Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2023 Earnings Presentation

18 slides from Infineon Technologies's earnings presentation, Aug 3, 2023

  1. Slide 1: Third Quarter FY 2023 Analyst Call

    Third Quarter FY 2023 Analyst Call Infineon Technologies AG Investor Relations 1

  2. Slide 2: Group financial performance

    Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenue Segment result Segment result margin Average revenue exchange rate 13% Q3 Q2 Q3 -1% FY22 FY23 FY23 4,143 4,119 4,089 3,951 ø USD/EUR 1.06 1.08 1.09 3,618 Order backlog1 [EUR bn] 42 43 38 36 32 28.0% 28.6% 25.5%

  3. Slide 3: Automotive (ATV)

    Automotive (ATV) Revenues Segment Result Segment result margin [EUR m] [EUR m] +25% +2% 647 2,080 2,129 583 1,934 1,872 532 506 1,701 399 31.1% 28.4% 27.4% 26.2% 23.5% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Further revenue step-up primarily driven by microc

  4. Slide 4: Green Industrial Power (GIP)

    Green Industrial Power (GIP) Revenues Segment Result Segment result margin [EUR m] [EUR m] +30% +1% 558 565 181 542 171 500 436 144 136 82 32.4% 30.3% 28.8% 25.1% 18.8% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Another record revenue driven by transportation a

  5. Slide 5: Power & Sensor Systems (PSS)

    Power & Sensor Systems (PSS) Revenues Segment Result Segment result margin [EUR m] [EUR m] 338 301 -10% 277 1,169 -1% 1,021 1,043 925 917 197 191 29.8% 28.9% 28.9% 28.9% 28.9% 27.1% 27.1% 25.6% 21.3% 20.8% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Revenue decr

  6. Slide 6: Connected Secure Systems (CSS)

    Connected Secure Systems (CSS) Revenues Segment Result Segment result margin [EUR m] [EUR m] +4% -14% 155 531 550 492 474 125 456 119 84 86 28.2% 23.5% 25.1% 18.4% 17.5% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Revenue development driven by weaker development

  7. Slide 7: Gross margin and Opex

    Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 1,866 1,920 1,839 1,821 1,564 486 484 487 496 466 452 414 410 394 396 47.2% 46.6% 44.4% 44.5% 43.2% 12.9% 11.7% 12.3% 11.8% 12.1% 11.4% 10.9% 10.4% 9.6% 9.7% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3

  8. Slide 8: Investments, Depreciation & Amortization and Free Cash Flow

    Investments, Depreciation & Amortization and Free Cash Flow Investments Depreciation & Amortization Free Cash Flow [EUR m] [EUR m] [EUR m] 866 768 709 605 565 542 443 429 434 441 440 422 326 193 25 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY22 FY22 FY23 FY23 FY23 FY22 FY22 FY23 FY23 FY23 FY22 FY

  9. Slide 9: Working Capital, in particular trade working capital components

    Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] 3,754 3,499 3,081 3,239 2,071 2,834 1,904 1,148 1,303 140 143 149 900 124 120 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Trade receivables Trade payables

  10. Slide 10: Liquidity development

    Liquidity development Historical liquidity development [EUR m] 3,717 3,708 3,569 3,446 2,986 -4,679 -1,693 -5,467 -1,759 -5,662 -1,945 -5,428 -1,982 Q3 Q4 Q1 Q2 Q3 -6,054 -2,485 FY22 FY22 FY23 FY23 FY23 Gross Cash Gross Debt Net Cash/Debt 2023-08-03 Copyright © Infineon Technologies AG 2023. All rig

  11. Slide 11: Conservative financial policy and strict commitment to investment-grade rating

    Conservative financial policy and strict commitment to investment-grade rating are the basis for through-cycle flexibility Financial Policy Targets Status Quo (LTM 30 June 2023) Gross Cash1 €1bn + at least 10% of revenues → €2.6bn €1bn + 12% of revenues → €3.0bn Gross Debt2 ≤ 2.0x EBITDA 0.8x EBITDA

  12. Slide 12: Outlook for Q4 FY23 and FY23

    Outlook for Q4 FY23 and FY23 Outlook Outlook Q4 FY231 FY231 Revenue ~ €4bn ~ €16.2bn Adj. Gross Margin ~47% Segment Result Margin ~25% ~27% FCF/adj. FCF ~€1.2bn/~€1.7bn Investments ~€3.0bn D&A ~€1.8bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00 2 Including the amortization of aro

  13. Slide 13: Building the world's largest 200-millimeter SiC power fab

    Building the world’s largest 200-millimeter SiC power fab Rationale ‒ Undisputed leadership position in power systems across all materials based on technology and scale ‒ Expanding the third module at the existing site in Kulim offers significant advantages – economies of scale, competitive local co

  14. Slide 14: Key points

    Key points Another strong quarter Q3 FY23 – €4.1bn revenue, 26.1% Segment Result Margin Consistent execution − Continued different demand patterns in the end market applications − We reaffirm our leadership in power systems with our SiC manufacturing expansion − With our strong portfolio geared at t

  15. Slide 15: Questions & Answers

    Questions & Answers 2023-08-03 Copyright © Infineon Technologies AG 2023. All rights reserved. 15

  16. Slide 16: Cinfineon

    Cinfineon

  17. Slide 17: Disclaimer

    Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently availa

  18. Slide 18: Notes

    Notes Order backlog = The total amount of orders received regardless of their current status Working Capital = ('Total current assets' – 'Cash and cash equivalents' – 'Financial investment' – 'Assets classified as held for sale') – ('Total current liabilities' – 'Short term debt and current maturiti

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