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Infineon Technologies AG
Earnings Release • Nov 14, 2022
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Earnings Release
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Ad-hoc | 14 November 2022 15:36
Infineon Technologies AG: Infineon significantly increases its long-term financial targets; major investment in a new factory in Dresden planned
Infineon Technologies AG / Key word(s): Miscellaneous
Infineon Technologies AG: Infineon significantly increases its long-term financial targets; major investment in a new factory in Dresden planned
14-Nov-2022 / 15:36 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Neubiberg, 14. November 2022 – Infineon significantly increases its long-term financial targets; major investment in a new factory in Dresden planned
In its target markets automotive, industrial and IoT applications, as well as renewable energies Infineon sees increasing dynamic and strong structural growth drivers. The company is therefore upgrading its target operating model, which defines financial targets over the cycle. In future, based on an exchange rate of US$1.00 to the euro, the expected average rate of revenue growth will be more than 10 percent, increased from 9 percent + previously. The Segment Result Margin is expected to reach an average level of 25 percent, compared with 19 percent to date. For the first time, Infineon is including an explicit Free Cash Flow target in its target operating model, replacing the investment-to-sales rate previously used. Free Cash Flow, adjusted for major investments in frontend buildings, should be within a range of 10 to 15 percent of revenue over the cycle.
To enable the expected acceleration in growth of analog/mixed-signal and power semiconductors, Infineon is planning to continue expanding its 300-millimeter manufacturing capacity and invest €5 billion. The intended location is Dresden (Germany), subject to adequate public funding. When operating at full capacity, the planned factory would have an annual revenue potential equal to the level of the investment. The new factory is expected to create up to 1,000 new highly qualified jobs and according to planning could be ready to start production in autumn of 2026.
The Supervisory Board has today agreed to both, the new target operating model as well as the further planning related to the expansion of manufacturing capacity.
Contact:
Alexander Foltin, Investor Relations, phone: +49 89 234-23766, fax: +49 89 234-9559847
14-Nov-2022 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
| Language: | English |
| Company: | Infineon Technologies AG |
| Am Campeon 1-15 | |
| 85579 Neubiberg | |
| Germany | |
| Phone: | +49 (0)89 234-26655 |
| Fax: | +49 (0)89 234-955 2987 |
| E-mail: | [email protected] |
| Internet: | www.infineon.com |
| ISIN: | DE0006231004 |
| WKN: | 623100 |
| Indices: | DAX, TecDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1487069 |
| End of Announcement | EQS News Service |