Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q1 FY2009 Earnings Presentation
26 slides from Infineon Technologies's earnings presentation, Feb 6, 2009
Slide 1: First Quarter FY2009 Quarterly Update
First Quarter FY2009 Quarterly Update Infineon Technologies Investor Relations
Slide 2: Disclaimer
Disclaimer This presentation was prepared as of February 6, 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,
Slide 3: Infineon Results and Outlook; Qimonda Update; Business Highlights
Æ Infineon Results and Outlook Æ Qimonda Update Æ Business Highlights Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 3
Slide 4: Q1 FY09 Revenue EUR 830m, Segment Result EUR -102m
Q1 FY09 Revenue EUR 830m, Segment Result EUR -102m Q4 FY08 Q1 FY09 [EUR m] 1,153 830 59 -102 Revenue Segment Result Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 4
Slide 5: Q1 FY09 Revenue and Segment Result per Segment
Q1 FY09 Revenue and Segment Result per Segment Automotive Industrial & Chip Card & Wireless Wireline Multimarket Security Solutions Communications [EUR m] 250 234 206 197 200 150 91 88 100 50 2 2 0 -1 -50 -44 -56 -100 Revenue Segment Result Feb 6, 2009 Copyright © Infineon Technologies 2009. All rig
Slide 6: Focus Areas and Target Markets
Focus Areas and Target Markets FY08 Revenue split Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 6
Slide 7: Organic Growth of Infineon on Constant Currency Basis
Organic Growth of Infineon on Constant Currency Basis Growth Rate excluding acquisitions, divestitures calculated on constant Q1 FY09 FX rates y-o-y q-o-q Infineon Technologies -26% -32% Automotive -36% -36% Industrial & Multimarket -16% -30% Chip Card & Security -27% -27% Wireless Solutions -27
Slide 8: Managing Cash: Working Capital, D&A and CapEx (IFRS)
Managing Cash: Working Capital, D&A and CapEx (IFRS) Working Capital [EUR m] D&A and CapEx* [EUR m] 350 600 571 299 300 500 ~450 250 220 400 369 200 300 150 ~200 200 100 50 100 Q1: 145 0 Q1:40 0 Q4 FY08 Q1 FY09 D&A CapEx* D&A CapEx* =(Current Assets - Cash - Available for sale financial assets) - FY
Slide 9: Gross Cash, Gross Debt and Net Debt
Gross Cash, Gross Debt and Net Debt [EUR m] Debt 1,261 Repurchase: 1,141 In the December quarter 446 2008, Infineon 443 repurchased nominal amounts of EUR 95m of its exchangeable and EUR 22m of its convertible 883 815 779 bonds. 698 378 362 Net debt, using nominal Q4 FY08 debt value, decreased Q1 FY
Slide 10: Second Quarter FY 2009 Outlook (IFRS)
Second Quarter FY 2009 Outlook (IFRS) IFX expects revenues in the second quarter to decrease by approximately 10 percent compared to the first quarter. After the significant decrease in demand in the Automotive and Wireless Solutions segments in the first quarter, the company expects these segments
Slide 11: IFX10+ Savings
IFX10+ Savings Implemented savings in Q1 FY09 Cost savings of EUR 45m in the OpEx vs. Q4FY08 Approx. 85% of the announced headcount reduction achieved EUR 25m cash outflow for IFX10+ in Q1 FY09 Exit of employers’ union Additional Savings Measures: Reduced work hours in production sites Reg
Slide 12: Infineon Results and Outlook; Qimonda Update; Business Highlights
Æ Infineon Results and Outlook Æ Qimonda Update Æ Business Highlights Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 12
Slide 13: Qimonda
Qimonda Infineon may be exposed to a number of significant liabilities relating to the Qimonda business, including pending antitrust and securities law claims, potential claims for repayment of governmental subsidies received, and employee-related contingencies. IFX increased provisions and allo
Slide 14: Infineon Results and Outlook; Qimonda Update; Business Highlights
Æ Infineon Results and Outlook Æ Qimonda Update Æ Business Highlights Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 14
Slide 15: Automotive Segment: Outstanding Quality and Satisfied Customers
Automotive Segment Outstanding Quality and Satisfied Customers NovalithIC™ Seat Control Application High-current Door Module Application motor drives for automotive Engine Application applications Seatbelt Application Infineon gained another significant design win with a major European Tier 1 for th
Slide 16: Industrial & Multimarket Segment: Reducing Losses in the Whole Energy Chain
Industrial & Multimarket Segment Reducing Losses in the Whole Energy Chain LTT: Light-triggered IGBT Modules Thyristor (up to 6500V) Industrial Sensors EiceDRIVER™ Microcontroller (8/16/32bit) Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 16
Slide 17: Chip Card & Security Segment: Supplier to Major National Projects
Chip Card & Security Segment Supplier to Major National Projects (Extract) ePassport Transport and Ticketing Gov‘t ID Healthcare Infineon has implemented projects in more than 60 countries. Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 17
Slide 18: Wireless Solutions Segment: Next Generation Ultra-Low-Cost Single Chip X-GOLD110
Wireless Solutions Segment Next Generation Ultra-Low-Cost Single Chip X-GOLD™110 third Generation Single Chip Ultra-Low-Cost segment (GSM) Baseband + RF Trans. + Power Mgmt 65nm technology MP3 and FM radio Samples available Q2 CY09 Feb 6, 2009 Copyright © Infineon Technologies 2009. All
Slide 19: Wireless Solutions Segment: Leading RF Technology
Wireless Solutions Segment Leading RF Technology LTE Mobile Data 3G Low Cost Worlds most advanced LTE multimode trans. 3G / 2G single chip transceiver LTE / 3G / 2G single chip RF CMOS trans. low cost 3G market (China and India) up to 150 Mbps downlink DigRF v3.09 interface DigRF v4 in
Slide 20: Wireline Communications Segment: Leading Single-Chip ADSL Gateway Solution
Wireline Communications Segment Leading Single-Chip ADSL Gateway Solution XWAY™ ARX168: 3 ADSL2+ downstream up to 25Mbit/s upstream up to 1Mbit/s 3 Gigabit Ethernet LAN 3 2x USB2.0 3 Concurrent WLAN 11b/g/n Highlights: True single-chip ADSL2+ solution with smallest footprint in the market (17 x 17
Slide 21: Operations: Fast Reaction to Drastic Volume Reduction
Operations Fast Reaction to Drastic Volume Reduction The current focus is on idle cost management to conserve cash. Volume decrease is even higher than revenue decrease due to stock netting. Temporary fab shut down (Christmas, Chinese new year etc.) Insourcing of volume from Silicon foundry an
Slide 22: ae > FS
ae > 41 FS ci | We parune! We ¢) aate vaiue. Cinfineon Never stop thinking
Slide 23: Infineon Condensed Consolidated Statements of Operations (IFRS)
Infineon Condensed Consolidated Statements of Operations (IFRS) 3 months ended in Euro million Dec 31, 07 Sep 30, 08 Dec 31, 08 Revenue 1,090 1,153 830 Cost of goods sold (705) (780) (678) Gross profit 385 373 152 Research and development expenses (181) (174) (149) Selling, general and administrativ
Slide 24: Infineon Consolidated Balance Sheet (IFRS)
Infineon consolidated Balance Sheet (IFRS) in Euro million Sep 30, 08 Dec 31, 08 Assets Current assets: Cash and cash equivalents 749 647 Available-for-sale financial assets 134 132 Trade and other receivables 799 521 Inventories 665 661 Income tax receivable 29 19 Other current financial assets 19
Slide 25: Infineon Condensed Consolidated Statements of Cash Flows (IFRS)
Infineon Condensed Consolidated Statements of Cash Flows (IFRS) 3 months ended December 31, December 31, 2007 2008 (€ millions) (€ millions) Net loss (529) (404) Less: net loss from discontinued operations 577 288 Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Slide 26: Financial Calendar
Financial Calendar Feb 12, 2009 Annual General Meeting 2009, Munich Feb 17, 2009 Presentation at Mobile World Congress, Barcelona Apr 30, 2009* Q2 FY09 results Jul 29, 2009* Q3 FY09 results Nov 19, 2009* Q4 FY09 and full year results * = Preliminary Date Copyright © Infineon Technologies 2
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