Monetizing Innovation and Financial Reconciliation
Focus on profitability and on monetizing innovation, benefitting from
structural growth and our strong position in our key markets
Strategy & business outlook reassessed by new management team
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Key challenges of previous business model
Strong focus on disruptive, custom technologies for high
volume opportunities in the Consumer device arena is risky
when it comes to industrialization, execution and market
adoption
'Home-made' execution issues, partly due to unclear
ownership in current matrix organization
Uptake of new markets or adoption of new, disruptive
technologies have not always happened as quickly as
planned
De-prioritization of some structural growth opportunities in
sticky core markets such as Automotive, Industrial and
Medical
High sensitivity to macro-economic shocks such as
pandemic and geopolitical crises
Adjusted business model
Focus semiconductor portfolio on differentiated, intelligent sensors and
emitter components
Expand leading positions in relevant Automotive, Industrial, Medical
markets with strengthened investments into structural growth opportunities
Exit non-core semiconductor businesses with revenue run-rate of EUR
300 400 million
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Continue to pursue specific opportunities in Consumer markets where we
sustainably differentiate
Invest selectively in disruptive innovation such as microLED technology
'Re-establish the Base' program adjusting semiconductor portfolio,
company over-head, infrastructure and organization to new adjusted
business model
Streamline organizational set-up within Semiconductor segment by going
from 3 to 2 Business Units with full end-to-end ownership & responsibility
Portfolio streamlining and efficiency measures target savings of EUR 150
million by end-of-2025 and improving Cash Flow of the Group
Laying the foundation for 6 – 10% revenue CAGR from new base and -15% adj. EBIT by 2026
amu OSRAMView entire presentation