Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2018 Earnings Presentation

87 slides from Infineon Technologies's earnings presentation, Nov 12, 2018

  1. Slide 1: Fourth Quarter FY 2018 Quarterly Update

    Fourth Quarter FY 2018 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Agenda

    Agenda 1 Infineon at a glance 2 Quarterly highlights 3 Automotive 4 Industrial Power Control 5 Power Management & Multimarket 6 Digital Security Solutions 7 Selected financial figures 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 2

  3. Slide 3: Infineon at a glance: strong financials, leading market positions

    Infineon at a glance: strong financials, leading market positions Q4 FY18 revenues by segment FY18 revenues by product category Digital Security [EUR m] 3,284 Solutions (DSS) Automotive 8% (ATV) 2,318 Power Manage- ment & Multi- 1,323 market (PMM) 32% 42% 664 ATV IPC PMM DSS Industrial Power 18% Rev

  4. Slide 4: Infineon's organic revenue development clearly outperformed the total semi market

    Infineon‘s organic revenue development clearly outperformed the total semi market [EUR m] organic CAGR(99-18): ~+9% CAGR(99-18): +5.9% 5,100 (excl. IRF) 6,059 (incl. IRF) 126,895 1,200 296,383 295,996 353,884 392,020 2,701 1,681 2,045 1,821 1,995 2,289 2,366 2,906 2,916 2,128 3,103 3,780 3,774 3,815

  5. Slide 5: Our strategy is targeted at value creation through sustainable organic growth

    Our strategy is targeted at value creation through sustainable organic growth Focus Technology leadership System understanding › Focus on fastest growing › Leverage core competencies › Create value for customers segments of semi market in different end markets to through system under- › Tackle globa

  6. Slide 6: Long platform life-times provide stickiness and visibility

    Long platform life-times in majority of our businesses provide stickiness and visibility ATV – average platform life-time: ~6 years IPC – average platform life-time: ~5 years revenue share revenue share 55% 65% 35% 10% 15% 0% 5% 5% 5% 5% <1 1-3 3-5 5-7 >7 <1 1-3 3-5 5-7 >7 platform life-time in year

  7. Slide 7: Well diversified exposure to end-markets and applications provide resilient growth model

    Well diversified exposure to end-markets and applications provide resilient growth model FY18 revenue of €7,599m by target application smart card solutions embedded security (e.g. government ID, payment); 6% solutions; 3% powertrain excl. xEV; 11% other PMM; 3% xEV 5% DSS industrial; 10% safety excl

  8. Slide 8: Tight customer relationships, based on system know-how and application understanding

    Tight customer relationships, based on system know-how and application understanding ATV IPC PMM DSS EMS partners Distribution partners 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 8

  9. Slide 9: Infineon holds a leading position in its target markets

    Infineon holds a leading position in its target markets Automotive Power discretes Security ICs semiconductors and modules total market in 2017: $3.3bn total market in 2017: $34.5bn total market in 2017: $18.5bn NXP 12.5% Infineon 18.6% Infineon 24.2% Infineon 10.8% ON Semi 9.0% Renesas 10.0% STMicr

  10. Slide 10: Q4 FY18 Group and Division Performance

    Q4 FY18 Group and Division Performance Revenue: Segment Result: Segment Result Margin: IFX €2,047m (+12% y-y) €400m (+22% y-y) 19.5% ATV IPC PMM DSS [EUR m] [EUR m] [EUR m] [EUR m] 811 836 867 +14% 736 770 +10% 651 -10% 573 545 543 580 +18% 328 296 317 349 361 27.8 23.6 181 162 164 175 163 19.6 20.3

  11. Slide 11: Outlook for Q1 FY19 and FY19

    Outlook for Q1 FY19 and FY19 Outlook Q1 FY19* Outlook FY19* (compared to Q4 FY18) (compared to FY18) Decline of 4% Increase of 11% Revenue +/- 2%-points +/- 2%-points Segment At the mid-point of the At the mid-point of the revenue guidance: revenue guidance: Result Margin ~17.5% ~18% Investments in

  12. Slide 12: Outlook for FY19 fully in line with long-term target operating model

    Outlook for FY19 fully in line with long-term target operating model (TOM) Outlook FY19 Long-term (TOM) Revenue growth ~11% ~9% Segment result margin ~18% ~17%+ Investments Investment-to-sales ~15%* €1.6 – 1.7bn › ~€200m for cleanroom and office building › Accelerated growth with investments corresp

  13. Slide 13: New Villach 300 mm module will add significant capacity in power semiconductors

    New Villach 300 mm module will add significant capacity in power semiconductors Key criteria for site selection New 300 mm module › Economies of scale › Time to revenue › Geographic diversification Building space ~60,000 m² Total frontend investment > €1.6bn over 6 years Revenue potential > €1.8bn p

  14. Slide 14: Gross margin potential driven by 300 mm manufacturing

    Gross margin potential driven by 300 mm manufacturing for power and sensors FY25's frontend set-up FY18's frontend set-up 300 mm (already ramped in FY18) high-cost countries high-cost countries 300 mm low-cost low-cost countries countries 300 mm (to be ramped FY18 – FY25) › 300 mm vs. 200 mm: 20% -

  15. Slide 15: Infineon has ~2x the size of next competitor for products feasible for 300 mm

    Infineon has ~2x the size of next competitor with regard to products feasible for 300 mm 2017 revenue split of top-5 power semiconductor player by product category; 2017 total market for discrete power semiconductors and modules: $18.5bn ~$3,500m* MOSFETs Discr. IGBTs IGBT modules** others ~$1,700m

  16. Slide 16: Only limited outsourcing options for high-volume discrete power semiconductors

    Only limited outsourcing options for high-volume discrete power semiconductors available Power-focused foundries represent only In the next five years, the ~15% of total foundry capacity Infineon frontend CRM, CSMC Dongbu ASMC outsourcing share will SSMC Silterra increase from ~22% to TowerJazz X-FA

  17. Slide 17: Agenda

    Agenda 1 Infineon at a glance 2 Quarterly highlights 3 Automotive 4 Industrial Power Control 5 Power Management & Multimarket 6 Digital Security Solutions 7 Selected financial figures 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 17

  18. Slide 18: Two major ATV design-wins based on our P2S approach

    Two major ATV design-wins based on our P2S (Product-to-System) approach Design-win #1: Design-win #2: on-board charger electric power steering platform › Design-win of an on-board charger at › Design-win at a North American tier-1 an European tier-1 for a major OEM’s for electric power steering plat

  19. Slide 19: AURIX µCs and auto-grade security ICs fit domain controller concepts

    AURIX™ µCs and auto-grade security ICs fit perfectly for domain controller concepts GSM, 3G, 4G, LTE Telematics / Connectivity (incl. V2X) Central gateway high-speed backbone bus Powertrain* Safety / ADAS* Body / Chassis* Infotainment* engine management radar door head-up display transmission Lidar

  20. Slide 20: Battery-powered applications (1 of 2): Do-it-yourself tools

    Battery-powered applications (BPA) (1 of 2): Do-it-yourself (DIY) tools Selected Infineon customers Market dynamics › ~150m DIY tools per year › ~3% unit growth p.a. › high growth results from structural trends (see below) › BPAs are PMM’s main revenue driver within the next 5 years Two structural t

  21. Slide 21: BPAs (2 of 2): increasing number of applications secures growth for years

    BPAs (2 of 2): increasing number of applications secures growth for years drones fork lifts others › eBike › eScooter › eRickshaw › electric motorcycle › electric wheelchair › BLDC motors only (no › ~1m forklifts per year › low-speed car brushed motors in use) › 70..100 high-current › golf car › Inf

  22. Slide 22: Acquisition of Siltectra: Deal facts

    Acquisition of Siltectra: Deal facts › Infineon acquired Siltectra GmbH, a start-up company based in Dresden (Germany), for €124m › Siltectra has developed a wafer splitting technology, called Cold Split, which allows to precisely separate crystal material with minimal material losses especially com

  23. Slide 23: Cold Split technology allows splitting of processed SiC wafers

    Cold Split technology allows splitting of processed SiC wafers SiC raw wafer device wafer splitting device dicing processing, (several individual processing, first run steps, see below) second run thin wafer 350 µm reusable wafer thin wafer Cold Split technology deposit cool down remove laser polyme

  24. Slide 24: Automotive

    Automotive 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 24

  25. Slide 25: Infineon's position in the automotive semiconductor universe

    Infineon’s position in the automotive semiconductor universe Automotive semiconductors 2017 total market size: $34.5bn NXP 12.5% Market share trend: Infineon Infineon 10.8% +0.1%-pt benefits disproportionately Renesas 10.0% from the two mega trends TI 8.0% – electro-mobility: power, drivers, µC STM

  26. Slide 26: Infineon is continuously outgrowing the market since 2010

    Infineon is continuously outgrowing the market since 2010 Infineon automotive market share development* [USD bn] CAGR(10-17): +7.3% CAGR(10-17): +10.8% 45 10.8% 12% 10.5% 10.4% 10.7% 9.6% 9.6% 8.7% 9.0% 34.5 30.2 30 27.5 27.4 8% 24.0 25.2 23.5 21.0 15 4% 2.3 2.2 2.4 2.9 2.8 3.2 3.7 1.8 0 0% 2010 201

  27. Slide 27: Clean cars, ADAS/AD, and premium features drive growth

    Clean cars, ADAS/AD, and adoption of premium features drive growth Drivers for semiconductor content per car Vehicle production Electro-mobility Automated Driving Comfort, premium › Legislation Today › Premium cars › Improvements › crash avoidance are early of ICE › ADAS adopters of high-end › ~2% g

  28. Slide 28: Electro-mobility

    Electro-mobility Cinfineon

  29. Slide 29: xEV growth driven by emission regulation; consumer preferences thwart CO2 reduction

    xEV growth driven by emission regulation; but consumer preferences thwart CO2 reduction CO2 emission development and Two consumer trends countervail CO2 regulations for main regions reduction China 2020 : 5 l/100 km (1) SUV share of registered cars in Europe1) CO2 emission values [g/km], normalized

  30. Slide 30: Short-term, MHEV/FHEV/PHEVs first choice; mid-term BEVs preferred

    Short-term, MHEV/FHEV/PHEVs are first choice; mid-term BEVs are preferred solution CO2 emission reduction by powertrain Growth drivers of electro-mobility system + Regulation 120 -15% -30% -77% -100% + Incentives; China industry politics 102 CO2 emission [g/km] + Decreasing Diesel share 84 + Increas

  31. Slide 31: The incremental demand of power semiconductors is a significant opportunity

    The incremental demand of power semi- conductors is a significant opportunity 2018 average xEV semiconductor content by degree of electrification 48 V / MHEV (in 2018) FHEV / PHEV (in 2018) BEV (in 2018) Sense Compute Actuate $95 $750 $25 $740 $300 $455 $75 $0 $475 $20 $375 $15 $375 $5 $20 $120 $80

  32. Slide 32: System cost reduction can justify the higher SiC component price

    System cost reduction can justify the higher SiC component price SiC is charac- Leading to Benefits on system level terized by battery size, battery cost lower higher › smaller battery capacity [kWh] losses efficiency  lower battery costs [$] [RDS(on); Ω] [W] › lower cooling efforts › extended rang

  33. Slide 33: Infineon has unparalleled expertise and portfolio for high-power xEV applications

    Infineon has unparalleled expertise and portfolio for high-power xEV applications Bare dies Discretes Modules Diodes MOSFETs molded frame-based Si will dominate the xEV market Modules will be preferred form SiC throughout next decade* factor in SiC mass market* [by $ value] [by $ value] 100% 100% 50

  34. Slide 34: Infineon offers the complete automotive-grade portfolio of SiC components

    Infineon offers the complete automotive-grade portfolio of SiC components CoolSiC™ Automotive CoolSiC™ Automotive Full SiC module Schottky diode MOSFET HybridPACK™ Drive CoolSiC™ on-board charger on-board charger main inverter ramped ramp in ramp in in 2018! 2019! 2020! › More than 20 leading OEMs a

  35. Slide 35: Automated Driving

    ~ AUTONOMOUS L Automated Driving Infineon

  36. Slide 36: Automated Driving needs more compute power, security and safety

    For Automated Driving more compute power but also a higher security and safety is needed Sense Interpret & decide Act Driver Sensors Controllers, algorithms, Actuators software Camera inside specialized driving Automated car sensor domain processors controller Radar Radar Camera outside sensor Ultra

  37. Slide 37: Increased sensor requirements drive content in the next 5 years and beyond

    Increased sensor requirements drive the content in the next 5 years and beyond More sensors required for any next level of automation NCAP 5 Star, AD L2 AD L3 AD L4/L5 Automatic emergency brake/ forward collision warning Application* Parking assist Valet parking Lane keep assist Highway assist Highw

  38. Slide 38: Infineon opens the door for mass-deployable lidar systems

    Infineon opens the door for mass-deployable lidar systems for Automated Driving Classification of long-range lidar systems solid state optical system mechanically moving mirror scanning optical flash lidar scanning MEMS-based mirror phased array + proven concept + allows optical + no moving parts +

  39. Slide 39: AURIX first-choice µC in the AD platform market

    Outstanding characteristics make AURIX™ first-choice µC in the AD platform market AURIX™ is the market reference as host controller in central computing platforms complementing CPU/GPU to make central computer robust and fail operational AURIX™ Go™ Automated Driving Drive Platform with AURIX™ › Safe

  40. Slide 40: ADAS/AD semi growth driven by radar and camera sensor modules

    ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years Average semi content per car by level of automation at the given years NCAP 5 Star/AD L2 (~2020) AD L3 (~2025) AD L4/L5 (~2030) Sense Compute Actuate $55 $970 $300 $30 $630 $190 $160 $70 $230 $190 $180 $195 $30 $160

  41. Slide 41: Industrial Power Control

    Industrial Power Control Cinfineon

  42. Slide 42: The most comprehensive power portfolio

    To empower this variety of applications we rely on the most comprehensive power portfolio Bare Die Controllers Discretes IPMs IGBTs and Si diodes Driver Modules Solutions SiC MOSFET SiC diodes 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 42

  43. Slide 43: Clear leader in discrete IGBTs and IGBT modules

    Clear leader in discrete IGBTs and IGBT modules; IPMs improved from #4 to #3 Discrete IGBTs IPMs IGBT modules* total market in 2017: $1.10bn total market in 2017: $1.57bn total market in 2017: $2.63bn Infineon 38.5% Mitsubishi 36.4% Infineon 32.6% Fuji Electric 12.0% ON Semi 18.7% Fuji Electric 10.5

  44. Slide 44: Infineon serves all major players for PV inverters and wind turbines

    Infineon serves all major players for PV inverters and wind turbines Infineon is powering all leading renewable IPC revenue in renewables energy players* [EUR m] total 320 – 410 PV inverter2) Wind4) CAGR(17-22): 4.3% - 9.6% 1 | Huawei  1 | Siemens/Gamesa  259 2 | Sungrow  2 | Vestas  232 203 3 |

  45. Slide 45: SiC MOSFETs bring down system cost and size of PV inverters

    SiC MOSFETs bring down system cost and size of PV inverters despite higher component cost Reduction of system cost, higher semi-value Total system cost [$] › 15-20% lower bill of material other for inverter manufacturer (e.g. resistor, other capacitor, › 2-3x higher semiconductor transformer etc.) v

  46. Slide 46: Inverterization of home appliances is a key driver

    Inverterization of home appliances is a key driver for our business Uncontrolled Variable Number of home appliances by motor type2) motor speed drive [units m] CAGR(17-22) Semi content3) 244 585 67 161 (65%) +19% ~€9.50 (25%) (34%) (12%) 474 475 467 317 -7% ~€0.70 (88%) (75%) (66%) (35%) Extended Le

  47. Slide 47: IPC's business success in home appliances

    IPC's business success in home appliances is based on several success factors Early identification of trend for IPC revenue in home appliances inverterization is showing outstanding growth [EUR m] CAGR(14-18): 43% Market access through inorganic growth (acquisit. of LSPS and IRF) Improved delivery c

  48. Slide 48: IPC's digital control strategy enables customers to shrink their system

    IPC's digital control strategy enables customers to shrink their system Example: motor control solution for aircon indoor fan Solution based on Solution based on Solution based on standard IPM CIPOS™ Nano iMOTION™ Smart IPM Customer benefits of highly integrated power ICs › Significant system cost r

  49. Slide 49: Digitalization: motor control platform with scalable HW and SW integration

    Digitalization: motor control platform with scalable integration of HW and SW Adjacent Core Controller Gate driver 3-phase inverter (IGBT) triggers low- translates power signal signal into AC appropriate Motor gate input iMOTION™ Controller iMOTION™ Smart IPM Standard IPM Key benefits System improve

  50. Slide 50: HMI and AI are driving the penetration of cobots

    HMI and AI are driving the penetration of collaborative robots (cobots) System understanding and extended product portfolio allow for growth in adjacent markets 700,000 new cobots by 20251) Advanced ~€350 semiconductor content2) Safe motion control position, force and object per cobot of which sensi

  51. Slide 51: Growing electric vehicle penetration will drive charging infrastructure roll-out

    Growing penetration of electric vehicles will drive roll-out of charging infrastructure power Charging infrastructure market; DC charging charging semi roll-out by rack performance3) system time1) content 350 kW [units k] [USD m] 7 ~$3,500 (6 racks of 60 kW each) min SiC-based CAGR(17-23): 21% 129 1

  52. Slide 52: Electrification of trains is accelerating

    Electrification of trains is accelerating and Infineon is part of two subsystems Subsystem 1: Locomotive Metro HST/ EMU Auxiliary inverter Air conditioning, power sockets, air brake, control stand, etc. Courtesy: Toshiba SiC Trends in traction Electrification Urbanization Strong of freight and new g

  53. Slide 53: Module players will win in SiC with more applications

    With an increasing number of applications, particularly module players will win in SiC SiC power semiconductors SiC power semiconductors by application excl. xEV by product type excl. xEV [USD m] CAGR(17-27) [USD m] CAGR(17-27) CAGR(17-27): 14.8% 1,493 1,493 Others 14.3% Full SiC 29.9% Aerospace/ Mo

  54. Slide 54: Power Management & Multimarket

    Power Management & Multimarket 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 54

  55. Slide 55: PMM's growth is built on many applications

    PMM's growth is built on many applications from different sectors in power and non-power PMM Computing Industrial Consumer / Misc Communications › Data Center › Power supplies › eBikes › Handsets › PC, Notebook › EV on-board › Multicopter › Wearables › Peripherals charger › Aviation › 5G massive MIM

  56. Slide 56: PMM – Power

    PMM - Power Cinfineon

  57. Slide 57: Infineon grew faster than the market; now more than 2x as big as #2

    In 2017, Infineon grew by 15.1% vs market of 13.7%; now more than 2x as big as #2 Discrete power MOSFETs market shares total market in 2017: $6.65bn Infineon 26.3% ON Semi 12.8% Renesas 9.2% Toshiba 7.4% STMicro 6.8% Vishay 5.6% Alpha & Omega 4.6% Nexperia 3.7% Microchip* 2.6% MagnaChip 2.2% * On 29

  58. Slide 58: Technology leadership in MOSFETs and digital power

    Technology leadership in MOSFETs and digital power: highest efficiency and power density Adjacent Core Controller Driver IC MOSFET triggers low-power translates signal into signal to switch on high-current gate input switches on, current flows Power management solutions reduce TCO More efficient sem

  59. Slide 59: Data center solution enables significant opex and capex reduction

    Highly differentiating solution for data center enables significant opex and capex reduction Powerflow (schematic) Customer benefit › reducing opex and VRM capex by >10% AC-DC DC-DC › saving >3bn kWh annually for US data centers PoL › doubling compute power per server rack DC-DC Infineon-enabled opt

  60. Slide 60: AC-DC power supply by Eltek using CoolGaN

    AC-DC power supply by Eltek using CoolGaN™ 1 Eltek "Flatpack2 SHE" › 3 kW / 48 V › Fixed and wireless telecom applications › Size: 4.25 x 1.61 x 13 inch³ › Weight: 4.5 lbs › High power density: 33 W/inch³ 98% efficiency Infineon content per device reduction in › 2x CoolGaN™ 600 V -50% power loss › 2

  61. Slide 61: Server eco-system is supported by PMM's DC-DC solutions

    Server eco-system is supported by PMM's various DC-DC solutions 2 Data center market trends Saving space is a key requirement and a focus of product development Increasing memory and processing power Adoption of AI drives Digital controllers high-end analytics and data with flexible communications i

  62. Slide 62: PMM – RF and Sensing

    - Sn " ") ] Sa wwe PMM — RF and Sensing Infineon

  63. Slide 63: RF and Sensing devices enable new services

    RF and Sensing devices enable new services and will shape the way we live and work Courtesy: BMW Courtesy: eluminocity Augmented Reality Voice-controlled devices Various use cases are enabled by a small set of versatile core technologies Smart streetlights Commercial and consumer Gesture control Ind

  64. Slide 64: We focus on MEMS sensors and target leadership in 3D Imaging and Radar

    We focus on MEMS sensors and target to become the leader in 3D Imaging and Radar Microphone Pressure Enviromental 3D Radar 3D ToF Best-in- World Highest Best-in No class smallest Energy class distortions resolution 6x6mm² form factor Efficiency resolution Receive Measure Measure clear audio Biometri

  65. Slide 65: XENSIV Si microphones have growth opportunities beyond smartphones

    XENSIV™ Si microphones have plenty of growth opportunities beyond smartphones TV, laptop and set- Smart home Smart speaker Robotics top box (appliances) + Extended + + voice Best Highest pick-up speech beam- distance recognition forming precision [units m] 100 Market snapshot: Global smart speaker ›

  66. Slide 66: Leading base technologies for sensor solutions: Time-of-Flight

    Leading base technologies for sensor solutions: Time-of-Flight Time-of-Flight: Modulated infrared-light is emitted and reflected by objects. Phase-shift of returned light is measured in each pixel of the image sensor. Time-of-Flight Infrared illumination 850 nm or 940 nm Resolution: up to 100k pixel

  67. Slide 67: Digital Security Solutions

    Digital Security Solutions 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 67

  68. Slide 68: Security is a system approach

    Security is a system approach Example: Automotive Security › As humans, machines, 'things' are getting connected, the risks of security attacks increase strongly as attack paths increase › Accordingly, there is a greater need for security in fields like smart home, connected cars, information and co

  69. Slide 69: Infineon offers security for the connected world

    Infineon offers security for the connected world 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 69

  70. Slide 70: Continuous stream of new topics aging and exiting

    Continuous stream of new topics aging and exiting maturity emerging growing maturing Pay TV SIM Card  Smart card form factor  Embedded form factor Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Aut

  71. Slide 71: Agenda

    Agenda 1 Infineon at a glance 2 Target operating model (TOM) 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 71

  72. Slide 72: Continuously increasing profitability throughout FY18

    Continuously increasing profitability throughout FY18 Group financials [EUR m] 2,047 1,941 1,820 1,836 1,775 39.8% 38.2% 37.5% 37.2% 36.4% 328 283 314 356 400 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Revenue Segment Result Gross Margin 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights

  73. Slide 73: Organic RoCE as the key value metric typically amounts to ~2x WACC

    Organic RoCE as the key value metric typically amounts to ~2x WACC 30% 20% 10% 0% FY15 FY16 FY17 Q1 FY18 Q2 Q3 Q4 RoCE (excluding PPA, Deferred Tax Effects and RF power sale) RoCE (reported) 2018-11-12 Copyright © Infineon Technologies AG 2018. All rights reserved. 73

  74. Slide 74: Our commitment to investors: Continued value creation through growth

    Our commitment to investors: Continued value creation through growth Development of earnings-per-share (EPS) from continuing operations [EUR cent] 40 40 30 EPS basic 26 27 28 20 24 22 20 22 EPS adjusted 16 18 10 0 Q4 FY17 Q1 FY18 Q2 Q3 Q4 FY18 Total cash return to shareholders [EUR m] 308 2,114 › Po

  75. Slide 75: Opex within target range

    Opex within target range S and G&A* R&D** [EUR m] 227 223 225 210 218 206 205 209 189 195 200 15% 200 175 14% 150 125 13% 100 11.5% 11.4% 12% 75 11.1% 11.3% 11.2% 50 10.8% 11.0% 10.9% 10.9% 11% 25 10.4% 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY17 FY18 FY18 FY17 FY18 FY18 General & Administration Sellin

  76. Slide 76: Working capital positively impacted by increase in payables

    Working capital positively impacted by increase in payables Working capital* Inventories [EUR m] [EUR m] [days] 1,388 1,480 1500 1,240 1,282 1,305 991 120 1000 841 929 712 1000 104 108 80 621 98 102 102 500 500 40 0 0 0 Q4 FY17Q1 FY18 Q2 Q3 Q4 Q4 FY17 Q1 FY18 Q2 Q3 Q4 Inventories DOI* Trade receivab

  77. Slide 77: Investments and D&A trending up due to strong growth

    Investments and D&A trending up due to strong growth Investments* D&A [EUR m] 1800 1,600 – 1,700 1600 30% 1400 1,254 1200 1,022 ~1,000 1000 20% 668 826 833 861 ~90 785 19.6% 760 812 800 140 102 16.5% 514 114 129 600 15.5% 13.5% 14.5% 8 12.8% 13.1% 12.9% 11.5%11.3% 11.9% 10% 400 11.9% 200 506 646 693

  78. Slide 78: Net cash position of ~€1bn

    Net cash position of ~€ 1bn Liquidity development [EUR m] 1,532 1,829 1,789 1,834 1,809 1,011 2,543 2,452 2,312 2,438 2,621 792 618 649 503 Q4 Q1 Q2 Q3 Q4 FY17 FY18 FY18 Gross Cash Debt Net Cash › Operating cash flow from continuing operations was €641m in Q4 FY 2018 › Free Cash Flow from continuing

  79. Slide 79: Balanced maturity profile and solid investment grade rating (BBB) from S&P

    Infineon has a balanced maturity profile and a solid investment grade rating (BBB) from S&P Maturity profile [EUR m; US$ m; nominal values] €500 $350 $350 $235 €171 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Campeon 8-year 10-year 12-year final re- Eurobond USPP USPP USPP payment Mar 2022 Not

  80. Slide 80: Glossary (1 of 2)

    Glossary (1 of 2) AC alternating current ECU electronic control unit AC-DC alternating current - direct current ECU electronic control unit AD automated driving EMU electric multiple unit ADAS advanced driver assistance system EPS electric power steering AEB automatic emergency braking eSIM embedded

  81. Slide 81: Glossary (2 of 2)

    Glossary (2 of 2) IPM intelligent power module PV photovoltaic iPol image processing line RF radio frequency IRF International Rectifier rhs right-hand scale LSEV low-speed electric vehicle Si silicon LSPS LS Power Semitech Co. Ltd. SiC silicon carbide µC microcontroller SiGe silicon germanium MEMS

  82. Slide 82: Disclaimer

    Disclaimer 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 upon currently available information and present estimates. They are

  83. Slide 83: 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 › Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then › Jul 2018: Most recent review › Jan 2018: Infineon is listed in the Sustainabili

  84. Slide 84: Financial calendar

    Financial calendar Date Location Event 14 – 15 Nov 2018 Barcelona Morgan Stanley TMT Conference 27 – 28 Nov 2018 Scottsdale, AZ Credit Suisse TMT Conference 28 Nov 2018 Milan Equita European Conference 28 Nov 2018 Munich UBS German Senior Investor Day Power Presentation (IPC + PMM) by Division 10 –

  85. Slide 85: 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' Please note: All positions in ' ' refer to the – 'Financial investments' respective

  86. Slide 86: Institutional Investor Relations contacts

    Institutional Investor Relations contacts Alexander Foltin Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-23766 alexander.foltin@infineon.com Joachim Binder Isabell Diel Senior Director Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 joachi

  87. Slide 87: Part of your life. Part of tomorrow.

    Part of your life. Part of tomorrow. infineon

Infineon Technologies — Q4 FY2018 Earnings Presentation on 6ix