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Infineon Technologies AG — Investor Presentation 2012
Nov 15, 2012
222_ip_2012-11-15_cc6575dd-af4b-4ad1-b90a-7cb83becccfd.pdf
Investor Presentation
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Morgan Stanley TMT Conference Barcelona, 15 November 2012
Dominik Asam Chief Financial Officer
Infineon at a Glance
Growth Outlook
Results and Outlook
Disclaimer:
This presentation 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.
Revenue Split by Division
14 Nov 2012 Page 3 Copyright © Infineon Technologies AG 2012. All rights reserved.
Decreasing Segment Result Margin due to High Investments
| [EUR m] | Q3 FY12 | Q4 FY12 | FY 2012 | |||
|---|---|---|---|---|---|---|
| Revenue | 990 | 982 | 3,904 | |||
| Segment Result | 126 | 116 | 527 | |||
| SR Margin | 12.7% | 11.8% | 13.5% | |||
| 990 | 982 | [EUR m] | Net Income* | 82 | 138 | 427 |
| Investment | 158 | 246 | 890 | |||
| 126 | 116 | FCF from cont. operations |
-22 | 47 | -219 | |
| Q3 FY12 | Q4 FY12 | Gross Cash | 2,150 | 2,235 | 2,235 | |
| Revenue Segment Result |
Net Cash | 1,907 | 1,940 | 1,940 |
* Net Income includes "income from discontinued operations, net of income taxes" in Q3 FY12 EUR -8m, in Q4 FY12 EUR 9m and in FY 2012 EUR-5m. Net Income in Q4 FY12 includes income tax benefits of EUR 52m.
Tight Customer Relationships are Based on System Know-how and App Understanding
Infineon Holds Top Positions in All Target Markets
Calendar year 2011. Source: Strategy Analytics, April 2012.
Source: IMS Research (an IHS company), July 2012.
Calendar year 2011.
14 Nov 2012 Page 6 Copyright © Infineon Technologies AG 2012. All rights reserved.
Calendar year 2011.
August 2012.
Source: IMS Research (an IHS company),
Infineon at a Glance
Growth Outlook
Results and Outlook
New Era: Multiple Factors Driving Demand for Power Semiconductors
'90 – '10
'10 – '30 Changes
- Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content.
- Shift towards renewable energies requires orders of magnitude more high-power semis per MW of power generated.
Stronger demand for goods containing power semis due to faster increase in standard of living in BRIC countries.
Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy
Source: IHS, October 2012.
14 Nov 2012 Page 9 Copyright © Infineon Technologies AG 2012. All rights reserved.
Rising Semiconductor Value Per Car Drives Market
Source: Strategy Analytics, October 2012; including semiconductor sensors.
Every Electricity Conversion Step Requires Infineon Components
14 Nov 2012 Page 11 Copyright © Infineon Technologies AG 2012. All rights reserved.
Infineon at a Glance
Growth Outlook
Results and Outlook
After Record Revenues in 2011 Sales during 2012 Stay Almost Flat
ATV Remains on High Level Steady Recovery in PMM
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Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011
Source: Strategy Analytics, April 2012 * According to Strategy Analytics this ranking also includes Russia, South America, Australia and further countries.
Increasing Adoption of Infineon"s 77 GHz SiGe Technology for Radar Applications
RASIC serves rapid growth in advanced driver assistance systems
- Infineon's Radar System IC (RASIC™) series consists of a group of highly-integrated functions for 77 GHz automotive radar sensors.
- With more than 1m devices shipped since 2009, Infineon is a market leader today and strengthens its future position with the recent release of a "77 GHz radar-in-package".
- Multiple design-wins have been recorded at major automotive suppliers in the USA, Europe and Asia.
First 77 GHz radar solution in eWLB SMD package.
Bringing 77 GHz performance to the short- and mid-range market.
Infineon"s Digital Power Management ICs Now Ramping for AC/DC Applications
Enabling high-efficiency AC/DC conversion while reducing system costs
14 Nov 2012 Page 17 Copyright © Infineon Technologies AG 2012. All rights reserved.
Integrity Guard has been nominated for the "German Future Prize 2012"
Integrity Guard – Security for the connected world
- Infineon"s innovative Integrity Guard digital security technology has been nominated for the "German Future Prize 2012 - The Federal President`s Award for Innovation and Technology".
- This award recognizes outstanding technical and scientific innovations from Germany. Nomination alone is regarded as the highest commendation for technology and innovation in Germany.
- Integrity Guard is based on digital security and displays two revolutionary innovations:
- The completely encrypted storage and processing of on-chip data combined with
- two CPUs constantly checking each other; and a full digital error-detection system.
Guidance for Q1 FY13 and FY 2013
Investments in FY 2013 About EUR 400m.
D&A in FY 2013 About EUR 470m.
* This outlook is based on an assumed Euro/US Dollar exchange rate of 1.25.
OpEx Development
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Working Capital
Trade and other receivables Trade and other payables
* For definition please see page 28 in appendix.
Inventories DOI*
Investments in FY 2013 to Be Reduced Significantly
* For definition please see page 28 in appendix.
14 Nov 2012 Page 23 Copyright © Infineon Technologies AG 2012. All rights reserved.
* Consists of convertible bond (nominal value EUR 113m; book value EUR 100m).
- Gross cash increased due to Free Cash Flow and an increase of debt of EUR 52m. Net cash impact correspondingly lower.
- Bought back EUR 5m nominal of convertible bond for EUR 12m.
- No buyback of shares during the quarter. But put options for 5m shares lapsed with EUR 2.2m premium received.
Average Price Per Underlying Share Below Volume Weighted Average Share Price
Total Gross Capital Returns
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Value Creation of Infineon by Sustainably High RoCE Above WACC
* For definition please see page 28 in appendix.
Notes
Investments =
'Purchase of property, plant and equipment"
- 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses
Capital Employed =
'Total assets"
- 'Cash and cash equivalents"
- 'Financial investments"
- 'Assets classified as held for sale"
- ['Total Current liabilities"
- 'Short-term debt and current maturities of long-term debt"
- 'Liabilities classified as held for sale"]
RoCE =
NOPAT / Capital Employed =
- ('Income from continuing operations"
- 'financial income"
- 'financial expense")
- / Capital Employed
Working Capital =
('Total current assets"
- 'Cash and cash equivalents"
- "Financial investment"
- 'Assets classified as held for sale')
- ('Total current liabilities"
- 'Short term debt and current maturities of long-term debt"
- 'Liabilities classified as held for sale')
DOI (inventory days; quarter-to-date) =
('Net Inventories' / 'Cost of goods sold') * 90
DSO (days sales outstanding; quarter-to-date) = ('Trade accounts receivables (net)' / 'revenue') * 90
DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
Worldwide Frontend Production Sites
Copyright © Infineon Technologies 2011. All rights reserved. Page 29
Worldwide Backend Production Sites
Investments Driven by Capacity Additions and Maintenance
Breakdown of total investments in FY12 of EUR 890m
Copyright © Infineon Technologies 2011. All rights reserved. Page 31
Infineon Has a Long Track Record in Responsibility and Sustainability
UN Global Compact Initiative
As one of the first semiconductor companies worldwide, Infineon joined the Global Compact Initiative of the United Nations in 2004.
Dow Jones Sustainability Index
Infineon is currently Europe"s one and only semiconductor company member in the Dow Jones Sustainability Indexes.
Certifications
Based on our efforts for resources management, safety and health standards, Infineon received the EN ISO 14001 and OHSAS 18001 multi-site certification.
| Date | Location | Event | ||
|---|---|---|---|---|
| 15-16 Nov 2012 | Barcelona | Morgan Stanley TMT Conference | ||
| 20 – 21 Nov 2012 |
London | Company Roadshow including presentation by Dr. Helmut Gassel Division President, Industrial Power Control (IPC) |
||
| 27-28 Nov 2012 | Scottsdale, AZ | Credit Suisse Technology Conference | ||
| 06 Dec 2012 |
London | Natixis Payment Revolution Conference | ||
| 31 Jan 2013* | Q1 FY13 Results | |||
| 28 Feb 2013 | Munich | Annual General Meeting | ||
| 02 May 2013* | Q2 FY13 Results | |||
| 30 Jul 2013* | Q3 FY13 Results | |||
| 12 Nov 2013* | Q4 FY13 and FY 2013 Results |
* provisional
Institutional Investor Relations Contact
| Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations |
+49 89 234-26153 [email protected] |
|
|---|---|---|
| Joachim Binder Senior Director Investor Relations |
+49 89 234-25649 [email protected] |
|
| Holger Schmidt Manager Investor Relations |
+49 89 234-22332 [email protected] |
|
| 31 July 2012 | Bernard Wang Manager Investor Relations Copyright © Infineon Technologies 2012. All rights reserved. |
+49 89 234-22669 [email protected] Page 34 |
14 Nov 2012 Page 34 Copyright © Infineon Technologies AG 2012. All rights reserved.