Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q1 FY2015 Earnings Presentation

29 slides from Infineon Technologies's earnings presentation, Jan 29, 2015

  1. Slide 1: First Quarter FY 2015 Quarterly Update

    First Quarter FY 2015 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 (excluding International Rectifier). These statements are based on

  3. Slide 3: Average Cycle Financial Targets

    Average Cycle Financial Targets Historical Going forward CAGR(99-14) = ~9% Revenue Growth: FY99 FY02 FY04 FY06 FY08 FY10 FY12 FY14 ~8% 20% 15% 14.4% Segment Result Margin: 10% 5% 0% FY10 FY11 FY12 FY13 FY14 ~15% 25% 20% 15% 15.1% Investment-to-Sales: 10% 5% 0% FY09 FY10 FY11 FY12 FY13 FY14 ~13% 2015

  4. Slide 4: Revenue Split by Segment

    Revenue Split by Segment Q1 FY15 revenue: EUR 1,128m ATV IPC €518m €190m Courtesy: BMW Group CCS PMM €132m €280m OOS+C&E* €8m * Other Operating Segments; Corporate and Eliminations. 2015-01-29 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 4

  5. Slide 5: 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 2015-01-29 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 5

  6. Slide 6: 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 2013: total market in 2013: total market in 2013: $2.48bn $25.1bn $15.4bn Renesas 13.3% Infineon 12.3% NXP 32.3% Infineon 9.6% Mitsubishi 7.2% Infineon 21.7% STM

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2015-01-29 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 7

  8. Slide 8: 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) = 3.2% 369 CAGR World 327 +2.4% +2.3% +3.8% 99.2 96.1 92.8 87.4 89.4 6.6 6.0 6.2 5.7 8.2 8.1 5.7 8.5 281 CAGR 9.2 8.8 15.3 China 14.0 14.6 218 +5.

  9. Slide 9: LITIX Automotive LED Drivers Are Gaining Broad Traction in Exterior Lighting

    LITIX™ Automotive LED Drivers Are Gaining Broad Traction in Exterior Lighting LITIX™: Infineon Automotive LED drivers LED rear lighting LED front lighting  High level of integration reduces system  Highly efficient DC/DC controller and complexity converter  Increased reliability by precise curren

  10. Slide 10: Wide Adoption of Premium Features, ADAS and CO2 Reduction Drive ATV's Growth

    Wide Adoption of Premium Features, ADAS and CO2 Reduction Drive ATV‘s Growth Vehicle Semiconductor content per car production CO2 reduction ADAS* Comfort, Premium Courtesy: BMW Group Courtesy: Bosch Courtesy: Bosch ~4% p.a. 2 – 4% p.a. ATV: ~8% p.a. * ADAS: Advanced Driver Assistance Systems. Source

  11. Slide 11: Drives, Home Appliances and Others Show Strongest Growth Rates

    Drives, Home Appliances and Others Show Strongest Growth Rates Home Drives Renewables Traction Others Appliances Expected growth of market segments ~10% p.a. > 5% p.a. ~5% p.a. > 10% p.a. > 10% p.a. IPC: ~10% p.a. Sources: IHS Inc., Infineon. All figures refer to mid-term compound annual growth rate

  12. Slide 12: PMM Aims to Outgrow Its Core Markets

    PMM Aims to Outgrow Its Core Markets Power Management Mobile Communications Computing Charger Lighting Mobile devices Cell. infrastructure Expected growth of market segments > 7% p.a. > 7% p.a. PMM: ~10% p.a. Sources: IHS Inc., ABI Research, Infineon. All figures refer to mid-term compound annual gr

  13. Slide 13: CCS is Well Positioned to Grow Faster Than the Market

    CCS is Well Positioned to Grow Faster Than the Market High-end Mobile Government Payment IoT Security Communications Identification Expected growth of market segments ~0% p.a. ~5% p.a. ~10% p.a. ~20 - 25% p.a. CCS: 6 – 9% p.a. All figures refer to security microcontrollers. Sources: IHS Inc., Infine

  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: Siemens AG ~8% p.a. ~10% p.a. ~10% p.a. 6-9% p.a. Infineon: ~8% p.a. Sources: IHS Inc., Strategy Analytics, ABI Research, Infineon. All figures refer to mid-term compound annual growth rate of the

  15. Slide 15: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2015-01-29 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 15

  16. Slide 16: Q1 FY15 Was Seventh Consecutive Quarter of Year-On-Year Growth

    Q1 FY15 Was Seventh Consecutive Quarter of Year-On-Year Growth Revenue and Segment Result [EUR m] +15% FY14 revenue split 1.175 by product category 1.110 1.128 1.051 984 12% 14% 15% 16% 15% Power embed. Control RF others 116 146 170 188 169 Q1 FY14 Q2 Q3 Q4 FY14 Q1 FY15 Revenue Segment Result Segmen

  17. Slide 17: Strong Y-Y-Growth in ATV, PMM and CCS; IPC Lagging Due to Global Economy

    Strong Y-Y-Growth in ATV, PMM and CCS; IPC Lagging Due to Global Economy ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +15% 510 518 518 484 452 +18% +6% 300 271 280 252 238 219 +22% 200 190 20% 179 185 17% 17% 12% 14% 14% 13% 14% 15% 142 132 12% 121 123 15% 18% 20% 20% 15% 108 8% 14% 14% 6% 7% 55

  18. Slide 18: Guidance for Q2 FY15 and Total FY15

    Guidance for Q2 FY15 and Total FY15 Outlook Q2 FY15 Outlook FY15 (compared to Q1 FY15) (compared to FY14) Increase between Increase of 12% Revenue +/- 2%-points 5% and 9% (prev.: „Increase of 8% +/- 2%-points“) At the mid-point of the revenue guidance: Segment Between Result Between 14% and 15% 12%

  19. Slide 19: Infineon

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

  20. Slide 20: G&A Increased Due to Non-Segment Result Expenses Related to Acquisition of IRF

    G&A Increased Due to Non-Segment Result Expenses Related to Acquistion of IRF S, G&A1) R&D2) [EUR m] 141 140 139 140 138 136 136 133 15% 121 122 120 114 14% 100 80 13% 60 12% 40 11% 20 0 10% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY14 FY15 FY14 FY15 General & Administration Selling R&D % of sales [rhs] 1) Ta

  21. Slide 21: Working Capital Increased Due to Qimonda Partial Settlement and EU Antitrust Payment

    Working Capital Increased Due to Qimonda Partial Settlement and EU Antitrust Payment Working capital* Inventories [EUR m] [EUR m] 755 [days] 654 674 680 707 Q1 FY14 Q2 Q3 Q4 Q1 FY15 100 490 600 500 80 400 60 300 40 200 20 100 0 0 Q1 FY14 Q2 Q3 Q4 Q1 FY15 -100 -92 -75 -16 -52 Inventories DOI* Trade r

  22. Slide 22: FY15 Investments Ratio excl. Kulim 2 and Qimonda IP Would Be Down to ~13%

    FY15 Investments Ratio excl. Kulim 2 and Qimonda IP Would Be Down to ~13% Investments* D&A [EUR m] 1000 30% 887 890 800 ~750** 668 20% ~600 600 15.1% 514 15.5% 453 466 428 378 11.9% 364 12.4% 400 325 336 10% 200 115 141 141 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15e FY09 FY10 FY11 FY12 FY13 FY14 FY15e

  23. Slide 23: Proposal of Dividend of €0.18 Will Increase Capital Returns by €202m in February 2015

    Proposal of Dividend of €0.18 Will Increase Capital Returns by €202m in February 2015 Total gross capital returns history [EUR m] 1,053 350  In November 2013, a 308 new €300m capital 300 returns program with a maturity until Sep 2015 250 109 was started. 212 202  Per 31 Dec 2014, put 200 26 167 op

  24. Slide 24: Gross Cash and Net Cash Excluding International Rectifier

    Gross Cash and Net Cash Excluding International Rectifier Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 38* 186 193 188 190 190 2279 2048 2198 2010 2263 2073 2418 2232 2107 1917 Q1 Q2 Q3 Q4 Q1 FY14 FY14 FY15 * The remaining outstanding convertible bonds were converted by the e

  25. Slide 25: Target: 'RoCE Above WACC' Over the Cycle

    Target: 'RoCE Above WACC' Over the Cycle RoCE* history WACC: low teens % 30% FY14: 20% 20% FY13: 14% 10% 5% 7% 16% 27% 17% 21% 24% 24% 18% 0% Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Capital Employed* history [EUR m] 2969 3000 2327 2452 2239 2274 2216 2159 2194 2232 2000 1000 0 Q1 FY13 Q2 Q3 Q4 Q1

  26. Slide 26: 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 –

  27. Slide 27: 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  September 2014: Infineon was listed in the STOXX® Global ESG Leaders Indices, which serves as an  January 2015: Infineon is indicator of the quality of Infineon’s listed in the Sustai

  28. Slide 28: Financial Calendar

    Financial Calendar Date Location Event 12 Feb 2015 Munich Annual General Meeting 05 May 2015* Q2 FY15 Results 02 Jun 2015 Zurich DZ Bank Sustainability Conference 30 Jul 2015* Q3 FY15 Results 22 Sep 2015 Munich Baader Investment Conference 23 Sep 2015 Berenberg Bank and Goldman Sachs German Munich C

  29. Slide 29: Institutional Investor Relations Contacts

    Institutional Investor Relations Contacts Dr. Jürgen Rebel Corporate Vice President  +49 89 234-21626 Investor Relations  juergen.rebel@infineon.com Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 234-22332 Investor

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