Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q1 FY2014 Earnings Presentation

27 slides from Infineon Technologies's earnings presentation, Jan 30, 2014

  1. Slide 1: First Quarter FY 2014 Quarterly Update

    First Quarter FY 2014 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook Disclaimer: This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q1 FY 2014 revenue: EUR 984m ATV IPC € 452m € 179m CCS PMM € 108m € 238m OOS+C&E* € 7m * Other Operating Segments; Corporate and Eliminations. 2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 3

  4. Slide 4: 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 2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4

  5. Slide 5: Infineon Holds Top Positions in All Major Product Categories

    Infineon Holds Top Positions in All Major Product Categories Automotive Power Smart card ICs semiconductors semiconductors total market in 2012: total market in 2012: total market in 2012: $2.24bn $23.9bn $15.0bn Renesas 14.2% Infineon 11.8% Infineon 24.1% Infineon 9.1% Toshiba 7.0% NXP 23.8% STMicr

  6. Slide 6: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 6

  7. Slide 7: Growth in Car Production and Content-per-Car Continues Unabated

    Growth in Car Production and Content-per- Car Continues Unabated Global car production (cars ≤ 6t) Semiconductor value per car [units m] [USD] CAGR(13-17) = 348 CAGR 4.0% World 326 +1.6% +3.4% 2017 2013 98.7 95.3 91.5 7.6 84.5 87.4 7.2 6.9 7.6 217 CAGR 6.1 6.5 7.7 Brazil 8.0 +2.3% 9.1 8.3 15.3 198 1

  8. Slide 8: EV/HEV Powertrain Contains $300 More Semi Content-per-Car vs Conventional Car

    EV/HEV Powertrain Contains $300 More Semi Content-per-Car vs Conventional Car EV/HEV car production EV/HEV powertrain semi market [units k] [USD m] CAGR(13-17) = CAGR(13-17) = 32.1% 25.1% 2048 7220 1804 240 648 6062 203 244 711 534 1477 187 4680 521 165 424 2813 1124 128 307 130 916 3344 2600 90 877

  9. Slide 9: IGBTs: Double-Digit Growth For Modules; Discretes to Resume Growth After 2013 Dip

    IGBTs: Double-Digit Growth For Modules; Discretes to Resume Growth After 2013 Dip Market development for discrete IGBTs and IGBT modules [USD m] 6000 CAGR(12-16) = 5.9% 1315 5000 1226 1132 4000 1016 1044 3000 CAGR(12-16) = 11.4% 2000 1000 3013 3324 3762 4189 4632 0 2012 2013 2014 2015 2016 IGBT Modu

  10. Slide 10: Higher Functionality in Mobile Devices Requires Additional Infineon Components

    Higher Functionality in Mobile Devices Requires Additional Infineon Components Feature phone Smartphones MOSFETs and power management ICs Smart high-density Infineon’s addressable content per phone Silicon MEMS microphones charger Up to $2 TVS diodes High-density RF switches charger 2-3 microphones*

  11. Slide 11: Expected Growth Broadly In Line With Historical Averages

    Expected Growth Broadly In Line With Historical Averages ATV IPC PMM CCS Courtesy: BMW AG Courtesy: Bosch Rexroth ~7% p.a. >10% p.a. >10% p.a. ~5% p.a. Infineon: 8% p.a. Sources: IHS, Strategy Analytics, ABI Research, Infineon. 2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserve

  12. Slide 12: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 12

  13. Slide 13: Profitability Better Than Expected in Q1 FY14

    Profitability Better Than Expected in Q1 FY14 Revenue and Segment Result [EUR m] +16% FY 2013 revenue split by product category 1.053 1.022 984 918 851 5% 7% 11% 14% 12% Power embed. Control RF others 117 148 68 116 44 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Revenue Segment Result Segment Result Margin 2014-01-30

  14. Slide 14: ATV, IPC and PMM Recorded High Year-on-Year Growth

    ATV, IPC and PMM Recorded High Year-on- Year Growth ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +20% 459 455 452 424 377 +7% +30% 266 271 238 222 227 197 +0% 173 179 5% 9% 11%13% 12% 138 144 129 10% 12% 17% 18% 12% 108 108 119 108 -4% -2% 8% 17%15% 7% 6% 9% 8% 9% 37 52 57 55 -5 -3 13 33 27 22 27

  15. Slide 15: Guidance for Q2 FY14 and FY 2014

    Guidance for Q2 FY14 and FY 2014 Outlook Q2 FY14 Outlook FY 2014 (compared to Q1 FY14) (compared to FY 2013) Mid single-digit Increase between Revenue percentage increase. 7% and 11%. Segment Between Between Result 10% and 13%. 11% and 14%. Margin Investments in FY 2014 About €650m. D&A in FY 2014 €

  16. Slide 16: Infineon tagline slide

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

  17. Slide 17: Significant Year-on-Year Improvement in Financial Performance

    Significant Year-on-Year Improvement in Financial Performance [EUR m] Q1 FY13 Q4 FY13 Q1 FY14 Revenue 851 1,053 984 Segment Result 44 148 116 SR Margin 5.2% 14.1% 11.8% [EUR m] Net Income* 19 142 87 1053 984 Investment 88 155 129 FCF from cont. -128 156 30 148 116 operations Gross Cash 2,081 2,286 2

  18. Slide 18: Opex-to-Sales-Ratio Well Within Target Range

    Opex-to-Sales-Ratio Well Within Target Range S and G&A1) R&D2) [EUR m] 139 140 140 133 122 15% 123 120 115 115 114 108 102 14% 100 80 13% 60 12% 40 11% 20 0 10% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY13 FY14 FY13 FY14 General & Administration Selling R&D % of sales 1) Target range for SG&A: „Low teens perc

  19. Slide 19: Inventories Up due to High Productivity, DSO and DPO in Line With Our Targets

    Inventories Up due to High Productivity, DSO and DPO in Line With Our Targets Working capital* Inventories [EUR m] [EUR m] [days] 589 609 654 Q1 FY13 Q2 Q3 Q4 Q1 FY14 585 573 100 600 0 80 -17 -25 400 60 40 -100 200 -92 20 -117 -123 0 0 Q1 FY13 Q2 Q3 Q4 Q1 FY14 -200 Inventories DOI* Trade receivables

  20. Slide 20: Future Investments Expected to Be About 15% of Sales

    Future Investments Expected to Be About 15% of Sales Investments* D&A [EUR m] 1000 30% 887 890 800 ~650 20% 600 15.1% 15.5% 466 ~500 453 428 378 11.9% 364 400 11.9% 325 336 10% 200 115 129 120 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 Q1 Fiscal Year Guidance 5Y-avg % of sales

  21. Slide 21: Gross Cash Stable; Net Cash Increased Due to Conversion of Convertible

    Gross Cash Stable; Net Cash Increased Due to Conversion of Convertible Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 108 38* 102 105 193 104 195 211 200 207 2016 2081 1768 1705 2137 1832 2286 1983 2279 2048 Q1 Q2 Q3 Q4 Q1 FY13 FY14 * Consists of convertible bond (nominal value

  22. Slide 22: Total Gross Capital Returns of EUR 722m Between FY 2011 and Q1 FY14

    Total Gross Capital Returns of EUR 722m Between FY 2011 and Q1 FY14 Total gross capital returns history [EUR m] 687 350 308 300  New EUR 300m capital return 250 109 program started in 212 200 November 2013 and 26 167 will last until 150 130 September 2015. 100 129 173 20 50 62 38 35 0 FY11 FY12 FY1

  23. Slide 23: Target: 'RoCE above WACC' over the cycle

    Target: 'RoCE above WACC' over the cycle RoCE* history WACC: low teens % 30% FY12: 22% 20% 27% 27% 25% 20% 27% FY13: 14% 10% 16% 17% 5% 7% 0% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Capital Employed* history 2,500 [EUR m] 2,035 2,239 2,274 2,216 2,159 2,194 1,760 1,889 2,000 1,629 1,500 1,000 500

  24. Slide 24: Notes

    Notes Investments = Please note: 'Purchase of property, plant and equipment' All positions in ' ' refer to the + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses respective accounting position and therefore should be applied with the Capital Employed = positive o

  25. Slide 25: 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 New!  October 2013: oekom research has classified Infineon as „Prime“, which serves as an indicator of the  January 2014: Infineon is quality of Infineon’s listed in the Sustainability

  26. Slide 26: Financial Calendar

    Financial Calendar Date Location Event 13 Feb 2014 Munich Annual General Meeting 29 Apr 2014* Q2 FY14 Results 11 Jun 2014 Berlin Dt. Bank German, Swiss & Austrian Conference 17 Jun 2014 London JPMorgan Technology CEO Conference 30 Jul 2014* Q3 FY13 Results 09 Sep 2014 Frankfurt Commerzbank Sector We

  27. Slide 27: Institutional Investor Relations Contact

    Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President  +49 89 234-26153 Finance, Treasury &  ulrich.pelzer@infineon.com Investor Relations Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 23

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