Infineon Technologies AG · XETR:IFX

Infineon Technologies — HVB German Investment Conference 2005

31 slides from Infineon Technologies's conference presentation, Sep 29, 2005

  1. Slide 1: Infineon German Investment Conference

    HVB Infineon German Investment Conference September 29, 2005 – Munich Peter J. Fischl Executive Vice President & CFO Infineon Technologies AG HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Slide -1-

  2. Slide 2: Disclaimer

    Disclaimer Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that

  3. Slide 3: Table of contents

    Table of contents Group Group Financials Financials Automotive, Automotive, Industrial Industrial & & Multimarket Multimarket Communication Communication Memory Memory Products Products Outlook Outlook HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Sli

  4. Slide 4: Results for Q3 vs. Q2 of FY05

    Results for Q3 vs. Q2 of FY05 [EUR m] Q2 Q2 FY05 FY05 Q3 Q3 FY05 FY05 Change Change Net sales 1,606 1,606 --- Growth Gross margin 27% 16% R&D expenses 354 320 -34 in % of sales 22% 20% SG&A expenses 164 157 -7 in % of sales 10% 10% EBIT -117 -234 -117 EBIT excl. reorganization charges -43 -153 -110

  5. Slide 5: Maintaining a Solid Financial Cash Position

    Maintaining a Solid Financial Cash Position [EUR m] Q1-3 Q1-3 FY05 FY05 June June 30, 30, 2005 2005 [EUR m] Gross Net Total Operating cash cash debt cash flow 789 2,384 312 2,072 Capex (1,135) 634 Other investments (1) 80 690 200 Free cash flow (266) 548 4.25% convertible due Feb. 2007 5.00% convert

  6. Slide 6: Infineon's Commitment to Sustainable Profitability

    Infineon's Commitment to Sustainable Profitability Profitable Q3 Update: 3 Growth ! Fiber-to-the-home optical component activities ! Focus on core (BIDI) sold to Taiwan- New businesses/ based EZconn 2 Organization divesture of non-core ! Corporate Research to be activities integrated in BGs 1 “Quick

  7. Slide 7: Recent Management Changes

    Recent Management Changes Mr. Mr. Kin Kin Wah Wah Loh Loh –– Now Now head head of of BG BG Memory Memory Products Products ! Member of Management Board of IFX AG since 2004 ! President of Infineon Technologies Asia Pacific 1999-2004 ! General Manager of various production sites of Siemens Semi ! 25

  8. Slide 8: Table of contents

    Table of contents Group Group Financials Financials Automotive, Automotive, Industrial Industrial & & Multimarket Multimarket Communication Communication Memory Memory Products Products Outlook Outlook HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Sli

  9. Slide 9: Business Group Automotive, Industrial & Multimarket FQ3 Update

    Business Group Automotive, Industrial & Multimarket FQ3 Update Revenue share Revenues and EBIT margin Q3 FY05 [EUR m] 708 669 631 634 606 625 557 39% 11% 13% 7% 8% 8% 6% 4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY04 FY05 ! Slightly lower revenues due to higher than expected pricing pressure in chip card and security

  10. Slide 10: AIM – Recent Business Highlights (1)

    AIM – Recent Business Highlights (1) ! Automotive Increased market share in car electronics from 8.7% in CY03 to 9.1% in CY04 (Source: Strategy Analytics, June 2005) ! Chip Card & Security ICs IFX to supply secure chips, package and more for German e- Passport ! Asic Design & Solutions Agreement wit

  11. Slide 11: AIM – Recent Business Highlights (2)

    AIM – Recent Business Highlights (2) ! Asic & Design Solutions – Supplier of key components for the Microsoft Xbox 360™ games console: ! a removable solid-state memory unit ! wireless game-pad controller ! an advanced security chip HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies

  12. Slide 12: In Automotive, Infineon Leads the Long-range Route

    In Automotive, Infineon Leads the Long-range Route Outstanding Outstanding performance: performance: #1 #1 in in Europe, Europe, #2 #2 worldwide, worldwide, #3 #3 in in U.S. U.S. " Strong development in Europe IFX products Key applications ! Sensors ! Powertrain " Improved in NAFTA & Japan ! Microco

  13. Slide 13: Infineon strengthened #1 Position in Power Semiconductors

    Infineon strengthened #1 Position in Power Semiconductors and improved to #4 in Industrial Applications Industrial Industrial Semiconductor Semiconductor Market Market IFX IFX Industrial Industrial Products Products 2004 2003 Rank 2004 Rank Company Name ! Power semiconductors Revenue 1 1 Renesas Tec

  14. Slide 14: New Automotive and Industrial Power Fab in Malaysia on Track

    New Automotive and Industrial Power Fab in Malaysia on Track for Ramp-up in 2006 HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Slide -14-

  15. Slide 15: Chip Card and Security ICs Commanding Position Despite Difficult Environment

    Chip Card and Security ICs Commanding Position Despite Difficult Environment Addressing Addressing broad broad application application base base with with ~40% ~40% market market share share Ongoing Ongoing productivity productivity measures measures in in order order to to regain regain profitabili

  16. Slide 16: Table of contents

    Table of contents Group Group Financials Financials Automotive, Automotive, Industrial Industrial & & Multimarket Multimarket Communication Communication Memory Memory Products Products Outlook Outlook HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Sli

  17. Slide 17: Business Group Communication FQ3 Update

    Business Group Communication FQ3 Update Revenue share Revenues and EBIT margin Q3 FY05 [EUR m] 414 419 466 414 390 332 314 3% 1% 3% 4% 0% -16% 20% -5% -30%(1) -16% -28% -43% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY04 FY05 ! Revenues decreased slightly due to pricing pressure and further decline in demand from baseba

  18. Slide 18: COM – Recent Business Highlights

    COM – Recent Business Highlights ! MP-E GPRS/EDGE # one of smallest multimedia phone platform incl. all HW/SW components required for high-performance and advanced multimedia functionality; true 3-chip solution consists of multimedia baseband, power management unit and CMOS RF chip ! ULC # Sampling

  19. Slide 19: CMOS – EDGE & 3G RF Transceivers Already Sampling

    CMOS – EDGE & 3G RF Transceivers Already Sampling, Providing Basis for Low-cost GSM/UMTS Single-chips ! Best ! Best cost cost efficiency efficiency ! Highest production ! Highest production BiCMOS BiCMOS flexibility flexibility CMOS CMOS UMTS UMTS ! No ! No capacity capacity limitation limitation SM

  20. Slide 20: Infineon's Ultra Low-cost Solution Already Sampling to Customers

    Infineon’s Ultra Low-cost Solution Featuring RF/BB Single- chip Already Sampling to Customers $ Single Chip RF/Baseband + High Level of HW Integration $ Significant reduction of manufacturing and test time $ ULC fastest growing GSM segment: 150m units in 2010* 2G Entry Phone E-Gold E-Gold radio radi

  21. Slide 21: Wireline – Strong Positioning in Access Growth Markets

    Wireline – Strong Positioning in Access Growth Markets ADSL for Central Office ADSL2+ for Cust. Prem. Equipment 2004: Significant market share increase - End-to-end strategy 16 16% - 2004: Successful market entry for 14 14% ADSL2+ deployments (ADMtek) Market share [%] ADSL lines [M] 12 12% 10 10% 8

  22. Slide 22: Critical Factors for VDSL2 – Infineon Has it All

    Critical Factors for VDSL2 – Infineon Has it All " Early availability VINAX: 1st fully standard compliant VDSL2 chip solution ! ! IFX: Sole company meeting all regional requirements " Experience ! More than 4 million VDSL1 lines powered by Infineon chip solutions ! Fully ADSL backwards compatible "

  23. Slide 23: Table of contents

    Table of contents Group Group Financials Financials Automotive, Automotive, Industrial Industrial & & Multimarket Multimarket Communication Communication Memory Memory Products Products Outlook Outlook HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Sli

  24. Slide 24: Business Group Memory Products FQ3 Update

    Business Group Memory Products FQ3 Update Revenue share Revenues and EBIT margin Q3 FY05 [EUR m] 811 807 766 643 665 633 659 17% 21% (1) 26% 18% 41% 9% 2% 3% -6% -19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY04 FY05 ! Higher revenues and strong fully loaded cost reduction due to 45% bit- shipment growth based on bit-

  25. Slide 25: MP – Recent Business Highlights

    MP – Recent Business Highlights ! Started 90nm production commercially with 512M DDR and DDR2 in volume ! Increased share of specialty DRAMs e.g. for infrastructure and graphics applications ! Sampling customized 8GB DDR2-400 tall registered DIMMs ! First to provide DDR3 samples with full interface

  26. Slide 26: 300mm Fabs Up and Running, Now Converting to 90nm

    300mm Fabs Up and Running, Now Converting to 90nm IFX IFX memory memory front-end front-end cluster cluster Dresden 200 + 300mm Inotera SMIC Richmond 300mm 200 + 300mm 200 + 300mm Winbond 200 + 300mm 2004 2004 DRAM DRAM market market spread spread on on 300 300 mm mm 300mm IFX IFX memory memory road

  27. Slide 27: Shifting Memory Portfolio to Higher Margin Products

    Shifting Memory Portfolio to Higher Margin Products Graphics Game Game Console Console RAM Mobile Mobile Phone Phone CellularRAM Set Set Top Top Box Box PDA PDA Mobile-RAM MP3 MP3 Player Player Small Outline- DIMM Fully Buffered Tablet Tablet PC PC DIMM incl. AMB DSC DSC RDIMM Router, Router, Switch

  28. Slide 28: Table of contents

    Table of contents Group Group Financials Financials Automotive, Automotive, Industrial Industrial & & Multimarket Multimarket Communication Communication Memory Memory Products Products Outlook Outlook HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Sli

  29. Slide 29: Infineon Business Group F4Q Outlook as of July 26th

    Infineon Business Group F4Q Outlook as of July 26th MP ! Expecting bit-production to increase by ~15% based on additional shipments from Inotera, foundry partners and ramp of Richmond 300. ! Bit-shipments are estimated to increase above market average. ! Continue focusing on expansion of portfolio w

  30. Slide 30: Summary Infineon Group's F4Q Outlook as of July 26th

    Summary Infineon Group's F4Q Outlook as of July 26th Revenues and EBIT: expect firm improvement sequentially R&D and SG&A: should remain roughly at a similar level Capex: expected range for FY05 is EUR 1.3-1.4 bn Depreciation: expected FY05 range approx. EUR 1.3-1.4 bn FY06: Capex and Depreciation r

  31. Slide 31: HVB Conference Munich, 2005-09-29 Slide -31-

    HVB Conference Munich, 2005-09-29 Copyright © Infineon Technologies 2005. All rights reserved. Slide -31-

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