AI Terminal
Infineon Technologies AG
Earnings Release • Aug 3, 2022
222_10-q_2022-08-03_cb149ae1-e537-4f66-b76b-7da1470e2ff8.pdf
Earnings Release
Open in ViewerOpens in native device viewer
Pr e s s Re l e a s e
Successful third quarter; strong revenue growth especially in the Automotive segment; further increases in revenue and earnings expected in the fourth quarter
- Q3 FY 2022: Revenue €3.618 billion, up 10 percent on the preceding quarter and 33 percent year on year; Segment Result €842 million; Segment Result Margin 23.3 percent; Free Cash Flow €440 million
- Outlook for Q4 FY 2022: Based on an assumed exchange rate of US\$1.05 to the euro, revenue of around €3.9 billion is predicted. On this basis, the Segment Result Margin is expected to be about 25 percent
- Outlook for FY 2022: Based on the outlook for Q4 FY 2022, revenue for the full 2022 fiscal year is expected to reach around €14 billion (previous forecast: €13.5 billion). On this basis, the Segment Result Margin is expected to exceed 23 percent (previously expected to exceed 22 percent). Investments of around €2.4 billion are planned (unchanged). Free Cash Flow is expected to reach about €1.4 billion (previous forecast: about €1.1 billion)
Neubiberg, 3 August 2022 – Today, Infineon Technologies AG is reporting results for the third quarter of its 2022 fiscal year (period ended 30 June 2022).
"In a difficult macroeconomic climate, Infineon continues to be well on the way thanks to its differentiating portfolio," said Jochen Hanebeck, Chief Executive Officer of Infineon. "Increases in energy costs, raw material prices and interest rates, the continuing pandemic and geopolitical uncertainties are all impeding economic growth. In some consumer-oriented end markets demand has recently weakened. We are keeping a close eye on market developments and are prepared to act swiftly. However, the structural drivers decarbonization and digitalization continue to cause high demand for semiconductors. The global trend towards electromobility persists. Many countries are now seeking to secure independent energy supplies, which will further accelerate the expansion of renewable energy. We are also benefiting from continuing high levels of investment in communications infrastructure, data centers and cloud computing."
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions (unless otherwise stated) | 3 months ended 30 Jun 22 |
sequential +/- in % |
3 months ended 31 Mar 22 |
year-on year +/- in % |
3 months ended 30 Jun 21 |
|---|---|---|---|---|---|
| Revenue | 3,618 | 10 | 3,298 | 33 | 2,722 |
| Segment Result | 842 | 11 | 761 | 70 | 496 |
| Segment Result Margin (in %) | 23.3% | 23.1% | 18.2% | ||
| Profit (loss) from continuing operations | 525 | 12 | 469 | +++ | 245 |
| Profit (loss) from discontinued operations, net of income taxes |
(8) | --- | - | --- | - |
| Profit (loss) for the period | 517 | 10 | 469 | +++ | 245 |
| Basic earnings per share (in euro) attributable to shareholders of Infineon Technologies AG:1 |
|||||
| Basic earnings per share (in euro) from continuing operations |
0.40 | 11 | 0.36 | +++ | 0.18 |
| Basic earnings (loss) per share (in euro) from discontinued operations |
(0.01) | --- | - | --- | - |
| Basic earnings per share (in euro) | 0.39 | 8 | 0.36 | +++ | 0.18 |
| Diluted earnings per share (in euro) attributable to shareholders of Infineon Technologies AG:1 |
|||||
| Diluted earnings per share (in euro) from continuing operations |
0.40 | 14 | 0.35 | +++ | 0.18 |
| Diluted earnings (loss) per share (in euro) from discontinued operations |
(0.01) | --- | - | --- | - |
| Diluted earnings per share (in euro) | 0.39 | 11 | 0.35 | +++ | 0.18 |
| Adjusted earnings per share (in euro) – diluted1,2 | 0.49 | 11 | 0.44 | 81 | 0.27 |
| Gross margin (in %) | 43.2% | 42.9% | 39.1% | ||
| Adjusted gross margin3 (in %) | 45.4% | 45.4% | 41.8% |
1 The calculation for earnings per share and adjusted earnings per share is based on unrounded figures.
2 The reconciliation of profit (loss) for the period to adjusted profit (loss) for the period and adjusted earnings per share is presented on page 12.
3 The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 11.
Group performance in the third quarter of the 2022 fiscal year
In the third quarter of the 2022 fiscal year, Group revenue grew by €320 million or 10 percent to €3,618 million, compared with €3,298 million in the previous threemonth period. There was a significant increase in revenue in the Automotive (ATV) and Power & Sensor Systems (PSS) segments, as well as a slight increase in the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments.
The gross margin in the third quarter of the current fiscal year was 43.2 percent, compared with 42.9 percent in the preceding quarter. The adjusted gross margin remained unchanged at 45.4 percent.
For the Business and Trade Press: INFXX202208.109e The Segment Result in the third quarter was €842 million, compared with €761 million in the second quarter of the 2022 fiscal year. The Segment Result
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
Margin improved slightly, from 23.1 percent in the second quarter to 23.3 percent in the third quarter.
The third-quarter non-segment result was a net loss of €152 million, compared with a net loss of €143 million in the second quarter. The non-segment result for the third quarter comprised €78 million relating to cost of goods sold, €62 million relating to selling, general and administrative expenses and €7 million relating to research and development expenses. Also included in the total for the third quarter were net other operating expenses of €5 million.
Operating profit for the third quarter of the 2022 fiscal year was €690 million, up from €618 million in the previous three-month period.
The financial result was a net financial loss of €40 million, compared with a net financial loss of €43 million in the second quarter of the 2022 fiscal year.
The tax expense in the third quarter of the current fiscal year was €134 million, compared with €121 million in the preceding quarter.
Profit from continuing operations improved in the third quarter of the current fiscal year to €525 million, up from €469 million in the previous quarter. The result from discontinued operations in the third quarter was a loss of €8 million (second quarter: €0 million). The profit for the period in the third quarter of the 2022 fiscal year was €517 million, up from €469 million in the previous quarter.
Basic earnings per share from continuing operations rose in the third quarter of the current fiscal year to €0.40, compared with €0.36 in the previous quarter. Diluted earnings per share from continuing operations increased from €0.35 in the second quarter to €0.40 in the third quarter. Adjusted earnings per share1 (diluted) improved from €0.44 in the second quarter to €0.49 in the third quarter of the current fiscal year.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
1 Adjusted profit/loss for the period and adjusted earnings per share (diluted) should not be seen as a replacement or as superior performance indicators, but rather as additional information to profit/loss for the period and earnings per share (diluted) determined in accordance with IFRS. The detailed calculation of adjusted earnings per share is presented on page 12.
For the Business and Trade Press: INFXX202208.109e
development costs – rose to €542 million in the third quarter of the current fiscal year, compared with €494 million in the preceding three-month period. Depreciation and amortization in the third quarter was €422 million, compared with €405 million in the second quarter of the 2022 fiscal year.
Free Cash Flow2 improved in the third quarter of the 2022 fiscal year to €440 million, up from €120 million in the previous three-month period. Net cash provided by operating activities from continuing operations rose to €996 million, compared with €615 million in the second quarter of the 2022 fiscal year.
The gross cash position at the end of the third quarter of the current fiscal year stood at €3,569 million, up from €3,205 million at 31 March 2022. Financial debt at the end of June 2022 was €6,054 million, compared with €5,881 million at the end of March 2022. Net financial debt decreased from €2,676 million at the end of the second quarter to €2,485 million at the end of the third quarter.
Outlook for the fourth quarter of the 2022 fiscal year
Based on an assumed exchange rate of US\$1.05 to the euro, Infineon expects to generate revenue of around €3.9 billion in the fourth quarter of the 2022 fiscal year. This is equivalent to 8 percent growth compared with the third quarter of the current fiscal year. The rate of growth in the IPC segment should be significantly higher than this. In the ATV and PSS segments, revenue is expected to grow at around the average rate for the Group, while revenue growth in the CSS segment is expected to be within a low single-digit percentage range. At the forecast level of revenue, the Segment Result Margin is expected to be about 25 percent.
Outlook for the 2022 fiscal year
Based on the revenue that is being forecast for the fourth quarter, the revenue forecast for the full 2022 fiscal year stands at around €14 billion (compared with the previous forecast of €13.5 billion. About €140 million of the expected increase will come from the stronger US dollar). When compared with the prior fiscal year, revenue in the ATV segment is expected to grow at a higher percentage rate than the average growth rate for the Group. The annual revenue growth rate in the CSS segment should be around the average growth rate for the Group, while the PSS segment should grow at a slightly lower rate than the Group average. IPC's revenue growth is expected to be at about 15 percent. Based on the forecast
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
For the Business and Trade Press: INFXX202208.109e 2 For definitions and the calculation of free cash flow and of the gross and net cash positions, please see page 14.
revenue for the full fiscal year of now around €14 billion, the Segment Result Margin is expected to exceed 23 percent, compared to above 22 percent in the
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – of around €2.4 billion are planned for the full 2022 fiscal year. The main focus is on expanding frontend manufacturing capacities to enable Infineon to continue to meet the expected growth in customer demand in the medium term.
Depreciation and amortization are predicted to be between €1.6 billion and €1.7 billion in the 2022 fiscal year, of which approximately €400 million is attributable to depreciation and amortization from purchase price allocations arising mainly from the acquisition of Cypress and to a lesser extent from the acquisition of International Rectifier. Free Cash Flow is now forecast to be about €1.4 billion (previously about €1.1 billion).
Predictability of revenue and earnings is currently strongly limited by various geopolitical and macroeconomic factors, including the war in Ukraine and its potential effects (e.g. on energy supply) as well as current and future measures deployed to contain the spread of the coronavirus pandemic, particularly in Asia.
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
previous forecast.
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions (unless otherwise stated) | in % of total revenue |
3 months ended 30 Jun 22 |
sequential +/- in % |
3 months ended 31 Mar 22 |
year-on year +/- in % |
3 months ended 30 Jun 21 |
|---|---|---|---|---|---|---|
| Infineon (total) | ||||||
| Revenue | 100 | 3,618 | 10 | 3,298 | 33 | 2,722 |
| Segment Result | 842 | 11 | 761 | 70 | 496 | |
| Segment Result Margin (in %) | 23.3% | 23.1% | 18.2% | |||
| Automotive (ATV) | ||||||
| Segment Revenue | 47 | 1,701 | 14 | 1,491 | 41 | 1,205 |
| Segment Result | 399 | 23 | 324 | +++ | 199 | |
| Segment Result Margin (in %) | 23.5% | 21.7% | 16.5% | |||
| Industrial Power Control (IPC) | ||||||
| Segment Revenue | 12 | 436 | 1 | 430 | 6 | 412 |
| Segment Result | 82 | (12) | 93 | - | 82 | |
| Segment Result Margin (in %) | 18.8% | 21.6% | 19.9% | |||
| Power & Sensor Systems (PSS) | ||||||
| Segment Revenue | 28 | 1,021 | 10 | 925 | 35 | 757 |
| Segment Result | 277 | 17 | 237 | 66 | 167 | |
| Segment Result Margin (in %) | 27.1% | 25.6% | 22.1% | |||
| Connected Secure Systems (CSS) | ||||||
| Segment Revenue | 13 | 456 | 2 | 448 | 32 | 346 |
| Segment Result | 84 | (22) | 108 | 79 | 47 | |
| Segment Result Margin (in %) | 18.4% | 24.1% | 13.6% | |||
| Other Operating Segments (OOS) | ||||||
| Segment Revenue | 0 | 4 | - | 4 | +++ | 2 |
| Segment Result | 1 | - | 1 | +++ | - | |
| Corporate and Eliminations (C&E) | ||||||
| Segment Revenue | 0 | - | - | - | - | - |
| Segment Result | (1) | 50 | (2) | --- | 1 |
Segment earnings in the third quarter of the 2022 fiscal year
ATV segment revenue increased to €1,701 million in the third quarter of the current fiscal year, up from €1,491 million in the previous three-month period. All product and application areas, especially microcontrollers, contributed to the significant 14 percent increase in revenue. The revenue growth was due partly to higher volumes as a result of the increase in available manufacturing capacities and partly to favorable pricing and currency effects. The Segment Result improved from €324 million in the second quarter of the current fiscal year to €399 million in the third quarter, while the Segment Result Margin increased from 21.7 percent to 23.5 percent.
IPC segment revenue rose in the third quarter of the 2022 fiscal year to €436 million, compared with €430 million in the preceding quarter. The 1 percent increase was due to slightly higher revenue from industrial drives, renewable
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
energy, energy infrastructure and transport. Revenue from home appliances was slightly lower than in the previous quarter. The Segment Result in the third quarter of the current fiscal year was €82 million compared with €93 million in the preceding three-month period, while the third-quarter Segment Result Margin was 18.8 percent (Q2 FY 2022: 21.6 percent).
In the third quarter of the 2022 fiscal year, PSS segment revenue improved to €1,021 million, up from €925 million in the previous quarter. The 10 percent increase was as a result of good demand, especially in the area of servers, industrial applications and for silicon microphones. Higher prices and a favorable US dollar / Euro exchange rate also had a positive impact. The Segment Result increased from €237 million in the second quarter of the current fiscal year to €277 million in the third quarter, while the Segment Result Margin rose from 25.6 percent to 27.1 percent.
CSS segment revenue increased from €448 million in the second quarter of the 2022 fiscal year to €456 million in the third quarter. The 2 percent growth in revenue was mainly due to the strong US dollar. The Segment Result in the third quarter of the current fiscal year was €84 million, compared with €108 million in the preceding quarter. The Segment Result Margin was 18.4 percent, compared with 24.1 percent in the second quarter of the 2022 fiscal year.
Analyst telephone conference and telephone press conference
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 3 August 2022 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company's results for the third quarter of the 2022 fiscal year as well as the outlook for the fourth quarter and the 2022 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CEST), 5:00 am (EDT). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon's website at www.infineon.com/investor.
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
The Q3 Investor Presentation is available (in English only) at: https://www.infineon.com/cms/en/about-infineon/investor/reports-andpresentations/
Infineon Financial Calendar (* preliminary)
| ➢ | 30 Aug 2022 | UBS Japan in Focus conference (virtual) |
|---|---|---|
| ➢ | 1 Sep 2022 | Deutsche Bank dbAccess European TMT Conference, London |
| ➢ | 8 Sep 2022 | Commerzbank and ODDO BHF Corporate Conference, Frankfurt |
| ➢ | 8 – 9 Sep 2022 |
Citi 2022 Global Technology Conference, New York |
| ➢ | 12 Sep 2022 | Goldman Sachs Communacopia & Technology Conference, San Francisco |
| ➢ | 19 Sep 2022 | Berenberg-Goldman Sachs German Corporate Conference, Munich |
| ➢ | 20 Sep 2022 | Baader 11th Investment Conference, Munich |
| ➢ | 27 Sep 2022 | ExaneBNP 2nd ESG Conference, Paris |
| ➢ | 4 Oct 2022 | ATV presentation with Peter Schiefer head of ATV, London |
| ➢ | 15 Nov 2022* | Earnings Release for the Fourth Quarter and the 2022 Fiscal Year |
| ➢ | 16 – 17 Nov 2022 |
Morgan Stanley European TMT Conference, Barcelona |
| ➢ | 28 – 29 Nov 2022 |
Credit Suisse TMT Conference, Scottsdale |
About Infineon
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. With around 50,280 employees worldwide, Infineon generated revenue of about €11.1 billion in the 2021 fiscal year (ending 30 September).
Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com This press release is available online at www.infineon.com/press
Follow us: Twitter - Facebook - LinkedIn
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
FINANCIAL INFORMATION
According to IFRS – Unaudited
Consolidated Statement of Profit or Loss
| € in millions | 3 months ended | 9 months ended | |||
|---|---|---|---|---|---|
| 30 Jun 22 31 Mar 22 30 Jun 21 |
30 Jun 22 | 30 Jun 21 | |||
| Revenue | 3,618 | 3,298 | 2,722 | 10,075 | 8,053 |
| Cost of goods sold | (2,054) | (1,882) | (1,657) | (5,784) | (5,031) |
| Gross profit | 1,564 | 1,416 | 1,065 | 4,291 | 3,022 |
| Research and development expenses | (466) | (447) | (376) | (1,312) | (1,050) |
| Selling, general and administrative expenses | (414) | (369) | (342) | (1,113) | (981) |
| Other operating income | 18 | 32 | 11 | 94 | 47 |
| Other operating expenses | (12) | (14) | (11) | (36) | (46) |
| Operating profit | 690 | 618 | 347 | 1,924 | 992 |
| Financial income | (1) | 2 | 1 | 3 | 19 |
| Financial expenses | (39) | (45) | (57) | (130) | (142) |
| Share of profit (loss) of associates and joint ventures accounted for using the equity method |
9 | 15 | 3 | 30 | 1 |
| Profit (loss) from continuing operations before income taxes |
659 | 590 | 294 | 1,827 | 870 |
| Income tax | (134) | (121) | (49) | (372) | (160) |
| Profit (loss) from continuing operations | 525 | 469 | 245 | 1,455 | 710 |
| Profit (loss) from discontinued operations, net of income taxes |
(8) | - | - | (11) | (5) |
| Profit (loss) for the period | 517 | 469 | 245 | 1,444 | 705 |
| Attributable to: | |||||
| Shareholders and hybrid capital investors of Infineon Technologies AG |
517 | 469 | 245 | 1,444 | 705 |
| Basic earnings per share (in euro) attributable to shareholders of Infineon Technologies AG:1 |
|||||
| Weighted average shares outstanding (in million) – basic |
1,302 | 1,302 | 1,301 | 1,302 | 1,301 |
| Basic earnings per share (in euro) from continuing operations |
0.40 | 0.36 | 0.18 | 1.10 | 0.53 |
| Basic earnings (loss) per share (in euro) from discontinued operations |
(0.01) | - | - | (0.01) | (0.01) |
| Basic earnings per share (in euro) | 0.39 | 0.36 | 0.18 | 1.09 | 0.52 |
| Diluted earnings per share (in euro) attributable to shareholders of Infineon Technologies AG:1 |
|||||
| Weighted average shares outstanding (in million) – diluted |
1,304 | 1,303 | 1,303 | 1,305 | 1,303 |
| Diluted earnings per share (in euro) from continuing operations |
0.40 | 0.35 | 0.18 | 1.10 | 0.53 |
| Diluted earnings (loss) per share (in euro) from discontinued operations |
(0.01) | - | - | (0.01) | (0.01) |
| Diluted earnings per share (in euro) | 0.39 | 0.35 | 0.18 | 1.09 | 0.52 |
1 The calculation of earnings per share is based on unrounded figures. For the consideration of the compensation of hybrid capital investors when determining earnings per share, see "Reconciliation to adjusted earnings and adjusted earnings per share" on page 12.
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
Regional Revenue Development
| € in millions, except percentages | 3 months ended | 9 months ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | 30 Jun 22 | 30 Jun 21 | ||||||
| Revenue: | ||||||||||
| Europe, Middle East, Africa | 855 | 24% | 822 | 25% | 718 | 26% | 2,431 | 24% | 2,074 | 26% |
| therein: Germany | 403 | 11% | 387 | 12% | 327 | 12% | 1,150 | 11% | 942 | 12% |
| Asia-Pacific (excluding Japan, Greater China) |
590 | 16% | 559 | 17% | 437 | 16% | 1,662 | 16% | 1,265 | 16% |
| Greater China1 | 1,313 | 36% | 1,175 | 35% | 986 | 37% | 3,675 | 37% | 3,000 | 37% |
| therein: Mainland China, Hong Kong | 1,031 | 28% | 897 | 27% | 741 | 27% | 2,860 | 28% | 2,275 | 28% |
| Japan | 364 | 10% | 318 | 10% | 280 | 10% | 1,006 | 10% | 797 | 10% |
| Americas | 496 | 14% | 424 | 13% | 301 | 11% | 1,301 | 13% | 917 | 11% |
| therein: USA | 419 | 12% | 358 | 11% | 248 | 9% | 1,093 | 11% | 753 | 9% |
| Total | 3,618 | 100% | 3,298 | 100% | 2,722 | 100% | 10,075 | 100% | 8,053 | 100% |
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
Segment Revenues and Segment Results
Segment Result is defined as operating profit excluding certain net impairments and reversal of impairments (in particular on goodwill), the impact on earnings of restructuring and closures, share-based payment, acquisition-related depreciation/amortization and other expense, impact on earnings of sales of businesses or interests in subsidiaries, and other income (expense).
Revenues and Segment Result for the three and nine months ended 30 June 2022 and 2021
| 3 months ended | 9 months ended | ||||||
|---|---|---|---|---|---|---|---|
| Revenue, € in millions (unless otherwise stated) |
30 Jun 22 | 30 Jun 21 | +/- in % | 30 Jun 22 | 30 Jun 21 | +/- in % | |
| Automotive | 1,701 | 1,205 | 41 | 4,582 | 3,574 | 28 | |
| Industrial Power Control | 436 | 412 | 6 | 1,247 | 1,136 | 10 | |
| Power & Sensor Systems | 1,021 | 757 | 35 | 2,901 | 2,323 | 25 | |
| Connected Secure Systems | 456 | 346 | 32 | 1,331 | 1,011 | 32 | |
| Other Operating Segments | 4 | 2 | +++ | 14 | 9 | 56 | |
| Corporate and Eliminations | - | - | - | - | - | - | |
| Total | 3,618 | 2,722 | 33 | 10,075 | 8,053 | 25 |
| 3 months ended | 9 months ended | ||||||
|---|---|---|---|---|---|---|---|
| Segment Result, € in millions (unless otherwise stated) |
30 Jun 22 | 30 Jun 21 | +/- in % | 30 Jun 22 | 30 Jun 21 | +/- in % | |
| Automotive | 399 | 199 | +++ | 984 | 581 | 69 | |
| Industrial Power Control | 82 | 82 | - | 247 | 203 | 22 | |
| Power & Sensor Systems | 277 | 167 | 66 | 799 | 547 | 46 | |
| Connected Secure Systems | 84 | 47 | 79 | 292 | 122 | +++ | |
| Other Operating Segments | 1 | - | +++ | 3 | 2 | 50 | |
| Corporate and Eliminations | (1) | 1 | --- | (5) | 1 | --- | |
| Total | 842 | 496 | 70 | 2,320 | 1,456 | 59 | |
| Segment Result Margin (in %) | 23.3% | 18.2% | 23.0% | 18.1% |
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions | 3 months ended | 9 months ended | |||
|---|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | 30 Jun 22 | 30 Jun 21 | |
| Segment Result | 842 | 761 | 496 | 2,320 | 1,456 |
| Plus/minus: | |||||
| Reversal of impairments (impairments) (in particular on goodwill) |
- | - | - | - | (8) |
| Share-based payment | (22) | (10) | (11) | (43) | (17) |
| Acquisition-related depreciation/amortization and other expenses |
(122) | (126) | (129) | (366) | (413) |
| Gains (losses) on sales of businesses, or interests in subsidiaries, net |
- | (1) | (1) | - | (1) |
| Other income and expense, net | (8) | (6) | (8) | 13 | (25) |
| Operating profit | 690 | 618 | 347 | 1,924 | 992 |
Reconciliation of Segment Result to Operating Income
Reconciliation to adjusted cost of goods sold and gross margin
The cost of goods sold and the gross margin in accordance with IFRS are influenced by amounts relating to purchase price allocations for acquisitions (in particular Cypress and International Rectifier) as well as by other exceptional items. To enable better comparability of operating performance over time, Infineon computes the adjusted gross margin as follows:
| € in millions (unless otherwise stated) | 3 months ended | 9 months ended | |||
|---|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | 30 Jun 22 | 30 Jun 21 | |
| Cost of goods sold | 2,054 | 1,882 | 1,657 | 5,784 | 5,031 |
| Plus/minus: | |||||
| Share-based compensation expense | (4) | (1) | (2) | (7) | (2) |
| Acquisition-related depreciation/ amortization and other expenses |
(70) | (76) | (68) | (215) | (221) |
| Other income and expense, net | (4) | (5) | (4) | (14) | (15) |
| Adjusted cost of goods sold | 1,976 | 1,800 | 1,583 | 5,548 | 4,793 |
| Adjusted gross margin | 45.4% | 45.4% | 41.8% | 44.9% | 40.5% |
Adjusted cost of goods sold and the adjusted gross margin should not be seen as a replacement or superior performance indicator, but rather as additional information to cost of goods sold and the gross margin determined in accordance with IFRS.
Employees
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | |
|---|---|---|---|
| Infineon | 54,946 | 53,599 | 48,866 |
| thereof: Research and development | 11,636 | 11,028 | 10,022 |
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
Reconciliation to adjusted earnings and adjusted earnings per share – diluted
Earnings per share in accordance with IFRS are influenced by amounts relating to purchase price allocations for acquisitions (in particular Cypress and International Rectifier), one-time effects in the financial result in connection with the acquisition of Cypress as well as by other exceptional items. To enable better comparability of operating performance over time, Infineon computes adjusted earnings per share (diluted) as follows:
| € in millions (unless otherwise stated) | 3 months ended | 9 months ended | |||
|---|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | 30 Jun 22 | 30 Jun 21 | |
| Profit from continuing operations – diluted | 525 | 469 | 245 | 1,455 | 710 |
| Compensation of hybrid capital investors1 | (7) | (7) | (8) | (22) | (23) |
| Profit from continuing operations, attributable to shareholders of Infineon Technologies AG – diluted |
518 | 462 | 237 | 1,433 | 687 |
| Plus/minus: | |||||
| Impairments (reversal of impairments) (in particular on goodwill) |
- | - | - | - | 8 |
| Share-based payment | 22 | 10 | 11 | 43 | 17 |
| Acquisition-related depreciation/amortization and other expenses |
122 | 126 | 129 | 366 | 413 |
| Losses (gains) on sales of businesses, or interests in subsidiaries, net |
- | 1 | 1 | - | 1 |
| Other income and expense, net | 8 | 6 | 8 | (13) | 25 |
| Acquisition-related expenses within financial result | - | 3 | 1 | 4 | 5 |
| Tax effects on adjustments | (31) | (32) | (26) | (84) | (97) |
| Revaluation of deferred tax assets resulting from the annually updated earnings forecast |
(1) | (1) | (8) | (3) | (33) |
| Adjusted profit for the period from continuing operations attributable to shareholders of Infineon Technologies AG – diluted |
638 | 575 | 353 | 1,746 | 1,026 |
| Weighted-average number of shares outstanding (in millions) – diluted |
1,304 | 1,303 | 1,303 | 1,305 | 1,303 |
| Adjusted earnings per share (in euro) – diluted2 | 0.49 | 0.44 | 0.27 | 1.34 | 0.79 |
1 Including the cumulative tax effects.
2 The calculation of the adjusted earnings per share is based on unrounded figures.
Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS.
For the Business and Trade Press: INFXX202208.109e
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions | 30 Jun 22 | 31 Mar 22 | 30 Sep 21 |
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 1,594 | 1,284 | 1,749 |
| Financial investments | 1,975 | 1,921 | 2,173 |
| Trade receivables | 1,730 | 1,609 | 1,483 |
| Inventories | 2,834 | 2,540 | 2,181 |
| Current income tax receivables | 121 | 67 | 57 |
| Contract assets | 87 | 109 | 82 |
| Other current assets | 649 | 535 | 518 |
| Assets classified as held for sale | - | - | 9 |
| Total current assets | 8,990 | 8,065 | 8,252 |
| Property, plant and equipment | 5,019 | 4,779 | 4,443 |
| Goodwill | 6,657 | 6,221 | 5,962 |
| Other intangible assets | 3,392 | 3,296 | 3,349 |
| Right-of-use assets | 379 | 351 | 336 |
| Investments accounted for using the equity method | 100 | 90 | 71 |
| Non-current income tax receivables | 2 | 2 | 1 |
| Deferred tax assets | 605 | 633 | 695 |
| Other non-current assets | 271 | 239 | 225 |
| Total non-current assets | 16,425 | 15,611 | 15,082 |
| Total assets | 25,415 | 23,676 | 23,334 |
| LIABILITIES AND EQUITY: | |||
| Short-term financial debt and current portion of long-term financial debt | 752 | 2 | 833 |
| Trade payables | 1,863 | 1,777 | 1,569 |
| Current provisions | 807 | 583 | 815 |
| Current income tax payables | 515 | 399 | 288 |
| Current leasing liabilites | 75 | 69 | 66 |
| Other current liabilities | 1,013 | 941 | 872 |
| Total current liabilities | 5,025 | 3,771 | 4,443 |
| Long-term financial debt | 5,302 | 5,879 | 5,752 |
| Pensions and similar commitments | 351 | 525 | 617 |
| Deferred tax liabilities | 356 | 338 | 324 |
| Other non-current provisions | 286 | 274 | 319 |
| Non-current leasing liabilities | 305 | 279 | 265 |
| Other non-current liabilities | 193 | 197 | 213 |
| Total non-current liabilities | 6,793 | 7,492 | 7,490 |
| Total liabilities | 11,818 | 11,263 | 11,933 |
| Equity: | |||
| Ordinary share capital | 2,612 | 2,612 | 2,612 |
| Additional paid-in capital | 6,558 | 6,536 | 6,513 |
| Retained earnings | 2,720 | 2,051 | 1,407 |
| Other reserves | 537 | 16 | (306) |
| Own shares | (23) | (25) | (28) |
| Hybrid capital | 1,193 | 1,223 | 1,203 |
| Total equity | 13,597 | 12,413 | 11,401 |
| Total liabilities and equity | 25,415 | 23,676 | 23,334 |
Consolidated Statement of Financial Position
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
Consolidated Statement of Cash Flows
Gross and Net Cash Position
The following table reconciles the gross cash position and net cash position (i.e. after deduction of financial debt). Since some liquid funds are held in the form of financial investments, which, for IFRS purposes are not considered to be "cash and cash equivalents", Infineon reports on its gross and net cash positions in order to provide investors with a better understanding of Infineon's overall liquidity. The gross and net cash positions are determined as follows from the Consolidated Statement of Financial Position:
| € in millions | 30 Jun 22 | 31 Mar 22 | 30 Jun 21 |
|---|---|---|---|
| Cash and cash equivalents | 1,594 | 1,284 | 1,920 |
| Financial investments | 1,975 | 1,921 | 1,943 |
| Gross cash position | 3,569 | 3,205 | 3,863 |
| Less: | |||
| Short-term financial debt and current portion of long-term financial debt | 752 | 2 | 825 |
| Long-term financial debt | 5,302 | 5,879 | 5,983 |
| Total financial debt | 6,054 | 5,881 | 6,808 |
| Net cash position | (2,485) | (2,676) | (2,945) |
Free Cash Flow
Infineon reports the Free Cash Flow figure defined as net cash provided by and/or used in operating activities and net cash provided by and/or used in investing activities, both from continuing operations, after adjusting for cash flows related to the purchase and sale of financial investments. Free Cash Flow serves as an additional performance indicator, since Infineon holds part of its liquidity in the form of financial investments. This does not mean that the Free Cash Flow calculated in this way is available to cover other disbursements, since dividend, debt-servicing obligations and other fixed disbursements are not deducted. Free Cash Flow should not be seen as a replacement or superior performance indicator, but rather as an additional useful piece of information over and above the disclosure of the cash flow reported in the Consolidated Statement of Cash Flows, and as a supplementary disclosure to other liquidity performance indicators and other performance indicators derived from the IFRS figures. Free Cash Flow includes only amounts from continuing operations, and is derived as follows from the Consolidated Statement of Cash Flows:
| € in millions | 3 months ended | 9 months ended | |||
|---|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | 30 Jun 22 | 30 Jun 21 | |
| Net cash provided by operating activities from continuing operations |
996 | 615 | 762 | 2,406 | 2,092 |
| Net cash used in investing activities from continuing operations |
(607) | (130) | (659) | (1,267) | (1,463) |
| Purchases of (proceeds from sales of) financial investments, net |
51 | (365) | 374 | (200) | 567 |
| Free Cash Flow | 440 | 120 | 477 | 939 | 1,196 |
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions | 3 months ended | |||
|---|---|---|---|---|
| 30 Jun 22 | 31 Mar 22 | 30 Jun 21 | ||
| Profit (loss) for the period | 517 | 469 | 245 | |
| Plus: profit (loss) from discontinued operations, net of income taxes | 8 | - | - | |
| Adjustments to reconcile to net cash provided by operating activities: | ||||
| Depreciation and amortization | 422 | 405 | 380 | |
| Other expenses and income | 177 | 162 | 104 | |
| Change in assets, liabilities and equity | 13 | (366) | 149 | |
| Interest received and paid | (75) | (22) | (72) | |
| Income tax received (paid) | (66) | (33) | (44) | |
| Net cash provided by operating activities from continuing operations | 996 | 615 | 762 | |
| Net cash provided by (used in) operating activities from discontinued operations |
(1) | (1) | 4 | |
| Net cash provided by operating activities | 995 | 614 | 766 | |
| Proceeds from sales of (purchases of) financial investments, net | (51) | 365 | (374) | |
| Acquisitions of businesses, net of cash acquired | (17) | (2) | (3) | |
| Purchases of other intangible assets and other assets | (67) | (46) | (53) | |
| Purchases of property, plant and equipment | (475) | (448) | (232) | |
| Other investing activities | 3 | 1 | 3 | |
| Net cash used in investing activities | (607) | (130) | (659) | |
| Proceeds from issuance of (repayment of) short-/long-term financial debt | (2) | (828) | (3) | |
| Proceeds from hybrid capital (cash outflow to hybrid capital investors) | (39) | - | (39) | |
| Dividend payments | - | (351) | - | |
| Other financing activities | (20) | (20) | (18) | |
| Net cash used in financing activities | (61) | (1,199) | (60) | |
| Net change in cash and cash equivalents | 327 | (715) | 47 | |
| Effect of foreign exchange rate changes on cash and cash equivalents | (17) | 3 | - | |
| Cash and cash equivalents at beginning of period | 1,284 | 1,996 | 1,873 | |
| Cash and cash equivalents at end of period | 1,594 | 1,284 | 1,920 |
Condensed Consolidated Statement of Cash Flows
D I S C L A I M E R
The Consolidated Statement of Financial Position, the Consolidated Statement of Income and the (condensed) Consolidated Statement of Cash Flows have been prepared in accordance with IAS 34, "Interim Financial Reporting". The disclosures required by IAS 34 are not made.
The same accounting policies are applied as in the most recently published consolidated financial statements. An exception to this principle is the application of new and revised standards and interpretations that have become effective during the year.
The Quarterly Group Statement is prepared in accordance with the Frankfurt Stock Exchange's stock exchange regulation 53 paragraph.
This press release 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
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]
disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forwardlooking statements.
Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
All figures mentioned in this press release are unaudited.
For the Business and Trade Press: INFXX202208.109e
Bernd Hops (Headquarters) Judy Davies (Americas) Chi Kang David Ong (Asia-Pacific) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan)
Tel.: +49 89 234 23888 Tel.: +1 408 621 6212 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 5745 7544
[email protected] [email protected] [email protected] [email protected] [email protected]