Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q1 FY2023 Earnings Presentation
94 slides from Infineon Technologies's earnings presentation, Feb 2, 2023
Slide 1: First Quarter FY 2023 Quarterly Update
First Quarter FY 2023 Quarterly Update Infineon Technologies AG Investor Relations 1
Slide 2: Infineon at a glance
Infineon at a glance Addressing long-term high-growth trends FY22 revenue by segment Decarbonization 13% Automotive (ATV) › CO2 saving › Energy efficiency Digitalization Industrial Power Control (IPC) 45% › Sustainability 29% › Productivity Power & Sensor Systems (PSS) › Comfort Connected Secure Sys
Slide 3: Global player, #1 in power semiconductors, #4 in microcontrollers
Infineon is a global player, clear #1 in power semiconductors, and ranked #4 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2021 total market: USD 592bn1 2021 total market: USD 27.5bn2 2021 total market: USD 22.2bn1 Intel 12.9% Infineon 19.7%
Slide 4: Well-balanced portfolio among segments and key applications
Well-balanced portfolio among segments and key applications, highest growth coming from Decarbonization and Digitalization FY22 revenue of €14,218m by segment and key application CSS 13% E-mobility; 10% Renewables; 6% Other; 31% ADAS; 5% ATV Data center; 6% 45% PSS IoT; 8% 29% Payment; 2% BPA/Power
Slide 5: CMOS 28 nm radar design-win for L4 truck platforms
Infineon enables autonomous driving with its new CMOS 28 nm radar design-win for L4 truck platforms Design-win details › 4D imaging radar for autonomous driving truck platform › Infineon’s highest-resolution radar sensor ICs enable the next level of autonomous driving › Triple-digit million EUR desi
Slide 6: Expanding portfolio towards H2 sensors
Expanding our portfolio towards H2 (hydrogen) sensors to address battery protection and the entire fuel cell ecosystem H2 sensor key use cases H2 sensor details H2 Based on Infineon H2 gas leakage H2 gas leakage H2 outgasing sensor sensor for fuel sensor for infra- for battery thermal MEMS technolog
Slide 7: Decarbonization and digitalization accelerating structural growth
D E C A R B O N I Z AT I O N D I G I TA L I Z AT I O N … are accelerating structural growth of Infineon’s target markets Infineon serving all target markets as Leader in Power Systems and IoT Supported by … P2S From product thinking to Software capability Digital marketing and sales system understan
Slide 8: Leader in Power Systems
Leader in Power Systems: Infineon enabling decarbonization by delivering maximum value to customers with holistic system approach Electric vehicle Solar inverter Server power Inverter – BMS – OBC – DC/DC DC/DC – DC/AC AC/DC – DC/DC – PoL – Power stage Si/SiC/GaN Controller Driver IC Power switch Sof
Slide 9: Infineon at the core of IoT
Infineon at the core of IoT – driving digitalization by serving strongly growing multi-application markets Consumer IoT Industrial IoT Automotive IoT Connectivity Digital Real-world Software/ world applications Ecosystem Products: MCU – Connectivity (Wi-Fi, BLE, NFC) – Sensors – Security – Power sup
Slide 10: Upgraded Target Operating Model
Upgraded Target Operating Model: committing to more ambitious financial goals and being the sustainability leader Target Operating Model through cycle Previously Revenue growth >10% 9%+ Segment Result Margin 25% 19% Invest-to-sales Adj. Free Cash Flow Margin1 10-15% 13% Sustainability leader – CO2 n
Slide 11: Double-digit growth ahead by division and application
Double-digit growth ahead – five key applications account for ~60% of growth; well-diversified divisional split FY22 FY22-27e Revenue by division Revenue growth contribution by driver E-Mobility CSS 13% Other ATV Renewables 45% ADAS >10% PSS €14.2bn CAGR Data center 29% IoT Through-cycle growth rate
Slide 12: Significant margin expansion through the cycle
Upgraded Target Operating Model: Significant margin expansion through the cycle Former Upgraded FX System Portfolio Manu- OPEX scaling Currency Increased Pre-funding solutions & management, facturing costs system High twenties value-based technology/ productivity: solutions, pricing product mix 300
Slide 13: Free Cash Flow generation increasing over the cycle
Free Cash Flow generation increasing over the cycle, driven by profitable growth and better asset efficiency [€ bn] Operating cash flow strongly rising › Accretive investments 6 into high organic growth 5 › Operating cash flow expected to outgrow investments › Differentiated in-house 4 3 manufacturi
Slide 14: Upgraded Target Operating Model leads to superior value creation
Putting it all together – Upgraded Target Operating Model leads to superior value creation Target Operating Model through cycle Reported RoCE to reach 2x cost-of-capital level Revenue growth >10% 12.6% Segment Result Margin 8.4% WACC 25% Adj. Free Cash Flow Margin1 10-15% FY21 FY22 FY23e FY24e FY25e
Slide 15: Outlook for Q2 FY23 and FY23
Outlook for Q2 FY23 and FY23 Outlook Outlook Q2 FY231 FY231 Revenue ~ €3.9bn €15.5bn +/- €500m Adj. Gross Margin ~ 45% Segment Result Margin ~ 25% ~ 25% FCF/adj. FCF ~ €0.8bn / ~ €1.5bn Investments ~ €3.0bn D&A ~ €1.9bn2 1 Based on an assumed average exchange rate of $1.05 for €1.00 2 Including the
Slide 16: ESG: targets and achievements
ESG: targets and achievements 16
Slide 17: 2030 carbon neutrality goal aligned with Paris 1.5 °C target
Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement’s 1.5 °C target CO2 burden1 CO2 savings2 3 million tons of CO2 equivalents Ratio ~1:33 ~100 million tons of CO2 equivalents Net ecological benefit: CO2 emissions reduction of more than 97 million tons On the road to carbon n
Slide 18: External recognitions confirm our engagement
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date CCC to MSCI ESG AA 05/2022 AAA A- climate scoring CDP F to A 12/2022 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 02/2022 83 Dow Jones Sustainability™ Dow Jones Sustain
Slide 19: Infineon's wide bandgap strategy
Infineon’s wide bandgap strategy 19
Slide 20: Transition to WBG will vastly differ by application
Transition to WBG will vastly differ by application with Si expected to remain technology of choice for many of them 2020 2030 xEV High power EV Charging SiC with advantage in high power switching Energy Solar Storage performance and power density Systems On-board Charger GaN superior switching perf
Slide 21: 30% market share target in SiC by end of decade
30% market share target in SiC by end of decade underpinned by significant capacity expansion 10x Increase by 2027 vs. today Villach Kulim Infineon is well positioned for strong SiC market growth Steep ramp enables market share gains ~ €3bn total capacity ~ €1bn total capacity FY25e FY27e Villach Ku
Slide 22: SiC momentum further accelerating
SiC momentum further accelerating: significant new design-wins in auto, continuous leadership in industrial applications Most recent automotive SiC design-wins Most recent industrial SiC design-wins Stellantis US OEM Japanese OEM Around €3bn design-win volume in recent months More than 3,600 active
Slide 23: Comprehensive SiC strategy mastering key success factors
With its comprehensive SiC strategy Infineon is mastering all key success factors SiC raw material Superior trench Packaging Deep system supply technology portfolio understanding › 4 qualified SiC wafer and › 1 – 2 generations ahead › Best-in-class in-house › Decades of experience in boule suppliers
Slide 24: GaN: immense market opportunity
GaN: immense market opportunity with Infineon achieving significant design-wins across key power applications GaN market overview for power and RF (GaN-on-Si) applications GaN design-wins of around €1.5bn [USD bn] 3 Strong design-win momentum for power and RF applications CAGR 2,5 2.5 +52% RF RF 2 C
Slide 25: Automotive
Automotive 25
Slide 26: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY22 revenue split by product group [€ m] Memory ICs CAGR (FY18 – FY22) 18.7% MCUs 7.000 6,516 6.000 4,841 23% 5.000 3,284 3,503 3,521 4.000 16% 3.000 14% 12% 2.000 1.000 4% Sensors 0 FY18 FY19 FY20 FY21 FY22 Power (incl. SiC) ATV revenue ATV Seg
Slide 27: Automotive semiconductor market expected to continue growth
Automotive semiconductor market expected to continue its growth journey Applications Market Outlook for CY23 › Ongoing risks of demand perturbations due to a) macro-economic slowdown incl. COVID-19 break-outs b) higher energy costs c) weaker consumer confidence › However, demand overhang and OEM ord
Slide 28: Top market position built on system competence
Infineon’s top market position is built on system competence based on an industry-leading product portfolio Automotive semiconductors (2021 total market: $46.7 bn; +31.5% yoy) Infineon 12.7% › total market grew by 31.5% yoy, reaching all-time-high of $46.7bn, exceeding previous high in 2018 of $38.2
Slide 29: Electromobility
Electromobility 29
Slide 30: xEV sales crossed the 10m mark in CY22
In CY22, xEV (PHEV + BEV) sales crossed the 10m mark driven by China with unit growth of 82% y-y; global monthly run rate now > 1m [units k] penetration 25.6% 10,509 18.1% 6,750 14.0% 14.2% 6,207 13.4% 8.4% 7.2% 3,240 4.4% 8.4% 5.6% 4.2% 2.2% 2,686 2,341 0,328 1,002 1,405 3,407 0,668 1,336 CY20 CY21
Slide 31: BEV semi content expected to grow to ~$1,500 by 2027
Infineon addresses 100% of power semiconductors for all drivetrains; BEV semi content expected to grow from ~$1,000 to ~$1,500 by 2027 2021 ICE semi content by product1 2021 average vehicle semi content1 2027 BEV semi content scenario ~$500 ~$600 ~$870 ~$1,000 , $1.500 Upside potential drivetrain po
Slide 32: Most comprehensive system solutions for all xEV segments
Infineon offers the most comprehensive system solutions addressing all xEV segments: pure EV and all types of hybrids Infineon offers a full portfolio for the control loop of an electric car SiC and IGBT for high-voltage battery MOSFETs in FHEV, PHEV, BEV for 48 V MHEV Rotor position sensor High-vol
Slide 33: Every second car electrified in 5 years; SiC to lead
In 5 years, every second car will be fully or partially electrified; SiC to take lead over silicon in the 2027-2030 period Car production by fuel type xEV drivetrain power semiconductor TAM by technology [m units] [€bn] 100 12 80 9 ~55% ~45% 6 60 3 ~55% ~45% 0 ~75% 40 2021 2027 2030 Si SiC GaN > 50%
Slide 34: Around 20 design-wins in SiC across auto applications
Around 20 design-wins in SiC across all auto applications: traction inverter, OBC, DC-DC World’s leading IGBT supplier Latest CoolSiC™ design-wins including traction inverter, OBC, DC-DC Volkswagen German Luxury OEM Stellantis Hyundai Xpeng SAIC Renault Mini Li Auto Changan Hozon Zeekr Cadillac SAIC
Slide 35: Rapid execution of BMS strategy
Rapid execution of our BMS strategy showing great success Infineon’s comprehensive BMS portfolio Selected balancing IC customers PMIC Wireless communications ICs High-volume OEM Transceiver Battery monitoring ICs MCU Premium car OEM F-RAM Power switch NETA Auto Pressure sensor Gas sensor Chinese bus
Slide 36: Automated Driving
Automated Driving 36
Slide 37: Growth of L1/L2/L2+ drives ADAS semiconductor content
Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2027 Car production by degree of automation (SAE level) Radar is essential to meet decisive requirements of ADAS/AD 100% Distance 5 4,5 4 L0 3,5 80% Lane Detection 3 Speed L0 2,5 2 1,5 1 Camera 60% 0,5 Lidar 0 Standard radar
Slide 38: Radar systems expected to grow 24% annually
The number of radar systems is expected to grow by 24% annually, driven by new applications and increasing penetration Today Penetration of radar systems per SAE level Future Penetration of Max. systems % of new cars by SAE level Max. systems Penetration of Total: 55m systems radar systems per car 1
Slide 39: User experience meets E/E architecture
User experience meets electrical/electronic (E/E) architecture Software-defined car Digital cockpit E/E architecture | MCUs | sensors | actuators MEMS sensor technology | MEMS microphones Car of the future Premium Comfort Matrix light Motor control ICs | MOSFETs 2023-02-02 Copyright © Infineon Techn
Slide 40: Software-defined cars through architectural transformation
Software-defined cars will become a reality through architectural transformation; Infineon’s MCUs to win big here Domain architecture Mixed domain/zone architecture Full car computer Telematics Telematics Telematics Gateway Central ECU Central Car Computer Full Car Computer Vehicle Vehicle Info- Inf
Slide 41: Innovations defining the digital cockpit of tomorrow
Game changing innovations from Infineon are defining the digital cockpit of tomorrow Augmented head-up display based on MEMS mirrors Internal and external MEMS microphones Example #1 Active noise cancellation Example #2 Emergency vehicle detection 2023-02-02 Copyright © Infineon Technologies AG 2023
Slide 42: Premium lighting technology enhances user experience
Industry-leading, premium lighting technology offers enhanced user experience on the road Key facts Advantages: Enhanced driving experience, higher safety, more energy efficient › Infineon driver IC controls each of the 16K µLEDs individually with outstanding luminous intensity › Lead customer: EU p
Slide 43: Motor control ICs address growing comfort features
Infineon’s suite of motor control ICs lead the way to address fast- growing comfort features Application examples › Comfort features making further inroads into cars; e.g., seats in a mid-range car feature about seven motors today › Up to ~€80 semiconductor BoM per vehicle for comfort features › Inf
Slide 44: Industrial Power Control
Infineon Industrial Power Control
Slide 45: IPC at a glance
IPC at a glance IPC revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) 7.9% 2.000 1,323 1,790 Discretes Modules 1.800 1,418 1,406 1,542 (incl.SiC) (incl. SiC) 1.600 1.400 21% 1.200 18% 18% 1.000 19% 18% 800 600 400 200 0 FY18 FY19 FY20 FY21 FY22 IPC revenu
Slide 46: Decarbonization demand strong, Automation & Drives backlog high
Demand for Decarbonization applications remains strong, Automation & Drives with still high backlog and less new orders Applications Market Outlook for CY23 (% of FY22 segment revenue) › Analysts expect market pullback in 2H/2023 due to decline in demand (slowdown in new order growth Automation and
Slide 47: Clear leader in discrete IGBTs and IGBT modules
Clear leader in discrete IGBTs and IGBT modules Discrete IGBTs IPMs1 IGBT modules2 2021 total market: $2.2bn 2021 total market: $2.0bn 2021 total market: $4.2bn Infineon 28.9% Mitsubishi 29.6% Infineon 33.0% Fuji Electric 15.2% Sanken Electric 15.2% Mitsubishi 12.4% Mitsubishi 9.2% onsemi 11.8% Fuji
Slide 48: Key enabler for Power Systems across power transformation chain
Infineon is the key enabler for Power Systems that are needed at every step of the entire power transformation chain Renewable energy generation #1 semi enabler powering ~50% of currently installed wind/solar capacity Energy infrastructure #1 semi enabler for ~2/3 of grid infrastructure incl. EV cha
Slide 49: IPC markets accelerate growth
IPC markets accelerate growth – Enabling green energy and driving decarbonization 12.000 >10% 10.000 Key facts Renewable Energy, Power Infrastructure, 8.000 >20% EV charging, Public & MORE MORE MORE Commercial Mobility Growth SiC Profitability 6.000 › The acceleration of the energy transition 4.000
Slide 50: Huge potential along entire green energy chain until 2030
Huge potential along entire green energy chain until 2030 Huge potential along entire green energy chain until 2030 according to IEA Net Zero scenario Generation Infrastructure Consumption $600bn annual Photovoltaic +4,200 GW Grid network Heat pump +420m units investments +200k FC EV Wind power +2,4
Slide 51: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application [EUR per Mainly SiC 6000 [EUR per MW] installation] Mainly IGBT 5000 5,000 5,000 4000 3000 3,500 3,500 2000 2,500 2,000 2,000 1000 1,500 60 1,000 0 500 100 40 600 0 Fossil, nuclear, Wind Solar Gr
Slide 52: Leading position in industrial SiC market
Infineon is manifesting its leading position in the industrial SiC market with above market 5y CAGR and strong outlook >300 More than Design opportunity Industrial revenue Industrial SiC 3,600 active customers pipeline of CAGR >40% – products available being served ~€5bn1 cum. Design-Wins almost €2b
Slide 53: Power & Sensor Systems
Power & Sensor Systems 53
Slide 54: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) RF & Sensors 15.1% Power (incl. GaN) 4.500 2,445 2,650 3,268 4,070 4.000 2,318 HiRel 3.500 28% 3.000 25% 2.500 24% 24% 2.000 23% 1.500 1.000 500 0 FY18 FY19 FY20 FY21 FY22 PSS revenue P
Slide 55: Weakness in all verticals except industrial persists in 2023
Weakness in all verticals except industrial persists in 2023 Applications Market Outlook for CY23 (% of FY22 segment revenue)1 Computing › Enterprise server in slowdown, deceleration in hyperscaler capex ~18% › PC market expected to further slow down Communications › While slowing down in China and
Slide 56: PSS growth built on many applications
PSS's growth is built on many applications from different sectors in power and non-power Computing Communications Smartphones Consumer Industrial › data center › base stations › smartphones › eBikes, eScooter › power supplies › enterprise server › backhaul cellular › mobile devices › multicopter › E
Slide 57: PSS – Power
PSS — Power Cinfineon
Slide 58: Clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; market share gains in MOSFETs as well as in power ICs, further growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2021 total market: $11.1bn 2021 total market: $30.9bn Infineon 26.6% Texas Instruments 15.3% onsemi 10.8% Analog Devices 3 11.0% ST
Slide 59: Server market including AI hyperscalers offers growth potential
Server market including AI Hyperscalers offers attractive growth potential Server market units as well as BoM expected to grow [in m units] Exponential increase in Power AI Training & Networking Factor1: power level requires cutting-edge 20 innovation in Device & Packaging +5% technologies to solve
Slide 60: Components enable best power usage effectiveness for data centers
Infineon components enable best power usage effectiveness for data centers Supermicro collaborates with Infineon on green computing Supermicro MicroBlade servers contain … 28 digital multi-phase controllers 112 power stages &28 point-of-load controllers › Infineon’s power stages provide the best pow
Slide 61: PSS is a key enabler for residential solar systems
PSS is a key enabler for residential solar systems Full portfolio breadth for solar Enabling residential solar energy systems › Innovative MOSFET transistors for MV & HV applications in all technologies: OptiMOS™, CoolMOS™, CoolSiC™, CoolGaN™ › Isolated gate driver and GaN driver ICs for high system
Slide 62: Transition to 5G drives demand in power semis
Transition to 5G drives demand in power semis for antennas and power supplies 5G base station › driver #1: massive growth of data and computing power Massive MIMO DC-DC (MOSFET, ICs) › driver #2: higher number of base stations due to dense network › driver #3: ~4x higher power semi Base station powe
Slide 63: PSS – RF and Sensing
S N PSS — RF and Sensing Infineon
Slide 64: Main applications addressed by PSS sensors portfolio
Main applications addressed by PSS sensors portfolio MEMS microphone 3D radar (24/60 GHz) 3D ToF image sensor Environmental High Ultra-low Best audio Best price / precision and power performance performance Small form consumption factor Presence Face ID Low power detection/ (biometrics), Measure CO2
Slide 65: Sensor markets offer attractive growth potential
Sensor markets targeted by PSS offer attractive growth potential MEMS microphone market Radar IC market (24 GHz and 60 GHz only) [EUR m] 2196 [EUR m] 2055 1.000 1755 900 1554 1375 1325 720 520 350 230 FY 2022 2023 2024 2025 2026 2027 FY 2022 2023 2024 2025 2026 2027 3D ToF image sensor market Enviro
Slide 66: Market leader in MEMS microphones increases distance to #2
Infineon as market leader has significantly increased the distance to #2 Infineon’s market share development in MEMS microphones (by units) 44.2% 45.0% 2021 MEMS die market share 35.7% total market: 6.7bn units 34.7% 33.5% 26.5% Infineon 45.0% Knowles 35.6% 8.8% MEMSensing 8.4% 3.5% 5.2% #1 Omron 3.
Slide 67: Connected Secure Systems
Connected Secure Systems Cnfineon_
Slide 68: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY22 revenue split by product group [€ m] CAGR (FY18 – FY22) 28.7% MCUs Security ICs 2.000 1,822 1.800 1,397 1.600 664 1.400 1.200 642 974 21% 1.000 800 16% 13% 600 12% 13% 400 200 0 FY18 FY19 FY20 FY21 FY22 Connectivity CSS revenue CSS Segment R
Slide 69: Industrial & Consumer IoT market outlook
Uncertain macroeconomic conditions and persisting supply constraints in some areas; risks especially for consumer segments Applications Market Outlook for CY23 (% of FY22 segment revenue) Industrial IoT › Although growth in industrial IoT is expected to stretch in CY23, Industrial Automation Equipme
Slide 70: Infineon remains top player in security ICs
Infineon remains top player in security ICs Security ICs (excl. NFC controllers; excl. NFC eSE) Security ICs (excl. NFC controllers; excl. NFC eSE) 2021 total market: $3.2bn 2021 by application others (incl. ticketing, transportation, access Infineon 25.8% control, others); 13% payment; 37% embedded
Slide 71: MCU and software key for success in IoT
MCU and software are key for the success in IoT as they define the functionality and time-to-market of the device Customer expectations Infineon’s MCU offering Hardware › Broad solution-oriented MCU family offering Broad portfolio › Platform strategy for MCU development: Application fit › shared cor
Slide 72: Touch solutions and Cypress revenue synergies
Infineon is enabling the ‘IoT at a fingertip’ with robust and reliable touch solutions and reconfirming Cypress revenue synergies Infineon as the leader1 in Touch-HMI We are fully on track to reach or even overachieve inherited through Cypress acquisition the announced Cypress revenue synergy target
Slide 73: Broad set of key enabling technologies
With a broad set of key enabling technologies, Infineon is well positioned to capture growth opportunities Market: Home Automation Customer ex. for wireless smart Devices1 Leading competencies to provide full system solutions cameras and smart door locks [units m] Application understanding CAGR: +20
Slide 74: Selected financial figures
Selected financial figures 74
Slide 75: Strong presence in all regions; balanced customer portfolio
Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales FY22 revenue by region Revenue by sales channel Distribution Top-10 direct customers1 partners1 Americas EMEA (excl. Germany) 13% 13% Germany Japan 11% 10% Distribution Top-10 direct
Slide 76: Group financial performance
Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenues Segment result Margin Average exchange rate +25% -5% Q1 Q4 Q1 4,143 3,951 FY22 FY22 FY23 3,618 ø USD/EUR 1.14 1.01 1.02 3,298 3,159 Order backlog1 [EUR bn] 42 43 37 38 28.0% 31 25.5% 23.1% 23.3% 22.7% 1,058 1,
Slide 77: Automotive (ATV)
Automotive (ATV) Revenues Segment Result Margin [EUR m] [EUR m] +35% -3% 532 1,934 506 1,872 1,701 1,491 399 1,390 324 261 26.2% 28.4% 23.5% 18.8% 21.7% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 › Secular content growth trends xEV and ADAS intact and irreversibl
Slide 78: Industrial Power Control (IPC)
Industrial Power Control (IPC) Revenues Segment Result Margin [EUR m] [EUR m] +31% -8% 144 136 542 500 430 436 382 93 82 73 28.8% 25.1% 21.6% 18.8% 19.1% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 › Seasonal decline after record FQ4 in most applications, except t
Slide 79: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result Margin [EUR m] [EUR m] +9% 338 -11% 301 285 277 1,169 1,021 1,043 237 955 925 29.8% 28.9% 28.9% 27.1% 25.6% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 › Strong margin level retained for this quarter despite not
Slide 80: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result Margin [EUR m] [EUR m] +24% +8% 531 492 448 456 125 427 108 100 84 86 23.4% 24.1% 23.5% 18.4% 17.5% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 › Record-level quarterly revenue supports 600bps sequential incre
Slide 81: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross margin as reported [EUR m] R&D expenses as % of revenue [EUR m] SG&A expenses as % of revenue Gross profit as reported R&D expenses SG&A expenses 1,839 1,866 1,564 486 484 1,416 447 466 452 1,312 399 414 410 369 330 44.4% 47.2% 42.9% 43.2% 41
Slide 82: Investments, Depreciation & Amortization and Free Cash Flow
Investments, Depreciation & Amortization and Free Cash Flow Investments Depreciation & Amortization Free Cash Flow [EUR m] [EUR m] [EUR m] 866 709 605 542 422 443 429 494 393 405 440 408 378 120 25 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY22 FY22 FY22 FY22 FY23 FY22 FY22 FY22 FY22 FY23 FY22 FY
Slide 83: Working Capital, in particular trade working capital components
Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 1,303 3,081 3,239 1,148 2,834 1,091 2,319 2,540 788 900 121 124 120 140 113 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Trade receivables Trade paya
Slide 84: Return on capital employed
Return on capital employed Historical development 20% 16.8% 16.2% 15% 12.6% 12.5% 12.3% 12.7% 10% 8.4% 5% 3.0% 0% FY 20 FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 2023-02-02 Copyright © Infineon Technologies AG 2023. All rights reserved. 84
Slide 85: Earnings-per-share and total cash return
Earnings-per-share and total cash return Development of earnings-per-share (EPS) from continuing operations [EUR cent] 63 64 49 56 55 EPS basic 41 44 40 35 35 EPS adjusted Q1 FY22 Q2 Q3 Q4 Q1 FY23 Total cash return to shareholders via dividends [EUR m] 351 417 › Proposed dividend for FY22: €0.32 305
Slide 86: Liquidity development
Liquidity development Historical liquidity development [EUR m] 4,284 3,717 3,708 3,569 3,205 -5,467 -1,759 -5,662 -1,945 -6,657 -2,373 -2,485 -6,054 Q1 Q2 Q3 Q4 Q1 -5,881 FY22 FY22 -2,676 FY22 FY212 FY23 Gross Cash Gross Debt Net Cash/Debt 2023-02-02 Copyright © Infineon Technologies AG 2023. All ri
Slide 87: Maturity profile
Maturity profile Maturity profile from 2023 to 2034 [EUR m; US$ m; nominal values] US PP 2016 Notes (Apr 2024, Apr 2026, Apr Corporate bonds under the EMTN program 2028) (Jun 2023, Feb 2025, Jun 2026, Jun 2029, Hybrid bonds1 (Jan 2025, Jan 2028) Jun 2032) US PP 2021 Notes (Jun 2027, Jun 2029, Jun 20
Slide 88: Conservative financial policy and investment-grade rating
Conservative financial policy and strict commitment to investment- grade rating are the basis for through-cycle flexibility Financial Policy Targets Status Quo (LTM 31 December 2022) Gross Cash1 €1bn + at least 10% of revenues → €2.5bn €1bn + 18% of revenues → €3.7bn Gross Debt2 ≤ 2.0x EBITDA 1.1x E
Slide 89: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 90: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently availa
Slide 91: Glossary
Glossary AC alternating current IGBT insulated gate bipolar transistor ACC adaptive cruise control IoT internet of things AD automated driving IPM intelligent power module ADAS advanced driver assistance system LED light-emitting diode ADC analog-to-digital converter MCU microcontroller unit AEB aut
Slide 92: Notes and ESG footnotes
Notes and ESG footnotes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Capital Employed = 'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale –
Slide 93: Financial calendar
Financial calendar Date Event Location 16 February 2023 Annual General Meeting 22 February 2023 Goldman Sachs European Technology Conference London 27 Feb - 1 March 2023 Mobile World Congress Barcelona 3 March 2023 Susquehanna Technology Conference virtual 6-7 March 2023 Morgan Stanley, Technology,
Slide 94: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Visitor address Executive Vice President Finance, Treasury & Investor Relations Am Campeon 1 – 15 +49 89 234-23766 885579 Neubiberg alexander.foltin@infineon.com Germany Isabell Diel Alexander Groschke Senior Manager Investor Relations Direc
Infineon Technologies — Q1 FY2023 Earnings Presentation on 6ix