Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2023 Earnings Presentation

116 slides from Infineon Technologies's earnings presentation, Nov 15, 2023

Slide 1: Fourth Quarter FY 2023 Quarterly Update
Fourth Quarter FY 2023 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, clear #1 in power semiconductors
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 596bn1 2022 total market: USD 28.1bn2 2022 total market: USD 26.9bn1 Samsung 11.3% 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: 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 6: GaN Systems acquisition successfully closed
GaN Systems acquisition successfully closed + Strengthening GaN portfolio, reinforcing global leadership in Power Systems Addressing fast-growth appli- Significant roadmap accelera- cations with highly comple- tion through unmatched R&D mentary strengths in IP, appli- resources and application catio
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: Infineon and Vitesco intensify long-term partnership
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 9: Infineon acquires UWB pioneer 3db Access
Infineon acquires Ultra-Wideband (UWB) pioneer 3db Access to further strengthen its connectivity portfolio UWB Chipset Market Growth1 [USD bn] 3.1 CAGR: +13% The acquisition of 3db Access enables Infineon to: − add UWB to its connectivity range, including Wi-Fi, Bluetooth/Bluetooth Low 1.7 Energy, a
Slide 10: 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 11: 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 12: Double-digit growth ahead
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 13: 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 14: 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 4 to outgrow investments 3 ‒ Differentiated in-house manufacturi
Slide 15: Outlook for Q1 FY24 and FY24
Outlook for Q1 FY24 and FY24 Outlook Outlook Q1 FY241 FY241 Revenue ~ €3.8bn €17bn +/-500m Adj. Gross Margin ~45% Segment Result Margin ~22% ~24%2 FCF/adj. FCF ~€400m/~€2.2bn Investments ~€3.3bn D&A ~€2.1bn3 1 Based on an assumed average exchange rate of $1.05 for €1.00 2 At the mid-point of revenue
Slide 17: 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 million tons of CO2 equivalents ~100 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 mil
Slide 18: External recognitions confirm our engagement
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 83 Dow Jones Sustainability™ Dow Jones Sustain
Slide 20: SiC and GaN applications
SiC SiC GaN SiC GaN Wind Energy storage Telecom/ Motor drives systems datacenter GaN Grid-scale SiC battery storage Solar SiC Fuel cell GaN SiC GaN Residential Mobile SiC SiC solar charger CAV UPS Main inverter SiC Heat pump Rail GaN SiC GaN SiC SiC LEV Onboard EV charger charging 20
Slide 21: 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 22: 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 23: 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 24: Expansion of Kulim 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 25: GaN Systems acquisition positions Infineon as leading GaN player
GaN Systems acquisition positions Infineon to be a leading GaN player 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-digit frontend pr
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 27: Combined platform features leading GaN IP
Combined platform features leading GaN IP and the industry’s strongest R&D force, to speed up time-to-market No. of patent families in GaN power 400 350 300 Combined team Combined R&D 250 of ~450 GaN experts budget high double- 200 digit USD m p.a. 150 Leverage ability to scale learnings 100 and sig
Slide 28: 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 30: 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 29% 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 31: 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 32: Automotive semiconductor market expected to continue growth
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 33: 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 34: 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 35: Ideal footprint to participate in worldwide growth
Infineon has the ideal footprint to participate in worldwide growth; revenue share of North America expected to grow Infineon Automotive revenue split by region ‒ Infineon’s automotive business remains well-balanced N. America ~20% across regions ‒ Infineon is ranked #1 in China and South Korea, and
Slide 36: Infineon benefits from Chinese OEMs
Infineon benefits disproportionally 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 com
Slide 37: Broad portfolio of >300 product families
A very broad portfolio with >300 product families is backing the market leadership of Infineon in Automotive Infineon ATV division revenue by product families: Major categories1: AURIX™ families, CoolSiC™, IGBT 750V, IGBT 1200V, MOSFETs, PROFET™, Radar, TRAVEO™ – none more than ~10% Unmatched custom
Slide 38: 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 40: xEV sales continuously strong driven by China
xEV (PHEV + BEV) sales continuously strong driven by China; in Oct CY23, BEV sales crossed the monthly 1 million mark World USA Europe China (incl. Western and Eastern) (incl. Hong Kong, Macao) 34.3% 26.6% 19.3% 17.2% 17.1% 17.5% 13.9% 14.8% 9.6% 9.6% 7.3% 5.1% In units k Penetration Based on or inc
Slide 41: Broad portfolio and system understanding enable higher BoM
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 42: Leading the growth in IGBTs including Si/SiC hybrid
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 43: More than 20 design-wins in SiC across auto applications
More than 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 Cadillac SAIC Li Auto Changan Hozon Ze
Slide 44: 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 45: Extended BMS product portfolio
Infineon’s extended BMS (battery management system) product portfolio paves the way for an exceptional growth story BMS semi market growth is driven by xEV unit and battery capacity BMS analog frontend IC [USD bn] +10% 4.4 4.5 4.3 3.8 3.3 2.8 2.2 Infineon’s revenue growth 2022 2023 2024 2025 2026 20
Slide 47: AURIX MCU is the 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] +9% 9.2 9.9 10.2 7.6 8.4 5.7 6.6 2022 2023 2024 2025 2026 2027 2028 TechInsights: Automotive Semic
Slide 48: 28nm CMOS radar enables autonomous truck driving
The new 28nm CMOS radar from Infineon enables autonomous truck driving for L4 truck platforms Design-win details ‒ 4D imaging radar for autonomous driving truck platform ‒ Infineon’s highest-resolution radar sensor ICs enable the next level of autonomous driving ‒ Triple-digit million € design-win o
Slide 49: 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 L0 4 80% Lane Detection 3,5 Speed 3 L0 2,5 2 1,5 1 60% 0,5 0 L1 L1/L2/L2+ Traffic signs A
Slide 50: Number of 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 Max. % of new cars by SAE level Max. Penetration of radar systems 100% systems of radar Total: 200m systems; Tota
Slide 52: Infineon benefits 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 53: ~€800m NOR flash design-win
~€800m NOR flash memory design-win in new E/E architecture for software-defined vehicle platform of North American OEM OEM domain/zone Infineon NOR Flash memories smart smart › central computer actuators sensors › 256 Mbit SEMPER™ xSPI › ADAS/AD, in-vehicle infotainment central computer › real-time
Slide 54: 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 55: 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 56: Infineon and Continental cooperate on E/E architectures
Infineon and Continental to cooperate in the development of server-based vehicle E/E (electrical/electronic) architectures Continental using Infineon’s AURIX™ TC4x MCU for its zonal platform ‒ Organized and efficient E/E architecture with central high- performance computers (HPC) and a few, powerful
Slide 57: Infineon awarded for BYD's new 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 59: 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 60: 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 61: Positive outlook in Green & Efficient Energy applications
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% Renewable ‒ Photovoltaic installations continue to grow supported by demand for green hydrogen Energy ‒ Gro
Slide 62: Decarbonization & Digitalization are the driving forces
Decarbonization & Digitalization are the driving forces for Cutting CO2 emissions in all sectors Increasing electricity demand CO2 emissions share in % CO2 emissions rose to Energy consumption 2050 36.8 Gt in 2022 – ~ 544 EJ 40% highest level in history Electricity 30% Energy consumption 2021 28-52%
Slide 63: Huge 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 $600bn annual Photovoltaic +4,200 GW Grid network Heat pump +420m units investments +200k FC EV Wind power +2,400 GW Grid storage +660 GW H2 Fuel Cell1 +200k FC Trucks E
Slide 64: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application [EUR per MW] Mainly SiC 6000 [EUR per installation] Mainly IGBT 5000 5,000 5,000 4000 3000 3,500 3,500 2000 2,500 2,000 2,000 1000 1,500 60 1,000 0 500 100 40 600 0 Fossil, nuclear, Wind Solar Gr
Slide 65: GIP markets accelerate growth
GIP markets accelerate growth – enabling green energy and driving decarbonization Key facts [€ m] >10% 12.000 10.000 Renewable Energy, Growth ‒ The acceleration of the energy Power Infrastructure, EV charging, Public transition drives GIP markets 8.000 & Commercial >20% Mobility ‒ SiC penetration ac
Slide 66: Decarbonization of heating
Decarbonization of heating Heat pump ‒ Heat pumps play a crucial role in the decarbonization of heating. EU objective: 60m heat pumps by 2030 (15m current installed base). This translates to a 22% CAGR. ‒ Infineon offers full solution Power: Modules, discretes, IPMs Si and SiC Control: MCU, sensors
Slide 67: Energy efficient rail transport
Energy efficient and reliable rail transport is key to reducing the greenhouse gas emissions Traction application – Key requirements 3.3 kV CoolSiC™ MOSFET XHP™ 2 ‒ Energy efficiency ‒ 10% overall losses reduction ‒ High power density ‒ 10% to 25% system volume reduction ‒ Long lifetime (> 30 years)
Slide 68: Complete system solution for EV charger market
We have a complete system solution for the fast growing EV Charger market EV charging is an attractive business opportunity Infineon extends its market leadership [$ m] Power device market value for EV ‒ Significant CRA signed for EASY 3B SiC-modules DC chargers ‒ Infineon offers the full solution f
Slide 69: 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 71: 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 72: Weakness in most verticals to persist
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 continues in H1 CY24 with potential recovery in H2 – benefits from AI opportunities due to ~15% increasing semi content Compu
Slide 73: 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 75: 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 76: Solutions and partnerships in AI and hyperscale
Industry-leading solutions and technology partnerships in AI and hyperscale Infineon with full system offering from grid to GPU/CPU enabling best-in-class system performance and total cost of ownership for high performance computing platforms More to come at Power Roadshow Grid power supply AI GPU/C
Slide 77: Components enable best power usage effectiveness for data centers
Infineon components enable best power usage effectiveness for data centers Supermicro collaborates with Infineon on green computing Supermicro MicroBlade servers contain … 28 digital multi- phase controllers 112 power stages & 28 point-of-load controllers ‒ Infineon’s power stages provide the best p
Slide 78: PSS is key enabler for residential solar systems
PSS is a key enabler for residential solar systems Full portfolio breadth for solar Enabling residential solar energy systems ‒ Innovative MOSFET transistors for MV & HV applications in all technologies: OptiMOS™, CoolMOS™, CoolSiC™, CoolGaN™ ‒ Isolated gate driver and GaN driver ICs for high system
Slide 79: 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 81: 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 82: 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] [EUR m] 2,055 2,196 1.000 1,755 900 1,554 720 1,375 1,325 520 350 230 FY 2022 2023 2024 2025 2026 2027 FY 2022 2023 2024 2025 2026 2027 3D ToF image sensor market
Slide 83: Infineon increased distance to #2 in MEMS microphones
Infineon as market leader 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 total market: 6.7bn units 34.7% 35.7% 33.5% Infineon 45.0% 26.5% Knowles 35.6% MEMSensing 8.4% 8.8% 3.5% 5.2% Omron 3.2%
Slide 85: 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 86: Market outlook affected by macroeconomic conditions
Market outlook is affected by macroeconomic conditions; risks continue especially for consumer segments 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 Home ‒ Although
Slide 87: 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 2023-11-15 Copyright
Slide 88: 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 89: Journey to becoming 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 90: 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 91: Edge-AI is 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 92: 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 93: 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 94: 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) 2022 total market: $3.6bn 2022 by application Infineon 25.2% payment 14% STM 18.9% mobile communications (incl. std. SIM, SWP SIM) (+0.1-pt) 8% 37% NXP
Slide 95: Security solutions offering
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 ‒ Wireless cha
Slide 97: 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 98: Group financial performance
Group financial performance Revenues and Segment Result USD exchange rate [EUR m] Average revenue exchange rate Q4 Q3 Q4 FY22 FY23 FY23 ø USD/EUR 1.01 1.09 1.09 Order backlog1 [EUR bn] 25.5% 28.0% 28.6% 26.1% 25.2% 1 See notes for definition 2023-11-15 Copyright © Infineon Technologies AG 2023. All
Slide 99: Automotive (ATV)
Automotive (ATV) Revenues Segment Result [EUR m] [EUR m] 28.4% 31.1% 27.4% 28.5% 26.2% ‒ Further revenue increase driven by broad-based demand and market share gains in microcontrollers ‒ Incremental margin increase due to continuous growth trajectory, positive mix effects and stable pricing ‒ For F
Slide 100: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result [EUR m] [EUR m] 28.8% 32.4% 30.3% 28.5% 25.1% ‒ Revenue growth driven by renewable energy, power infrastructure, automation and drives ‒ Continued strong demand for applications related to decarbonization, energy storage systems, grid and charging
Slide 101: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result [EUR m] [EUR m] 28.9% 28.9% 21.3% 20.8% 18.9% ‒ Revenue development reflecting a downswing in consumer, computing and communications markets ‒ Marco environment for end market applications remains weak – we do not expect sales volumes to pick up b
Slide 102: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result [EUR m] [EUR m] 28.2% 25.1% 23.5% 17.5% 18.4% ‒ Robust demand for security solutions offsetting a weaker development of connectivity components and general purpose microcontrollers for IoT applications ‒ Segment result margin step-down due to ne
Slide 103: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 44.4% 47.2% 46.6% 44.5% 43.6% 11.7% 12.3% 11.8% 12.1% 12.5% 10.9% 10.4% 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 Therein n
Slide 104: 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] 2023-11-15 Copyright © Infineon Technologies AG 2023. All rights reserved. 104
Slide 105: Working Capital
Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 140 143 149 153 120 Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 66 70 69 66 75 31 29 31 31 32 1 See notes for definition 2023-11-15 Copyright © Infineon Technologies
Slide 106: 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] 63 64 63 69 63 68 65 56 55 57 EPS basic EPS adjusted Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Total cash return to shareholders via dividends [EUR m] 417 456 ‒ Proposed dividend for
Slide 108: Liquidity development
Liquidity development Historical liquidity development [EUR m] 3,708 3,717 3,590 3,446 2,986 -4,733 -1,143 -4,679 -1,693 -5,467 Q4 Q1 -1,759 Q2 Q3 Q4 -5,662 -1,945 -5,428 -1,982 FY22 FY23 FY23 FY23 FY23 Gross Cash Gross Debt Net Cash/Debt 2023-11-15 Copyright © Infineon Technologies AG 2023. All rig
Slide 109: 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 2023) Gross Cash1 €1bn + at least 10% of revenues → €2.6bn €1bn + 16% of revenues → €3.6bn Gross Debt2 ≤ 2.0x EBITDA 0.8x E
Slide 110: Maturity profile
Maturity profile Maturity profile from 2023 to 2034 [EUR m; US$ m; nominal values] $350 €600 €750 €600 €750 €650 €500 $350 $350 $350 $350 $235 $250 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Corporate bonds under the EMTN program US PP 2016 Notes Hybrid bonds1 US PP 2021 Notes (Jun
Slide 111: Cinfineon
Cinfineon
Slide 112: 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 113: 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 114: 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 115: Financial calendar
Financial calendar Date Event Location 16 - 17 Nov 2023 Morgan Stanley European TMT Conference Barcelona Power presentation (GIP, PSS) and roadshow with 27 - 28 Nov 2023 Paris Peter Wawer, Head of GIP and Adam White, Head of PSS 28 - 29 Nov 2023 UBS TMT Conference Scottsdale 30 Nov 2023 Société Géné
Slide 116: 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 Technologies — Q4 FY2023 Earnings Presentation on 6ix

Infineon Technologies — Q4 FY2023 Earnings Presentation

Slide 1: Fourth Quarter FY 2023 Quarterly Update

Slide 2: Infineon at a glance

Slide 3: Global player, clear #1 in power semiconductors

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

Slide 5: Undisputed power systems leadership mastering all three key materials

Slide 6: GaN Systems acquisition successfully closed

Slide 7: Infineon at the core of IoT

Slide 8: Infineon and Vitesco intensify long-term partnership

Slide 9: Infineon acquires UWB pioneer 3db Access

Slide 10: Decarbonization and digitalization accelerating structural growth

Slide 11: Our Target Operating Model

Slide 12: Double-digit growth ahead

Slide 13: Target Operating Model: margin expansion through the cycle

Slide 14: Free Cash Flow generation increasing over the cycle

Slide 15: Outlook for Q1 FY24 and FY24

Slide 16: ESG: Targets and achievements

Slide 17: 2030 carbon neutrality goal aligned with Paris 1.5°C target

Slide 18: External recognitions confirm our engagement

Slide 19: Infineon's wide bandgap strategy

Slide 20: SiC and GaN applications

Slide 21: 30% market share target in SiC by end of decade

Slide 22: Building the world's largest 200-millimeter SiC power fab

Slide 23: Most competitive provider of SiC technology

Slide 24: Expansion of Kulim backed by long-term customer commitments

Slide 25: GaN Systems acquisition positions Infineon as leading GaN player

Slide 26: GaN market accelerating

Slide 27: Combined platform features leading GaN IP

Slide 28: GaN expected to be preferred technology by 2030

Slide 29: Automotive

Slide 30: ATV at a glance

Slide 31: Top market position built on system competence

Slide 32: Automotive semiconductor market expected to continue growth

Slide 33: Strong content growth drivers even at flat LV production

Slide 34: World leader in automotive semis benefiting from content growth

Slide 35: Ideal footprint to participate in worldwide growth

Slide 36: Infineon benefits from Chinese OEMs

Slide 37: Broad portfolio of >300 product families

Slide 38: Number of power MOSFETs per car continues to increase

Slide 39: Electromobility

Slide 40: xEV sales continuously strong driven by China

Slide 41: Broad portfolio and system understanding enable higher BoM

Slide 42: Leading the growth in IGBTs including Si/SiC hybrid

Slide 43: More than 20 design-wins in SiC across auto applications

Slide 44: Accelerated growth in SiC

Slide 45: Extended BMS product portfolio

Slide 46: Automated Driving

Slide 47: AURIX MCU is the gold standard for ADAS/AD

Slide 48: 28nm CMOS radar enables autonomous truck driving

Slide 49: Growth of L1/L2/L2+ drives ADAS semiconductor content

Slide 50: Number of radar systems expected to grow 24% annually

Slide 51: E/E architecture

Slide 52: Infineon benefits from new E/E architectures

Slide 53: ~€800m NOR flash design-win

Slide 54: Power distribution critical in E/E architecture

Slide 55: Premium lighting technology

Slide 56: Infineon and Continental cooperate on E/E architectures

Slide 57: Infineon awarded for BYD's new E/E architecture

Slide 58: Green Industrial Power

Slide 59: GIP at a glance

Slide 60: Clear leader in discrete IGBTs and IGBT modules

Slide 61: Positive outlook in Green & Efficient Energy applications

Slide 62: Decarbonization & Digitalization are the driving forces

Slide 63: Huge potential along green energy chain until 2030

Slide 64: Green energy generation provides large business opportunities

Slide 65: GIP markets accelerate growth

Slide 66: Decarbonization of heating

Slide 67: Energy efficient rail transport

Slide 68: Complete system solution for EV charger market

Slide 69: Leading position in industrial SiC market

Slide 70: Power & Sensor Systems

Slide 71: PSS at a glance

Slide 72: Weakness in most verticals to persist

Slide 73: PSS growth built on many applications

Slide 74: PSS – Power

Slide 75: Clear leader in MOSFETs, growth potential in power ICs

Slide 76: Solutions and partnerships in AI and hyperscale

Slide 77: Components enable best power usage effectiveness for data centers

Slide 78: PSS is key enabler for residential solar systems

Slide 79: Transition to 5G drives demand in power semis