-par value shares and senior notes, (ii) the oral and, (iii) if any, video presentation (collectively, the "Information"), each of which should be considered together and not taken out of context.

The Information is in summary form, is solely for your information and must not be relied upon for any purpose. It does not purport to contain all information required to evaluate the Company or the Group and/or its financial position. Certain financial information in this document in respect of the Company is unaudited. Certain financial data included in the Information consists of non-IFRS financial measures. These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included herein. Certain financial information (including percentages) has been rounded according to established commercial standards. The Information is intended to provide a general overview of the Group's business and does not purport to deal with all aspects and details regarding the Company and the Group. The Information does not constitute a recommendation regarding any investment in, or loans or securities of, the Company or any other member of the Group. Further, it should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice and recipients should each make their own evaluation of the Company and of the relevance and adequacy of the information contained herein.

These materials are not for distribution or release, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), Australia, Canada, Japan or any other jurisdiction in which such distribution or release would be unlawful. These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States, Australia, Canada or Japan, or any other jurisdiction in which such offer or solicitation may be unlawful. Any failure to comply with these restrictions may constitute a violation of United States, Canadian, Australian, Japanese or other applicable securities laws. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the

"Securities Act").

The securities may not be offered or sold in the United States, absent registration or an exemption from the registration requirements of the Securities Act. There will be no public offer of the securities in the United States.

This document is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the "Prospectus Regulation") or Regulation (EU) 2017/1129 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation") but an advertisement for the purposes of the Prospectus Regulation and the UK Prospectus Regulation, and as such does not constitute an offer to sell or the solicitation of an offer to purchase securities of ams-OSRAM AG. Investors should not subscribe for any securities referred to in this document except on the basis of the information contained in any prospectus or offering circular relating to the securities, the former of which may be published by the Company in final form on its website. Any such prospectus or offering circular would include a description of risk factors in relation to an investment in the Group. You should conduct your own independent analysis of all relevant data provided in any prospectus or offering circular and you are advised to obtain independent expert advice as to the legal, tax, accounting, financial, credit and other related aspects before making any investment decision.

The Information is only addressed to and directed at persons in member states of the European Economic Area (each a "Relevant State") who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation ("Qualified Investors"). In the case of the United Kingdom, the Information is only addressed to and directed at and is only being distributed to "qualified investors" within the meaning of the UK Prospectus Regulation who are (i) "investment professionals" within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); (ii) high net worth companies, and other persons to whom it may otherwise lawfully be communicated falling within Article 49(2)(a) to (d) of the Order, or (iii) persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "Relevant Persons"). The Information must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any Relevant State, by persons who are not Qualified Investors. Any investment or investment activity to which the Information relates is available only to or will be engaged in only with, (i) Relevant Persons in the United Kingdom, and (ii) Qualified Investors in any Relevant State.

This publication is not a prospectus according to articles 35 et seqq. of the Swiss Financial Services Act ("FinSA") and as such does not constitute an offer to sell nor a solicitation to buy securities of ams-OSRAM AG or any other company. This publication is made for information purposes only and shall not constitute investment advice. Any offer regarding any publicly offered securities of ams-OSRAM AG in Switzerland will be solely made by means of, and on the basis of, a prospectus (including any supplements thereto, if any) that is deemed approved in Switzerland without additional approval procedure in accordance with the FinSA, which will be made available free of charge from ams-OSRAM AG or UBS AG during regular business hours, or on the ams-OSRAM AG website prior to the public offering. An investment decision regarding any publicly offered securities of ams-OSRAM AG should only be made on the basis of the prospectus published for such purpose.

This publication constitutes neither an offer to sell nor a solicitation to buy securities. Any offer regarding any publicly offered securities of ams-OSRAM AG in Austria will be made solely by means of, and on the basis of, a securities prospectus (including any supplements thereto, if any) to be approved by the Austrian Financial Market Authority (FMA) and to be published in accordance with the Prospectus Regulation on the website of the Company. An investment decision regarding any publicly offered securities of ams-OSRAM AG should only be made on the basis of a securities prospectus or an offering memorandum, as the case may be. Any orders relating to securities of ams-OSRAM AG received prior to the commencement of a public offering will be rejected. If a public offering is to be made in Austria, a securities prospectus will be published promptly upon approval by ams-OSRAM AG in accordance with the Prospectus Regulation and will be available free of charge from ams-OSRAM AG during usual business hours, or on the ams-OSRAM AG website.

2

Disclaimer

Part 2

No representation, warranty or undertaking, express or implied, is made by the Group, its shareholders or any of the Group's, its shareholders' or any of its or their respective directors, officers, employees or agents ("Representatives") or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein or any other statement made or purported to be made in connection with the Company or the Group, for any purpose whatsoever, including but not limited to any investment considerations. No responsibility, obligation or liability whatsoever, whether arising in tort, contract or otherwise, is or will be accepted by the Group, the Company, its shareholders or any of their respective Representatives or any other person for any loss, cost or damage howsoever arising from any use of the Information, or for information or opinions or for any errors, omissions or misstatements contained therein or otherwise arising in connection therewith.

The Information is of an abbreviated nature and is subject to updating, revision, amendment, verification, correction, completion and change without notice. In providing access to the Information, none of the Group, the Company, its shareholders or any of their respective Representatives or any other person undertakes any obligation to provide the attendee or recipient with access to any additional information or to update the Information or to correct any inaccuracies in any such Information, including any financial data or forward-looking statements. The Information should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date thereof. None of the Group, the Company, its shareholders or any of their respective Representatives have independently verified any of the Information. You should conduct your own independent analysis of all relevant data provided in the offering memorandum and you are advised to obtain independent expert advice as to the legal, tax, accounting, financial, credit and other related aspects before making any investment decision.

The Information may constitute or include forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. These forward-looking statements reflect, at the time made, the Group's beliefs, intentions and current targets/aims concerning, among other things, the Company's or the Group's results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; economic outlook and industry trends; developments of the Company's or the Group's markets; and the strength of the Company's or any other member of the Group's competitors. Forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in the Information are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Group's records and other data available from third parties. Although the Group believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Forward-looking statements are not guarantees of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual outcomes and the results of operations, financial condition and liquidity of the Company and other members of the Group or the industry to differ materially from those results expressed or implied in the Information by such forward-looking statements. No assurances can be given that the forward-looking statements will be realized. The forward-looking statements speak only as of the date of this document. The Group expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements to reflect any change in the Group's expectations with regard thereto or any changes in events, conditions or circumstances on which any forward-looking statements are based. No representation or warranty is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. Undue influence should not be given to, and no reliance should be placed on, any forward-looking statement.

To the extent available, the industry, market and competitive position data contained in the Information come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Group believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Group, the Company, its shareholders or any of their respective Representatives has independently verified the data contained therein. You are therefore cautioned not to give undue weight to third party data. In addition, certain of the industry, market and competitive position data contained in the Information come from the Group's own internal research and estimates based on the knowledge and experience of the Group's management in the markets in which the Group operates. While the Group believes that such research and estimates are reasonable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change and correction without notice. Accordingly, reliance should not be placed on any of the industry, market or competitive position data contained in the Information.

By accepting to attend the oral and, if any, video presentation and/or accessing or reading a copy of the Information you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that (i) you have read, accepted and agreed to comply with the contents of this notice and (ii) (A) if in a Relevant State you are a Qualified Investor; (B) if in the United Kingdom you are a Relevant Person; (C) if in the United States, you are a qualified institutional buyer as defined in Rule 144A under the Securities Act, and (D) irrespective of where you are resident or incorporated, you are an institution that is permitted within your home jurisdiction and in the jurisdiction in which you are accessing the Information, under applicable law and regulation, to access the Information.

3

Group revenues and adjusted EBIT meaningfully up in Q3

All figures in EURm / % of revenues

Total revenues

ø EUR/USD

1.01

1.09

1.09

1,213

120+6%

851904

1,093

Q3 2022

Q2 2023

Q3 2023

Deconsolidation effects due to disposals

• Revenues above midpoint of guidance range
• EUR ~40m negative FX impact YoY
• Strong sequential growth, driven across end markets, particular strong Automotive business
• YoY comparison reflects de-consolidation effects

EBIT, EBIT margin (adj.)1)

8%	8%
	6%
91	+42%

71

50

Q3 2022

Q2 2023

Q3 2023

• Adj. EBIT margin at top end of guidance range
• Reduced adj. operating expenses and certain one-time effects (R&D funding support improved profitability)
• Clear target to improve long-term profitability

4	1) Excluding M&A-related, transformation and share-based compensation costs as well as results from investments in associates and sale of businesses

Semiconductors segment: Significant sequential growth and improved profitability

All figures in EURm / % of revenues

Total revenues

813+8%

600648

Q3 2022

Q2 2023

Q3 2023

EBIT, EBIT margin (adj.)1)

7%		6%
	2%
61
		36
	13
Q3 2022	Q2 2023	Q3 2023

• Strong sequential growth driven by several end-markets, in particular strong Automotive business
• Automotive business reflects end of inventory correction, normalized order patterns, strong demand from China
• Weak industrial markets y-o-y due to macro pressure, medical also subdued, positive seasonality in Consumer
• Profitability improved, partially by higher volume, partially by one-time effect (catch-up of subsidies recognition), while still impacted by low production volumes and underutilization

5	1) Excluding M&A-related, transformation and share-based compensation costs as well as results from investments in associates and sale of businesses

Semiconductors: Positive sequential development across markets

Semiconductors segment, like-for-like Q3 development QoQ & YoY (excl. disposal effects), figures in EURm

QoQ revenue development				YoY revenue development
+9%					+2%	-26%	-35%
		260	+8%								285
+6%			272
238	187 202	255 260
		186	202
Q2 2023	175			186		Q3 2022
Q3 2023												Q3 2023

Automotive

I&M

Consumer

Automotive

I&M

Consumer

• Automotive: Strong sequential development, strong demand from China, with increasingly short notice orders
• I&M: Sequential increase on a relatively low basis, macro economic pressure in all verticals
• Consumer: Typical seasonal upswing

• Automotive: YoY growth, driven by improved inventory situation, normalized order pattern, content growth (e.g. EVs)
• I&M: YoY decline reflects overall weak macro economics in many areas, such as industrial lighting and horticulture
• Consumer: YoY reflects some big sockets approaching End-of- Life, before new designs will kick-in and weak macro economy

6 I&M denotes Industrial & Medical

Very strong design-win traction - Q3 update

Selected examples of design-wins

Colored ambient lighting - iRGB (Automotive)

ALIYOS™ LED-on-foil technology	2025+
(Automotive)

High Pixelated Forward Lighting (Eviyos) (Automotive)

4-side tileable Sensor IC for Computed Tomography (Medical)

5-yeardesign-win

volume to date

>100 m€

First OEM SOPs with applications based on

ALIYOS™

>250 m€

>50 m€

	RGB Laser		Laser Driver		Projector module
		ASIC		(w/ combiner optics)

Near to Eye Projection through a tailored light source portfolio

Emitter solutions with integratedInitial sales 2024 intelligence for optimization of system

performance and form factor

First design wins

7

Lamps & Systems: Solid profitability in spite of seasonality

All figures in EURm / % of revenues

Total revenues

400

120		+2%

251256

280

Q3 2022Q2 2023Q3 2023

Deconsolidation effects due to disposals

EBIT, EBIT margin (adj.)1)

	15%	14%
8%
	37	35
30
Q3 2022	Q2 2023	Q3 2023

• Development in line with expectations
• Typical seasonal effects in L&S automotive business (~80% of remaining L&S business)
• Substantially and structurally improved profitability reflecting positive disposal-related and portfolio streamlining effects

8	1) Excluding M&A-related, transformation and share-based compensation costs as well as results from investments in associates and sale of businesses

Mid-term target growth model re-confirmed: largest growth contribution from automotive, followed by mobile light sensors, then 8-inch sales & other contributors

Strong design win base enables meaningful growth from new core portfolio in Semiconductors

2023-2026 CAGR from new base

(predominantly driven by '25 and '26)

Monetizing	Ramping Kulim-2 / microLED
innovation:

				Automotive
				− Pixelated LED Forward Lighting
Exit of Semi	~300 - 400 m€			− Standard LED Forward Lighting
		−	LED Signaling
non-core business
			−	LED Ambient Lighting
				−	Lasers for Lidar
				− Specialty sensors (Driver Monitoring, Rain, Position, …)
		Semi		Industrial/Medical
	9% to 13%
		Broad based growth vectors:
				−	LED lighting Horticulture
				−	Lasers for projection
				− Specialty sensors for CT scanning
		L&S		− Emitters / Sensors for robotics
			−	Emitter / Sensors for diverse applications
		0 to 2%		Consumer
				Re-won and new sockets in portable Consumer devices:
	2023		2026	−	Ambient Light Sensing
				−	Proximity Sensing
	Lamps & Systems	Semiconductors	Non-core	−	1d/2d/3d ToF Camera Enhancement
9

GP strongly improved sequentially, adjusted OPEX slightly reduced

All figures in EURm / % of revenues

Gross profit, gross margin (adj.)1)

R&D expenses (adj.)1)

SG&A expenses (adj.)1)

29%28%29%

12%	12%
	11%
140

10%

11%11%

237 263

Q3 2022

Q2 2023

Q3 2023

							-9%
			105		96
Q3 2022	Q2 2023		Q3 2023

122 +5%

95 100

Q3 2022

Q2 2023

Q3 2023

• Strong sequential improvement driven by favorable product mix and improved loading q-o-q
• Continued to be impacted by meaningful underutilization effects in manufacturing

• Decrease in adj. operating expenses on absolute basis over last quarters
• R&D development reflects ongoing stream-lining and efficiency programs; vast majority of R&D in semi segment; Q3 R&D expenses in semi segment reduced by first tranche of IPCEI funding, partially a one time catch-up effect
• SG&A shows clear year-on-yearbase-line reduction; Q2 had favorable one- time effects; efforts to improve will continue

10 1) Excluding M&A-related, transformation and share-based compensation costs as well as results from investments in associates and sale of businesses