Investor and Analyst Call 11 June 2013
Dr. Stefan Hofschen Division President Chip Card & Security (CCS)
Differentiation and Technology
Growth Drivers and Focus Segments
Summary
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.
Chip Card & Security (CCS) at a Glance
Chip Card & Security Revenue by Application
Infineon is Market Leader for Smart Card ICs in CY 2012 According to ABI Research
18% 19% 57% Comp. C Infineon Comp. A 13% 28% 51% Comp. C Infineon Comp. A 5% 20% 53% Comp. F Infineon Comp. B 15% 31% 32% Comp. C Comp. A Infineon Smart Card IC market share 2012 Source: ABI Research, "Smart Card & Secure ICs", 29 May 2013. Mobile Communic. Based on volume (TAM: 5.5bn pcs in CY12) Payment Based on volume (TAM: 1.4bn pcs in CY12) Government ID Based on volume (TAM: 493m pcs in CY12) 2012 Smart Card IC market market shares by revenue TAM: \$2,370m NFC Based on volume (TAM: 143m pcs in CY12) #2 #1 #2 #2 Comp. A 25.1% Comp. B 21.3% Comp. C 10.9% Infineon 25.4%
Differentiation and Technology
Growth Drivers and Focus Segments
Innovations Based On Core Competencies Create Convincing Competitive Advantage
| Core competence |
Innovation |
Competitive
advantages |
| Security |
|
Digital security
Protects against
various
attacks
Reduces total cost of ownership |
Contactless
Performance |
|
Mechanical
robustness
and
long
lifetime
Simplifies
card
design and
manufacturing |
Embedded
Control |
|
Flexibility
across
the value
chain
Highest
certified
Flash in the market
Outstanding reliability
|
Shrink and Outsourcing Improve Cost Competitiveness and Lower Capital Intensity
Differentiation and Technology
Growth Drivers and Focus Segments
Mobile Communications Growth to Continue with Emerging Applications
Comments
- CCS focuses on mid- and high-end SIM requiring Flash and cost-competitive manufacturing technologies.
- Emerging high-end applications such as NFC SIMs and machine-to-machine provide growth opportunities.
Source: IHS Inc. (IMS Research), "Smart Card and IC Database – World – 1Q13 Update" and "Near Field Communications – World – 2013", March 2013.
Payment WW Migrating to Chip-based Solutions with Strong Dual I/F Penetration
Comments
- Migration from magnetic stripe to EMV: Latin America, China, USA.
- Penetration in developing countries.
- Dual Interface market growth driven by convenience, mobile payment (infrastructure deployed) and convergence (e.g. transport).
Payment and Banking Cards – 2012 Edition", July 2012.
Governments WW Adopt New Electronic Schemes for Nat. eIDs and eHealthcare
Comments
- Further national eID and eHealthcare schemes to roll out: Brazil, India, Japan, Russia, Turkey.
- Multi-application cards and biometrics will require very-high bit rates for fast contactless transaction times.
- Digital security: Integrity Guard.
Source: IHS Inc. (IMS Research), "Electronic Government & Healthcare ID – World – 2012", December 2012.
Embedded Security Know-how Positions Infineon as Leader in New Markets
Comments
- Cloud Computing, Mobile Payment and Connectivity drive the need for embedded security in the consumer market.
- New applications for security emerging: Smart Grid, Industrial Control, IT infrastructure, Vehicle-to-Vehicle communication etc.
- Infineon has strong embedded security know-how, with >10 years experience in TPM.
Infineon Chip Card & Security is Well Positioned for Continued Growth
CCS expects average revenue growth of 6 - 9% p.a.
- * Source: IMS Research, 2012.
- ** Source: ABI Researcj, May 2013.
Differentiation and Technology
Growth drivers and focus segments
- Infineon is leading the Chip Card & Security market.
-
We have a track record of sustained profitability.
-
Competitive advantage based on technology leadership.
-
Increasing foundry share with technologies at 90nm and below will reduce capital intensity.
-
We grow in key markets in all regions.
- We are well positioned in emerging security markets.