Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2010 Earnings Presentation

32 slides from Infineon Technologies's earnings presentation, Nov 16, 2010

  1. Slide 1: Fourth Quarter FY 2010 Quarterly Update

    Fourth 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 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 2

  3. Slide 3: In Q4 Revenue and Profitability of IFX Improved

    In Q4 Revenue and Profitability of IFX Improved Revenues Net Income [EUR m] Q3 FY10 Q4 FY10 +6% 942 Revenues 885 942 885 Segment Result 138 171 390 Net Income 126 390 126 Q3 FY10 Q4 FY10 Employees 25,978 26,654 Free Cash Flow 173 236 Gross Cash Position 1,514 1,727 Net Cash 1,108 1,331 Equity Ratio

  4. Slide 4: SR Margin from Cont. Ops Was 18%; Net Income EUR 390m

    SR Margin from Cont. Ops Was 18%; Net Income EUR 390m Q4 FY10 [EUR m] +55% 942 30% 885 609 18% 20% 16% 10% 5% 0% Q4 FY09 Q3 FY10 Q4 FY10 Segment Result 33 138 171 Revenue in € million Segment Result margin Net Income 11 126 390 Note: Revenue and Segment Result Infineon Continued Operations (excl. WL

  5. Slide 5: Revenues Increased in All Divisions

    Revenues Increased in All Divisions Revenue* [EUR m] Share of total Q3 2010 333 ATV +2% 36% Q4 2010 340 Q3 2010 373 IMM +11% 44% Q4 2010 413 x% Q3 2010 110 CCS +5% 12% Q4 2010 115 *: Total Revenue includes Other Operating Segment (Q3 FY10 € 46 m, Q4 FY10 € 48 m), Corporate & Eliminations (Q3 FY10 €

  6. Slide 6: Segment Results and Margins Increased in All Divisions

    Segment Results and Margins Increased in All Divisions Segment Result* [EUR m] SR Margin Q3 2010 52 16% ATV Q4 2010 58 17% Q3 2010 82 22% IMM Q4 2010 98 24% Q3 2010 6 5% CCS Q4 2010 12 10% *: Total Segment Result includes Other Operating Segment (Q3 FY10 € -1 m, Q4 FY10 € 2 m), Corporate & Eliminati

  7. Slide 7: OpEx Development

    OpEx Development S and G&A R&D [EUR m] 114 95 100 103 96 100 77 88 93 89 78 89 83 83 76 72 Selling General & Administration R&D % of Sales 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 7

  8. Slide 8: Higher Investments in Response to Demand and 300mm-Thin-Wafer Pilot Line

    Higher Investments in Response to Demand and 300mm-Thin-Wafer Pilot Line Investments1) D&A [EUR m] ~ 550 453 ~ 400 325 336 xxx 228 85 163 80 115 81 80 47 90 34 1) For definition please see slide 27 in appendix. 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 8

  9. Slide 9: Net Cash Rose to EUR 1.3bn

    Net Cash Rose to EUR 1.3bn Liquidity Development Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 [EUR m] * 243 153 255 151 270 402 534 570 270 1727 1678 1667 280 1514 1507 1331 1108 995 995 874 874 657 657 Gross Cash Debt Equity-linked Net Cash * Consists of Convertible Bond 2014 (nominal value EUR 196m; bo

  10. Slide 10: WLS Transaction Will Enable a Strategic Cash Position

    WLS Transaction Will Enable a Strategic Cash Position [EUR bn] ~0.1 ~1.0 ~1.6 1.7 ~1  Proforma gross  Short-term debt  Target: Gross cash Potential use: cash: EUR 1.727bn scheduled for 30–40% of revenue  Funding organic growth as per Sep 2010 repayment in FY  Solid liquidity to (capacity expans

  11. Slide 11: Another Year of Growth in FY 2011; Continuing Strong Operat. Performance

    Another Year of Growth in FY 2011; Continuing Strong Operat. Performance Outlook Q1 FY11 Outlook FY 2011 (compared to Q4 FY10) (compared to FY 2010) Infineon Revenue flat to Revenue to Revenue down slightly. grow close to 10%. Combined Segment Margin to remain Margin to be mid to Result about flat.

  12. Slide 12: Table of Contents

    Table of Contents  Infineon Results and Outlook  Business Highlights 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 12

  13. Slide 13: Revenue Split by Division

    Revenue Split by Division 12-months FY 2010 revenue split Automotive Industrial & Multimarket ATV € 1,268m IMM € 1,374m CCS € 407m Chip Card & Security 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 13

  14. Slide 14: Infineon Holds #1 Positions in All Target Markets

    Infineon Holds #1 Positions in All Target Markets Auto- Power Chip Card motive #1 #1 #1 Market Market Market share share share 9% 11% 27% Calendar Year 2009 Calendar Year 2009 Calendar Year 2009 Source: Strategy Analytics, Source: IMS Research, Source: Frost & Sullivan, May 2010 August 2010 October

  15. Slide 15: Automotive Segment (ATV)

    Automotive Segment (ATV) Revenue and Segment Result from Q1 FY08 to Q4 FY10 [EUR m]  Sales in Q4 was driven by continued strong demand in all regions and across the entire product range. Segment result margin again slightly up to 17.1%. 16 November 2010 Copyright © Infineon Technologies 2010. All r

  16. Slide 16: Four Infineon Sensors in Each and Every Car Worldwide on Average

    Four Infineon Sensors in Each and Every Car Worldwide on Average Courtesy of Bosch. Courtesy of BMW. Courtesy of BMW. Engine Management Transmission Safety  Hall sensor TLE 4983 for  Differential Hall effect  GMR sensor TLE 5012, camshaft position sensor TLE 4953 for 8- steering angle sensor for

  17. Slide 17: 25m Bicycles Sold in China in 2009; 1 Out of 3 Uses Infineon Semiconductors

    25m Bicycles Sold in China in 2009; 1 Out of 3 Uses Infineon Semiconductors Display Infineon’s solutions and system know-how Communication for e-vehicle applications Lighting Microcontroller Motor Control  High-performance 8- and 16-bit µC MOSFETs Battery Mgmt  OptiMOS and CoolMOS Battery Charger

  18. Slide 18: Industrial & Multimarket Segment (IMM)

    Industrial & Multimarket Segment (IMM) Revenue and Segment Result from Q1 FY08 to Q4 FY10 [EUR m]  Revenue, segment result and segment result margin came in at an all time high in Q4 of EUR 413m, EUR 98m and 23.7%, respectively. 16 November 2010 Copyright © Infineon Technologies 2010. All rights re

  19. Slide 19: IMM Driven by Diverse Range of Power Electronics Growth Markets

    IMM Driven by Diverse Range of Power Electronics Growth Markets Variable speed drive  Hundreds of millions of motors to be replaced  Low penetration of VSD  Replacement cycle to continue for decades Infrastructure  Trains  Power transmission and distribution  Smart grid Renewable energies  On

  20. Slide 20: One Out of Four Industrial Drives is Equipped With Infineon's IGBT Technology

    One Out of Four Industrial Drives is Equipped With Infineon„s IGBT Technology Drives Pumps Fans Variable speed drives (VSD) with growth potential for decades to come  Hundreds of millions of motors in use.  Performance range from few watts up to megawatt.  Huge potential, since only few motors eq

  21. Slide 21: First Design-Wins in Chinese Wind Industry; EUR 25,000 Semi Content Per Wind Mill

    First Design-Wins in Chinese Wind Industry; EUR 25,000 Semi Content Per Wind Mill Yunnan Luliang wind farm Inverter EconoDUAL™3 Project: Yunnan Luliang wind farm “HopeWind”. Date: phase I from September 8, 2009 to June 30, 2010. 33 units generated 50 million kWh wind power. Location: Yunnan Province

  22. Slide 22: China Railways Has Seen Strong Stimulus Support; Network Build-out Continues

    China Railways Has Seen Strong Stimulus Support; Network Build-out Continues The renaissance of trains: High-speed and urban electric trains China’s Ministry of Railways is planning to expand the operating length of the Rail network from 86,000 km in 2009 to 120,000 km by 2020. The corresponding fix

  23. Slide 23: Siemens Velaro Selected by EuroStar; EUR 50K to 100K Semi Content Per Train

    Siemens Velaro Selected by EuroStar; EUR 50K to 100K Semi Content Per Train  10 trains ordered for EUR 600m in total.  130 IGBT modules per train resulting in EUR 50,000 to 100,000 power semiconducor content per train.  Power semiconductors represent only 0.15 to 0.2% of system cost but contribut

  24. Slide 24: Chip Card & Security Segment (CCS)

    Chip Card & Security Segment (CCS) Revenue and Segment Result from Q1 FY08 to Q4 FY10 [EUR m]  Sales in Q4 was driven by higher demand in certain government ID projects. Segment result doubled to EUR 12m compared with Q3. 16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved.

  25. Slide 25: Optimization of Product Mix; Successful Ramp of 90nm Products

    Optimization of Product Mix; Successful Ramp of 90nm Products Product mix optimization Fast shrink  Government identification  2010: successful ramp of 90nm in Dresden  Contactless payment and transport  2012: 65nm on 300mm  MobCom NFC Revenue split [%] Revenue split [%] FY11 FY12 FY13 FY14 FY1

  26. Slide 26: Infineon

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

  27. Slide 27: Notes

    Notes Investments = „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 di

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

    Infineon Consolidated Statements of Operations (IFRS) (unaudited) 3 months ended 12 months ended (1) (1) (1) in Euro million Sep 30, 10 Jun 30, 10 Sep 30, 09 Sep 30, 10 Sep 30, 09 Revenue 942 885 609 3,295 2,184 Cost of goods sold (563) (553) (427) (2,058) (1,687) Gross profit 379 332 182 1,237 497

  29. Slide 29: Infineon Consolidated Statements of Financial Position (IFRS) (unaudited)

    Infineon Consolidated Statements of Financial Position (IFRS) (unaudited) (1) (1) in Euro million Sep 30, 10 Jun 30, 10 Sep 30, 09 Assets Current assets: Cash and cash equivalents 1,667 1,452 1,414 Available-for-sale financial assets 60 62 93 Trade and other receivables 687 685 514 therein: Trade ac

  30. Slide 30: Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited)

    Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited) 3 months ended Sep 30, 10 Jun 30, 10 Sep 30, 09 in Euro million Net income (loss) 390 126 11 Less: net loss (income) from discontinued operations (197) (23) (1) Adjustments to reconcile net income (loss) to cash provided by (used in)

  31. Slide 31: Financial Calendar and IR Contacts

    Financial Calendar and IR Contacts Financial Calendar IR Contacts  Feb 17, 2011 Ulrich Pelzer Annual Shareholder Meeting Corporate Vice President Corporate Development & Investor  Feb 01, 2011* Relations Q1 FY11 Results  +49 89 234-26153  May 03, 2011*  ulrich.pelzer@infineon.com Q2 FY11 Result

  32. Slide 32: Disclaimer

    Disclaimer This presentation was prepared as of November 16, 2010 and is current only as of that date. This presentation includes forward-looking statements and assumptions about the future of Infineon‟s business and the industry in which we operate. These include statements and assumptions relating

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