EANS-Adhoc: ams AG / ams reports positive full year group results and strong full year group cash flow; record full year revenues and earnings for ams business; fourth quarter ams revenues towards top end EAE

Dienstag, 09. Februar 2021 07:02
  Disclosed inside information pursuant to article 17 Market Abuse Regulation
  (MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
  The issuer is responsible for the content of this announcement.

Selected financial information for the fourth quarter and full year 2020

Quarterly Report

Premstaetten - (PR title cont'd) ... of guidance on consumer strength, ams adj.
operating profitability at top end of guidance; improved OSRAM outlook,
preparing to implement DPLTA; first quarter ams expected revenues up year-on-
year at midpoint despite seasonality

Premstaetten, Austria (9 February 2021) -- ams (SIX: AMS), a leading worldwide
supplier of high performance sensor solutions, reports positive full year 2020
group results with strong group cash flow and record full year 2020 revenues and
earnings for its ams business. In spite of Covid-19, 2020 was the best year in
the history of the ams business as revenues of USD 2,291 million showed year-on-
year growth together with an increase in full year adjusted operating result.
This robust performance was driven by the ams consumer business. For the fourth
quarter, the ams business saw strong revenues and adjusted operating margin
towards and at the top end of the guidance range, recording revenues of USD 681
million and an adjusted result from operations (EBIT) of 27% of revenues or USD
182 million. Firm consumer demand and a strong operational performance drove
these fourth quarter results. For the first quarter 2021, ams expects its ams
business to grow year-on-year at the midpoint of expectations despite typical
seasonal effects with expected revenues of USD 500-540 million.

The financial results below refer to the ams group and include the financial
results of OSRAM Licht AG (OSRAM) which ams has been consolidating as the
majority shareholder since 1 July 2020. Full year 2020 group revenues were USD
4,169 million, up 86% compared to 2019 given consolidation effects. Fourth
quarter group revenues were USD 1,679 million, up 16% sequentially from the
third quarter and up 138% compared to the same quarter 2019 given consolidation
effects. Adjusted[1] group gross margin for 2020 was 33% while adjusted1 group
gross margin for the fourth quarter was 35% compared to 41% and 45% respectively
in 2019. IFRS reported group gross margin for 2020 was 30% and 32% for the
fourth quarter compared to 38% and 42% respectively in 2019.

The adjusted[1] group result from operations (EBIT) was USD 550 million or 13%
of revenues for 2020 compared to USD 468 million or 21% for 2019 and USD 280
million or 17% of revenues for the fourth quarter and USD 200 million or 28% for
the fourth quarter 2019 (including adjustments: USD 164 million or 4% of
revenues for 2020 and USD 155 million or 9% of revenues for the fourth quarter).
Adjusted[1] group net income was USD 282 million for 2020 compared to USD 434
million for 2019 and USD 180 million for the fourth quarter and USD 155 million
for the fourth quarter 2019 (including adjustments: USD -104 million for 2020
and USD 52 million for the fourth quarter).

Adjusted[1] basic/diluted earnings per share for 2020 were CHF 1.13/0.98 or USD
1.26/1.09 based on 215,189,478/226,963,78 shares or CHF -0.45/-0.52 or USD -
0.50/-0.57 including adjustments (2019: CHF 5.02/4.90 or USD 5.38/5.24 based on
80,261,853/81,864,338 shares; all weighted average). Adjusted[1] basic/diluted
earnings per share for the fourth quarter were CHF 0.59/0.46 or USD 0.66/0.51
based on 260,696,784/294,130,349 shares or CHF 0.18/0.10 or USD 0.20/0.11
including adjustments (fourth quarter 2019: CHF 1.74/1.57 or USD 1.89/1.71 based
on 81,104,760/86,007,105 shares; all weighted average).

Group operating cash flow was very strong at USD 835 million for 2020 and USD
384 million for the fourth quarter. Group free cash flow was USD 624 million for
2020 and USD 319 million for the fourth quarter. Net debt for the group stood at
USD 2,030 million on 31 December 2020, this corres­ponds to a group leverage of
1.7 net debt/adjusted1 EBITDA, ahead of ams' expectations. Cash and cash
equivalents were USD 1,900 million on 31 December 2020 reflecting ams' recent
convertible bond issue and cash flow generation in the group compared to USD 595
million at year-end 2019.

ams recorded robust overall group results in 2020 despite the global impact of
Covid-19 concluding the year with a very positive fourth quarter. The group's
ams business achieved historic records for revenues and adjusted operating
result in spite of the pandemic, showing full year growth driven by its consumer
business. In the fourth quarter, the ams business saw the expected strong
sequential growth as firm consumer demand drove revenues towards the top end of
the guidance range. Adjusted operating profitability for the ams business was
strong at the top end of the guidance range in the fourth quarter despite some
currency headwinds.

ams welcomes the improving performance of the OSRAM business in the fourth
quarter 2020, which contributed positively to group results, and the improved
full fiscal year financial outlook for the OSRAM business. ams appreciates the
underlying expected positive development of end market demand for OSRAM which
confirms OSRAM's leadership position in the global light emitter market and the
strength of its technologies. ams looks forward to fully harnessing these
advantages in the coming years through the planned full integration of ams and
OSRAM. As a majority-owned independent listed subsidiary of ams OSRAM is
included as a separate reporting segment in the group financial information.

ams is pleased to see that the expected balanced revenue profile for the group
is already evident, particularly in light of robust consumer demand. Non-
consumer markets accounted for 63% and the consumer market for 37% of group
revenues in the second half of 2020 compared to 13% and 87% in the second half
2019, respectively. Even in the full year group results which exclude the OSRAM
business for the first half of 2020, non-consumer markets made up 52% and the
consumer market 48% of group revenues compared to 18% and 82% in 2019,

ams is preparing to implement the domination and profit and loss transfer
agreement (DPLTA) for OSRAM which OSRAM shareholders approved in the fourth
quarter. In December, an action was brought against OSRAM's shareholders'
resolution approving the DPLTA upholding its registration. OSRAM has in the
meantime filed a court motion to remove the blocking as part of a specific legal
procedure. ams therefore expects to be able to implement the DPLTA in the
foreseeable future. Based on the DPLTA ams will be able to drive the integration
of both companies in the most efficient manner. ams plans to create a strongly
profitable combined company within the next years given the complementary
strengths of ams and OSRAM. Through several successful financing transactions in
2020 ams has secured comprehensive long-term funding to implement the DPLTA as
well as subsequent steps to realize the full integration of OSRAM. ams'
financial flexibility going forward is further supported by the expected ongoing
cash flow generation for the group. OSRAM has announced the intention to appoint
Ingo Bank as CEO of OSRAM in the current quarter while Thomas Stockmeier has
been appointed Chairman of the OSRAM Supervisory Board (SB). Four seats on the
OSRAM SB have changed since the closing and ams expects a fifth seat to change
in the current quarter.

The group's ams business is a worldwide leader in optical sensing based on its
broad portfolio of high performance solutions. The ams consumer business is a
major supplier of sensing solutions serving global consumer OEMs. The ams
consumer business performed strongly in 2020 and was an important driver for the
group despite the negative impact of Covid-19. This positive development
reflected ongoing robust consumer demand which continued in the fourth quarter.
Focused on innovation, the ams business addresses 3D sensing including VCSEL
illumination and NIR image sensing, display management and behind-OLED (BOLED)
sensing, ultra-small scale proximity sensing, spectral and bio-sensing, and
further optical applications. The ams business continued extensive R&D last year
and brought numerous new solutions to the market.

The ams business is a major player in 3D sensing combining extensive IP and
system expertise. The industry-leading platform serves all 3D architectures,
structured light (SL), time-of-flight (iToF and dToF), and active stereo vision
(ASV). ams shipped substantial 3D sensing volumes to leading consumer OEMs in
2020 and continues to build its position in the Android market. ams is a leader
in illumination for mobile device 3D sensing, based on its optics and VCSEL
technologies, and drives the evolution of 3D sensing for more differentiated
use. As a strategic focus, the ams business is creating 3D system solutions
based on its expanded portfolio including NIR image and SPAD sensing,
algorithms, and system and application software.

In world-facing 3D, the ams business continued to be successful in iToF systems
illumination for camera enhancement last year. Taking 3D sensing forward for
complex applications, the ams business focuses on development of 3D dToF, an
advanced architecture for AR-oriented and world-facing functions. 3D dToF and AR
scanning functions will create an attractive new 3D market based on customer
feedback. ams' broad 3D portfolio and industry-leading system capabilities offer
an unmatched platform to drive innovation in 3D dToF systems and address
attractive opportunities in this market. The ams business is seeing good
progress in developing its full 3D dToF solution for high performance which
integrates VCSEL illumination, optics, high resolution SPAD sensing, algorithms
and software. In other dToF, ams' 1D dToF solutions are successful in camera-
enhancing functions at several OEMs and the ams business sees further market
penetration for its 1D dToF technology.

The ams consumer business is also focused on BOLED 3D technology which will
offer a major innovation in front-facing 3D for face authentication. BOLED 3D
will allow to move 3D sensing behind the display making it invisible and
eliminate bezel-placed components. Its strong capabilities in BOLED light
sensing and its deep 3D system expertise drive the ams business' leading
position in this emerging area. The ams business is progressing in its
development of BOLED 3D ASV along a technical path to realize a system solution
for the highly challenging technology. The system comprises VCSEL illumination,
NIR image sensing, algorithms and related software. The ams business is starting
to engage with leading OLED vendors to address key technology aspects in order
to commercialize the technology for the next years. As a following step, ams
also plans to explore BOLED 3D architectures that support SL.

The group's ams business has a leading position in display management for
consumer devices shipping high performance ambient light and proximity sensing
in high volume last year. ams' innovative BOLED solutions for invisible sensing
behind the OLED display continued their success with growing adoption at leading
Android OEMs. A leader in ultra-small scale proximity sensors, the business is
successful in the wireless earbud market. Camera-enhancing functions automatic
white balancing and wide-range flicker detection for higher picture quality saw
growing adoption at smartphone OEMs last year. As a leading supplier of active
noise cancellation in the growing ear- and headphone market ams added new
customers last year.

The ams non-consumer business was significantly impacted by the effects of
Covid-19 last year. This meaningfully weaker development compared to 2019 began
to improve in the second half amid signs of a market recovery. The ams
automotive business showed an overall subdued performance for 2020 given the
strong impact of the pandemic on global automotive demand. The ams business
continued to improve in the fourth quarter after a very weak first half as order
trends and production volumes developed positively. The ams business focuses on
safety, driver assistance/autonomous driving, position sensing, and chassis
control for Tier 1 suppliers and OEMs globally. The ams business has a strong
position in 3D LIDAR, a core automotive and 3D sensing technology enabling the
evolution to automated and autonomous driving. ams' automotive-qualified high
power VCSEL arrays drive illumination in advanced LIDAR architectures.
Continuing significant R&D, the ams business has LIDAR engagements at several
system vendors, including in North America, and is successful in its partnership
with leading LIDAR integrator IBEO. The business is also building a strong
position in optical in-cabin sensing where comfort and safety functions such as
driver or seat monitoring are seeing significant traction. The ams industrial
business performed in line with muted expectations in 2020 as the effects of
Covid-19 reduced industrial investment globally. Benefitting from its leading
position in industrial automation, HABA, industrial imaging, and related
markets, the ams business improved in the second half compared to a weak first
half as demand trends indicate a recovery on a regional basis. An industry
leader in global shutter image sensing, ams' imaging expertise drives ams' 3D
system capabilities including 3D ASV.

The ams medical business recorded an overall positive performance in 2020
against the backdrop of Covid-19. ams confirmed its leading position in medical
imaging including computed tomography (CT), digital X-ray, and microcamera
endoscopy last year. The ams business benefitted from CT demand related to
Covid-19 and continued its success in the growing Asian CT market. Driven by
Covid-19, ams introduced a very innovative spectral sensing solution for medical
lateral flow tests (LFT), an established in vitro diagnostics method for viruses
and bacteria. In an integrated test kit, the solution analyzes LFT results with
high accuracy for fast robust diagnostics at the point-of-care. European partner
Senova has started early production of a Covid-19 antibody LFT in the quarter
and a North American partner is in late stage development of a very sensitive
Covid-19 antigen test solution. The ams business is pursuing further
opportunities in Europe and North America and expects digital LFT solutions to
offer growth opportunities in the large in vitro test market. In operations for
its ams business, ams safeguarded volume production across locations last year
despite significant challenges resulting from Covid-19. In spite of the pandemic
the ams business was able to fulfil customer demand throughout the year and
achieved high production efficiency and yields in its operations.

ams' financial outlook for the first quarter 2021 only comprises the ams
business given the financial guidance horizon of OSRAM, as previously mentioned.
ams expects its ams business to grow year-on-year in the first quarter at the
midpoint of expectations in spite of typical seasonality. Based on available
information and the definition above, ams expects first quarter ams business
revenues of USD 500-540 million, up 4% year-on-year at the midpoint. ams expects
an adjusted operating (EBIT) margin for the ams business of 20-22% in the first
quarter. The ams consumer business is expected to reflect seasonal volume
effects while the ams non-consumer business is expected to align with respective
end market dynamics. The expectations above assume no further unforeseen
negative effects from the Covid-19 pandemic that would result in a meaningful
negative impact on ams' business.

Additional financial information for full year 2020 and the fourth quarter 2020
is available on the company website at https://ams.com/financial-reports [https:

About ams
ams is a global leader in the design and manufacture of advanced sensor
solutions. Our mission is to shape the world with sensor solutions by providing
a seamless interface between humans and technology.
ams' high-performance sensor solutions drive applications requiring small form
factor, low power, highest sensitivity and multi-sensor integration. Products
include sensor solutions, sensor ICs, interfaces and related software for
consumer, communications, industrial, medical, and automotive markets.
With headquarters in Austria, ams employs about 8,500 people globally and serves
more than 8,000 customers worldwide. ams is listed on the SIX Swiss stock
exchange (ticker symbol: AMS). More information about ams can be found at https:
//ams.com [https://ams.com/]

Join ams social media channels:
>Twitter [https://twitter.com/amsAnalog] >LinkedIn [https://www.linkedin.com/
company/ams-ag] >Facebook [https://www.facebook.com/amsAnalog] >YouTube [https:/

ams is a registered trademark of ams AG. In addition many of our products and
services are registered or filed trademarks of ams Group. All other company or
product names mentioned herein may be trademarks or registered trademarks of
their respective owners. Information provided in this press release is accurate
at time of publication and is subject to change without advance notice.

[1] Excluding acquisition-related, one-time restructuring and share-based
compensation costs and results from investments in associates.

Further inquiry note:
Moritz M. Gmeiner
Vice President Investor Relations
Tel: +43 3136 500-0
Fax: +43 3136 500-931211
Email: investor@ams.com

end of announcement                         euro adhoc

issuer:       ams AG
              Tobelbader Strasse   30
              A-8141 Premstaetten
phone:        +43 3136 500-0
FAX:          +43 3136 500-931211
mail:         investor@ams.com
WWW:          www.ams.com
ISIN:         AT0000A18XM4
stockmarkets: SIX Swiss Exchange
language:     English

EAX0002    2021-02-09/07:02

Related Links: ams-OSRAM AG
Ad-hoc-Mitteilung übermittelt durch euro adhoc.
Für den Inhalt ist der Emittent verantwortlich.