Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
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ams OSRAM signs close to EUR 450 million of infrastructure related asset transactions as part of its recently presented financing plan

• The main transaction relates to a Sale and Leaseback of its new Kulim 8-inch facility with expected proceeds of around EUR 400 million and excludes the manufacturing equipment.
• Investment partners are three of Malaysia’s largest and most recognized investment companies.
• Sale of assets will not affect any technology, R&D or manufacturing strategies of ams OSRAM outlined in its “Re-establish the Base” program
• ams OSRAM continuously expands its operations in Malaysia and fosters additional employment opportunities in the country in the field of science and high-tech semiconductors.
• ams OSRAM also closed the divestment of a phased-out manufacturing facility located in Asia with proceeds of EUR mid double digit millions.

Premstaetten, Austria, and Kulim, Malaysia (30 October 2023) -- ams OSRAM (SIX: AMS) Today, ams OSRAM signed Sale and Leaseback agreements totaling up to Malaysian Ringgit 2 billion (approximately EUR 400 million) in gross proceeds (“Lease Financing”). The Sale and Leaseback transaction is part of the previously announced financing plan and limited to the newly constructed Kulim 8-inch semiconductor facility’s primary and secondary structures. The Lease Financing transaction is expected to close in winter 2023/2024 and runs for a term of 10 years, subject to certain conditions.

“We are progressing fast in implementing our recently announced comprehensive financing plan. The Sale and Leaseback transaction of our new 8-inch LED manufacturing facility in Kulim is a key element to optimize the borrowing cost in today’s high interest environment,” said Rainer Irle, CFO of ams OSRAM. “I would like to recognize particularly our partners, Permodalan Nasional Berhad (PNB), the Employees' Provident Fund (EPF) and Retirement Fund (Incorporated) (KWAP) for their engagement in this transaction.”

On September 27, 2023 ams OSRAM announced its financing plan of EUR 2.25 billion, with around EUR 1.9 billion expected to be financed in the coming months comprising of EUR 800 million capital raise, around EUR 800 million in new senior bond issuances and around EUR 300 million asset-level transactions. As announced today, these asset-level transactions are now expected to yield close to EUR 450 million in proceeds. The Kulim 8-inch facility Sale and Leaseback transaction is the key element amongst these asset-level transactions.

In 2022, ams OSRAM started an approximately EUR 1 billion investment in manufacturing, facilities and R&D for state-of-the-art LED and microLED. The new facility in Kulim is expected to be the world’s first fully automated 8-inch LED manufacturing facility. The facility shows the company’s dedication to sustainability, featuring highly energy and cost efficient green building practices in compliance with the LEED green building standards. The certification process is in progress, with the goal of becoming the first LEED GOLD certified semiconductor front-end facility in Malaysia, enabling the production of future generations of cutting-edge products.

In 2022, ams OSRAM celebrated 50 years in Malaysia. Over the course of this time, the company chose to develop a strong manufacturing base, research and development activities, sales and marketing functions, a global business center and IT service centers in the country due to the excellent infrastructure and education standards. The company´s continued investment stands as a testament to the excellent economic partnership between ams-OSRAM and Malaysia.

ams OSRAM continues to deliver on its plan to optimize its footprint in line with its recently announced strategy focusing the semiconductor segment on its profitable core of intelligent sensors and emitters. Within this context, the company closed a transaction to divest an already phased-out manufacturing facility in Asia, receiving proceeds of EUR mid-double digit million. The sale of the assets will not affect any technology, R&D or manufacturing capability of ams OSRAM outlined in its “Re-establish the Base” program.
 

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