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Infineon Technologies AG
Earnings Release • Feb 4, 2025
222_10-q_2025-02-04_f564a864-4d54-4603-aa9d-2f5895939b2b.pdf
Earnings Release
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Infincon
PRESS RELEASE
Infineon has a slightly better start to the fiscal year than expected and raises its outlook for the year due to currency effects
- Q1 FY 2025: Revenue $€ 3.424$ billion, Segment Result $€ 573$ million, Segment Result Margin 16.7 percent
- Outlook for Q2 FY 2025: Based on an assumed exchange rate of US $\$ 1.05$ to the euro, revenue of around $€ 3.6$ billion expected. On this basis, Segment Result Margin forecast to be in the mid-teens percentage range
- Outlook for FY 2025: Based on an assumed exchange rate of US $\$ 1.05$ to the euro (previously US\$1.10), revenue is now expected to be flat to slightly up (previously: to decline slightly) compared with the prior year. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range. Investments of approximately $€ 2.5$ billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around $€ 1.7$ billion and reported Free Cash Flow around $€ 900$ million
Neubiberg, 4 February 2025 - Today, Infineon Technologies AG is reporting results for the first quarter of the 2025 fiscal year (period ended 31 December 2024).
"Infineon has held up well in a weak market environment, closing its first quarter slightly ahead of expectations," says Jochen Hanebeck, CEO of Infineon. "Against a continued uncertain economic backdrop, our business trajectory in this fiscal year is following the pattern we expected: Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers. This is a prime example of our long-term growth drivers, digitalization and decarbonization."
Group performance in the first quarter of the 2025 fiscal year
In the first quarter of the 2025 fiscal year, Group revenue decreased to $€ 3,424$ million, compared with $€ 3,919$ million in the prior quarter. The 13 percent decline in revenue was the result of weaker demand in all four segments: Automotive (ATV), Green Industrial Power (GIP), Power \& Sensor Systems (PSS) and Connected Secure Systems (CSS).
[^0]
[^0]: Public / For the Business and Trade Press: INFXX202502.050e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+86 2161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
| € in millions (unless otherwise stated) |
Q1 FY 2025 | Q4 FY 2024 | Change vs. previous quarter in $\%$ | Q1 FY 2024 | Change vs. previous year quarter in $\%$ |
|---|---|---|---|---|---|
| Revenue | 3,424 | 3,919 | (13) | 3,702 | (8) |
| Gross margin (in \%) | 39.2\% | 41.4\% | 44.4\% | ||
| Adjusted gross margin ${ }^{1}$ (in \%) | 41.1\% | 43.3\% | 46.1\% | ||
| Segment Result | 573 | 832 | (31) | 831 | (31) |
| Segment Result Margin (in \%) | 16.7\% | 21.2\% | 22.4\% | ||
| Profit (loss) from continuing operations | 243 | 384 | (37) | 598 | (59) |
| Profit (loss) from discontinued operations, net of income taxes | 3 | $(468)$ | $+++$ | (11) | $+++$ |
| Profit (loss) for the period | 246 | $(84)$ | $+++$ | 587 | (58) |
| Basic earnings per share (in euro) from continuing operations ${ }^{2}$ | 0.18 | 0.29 | (38) | 0.45 | (60) |
| Diluted earnings per share (in euro) from continuing operations ${ }^{2}$ | 0.18 | 0.29 | (38) | 0.45 | (60) |
| Adjusted earnings per share (in euro) from continuing operations - diluted ${ }^{2,3}$ | 0.33 | 0.49 | (33) | 0.53 | (38) |
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.
The gross margin in the first quarter of the current fiscal year was 39.2 percent, compared with $41.4^{1}$ percent in the prior quarter. The adjusted gross margin reached 41.1 percent, compared with $43.3^{1}$ percent in the fourth quarter of the 2024 fiscal year.
The Segment Result in the first quarter of the 2025 fiscal year declined to $€ 573$ million. Included in this figure is a compensation payment from a customer of a mid-double-digit million amount. The Segment Result in the prior quarter was $€ 832$ million. The Segment Result Margin decreased to 16.7 percent, compared with 21.2 percent for the last quarter of the 2024 fiscal year.
The first-quarter Non-Segment Result was a net loss of $€ 255$ million, compared with a net loss of $€ 359$ million in the prior quarter. The Non-Segment Result for the first quarter comprised $€ 64$ million relating to cost of goods sold, $€ 18$ million relating to research and development expenses and $€ 56$ million relating to selling, general and administrative expenses. In addition, it included other operating expenses of $€ 117$ million. In the course of restructuring its production process and portfolio as part of its Step Up program, impairment losses of $€ 101$ million were recognized and provisions for anticipated losses of $€ 12$ million were set up in the first fiscal quarter of 2025.
Operating profit for the first quarter of the current fiscal year reached $€ 318$ million, compared with $€ 473$ million in the prior quarter.
[^0]The Gross margin in the first quarter of the current fiscal year was 39.2 percent, compared with $41.4^{1}$ percent in the prior quarter. The adjusted gross margin reached 41.1 percent, compared with $43.3^{1}$ percent in the fourth quarter of the 2024 fiscal year.
The Segment Result in the first quarter of the 2025 fiscal year declined to $€ 573$ million. Included in this figure is a compensation payment from a customer of a mid-double-digit million amount. The Segment Result in the prior quarter was $€ 832$ million. The Segment Result Margin decreased to 16.7 percent, compared with 21.2 percent for the last quarter of the 2024 fiscal year.
The first-quarter Non-Segment Result was a net loss of $€ 255$ million, compared with a net loss of $€ 359$ million in the prior quarter. The Non-Segment Result for the first quarter comprised $€ 64$ million relating to cost of goods sold, $€ 18$ million relating to research and development expenses and $€ 56$ million relating to selling, general and administrative expenses. In addition, it included other operating expenses of $€ 117$ million. In the course of restructuring its production process and portfolio as part of its Step Up program, impairment losses of $€ 101$ million were recognized and provisions for anticipated losses of $€ 12$ million were set up in the first fiscal quarter of 2025.
Operating profit for the first quarter of the current fiscal year reached $€ 318$ million, compared with $€ 473$ million in the prior quarter.
[^1]
[^0]: ${ }^{1}$ To provide more meaningful information, Infineon changed its accounting policy on the allocation of certain expenses with effect from 1 October 2024. This resulted in expenses that were previously included in cost of goods sold being reclassified as research and development expenses. The prior-year figures have been adjusted accordingly.
[^1]: Investor Relations: +49 8923426655
[email protected]
The financial result in the first quarter of the 2025 fiscal year was a net financial loss of $€ 17$ million, compared with a net financial loss of $€ 26$ million in the prior quarter.
The tax expense in the first quarter of the current fiscal year was $€ 60$ million, compared with $€ 64$ million in the final quarter of the 2024 fiscal year.
Profit from continuing operations in the first quarter of the current fiscal year amounted to $€ 243$ million, compared with $€ 384$ million in the preceding quarter. The result from discontinued operations in the first quarter was a profit of $€ 3$ million due to trailing tax effects. In the prior quarter, Infineon recognized a loss from discontinued operations of $€ 468$ million as a result of the settlement with the insolvency administrator of Qimonda. The profit for the period in the first quarter rose to $€ 246$ million, compared with a loss for the period of $€ 84$ million in the prior quarter.
Earnings per share from continuing operations (basic and diluted) stood at $€ 0.18$ at the end of the first quarter of the 2025 fiscal year, compared with $€ 0.29$ in each case one quarter earlier. Adjusted earnings per share ${ }^{2}$ (diluted) amounted to $€ 0.33$ in the first quarter of the current fiscal year, compared with $€ 0.49$ in the preceding quarter.
Investments - which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs in the first quarter of the 2025 fiscal year stood at $€ 731$ million, after $€ 722$ million in the prior quarter. Depreciation and amortization in the first quarter amounted to $€ 487$ million, compared with $€ 473$ million in the fourth quarter of the 2024 fiscal year.
Free Cash Flow ${ }^{3}$ in the first quarter of the current fiscal year was a negative figure of $€ 237$ million, compared with a positive figure of $€ 1,145$ million in the prior quarter.
The gross cash position at the end of the first quarter of the current fiscal year was $€ 1,957$ million, compared with $€ 2,201$ million at the end of the prior quarter. Due to the strength of the US dollar, financial debt increased slightly from $€ 4,811$ million at 30 September 2024 to $€ 4,943$ million at 31 December 2024. The net debt position at the end of the first quarter was $€ 2,986$ million, compared with $€ 2,610$ million at the end of the prior quarter.
Termination and early redemption of the $€ 600$ million hybrid bond on 28 March 2025 On 27 January 2025, Infineon issued an irrevocable redemption notice for the outstanding $€ 600$ million subordinated notes. The hybrid bond, which was disclosed in equity at 31 December 2024, will be redeemed on 28 March 2025 at the principal amount plus accrued interest to the redemption date.
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$2^{2}$ 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 .
For definitions and the calculation of Free Cash Flow and of the gross and net cash positions, see page 15.
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | $+498923426655$ |
| Lin Zhu (Greater China) | +86 2161019199 | [email protected] | [email protected] |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
[^0]: ${ }^{2}$ 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 .
${ }^{3}$ For definitions and the calculation of Free Cash Flow and of the gross and net cash positions, see page 15.
The $€ 600$ million hybrid bond with a first call date of 1 January 2028 will continue to be recognized in equity in accordance with IFRS.
Segment earnings for the first quarter of the 2025 fiscal year
Revenue in the Automotive ${ }^{4}$ segment decreased from $€ 2,149$ million in the final quarter of the 2024 fiscal year to $€ 1,919$ million in the first quarter of the 2025 fiscal year. The 11 percent decline in revenue was primarily the result of the expected inventory adjustments at customers. The Segment Result reached $€ 363$ million, compared with $€ 551$ million in the fourth quarter of the past fiscal year. The Segment Result Margin was 18.9 percent, compared with 25.6 percent in the prior quarter.
In the first quarter of the 2025 fiscal year, revenue in the Green Industrial Power segment declined to $€ 340$ million. Revenue generated in the prior quarter was $€ 503$ million. The 32 percent decrease in revenue was caused by ongoing adjustments to inventory levels, especially affecting industrial drives and renewable energies, as well as by an overall rather weak market environment. The Segment Result fell in the first quarter of the current fiscal year to $€ 34$ million, from $€ 111$ million in the fourth quarter. The Segment Result Margin was 10.0 percent, compared with 22.1 percent in the prior quarter.
Revenue in the Power \& Sensor Systems ${ }^{4}$ segment in the first quarter of the current fiscal year was $€ 820$ million, compared with $€ 861$ million in the prior quarter. Whereas there was a significantly positive trend in revenue from products for servers and data centers, especially for artificial intelligence, revenue in other areas remained stable or was down slightly. The overall reduction in revenue compared with the prior quarter was 5 percent. In contrast, the Segment Result improved from $€ 105$ million in the fourth quarter to $€ 149$ million in the first quarter of the current fiscal year. This figure includes a compensation payment from a customer of a mid-double-digit million amount. The Segment Result Margin rose to 18.2 percent from 12.2 percent in the prior quarter.
The Connected Secure Systems segment generated revenue in the first quarter of the current fiscal year of $€ 344$ million, compared with $€ 406$ million in the prior quarter. The 15 percent decline in revenue was primarily the result of lower revenue from payment cards and some consumer applications. The Segment Result reached $€ 30$ million, compared with $€ 62$ million in the fourth quarter of the 2024 fiscal year. The Segment Result Margin decreased from 15.3 percent in the fourth quarter of the 2024 fiscal year to 8.7 percent in the first quarter of the current fiscal year.
[^0]Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +498923426655 |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | [email protected] |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
[^0]: ${ }^{4}$ From 1 January 2025, the "Sense \& Control" business line, which was previously allocated to the Automotive segment, will be reclassified to the Power \& Sensor Systems segment. The business line generated revenue of $€ 707$ million in the 2024 fiscal year. (Q1 FY24: €175 million, Q2 FY24: €167 million, Q3 FY24: €185 million, Q4 FY24: €180 million). In the first quarter of the 2025 fiscal year, this business line generated revenue of $€ 167$ million.
Outlook for the second quarter of the 2025 fiscal year
Based on an assumed exchange rate of US $\$ 1.05$ to the euro, Infineon expects to generate revenue of around $€ 3.6$ billion in the second quarter of the 2025 fiscal year. Revenue in the ATV segment is expected to increase at around the Group average percentage rate. The increase in revenue in the GIP segment should exceed the Group average, while revenue in the PSS and CSS segments is anticipated to remain more or less constant. The Segment Result Margin is expected to be in the mid-teens percentage range.
Outlook for the 2025 fiscal year
Based on an assumed exchange rate of US $\$ 1.05$ to the euro (previously US $\$ 1.10$ ), revenue in the 2025 fiscal year is now forecast to be flat to slightly up in comparison with the 2024 fiscal year. The previous forecast was for a slight decline in revenue. The increase of the annual prediction is thus primarily related to the expected stronger US dollar. Revenue in the ATV and CSS segments is expected to increase at around the Group average percentage rate. Compared with the prior year, a significant decline in revenue is anticipated in the GIP segment and a significant increase in revenue in the PSS segment. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range.
From 1 January 2025, the "Sense \& Control" business line, which was previously allocated to the ATV segment, was reclassified to the PSS segment. This business line is expected to generate more or less the same level of revenue in the second quarter of the 2025 fiscal year respectively in the full 2025 fiscal year as it achieved in the first quarter of the 2025 fiscal year respectively in the full 2024 fiscal year ( $€ 707$ million). The revenue forecasts for the segments presented above for the second quarter and for the 2025 fiscal year are thus based on the assumption that the revised segment structure had already been applied in the first quarter of the 2025 fiscal year and in the 2024 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 continue to be planned at around $€ 2.5$ billion for the 2025 fiscal year.
Depreciation and amortization are anticipated to be around $€ 2.0$ billion in the 2025 fiscal year, of which approximately $€ 400$ million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow, which is adjusted for investments in frontend buildings, is expected to be about $€ 1.7$ billion. Reported Free Cash Flow should be around $€ 900$ million.
[^0]
[^0]: Public / For the Business and Trade Press: INFXX202502-050e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+86 2161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
Telephone press conference and analyst telephone conference
On 4 February 2025 the Management Board of Infineon will host a telephone press conference with the media at 8:00 am (CET), 2:00 am (ET). 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 (CET), 3:30 am (ET). During both calls, the Infineon Management Board will present the Company's results for the first quarter as well as the outlook for the second quarter and the 2025 fiscal year. The 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-and-presentations/
Infineon Financial Calendar (* preliminary)
$>20$ Feb 2025 Annual General Meeting 2025
$>13$ Feb 2025 Morgan Stanley The Investment Forum Middle East, Abu Dhabi
$>25-26$ Feb 2025 Goldman Sachs Flagship European Technology Conference, London
$>5$ March 2025 Morgan Stanley TMT Conference, San Francisco
$>6-7$ March 2025 Oddo BHF TMT Forum, virtual
$>11$ March 2025 Exane BNP TMT Conference, London
$>12$ March 2025 Citi TMT Conference, London
$>28$ March 2025 Stifel Copenhagen Summit, Copenhagen
$>8$ May 2025 Earnings Release for the Second Quarter of the 2025 Fiscal Year
$>5$ August 2025 Earnings Release for the Third Quarter of the 2025 Fiscal Year
$>13$ November 2025* Earnings Release for the Fourth Quarter and the 2025 Fiscal Year
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 58,060 employees worldwide (end of September 2024) and generated revenue of about $€ 15$ billion in the 2024 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/
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[^0]
[^0]: Public / For the Business and Trade Press: INFXX202502-050e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+1 4082501814
+86 2161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]
FINANCIAL INFORMATION
According to IFRS - unaudited
The following financial data relates to the first quarter of the 2025 fiscal year ended 31 December 2024 and the corresponding prior quarter and prior year period.
Condensed Consolidated Statement of Profit or Loss
| Q1 | Q4 | Q1 | |
|---|---|---|---|
| € in millions | FY 2025 | FY 2024 | FY 2024 |
| Revenue | 3,424 | 3,919 | 3,702 |
| Cost of goods sold ${ }^{1}$ | $(2,081)$ | $(2,298)$ | $(2,059)$ |
| Gross profit | 1,543 | 1,621 | 1,643 |
| Research and development expenses ${ }^{1}$ | $(544)$ | $(522)$ | $(556)$ |
| Selling, general and administrative expenses | $(395)$ | $(393)$ | $(395)$ |
| Other operating income | 63 | 12 | 23 |
| Other operating expenses | $(149)$ | $(245)$ | $(13)$ |
| Operating profit | 318 | 473 | 702 |
| Financial income | 27 | 28 | 34 |
| Financial expenses | $(44)$ | $(54)$ | $(9)$ |
| Share of profit (loss) of associates and joint ventures accounted for using the equity method | 2 | 1 | 5 |
| Profit (loss) from continuing operations before income taxes | 303 | 448 | 732 |
| Income taxes | $(60)$ | $(64)$ | $(134)$ |
| Profit (loss) from continuing operations | 243 | 384 | 598 |
| Profit (loss) from discontinued operations, net of income taxes | 3 | $(468)$ | $(11)$ |
| Profit (loss) for the period | 246 | $(84)$ | 587 |
| Attributable to: | |||
| Shareholders and hybrid capital investors of Infineon Technologies AG | 246 | $(84)$ | 587 |
| Earnings per share (in euro) attributable to shareholders of Infineon Technologies AG ${ }^{2}$ | |||
| Weighted average shares outstanding (in million) - basic | 1,299 | 1,299 | 1,304 |
| Basic earnings per share (in euro) from continuing operations | 0.18 | 0.29 | 0.45 |
| Basic earnings per share (in euro) from discontinued operations | - | $(0.36)$ | $(0.01)$ |
| Basic earnings per share (in euro) | 0.18 | $(0.07)$ | 0.44 |
| Weighted average shares outstanding (in million) - diluted | 1,305 | 1,304 | 1,308 |
| Diluted earnings per share (in euro) from continuing operations | 0.18 | 0.29 | 0.45 |
| Diluted earnings per share (in euro) from discontinued operations | - | $(0.36)$ | $(0.01)$ |
| Diluted earnings per share (in euro) | 0.18 | $(0.07)$ | 0.44 |
| 1 in order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the allocation of certain expenses. This led to a reclassification of expenses from cost of goods sold to research and development expenses. The previous year's figures have been adjusted accordingly. 2 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. |
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
Condensed Consolidated Statement of Comprehensive Income
| € in millions | Q1 FY 2025 |
|
|---|---|---|
| Profit (loss) for the period | 246 | |
| Actuarial gains (losses) on pensions and similar commitments | 15 | |
| Total items that will not be reclassified subsequently to profit or loss | 15 | |
| Currency effects | 702 | |
| Gains (losses) resulting from hedge accounting | 1 | |
| Cost of hedging | ||
| Total items that may be reclassified subsequently to profit or loss | 703 | |
| Other comprehensive income (loss), net of tax | 718 | |
| Total comprehensive income (loss), net of tax | 964 | |
| Attributable to: | ||
| Shareholders and hybrid capital investors of Infineon Technologies AG | 964 |
| Q4 FY 2024 |
Q1 FY 2024 |
|---|---|
| (84) | 587 |
| (49) | (51) |
| (49) | (51) |
| (415) | (392) |
| - | 6 |
| 1 | 6 |
| (414) | (380) |
| (463) | (431) |
| (547) | 156 |
Revenue by region
| € in millions, except percentages | Q1 FY 2025 |
Q4 FY 2024 |
Q1 FY 2024 |
|||
|---|---|---|---|---|---|---|
| Europe, Middle East, Africa | 758 | $22 \%$ | 976 | $25 \%$ | 934 | $25 \%$ |
| therein: Germany | 286 | 8\% | 374 | $10 \%$ | 440 | $12 \%$ |
| Asia-Pacific (excluding Japan, Greater China) | 586 | $17 \%$ | 668 | $17 \%$ | 541 | $15 \%$ |
| Greater China ${ }^{1}$ | 1,342 | $39 \%$ | 1,396 | $36 \%$ | 1,323 | $35 \%$ |
| therein: Mainland China, Hong Kong | 1,027 | $30 \%$ | 1,092 | $28 \%$ | 1,081 | $29 \%$ |
| Japan | 333 | $10 \%$ | 369 | $9 \%$ | 400 | $11 \%$ |
| Americas | 405 | $12 \%$ | 510 | $13 \%$ | 504 | $14 \%$ |
| therein: USA | 333 | $10 \%$ | 421 | $11 \%$ | 422 | $11 \%$ |
| Total | 3,424 | $100 \%$ | 3,919 | $100 \%$ | 3,702 | $100 \%$ |
1 Greater China comprises Mainland China, Hong Kong and Taiwan.
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[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: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
Reconciliation of Segment Result to operating profit
| Q1 | Q4 | Q1 | |
|---|---|---|---|
| € in millions | FY 2025 | FY 2024 | FY 2024 |
| Segment Result: | 373 | 832 | 831 |
| Plus/minus: | |||
| Certain reversal of impairments (impairments) | (101) | (3) | - |
| Gains (losses) from restructuring and closures | (18) | (214) | - |
| Share-based payment | (49) | (35) | (31) |
| Acquisition-related depreciation/amortization and other expenses | (83) | (96) | (94) |
| Gains (losses) on sales of businesses, or interests in subsidiaries | - | (5) | - |
| Other income and expenses | (4) | (6) | (4) |
| Total Non Segment Result | (255) | (359) | (129) |
| Operating profit | 318 | 473 | 702 |
Reconciliation to adjusted earnings and adjusted earnings per share - diluted
Earnings per share in accordance with IFRS (International Financial Reporting Standards) is influenced by amounts relating to purchase price allocations for acquisitions (in particular Cypress) and by other exceptional items. To enable better comparability of operating performance over time, Infineon calculates adjusted earnings per share (diluted) as follows:
Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicators, 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: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
Reconciliation to adjusted cost of goods sold and adjusted 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 calculates the adjusted gross margin as follows:
| € in millions (unless otherwise stated) |
Q1 | Q4 | Q1 |
|---|---|---|---|
| Cost of goods sold ${ }^{1}$ | 2,081 | 2,298 | 2,059 |
| Plus/minus: | |||
| Gains (losses) from restructuring and closures | (2) | - | |
| Share-based payment | (9) | (5) | (5) |
| Acquisition-related depreciation/amortization and other expenses | (32) | (64) | (56) |
| Other income and expenses | (3) | (6) | (4) |
| Adjusted cost of goods sold ${ }^{1}$ | 2,017 | 2,221 | 1,994 |
| Adjusted gross margin (in \%) | $41.1 \%$ | $43.3 \%$ | $46.1 \%$ |
1 In order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the allocation of certain expenses. This led to a reclassification of expenses from cost of goods sold to research and development expenses. The previous year's figures have been adjusted accordingly.
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
| 31 Dec 24 | 30 Sep 24 | 31 Dec 23 | |
|---|---|---|---|
| Infineon | 55,060 | 58,065 | 59,340 |
| Thereof: Research and development | 13,343 | 13,253 | 13,116 |
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | [email protected] |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
Condensed Consolidated Statement of Financial Position
| € in millions | 31 Dec 24 | 30 Sep 24 |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | 1,754 | 1,806 |
| Financial investments | 703 | 395 |
| Trade receivables | 2,059 | 2,250 |
| Inventories | 4,385 | 3,990 |
| Current income tax receivables | 114 | 101 |
| Contract assets | 111 | 105 |
| Other current assets | 1,311 | 1,146 |
| Total current assets | 9,937 | 9,793 |
| Property, plant and equipment | 8,273 | 8,002 |
| Goodwill | 7,308 | 6,797 |
| Other intangible assets | 2,874 | 2,820 |
| Right-of-use assets | 417 | 374 |
| Investments accounted for using the equity method | 124 | 117 |
| Non-current income tax receivables | 24 | 1 |
| Deferred tax assets | 268 | 264 |
| Other non-current assets | 528 | 471 |
| Total non-current assets | 19,732 | 18,846 |
| Total assets | 29,730 | 28,639 |
| LIABILITIES AND EQUITY | ||
| Short-term financial debt and current portion of long-term financial debt | 500 | 500 |
| Trade payables | 2,105 | 1,990 |
| Current provisions | 506 | 698 |
| Current income tax payables | 222 | 301 |
| Current lease liabilities | 81 | 73 |
| Current contract liabilities | 125 | 75 |
| Other current liabilities | 1,672 | 1,509 |
| Total current liabilities | 5,016 | 5,146 |
| Long-term financial debt | 4,443 | 4,311 |
| Pensions and similar commitments | 289 | 303 |
| Deferred tax liabilities | 185 | 177 |
| Other non-current provisions | 215 | 196 |
| Non-current lease liabilities | 815 | 284 |
| Non-current contract liabilities | 126 | 152 |
| Other non-current liabilities | 896 | 851 |
| Total non-current liabilities | 6,479 | 6,274 |
| Total liabilities | 11,495 | 11,420 |
| Equity: | ||
| Ordinary share capital | 2,613 | 2,612 |
| Capital reserve | 6,815 | 6,763 |
| Retained earnings | 7,229 | 6,978 |
| Other reserves | 553 | (150) |
| Own shares | (187) | (187) |
| Hybrid capital | 1,212 | 1,203 |
| Total equity | 14,735 | 17,219 |
| Total liabilities and equity | 29,730 | 28,639 |
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 89 234 23888 |
|---|---|
| Agnes Toan (Americas) | +1 408 250 1814 |
| Lin Zhu (Greater China) | +86 21 6101 9199 |
| Yasuyuki Kamiseki (Japan) | +81 3 4595 7079 |
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 89 234 26655
[email protected]
Condensed Consolidated Statement of Changes in Equity
| Share capital | Capital reserves | Retained earnings | Other reserves | |||
|---|---|---|---|---|---|---|
| € in millions | Currency effects | Hedges | Cost of hedging | |||
| Balance as of 1 October 2024 | 2,612 | 6,763 | 6,978 | (177) | 25 | 2 |
| Total comprehensive income (loss), net of tax | ||||||
| Profit (loss) for the period | - | - | 236 | - | - | - |
| Other comprehensive income (loss), net of tax | - | - | 15 | 702 | 1 | - |
| Total comprehensive income (loss), net of tax | - | - | 251 | 702 | 1 | - |
| Transactions with owners | ||||||
| Contributions by and distributions to owners | ||||||
| Share-based payment | - | 49 | - | - | - | - |
| Other contributions and distributions | - | 3 | - | - | - | - |
| Total contributions by and distributions to owners | - | 52 | - | - | - | - |
| Total transactions with owners | - | 52 | - | - | - | - |
| Balance as of 31 December 2024 | 2,612 | 6,815 | 7,229 | 525 | 26 | 2 |
| Balance as of 1 October 2023 | 2,612 | 6,684 | 6,204 | 342 | 16 | (4) |
| Total comprehensive income (loss), net of tax | ||||||
| Profit (loss) for the period | - | - | 577 | - | - | - |
| Other comprehensive income (loss), net of tax | - | - | (51) | (392) | 6 | 6 |
| Total comprehensive income (loss), net of tax | - | - | 526 | (392) | 6 | 6 |
| Transactions with owners | ||||||
| Contributions by and distributions to owners | ||||||
| Share-based payment | - | 31 | - | - | - | - |
| Other contributions and distributions | - | 3 | - | - | - | - |
| Total contributions by and distributions to owners | - | 34 | - | - | - | - |
| Total transactions with owners | - | 34 | - | - | - | - |
| Balance as of 31 December 2023 | 2,612 | 6,718 | 6,730 | (50) | 22 | 2 |
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[email protected]
[email protected]
[email protected]
[email protected]
Investor Relations:
+49 8923426655
[email protected]
Consolidated Statement of Cash Flows
Gross cash position 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 | 31 Dec 24 | 30 Sep 24 | 31 Dec 23 |
|---|---|---|---|
| Cash and cash equivalents | 1,254 | 1,806 | 1,607 |
| Financial investments | 703 | 395 | 1,105 |
| Gross cash position | 1,557 | 2,201 | 2,712 |
| Minus: | |||
| Short-term financial debt and current portion of long-term financial debt | 500 | 500 | 1,067 |
| Long-term financial debt | 4,443 | 4,311 | 4,331 |
| Gross financial debt | 4,943 | 4,811 | 5,398 |
| Net cash position | $(2,986)$ | $(2,610)$ | $(2,686)$ |
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 acquisition 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, because 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:
| € in millions | Q1 FY 2025 |
Q4 FY 2024 |
Q1 FY 2024 |
|---|---|---|---|
| Cash flows from operating activities ${ }^{1}$ | 539 | 1,850 | (145) |
| Cash flows from investing activities ${ }^{1}$ | (1,082) | (503) | (804) |
| Payments for the acquisition of (proceeds from sales of) financial investments, net | 305 | (202) | (648) |
| Free Cash Flow | (537) | 1,145 | $(1,597)$ |
1 From continuing operations.
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 | [email protected] | Investor Relations: |
|---|---|---|---|
| Agnes Toan (Americas) | +14082501814 | [email protected] | +49 8923426655 |
| Lin Zhu (Greater China) | +862161019199 | [email protected] | [email protected] |
| Yasuyuki Kamiseki (Japan) | +81345957079 | [email protected] |
Condensed Consolidated Statement of Cash Flows
| € in millions | $\begin{gathered} \text { Q1 } \ \text { FY 2025 } \end{gathered}$ | $\begin{gathered} \text { Q4 } \ \text { FY } 2024 \end{gathered}$ | $\begin{gathered} \text { Q1 } \ \text { FY } 2024 \end{gathered}$ |
|---|---|---|---|
| Profit (loss) for the period | 246 | $(84)$ | 587 |
| Plus: profit (loss) from discontinued operations, net of income taxes | (3) | 468 | 11 |
| Adjustments to reconcile to cash flows from operating activities: | |||
| Depreciation and amortization | 487 | 473 | 456 |
| Other expenses and income | 226 | 153 | 159 |
| Change in assets, liabilities and equity | (251) | 897 | $(1,128)$ |
| Interests received and paid | (14) | 12 | (17) |
| Income taxes received (paid) | (152) | (69) | (213) |
| Cash flows from operating activities from continuing operations | 539 | 1,850 | (145) |
| Cash flows from operating activities from discontinued operations | (757) | (2) | |
| Cash flows from operating activities | 539 | 1,093 | (147) |
| Proceeds from sales of (payments for the acquisition of) financial investments, net | (306) | 202 | 648 |
| Payments for the aquisition of subsidiaries or other businesses, net of cash acquired | - | (802) | |
| Payments for the acquisition of other intangible assets | (66) | (82) | (69) |
| Payments for the acquisition of property, plant and equipment | (665) | (640) | (584) |
| Other investing activities | (45) | 17 | 3 |
| Cash flows from investing activities | (1,082) | (503) | (804) |
| Issuance of (repayment of) short-term financial debt | (500) | 750 | |
| Other financing activities | (24) | (20) | (5) |
| Cash flows from financing activities | (24) | (520) | 745 |
| Net change in cash and cash equivalents | (567) | 70 | (206) |
| Currency effects on cash and cash equivalents | 15 | (8) | (7) |
| Cash and cash equivalents at beginning of period | 1,806 | 1,744 | 1,820 |
| Cash and cash equivalents at end of period | 1,254 | 1,806 | 1,607 |
Basis of presentation
The condensed Consolidated Statement of Financial Position, the condensed Consolidated Statement of Profit or Loss, the condensed Consolidated Statement of Comprehensive Income, the condensed Consolidated Statement of Cash Flows and the condensed Consolidated Statement of Changes in Equity have been prepared in accordance with the IFRS, as adopted by the EU and in accordance with IAS 34 "Interim Financial Reporting". The selected explanatory disclosure notes required by IAS 34 are not provided.
In general the same accounting policies were applied as used for the Consolidated Financial Statements as of 30 September 2024. An exemption to this principle is the application of new or revised standards and interpretations that became effective during the year and the change of the accounting policy as of 1 October 2024 in relation to certain expenses, which are now recognized in research and development expenses instead of cost of goods sold. The application of these new or revised standards and the adjusted accounting policy does not have any material impact on Infineon`s financial position, results of operations and cash flows.
Public / For the Business and Trade Press: INFXX202502-050e
| Andre Tauber (Headquarters) | +49 8923423888 |
|---|---|
| Agnes Toan (Americas) | +14082501814 |
| Lin Zhu (Greater China) | +862161019199 |
| Yasuyuki Kamiseki (Japan) | +81345957079 |
[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 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.
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[^0]: Public / For the Business and Trade Press: INFXX202502-050e
Andre Tauber (Headquarters)
Agnes Toan (Americas)
Lin Zhu (Greater China)
Yasuyuki Kamiseki (Japan)
+49 8923423888
+14082501814
+86 2161019199
+81345957079
[email protected]
[email protected]
[email protected]
[email protected]