Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q3 FY2010 Earnings Presentation
35 slides from Infineon Technologies's earnings presentation, Jul 28, 2010
Slide 1: Third Quarter FY 2010 Quarterly Update
Third Quarter FY 2010 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Table of contents
Table of contents Infineon Results and Outlook Business Highlights 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 2
Slide 3: Financial Snapshot: Progress on all Counts
Financial Snapshot: Progress on all Counts Revenues Net Result Q2 FY10 Q3 FY10 in EUR m +17% 8% 10% 1,209 Revenues 1,035 1,209 1,035 Segment Result 110 163 126 Net result 79 126 79 Employees 25,216 25,978 Q2 FY10 Q3 FY10 Free Cash Flow 141 134 Gross Cash Position 1,667 1,514 Net cash 995 1,108 Equit
Slide 4: Further Increase in Revenue and Earnings in Q3 FY10
Further Increase in Revenue and Earnings in Q3 FY10 Q3 FY10 [EUR m] +59% Segment 0 52 88 110 163 Result Revenue Segment Result margin Net Income -23 14 66 79 126 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 4
Slide 5: Revenue Increase in all Segments; IMM and WLS Very Strong
Revenue Increase in all Segments; IMM and WLS Very Strong Revenue in EUR m Share of total Q2 FY10 316 ATV + 5% 27 % Q3 FY10 333 Q2 FY10 315 IMM +18% 31 % Q3 FY10 373 Q2 FY10 99 CCS +11% 9% Q3 FY10 110 Q2 FY10 267 WLS +30% 29 % Q3 FY10 346 Note: Other operating segments, central functions and elimina
Slide 6: All Divisions Profitable; IMM and WLS Strongly Improved
All Divisions Profitable; IMM and WLS Strongly Improved Segment Result (SR) in EUR m SR Margin Q2 FY10 51 16% ATV Q3 FY10 52 16% Q2 FY10 59 19% IMM Q3 FY10 82 22% Q2 FY10 3 3% CCS Q3 FY10 6 5% Q2 FY10 9 3% WLS Q3 FY10 24 7% Note: Other operating segments, central functions and eliminations Segment R
Slide 7: OpEx Growth Moderate and Below Sales Growth
OpEx Growth Moderate and Below Sales Growth S and G&A R&D [EUR m] 147 132 136 130 115 121 118 103 100 106 110 108 99 90 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 7
Slide 8: Working Capital Declined Again
Working Capital Declined Again 250 Working Capital 700 Inventories 100 incl. WLC excl. WLC 90 incl. WLC excl. WLC 600 551 200 521 503 504 80 150 500 460 451 70 106 400 60 100 50 50 35 300 40 0 200 30 -3 20 -50 100 -39 10 -57 -100 -71 0 0 Q3 FY09 Q4 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q3 FY09 Q4 FY0
Slide 9: Higher Investments in Response to Demand
Higher Investments in Response to Demand Investments1) D&A [EUR m] 513 > 4002) ~400 299 228 96 154 117 97 63 106 48 1) For definition please see slide 30 in appendix. 2) As of April 28, 2010, Infineon anticipated that investments will exceed EUR 300m compared with the prev. guidance of up to EUR 250
Slide 10: Gross Debt Reduced Significantly; Net Cash Position Rose to EUR 1.1bn
Gross Debt Reduced Significantly; Net Cash Position Rose to EUR 1.1bn Liquidity Development Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 [EUR m] 255 151* 270 402 534 570 270 1678 1667 280 1514 1507 629 675 609 1108 1108 995 874 871 779 665 657 -293 -321 -151 443 377 347 Gross Cash Debt Eq
Slide 11: IFX Targets for Liquidity and Capital Structure
IFX Targets for Liquidity and Capital Structure I) Liquidity Always Net Cash Q3 FY10: Gross cash of EUR 1,514m EUR 1,108m Net Cash Liquidity Gross Debt of EUR 406m and II) Gross cash > 25% of Sales Q3 FY10: Capital Gross cash of EUR 1,514m 37% of Sales1) Structure - Targets III) Gross debt < 2
Slide 12: Strong Outlook for Q4 and FY 2010 Due to Strong Operating Performance
Strong Outlook for Q4 and FY 2010 Due to Strong Operating Performance Outlook Q4 FY10 Outlook FY 2010 (compared to Q3 FY10) (compared to FY 2009) Revenue to grow by a mid to high 40‟s Revenue to increase by a Infineon percentage. high single-digit Revenue percentage. (compared to “high 30‟s percenta
Slide 13: Table of Contents
Table of Contents Infineon Results and Outlook Business Highlights 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 13
Slide 14: Revenue Split by Focus Area
Revenue Split by Focus Area 9-months FY10 revenue split Automotive Industrial & Multimarket Energy Efficiency € 1,889m Communications Security € 883m € 292m Wireless Chip Card Solutions & Security 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 14
Slide 15: Infineon Holds Leadership Positions in All Target Markets
Infineon Holds Leadership Positions in All Target Markets Auto- Power Chip Card Wireless* motive #1 #1 #1 #3 Market Market Market Market share share share share 9% 11% 26% 14% Calendar Year 2009 Calendar Year 2009 Calendar Year 2008 Calendar Year 2009 Source: Strategy Analytics Source: IMS Research,
Slide 16: Automotive Segment (ATV)
Automotive Segment (ATV) Revenue and Segment Result from Q1 FY08 to Q3 FY10 Revenue Segment Result 324 316 333 310 311 312 279 238 206 189 206 36 37 51 52 23 25 21 21 -17 -56 -65 Q1 FY08 Q2 Q3 Q4 Q1 FY09 Q2 Q3 Q4 Q1 FY10 Q2 Q3 Major recent developments Revenue increase driven by continued high dem
Slide 17: Unparalleled Capabilities in Core Competencies and Unique System Know-how
Unparalleled Capabilities in Core Competencies and Unique System Know-how Power Embedded Control Climate control Powertrain Night vision Steering Park distance Airbag control Transmission Suspension Hybrid Dashboard Engine Blindspot Cooling detection FAN TPMS Brake Battery Mirror Door Light manageme
Slide 18: Infineon is Best-Positioned to Capitalize on Market for Hybrid and Electric Cars
Infineon is Best-Positioned to Capitalize on Market for Hybrid and Electric Cars Automotive Power Perfect match for semi- semi- conductors hybrid and electric cars conductors #1 #1 2009 2009 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 18
Slide 19: Infineon is Addressing All Automotive Applications of Electro-Mobility
Infineon is Addressing All Automotive Applications of Electro-Mobility Low- voltage battery HV auxiliaries HV-LV Battery M DC/DC High-voltage boardnet mgmt. High-voltage battery High- Charger Inverter power AC/DC DC/DC 28 July 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 19
Slide 20: Industrial & Multimarket Segment (IMM)
Industrial & Multimarket Segment (IMM) Revenue and Segment Result from Q1 FY08 to Q3 FY10 [EUR m] Revenue Segment Result 373 325 315 291 276 279 257 273 234 221 193 82 56 44 59 26 23 29 31 2 9 -7 Q1 FY08 Q2 Q3 Q4 Q1 FY09 Q2 Q3 Q4 Q1 FY10 Q2 Q3 Major recent developments Growth was driven both by po
Slide 21: IMM Driven by Diverse Range of Power Electronics Growth Markets
IMM Driven by Diverse Range of Power Electronics Growth Markets Variable speed drive Hundreds of millions of motors to be replaced Low penetration of VSD Replacement cycle to continue for decades Infrastructure Trains Power transmission and distribution Smart grid Renewable energies On
Slide 22: One Out of Four Industrial Drives is Equipped With Infineon's IGBT Technology
One Out of Four Industrial Drives is Equipped With Infineon„s IGBT Technology Drives Pumps Fans Variable speed drives (VSD) with growth potential for decades to come Hundreds of millions of motors in use. Performance range from few watts up to megawatt. Huge potential, since only few motors eq
Slide 23: Chip Card & Security Segment (CCS)
Chip Card & Security Segment (CCS) Revenue and Segment Result from Q1 FY08 to Q3 FY10 Revenue Segment Result 116 121 115 113 110 99 91 88 80 82 83 17 19 10 6 4 6 1 1 3 -1 -8 Q1 FY08 Q2 Q3 Q4 Q1 FY09 Q2 Q3 Q4 Q1 FY10 Q2 Q3 Major recent developments Revenue driven by growth in payment (e.g. card rep
Slide 24: Focus on New, High-Margin Applications
Focus on New, High-Margin Applications Government identification e-passports National e-ID cards e-health care cards e-drivers license Payment Contactless payment Mobile payment / NFC Transport / ticketing Embedded security Trusted platform module Authentication in consumer applica
Slide 25: Wireless Solutions Segment (WLS)
Wireless Solutions Segment (WLS) Revenue and Segment Result from Q1 FY08 to Q3 FY10 Revenue Segment Result 346 286 270 253 251 265 267 197 205 197 204 18 19 18 17 9 24 3 -16 -23 -29 -44 Q1 FY08 Q2 Q3 Q4 Q1 FY09 Q2 Q3 Q4 Q1 FY10 Q2 Q3 Major recent developments Revenues driven by very successful ram
Slide 26: WLS Capitalizing on Mass-Market, Smart Phones and Connected Devices
WLS Capitalizing on Mass-Market, Smart Phones and Connected Devices Mobile phones Trend towards system-on-chip solutions. Ramp of single-chip platforms (XMM™ 1100/2130) at Nokia and other tier-1 OEMs. 3G entry and Dual-SIM platforms. Leading customer base. Smartphones Ramp of HSUPA platfor
Slide 27: Strong Ramps at Nokia in 2010 and 2011
Strong Ramps at Nokia in 2010 and 2011 Nokia mobile phones based on Infineon platforms Dual- SIMs Series 40 Nokia Nokia Nokia C1-01 C1-02 C2-00 Based on XMM™ 2130 One model for one Multiple models for the global market: market (India) China, India, MEA, Eurasia, SEAP, … Dual- SIMs Series 30 Nokia No
Slide 28: Leading Smartphone Customer Base
Leading Smartphone Customer Base Selected smartphone models using Infineon platform or RF Samsung Undisclosed Another undisclosed Galaxy S customer tier-1 customer HSUPA platform HSUPA platform HSPA+ platform XMM™6160 XMM™6160 XMM™6260 RIM Blackberry Motorola Bold 9700 Milestone HSUPA RF HSUPA RF SM
Slide 29: Infineon
Cinfineon Innovative semiconductor solutions for energy efficiency, communications and security.
Slide 30: 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‟ – „Available-for-sale financial assets‟ – „Assets classified as held for di
Slide 31: Infineon Consolidated Statements of Operations (IFRS) (unaudited)
Infineon Consolidated Statements of Operations (IFRS) (unaudited) 3 months ended 9 months ended in Euro million Jun30, 09 Mar 31, 10 Jun 30, 10 Jun 30, 09 Jun 30, 10 Revenue 761 1,035 1,209 2,172 3,185 Cost of goods sold (561) (682) (789) (1,761) (2,098) Gross profit 200 353 420 411 1,087 Research a
Slide 32: Infineon Consolidated Statements of Financial Position (IFRS) (unaudited)
Infineon Consolidated Statements of Financial Position (IFRS) (unaudited) in Euro million Sep 30, 09 Mar 31, 10 Jun 30, 10 Assets Current assets: Cash and cash equivalents 1,414 1,228 1,452 Available-for-sale financial assets 93 439 62 Trade and other receivables 514 557 685 therein: Trade accounts
Slide 33: Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited)
Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited) 3 months ended Jun 30, 09 Mar 31, 10 Jun 30, 10 (€ millions) Net income (loss) (23) 79 126 Less: net loss (income) from discontinued operations (3) 2 (5) Adjustments to reconcile net income (loss) to cash provided by (used in) operati
Slide 34: Financial Calendar and IR Contacts
Financial Calendar and IR Contacts Financial Calendar IR Contacts Nov 16, 2010* Ulrich Pelzer Q4 and Full Year FY10 Results Corporate Vice President Corporate Development & Investor Feb 17, 2011 Relations Annual Shareholder Meeting +49 89 234-26153 Feb 01, 2011* ulrich.pelzer@infineon.com
Slide 35: Disclaimer
Disclaimer This presentation was prepared as of July 28, 2010 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 to
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