Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Infineon Tech — Q1 2024 Earnings Presentation

107 slides from Infineon Technologies's earnings presentation, Feb 6, 2024

Slide 1: First Quarter FY 2024 Quarterly Update
First Quarter FY 2024 Quarterly Update Infineon Technologies AG Investor Relations 1
Slide 2: Infineon at a glance
Infineon at a glance Addressing long-term high-growth trends FY23 revenue by segment Automotive (ATV) 13% Green Industrial Power (GIP) Power & Sensor Systems (PSS) 23% 51% Connected Secure Systems (CSS) Energy Mobility IoT green and efficient clean and safe smart and secure 13% Financials FY23 reven
Slide 3: Global player, #1 in power semiconductors, #5 in microcontrollers
Infineon is a global player, clear #1 in power semiconductors, and ranked #5 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2022 total market: USD 597bn1 2022 total market: USD 28.1bn2 2022 total market: USD 27.0bn1 Samsung 11.2% Infineon 20.6
Slide 4: Well-balanced portfolio among segments and key applications
Well-balanced portfolio among segments and key applications, highest growth coming from Decarbonization and Digitalization FY23 revenue of €16,309m by segment and key application CSS E-mobility 13% 14% Other 29% Renewables 7% 5% ADAS PSS 23% ATV 51% 5% 3% IoT Payment 2% 4% BPA/Power Tools 4% AI/Data
Slide 5: Technology and quality leadership fostering long-term partnerships
Technology and quality leadership means added value for customers fostering long-term partnerships “Outstanding Partner Award 2023” from globally largest EV player BYD Infineon has been honored for its − strong and long-lasting support − operational excellence with steady delivery and reliable quali
Slide 6: Undisputed power systems leadership mastering all three key materials
Undisputed power systems leadership mastering all three key materials Reliable multi sourcing Application of raw materials Si/SiC/GaN understanding Packaging know-how and World-scale fabs hybridization competence Controller Driver IC Power switch Software + Algorithms Leadership in Power Systems acr
Slide 7: Infineon at the core of IoT
Infineon at the core of IoT – driving digitalization by serving strongly growing multi-application markets Consumer IoT Industrial IoT Automotive IoT Products: MCU – Connectivity (Wi-Fi, BLE, NFC) – Sensors – Security – Power supply & switches Coin cell- Battery- powered powered devices Information
Slide 8: Decarbonization and digitalization accelerating structural growth
Decarbonization and digitalization are accelerating structural growth of Infineon’s target markets Decarbonization Digitalization Infineon serving all target markets as leader in Power Systems and IoT Supported by … From product thinking to Software capability Digital marketing and sales system unde
Slide 9: Our Target Operating Model
Our Target Operating Model: committing to ambitious financial goals and being the sustainability leader Target Operating Model through cycle Revenue growth >10% Segment Result Margin 25% Adj. Free Cash Flow Margin1 10-15% Sustainability leader CO2 neutrality 2030 1 Excluding major frontend buildings
Slide 10: Double-digit growth ahead – five key applications
Double-digit growth ahead – five key applications account for ~60% of growth; well-diversified divisional split FY23 FY22-27e Revenue by division Revenue growth contribution by driver CSS E-Mobility 13% Other Renewables PSS ATV 23% €16.3bn 51% >10% ADAS CAGR AI/Data center IoT GIP Through cycle grow
Slide 11: Target Operating Model: margin expansion through the cycle
Our Target Operating Model: significant margin expansion through the cycle Former FX Upgraded System Portfolio Manu- OPEX Currency Increased Pre-funding solutions & management, facturing scaling costs system value-based technology/ productivity: solutions, High pricing product mix 300mm share SiC/Ga
Slide 12: Free Cash Flow generation increasing over the cycle
Free Cash Flow generation increasing over the cycle, driven by profitable growth and better asset efficiency [EUR bn] Operating cash flow increased sustainably ‒ Accretive investments 6 into high organic growth 5 ‒ Operating cash flow expected 4 to outgrow investments mid-/long-term 3 ‒ Differentiat
Slide 13: Outlook for Q2 FY24 and FY24
Outlook for Q2 FY24 and FY24 Outlook Outlook Q2 FY241 FY241 Revenue ~€3.6bn €16.0bn +/-500m Adj. Gross Margin low to mid-forties Segment Result Margin ~18% low to mid-twenties FCF/adj. FCF ~€200m/~€1.8bn Investments ~€2.9bn D&A ~€1.9bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00
Slide 15: 2030 carbon neutrality goal aligned with Paris 1.5°C target
Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement’s 1.5°C target CO2 burden1 CO2 savings2 3.4 million tons of CO2 equivalents 116.6 million tons of CO2 equivalents Ratio ~1:34 On the road to carbon neutrality3 we achieved Infineon’s CO2 target3 by 2025 and 2030 significant
Slide 16: External recognitions confirm engagement in sustainability
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date MSCI ESG AA CCC to AAA 05/2023 A- climate scoring CDP F to A 12/2022 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 03/2023 77 Dow Jones Sustainability™ Dow Jones Sustain
Slide 18: Wide bandgap applications overview
Wind Energy storage Motor drives Telecom systems Datacenter Solar Fuel cell Mobile charger CAV UPS Main inverter Heat pump LEV Traction Onboard EV charger Charging 18
Slide 19: 30% market share target in SiC by end of decade
30% market share target in SiC by end of decade underpinned by significant capacity expansion Villach Kulim 15x Increase vs. FY23 Infineon is well positioned for strong SiC market growth ~€7bn revenue Steep ramp enables market share gains potential Automotive / Industrial ~ 50 / 50 >€1bn revenue pot
Slide 20: Building the world's largest 200-millimeter SiC power fab
Building the world’s largest and most competitive 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,
Slide 21: Most competitive provider of SiC technology
With a world-scale fab complementing existing strengths, Infineon will be the industry's most competitive provider of SiC technology SiC raw material supply + Cold Split technology ‒ More than 5 qualified SiC wafer and boule suppliers ‒ Increased productivity through Cold Split Superior trench techn
Slide 22: Kulim expansion backed by long-term customer commitments
Expansion of Kulim 3 backed by strong long-term customer commitments Automotive Industrial (incl. PV and ESS) A total of 6 OEMs A total of 5 major customers Design-wins: ~ €5bn Related customer pre-payments: ~ €1bn ‒ Phase 2 of Kulim module 3 expansion is backed by numerous customer commitments ‒ Si
Slide 23: Most comprehensive GaN portfolio
Continuing our leadership in Power Systems with the most comprehensive GaN portfolio Leading IP & strongest R&D force Leveraging foundry + IDM advantages Leading ~450 strong Best-in-class We own We combine We target patent GaN team application key IP and all foundry partner- a leading high double-di
Slide 24: Reducing CO2 and saving resources with GaN solutions
Reducing CO2 and saving resources with Infineon’s GaN solutions Mobile charger Switched mode power supply On-board charger Saving resources with highly Reaching highest efficiency and Increasing efficiency and power density efficient GaN chargers power density with GaN power supplies with GaN On-boa
Slide 25: GaN expected to be preferred technology by 2030
GaN expected to be the preferred technology in multiple core applications by 2030, different transition paths shaping up GaN tipping point reached/in sight GaN transition coming up 2020 2030 2020 2030 HV DCDC Low-power Charger motor control DCDC DCDC Server HV HV Residential Solar On-board HV DCDC c
Slide 26: GaN market accelerating
GaN market accelerating, driven by key power applications ‒ Superior switching performance GaN market forecasts over time results in higher efficiency and lower system cost ~$6bn – $2bn ‒ Applications with tipping point reached or in sight cumulative market potential over the next 5 years CAGR (22-2
Slide 28: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY23 revenue split by product group [€ m] Memory ICs CAGR 23.9% (FY19 – FY23 ) MCUs 9.000 8,242 37% 8.000 7.000 6,516 27% 6.000 28% 4,841 5.000 23% 4.000 3,503 3,521 17% 16% 3.000 2.000 12% 7% Power (incl. SiC) 1.000 Sensors 4% 0 -3% FY19 FY20 FY
Slide 29: Top market position built on system competence
Infineon’s top market position is built on system competence based on an industry-leading product portfolio Automotive semiconductors (2022 total market: $59.4bn; +27.4% y-y) Infineon 12.4% ‒ Total market grew by 27.4% y-y, reaching all-time-high of $59.4bn; market growth clearly supported by conten
Slide 30: Automotive semiconductor market growth at flat vehicle production
Automotive semiconductor market expected to continue its growth journey even at flat light vehicle production growth Applications Market outlook for CY24 ‒ Macroeconomic weaknesses in some key markets may stall car production growth in 2024 Automotive ‒ Vehicle affordability concerns persist, despit
Slide 31: Strong content growth drivers even at flat LV production
Several strong content growth drivers for Infineon, even at flat LV production Several structural trends fueling our growth Overview of growth vectors until 2030 2023 2030 xEV ‒ Strong volume growth of BEVs and PHEVs Share of BEVs ‒ Increasing share of SiC in traction inverters ~15% ~45% produced ‒
Slide 32: World leader in automotive semis benefiting from content growth
Infineon is the world leader in automotive semis, serving all key applications and benefiting strongly from content growth Semiconductor bill-of-material in a car in 2023 and 2030 [USD] up to $2,000 per BEV Key applications for drivetrain semis: ‒ Inverter ‒ On-board charger (OBC) ~$1,300 per BEV ‒
Slide 33: Benefiting from Chinese OEMs; breadth ensures stickiness
Infineon benefits from Chinese OEMs, at the same time portfolio breadth, quality and innovation ensure stickiness Infineon is present in a multitude of different applications ‒ >40 different applications, covering all segments: ADAS, traction inverter, BMS, standard safety, and comfort etc. ‒ Hundre
Slide 34: Number of power MOSFETs per car continues to increase
Number of power MOSFETs per car continues to increase, and drives accelerated growth for the leading portfolio Examples of MOSFET applications Latest portfolio with constant innovation Technologies, packages and voltages OptiMOS™ 7 40 V Power door Power Brake Electric power BMS Transmission Windshie
Slide 36: Broad product portfolio and system understanding
Infineon’s broad product portfolio and system understanding enable higher BoM and allows for compact designs and fast T2M Infineon inverter reference design, covering up to 95% of value P2S (product-to-system approach) ‒ Reference design for up to 300 kW, further customization possible OPTIREG™ 32-b
Slide 37: Leading the growth in IGBTs
Leading the growth in IGBTs (bare die, discrete and modules) including Si/SiC hybrid designs Electric motor power, grouped by 25 kW increments First SiC-MOSFET/IGBT fusion module [m units] 12 Si/SiC hybrid module optionality mainly SiC 9 mainly IGBTs 6 for 2nd motor (intentionally pixelated) 3 Infin
Slide 38: Accelerated growth in SiC
World-scale capacity, unmatched portfolio breadth and our worldwide customer base lead to accelerated growth in SiC Leading SiC technology and production efficiency Most scalable SiC auto portfolio 650 V 750 V 1,200 V ‒ Unrivaled productivity with world- scale fab and most diversified supplier netwo
Slide 39: Extended BMS product portfolio
Infineon’s extended BMS (battery management system) product portfolio paves the way for an exceptional growth story Demand for BMS analog frontend ICs driven by BEV battery capacity BMS analog frontend IC [GWh] Infineon’s revenue growth ~20x Source: S&P Global Mobility, December 2023 ‒ Drivers for B
Slide 41: AURIX MCU gold standard for ADAS/AD
AURIX™ MCU is the gold standard for ADAS/AD, control, safety, and high-speed in-vehicle network Total automotive MCU market development, excl. MPUs and SoCs AURIX™, TRAVEO™, and PSoC™ families [USD bn] TechInsights: Automotive Semiconductor Demand Forecast. October 2023 Infineon’s revenue growth €19
Slide 42: Growth of L1/L2/L2+ main driver of ADAS content
Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2030 Car production by degree of automation (SAE level) Radar is essential to meet decisive requirements of ADAS/AD Distance 5 L0 4,5 4 3,5 Lane Detection Speed 3 L0 2,5 2 L1 1,5 1 0,5 0 L1/L2/L2+ Traffic signs Angle to reach
Slide 44: Infineon and Vitesco intensify partnership on AURIX TC4x
Infineon and Vitesco intensify long-term partnership: AURIX™ TC4x MCUs for E/E architecture to reach volume of > €1bn AURIX™ TC4x MCU family in new E/E architectures ‒ The multi-year agreement takes effect starting in 2027 and will last until mid of next decade ‒ The high-performance AURIX™ TC4x MCU
Slide 45: Benefiting from new E/E architectures
Infineon strongly benefits from new E/E architectures that drive centralization of data and decentralization of power distribution E/E architecture in a software-defined vehicle Components of E/E architecture and corresponding applications addressed by Infineon Safety companion MCU for service- High
Slide 46: Power distribution critical in E/E architecture
Power distribution becomes a critical aspect of the E/E architecture and the SW-defined vehicle New applications for intelligent power distribution ... ... are driving replacement of fuses/relays PROFET™ smart switch Fuse Relay Smart switches are mandatory for SAE L3 and above Infineon’s revenue gro
Slide 47: Premium lighting technology
Industry-leading, premium lighting technology offers enhanced user experience on the road Key facts ‒ Infineon driver IC controls each of the 16K µLEDs individually with outstanding luminous intensity ‒ Lead customer: German premium OEM ‒ Next-generation lighting technology under development Nichia
Slide 48: Awarded for BYD's new zonal E/E architecture
Infineon awarded for BYD’s new E/E architecture based on zonal platform Design-win for three zones ‒ New E/E architecture enabling efficient MCU setup and smart power distribution Superior solution by combining MCU and IPD for new zonal E/E architectureecture ‒ MCU: TRAVEO™ 2G (2 MB to 8 MB on-chip
Slide 50: GIP at a glance
GIP at a glance GIP revenue and Segment Result Margin FY23 revenue split by product group [€ m] Discretes CAGR 11.7% (incl.SiC) Modules (FY19 – FY23 ) (incl. SiC) 2.500 2,205 2.000 1,790 1,418 1,406 1,542 30% 1.500 21% Gate driver ICs 1.000 18% 18% 18% 500 0 FY19 FY20 FY21 FY22 FY23 GIP revenue GIP
Slide 51: Clear leader in discrete IGBTs and IGBT modules
Clear leader in discrete IGBTs and IGBT modules Discrete IGBTs IPMs1 IGBT modules2 2022 total market: $2.5bn 2022 total market: $2.1bn 2022 total market: $4.4bn Infineon 32.1% Mitsubishi 24.3% Infineon 31.7% Fuji 15.9% Sanken 14.3% Mitsubishi 11.9% STMicro 8.5% onsemi 13.0% Fuji 11.7% Mitsubishi 6.5
Slide 52: Positive GIP market outlook
Positive outlook in Green & Efficient Energy applications and moderate growth in Drives confirm positive GIP market outlook Applications % of FY23 segment revenue1 Market outlook for CY24 ~26% ‒ Photovoltaic installations continue to grow but channel inventory limits PV inverter shipments and respec
Slide 53: GIP markets accelerate growth
GIP markets accelerate growth – enabling green energy and driving decarbonization Key facts [€ m] >10% 12.000 10.000 Renewable Energy, Growth ‒ The acceleration of the energy Power Infrastructure, EV charging, Public transition drives GIP markets 8.000 & Commercial >20% Mobility ‒ SiC penetration ac
Slide 54: Potential along green energy chain until 2030
Huge potential along entire green energy chain until 2030 according to IEA Net Zero scenario Generation Infrastructure Consumption $600bn annual Photovoltaic +4,600 GW Grid network Heat pump +420m units investments +200k FC EV Wind power +1,900 GW Grid storage +900 GW H2 Fuel cell1 +200k FC Trucks +
Slide 55: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application 6000 [EUR per MW] [EUR per installation] Mainly SiC 5000 5000 Mainly IGBT 5000 4000 3500 3500 3000 2000 2000 2500 2000 1000 1000 1500 500 60 600 0 100 40 Fossil, nuclear, Wind Solar Grid-scale ba
Slide 56: EV charging a key strategic application
EV charging is a key strategic application for Infineon We cover the full ecosystem from AC to high power DC charging Connectivity solutions Automotive systems High power industrial systems Wirless Charging DC High Power Charging Infineon targets the complete EV charging ecosystem from AC to high-po
Slide 57: Different use cases require different chargers
Different use cases require different types of chargers, incentives and cost positioning will drive the total market Residential Residential Commercial Commercial AC wallbox DC wallbox mid-power charger high-power charger Time to charge >2h >2h <1h <20min 40kWh battery Place of Residential and Resid
Slide 58: Complete system solution for EV charger market
We have a complete system solution for the fast growing EV Charger market EV charging is an attractive business opportunity Infineon extends its market leadership [$ m] Power device market value for EV ‒ Significant CRA signed for EASY 3B SiC-modules DC chargers ‒ Infineon offers the full solution f
Slide 59: Energy efficient rail transport
Energy efficient and reliable rail transport is key to reducing the greenhouse gas emissions Traction application – Key requirements 3.3 kV CoolSiC™ MOSFET XHP™ 2 ‒ Energy efficiency ‒ 10% overall losses reduction ‒ High power density ‒ 10% to 25% system volume reduction ‒ Long lifetime (> 30 years)
Slide 60: Leading position in industrial SiC market
Infineon is manifesting its leading position in the industrial SiC market with above market 5y CAGR and strong outlook >300 More than Design opportunity Industrial revenue CAGR Industrial SiC 3,600 active customers pipeline of >40% – cum. Design-Wins products available being served ~€5bn1 almost €2b
Slide 62: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY23 revenue split by product group [€ m] RF & Sensors CAGR 11.6% (FY19 – FY22 ) HiRel 4.500 4,070 3,798 4.000 3.500 3,268 3.000 2,445 2,650 2.500 2.000 1.500 25% 28% 1.000 24% 24% 23% Power (incl. GaN) 500 0 FY19 FY20 FY21 FY22 FY23 PSS revenue
Slide 63: Weakness in most verticals expected to improve during CY2024
Weakness in most verticals to persist with expected improvement during the course of CY 2024 Applications % of FY23 segment revenue1 Market outlook for CY24 ‒ Server weakness to extend through H1 CY24 with potential recovery in H2 – benefits from AI opportunities due to ~15% increasing semi content
Slide 64: PSS growth built on many applications
PSS's growth is built on many applications from different sectors in power and non-power Computing Communications Smartphones Consumer Industrial ‒ Data center ‒ Base stations ‒ Smartphones ‒ eBikes, eScooter ‒ Power supplies ‒ Enterprise server ‒ Backhaul cellular ‒ Mobile devices ‒ Multicopter ‒ E
Slide 66: Clear leader in MOSFETs, growth potential in power ICs
Infineon is the clear leader in MOSFETs, additional growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2022 total market: USD 13.1bn 2022 total market: USD 32.3bn Infineon 26.7% Texas Instruments 14.7% onsemi 12.6% Analog Devices 11.5% STMicro 11.0% Qualcomm 8.4% Toshiba 5.3% Infineon
Slide 67: AI a strong driver of server revenue
AI will be a strong driver of revenue increase for Infineon’s server business Large North American CPU/GPU manufacturer B In FY24 AI revenue Infineon AI server revenue Large North in our server business is American cloud provider B expected to be a Large North American cloud provider A low triple di
Slide 68: AI systems demand higher power
AI enabled systems demand higher power that further increase semiconductor content x86 and ARM-based processor electricity demand Semiconductor [Watt] SAM CAGR1 2.000 AI GPU / TPU AI Training GPU / TPU 1.500 Unit CAGR1 >40% >50% Avg. BOM CAGR1 >10 % 1.000 Other Servers Server 500 CPUs Unit CAGR1,2 6
Slide 69: Average Infineon BOM per AI server
Average Infineon BOM per AI server about 850 to 1800 USD DCDC AI card converter GPU / TPU (power stages or vertical modules) 48-12V: 50-200 USD 10 USD x8 Server motherboard GPU tray x1 50-60 USD Chassis Power supplies Motherboard 1 Server rack includes x6 Power supply (Si-, SiC and GaN based) 4 AI s
Slide 70: 48V architecture with vertical power solutions
48V architecture combined with Infineon’s vertical power solutions delivers best-in-class total cost of ownership Customer benefits of vertical power delivery ~10% Power stage Power loss1 12V → x core Lateral DCDC voltage Increase power density via smaller size to power converter 48 → 12V AI xPU ena
Slide 71: Transition to 5G drives demand in power semis
Transition to 5G drives demand in power semis for antennas and power supplies Smart and connected Driver #1 Massive growth of data and computing power Driver #2 Higher number of base stations due to dense network Driver #3 ~ 4x higher power semi content per radio board: From ~$25 for MIMO antenna to
Slide 73: 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 High precision Best audio Best price/- power and Small performance performance consumption form factor Presence Face ID Low power detection/ (biometrics), Measure CO2
Slide 74: Sensor markets offer attractive growth potential
Sensor markets targeted by PSS offer attractive growth potential MEMS microphone market Radar IC market (24 GHz and 60 GHz only) [USD m] [USD m] 2,007 2,085 682 1,888 1,576 552 1,193 431 967 326 207 150 FY 2023 2024 2025 2026 2027 2028 FY 2023 2024 2025 2026 2027 2028 Source: Infineon estimates Sour
Slide 76: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY23 revenue split by product group [€ m] CAGR 33.6% MCUs (FY19 – FY23 ) 2.500 Security ICs 2,046 2.000 1,822 1.500 1,397 974 1.000 642 500 21% 24% Connectivity 12% 13% 13% 0 FY19 FY20 FY21 FY22 FY23 CSS revenue CSS Segment Result Margin Key cust
Slide 77: Market demand weak across consumer segments
Market demand remains weak across consumer segments influenced by high inventories and continuing macro economic risks Applications % of FY23 segment revenue Market outlook for CY24 Industrial IoT ‒ Continued macro economic risks limit growth, while trends of Industry 4.0 and Industrial IoT remain H
Slide 78: CSS empowers the world to connect through smart solutions
CSS empowers the world to easily connect through smart and trusted solutions Industrial and Consumer IoT Payment, ID, Ticketing Applications Industrial Automotive Smart Home Gaming Wearables Payment Identification Compute CSS capabilities Wireless Connectivity Security Software 2024-02-06 Copyright
Slide 79: Infineon acquires UWB pioneer 3db Access
Infineon acquires Ultra-Wideband (UWB) pioneer 3db Access to further strengthen our connectivity portfolio UWB chipset market growth1 [USD bn] 3.1 CAGR: +13% The acquisition of 3db Access enables Infineon to: − Add UWB to our connectivity range, including Wi-Fi, Bluetooth/Bluetooth Low 1.7 Energy an
Slide 80: Infineon's USP to capture IoT market potential
Infineon’s USP to capture the IoT market potential IoT market growth Four success factors to differentiate [units bn] CAGR: 11% Ecosystem Product to System (2023 – 2028) Development (Product innovation incl. AI) 11.5 P2S 6.8 Focus on Broader Security Markets 2023 2028 ABI Research: Wireless Connecti
Slide 81: Journey to a leading IoT solution provider
Financial synergy success marked by our journey to becoming a leading IoT solution provider STEP 1 STEP 2 STEP 3 STEP 4 Product Sell Synergy Sell System Sell Solution Sell Products: Products: Products: Additional offering: Sensors Sensors Wireless and MCU Performance Power Power Hardware Security Ad
Slide 82: CSS product portfolio and roadmap for IoT
CSS offers a compelling product portfolio and roadmap for IoT Microcontrollers (PSoC™ and XMC™) AIROC™ Wi-Fi and Combos ‒ PSoC™ family for general purpose, ‒ Wi-Fi standalone and Wi-Fi & Bluetooth® XMC™ family for industrial Combo chips for end devices ‒ Strength in low power, high ‒ Focus on innova
Slide 83: Edge-AI a key enabler of IoT
Intelligence moves into devices - Edge-AI is a key enabler of IoT and beyond, offering a significant market opportunity Edge-AI and benefits Tiny ML worldwide device shipment ‒ Intelligent IoT devices require substantial processing at the edge [bn units] ‒ Edge-AI ensures optimal use of network, com
Slide 84: Edge-AI enabling ecosystem
Infineon‘s Edge-AI enabling ecosystem allows for portfolio expansion to offer differentiated solutions for smarter IoT devices Differentiated Edge-AI based Edge-AI optimized hardware Infineon‘s ecosystem as an solutions for a broad selection products from Infineon enabler for Edge-AI of use cases In
Slide 85: Differentiated Edge-AI based solutions
Going forward, we will capture value through differentiated Edge-AI based solutions to enable new use cases for our customers Examples for Infineon’s differentiated Edge-AI based solutions Infineon AI tools Audio classification Predictive maintainence Fall detection + MCU in ModusToolbox™ connectivi
Slide 86: Leading in security solutions
Leading in security solutions: Wide-spanning offering for trusted contactless transactions, trusted identities, and authentication Device Authentication IoT Security ‒ Battery authentication ‒ Automotive Security ‒ Printer authentication ‒ Cellular IoT Nodes ‒ Smart inhaler ‒ Industrial Security ‒ W
Slide 88: Strong presence in all regions; balanced customer portfolio
Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales FY23 revenue by region Revenue by sales channel Distribution Top-10 direct customers1 partners1 Americas EMEA (excl. Germany) 15% 14% Japan Germany 11% 12% Distribution Top-10 direct
Slide 89: Group financial performance
Group financial performance Revenues and Segment Result USD exchange rate [EUR m] Average revenue exchange rate Q1 Q4 Q1 FY23 FY23 FY24 ø USD/EUR 1.02 1.09 1.08 Order backlog1 [EUR bn] 28.0% 28.6% 26.1% 25.2% 22.4% 1,107 1,180 1,067 1,044 831 1 See notes for definition 2024-02-06 Copyright © Infineo
Slide 90: Automotive (ATV)
Automotive (ATV) Revenues Segment Result [EUR m] [EUR m] 28.4% 31.1% 27.4% 28.5% 27.1% ‒ Calendar year-end inventory management by customers resulted in expected revenue decline ‒ Our leading product portfolio and content expansion driven by e-mobility, ADAS and innovative electrical-electronic arch
Slide 91: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result [EUR m] [EUR m] 28.8% 32.4% 30.3% 28.5% 26.7% ‒ Revenue decline partly from seasonality as well as from inventory adjustments by industrial customers ‒ Demand for industrial drives is expected to further weaken, while markets for home appliances c
Slide 92: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result [EUR m] [EUR m] 28.9% 21.3% 20.8% 18.9% 12.9% ‒ Revenue decline mainly driven by MOSFETs for consumer-facing applications, whereas smartphone components saw a small uptick ‒ Most end markets of PSS are facing weak demand and are experiencing a pro
Slide 93: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result [EUR m] [EUR m] 28.2% 25.1% 23.5% 18.4% 10.2% ‒ Revenue and segment result decrease driven by end market weakness and on-going inventory correction ‒ Consumer, compute, communication and IoT as well as security markets characterized by high inve
Slide 94: 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] 2024-02-06 Copyright © Infineon Technologies AG 2024. All rights reserved. 94
Slide 95: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 47.2 % 46.6 % 44.5 % 43.6 % 43.2 % 12.3% 11.8% 12.1% 12.5% 13.8% 10.4% 10.7% 9.6% 9.7% 9.6% Gross margin as reported Gross profit as reported R&D expenses as % of revenue R&D expenses SG&A expenses as % of revenue SG&A expenses Ther
Slide 96: Working capital
Working capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 185 140 143 149 153 Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 32 70 69 66 75 72 29 31 31 30 1 See notes for definition 2024-02-06 Copyright © Infineon Technologies
Slide 97: Liquidity development
Liquidity development Historical liquidity development [EUR m] Gross Cash Gross Debt Net Cash/Debt 2024-02-06 Copyright © Infineon Technologies AG 2024. All rights reserved. 97
Slide 99: 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] Total cash return to shareholders via dividends [EUR m] ‒ Proposed dividend for FY23: €0.35 per share ‒ Proposed dividend payout of €456m for FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 100: Conservative financial policy and 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 31 December 2023) Gross Cash1 €1bn + at least 10% of revenues → €2.6bn €1bn + 11% of revenues → €2.7bn Gross Debt2 ≤ 2.0x EBITDA 1x EBIT
Slide 101: Maturity profile
Maturity profile Calendar years 2024 to 2033 [EUR m; USD m; nominal values] $350 €600 €750 €750 €600 €750 €650 €500 $350 $350 $350 $350 $235 $250 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Corporate bonds under the EMTN program US PP 2016 Notes Hybrid bonds1 US PP 2021 Notes (Jun 2027, Bilate
Slide 102: Cinfineon
Cinfineon
Slide 103: 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
Slide 104: Glossary
Glossary AC alternating current ICE internal combustion engine ACC adaptive cruise control IGBT insulated gate bipolar transistor AD automated driving IoT internet of things ADAS advanced driver assistance system IPM intelligent power module AEB autonomous emergency braking LED light-emitting diode
Slide 105: Notes and ESG footnotes
Notes and ESG footnotes 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 –
Slide 106: Financial calendar
Financial calendar Date Event Location 23 Feb 2024 Annual General Meeting 29 Feb 2024 Morgan Stanley The Investment Forum Middle East Abu Dhabi 1 Mar 2024 Susquehanna Technology Conference virtual 4 Mar 2024 Morgan Stanley US Technology, Media & Telecom Conference San Francisco 7 Mar 2024 Oddo BHF T
Slide 107: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Visitor address Executive Vice President Finance, Treasury & Investor Relations Am Campeon 1 – 15 +49 89 234-23766 885579 Neubiberg alexander.foltin@infineon.com Germany Daniel Györy Isabell Diel Senior Director Senior Manager Investor Relat

Infineon Tech — Q1 2024 Earnings Presentation on 6ix

Infineon Technologies — Infineon Tech — Q1 2024 Earnings Presentation

Slide 1: First Quarter FY 2024 Quarterly Update

Slide 2: Infineon at a glance

Slide 3: Global player, #1 in power semiconductors, #5 in microcontrollers

Slide 4: Well-balanced portfolio among segments and key applications

Slide 5: Technology and quality leadership fostering long-term partnerships

Slide 6: Undisputed power systems leadership mastering all three key materials

Slide 7: Infineon at the core of IoT

Slide 8: Decarbonization and digitalization accelerating structural growth

Slide 9: Our Target Operating Model

Slide 10: Double-digit growth ahead – five key applications

Slide 11: Target Operating Model: margin expansion through the cycle

Slide 12: Free Cash Flow generation increasing over the cycle

Slide 13: Outlook for Q2 FY24 and FY24

Slide 14: ESG: Targets and achievements

Slide 15: 2030 carbon neutrality goal aligned with Paris 1.5°C target

Slide 16: External recognitions confirm engagement in sustainability

Slide 17: Infineon's wide bandgap strategy

Slide 18: Wide bandgap applications overview

Slide 19: 30% market share target in SiC by end of decade

Slide 20: Building the world's largest 200-millimeter SiC power fab

Slide 21: Most competitive provider of SiC technology

Slide 22: Kulim expansion backed by long-term customer commitments

Slide 23: Most comprehensive GaN portfolio

Slide 24: Reducing CO2 and saving resources with GaN solutions

Slide 25: GaN expected to be preferred technology by 2030

Slide 26: GaN market accelerating

Slide 27: Automotive

Slide 28: ATV at a glance

Slide 29: Top market position built on system competence

Slide 30: Automotive semiconductor market growth at flat vehicle production

Slide 31: Strong content growth drivers even at flat LV production

Slide 32: World leader in automotive semis benefiting from content growth

Slide 33: Benefiting from Chinese OEMs; breadth ensures stickiness

Slide 34: Number of power MOSFETs per car continues to increase

Slide 35: Electromobility

Slide 36: Broad product portfolio and system understanding

Slide 37: Leading the growth in IGBTs

Slide 38: Accelerated growth in SiC

Slide 39: Extended BMS product portfolio

Slide 40: Automated Driving

Slide 41: AURIX MCU gold standard for ADAS/AD

Slide 42: Growth of L1/L2/L2+ main driver of ADAS content

Slide 43: E/E architecture

Slide 44: Infineon and Vitesco intensify partnership on AURIX TC4x

Slide 45: Benefiting from new E/E architectures

Slide 46: Power distribution critical in E/E architecture

Slide 47: Premium lighting technology

Slide 48: Awarded for BYD's new zonal E/E architecture

Slide 49: Green Industrial Power

Slide 50: GIP at a glance

Slide 51: Clear leader in discrete IGBTs and IGBT modules

Slide 52: Positive GIP market outlook

Slide 53: GIP markets accelerate growth

Slide 54: Potential along green energy chain until 2030

Slide 55: Green energy generation provides large business opportunities

Slide 56: EV charging a key strategic application

Slide 57: Different use cases require different chargers

Slide 58: Complete system solution for EV charger market

Slide 59: Energy efficient rail transport

Slide 60: Leading position in industrial SiC market

Slide 61: Power & Sensor Systems

Slide 62: PSS at a glance

Slide 63: Weakness in most verticals expected to improve during CY2024

Slide 64: PSS growth built on many applications

Slide 65: PSS – Power

Slide 66: Clear leader in MOSFETs, growth potential in power ICs

Slide 67: AI a strong driver of server revenue

Slide 68: AI systems demand higher power

Slide 69: Average Infineon BOM per AI server

Slide 70: 48V architecture with vertical power solutions

Slide 71: Transition to 5G drives demand in power semis

Slide 72: PSS – RF and Sensing

Slide 73: Main applications addressed by PSS sensors portfolio

Slide 74: Sensor markets offer attractive growth potential

Slide 75: Connected Secure Systems

Slide 76: CSS at a glance

Slide 77: Market demand weak across consumer segments

Slide 78: CSS empowers the world to connect through smart solutions

Slide 79: Infineon acquires UWB pioneer 3db Access