Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q2 FY2013 Earnings Presentation

33 slides from Infineon Technologies's earnings presentation, May 2, 2013

  1. Slide 1: Second Quarter FY 2013 Quarterly Update

    Second Quarter FY 2013 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  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 u

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q2 FY 2013 revenue: EUR 918m ATV IPC € 424m € 144m PMM CCS € 227m € 108m OOS+C&E* € 15m * Other Operating Segments; Corporate and Eliminations. 2013-05-02 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

  4. Slide 4: Revenue and Segment Result are Recovering

    Revenue and Segment Result are Recovering [EUR m] Q2 FY12 Q1 FY13 Q2 FY13 Revenue 986 851 918 Segment Result 144 44 68 SR Margin 14.6% 5.2% 7.4% [EUR m] Net Income* 111 19 33 918 851 Investment 192 88 65 FCF from cont. -10 -128 73 68 operations 44 Gross Cash 2,190 2,081 2,016 Q1 FY13 Q2 FY13 Revenue

  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 2013-05-02 Copyright © Infineon Technologies AG 2013. 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 9% Mitsubishi 8% NXP 24% STMicro 8% Toshiba 7% Samsung 21% Freescale 7% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2012. Calendar year 20

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook

  8. Slide 8: Despite Europe, Near-Term Outlook Raised; Long-Term Prospects Still Healthy

    Despite Europe, Near-Term Outlook Raised; Long-Term Prospects Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(12-16) = 4.4% 100.3 103.0 +2.2% 96.7 92.7 8,3 8,5 87.5 7,9 7,8 81.5 83.3 7,5 7,9 76.8 6,9 7,9 74.4 6,0 6,3 8,2 17,1 6,6 8,3 16,4 6,3 9,4 8,4 15,6 7,9 15,0 9,1 14,1 12,8 13,4 1

  9. Slide 9: Semiconductor Value-Per-Car Continues to Increase

    Semiconductor Value-Per-Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] [USD] 219 329 CAGR Brazil CAGR World 185 315 +4.4% +4.3% 257 2013 2012 China CAGR 207 +5.6% Semiconductor market by segment 377 CAGR S. Korea 333 +3.2% [USD bn] 8.5 CAGR Powertra

  10. Slide 10: Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation

    Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation Industrial motor controls Market description [USD bn]  Food & beverage, medical & scientific, semiconductor 40 CAGR(11-15) = 11.5% Others machinery, printing sector.  Comparatively low IGBT content. 30  High

  11. Slide 11: Growth in PV Inverter WW Except of EU; Infineon Well Positioned in Chinese Market

    Growth in PV Inverter WW Except of EU; Infineon Well Positioned in Chinese Market PV inverter market China PV Inverter Supplier [GW] Market Shares 2011 ($346m) CAGR(12-16) = 17.4% 60 Sungrow 31.7% 50 Emerson 14.0% Jiangsu Zeversolar 8.1% 40 Guanya Power Equip. 6.0% Anhui EHE 5.5% 30 TBEA Xinjiang Su

  12. Slide 12: Growth in Mobile Devices Compensates Slowdown in PCs and Notebooks

    Growth in Mobile Devices Compensates Slowdown in PCs and Notebooks Smartphones Tablets** [units m] [units m] CAGR(12-16) = 16.4% CAGR(12-16) = 35.1% 1400 500 1200 1283 1189 400 401 1000 1075 932 300 338 800 266 600 700 200 197 400 100 120 200 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 The

  13. Slide 13: Double-digit Growth in Payment and Government ID; SIM Cards Flat

    Double-digit Growth in Payment and Government ID; SIM Cards Flat Smart card ICs Government ID & healthcare [USD bn] [USD m] 4 CAGR(12-16) = 10.1% 1000 CAGR(12-16) = 14.5% 3 750 2 500 1 250 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 SIM Cards Payment & Banking e-National ID e-Passport e-Go

  14. Slide 14: Table of Contents

    Table of Contents  Infineon at a Glance  Market Update  Results and Outlook

  15. Slide 15: Q2 FY13: Sound Recovery After Weak Q1

    Q2 FY13: Sound Recovery After Weak Q1 Revenue and Segment Result [EUR m] FY 2012 revenue split -7% by product category 986 990 982 918 851 15% 13% 12% 5% 7% Power eControl others 144 126 116 68 44 Q2 Q3 Q4 Q1 Q2 FY12 FY13 Revenue Segment Result Segment Result Margin 2013-05-02 Copyright © Infineon T

  16. Slide 16: ATV Has Returned to Normal Levels; Turn Around in IPC; Stable Revenues in PMM

    ATV Has Returned to Normal Levels; Turn Around in IPC; Stable Revenues in PMM Courtesy: Daimler AG ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] 0% 425 428 416 424 377 -17% 0% 247 227 233 222 227 -4% 174 177 181 15% 13% 11% 5% 9% 138 144 14% 14% 15% 10% 12% 112 122 126 108 108 16% 15% 14% -4% -2%

  17. Slide 17: Automotive: Infineon New Number 1 in Fastest-Growing Region APAC

    Automotive: Infineon New Number 1 in Fastest-Growing Region APAC World Europe APAC & others* ($23.90bn) ($8.04bn) ($5.70bn) 1. Renesas 14.2% 1. Infineon 13.0% 1. Infineon 9.4% 2. Infineon 9.1% 2. Bosch 11.3% 2. STMicro 9.4% 3. STMicro 7.9% 3. STMicro 10.0% 3. Renesas 9.0% 4. Freescale 7.0% 4. TI 8.4

  18. Slide 18: Infineon Strengthens Foothold in the Growing Chinese Renewables Market

    Infineon Strengthens Foothold in the Growing Chinese Renewables Market Cooperation with Sungrow Orders for PrimePACK™  In April, Infineon signed a strategic  Separately, as part of the rapid cooperation with Sungrow. buildup of solar and wind power  Sungrow ranked as largest China- generation in

  19. Slide 19: Infineon is Gaining Market Share in the Fast Growing Si-MEMS-Microphone Market

    Infineon is Gaining Market Share in the Fast Growing Si-MEMS-Microphone Market Market development Target applications [units m] Handsets 2500 40% 66% +57% 31% others 2000 Tablets 30% 4% Headsets Laptops 7% 11% 12% 1500 20% 20% +146% 1000 Ranking 2012 10% 10% 500 6% Knowles 58% Infineon 31% 1303 2048

  20. Slide 20: Guidance for Q3 FY13 and FY 2013

    Guidance for Q3 FY13 and FY 2013 Outlook Q3 FY13* Outlook FY 2013* (compared to FY 2012) Upper end of guidance range: Revenue About 1 billion Euro. Mid-to-high single digit percentage decline. Segment Upper end of guidance range: Approximately Result Segment Result Margin in 10 Percent. Margin the m

  21. Slide 21: Infineon

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

  22. Slide 22: Revenue Increase Brought Opex-to-Sales-Ratio Back to Normal Levels

    Revenue Increase Brought Opex-to-Sales- Ratio Back to Normal Levels S and G&A R&D [EUR m] 15% 121 123 123 122 120 117 119 116 108 102 110 14% 100 80 13% 60 12% 40 11% 20 0 10% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY12 FY13 FY12 FY13 General & Administration Selling R&D % of sales 2013-05-02 Copyright © Inf

  23. Slide 23: 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] [days] 521 546 567 585 573 Q2 FY12 Q3 Q4 Q1 FY13 Q2 600 100 0 80 -17 400 -117 60 -200 200 40 -400 20 -333 -353 -422 0 0 Q2 FY12 Q3 Q4 Q1 FY13 Q2 -600 Inventories DOI* Trade and other receivables Trade and other pa

  24. Slide 24: 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 ~ 400 428 364 325 336 115 116 65 88 116 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1 Q2 Full Year Guidance * For definition please see page 31. 2013-05-02 Copyright © I

  25. Slide 25: Gross Cash and Net Cash Position Lower in Q2 FY13 Due to Dividend

    Gross Cash and Net Cash Position Lower in Q2 FY13 Due to Dividend Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 101 100 103 102 195 104* 162 140 211 207 1927 2190 1927 2150 1907 1907 2235 1940 1940 2081 1768 1768 2016 1705 1705 Q2 Q3 Q4 Q1 Q2 FY12 FY13 * Consists of convertibl

  26. Slide 26: Average Price Per Underlying Share Below VWAP

    Average Price Per Underlying Share Below Volume Weighted Average Price (VWAP) Total share buyback history via convertible bond and put options [shares m] [EUR] 8 12 Program on 31 March 2013. 10 7.05 4 3 6.82 6.81 7 6.68 6.74 6.72 End of Capital Return 8 6.60 6.51 6.51 6.23 6.70 6.40 6.55 6.27 6.20 6

  27. Slide 27: Total Gross Capital Returns of EUR 687m Between 2011 and Q2 FY13

    Total Gross Capital Returns of EUR 687m Between 2011 and Q2 FY13 Total gross capital returns history [EUR m] 350 308 300 250 109 212 200 26 167 150 130 100 129 109 173 26 130 129 20 50 20 80 62 16 50 50 12 27 0 38 38 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY11 FY12 FY13 FY11 FY12 FY13 CB 2014 share buyback

  28. Slide 28: Target: 'RoCE Above WACC' Over the Cycle

    Target: ‘RoCE Above WACC’ Over the Cycle RoCE* history 100% 80% FY11: 62% 82% 60% WACC: low teens % 64% 59% 40% FY10: 30% 46% 53% FY12: 22% 20% 27% 31% 27% 25% 27% 7% -9% 20% 5% 0% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY10 FY11 FY12 FY13 Capital Employed* history 2,500 [EUR m] 2,239 2,274

  29. Slide 29: Infineon is a Long-Standing Member of Europe's Leading Sustainability Indices

    Infineon is a Long-Standing Member of Europe’s Leading Sustainability Indices Dow Jones Sustainability Index FTSE4Good Index  Infineon is member of the Dow Jones Sustainability Index since 2010.  Infineon is currently Europe’s one and only semiconductor company member in the Dow Jones Sustainabili

  30. Slide 30: 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  Infineon was one of the first semi- conductor companies worldwide, joining the Global Compact Initiative of the United Nations in 2004. Non-financial reporting  Infineon implemented a

  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’ – 'Cash and cash equivalents’ – 'Financial investments’ – 'Assets classified as held for sale’ – ('Total Current l

  32. Slide 32: Financial Calendar

    Financial Calendar Date Location Event 04 – 05 Jun 2013 San Francisco Bank of America Merrill Lynch Global Tech Conference Conference Call by Stefan Hofschen 11 Jun 2013 Division President, Chip Card & Security 18 Jun 2013 London JPMorgan CEO Conference 30 Jul 2013* Q3 FY13 Results 28 Aug 2013 Frank

  33. Slide 33: 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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