Infineon Technologies AG · XETR:IFX
Infineon Technologies — Q3 FY2019 Earnings Presentation
16 slides from Infineon Technologies's earnings presentation, Aug 1, 2019
Slide 1: Third Quarter FY 2019 Analyst Call
Third Quarter FY 2019 Analyst Call Infineon Technologies AG Investor Relations
Slide 2: Group financial performance
Group financial performance Revenues and segment result USD impact on revenue [EUR m] Revenues Segment result Margin Average exchange rate Q3 Q2 Q3 +4% FY18 FY19 FY19 +2% ø USD/EUR 1.19 1.14 1.12 Revenue development 2,047 2,015 1,941 1,970 1,983 q-q y-y As reported +2% +4% At const. USD/EUR +1% +1%
Slide 3: Automotive (ATV)
Automotive (ATV) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin + 6% + 1% 867 875 888 836 846 127 120 117 112 98 1.6 1.5 1.1 14.4% 14.6% 0.8 0.8 13.8% 12.8% 11.0% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 › Co
Slide 4: Industrial Power Control (IPC)
Industrial Power Control (IPC) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin + 2% + 3% 71 73 361 69 67 349 352 347 357 55 1.4 1.4 1.1 20.3% 20.2% 19.6% 19.3% 0.7 0.7 15.4% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19
Slide 5: Power Management & Multimarket (PMM)
Power Management & Multimarket (PMM) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin + 3% + 1% 651 617 598 580 591 181 155 145 1.8 137 132 1.7 27.8% 25.1% 23.6% 24.2% 0.9 22.3% 0.7 0.5 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 FY18 FY1
Slide 6: Digital Security Solutions (DSS)
Digital Security Solutions (DSS) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin - 5% + 2% 175 163 164 167 149 1.3 29 24 0.9 0.9 0.8 0.8 16.6% 19 19 16 14.7% 11.6% 11.4% 10.7% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY
Slide 7: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A Gross profit as Gross margin R&D expenses R&D expenses SG&A expenses SG&A expenses reported [EUR m] as reported [EUR m] as % of revenue [EUR m] as % of revenue 236 236 243 814 218 223 227 779 210 218 212 214 742 749 735 38.2% 39.8% 39.5% 37.8% 36.5% 12.0%
Slide 8: Investments and D&A
Investments and D&A Investments D&A [EUR m] Segment Result-related D&A Non-SR-related D&A [EUR m] [EUR m] 417 408 233 238 226 230 219 21 21 349 344 25 26 26 217 212 201 204 280 193 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 2019-08-01 Copyright © Infineon Technol
Slide 9: Cypress Financing: Important first steps accomplished
Cypress Financing: Important first steps accomplished STEP 1 Underwriting of full acquisition amount by 3 banks Confirmation of investment grade rating by Standard & STEP 2 Poor's STEP 3 Equity de-risking: Raise of €1.5bn via ABB Successful syndication of acquisition facility to 20 STEP 4 national a
Slide 10: FCF and RoCE
FCF and RoCE FCF from continued operations RoCE [EUR m] RoCE (excl. PPA, Deferred Tax Effects, RoCE as reported RF Power sale, Cypress acquisition) 30% 227 192 20% 63** -137 -221* Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY18 FY19 FY19 FY19 FY18 FY18 FY19 FY19 FY19 • Including the acquisition of Siltectra
Slide 11: Outlook for Q4 FY19 and FY19
Outlook for Q4 FY19 and FY19 Outlook Q4 FY19* Outlook FY19* (compared to Q3 FY19) Increase of 1% Revenue €8.0bn +/- 2%-points Segment At the mid-point of the Result revenue guidance: ~16% Margin ~14.5% Investments in FY19 ~€1.5bn D&A in FY19 ~€1.0bn** * Based on an assumed average exchange rate of $
Slide 12: Key points
Key points Q3 FY19 came in as anticipated, slightly better in terms of segment result: › Revenue of € 2,015m: +4% y-y / +2% q-q › Segment result margin: 15.7% In a stabilizing market… › Full year guidance confirmed › Another quarter of a small positive revenue development ahead … we are balancing cy
Slide 13: Questions & Answers
Questions & Answers 2019-08-01 Copyright © Infineon Technologies AG 2019. All rights reserved. 13
Slide 14: Appendix: Book-to-bill ratio - Definition
Appendix: Book-to-bill ratio - Definition Book-to-bill = Orders received / Revenue in Euro per quarter − Orders received contains order backlog and external customer forecast External customer forecast includes consignment stock forecast by customers Not included are internal consignment replenishme
Slide 15: 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
Slide 16: Cinfineon
Cinfineon Part of your life. Part of tomorrow.
Infineon Technologies — Q3 FY2019 Earnings Presentation on 6ix