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Infineon Technologies AG — Investor Presentation 2014
Jan 30, 2014
222_ip_2014-01-30_98352c50-bc7d-45fd-b619-4be925d52b2f.pdf
Investor Presentation
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First Quarter FY 2014 Quarterly Update
Infineon Technologies AG Investor Relations
Table of Contents
Infineon at a Glance
Growth Drivers
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
2014-01-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 3
Tight Customer Relationships are Based on System Know-how and App Understanding
Infineon Holds Top Positions in All Major Product Categories
Automotive semiconductors incl. semiconductor sensors.
Source: Strategy Analytics, April 2013.
Discrete power semiconductors and power modules.
Source: IHS, December 2013.
Microcontroller-based smart card ICs. Source: IHS, September 2013.
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
Growth in Car Production and Content-per-Car Continues Unabated
EV/HEV Powertrain Contains \$300 More Semi Content-per-Car vs Conventional Car
Source: Strategy Analytics, "Hybrid & Electric Vehicle Systems Demand Forecast 2007 to 2020", November 2013.
Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2011 – 2020", January 2014.
IGBTs: Double-Digit Growth For Modules; Discretes to Resume Growth After 2013 Dip
Source: IHS, "The World Market for Power Semiconductor Discretes and Modules", December 2013.
Higher Functionality in Mobile Devices Requires Additional Infineon Components
* Does not include headsets, which typically require an additional microphone.
Expected Growth Broadly In Line With Historical Averages
Infineon: 8% p.a.
Sources: IHS, Strategy Analytics, ABI Research, Infineon.
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
Profitability Better Than Expected in Q1 FY14
ATV, IPC and PMM Recorded High Year-on-Year Growth
Guidance for Q2 FY14 and FY 2014
| Outlook Q2 FY14 (compared to Q1 FY14) |
Outlook FY 2014 (compared to FY 2013) |
||||
|---|---|---|---|---|---|
| Revenue | Mid single-digit percentage increase. |
Increase between 7% and 11%. |
|||
| Segment Result Margin |
Between 10% and 13%. |
Between 11% and 14%. |
|||
| Investments in FY 2014 |
About €650m. |
||||
| D&A in FY 2014 |
€500m or slightly above. |
Significant Year-on-Year Improvement in Financial Performance
| [EUR m] | Q1 FY13 | Q4 FY13 | Q1 FY14 | |
|---|---|---|---|---|
| Revenue | 851 | 1,053 | 984 | |
| Segment Result | 44 | 148 | 116 | |
| SR Margin 5.2% |
14.1% | 11.8% | ||
| [EUR m] 1053 |
Net Income* | 19 | 142 | 87 |
| 984 | Investment | 88 | 155 | 129 |
| 148 116 |
FCF from cont. operations |
-128 | 156 | 30 |
| Q4 FY13 Q1 FY14 |
Gross Cash | 2,081 | 2,286 | 2,279 |
| Revenue Segment Result |
Net Cash | 1,768 | 1,983 | 2,048 |
* Net Income includes "income/loss from discontinued operations, net of income taxes" in Q1 FY13 EUR -7m, in Q4 FY13 EUR 3m and in Q1 FY14 EUR 2m.
Opex-to-Sales-Ratio Well Within Target Range
1) Target range for SG&A: "Low teens percentage of sales".
2) Target range for R&D: "Low to mid teens percentage of sales".
Inventories Up due to High Productivity, DSO and DPO in Line With Our Targets
Trade receivables Trade payables
* For definition please see page 24.
Future Investments Expected to Be About 15% of Sales
Gross Cash Stable; Net Cash Increased Due to Conversion of Convertible
* Consists of convertible bond (nominal value EUR 39m; book value EUR 38m).
Increase in gross cash offset by repurchase of convertible bonds for EUR 35m. Net cash increased due to conversion of convertible bonds with nominal value of EUR 64m.
Convertible bond: early redemption on 7 February 2014.
Total Gross Capital Returns of EUR 722m Between FY 2011 and Q1 FY14
Target: 'RoCE above WACC' over the cycle
* For definition please see page 24.
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 receivables' / 'revenue') * 90
DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
Please note:
All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table.
Infineon is a Long-standing Member of Europe's Leading Sustainability Indices
Infineon's most recent achievements
New!
- January 2014: Infineon is listed in the Sustainability Yearbook for the fourth consecutive year and according to RobecoSAM, listed among the top 15% most sustainable companies worldwide.
- September 2013: Infineon was listed in the Dow Jones Sustainability Index for the fourth consecutive year.
October 2013: oekom research has classified Infineon as "Prime", which serves as an indicator of the quality of Infineon's performance in the
social and environmental areas.
- Infineon was added to the FTSE4Good Index Series in 2001.
- March 2013: Infineon was confirmed as member of this index for the 12th consecutive year.
Financial Calendar
| Date | Location | Event |
|---|---|---|
| 13 Feb 2014 | Munich | Annual General Meeting |
| 29 Apr 2014* | Q2 FY14 Results | |
| 11 Jun 2014 |
Berlin | Dt. Bank German, Swiss & Austrian Conference |
| 17 Jun 2014 | London | JPMorgan Technology CEO Conference |
| 30 Jul 2014* | Q3 FY13 Results | |
| 09 Sep 2014 | Frankfurt | Commerzbank Sector Week |
| 18 Nov 2014* | Q4 FY14 and FY 2014 Results | |
| 19 – 20 Nov 2014 |
Barcelona | Morgan Stanley TMT Conference |
| 02 – 03 Dec 2014 |
Scottsdale, AZ | Credit Suisse TMT Conference |
* provisional
Institutional Investor Relations Contact
Ulrich Pelzer
Corporate Vice President +49 89 234-26153 Investor Relations
Finance, Treasury & [email protected]
Joachim Binder
Senior Director +49 89 234-25649 Investor Relations [email protected]
Holger Schmidt
Manager +49 89 234-22332 Investor Relations [email protected]
Bernard Wang
Copyright © Infineon Technologies 2012. All rights reserved. Page 27 Senior Manager +49 89 234-22669 Investor Relations [email protected]