Investor Presentation • Dec 3, 2008
Investor Presentation
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Quarterly Update
Infineon Technologies Investor Relations
This presentation was prepared as of December 3, 2008 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, the ability of Qimonda to achieve cost savings and the success of any strategic initiatives it may undertake, and any potential disposal of Infineon's interest in Qimonda. 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 at our facilities, the actions of competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and litigation matters, the success of any corporate activities we may undertake with respect to our interest in Qimonda, 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 December 7th, 2007. 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 in light of developments which differ from those anticipated.
ÆIFX Division Highlights
ÆFinancial Details
| R e e n e s v u |
R d d i l d i t 3 0 t ƒ e e n e s o e c r e a s e a r o n p e r c e n q -o -q m a n r e n v u u y v , b l d l i i h A i W i l t t t t s a e s e c n e s n e s e g m e n s o m o e r e e s s y u v , S l i d d i l l i k I M t t & t t. o o n s a n n s r a m a r e u u u , i h i d d i l l i k R A I M t t t t & t t ƒ e e n e s n e o m o e a n n s r a m a r e v u u v u u d d f l i h t t t t t s e g m e n s a r e e x p e c e o e c r e a s e q -o -q r e e c n g e , i l b l i i i f i d i i h t t t t w o r s e n n g g o a r e c e s s o n s g n c a n p r o u c o n c u s n e , d d d i k l i i i h h t t t t t t t a u o m o v e m a r e s w o r w e n v e n o r y r e u c o n s r o u g o u , h l h i d l l b l k i i d d t e s u p p y c a n a n a g e n e r a g o a w e a e n n g n e m a n , R i h W i l S l i i i d t t t t t t ƒ e v e n u e s n e r e e s s o u o n s s e g m e n a r e a n c p a e o b l i l i d b h k i f l b l t t t t e s r o n g y n e g a v e y m p a c e y e w e a e n n g o g o a d d d i d d i i b d i i d d t t t e m a n a n n a o n y a r e u c o n n e m a n a o n e , , i f i t s p e c c c s o m e r. u |
|---|---|
| S t e g m e n P f i t r o |
I f i i i h l S P f i i l l d t t t t t t t t ƒ n n e o n a n c p a e s a o a e g m e n r o e c r e a s e w i i f i l d h l S f i f P E 5 9 t t t t t t t s g n c a n c o m p a r e o e o a e g m e n r o o r o y u i l l i d S i Q f i l i l d h I F R 4 2 0 0 8 t t m o n n e r n s c a e a r, m a n e o e u y y u h d l i i l i i d f i l t t t s a r p r e e n e e c r e a s e o c a p a c a o n a n a n a v u w y u z , f i l h i h h i f D R A M t t t t q a r e r o e m p o r a r g e r c o s s a s s p m e n s o u y , f f f i i l l i f f i l i i d I 2 0 0 D t t t 's w a e r s o u o n n e o n m m e e r w a e r a c y n r e s e n - , G d d d Q i h i h h i t t t t t e r m a n y o m o n a a v e c o m e o a n e n n e r q u a r e r. , T l S P f i i i d b i i d t t t t t t o a e g m e n r o m a r g n s e x p e c e o e a n e g a v e m h i h t t t o g e e n s p e r c e n a g e - |
3/4 of headcount reduction target achieved.
Since August, additional savings have been defined.
Savings expectation in OpEx has doubled from >€50m to >€100m annualized from F3Q 08 to F4Q 09.
Whilst planned savings in COGS have also been revised up, effects of downturn will more than offset these savings on the COGS level.
Æ Reclassification into assets held-and-used given lower likelihood of sale; negotiations ongoing.
ÆIFX Division Highlights
ÆFinancial Details
Autoliv selectes Infineon's NovalithIC™ power chip as sole supplier of power semiconductors for its nextgeneration seatbelt pretension systems.
Bosch selects Infineon's RASIC™ radar chip for adaptive cruise control.
| S t m a r h p o n e |
N d i i i h H S D P A l f X M M ™ I 6 0 8 0 t t e w e s g n w n w p a o r m n l, h h f f h i t t t t t o a e c o m p a n y a s n o w o u r c u s o m e r s o r s l f t p a o r m |
|---|---|
| ---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
ADSL2+downstream up to 25Mbit/s upstream up to 1Mbit/s 3
Gigabit Ethernet LAN 3
2x USB2.03
Concurrent WLAN 11b/g/n 3
Highlights:
Infineon Raises the Bar in Package Design: eWLB (embedded wafer-level ball grid array)
Outstanding cost performance Improved electrical performance
X-GOLD™213 and X-GOLD™618 are first chips to take advantage of eWLB technology
package elements from the upside down
ÆIFX Division Highlights
ÆFinancial Details
| U S G A A P |
I F R S i U S n G A A P t t s r c r e u u |
I F R S P i i t & o s o n t t t r e a m e n |
||
|---|---|---|---|---|
| N S l t e a e s |
3 2 4 1 , |
- | 3 2 4 1 , |
|
| C f G d l d t o s o o o s s o |
( ) 2 8 2 3 , |
( ) 2 0 |
( ) 2 8 4 3 , |
C i l i i d t t a p a z a o n a n i i f |
| R D & |
( ) 7 5 5 |
6 1 |
( ) 9 6 4 |
t t a m o r z a o n o d l t t e v e o p m e n c o s |
| S G A & |
( ) 5 6 9 |
4 | ( ) 5 6 5 |
|
| R i C h t t e s r c r n g a r g e s u u |
( ) 8 1 1 |
( ) 7 |
( ) 8 8 1 |
O h i t t e r o p e r a n g e e n s e s x |
| ( ) O h O i i t t e r p e r a n g n c o m e e p e n s e x |
( ) 3 4 |
( ) 1 5 |
( ) 8 5 |
p |
| O i f i t P t p e r a n g r o |
( ) 5 0 |
2 3 |
( ) 2 7 |
O h i t t e r o p e r a n g |
| ( ) I i t t n e r e s n c o m e e x p e n s e |
( ) 2 6 |
( ) 6 7 |
( ) 9 3 |
/ i n c o m e e x p e n s e s |
| i i i f i d E t t q u y n e a r n n g s o a s s o c a e i t c o m p a n e s n e , |
4 | - | 4 | i i l F n a n c a / I E n c o m e p e n s e s x |
| O h i i t t e r n o n -o p e r a n g n c o m e ( ) t e p e n s e n e x , |
( ) 1 6 |
( ) 1 5 |
( ) 3 1 |
A i f i t t c c r e o n o o p o n b t i t i l c o m p o n e n n c o nv e r e d h b l Æ a n e x c a n g e a e n o |
| M i i i t t t n o r n e r e s y |
1 4 |
( ) 1 4 |
- | h l c a s r e e v a n c e |
| T a x |
( ) 6 1 |
2 0 |
( ) 4 1 |
|
| N I t e n c o m e ( ) i d i t t c o n n u e o p e r a o n s |
( ) 1 3 5 |
( ) 3 5 |
( ) 1 8 8 |
BalanceSheet Capitalization of development cost Æ intangible assets. long term debt Æ lower amount due to option component in equity-linked financing. equity slightly higher: due to classification of minority interest (mainly Altis) as equity.
change in allocation of development cost cash flow between operating and investing activities. Net increase (decrease) in total cash unchanged.
From October 1, 2008, Infineon uses Segment Profit to assess the operating performance of the reportable segments and as a basis for allocating resources among the segments.
| h d d 3 t m o n s e n e S 3 0 0 8 t e p , |
|
|---|---|
| ( ) O i I L t p e r a n g n c o m e o s s |
( ) 2 4 9 |
| A i i t t s s e m p a r m e n s - |
3 2 1 |
| R i d h l d l t t t t t e s r u c u r n g a n o e r r e a e c o s u r e c o s s - |
1 7 6 |
| S h b d i t a r e a s e c o m p e n s a o n e x p e n s e - - |
1 |
| i i i l d i i d A t t t t c q u s o n r e a e a m o r z a o n a n - - / i l g a n s o s s e s |
6 |
| ( ) G i l l f b i t a n s o s s e s o n s a e s o a s s e s s n e s s e s u - , i i b i d i i t t o r n e r e s n s u s a r e s |
( ) 1 1 |
| ( ) O h i t t e r e x p e n s e n c o m e n e - , |
4 |
| S P f i t t e g m e n r o = |
9 5 |
Q4 FY08: revenues up 8% q-o-q due to seasonal effects in industrial business. Auto stable q-o-q as weak US market was offset by solid Asia market. Strong high- and low power business. Chipcard stable, ASIC up due to seasonal effects.
FY 2008: revenues up 29% y-o-y due to acquisitions and HSDPA ramp up. Revenues excluding acquisitions and divestitures and on constant currency base increased 16% y-o-y.
All pie charts indicate in-house/subcontractor split on average over FY07. Sale of ALTIS not considered.
Increase flexibility with higher foundry share
IFX10+ cost reduction program was started early, before economic downturn began to impact. Program is being implemented, additional savings under definition.
In addition to IFX10+, emphasis on cash flows will be increased during the downturn.
We will maintain a focus on excellent customer relationships and investments into our portfolio of outstanding products.
Aim of those measures is to emerge stronger from the downturn and to position us for continued market share gains.
| ) P l i i d U d i d t r e m n a ry a n n a u e 3 m t hs de d on en |
Fo r t he de d y ea rs en |
||||
|---|---|---|---|---|---|
| in Eu i l l ion ro m |
Se 3 0, 0 7 p |
Ju 3 0, 0 8 n |
Se 3 0, 0 8 p |
Se 3 0, 0 7 p |
Se 3 0, 0 8 p |
| Ne les t s a |
1, 1 2 7 |
1, 0 2 9 |
1, 1 5 3 |
4, 0 7 4 |
4, 3 2 1 |
| Co f g ds l d st o oo so |
( ) 7 2 1 |
( ) 6 6 6 |
( ) 7 7 5 |
( ) 2, 7 0 2 |
( ) 2, 8 2 3 |
| Gr f it os s p ro |
4 0 6 |
3 6 3 |
3 8 7 |
1, 3 2 7 |
1, 4 9 8 |
| Re h a d de lop nt se ar c n ve me ex p en se s |
( ) 1 9 1 |
( ) 1 8 1 |
( ) 1 8 7 |
( ) 7 6 8 |
( ) 7 5 5 |
| Se l l ing l a d a dm in ist ive rat , g en era n ex p en se s |
( ) 1 3 5 |
( ) 1 4 5 |
( ) 1 5 1 |
( ) 5 0 0 |
( ) 5 6 9 |
| Re ing ha str tur uc c rg es |
( 3 ) |
( 2 ) |
( 1 7 0 ) |
( 4 5 ) |
( 1 8 1 ) |
| Ot he ing inc ( ), t t r o p era om e ex p en se ne |
( ) 2 |
4 3 |
( ) 1 1 8 |
2 0 |
( ) 4 3 |
| Op ing inc ( los ) t er a om e s |
5 7 |
8 7 |
( 2 4 8 ) |
9 7 |
( 5 0 ) |
| ( ), Int t inc t er es om e ex p en se ne |
( ) 7 |
( ) 1 2 |
2 | ( ) 4 0 |
( ) 2 6 |
| Eq ity in ing f a iat d c ies ea rn s o ss oc e om p an u |
– | 1 | 1 | – | 4 |
| Ot ( ), he ing inc t t r n on -o p era om e ex p en se ne |
( ) 7 |
( ) 1 |
( ) 1 1 |
7 | ( ) 1 6 |
| M ino ity int sts r ere |
( ) 8 |
( ) 7 |
3 8 |
( ) 1 4 |
1 4 |
| Inc ( los ) be fo inc d isc inu d ion d ta t t om e s re om e xe s, on e op er a s, an |
|||||
| d ina los xt e rao r ry s |
5 3 |
5 9 |
( ) 2 1 8 |
3 2 |
( ) 7 4 |
| Inc e t om ax ex p en se |
( 2 ) 5 |
( 1 4 ) |
( 2 6 ) |
( 6 9 ) |
( 6 1 ) |
| Inc ( los ) fro inu ing ion nt t om e s m co o p er a s |
2 8 |
4 5 |
( 2 4 4 ) |
( 3 7 ) |
( 1 3 5 ) |
| Lo fro d isc inu d o ion f t t t t o ss m on e p era s, ne ax |
( 3 0 8 ) |
( 6 3 ) 7 |
( 1 9 ) 5 |
( 2 9 6 ) |
( 2, 9 8 ) 7 |
| Lo be fo d ina los tra ss re ex or ry s |
( 2 8 0 ) |
( 5 9 2 ) |
( 7 6 3 ) |
( 3 3 3 ) |
( 3, 1 2 2 ) |
| Ex d ina los f ta tra t o or ry s, ne x |
– | – | – | ( 3 ) 5 |
– |
| Ne los t s |
( 2 8 0 ) |
( 5 9 2 ) |
( 7 6 3 ) |
( 3 6 8 ) |
( 3, 1 2 2 ) |
Shares in million
| W ig hte d a ha uts tan d ing ba ic d d i lut d e ve rag e s res o s an e – |
7 4 9 |
7 5 0 |
7 5 0 |
7 4 |
9 7 5 0 |
|---|---|---|---|---|---|
| Ba ic d d i lut d e ing ( los ) ha fro inu ing ion ( in Eu ) nt t s an e ar n s s p er s re m co o p era s ro |
0. 0 4 |
0. 0 6 |
( ) 0. 3 3 |
( 0. 0 |
) ( ) 5 0. 1 8 |
| Ba ic d d i lut d los ha fro d isc inu d ion f ta ( in Eu ) t t t o s an e s p er s re m on e op era s, ne x ro |
( 0. 4 1 ) |
( 0. 8 ) 5 |
( 0. 6 9 ) |
( 0. 4 |
0 ) ( 3. 9 8 ) |
| Ba ic d d i lut d los ha fro d ina los f ta ( in Eu ) tra t o s an e s p er s re m ex or ry s, ne ro x |
– | – | – | ( 0. 0 |
) 4 – |
| Ba ic d d i lu d los ha ( in Eu ) te s an s p er s re ro |
( 0. 3 7 ) |
( 0. 7 9 ) |
( 1. 0 2 ) |
( 0. 4 |
9 ) ( 4. 1 6 ) |
* Quarterly earnings (loss) per share may not add up to year-to-date earnings (loss) per share due to rounding.
(Preliminary and Unaudited)
| in Eu i l l io ro m n |
Se 3 0, 0 7 p |
Se 3 0, 0 8 p |
|---|---|---|
| As ts se |
||
| Cu t a ts: rre n ss e |
||
| Ca h a d c h e iva len ts s n as q u |
1, 0 7 3 |
7 4 9 |
| Ma ke b le i ies ta t r se cu r |
2 1 0 |
1 4 3 |
| Tr de iva b le, ts t a ac co un rec e ne |
6 2 0 |
5 8 9 |
| Inv to ies en r |
5 9 8 |
6 6 3 |
| De fe d inc tax rre om e es |
3 4 |
2 6 |
| O he t t a ts r c ur ren ss e |
3 0 3 |
3 7 9 |
| fo As ts he l d d isp l se r os a |
5, 6 5 3 |
2, 2 2 4 |
| To ta l c t a ts ur re n ss e |
8, 4 9 1 |
4, 7 7 3 |
| Pr lan d e ip ty t a t, t op er p n q me n ne u , |
1, 4 6 2 |
1, 3 1 1 |
| In ta i b le ts, t ng as se ne |
8 9 |
3 6 2 |
| Lo inv -te tm ts ng rm es en |
2 4 |
3 3 |
| Re ic d c h tr te s as |
7 7 |
7 7 |
| De fe d inc tax rre om e es |
4 4 6 |
4 0 2 |
| Pe ion ts ns as se |
4 | 1 6 |
| O he t ts r a ss e |
1 6 0 |
1 0 9 |
| To l a ta ts ss e |
5 1 0, 7 3 |
7, 0 8 3 |
| in Eu i l l io ro m n |
Se 3 0, 0 7 p |
Se 3 0, 0 8 p |
|---|---|---|
| L ia b i l i ies d s ha ho l de ' e i t ty a n re rs q u |
||
| Cu l ia b i l i ies t t rre n : |
||
| S ho de b d c i ies t- te t a t m tu t r rm n ur re n a r |
2 6 0 |
2 0 7 |
| Tr de b le ts a ac co un p ay a |
9 6 5 |
4 8 8 |
| Ac d l ia b i l i ies t cru e |
3 7 9 |
4 1 0 |
| De fe d inc tax rre om e es |
1 0 |
1 2 |
| O he l ia b i l i ies t t t r c ur ren |
3 2 6 |
4 3 5 |
| L ia b i l i ies he l d fo d isp l t r os a |
1, 8 9 7 |
2, 0 9 1 |
| To l c l ia b i l i ie ta t t ur re n s |
3, 4 6 8 |
3, 6 4 3 |
| Lo -te de b t ng rm |
1, 1 4 9 |
1, 0 5 1 |
| Pe ion l ia b i l i ies t ns |
3 6 |
4 1 |
| fe De d inc tax rre om e es |
2 3 |
3 |
| Lo d l ia b i l i ies -te t ng rm a cc rue |
2 2 |
2 4 |
| O he l ia b i l i ies t t r |
1 0 8 |
1 0 0 |
| To l l ia b i l i ie ta t s |
4, 8 0 6 |
4, 8 6 2 |
| M ino i in ty te ts r re s |
1, 0 3 3 |
4 5 7 |
| To l s ha ho l de ' e i ta ty re rs q u |
4, 9 1 4 |
1, 6 4 7 |
| To l l ia b i l i ie d ha ho l de ' e i ta t ty s a n s re rs q u |
1 0, 5 3 7 |
0 8 3 7, |
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