Earnings Release • Feb 2, 2023
Earnings Release
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P r e s s R e l e a s e Infineon concludes a very profitable first quarter and raises its outlook for the 2023 fiscal year slightly, adjusting for currency effects
Neubiberg, 2 February 2023 – Today, Infineon Technologies AG is reporting results for the first quarter of its 2023 fiscal year (period ended 31 December 2022).
"Infineon is staying on course in choppy waters, and the first quarter of our 2023 fiscal year has been very profitable. Substantial parts of our business have proved robust even in a weaker macroeconomic environment," says Jochen Hanebeck, CEO of Infineon. "In particular, the energy transition and expansion of electromobility are causing a continuously high need for our solutions in industrial and automotive applications. In contrast, we are seeing significantly weaker demand in areas such as smartphones, PCs and data centers. We are continuing to navigate carefully in these challenging times and remain flexible in our approach to market dynamics. All in all, we are increasing our guidance slightly for the fiscal year, adjusting for currency effects."
For the Business and Trade Press: INFXX202302.054e 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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions (unless otherwise stated) |
Q1 FY 2023 | Q4 FY 2022 | Change vs. previous quarter in % |
Q1 FY 2022 | Change vs. previous year quarter in % |
|---|---|---|---|---|---|
| Revenue | 3,951 | 4,143 | (5) | 3,159 | 25 |
| Gross margin (in %) | 47.2% | 44.4% | 41.5% | ||
| Adjusted gross margin1 (in %) | 49.2% | 46.3% | 43.9% | ||
| Segment Result | 1,107 | 1,058 | 5 | 717 | 54 |
| Segment Result Margin (in %) | 28.0% | 25.5% | 22.7% | ||
| Profit (loss) from continuing operations | 729 | 730 | 0 | 461 | 58 |
| Profit (loss) from discontinued operations, net of income taxes |
(1) | 5 | --- | (4) | 75 |
| Profit (loss) for the period | 728 | 735 | (1) | 457 | 59 |
| Basic earnings per share (in euro) | 0.55 | 0.56 | (2) | 0.35 | 57 |
| Diluted earnings per share (in euro) | 0.55 | 0.56 | (2) | 0.35 | 57 |
| Adjusted earnings per share (in euro) – diluted2,3 |
0.64 | 0.63 | 2 | 0.41 | 56 |
1 The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 11.
2 The calculation for earnings per share and adjusted earnings per share is based on unrounded figures.
3 The reconciliation of profit (loss) for the period to adjusted profit (loss) for the period and adjusted earnings per share is presented on page 10.
In the first quarter of the 2023 fiscal year, Group revenue was €3,951 million. Compared with revenue in the prior quarter of €4,143 million, this was a decline of 5 percent. Revenue fell in the Automotive (ATV), Industrial Power Control (IPC) and Power & Sensor Systems (PSS) segments, but grew in the Connected Secure Systems (CSS) segment. The somewhat weaker US dollar compared with the prior quarter had a slightly adverse impact on revenue.
The gross margin rose in the first quarter of the current fiscal year to 47.2 percent, from 44.4 percent in the preceding quarter. The adjusted gross margin also improved, from 46.3 percent in the fourth quarter of the 2022 fiscal year to 49.2 percent in the current quarter.
The Segment Result increased in the first quarter of the 2023 fiscal year to €1,107 million, from €1,058 million in the prior quarter. The Segment Result Margin improved from 25.5 percent in the fourth quarter of the 2022 fiscal year to 28.0 percent in the current quarter. Earnings performance in the first quarter is mainly related to positive pricing and mix effects.
The first-quarter non-segment result was a net loss of €141 million, compared with a net loss of €138 million in the prior quarter. The non-segment result for the first quarter of 2023 included €76 million relating to cost of goods sold, €53 million
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relating to selling, general and administrative expenses and €10 million relating to research and development expenses. Also included in the total for the first quarter were net other operating expenses of €2 million.
Operating profit improved in the first quarter of the 2023 fiscal year to €966 million, up from €920 million in the previous three-month period.
The financial result in the first quarter of the current fiscal year was a net loss of €24 million, compared with a net loss of €33 million in the fourth quarter of the 2022 fiscal year.
The tax expense in the first quarter of the 2023 fiscal year increased to €216 million, compared with €166 million in the prior quarter.
Profit from continuing operations in the first quarter of the 2023 fiscal year was €729 million, compared with €730 million in the preceding quarter. The result from discontinued operations in the first quarter was a loss of €1 million, compared with a profit of €5 million in the previous quarter. The profit for the period in the first quarter of the current fiscal year was €728 million, compared with €735 million in the prior quarter.
Earnings per share from continuing operations in the first quarter of the 2023 fiscal year was €0.55, compared with €0.56 in the preceding quarter (basic and diluted in each case). Adjusted earnings per share1 (diluted) increased in the first quarter of the current fiscal year to €0.64, from €0.63 in the fourth quarter of the 2022 fiscal year.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – totaled €605 million in the first quarter of the current fiscal year, compared with €866 million in the prior quarter, corresponding to a typical seasonal pattern. Depreciation and amortization in the first quarter of the 2023 fiscal year amounted to €429 million, compared with €443 million in the fourth quarter of the 2022 fiscal year.
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 10.
Free Cash Flow2 in the first quarter of the current fiscal year was €25 million, compared with €709 million in the preceding quarter. Main reasons for the decrease were the annual payout of variable remuneration components, the increase in inventories and the decrease in accounts payable. Cash flow from operating activities from continuing operations amounted to €631 million, compared with €1,580 million in the fourth quarter of the 2022 fiscal year.
The gross cash position at the end of the first quarter of the 2023 fiscal year was €3,708 million, compared with €3,717 million at 30 September 2022. Financial debt fell from €5,662 million at 30 September 2022 to €5,467 million at 31 December 2022 as a result of exchange rate movements. The net cash position improved, from net financial debt of €1,945 million at the end of the fourth quarter of the 2022 fiscal year to net financial debt of €1,759 million at the end of the first quarter of 2023.
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 second quarter of the 2023 fiscal year. Revenue growth in the ATV and IPC segments is forecast to be within a midsingle-digit percentage range compared with the first quarter. It is anticipated that revenue in the CSS segment will remain stable, whereas revenue in the PSS segment is expected to decline significantly due to weak market conditions for most of the target applications. Based on this revenue forecast, the Segment Result Margin should be around 25 percent.
Notwithstanding a less favorable assumed exchange rate of now US\$1.05 to the euro (previously US\$1.00), Infineon continues to expect to generate revenues of €15.5 billion (plus or minus €500 million) for the 2023 fiscal year. This is equivalent to a growth rate of 9 percent compared with the 2022 fiscal year. Revenue growth for both the ATV and IPC segments is expected to be above the average rate for the Group. In the CSS segment, revenue is likely to grow at around the Group average rate. It is anticipated that the PSS segment will see a decline in revenue compared with the prior year. At the mid-point of the guided revenue range, the adjusted gross margin should be around 45 percent and the Segment Result Margin should come in at around 25 percent, after a previously anticipated level of around 24 percent.
For the Business and Trade Press: INFXX202302.054e 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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
2 For definitions and the calculation of Free Cash Flow and of the gross and net cash positions, please see page 13.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are planned at around €3.0 billion for the 2023 fiscal year. The focus here will be on the construction of the third manufacturing module on the Kulim site (Malaysia) designed to produce compound semiconductors, the planned start of construction work on the fourth manufacturing module in Dresden (Germany) designed to produce analog/mixed-signal components and power semiconductors, and the continuing expansion of frontend manufacturing capacity especially in Dresden (Germany) and Villach (Austria).
Depreciation and amortization are predicted to be about €1.9 billion in the 2023 fiscal year, of which approximately €450 million is attributable to purchase price allocations arising mainly from the acquisition of Cypress. Taking the planned investment in frontend buildings into account, Free Cash Flow is forecast to be around €0.8 billion. Adjusted Free Cash Flow is expected to be around €1.5 billion, or about 10 percent of the forecast revenue for the year of €15.5 billion.
ATV segment revenue was €1,872 million in the first quarter of the current fiscal year, compared with €1,934 million in the fourth quarter of the 2022 fiscal year. The slight weakening of the dollar in the first quarter contributed to the 3 percent decline in revenue. The demand for products for electric vehicles and ADAS continued to trend very positively. The Segment Result increased in the first quarter of the current fiscal year to €532 million, from €506 million in the prior quarter. The Segment Result Margin improved significantly from 26.2 percent in the fourth quarter of the 2022 fiscal year to 28.4 percent in the current quarter.
IPC segment revenue in the first quarter of the 2023 fiscal year was €500 million, compared with €542 million in the prior quarter. The 8 percent decline in revenue was the result of seasonally weaker demand in all application areas except transport. Business in the area of renewable energies was robust. The Segment Result improved in the first quarter of the 2023 fiscal year to €144 million, from €136 million in the preceding quarter. The Segment Result Margin rose to 28.8 percent, up from 25.1 percent in the fourth quarter of the 2022 fiscal year.
PSS segment revenue in the first quarter of the 2023 fiscal year was €1,043 million, compared with €1,169 million in the prior quarter. The reason for the 11 percent decline was a reduction in the revenue derived from a variety of
For the Business and Trade Press: INFXX202302.054e 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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
applications, especially those in the consumer area such as smartphones, PCs, notebooks, TVs and games consoles. There was also a decrease in demand for power supplies for servers in data centers, following a very high level of revenue in the previous quarter. On the other hand, the demand trend for charging stations for electric vehicles and onboard chargers continued to be positive. The Segment Result in the first quarter of the 2023 fiscal year declined to €301 million, from €338 million in the prior quarter. The Segment Result Margin remained stable at 28.9 percent.
CSS segment revenue increased in the first quarter of the 2023 fiscal year to €531 million, up from €492 million in the fourth quarter of the 2022 fiscal year. The 8 percent growth was mainly due to higher levels of revenue in the areas of Bluetooth, payment cards, governmental identification and embedded SIMs. The Segment Result increased in the first quarter of the current fiscal year to €125 million, from €86 million in the prior quarter. The Segment Result Margin improved to 23.5 percent, from 17.5 percent in the fourth quarter of the 2022 fiscal year.
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 2 February 2023 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the first quarter of the 2023 fiscal year as well as the outlook for the second quarter and the 2023 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CET), 5:00 am (EST). 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
The Q1 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-andpresentations/
For the Business and Trade Press: INFXX202302.054e 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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
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Infineon Financial Calendar (* preliminary)
| 16 Feb 2023 | Annual General Meeting |
|---|---|
| 22 Feb 2023 | Goldman Sachs European Technology Conference, |
| London | |
| 27 Feb – 1 Mar 2023 | Mobile World Congress, Barcelona |
| 3 Mar 2023 | Susquehanna Technology Conference, virtual |
| 6 – 7 Mar 2023 | Morgan Stanley, Technology, Media and Telecom |
| Conference, San Francisco | |
| 9 – 10 Mar 2023 | Oddo BHF TMT Forum, Paris |
| 15 – 16 Mar 2023 | Citi TMT Conference, London |
| 30 Mar 2023 | Stifel German Corporate Conference, Copenhagen |
| 4 May 2023* | Earnings Release for the Second Quarter of the 2023 |
| Fiscal Year | |
| 3 Aug 2023* | Earnings Release for the Third Quarter of the 2023 |
| Fiscal Year | |
| 15 Nov 2023* | Earnings Release for the Fourth Quarter and the 2023 |
| Fiscal Year |
Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 56,200 employees worldwide and generated revenue of about €14,2 billion in the 2022 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY). Further information is available at www.infineon.com
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For the Business and Trade Press: INFXX202302.054e 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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
According to IFRS – Unaudited
The following financial data relates to the first quarter of the 2023 fiscal year ended 31 December 2022 and the corresponding prior quarter and prior year period.
| € in millions | Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Revenue | 3,951 | 4,143 | 3,159 |
| Cost of goods sold | (2,085) | (2,304) | (1,847) |
| Gross profit | 1,866 | 1,839 | 1,312 |
| Research and development expenses | (484) | (486) | (399) |
| Selling, general and administrative expenses | (410) | (452) | (330) |
| Other operating income | 17 | 36 | 43 |
| Other operating expenses | (23) | (17) | (9) |
| Operating profit | 966 | 920 | 617 |
| Financial income | 15 | 5 | 1 |
| Financial expenses | (39) | (38) | (46) |
| Share of profit (loss) of associates and joint ventures accounted for using the equity method |
3 | 9 | 6 |
| Profit (loss) from continuing operations before income taxes | 945 | 896 | 578 |
| Income taxes | (216) | (166) | (117) |
| Profit (loss) from continuing operations | 729 | 730 | 461 |
| Profit (loss) from discontinued operations, net of income taxes | (1) | 5 | (4) |
| Profit (loss) for the period | 728 | 735 | 457 |
| Attributable to: | |||
| Shareholders and hybrid capital investors of Infineon Technologies AG | 728 | 735 | 457 |
| Earnings per share (in euro) attributable to shareholders of Infineon Technologies AG1 |
|||
| Weighted average shares outstanding (in million) – basic | 1,302 | 1,302 | 1,301 |
| Basic earnings per share (in euro) from continuing operations | 0.55 | 0.56 | 0.35 |
| Basic earnings per share (in euro) from discontinued operations | - | - | - |
| Basic earnings per share (in euro) | 0.55 | 0.56 | 0.35 |
| Weighted average shares outstanding (in million) – diluted | 1,305 | 1,304 | 1,304 |
| Diluted earnings per share (in euro) from continuing operations | 0.55 | 0.56 | 0.35 |
| Diluted earnings per share (in euro) from discontinued operations | - | - | - |
| Diluted earnings per share (in euro) | 0.55 | 0.56 | 0.35 |
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 10.
For the Business and Trade Press: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
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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).
| € in millions (unless otherwise stated) |
Q1 FY 2023 | Q4 FY 2022 | Change vs. previous quarter in % |
Q1 FY 2022 | Change vs. previous year quarter in % |
|---|---|---|---|---|---|
| Automotive | |||||
| Segment Revenue | 1,872 | 1,934 | (3) | 1,390 | 35 |
| Segment Result | 532 | 506 | 5 | 261 | +++ |
| Segment Result Margin (in %) | 28.4% | 26.2% | 18.8% | ||
| Industrial Power Control | |||||
| Segment Revenue | 500 | 542 | (8) | 382 | 31 |
| Segment Result | 144 | 136 | 6 | 73 | 97 |
| Segment Result Margin (in %) | 28.8% | 25.1% | 19.1% | ||
| Power & Sensor Systems | |||||
| Segment Revenue | 1,043 | 1,169 | (11) | 955 | 9 |
| Segment Result | 301 | 338 | (11) | 285 | 6 |
| Segment Result Margin (in %) | 28.9% | 28.9% | 29.8% | ||
| Connected Secure Systems | |||||
| Segment Revenue | 531 | 492 | 8 | 427 | 24 |
| Segment Result | 125 | 86 | 45 | 100 | 25 |
| Segment Result Margin (in %) | 23.5% | 17.5% | 23.4% | ||
| Other Operating Segments | |||||
| Segment Revenue | 5 | 6 | (17) | 5 | - |
| Segment Result | 2 | 2 | - | 1 | +++ |
| Corporate and Eliminations | |||||
| Segment Revenue | - | - | - | - | - |
| Segment Result | 3 | (10) | +++ | (3) | +++ |
| Infineon total | |||||
| Segment Revenue | 3,951 | 4,143 | (5) | 3,159 | 25 |
| Segment Result | 1,107 | 1,058 | 5 | 717 | 54 |
| Segment Result Margin (in %) | 28.0% | 25.5% | 22.7% |
For the Business and Trade Press: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
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| € in millions | Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Segment Result: | 1,107 | 1,058 | 717 |
| Plus/minus: | |||
| Reversal of impairments (impairments) (in particular on goodwill) | - | 6 | - |
| Share-based payment | (19) | (19) | (10) |
| Acquisition-related depreciation/amortization and other expenses | (118) | (117) | (118) |
| Gains (losses) on sales of businesses, or interests in subsidiaries, net | - | - | 1 |
| Other income and expenses, net | (4) | (8) | 27 |
| Total Non Segment Result | (141) | (138) | (100) |
| Operating profit | 966 | 920 | 617 |
Earnings per share in accordance with IFRS are influenced by amounts relating to purchase price allocations for acquisitions (in particular 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) |
Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Profit (loss) from continuing operations – diluted | 729 | 730 | 461 |
| Compensation of hybrid capital investors1 | (7) | (7) | (7) |
| Profit (loss) from continuing operations attributable to shareholders of Infineon Technologies AG – diluted |
722 | 723 | 454 |
| Plus/minus: | |||
| Non Segment Result2 | 141 | 138 | 100 |
| Tax effect on adjustments | (29) | (32) | (21) |
| Revaluation of deferred tax assets resulting from the annually updated earnings forecast |
- | (12) | (1) |
| Adjusted profit (loss) for the period from continuing operations attributable to shareholders of Infineon Technologies AG – diluted |
834 | 817 | 532 |
| Weighted-average number of shares outstanding (in millions) – diluted | 1,305 | 1,304 | 1,304 |
| Adjusted earnings per share (in euro) – diluted3 | 0.64 | 0.63 | 0.41 |
1 Including the cumulative tax effects.
2 The calculation of the Non Segment Result can be found in the table "Reconciliation of Segment Result to operating profit".
3 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: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
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) 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) |
Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Cost of goods sold | 2,085 | 2,304 | 1,847 |
| Plus/minus: | |||
| Share-based payment | (3) | (3) | (2) |
| Acquisition-related depreciation/amortization and other expenses | (70) | (73) | (70) |
| Other income and expenses, net | (3) | (5) | (4) |
| Adjusted cost of goods sold | 2,009 | 2,223 | 1,771 |
| Adjusted gross margin (in %) | 49.2% | 46.3% | 43.9% |
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.
| 31 Dec 22 | 30 Sep 22 | 31 Dec 21 | |
|---|---|---|---|
| Infineon | 56,951 | 56,194 | 52,403 |
| thereof: Research and development | 12,378 | 12,005 | 10,823 |
For the Business and Trade Press: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
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| € in millions | 31 Dec 22 | 30 Sep 22 |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | 1,421 | 1,438 |
| Financial investments | 2,287 | 2,279 |
| Trade receivables | 1,758 | 1,887 |
| Inventories | 3,239 | 3,081 |
| Current income tax receivables | 49 | 58 |
| Contract assets | 106 | 85 |
| Other current assets | 623 | 625 |
| Assets classified as held for sale | 70 | - |
| Total current assets | 9,553 | 9,453 |
| Property, plant and equipment | 5,757 | 5,545 |
| Goodwill | 6,477 | 7,083 |
| Other intangible assets | 3,172 | 3,483 |
| Right-of-use assets | 382 | 405 |
| Investments accounted for using the equity method | 98 | 100 |
| Non-current income tax receivables | 1 | 2 |
| Deferred tax assets | 480 | 527 |
| Other non-current assets | 374 | 314 |
| Total non-current assets | 16,741 | 17,459 |
| Total assets | 26,294 | 26,912 |
| LIABILITIES AND EQUITY | ||
| Short-term financial debt and current portion of long-term financial debt | 752 | 752 |
| Trade payables | 2,037 | 2,260 |
| Current provisions | 454 | 983 |
| Current income tax payables | 424 | 356 |
| Current lease liabilities | 72 | 76 |
| Other current liabilities | 1,485 | 1,161 |
| Liabilities classified as held for sale | 6 | - |
| Total current liabilities | 5,230 | 5,588 |
| Long-term financial debt | 4,715 | 4,910 |
| Pensions and similar commitments | 293 | 297 |
| Deferred tax liabilities | 329 | 371 |
| Other non-current provisions | 291 | 289 |
| Non-current lease liabilities | 288 | 310 |
| Other non-current liabilities | 214 | 203 |
| Total non-current liabilities | 6,130 | 6,380 |
| Total liabilities | 11,360 | 11,968 |
| Equity: | ||
| Ordinary share capital | 2,612 | 2,612 |
| Additional paid-in capital | 6,601 | 6,579 |
| Retained earnings | 4,224 | 3,506 |
| Other reserves | 307 | 1,067 |
| Own shares | (23) | (23) |
| Hybrid capital | 1,213 | 1,203 |
| Total equity | 14,934 | 14,944 |
| Total liabilities and equity | 26,294 | 26,912 |
For the Business and Trade Press: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
The following table shows the gross cash position and the net cash position. Since some liquid funds are held in the form of financial investments which for IFRS purposes are not classified as cash and cash equivalents, Infineon reports on its gross and net cash positions in order to provide investors with a better understanding of its overall liquidity situation. The gross and net cash positions are determined as follows from the Consolidated Statement of Financial Position:
| € in millions | 31 Dec 22 | 30 Sep 22 | 31 Dec 21 |
|---|---|---|---|
| Cash and cash equivalents | 1,421 | 1,438 | 1,996 |
| Financial investments | 2,287 | 2,279 | 2,288 |
| Gross cash position | 3,708 | 3,717 | 4,284 |
| Minus: | |||
| Short-term financial debt and current portion of long-term financial debt | 752 | 752 | 839 |
| Long-term financial debt | 4,715 | 4,910 | 5,818 |
| Gross financial debt | 5,467 | 5,662 | 6,657 |
| Net cash position | (1,759) | (1,945) | (2,373) |
Infineon reports the Free Cash Flow figure, defined as cash flows from operating activities and cash flows from investing activities, both from continuing operations, after adjusting for cash flows from 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, as dividends, debt-servicing obligations and other fixed disbursements have not been deducted. Free Cash Flow should not be seen as a replacement or as a superior performance indicator, but rather as a useful item of information in addition to 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 determined in accordance with IFRS. Free Cash Flow only includes amounts from continuing operations and is derived as follows from the Consolidated Statement of Cash Flows:
| € in millions | Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Cash flow from operating activities1 | 631 | 1,580 | 796 |
| Cash flow from investing activities1 | (608) | (1,175) | (529) |
| Purchases of (proceeds from sales of) financial investments, net | 2 | 304 | 111 |
| Free Cash Flow | 25 | 709 | 378 |
1 From continuing operations
For the Business and Trade Press: INFXX202302.054e
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.: +1 408 456 1980 Tel.: +65 6876 3070 Tel.: +86 21 6101 9199 Tel.: +81 3 4595 7079
[email protected] [email protected] [email protected] [email protected] [email protected]
| € in millions | Q1 FY 2023 |
Q4 FY 2022 |
Q1 FY 2022 |
|---|---|---|---|
| Profit (loss) for the period | 728 | 735 | 457 |
| Plus: profit (loss) from discontinued operations, net of income taxes | 1 | (5) | 4 |
| Adjustments to reconcile to cash flows from operating activities: | |||
| Depreciation and amortization | 429 | 443 | 393 |
| Other expenses and income | 269 | 205 | 161 |
| Change in assets, liabilities and equity | (670) | 408 | (132) |
| Interests received and paid | (33) | (5) | (36) |
| Income taxes received (paid) | (93) | (201) | (51) |
| Cash flows from operating activities from continuing operations | 631 | 1,580 | 796 |
| Cash flows from operating activities from discontinued operations | (1) | (4) | (1) |
| Cash flows from operating activities | 630 | 1,576 | 795 |
| Proceeds from sales of (purchases of) financial investments, net | (2) | (304) | (111) |
| Acquisitions of businesses, net of cash acquired | - | - | (17) |
| Purchases of other intangible assets and other assets | (57) | (91) | (53) |
| Purchases of property, plant and equipment | (548) | (775) | (355) |
| Other investing activities | (1) | (5) | 7 |
| Cash flows from investing activities | (608) | (1,175) | (529) |
| Proceeds from issuance of (repayment of) short-/long-term financial debt | - | (558) | (5) |
| Other financing activities | (25) | (27) | (18) |
| Cash flows from financing activities | (25) | (585) | (23) |
| Net change in cash and cash equivalents | (3) | (184) | 243 |
| Effect of foreign exchange rate changes on cash and cash equivalents | (14) | 28 | 4 |
| Cash and cash equivalents at beginning of period | 1,438 | 1,594 | 1,749 |
| Cash and cash equivalents at end of period | 1,421 | 1,438 | 1,996 |
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 disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking 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: INFXX202302.054e
| Bernd Hops (Headquarters) | Tel.: +49 89 234 23888 | [email protected] | |
|---|---|---|---|
| Judy Davies (Americas) | Tel.: +1 408 456 1980 | [email protected] | |
| Chi Kang David Ong (Asia-Pacific) | Tel.: +65 6876 3070 | [email protected] | |
| Lin Zhu (Greater China) | Tel.: +86 21 6101 9199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | Tel.: +81 3 4595 7079 | [email protected] | |
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