Business Activities and Structure of OSRAM Licht Group

OSRAM is a global provider of lamps, luminaires and lighting solutions with a leading position in a wide range of market segments. Our product portfolio spans the entire lighting value chain, from light sources down to custom light management systems, both in general and in speciality lighting.

The shift toward semiconductor technology continued to radically alter our business environment, and we continued to counter this in fiscal 2015 primarily using the measures forming part of our OSRAM Push improvement program. Beyond the technology-related shifts, changes are increasingly becoming apparent in the business models pursued by companies active in the lighting market. To date, several companies in the lighting industry have been active in all market segments and along the entire value chain; the dominant global players are Philips and OSRAM. The past fiscal year saw OSRAM react to the transformation of the lighting market, which is proceeding at different speeds and posing a variety of challenges, by departing from its previous strategy in which it positioned itself as a provider of diversified product portfolios along the entire value chain. Philips also recently started a strategic realignment of its lighting business.

On June 12, 2015, OSRAM resolved to carve out its general lighting lamps business. In doing so, we are taking market developments, which are proceeding at different speeds, into account and are enabling both the lamps business and our future core business to better adapt themselves to their specific market requirements. Consequently, OSRAM ’s core business will in future comprise automotive and specialty lighting, opto semiconductors, and luminaires, lighting systems, and solutions. This move increases the focus of our business model on growth, innovation, and technology leadership. We aim to complete the carve-out of the lamps business from an organizational perspective by April 1, 2016, and from a legal perspective by July 1, 2016

Since July 1, 2015 , our business model has been implemented at an operational level using five business units: Specialty Lighting (SP) and Opto Semiconductors (OS), both of which remained unchanged, Digital Systems (DS), Lighting Solutions (LS), and Lamps (LP). The Luminaires and Solutions business units and the Services unit had already been combined under common management from October 1 , 2014 , as the Luminaires & Solutions Business Unit. This was renamed Lighting Solutions as of July 1, 2015 . As part of the carve-out of the lamps business, the classic lamps and LED lamps business activities became the key components of the new Lamps Business Unit as of July 1, 2015 . These had previously been assigned to the Classic Lamps & Ballasts and LED Lamps & Systems business units, respectively. The remaining business activities of the former Classic Lamps & Ballasts and LED Lamps & Systems business unit ballasts and light engines & controls, were bundled in the DS Business Unit.

Please find more information in the latest annual report (p. 51)