Why Does OSRAM Focus On The Following Areas

- Sep 26, 2018 -

Why does OSRAM focus on the following areas?

On the 18th, Osram CEO Olaf Berlien said at the "Osram Opto Semiconductors Market and Technology Day" held in Munich: "Osram is in a very advantageous position in terms of technology and trends in terms of strategy and finance. We "Becoming the leading photonics champion", "Our optoelectronic semiconductor division is gradually becoming the technical pillar of our strategic development."

OSRAM has been promoting attention to the fast-growing high-tech market. In addition to intelligent lighting technology, future developments will focus on markets such as visualization, sensing and processing, where the biological effects of light on people and plants will be the main focus. OSRAM is launching its product portfolio in this direction to enhance its image as a high-tech supplier. At present, LED products have accounted for about 70% of consolidated sales. On this basis, OSRAM hopes to develop into a champion of photonics.

The portfolio of OSRAM Opto Semiconductors' business units enables innovative applications in areas such as autonomous driving, horticulture and building control. In the medium to long term, these future areas offer tremendous growth opportunities throughout the industry cycle. Currently, due to currency fluctuations and uncertainty in the automotive industry, the growth rate of the sector is temporarily lower than in previous years.

From 2020, OSRAM Opto Semiconductors expects a fixed-currency income growth rate of approximately 10% and an adjusted EBITDA margin of between 23% and 29%. OSRAM CEO Olaf Berlien said, “In the long run, our outlook is still good. Although we expect Opto Semiconductors to experience some slowdown due to market impact in the near future, there is limited visibility into market development in the short term”. For FY 2018/19, planned revenue growth is expected to be between 5% and 10%, with adjusted EBITDA margins ranging from 22% to 26%.

New photonics solutions can drive growth, such as higher-resolution, non-glare pixel high-beams, and energy-efficient LED gardening lights that allow plants to grow indoors and increase yield and vegetable quality. Technology drivers include further miniaturization of LEDs and innovative 3D sensor solutions such as face recognition in smartphones.

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