Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q3 FY2020 Earnings Presentation

16 slides from Infineon Technologies's earnings presentation, Aug 4, 2020

  1. Slide 1: Third Quarter FY 2020 Analyst Call

    Third Quarter FY 2020 Analyst Call Infineon Technologies AG Investor Relations

  2. Slide 2: Group financial performance

    Group financial performance Revenues and segment result USD exchange rate [EUR m] Average exchange rate Q3 Q2 Q3 60,0% FY19 FY20 FY20 2,174 2,015 2,062 1,986 ø USD/EUR 1.12 1.10 1.10 2000 1,916 50,0% 40,0% 30,0% Book-to-bill* *See appendix for definition 15.7% 15.1% 15.5% 13.8% 20,0% 10.1% 1.0 0.9 0

  3. Slide 3: Automotive (ATV)

    Automotive (ATV) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin 888 893 829 846 815 98 78 67 11.0% 51 8.7% 8.1% 6.0% 0.9 0.9 0.8 0.8 -2.9% -24 0.2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 › Nearly one fourth

  4. Slide 4: Industrial Power Control (IPC)

    Industrial Power Control (IPC) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin 357 362 358 366 334 62 62 63 59 55 1.1 1.0 0.7 0.8 0.7 18.6% 16.3% 17.3% 17.2% 15.4% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 › No

  5. Slide 5: Power & Sensor Systems (PSS)

    Power & Sensor Systems (PSS) Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin 681 639 617 598 593 153 146 145 138 143 1.2 1.0 0.9 24.2% 23.9% 24.6% 22.4% 0.6 21.0% 0.5 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 ›

  6. Slide 6: Connected Secure Systems (CSS)

    Connected Secure Systems (CSS)* Revenues Segment Result Book-to-bill [EUR m] [EUR m] Margin 307 167 162 158 162 37 1.3 1.1 1.1 22 22 23 0.8 0.8 19 13.6% 13.9% 14.2% 11.4% 12.1% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 FY19 FY19 FY20 FY20 FY20 › O

  7. Slide 7: Well-defined roadmap how to capture the value of the deal

    Well-defined roadmap how to capture the value of the deal 16 Apr 2020 FY21 FY23 FY25 FY28 › generate sustainable procurement effects › have aligned and prioritized product › establish one interface to the customer (OITC) roadmap with joint P2S concepts in place › streamlining global shared service c

  8. Slide 8: Preliminary PPA for Cypress leads to goodwill of ~$6bn

    Preliminary PPA for Cypress leads to goodwill of ~$6bn Results of preliminary purchase price allocation (PPA) for Cypress [USD bn] 9.0 0.1 3.8 -0.8 5.9 Will be converted to EUR at each quarter end; corresponded to €5.5bn at time of PPA Consideration Book value of Fair Value (FV) Deferred taxes Goodw

  9. Slide 9: Equity part of refinancing completed; successful bond issue to repay bridge facility

    Equity part of refinancing completed; successful bond issue to repay acquisition-related bridge facility › Arranging and syndication of acquisition facility  2019 › Initial equity de-risking in two steps: › €1.5bn via ABB  › €1.2bn via dual-tranche hybrid bond  › Drawdown of acquisition facility

  10. Slide 10: Gross margin and Opex

    Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross profit as reported [EUR m] R&D expenses [EUR m] SG&A expenses Gross margin as reported 321 316 735 731 709 686 243 243 241 230 222 587 214 204 214 14.8% 36.5% 35.5% 37.0% 12.1% 12.7% 12.1% 34.5% 11.2% 14.5% 27.0% 10.6% 10.8% 10.6% 10.8% Q3 Q4

  11. Slide 11: Outlook for Q4 FY20 and FY20, including Cypress since April 2020

    Outlook for Q4 FY20 and FY20, including Cypress since 16 April 2020 Outlook Q4 FY20* Outlook FY20* between Revenue ~€8.5bn €2.3bn and €2.6bn At the mid-point of the revenue guidance: Segment Result Margin ~14% ~13% Investments in FY20 ~€1.2bn D&A in FY20 ~€1.3bn** * Based on an assumed average excha

  12. Slide 12: Key points

    Key points Q3 FY20: Solid level of profitability › Revenue of €2,174m; Segment Result margin: 10.1% › Quarter likely marking the trough Successful adoption of a task force mode for challenging market conditions › Resilient business model › With operations running, we continue to meet our customer de

  13. Slide 13: Questions & Answers

    Questions & Answers 2020-08-04 Copyright © Infineon Technologies AG 2020. All rights reserved. 13

  14. Slide 14: Appendix: Book-to-bill ratio - Definition

    Appendix: Book-to-bill ratio - Definition Book-to-bill = Orders received / Revenue in Euro per quarter › Orders received contains order backlog and external customer forecast External customer forecast includes consignment stock forecast by customers Not included are internal consignment replenishme

  15. Slide 15: Disclaimer

    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 upon currently available information and present estimates. They are subject to a

  16. Slide 16: Cinfineon

    Cinfineon Part of your life. Part of tomorrow.

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