Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q2 FY2015 Earnings Presentation
36 slides from Infineon Technologies's earnings presentation, May 5, 2015
Slide 1: Second Quarter FY 2015 Quarterly Update
Second Quarter FY 2015 Quarterly Update Infineon Technologies AG Investor Relations
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. These statements are based on assumptions and projections resting
Slide 3: Leadership in System Understanding Will Foster Future Growth and Profitability
Leadership in System Understanding Will Foster Future Growth and Profitability Competitive advantages Average-cycle financial targets System leader in Revenue Growth: Automotive ~8% Segment Result Margin: #1 and technology leader in Power ~15% Investment-to-Sales: Leader in Security Solutions ~13% 2
Slide 4: Automotive and Power are the Two Major Pillars of Infineon's Businesses
Automotive and Power are the Two Major Pillars of Infineon‘s Businesses Q2 FY15 revenue*: EUR 1,483m Revenue split by Segment** Power represents ~60% of revenue [EUR m] 598 IPC 464 ATV ~16% PMM ~41% ~31% CCS ~12% 241 182 ATV IPC PMM CCS ** `Other Operating Segments´(OOS) and `Corporate and Eliminati
Slide 5: Infineon is Growing faster than the Market in Automotive and the Clear Leader in Power
Infineon is Growing faster than the Market in Automotive and the Clear Leader in Power Automotive Power Smart card ICs semiconductors semiconductors total market in 2013: total market in 2014: total market in 2013: $2.48bn $27.5bn $15.4bn Infineon Renesas 12.0% 17.8% NXP 32.3% (incl. IRF) Infineon 1
Slide 6: Integration of International Rectifier on Track – First Synergies Realized
Integration of International Rectifier on Track – First Synergies Realized Major achievements since closing Closing on January 13th, 2015 Merging of organizations pro- gresses as planned Realization of synergies progresses as planned First „adding of scope“ and „adding of scale“ opportunitie
Slide 7: Table of Contents
Table of Contents Infineon at a Glance Growth Drivers Results and Outlook 2015-05-05 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 7
Slide 8: Automotive: IFX Holds Leading Positions in System-Crucial Product Categories
Automotive: IFX Holds Leading Positions in System-Crucial Product Categories Infineon’s position 2014 Infineon covers Sensors (#2) 11.5% the entire µC (#3) 8.7% control loop Power (#1) 24.8% 2014 automotive semiconductor market by product category ($27.5bn) “Power” and “Sensors” are among the othe
Slide 9: Infineon AURIX µController is a Crucial Component for Enabling Autonomous Driving
Infineon AURIX™ µController is a Crucial Component for Enabling Autonomous Driving At 2015 CES in Las Vegas, Audi show- cased its self-driving ‘piloted drive’ efforts in an A7 concept car called “Jack”. “Jack” drove 550 miles autonomously from Stanford to Las Vegas. The central driving system “zFAS*
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 Drivers for semiconductor content per car production CO2 reduction ADAS* Comfort, Premium Courtesy: BMW Group Courtesy: AUDI ~4% growth driven by 1st step: premium cars per annum legislation assisted driving
Slide 11: Infineon is #1 and Technology Leader in Power Semiconductors
Infineon is #1 and Technology Leader in Power Semiconductors #1 in the market Infineon is Broadest product and technology portfolio ideally positioned to Addressing broadest range of applications gain further market share 300mm thin-wafer manufacturing for power and earn semiconductors superior marg
Slide 12: World's First Automotive Power MOSFET From 300mm Thin-Wafer Manufactured
World‘s First Automotive Power MOSFET From 300mm Thin-Wafer Manufactured Features Applications Package Infineon is the world’s first power window company to manufacture valve control automotive-grade power MOSFETs door control on 300mm thin-wafers sun roof Thereby, first step to load the
Slide 13: As System Leader in Power Infineon Offers Solutions to a Wide Spectrum of Applications
As System Leader in Power Infineon Offers Solutions to a Wide Spectrum of Applications Covering the entire power chain Consumption Generation Transmission trains motor drive appliances CCAV lighting aviation, smartphone space charger wind power HVDC industrial pumps induction charging power tools cl
Slide 14: Infineon Holds Top Positions in Both MOSFET and IGBT Markets
Infineon Holds Top Positions in Both MOSFET and IGBT Markets Discrete Standard IGBT Module Discrete IGBT MOSFET total market in 2013: total market in 2013: $3.05bn $968m total market in 2013: $5.46bn Infineon Infineon Mitsubishi 26.1% 35.4% 25.6% (incl. IRF) (incl. IRF) Infineon 21.9% Mitsubishi 16.
Slide 15: Infineon's Path to Expand its Market Share for MHA and Light Industrial Applications
Infineon‘s Path to Expand its Market Share for MHA* and Light Industrial Applications Strategic steps 1st step: Increase of shareholding in the Korean joint venture LS Power Semitech (LSPS) from 46% to 66%, thereby benefitting from the close cooperation with Samsung and LG who go for 100% VSD** mo
Slide 16: Expanding Infineon's MEMS Competence: New Digital Barometric Air Pressure Sensor
Expanding Infineon’s MEMS Competence: New Digital Barometric Air Pressure Sensor Features of Digital Pressure Sensor (DPS310) MEMS-based pressure sensor and temperature sensor in one Applications: indoor navigation (shopping malls, parking garages) health, sports, activity tracking weather
Slide 17: Efficiency and Digitalization are Main Market Drivers for Power Applications
Efficiency and Digitalization are Main Market Drivers for Power Applications IPC PMM Renewables Drives Traction MHA AC/DC DC/DC Legislation Energy Growing Energy Energy Energy Growing efficiency population in efficiency efficiency efficiency share of Automation metropolitan Growing
Slide 18: CCS is Well Positioned to Grow Faster Than the Market as Leader in Security Solutions
CCS is Well Positioned to Grow Faster Than the Market as Leader in Security Solutions High-end Mobile Government Payment IoT Security Communications Identification Greater adoption Transition to chip- Adoption of elec- Rise of smart of NFC based payment tronic govern- homes, connected techno
Slide 19: Infineon Supplies Embed. Secure Element Chips to Samsung's Galaxy S6 and S6 edge
Infineon Supplies Embed. Secure Element Chips to Samsung’s Galaxy S6 and S6 edge Infineon eSE chip for Samsung Galaxy S6 and S6 edge Infineon supplies the embedded Secure Element (eSE) chip for Samsung’s new premium smartphones Galaxy S6 and S6 edge. Samsung’s flagship Galaxy S6 and S6 edge mobi
Slide 20: Infineon Supplies TPM Security Controller to Microsoft Surface Pro 3 Tablet
Infineon Supplies TPM Security Controller to Microsoft Surface Pro 3 Tablet Infineon TPM 2.0 for Microsoft Surface Pro 3 Infineon’s OPTIGA™ TPM (Trusted Platform Module) security controller is used in Microsoft Surface Pro 3. Microsoft Surface Pro 3, widely recognized for its excellent performan
Slide 21: Infineon's Long-term Growth is Based on Sustainable Growth Drivers
Infineon‘s Long-term Growth is Based on Sustainable Growth Drivers ATV IPC PMM CCS Courtesy: BMW Group Courtesy: Siemens AG CO2 reduction Energy Energy Security Advanced Driver Efficiency efficiency Mobile payments Assistance Automation Power density Authentication Systems Produc
Slide 22: Table of Contents
Table of Contents Infineon at a Glance Growth Drivers Results and Outlook 2015-05-05 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 22
Slide 23: Q2 Revenue Driven by Integration of IRF, FX Effects, and Strong Growth in CCS
Q2 Revenue Driven by Integration of IRF, FX Effects, and Strong Growth in CCS Revenue and Segment Result [EUR m] +41% 1.483 1.483 199 1.175 1.110 1.128 1.051 1.284 14% 15% 16% 15% 13% 146 170 188 169 198 Q2 FY14 Q3 Q4 FY14 Q1 FY15 Q2 FY15* Q2 FY15* Revenue Segment Result Segment Result Margin * Incl
Slide 24: ATV, IPC and PMM Boosted by Int. Rectifier Businesses; CCS Growth Solely Organic
ATV, IPC and PMM Boosted by Int. Rectifier Businesses; CCS Growth Solely Organic ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +24% 598 +84% 510 518 518 484 464 +30% 300 +50% 271 280 241 252 219 185 200 190 15% 17% 20% 17% 18% 182 14% 14% 13% 14% 11% 142 132 121 123 18% 18% 20% 20% 15% 8% 14% 14%
Slide 25: Guidance for Q3 FY15 and Total FY15
Guidance for Q3 FY15 and Total FY15 Outlook Q3 FY15 Outlook FY15 (compared to Q2 FY15) (compared to FY14) Increase of 36% Increase between Revenue +/- 2%-points 7% and 11% (prev.: „Increase of 12% +/- 2%-points“) At the mid-point of the revenue guidance: Segment At the mid-point of the revenue guida
Slide 26: Infineon
Cinfineon Innovative semiconductor solutions for energy efficiency, mobility and security.
Slide 27: SG&A Ratio Significantly Increased Due to Acquisition-Related Expenses
SG&A Ratio Significantly Increased Due to Acquisition-Related Expenses S and G&A** R&D*** [EUR m] 220 214 200 180 15% 180 160 136 141 140 139 138 136 14% 140 121 122 120 13% 100 80 12% 60 40 11% 20 0 10% Q2 Q3 Q4 Q1 Q2* Q2 Q3 Q4 Q1 Q2* FY14 FY15 FY14 FY15 General & Administration Selling R&D % of sa
Slide 28: Higher Business Volume Leads to an Increase in Working Capital
Higher Business Volume Leads to an Increase in Working Capital Working capital** Inventories [EUR m] [EUR m] [days] 1013 Q2 FY14 Q3 Q4 Q1 FY15 Q2* 1000 100 751 800 674 680 707 755 80 700 490 600 60 500 400 40 300 200 20 100 0 0 Q2 FY14 Q3 Q4 Q1 FY15 Q2* -100 -75 -16 -52 Inventories DOI** Trade recei
Slide 29: FY15 Investments Ratio Including Int. Rectifier is Decreasing Towards 13%
FY15 Investments Ratio Including Int. Rectifier is Decreasing Towards 13% Investments** D&A [EUR m] 1000 30% 887 890 ~800*** 800 ~750 668 20% 600 15.1% 514 453 466 428 378 13.6% 11.9% 364 12.8% 400 325 336 10% 150 199 200 115 141 141 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15e* FY09 FY10 FY11 FY12 FY13
Slide 30: Dividend of €0.18 Has Increased Capital Returns by €202m in February 2015
Dividend of €0.18 Has Increased Capital Returns by €202m in February 2015 Total gross capital returns history [EUR m] 1,053 In November 2013, a 308 new €300m capital returns program with a maturity until Sep 2015 109 was started. 212 202 Per 31 Mar 2015, no put 26 167 options for buyback 164 out
Slide 31: Net Cash Position Turned Negative After Acquisition of International Rectifier
Net Cash Position Turned Negative After Acquisition of International Rectifier Liquidity Development [EUR m] 186 188 190 190 2198 2010 2263 2073 2418 2232 2107 1917 1656 1832 -176 Q2 Q3 Q4 Q1 Q2 FY14 FY15 Gross Cash Debt Net Cash / Net Debt In Q2, gross cash and net cash affected by: payment of
Slide 32: 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% 7% 0% Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2* Capital Employed** history [EUR m] 6000 5202 4000 2969 2239 2274 2216 2159 2194 2232 2327 2452 2000 0 Q1 FY1
Slide 33: 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 –
Slide 34: 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
Slide 35: Financial Calendar
Financial Calendar Date Location Event CCS Analyst Call by Stefan Hofschen, 28 May 2015 Division President Chip Card & Security 28 May 2015 Amsterdam J.P. Morgan Cazenove Investor Forum 02 Jun 2015 Zurich DZ Bank Sustainable Technologies Conference 03 Jun 2015 Copenhagen Danske Bank German Corporate
Slide 36: 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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