Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q2 FY2012 Earnings Presentation
39 slides from Infineon Technologies's earnings presentation, May 3, 2012
Slide 1: Second Quarter FY 2012 Quarterly Update
Second Quarter FY 2012 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Table of Contents
Table of Contents Infineon at a Glance Growth Outlook and Margin Resilience 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 an
Slide 3: Revenue Split by Division
Revenue Split by Division Q2 FY 2012 revenue: EUR 986m ATV IPC € 425m € 174m PMM CCS € 227m € 112m OOS+C&E* € 48m * Other Operating Segments; Corporate & Eliminations. 03 May 2012 Copyright © Infineon Technologies 2012. All rights reserved. Page 3
Slide 4: +4% Revenue Growth; Stable Segment Result Margin
+4% Revenue Growth; Stable Segment Result Margin [EUR m] Q2 FY11 Q1 FY12 Q2 FY12 Revenue 994 946 986 Segment Result 202 141 144 SR Margin 20.3% 14.9% 14.6% [EUR m] Net Income* 572 96 111 946 986 Investment 164 294 192 FCF from cont. 141 144 13 -234 -10 operations Gross Cash 2,691 2,337 2,190 Q1 FY12
Slide 5: Tight Customer Relationships are Based on System Knowhow and App Understanding
Tight Customer Relationships are Based on System Knowhow and App Understanding ATV IPC PMM CCS Distributors 03 May 2012 Copyright © Infineon Technologies 2012. All rights reserved. Page 5
Slide 6: Infineon Holds Top Positions in All Target Markets
Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 11% Infineon 27% Infineon 10% Toshiba 7% Samsung 21% STMicro 9% STMicro 7% NXP 21% Freescale 8% Mitsubishi 7% STM 18% NXP 6% Vishay 6% Renesas 8% Calendar Year 2011. Calendar Year 2010. Calend
Slide 7: Table of Contents
Table of Contents Infineon at a Glance Growth Outlook and Margin Resilience Results and Outlook 03 May 2012 Copyright © Infineon Technologies 2012. All rights reserved. Page 7
Slide 8: New Era: Multiple Factors Driving Demand for Power Semiconductors
New Era: Multiple Factors Driving Demand for Power Semiconductors '90 – '10 '10 – '30 Changes Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content. Courtesy: Tesla Shift towards renewable energies requires orders of magnitude more high-power semis p
Slide 9: Healthy Growth in Global Car Production Expected
Healthy Growth in Global Car Production Expected Global car production (cars ≤ 6t) [units m] CAGR(11-15) = 5.5% 95.1 91.0 85.4 81.2 74.4 76.8 9 70.6 9 67.6 9 59.5 9 17 9 8 16 11 15 11 13 15 8 12 15 13 9 37 39 29 32 34 17 18 28 21 22 21 17 19 20 19 20 21 22 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 10: Rising Semiconductor Value Per Car Drives Market
Rising Semiconductor Value Per Car Drives Market Semiconductor value per car Semiconductor market by segment [USD per car] [USD bn] 228 CAGR Brazil 176 +6.7% 8.4 CAGR Powertrain 5.1 +11.2% 241 CAGR China 189 +6.3% 11.3 CAGR 379 CAGR Safety South Korea 6.7 +10.9% 324 +4.0% 475 CAGR 7.1 Japan CAGR 408
Slide 11: Every Electricity Conversion Step Requires Infineon Components
Every Electricity Conversion Step Requires Infineon Components 1 Generation Grid Consumption Wind AC DC AC DC AC turbine [Hz] Generation to Grid Generation Grid 2 Solar inverter Generation Grid 3 [Hz] Variable speed drive Grid to Consumption Grid Consumption 4 [V] Power supply Grid 50/60 Hz 5 [V] DC
Slide 12: About 10% Growth p.a. for Cycle Average Expected for Infineon
About 10% Growth p.a. for Cycle Average Expected for Infineon ATV IPC + PMM CCS Courtesy: Hyundai ATV growth: IPC + PMM growth: CCS growth: ~10% p.a. > 10% p.a. ~5-7% p.a. Growth target Infineon: ~10% growth p.a. cycle average 03 May 2012 Copyright © Infineon Technologies 2012. All rights reserved.
Slide 13: Target to Sustain 15% Cycle-Average Segment Result Margin
Target to Sustain 15% Cycle-Average Segment Result Margin #1 #2 #3 #4 Infineon's core Semiconductors Value of semis High barriers to competencies: enable high small relative to entry Power and functionality end product eControl ATV IPC PMM CCS Courtesy: Hyundai SR profitability Total target margins
Slide 14: Table of Contents
Table of Contents Infineon at a Glance Growth Outlook and Margin Resilience Results and Outlook 03 May 2012 Copyright © Infineon Technologies 2012. All rights reserved. Page 14
Slide 15: Q2 FY12: Maintained Solid Segment Result Margin
Q2 FY12: Maintained Solid Segment Result Margin Revenue and Segment Result [EUR m] FY 2011 revenue split -1% by product category 1043 1038 994 986 946 20% 20% 19% 15% 15% 202 212 195 Power eControl others 141 144 Q2 Q3 Q4 Q1 Q2 FY11 FY12 Revenue Segment Result Segment Result margin 03 May 2012 Copyr
Slide 16: All-Time-High in Revenues in ATV; Strong Recovery in CCS
All-Time-High in Revenues in ATV; Strong Recovery in CCS Courtesy: Hyundai ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +8% 410 396 425 392 391 -6% -9% 268 256 242 +5% 216 222 227 19% 20% 17% 14% 15% 191 204 196 174 22% 26% 25% 18% 14% 28% 23% 23% 20% 16% 107 107 116 97 112 13% 13% 14% 6% 13% 74
Slide 17: Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011
Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011 Worldwide Automotive Semiconductor Ranking for 2011 9.8% 1. Renesas 13.8% -0.3%-pt 2. Infineon 9.8% +1.0%-pt 8.2% Infineon 3. STM 8.7% +0.4%-pt strengthened 5.7% 4. Freescale 7.9% -0.5%-pt world‘s #2 postion; 5. NXP
Slide 18: Mild-Hybrid Vehicles: New Level of Efficiency Reached by 40µm / 400V IGBT Module
Mild-Hybrid Vehicles: New Level of Efficiency Reached by 40µm / 400V IGBT Module battery breakdown wafer HybridPACK™1 voltage voltage thickness 400V Today: Today: Today: 100 – 400V 650V 70µm Next generation: Next generation: Next generation: 150V 400V 40µm Pdissipation ~ thicknesswafer² i.e. power
Slide 19: Infineon Security Chips for Europe's Biggest Contactless Banking Card Project girogo
Infineon Security Chips for Europe‟s Biggest Contactless Banking Card Project “girogo” girogo key facts 17 April 2012: the German Banking Industry Committee (Deutsche Kreditwirtschaft) launched a new banking card with “girogo” functionality. This banking card allows contactless payment without P
Slide 20: Guidance for Q3 and FY 2012
Guidance for Q3 and FY 2012 Outlook Q3 FY12* Outlook FY 2012* (compared to Q2 FY12) (compared to FY 2011) Revenue to be Low single-digit Revenue broadly flat percentage decline. quarter-on-quarter. previously: Mid single-digit percentage decline. Segment Mid-teens percentage. Result Broadly flat. Ma
Slide 21: Superior Growth and Profitability Allow Sustained Investments Over the Cycle
Superior Growth and Profitability Allow Sustained Investments Over the Cycle Superior growth and profitability Focus on secular growth drivers, e.g. renewables, e-mobility, energy efficiency. Leading market share and competitive strengths. Financial targets (on average over the cycle): ■ 10% g
Slide 22: Infineon
Cinfineon Innovative semiconductor solutions for energy efficiency, mobility and security.
Slide 23: Reasons for Sustainable Profitability - #1 High Barriers to Entry
4 Reasons for Sustainable Profitability ─ #1 High Barriers to Entry Long product System knowhow Strong quality and life cycles and understanding reliability req's Courtesy: Siemens Courtesy: BMW For many markets we Both deep and wide know- Products need to reliably address, deliveries of how a
Slide 24: #2 Semiconductors – Core Enablers of Innovation and Higher Functionality
#2 Semiconductors – Core Enablers of Innovation and Higher Functionality Energy Efficiency Mobility Security Power supplies Recuperation Identification More advanced power Implemented in trains for Chip-based passports and semiconductors allow years; brought to cars by national ID cards allow
Slide 25: #3 Semis Represent a Negligible Part of the Value of the End Product
Semis Represent a Negligible Part of #3 the Value of the End Product Example 1: mid-range car Example 2: high-speed train Courtesy: Volkswagen Courtesy: Siemens €25,000 €10,000,000 EUR 6m Semi BoM: 1.0% Semi BoM: 1.0% of of product product €250 value €100,000 value 03 May 2012 Copyright © Infineon T
Slide 26: #4 Infineon's Core Competencies – Power Semiconductors and eControl
Infineon's Core Competencies ─ #4 Power Semiconductors and eControl Design and manufacturing of Core competence power power semis tightly coupled Thin-wafer technology Super-junction MOSFETs Silicon-Carbide (SiC) IGBT module packaging Manu- facturing Core competence eControl Design Automot
Slide 27: IMM Split Into Two New Divisions as of January 2012
IMM Split Into Two New Divisions as of 1 January 2012 Industrial & Multimarket (IMM) Industrial Power Control (IPC) Power Management & Multimarket (PMM) Industry-oriented applications Power conversion and RF applications Applications Drives and traction Power supplies computer and server H
Slide 28: Pro-Forma Historical Figures for IPC and PMM
Pro-Forma Historical Figures for IPC and PMM IPC PMM [EUR m] 300 28.0% 30% 28.3% 25.6% 25.2% 250 23.1% 23.3% 22.0% 25% 22.8% 18.0% 14.1% 19.9% 200 20% 15.5% 150 15% 268 256 237 242 216 222 227 100 186 191 204 196 10% 174 50 5% 69 64 52 54 47 49 55 54 39 27 40 32 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1
Slide 29: OpEx In-line With Target Operating Model
OpEx In-line With Target Operating Model S and G&A R&D [EUR m] 15% 120 119 118 117 113 114 112 110 110 109 14% 100 106 80 13% 60 12% 40 11% 20 0 10% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY11 FY12 FY11 FY12 General & Administration Selling R&D % of sales 03 May 2012 Copyright © Infineon Technologies 2012. A
Slide 30: Working Capital
Working Capital Working capital* Inventories [EUR m] [EUR m] [days] Q2 FY11 Q3 Q4 Q1 FY12 Q2 80 0 Comparable 400 historical 60 -200 Comparable figures not 40 -400 historical 200 available. figures not 20 -600 available. 0 0 Q2 FY11 Q3 Q4 Q1 FY12 Q2 -800 Inventories DOI* Trade and other receivables T
Slide 31: Investments Remain High to Exploit Growth Potential
Investments Remain High to Exploit Growth Potential Investments* D&A [EUR m] 887 ~ flat Q1 Q2 ~ 440 336 364 325 192 Q3 Q4 103 294 97 FY 2010 FY 2011 Guidance FY 2010 FY 2011 Guidance FY 2012 FY 2012 Guidance for investments: Guidance for D&A: FY13: below investments in FY12 FY13: increase compar
Slide 32: High Gross and Net Cash Position Maintained
High Gross and Net Cash Position Maintained Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 129 114 227 127 191 212 100 101* 169 162 2692 2691 2585 2387 2337 2335 2246 2190 2068 1927 Q2 Q3 Q4 Q1 Q2 FY11 FY11 FY12 * Consists of convertible bond (nominal value EUR 118m; book value
Slide 33: Value Creation of Infineon by Sustainably High RoCE Above WACC
Value Creation of Infineon by Sustainably High RoCE Above WACC RoCE history and capex 100% RoCE 80% FY11: 62% 82% 60% 64% 59% WACC: low teens % 40% FY10: 30% 53% 46% 20% 27% 31% 27% 25% -9% 0% Q1 FY10 Q2 Q3 Q4 Q1 FY11 Q2 Q3 Q4 Q1 FY12 Q2 -20% [EUR m] Capital Employed 2,000 1,760 1,629 1,496 1,456 1,
Slide 34: Average Price Per Underlying Share Below Volume Weighted Average Share Price
Average Price Per Underlying Share Below Volume Weighted Average Share Price Total share buyback history via convertible bond and put options [EUR] [shares m] 8 12 End of Capital Return Program on 10 7.05 4 6.82 3 7 6.81 6.68 6.74 8 6.70 6.40 6.23 6.55 6.27 6.20 31 March 2013. 6 6.25 6 4 2 12 3 2 8
Slide 35: Total Gross Capital Returns
Total Gross Capital Returns Total gross capital returns history [EUR m] 350 308 300 250 109 200 200 26 150 130 100 109 173 26 20 130 20 50 80 16 50 50 50 27 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY11 FY12 FY11 FY12 CB 2014 share buyback (via put options) dividends 03 May 2012 Copyright © Infineon Technologi
Slide 36: 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„ – „Financial investment„ – 'Assets classified as held for sale') – ('Total c
Slide 37: Infineon Has a Long Track Record in Responsibility and Sustainability
Infineon Has a Long Track Record in Responsibility and Sustainability UN Global Compact Initiative Certifications As one of the first semiconductor companies worldwide, Infineon joined the Global Compact Initiative of the United Nations in 2004. Dow Jones Sustainability Index Based on our effort
Slide 38: Financial Calendar
Financial Calendar Date Location Event 5 Jun 2012 Zurich DZ Bank Sustainability Technologies Conference 31 Jul 2012* Q3 FY12 Results 29-30 Aug 2012 Frankfurt Commerzbank Sector Conference Week 13 Sep 2012 London JPMorgan Pan Euro Tech Conference 26 Sep 2012 Munich Baader Investment Conference 14 Nov
Slide 39: Institutional Investor Relations Contact
Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-26153 ulrich.pelzer@infineon.com Joachim Binder Senior Director Investor Relations +49 89 234-25649 joachim.binder@infineon.com Holger Schmidt Manager Investor Re
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