Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2011 Earnings Presentation

38 slides from Infineon Technologies's earnings presentation, Nov 16, 2011

  1. Slide 1: Fourth Quarter FY 2011 Quarterly Update

    Fourth Quarter FY 2011 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Infineon at a Glance

    Infineon at a Glance Growth Outlook and Margin Resilience Results and Outlook 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 2

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Full FY 2011 revenue: EUR 3,997m ATV € 1,552m IMM € 1,800m CCS € 428m OOS + C&E € 217m 16 Nov 2011 2011 All rights reserved. Copyright © Infineon Technologies 2010. Page 3

  4. Slide 4: Another Quarter of Solid Financial Performance

    Another Quarter of Solid Financial Performance [EUR m] Q3 FY11 Q4 FY11 FY 2011 Revenue 1,043 1,038 3,997 Total Segment 212 195 786 Result Total SR Margin 20.3% 18.8% 19.7% 1043 1038 Net Income* 190 125 1,119 Investment 319 273 887 FCF from cont. -8 97 106 operations 212 195 Gross Cash 2,585 2,692 2,

  5. Slide 5: Tight Customer Relationships are Based on System Knowhow and App Understanding

    Tight Customer Relationships are Based on System Knowhow and App Understanding ATV IMM CCS Distributors 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 5

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

    Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 11% Infineon 27% Infineon 9% Toshiba 7% Samsung 21% Freescale 8% STMicro 7% NXP 21% STMicro 8% Mitsubishi 7% STM 18% NXP 7% Vishay 6% Renesas 8% Calendar Year 2010. Calendar Year 2010. Calenda

  7. Slide 7: Growth Outlook and Margin Resilience

    Infineon at a Glance Growth Outlook and Margin Resilience Results and Outlook 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 7

  8. Slide 8: New Era: Multiple Factors Driving Demand for Power Semiconductors

    New Era: Multiple Factors Driving Demand for Power Semiconductors '90 – '10 '10 – '30 Changes Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content. Courtesy: Tesla Shift towards renewable energies requires orders of magnitude more high-power semis per M

  9. Slide 9: Growth: Rising Global Car Production and Silicon Content Drive Market

    Growth: Rising Global Car Production and Silicon Content Drive Market Global car production [units m] CAGR(10-15) = 6% Highest growth in car units out of Source: IHS CSM, Oct. 2011 Cars ≤ 3.5t APAC. 94.8 89.8 85.2 80.3 8 68.8 65.7 71.9 74.8 7 8 8 9 9 Semi content per car: USD 289 in 7 9 5 11 6 57.5

  10. Slide 10: By Region, Main Growth Drivers are BRIC Markets and Recovery in North America

    By Region, Main Growth Drivers are BRIC Markets and Recovery in North America Automotive semiconductor market forecast [USD bn] CAGR(10-15) = 10% 34.5 32.3 CAGR 4.0 Brazil, Russia +15% 29.4 and RoW 26.4 CAGR 23.4 9.1 APAC w/o +15% 21.5 Japan 4.9 CAGR Japan +6% 7.4 CAGR N. America +10% CAGR 9.1 Europ

  11. Slide 11: Electric Vehicles (EV) and Hybrid EVs (HEV) Drive Semiconductor Demand

    Electric Vehicles (EV) and Hybrid EVs (HEV) Drive Semiconductor Demand ICE vs. EV/HEV Semiconductor BOM 9 800 Fuel cost, CO2 reduction and price are xEV SC BOM 7,6 8 $749 6,8 700 main drivers for EVs and HEVs. 7 $611 600 5,9 6 2.7x 5,0 1.8x 500 Semiconductor bill-of-material of an 5 4,0 EV/HEV is 2

  12. Slide 12: Conversion of Electrical Energy

    Conversion of Electrical Energy Application Frequency DC voltage Grid Products (expl.) 1000 100 10 1 [Hz] 1000 100 10 1 [V] 50/60 Hz discrete IGBT SiC diode EconoPACK™ IHM module CoolMOS™ Power IC OptiMOS™ 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 12

  13. Slide 13: Semi Content per MW in Wind Turbines Much Higher Than in Trad. Power Plants

    Semi Content per MW in Wind Turbines Much Higher Than in Trad. Power Plants Nuclear plant, coal-fired plant Wind turbines 50/60 Hz 50/60 Hz Generator AC AC DC AC No fluctuation in amplitude and Fluctuations in amplitude and frequency. frequency. Direct grid coupling possible. Power semiconductor con

  14. Slide 14: Motor Drives and Traction: Focus on Efficient Power Conversion and RPM Control

    Motor Drives and Traction: Focus on Efficient Power Conversion and RPM Control Direct AC connection AC/DC/AC conversion variable frequency 50/60 Hz 50/60 Hz AC DC AC About 60% of industrial energy is used by electrical motors. For each $1 spent to purchase a more efficient electrical motor, $100 of

  15. Slide 15: 10% Growth or More p.a. Expected for Infineon

    10% Growth or More p.a. Expected for Infineon ATV IMM CCS Courtesy: Hyundai ATV: ~10% p.a. IMM: > 10% p.a. CCS: ~5-7% p.a. Infineon: ≥ 10% p.a. 16 Nov 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 15

  16. Slide 16: 4 Reasons for Sustainable Profitability - #1: High Barriers to Entry

    4 Reasons for Sustainable Profitability ─ #1: High Barriers to Entry Long product System knowhow Strong quality and life cycles and understanding reliability req's Courtesy: Siemens Courtesy: BMW For many markets we Both deep and wide Products need to address, deliveries of know-how and reliably per

  17. Slide 17: #2: Semiconductors – Core Enablers of Innovation and Higher Functionality

    #2: Semiconductors – Core Enablers of Innovation and Higher Functionality Energy Efficiency Mobility Security Power supplies Recuperation Identification More advanced power Implemented in trains Chip-based passports semiconductors allow for years; brought to and national ID cards smaller, denser, li

  18. Slide 18: #3: Semis Represent a Negligible Part of the Value of the End Product

    #3: Semis Represent a Negligible Part of the Value of the End Product Example 1: mid-range car Example 2: high-speed train Courtesy: Volkswagen Courtesy: Siemens €25,000 €6,000,000 EUR 6m Semi BoM: 1.0% Semi BoM: 1.7% of product of product value value €250 €100,000 16 Nov 2011 Copyright © Infineon T

  19. Slide 19: #4: Infineon's Core Competencies - Power Semiconductors and eControl

    #4: Infineon's Core Competencies ─ Power Semiconductors and eControl Design and manufacturing of Core competence power power semis tightly coupled Thin-wafer technology Super-junction MOSFETs Silicon-Carbide (SiC) IGBT module packaging Manu- facturing Core competence eControl Design Automotive real-

  20. Slide 20: Sustainable Profitability: We Will Keep High Margins

    Sustainable Profitability: We Will Keep High Margins #1 #2 #3 #4 Infineon's Semis enable Value of semis High barriers core compe- high functio- small relative to entry tencies: Power nality to end product and eControl SR target margins ATV: IMM: CCS: 15–20% 20–25% 10–15% Courtesy: Tesla Infineon: ~2

  21. Slide 21: Target Operating Model

    Target Operating Model FY 2011 FY 2012e Longer term Decreasing by ≥ 10% Revenue EUR 3.997bn a mid growth p.a. single-digit % Flat or Gross margin 41.4% < 40% increasing vs FY 2012 Low-to-mid 11.0% Increasing R&D teens % of sales by 5 – 10% of sales 11.2% Increasing Low-teens % SG&A of sales by 5 – 1

  22. Slide 22: Results and Outlook

    Infineon at a Glance Growth Outlook and Margin Resilience Results and Outlook 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 22

  23. Slide 23: Q4 FY11: Maintained Solid Total Segment Result Margin

    Q4 FY11: Maintained Solid Total Segment Result Margin Revenue and Segment Result [EUR m] FY11 revenue split +10% by product category 1043 1038 994 942 922 18% 19% 20% 20% 19% 171 177 202 212 195 Power eControl ASICs, others Q4 Q1 Q2 Q3 Q4 FY10 FY11 Revenue Total Segment Result Total SR margin 16 Nov

  24. Slide 24: All Segments Contribute to Total Segment Result

    All Segments Contribute to Total Segment Result ATV IMM CCS [EUR m] +16% +8% 472 472 436 423 433 392 410 396 340 354 +1% 24% 25% 25% 25% 24% 17% 17% 19% 20% 17% 115 98 107 107 116 10% 58 59 74 80 66 106 107 108 116 113 13% 13% 14% 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY10 FY11 FY10 FY11

  25. Slide 25: OpEx In-line With Target Operating Model

    OpEx In-line With Target Operating Model S and G&A R&D [EUR m] 15% 120 14% 100 80 13% 60 12% 40 11% 20 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY10 FY11 FY10 FY11 General & Administration Selling R&D % of sales 16 Nov 2011 Copyright © Infineon Technologies 2011 2010. All rights reserved. Page 25

  26. Slide 26: Working Capital

    Working Capital* Working Capital Inventories [EUR m] [EUR m] [days] 0 Q4 FY10 Q1 Q2 Q3 Q4 FY11 80 -100 500 -200 400 60 -300 Comparable historical 300 -400 figures not available. Comparable historical 40 200 figures not available. -500 20 -600 100 -700 0 0 Q4 FY10 Q1 Q2 Q3 Q4 FY11 Trade and other rec

  27. Slide 27: Investments Remain High to Exploit Growth Potential

    Investments Remain High to Exploit Growth Potential Investments* D&A [EUR m] 887 ~ flat Q1 Q2 ~ 430 325 336 364 Q3 Q4 FY 2010 FY 2011 Guidance FY 2010 FY 2011 Guidance FY 2012 FY 2012 Guidance for Investments: Guidance for D&A: FY13: below investments in FY12 FY13: increase compared to FY12 beyond F

  28. Slide 28: High Gross and Net Cash Position Maintained

    High Gross and Net Cash Position Maintained Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 114* 129 227 127 191 212 153 133 2692 2691 2585 243 243 2387 2387 2335 2335 2246 2246 1727 1669 1331 1331 1293 1293 Q4 Q1 Q2 Q3 Q4 FY10 FY11 FY11 * Consists of Convertible Bond 2014 (nomi

  29. Slide 29: Guidance for Q1 and FY 2012

    Guidance for Q1 and FY 2012 Outlook Q1 FY12 Outlook FY 2012 (compared to Q4 FY11) (compared to FY 2011) Revenue to decline Mid-single digit Revenue by about 10%. percentage decline. Total Segment Low-to-mid 13 to 14% of sales. Result teens percentage. Margin 16 Nov 2011 2011 All rights reserved. Cop

  30. Slide 30: New Structure of IMM as of January 2012

    New Structure of IMM as of 1 January 2012 IMM Industrial Power Control Power Management & (IPC) Multimarket (PMM) Applications Consumer-oriented applications Industry-oriented applications Power supplies for notebooks, Drives and traction PCs, server Renewable energy Lighting Mobile infrastructure P

  31. Slide 31: Cinfineon

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

  32. Slide 32: Notes

    Notes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Working Capital = ('Total current assets' – 'Cash and cash equivalents' – ‘Financial investment' – 'Assets classified as held for sale') – ('Total c

  33. Slide 33: Infineon Consolidated Statements of Operations (IFRS) (unaudited)

    Infineon Consolidated Statements of Operations (IFRS) (unaudited) 3 mo nt hs end ed 12 mo nt hs end ed in Euro million; except f or t he per share dat a Sep 3 0 , 11 Jun 3 0 , 11 Sep 3 0 , 10 Sep 3 0 , 11 Sep 3 0 , 10 Revenue 1,038 1,043 942 3,997 3,295 Co st o f go o ds so ld (619) (613) (563) (2,3

  34. Slide 34: Infineon Consolidated Statements of Financial Position (IFRS) (unaudited)

    Infineon Consolidated Statements of Financial Position (IFRS) (unaudited) in Euro million S ep 3 0, 11 J un 3 0, 11 Se p 3 0, 10 A s se t s : Current assets: Cash and cash equivalents 1,007 822 1,667 Financial investments 1,685 1,763 60 Trade and other receivables 593 828 687 therin: Trade acco unts

  35. Slide 35: Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited)

    Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited) 3 mo nt hs end ed in Euro million Sep 3 0 , 11 Jun 3 0 , 11 Sep 3 0 , 10 N e t inco m e 125 190 390 Less: net income (lo ss) from disco ntinued o peratio ns, net o f inco me taxes 122 (15) (197) A djustments to reco ncile net inco me

  36. Slide 36: Financial Calendar

    Financial Calendar Date Location Event * preliminary date 17-18 Nov 2011 Barcelona Morgan Stanley TMT Conference 13:00 - 14:00 22 Nov 2011 Web cast: Q4 results, Automotive GMT 29-30 Nov 2011 Scottsdale, AZ Credit Suisse Technology Conference 01 Feb 2012* Q1 FY12 Results 08 Mar 2012* Munich Annual Ge

  37. Slide 37: Institutional Investor Relations Contacts

    Institutional Investor Relations Contacts Ulrich Pelzer Corporate Vice President, Corporate Development & Investor Relations +49 89 234-26153 ulrich.pelzer@infineon.com Joachim Binder Senior Director, Investor Relations +49 89 234-25649 joachim.binder@infineon.com Aleksandar Josic Manager, Investor

  38. Slide 38: Disclaimer

    Disclaimer This presentation was prepared as of 16 November 2011 and is current only as of that date. This presentation includes forward-looking statements and assumptions about the future of Infineon’s business and the industry in which we operate. These include statements and assumptions relating

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