EQS-Adhoc

ams-OSRAM AG: to re-assess its microLED strategy, to record non-cash impairment charges, to adjust its mid-term structural revenue growth target to 6% to 8%, and to improve cash flow profile

EQS-Ad-hoc: ams-OSRAM AG / Key word(s): Change in Forecast ams-OSRAM AG: to re-assess its microLED strategy, to record non-cash impairment charges, to adjust its mid-term structural revenue growth target to 6% to 8%, and to improve cash flow profile 28-Feb-2024 / 21:24 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange ------------------------------ ams OSRAM to re-assess its microLED strategy, to record non-cash impairment charges, to adjust its mid-term structural revenue growth target to 6% to 8%, and to improve cash flow profile

 

• A cornerstone project underpinning its microLED strategy got unexpectedly cancelled today, triggering the company to re-assess its microLED strategy.
• Non-cash impairment charges of EUR 600 to 900 million are expected based on a preliminary first estimate.
• FY/24: As a first estimate, the company expects around EUR 30 to 50 million lower adjusted EBIT for FY2024 due to lower capitalization of R&D expenses and lower subsidies from government funding schemes. The company will consider additional cost improvements on top of its known Re-Establish-the-Base program to lessen the impact.
• Q1/24: No change to first quarter 2024 revenue (EUR 800 to 900 million) guidance
• Q1/24: No change to the adj. EBIT margin range of 4% to 7% expected, but profitability will be impacted by lower capitalization of R&D expenses and lower subsidies within this range. 
• The cash flow profile of the company is expected to be positively impacted in the next 24 months (lower CAPEX amongst other effects).
• Mid-term structural growth model slightly adjusted to 6% to 8% revenue CAGR from its new 2023 base excluding the non-core semiconductor portfolio and the Lamps & Systems related divestiture in Q1/2023.