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Infineon Technologies AG — Investor Presentation 2016
Sep 19, 2016
222_ip_2016-09-19_dfd5f122-4f09-44fc-888d-8ed5f4fd0301.pdf
Investor Presentation
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Berenberg Bank and Goldman Sachs German Corporate Conference Munich, 19 September 2016
Dominik Asam Chief Financial Officer
Table of Contents
Infineon at a glance
2016-09-19 Copyright © Infineon Technologies AG 2016. All rights reserved. 3
Technology leadership and system understanding fosters growth and profitability
1, system and technology leader system leader in automotive Leader in security solutions Competitive advantages Revenue Growth: ~8% Segment Result Margin: ~15% Investment-to-Sales: ~13% (Capex*: ~11%; capital. R&D*: ~2%) Average-cycle financial targets * Infineon reports under IRFS broadest technology portfolio;#1 in SiGe; become #1 in base stations by 2020 Auto Power RF Security
Infineon's Revenue Development (excl. IRF) Outperformed Total Semi Market
Revenue Infineon* [lhs]
- * Based on Infineon's portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2015 fiscal year.
- ** Based on market development assumptions FY99's revenue figures for some smaller product categories have been derived from the FY00's revenue figures.
- *** Scale indexed to the Infineon FY99 revenue.
Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2015
Table of Contents
Deal rationale at a glance
GM 55%* CAGR 20%
- › Become #1 in RF power amplifier market by ~2020 with most complete technology portfolio by capitalizing on technology disruption in cellular infrastructure
- › #1 in silicon carbide for power, strengthen automotive and industrial and accelerate market introduction with cutting-edge products as cost-performance leader and create thereby a higher addressable market for Infineon
- › Deal is margin and adjusted EPS accretive from day 1 with expected 55% incremental gross margin* and 20% incremental revenue growth of the acquired businesses
- › For detailed information on the deal rational please refer to the web call and the corresponding investor presentation at http://www.infineon.com/poweringthefuture
Table of Contents
Infineon is system leader in auto semis with most balanced portfolio in the market
Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2016
Four megatrends are shaping the automotive market, significantly increasing the semi content per vehicle
ADAS/Autonomous driving
- › From ADAS to semi-automated and finally autonomous driving
- › Every world region is striving for "0-accident"
xEV/eMobility
› Mandated CO2 reductions make electrification of powertrain inevitable
› Advanced connectivity is driven by making the car part of the Internet
- › Increased connectivity and software content increase risk exposure to hackers
- › Internal/external connectivity must be secured
Connectivity Advanced security
› The car will be fully connected (V2I, V2V, in-vehicle)
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ADAS system overview and chipset coverage by Infineon
More sensors required for each automation level – sensor "cocoon" in level 4/5
Sense
| Sensor technologies |
2015 Euro |
2018 Euro |
Level 2 |
Level 3 | Level 4/5 |
|---|---|---|---|---|---|
| NCAP* | NCAP* | ||||
| Front looking camera Front looking radar Front looking lidar |
0.5 0.5 |
1 1 |
1 1 |
1 1 |
1 1 1 |
| Surround camera Corner radar Surround radar |
|
2 |
2 |
4 |
4 4 6 |
| Rear looking camera Rear looking radar |
|
|
|
1 |
1 1 |
| Driver monitoring Camera |
| | | 1 | 1 |
| V2X sensor | | | | | 1 |
| Parking aid Automated parking |
Up to 12 ultrasonic sensors per car Potential future replacement by RF CMOS radar |
Up to 12 SiGe radars per vehicle (24/77 GHz)
Radar Camera Lidar
* Euro-NCAP is focusing on collision avoidance, requirements are increasing over time
Infineon market leader in radar; 20m sensor chips sold; ~50% CAGR16-21 based on design wins*
- * Refers to 77 GHz radar sensor chip market
Infineon's automotive offering in ADAS camera systems
Sense Compute
Driver monitoring Front camera
- › Most robust detection of head position, head orientation and eye closure
- › Observe the state of the driver and passengers
-
› Optimize head-up displays and augmented reality to driver's head position
-
› AURIX™ microcontroller is today the reference for safety allowing ASIL-D systems
- › The safe & secure microcontroller is represented in most of today's camera systems
- › OEMs prefer software on AURIX™
ADAS semi growth driven by radar and camera sensor modules
Four megatrends are shaping the automotive market, significantly increasing the semi content per vehicle
ADAS/Autonomous driving
- › From ADAS to semi-automated and finally autonomous driving
- › Every world region is striving for "0-accident"
xEV/eMobility
› Mandated CO2 reductions make electrification of powertrain inevitable
› Advanced connectivity is driven by making the car part of the Internet
- › Increased connectivity and software content increase risk exposure to hackers
- › Internal/external connectivity must be secured
Connectivity Advanced security
› The car will be fully connected (V2I, V2V, in-vehicle)
2016-09-19 Copyright © Infineon Technologies AG 2016. All rights reserved. 16
Infineon is well positioned globally to benefit disproportionally from xEV boom
Silicon carbide can help accelerate the adoption of plug-in (hybrid) electric vehicles
* Source: IHS Markit, "Alternative Propulsion Forecast", Jan 2016 (includes BEV, PHEV, HEV, mild-hybrids)
xEV growth driven by power semis
*Source: IHS Markit, "Alternative Propulsion Forecast", January 2016, expected number of vehicles
Infineon is ideally positioned to benefit most from megatrends ADAS, xEV, and security
ADAS, CO2 reduction and adoption of premium features drive Infineon growth
~8% p.a. through-cycle growth
Infineon is #1 and technology leader in power semiconductors
1 in the market*
Broadest product and technology portfolio
Addressing broadest range of applications
300 mm thin-wafer manufacturing for power semiconductors
System leader with digitalization of the control loop and functional integration
Leader in next-generation power semiconductor materials GaN and SiC
* Source: IHS Markit, "Power Semiconductor Discretes & Modules Report – 2016", July 2016
Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors
Infineon further strengthened its market positions
- * The market for IGBT components (\$3,944m) includes discrete IGBTs (\$853m), Standard IGBT modules (\$1,692m), CIB/PIM (\$299m), and IPMs (\$1,101m).
- ** relative market share
- Source: IHS Markit, "Power Semiconductor Discretes & Modules Report", July 2016
Strong #1 position in power allows driving of key areas of differentiation and innovation
Unique 300 mm thin wafer power semiconductor manufacturing
Compound semiconductors GaN and SiC
Digitalization of the power control loop
Functional integration of IGBT modules
Table of Contents
Progress on 300 mm manufacturing technology on track
Advantages of 300 mm manufacturing of power semiconductors
- › When fully loaded, frontend manufacturing cost per unit will be 20 – 30% lower than on 200 mm.
-
› Capital intensity is 30% lower than on 200 mm.
-
› Less than 1%-pt margin headwind from 300 mm-related expenses (process development, product qualification and manufacturing infrastructure) already digested in today's P&L.
- › Cost break even versus 200 mm expected by end of CY17 when reaching 25 – 30% utilization.
Table of Contents
Infineon's long-term growth is based on sustainable growth drivers
~8% p.a. through-cycle growth
Financial calendar
| Date | Location | Event |
|---|---|---|
| 21 Sep 2016 | Munich | Baader Investment Conference |
| 11 Oct 2016 | ATV Conference Call by Peter Schiefer, Division President |
|
| 16 – 17 Nov 2016 |
Barcelona | Morgan Stanley TMT Conference |
| 23 Nov 2016* | Q4 FY16 and FY 2016 Results | |
| 29 – 30 Nov 2016 |
Scottsdale, AZ |
Credit Suisse TMT Conference |
| 02 Feb 2017* | Q1 FY17 Results | |
| 16 Feb 2017 | Munich | Annual General Meeting |
| 04 May 2017* | Q2 FY17 Results | |
| 01 Aug 2017* | Q3 FY17 Results | |
| 14 Nov 2017* | Q4 FY17 and FY 2017 Results |
* preliminary
Institutional Investor Relations contacts
Dr. Jürgen Rebel
Corporate Vice President +49 89 234-21626
Investor Relations [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]
Tillmann Geneuss
Manager +49 89 234-83346 Investor Relations [email protected]