ams OSRAM Delivers Healthy Full Year Results in 2021

ams OSRAM reported full year and fourth quarter 2021 group financial results.

Full year group revenues were $5,780 million, up 44% compared to full year 2020, particularly driven by consolidation effects compared with the first half of 2020. Fourth quarter group revenues were $1,410 million, down 5% sequentially compared to the third quarter 2021 and down 13% compared to same quarter 2020, also reflecting deconsolidation effects.

Operating cash flow for full year 2021 was $908 million while group free cash flow reached $553 million. Group net debt was $2,059 million on 31 Dec. 31, 2021, translating into group leverage of 1.9x net debt/adjusted1 EBITDA.

“Our business delivered healthy full year results and a very solid performance in the fourth quarter with adjusted profitability for the quarter at the midpoint of our guidance range,” said Alexander Everke, CEO of ams OSRAM. “We are pleased to report a positive first fiscal year as a combined company with revenues of $5,780 million (€5,038 million) driven by a strong performance of our automotive business and despite negative effects in our consumer business, as previously stated. In the ending quarter, our automotive business performed well against the backdrop of ongoing supply chain imbalances and OEM production reductions while our consumer, industrial and medical businesses contributed attractively in line with expectations.”

“Since March 2021 we have been very successful with the integration of OSRAM realizing major steps and achieving our targeted milestones across business areas,” Everke added. “On our path to re-align and shape our future portfolio we have announced three disposals, dissolved the joint venture between OSRAM and Continental, and are moving ahead with the remaining disposals which include the business related to the former joint venture.

“Market imbalances have persisted through the second half of 2021, particularly in the automotive market, and created revenue delays in automotive supply chains as a result of reductions in OEM production,” Everke concluded. “From today’s point of view, we expect this situation to continue to influence our market for a considerable period this year. Meanwhile, we are ensuring capacity availability on our side and are ready to serve recovering customer demand once the supply chain and production volatilities start to subside. Supply chain imbalances also affected certain areas of our consumer business last year.”

The Semiconductors segment contributed significantly to group results last year providing 65% of full year revenues together with a solid adjusted operating (EBIT) margin of 14%. Similarly, in the fourth quarter of 2021 the Semiconductors segment contributed 64% of revenues with an attractive adjusted operating (EBIT) margin of 12%. The segment’s automotive business was successful as the global leader in automotive LED lighting, serving exterior and interior applications with a focus on performance and differentiation.

The Lamps & Systems (L&S) segment showed a good performance last year contributing 35% of full year revenues. The L&S automotive business including legacy traditional lighting developed positively in light of the industry environment with full year results reflecting attractive demand across channels and lines.