Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q1 FY2019 Earnings Presentation

92 slides from Infineon Technologies's earnings presentation, Feb 5, 2019

Slide 1: First Quarter FY 2019 Quarterly Update
First Quarter FY 2019 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Agenda
Agenda 1 Infineon at a glance 2 Quarterly highlights 3 Automotive 4 Industrial Power Control 5 Power Management & Multimarket 6 Digital Security Solutions 7 Selected financial figures 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 2
Slide 3: Infineon at a glance: strong financials, leading market positions
Infineon at a glance: strong financials, leading market positions FY18 revenues by segment FY18 revenues by product category [EUR m] Digital Security 3,284 Solutions (DSS) 9% 2,318 Power Manage- Automotive 1,323 ment & Multi- 31% 43% (ATV) market (PMM) 664 ATV IPC PMM DSS 17% Revenue in FY18: Indust
Slide 4: Infineon's organic revenue development clearly outperformed the total semi market
Infineon's organic revenue development clearly outperformed the total semi market [EUR m] organic CAGR(99-18): ~+9% CAGR(99-18): +6.1% 5,100 (excl. IRF) 6,059 (incl. IRF) 126,895 296,383 295,996 353,884 392,020 1,200 3,780 3,774 1,681 2,045 1,821 1,995 2,289 2,366 2,701 2,906 2,916 2,128 3,103 3,815
Slide 5: Our strategy is targeted at value creation through sustainable organic growth
Our strategy is targeted at value creation through sustainable organic growth Focus Technology leadership System understanding › Focus on fastest growing › Leverage core competencies › Create value for customers segments of semi market in different end markets to through system under- › Tackle globa
Slide 6: Long platform life-times in majority of our businesses provide stickiness and visibility
Long platform life-times in majority of our businesses provide stickiness and visibility ATV – average platform life-time: ~6 years IPC – average platform life-time: ~5 years revenue share revenue share 65% 55% 35% 10% 15% 0% 5% 5% 5% 5% <1 1-3 3-5 5-7 >7 <1 1-3 3-5 5-7 >7 platform life-time in year
Slide 7: Well diversified exposure to end-markets and applications provide resilient growth model
Well diversified exposure to end-markets and applications provide resilient growth model FY18 revenue of €7,599m by target application embedded security smart card solutions solutions; 3% powertrain excl. xEV (e.g. government ID, payment); 6% 12% other PMM 2% xEV 5% industrial DSS 10% 9% safety excl
Slide 8: Tight customer relationships, based on system know-how and application understanding
Tight customer relationships, based on system know- how and application understanding ATV IPC PMM DSS EMS partners Distribution partners 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 8
Slide 9: Infineon holds a leading position in its target markets
Infineon holds a leading position in its target markets Automotive Power discretes semiconductors and modules Security ICs total market in 2017: $34.5bn total market in 2017: $18.5bn total market in 2017: $3.3bn NXP 12.5% Infineon 18.6% Infineon 24.2% Infineon 10.8% ON Semi 9.0% Renesas 10.0% STMicr
Slide 10: Q1 FY19 Group and Division Performance
Q1 FY19 Group and Division Performance Revenue: Segment Result: Segment Result Margin: IFX €1,970m (+11% y-y) €359m (+27% y-y) 18.2% ATV IPC PMM DSS [EUR m] [EUR m] [EUR m] [EUR m] +10% +13% 836 867 846 770 811 651 617 +19% 545 543 580 -8% 349 361 352 296 317 19.9 23.6 27.8 25.1 162 164 175 163 149
Slide 11: Outlook for Q2 FY19 and FY19
Outlook for Q2 FY19 and FY19 Outlook Q2 FY19* Outlook FY19* (compared to Q1 FY19) (compared to FY18) Increase of ~9% Revenue Stable +/- 2%-points (prev.: Increase of 11% +/- 2%-points) Segment At the mid-point of the revenue guidance: ~17.5% Result (prev.: ~18%) Margin ~16% Investments in FY19 ~€1.5
Slide 12: Outlook for FY19 fully in line with long-term target operating model (TOM)
Outlook for FY19 fully in line with long-term target operating model (TOM) Outlook FY19 Long-term (TOM) Revenue growth ~9% ~9% Segment result margin ~17.5% ~17%+ Investments Investment-to-sales ~15%* ~€1.5bn › Includes ~€250m for cleanroom, office buildings and structural changes * Thereof ~2%-point
Slide 13: New Villach 300 mm module will add significant capacity in power semiconductors
New Villach 300 mm module will add significant capacity in power semiconductors Key criteria for site selection New 300 mm module › Economies of scale › Time to revenue › Geographic diversification Building space ~60,000 m² Total frontend investment > €1.6bn over 6 years Revenue potential > €1.8bn p
Slide 14: Gross margin potential driven by 300 mm manufacturing for power and sensors
Gross margin potential driven by 300 mm manufacturing for power and sensors FY25's frontend set-up FY18's frontend set-up 300 mm (already ramped in FY18) high-cost countries high-cost countries 300 mm best-cost best-cost countries countries 300 mm (to be ramped FY18 – FY25) › 300 mm vs. 200 mm: 20%
Slide 15: Unique position allows to fill a 300 mm module in a commercially viable timeframe
Unique position allows to fill a 300 mm module in a commercially viable timeframe 2017 revenues with products # of years to fully load a cost feasible for 300 mm manufacturing competitive 300 mm module growth per annum MOSFETs Discr. IGBTs 6% 9% ~$3,500m* IGBT modules** others $4bn 7 yrs 5 yrs annua
Slide 16: Only limited outsourcing options for high-volume discrete power semiconductors available
Only limited outsourcing options for high-volume discrete power semiconductors available Power-focused foundries represent Infineon's outsourcing target only ~15% of total foundry capacity structure CRM, Dongbu ASMC CSMC In the next five years, the SSMC Silterra Infineon frontend outsourcing TowerJa
Slide 17: Agenda
Agenda 1 Infineon at a glance 2 Quarterly highlights 3 Automotive 4 Industrial Power Control 5 Power Management & Multimarket 6 Digital Security Solutions 7 Selected financial figures 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 17
Slide 18: xEV growth driven by emission regulation; EU about to force CO2 reduction
xEV growth driven by emission regulation; EU about to force CO2 reduction to -37.5% by 2030 vs 2021 CO2 emission development and regulations for main regions 200 CO2 emission values [g/km], normalized to NEDC Japan 2020: 150 122 g CO2/km* US 2020: 125 g CO2/km 100 China 2020 : EU 2021: -15% 117 g CO
Slide 19: CO2 reduction of 37.5% by 2030 implies growth of power semi for electric vehicles of ~20% p.a.
CO2 reduction of 37.5% by 2030 implies a growth of power semi for electric vehicles of ~20% p.a. EU car registrations: standard passenger vehicles (non-xEVs) versus xEVs [units m] ~15.4 ~15.8 ~16.2* ~15.1 ~40% EU 2025: EU 2021: 81 g CO2/km ~14.6m 95 g CO2/km ~9.7m EU 2030: 59 g CO2/km ~4.5% ~6.5m ~0
Slide 20: AURIX family makes significant inroads into infotainment and in-vehicle communication controller
AURIX™ family makes significant inroads into infotainment and in-vehicle communication controller Infineon’s newly achieved design-wins (see next page) GSM, UMTS, LTE, 5G, WiFi Telematics / Connectivity (incl. V2X) Central gateway Powertrain Safety / ADAS Body / Chassis Infotainment engine managemen
Slide 21: Significant design-wins confirm AURIX 1G/2G as attractive choice for the connected car
Significant design-wins confirm AURIX™ 1G/2G as attractive choice for the connected car AURIX™ stands out due to superior high computing performance on Infineon’s safe and secure microcontroller architecture › Asian OEM selected AURIX™ 1G for gateway module › Major European OEM selected AURIX™ 2G fo
Slide 22: Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station New! Massive MIMO DC-DC (MOSFET, ICs) 5G mmWave antenna New! AC-DC, DC-DC (MOSFET, ICs) Cloud Computing AC-DC, DC-DC (MOSFET, ICs) New! Base station power supply AC-DC, DC-DC (MOSFET, ICs) Fog Co
Slide 23: Automotive
Automotive
Slide 24: Infineon's position in the automotive semiconductor universe
Infineon's position in the automotive semiconductor universe Automotive semiconductors total market in 2017: $34.5bn NXP 12.5% Market share trend: Infineon Infine… 10.8% +0.1%-pt benefits disproportionately Rene… 10.0% from the two mega trends › electro-mobility: power, drivers, µC TI 8.0% › automat
Slide 25: Infineon is continuously outgrowing the market since 2010
Infineon is continuously outgrowing the market since 2010 Infineon automotive market share development* [USD bn] CAGR(10-17): +7.3% CAGR(10-17): +10.8% 10.5% 10.4% 10.7% 10.8% 9.6% 9.6% 8.7% 9.0% 34.5 30.2 27.5 27.4 24.0 25.2 23.5 21.0 2.3 2.2 2.4 2.9 2.8 3.2 3.7 1.8 2010 2011 2012 2013 2014 2015 20
Slide 26: Clean cars, ADAS/AD, and adoption of premium features drive growth
Clean cars, ADAS/AD, and adoption of premium features drive growth Drivers for semiconductor content per car Vehicle production Electro-mobility Automated Driving Comfort, premium › Legislation Today › Premium cars are › Improvements of › crash avoidance early adopters of ICE › ADAS high-end comfort
Slide 28: Short-term, MHEV/FHEV/PHEVs are first choice; mid-term BEVs are preferred solution
Short-term, MHEV/FHEV/PHEVs are first choice; mid-term BEVs are preferred solution CO2 emission reduction by powertrain Growth drivers of electro-mobility system 120 + Regulation -15% -30% -77% -100% + Incentives; China industry politics 102 CO2 emission [g/km] + Decreasing Diesel share 84 + Increas
Slide 29: The incremental demand of power semi-conductors is a significant opportunity
The incremental demand of power semi-conductors is a significant opportunity 2018 average xEV semiconductor content by degree of electrification 48 V / MHEV (in 2018) FHEV / PHEV (in 2018) BEV (in 2018) $95 $750 $25 $740 $300 $455 $75 $0 $475 $20 $375 $15 $375 $5 $20 $120 $80 power* power* total tot
Slide 30: System cost reduction can justify the higher SiC component price
System cost reduction can justify the higher SiC component price SiC is charac- Leading to Benefits on system level terized by battery size, battery cost lower higher › smaller battery capacity [kWh] losses efficiency  lower battery costs [$] [RDS(on); Ω] [W] › lower cooling efforts › extended rang
Slide 31: Infineon has unparalleled expertise and portfolio for high-power xEV applications
Infineon has unparalleled expertise and portfolio for high-power xEV applications Bare dies Discretes Modules Diodes MOSFETs molded frame-based Si will dominate the xEV market Modules will be preferred form SiC throughout next decade* factor in SiC mass market* [by $ value] [by $ value] 100% 100% Si
Slide 32: Infineon offers the complete automotive-grade portfolio of SiC components
Infineon offers the complete automotive-grade portfolio of SiC components CoolSiC™ Automotive CoolSiC™ Automotive Full SiC module Schottky diode MOSFET HybridPACK™ Drive CoolSiC™ on-board charger on-board charger main inverter ramped to ramp to ramp in 2018! in 2019! in 2020! › More than 20 leading
Slide 34: For Automated Driving more compute power but also a higher security and safety is needed
For Automated Driving more compute power but also a higher security and safety is needed Sense Interpret & decide Act Driver Sensors Actuators Controllers, algorithms, software Camera inside specialized driving domain Automated car sensor controller processors Radar Radar Camera outside sensor Ultra
Slide 35: Increased sensor requirements drive the content in the next 5 years and beyond
Increased sensor requirements drive the content in the next 5 years and beyond More sensors required for any next level of automation NCAP 5 Star, AD L2 AD L3 AD L4/L5 Automatic emergency brake/ forward collision warning Application* Parking assist Valet parking Lane keep assist Highway assist Highw
Slide 36: Infineon opens the door for mass-deployable lidar systems for Automated Driving
Infineon opens the door for mass-deployable lidar systems for Automated Driving Classification of long-range lidar systems solid state optical system mechanically moving mirror scanning optical flash lidar scanning MEMS-based mirror phased array + proven concept + allows optical beam + no moving par
Slide 37: ADAS/AD semi growth driven by radar and camera sensor modules
ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years Average semi content per car by level of automation at the given years NCAP 5 Star/AD L2 (~2020) AD L3 (~2025) AD L4/L5 (~2030) L2 vehicles in 2020: ~6m L3 vehicles in 2025: ~3m L4/L5 vehicles in 2030: ~4m $55 $970 $
Slide 38: Infineon's Power Strategy
Infineon’s Power Strategy Cinfineon
Slide 39: Infineon's portfolio covers the entire range of power and frequency
Infineon's portfolio covers the entire range of power and frequency What is a power switch? How are power switches categorized? 10 MW When turned on power  current flows = When turned off 1 MW  current is blocked IGBT Module What counts? 100 kW › Losses in on-state (R(DS)on) SiC › Heat dissipation
Slide 40: IPC's and PMM's discrete power portfolio is basically separated by voltage classes
IPC's and PMM's discrete power portfolio* is basically separated by voltage classes silicon-based power semiconductors compound semiconductors 6,500 V 4,500 V IPC territory SiC MOSFET IGBT 3,300 V roadmap modules 1,700 V discrete IGBTs 1,200 V SiC MOSFET today 900 V high-voltage MOSFETs (CoolMOS™) 6
Slide 41: Three strategic levers to outgrow the power semi market: core – adjacent – new
Three strategic levers to outgrow the power semi market: "core – adjacent – new"  Adjacent  Core Controller Gate driver switch application translates e.g. motion triggers low-power signal signal into control, power appropriate conversion gate input  Grow in adjacent fields  Strengthen core › Inv
Slide 42: Clear #1 position in power allows driving four key areas of differentiation and innovation
Clear #1 position in power allows driving four key areas of differentiation and innovation 1 2 Unique 300 mm thin wafer power Compound semiconductors semiconductor manufacturing SiC and GaN 3 4 Digitalization of the power control loop Functional integration 2019-02-05 Copyright © Infineon Technologi
Slide 43: Industrial Power Control
Industrial Power Control ineon infir
Slide 44: To empower this variety of applications we rely on the most comprehensive power portfolio
To empower this variety of applications we rely on the most comprehensive power portfolio Bare Die Controllers Discretes IPMs IGBTs and Si diodes Driver Modules Solutions SiC MOSFET SiC diodes 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 44
Slide 45: IPC business in China rather robust due to considerable amount of infrastructure projects
IPC business in China rather robust due to considerable amount of infrastructure projects FY18 revenue by application Key insights 100% › Inverterization trend ongoing – backed by regional regulations others › As follower in IPMs we gain sockets from competition home appliances › "Made in China 2025
Slide 46: Clear leader in discrete IGBTs and IGBT modules; IPMs improved from #4 to #3
Clear leader in discrete IGBTs and IGBT modules; IPMs improved from #4 to #3 Discrete IGBTs IPMs IGBT modules* total market in 2017: $1.10bn total market in 2017: $1.57bn total market in 2017: $2.63bn Infineon 38.5% Mitsubishi 36.4% Infineon 32.6% Fuji Electric 12.0% ON Semi 18.7% Fuji Electric 10.5
Slide 47: IPC's biggest application drives segmented by end applications in the industry
IPC's biggest application "drives" segmented by end applications in the industry Industrial drives Servo drives General purpose drives High-power drives 25% 64% 11% Examples Examples Examples › robotics › pumps & fans › oil & gas industry › material handling › process automation › chemical industry
Slide 48: Infineon serves all major players for PV inverters and wind turbines
Infineon serves all major players for PV inverters and wind turbines IPC revenue in renewables Infineon is powering all leading renewable energy players* [EUR m] total 320 – 410 PV inverter2) Wind4) CAGR(17-22): 4.3% - 9.6% 1 | Huawei  1 | Siemens/Gamesa  259 2 | Sungrow  2 | Vestas  232 203 3 |
Slide 49: SiC MOSFETs bring down system cost and size of PV inverters
SiC MOSFETs bring down system cost and size of PV inverters despite higher component cost Reduction of system cost, higher semi-value Total system cost [$] › 15-20% lower bill of material other other for inverter manufacturer (e.g. resistor, capacitor, › 2-3x higher semiconductor transformer etc.) v
Slide 50: Inverterization of home appliances is a key driver for our business
Inverterization of home appliances is a key driver for our business Uncontrolled Variable Number of home appliances by motor type2) motor speed drive [units m] CAGR(17-22) Semi content3) 585 67 161 244 (65%) +19% ~€9.50 (25%) (34%) (12%) 474 475 467 317 -7% ~€0.70 (88%) (75%) (66%) (35%) Extended Le
Slide 51: IPC's business success in home appliances is based on several success factors
IPC's business success in home appliances is based on several success factors  Early identification of trend for IPC revenue in home appliances is inverterization showing outstanding growth [EUR m] CAGR(14-18): 43%  Market access through inorganic growth (acquisit. of LSPS and IRF)  Improved deli
Slide 52: IPC's digital control strategy enables customers to shrink their system
IPC's digital control strategy enables customers to shrink their system Example: motor control solution for aircon indoor fan Solution based on Solution based on Solution based on standard IPM CIPOS™ Nano iMOTION™ Smart IPM Customer benefits of highly integrated power ICs › Significant system cost r
Slide 53: Digitalization: motor control platform with scalable integration of HW and SW
Digitalization: motor control platform with scalable integration of HW and SW Adjacent Core Controller Gate driver 3-phase inverter (IGBT) triggers low- translates power signal signal into AC appropriate Motor gate input iMOTION™ Controller iMOTION™ Smart IPM Standard IPM Key benefits System improve
Slide 54: HMI and AI are driving the penetration of collaborative robots (cobots)
HMI and AI are driving the penetration of collaborative robots (cobots) System understanding and extended product 700,000 new cobots by 20251) portfolio allow for growth in adjacent markets ~€350 semiconductor content2) Safe motion Advanced position, force per cobot, thereof control and object sensi
Slide 55: Growing penetration of electric vehicles will drive roll-out of charging infrastructure
Growing penetration of electric vehicles will drive roll- out of charging infrastructure power Charging infrastructure market; DC charging charging semi roll-out by rack performance3) system time1) content 350 kW [units k] [USD m] 7 ~$3,500 (6 racks of 60 kW each) min SiC-based CAGR(17-23): 21% 129
Slide 56: Electrification of trains is accelerating and Infineon is part of two subsystems
Electrification of trains is accelerating and Infineon is part of two subsystems Locomotive Metro HST/ EMU Subsystem 1: Auxiliary inverter Air conditioning, power sockets, air brake, control stand, etc. Courtesy: Toshiba Trends in traction SiC Electrification of Urbanization and Strong freight trans
Slide 57: With an increasing number of applications, particularly module players will win in SiC
With an increasing number of applications, particularly module players will win in SiC SiC power semiconductors SiC power semiconductors by application excl. xEV by product type excl. xEV [USD m] CAGR(17-27) [USD m] CAGR(17-27) CAGR(17-27): 14.8% 1,493 1,493 Others 14.3% Full SiC 29.9% Aerospace/ Mo
Slide 58: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Shakti pumps Courtesy: Alstom new material solar pumps fuel cell Courtesy: Courtesy: McKinsey Siemens AG EV charging energy storage eMarine Courtesy: Lilium GmbH collaborative robots eDelivery vehicle
Slide 59: Power Management & Multimarket
Power Management & Multimarket
Slide 60: PMM's growth is built on many applications from different sectors in power and non-power
PMM's growth is built on many applications from different sectors in power and non-power Computing Industrial Consumer / Misc Communications › Data Center › Power supplies › eBikes › Handsets › PC, Notebook › EV on-board charger › Multicopter › Wearables › Peripherals › PV inverter › Aviation › 5G m
Slide 62: Infineon is the clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFET market Power IC market total market in 2017: $6.65bn total market in 2017: $23.6bn Infineon 26.3% (+0.3%-pt) TI 15.9% ON Semi 12.8% Qualcomm 8.1% Renesas 9.2% Infineon 7.6% (+0.3%-pt) Toshiba 7.4% ADI 7.4% S
Slide 63: Technology leadership in MOSFETs and digital power: highest efficiency and power density
Technology leadership in MOSFETs and digital power: highest efficiency and power density Adjacent Core Controller Driver IC MOSFET triggers low-power translates signal into high- signal to switch on current gate input switches on, current flows Power management solutions reduce TCO More efficient se
Slide 64: Highly differentiating solution for data centers enables significant opex and capex reduction
Highly differentiating solution for data centers enables significant opex and capex reduction Structural trends for data center › Higher memory content; higher computing power › Diversified processor supplier base: › Data center operators invest in proprietary processor designs Data center power flo
Slide 65: Four interrelated trends drive power semiconductor BoM in battery-powered applications
Four interrelated trends drive power semiconductor BoM in battery-powered applications Interrelated trends for battery-powered applications  From corded to From brushed DC  Trend towards higher power  New applications cordless power to brushless DC and higher battery voltage with trend towards t
Slide 66: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Nissan 5G infrastructure on-board charger collaborative robots hyperscale AI data center wireless charging smart speaker new material battery main switch class D audio 2019-02-05 Copyright © Infineon
Slide 68: RF and Sensing devices enable new services and will shape the way we live and work
RF and Sensing devices enable new services and will shape the way we live and work Courtesy: BMW Courtesy: eluminocity Augmented Reality Voice-controlled devices Various use cases are enabled by a small set of versatile core technologies Smart streetlights Commercial and consumer Gesture control Ind
Slide 69: We focus on MEMS sensors and target to become the leader in 3D sensing and radar
We focus on MEMS sensors and target to become the leader in 3D sensing and radar Microphone Pressure Enviromental 3D radar 3D ToF World Highest No Best-in-class Best-in-class smallest form energy distortions resolution resolution 6x6mm² factor efficiency Receive Measure clear audio Measure CO2 Biome
Slide 70: XENSIV silicon microphones have plenty of growth opportunities beyond smartphones
XENSIV™ silicon microphones have plenty of growth opportunities beyond smartphones TV, laptop and Smart home Smart speaker Robotics set-top box (appliances) + Extended + + voice pick- Highest Best speech up distance beam- recognition forming precision [units m] 100 Global smart speaker Market snapsh
Slide 71: Leading base technologies for sensor solutions: Time-of-Flight
Leading base technologies for sensor solutions: Time-of-Flight Time-of-Flight: Modulated infrared-light is emitted and reflected by objects. Phase-shift of returned light is measured in each pixel of the image sensor. Time-of-Flight Infrared illumination 850 nm or 940 nm Resolution: up to 100k pixel
Slide 72: Digital Security Solutions
Digital Security Solutions Infineon
Slide 73: Security is a system approach
Security is a system approach Example: Automotive Security › As humans, machines, 'things' are getting connected, the risks of security attacks increase strongly as attack paths increase › Accordingly, there is a greater need for security in fields like smart home, connected cars, information and co
Slide 75: Continuous stream of new topics aging and exiting
Continuous stream of new topics aging and exiting maturity Emerging Growing Maturing Pay TV SIM Card  Smart card form factor  Embedded form factor Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Aut
Slide 76: Agenda
Agenda 1 Infineon at a glance 2 Target operating model (TOM) 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 76
Slide 77: Seasonal revenue decline in Q1 FY19, strong revenue growth +11% y-y
Seasonal revenue decline in Q1 FY19, strong revenue growth + 11% y-y Revenue development [EUR m] +11% 2,047 1,941 1,970 1,836 1,775 39.8% 39.5% 38.2% 37.1% 36.4% 283 314 356 400 359 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Revenue Segment Result Gross Margin 2019-02-05 Copyright © Infineon Technologi
Slide 78: Organic RoCE as the key value metric typically amounts to ~2x WACC
Organic RoCE as the key value metric typically amounts to ~2x WACC RoCE and adjusted RoCE 30% 20% 10% 0% FY15 FY16 FY17 FY18 Q1 FY19 Q2 Q3 Q4 RoCE (excluding PPA, Deferred Tax Effects and RF power sale) RoCE (reported) 2019-02-05 Copyright © Infineon Technologies AG 2019. All rights reserved. 78
Slide 79: Our commitment to investors: Continued value creation through growth
Our commitment to investors: Continued value creation through growth Development of earnings-per-share (EPS) from continuing operations [EUR cent] 40 26 27 28 EPS basic 22 24 22 24 20 18 EPS adjusted Q1 FY18 Q2 Q3 Q4 Q1 FY19 Total cash return to shareholders [EUR m] 2,114 › Policy of sustainable 308
Slide 80: Opex within target range
Opex within target range Selling, General & Administration* Research & Development** [EUR m] 236 227 218 223 218 205 209 210 195 200 12.0% 11.5% 11.4% 11.2% 10.9% 10.8% 11.1% 11.1% 11.0% 10.9% Q1 FY18 Q2 Q3 Q4 Q1 FY19 Q1 FY18 Q2 Q3 Q4 Q1 FY19 General & Administration Selling R&D % of sales [rhs] * T
Slide 81: Inventories main driver for Working Capital increase
Inventories main driver for Working Capital increase Working capital* Inventories [EUR m] [EUR m] [days] 991 979 1,591 929 1,388 1,480 841 1,282 1,305 712 120 102 102 104 108 Q1 FY18 Q2 Q3 Q4 Q1 FY19 Q1 FY18 Q2 Q3 Q4 Q1 FY19 Inventories DOI* Trade receivables Trade payables [EUR m] [days] [EUR m] [d
Slide 82: Investments and D&A trending up due to strong growth
Investments and D&A trending up due to strong growth Investments* Depreciation & Amortization [EUR m] ~€1.5bn (prev.: ~€1.6bn – €1.7bn) 1,254 1,022 ~1,000 833 861 ~90 785 826 812 760 102 668 140 129 114 514 18.1% 8 16.5% 14.5% 13.5% 12.8% 11.9% 13.1% 12.9% 15.5% 11.5% 11.3% 12.1% 506 646 693 683 759
Slide 83: Healthy gross cash and net cash position
Healthy gross cash and net cash position Liquidity development [EUR m] 1,532 1,829 1,533 1,789 1,809 1,011 792 2,543 2,312 2,438 2,621 2,306 773 649 503 Q1 Q2 Q3 Q4 Q1 FY18 FY19 Gross Cash Debt Net Cash › Operating cash flow from continuing operations was €310m in Q1 FY 2019 › Free Cash Flow from co
Slide 84: Infineon has a balanced maturity profile and a solid investment grade rating (BBB) from S&P
Infineon has a balanced maturity profile and a solid investment grade rating (BBB) from S&P Maturity profile [EUR m; US$ m; nominal values] €500 $350 $350 $235 €171 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Campeon 8-year 10-year 12-year final re- Eurobond USPP USPP USPP payment Mar 2022 Not
Slide 85: Glossary (1 of 2)
Glossary (1 of 2) AC alternating current ECU electronic control unit AC-DC alternating current - direct current EMU electric multiple unit AD automated driving EPS electric power steering ADAS advanced driver assistance system eSIM embedded subscriber identity module AEB automatic emergency braking
Slide 86: Glossary (2 of 2)
Glossary (2 of 2) IPM intelligent power module PV photovoltaic iPol image processing line RF radio frequency IRF International Rectifier rhs right-hand scale LSEV low-speed electric vehicle Si silicon LSPS LS Power Semitech Co. Ltd. SiC silicon carbide µC microcontroller SiGe silicon germanium MEMS
Slide 87: Disclaimer
Disclaimer 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 upon currently available information and present estimates. They are s
Slide 88: 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 › Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then › Jul 2018: Most recent review › Jan 2018: Infineon is listed in the Sustainabili
Slide 89: Financial calendar
Financial calendar Date Location Event 21 Feb 2019 Munich Annual General Meeting 25 – 27 Feb 2019 Barcelona Mobile World Congress 14 Mar 2019 Paris Bryan, Garnier & Co. 4th Annual Technology Conference 5 Apr 2019 Baden-Baden Bankhaus Lampe Conference 7 May 2019* Q2 FY19 Results PCIM trade show; IPC
Slide 90: 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' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale – ('Total Current li
Slide 91: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-23766 alexander.foltin@infineon.com Joachim Binder Isabell Diel Senior Director Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 joachi
Slide 92: Infineon
Cinfineon Part of your life. Part of tomorrow.

Infineon Technologies — Q1 FY2019 Earnings Presentation on 6ix

Infineon Technologies — Q1 FY2019 Earnings Presentation

Slide 1: First Quarter FY 2019 Quarterly Update

Slide 2: Agenda

Slide 3: Infineon at a glance: strong financials, leading market positions

Slide 4: Infineon's organic revenue development clearly outperformed the total semi market

Slide 5: Our strategy is targeted at value creation through sustainable organic growth

Slide 6: Long platform life-times in majority of our businesses provide stickiness and visibility

Slide 7: Well diversified exposure to end-markets and applications provide resilient growth model

Slide 8: Tight customer relationships, based on system know-how and application understanding

Slide 9: Infineon holds a leading position in its target markets

Slide 10: Q1 FY19 Group and Division Performance

Slide 11: Outlook for Q2 FY19 and FY19

Slide 12: Outlook for FY19 fully in line with long-term target operating model (TOM)

Slide 13: New Villach 300 mm module will add significant capacity in power semiconductors

Slide 14: Gross margin potential driven by 300 mm manufacturing for power and sensors

Slide 15: Unique position allows to fill a 300 mm module in a commercially viable timeframe

Slide 16: Only limited outsourcing options for high-volume discrete power semiconductors available

Slide 17: Agenda

Slide 18: xEV growth driven by emission regulation; EU about to force CO2 reduction

Slide 19: CO2 reduction of 37.5% by 2030 implies growth of power semi for electric vehicles of ~20% p.a.

Slide 20: AURIX family makes significant inroads into infotainment and in-vehicle communication controller

Slide 21: Significant design-wins confirm AURIX 1G/2G as attractive choice for the connected car

Slide 22: Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies

Slide 23: Automotive

Slide 24: Infineon's position in the automotive semiconductor universe

Slide 25: Infineon is continuously outgrowing the market since 2010

Slide 26: Clean cars, ADAS/AD, and adoption of premium features drive growth

Slide 27: Electro-mobility

Slide 28: Short-term, MHEV/FHEV/PHEVs are first choice; mid-term BEVs are preferred solution

Slide 29: The incremental demand of power semi-conductors is a significant opportunity

Slide 30: System cost reduction can justify the higher SiC component price

Slide 31: Infineon has unparalleled expertise and portfolio for high-power xEV applications

Slide 32: Infineon offers the complete automotive-grade portfolio of SiC components

Slide 33: Automated Driving

Slide 34: For Automated Driving more compute power but also a higher security and safety is needed

Slide 35: Increased sensor requirements drive the content in the next 5 years and beyond

Slide 36: Infineon opens the door for mass-deployable lidar systems for Automated Driving

Slide 37: ADAS/AD semi growth driven by radar and camera sensor modules

Slide 38: Infineon's Power Strategy

Slide 39: Infineon's portfolio covers the entire range of power and frequency

Slide 40: IPC's and PMM's discrete power portfolio is basically separated by voltage classes

Slide 41: Three strategic levers to outgrow the power semi market: core – adjacent – new

Slide 42: Clear #1 position in power allows driving four key areas of differentiation and innovation

Slide 43: Industrial Power Control

Slide 44: To empower this variety of applications we rely on the most comprehensive power portfolio

Slide 45: IPC business in China rather robust due to considerable amount of infrastructure projects

Slide 46: Clear leader in discrete IGBTs and IGBT modules; IPMs improved from #4 to #3

Slide 47: IPC's biggest application drives segmented by end applications in the industry

Slide 48: Infineon serves all major players for PV inverters and wind turbines

Slide 49: SiC MOSFETs bring down system cost and size of PV inverters

Slide 50: Inverterization of home appliances is a key driver for our business

Slide 51: IPC's business success in home appliances is based on several success factors

Slide 52: IPC's digital control strategy enables customers to shrink their system

Slide 53: Digitalization: motor control platform with scalable integration of HW and SW

Slide 54: HMI and AI are driving the penetration of collaborative robots (cobots)

Slide 55: Growing penetration of electric vehicles will drive roll-out of charging infrastructure

Slide 56: Electrification of trains is accelerating and Infineon is part of two subsystems

Slide 57: With an increasing number of applications, particularly module players will win in SiC

Slide 58: What comes next? Mid- to long-term structural growth opportunities

Slide 59: Power Management & Multimarket

Slide 60: PMM's growth is built on many applications from different sectors in power and non-power

Slide 61: PMM – Power

Slide 62: Infineon is the clear leader in MOSFETs; growth potential in power ICs

Slide 63: Technology leadership in MOSFETs and digital power: highest efficiency and power density

Slide 64: Highly differentiating solution for data centers enables significant opex and capex reduction

Slide 65: Four interrelated trends drive power semiconductor BoM in battery-powered applications

Slide 66: What comes next? Mid- to long-term structural growth opportunities

Slide 67: PMM – RF and Sensing

Slide 68: RF and Sensing devices enable new services and will shape the way we live and work

Slide 69: We focus on MEMS sensors and target to become the leader in 3D sensing and radar

Slide 70: XENSIV silicon microphones have plenty of growth opportunities beyond smartphones

Slide 71: Leading base technologies for sensor solutions: Time-of-Flight

Slide 72: Digital Security Solutions

Slide 73: Security is a system approach

Slide 74: Infineon offers security for the connected world

Slide 75: Continuous stream of new topics aging and exiting

Slide 76: Agenda

Slide 77: Seasonal revenue decline in Q1 FY19, strong revenue growth +11% y-y

Slide 78: Organic RoCE as the key value metric typically amounts to ~2x WACC

Slide 79: Our commitment to investors: Continued value creation through growth