Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2020 Earnings Presentation

83 slides from Infineon Technologies's earnings presentation, Aug 4, 2020

Slide 1: Third Quarter FY 2020 Quarterly Update
Third Quarter FY 2020 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Agenda
Agenda 1 First quarter Cypress being part of Infineon 2 ESG: targets and achievements 3 Automotive 4 Industrial Power Control 5 Power & Sensor Systems 6 Connected Secure Systems 7 Selected financial figures 2020-08-04 Copyright © Infineon Technologies AG 2020. All rights reserved. 2
Slide 3: Infineon offers a unique portfolio that links the real and the digital world
Infineon offers a unique portfolio that links the real and the digital world Coin cell-powered devices Battery-powered devices Power supplies Information and data about the real world Industrial IoT Connectivity Real-world Software Digital Drives applications Ecosystem world Smart Home Value additio
Slide 4: Infineon now offers the entire system for IoT - unlocking new markets and applications
Infineon now offers the entire system for IoT - unlocking new markets and applications lifestyle service wearables robot personal cloud shaver, medical epilator, device toothbrush sensors power smart speaker microph. software and ecosystem motor air con pressure connectivity light smart watch cookin
Slide 5: Infineon became a global top-10 player, and the new #3 in the overall microcontroller market
Infineon became a global top-10 player, and the new #3 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2019 total market: $428bn1) 2018 total market: $21.0bn2) 2019 total market: $17.5bn1) Intel 16.5% Infineon 19.9% #1 Renesas 18.1% Samsung 12.
Slide 6: Infineon remains top player in its target markets: security ICs, NOR Flash, and MEMS microphones
Infineon remains top player in its target markets: security ICs, NOR Flash, and MEMS microphones Infineon is focusing on wearables Security ICs Wi-Fi standalone ICs and IoT but not addressing routers, 2018 total market: $3.2bn 2018 total market: 917m units PCs, notebooks, tablets. NXP 24.8% Media Te
Slide 7: Tight customer relationships, based on system know-how and application understanding
Tight customer relationships, based on system know- how and application understanding ATV IPC PSS CSS EMS partners Distribution partners 2020-08-04 Copyright © Infineon Technologies AG 2020. All rights reserved. 7
Slide 8: Well-defined roadmap how to capture the value of the deal
Well-defined roadmap how to capture the value of the deal 16 Apr 2020 FY21 FY23 FY25 FY28 › generate sustainable procurement effects › have aligned and prioritized › establish one interface to the customer (OITC) product roadmap with joint P2S concepts in place › streamlining global shared service c
Slide 9: Reaping of cost synergies is making progress; first areas of savings identified
Reaping of cost synergies is making progress; first areas of savings identified Planned ramp-up of cost synergies Initial achievements in Q3 FY20 €180m › optimizing corporate service providers › synergies from streamlining board structure  G&A › efficiency gains in account coverage S&M › lifting sy
Slide 10: Value creation by revenue synergies; first projects identified
Value creation by revenue synergies; first projects identified Planned ramp-up of revenue synergies Initial opportunities identified in Q3 FY20 (B) P2S for long-term revenue synergy ramp up €1.5bn › first cross-divisional and cross-company roadmap discussions kicked-off  (A) Near-term revenue syner
Slide 11: Further improvement of through-cycle target operating model
Further improvement of through-cycle target operating model Target Operating Model Infineon financial performance to approach targets as integration progresses 9%+ Revenue growth (up from “9%”) 19% Segment Result margin (up from “17%”) 13% Investment-to-sales (down from “15%”) 2020-08-04 Copyright ©
Slide 12: Equity part of refinancing completed; successful bond issue to repay acquisition-related bridge facility
Equity part of refinancing completed; successful bond issue to repay acquisition-related bridge facility › Arranging and syndication of acquisition facility  2019 › Initial equity de-risking in two steps: › €1.5bn via ABB  › €1.2bn via dual-tranche hybrid bond  › Drawdown of acquisition facility
Slide 13: Infineon's maturity profile post the €2.9bn bond emission in June 2020
Infineon’s maturity profile post the €2.9bn bond emission in June 2020 Maturity profile [EUR m; US$ m; nominal values] Campeon (final repayment Oct 2020) Eurobond (Mar 2020) term loans (Sep 2020, Sep 2023, Jun 2024) Corporate bonds under the EMTN program €750 (Jun 2023, Jun 2026, Jun 2029, Jun 2032)
Slide 14: Outlook for Q4 FY20 and FY20 including Cypress since April 2020
Outlook for Q4 FY20 and FY20 including Cypress since 16 April 2020 only Outlook Q4 FY20* Outlook FY20* between Revenue ~€8.5bn €2.3bn and €2.6bn Segment Result At the mid-point of the revenue guidance: ~14% ~13% margin Investments in FY20 ~€1.2bn D&A in FY20 ~€1.3bn** * Based on an assumed average e
Slide 15: ESG: targets and achievements
ESG: targets and achievements
Slide 16: Our products and innovations together with an efficient production are key elements to deal with climate change
Our products and innovations together with an efficient production are key elements to deal with climate change We contribute a CO2 reduction of more than 54 million tons Our net ecologic CO2 benefit is equal to … The average annual 48,700 fully occupied flights The savings of a 1,795 km2 electricit
Slide 17: Infineon will become carbon-neutral by 2030
Infineon will become carbon-neutral by 2030 70% CO2 emissions reduction target in 2025 (Scope 1 and 2 emissions) 1. Avoiding direct emissions and further reducing energy consumption 2. Purchasing green electricity with guarantees of origin for unavoidable emissions 3. Compensate the smallest part by
Slide 18: External recognitions confirm our engagement in contributing to a sustainable society
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date MSCI ESG AA CCC to AAA 02/2020 B climate scoring CDP F to A 02/2020 B- water scoring 98th percentile Ecovadis 0 to 100 11/2019 “Gold” award 79 DJ Sustainability™ Dow Jones Sustainability Ind
Slide 20: Short- to mid-term market outlook for ATV division's target applications
Short- to mid-term market outlook for ATV division’s target applications Application Market Outlook for H2 CY20 Market Outlook for CY21 › Jun-Q expected to be the heaviest impacted quarter by COVID-19 with › Continuous recovery, but overall light the trough in April vehicle market will not reach pre
Slide 21: Infineon and Cypress create the new number 1 in the automotive semiconductor universe
Infineon and Cypress create the new number 1 in the automotive semiconductor universe Automotive semiconductors 2019 total market: $37.2bn Cypress Infineon 11.2% 2.2% 13.4% › Cypress contributed 2.2%-points to the combined automotive semiconductor market share of 13.4% NXP 11.3% › Cypress contribute
Slide 22: Infineon has industry's broadest product portfolio covering entire range of auto applications
Infineon has industry’s broadest product portfolio covering entire range of auto applications Body Cluster/ Chassis Powertrain ADAS/AD Infotainment Sensors (magnetic, pressure, radar, current, 3D ToF, TrueTouch®, CapSense®) MCU (Embedded Power ICs, MCU (AURIX™) PSoC™, Traveo™) Memory (NOR Flash, SRA
Slide 24: xEV growth driven by EU emission regulation; CO2 reduction of 37.5% by 2030 vs 2021
xEV growth driven by EU emission regulation; CO2 reduction of 37.5% by 2030 vs 2021 CO2 emission development and regulations for main regions 200 Japan 2020: US 2020: CO2 emission values [g/km], normalized to NEDC 122 g CO2/km* 125 g CO2/km 150 No CO2 reduction since 2016! Necessity for significant
Slide 25: The incremental demand of power semiconductors is a significant opportunity
The incremental demand of power semiconductors is a significant opportunity 2019 average xEV semiconductor content by degree of electrification 48 V / MHEV FHEV / PHEV BEV $29 $785 $37 $775 $305 $350 $90 $0 $531 $19 $19 $62 $5 $62 $14 $14 $19 $355 $355 $355 $0 xEV Power** Non PT* xEV others** xEV µC
Slide 27: Vision Zero – AD requires failure-tolerant availability of the system
Vision Zero – AD requires failure-tolerant availability of the system in the environment, “better than a human” A failure-tolerant system with high availability relies on dependable key functionalities Driver Sense Interpret & decide Act Dependable Sensors Dependable Computing Depend. Actuators Brak
Slide 28: Infineon's NOR Flash business is benefiting from several structural growth trends
Infineon’s NOR Flash business is benefiting from several structural growth trends Structural growth drivers for NOR Flash › increasing system complexity drives demand for higher off-chip code storage › growing number of applications based on high-performance processing units: › code and parameter st
Slide 29: Infineon NOR Flash market focus and position
Infineon NOR Flash market focus and position Leadership in high-performance, high-density, reliable, functionally safe and secure NOR › Infineon’s high-density NOR Flash is used as › boot-code storage › instant-on program memory › execute-in-place (XiP) code memory › data-logging › configuration and
Slide 30: ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years
ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years Average semiconductor content per car by level of automation at the given years NCAP 5 Star/AD L2 AD L2+ AD L3 AD L4/L5 L2 vehicles in 2020: ~6m L2+ in 2022: ~1m L3 in 2025: ~1.5m L4/L5 vehicles in 2030: ~4m L2+ in 2
Slide 32: Infineon's portfolio covers the entire range of power and frequency
Infineon's portfolio covers the entire range of power and frequency What is a power switch? How are power switches categorized? 10 MW When turned on power  current flows = When turned off 1 MW  current is IGBT blocked Module SiC Module 100 kW What counts? › Losses in on-state (R(DS)on) 10 kW › Hea
Slide 33: Infineon's discrete power portfolio is basically separated by voltage classes
Infineon's discrete power portfolio* is basically separated by voltage classes Silicon-based power switches Compound semiconductors 6,500 V IPC territory 4,500 V CoolSiC™ MOSFET IGBT roadmap 3,300 V modules 1,700 V discrete IGBTs SiC MOSFET today 1,200 V IGBTs (CoolSiC™) 900 V (discrete, modules) hi
Slide 34: Strong CoolSiC portfolio expansion: by packages and by voltages
Strong CoolSiC™ portfolio expansion: by packages and by voltages Broadest and best-in-class SiC portfolio Industrial Automotive grade CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ Hybrid Diode MOSFET Diode MOSFET Discrete Discrete Module Discrete IPM Module Discrete Discrete Module voltages 600 V Exp
Slide 35: Three strategic levers to outgrow the power semi market: core – adjacent – new
Three strategic levers to outgrow the power semi market: "core – adjacent – new"  Adjacent  Core Controller Gate driver switch application translates e.g. motion triggers low-power signal signal into control, power appropriate conversion gate input  Grow in adjacent fields  Strengthen core › Inv
Slide 36: Second generation CoolSiC Trench MOSFET will increase the addressable market
Second generation (2nd Gen.) CoolSiC™ Trench MOSFET will increase the addressable market 1st Gen. CoolSiC™ Trench MOSFET 2nd Gen. CoolSiC™ Trench MOSFET is the leading technology today is in advanced development phase 1st Gen. with lowest losses 2nd Gen. will expand the lead 1,2 › Enhanced power han
Slide 37: Siltectra: Status of implementation of Cold Split technology
Siltectra: Status of implementation of Cold Split technology Process tools Clean room Process flow › Design and production of › Clean room ready for › Integration of individual semi-automated process tool manufacturing by end of process steps into complete park completed in Dresden calendar year 202
Slide 38: Infineon is ready to support and shape the growing SiC device market
Infineon is ready to support and shape the growing SiC device market SiC device market revenue Today › Acceleration of revenue growth › Leading Infineon technology with [US$ m] from 2023 onwards 1st Gen. CoolSiC™ Trench MOSFET 2500 CAGR(18-24): 29% › Already broad, fast growing portfolio › System ex
Slide 40: Short- to mid-term market outlook for IPC division's target applications
Short- to mid-term market outlook for IPC division’s target applications Application Market Outlook for H2 CY20 Market Outlook for CY21 › Industrial drives expected to contract › Industrial drives highly correlated to due to push-outs in manufacturing GDP equipment investments › recovery earliest in
Slide 41: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again
Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again Discrete IGBTs IPMs IGBT modules** 2018 total market: $1.31bn 2018 total market: $1.68bn 2018 total market: $3.25bn Infineon 37.4% (+ 0.7-pt) Mitsubishi 32.3% Infineon 34.5% (+1.7-pt) ON Semi 9.6% ON Semi 18.9% Mitsubishi 10.4%
Slide 42: Due to the extensive power module portfolio Infineon can address the whole range of drives applications
Due to the extensive power module portfolio Infineon can address the whole range of drives applications Servo drives Low-power drives* Mid- and high-power drives 370 W 75 kW 370 W 500 kW 500 kW 10 MW › high positioning accuracy › performance and reliability › safety Requirements › fast response with
Slide 43: Growth in HAs supported by ongoing inverterization and sustained growth of overall number of RACs
Growth in HAs supported by ongoing inverterization and sustained growth of overall number of RACs [units m] Total home appliances (HA) shipments vs inverterized shipments › Inverterization of home appliances driven +3.7% by energy efficiency regulations 800 +15.3% 600 › Room air-conditioners account
Slide 44: With the combined portfolio Infineon can offer full system solutions
With the combined portfolio Infineon can offer full system solutions Example: air-conditioning system Indoor Unit Outdoor Unit What makes system solution attractive to customers? Outdoor Fan Connectivity Wi-Fi / MCU Control MCU Bluetooth Dual Motor Connect Frontend Security + PFC › Ease of design (T
Slide 45: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Shakti pumps Courtesy: Alstom new material solar pumps fuel cell Courtesy: Courtesy: McKinsey Siemens AG EV charging energy storage eMarine Courtesy: Lilium GmbH collaborative robots eDelivery vehicle
Slide 47: Short- to mid-term market outlook for PSS division's target applications
Short- to mid-term market outlook for PSS division’s target applications Application Market Outlook for H2 CY20 Market Outlook for CY21 › Computing shows resilience based on › Long-term drivers ensure to increased data traffic and acceleration sustainable growth towards cloud servers computing › 5G
Slide 48: PSS's growth is built on many applications from different sectors in power and non-power
PSS's growth is built on many applications from different sectors in power and non-power Computing Industrial Consumer / Misc Communications › data center › power supplies › eBikes, eScooter › smartphones › enterprise server › EV on-board charger › multicopter › mobile devices › PC, notebook › PV in
Slide 50: Infineon is the clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFETs Power ICs 2018 total market: $7.58bn 2018 total market: $25.62bn Infineon 27.7% (+0.7%-pt) Texas Instr. 15.9% ON Semi 13.1% Infineon 8.3% (+0.8%-pt) STMicro 8.0% Qualcomm 7.3% Toshiba 7.0% ADI 7.1% Renesas
Slide 51: Infineon and Spark Connected are joining forces to become the leader in notebook wireless charging solutions
Infineon and Spark Connected are joining forces to become the leader in notebook wireless charging solutions › full compatibility with current WPC Qi › high efficiency of up to 95% standard › enabling similar performance as › used for smartphones, hearables, wire-based charging and other devices › n
Slide 52: Four interrelated trends drive power semiconductor BoM in battery-powered applications
Four interrelated trends drive power semiconductor BoM in battery-powered applications Interrelated trends for battery-powered applications  From corded to From brushed DC  Trend towards higher power  New applications cordless power to brushless DC and higher battery voltage with trend towards t
Slide 53: Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station New! Massive MIMO DC-DC (MOSFET, ICs) 5G mmWave antenna New! AC-DC, DC-DC (MOSFET, ICs) Cloud Computing AC-DC, DC-DC (MOSFET, ICs) New! Base station power supply AC-DC, DC-DC (MOSFET, ICs) Fog Co
Slide 54: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Nissan 5G infrastructure on-board charger collaborative robots hyperscale AI data center power tools smart speaker new material home appliances class D audio 2020-08-04 Copyright © Infineon Technologi
Slide 56: Main applications addressed by PSS sensors portfolio
Main applications addressed by PSS sensors portfolio MEMS microphone 3D radar (24/60 GHz) 3D ToF image sensor Environmental Ultra-low World’s Best audio Best price / power smallest form performance performance consumption 6x6 mm² factor Low power Presence VR/AR, consumption detection biometrics Meas
Slide 57: Sensor markets targeted by PSS
Sensor markets targeted by PSS MEMS microphone market Radar IC market (24 GHz and 60 GHz only) [US$ m] [EUR m] 1138 1167 1186 1157 307 1086 227 151 114 130 2019 2020 2021 2022 2023 FY 2019 2020 2021 2022 2023 (+0.1-pt) Source: Based on or includes research from Omdia, “MEMS Microphone Source: Infine
Slide 58: Different market dynamics of selected PSS sensors
Different market dynamics of selected PSS sensors MEMS microphone Radar ICs (24 GHz and 60 GHz only) › Innovative products with best signal-to-noise › Excellent market position with 24 GHz in ratio are very much valued by leading automotive for blind spot detection. consumer electronic manufacturers
Slide 59: Sweeping success of our XENSIV MEMS microphones
Sweeping success of our XENSIV™ MEMS microphones driven by unparalleled audio characteristics Infineon’s market share development in MEMS microphones 2018 MEMS die market share 37.0% total market: 4.6bn units 34.7% 33.5% 26.5% Knowles 42.8% Infineon 37.0% Omron 5.2% 8.8% 5.2% NJRC 4.7% 3.5% MEMSensi
Slide 61: Short- to mid-term market outlook for CSS division's target applications
Short- to mid-term market outlook for CSS division’s target applications Application Market Outlook for H2 CY20 Market Outlook for CY21 › Concerns related to COVID-19 lead to › Momentum in contactless payments accelerated adoption of contactless expected to continue payments worldwide Payment › Inte
Slide 62: In IoT, the Cypress and Infineon portfolios complement each other for best-in-class solutions
In IoT, the Cypress and Infineon portfolios complement each other for best-in-class solutions Past: standalone IoT offerings from Now: combined IoT offerings going forward Infineon and Cypress Cypress standalone offering: Best-in-class solutions - extending Infineon’s scope of applications and marke
Slide 63: CSS has an industry-leading offering built on multi-year investments and experience
CSS has an industry-leading offering built on multi-year investments and experience › 15+ years of investment in PSoC portfolio with > 2bn MCUs shipped Microcontroller › major advantages of programmability and low power consumption › integrated security as a key feature, especially for IoT › excelle
Slide 64: Infineon's system solutions are based on cross-divisional product offerings to max. BoM content
Infineon’s system solutions are based on cross- divisional product offerings to max. BoM content Example: smart watch Processing Security microcontroller eSIM secure element + NFC Memory cloud authentication NOR Flash F-RAM Device protection ESD protection Connectivity battery authentication Wi-Fi/B
Slide 65: Application pipeline continuously fueled by emerging topics
Application pipeline continuously fueled by emerging topics maturity Emerging Growing Maturing Pay TV SIM Card Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Automotive Tokens for Industrial TPM for
Slide 66: Agenda
Agenda 1 First quarter Cypress being part of Infineon 2 ESG: targets and achievements 3 Automotive 4 Industrial Power Control 5 Power & Sensor Systems 6 Connected Secure Systems 7 Selected financial figures 2020-08-04 Copyright © Infineon Technologies AG 2020. All rights reserved. 66
Slide 67: First time inclusion of Cypress revenues
First time inclusion of Cypress revenues* Revenue development [EUR m] › Cypress revenue contribution close to €400m › Revenue came in slightly better than 2,174 expected 2,015 2,062 1,986 1,916 › Robust profitability driven by slightly lower underutilization charges and cost containment 36.5% 37.0%
Slide 68: Q3 FY20 division performance
Q3 FY20 division performance ATV IPC PSS CSS [EUR m] [EUR m] [EUR m] [EUR m] 888 893 829 846 815 681 598 639 593 617 24.2 23.9 24.6 22.2 357 362 334 358 366 21.0 307 11.0 167 162 158 162 12.1 8.7 8.1 18.6 17.3 17.2 6.0 15.4 16.3 98 78 67 51 -2.9 11.4 55 59 62 62 63 145 153 146 138 143 19 22 22 23 37
Slide 69: Adjusted RoCE above WACC
Adjusted RoCE above WACC RoCE and adjusted RoCE FY16 FY17 FY18 FY19 Q3 FY19 Q4 Q1 FY20 Q2 Q3 Adjusted RoCE (excl. effects from International Rectifier and Cypress acquisition, Deferred Tax Effects, RF Power sale) RoCE 2020-08-04 Copyright © Infineon Technologies AG 2020. All rights reserved. 69
Slide 70: Earnings-per-share and total cash return
Earnings-per-share and total cash return Development of earnings-per-share (EPS) from continuing operations [EUR cent] 20 23 19 13 16 17 13 13 13 EPS basic EPS adjusted Q3 FY19 Q4 Q1 FY20 Q2 Q3 -11 Total cash return to shareholders [EUR m] 2,450 336 › Policy of sustainable 308 305 283 248 dividend p
Slide 71: Opex increase is almost entirely a result of the business combination
Opex increase is almost entirely a result of the business combination Selling, General & Administration Research & Development* [EUR m] [EUR m] General & Administration R&D Selling % of sales 316 321 % of sales 239 243 230 243 241 214 222 214 239 204 63 10.6% 58 77 10.6% 10.8% 159 14.5% 10.8% 14.5%
Slide 72: Trade working capital components reflect consolidation of Cypress
Trade working capital components reflect consolidation of Cypress Working capital* Inventories [EUR m] [EUR m] [days] 2,215 1,762 1,758 1,701 1,767 1,736 1,475 1,511 1,583 1,505 124 132 126 115 120 Q3 FY19 Q4 Q1 FY20 Q2 Q3 Q3 FY19 Q4 Q1 FY20 Q2 Q3 Inventories DIO* Trade receivables Trade payables [E
Slide 73: Cycle management slows down investments; D&A impacted by Cypress consolidation and PPA
Cycle management slows down investments; D&A impacted by Cypress consolidation and PPA Investments* Depreciation & Amortization [EUR m] [EUR m] 1,451 ~1.3bn 1,254 ~1.2bn ~150 – 200 1,022 945 833 861 87 785 826 812 760 103 140 129 114 18.1% 16.5% 13.5% 14.5% ~14.1% 13.1% 15.3% 12.8% 12.9% 11.5% 11.3%
Slide 74: Financing of acquisition leading to net debt of €4.3bn
Financing of acquisition leading to net debt of €4.3bn Liquidity development [EUR m] Gross Cash Gross Debt Net Cash/Debt 1,531 1,537 1,556 1,535 4,859 4,588 3,779 3,450 3,435 3,328 3,051 2,223 1,900 Q3 Q4 Q1 Q2 Q3 FY19 FY20 -7,746 -4,296 › Q1 FY20: Proceeds from €1.2bn dual-tranche hybrid bond booke
Slide 75: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 76: Glossary (1 of 2)
Glossary (1 of 2) ABB accelerated book building ECU electronic control unit AC alternating current EPS electric power steering AC-DC alternating current - direct current eSIM embedded subscriber identity module AD automated driving EV electric vehicle ADAS advanced driver assistance system FHEV full
Slide 77: Glossary (2 of 2)
Glossary (2 of 2) IRF International Rectifier Pol point-of-load IVN in-vehicle networking PSoC programmable system-on-chip LCD liquid crystal display PV photovoltaic LDO low dropout voltage regulator RF radio frequency LED light-emitting diode rhs right-hand scale LSEV low-speed electric vehicle Si
Slide 78: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are s
Slide 79: Financial calendar
Financial calendar Date Location Event 19 Aug 2020 Baden-Baden  virtual Lampe Bank German Conference 1 – 2 Sep 2020 Chicago  virtual Jefferies Annual Semiconductor, IT Hardware & Communications Infrastructure Summit 2 Sep 2020 Japan  virtual UBS Japan in Focus Conference 3 Sep 2020 London  virtu
Slide 80: ESG footnotes
ESG footnotes 1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2019
Slide 81: Notes
Notes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Capital Employed = 'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale – ('Total Current li
Slide 82: For further reading
For further reading IPC Business Update ATV Call Dr. Peter Wawer, Dr. Peter Friedrichs Peter Schiefer 7 May 2020 8 October 2019 https://www.infineon.com/pcim_presentation https://www.infineon.com/atv_call Sustainability Report 2019 IFX Day 2018 23 November 2019 Capital Markets Day London, 12 June 20
Slide 83: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-23766 alexander.foltin@infineon.com Joachim Binder Isabell Diel Senior Director Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 joachi

Infineon Technologies — Q3 FY2020 Earnings Presentation on 6ix

Infineon Technologies — Q3 FY2020 Earnings Presentation

Slide 1: Third Quarter FY 2020 Quarterly Update

Slide 2: Agenda

Slide 3: Infineon offers a unique portfolio that links the real and the digital world

Slide 4: Infineon now offers the entire system for IoT - unlocking new markets and applications

Slide 5: Infineon became a global top-10 player, and the new #3 in the overall microcontroller market

Slide 6: Infineon remains top player in its target markets: security ICs, NOR Flash, and MEMS microphones

Slide 7: Tight customer relationships, based on system know-how and application understanding

Slide 8: Well-defined roadmap how to capture the value of the deal

Slide 9: Reaping of cost synergies is making progress; first areas of savings identified

Slide 10: Value creation by revenue synergies; first projects identified

Slide 11: Further improvement of through-cycle target operating model

Slide 12: Equity part of refinancing completed; successful bond issue to repay acquisition-related bridge facility

Slide 13: Infineon's maturity profile post the €2.9bn bond emission in June 2020

Slide 14: Outlook for Q4 FY20 and FY20 including Cypress since April 2020

Slide 15: ESG: targets and achievements

Slide 16: Our products and innovations together with an efficient production are key elements to deal with climate change

Slide 17: Infineon will become carbon-neutral by 2030

Slide 18: External recognitions confirm our engagement in contributing to a sustainable society

Slide 19: Automotive

Slide 20: Short- to mid-term market outlook for ATV division's target applications

Slide 21: Infineon and Cypress create the new number 1 in the automotive semiconductor universe

Slide 22: Infineon has industry's broadest product portfolio covering entire range of auto applications

Slide 23: Electro-mobility

Slide 24: xEV growth driven by EU emission regulation; CO2 reduction of 37.5% by 2030 vs 2021

Slide 25: The incremental demand of power semiconductors is a significant opportunity

Slide 26: Automated Driving

Slide 27: Vision Zero – AD requires failure-tolerant availability of the system

Slide 28: Infineon's NOR Flash business is benefiting from several structural growth trends

Slide 29: Infineon NOR Flash market focus and position

Slide 30: ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years

Slide 31: Infineon's Power Strategy

Slide 32: Infineon's portfolio covers the entire range of power and frequency

Slide 33: Infineon's discrete power portfolio is basically separated by voltage classes

Slide 34: Strong CoolSiC portfolio expansion: by packages and by voltages

Slide 35: Three strategic levers to outgrow the power semi market: core – adjacent – new

Slide 36: Second generation CoolSiC Trench MOSFET will increase the addressable market

Slide 37: Siltectra: Status of implementation of Cold Split technology

Slide 38: Infineon is ready to support and shape the growing SiC device market

Slide 39: Industrial Power Control

Slide 40: Short- to mid-term market outlook for IPC division's target applications

Slide 41: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again

Slide 42: Due to the extensive power module portfolio Infineon can address the whole range of drives applications

Slide 43: Growth in HAs supported by ongoing inverterization and sustained growth of overall number of RACs

Slide 44: With the combined portfolio Infineon can offer full system solutions

Slide 45: What comes next? Mid- to long-term structural growth opportunities

Slide 46: Power & Sensor Systems

Slide 47: Short- to mid-term market outlook for PSS division's target applications

Slide 48: PSS's growth is built on many applications from different sectors in power and non-power

Slide 49: PSS – Power

Slide 50: Infineon is the clear leader in MOSFETs; growth potential in power ICs

Slide 51: Infineon and Spark Connected are joining forces to become the leader in notebook wireless charging solutions

Slide 52: Four interrelated trends drive power semiconductor BoM in battery-powered applications

Slide 53: Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies

Slide 54: What comes next? Mid- to long-term structural growth opportunities

Slide 55: PSS – RF and Sensing

Slide 56: Main applications addressed by PSS sensors portfolio

Slide 57: Sensor markets targeted by PSS

Slide 58: Different market dynamics of selected PSS sensors

Slide 59: Sweeping success of our XENSIV MEMS microphones

Slide 60: Connected Secure Systems

Slide 61: Short- to mid-term market outlook for CSS division's target applications

Slide 62: In IoT, the Cypress and Infineon portfolios complement each other for best-in-class solutions

Slide 63: CSS has an industry-leading offering built on multi-year investments and experience

Slide 64: Infineon's system solutions are based on cross-divisional product offerings to max. BoM content

Slide 65: Application pipeline continuously fueled by emerging topics

Slide 66: Agenda

Slide 67: First time inclusion of Cypress revenues

Slide 68: Q3 FY20 division performance

Slide 69: Adjusted RoCE above WACC

Slide 70: Earnings-per-share and total cash return

Slide 71: Opex increase is almost entirely a result of the business combination

Slide 72: Trade working capital components reflect consolidation of Cypress

Slide 73: Cycle management slows down investments; D&A impacted by Cypress consolidation and PPA

Slide 74: Financing of acquisition leading to net debt of €4.3bn

Slide 75: Part of your life. Part of tomorrow.

Slide 76: Glossary (1 of 2)

Slide 77: Glossary (2 of 2)

Slide 78: Disclaimer

Slide 79: Financial calendar