Investor Presentation • Nov 14, 2017
Investor Presentation
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Please regard the slides "Disclaimer", "Notes" and "Glossary" at the end of the presentation.
| Focus | Technology leadership | System understanding | |
|---|---|---|---|
| Automotive | Power mgmt | RF and sensors |
Security |
| System leader in automotive |
#1; system and technology leader |
Broad RF and sensor technology portfolio |
#1 in security solutions |
Average-cycle financial targets
~8% p.a. revenue growth
~17% Segment Result Margin ~13%
investment-to-sales (thereof capex*: ~11%)
Organic RoCE ~ 2x WACC
* Infineon reports under IFRS and has therefore to capitalize development assets which represents currently ~2% of sales.
Tight customer relationships are based on system know-how and app understanding
Infineon's organic revenue development clearly outperformed total semi market
* Based on Infineon's portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of FY17.
** Source: WSTS (World Semiconductor Trade Statistics) in EUR, October 2017
| Outlook Q1 FY18* | Outlook FY18* (compared to FY17) |
||
|---|---|---|---|
| Revenue | Decrease of 2% +/- 2%-points |
Increase of 9% +/- 2%-points |
|
| Segment Result Margin |
At the mid-point of the revenue guidance: ~15% |
At the mid-point of the revenue guidance: ~17% |
|
| Investments in FY18 |
€1.1bn to €1.2bn | ||
| D&A in FY18 |
€880m** About |
Last major step in completing IRF integration: fab in Newport (Wales) sold to Neptune 6 Ltd.
| AURIX™ 2G key features | Platforms addressed by the design-win |
|---|---|
| performance: supported by hard › coded algorithms power consumption › › scalability: wide range of eFlash configurations functional safety: ASIL-D compliant › › security features: integrated HSM |
powertrain › ICE transmission › xEV motor control › chassis › traditional safety › braking › ABS › airbag high-growth ADAS › |
| › camera › radar sensor fusion › |
600 V CoolGaN™ selected by Eltek for Flatpack2 SHE (super high-efficient) 3 kW AC-DC power conversion module for data center and telecom applications
telecom central office
CoolGaN™ target applications to come
10 Oct 2017: ATV Division Call by Peter Schiefer, Division President Automotive www.infineon.com/atv-call
Most balanced portfolio with sensors, microcontrollers and power for system approach
Leader in electric drivetrain and CO2 reduction - making cars clean
Leader in ADAS - making autonomous driving safe and reliable
Leading product portfolio of sensors and security ICs for individual convenience and connectivity - making cars smart
Focus on sustainable high-bill-of-material areas: powertrain, safety/ADAS/autonomous cars, body
* Source: Strategy Analytics, April 2017; ** Infineon estimate.
Infineon is ideally positioned to benefit from ADAS/AD, xEV, connected cars and to gain further market share in Automotive
– 24 / 77 GHz radar – REAL3™ ToF sensor m.s. trend
2017-11-14 Copyright © Infineon Technologies AG 2017. All rights reserved. 21
– ADAS/AD – Powertrain
* Divestiture of NXP's Standard Product business ("Nexperia") closed on 16 Feb 2017; hence included in the 2016 ranking.
m.s. trend
Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2017
– xEV penetration
– EPS
m.s. trend
– Lighting
Megatrends shaping the automotive market; significantly increasing semi content per car
L2 vehicles in 2020:~8m L3 vehicles in 2025: ~3m L4/L5 vehicles in 2030: ~4m
Source: Strategy Analytics; Infineon.
Bill of material contains all type of semiconductors (e.g. radar modules include µC).
Source: The International Council for Clean Transportation, 2017
Source: Strategy Analytics, "Automotive Semiconductor Content", May 2017; Infineon * "power" includes linear and ASIC; "others" include opto, small signal discrete, memory With the transition from ICE to xEV the power semi content in powertrain increases by ~15x
Source: Strategy Analytics, "Automotive Semiconductor Content", May 2017; Infineon
Broad 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 * Source: IHS Markit, Technology Group, "Power Semiconductor Annual Market Share Report", August 2017 Key areas of innovation
Leader in next-generation power semiconductor materials SiC and GaN
Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors
IPC is perfectly positioned to outperform traditional markets and leverage emerging ones
Essential parts of any electronic system (e.g. in an SMPS); can be realized with separate components or as an integrated power stage as system-on-chip
* Infineon estimates
› Integration of additional sensing functions
› 60 GHz radar sensors e.g. for gesture sensing (example: Google Soli)
MEMS Radar Time of Flight
› Combination of microphone and radar with audio processor from XMOS enables far field voice capture by audio beamforming combined with radar target presence detection.
Growth in RF & Sensing is driven by broader product portfolio and emerging applications
* Infineon estimates
› Core technologies enable broad portfolio of products for even more applications.
Infineon is the leader in security solutions for the connected world
Complete portfolio of hardware, software, services and turnkey solutions
Leading in growth segments payment, government ID, connected car security, IoT, and Information and Communications Technology security
Infineon is ideally positioned to benefit from the growth trends in the security controller market
* Source: IHS Markit, Technology Group, "Smart Card Semiconductors Report", July 2017
** Source: IHS Markit, Technology Group, "Embedded Digital Security Report ", January 2016 (based on units, USD-ranking not provided)
› Infineon AURIX™ microcontroller with HSM for onboard communication › Security microcontrollers (e.g. eSIMs, TPMs) enable various functions like eCall, software over-the-air, vehicle-to-infrastructure, and on-board multimedia
› Security microcontroller for Infineon MIPAQ™ Pro IPM enabling authentication › Security chips are integrated in solutions for Industry 4.0 applications, e.g. robots
› OPTIGA™ TPM and OPTIGA™ Trust for devices like smart home routers and gateways (e.g. Google OnHub), smart meters, smart lighting etc.
* Target range for SG&A: "Low teens percentage of sales".
** Target range for R&D: "Low to mid teens percentage of sales".
Trade payables DPO*
* For definition please see page "Notes".
Investments between €1.1bn and €1.2bn due to strong underlying growth in demand
* For definition please see page "Notes".
Note: Additional debt with maturities between 2017 and 2023 totaling €73m of which €38m repayments related to Campeon.
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.
The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit") and represent data, research, opinions or viewpoints published by IHS Markit, and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without notice and neither IHS Markit nor, as a consequence, Infineon have a duty or responsibility to update the IHS Markit Materials or this presentation. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. IHS Markit and the IHS Markit globe design are trademarks of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.
› Sep 2016: Infineon is listed in the STOXX® Global ESG Leaders Indices, which serves as an indicator of the quality of Infineon's performance in the governance, social and environmental areas (ESG)
› Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then
› Jul 2017: Most recent review
› Dec 2016: In the Carbon Disclosure Project (CDP) climate change report, Infineon achieved a placing among the best companies in the Information Technology sector
› Mar 2017: Infineon has been reconfirmed as a constituent of the Ethibel Sustainability Index (ESI) Excellence Europe
| Date | Location | Event |
|---|---|---|
| 15 – 16 Nov 2017 |
Barcelona | Morgan Stanley TMT Conference |
| 28 – 29 Nov 2017 |
Scottsdale, AZ |
Credit Suisse TMT Conference |
| 09 – 10 Jan 2018 |
New York | Commerzbank German Investment Seminar |
| 31 Jan 2018* | Q1 FY18 Results | |
| 22 Feb 2018 |
Munich | Annual General Meeting |
| 26 – 28 Feb 2018 |
Barcelona | Mobile World Congress |
| 03 May 2018* | Q2 FY18 Results | |
| 12 June 2018 | London | Capital Markets Day "IFX Day 2018" |
| 01 Aug 2018* | Q3 FY18 Results | |
| 12 Nov 2018* | Q4 FY18 and FY 2018 Results |
* preliminary
'Purchase of property, plant and equipment'
'Total assets'
('Income from continuing operations'
/ Capital Employed
DOI (days of inventory; quarter-to-date) =
('Net Inventories' / 'Cost of goods sold') * 90
DPO (days payables outstanding; quarter-to-date) =
DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90
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.
('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
| AD | automated driving | |
|---|---|---|
| ADAS | advanced driver assistance system |
|
| AEB | automatic emergency braking |
|
| BoM | bill of material | |
| DPM | digital power management | |
| eCall | emergency call | |
| EPS | electric power steering | |
| eSIM | embedded subscriber identity module | |
| EV | electric vehicle | |
| HEV | mild and full hybrid electric vehicle | |
| HSM | hardware security module |
|
| ICE | internal combustion engine | |
| IPM | intelligent power module |
| MHA | major home appliances |
|---|---|
| micro hybrid |
vehicles using start-stop systems and limited recuperation |
| mild hybrid |
vehicles using start-stop systems, recuperation, DC DC conversion, e-motor |
| OBC | onboard charger |
| PHEV | plug-in hybrid electric vehicle |
| SiC | silicon carbide |
| SiGe | silicon germanium |
| SOTA | software over-the-air |
| TPM | trusted platform module |
| UPS | uninterruptible power supply |
| V2X | vehicle-to-everything communication |
| VSD | variable speed drive |
| xEV | all degrees of vehicle electrification (EV, HEV, PHEV) |
Corporate Vice President +49 89 234-21626
Investor Relations [email protected]
Senior Director +49 89 234-25649 Investor Relations [email protected]
Senior Manager +49 89 234-22332 Investor Relations [email protected]
Manager +49 89 234-83346 Investor Relations [email protected]
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