AMS Osram - Back to Basics - Positioning

The loss of the Apple anchor order is a major issue for AMS Osram, but our model shows this mainly impacts the equity story, with the credit story more focused on the underlying existing businesses. We have refocused our model, adjusting for new realities post-abandonment of the videos with investment discussion available on the microLED project and assess the options available to AMS Osram for its upcoming maturities, including the 0% convertible in March 2025 and more importantly the Term Loan which matures this summer.

Our positioning is predicated on the relationship between the underwhelming guidance from management for Q2 and the changing cash requirements following the closure of the microLED project.