Company PresentationNov. 16, 2010
Global semiconductor market
Infineon at a Glance
The Company
- Infineon provides semiconductor and system solutions, focusing on three central needs of our modern society:Energy Efficiency, Mobility and Security
- Revenue in FY 2010**: 3.295 billion EUR
- 26,654* employees worldwide (as of September 2010)
- Strong technology portfolio with about 22,900* patents and patent applications
- More than 21 R&D locations
- Germany's largest semiconductor company
*Note: Including Wireless as discontinued operations; as of September 30, 2010
**Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010
Infineon GroupResults for FY 2010 vs FY 2009
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Copyright © Infineon Technologies 2010. All rights reserved. Page 7 Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010 11/16/2010
Infineon GroupResults for Q4 FY10 vs Q3 FY10
Note: Figures according to IFRS
11/16/2010
Revenues Increased in All Division38%Q3 2010Q4 2010+2%333340ATV12%Q3 2010Q4 2010+5%110115CCS42%Q3 2010Q4 2010+11%373413IMMRevenue* in € million Share of total *: Total Revenue includes Other Operating Segment (Q3 FY10 € 46 m, Q4 FY10 € 48 m), Corporate & Eliminations (Q3 FY10 € 1 m, Q4
FY10 € -5 m) and remaining WLS business (Q3 FY10 € 22 m, Q4 FY10 € 31 m).
Segment Results and Margins Increased in All DivisionSegment Result* (SR) in € million SR Margin *: Total Segment Result includes Other Operating Segment (Q3 FY10 € -1 m, Q4 FY10 € 2 m), Corporate & Eliminations (Q3 FY10 € 0 m, Q4 FY10 € -5 m) and remaining WLS business (Q3 FY10 € -1 m, Q4 FY10 € 6 m). Q3 2010 6Q4 2010 12CCS5%10%Q3 2010 82Q4 2010 98IMM22%24%Q3 2010 52Q4 2010 58 ATV16%17%
The Infineon Compass Guides us on Our Way
Our Purpose
We are the semiconductor innovation leader for energy efficiency, mobility and security. Our solutions help modern society to grow while preserving our environment.
Our Way
Our people are the foundation of Infineon's unique competitive advantages, strong financial results and high performance. We deliver the best to our customers, employees and shareholders - anywhere, anytime.
Our Values
Four core values are the driving force behind our day-to-day execution:we commit – we innovate – we partner – we perform.
Infineon Compass
Paving the Way for a High Performance Company
- Successful restructuring by IFX10+
- -Consequent cost reduction
- -Efficiency increase
- Successful refinancing in 2009
- -Repurchase and redemptions of convertible and exchangeable bonds in 2009 (total: € 367 m nominal)
- -New convertible bond issued 2014, gross proceeds of about € 182 m
- -€ 674 m capital increase, 100% subscribed
- -Strict working capital management, capex discipline
- Consequent adoption of the Infineon portfolio for all target markets
- -World leading in ATV, IMM and CCS
- -Selling WLC to Golden Capital
- -Selling WLS to Intel
-
- Focus on the three major challenges of today's society:
- ¬Energy Efficiency
- ¬Mobility
- ¬Security
We Focus on Our Target Markets
Focus Areas
- Energy Efficiency
- Mobility
Security
Core Competencies
Analog/Mixed Signal
Power
- Embedded Control
- Manufacturing Competence
Our Target Markets
- Automotive
- Industrial Electronics
- Chip Card & Security
Revenue Split by Division
16 November 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 17 ATV€ 1,268m CCS€ 407m 12-months FY 2010 revenue splitIMM€ 1,374m Chip Card& SecurityIndustrial & MultimarketAutomotive
We focus on three areas with highly attractive future perspectives
Automotive
Industrial & Multimarket
Chip Card & Security
Introducing the new focus area "Mobility" reflects:
- Our leadership position in Automotive
- Rising importance of new mobility concepts (e.g. electro mobility) and
- Innovative public transportation solutions for traction & electronic tickets
Energy Efficiency
Key trends
- Soaring total energy demand across the globe amid dwindling fossil energy resources
- Strong CO2 policies to achieve climate goals
- Tapping renewable energies as sustainable energy sources
- Electrification of the drivetrain of commercial and passenger vehicles
Our contribution
- Infineon delivers semiconductor innovations playing a valuable role in minimizing power loss and maximizing power savings along the entire energy supply chain, extending from generation through distribution to actual consumption.
- Our products are the basis for intelligent and optimal use of energy resources in industrial, computing and consumer applications, and in cars.
Mobility
Key trends
- Rigid CO2 regulations and rising oil price
- Increasing rules on safety, focusing on preventive measures
- Rising new requirements in cars for emerging markets
- Urbanization, globalization and demographic change
- Strong investments in local and long distance public transportation systems
Our contribution
- Leading semiconductor solutions contributing to a more sustainable mobility in terms of reduced fuel consumption/emissions, improved safety and affordability.
- As an innovation driver and supplier of key components for electric and hybrid vehicles, Infineon will actively help to shape the paradigm shift towards electro mobility on the road.
- Innovative public transportation solutions for traction and electronic tickets.
Security
Key trends
- Requirements for secure systems are visible in all areas of life
- Secure communication everywhere utilizing mobile phone and internet
- Move to electronic identification of documents and products
- Contactless cards for payment and electronic tickets
- Increased electronics in cars, calling for secure data handling
Our contribution
- Tailored security according to system requirements, enabling the implementation of transparent security in everyday systems
- Leverage our worldwide leadership in security know-how for smart cards in automotive and industrial applications increasingly demanding security
- Combining both hardware security and cryptography, our products build the basis for privacy and security while maintaining personal freedom and facilitating extended communication capabilities
Infineon – Market-Oriented Business Structure
Divisions
Core Applications
Powertrain (engine and transmission control); Hybrid and electric cars; Car body and comfort electronics (steering, suspension, lights, air conditioning, sunroof, power windows, windshield wipers, central body control units, door electronics); Safety (ABS, airbags, ESP), Emergency call system (eCall)
Industrial & Multimarket
Electric drive control for industrial applications & home appliances, modules for renewable energy generation, transmission & conversion, semiconductor components for light management systems & low-energy lamps, power supplies for servers, PCs, notebooks, netbooks, game consoles, entertainment electronics; customized components for PC peripherals (e.g. mouse), game consoles & medical engineering applications; RF andprotection devices for communication (e.g. GPS, UMTS, WLAN, digital TV) and tuner systems, silicon MEMS microphones; power transistors for amplifiers in cellular base stations
Chip Card & Security
SIM card for mobile phones; payment systems; electronic passports, ID cards, healthcare cards and driver's licenses; personal identification; object identification; Pay TV;platform security for computers and networks;authentication and system integrity e.g. in game consoles, printers,
industrial controller
Automotive Overview
Core competencies/Value proposition
- Fully automotive commitment: More than 40 years of automotive system and application expertise
- Complete automotive system provider
- Hybrid and E-Mobility: industry leading expertise and product portfolio
- Worldwide development, production and support sites for automotive semiconductors
- Automotive Excellence: most comprehensive quality program of the industry
Product range
- Sensors: pressure, temperature, magnetic; wireless control ICs, radar
- Microcontrollers: 8-bit, 16-bit, 32-bit
- Power: MOSFETs, IGBTs, smart power ICs: voltage regulators, bridges, driver ICs, CAN / LIN / FlexRay™ transceiver, DC-DC converter, power system ICs, system-on chip embedded power ICs
- Hybrid & Electric Vehicle: HybridPACK™1, HybridPACK™2, gate driver ICs, MOSFETs, IGBTs
Market positions
- No. 1 in Automotive semiconductors worldwide
- No. 1 in Europe
- No. 2 in NAFTA
- No. 2 in ROW
* FlexRay is a trademark licensed by FlexRay Consortium GbR
Source: Strategy Analytics (April 2010)
We Focus on Future Business Example 1: Making Cars Cleaner
Market trends
- Dwindling energy resources
- Stricter CO2 emission legislations
- Growing environmental awareness
Infineon's opportunities
- ■ Infineon components are key for CO2 reduction: Total improvement of CO2-emission ~23 g/km
- ■ We offer Hybrid and electric drivetrain products (HybridPACK™)
- ■ No electric vehicle without semiconductors: electric drive and control, battery management, onboard battery charging and power grid communication
Note: Baseline CO2 reduction in g/km: 170 g/km on Ø EU cars
Industrial & MultimarketOverview
Product range
- Power discretes, modules and stacks
- Power management ICs
- AF/RF diodes and transistors
- Silicon MEMS microphone, TVS diodes
- LED drivers
- ASIC design solutions incl. secure ASICs for authentication and brand protection
- Microcontrollers: 8-bit, 16-bit, 32-bit
Core competencies/Value proposition
- High quality products and services
- Leading edge technology and IP portfolio
- System expertise with broad application competence
- Strong worldwide presence with local sales and application support
- Dedicated account teams & distributors
Market positions
- No.1 in Power Semiconductors for seven consecutive years
- No.2 in Power Modules with 20.5% share
- No.1 in Power Discretes with 8.2% share
Source: IMS Research, July 2010
Chip Card & Security Overview
Product range
- Contactless and contact-based security products for Communication, Payment, Government ID, Personal & Object ID, Entertainment and Platform Security
- Extensive packaging and service portfolio
- Innovative solutions from basic security RFID and memories to high-end security controllers (including the award winning SLE 78 family)
Core competencies/Value proposition
- Tailored security: right level of security at the best cost-performance ratio
- Contactless excellence: focus on interoperability and dual interface
- Embedded control: right trade-off between computing power, power consumption, level of security and cost
Market positions
- No. 1 in the Chip Card IC market for 13 years with a market share of 27%1by revenue
- Market leader in Government ID and Payment
- Roughly every second Government ID document issued in 2009 incorporated a security chip of Infineon (without China ID)
- Supplier for the two world's biggest electronic passport projects USA and China
We Focus on Future BusinessExample 3: Protecting Privacy
Market trends
- ■ Trusted Platform Modules (TPM) on 70% of enterprise notebooks and desktops; Windows 7 support
- Data protection: Encryption of files, folders, disks, messaging, digital signatures
- ■ Strong authentication: Network access protection and additional authentication factor
Infineon's opportunities
- ■No. 1 supplier for TPM solutions
- Infineon's TPM security chips are first to receive global TCG and Common Criteria Certification and UK government approval
Infineon – Partner of the Worldwide Electronics Industry
Infineon Semiconductor Technology Portfolio
Technology portfolio fits needs of logic and power applications
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Copyright © Infineon Technologies 2010. All rights reserved. Page 38 Infineon – Worldwide Production Sites Frontend and Backend Regensburg VillachSingaporeBatamDresden Kulim Wuxi CeglédWarsteinMalaccaMorgan HillFrontend Backend 11/16/2010
Sustainability For Human Beings And The Environment
IMPRES*): Synergy between responsibility for humans & environment and economic success
For Infineon, responsibility and sustainability are more than just the fulfillment of legal requirements
*)Infineon Integrated Management Program for Environment, Safety and Health
Sustainability For Human Beings And The Environment
We have one of themost advancedsustainability concepts in the world
Our Occupational Safety
... accident rate is benchmark compared to the German Institution for Statutory Accident Insurance and Prevention in the Energy, Textile and Electric Sectors – even our accident counting method is more strict.
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