Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2016 Earnings Presentation

39 slides from Infineon Technologies's earnings presentation, Nov 23, 2016

  1. Slide 1: Fourth Quarter FY 2016 Quarterly Update

    Fourth Quarter FY 2016 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2016-12-14 Copyright © Infineon Technologies AG 2016. All rights reserved. 2

  3. Slide 3: Infineon at a glance

    Infineon at a glance Business Segments Power represents ~60% of revenue Industrial Power 690 [EUR m] Automotive 17% Control (IPC) 535 (ATV) 279 Power Manage- 173 41% 32% ment & Multi- market (PMM) ATV IPC PMM CCS 10% Chip Card & Power Non-Power* revenue in Q4 FY16: €1,675m incl. OOS & C&E of -€2m Se

  4. Slide 4: Technology leadership and system understanding fosters growth and profitability

    Technology leadership and system understanding fosters growth and profitability Competitive advantages Average-cycle financial targets system leader in Auto automotive Revenue Growth: ~8% Power #1, system and technology leader Segment Result Margin: broadest technology ~17% portfolio;#1 in SiGe; bec

  5. Slide 5: Our promise to investors (I): Continued value creation through growth

    Our promise to investors (I): Continued value creation through growth Q4 FY16 y-y revenue growth exceeds market by 2%-points [EUR m] +5% [EUR bn] +3% 80 Revenue [lhs] 1500 1,611 1,632 1,675 79.1 1,598 1,556 76.6 Segment Result 75.7 1000 [lhs] 18% 70 Total semiconductor 71.0 16% 70.2 17% 14% 14% mark

  6. Slide 6: Our promise to investors (II): Continued value creation through growth

    Our promise to investors (II): Continued value creation through growth RoCE as key value metric WACC: low teens % RoCE impacted by acquisition of International Rectifier 30% FY14: 20% 20% FY16: 15% FY15: 13% 10% 17% 21% 24% 24% 18% 6% 9% 26% 12% 15% 15% 18% 0% Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2 Q3 Q4 Q1 FY

  7. Slide 7: Infineon increased relative market share in power and outperformed chip card market

    Infineon increased relative market share in power and outperformed chip card market Automotive Power discretes and Smart Card ICs semiconductors modules total market in 2015: $2.72bn total market in 2015: $27.4bn total market in 2015: $14.8bn NXP 14.2% Infineon 18.7% NXP 30.5% Infineon 10.4% Mitsubi

  8. Slide 8: 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 EMS partners Distribution partners 2016-12-14 Copyright © Infineon Technologies AG 2016. All rights reserved. 8

  9. Slide 9: Table of Contents

    Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2016-12-14 Copyright © Infineon Technologies AG 2016. All rights reserved. 9

  10. Slide 10: Infineon benefits from industrial, auto and security, the by far fastest growing segments

    Infineon benefits from industrial, auto and security, the by far fastest growing segments CAGR 2015 – 2020 by Semiconductor Industry Segment Industrial 8.2% $42bn* Chip Card ICs** 7.3% $3.7bn* Automotive 5.8% $29bn* Consumer 3.4% $45bn* Total Semi Market 3.4% $347bn* Data Processing 2.8% $108bn* Com

  11. Slide 11: Infineon is system leader in automotive; making cars clean, safe and smart

    Infineon is system leader in automotive; making cars clean, safe and smart #2 with market share gains in power and sensors: › #1 in power semiconductors** › #2 in sensors** › #3 in microcontrollers** (#1 in powertrain***) Infineon is ideally Most balanced portfolio with sensors, micro- positioned to

  12. Slide 12: Reference to web presentations

    Reference to web presentations For full automotive story please refer to a.) Update on ATV Presentation on 02 Aug 2016: www.infineon.com/auto-slides b.) ATV Division Call by Peter Schiefer on 11 Oct 2016: www.infineon.com/atv-call 2016-12-14 Copyright © Infineon Technologies AG 2016. All rights rese

  13. Slide 13: Infineon is system leader with most balanced portfolio in the market

    Infineon is system leader with most balanced portfolio in the market Infineon covers the entire control loop in powertrain, safety/ADAS, and comfort/body Sensors Microcontrollers Power 2015 market size: $4.2bn 2015 market size: $6.5bn 2015 market size: $7.1bn Bosch 18.1% Renesas 32.7% Infineon 25.2%

  14. Slide 14: Infineon goes beyond radar and camera targeting mass-deployable lidar systems

    Infineon goes beyond radar and camera targeting mass-deployable lidar systems MEMS-based lidar reference design › The first lidar systems Innoluce’s key competence introduced in premium laser cars within the next source couple of years are Mirror based on mechanical MEMS- control scanning mirrors wh

  15. Slide 15: ADAS/AD, clean cars, and adoption of premium features drive growth

    ADAS*/AD*, clean cars, and adoption of premium features drive growth Drivers for semiconductor content per car Vehicle production Clean cars ADAS*/AD* Comfort, premium › Driven by legislation › Today: › Premium cars are › crash avoidance early adopters of › Improvements of ICE* › ADAS* high-end comf

  16. Slide 16: Infineon is #1 and technology leader in power semiconductors

    Infineon is #1 and technology leader in power semiconductors #1 in the market* Broadest product and technology portfolio Infineon is ideally positioned to gain Addressing broadest range of applications further market share and earn 300 mm thin-wafer manufacturing for power superior margins semicondu

  17. Slide 17: As system leader in power, Infineon has broadest application and technology reach

    As system leader in power, Infineon has broadest application and technology reach Covering the entire power chain Generation Transmission Consumption Main IPC markets Main PMM power markets System competence for highest reliability and highest efficiency Stacks Modules MOSFETs/IGBTs Drivers Controll

  18. Slide 18: Infineon further strengthened its market positions

    Infineon further strengthened its market positions IGBT components* Discrete standard (discretes and modules) MOSFETs total market in 2015: $3.94bn therein: IPMs total market in 2015: $5.48bn total market in 2015: $1.10bn Stronger #1 position New #4 position rms** unchanged Infineon 27.6% Mitsubishi

  19. Slide 19: Infineon continuously improved relative market share in power

    Infineon continuously improved relative market share in power Relative market share* of 3 in the total power semiconductor market 20% 19.2% 18.7% 2.97 3 15% 2.74 11.9% 11.8% 12.3% 10.7% 11.2% 9.4% 9.7% 10.2% 10% 8.4% 8.5% 8.1% 2 Int. Rectifier Int. Rectifier Int. Rectifier 1.65 1.69 1.49 Mitsubishi

  20. Slide 20: Strong #1 position in power allows driving of key areas of differentiation and innovation

    Strong #1 position in power allows driving of key areas of differentiation and innovation Unique 300 mm Compound thin wafer power semiconductors semiconductor SiC and GaN manufacturing Digitalization of Functional the power control integration of loop IGBT modules 2016-12-14 Copyright © Infineon Tec

  21. Slide 21: Efficiency and digitalization are main market drivers for power applications

    Efficiency and digitalization are main market drivers for power applications IPC PMM Drives Renewables Traction MHA AC-DC DC-DC › Energy › Legislation › Growing › Energy › Energy › Energy efficiency › Growing population in efficiency efficiency efficiency › Automation share of metropolitan › Growing

  22. Slide 22: Infineon is the leader in security solutions for the connected world

    Infineon is the leader in security solutions for the connected world #2 in microcontroller-based smart card ICs* #1 in embedded digital security** Infineon is ideally positioned to Complete portfolio of hardware, software, benefit from the services and turn-key solutions growth trends in the securit

  23. Slide 23: CCS is enabling security for the connected world

    CCS is enabling security for the connected world Smart card applications Embedded security applications Infineon holds leading positions in security solutions markets #2 market size: $2.72bn #1* market size: $698m microcontroller-based Embedded secure smart card ICs microcontrollers › Mobile device

  24. Slide 24: Infineon's long-term growth is based on sustainable growth drivers

    Infineon‘s long-term growth is based on sustainable growth drivers ATV IPC PMM CCS Courtesy: Hyundai › CO2 reduction › Energy efficiency › Energy efficiency › Security as a › Advanced Driver › Automation › Power density function Assistance › Productivity › BLDC motors › Mobile payments Systems incre

  25. Slide 25: Table of Contents

    Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2016-12-14 Copyright © Infineon Technologies AG 2016. All rights reserved. 25

  26. Slide 26: Strong growth in ATV due to ADAS and electro-mobility

    Strong growth in ATV due to ADAS and electro-mobility ATV* IPC* PMM* CCS* [EUR m] [EUR m] [EUR m] [EUR m] +13% 0% 670 676 690 613 614 535 535 510 496 509 +3% -4% 271 249 265 280 279 21% 15% 15% 16% 18% 17% 13% 14% 15% 17% 181 173 180 172 173 14% 9% 10% 15% 13% 21% 20% 20% 19% 19% 102 81 94 104 118 3

  27. Slide 27: Guidance for Q1 FY17 and FY17

    Guidance for Q1 FY17 and FY17 Outlook Q1 FY17* Outlook FY17* (compared to Q4 FY16) (compared to FY16) Decrease of 4% Increase of 6% Revenue +/- 2%-points +/- 2%-points Segment At the mid-point of the At the mid-point of the revenue guidance: revenue guidance: Result Margin 14% 16% Investments in FY1

  28. Slide 28: Part of your life. Part of tomorrow. Infineon

    Part of your life. Part of tomorrow. Infineon

  29. Slide 29: Solid Investment Grade rating assigned by S&P in connection with revised capital structure targets

    Solid Investment Grade rating assigned by S&P in connection with revised capital structure targets Revised capital structure targets announced by Infineon in February 2016: a.) Gross Cash b.) Gross Debt › “€1bn plus 10% to 20% of revenue” › “less than 2.0x EBITDA” Infineon‘s revised capital structur

  30. Slide 30: Infineon has a well balanced maturity profile

    Infineon has a well balanced maturity profile Maturity profile [EUR m; US$ m] €500 new debt after closing of Wolfspeed acquisition $350 $350 €300 $250 $250 $235 €200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 3-year 4-year 5-year 8-year 10-year 12-year Eurobond $-term €-term $-term Eurob

  31. Slide 31: SG&A still includes noticeable acquisition-related costs that are incrementally declining

    SG&A still includes noticeable acquisition- related costs that are incrementaly declining S and G&A* R&D** [EUR m] 220 215 200 195 200 196 197 198 195 197 200 180 15% 180 160 14% 140 120 13% 100 80 12% 60 40 11% 20 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY16 FY16 FY16 FY16 General & Administration Sell

  32. Slide 32: Working capital slightly improved due to increasing liabilities

    Working capital slightly improved due to increasing liabilities Working capital Inventories [EUR m] [EUR m] [days] 1,129 1,190 1,165 1,198 1,191 125 1000 911 1000 100 761 791 800 800 739 75 550 600 600 50 400 400 200 25 200 0 0 0 Q4 Q1 FY16 Q2 Q3 Q4 FY16 Q4 Q1 FY16 Q2 Q3 Q4 FY16 Inventories DOI* Tra

  33. Slide 33: Investments on target of ~13% of sales; D&A about stable in absolute terms

    Investments on target of ~13% of sales; D&A about stable in absolute terms Investments* D&A [EUR m] 1000 ~950** 30% 890 826 833 ~830 22.8% 785 760 800 668 20% 600 15.5% 514 378 466 428 400 13.5% 13.8%** 12.8% 13.1% 12.9% 12.1% 11.9% 12.1% 10% 11.0% 9.8% 200 0 0% FY12 FY13 FY14 FY15 FY16 FY17e FY12 F

  34. Slide 34: Net cash increased due to Free Cash Flow

    Net cash increased due to Free Cash Flow Liquidity development [EUR m] 1,769 471 1,784 1,793 1,790 299 204 220 1,776 2,013 1,994 1,803 2,083 2,240 27 Q4 Q1 Q2 Q3 Q4 FY16 FY16 Gross Cash Debt Net Cash › Free Cash Flow from continuing operations was €169m. › Debt decreased by €15m due to repayment of

  35. Slide 35: 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' Please note: All positions in ' ' refer to the – 'Financial investments' respective

  36. Slide 36: Infineon is a long-standing member of Europe's leading sustainability indices

    Infineon is a long-standing member of Europe's leading sustainability indices Infineon’s most recent achievements › Sep 2016: Infineon is listed in the STOXX® Global ESG Leaders Indices, which serves as an indicator of the quality of Infineon’s performance in the governance, social and environmental

  37. Slide 37: Financial calendar

    Financial calendar Date Location Event 02 Feb 2017* Q1 FY17 Results 16 Feb 2017 Munich Annual General Meeting 27 Feb – 02 Mar 2017 Barcelona Mobile World Congress 04 May 2017* Q2 FY17 Results 30 May 2017 Copenhagen German Corporate Day by Danske Bank Markets 31 May – 01 Jun New York Bernstein Strate

  38. Slide 38: Glossary

    Glossary ACC adaptive cruise control AD automated driving ADAS advanced driver assistance system AEB automatic emergency braking BoM bill of material EPS electric power steering EV electric vehicle FCW forward collision waring HEV mild and full hybrid electric vehicle ICE internal combustion engine

  39. Slide 39: Institutional Investor Relations contacts

    Institutional Investor Relations contacts Dr. Jürgen Rebel Corporate Vice President +49 89 234-21626 Investor Relations juergen.rebel@infineon.com Joachim Binder Senior Director +49 89 234-25649 Investor Relations joachim.binder@infineon.com Holger Schmidt Manager +49 89 234-22332 Investor Relations

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