ams-OSRAM AG Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Janardan Menon - Jefferies - Analyst : Hi. Good morning. Thanks for taking the question. My first question is just on the cyclical aspects of both the automotive and industrial businesses. In the last few quarters, you have alluded to the fact that you are seeing some cyclical weakness, inventory correction, et cetera, in those segments. And some of the semiconductor peers selling into automotive industrial like TI and SDM have talked about a cyclical improvement, especially in industrial but also in European automotive. Whereas your comments are very much on the product ramps and seasonality in your outlook statement. So I'm just saying are you seeing any kind of a cyclical upturn? And if not, why do you think that you're not seeing that, especially in the industrial and automotive segments whereas others are.

Question: Janardan Menon - Jefferies - Analyst : So in that context, your guidance for a low double digit increase second half versus first half, would you say that that is conservative with some uncertainty of the tariffs built in or is it as you see your order book right now? How do you describe that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Janardan Menon - Jefferies - Analyst : And my second question is on the adjusted EBITDA guidance for 18.5% in Q2. Just to peel that back a bit, what are the parts there? Your lamps and systems did extremely well in Q1, will that be reducing in Q2 and therefore the semiconductor side is showing most of that increase and how much of that increase will be gross margin versus any kind of OpEx reduction in Q2. Thanks.

Question: Janardan Menon - Jefferies - Analyst : So it should -- based on current visibility continue to improve through Q3 and Q4.

Question: Robert Sanders - Deutsche Bank - Analyst : Yeah. Hi. Good morning. Maybe if you could just clarify a bit more about the strategic options and the EUR500 million, how you get to that number? And would you be open to, for example, a JV of the lamps business? What kind of options are you considering? How dramatic could it be to your portfolio? Thanks.

Question: Robert Sanders - Deutsche Bank - Analyst : Got it. And in terms of your lead consumer customer, can you just remind us what the content step up is? Your main sense of competitor is talking about a $200 million step up in the second half from content gain. I was just wondering if you could just remind us what you expect for the next platform. Thank you.

Question: Robert Sanders - Deutsche Bank - Analyst : Okay. So you're syndicating an existing design across the portfolio, not gaining a new bit of content in the next platform.

Question: Sebastien Sztabowicz - Kepler Cheuvreux - Analyst : Yeah. Hello, everyone, and thanks for taking my question. Your book to build has improved quite nicely during the quarter. Do you believe there is a little bit of pulling orders into the book to build today because of the coming tariffs. And the second question, you are mentioning some inventory adjustment in optoelectronics in automotive. Do you see any other correction on inventories still ongoing in your other businesses or you believe it is almost completed right now and you are back to normal level of inventory in I&M and the consumer business. Thank you.

Question: Harry Blakelock - UBS - Analyst : Good morning. Thanks for taking my question. I was wondering whether you could help run through the key elements driving free cash flow to over EUR100 million for the full year. I assume a decent portion is dropped through from the revenue recovery and more from Re-establish the Base, but then are there any significant working capital, CapEx, interest changes or anything else that you would flag that you're expecting?

Question: Harry Blakelock - UBS - Analyst : And then second question just on the cost program. I know you're obviously executing on it well. I know in the past, you said you wouldn't look to expand it even further. But could that change in a scenario where tariffs really start to impact the macro backdrop?

Question: Sandeep Deshpande - JPMorgan - Analyst : Yeah. Hi. Thanks for letting me on. Two questions if I may. Firstly, my question is on the tariffs itself. I mean, do you have any supply chain related issues on the tariffs that will impact your margins in the next few quarters because of tariffs that are retaliatory tariffs or any tariffs in the supply chain. And then secondly, my question is on this EUR500 million-plus that you plan to generate through disposals, are you considering in terms of disposals significant earnings generators that you will dispose because you now think that you want to take the business in a different way. So will there be a structural change in your business, you're thinking associated with potential disposals?

Question: Reto Huber - Research Partners AG - Analyst : Good morning, gentlemen. Thank you for taking my questions. I have two, housekeeping related ones. The first one is what is the euro amount of assessments you have included in your guidance for EBITDA. And then secondly, how much sales with your automotive industry is in the lamps and systems segment in the first quarter?

Question: Reto Huber - Research Partners AG - Analyst : For the Q2, please, yeah. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Reto Huber - Research Partners AG - Analyst : Yeah. The delta between reported -- so IFRS EBITDA and adjusted EBITDA in the second quarter.

Question: Reto Huber - Research Partners AG - Analyst : Okay. So days like this and also for the coming quarters after Q2.