AI Terminal
Infineon Technologies AG
Earnings Release • Aug 5, 2024
222_10-q_2024-08-05_84d0fc68-81f8-4e19-b220-b2f1be4758ae.pdf
Earnings Release
Open in ViewerOpens in native device viewer
Infincon
PRESS RELEASE
Slight increase in revenue and earnings in Q3 FY 2024. Further improvement expected in Q4 FY 2024. Full-year forecast well within the previously guided range
- Q3 FY 2024: Revenue €3.702 billion, Segment Result €734 million, Segment Result Margin 19.8 percent
- Outlook for Q4 FY 2024: Assuming an exchange rate of US\$1.10 to the euro, revenue of around $€ 4.0$ billion expected. On this basis, the Segment Result Margin is forecast to be around 20 percent
- Outlook for FY 2024: Based on the results from the first three quarters and the outlook for the fourth quarter, revenue of around $€ 15.0$ billion and a Segment Result Margin of around 20 percent is expected. Adjusted gross margin is expected to be in the low-forties percentage range. Investments are planned at around $€ 2.8$ billion. Adjusted Free Cash Flow, which is adjusted for investments in large frontend buildings and the purchase of GaN Systems, is expected to be about $€ 1.5$ billion and reported Free Cash Flow about minus $€ 200$ million
Neubiberg, 5 August 2024 - Today, Infineon Technologies AG is reporting results for the third quarter of its 2024 fiscal year (period ended 30 June 2024).
"In a market environment that remains challenging, Infineon continues to hold up well," says Jochen Hanebeck, CEO of Infineon. "The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand. In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the "Step Up" structural improvement program."
Group performance in the third quarter of the 2024 fiscal year
In the third quarter of the 2024 fiscal year, Infineon's Group revenue improved slightly to $€ 3,702$ million, up 2 percent from the revenue generated in the prior quarter of $€ 3,632$ million. The main contributors to this increase in revenue were the Automotive (ATV) and Power \& Sensor Systems (PSS) segments. Revenue in the Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments was virtually unchanged from the previous quarter.
[^0]
[^0]: Public / For the Business and Trade Press: INFXX202408-130e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Chi Kang David Ong (Asia-Pacific)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+6568763070
+862161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
The gross margin in the third quarter of the current fiscal year rose to 40.2 percent, compared with 38.6 percent in the prior quarter. The adjusted gross margin increased to 42.2 percent, compared with 41.1 percent in the second quarter.
The Segment Result improved in the third quarter of the 2024 fiscal year to $€ 734$ million, from $€ 707$ million in the prior quarter. The Segment Result Margin rose to 19.8 percent, from 19.5 percent in the second quarter.
The Non-Segment Result for the third quarter of the 2024 fiscal year was a net loss of $€ 215$ million, compared with a net loss of $€ 211$ million in the prior quarter. The thirdquarter Non-Segment Result comprised $€ 71$ million relating to cost of goods sold, $€ 15$ million relating to research and development expenses and $€ 54$ million relating to selling, general and administrative expenses. In addition, it included net other operating expenses of $€ 75$ million. A significant component of this figure corresponded to writedowns of plant and machinery at the Regensburg site that can now only be used to a limited extent or not at all in connection with the "Step Up" structural improvement program.
In the third quarter of the 2024 fiscal year, operating profit improved to $€ 519$ million, up from $€ 496$ million in the prior quarter.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +1 4082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +65 68763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +86 2161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
The financial result in the third quarter of the current fiscal year was a net loss of $€ 30$ million, compared with a net loss of $€ 12$ million in the preceding quarter.
The tax expense in the third quarter of the current fiscal year was $€ 88$ million, compared with $€ 93$ million in the prior quarter.
Profit from continuing operations in the third quarter of the 2024 fiscal year increased to $€ 404$ million, compared with $€ 394$ million in the prior quarter. The result from discontinued operations was a loss of $€ 1$ million, after $€ 0$ million in the preceding quarter. The profit for the period improved in the third quarter of the current fiscal year to $€ 403$ million, up from the $€ 394$ million achieved in the second quarter of the 2024 fiscal year.
Earnings per share from continuing operations (basic) improved slightly in the third quarter of the 2024 fiscal year to $€ 0.31$, from $€ 0.30$ in the previous quarter. Diluted earnings per share from continuing operations remained unchanged from the prior quarter at $€ 0.30$. Adjusted earnings per share ${ }^{1}$ (diluted) rose slightly in the third quarter of the current fiscal year to $€ 0.43$, compared with $€ 0.42$ in the prior quarter.
Investments - which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs increased in the third quarter of the current fiscal year to $€ 700$ million, up from $€ 643$ million in the prior quarter. Depreciation and amortization in the third quarter of the 2024 fiscal year amounted to $€ 470$ million, compared with $€ 467$ million in the preceding quarter.
Free Cash Flow ${ }^{2}$ improved in the third quarter of the current fiscal year to $€ 393$ million from $€ 82$ million in the prior quarter.
The gross cash position at the end of the third quarter of the current fiscal year was $€ 2,345$ million, compared with $€ 2,583$ million at the end of the prior quarter. Financial debt decreased from $€ 5,941$ million at 31 March 2024 to $€ 5,386$ million at 30 June 2024. Capital market liabilities of US $\$ 350$ million were repaid in the third quarter. The net cash position improved by $€ 317$ million from net financial debt of $€ 3,358$ million at the end of the second quarter to net financial debt of $€ 3,041$ million at the end of the third quarter of the 2024 fiscal year.
Segment earnings for the third quarter of the 2024 fiscal year
Revenue in the Automotive segment rose in the third quarter of the 2024 fiscal year to $€ 2,112$ million, up from $€ 2,078$ million in the prior quarter. The 2 percent increase was the
[^0]
[^0]: ${ }^{1}$ 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 9 .
${ }^{2}$ For definitions and the calculation of Free Cash Flow and of the gross and net cash positions, see page 12.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
| :-- | :-- | :-- | :-- |
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] | |
result of stronger demand in the area of software-defined vehicles including E/E architecture, benefitting in particular microcontrollers. The Segment Result improved to $€ 537$ million from $€ 512$ million in the second quarter of the current fiscal year. The Segment Result Margin rose to 25.4 percent, up from 24.6 percent in the prior quarter.
In the third quarter of the 2024 fiscal year, revenue in the Green Industrial Power segment remained virtually unchanged from the prior quarter at $€ 475$ million, compared with $€ 469$ million in the second quarter of the fiscal year. Demand in the areas of electric buses and trucks, trains as well as home appliances increased slightly, while demand was somewhat lower in automation and industrial drives as well as air conditioning systems. The Segment Result achieved in the third quarter of the current fiscal year was $€ 88$ million, compared with $€ 89$ million in the second quarter of the 2024 fiscal year. The Segment Result Margin was 18.5 percent, compared with 19.0 percent in the prior quarter.
Revenue in the Power \& Sensor Systems segment rose in the third quarter of the 2024 fiscal year by 5 percent to $€ 749$ million, up from $€ 713$ million in the prior quarter. The reason for the increase in revenue was rising demand for components in the area of servers and data centers as well as USB controllers and silicon microphones. The Segment Result increased in the third quarter of the current fiscal year to $€ 70$ million, up from $€ 64$ million in the prior quarter. The Segment Result Margin improved slightly to 9.3 percent, from 9.0 percent in the second quarter.
Revenue in the Connected Secure Systems segment remained virtually unchanged in the third quarter of the 2024 fiscal year at $€ 366$ million, compared with $€ 371$ million in the prior quarter. Demand in the area of Wi-Fi was slightly weaker, while it remained more or less unchanged in other applications compared with the previous quarter. At $€ 42$ million, the Segment Result remained unchanged. The Segment Result Margin improved slightly to 11.5 percent, up from 11.3 percent in the second quarter of the current fiscal year.
Outlook for the fourth quarter of the 2024 fiscal year
Assuming an exchange rate of US $\$ 1.10$ to the euro, Infineon expects to generate revenue of around $€ 4.0$ billion in the fourth quarter of the 2024 fiscal year. It is anticipated that revenue will increase in all four segments compared with the preceding quarter. In the Power \& Sensor Systems and Connected Secure Systems segments, the growth rate is expected to significantly exceed the forecast growth rate for the Group. In the Automotive and Green Industrial Power segments, the growth rate is expected to be lower than the average rate for the Group. It is expected that the Segment Result Margin will be around 20 percent.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
Outlook for the 2024 fiscal year
Based on the results for the first three quarters and the outlook for the fourth quarter, Infineon expects to generate revenue of around $€ 15.0$ billion in the 2024 fiscal year. In the Automotive segment, revenue growth for the year is expected to be about 3 percent. The decrease in revenue in the Green Industrial Power segment is expected to be a low-teens percentage figure. The decline in revenue in the Power \& Sensor Systems segment compared with the prior fiscal year is forecast to be in the high-teens and in the Connected Secure Systems segment in the mid-twenties percentage range.
With expected Group revenue in the 2024 fiscal year of $€ 15.0$ billion, the adjusted gross margin is still forecast to be in the low-forties percentage range and the Segment Result Margin to be around 20 percent.
Investments - which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs are expected to reach around $€ 2.8$ billion in the 2024 fiscal year. The focus here is on investment in manufacturing modules for compound semiconductors on the Kulim site (Malaysia) and for analog/mixed-signal components in Dresden (Germany).
Depreciation and amortization are anticipated to be around $€ 1.9$ billion in the 2024 fiscal year, of which around $€ 400$ million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow, which is adjusted for investment in large frontend buildings and the purchase of GaN Systems, is expected to be about $€ 1.5$ billion, which is about 10 percent of the forecast revenue for the year. Reported Free Cash Flow should be around minus $€ 200$ million. Without the purchase price payment for the acquisition of GaN Systems reported Free Cash Flow would probably reach around plus $€ 600$ million. Return on Capital Employed (RoCE) is forecast to be around 9 percent.
Telephone press conference and analyst telephone conference
On 5 August 2024 the Management Board of Infineon will host a telephone press conference with the media at 8:00 am (CEST), 2:00 am (EDT). It can be followed over the Internet in both English and German. In addition a telephone conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CEST), 3:30 am (EDT). During both calls, the Infineon Management Board will present the Company's results for the third quarter of the 2024 fiscal year as well as the outlook for the fourth quarter and the 2024 fiscal year. The conferences will also be available live and for download on Infineon's website at www.infineon.com/investor
[^0]
[^0]: Public / For the Business and Trade Press: INFXX202408-130e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Chi Kang David Ong (Asia-Pacific)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+6568763070
+862161019199
+81345957079
[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-and-presentations/
Infineon Financial Calendar (* preliminary)
$>27$ Aug 2024
Jefferies Global Semiconductor, IT Hardware \& Communications Technology Conference, Chicago
$>28$ Aug 2024
$>4$ - 5 Sep 2024
$>4$ - 5 Sep 2024
$>23$ Sep 2024
$>24$ Sep 2024
$>25$ Sep 2024
$>12$ Nov 2024
$>21$ Nov 2024
$>4$ Dec 2024
$>4$ - 5 Dec 2024
$>4$ Feb 2025
$>20$ Feb 2025*
DB Dana Point Conference, Los Angeles
DB Access European TMT Conference, London
Citi Global Technology Conference, New York
Berenberg Goldman Sachs German Corporate Conference, Munich
Baader Investment Conference, Munich
Bernstein Pan European Annual Strategic Decisions
Conference, London
Earnings Release for the Fourth Quarter and the 2024
Fiscal Year
Morgan Stanley European TMT Conference, Barcelona
ATV presentation and roadshow with Peter Schiefer, Head of ATV, London
UBS Global TMT Conference, Scottsdale
Earnings Release for the First Quarter of the 2025 Fiscal Year
Annual General Meeting 2025
About Infineon
Infineon Technologies AG is a global semiconductor leader in power systems and loT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 58,600 employees worldwide (end of September 2023) and generated revenue of about $€ 16.3$ billion in the 2023 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 https://www.infineon.com/
Follow us: X - Facebook - LinkedIn
[^0]
[^0]: Public / For the Business and Trade Press: INFXX202408-130e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Chi Kang David Ong (Asia-Pacific)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
$+498923423888$
$+14082501814$
$+6568763070$
$+862161019199$
$+81345957079$
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
FINANCIAL INFORMATION
According to IFRS - Unaudited
The following financial data relates to the third quarter of the 2024 fiscal year ended 30 June 2024 and the corresponding prior quarter and prior year period.
Consolidated Statement of Profit or Loss
| $€$ in millions | Q3 FY 2024 |
Q2 FY 2024 |
Q3 FY 2023 |
9M FY 2024 |
9M FY 2023 |
|---|---|---|---|---|---|
| Revenue | 3,702 | 3,632 | 4,089 | 11,036 | 12,160 |
| Cost of goods sold | $(2,213)$ | $(2,229)$ | $(2,268)$ | $(6,543)$ | $(6,554)$ |
| Gross profit | 1,492 | 1,403 | 1,821 | 4,493 | 5,606 |
| Research and development expenses | $(509)$ | $(487)$ | $(496)$ | $(1,509)$ | $(1,468)$ |
| Selling, general and administrative expenses | $(398)$ | $(375)$ | $(396)$ | $(1,161)$ | $(1,200)$ |
| Other operating income | 8 | 13 | 79 | 47 | 159 |
| Other operating expenses | $(83)$ | $(58)$ | $(12)$ | $(153)$ | $(62)$ |
| Operating profit | 58 | 496 | 996 | 1,717 | 3,035 |
| Financial income | 2 | 36 | 32 | 91 | 70 |
| Financial expenses | $(53)$ | $(48)$ | $(37)$ | $(108)$ | $(116)$ |
| Share of profit (loss) of associates and joint ventures accounted for using the equity method | 1 | 3 | 11 | 10 | 22 |
| Profit (loss) from continuing operations before income taxes | 492 | 487 | 1,002 | 1,710 | 3,011 |
| Income taxes | $(83)$ | $(93)$ | $(167)$ | $(314)$ | $(621)$ |
| Profit (loss) from continuing operations | 402 | 394 | 835 | 1,396 | 2,390 |
| Profit (loss) from discontinued operations, net of income taxes | $(1)$ | - | $(4)$ | $(12)$ | $(6)$ |
| Profit (loss) for the period | 402 | 394 | 831 | 1,384 | 2,384 |
| Attributable to: | |||||
| Shareholders and hybrid capital investors of Infineon Technologies AG | 402 | 394 | 831 | 1,384 | 2,384 |
| Earnings per share (in euro) attributable to shareholders of Infineon Technologies AG ${ }^{1}$ | |||||
| Weighted average shares outstanding (in million) - basic | 1,292 | 1,302 | 1,304 | 1,302 | 1,303 |
| Basic earnings per share (in euro) from continuing operations | 0.32 | 0.30 | 0.64 | 1.06 | 1.82 |
| Basic earnings per share (in euro) from discontinued operations | $(0.01)$ | - | $(0.01)$ | $(0.01)$ | $(0.01)$ |
| Basic earnings per share (in euro) | 0.30 | 0.30 | 0.63 | 1.05 | 1.81 |
| Weighted average shares outstanding (in million) - diluted | 1,302 | 1,307 | 1,308 | 1,306 | 1,306 |
| Diluted earnings per share (in euro) from continuing operations | 0.32 | 0.30 | 0.63 | 1.05 | 1.81 |
| Diluted earnings per share (in euro) from discontinued operations | - | - | - | $(0.01)$ | - |
| Diluted earnings per share (in euro) | 0.30 | 0.30 | 0.63 | 1.04 | 1.81 |
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 9.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
Revenues, Results and Margins of the Segments
Segment Result is defined as operating profit excluding certain net impairments and reversal of impairments, the impact on earnings of restructuring and closures, sharebased payment, acquisition-related depreciation/amortization and other expense, impact on earnings of sales of businesses or interests in subsidiaries, and other income (expense).
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +1 4082501814 | [email protected] | [email protected] |
| Chi Kang David Ong (Asia-Pacific) | +65 68763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +86 2161019199 | [email protected] | [email protected] |
Reconciliation of Segment Result to operating profit
| Q3 | Q2 | Q3 | |
|---|---|---|---|
| € in millions | FY 2024 | FY 2024 | FY 2023 |
| Segment Result: | 734 | 707 | 1,067 |
| Plus/minus: | |||
| Certain reversal of impairments (impairments) | $(64)$ | $(37)$ | - |
| Gains (losses) from restructuring and closures | $(10)$ | $(13)$ | 4 |
| Share-based payment | $(35)$ | $(28)$ | $(29)$ |
| Acquisition-related depreciation/amortization and other expenses | $(98)$ | $(122)$ | $(106)$ |
| Gains (losses) on sales of businesses, or interests in subsidiaries | - | - | - |
| Other income and expenses | $(8)$ | $(11)$ | 60 |
| Total Non Segment Result | $(215)$ | $(211)$ | $(71)$ |
| Operating profit | 115 | 496 | 996 |
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), 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) |
Q3 FY 2024 |
Q2 FY 2024 |
Q3 FY 2023 |
|---|---|---|---|
| Profit (loss) from continuing operations - diluted | 404 | 394 | 835 |
| Compensation of hybrid capital investors ${ }^{1}$ | (7) | (7) | (7) |
| Profit (loss) from continuing operations attributable to shareholders of Infineon Technologies AG - diluted | 397 | 387 | 828 |
| Plus/minus: | |||
| Non Segment Result ${ }^{2}$ | 215 | 211 | 71 |
| Acquisition-related expenses within financial result | - | - | 1 |
| Tax effect on adjustments | $(55)$ | $(47)$ | $(13)$ |
| Adjusted profit (loss) for the period from continuing operations attributable to shareholders of Infineon Technologies AG - diluted | 557 | 551 | 887 |
| Weighted-average number of shares outstanding (in millions) - diluted | 1,304 | 1,307 | 1,308 |
| Adjusted earnings per share (in euro) - diluted ${ }^{3}$ | 0.43 | 0.42 | 0.68 |
1 Including the cumulative tax effect.
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.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
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) 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) |
Q3 | Q2 | Q3 |
|---|---|---|---|
| Cost of goods sold | FY 2024 | FY 2024 | FY 2023 |
| Plus/minus: | |||
| Gains (losses) from restructuring and closures | $(3)$ | 4 | |
| Share-based payment | $(5)$ | $(4)$ | $(4)$ |
| Acquisition-related depreciation/amortization and other expenses | $(62)$ | $(79)$ | $(62)$ |
| Other income and expenses, net | $(4)$ | $(5)$ | $(5)$ |
| Adjusted cost of goods sold | 2,141 | 2,138 | 2,201 |
| Adjusted gross margin (in \%) | 42.2\% | 41.1\% | 46.2\% |
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.
Number of employees
| 30 Jun 24 | 31 Mar 24 | 30 Jun 23 | |
|---|---|---|---|
| Infineon | 59,666 | 59,364 | 57,888 |
| thereof: Research and development | 13,265 | 13,194 | 12,638 |
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
Consolidated Statement of Financial Position
1 Due to the increasing significance of contract liabilities for the financial position, these are now presented as a separate line item in the statement of financial position (but were previously included under other current and non-current liabilities). The prior year was adjusted accordingly.
Public / For the Business and Trade Press: INFXX202408-130e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Chi Kang David Ong (Asia-Pacific)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
$+498923423888$
+14082501814
+6568763070
+862161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 89 234 26655
[email protected]
Consolidated Statement of Cash Flows
Gross and Net Cash Position
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 | 30 Jun 24 | 31 Mar 24 | 30 Sep 23 |
|---|---|---|---|
| Cash and cash equivalents | 1,744 | 1,786 | 1,820 |
| Financial investments | 601 | 797 | 1,770 |
| Gross cash position | 2,345 | 2,583 | 3,590 |
| Minus: | |||
| Short-term financial debt and current portion of long-term financial debt | 999 | 1,573 | 330 |
| Long-term financial debt | 4,387 | 4,368 | 4,403 |
| Gross financial debt | 5,386 | 5,941 | 4,733 |
| Net cash position | $(3,041)$ | $(3,358)$ | $(1,143)$ |
Free Cash Flow
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 is derived as follows from the Consolidated Statement of Cash Flows:
| Q3 | Q2 | Q3 | |
|---|---|---|---|
| € in millions | FY 2024 | FY 2024 | FY 2023 |
| Cash flow from operating activities ${ }^{1}$ | 1,092 | 744 | 1,033 |
| Cash flow from investing activities ${ }^{1}$ | $(500)$ | $(360)$ | $(141)$ |
| Purchases of (proceeds from sales of) financial investments, net | $(199)$ | $(302)$ | $(566)$ |
| Free Cash Flow | 393 | 82 | 326 |
1 From continuing operations.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Chi Kang David Ong (Asia-Pacific) | +6568763070 | [email protected] | [email protected] |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
Condensed Consolidated Statement of Cash Flows
| € in millions | Q3 FY 2024 |
Q2 FY 2024 |
Q3 FY 2023 |
$\begin{gathered} \text { 9M } \ \text { GJ } 2024 \end{gathered}$ | $\begin{gathered} 9 \mathrm{M} \ \text { GJ } 2023 \end{gathered}$ |
|---|---|---|---|---|---|
| Profit (loss) for the period | 402 | 394 | 831 | 1,954 | 2,384 |
| Plus: profit (loss) from discontinued operations, net of income taxes | 1 | - | 4 | 12 | 6 |
| Adjustments to reconcile to cash flows from operating activities: | |||||
| Depreciation and amortization | 410 | 467 | 441 | 1,392 | 1,303 |
| Other expenses and income | 21 | 203 | 131 | 560 | 635 |
| Change in assets, liabilities and equity | 16 | (193) | (215) | (1,135) | (1,569) |
| Interests received and paid | (62) | 7 | (59) | (78) | (85) |
| Income taxes received (paid) | (111) | (134) | (100) | (464) | (363) |
| Cash flows from operating activities from continuing operations | 1,092 | 744 | 1,033 | 1,691 | 2,311 |
| Cash flows from operating activities from discontinued operations | (2) | 1 | - | (4) | (3) |
| Cash flows from operating activities | 1,082 | 745 | 1,033 | 1,697 | 2,308 |
| Proceeds from sales of (purchases of) financial investments, net | 19 | 302 | 566 | 1,149 | 837 |
| Payments for the aquisition of subsidiaries or other businesses, net of cash acquired | - | (20) | (802) | (20) | |
| Purchases of other intangible assets and other assets | (62) | (71) | (63) | (205) | (181) |
| Purchases of property, plant and equipment | (636) | (572) | (705) | (1,792) | (1,756) |
| Other investing activities | 7 | (19) | 81 | (14) | 192 |
| Cash flows from investing activities from continuing operations | (506) | (360) | (141) | (1,664) | (928) |
| Cash flows from investing activities from discontinued operations | - | - | - | - | |
| Cash flows from investing activities | (506) | (360) | (141) | (1,664) | (928) |
| Issuance of (repayment of) long-term financial debt | (327) | 500 | (752) | 177 | (753) |
| Issuance of (repayment of) short-term financial debt | (259) | - | - | 500 | - |
| Proceeds from hybrid capital (cash outflow to hybrid capital investors) | (39) | - | (39) | (39) | (39) |
| Proceeds from issuance/payments for repurchase of ordinary shares | (233) | - | (233) | - | |
| Dividend payments | (456) | - | (456) | (417) | |
| Other financing activities | (26) | (19) | 2 | (44) | (71) |
| Cash flows from financing activities from continuing operations | (632) | (208) | (789) | (959) | (1,280) |
| Cash flows from financing activities from discontinued operations | - | - | - | - | |
| Cash flows from financing activities | (632) | (208) | (789) | (959) | (1,280) |
| Net change in cash and cash equivalents | (40) | 177 | 103 | (72) | 100 |
| Effect of foreign exchange rate changes on cash and cash equivalents | 2 | (5) | (4) | (15) | |
| Cash and cash equivalents at beginning of period | 1,762 | 1,607 | 1,425 | 1,820 | 1,438 |
| Cash and cash equivalents at end of period | 1,742 | 1,786 | 1,523 | 1,744 | 1,523 |
Public / For the Business and Trade Press: INFXX202408-130e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Chi Kang David Ong (Asia-Pacific)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+6568763070
+862161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
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.
The Quarterly Group Statement 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 Quarterly Group Statement 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 Quarterly Group Statement are unaudited.
Public / For the Business and Trade Press: INFXX202408-130e
| Andre Tauber (Headquarters) | $+498923423888$ | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | $+14082501814$ | [email protected] | $+498923426655$ |
| Chi Kang David Ong (Asia-Pacific) | $+6568763070$ | [email protected] | [email protected] |
| Lin Zhu (Greater China) | $+862161019199$ | [email protected] | |
| Yasuyuki Kamiseki (Japan) | $+81345957079$ | [email protected] |