Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Q1 FY2022 Earnings Presentation
96 slides from Infineon Technologies's earnings presentation, Feb 3, 2022
Slide 1: First Quarter FY 2022 Quarterly Update
First Quarter FY 2022 Quarterly Update Infineon Technologies AG Investor Relations 1
Slide 2: Infineon at a glance
Infineon at a glance Addressing long-term high-growth trends FY21 revenue by segment Electrification 13% Automotive (ATV) › CO2 saving › Energy efficiency Digitalization Industrial Power Control (IPC) 44% › Cost saving 29% › Productivity Power & Sensor Systems (PSS) › Comfort Connected Secure System
Slide 3: Since 1999, Infineon has grown by more than 10% p.a.
Since 1999, Infineon has grown by more than 10% p.a., thereby consistently outperforming the semiconductor market Revenues CAGR (FY99 – FY21): 10.6% Semiconductor World Market CAGR (FY99 – FY21): 5.8% Profitability1 FY09 – FY11: FY12 – FY14: FY15 – FY17: F18 – FY21: (average Segment Result Margin) 9
Slide 4: Infineon is a global top-10 player, #1 in power semiconductors
Infineon is a global top-10 player, #1 in power semiconductors, and ranked #3 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2020 total market: $473bn1 2020 total market: $20.9bn2 2020 total market: $17.3bn1 Infineon 19.7% Renesas 17.2% Intel
Slide 5: Well-balanced portfolio among key trends Electrification and Digitalization
Well-balanced portfolio among key trends Electrification and Digitalization FY21 revenue of €11,060m by target application industrial and consumer IoT; 7% powertrain ICE; 8% payment, identification, ticketing; 6% xEV (incl. MHEV); 7% other PSS; 2% CSS safety excl. ADAS; 6% industrial; 7% 13% ATV ADA
Slide 6: AURIX TC4x microcontroller family continues success story
AURIX™ – the “gold standard” of Automotive MCUs continues its success story with the recently announced TC4x Current AURIX™ TC2x/TC3x microcontroller family New AURIX™ TC4x microcontroller family › AURIX™ is one of the leading Automotive microcontrollers with more › New AURIX™ TC4x family for next g
Slide 7: AIROC portfolio expansion to support Matter
AIROC™ portfolio expansion to support Matter with multiprotocol solutions including BLE and IEEE 802.15.4 low-power SoC Infineon joins Connectivity Standards Alliance – shaping the future of IoT AIROC™ CYW30739 › Launching the new AIROC™ Bluetooth® Low Energy (BLE) and IEEE 802.15.4 to support Matte
Slide 8: Growing annual revenues by €5bn+ in FY25
Growing annual revenues by €5bn+ in FY25 – multitude of growth drivers across markets/applications; well-diversified divisional split FY21 by division Cum. rev. growth FY21 to FY25e FY25e by division (indicative) by theme CSS CSS 13% 13% ATV 44% ATV Electrification 44% Digitalization €11.1bn €16bn+
Slide 9: Resilient through-cycle Target Operating Model
Infineon’s value creation is crystallized in a resilient through-cycle Target Operating Model Target Operating Model1 Revenue growth 9%+ Segment Result Margin 19% Investment-to-sales 13% 1 Infineon financial performance to approach targets as Cypress integration progresses 2022-02-03 Copyright © Inf
Slide 10: Key levers to get to 19% Segment Result Margin
Key levers identified to get to the target profitability flight level – 19% Segment Result Margin over the (next) cycle Looking back: former TOM achieved Looking ahead: all set up to reach current TOM 19% 17% over the (next) cycle; illustrative FY17 to FY21 COVID Levers for margin expansion Inhibito
Slide 11: Strategic differentiation through in-house manufacturing
Strategic differentiation through in-house manufacturing In-house manufacturing › We manufacture power and sensor technologies in-house where we can gain a strategic advantage from our leading-edge manufacturing technologies and our outstanding process expertise › This results in a differentiation p
Slide 12: We focus our investments to areas with highest differentiation
We focus our investments to those areas with highest differentiation Split of investment-to-sales by category Major focus topics Investment- to-sales › Capacity expansion for SiC and TOM GaN (9%+ | 19% | 13%) › Further capacity expansion for 300 mm in Villach and Dresden ~13% › Further capacity expa
Slide 13: Outlook for Q2 FY22 and FY22
Outlook for Q2 FY22 and FY22 Outlook Q2 FY221 Outlook FY221 Revenue ~ €3.2bn €13.0bn +/- €500m At the mid-point of the revenue guidance: Segment Result Margin ~ 22% ~ 22% Investments in FY22 ~ €2.4bn D&A in FY22 €1.6bn - €1.7bn2 Free Cash Flow in FY22 ~ €1.0bn 1 Based on an assumed average exchange
Slide 14: ESG: targets and achievements
ESG: targets and achievements 14
Slide 15: We contribute a net CO2 reduction of more than 70 million tons
We contribute a net CO2 reduction of more than 70 million tons CO2 burden1 2.2 million tons CO2 savings2 of CO2 equivalents Ratio ~1:33 72.5 million tons of CO2 equivalents Net ecological benefit: CO2 emissions reduction of more than 70 million tons Infineon is excellent in resource efficiency We ar
Slide 16: Excellent in resource efficiency and committed to CO2 neutrality
Infineon is excellent in resource efficiency and committed to CO2 neutrality – sustainability is in our DNA Infineon ranks among the 10 percent most sustainable companies in the world1 In CY20, we used resources in our manufacturing processes much more efficiently than the global average of the semi
Slide 17: High-growth applications offer further CO2 savings potential
High-growth applications offer further additional CO2 savings potential In CY20: Wind energy: Annual installation PV energy: Annual installation capacity increased over 80%1 capacity increase of ~15%2 Net ecological benefit increases over time Drives: Increasing penetration of EVs: Increased sales c
Slide 18: External recognitions confirm our engagement in sustainability
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date CCC to MSCI ESG AA 02/2021 AAA B climate scoring CDP F to A 12/2021 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 02/2022 83 Dow Jones Sustain- Dow Jones Sustainability
Slide 19: Infineon's Wide Bandgap Strategy
Infineon's Wide Bandgap Strategy 19
Slide 20: Leveraging full potential of Si, SiC and GaN
Leveraging full potential based on the power ratings and switching frequency required by the application Comparison of technologies Si › Si remains the mainstream technology › Targeting 25 V - 6.5 kV › Suitable from low to high power SiC › SiC complements Si in many applications and enables new solu
Slide 21: SiC – Infineon is serving all relevant applications
SiC – Infineon is serving all relevant applications Focus applications Customers Industrial power Photovoltaic Transportation Automotive supply Infineon serves > 3,000 customers directly or via distribution EV charging Drives 2022-02-03 Copyright © Infineon Technologies AG 2022. All rights reserved.
Slide 22: SiC – US$ billion revenue in sight
SiC – US$ 1 billion revenue in sight SiC revenue development Infineon’s success factors › Best in class Trench MOSFET on the ~$1bn revenue market › 2nd Gen. CoolSiC™ Trench MOSFET will ~30% market share be launched in FY22 › Broadest portfolio fits customers’ individual needs Automotive >90% › Scala
Slide 23: Cold Split technology reduces raw material losses in SiC
Our Cold Split technology leads to significant reduction of raw material losses during SiC manufacturing # of wafers Cold Split technology Crystal Technology (indexed) SiC boule 1x Boule Sawing Today Grinding Upper half Boule- splitting Traditional wire sawing wastes ~75% of raw material! Epitaxy Wa
Slide 24: Strong CoolSiC portfolio expansion
Strong CoolSiC™ portfolio expansion: by packages and by voltages Broadest and best-in-class SiC portfolio Industrial Automotive grade CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ Hybrid Diode MOSFET Diode Hybrid MOSFET Discrete Discrete Module Discrete IPM Module Discrete Discrete Discrete
Slide 25: SiC and GaN capacity expansion
SiC and GaN capacity expansion to respond to fast growing demand Villach, Austria › 150/200 mm Si lines will be converted to SiC and GaN manufacturing while reusing non specific equipment › → SiC capacity secured in Villach › → GaN scaling-up to volume manufacturing Further expansion in Kulim Kulim,
Slide 26: GaN technology – well positioned to address key markets
GaN technology – Infineon well positioned to address key markets GaN market forecast1 Key values of GaN vs Si Applications [USD m] Higher power density in adapters and chargers CAGR(20 – 25): 76% Focus applications 801 10x > 2% 20% 25% 3x switching more power lower higher power less frequency effici
Slide 27: Infineon's GaN portfolio is seeing increasing demand
Infineon’s GaN portfolio is seeing increasing demand from a broad range of applications GaN for power applications GaN for RF applications › GaN discretes, GaN drivers, integrated power stages (including › GaN power amplifier with frequencies of 2.5 to 2.7 GHz and 8 W the right-fit driver) for 650 V
Slide 28: Automotive
Automotive Infineon
Slide 29: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY21 revenue split by product group [EUR m] CAGR(FY16-FY21): 12.8% memory ICs MCUs 5.000 4,841 25% 4.500 4.000 2,989 3,284 3,503 3,521 3.500 2,656 15% 3.000 2.500 16% 14% 16% 2.000 14% 12% 5% 1.500 1.000 4% 500 sensors 0 -5% FY16 FY17 FY18 FY19 F
Slide 30: Market outlook for ATV division's target applications
Market outlook for ATV division’s target applications Applications Market Outlook for CY22 › Market demand-supply uncertainties to continue into CY22 due to COVID-19 pandemic and component supply limitations › Gradual easing of semiconductor shortages throughout the year expected; risks of further s
Slide 31: Top market position built on system competence
Infineon’s top market position is built on system competence based on an industry-leading product portfolio Automotive semiconductors (2020 total market: $35.0bn) › Strengthened #1 position; increasing distance to #2 Infineon 13.2% › #1 in power semiconductors NXP 10.9% › Undisputed #1 in automotive
Slide 32: Electromobility
Electromobility 32
Slide 33: xEV sales more than doubled in CY21
In CY21, xEV (PHEV + BEV) sales more than doubled yoy reaching ~6.7m units globally and more than 8% penetration +108% +104% +67% +155% 6,750 14.3% [units k] [penetration %] 14.0% 5.6% 3,240 3,407 4.4% 8.4% 8.5% 2,341 2.2% 1,405 1,336 4.2% 668 328 CY20 CY21 CY20 CY21 CY20 CY21 CY20 CY21 Source: Base
Slide 34: The road to emission-free cruising: ICE bans
The road to emission-free cruising: Governments and OEMs indicated when to ban the ICE / Government regulations 2050: Spain, cities with > 50,000 inhabitants: no ICE on the street. 2035: › EU: all new cars zero-emission. 2040: Spain, cities with › China: public transport vehicles to be fully electri
Slide 35: Penetration of PHEV + BEV accelerating; power semi content opportunity
The penetration of PHEV + BEV is accelerating; the incremental content of power semis in xEV is a significant opportunity for Infineon PHEV + BEV annual car production1 2021 average xEV semi content2 Incremental power semi by application [m units] ~$950 ~$890 OBC, DC-DC, BMS, auxiliaries, analog Sep
Slide 36: About every second xEV inverter uses Infineon power semiconductors
For newly produced cars in CY21, about every second inverter for a PHEV or BEV car is equipped with Infineon power semiconductors 2021 PHEV + BEV inverters1 Ex. of OEMs powered by Infineon Examples of SiC design-wins Volkswagen German Luxury OEM Hyundai US OEM new! PHEV and BEV cars in 2021: NIO Min
Slide 37: Automated Driving
Automated Driving Cinfineon
Slide 38: The car of the future is driving digitalization
The car of the future is driving digitalization in many aspects and Infineon provides the ingredients ADAS/AD software-over-the-air infotainment and HMI › object recognition › remote OS updates › seamless digital entertainment › advanced spatial sensing › secure feature upgrades › always-on, secure
Slide 39: AURIX MCU family first-choice automotive architecture
The Infineon AURIX™ MCU family has become the first-choice auto- motive architecture for high-growth and safety-critical applications Infineon AURIX™ revenue development over time Powertrain Classical safety ADAS/AD Domain and zone control › ICE engine management › power steering › camera host contr
Slide 40: Industrial Power Control
Industrial Power Control Cinfineon
Slide 41: IPC at a glance
IPC at a glance IPC revenue and Segment Result Margin FY21 revenue split by product group (indicative) [EUR m] CAGR(FY16-FY21): 7.5% SiC discrete IGBTs 1.800 1,542 25% 1.600 1,323 1,418 1,406 1.400 1,206 1.200 1,072 19% 18% 18% 15% IGBT modules 18% 1.000 15% driver ICs 800 12% 600 5% 400 200 0 -5% I
Slide 42: Market outlook remains positive across most target applications
Market outlook remains positive across most target applications; growth rates returning to normal long term patterns Applications Market Outlook for CY22 (% of FY21 segment revenue) Automation and Drives ~33% › After strong recovery in CY21, growth rates returning to long-term averages Renewable Ene
Slide 43: Clear leader in discrete IGBTs and IGBT modules
Clear leader in discrete IGBTs and IGBT modules; fostering position in IPMs Discrete IGBTs IPMs IGBT modules1 2020 total market: $1.59bn 2020 total market: $1.43bn 2020 total market: $3.63bn Infineon 29.3% Mitsubishi 32.9% Infineon 36.5% Fuji Electric 15.6% onsemi 17.1% Fuji Electric 11.4% Mitsubish
Slide 44: Infineon will benefit from all CO2 saving measures
Infineon will benefit from all CO2 saving measures CO2 (Gt / year) Total savings to be achieved: 35.000 23,000 Gt via Others 30.000 Buildings Fuel switch Hydrogen production Transport ~20% New markets 6,200 Gt 25.000 Transport 8,600 Gt Industry Energy efficiency Wide bandgap 4,900 Gt 20.000 ~30% Hig
Slide 45: Solutions for all links in the energy conversion chain
Infineon provides solutions for all links in the energy conversion chain 2022-02-03 Copyright © Infineon Technologies AG 2022. All rights reserved. 45
Slide 46: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application Upside potential: example solar power 6000 [EUR per MW] 5,000 5000 4000 3,500 3,500 4,200 GW Net Zero Emissions scenario1 3000 2000 2,500 2,000 2,000 1000 0 0 2,400 GW Fossil, nuclear, Wind Solar
Slide 47: Power & Sensor Systems
infineon Power & Sensor Systems
Slide 48: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY21 revenue split by product group [EUR m] other (incl. HiRel) CAGR(FY16-FY21): 9.9% 3.500 3,268 40% 3.000 2,445 2,560 MOSFETs 2,318 30% RF & sensors 2.500 2,041 2,148 (incl. SiC, GaN) 2.000 24% 24% 25% 20% 1.500 23% 20% 1.000 17% 10% 500 0 0% F
Slide 49: Market outlook positive across virtually all target applications
Market outlook positive across virtually all target applications Applications Market Outlook for CY22 (% of FY21 segment revenue)1 Computing › Structural growth driven by cloud computing and to a lesser extent by enterprise servers ~20% › Notebook PC shipments are expected to grow steadily (remote w
Slide 50: PSS growth built on many applications
PSS's growth is built on many applications from different sectors in power and non-power Computing Communications Smartphones Consumer Industrial › data center › base stations › smartphones › eBikes, eScooter › power supplies › enterprise server › backhaul cellular › mobile devices › multicopter › E
Slide 51: PSS – Power
PSS — Power Cinfineon
Slide 52: Clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2020 total market: $8.1bn 2020 total market: $24.3bn Infineon 24.4% Texas Instruments 15.8% onsemi 12.4% Infineon 8.2% STMicro 8.8% Analog Devices 7.2% Toshiba 7.7% Qualcomm 6.4% Renesas 5.1% ST
Slide 53: Data center – AI hyperscaler and edge computing driving growth
Data center – AI hyperscaler and telecom/edge computing are driving the growth Server growth Power requirement per server [units m] Power1: CAGR(20-25): 8% 20 Exponential increase in AI ~3x Training & Networking (ASIC/SoC/FPGA/CPU/ 15 GPU) power level requires cutting-edge innovation in ~1.5x Device
Slide 54: Transition to 5G drives demand in power semis
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station › driver #1: massive growth of data and computing power Massive MIMO DC-DC (MOSFET, ICs) › driver #2: higher number of base stations due to dense network › driver #3: ~4x higher power semi Base s
Slide 55: PSS – RF and Sensing
S N PSS — RF and Sensing Infineon
Slide 56: Main applications addressed by PSS sensors portfolio
Main applications addressed by PSS sensors portfolio MEMS microphone 3D radar (24/60 GHz) 3D ToF image sensor Environmental High Ultra-low Best audio Best price / precision and power performance performance Small form consumption factor Presence Face ID Low power detection/ (biometrics), Measure CO2
Slide 57: Sensor markets targeted by PSS offer attractive growth
Sensor markets targeted by PSS offer attractive growth potential MEMS microphone market Radar IC market (24 GHz and 60 GHz only) [EUR m] 1543 [EUR m] 1433 1480 600 1310 1074 1150 470 340 237 132 143 FY 2021 2022 2023 2024 2025 2026 FY 2021 2022 2023 2024 2025 2026 Source: Infineon estimates Source:
Slide 58: XENSIV MEMS microphones made Infineon #1
Unparalleled audio characteristics of our XENSIV™ MEMS micro- phones made Infineon #1 in 2019 with further m/s gain in 2020 Infineon’s market share development in MEMS microphones (by units) 44.2% 2020 MEMS die market share 35.7% total market: 6.0bn units 34.7% 33.5% 26.5% Infineon 44.2% Knowles 38.
Slide 59: Radar use cases for presence detection and health monitoring
Radar offers several use cases for presence detection and health monitoring Presence detection Health monitoring › Room Occupancy Devices › Sleep monitoring e.g. human localization and counting Sleep detection, sleep quality, apnea & snoring detection (radar combined with MEMS microphone) › Occupanc
Slide 60: 3D ToF is versatile for consumer applications
Infineon 3D ToF is a versatile technology for many consumer applications 3D Gestures Mobile Phones Payment Face ID Hand ID – User Facing 3D Scanning Virtual Retail AR Gaming Mobile Phones Bokeh – World Facing Consumer Navigation avoidance Last Mile Collision Robot Robotics AR Gaming Augmented- & Map
Slide 61: XENSIV PAS CO2 sensor
Infineon XENSIV™ PAS CO2 sensor enables highly-precise CO2 measuring in an extremely small size Photoacoustic spectroscopy (PAS) technology based on Infineon‘s high (SNR) signal-to-noise ratio MEMS microphone › Infineon XENSIV™ PAS CO2 sensor enables highly-precise, cost-effective and space saving C
Slide 62: System solution combining sensors, PSoC 6 MCU and connectivity
Infineon system solution addresses IoT market via combining XENSIV™ sensors, PSoC™ 6 MCU and connectivity Example offering: Combination of sensors, microcontrollers and Key facts connectivity in development kit › Infineon offers system solutions comprising of sensor, MCU, connectivity and software l
Slide 63: Connected Secure Systems
Cinfineon Connected Secure Systems
Slide 64: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY21 revenue split by product group [EUR m] CAGR(FY16-FY21): 14.7% MCUs 1,397 30% 1.400 1.200 974 1.000 703 708 664 20% security ICs 800 19% 642 18% 600 16% 10% 400 12% 13% 13% 200 0 0% FY16 FY17 FY18 FY19 FY20 FY21 connectivity CSS revenue CSS S
Slide 65: Positive outlook for most markets for CY22
Positive outlook for most markets for CY22, while allocation has varying effects on the segments with the strongest impacts on payment Applications Market Outlook for CY22 (not considering supply constraints) (% of FY21 segment revenue) Industrial IoT › Growth momentum in industrial segments to cont
Slide 66: Infineon remains top player in security ICs
Infineon remains top player in security ICs Security ICs (excl. NFC controllers; excl. NFC eSE) Security ICs (excl. NFC controllers; excl. NFC eSE) 2020 total market: $2.8bn 2020 by application others (incl. ticketing, transportation, access Infineon 24.6% control, others); 13% payment; 37% embedded
Slide 67: MCU and software key for success in IoT
MCU and software are key for the success in IoT as they define the functionality and time-to-market of the device Customer expectations Infineon’s MCU offering Hardware › Broad solution-oriented MCU family offering Broad portfolio › Platform strategy for MCU development: Application fit › shared cor
Slide 68: Key enabling technologies to capture growth opportunities
With a broad set of key enabling technologies, Infineon is well positioned to capture growth opportunities Market: Home Automation Customer ex. for wireless smart Devices1 Leading competencies to provide full system solutions cameras and smart door locks [units m] Application understanding CAGR: +20
Slide 69: One-stop-shop for smartwatches, trackers and hearables
Infineon acts as one-stop-shop with excellent RF, sensor, connectivity, power, memory and security solutions Market: Smartwatches, Trackers & Customer examples for smart Hearables1 Acting as one-stop-shop with comprehensive solutions watches and fitness trackers [units m] CAGR: +9% Application under
Slide 70: Driving the smart home opportunity with customers
We are driving the smart home opportunity together with market- shaping customers Combining our portfolio to create new use cases Customer examples for Market: Smart home1,2,3 with our customers smart home [units m] Application understanding CAGR: +16% Ease-of-use 1,946 Software Frame TV Sense Compu
Slide 71: Synergy potential of a combined product portfolio
Significant synergy potential of a combined company product portfolio Synergies application examples CSS offering Other Infineon Divisions offering Smart speaker Smart lighting Service robots Connectivity Connectivity Connectivity Wi-Fi / Bluetooth Combo Wi-Fi / Bluetooth Combo Wi-Fi / Bluetooth Com
Slide 72: Edge AI is a fast developing market
Edge AI is a fast developing market enabled by and calling for many of our core competencies Edge AI to offer additional growth opportunities as inference workloads move to device level Cloud AI Edge AI › Public and private clouds offer scalability › Smart subsystems offer low latency, improved priv
Slide 73: Edge AI enables predictive maintenance in Industrial IoT
For the Industrial IoT, Edge AI enables predictive maintenance and other use cases – playing right into our core competences Predictive maintenance is a significant Edge AI enhances Industrial IoT to enable predictive maintenance, lever for productivity increasing production efficiency and robustnes
Slide 74: Selected financial figures
Selected financial figures 74
Slide 75: Strong presence in all regions; balanced customer portfolio
Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales FY21 revenue by region Revenue by sales channel Distribution partners* Top-10 direct customers* Americas EMEA (excl. Germany) 11% 13% Japan 10% Germany 12% Top-10 direct Distribution
Slide 76: Group financial performance
Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenues Segment result Margin +20% Average exchange rate + 5% Q1 Q4 Q1 3,159 3,007 FY21 FY21 FY22 2,631 2,700 2,722 ø USD/EUR 1.19 1.18 1.14 Order backlog1 [EUR bn] 31 29 23 22.7% 18 20.5% 18.6% 17.4% 18.2% 13 616 717
Slide 77: Automotive (ATV)
Automotive (ATV) Revenues Segment Result Margin [EUR m] [EUR m] +21% +10% 1,390 1,219 1,205 1,267 1,150 261 199 211 185 197 16.7% 18.8% 16.1% 16.2% 16.5% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 › On-going strong demand across applications could be better serve
Slide 78: Industrial Power Control (IPC)
Industrial Power Control (IPC) Revenues Segment Result Margin [EUR m] [EUR m] +6% -6% 412 407 382 362 361 82 72 73 61 59 19.9% 17.7% 19.1% 16.9% 16.3% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 › Typical pattern of seasonal decline pattern in most applications, n
Slide 79: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result Margin [EUR m] [EUR m] +23% +1% 945 955 276 285 779 787 757 197 184 167 29.2% 29.8% 25.3% 23.4% 22.1% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 › Strong demand for all power-related product areas, smartphone c
Slide 80: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result Margin [EUR m] [EUR m] +27% +11% 427 100 386 335 329 346 60 45 47 30 23.4% 13.4% 13.6% 15.5% 9.1% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 › Revenue and segment result improved due to favorable product and
Slide 81: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross profit as reported [EUR m] R&D expenses [EUR m] SG&A expenses Gross margin as reported R&D expenses as % of revenue SG&A expenses as % of revenue 1,312 1,238 399 399 376 373 1,065 341 342 985 972 333 328 330 311 39.1% 41.2% 41.5% 37.4% 36.0%
Slide 82: Return on capital employed
Return on capital employed Historical development 25% 20% 15% 10% 5% 0% FY18 FY19 FY20 FY21 Q1 FY21 Q2 Q3 Q4 Q1 FY22 2022-02-03 Copyright © Infineon Technologies AG 2022. All rights reserved. 82
Slide 83: D&A mainly impacted by Cypress PPA
D&A mainly impacted by Cypress PPA Investments* Depreciation & Amortization ~2,400 [EUR 2400 m] [EUR m] 50% 2200 2000 1800 40% 1.6bn - 1.7bn 1600 1,497 1,513 1,451 1400 1,254 1,260 30% 473 1200 1,099 1,022 293 1000 945 826 833 812 861 87 20% 800 140 103 18.1% 129 ~18,9% 600 16.5% 14.7% 12.8% 14.5% 1
Slide 84: Earnings-per-share and total cash return
Earnings-per-share and total cash return Development of earnings-per-share (EPS) from continuing operations [EUR cent] 36 41 41 35 EPS basic 28 24 27 19 15 18 EPS adjusted Q1 FY21 Q2 Q3 Q4 Q1 FY22 Total cash return to shareholders [EUR m] 336 351 › Proposed dividend for FY21: €0.27 283 305 286 per s
Slide 85: Working Capital, in particular trade working capital components
Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 2,181 2,319 1,955 1,937 2,053 1,007 945 855 711 788 107 101 112 111 113 Q1 FY21 Q2 Q3 Q4 Q1 FY22 Q1 FY21 Q2 Q3 Q4 Q1 FY22 Inventories DIO¹ Trade receivables Trade payables [EUR m] [day
Slide 86: Liquidity development
Liquidity development Historical liquidity development [EUR m] 4,284 3,922 3,863 3,444 3,334 -6,657 -2,373 Q1 Q2 Q3 Q4 Q1 -6,585 -2,663 -6,808 -2,945 -6,703 -3,369 FY21 FY22 -6,859 -3,415 Gross Cash Gross Debt Net Cash/Debt 2022-02-03 Copyright © Infineon Technologies AG 2022. All rights reserved. 8
Slide 87: Maturity profile
Maturity profile Maturity profile from 2022 to 2033 [EUR m; US$ m; nominal values] US PP 2016 Notes (Apr 2024, Apr 2026, Apr Eurobond (Mar 2022) 2028) Term loans (Jun 2024) Hybrid bonds1 (Jan 2025, Jan 2028) Corporate bonds under the EMTN program US PP 2021 Notes (Jun 2027, Jun 2029, (Jun 2023, Jun
Slide 88: Conservative financial policy and investment-grade rating
Conservative financial policy and strict commitment to investment- grade rating are the basis for through-cycle flexibility Financial Policy Targets Status Quo (LTM 31 December 2021) Gross Cash1 €1bn + at least 10% of revenues → €2.2bn €1bn + 28% of revenues → €4.3bn Gross Debt2 ≤ 2.0x EBITDA 2.0x E
Slide 89: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 90: Glossary (1 of 2)
Glossary (1 of 2) ABB accelerated book building ECC error correction code ABS anti-blocking system ECU electronic control unit AC alternating current EPS electric power steering AC-DC alternating current - direct current eSIM embedded subscriber identity module AD automated driving ESS energy storag
Slide 91: Glossary (2 of 2)
Glossary (2 of 2) IVN in-vehicle networking PTC positive temperature coefficient LCD liquid crystal display PV photovoltaic LDO low dropout voltage regulator RF radio frequency LED light-emitting diode rhs right-hand scale LSEV low-speed electric vehicle Si silicon LSPS LS Power Semitech Co. Ltd. Si
Slide 92: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently availa
Slide 93: Financial calendar
Financial calendar Date Event Location 17 Feb 2022 Annual General Meeting virtual 22 Feb 2022 Goldman Sachs Technology & Internet Conference virtual 1 Mar 2022 dbAccess ESG Conference virtual 8 Mar 2022 Morgan Stanley Tech Conference San Francisco 9 Mar 2022 Bernstein Tech Tour 2022 virtual 17 Mar 2
Slide 94: Notes and ESG footnotes
Notes and ESG footnotes 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 –
Slide 95: For further reading
For further reading CMD 2021 IPC Business Update Call ATV Business Update Call 5 October 2021 Dr. Peter Wawer Peter Schiefer 6 May 2021 5 October 2020 https://www.infineon.com/2021cmd https://www.infineon.com/2021ipccall https://www.infineon.com/2020atvcall CSS Business Update Call PSS Business Upda
Slide 96: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Visitor address Executive Vice President Finance, Treasury & Investor Relations Am Campeon 1 – 15 +49 89 234-23766 885579 Neubiberg alexander.foltin@infineon.com Germany Isabell Diel Alexander Groschke Manager Investor Relations Director Inv
Infineon Technologies — Q1 FY2022 Earnings Presentation on 6ix