OSRAM Licht AG
OSRAM Licht AG: Osram resolves on the one hand extensive future investments including the construction of a new LED chip plant on the other hand a share buyback and provides outlook for 2016
OSRAM Licht AG / Key word(s): Strategic Company Decision/Share Buyback 10.11.2015 18:05 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Munich, November 10, 2015 Against the background of the ongoing change in the lighting market, Osram intends to invest a total of around EUR3 billion until and including fiscal 2020 as part of an innovation and growth initiative. Thereof, a total of around EUR2 billion is to be spent on research and development in order to further strengthen Osram's claim for technological leadership and to expand into new markets. Approximately EUR 1 billion should be invested into a new LED chip plant in Malaysia, additionally. This was resolved by the managing board on November 4, 2015. The supervisory board approved this proposal at its meeting on November 10, 2015. In doing so, it is intended to unlock additional growth potential, in both the dynamic, technology-driven general lighting markets as well as in the lucrative niche markets, where Osram is already in a good position today. In a first step, around EUR370 million will be invested in the first construction stage of the new LED chip plant. As part of the innovation and growth initiative, Osram has set the following targets to be achieved in fiscal 2020 (excluding the general lighting lamps business): - Revenue of between EUR5 billion and EUR5.5 billion. On a pro-forma basis, excluding the general lighting lamps business, this equals an average annual growth rate (CAGR) of about 8 percent. - EBITDA of between EUR0.9 billion and EUR1 billion. - Earnings per share of around EUR5. In particular, as a result of rising expenses attributable to the innovation and growth initiative as well as a higher cost base due to the carve-out of the lamps business, the managing board expects the following developments for fiscal 2016, based on the current group of consolidation (including the general lighting lamps business): - Comparable revenue slightly below preliminary prior year level of EUR5.6 billion. - Adjusted EBITA margin substantially below the preliminary fiscal 2015 level of 10.2%, primarily due to the innovation and growth initiative as well as due to structural effects associated with the carve-out of the general lighting lamps business and the continuing transformation. - Sharp rise expected in net income and the return on capital employed (ROCE) due to the gain on the sale of the equity investment in Foshan Electrical and Lighting Co., Ltd. (FELCO). Preliminary prior year levels were EUR171 million and 8.2%. - Free cash flow expected to be a negative low to mid triple-digit million euro figure due to a sharp rise in capital expenditure and special items such as the planned additional funding for the pension plans. The preliminary free cash flow of fiscal 2015 was at EUR299 million. - A dividend for fiscal year 2016 of at least nominal equal level as for fiscal 2015 (EUR0.90 per share), against the background of an expected positive midterm development of Osram. In today's meeting, the supervisory board of Osram Licht AG also approved the managing board's resolution of November 2, 2015 to execute a share buyback with a volume of up to 9.81% of the company's capital stock and up to a maximum of EUR500 million. The buyback is expected to start in the first calendar quarter of 2016 and will then be executed within twelve to 18 months. The shares can be used for all purposes for which the annual shareholders meeting, as of June 14, 2013, granted permission. OSRAM Licht AG Marcel-Breuer-Straße 6 80807 Munich Germany --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: The preliminary and unaudited financials for the fourth quarter and for fiscal 2015 will be published on the company's website (www.osram.de/ir) promptly. 10.11.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: OSRAM Licht AG Marcel-Breuer-Straße 6 80807 München Germany Phone: +49 89 6213-0 Fax: +49 89 6213-3629 E-mail: ir@osram.com Internet: www.osram-licht.ag ISIN: DE000LED4000 WKN: LED400 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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