Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q2 FY2014 Earnings Presentation

30 slides from Infineon Technologies's earnings presentation, Apr 29, 2014

  1. Slide 1: Second Quarter FY 2014 Quarterly Update

    Second Quarter FY 2014 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook Disclaimer: This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q2 FY 2014 revenue: EUR 1,051m ATV IPC € 484m € 185m Courtesy: BMW Group CCS PMM € 121m € 252m OOS+C&E* € 9m * Other Operating Segments; Corporate and Eliminations. 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 3

  4. Slide 4: Tight Customer Relationships are Based on System Know-how and App Understanding

    Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS EMS partners Distribution partners 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4

  5. Slide 5: Infineon Holds Top Positions in All Major Product Categories

    Infineon Holds Top Positions in All Major Product Categories Automotive Power Smart card ICs semiconductors semiconductors total market in 2012: total market in 2013: total market in 2012: $2.24bn $25.1bn $15.0bn Renesas 13.3% Infineon 11.8% Infineon 24.1% Infineon 9.6% Toshiba 7.0% NXP 23.8% STMicr

  6. Slide 6: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 6

  7. Slide 7: Growth in Car Production and Content-per-Car Continues Unabated

    Growth in Car Production and Content-per- Car Continues Unabated Global car production (cars ≤ 6t) Semiconductor value per car [units m] [USD] CAGR(13-17) = 3.6% World 348 CAGR 326 +1.6% +2.5% 2017 2013 97.6 94.0 90.4 7.2 84.7 86.8 6.7 5.8 6.3 7.7 217 CAGR 6.0 7.8 Brazil 8.6 8.2 198 +2.3% 9.0 14.2 1

  8. Slide 8: In 2013, Infineon Gained Market Share in All Addressed Product Categories

    In 2013, Infineon Gained Market Share in All Addressed Product Categories 2013 automotive semiconductor  “Power” and “Sensors” were the fastest market by product category ($25.1bn) growing product categories with 8% and 7% growth y-y, respectively. Processor Power 25%  Infineon remained market lea

  9. Slide 9: Drives, Home Appliances and Others Show Strongest Growth Rates

    Drives, Home Applicances and Others Show Strongest Growth Rates Home Drives Renewables Traction Others Appliances ~10% p.a. > 5% p.a. ~5% p.a. > 10% p.a. > 10% p.a. IPC: ~10% p.a. 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 9

  10. Slide 10: Share Gains in Chips for Silicon Microphones; 785m Units Shipped in 2013

    Share Gains in Chips for Silicon Micro- phones; 785m Units Shipped in 2013 Ranking 2013 Change y-y Silicon microphone Knowles 59.1% -3.0%-pt Infineon 29.8% 3.3%-pt Omron 3.8% 0.7%-pt ADI 2.6% -2.6%-pt Wolfson 1.2% 0.2%-pt Market development; Infineon’s market share Target applications [units m] 3000

  11. Slide 11: Acoustic Performance Becomes Differentiator and Enabler for New Capabilities

    Acoustic Performance Becomes Differen- tiator and Enabler for New Capabilities Trends for higher number of microphones per device 1x 2x 3x 4x  Silicon microphones benefit from their EMI (electro-magnetic  stereo  noise cancellation interference) immunity.  sound quality  beamforming (microphone

  12. Slide 12: Strong Growth in Payment Business and also in Multiple Implementations of NFC

    Strong Growth in Payment Business and also in Multiple Implementations of NFC Infineon’s main NFC offerings on the rise Strong momentum for Infineon’s payment business embedded SE in SIM card  Successful introduction and ramp of SLE 77-based products in 90nm technology.  Payment business grew by >

  13. Slide 13: Growth in CCS Driven by All Application Segments

    Growth in CCS Driven by All Application Segments High-end Mobile Government Embedded Payment Communication Identification Security Expected growth [pieces] ~30% ~15% ~15% ~20% CCS: ~6-9% p.a. Sources: IHS, ABI Research, Infineon. 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reser

  14. Slide 14: Expected Growth Broadly In Line With Historical Averages

    Expected Growth Broadly In Line With Historical Averages ATV IPC PMM CCS Courtesy: BMW Group Courtesy: Bosch Rexroth ~7% p.a. ~10% p.a. >10% p.a. ~6-9% p.a. Infineon: ~8% p.a. Sources: IHS, Strategy Analytics, ABI Research, Infineon. 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights r

  15. Slide 15: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-04-29 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 15

  16. Slide 16: Growth Expected to Continue in Second Half FY 2014

    Growth Expected to Continue in Second Half FY 2014 Revenue and Segment Result [EUR m] +14% FY 2013 revenue split by product category 1.053 1.051 1.022 984 918 7% 11% 14% 12% 14% Power embed. Control RF others 68 117 148 116 146 Q2 FY13 Q3 Q4 Q1 FY14 Q2 Revenue Segment Result Segment Result Margin 20

  17. Slide 17: Good Year-on-Year Growth Achieved in All Segments

    Good Year-on-Year Growth Achieved in All Segments ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +14% 484 459 455 452 424 +11% +28% 266 271 252 227 238 197 +12% 173 179 185 9% 11% 13% 12% 14% 144 12% 17% 18% 12% 15% 129 121 108 119 108 9% -2% 8% 17% 15% 18% 8% 6% 7% 7% 37 52 57 55 66 -3 13 33 27 33

  18. Slide 18: Guidance for Q3 FY14 and FY 2014

    Guidance for Q3 FY14 and FY 2014 Outlook Q3 FY14 Outlook FY 2014 (compared to Q2 FY14) (compared to FY 2013) Increase between At least 11%. Revenue 4% and 8%. (previously: “Between 7% and 11%.”) Segment Between At least 14%. Result 14% and 16%. (previously: “Between 11% and 14%.”) Margin Investments

  19. Slide 19: Cinfineon

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

  20. Slide 20: Significant Year-on-Year Improvement in Financial Performance

    Significant Year-on-Year Improvement in Financial Performance [EUR m] Q2 FY13 Q1 FY14 Q2 FY14 Revenue 918 984 1,051 Segment Result 68 116 146 SR Margin 7.4% 11.8% 13.9% [EUR m] Net Income* 33 87 124 1051 984 Investment 65 129 154 FCF from cont. 73 30 51 116 146 operations Gross Cash 2,016 2,279 2,19

  21. Slide 21: Opex-to-Sales-Ratio Well Within Target Range

    Opex-to-Sales-Ratio Well Within Target Range S, G&A1) R&D2) [EUR m] 139 140 136 140 133 15% 121 122 120 115 115 114 102 14% 100 80 13% 60 12% 40 11% 20 0 10% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY13 FY14 FY13 FY14 General & Administration Selling R&D % of sales 1) Target range for SG&A: „Low teens percent

  22. Slide 22: DOI, DSO and DPO in Line With Our Targets

    DOI, DSO and DPO in Line With Our Targets Working capital* Inventories [EUR m] [EUR m] 654 674 [days] Q2 FY13 Q3 Q4 Q1 FY14 Q2 573 589 609 100 600 0 80 -17 400 60 -25 40 -100 -75 200 -92 20 -123 0 0 Q2 FY13 Q3 Q4 Q1 FY14 Q2 -200 Inventories DOI* Trade receivables Trade payables [EUR m] [days] [EUR m

  23. Slide 23: Investments Peaked in FY 2012, D&A Still Increasing

    Investments Peaked in FY 2012, D&A Still Increasing Investments* D&A [EUR m] 1000 30% 887 890 800 ~650 20% 600 15.1% 15.2% 466 ~500 453 428 378 11.9% 364 400 11.7% 325 336 10% 200 154 115 126 129 120 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 Q1 Q2 Fiscal Year Guidance 5Y-avg %

  24. Slide 24: Lower Gross Cash and Net Cash Due to Dividend Payment

    Lower Gross Cash and Net Cash Due to Dividend Payment Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 108 38 105 0* 104 195 193 188 200 207 2137 2016 1705 1832 2286 1983 2279 2048 2198 2010 Q2 Q3 Q4 Q1 Q2 FY13 FY14 * The remaining outstanding convertible bonds were converted by

  25. Slide 25: Total Gross Capital Returns of EUR 851m Between FY 2011 and FY 2014

    Total Gross Capital Returns of EUR 851m Between FY 2011 and FY 2014 Total gross capital returns history [EUR m]  In November 2013, a new 687 EUR 300m capital return program with a maturity 350 until September 2015 was 308 started. 300  Per 31 March 2014, put 250 109 options for buyback of 212 10.5

  26. Slide 26: Target: 'RoCE Above WACC' Over the Cycle

    Target: 'RoCE Above WACC' Over the Cycle RoCE* history WACC: low teens % 30% FY12: 22% 20% 27% 27% 25% 20% 27% FY13: 14% 21% 10% 16% 17% 5% 7% 0% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Capital Employed* history 2,500 [EUR m] 2,035 2,239 2,274 2,216 2,159 2,194 2,232 1,760 1,889 2,000 1,629 1,5

  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 Capital Employed = 'Total assets' Please note: All positions in ' ' refer to the – 'Cash and cash equivalents' respective accounting position and –

  28. Slide 28: Infineon is a Long-standing Member of Europe's Leading Sustainability Indices

    Infineon is a Long-standing Member of Europe's Leading Sustainability Indices Infineon’s most recent achievements  October 2013: oekom research has classified Infineon as „Prime“, which serves as an indicator of the  January 2014: Infineon is quality of Infineon’s listed in the Sustainability perf

  29. Slide 29: Financial Calendar

    Financial Calendar Date Location Event 05 Jun 2014 Zurich DZ Bank Sustainable Technologies Conference 11 Jun 2014 Berlin Dt. Bank German, Swiss & Austrian Conference 17 – 18 Jun 2014 London JPMorgan Technology CEO Conference 30 Jul 2014* Q3 FY13 Results 09 Sep 2014 Frankfurt Commerzbank Sector Week

  30. Slide 30: Institutional Investor Relations Contact

    Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President  +49 89 234-26153 Finance, Treasury &  ulrich.pelzer@infineon.com Investor Relations Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 23

Infineon Technologies — Q2 FY2014 Earnings Presentation on 6ix