AI assistant
Infineon Technologies AG — Investor Presentation 2007
Mar 13, 2007
222_ip_2007-03-13_3a7e004b-5f9b-4d51-9677-8509032b4515.pdf
Investor Presentation
Open in viewerOpens in your device viewer
IFX Day 2007
Munich, March 13, 2007
Strategic Direction and Financial Targets
Dr. Wolfgang Ziebart President and CEO
infineon Never stop thinking
Disclaimer
Infineon
This presentation was prepared as of March 13, 2007 and is current only as of that date.
This presentation includes forward-looking statements about the future of Infineon's business and the industry in which it operates. These include statements relating to future developments in the world semiconductor market, including the market for memory products, Infineon's future growth, the benefits of research and development alliances and activities, Infineon's planned levels of future investment in the expansion and modernization of its production capacity, the introduction of new technology at its facilities, the continuing transitioning of its production processes to smaller structure sizes, cost savings related to such transitioning and other initiatives, Infineon's successful development of technology based on industry standards, Infineon's ability to offer commercially viable products based on its technology, Infineon's ability to achieve its cost savings and growth targets, and the impact of the carve-out of Qimonda, the group's memory products business, its initial public offering, and any further sales of Qimonda shares or other corporate financing measures in that regard.
These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for Infineon's products in particular, the success of Infineon's development efforts, both alone and with partners, the success of Infineon's efforts to introduce new production processes, the actions of competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and litigation matters, as well as the other factors mentioned in this presentation and those described in the "Risk Factors" section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on November 30, 2006 or contained in the company's quarterly reports. As a result, Infineon's actual results could differ materially from those contained in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.
Infineon does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Recent Steps
Infineon
Strategic Redirection
3 to 2
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Recent Steps
Infineon
Automotive, Industrial & Multimarket
- Turn-around Discretes
- Turn-around Chipcard
- Ramp-up of new power fab in Kulim, Malaysia, in record time
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Recent Steps
Infineon
Communication Solutions
- Profit, Share Gains in Access
- Turn-around in Tuner, RF Power
- Customer Wins in Baseband: Nokia, LG, Panasonic and others
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Current Status Infineon
Revenue
> € 4 billion
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 9
Current Status Infineon
More than
30,000 employees
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 10
Current Status Infineon
R&D Spending
~ € 800 m
Some 6,000 R&D staff
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 11
Current Status Infineon
More than
20,000
patents
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 12
Current Status
Infineon
Power


Source: IMS Research, Sep. 2006
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 13
Current Status
Infineon
Wireline Access


Source: Gartner Dataquest, June 2006
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Current Status
Infineon
Wireless TRx

Source: Gartner Dataquest, Strategy Analytics, Infineon
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Current Status
Infineon
Chipcard
Market Share 29%


Source: Gartner Dataquest, June 2006
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Current Status
Infineon
Automotive


Source: Strategy Analytics, May 2006
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Energy Efficiency
- Energy savings in power generation
- Energy savings in power transmission
- Energy savings in power consumption
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Security
- Protection and privacy of personal and company data
- Secure e-commerce
- Contactless identification and payment
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Connectivity
- Mobile Phone Platforms: full suite of solutions
- Broadband Access: CO and CPE
- Leader in RF: wireless connectivity everywhere
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Growth in Auto
- Growth Drivers Body and Safety
- Hybrid Cars
- Automotive Connectivity
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Growth in Industry
- CoolMOS in AC/DC
- OptiMOS in DC/DC
- IGBTs in DC/AC
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Growth in Broadband
- VINAX for VDSL2
- Danube for ADSL2 / VoIP
- CPE
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Growth
Infineon
Growth in Wireless
- Design Win Momentum in Single Chip Phones
- Design Win Momentum in Platforms
- Design Win Momentum in RF CMOS Transceivers
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Driving Margins Infineon
In FY 2006
Double-digit EBIT margin
on
~ € 3 bn in sales
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 27
Driving Margins
Infineon
In FY 2006
EBIT loss on ~ € 1 bn sales
in
Chipcard and mainly Baseband
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 28
Driving Margins
Infineon
AIM in FY 2006
Expense > € 70 m for Fabs
Zero
from Sep. 2007 on
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 29
Driving Margins
Infineon
Chipcard in FY 2006
Double-digit € m loss
Chipcard in FY 2007
Break–Even and New Products
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 30
Driving Margins Infineon
Baseball and Professional Development
Baseband in FY 2006 Causing Losses in COM
Baseball and Professional Development
Design Wins
& Strong Ramp
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 31
Driving Margins
Infineon
Target: ~ 10% EBIT Margin
FY 2007: ~ EBIT Break-Even
FY 2009: ~ 10% EBIT Margin
FY 2008: well on our way towards 10%
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Reducing Capital Intensity Infineon
Advanced Logic
65 nm fabless
Specialty Technologies
In-house
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 34
Reducing Capital Intensity Infineon
CapEx / Sales
10-12%
13-Mar-07 Copyright © Infineon Technologies 2007. All rights reserved. Slide 35
Infineon
Agenda
- Recent Steps
- Current Status
- Driving Growth
- Driving Margins
- Reducing Capital Intensity
- Summary
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon
Summary
FY 2007
- Ramp Baseband
- Stabilize Chipcard
- Lower Fab Expenses
- Break-Even EBIT
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 37
Summary
infineon
FY 2008 and Beyond
- Sales growth in AIM and COM
- 10+% EBIT margin in AIM, profit in COM
- ~ 10% EBIT margin FY2009, well on our way towards that in FY 2008
- Lower capital intensity
13-Mar-07
Copyright © Infineon Technologies 2007. All rights reserved.
Infineon – Never stop thinking
Infineon Never stop thinking