Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q3 FY2024 Earnings Presentation
19 slides from Infineon Technologies's earnings presentation, Aug 5, 2024
Slide 1: Third Quarter FY 2024 Analyst Call
Third Quarter FY 2024 Analyst Call Infineon Technologies AG Investor Relations 1
Slide 2: Group financial performance
Group financial performance Revenues and Segment Result USD exchange rate [EUR m] Average revenue exchange rate Segment Result Revenues Segment Result Margin -9% Q3 Q2 Q3 +2% FY23 FY24 FY24 4,149 ø USD/EUR 1.09 1.09 1.08 4,089 3,702 3,632 3,702 Order backlog1 [EUR bn] 32 29 24 24 22 26.1% 25.2% 22.4
Slide 3: Automotive (ATV)
Automotive (ATV) Revenues Segment Result [EUR m] [EUR m] Revenues Segment Result Segment Result Margin -1% +2% 2,129 2,162 2,085 2,078 2,112 583 617 564 537 512 27.4% 28.5% 27.1% 24.6% 25.4% ‒ Slight q-o-q revenue increase – volume gains in microcontrollers moderately exceeding ongoing inventory cor
Slide 4: Infineon and Swoboda jointly develop high-performance current sensor modules for automotive applications
Infineon and Swoboda jointly develop high-performance current sensor modules for automotive applications Core-less sensor Core-based sensor ‒ The novel core-less sensing technology enables highly sensor IC miniaturized integrated sensor modules by discarding the sensor IC field bulky core concentrat
Slide 5: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -16% +1% 565 582 487 469 475 171 166 130 30.3% 89 88 28.5% 26.7% 19.0% 18.5% ‒ Stable revenue trend, reflecting late-cycle business ‒ Demand for decarbonization-related applications rem
Slide 6: With opening Kulim 3, Infineon is on track to becoming the industry's most competitive provider of SiC technology
With opening Kulim 3, Infineon is on track to becoming the industry's most competitive provider of SiC technology SiC raw material supplier network ‒ More than 6 qualified SiC wafer and boule suppliers ‒ Globally diversified and resilient Superior trench technology ‒ 30% more chips per wafer than pl
Slide 7: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result [EUR m] [EUR m] Segment Result Segment Result Margin Revenues -18% +5% 917 912 765 749 191 713 172 99 20.8% 18.9% 64 70 12.9% 9.0% 9.3% ‒ PSS turning the corner after six quarters of revenue decline; rising underutilization charges capping margin
Slide 8: AI will be a strong driver of revenue increase for Infineon's server business
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 9: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -23% -1% 474 490 371 366 119 364 90 25.1% 37 42 42 18.4% 10.2% 11.3% 11.5% ‒ Revenue continues to stabilize as IoT and security market demand is bottoming ‒ Distributor inventories wo
Slide 10: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 1,821 1,807 1,599 1,490 1,403 496 518 512 509 487 396 399 395 375 390 44.5 % 43.6 % 43.2 % 38.6 % 40.2 % 12.1% 12.5% 13.8% 13.4% 13.7% 10.7% 10.3% 10.5% 9.7% 9.6% Gross margin as reported Gross profit as reported R&D expenses as % o
Slide 11: 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] 1,057 614 768 393 700 326 653 643 470 450 456 467 441 82 -1,597 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 11
Slide 12: Working capital, in particular trade working capital components
Working capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 3,503 3,477 3,754 3,974 4,330 4,404 4,429 2,901 185 178 180 2,071 1,763 149 153 Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 2,765 2,014 1,991 2,000 2,142 2,193 2,160
Slide 13: Development of liquidity and debt
Development of liquidity and debt Capital structure [EUR m] Gross Cash Gross Debt Net Cash/Debt 3,590 2,986 2,712 2,583 2,345 -4,733 -1,143 -4,679 -1,693 -5,398 -2,686 -5,386 -3,041 -5,941 -3,358 Repayment of 350m USD debt at maturity 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights
Slide 14: Outlook for Q4 FY24 and FY24
Outlook for Q4 FY24 and FY24 Outlook Outlook Q4 FY241 FY241 Revenue ~€4.0bn ~€15.0bn Adj. Gross Margin low-forties Segment Result Margin ~20% ~20% FCF/adj. FCF ~€-200m/~€1.5bn Investments ~€2.8bn D&A ~€1.9bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00 2 Including the amortization
Slide 15: Key points
Key points Sequential uptick in revenue and earnings Q3 FY24 – €3.7bn revenue, 19.8% Segment Result Margin Bottoming phase of the cycle − Modest market recovery has started, albeit slow and uneven across end markets − Kulim 3: on track to becoming most competitive SiC wafer fab − AI business acceler
Slide 16: Questions & Answers
Questions & Answers 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 16
Slide 17: Cinfineon
Cinfineon
Slide 18: 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 19: 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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