Infineon Technologies AG · XETR:IFX
Infineon Technologies — Deutsche Bank German Corporate Conference 2003
23 slides from Infineon Technologies's conference presentation, Feb 25, 2003
Slide 1: Deutsche Bank German Corporate Conference
December 12th, 2001 Deutsche Bank German Corporate Conference Frankfurt, February 25, 2003 Matthias Poth Senior Vice President and Head of Corporate Center Infineon Technologies German Corporate Conference 25 February 2003 Page 1
Slide 2: Market Development and Forecasts
Market Development and Forecasts Source: WSTS (in US $ bn) Forecasts 2003 2004 IC IC Insights Insights ++ 15.0% 15.0% ++ 26.0% 26.0% Dataquest Dataquest ++ 12.0% 12.0% ++ 26.2% 26.2% SIA SIA ++ 19.8% 19.8% ++ 21.7% 21.7% WSTS WSTS ++ 14.1% 14.1% ++ 19.2% 19.2% In-Stat In-Stat ++ 18.0% 18.0% ++ 30.5%
Slide 3: First Quarter Highlights Fiscal Year 2003
First Quarter Highlights Fiscal Year 2003 Revenues increase of 10 percent sequentially to Euro 1.52 billion - mainly driven by increased demand for memory products and mobile communications Another record sales quarter of the Automotive & Industrial segment Strong improvement of earnings performance
Slide 4: Improved Top Ten Ranking 2002 - From 8th to 6th Place
Improved Top Ten Ranking 2002 - From 8th to 6th Place Revenues 2001 in bn US $ 2002 0 2 4 6 8 10 12 ... 24 1. Intel 2. Samsung 3. ST Micro 4. TI Infineon 5. Toshiba 2002: No. 6 6. Infineon 2001: No. 8 7. NEC 1998: No. 10 8. Motorola 1995: No. 15 9. Philips 10. Hitachi German Corporate Conference 25
Slide 5: Objective 3 - Achieve a Top 3 Position in all Segments
Objective 3 - Achieve a Top 3 Position in all Segments No. 1 for security and chip card ICs for 4 years - up from 34% in 2000 to 38% in 2001 (Source: (Source: Dataquest) Dataquest) No. 2 for automotive electronics, No. 1 in Europe including car radios - up from 7% in 2000 to 8% in 2001 (Source: (Sou
Slide 6: Results Infineon, Comparison Q4 and Q1 FY 2002 vs. Q1 FY 2003
Results Infineon, Comparison Q4 and Q1 FY 2002 vs. Q1 FY 2003 (according to US GAAP in EUR Mio.) Q4 01/02 Q4 01/02 Q1 02/03 Q1 02/03 Change Veränderung Q1 01/02 Q1 01/02 Q1 02/03 Q1 02/03 Change Veränderung Net Sales 1,384 1,523 + 139 1,034 1,523 + 489 Sales growth (%) + 10 + 47 Gross profit 143 402
Slide 7: Improved Revenue Performance
Improved Revenue Performance Revenues Revenues (according to US GAAP Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 in EUR Mio.) Wireline 83 96 102 105 106 Communications Secure Mobile 286 295 327 371 412 Solutions Automotive & 273 299 308 321 334 Industrial Memory Products 287 588 549 437 542 German Corpo
Slide 8: Improved EBIT Performance
Improved EBIT Performance EBIT EBIT (according to US GAAP Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 in EUR Mio.) Wireline (85) (66) (49) (36)* (37)* Communications Secure Mobile (60) (37) 3 17* 11* Solutions Automotive & 20 23 30 38 44 Industrial Memory Products (375) (33) (21) (204) 29 German Corpora
Slide 9: IMPACT Focus: Fastest Possible Cash Savings; IMPACT² Focus: Structural Improvement
IMPACT Focus: Fastest Possible Cash Savings IMPACT² Focus: Structural Improvement & Cost Reduction IMPACT IMPACT2 Rapid reaction to the Improved competitiveness towards strongest market downturn best practice and benchmarks About 2.8bn Euro cash- More efficient structures through: effective cost red
Slide 10: Sales by Segments, Comparison Q4 FY 2002 vs. Q1 FY 2003
Sales by Segments, Comparison Q4 FY 2002 vs. Q1 FY 2003 Sales Umsatz by by Segments Salesnach Segmenten Segments Q4 FY 2002 Q1 FY 2003 Other (b) € 151 Other (b) € 129 Communications (a) Communications (a) € 475 € 518 11% 8% Memory 34% Memory 34% Products Products € 437 32% 36% € 542 23% 22% Automoti
Slide 11: Sales by Region, Comparison Q4 FY 2002 vs. Q1 FY 2003
Sales by Region, Comparison Q4 FY 2002 vs. Q1 FY 2003 Sales Sales by by Regions Regions Q4 FY 2002 Q1 FY 2003 Others € 24 Others € 6 APAC & 1% Germany 0,4% APAC & Germany Japan € 371 Japan € 398 € 420 30% 27% 32% 26% € 484 22% 20% 20% 22% NAFTA Europe NAFTA Europe € 308 (excluding Germany) € 331 (ex
Slide 12: Infineon - Corporate Strategy Agenda 5-to-1
Infineon - Corporate Strategy Agenda 5-to-1 Strategic Objectives Within the framework of the Agenda 5-to-1, Infineon intends to: 5 focus within the NEXT 5 YEARS 4 on becoming a TOP 4 global semiconductor player 3 by achieving at least a TOP 3 position in each segment served 2 with a TOP 2 financial
Slide 13: Objective 3 - Focus on Growth Markets
Objective 3 - Focus on Growth Markets Focus on growth markets China, Japan, and US Maintain a strong foothold in Europe and Asia/Pacific China - Achieve a Top 4 position with over 10% market share Focus on communications and memory products Building strong local presence by: - major investments in w
Slide 14: Objective 3 - Focus on Growth Markets
Objective 3 - Focus on Growth Markets USA - Expansion of logic business Very attractive market due to its size and strong expected growth over the next 4 years Improves market position by: - expanding logic business, especially automotive and communications - strengthening service and sales organiza
Slide 15: Gaining Resources for Expansion of the Solution Business
Gaining Resources for Expansion of the Solution Business CAPEX focused on continued upgrading of internal manufacturing and R&D Use financial flexibility to further build-up Infineon's solution business; e.g Expanding software competence, e.g. Bangalore design center Expanding service business, e.g.
Slide 16: Strengthened Cost Leadership + Flexibility @ Lowest Costs
Strengthened Cost Leadership + Flexibility @ Lowest Costs Chip size shrinks every 12-15 months 1998 2001 2005 30% cut in production costs More than 80% capacity in 0.14µm 0.24 µm 0.14 µm 0.07 µm Introduction of 0.11µm in Q1 CY 2003 Successful production on 300 mm wafers since 2001 30% cost advantage
Slide 17: Worldwide DRAM Revenue Ranking CY 2001 vs. 2002
Worldwide DRAM Revenue Ranking CY 2001 vs. 2002 1. Samsung 32% 31% 2. Micron 17% 22% 3. 12% 11% 2002 4. Hynix 11% 2001 19% 5. Elpida 6% 5% 6. Nanya 6% 5% German Corporate Source: ICInsights, January 2003 Conference 25 February 2003 Page 17
Slide 18: Termination of Cooperation with Mosel Vitelic and ProMOS
Termination of Cooperation with Mosel Vitelic and ProMOS Infineon has decided to withdraw from the ProMOS JV in Hsinchu, Taiwan, due to repeated serious material breaches of contract by Mosel Vitelic (MVI) As of January 1, 2003, ProMOS delivers all manufactured DRAMs with Infineon technology to MVI
Slide 19: Expanding Global Partnerships-Networks
Expanding Global Partnerships-Networks* Applications Applications Technology Technology & & Chip Chip Design Design Production Production && Design Design & & Systems Systems Development Development (Cores (Cores & & Modules) Modules) Flexibility Flexibility Know How Know How RF solutions Design Mem
Slide 20: Infineon - Partner of the Worldwide Electronics Industry
Infineon - Partner of the Worldwide Electronics Industry Main Customers Alcatel Huawei Nokia Siemens Wireline Cisco Lucent Nortel Communications Ericsson Marconi NEC DBTel Matsushita Sagem Siemens Secure Mobile Ericsson Nokia Samsung Sony Solutions Gemplus Oberthur Schlumberger Vtech Giesecke & Card
Slide 21: Outlook for the First Half of Calendar Year 2003
Outlook for the First Half of Calendar Year 2003 Semiconductor market in general: first indications for a positive market trend; Infineon is carefully optimistic and expects steady demand in most segments. The market remains difficult and the pricing pressure continues in Wireline Communications and
Slide 22: Never stop thinking
German Corporate Conference 25 February 2003 "Never stop thinking" Page 22
Slide 23: Disclaimer
Disclaimer Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that
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