Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2014 Earnings Presentation

34 slides from Infineon Technologies's earnings presentation, Nov 27, 2014

  1. Slide 1: Fourth Quarter FY 2014 Quarterly Update

    Fourth Quarter FY 2014 Quarterly Update Infineon Technologies AG Investor Relations

  2. 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

  3. Slide 3: Average Cycle Financial Targets

    Average Cycle Financial Targets Historical Going forward CAGR(99-14) = ~9% Revenue Growth: FY99 FY02 FY04 FY06 FY08 FY10 FY12 FY14 ~8% 20% 15% 14.4% Segment Result Margin: 10% 5% 0% FY10 FY11 FY12 FY13 FY14 ~15% 25% 20% 15% 15.1% Investment-to-Sales: 10% 5% 0% FY09 FY10 FY11 FY12 FY13 FY14 ~13% 2014

  4. Slide 4: Revenue Split by Division

    Revenue Split by Division Q4 FY 2014 revenue: EUR 1,175m ATV IPC €518m €219m Courtesy: BMW Group CCS PMM €142m €300m OOS+C&E* €-4m * Other Operating Segments; Corporate and Eliminations. 2014-11-27 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4

  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 EMS partners Distribution partners 2014-11-27 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 5

  6. Slide 6: Infineon Holds Top Positions in All Major Product Categories

    Infineon Holds Top Positions in All Major Product Categories Automotive Power Smart card ICs semiconductors semiconductors total market in 2013: total market in 2013: total market in 2013: $2.48bn $25.1bn $15.4bn Renesas 13.3% Infineon 12.3% NXP 32.3% Infineon 9.6% Mitsubishi 7.2% Infineon 21.7% STM

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-11-27 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 7

  8. Slide 8: Growth in Car Production and Content-per-Car Continues Unabated

    Growth in Car Production and Content-per- Car Continues Unabated Global car production (cars ≤ 6t) Semiconductor value per car [units m] [USD] CAGR(13-17) = 3.5% World 369 CAGR 327 +2.4% +3.2% +3.4% 97.3 93.7 90.4 6.4 84.7 87.4 6.3 5.7 5.9 8.1 230 CAGR 6.0 8.6 8.1 Brazil 9.2 14.7 200 +2.8% 9.0 13.9

  9. Slide 9: In 2013, Infineon Gained Market Share in All Addressed Product Categories

    In 2013, Infineon Gained Market Share in All Addressed Product Categories 2013 automotive semiconductor  “Power” and “Sensors” were the fastest market by product category ($25.1bn) growing product categories with 8% and 7% growth y-y, respectively. Processor Power 25%  Infineon remained market lea

  10. Slide 10: In Addition to Powertrain, AURIX Is Gaining Traction in Safety Applications

    In Addition to Powertrain, AURIX™ Is Gaining Traction in Safety Applications  Increasingly complex applications and more stringent requirements on functional safety fuel transition from 16-bit to 32-bit microcontrollers.  AURIX™ continues TriCore™-based success story in powertrain applications: de

  11. Slide 11: 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 Semiconductor content per car production CO2 reduction ADAS* Comfort, Premium Courtesy: BMW Group Courtesy: Bosch Courtesy: Bosch ~4% p.a. 2 – 4% p.a. ATV: ~8% p.a. * ADAS: Advanced Driver Assistance Systems. Source

  12. Slide 12: Increasing Inverterization Drives Demand for Power Semis in Home Appliances

    Increasing Inverterization Drives Demand for Power Semis in Home Appliances RC-H5 CIPOS™ Penetration of VSD*  Biggest home appliances market for IGBT modules is air conditioning. [units m] 2011 2016 CAGR  Efficiency programs led and still lead electric motor-based 420 514 4% to higher VSD* penetra

  13. Slide 13: Drives, Home Appliances and Others Show Strongest Growth Rates

    Drives, Home Appliances and Others Show Strongest Growth Rates Home Drives Renewables Traction Others Appliances Expected growth of market segments ~10% p.a. > 5% p.a. ~5% p.a. > 10% p.a. > 10% p.a. IPC: ~10% p.a. Sources: IHS Inc., Infineon. All figures refer to mid-term compound annual growth rate

  14. Slide 14: System Understanding Becomes Key Success Factor for Next-Gen Si-Mic Design

    System Understanding Becomes Key Success Factor for Next-Gen Si-Mic Design Trends for higher number of silicon microphones Silicon microphone  Acoustic performance becomes differentiator and enabler for new capabilities, e.g. command recognition, driving number of microphones per device (up to four

  15. Slide 15: PMM Aims to Outgrow Its Core Markets

    PMM Aims to Outgrow Its Core Markets Power Management Mobile Communications Computing Charger Lighting Mobile devices Cell. infrastructure Expected growth of market segments > 7% p.a. > 7% p.a. PMM: ~10% p.a. Sources: IHS Inc., ABI Research, Infineon. All figures refer to mid-term compound annual gr

  16. Slide 16: Strong Growth in Payment Business; Design-wins in Government ID Projects

    Strong Growth in Payment Business; Design-wins in Government ID Projects Strong momentum for Worldwide government ID Infineon’s payment business projects in all major applications  Payment business grew by ~50% year-  Infineon won contracts for government on-year in FY14. ID projects in several Eu

  17. Slide 17: CCS is Well Positioned to Grow Faster Than the Market

    CCS is Well Positioned to Grow Faster Than the Market High-end Mobile Government Payment IoT Security Communications Identification Expected growth of market segments ~0% p.a. ~5% p.a. ~10% p.a. ~20 - 25% p.a. CCS: 6 – 9% p.a. All figures refer to security microcontrollers. Sources: IHS Inc., Infine

  18. Slide 18: Expected Growth Broadly In Line With Historical Averages

    Expected Growth Broadly In Line With Historical Averages ATV IPC PMM CCS Courtesy: BMW Group Courtesy: Siemens AG ~8% p.a. ~10% p.a. ~10% p.a. 6-9% p.a. Infineon: ~8% p.a. Sources: IHS Inc., Strategy Analytics, ABI Research, Infineon. All figures refer to mid-term compound annual growth rate of the

  19. Slide 19: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers  Results and Outlook 2014-11-27 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 19

  20. Slide 20: Q4 FY14 Was Sixth Consecutive Quarter of Year-On-Year Growth

    Q4 FY14 Was Sixth Consecutive Quarter of Year-On-Year Growth Revenue and Segment Result [EUR m] +12% FY 2014 revenue split 1.175 by product category 1.110 1.053 1.051 984 14% 12% 14% 15% 16% Power embed. Control RF others 148 116 146 170 188 Q4 FY13 Q1 FY14 Q2 Q3 Q4 FY14 Revenue Segment Result Segme

  21. Slide 21: Strong Q-Q-Growth in IPC, PMM and CCS; ATV Stable Q-Q on High Revenue Level

    Strong Q-Q-Growth in IPC, PMM and CCS; ATV Stable Q-Q on High Revenue Level ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +14% 510 518 484 455 452 +11% +11% 300 271 271 252 238 +10% 219 197 200 20% 179 185 18% 17% 13% 12% 14% 14% 13% 15% 142 12% 129 121 123 108 17% 15% 18% 20% 20% 9% 8% 14% 6% 7%

  22. Slide 22: Guidance for Q1 FY15 and FY 2015

    Guidance for Q1 FY15 and FY 2015 Outlook Q1 FY15 Outlook FY 2015 (compared to Q4 FY14) (compared to FY 2014) Decline between Increase of 8% Revenue 5% and 9% +/- 2%-points Segment Between About 14% Result 10% and 13% (At the mid-point of the Margin revenue guidance) Investments in FY 2015 About €700

  23. Slide 23: Increase of Dividend by 6 €-Cents Will Be Proposed by Management at Coming AGM

    Increase of Dividend by 6 €-Cents Will Be Proposed by Management at Coming AGM Dividend payments [€-Cents] 18  Investment-to-sales ratio reduced from ~15% towards ~13%.  Higher sustainable level of Free Cash 12 12 12 Flow frees up more cash for increased 10 dividends. Coming AGM takes place on 12

  24. Slide 24: Infineon

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

  25. Slide 25: Opex-to-Sales-Ratio Well Within Target Range

    Opex-to-Sales-Ratio Well Within Target Range S, G&A1) R&D2) [EUR m] 138 140 141 140 140 133 136 15% 121 122 120 115 114 14% 100 80 13% 60 12% 40 11% 20 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY13 FY14 FY14 FY13 FY14 FY14 General & Administration Selling R&D % of sales [rhs] 1) Target range for SG&A: „L

  26. Slide 26: DOI, DSO and DPO in Line With Our Targets

    DOI, DSO and DPO in Line With Our Targets Working capital* Inventories [EUR m] [EUR m] 707 [days] 654 674 680 Q4 FY13 Q1 FY14 Q2 Q3 Q4 FY14 609 100 0 600 80 -16 400 60 -50 40 -52 200 -75 20 -100 -92 0 0 -123 Q4 FY13 Q1 FY14 Q2 Q3 Q4 FY14 -150 Inventories DOI* Trade receivables Trade payables [EUR m]

  27. Slide 27: Pro Forma Gross Cash and Net Cash Including International Rectifier

    Pro Forma Gross Cash and Net Cash Including International Rectifier Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 0* 108 38 0 0 186 195 193 188 190 ~1.700 ~400 ~2100 2286 1983 2279 2048 2198 2010 2263 2073 2418 2232 Q4 FY13 Q1 FY14 Q2 Q3 Q4 FY14 Q4 FY14 Pro forma** * The remai

  28. Slide 28: Proposal of Dividend of €0.18 Will Increase Capital Returns by €202m in February

    Proposal of Dividend of €0.18 Will Increase Capital Returns by €202m in February Total gross capital returns history [EUR m] 1,053  In November 2013, a 350 new €300m capital 308 returns program with a 300 maturity until Sep 2015 was started. 250 109  Per 30 Sep 2014, put 212 202 options for buybac

  29. Slide 29: Target: 'RoCE Above WACC' Over the Cycle

    Target: 'RoCE Above WACC' Over the Cycle RoCE* history WACC: low teens % 30% FY12: 22% FY14: 20% 20% 27% 27% 25% 20% 27% FY13: 14% 21% 24% 24% 17% 10% 16% 5% 7% 0% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Capital Employed* history 2,500 [EUR m] 2,239 2,274 2,216 2,194 2,232 2,327 2,452 2,0

  30. Slide 30: FY15 Investments Ratio excl. Kulim 2 and Qimonda IP Would Be Down to ~13%

    FY15 Investments Ratio excl. Kulim 2 and Qimonda IP Would Be Down to ~13% Investments* D&A [EUR m] 1000 30% 887 890 800 ~700** 668 20% ~600 600 15.1% 15.0% 514 453 466 428 12.9% 378 11.9% 364 400 325 336 10% 200 115 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15e FY09 FY10 FY11 FY12 FY13 FY14 FY15e Q1 Q2 Q

  31. Slide 31: 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 –

  32. Slide 32: 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 2014: Infineon is indicator of the quality of Infineon’s listed in the Sustai

  33. Slide 33: Financial Calendar

    Financial Calendar Date Location Event 02 – 03 Dec 2014 Scottsdale, AZ Credit Suisse TMT Conference 29 Jan 2015* Q1 FY15 Results 12 Feb 2015 Munich Annual General Meeting 05 May 2015* Q2 FY15 Results 30 Jul 2015* Q3 FY15 Results 26 Nov 2015* Q4 FY15 and FY 2015 Results * preliminary 2014-11-27 Copyr

  34. Slide 34: Institutional Investor Relations Contact

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

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