Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2012 Earnings Presentation

34 slides from Infineon Technologies's earnings presentation, Nov 14, 2012

  1. Slide 1: Fourth Quarter FY 2012 Quarterly Update

    Fourth Quarter FY 2012 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Outlook  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

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q4 FY 2012 revenue: EUR 982m ATV IPC € 416m € 181m PMM CCS € 247m € 126m OOS+ C&E* € 12m * Other Operating Segments; Corporate and Eliminations. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 3

  4. Slide 4: Decreasing Segment Result Margin due to High Investments

    Decreasing Segment Result Margin due to High Investments [EUR m] Q3 FY12 Q4 FY12 FY 2012 Revenue 990 982 3,904 Segment Result 126 116 527 SR Margin 12.7% 11.8% 13.5% [EUR m] Net Income* 82 138 427 990 982 Investment 158 246 890 FCF from cont. -22 47 -219 126 116 operations Gross Cash 2,150 2,235 2,2

  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 Distributors 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 5

  6. 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 12% Infineon 25% Infineon 10% Mitsubishi 8% NXP 24% STMicro 9% Toshiba 7% Samsung 21% Freescale 8% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2011. Calendar year 2

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Outlook  Results and Outlook 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 7

  8. 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

  9. Slide 9: Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy

    Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(11-15) = 4.8% +1.9% 97.3 100.7 92.6 82.4 87.5 76.8 80.9 8 8 74.4 8 9 17 18 9 9 17 59.5 9 8 16 13 15 15 8 12 9 42 44 36 39 28 29 31 33 21 16 19 20 19 19 20 20 21 22 2009 2010 2011 2012 20

  10. Slide 10: Rising Semiconductor Value Per Car Drives Market

    Rising Semiconductor Value Per Car Drives Market Semiconductor value per car by region Semiconductor value per car [USD per car] 329 World 247 323 +2.0% China CAGR 200 +5.4% 2013 2012 223 CAGR Semiconductor market by segment Brazil 184 +4.9% [USD bn] 512 CAGR 8.2 CAGR Japan Powertrain 437 +4.0% 5.6

  11. 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

  12. Slide 12: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Outlook  Results and Outlook 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 12

  13. Slide 13: After Record Revenues in 2011 Sales during 2012 Stay Almost Flat

    After Record Revenues in 2011 Sales during 2012 Stay Almost Flat Revenue and Segment Result [EUR m] FY 2012 revenue split -5% by product category 1,038 986 990 982 946 19% 15% 15% 13% 12% 195 Power eControl others 141 144 126 116 Q4 Q1 Q2 Q3 Q4 FY11 FY12 Revenue Segment Result Segment Result margin

  14. Slide 14: ATV Remains on High Level, Steady Recovery in PMM

    ATV Remains on High Level Steady Recovery in PMM Courtesy: Hyundai ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +5% 425 428 416 396 391 -16% -4% 256 247 216 222 227 233 +9% 196 17% 14% 15% 13% 11% 174 177 181 116 122 126 97 112 25% 18% 14% 14% 15% 23% 20% 16% 15% 14% 14% 15% 14% 13% 6% 66 55 63 5

  15. Slide 15: 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

  16. Slide 16: Increasing Adoption of Infineon's GHz SiGe Technology for Radar Applications

    Increasing Adoption of Infineon‟s 77 GHz SiGe Technology for Radar Applications RASIC serves rapid growth in advanced driver assistance systems  Infineon’s Radar System IC (RASIC™) series consists of a group of highly-integrated functions for 77 GHz automotive radar sensors.  With more than 1m dev

  17. Slide 17: Infineon's Digital Power Management ICs Now Ramping for AC/DC Applications

    Infineon‟s Digital Power Management ICs Now Ramping for AC/DC Applications Enabling high-efficiency AC/DC conversion while reducing system costs  uses digital control algorithms allowing system complexity reduction and flexibility to adapt to rapidly-changing market requirements.  is tailored to o

  18. Slide 18: Integrity Guard nominated for the German Future Prize 2012

    Integrity Guard has been nominated for the "German Future Prize 2012" Integrity Guard – Security for the connected world  Infineon„s innovative Integrity Guard digital security technology has been nominated for the “German Future Prize 2012 - The Federal President`s Award for Innovation and Technol

  19. Slide 19: Guidance for Q1 FY13 and FY 2013

    Guidance for Q1 FY13 and FY 2013 Outlook Q1 FY13* Outlook FY 2013* (compared to Q4 FY12) (compared to FY 2012) Revenue to decline Mid- to high-single digit Revenue by low teens percentage. percentage decline. Segment Between In the mid- to high- Result 4 and 6 percent. single digits. Margin Investme

  20. Slide 20: Infineon

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

  21. Slide 21: OpEx Development

    OpEx Development S and G&A R&D [EUR m] 15% 121 123 119 118 117 119 120 116 110 106 110 14% 100 80 13% 60 12% 40 11% 20 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY11 FY12 FY11 FY12 General & Administration Selling R&D % of sales 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. P

  22. Slide 22: Working Capital

    Working Capital Working capital* Inventories [EUR m] [EUR m] [days] Q4 FY11 Q1 Q2 Q3 Q4 FY12 600 539 546 567 507 521 80 0 400 60 -200 40 -400 -333 200 -353 20 -461 -422 -600 0 0 -663 Q4 FY11 Q1 Q2 Q3 Q4 FY12 -800 Inventories DOI* Trade and other receivables Trade and other payables [days] [EUR m] 73

  23. Slide 23: Investments in FY 2013 to Be Reduced Significantly

    Investments in FY 2013 to Be Reduced Significantly Investments* D&A [EUR m] 887 890 453 ~ 470 ~ 400 428 336 364 325 115 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Guidance * For definition please see page 28 in appendix. 14 Nov 2012 Copyright © Infine

  24. Slide 24: Gross Cash and Net Cash Position Slightly Increased

    Gross Cash and Net Cash Position Slightly Increased Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 114 191 100 101 103 100* 169 195 162 140 2692 2387 2337 2235 2190 2150 2068 1940 1927 1907 Q4 Q1 Q2 Q3 Q4 FY11 FY12 * Consists of convertible bond (nominal value EUR 113m; book va

  25. Slide 25: End of Capital Return Program

    Average Price Per Underlying Share Below Volume Weighted Average Share Price Total share buyback history via convertible bond and put options [shares m] [EUR] 8 12 End of Capital Return Program 10 7.05 4 6.82 3 6,72 7 6.81 6.68 6.74 6,60 8 on 31 March 2013. 6.23 6.70 6.40 6.55 6.276.20 6 6,11 6.25 6

  26. Slide 26: Total Gross Capital Returns

    Total Gross Capital Returns Total gross capital returns history [EUR m] 350 308 300 250 109 212 200 26 150 130 100 109 173 26 130 20 50 20 80 62 16 50 50 12 27 00 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY11 FY12 FY11 FY12 CB 2014 share buyback (via put options) dividends 14 Nov 2012 Copyright © Infineon Technolo

  27. Slide 27: Value Creation of Infineon by Sustainably High RoCE Above WACC

    Value Creation of Infineon by Sustainably High RoCE Above WACC RoCE* history 100% 80% FY11: 62% 82% WACC: low teens % 60% 64% 59% 40% FY10: 30% 46% 53% FY12: 22% 20% 27% 31% 27% 25% 27% -9% 20% 0% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY10 FY11 FY12 Capital Employed* history 2,000 [EUR m] 2,035 1

  28. Slide 28: 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‟ – 'Cash and cash equivalents‟ – 'Financial investments‟ – 'Assets classified as held for sale‟ – ['Total Current l

  29. Slide 29: Worldwide Frontend Production Sites

    Worldwide Frontend Production Sites Regensburg Employees: 1,081 Dresden Employees: 1,767 Temps: 202 Temps: 168 Capacity: 48k WSPM Capacity: 45k WSPM Technology: >200nm Technology: >90nm Complexity: 16 mask layers Complexity: 30 mask layers Products: Power Products: CMOS OOS 4% ATV 47% CCS 1% OOS 1%

  30. Slide 30: Worldwide Backend Production Sites

    Worldwide Backend Production Sites Morgan Hill, USA Warstein, Germany Cegléd, Hungary Employees: 121 Employees: 852 Employees: 531 Competence center High power, R&D High power RF power Wuxi, China Regensburg, Germany Employees: 779 Sensors, chip card, Employees: 1,666 power, wafer level, Chip card,

  31. Slide 31: Investments Driven by Capacity Additions and Maintenance

    Investments Driven by Capacity Additions and Maintenance Breakdown of total investments in FY12 of EUR 890m Capacity Innovation Frontend Backend Quality Maintenance / facility Intangible assets, Others capitalized R&D 14 Nov 2012 Copyright © Infineon Technologies 2011. All rights reserved. Page 31

  32. Slide 32: 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

  33. Slide 33: Financial Calendar

    Financial Calendar Date Location Event 15-16 Nov 2012 Barcelona Morgan Stanley TMT Conference Company Roadshow 20 – 21 Nov 2012 London including presentation by Dr. Helmut Gassel Division President, Industrial Power Control (IPC) 27-28 Nov 2012 Scottsdale, AZ Credit Suisse Technology Conference 06 D

  34. Slide 34: Institutional Investor Relations Contact

    Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President  +49 89 234-26153 Finance, Treasury & Investor Relations  ulrich.pelzer@infineon.com Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 23

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