Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q1 FY2017 Earnings Presentation
42 slides from Infineon Technologies's earnings presentation, Feb 2, 2017
Slide 1: First Quarter FY 2017 Quarterly Update
First Quarter FY 2017 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Table of Contents
Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2017-02-02 Copyright © Infineon Technologies AG 2017. All rights reserved. 2
Slide 3: Infineon at a glance
Infineon at a glance Business Segments Power represents ~60% of revenue Industrial Power 705 [EUR m] Automotive 16% Control (IPC) 497 (ATV) Power Manage- 264 30% 174 43% ment & Multi- market (PMM) ATV IPC PMM CCS 11% Power Non-Power* Chip Card & revenue in Q1 FY17: €1,645m incl. OOS & C&E of €5m Sec
Slide 4: Our strategy is targeted at value creation through sustainable organic growth
Our strategy is targeted at value creation through sustainable organic growth Focus Technology leadership System understanding Auto Power RF Security System leader #1; system and Broadest RF Leader in in automotive technology leader technology portfolio security solutions Average-cycle financial tar
Slide 5: Infineon's organic revenue development clearly outperformed total semi market
Infineon‘s organic revenue development clearly outperformed total semi market [EUR m] organic CAGR(99-16): ~+9% 7500 CAGR(99-16): +5.1% 6000 4500 6,059 (incl. IRF**) 300,000 5,100 (excl. IRF) 3000 126,895 1,200 200,000 296,383 295,996 1500 2,916 1,681 2,045 1,821 1,995 2,289 2,366 2,701 2,906 2,128
Slide 6: Our promise to investors (I): Continued value creation through growth
Our promise to investors (I): Continued value creation through growth Infineon growth on track; semi market recovery driven by memory [EUR m] +6% [EUR bn] +14% 90 Revenue [lhs] 1500 1,611 1,632 1,675 1,645 1,556 86.2 80 Segment Result 1000 17% 79.1 [lhs] 75.7 16% 70 Total semiconductor 71.2 70.1 15%
Slide 7: 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 % 30% Since FY15, RoCE is impacted by acquisition of International Rectifier. 20% 10% 20% 13% 15% 12% 0% FY14 FY15 FY16 Q1 FY17 Q2 Q3 Q4 Total cash return to shareholders [EUR m] 1,526 › P
Slide 8: 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
Slide 9: 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 2017-02-02 Copyright © Infineon Technologies AG 2017. All rights reserved. 9
Slide 10: Table of Contents
Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2017-02-02 Copyright © Infineon Technologies AG 2017. All rights reserved. 10
Slide 11: 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% $3.4bn* Automotive 6.5% $29bn* Data Processing 4.7% $108bn* Total Semi Market 4.6% $347bn* Consumer 3.4% $41bn* Com
Slide 12: 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
Slide 13: 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 2017-02-02 Copyright © Infineon Technologies AG 2017. All rights rese
Slide 14: 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%
Slide 15: 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
Slide 16: Growth is significantly driven by trends in existing body applications
Besides xEV and ADAS, growth is significantly driven by trends in existing body applications LED growth Relay replacement Motor control › Replace electro-mechanical › Increasing number of motors Trend › Replace light bulbs with LEDs relays with semi solutions › controlled motors vs on/off Matrix lig
Slide 17: 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
Slide 18: 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
Slide 19: 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
Slide 20: 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
Slide 21: Infineon continuously improved relative market share in power
Infineon continuously improved relative market share in power Relative market share* of ~2 in the total power semiconductor market 20% 19.2% 18.7% 3 15% 2.74 11.9% 11.8% 12.3% 10.7% 11.2% 1.82 9.4% 9.7% 10.2% 10% 8.4% 8.5% 8.1% ON Semi / FCS 2 Int. Rectifier Int. Rectifier Int. Rectifier 1.65 1.69 1
Slide 22: Small home appliances – a growth market for compact motion control solutions
Small home appliances – a growth market for Infineon’s compact motion control solutions Infineon’s IPMs (intelligent power modules) fit perfectly for home appliances › Infineon’s CIPOS™ Nano and CIPOS™ Micro IPMs provide precise control of motor speed › Addressed power range: 80 – 200 W › Infineon’s
Slide 23: Strong demand of high-voltage CoolMOS power MOSFETs drive loading of 300 mm
Strong demand of high-voltage CoolMOS™ power MOSFETs drive loading of 300 mm 300 mm manufacturing technology › Infineon operates the world‘s only 300 mm line for power semiconductors › Technology allows for significant productivity increase as compared to 200 mm › Processing knowhow and economies of
Slide 24: 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 2017-02-02 Copyright © Infineon Tec
Slide 25: 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
Slide 26: 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
Slide 27: 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: $698m microcontroller-based Embedded secure smart card ICs microcontrollers › Mobile device
Slide 28: Infineon's long-term growth is based on sustainable growth drivers
Infineon‘s long-term growth is based on sustainable growth drivers ATV IPC PMM CCS Courtesy: Hyundai › CO2 reduction › Energy efficiency › Energy efficiency › Security as a › Advanced Driver › Automation › Power density function Assistance › Productivity › BLDC motors › Mobile payments Systems incre
Slide 29: Table of Contents
Table of Contents 1 Infineon at a Glance 2 Growth Drivers 3 Results and Outlook 2017-02-02 Copyright © Infineon Technologies AG 2017. All rights reserved. 29
Slide 30: Strong growth in ATV due to ADAS and electro-mobility
Strong growth in ATV due to ADAS and electro-mobility ATV* IPC* PMM* CCS* [EUR m] [EUR m] [EUR m] [EUR m] +15% -2% 705 671 677 691 614 +6% 508 494 507 533 497 -1% 280 279 264 17% 17% 17% 19% 16% 12% 13% 14% 16% 16% 249 265 10% 11% 15% 13% 9% 175 181 173 174 174 20% 20% 18% 19% 17% 72 84 97 112 114 2
Slide 31: Guidance for Q2 FY17 and FY17
Guidance for Q2 FY17 and FY17 Outlook Q2 FY17* Outlook FY17* (compared to Q1 FY17) (compared to FY16) Increase of 5% Increase of 6% Revenue +/- 2%-points +/- 2%-points Segment At the mid-point of the At the mid-point of the revenue guidance: revenue guidance: Result Margin 15% 16% Investments in FY1
Slide 32: Part of your life. Part of tomorrow. Infineon
Part of your life. Part of tomorrow. Infineon
Slide 33: Infineon has a balanced maturity profile and a solid investment grade rating
Infineon has a balanced maturity profile and a solid investment grade rating (BBB) from S&P Maturity profile [EUR m; US$ m] €500 new debt after closing of Wolfspeed acquisition $350 $350 €300 €171 Campeon $250 debt* €200 $235 $250 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 3-year 4-year
Slide 34: SG&A includes noticeable acquisition-related costs
SG&A includes noticeable acquisition-related costs S and G&A* R&D** [EUR m] 220 200 200 196 196 198 195 197 200 200 195 180 15% 180 160 14% 140 120 13% 100 80 12% 60 40 11% 20 0 10% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY16 FY17 FY16 FY17 General & Administration Selling R&D % of sales [rhs] * Target range
Slide 35: Working capital about steady fluctuating in a small range
Working capital about steady fluctuating in a small range Working capital Inventories [EUR m] [EUR m] [days] 1,190 1,165 1,198 1,191 1,249 1200 120 1000 911 1000 791 865 100 800 761 739 800 107 107 100 104 100 80 600 600 60 400 40 400 200 20 200 0 0 0 Q1 FY16 Q2 Q3 Q4 Q1 FY17 Q1 FY16 Q2 Q3 Q4 Q1 FY1
Slide 36: 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% 200 204 200 0 0% FY12 FY13 FY14 FY15 FY16 FY17
Slide 37: Net cash decreased due to an increase in debt related to the Campeon acquisition
Net cash decreased due to an increase in debt related to the Campeon acquisition Liquidity development [EUR m] 1,769 1,784 471 1,790 2,043 299 204 1,776 166 1,994 1,803 2,083 2,240 2,209 27 Q1 Q2 Q3 Q4 Q1 FY16 FY17 Gross Cash Debt Net Cash › Free Cash Flow from continuing operations was minus €39m.
Slide 38: 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
Slide 39: 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
Slide 40: Financial calendar
Financial calendar Date Location Event 16 Feb 2017 Munich Annual General Meeting 27 Feb – 02 Mar 2017 Barcelona Mobile World Congress 08 – 09 Mar 2017 London UBS Technology Conference 15 Mar 2017 London Bernstein Electric Vehicle & Battery Revolution Conference 04 May 2017* Q2 FY17 Results 30 May 20
Slide 41: 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
Slide 42: 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 Senior Manager +49 89 234-22332 Investor Re
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