Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2009 Earnings Presentation

28 slides from Infineon Technologies's earnings presentation, Aug 4, 2009

  1. Slide 1: Third Quarter FY 2009 Quarterly Update

    Third Quarter FY 2009 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Disclaimer

    Disclaimer This presentation was prepared as of August 4, 2009 and is current only as of that date. This presentation includes forward-looking statements about the future of Infineon’s business and the industry in which we operate. These include statements relating to general economic conditions, fu

  3. Slide 3: Infineon Results and Outlook; Refinancing Package; Business Highlights

    Æ Infineon Results and Outlook Æ Refinancing Package Æ Business Highlights August 04, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 3

  4. Slide 4: Q3 FY09 Revenue Increased to EUR 845m, Segment Result Slightly Positive

    Q3 FY09 Revenue Increased to EUR 845m Segment Result Slightly Positive Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 [EUR m] 1.153 830 845 747 59 8 -102 -110 Revenue Segment Result August 04, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 4

  5. Slide 5: Q3 FY09 Revenue and Segment Result by Segment

    Q3 FY09 Revenue and Segment Result by Segment Automotive Industrial & Chip Card Wireless Wireline Other Corporate & [EUR m] Multimarket & Security Solutions Communi- Operating Elimi- cations Segments nations 300 251 250 221 206 200 150 100 82 84 50 19 9 4 7 1 0 0 -17 -1 -13 -50 Revenue Segment Resul

  6. Slide 6: Net Debt in Nominal Terms Declined by More Than EUR 100m

    Net Debt in Nominal Terms Declined by More Than EUR 100m Debt structure changes [EUR m] in 3Q FY09 1,261 „ Repurchase of EUR 94m 1,141 1,114 1,040 nominal amount of 446 convertible and 443 348 exchangeable bonds for 377 about EUR 71m in cash, using strong cash flow. 766* „ Issuance of a new EUR 871

  7. Slide 7: Cash Generation during 9-Months FY09 Despite Significant Revenue Decline

    Excluding IFX10+, Cash Generation during 9- months FY09 Despite Significant Revenue Decline Gross cash development since end Q4 FY08 [EUR m] As of June 30, 2009 900 -106 102 800 700 -101 182 600 -161 112 500 -40 883 871 400 300 200 100 0 Payment from deposit protec- tion fund Other Financing repayme

  8. Slide 8: IFX10+ Program and Further Measures Significantly Reduced OpEx

    Through the IFX10+ Program and Further Measures, Infineon significantly reduced OpEx Actual expenditures in SG&A and R&D [EUR m] Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 R&D 174 149 122 125 SG&A 144 109 105 105 318 Cost reduction: EUR 88m 230 August 04, 2009 Copyright © Infineon Technologies 2009. All rights

  9. Slide 9: CapEx Significantly Below D&A, Reduction of CapEx Targets

    CapEx Significantly Below D&A, Reduction of CapEx Targets During 9-months FY09 CapEx D&A [EUR m] on Apr 30, 2009 on Jul 29, 2009 on Dec 3, 2008 on Feb 6, 2009 > 500 announced announced announced announced 415 250 200 170-190 118 Q1 through Q3 FY09 Q1 through Q3 current target FY09 for FY09 for FY09

  10. Slide 10: Strict Management of Working Capital Positions

    Strict Management of Working Capital Positions Bars: [EUR m] Lines: [days] 700 663 661 543 521 80 589 521 518 496 70 600 488 317 302 365 72 60 500 65 62 50 400 56 53 55 52 40 300 46 38 36 39 30 200 34 20 100 10 0 0 9 9 8 9 9 9 8 9 9 9 8 9 0 0 0 0 0 0 0 0 0 0 0 0 FY FY FY FY FY FY FY FY FY FY FY FY 1

  11. Slide 11: Q4 FY09 Outlook and Update on Full Year FY 2009 Outlook (IFRS)

    Q4 FY09 Outlook and Update on Full Year FY 2009 Outlook (IFRS) ƒ Reflecting the pending sale of the WLC business, Infineon will classify WLC as discontinued operations in its consolidated financial statements for Q4 FY09 and fiscal year ending September 30, 2009, effective as of the fourth quarter.

  12. Slide 12: Infineon Results and Outlook; Refinancing Package; Business Highlights

    Æ Infineon Results and Outlook Æ Refinancing Package Æ Business Highlights August 04, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 12

  13. Slide 13: Steps for Refinancing Taken in Q3 FY09

    Steps for Refinancing Taken in Q3 FY09 „ May 5: Bond Tender Offer † Repurchase of EUR 53m (nominal) of Conv and Exch Bonds 2010 „ May 26: New Convertible Bond 2014 † Gross proceeds of ~EUR 182m „ During Q3 FY09: Additional repurchases of bonds † EUR 41m (nominal) for Conv and Exch Bonds 2010 „ July

  14. Slide 14: Summary of Key Results of the Capital Increase

    Summary of Key Results of the Capital Increase „ ~323m shares have been subscribed for by execution of subscription rights (~96.9% of available shares). „ ~14m shares haven been subscribed for by Apollo. † After settlement of the shares subscribed Apollo will hold 1.3% of Infineon. „ Registration of

  15. Slide 15: Successful Recapitalization Results in Balanced Maturity Profile

    Successful Recapitalization Results in Balanced Maturity Profile After CI and Maturity Profile [EUR m] June 30, 2009 After CI FY09/FY10 debt as of June 30, 2009 redemption All figures based on nominal values Q4 FY09/ -684 FY10 FY11 -78 FY12 -66 2292 2292 1613 1550 FY13 -40 1114 1114 871 866 436 430

  16. Slide 16: Sale of Wireline Communications (WLC)

    Sale of Wireline Communications (WLC) „ Signing of Sale agreement on July 7, 2009 with Golden Gate Capital. „ Closing expected in autumn 2009. „ Purchase price is EUR 250m, book gain of ~EUR 135m, proceeds of EUR 230m at closing, remainder of EUR 20m payable 9 months thereafter. „ Approximately 900

  17. Slide 17: Infineon Results and Outlook; Capital Increase Transaction Overview; Business Highlights

    Æ Infineon Results and Outlook Æ Capital Increase Transaction Overview Æ Business Highlights August 04, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 17

  18. Slide 18: Focus Areas and Target Markets

    Focus Areas and Target Markets 9-months FY09 revenue split Industrial & Multimarket Automotive Energy Efficiency Security Communications of WLC Sale July 7 ed Chip Card sign & Security Wireline Communications Wireless Solutions August 04, 2009 Copyright © Infineon Technologies 2009. All rights reser

  19. Slide 19: Automotive Segment (ATV)

    Automotive Segment (ATV) Revenue and Segment Result [EUR m] Revenue Segment Result „ Revenue increased due to 350 312 „ improved demand worldwide for 300 smaller-sized cars in the context of 250 206 189 206 national car-scrap bonus programs 200 in Europe and an economic stimulus 150 program in China

  20. Slide 20: Industrial & Multimarket Segment (IMM)

    Industrial & Multimarket Segment (IMM) Revenue and Segment Result [EUR m] Revenue Segment Result „ Revenue increased due to stronger end 350 325 customer demand for computing, 300 communications and industrial 250 234 221 products. 193 200 „ Segment Result improved significantly. 150 The principal d

  21. Slide 21: Chip Card & Security Segment (CCS)

    Chip Card & Security Segment (CCS) Revenue and Segment Result [EUR m] Revenue Segment Result „ Revenues increased slightly as stronger 140 revenues in the SIM card business 120 115 were partially offset by lower revenues 91 in the ID business. 100 80 82 80 „ Segment Result was positive again with 60

  22. Slide 22: Wireless Solutions Segment (WLS)

    Wireless Solutions Segment (WLS) Revenue and Segment Result [EUR m] Revenue Segment Result „ Revenues increased significantly on a 350 sequential basis, mainly due to 300 286 increased demand of some major 251 250 204 mobile phone platform customers for 197 200 both HSDPA and Ultra Low Cost 150 solu

  23. Slide 23: Wireline Communications Segment (WLC)

    Wireline Communications Segment (WLC) Revenue and Segment Result [EUR m] Revenue Segment Result „ Revenues increased mostly driven by 120 the CPE business where 104 100 „ several high-end Integrated Access 88 79 84 Devices (IAD) projects at major 80 European carriers ramped, and 60 „ the system-on-a

  24. Slide 24: We Parunel

    We Parunel We ¢€) aate vaiue. Cinfineon Never stop thinking

  25. Slide 25: Infineon Condensed Consolidated Statements of Operations (IFRS)

    Infineon Condensed Consolidated Statements of Operations (IFRS) (unaudited) 3 months ended 9 months ended in Euro million Jun 30, 08 Mar 31, 09 Jun30, 09 Jun 30, 08 Jun 30, 09 Revenue 1,029 747 845 3,168 2,422 Cost of goods sold (673) (634) (610) (2,063) (1,922) Gross profit 356 113 235 1,105 500 Re

  26. Slide 26: Infineon Consolidated Balance Sheet (IFRS)

    Infineon consolidated Balance Sheet (IFRS) (unaudited) in Euro million Sep 30, 08 Jun 30, 09 Assets Current assets: Cash and cash equivalents 749 767 Available-for-sale financial assets 134 104 Trade and other receivables 799 496 Inventories 665 521 Income tax receivable 29 13 Other current financia

  27. Slide 27: Infineon Condensed Consolidated Statements of Cash Flows (IFRS)

    Infineon Condensed Consolidated Statements of Cash Flows (IFRS) (unaudited) in EUR m Jun 30, 08 3 months ended Mar 31, 09 Jun 30, 09 Net loss (379) (258) (23) Less: net loss from discontinued operations 429 108 3 Adjustments to reconcile net loss to cash provided by (used in) operating activities: N

  28. Slide 28: Financial Calendar

    Financial Calendar „ Aug 03, 2009 End of the Capital Increase Subscription Period „ Aug 07, 2009* Settlement of New Shares subscribed for under rights issue „ Nov 19, 2009* Q4 FY09 and full year results * Preliminary Date Copyright © Infineon Technologies 2009. All rights reserved. Page 28

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