Ams Osram Ag Unsp/Adr

Ladies and gentlemen, welcome to the conference call on third quarter 2025 results. I am Matilde, the course call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. Webcast viewers may submit their questions in writing via the related field. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Juergen Rebel, Head of Investor Relations. Please go ahead.

Good morning, everyone. This is Juergen speaking. We welcome you to today's call on third quarter results of fiscal year 2025. Aldo, our CEO, will comment on business and strategy. Rainer, our CFO, will focus on financials. We are referring to the Q3 earnings call presentation that you can find on our website. There, you'll also find further material such as the full comprehensive IR presentation. Aldo, please let us have your thoughts on Q3.

Thank you, Jurgen, and good morning also from my side. Overall, I would say a good quarter. Our strategic focus is paying off. We delivered strong cash flow and significant growth in the core portfolio on a like-for-like basis. Profitability was better than the previous quarter, also supported by a one-off. Re-establish the base savings continue to be ahead of plan. And I'm now on page three, looking at the financial performance of the group. Revenues came in at 853 million euro, above the midpoint of the guidance. We saw almost double-digit percentage improvement in our semiconductor business. In the outdoor lamps aftermarket business, we had double-digit seasonal upswing. The weaker US dollar cost us 20 million euro top line compared to the previous quarter. Year-over-year revenues are down a bit with 3%. This is entirely due to the weaker US dollar. Note the 7 cents difference in the average US euro-US dollar exchange rate, which equals approximately 35 million euro top line. If we truly look at the like-for-like comparison based on today's core portfolio at constant currencies, we have grown by about 6% year-over-year. This includes the traditional outer lamps business. The semiconductor core business, against which we measure our growth, grew approximately 9% on a comparable basis, a really good result in the current market conditions. It clearly shows that our portfolio choices are paying off. Profitability. Adjusted EBDA margin improved quarter over quarter and year over year by almost one percentage point to 19.5%. In Euro terms, adjusted EBDA improved by 21 million Euro. Within that number, we have a profit of a bit more than 10 million Euro from the sale of some manufacturing assets in a Singapore production facility. Now, quickly on the segments. Page 4, a look at the traditional hydrogen lamp business, a classic seasonal upswing. We saw a steep 13% quarter-over-quarter increase in revenues driven by the aftermarket season. The darker months in the Northern Hemisphere make drivers replace their broken lights in their cars more frequently. Nothing particular to report on specialty lamps for industrial entertainment applications. The business remained at a similar level as last quarter, with approximately €40 million of revenues. We sold this business segment to Ushio as part of our accelerated deleveraging plan, as we communicated last quarter. Closing is expected around end of first quarter 26. Adjusted EBITDA stayed almost flat. Why? If revenues were up almost €25 million, the gross profit fall-through from higher volume was evened up by a meaningful reduction of inventories. Now on semis. I'm on slide 5, first business unit OS. A sequential increase in OptoSemis with 6% revenue improvement, €365 million compared to €344 in the previous quarter. The increase was mainly driven by automotive, but also by the seasonal peak of the horticulture business. The upswing could have been higher if it wasn't for the negative impact on the top line of the weaker US dollar. Coming to profitability, adjusted EBITDA improved by €3 million to €82 million. At first glance, you might have expected a higher fall through from 20 million more top line. However, the increase was balanced also here by inventory reductions and the absence of one-time effects that were supportive in Q2, such as IPSE funding catch-up. In the end, adjusted EBITDA margins stayed almost flat at 22.6%. Now, sensors and ASICs on slide six, an encouraging seasonal jump in revenues by 13% to 271 million euros. Consumer products were in high demand. Android business was okay. Products we basically discontinued still saw some further orders that lived longer as often. Little changes in demand for industrial and medical products. Year over year, business grew by 2%, mainly driven by the new sensor products, which are more than compensating for the revenue loss from the phased-out non-core portfolio and the top-line impact from the weaker US dollar. Adjusted EBITDA jumped to 64 million euro. However, I mentioned earlier that more than 10 million euro win-for-profit from selling manufacturing equipment was included there. Now, looking at the semi-end market in summary, and we are on slide 7 here. Sequentially, 9% up, and year-over-year, 2% down. If we exclude the non-core portfolio that we discontinued last year, the semi-core business grew by 9%, year-on-year at constant currencies, well in line with our semiconductor growth model and higher than last quarter. First, automotive. LED inventory correction has ended, but no significant restocking in sight. We even hear of some customers who want to reduce their inventory reach even further. Book-to-bill hovered around one throughout the quarter. Nevertheless, we saw a slight sequential increase in revenues of 4%. The uncertainty in the supply chain persists, we see a lot of short-term ordering, which is now often below normal lead times. Fulfillment channel inventories went further down. We are now between seven and eight weeks in the old days. Eight to ten weeks were considered healthy and normal. Second, industrial and medical. In line with the slow recovery of the overall market, we saw a sequential improvement of 2%. However, we're still below last year's level, and ignoring the weaker US dollar, maybe roughly at the same level. As always, we have to look at the verticals individually. Horticulture revenues at the seasonal peak. Professional lighting unchanged. The amount of initial automation is improving only gradually. Same is true for medical. When we look at the channel, same picture as last quarter. Europe and US, relatively stronger than China. Third, consumer. A steep seasonal increase of 22% compared to Q2. Our main business is sensors for smartphones and wearables. Year over year, we see the impact of the weaker USD. A slight decline is entirely due to ethics. Business-wise, our new sensor products more than compensate for the phased out of our products. Now let's talk about future business. I'm on slide eight. Design wins are underpinning our mid-term growth model incentives. Traction in the market continues unabated in the third quarter. We are well on track reaching again accumulated lifetime value of 5 billion euro of new business for the full calendar year. We landed about 800 projects in the September quarter across all verticals. This pushes the total to already 4 billion for the first nine months. A few wins that we are very proud of are sticking out. First, in automotive. With our industry-leading intelligent RGBI interior lighting solutions, we secured another design win at the leading Chinese OEM. And on top of that, also a large design win for a prestigious car platform at the European Premium OEM. Second, consumer. Our spectral and proximity sensors are the best you can get. This once again convinced leading customers the design wins are worth a couple of hundred million euros. With that, let us look at some of our recent advances when it comes to differentiating technology platforms. Now on slide nine. We do spend a lot of R&D money as we continue to believe in exciting growth opportunities. One part of our R&D is dedicated to mastering the cost pressure in more established technologies by creating cost performance optimized platforms. The other part of R&D is focused on differentiating technologies, especially for new applications that might see a growth inflection in the future. We're also making sure that our customers benefit from an appropriate IP safety for those innovations. For this, we signed a comprehensive cross-license agreement with Nijia, covering thousands of patents-protected innovations in LED and laser technologies. The new agreement also covers sophisticated LED packages and also includes metric headlamps, as an example. As such, we are the right partner for our customers, holding a truly unique IP position in the industry. On slide 9, you get an impression of our leadership in infrared emitter technologies that are used in a multitude of applications. We are speaking of Algas material systems that provide LED and laser light between 808 and 1103 nanometers, just beyond what the human eye can see, the so-called near infrared. Our LEDs boast industry-leading wall plug efficiency and red glow suppression. Our laser diodes pose industry-leading efficiency in optical output power. Together with high-quality, cost-effective standard packages, these components are ideally suited for a multitude of applications that deliver or raise today a revenue contribution in the triple-digit million territory. See the infrared LEDs in the car for in-cabin sensing, in consumer applications, or in drones, among many others. Our lasers are fairly established in material treatment and LiDAR, but these properties also make them ideally suited for future defense applications, such as drone defense, or even for more visionary applications one day, like nuclear fusion, laser-based nuclear fusion, a technology that could harness the energy generation process of our sun. We think there's much more to come here on this technology platform. Now let's switch to the sensor side of things on slide 10. We recently introduced the industry-leading two-dimensional direct time-of-flight sensor platform. Why direct? The sensor measures the time a photon travels from the object and back and calculates the distance. Pretty fancy. I'm very proud of our engineers who delivered industry-leading sensors that feature twice the frame rate at the same resolution as competitor devices, or twice the resolution at the same frame rate, whatever you need in your application. You can use this performance for gesture and object recognition, but also for 3D distance measurement. It also enables edge AI sensing applications, for example in smartphones. You see the principle in the lower left corner. When an image is enhanced with the 3D dimensional depth information from the sensor, you can place objects such as furniture in an environment, completely virtually. Just to give you an example here. We see applications for this sensor technology not only in smartphones, but also in building automation, home appliances, robot drones, consumer electronics, you name it. Completing our technology product tour this quarter, I'm on slide 11 now, we have the leading spectral sensing platform in the industry. Here you'll see Honor's latest flagship model, the Magic 8. A high-end premium smartphone with four cameras on the world-facing side, our sensors allow for eye fatigue protection and professional grade color accuracy for an enhanced user experience. With this, let us move to bottom line products. We established the base, continues to be a great success as it has been so instrumental in mastering many of the headwinds to our bottom line, especially when it comes to gold price this year. We're on slide 12 here. By the end of September, we have pocketed approximately €185 million of the implemented run rate savings. Another €25 million during the last quarter alone. Now, it's time for more details on the financials, and Rainer, please tell us about the latest progress.