Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q2 FY2010 Earnings Presentation

30 slides from Infineon Technologies's earnings presentation, Apr 28, 2010

  1. Slide 1: Second Quarter FY 2010 Quarterly Update

    Second Quarter FY 2010 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of contents

    Table of contents  Infineon Results and Outlook  Business Highlights 28 April 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 2

  3. Slide 3: Revenue and Profitability Improved Again

    Revenue and Profitability Improved Again Revenues Net Result in € million Q1 FY10 Q2 FY10 +10% 1,035 941 Revenues 941 1,035 Segment Result 88 110 79 66 Net income 66 79 Q1 FY10 Q2 FY10 Free Cash Flow* 14 141 Gross Cash Position 1,678 1,667 Net cash 874 995 *) Free cash flow from continuing operation

  4. Slide 4: Infineon Achieved Double-Digit Segment Result Margin in Q2 FY10

    Infineon Achieved Double-Digit Segment Result Margin in Q2 FY10 Infineon – Second Quarter Fiscal Year 2010 [EUR m] +55% Segment -113 0 52 88 110 Result Revenue in EUR million Segment Result margin Net -258 -23 14 66 79 Income 28 April 2010 Copyright © Infineon Technologies 2010. All rights reserved.

  5. Slide 5: Strong Growth in ATV, IMM and CCS; WLS Almost Flat Despite Seasonality

    Strong Growth in ATV, IMM and CCS; WLS Almost Flat Despite Seasonality Revenue in EUR million Share of total Q1 FY10 279 ATV +13% 30% Q2 FY10 316 Q1 FY10 273 IMM +15% 30% Q2 FY10 315 Q1 FY10 83 CCS +19% 10% Q2 FY10 99 Q1 FY10 270 WLS -1% 26% Q2 FY10 267 Note: Other operating segments, central functi

  6. Slide 6: Profitability Improved in ATV, IMM and CCS; WLS Remained Profitable

    Profitability Improved in ATV, IMM and CCS; WLS Remained Profitable Segment Result (SR) in EUR million SR Margin Q1 FY10 37 13% ATV Q2 FY10 51 16% Q1 FY10 44 16% IMM Q2 FY10 59 19% Q1 FY10 1 1% CCS Q2 FY10 3 3% Q1 FY10 17 6% WLS Q2 FY10 9 3% Note: Other operating segments, central functions and elim

  7. Slide 7: Continued OpEx Control

    Continued OpEx Control S and G&A R&D [EUR m] 132 130 136 115 110 118 103 106 108 100 99 90 28 April 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 7

  8. Slide 8: Working Capital Declined Again

    Working Capital Declined Again 250 Working Capital 700 Inventories 100 incl. WLC excl. WLC incl. WLC excl. WLC 90 200 600 543 521 503 504 80 142 150 500 460 451 70 106 100 60 400 50 35 50 300 -3 40 0 30 200 -50 20 -39 100 -57 10 -100 Q2 Q3 Q4 Q4 Q1 Q2 0 0 FY09 FY09 FY09 FY09 FY10 FY10 Q2 FY09 Q3 FY0

  9. Slide 9: CapEx Significantly Below D&A in FY 2010

    CapEx Significantly Below D&A in FY 2010 CapEx1) D&A [EUR m] 513 Q4 ~400 > 3002) Q3 Q2 203 154 97 Q2 Q4 111 Q3 63 Q2 Q1 Q2 106 Q1 Q1 48 Q1 1) For definition please see slide 25 in appendix. 2) As of April 28, 2010, Infineon anticipates that CapEx will exceed EUR 300m compared with the prev. guidance

  10. Slide 10: Net Cash Position of Close to EUR 1bn

    Net Cash Position of Close to EUR 1bn Liquidity Development Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 [EUR m] Net Debt * Consists of CB 2010 (nominal EUR 258m; book EUR 254m) and CB 2014 (nominal EUR 196m; book EUR 148m).  Repurchase of EUR 142m nominal amount of outstanding bonds in Q2 FY10.

  11. Slide 11: IFX Targets for Liquidity and Capital Structure

    IFX Targets for Liquidity and Capital Structure I) Liquidity  Net Cash Position Q2 FY10: Gross cash of EUR 1,667m EUR 995m Net Cash Liquidity Gross Debt of EUR 672m and II) Gross cash  > 25% of Sales1) Q2 FY10: Capital Gross cash of EUR 1,667m 46% of Sales2) Structure - Targets III) Gross debt  <

  12. Slide 12: Increased Outlook for Q3 and FY 2010 Due to Strong Operating Performance

    Increased Outlook for Q3 and FY 2010 Due to Strong Operating Performance Outlook Q3 FY10 Outlook FY 2010 (compared to Q2 FY10) (compared to FY 2009) Revenue to grow in a Revenue to increase by a high 30‟s percentage. Infineon high single-digit Revenue percentage. (compared to in excess of 20% before

  13. Slide 13: Table of Contents

    Table of Contents  Infineon Results and Outlook  Business Highlights 28 April 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 13

  14. Slide 14: Revenue Split by Focus Area

    Revenue Split by Focus Area H1 FY10 revenue split Automotive Industrial & Multimarket Energy Efficiency € 1,183m Communications Security € 537m € 182m Wireless Chip Card Solutions & Security 28 April 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 14

  15. Slide 15: Automotive Segment (ATV)

    Automotive Segment (ATV) Revenue and Segment Result from Q1 FY08 to Q2 FY10 Major recent developments  Revenues increased, driven by continued high demand in all regions and some additional inventory replenishment in the supply chain.  Infineon entered into a strategic partnership with a leading E

  16. Slide 16: Infineon Has the Expertise and Product Portfolio for EV and HEV Applications

    Infineon Has the Expertise and Product Portfolio for EV and HEV Applications Microcontroller Low- Current sensor voltage battery HV-LV DC/DC HV auxiliaries M High-voltage boardnet Battery mgmt. High-voltage battery High- Inverter power DC/DC Charger AC/DC discrete IGBT EV = electric vehicle IGBT mod

  17. Slide 17: Industrial & Multimarket Segment (IMM)

    Industrial & Multimarket Segment (IMM) Revenue and Segment Result from Q1 FY08 to Q2 FY10 [EUR m] Major recent developments  Revenues increased 15 percent sequentially, reflecting strong end customer demand for consumer, computing, and industrial products. The introduction of Windows 7 was a strong

  18. Slide 18: Lighting: Bulb Replacement by LED

    Lighting: Bulb Replacement by LED LED driver solution Phase-cut dimmable off-line LED driver with PFC (power factor correction) and primary-side control in quasi-resonant operation mode. Applications:  40W/60W/100W incandescent bulb replacement  retrofit lamps  office lighting Key data:  power f

  19. Slide 19: Architectural LED Lighting: Cape Town International Convention Center (CTICC)

    Architectural LED Lighting: Cape Town International Convention Center (CTICC) LED driver solution The CTICC is lit up by a band of white light surrounding the building. A grid of light boxes, illuminated with white LEDs, form this lighting structure. One of the most impressive characteristics is the

  20. Slide 20: Chip Card & Security Segment (CCS)

    Chip Card & Security Segment (CCS) Revenue and Segment Result from Q1 FY08 to Q2 FY10 Major recent developments  Revenues increased 19 percent compared to the prior quarter, mainly driven by payment and to lesser extent by mobile communications.  Volume orders for the upcoming 90nm generation of c

  21. Slide 21: SLE 78: Best Hardware Innovation; Ramp of 90nm Ahead of Schedule

    SLE 78: “Best Hardware Innovation”; Ramp of 90nm Ahead of Schedule Integrity Guard In order to withstand even future attack scenarios, Infineon has implemented the revolutionary Integrity Guard security concept in the SLE 78 family. For this Infineon received the prestigious Sesames Award for “Best

  22. Slide 22: Wireless Solutions Segment (WLS)

    Wireless Solutions Segment (WLS) Revenue and Segment Result from Q1 FY08 to Q2 FY10 Major recent developments  Revenues stayed almost flat, mainly driven by ongoing strong demand from major customers, related ramp-ups of new platforms, and the strength of the US-$.  Shipments of the third generati

  23. Slide 23: Recent Product Announcements

    Recent Product Announcements HSPA+ Platform XMM 6260 Features:  40nm technology  lowest power consumption and smallest size  3GPP Release 7  CPC and RX-DIV  HSDPA 21 Mbps, HSUPA 11.5 Mbps Status: Ramp-up scheduled for mid CY 2011. Open-OS Platform XMM 6181 Features:  65nm technology  ARM11-ba

  24. Slide 24: Cinfineon

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

  25. Slide 25: Notes

    Notes CapEx = „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 disposal

  26. Slide 26: Infineon Consolidated Statements of Operations (IFRS) (unaudited)

    Infineon Consolidated Statements of Operations (IFRS) (unaudited) 3 months ended 6 months ended in Euro million Mar 31, 09 Dec 31, 09 Mar 31, 10 Mar 31, 09 Mar 31, 10 Revenue 669 941 1,035 1,411 1,976 Cost of goods sold (581) (627) (682) (1,200) (1,309) Gross profit 88 314 353 211 667 Research and d

  27. Slide 27: Infineon Consolidated Statements of Financial Position (IFRS) (unaudited)

    Infineon Consolidated Statements of Financial Position (IFRS) (unaudited) in Euro million Sep 30, 09 Dec 31, 09 Mar 31, 10 Assets Current assets: Cash and cash equivalents 1,414 1,589 1,228 Available-for-sale financial assets 93 89 439 Trade and other receivables 514 529 557 therein: Trade accounts

  28. Slide 28: Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited)

    Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited) 3 months ended Mar 31, 09 Dec 31, 09 Mar 31, 10 (€ millions) Net income (loss) (258) 66 79 Less: net loss (income) from discontinued operations 106 (112) 2 Adjustments to reconcile net income (loss) to cash provided by (used in) opera

  29. Slide 29: Financial Calendar and IR Contacts

    Financial Calendar and IR Contacts Financial Calendar IR Contacts  Jun 24, 2010* Ulrich Pelzer IFX Day Corporate Vice President Corporate Development & Investor  Jul 28, 2010* Relations Q3 FY10 Results  +49 89 234-26153  ulrich.pelzer@infineon.com  Nov 16, 2010* Q4 and Full Year FY10 Joachim Bi

  30. Slide 30: Disclaimer

    Disclaimer This presentation was prepared as of April 28, 2010 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

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