Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q1 FY2013 Earnings Presentation

35 slides from Infineon Technologies's earnings presentation, Jan 31, 2013

  1. Slide 1: First Quarter FY 2013 Quarterly Update

    First Quarter FY 2013 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook 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 u

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q1 FY 2013 revenue: EUR 851m ATV IPC € 377m € 138m PMM CCS € 222m € 108m OOS+C&E* € 6m * Other Operating Segments; Corporate and Eliminations. 31 Jan 2013 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

  4. Slide 4: Low Revenue And Segment Result Due To Weak Markets

    Low Revenue And Segment Result Due To Weak Markets [EUR m] Q1 FY12 Q4 FY12 Q1 FY13 Revenue 946 982 851 Segment Result 141 116 44 SR Margin 14.9% 11.8% 5.2% [EUR m] Net Income* 96 138 19 982 851 Investment 294 246 88 FCF from cont. -234 47 -128 116 operations 44 Gross Cash 2,337 2,235 2,081 Q4 FY12 Q

  5. Slide 5: Tight Customer Relationships are Based on System Know-how and App Understanding

    Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS Distributors 31 Jan 2013 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 5

  6. Slide 6: Infineon Holds Top Positions in All Target Markets

    Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 12% Infineon 25% Infineon 10% Mitsubishi 8% NXP 24% STMicro 9% Toshiba 7% Samsung 21% Freescale 8% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2011. Calendar year 2

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook 31 Jan 2013 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 7

  8. Slide 8: Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy

    Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(12-16) = 4.5% 100.4 103.4 +1.6% 97.0 92.9 8,3 8,6 87.4 8,0 8,2 81.5 82.8 7,5 8,1 76.8 6,9 8,1 74.4 6,0 6,4 8,2 8,3 16,3 17,0 6,3 6,6 9,4 8,3 15,6 14,9 9,1 7,9 14,0 12,8 13,4 10,8 11,5 28

  9. Slide 9: Semiconductor Value Per Car Continues to Increase

    Semiconductor Value Per Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] [USD] 328 214 CAGR World +2.2% Brazil 321 187 +3.4% 2013 2012 255 CAGR China 209 +5.0% Semiconductor market by segment 376 CAGR S. Korea [USD bn] 337 +2.8% 8.7 CAGR Powertrain 46

  10. Slide 10: Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation

    Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation Industrial motor controls Market description [USD bn]  Food & beverage, medical & scientific, semiconductor 40 CAGR(11-15) = 11.5% Others machinery, printing sector.  Comparatively low IGBT content. 30  High

  11. Slide 11: Wind: Drop in the US Due to Uncertainties in PTC; Solar: Growth WW Except of EU

    Wind: Drop in the US Due to Uncertainties in PTC; Solar: Growth WW Except of EU Wind power market PV inverter market [GW] [GW] CAGR(12-16) = -2.9% CAGR(12-16) = 17.4% 50 60 50 40 40 30 30 20 20 10 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Europe APAC EMEA APAC Japan America LatAm, Afr

  12. Slide 12: Mobile Devices are High-Growth Markets for Infineon's RPD

    Mobile Devices are High-Growth Markets for Infineon’s RPD*, Esp. Si-MEMS-Micros Smartphones Tablets** [units m] [units m] CAGR(12-16) = 14.5% CAGR(12-16) = 31.3% 400 1200 1000 300 800 200 600 400 100 200 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 The chart was created by Infineon based on

  13. Slide 13: Double-digit Growth in Payment and Government ID; SIM Card Flat

    Double-digit Growth in Payment and Government ID; SIM Card Flat Smart card ICs Government ID & healthcare [USD bn] [USD m] 4 CAGR(12-16) = 9.5% 1000 CAGR(12-16) = 14.5% 3 750 2 500 1 250 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 SIM Cards Payment & Banking e-National ID e-Passport e-Gov

  14. Slide 14: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook 31 Jan 2013 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 14

  15. Slide 15: Lower Revenue And Segment Result Due To Market Weakness

    Lower Revenue And Segment Result Due To Market Weakness Revenue and Segment Result [EUR m] FY 2012 revenue split -10% by product category 986 990 982 946 851 15% 15% 13% 12% 5% Power eControl others 141 144 126 116 44 Q1 Q2 Q3 Q4 Q1 FY12 FY13 Revenue Segment Result Segment Result margin 31 Jan 2013

  16. Slide 16: Stable Revenues in PMM, Encouraging Development in CCS

    Stable Revenues in PMM, Encouraging Development in CCS Courtesy: Hyundai ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] -4% 425 428 416 391 377 -30% 0% 247 222 227 233 222 +11% 196 174 177 181 14% 15% 13% 11% 5% 138 122 126 108 18% 14% 14% 15% 10% 97 112 20% 16% 15% 14% -4% 15% 14% 6% 13% 9% 55 63

  17. Slide 17: Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011

    Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011 Worldwide Automotive Semiconductor Ranking for 2011 9.8% 1. Renesas 13.8%  -0.3%-pt 2. Infineon 9.8%  +1.0%-pt 8.2% Infineon 3. STM 8.7%  +0.4%-pt strengthened 5.7% 4. Freescale 7.9%  -0.5%-pt world‘s #2 postion; 5. NXP

  18. Slide 18: XMC1000 Completes Infineon's Portfolio of Industrial Microcontrollers

    XMC1000 Completes Infineon’s Portfolio of Industrial Microcontrollers Industrial Automotive 32-bit 32-bit TriCore™ XMC Family multi-core 32-bit TriCore™ performance / features / memory AUDO AUDO AURIX TC2xxx AUDO MAX AUDO S F TriCore™ NG XMC4000 ARM® 16-bit C166™ Cortex™-M4 XC2xxx XE16x XC16x C16x X

  19. Slide 19: New Key Application Fields For XMC1000: Focus on Low-end Industrial Control

    New Key Application Fields For XMC1000: Focus on Low-end Industrial Control Sensors, Power LED lighting Motor control actuators conversion  general  color control  power  AC induction purpose  brightness supplies motors applications control  chargers  BLDC motors  connectivity  induction 

  20. Slide 20: Guidance for Q2 FY13 and FY 2013

    Guidance for Q2 FY13 and FY 2013 Outlook Q2 FY13* Outlook FY 2013* (compared to Q1 FY13) (compared to FY 2012) Mid single digit Mid-to-high single digit Revenue percentage increase. percentage decline. Segment Segment Result Segment Result Margin Result / slightly up in the mid-to-high Margin in abs

  21. Slide 21: Cinfineon

    Cinfineon Innovative semiconductor solutions for energy efficiency, mobility and security.

  22. Slide 22: Sequential Decline in OpEx as Cost Reduction Measures Were Implemented

    Sequential Decline in OpEx as Cost Reduction Measures Were Implemented S and G&A R&D [EUR m] 15% 119 121 123 123 120 118 117 116 108 106 110 14% 100 80 13% 60 12% 40 11% 20 0 10% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY13 FY12 FY13 General & Administration Selling R&D % of sales 31 Jan 2013 Copyright ©

  23. Slide 23: Working Capital Increased Mainly Due To Lower Payables

    Working Capital Increased Mainly Due To Lower Payables Working capital* Inventories [EUR m] [EUR m] [days] 539 546 567 585 Q1 FY12 Q2 Q3 Q4 Q1 FY13 600 521 100 0 80 400 -118 60 -200 200 40 -400 20 -333 -353 -422 0 0 -461 Q1 FY12 Q2 Q3 Q4 Q1 FY13 -600 Inventories DOI* Trade and other receivables Trad

  24. Slide 24: Investments in FY 2013 to Be Reduced Significantly

    Investments in FY 2013 to Be Reduced Significantly Investments* D&A [EUR m] 887 890 453 ~ 470 ~ 400 428 364 325 336 115 88 116 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1 Full Year Guidance * For definition please see page 29 in appendix. 31 Jan 2013 Copyright

  25. Slide 25: Gross Cash and Net Cash Position Lower But Still Comfortable

    Gross Cash and Net Cash Position Lower But Still Comfortable Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 100 100 101 103 169 102 * 162 140 195 211 2337 2235 2190 2150 2081 2068 1940 1927 1907 1768 Q1 Q2 Q3 Q4 Q1 FY12 FY13 * Consists of convertible bond (nominal value EUR 113

  26. Slide 26: End of Capital Return Program

    Average Price Per Underlying Share Below Volume Weighted Average Price (VWAP) Total share buyback history via convertible bond and put options [shares m] [EUR] 8 12 End of Capital Return Program 10 7.05 4 3 6.82 7 6.81 6.68 6.74 6.72 8 6.60 6.51 on 31 March 2013. 6.70 6.40 6.55 6.27 6.20 6 6.11 6.23

  27. Slide 27: Total Gross Capital Returns of EUR 558m Between 2011 And Q1 FY13

    Total Gross Capital Returns of EUR 558m Between 2011 And Q1 FY13 Total gross capital returns history [EUR m] 350 308 300 250 109 212 200 26 150 130 100 109 173 26 130 20 50 20 38 80 62 16 50 50 12 27 0 38 38 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY11 FY12 FY13 FY11 FY12 FY13 CB 2014 share buyback (via put op

  28. Slide 28: Development of Capital Employed and RoCE

    Development of Capital Employed and RoCE RoCE* history 100% 80% FY11: 62% 82% 60% WACC: low teens % 64% 59% 40% FY10: 30% 46% 53% FY12: 22% 20% 27% 31% 27% 25% 27% -9% 20% 5% 0% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY10 FY11 FY12 FY13 Capital Employed* history 2,500 [EUR m] 2,239 2,035 1,889

  29. Slide 29: 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 l

  30. Slide 30: Worldwide Front-end Manufacturing Sites

    Worldwide Front-end Manufacturing Sites Regensburg Employees: 1,081 Dresden Employees: 1,767 Temps: 202 Temps: 168 Capacity: 48k WSPM Capacity: 45k WSPM Technology: >200nm Technology: >90nm Complexity: 16 mask layers Complexity: 30 mask layers Products: Power Products: CMOS OOS 4% ATV 47% CCS 1% OOS

  31. Slide 31: Worldwide Back-end Manufacturing Sites

    Worldwide Back-end Manufacturing Sites Morgan Hill, USA Warstein, Germany Cegléd, Hungary Employees: 121 Employees: 852 Employees: 531 Competence center High power, R&D High power RF power Wuxi, China Regensburg, Germany Employees: 779 Sensors, chip card, Employees: 1,666 power, wafer level, Chip ca

  32. Slide 32: Investments Driven by Capacity Additions and Maintenance

    Investments Driven by Capacity Additions and Maintenance Breakdown of total investments in FY12 of EUR 890m Capacity Innovation Frontend Backend Quality Maintenance / facility Intangible assets, Others capitalized R&D 31 Jan 2013 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

  33. Slide 33: Infineon Has a Long Track Record in Responsibility and Sustainability

    Infineon Has a Long Track Record in Responsibility and Sustainability Dow Jones Sustainability Index Certifications  Infineon is member of the Dow Jones Sustainability Index since 2010.  Infineon is currently Europe’s one and only semiconductor company member in the Dow Jones Sustainability Indexe

  34. Slide 34: Financial Calendar

    Financial Calendar Date Location Event 28 Feb 2013 Munich Annual General Meeting 12 – 13 Mar 2013 London UBS European Technology Conference 02 May 2013* Q2 FY13 Results 30 Jul 2013* Q3 FY13 Results 28 Aug 2013 Frankfurt Commerzbank Sector Conference Week 03 Sep 2013 London Deutsche Bank European TMT

  35. Slide 35: Institutional Investor Relations Contact

    Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President  +49 89 234-26153 Finance, Treasury & Investor Relations  ulrich.pelzer@infineon.com Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 23

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