Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2013 Earnings Presentation

32 slides from Infineon Technologies's earnings presentation, Jul 30, 2013

  1. Slide 1: Third Quarter FY 2013 Quarterly Update

    Third Quarter FY 2013 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  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 u

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q3 FY 2013 revenue: EUR 1,022m ATV IPC € 459m € 173m PMM CCS € 266m € 119m OOS+C&E* € 5m * Other Operating Segments; Corporate and Eliminations. 2013-07-30 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

  4. Slide 4: Revenue above EUR 1bn; Segment Result Margin Back above 10%

    Revenue above EUR 1bn; Segment Result Margin Back above 10% [EUR m] Q3 FY12 Q2 FY13 Q3 FY13 Revenue 990 918 1,022 Segment Result 126 68 117 SR Margin 12.7% 7.4% 11.4% [EUR m] 1022 Net Income* 82 33 77 918 Investment 158 65 71 FCF from cont. -22 73 135 68 117 operations Gross Cash 2,150 2,016 2,137 Q

  5. Slide 5: 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 Distributors 2013-07-30 Copyright © Infineon Technologies AG 2013. 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 12% Infineon 25% Infineon 9% Mitsubishi 8% NXP 24% STMicro 8% Toshiba 7% Samsung 21% Freescale 7% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2012. Calendar year 20

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook

  8. Slide 8: Despite Europe, Global Car Production Up in 2013; Long-Term Prospects Still Healthy

    Despite Europe, Global Car Production Up in 2013; Long-Term Prospects Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(12-16) = 4.2% 99.5 102.5 +2.0% 96.3 92.3 8,2 87.0 7,6 7,9 81.5 83.1 7,3 7,7 7,5 76.9 6,7 7,7 74.4 6,0 6,1 8,1 16,9 6,6 8,2 15,5 16,1 6,4 9,4 8,8 14,7 9,1 7,9 13,5 12,8

  9. Slide 9: Semiconductor Value-Per-Car Continues to Increase

    Semiconductor Value-Per-Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] [USD] 209 329 CAGR Brazil CAGR World 184 315 +2.5% +3.3% 252 2013 2012 China CAGR 206 +5.2% Semiconductor market by segment 367 CAGR S. Korea 332 +2.5% [USD bn] 7.9 CAGR Powertra

  10. Slide 10: Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation

    Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation Industrial motor controls Market description [USD bn]  Food & beverage, medical & scientific, semiconductor 40 CAGR(12-16) = 8.2% Others machinery, printing sector.  Comparatively low IGBT content. 30  High p

  11. Slide 11: Even With EMEA Shrinking in 2013 Worldwide Demand is Growing

    Even With EMEA Shrinking in 2013 Worldwide Demand is Growing PV inverter installations by type PV inverter installations by region [GW] [GW] CAGR(12-16) = 15.0% CAGR(12-16) = 15.0% 60 60 50 50 40 40 30 30 20 20 10 10 CAGR(12-16) = 16.3% 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Utility-S

  12. Slide 12: Growth in Servers Compensates Slowdown in PCs and Notebooks

    Growth in Servers Compensates Slowdown in PCs and Notebooks PCs and Notebooks Servers [units m] [units k] CAGR(12-16) = -2.7% CAGR(12-16) = 4.6% 200 12000 195 180 CAGR(12-16) = -7.7% 11500 11.562 160 168 11000 11.099 155 140 147 147 141 137 10500 134 133 131 120 10.546 100 10000 10.004 80 9500 9.672

  13. Slide 13: Our Business With RF Components, Si-Mics and Power Semis Fueled by Mobile Devices

    Our Business With RF Components, Si-Mics and Power Semis Fueled by Mobile Devices Smartphones Tablets* [units m] [units m] CAGR(12-16) = 16.4% CAGR(12-16) = 36.2% 1400 500 1200 1283 1189 400 414 1000 1075 350 932 300 800 276 600 700 200 202 400 100 120 200 0 0 2012 2013 2014 2015 2016 2012 2013 2014

  14. Slide 14: Double-digit Growth in Payment and Government ID; SIM Cards Flat

    Double-digit Growth in Payment and Government ID; SIM Cards Flat Smart card ICs Government ID & healthcare [USD bn] [USD m] 4 CAGR(12-16) = 10.1% 1000 CAGR(12-16) = 14.5% 3 750 2 500 1 250 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 SIM Cards Payment & Banking e-National ID e-Passport e-Go

  15. Slide 15: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook

  16. Slide 16: Return to Year-on-Year-Growth and > 10% Segment Result Margin

    Return to Year-on-Year-Growth and > 10% Segment Result Margin Revenue and Segment Result [EUR m] FY 2012 revenue split +3% by product category 990 1.022 982 918 851 13% 12% 5% 7% 11% Power eControl others 126 116 68 117 44 Q3 Q4 Q1 Q2 Q3 FY12 FY13 Revenue Segment Result Segment Result Margin 2013-07

  17. Slide 17: Record Sales in ATV; IPC Returned to More Normal Levels; Nice Margin Recovery in PMM

    Record Sales in ATV; IPC Returned to More Normal Levels; Nice Margin Recovery in PMM Courtesy: Daimler AG ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +7% 459 428 416 424 377 -2% +14% 266 -2% 233 247 222 227 13% 11% 5% 9% 11% 177 181 173 138 144 14% 15% 10% 12% 17% 122 126 108 108 119 15% 14% -4%

  18. Slide 18: Automotive Semiconductor Market 2012: Infineon #1 in Fastest-Growing Region APAC

    Automotive Semiconductor Market 2012: Infineon #1 in Fastest-Growing Region APAC World Europe APAC & others* ($23.88bn) ($8.04bn) ($5.70bn) 1. Renesas 14.2% 1. Infineon 13.0% 1. Infineon 9.4% 2. Infineon 9.1% 2. Bosch 11.3% 2. STMicro 9.4% 3. STMicro 7.9% 3. STMicro 10.0% 3. Renesas 9.0% 4. Freescal

  19. Slide 19: Innovation Excellence and CSR is an Integral Part of Infineon's Corporate Strategy

    Innovation Excellence and CSR is an Integral Part of Infineon’s Corporate Strategy “Supplier Sustainability “Sustainability Award” “Innovation Award” Award” by Bombardier by RobecoSAM by Continental Transportation  20 June 2013:  26 June 2013:  08 July 2013: Infineon received the The jury was par

  20. Slide 20: DrBlade: Design-Wins for DC/DC Voltage Regulation at Major Server Customers

    DrBlade: Design-Wins for DC/DC Voltage Regulation at Major Server Customers DrBlade: the revolutionary chip-embedding technology  Design-wins for DrBlade, in combination with our digital power management ICs.  Based on Infineon’s outstanding manufacturing technology: thin wafer, galvanic electropl

  21. Slide 21: Guidance for Q4 FY13 and FY 2013

    Guidance for Q4 FY13 and FY 2013 Outlook Q4 FY13 Outlook FY 2013 (compared to FY 2012) Revenue About EUR 1,050m. Decline of about 1.5%. Segment Result About 13%. Just under 10%. Margin Investments in FY 2013 Just under EUR 400m. D&A in FY 2013 About EUR 470m. 2013-07-30 Copyright © Infineon Technolo

  22. Slide 22: Infineon

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

  23. Slide 23: Opex-to-Sales-Ratio

    Opex-to-Sales-Ratio S and G&A R&D [EUR m] 139 140 121 123 122 119 123 15% 115 116 120 108 102 100 14% 80 13% 60 12% 40 11% 20 0 10% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY12 FY13 FY12 FY13 General & Administration Selling R&D % of sales 2013-07-30 Copyright © Infineon Technologies AG 2013. All rights reser

  24. Slide 24: DOI, DSO And DPO In Line With Our Targets

    DOI, DSO And DPO In Line With Our Targets Working capital* Inventories [EUR m] [EUR m] [days] 546 567 585 573 589 Q3 FY12 Q4 Q1 FY13 Q2 Q3 600 100 0 80 -17 -25 400 -117 60 -200 200 40 -400 20 -333 -353 0 0 Q3 FY12 Q4 Q1 FY13 Q2 Q3 -600 Inventories DOI* Trade accounts receivable Trade payables [days]

  25. Slide 25: Investments in FY 2013 to be Reduced Significantly

    Investments in FY 2013 to be Reduced Significantly Investments* D&A [EUR m] 887 890 453 ~ 470 just under 400 428 364 325 336 115 115 71 116 65 88 116 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1 Q2 Q3 Full Year Guidance * For definition please see page 30. 2013-

  26. Slide 26: Gross Cash and Net Cash Increased Due to Positive Free Cash Flow

    Gross Cash and Net Cash Increased Due to Positive Free Cash Flow Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 100 103 102 105* 195 104 140 200 211 207 1907 2150 1907 2235 1940 1940 2081 1768 1768 2016 1705 1705 2137 1832 1832 Q3 Q4 Q1 Q2 Q3 FY12 FY13 FY12 * Consists of conver

  27. Slide 27: Total Gross Capital Returns of EUR 687m Between FY 2011 and Q3 FY13

    Total Gross Capital Returns of EUR 687m Between FY 2011 and Q3 FY13 Total gross capital returns history [EUR m] 350 308 300 250 109 212 200 26 167 150 130 100 129 109 173 26 130 129 20 50 20 80 62 16 50 50 12 27 0 38 0 38 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY11 FY12 FY13 FY11 FY12 FY13 CB 2014 share

  28. Slide 28: Target: 'RoCE Above WACC' Over the Cycle

    Target: ‘RoCE Above WACC’ Over the Cycle RoCE* history 100% 80% FY11: 62% 82% 60% WACC: low teens % 64% 59% 40% FY10: 30% 46% 53% FY12: 22% 20% 27% 31% 27% 25% 20% 27% 7% -9% 5% 16% 0% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY10 FY11 FY12 FY13 Capital Employed* history 2,500 [EUR m] 2,239

  29. Slide 29: Infineon is a Long-Standing Member of Europe's Leading Sustainability Indices

    Infineon is a Long-Standing Member of Europe’s Leading Sustainability Indices Dow Jones Sustainability Index FTSE4Good Index  Infineon is member of the Dow Jones Sustainability Index since 2010.  Infineon is currently Europe’s one and only semiconductor company member in the Dow Jones Sustainabili

  30. Slide 30: 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 Capital Employed = the positive o

  31. Slide 31: Financial Calendar

    Financial Calendar Date Location Event 28 Aug 2013 Frankfurt Commerzbank Sector Conference Week 03 – 04 Sep 2013 London Deutsche Bank European TMT Conference Conference Call by Jochen Hanebeck 18 Sep 2013 Division President, Automotive Berenberg Bank and Goldman Sachs German Corporate 24 Sep 2013 Mu

  32. Slide 32: Institutional Investor Relations Contact

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

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