Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q4 2022 Earnings Presentation
92 slides from Infineon Technologies's earnings presentation, Nov 15, 2022
Slide 1: Fourth Quarter FY 2022 Quarterly Update
Fourth Quarter FY 2022 Quarterly Update Infineon Technologies AG Investor Relations 1
Slide 2: Infineon at a glance
Infineon at a glance Addressing long-term high-growth trends FY22 revenue by segment Decarbonization 13% Automotive (ATV) › CO2 saving › Energy efficiency Digitalization Industrial Power Control (IPC) 45% › Sustainability 29% › Productivity Power & Sensor Systems (PSS) › Comfort Connected Secure Sys
Slide 3: Global player, #1 in power semiconductors, #4 in microcontrollers
Infineon is a global player, clear #1 in power semiconductors, and ranked #4 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2021 total market: USD 592bn1 2021 total market: USD 27.5bn2 2021 total market: USD 22.0bn1 Intel 12.9% Infineon 19.7 N
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 FY22 revenue of €14,218m by segment and key application CSS 13% E-mobility; 10% Renewables; 6% Other; 31% ADAS; 5% ATV Data center; 6% 45% PSS IoT; 8% 29% Payment; 2% BPA/Power
Slide 5: Decarbonization and digitalization accelerating structural growth
D E C A R B O N I Z AT I O N D I G I TA L I Z AT I O N … are accelerating structural growth of Infineon’s target markets Infineon serving all target markets as Leader in Power Systems and IoT Supported by … P2S From product thinking to Software capability Digital marketing and sales system understan
Slide 6: Leader in Power Systems: enabling decarbonization with holistic system approach
Leader in Power Systems: Infineon enabling decarbonization by delivering maximum value to customers with holistic system approach Electric vehicle Solar inverter Server power Inverter – BMS – OBC – DC/DC DC/DC – DC/AC AC/DC – DC/DC – PoL – Power stage Si/SiC/GaN Controller Driver IC Power switch Sof
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 Connectivity Digital Real-world Software/ world applications Ecosystem Products: MCU – Connectivity (Wi-Fi, BLE, NFC) – Sensors – Security – Power sup
Slide 8: Upgraded Target Operating Model
Upgraded Target Operating Model: committing to more ambitious financial goals and being the sustainability leader Target Operating Model through cycle Previously Revenue growth >10% 9%+ Segment Result Margin 25% 19% Invest-to-sales Adj. Free Cash Flow Margin1 10-15% 13% Sustainability leader – CO2 n
Slide 9: Double-digit growth ahead – five key applications
Double-digit growth ahead – five key applications account for ~60% of growth; well-diversified divisional split FY22 FY22-27e Revenue by division Revenue growth contribution by driver E-Mobility CSS 13% Other ATV Renewables 45% ADAS >10% PSS €14.2bn CAGR Data center 29% IoT Through-cycle growth rate
Slide 10: Significant margin expansion through the cycle
Upgraded Target Operating Model: Significant margin expansion through the cycle Former Upgraded FX System Portfolio Manu- OPEX scaling Currency Increased Pre-funding solutions & management, facturing costs system High twenties value-based technology/ productivity: solutions, pricing product mix 300
Slide 11: Free Cash Flow generation increasing over the cycle
Free Cash Flow generation increasing over the cycle, driven by profitable growth and better asset efficiency [€ bn] Operating cash flow strongly rising › Accretive investments 6 into high organic growth 5 › Operating cash flow expected to outgrow investments › Differentiated in-house 4 3 manufacturi
Slide 12: Upgraded Target Operating Model leads to superior value creation
Putting it all together – Upgraded Target Operating Model leads to superior value creation Target Operating Model through cycle Reported RoCE to reach 2x cost-of-capital level Revenue growth >10% 12.6% Segment Result Margin 8.4% WACC 25% Adj. Free Cash Flow Margin1 10-15% FY21 FY22 FY23e FY24e FY25e
Slide 13: Outlook for Q1 FY23 and FY23
Outlook for Q1 FY23 and FY23 Outlook Outlook Q1 FY231 FY231 Revenue ~ €4.0bn €15.5bn +/- €500m Adj. Gross Margin ~ 45% Segment Result Margin ~ 25% ~ 24% FCF/adj. FCF ~ €0.8bn / ~ €1.5bn Investments ~ €3.0bn D&A ~ €1.9bn2 1 Based on an assumed average exchange rate of $1.00 for €1.00 2 Including the
Slide 14: ESG: targets and achievements
ESG: targets and achievements 14
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 3.0 million tons of CO2 equivalents Ratio ~1:33 ~100 million tons of CO2 equivalents Net ecological benefit: CO2 emissions reduction of more than 97 million tons On the road to carbon
Slide 16: External recognitions confirm our engagement in sustainability
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date CCC to MSCI ESG AA 05/2022 AAA B climate scoring CDP F to A 12/2021 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 02/2022 83 Dow Jones Sustain- Dow Jones Sustainability
Slide 17: Infineon's wide bandgap strategy
Infineon‘s wide bandgap strategy 17
Slide 18: Transition to WBG will differ by application
Transition to WBG will vastly differ by application with Si expected to remain technology of choice for many of them 2020 2030 xEV High power EV Charging SiC with advantage in high power switching Energy Solar Storage performance and power density Systems On-board Charger GaN superior switching perf
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 10x Increase by 2027 vs. today Villach Kulim Infineon is well positioned for strong SiC market growth Steep ramp enables market share gains ~ €3bn total capacity ~ €1bn total capacity FY25e FY27e Villach Ku
Slide 20: SiC momentum: new design-wins in auto and industrial
SiC momentum further accelerating: significant new design-wins in auto, continuous leadership in industrial applications Most recent automotive SiC design-wins Most recent industrial SiC design-wins Stellantis US OEM Japanese OEM Close to €3bn design-win volume in last 4 months More than 3,600 activ
Slide 21: Comprehensive SiC strategy mastering key success factors
With its comprehensive SiC strategy Infineon is mastering all key success factors SiC raw material Superior trench Packaging Deep system supply technology portfolio understanding › 4 qualified SiC wafer and › 1 – 2 generations ahead › Best-in-class in-house › Decades of experience in boule suppliers
Slide 22: CoolSiC trench design with optimized performance and reliability
CoolSiC™ trench design with optimized performance and reliability Infineon’s trench moves the boundaries 1st Gen. trench with superior performance 8 High Infineon D Gen 1 Planar trench 7 Gen Gen FoM = RDS(on)*Qg [Ω*nC] 1 2 lower losses 6 F Planar Reliability C Gen 2 5 Planar I Gen 2 Planar A Gen 2 P
Slide 23: Cold Split technology reduces raw material losses
Our Cold Split technology leads to significant reduction of raw material losses during SiC manufacturing # of wafers Cold Split technology Crystal Technology (indexed) SiC boule 1x Boule Sawing Today Grinding Upper half Boule- splitting Traditional wire sawing wastes ~75% of raw material! Epitaxy Wa
Slide 24: GaN: immense market opportunity and design-wins
GaN: immense market opportunity with Infineon achieving significant design-wins across key power applications GaN market overview for power and RF (GaN-on-Si) applications GaN design-wins of around €1.5bn [USD bn] 3 Strong design-win momentum for power and RF applications CAGR 2,5 2.5 +52% RF RF 2 C
Slide 25: Automotive
Automotive 25
Slide 26: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY22 revenue split by product group [€ m] Memory ICs CAGR (FY18 – FY22) 18.7% MCUs 7.000 6,516 6.000 4,841 23% 5.000 3,284 3,503 3,521 4.000 16% 3.000 14% 12% 2.000 1.000 4% Sensors 0 FY18 FY19 FY20 FY21 FY22 Power (incl. SiC) ATV revenue ATV Seg
Slide 27: Automotive semiconductor market expected to continue growth
Automotive semiconductor market expected to continue its growth journey Applications Market Outlook for CY23 › Ongoing risks due to a) macro-economic slowdown b) higher energy costs c) weaker consumer confidence › However, demand overhang and OEM order backlog should stabilize car production › Posit
Slide 28: 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 (2021 total market: $46.7 bn; +31.5% yoy) Infineon 12.7% › total market grew by 31.5% yoy, reaching all-time-high of $46.7bn, exceeding previous high in 2018 of $38.2
Slide 29: Electromobility
Electromobility 29
Slide 30: xEV penetration continues at all-time high
xEV (PHEV + BEV) penetration continues on all-time high level globally in Q3 CY22, China with strongest increase [units k] penetration 26.7% 6,750 17.0% 14.0% 14.0% 14.2% 3,240 7.4% 8.4% 4.4% 8.4% 2,341 5.6% 4.2% 2,803 2.2% 3,407 1,782 1,405 0,328 0,590 1,336 0,668 0,252 CY20 CY21 Q3 CY20 CY21 Q3 CY
Slide 31: BEV semi content expected to grow to ~$1,500 by 2027
Infineon addresses 100% of power semiconductors for all drivetrains; BEV semi content expected to grow from ~$1,000 to ~$1,500 by 2027 2021 ICE semi content by product1 2021 average vehicle semi content1 2027 BEV semi content scenario ~$500 ~$600 ~$870 ~$1,000 , $1.500 Upside potential drivetrain po
Slide 32: Most comprehensive system solutions for all xEV segments
Infineon offers the most comprehensive system solutions addressing all xEV segments: pure EV and all types of hybrids Infineon offers a full portfolio for the control loop of an electric car SiC and IGBT for high-voltage battery MOSFETs in FHEV, PHEV, BEV for 48 V MHEV Rotor position sensor High-vol
Slide 33: Every second car electrified in 5 years; SiC to lead
In 5 years, every second car will be fully or partially electrified; SiC to take lead over silicon in the 2027-2030 period Car production by fuel type xEV drivetrain power semiconductor TAM by technology [m units] [€bn] 100 12 80 9 ~55% ~45% 6 60 3 ~55% ~45% 0 ~75% 40 2021 2027 2030 Si SiC GaN > 50%
Slide 34: Around 20 design-wins in SiC across auto applications
Around 20 design-wins in SiC across all auto applications: traction inverter, OBC, DC-DC World’s leading IGBT supplier Latest CoolSiC™ design-wins including traction inverter, OBC, DC-DC Volkswagen German Luxury OEM Stellantis Hyundai Xpeng SAIC Renault Mini Li Auto Changan Hozon Zeekr Cadillac SAIC
Slide 35: Rapid execution of BMS strategy
Rapid execution of our BMS strategy showing great success Infineon’s comprehensive BMS portfolio Selected balancing IC customers PMIC Wireless communications ICs High-volume OEM Transceiver Battery monitoring ICs MCU Premium car OEM F-RAM Power switch Chinese bus OEM Pressure sensor Gas sensor NETA
Slide 36: Automated Driving
Automated Driving Cinfineon
Slide 37: Growth of L1/L2/L2+ drives ADAS semiconductor content
Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2027 Car production by degree of automation (SAE level) Radar is essential to meet decisive requirements of ADAS/AD 100% Distance 5 4,5 4 L0 3,5 80% Lane Detection 3 Speed L0 2,5 2 1,5 1 Camera 60% 0,5 Lidar 0 Standard radar
Slide 38: Radar systems expected to grow 24% annually
The number of radar systems is expected to grow by 24% annually, driven by new applications and increasing penetration Today Penetration of radar systems per SAE level Future Penetration of Max. systems % of new cars by SAE level Max. systems Penetration of Total: 55m systems radar systems per car 1
Slide 39: Shaping transition to CMOS-based radar solutions
We are shaping the transition to CMOS-based radar solutions; leader in radar ICs today and in MCUs by 2026 Growth of Infineon’s CMOS-based radar ICs Current Next › Infineon’s 28 nm CMOS radar IC is currently sampling #1 › Overwhelming customer feedback regarding key performance m/s of > 50% today in
Slide 40: User experience meets E/E architecture
User experience meets electrical/electronic (E/E) architecture Software-defined car Digital cockpit E/E architecture | MCUs | sensors | actuators MEMS sensor technology | MEMS microphones Car of the future Premium Comfort Matrix light Motor control ICs | MOSFETs 2022-11-15 Copyright © Infineon Techn
Slide 41: Software-defined cars through architectural transformation
Software-defined cars will become a reality through architectural transformation; Infineon’s MCUs to win big here Domain architecture Mixed domain/zone architecture Full car computer Telematics Telematics Telematics Gateway Central ECU Central Car Computer Full Car Computer Vehicle Vehicle Info- Inf
Slide 42: Innovations defining the digital cockpit of tomorrow
Game changing innovations from Infineon are defining the digital cockpit of tomorrow Augmented head-up display based on MEMS mirrors Internal and external MEMS microphones Example #1 Active noise cancellation Example #2 Emergency vehicle detection 2022-11-15 Copyright © Infineon Technologies AG 2022
Slide 43: Premium lighting technology enhances user experience
Industry-leading, premium lighting technology offers enhanced user experience on the road Key facts Advantages: Enhanced driving experience, higher safety, more energy efficient › Infineon driver IC controls each of the 16K µLEDs individually with outstanding luminous intensity › Lead customer: EU p
Slide 44: Motor control ICs address fast-growing comfort features
Infineon’s suite of motor control ICs lead the way to address fast- growing comfort features Application examples › Comfort features making further inroads into cars; e.g., seats in a mid-range car feature about seven motors today › Up to ~€80 semiconductor BoM per vehicle for comfort features › Inf
Slide 45: Industrial Power Control
Infineon Industrial Power Control
Slide 46: IPC at a glance
IPC at a glance IPC revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) 7.9% 2.000 1,323 1,790 Discretes Modules 1.800 1,418 1,406 1,542 (incl.SiC) (incl. SiC) 1.600 1.400 21% 1.200 18% 18% 1.000 19% 18% 800 600 400 200 0 FY18 FY19 FY20 FY21 FY22 IPC revenu
Slide 47: Renewable energy, infrastructure and EV-charging show strong growth
Renewable energy generation, infrastructure & EV-charging continue to see very strong growth momentum Applications Market Outlook for CY23 (% of FY22 segment revenue) Automation and Drives › Analysts have reduced unit growth while still forecasting market growth rates above long-term average ~35% ›
Slide 48: Clear leader in discrete IGBTs and IGBT modules
Clear leader in discrete IGBTs and IGBT modules Discrete IGBTs IPMs1 IGBT modules2 2021 total market: $2.2bn 2021 total market: $2.0bn 2021 total market: $4.2bn Infineon 28.9% Mitsubishi 29.6% Infineon 33.0% Fuji Electric 15.2% Sanken Electric 15.2% Mitsubishi 12.4% Mitsubishi 9.2% onsemi 11.8% Fuji
Slide 49: Key enabler for Power Systems across the power chain
Infineon is the key enabler for Power Systems that are needed at every step of the entire power transformation chain Renewable energy generation #1 semi enabler powering ~50% of currently installed wind/solar capacity Energy infrastructure #1 semi enabler for ~2/3 of grid infrastructure incl. EV cha
Slide 50: Infineon will benefit from all CO2 saving measures
Infineon will benefit from all CO2 saving measures CO2 (Gt / year) Total savings to be achieved: 35.000 23,000 Gt via Others 30.000 Buildings Fuel switch Hydrogen production Transport ~20% New markets 6,200 Gt 25.000 Transport 8,600 Gt Industry Energy efficiency Wide band gap 4,900 Gt 20.000 ~30% Hi
Slide 51: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application Upside potential: example solar power 6000 [EUR per MW] 5,000 5000 4000 3,500 3,500 4,200 GW Net Zero Emissions scenario1 3000 2000 2,500 2,000 2,000 1000 0 0 2,400 GW Fossil, nuclear, Wind Solar
Slide 52: Increasing share of renewables requires stronger grid
Increasing share of renewables requires stronger grid Planned grid expansion in Infineon‘s 4.5 kV IGBT modules enable Germany HVDC lines Converter station › HVDC – High Voltage Direct Current lines are the technology of choice to strengthen the grid › Converter stations are equipped with power semic
Slide 53: Power & Sensor Systems
Power & Sensor Systems 53
Slide 54: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) RF & Sensors 15.1% Power (incl. GaN) 4.500 2,445 2,650 3,268 4,070 4.000 2,318 HiRel 3.500 28% 3.000 25% 2.500 24% 24% 2.000 23% 1.500 1.000 500 0 FY18 FY19 FY20 FY21 FY22 PSS revenue P
Slide 55: Long-term drivers valid but macro impact persists in 2023
Long-term drivers are still valid but impact of current macro environment leads to persist in 2023 Applications Market Outlook for CY23 (% of FY22 segment revenue)1 Computing › Enterprise server in slowdown, while hyperscaler still healthy, reduction in hyperscaler Capex may follow ~18% › PC market
Slide 56: 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 57: PSS – Power
PSS — Power Cinfineon
Slide 58: Clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; market share gains in MOSFETs as well as in power ICs, further growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2021 total market: $11.1bn 2021 total market: $30.7bn Infineon 26.6% Texas Instruments 15.4% onsemi 10.8% Analog Devices 3 11.1% ST
Slide 59: Data center – AI hyperscaler and edge driving growth
Data center – AI hyperscaler and telecom/edge computing are driving the growth Server growth Power requirement per server [units m] Power1: CAGR(20-25): 8% 20 Exponential increase in AI ~3x Training & Networking (ASIC/SoC/FPGA/CPU/ 15 GPU) power level requires cutting-edge innovation in ~1.5x Device
Slide 60: 5G transition drives demand in power semis
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station › driver #1: massive growth of data and computing power Massive MIMO DC-DC (MOSFET, ICs) › driver #2: higher number of base stations due to dense network › driver #3: ~4x higher power semi Base s
Slide 61: PSS – RF and Sensing
S N PSS — RF and Sensing Infineon
Slide 62: 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 High Ultra-low Best audio Best price / precision and power performance performance Small form consumption factor Presence Face ID Low power detection/ (biometrics), Measure CO2
Slide 63: 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) [EUR m] 1543 [EUR m] 1433 1480 600 1310 1074 1150 470 340 237 132 143 FY 2021 2022 2023 2024 2025 2026 FY 2021 2022 2023 2024 2025 2026 Source: Infineon estimates Source:
Slide 64: Infineon leading MEMS microphone market
Infineon leading the market has significantly increased the distance to #2 Infineon’s market share development in MEMS microphones (by units) 44.2% 45.0% 2021 MEMS die market share 35.7% total market: 6.7bn units 34.7% 33.5% 26.5% Infineon 45.0% Knowles 35.6% 8.8% MEMSensing 8.4% 3.5% 5.2% #1 Omron
Slide 65: Connected Secure Systems
Connected Secure Systems Cnfineon_
Slide 66: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) 28.7% MCUs Security ICs 2.000 1,822 1.800 1,397 1.600 664 1.400 1.200 642 974 21% 1.000 800 16% 13% 600 12% 13% 400 200 0 FY18 FY19 FY20 FY21 FY22 Connectivity CSS revenue CSS Segment R
Slide 67: Market outlook affected by weaker macroeconomic conditions
Market outlook is affected by weaker macroeconomic conditions posing risks especially for consumer segments Applications Market Outlook for CY23 (% of FY22 segment revenue) Industrial IoT › Although growth in industrial IoT is expected to stretch in CY23, Industrial Automation Equipment is decreasin
Slide 68: Infineon remains top player in security ICs
Infineon remains top player in security ICs Security ICs (excl. NFC controllers; excl. NFC eSE) Security ICs (excl. NFC controllers; excl. NFC eSE) 2021 total market: $3.2bn 2021 by application others (incl. ticketing, transportation, access Infineon 25.8% control, others); 13% payment; 37% embedded
Slide 69: MCU and software are key for success in IoT
MCU and software are key for the success in IoT as they define the functionality and time-to-market of the device Customer expectations Infineon’s MCU offering Hardware › Broad solution-oriented MCU family offering Broad portfolio › Platform strategy for MCU development: Application fit › shared cor
Slide 70: 'IoT at a fingertip' touch solutions and Cypress revenue synergies
Infineon is enabling the ‘IoT at a fingertip’ with robust and reliable touch solutions and reconfirming Cypress revenue synergies Infineon as the leader1 in Touch-HMI We are fully on track to reach or even overachieve inherited through Cypress acquisition the announced Cypress revenue synergy target
Slide 71: Key enabling technologies to capture growth opportunities
With a broad set of key enabling technologies, Infineon is well positioned to capture growth opportunities Market: Home Automation Customer ex. for wireless smart Devices1 Leading competencies to provide full system solutions cameras and smart door locks [units m] Application understanding CAGR: +20
Slide 72: Selected financial figures
Selected financial figures 72
Slide 73: 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 FY22 revenue by region Revenue by sales channel Distribution Top-10 direct customers1 partners1 Americas EMEA (excl. Germany) 13% 13% Germany Japan 11% 10% Distribution Top-10 direct
Slide 74: Group financial performance
Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenues Segment result Margin +38% Average exchange rate +15% Q4 Q3 Q4 4,143 FY21 FY22 FY22 3,618 ø USD/EUR 1.18 1.06 1.01 3,298 3,159 3,007 Order backlog1 [EUR bn] 42 43 37 25.5% 29 31 23.1% 23.3% 20.5% 22.7% 842 1,0
Slide 75: Automotive (ATV)
Automotive (ATV) Revenues Segment Result Margin [EUR m] [EUR m] +53% +14% 506 1,934 1,701 399 1,491 1,390 324 1,267 261 211 26.2% 23.5% 21.7% 16.7% 18.8% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 › All-time high revenue for a single quarter achieved › Positive d
Slide 76: Industrial Power Control (IPC)
Industrial Power Control (IPC) Revenues Segment Result Margin [EUR m] [EUR m] +33% +24% 136 542 430 436 407 93 382 82 72 73 25.1% 21.6% 18.8% 17.7% 19.1% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 › Positive quarterly revenue development across all applications ›
Slide 77: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result Margin [EUR m] [EUR m] +24% 338 +14% 276 285 277 1,169 1,021 237 945 955 925 29.2% 29.8% 28.9% 27.1% 25.6% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 › Revenue increase supported by post-Shanghai lockdown recov
Slide 78: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result Margin [EUR m] [EUR m] +27% +8% 492 108 456 100 427 448 84 86 386 60 23.4% 24.1% 18.4% 17.5% 15.5% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 › Revenue increased in the areas of connectivity, microcontrollers
Slide 79: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross margin as reported [EUR m] R&D expenses as % of revenue [EUR m] SG&A expenses as % of revenue Gross profit as reported R&D expenses SG&A expenses 1,839 1,564 1,416 466 486 1,312 447 452 1,238 399 399 414 373 369 330 44.4% 43.2% 42.9% 41.2% 41
Slide 80: 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] 866 709 596 542 422 443 494 397 393 405 440 408 378 378 120 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY21 FY22 FY22 FY22 FY22 FY21 FY22 FY22 FY22 FY22 FY21 F
Slide 81: Working Capital, in particular trade working capital components
Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 1,091 1,148 2,834 3,081 900 2,319 2,540 788 2,181 711 111 113 121 124 120 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Trade receivables Trade payabl
Slide 82: Return on capital employed
Return on capital employed Historical development 25% 20% 15% 10% 5% 0% FY20 FY21 FY21 FY22 Q4 FY21 Q1 FY22 Q2 Q3 Q4 2022-11-15 Copyright © Infineon Technologies AG 2022. All rights reserved. 82
Slide 83: 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] 56 63 49 EPS basic 41 41 44 40 36 35 35 EPS adjusted Q4 Q1 FY22 Q2 Q3 Q4 Total cash return to shareholders via dividends [EUR m] 351 417 › Proposed dividend for FY22: €0.32 305 336
Slide 84: Liquidity development
Liquidity development Historical liquidity development [EUR m] 4,284 3,922 3,717 3,569 3,205 -5,662 -1,945 -6,657 -2,373 -6,054 -2,485 Q4 Q1 Q2 Q3 Q4 -6,585 -2,663 -2,676 -5,881 FY21 FY22 FY22 FY22 FY212 Gross Cash Gross Debt Net Cash/Debt 2022-11-15 Copyright © Infineon Technologies AG 2022. All ri
Slide 85: Maturity profile
Maturity profile Maturity profile from 2022 to 2033 [EUR m; US$ m; nominal values] Corporate bonds under the EMTN program US PP 2016 Notes (Apr 2024, Apr 2026, Apr 2028) (Jun 2023, Feb 2025, Jun 2026, Jun 2029, Jun 2032) US PP 2021 Notes (Jun 2027, Jun 2029, Jun 2031, Hybrid bonds1 (Jan 2025, Jan 20
Slide 86: 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 30 September 2022) Gross Cash1 €1bn + at least 10% of revenues → €2.2bn €1bn + 20% of revenues → €3.7bn Gross Debt2 ≤ 2.0x EBITDA 1.3x
Slide 87: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 88: 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 89: Glossary
Glossary AC alternating current Mbps megabit per second AD automated driving MCU microcontroller unit ADAS advanced driver assistance system MEMS micro electro-mechanical systems AI artificial intelligence MHEV mild hybrid electric vehicle AR augmented reality MIMO multiple input, multiple output AS
Slide 90: 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 91: Financial calendar
Financial calendar Date Event Location 16-17 November 2022 Morgan Stanley European TMT Conference Barcelona 22-23 November 2022 Power presentation (IPC, PSS) with Peter Wawer, Head of IPC and Adam White, Head of PSS London 28-29 November 2022 Credit Suisse TMT Conference Scottsdale 6 December 2022 B
Slide 92: 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 Isabell Diel Alexander Groschke Senior Manager Investor Relations Direc
Infineon Technologies — Q4 2022 Earnings Presentation on 6ix