Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q2 FY2024 Earnings Presentation
19 slides from Infineon Technologies's earnings presentation, May 7, 2024
Slide 1: Second Quarter FY 2024 Analyst Call
Second Quarter FY 2024 Analyst Call Infineon Technologies AG Investor Relations 1
Slide 2: Group financial performance
Group financial performance Revenues and Segment Result USD exchange rate [EUR m] Average revenue exchange rate Segment Result Revenues Segment Result Margin -12% Q2 Q1 Q2 -2% FY23 FY24 FY24 4,149 ø USD/EUR 1.08 1.08 1.09 4,119 4,089 3,702 3,632 Order backlog1 [EUR bn] 36 32 29 24 24 28.6% 26.1% 25.
Slide 3: Automotive (ATV)
Automotive (ATV) Revenues Segment Result [EUR m] [EUR m] Revenues Segment Result Segment Result Margin 0% 0% 2,080 2,129 2,162 2,085 2,078 647 583 617 564 512 31.1% 27.4% 28.5% 27.1% 24.6% ‒ Stable revenue development – moderate inventory correction, and annual price declines compensated by structur
Slide 4: Infineon's top market position is built on system competence
Infineon’s top market position is built on system competence based on an industry-leading product portfolio Automotive semiconductors (2023 total market: $69,200n; +16.5% y-y) ‒ Infineon grew by 26% y-y, gaining 1.0%-pts of market share Infineon 13.7% to 13.7%, the highest level ever NXP 10.8% ‒ Inf
Slide 5: Xiaomi SU7 Max: Infineon contributes >60 different components
Xiaomi SU7 Max: Infineon contributes > 60 different components, incl. 2x HybridPACK™ Drive G2 CoolSiC™ 1200 V power modules Infineon provides system solutions with > 60 different components for more than 10 applications › MCUs, PMICs: AURIX™ TC3, TRAVEO™ T2G, and PSoC™ for zone controller, ADAS, xEV
Slide 6: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -16% -4% 558 565 582 487 469 181 171 166 130 32.4% 30.3% 28.5% 89 26.7% 19.0% ‒ Challenging business environment for industrial applications ‒ Weak corporate investing and low consumer
Slide 7: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result [EUR m] [EUR m] Segment Result Segment Result Margin Revenues -23% -7% 925 917 912 765 197 713 191 172 99 21.3% 20.8% 18.9% 64 12.9% 9.0% ‒ MOSFETs and ICs for consumer-facing applications remained weak; revenue uptick in servers and smartphones ‒
Slide 8: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -33% +2% 550 474 490 155 364 371 119 90 28.2% 25.1% 18.4% 37 42 10.2% 11.3% ‒ Stabilizing demand for consumer IoT and smart card products drove bottoming revenue ‒ Pace of inventory c
Slide 9: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 1,920 1,821 1,807 1,599 1,403 496 518 512 487 487 394 396 399 395 46.6 % 44.5 % 43.6 % 43.2 % 375 38.6 % 11.8% 12.1% 12.5% 13.8% 13.4% 10.7% 10.3% 9.6% 9.7% 9.6% Gross margin as reported Gross profit as reported R&D expenses as % of
Slide 10: Investments, Depreciation & Amortization and Free Cash Flow
Investments, Depreciation & Amortization and Free Cash Flow Investments Depreciation & Amortization Free Cash Flow [EUR m] [EUR m] [EUR m] 1,057 614 768 326 653 643 450 456 467 434 441 565 193 82 -1,597 2024-05-07 Copyright © Infineon Technologies AG 2024. All rights reserved. 10
Slide 11: Working capital, in particular trade working capital components
Working capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 3,503 3,754 3,974 4,330 4,404 2,901 3,499 185 178 1,904 2,071 1,763 143 149 153 Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 2,765 1,960 2,014 1,991 2,000 1,743 2,078
Slide 12: Development of liquidity and debt
Development of liquidity and debt Capital structure [EUR m] Gross Cash Gross Debt Net Cash/Debt 3,446 3,590 2,986 2,712 2,583 2,447 -1,143 1,293 -1,693 1,464 -1,982 -5,398 -2,686 -5,941 -3,358 Dividend payout: - 456 EUR m Share buyback: - 233 EUR m Eurobond: + 500 EUR m 2024-05-07 Copyright © Infine
Slide 13: Outlook for Q3 FY24 and FY24
Outlook for Q3 FY24 and FY24 Outlook Outlook Q3 FY241 FY241 Revenue ~€3.8bn €15.1bn +/-400m Adj. Gross Margin low-forties Segment Result Margin high-teens ~20% FCF/adj. FCF ~€0m/~€1.6bn Investments ~€2.8bn D&A ~€1.9bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00 2 Including the am
Slide 14: STEP UP
STEP UP Cycle management: Aim: to fundamentally strengthen our competitiveness Operational measures affecting FY24 Structural measures targeting high triple-digit (examples: reduced fab loadings; curbed million € savings; full effect by H1 FY27 investment budget; slowed hiring) Well-targeted measure
Slide 15: Key points
Key points Robust first half of FY24 concluded Q2 FY24 – €3.6bn revenue, 19.5% Segment Result Margin Market environment remains weak − Challenging macro-economic and geopolitical environment − De-risked the outlook for the remaining FY − We continue to manage the cycle, adjusting loading levels furt
Slide 16: Questions & Answers
Questions & Answers 2024-05-07 Copyright © Infineon Technologies AG 2024. All rights reserved. 16
Slide 17: Cinfineon
Cinfineon
Slide 18: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently availa
Slide 19: Notes
Notes Order backlog = The total amount of orders received regardless of their current status Working Capital = ('Total current assets' – 'Cash and cash equivalents' – 'Financial investment' – 'Assets classified as held for sale') – ('Total current liabilities' – 'Short term debt and current maturiti
Infineon Technologies — Q2 FY2024 Earnings Presentation on 6ix