Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2023 Earnings Presentation

109 slides from Infineon Technologies's earnings presentation, Aug 3, 2023

Slide 1: Third Quarter FY 2023 Quarterly Update
Third 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 FY22 revenue by segment Automotive (ATV) 13% Green Industrial Power (GIP) Power & Sensor Systems (PSS) 45% 29% Connected Secure Systems (CSS) Energy Mobility IoT green and efficient clean and safe smart and secure 13% Financials FY22 reven
Slide 3: Global player, clear #1 in power semiconductors, #5 in microcontrollers
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 2021 total market: USD 27.5bn2 2022 total market: USD 26.9bn1 Samsung 11.3% Infineon 19,7
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 E-mobility CSS 10% 13% Renewables 6% Other 31% ADAS 5% 45% ATV 6% Data center PSS 29% 8% IoT 2% Payment 3% BPA/Power Tool
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: Building the world's largest 200-millimeter SiC power fab
Building the world’s largest 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, competitive local co
Slide 7: 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 8: Expansion of Kulim backed by strong 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 9: 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 >€1bn revenue potential Villach Kulim FY25e end of
Slide 10: Solutions and technology 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 Grid power supply AI GPU/CPU Titanium class One & two ste
Slide 11: ~USD800m NOR flash memory design-win
~USD800m NOR flash memory design-win in new E/E architecture for software-defined vehicle platform of North American OEM OEM architecture element Infineon NOR Flash memories › central computer › 256 Mbit SEMPER™ xSPI › ADAS/AD, in-vehicle infotainment › real-time MCUs and MPUs › 1 Gbit SEMPER™ xSPI
Slide 12: 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 13: Infineon acquires Imagimob
Infineon acquires Tiny Machine Learning leader Imagimob to strengthen offering in embedded AI solutions With the acquisition Infineon advances its position to offer a world-class Machine Learning (ML) platform that enables acceleration of software and hardware revenues and supports internal and cust
Slide 14: 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 15: 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 CSS E-Mobility 13% ATV 45% Other Renewables PSS €14.2bn >10% ADAS 29% CAGR Data center IoT GIP Through cycle growth
Slide 16: 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 neu
Slide 17: Significant margin expansion through the cycle
Upgraded 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 S
Slide 18: 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 19: 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 Revenue growth >10% Segment Result Margin 25% Adj. Free Cash Flow Margin1 10-15% Reported RoCE to reach 2x cost-of-capital level 12.6% 8.4% WACC FY21 FY22 FY23e FY24e FY25e
Slide 20: Outlook for Q4 FY23 and FY23
Outlook for Q4 FY23 and FY23 Outlook Outlook Q4 FY231 FY231 Revenue ~ €4bn ~ €16.2bn Adj. Gross Margin ~47% Segment Result Margin ~25% ~27% FCF/adj. FCF ~€1.2bn/~€1.7bn Investments ~€3.0bn D&A ~€1.8bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00 2 Including the amortization of aro
Slide 22: 2030 carbon neutrality goal aligned with Paris Agreement
Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement’s 1.5°C target CO2 burden1 CO2 savings2 3 million tons of CO2 equivalents ~100 million tons of CO2 equivalents Ratio ~1:33 On the road to carbon neutrality3 we achieved Infineon’s CO2 target3 by 2025 and 2030 significant mil
Slide 23: External recognitions confirm engagement in sustainability
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date MSCI ESG AA CCC to AAA 05/2023 A- climate scoring CDP F to A 12/2022 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 03/2023 83 Dow Jones Sustainability™ Dow Jones Sustain
Slide 25: Leveraging Si leadership, strengthening position in wide bandgap
Infineon leveraging Si leadership, strengthening position in wide bandgap Market size (2028 vs. 2022) Si CAGR 4% ‒ Different applications require different solutions Si ‒ Infineon offers the broadest portfolio in silicon, silicon carbide and gallium nitride ‒ Leadership in Power Systems across all S
Slide 26: Wide bandgap application growth rates
Wind Energy storage Telecom/ Motor drives systems Datacenter 163% CAGR 43% 22% CAGR CAGR 49% 21% CAGR CAGR Grid-scale battery storage Solar 18% CAGR Fuel cell CAV UPS Main inverter 17% CAGR 39% Heat pump Mobile CAGR charger Rail 52% EV CAGR 16% Charging CAGR LEV 24% CAGR Onboard 74% charger CAGR 38%
Slide 27: Chargepoint will become one of our leading customers
Chargepoint will become one of our leading customers in the fast growing EV Charger market EV charging is an attractive business opportunity Infineon extends its market leadership [$ m] ‒ Significant CRA signed for EASY 3B SiC-modules Power device market value for EV ‒ Chargepoint runs an EV chargin
Slide 28: 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 29: GaN expected to be preferred technology in core applications
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: Overview of key investment highlights
Overview of key investment highlights + 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 cation unde
Slide 31: 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 32: 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 34: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR 18.7% Memory ICs (FY18 – FY22 ) MCUs 7.000 6,516 37% 6.000 5.000 4,841 27% 4.000 3,284 3,503 3,521 23% 17% 3.000 14% 16% Sensors 2.000 12% 7% 1.000 4% Power (incl. SiC) 0 -3% FY18 FY19 FY20 FY21 FY22
Slide 35: Automotive semiconductor market expected to continue growth
Automotive semiconductor market expected to continue its growth journey Applications Market Outlook for CY23 ‒ Strong increase in content-per-vehicle should stabilize semiconductor demand ‒ Semiconductor shortage expected to ease further Automotive ‒ However, ongoing risks of demand perturbations du
Slide 36: 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 38: xEV sales crossed the 10m mark in CY22
In CY22, xEV (PHEV + BEV) sales crossed the 10m mark driven by China with unit growth of 82% y-y; global monthly run rate now >1m World USA Europe China (incl. Western and Eastern) (incl. Hong Kong and Macao; excl. Taiwan) 25.6% 10,509 18.1% 6,750 14.2% 14.0% 6,207 13.4% 8.4% 3,240 7.2% 3,407 2,686
Slide 39: BEV semi content expected to grow by 2028
Infineon addresses 100% of power semiconductors for all drivetrains; BEV semi content expected to grow from ~$1,000 to ~$1,500 by 2028 2022 ICE semi content by product1 2022 average vehicle semi content1 2028 BEV semi content scenario ~$1,000 , $1.500 Drivetrain power semis ‒ Inverter ‒ BMS ~70% ~$8
Slide 40: Most comprehensive system solutions for all xEV segments
Infineon offers the most comprehensive system solutions addressing all xEV segments: pure EVs 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 High-voltage gate driver Roto
Slide 41: In 5 years every second car electrified; 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% 40 0 ~75% >50% 2021 2027 2030 of cars Si S
Slide 42: 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 43: 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 NETA Auto Pressure sensor Gas sensor Chinese bus
Slide 44: Expanding portfolio towards H2 sensors
Expanding our portfolio towards H2 (hydrogen) sensors to address battery protection and the entire fuel cell ecosystem H2 sensor key use cases H2 sensor details Based on Infineon's H2 gas leakage H2 gas leakage H2 outgassing sensor MEMS technology sensor for fuel sensor for infra- for battery therma
Slide 46: 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 47: Growth of L1/L2/L2+ main driver of ADAS 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 48: 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 49: User experience meets E/E architecture
User experience meets electrical/electronic (E/E) architecture Software-defined car Digital cockpit ‒ E/E architecture ‒ MEMS sensor technology ‒ MCUs ‒ MEMS microphones ‒ Sensors ‒ Actuators Car of Premium Comfort ‒ Matrix light the future ‒ Motor control ICs ‒ MOSFETs 2023-08-03 Copyright © Infine
Slide 50: Software-defined cars and Infineon's MCUs
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 Full car Central car computer computer Vehicle Vehicle Info- In
Slide 51: Innovations defining the digital cockpit
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 2023-08-03 Copyright © Infineon Technologies AG 20
Slide 52: 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 53: Motor control ICs for comfort features
Infineon’s suite of motor control ICs lead the way to address fast- growing comfort features ‒ Comfort features making Infineon’s suite of motor control ICs Application examples further inroads into cars; e.g., ‒ MCU ‒ PMIC seats in a mid-range car feature about seven motors ‒ Bridge IC ‒ Driver IC
Slide 54: 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 55: 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 57: Industrial Power Control becomes Green Industrial Power
Effective 1 April 2023, Industrial Power Control (IPC) has become Green Industrial Power (GIP) IPC Emphasizes our contribution to Sets a mark for the paradigm Fosters pride and engages decarbonization, electri- shift towards rapid growth and external stakeholders highly dynamic applications fication
Slide 58: GIP at a glance
GIP at a glance GIP revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR 7.9% (FY18 – FY22 ) Discretes Modules (incl.SiC) (incl. SiC) 2.000 1,790 1.800 1,418 1,406 1,542 1.600 1,323 1.400 1.200 21% 1.000 800 600 19% 400 18% 18% 18% 200 0 FY18 FY19 FY20 FY21 FY22 Gate driv
Slide 59: Strong outlook in Green & Efficient Energy applications
Strong outlook in Green & Efficient Energy applications and moderate growth in Drives confirm positive GIP market outlook Applications % of FY22 segment revenue Market Outlook for CY23 ~35% ‒ New order growth for drives has slowed down, analysts expect market to enter a period of adjustment but with
Slide 60: 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 61: 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 62: 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 63: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application [EUR per Mainly SiC 6000 [EUR per MW] installation] Mainly IGBT 5000 5,000 5,000 4000 3000 3,500 3,500 2000 2,500 2,000 2,000 1000 1,500 1,000 0 500 100 40 - 60 600 0 Fossil, nuclear, Wind Solar
Slide 64: GIP markets accelerate growth
GIP markets accelerate growth – enabling green energy and driving decarbonization Key facts [€ bn] >10% 12 10 Renewable Energy, Growth ‒ The acceleration of the energy Power Infrastructure, EV charging, Public transition drives GIP markets 8 & Commercial >20% Mobility ‒ SiC penetration accelerates 6
Slide 65: 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 66: 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 67: 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 69: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] RF & Sensors CAGR 15.1% (FY18 – FY22 ) 4.500 4,070 HiRel 4.000 3.500 3,268 3.000 2,318 2,445 2,650 2.500 2.000 1.500 25% 28% Power (incl. GaN) 1.000 23% 24% 24% 500 0 FY18 FY19 FY20 FY21 FY22 PSS revenue
Slide 70: Weakness in all verticals except industrial persists in 2023
Weakness in all verticals except industrial persists in 2023 Applications % of FY22 segment revenue1 Market Outlook for CY23 ‒ Server market is still soft and bottoming out, but upside from AI business is evident. Channel ~18% inventory reduction is ongoing Computing ‒ PC market and edge computing m
Slide 71: 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 73: Clear leader in MOSFETs
Infineon is the clear leader in MOSFETs with further market share gains, additional growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2021 total market: $11.1bn 2021 total market: $30.9bn Infineon 26.6% Texas Instruments 15.3% onsemi 10.8% Analog Devices3 11.0% STMicro 9.6% Infineon 9
Slide 74: Server market including AI hyperscalers offers growth potential
Server market including AI hyperscalers offers attractive growth potential Server market units as well as BoM expected to grow [in m units] Exponential increase in Power AI Training & Networking Factor1 power level requires cutting-edge 20 innovation in Device & Packaging technologies to solve power
Slide 75: 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 76: PSS 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 77: 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 79: 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 80: Sensor markets targeted by PSS
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 81: Market leader 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 83: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR 28.7% (FY18 – FY22 ) MCUs Security ICs 2.000 1,822 1.800 1.600 1,397 1.400 1.200 974 1.000 800 664 642 600 400 21% 200 16% 12% 13% 13% 0 Connectivity FY18 FY19 FY20 FY21 FY22 CSS revenue CSS Segment
Slide 84: Market outlook affected by macroeconomic conditions
Market outlook is affected by macroeconomic conditions; risks continue especially for consumer segments Applications % of FY22 segment revenue Market Outlook for CY23 ‒ Growth in industrial IoT is expected to stretch into CY23 based on existing order backlog despite geopolitical and Industrial IoT e
Slide 85: 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 Infineon 25.8% payment 13% NXP 17.4% mobile communications (incl. std. SIM, SWP SIM) (+0.1-pt) 9% 37% gove
Slide 86: MCU and software 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
Slide 87: IoT at a fingertip 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 inherited We are fully on track to reach or even overachieve through Cypress acquisition the announced Cypress revenue synergy target
Slide 88: 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 90: 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 91: Group financial performance
Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenue Segment result Segment result margin Average revenue exchange rate 13% Q3 Q2 Q3 -1% FY22 FY23 FY23 4,143 4,119 4,089 3,951 ø USD/EUR 1.06 1.08 1.09 3,618 Order backlog1 [EUR bn] 42 43 38 36 32 28.0% 28.6% 25.5%
Slide 92: Automotive (ATV)
Automotive (ATV) Revenues Segment Result Segment result margin [EUR m] [EUR m] +25% +2% 647 2.080 2.129 583 1.934 1.872 532 506 1.701 399 31.1% 28.4% 27.4% 26.2% 23.5% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Further revenue step-up primarily driven by microc
Slide 93: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result Segment result margin [EUR m] [EUR m] +30% +1% 558 565 181 542 171 500 436 144 136 82 32.4% 30.3% 28.8% 25.1% 18.8% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Another record revenue driven by transportation a
Slide 94: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result Segment result margin [EUR m] [EUR m] 338 301 -10% 277 1.169 -1% 1.021 1.043 925 917 197 191 29.8% 28.9% 28.9% 28.9% 28.9% 27.1% 27.1% 25.6% 21.3% 20.8% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Revenue decr
Slide 95: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result Segment result margin [EUR m] [EUR m] +4% -14% 155 531 550 492 474 125 456 119 84 86 28.2% 23.5% 25.1% 18.4% 17.5% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ‒ Revenue development driven by weaker development
Slide 96: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 1.866 1.920 1.839 1.821 1.564 486 484 487 496 466 452 414 410 394 396 47.2% 46.6% 44.4% 44.5% 43.2% 12.9% 11.7% 12.3% 11.8% 12.1% 11.4% 10.9% 10.4% 9.6% 9.7% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3
Slide 97: Investments, D&A and Free Cash Flow
Investments, Depreciation & Amortization and Free Cash Flow Investments Depreciation & Amortization Free Cash Flow [EUR m] [EUR m] [EUR m] 866 768 709 605 565 542 443 429 434 441 440 422 326 193 25 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY22 FY22 FY23 FY23 FY23 FY22 FY22 FY23 FY23 FY23 FY22 FY
Slide 98: Working Capital
Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] 3.754 3.499 3.081 3.239 2.071 2.834 1.904 1.148 1.303 140 143 149 900 124 120 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Trade receivables Trade payables
Slide 99: Return on capital employed
Return on capital employed Historical development 20% 15% 10% 18.4% 18.0% 16.2% 16.8% 12.6% 12.7% 5% 8.4% 3.0% 0% FY20 FY21 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 2023-08-03 Copyright © Infineon Technologies AG 2023. All rights reserved. 99
Slide 100: 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 56 55 49 EPS basic 40 EPS adjusted Q3 FY22 Q4 Q1 FY23 Q2 Q3 Total cash return to shareholders via dividends [EUR m] 417 ‒ Dividend for 351 305 336 FY22: €0.32 per
Slide 101: Liquidity development
Liquidity development Historical liquidity development [EUR m] 3,717 3,708 3,569 3,446 2,986 -4,679 -1,693 -5,467 -1,759 -5,662 -1,945 -5,428 -1,982 Q3 Q4 Q1 Q2 Q3 -6,054 -2,485 FY22 FY22 FY23 FY23 FY23 Gross Cash Gross Debt Net Cash/Debt 2023-08-03 Copyright © Infineon Technologies AG 2023. All rig
Slide 102: 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 June 2023) Gross Cash1 €1bn + at least 10% of revenues → €2.6bn €1bn + 12% of revenues → €3.0bn Gross Debt2 ≤ 2.0x EBITDA 0.8x EBITDA
Slide 103: 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 104: Cinfineon
Cinfineon
Slide 105: 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 106: Glossary
Glossary AC alternating current IGBT insulated gate bipolar transistor ACC adaptive cruise control IoT internet of things AD automated driving IPM intelligent power module ADAS advanced driver assistance system LED light-emitting diode ADC analog-to-digital converter MCU microcontroller unit AEB aut
Slide 107: 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 108: Financial calendar
Financial calendar Date Event Location 29 - 30 Aug 2023 Jefferies Annual Semiconductor Conference Chicago 5 Sep 2023 Commerzbank & ODDO BHF Corporate Conference Frankfurt 6 - 7 Sep 2023 Citi Global Technology Conference New York IoT presentation (PSS, CSS) and roadshow with 13 - 14 Sep 2023 London A
Slide 109: 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 — Q3 FY2023 Earnings Presentation on 6ix

Infineon Technologies — Q3 FY2023 Earnings Presentation

Slide 1: Third Quarter FY 2023 Quarterly Update

Slide 2: Infineon at a glance

Slide 3: Global player, clear #1 in power semiconductors, #5 in microcontrollers

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

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

Slide 6: Building the world's largest 200-millimeter SiC power fab

Slide 7: Most competitive provider of SiC technology

Slide 8: Expansion of Kulim backed by strong long-term customer commitments

Slide 9: 30% market share target in SiC by end of decade

Slide 10: Solutions and technology partnerships in AI and hyperscale

Slide 11: ~USD800m NOR flash memory design-win

Slide 12: Infineon at the core of IoT

Slide 13: Infineon acquires Imagimob

Slide 14: Decarbonization and digitalization accelerating structural growth

Slide 15: Double-digit growth ahead – five key applications

Slide 16: Upgraded Target Operating Model

Slide 17: Significant margin expansion through the cycle

Slide 18: Free Cash Flow generation increasing over the cycle

Slide 19: Upgraded Target Operating Model leads to superior value creation

Slide 20: Outlook for Q4 FY23 and FY23

Slide 21: ESG: Targets and achievements

Slide 22: 2030 carbon neutrality goal aligned with Paris Agreement

Slide 23: External recognitions confirm engagement in sustainability

Slide 24: Infineon's wide bandgap strategy

Slide 25: Leveraging Si leadership, strengthening position in wide bandgap

Slide 26: Wide bandgap application growth rates

Slide 27: Chargepoint will become one of our leading customers

Slide 28: GaN market accelerating

Slide 29: GaN expected to be preferred technology in core applications

Slide 30: Overview of key investment highlights

Slide 31: Combined platform features leading GaN IP

Slide 32: GaN Systems acquisition positions Infineon as leading GaN player

Slide 33: Automotive

Slide 34: ATV at a glance

Slide 35: Automotive semiconductor market expected to continue growth

Slide 36: Top market position built on system competence

Slide 37: Electromobility

Slide 38: xEV sales crossed the 10m mark in CY22

Slide 39: BEV semi content expected to grow by 2028

Slide 40: Most comprehensive system solutions for all xEV segments

Slide 41: In 5 years every second car electrified; SiC to lead

Slide 42: More than 20 design-wins in SiC across auto applications

Slide 43: Rapid execution of BMS strategy

Slide 44: Expanding portfolio towards H2 sensors

Slide 45: Automated Driving

Slide 46: 28nm CMOS radar enables autonomous truck driving

Slide 47: Growth of L1/L2/L2+ main driver of ADAS content

Slide 48: Number of radar systems expected to grow 24% annually

Slide 49: User experience meets E/E architecture

Slide 50: Software-defined cars and Infineon's MCUs

Slide 51: Innovations defining the digital cockpit

Slide 52: Premium lighting technology

Slide 53: Motor control ICs for comfort features

Slide 54: Infineon and Continental cooperate on E/E architectures

Slide 55: Infineon awarded for BYD's new E/E architecture

Slide 56: Green Industrial Power

Slide 57: Industrial Power Control becomes Green Industrial Power

Slide 58: GIP at a glance

Slide 59: Strong outlook in Green & Efficient Energy applications

Slide 60: Clear leader in discrete IGBTs and IGBT modules

Slide 61: Decarbonization & Digitalization are the driving forces

Slide 62: Huge potential along green energy chain until 2030

Slide 63: Green energy generation provides large business opportunities

Slide 64: GIP markets accelerate growth

Slide 65: Decarbonization of heating

Slide 66: Energy efficient rail transport

Slide 67: Leading position in industrial SiC market

Slide 68: Power & Sensor Systems

Slide 69: PSS at a glance

Slide 70: Weakness in all verticals except industrial persists in 2023

Slide 71: PSS growth built on many applications

Slide 72: PSS – Power

Slide 73: Clear leader in MOSFETs

Slide 74: Server market including AI hyperscalers offers growth potential

Slide 75: Components enable best power usage effectiveness for data centers

Slide 76: PSS key enabler for residential solar systems

Slide 77: Transition to 5G drives demand in power semis

Slide 78: PSS – RF and Sensing

Slide 79: Main applications addressed by PSS sensors portfolio