Second Quarter FY 2015 Quarterly Update
Infineon Technologies AG Investor Relations
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 upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.
Leadership in System Understanding Will Foster Future Growth and Profitability
Automotive and Power are the Two Major Pillars of Infineon's Businesses
*Includes revenues from International Rectifier from 13 January to 31 March 2015.
Infineon is Growing faster than the Market in Automotive and the Clear Leader in Power
Automotive semiconductors incl. semiconductor sensors.
Source: Strategy Analytics, April 2015
| Discrete power semiconductors and |
Microcontroller-based smart |
| power modules. |
card ICs. |
Source:
IHS Inc., September 2014 |
Source: IHS Inc., July 2014 |
Integration of International Rectifier on Track – First Synergies Realized
Major achievements since closing
- Closing on January 13th, 2015
- Merging of organizations progresses as planned
- Realization of synergies progresses as planned
- First "adding of scope" and "adding of scale" opportunities realizing
- Sales and distribution fully integrated ahead of schedule
- Accretive to adjusted EPS from day of closing
Example: expanding our IPM* portfolio for further low-power applications.
Q2 FY15 adjusted EPS: €0.13
* IPM = Intelligent Power Module; modules that combine IGBTs with control and protection circuitry in a single housing.
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
Automotive: IFX Holds Leading Positions in System-Crucial Product Categories
2014 automotive semiconductor market by product category (\$27.5bn)
- "Power" and "Sensors" are among the fastest growing product categories with 11% growth y-y each.
- Infineon increased market share in "Power" by 3.5%-points resulting in market share of 24.8%.
- Infineon's share in "Sensors" driven by pressure and magnetic sensors.
Source: Strategy Analytics, April 2015.
* "others" include: opto, small-signal discretes, logic ICs, non-power analog, memory, and other components.
Infineon AURIX™ µController is a Crucial Component for Enabling Autonomous Driving
At 2015 CES in Las Vegas, Audi showcased its self-driving 'piloted drive' efforts in an A7 concept car called "Jack". "Jack" drove 550 miles autonomously from Stanford to Las Vegas.
The central driving system "zFAS* " ("Sensor fusion ECU") has the size of a notebook.
Infineon's AURIX™ µController makes this sensor fusion ECU 100% reliable.
* zFAS = zentrales Fahrerassistenzsystem = German term for central driver assistance system ("sensor fusion ECU").
Wide Adoption of Premium Features, ADAS and CO2 Reduction Drive ATV's Growth
* ADAS: Advanced Driver Assistance Systems
Infineon is #1 and Technology Leader in Power Semiconductors
1 in the market
Broadest product and technology portfolio
Addressing broadest range of applications
300mm thin-wafer manufacturing for power semiconductors
System leader with digitalization of the control loop and functional integration
Leader in next-generation power semiconductor materials GaN and SiC
Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors
World's First Automotive Power MOSFET From 300mm Thin-Wafer Manufactured
| Features |
Applications |
Package |
Infineon is the world's first
company to manufacture
automotive-grade power MOSFETs
on 300mm thin-wafers |
power window
valve control
door control
sun roof
|
|
Thereby, first step to load the
300mm fabs
with automotive
products done |
pumps
|
|
Initial product: 40V OptiMOS™5
|
|
|
- Thin-wafer technology is key basis for performance improvements:
- brings energy losses to the minimum
- enables very compact designs
As System Leader in Power Infineon Offers Solutions to a Wide Spectrum of Applications
Infineon Holds Top Positions in Both MOSFET and IGBT Markets
Source: IHS Inc., "Power Semiconductor Discretes & Modules Report – 2014", September 2014
Infineon's Path to Expand its Market Share for MHA* and Light Industrial Applications
Strategic steps
- 1st step: Increase of shareholding in the Korean joint venture LS Power Semitech (LSPS) from 46% to 66%, thereby benefitting from the close cooperation with Samsung and LG who go for 100% VSD** motor control.
- 2nd step: Acquisition of International Rectifier. Major product families for MHA*: IRAM and iMOTION.
- 3rd step: Fully consolidation of LSPS, thereby increasing Infineon's footprint in the growing market segment of IPMs*** for consumer appliances and light industrial applications.
- Profitable growth achieved by very competitive manufacturing cost position.
CIPOS™-Mini
Major market developments
- Demand for higher efficiency increases VSD** penetration in home appliances.
- In the US, a decent share of MHA* are overaged; no refurbishment since economic crisis.
- In the US, new energy efficiency legislation for refrigerators and freezers drives VSD penetration for compressors and fans.
- * MHA = Major Home Appliances.
- ** VSD = Variable Speed Drive.
*** IPM = Intelligent Power Module; modules that combine IGBTs with control and protection circuitry in a single housing.
Expanding Infineon's MEMS Competence: New Digital Barometric Air Pressure Sensor
Features of Digital Pressure Sensor (DPS310)
- MEMS-based pressure sensor and temperature sensor in one
- Applications:
- indoor navigation (shopping malls, parking garages)
- health, sports, activity tracking
- weather stations
- Nokia Here and Google are driving indoor maps
- High resolution measurements (+/-5cm): even individual steps can be counted
- First design-wins secured; ramp expected in H2 CY15
DPS310
Efficiency and Digitalization are Main Market Drivers for Power Applications
DPM = Digital Power Management. MHA = Major Home Appliances. VSD = Variable Speed Drive.
CCS is Well Positioned to Grow Faster Than the Market as Leader in Security Solutions
Infineon Supplies Embed. Secure Element Chips to Samsung's Galaxy S6 and S6 edge
Infineon eSE chip for Samsung Galaxy S6 and S6 edge
- Infineon supplies the embedded Secure Element (eSE) chip for Samsung's new premium smartphones Galaxy S6 and S6 edge.
- Samsung's flagship Galaxy S6 and S6 edge mobile devices use the Infineon SLE 97 eSE.
- Infineon's SLE 97 is a SOLID FLASH™ based eSE chip which can safeguard the functionalities of the mobile device as well as transactions where users' sensitive data such as payment credentials are concerned.
Courtesy: Samsung
Infineon Supplies TPM Security Controller to Microsoft Surface Pro 3 Tablet
Infineon TPM 2.0 for Microsoft Surface Pro 3
- Infineon's OPTIGA™ TPM (Trusted Platform Module) security controller is used in Microsoft Surface Pro 3.
- Microsoft Surface Pro 3, widely recognized for its excellent performance both as a tablet and a laptop replacement, utilizes the higher security and improved system management features of the latest TPM 2.0 standard.
- The Infineon OPTIGA™ TPM SLB 9665 series is used in Microsoft Surface Pro 3, supporting a wide range of security needs ranging from strong authentication to platform integrity checks.
Infineon's Long-term Growth is Based on Sustainable Growth Drivers
~8% p.a. through-cycle growth
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
Q2 Revenue Driven by Integration of IRF, FX Effects, and Strong Growth in CCS
ATV, IPC and PMM Boosted by Int. Rectifier Businesses; CCS Growth Solely Organic
* Including International Rectifier from 13 January to 31 March 2015.
Guidance for Q3 FY15 and Total FY15
|
Outlook Q3 FY15
(compared to Q2 FY15) |
|
Outlook FY15
(compared to FY14) |
| Revenue |
Increase
between
7% and
11% |
|
Increase of 36%
+/-
2%-points
(prev.: "Increase
of 12% +/-
2%-points") |
Segment
Result
Margin |
At the mid-point of the revenue
guidance:
15% |
|
At the mid-point of the revenue
guidance:
15%
(previously: "Between
14% and
15%") |
Investments in
FY15 |
|
€800m
About
€750m*")
(previously: "About |
|
D&A in
FY15 |
|
€750m***
About
(previously: "About
€600m") |
|
- * Including International Rectifier and €60m to €70m for Kulim 2 and €21m for Qimonda IP.
- ** Including €60m to €70m for Kulim 2 and €21m for Qimonda IP.
- *** Including D&A on tangible and intangible assets from purchase price allocation of International Rectifier.
SG&A Ratio Significantly Increased Due to Acquisition-Related Expenses
- * Including International Rectifier from 13 January to 31 March 2015.
- ** Target range for SG&A: "Low teens percentage of sales".
- *** Target range for R&D: "Low to mid teens percentage of sales".
Higher Business Volume Leads to an Increase in Working Capital
* Including International Rectifier from 13 January to 31 March 2015. ** For definition please see page 33.
FY15 Investments Ratio Including Int. Rectifier is Decreasing Towards 13%
- * Including International Rectifier from 13 January to 31 March 2015.
- ** For definition please see page 33.
- *** Including International Rectifier, €60m to €70m for Kulim 2, and €21m for Qimonda IP.
Dividend of €0.18 Has Increased Capital Returns by €202m in February 2015
Net Cash Position Turned Negative After Acquisition of International Rectifier
- In Q2, gross cash and net cash affected by:
- payment of purchase price for International Rectifier,
- dividend payment to the amount of €202m,
- positive operating cash flow of €135m, and
- increase in debt by €1.642m.
Target: 'RoCE Above WACC' Over the Cycle
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 liabilities'
- 'Short-term debt and current maturities of long-term debt'
- 'Liabilities classified as held for sale')
RoCE =
NOPAT / Capital Employed =
('Income from continuing operations'
– 'financial income'
– 'financial expense')
/ Capital Employed
Working Capital =
('Total current assets'
- 'Cash and cash equivalents'
- 'Financial investment'
- 'Assets classified as held for sale')
- ('Total current liabilities'
- 'Short term debt and current maturities of long-term debt'
- 'Liabilities classified as held for sale')
DOI (days of inventory; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') * 90 DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90
DPO (days payables outstanding; quarter-to-date) =
('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
All positions in ' ' refer to the
Please note:
respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table.
Infineon is a Long-standing Member of Europe's Leading Sustainability Indices
Infineon's most recent achievements
- January 2015: Infineon is listed in the Sustainability Yearbook for the fifth consecutive year and, according to RobecoSAM, among the top 15% most sustainable companies worldwide.
- 11 September 2014: Infineon was listed in the Dow Jones Sustainability Index for the fifth consecutive year.
September 2014: Infineon was listed in the STOXX® Global ESG Leaders Indices, which serves as an indicator of the quality of Infineon's performance in the governance, social and environmental areas (ESG).
Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then.
Financial Calendar
| Date |
Location |
Event |
28
May 2015 |
|
CCS Analyst Call by Stefan
Hofschen,
Division President Chip Card & Security |
| 28 May 2015 |
Amsterdam |
J.P. Morgan Cazenove
Investor Forum |
02 Jun
2015 |
Zurich |
DZ Bank Sustainable Technologies Conference |
| 03 Jun 2015 |
Copenhagen |
Danske
Bank German Corporate Day |
| 17 Jun 2015 |
Berlin |
Dt. Bank German, Swiss & Austrian Conference |
| 30 Jul 2015* |
|
Q3 FY15 Results |
| 16 Sep 2015 |
|
ATV Analyst Call by Jochen Hanebeck,
Division President
Automotive |
| 22 Sep 2015 |
Munich |
Baader
Investment Conference |
| 23 Sep 2015 |
Munich |
Berenberg
Bank and Goldman Sachs German
Corporate Conference |
11 –
13 Nov 2015 |
Barcelona |
Morgan Stanley TMT Conference |
| 26 Nov 2015* |
|
Q4 FY15 and FY 2015 Results |
* preliminary
Institutional Investor Relations Contacts
Dr. Jürgen Rebel
Corporate Vice President +49 89 234-21626
Investor Relations [email protected]
Joachim Binder
Senior Director +49 89 234-25649 Investor Relations [email protected]
Holger Schmidt
Manager +49 89 234-22332 Investor Relations [email protected]