Solid start into 2016 fiscal year Q1 FY 2016: Revenue of €1,556 million; Segment Result €220 million; Segment Result Margin 14.1 percent Outlook for Q2 FY 2016: Quarter-on-quarter revenue increase of 3 percent (plus or minus 2 percentage points), with Segment Result Margin of 13 percent at mid-point of revenue range Outlook for Financial Year 2016 confirmed Neubiberg, Germany, February 2, 2016 – Infineon Technologies AG today reported results for the first quarter of the 2016 fiscal year (period ended December 31, 2015). € in millions 3 mo nt hs end ed D ec 3 1, 15 sequential +/- in % Sep 3 0 , 15 3 mo nt hs end ed +/- in % D ec 3 1, 14 38 30 (53) --(53) 17 --12 1,128 169 15.0% 130 6 136 0.14 0.14 (52) (52) 0.29 0.29 17 17 0.12 0.12 D ilut e d e a rnings pe r s ha re ( in e uro ) 0.14 0.14 (52) (52) 0.29 0.29 17 17 0.12 0.12 A djus t e d e a rnings pe r s ha re ( in e uro ) – dilut e d 2 0.17 6 0.16 31 0.13 N e t inc o m e B asic earnings per share (in euro ) attributable to shareho lders o f Infineo n Techno lo gies A G1: B asic earnings per share (in euro ) fro m co ntinuing o peratio ns B asic earnings per share (in euro ) fro m disco ntinued o peratio ns B a s ic e a rnings pe r s ha re ( in e uro ) Diluted earnings per share (in euro ) attributable to shareho lders o f Infineo n Techno lo gies A G1: Diluted earnings per share (in euro ) fro m co ntinuing o peratio ns Diluted earnings per share (in euro ) fro m disco ntinued o peratio ns (3) (23) year-onyear 1,598 286 17.9% 322 3 325 Revenue Segment Result Segment Result M argin [in %] Inco me fro m co ntinuing o peratio ns Inco me fro m disco ntinued o peratio ns, net o f inco me taxes 1,556 220 14.1% 152 – 152 3 mo nt hs end ed 1 The calculatio n fo r earnings per share is based o n unro unded figures. 2 The reco nciliatio n o f net inco me to adjusted net inco me and adjusted earnings per share is presented o n page 9. "Our business performed better than expected in the past quarter. Infineon's broad diversification in terms of customers, markets and regions is paying off," stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "We are doing particularly well in the automotive business, where Infineon's leading expertise is prevailing. Our solutions for driver assistance systems continue to generate growth. Electromobility is gaining momentum as well." For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -2- Review of Group financials for the first quarter of the 2016 fiscal year At €1,556 million, the Infineon Group's revenue totaled €42 million or 3 percent lower in the first quarter of the current fiscal year due to seasonal factors, down from €1,598 million in the fourth quarter of the 2015 fiscal year. The Industrial Power Control (IPC), Power Management & Multimarket (PMM) and Chip Card & Security (CCS) segments all reported decreases, whereas the Automotive segment (ATV) recorded revenue essentially flat compared to the previous quarter. The revenue decrease caused the gross margin to decline from 39.0 percent to 35.9 percent quarter-on-quarter. Acquisition-related depreciation, amortization and other with the acquisition of International Rectifier related expenses totaling €27 million were recorded in the first quarter. The first-quarter Segment Result amounted to €220 million, 23 percent down on the €286 million reported for the preceding three-month period. The Segment Result Margin came in at 14.1 percent, in line with guidance, compared with the previous quarter's 17.9 percent. The decreases in Segment Result and Segment Result Margin were primarily attributable to the seasonal drop in revenue, a less favorable product mix and currency effects on the cost side. The negative non-segment result continued to improve, from negative €83 million in the fourth quarter 2015 to negative €54 million in the first quarter of the current fiscal year. Of the first-quarter figure, €29 million related to cost of goods sold, €4 million to research and development expenses and €26 million to selling, general and administrative expenses. Other operating income respectively expenses net amounted to positive €5 million. The non-segment result includes a balanced amount of €45 million of depreciation and amortization arising in conjunction with the purchase price allocation and other expenses related to the acquisition of International Rectifier. Operating income decreased from €203 million in the fourth quarter to €166 million in the first quarter of the 2016 fiscal year. Income from continuing operations fell to €152 million, partly reflecting the fact that the fourth quarter figure of €322 million had included a net income tax benefit of €131 million. Income from discontinued operations amounted to €0 million, compared to €3 million in the preceding quarter. Net income was €152 million, compared with €325 million in the fourth quarter. Earnings per share (basic and diluted) fell from €0.29 to €0.14 quarter-on-quarter. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -3- Adjusted earnings per share1 (diluted) increased from €0.16 in the fourth quarter of the 2015 fiscal year to €0.17 in the first quarter of the current year. For the purpose of calculating adjusted earnings per share (diluted), a number of items were eliminated, most notably acquisition-related depreciation/amortization and other expenses (net of tax) as well as reversals of valuation allowances on deferred tax assets. Investments – which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development costs – totaled €167 million, compared to €279 million in the fourth quarter of the previous fiscal year. At €211 million, depreciation and amortization remained unchanged compared to the fourth quarter. Free cash flow2 from continuing operations declined to break-even for the first quarter, in line with forecast. The equivalent figure for the previous three-month period was €177 million. Net cash provided by operating activities from continuing operations amounted to €175 million, compared to the previous quarter's €429 million. The gross cash position stood at €1,994 million at December 31, 2015, slightly down on the €2,013 million reported at the end of the fourth quarter. Similarly, the net cash position was also lower, falling from €220 million at September 30, 2015 to €204 million at December 31, 2015. Outlook for the second quarter of the 2016 fiscal year In the second quarter of the 2016 fiscal year, Infineon expects a quarter-on-quarter revenue increase of 3 percent (plus or minus 2 percentage points). This forecast is based on an assumed exchange rate of US$1.10 to the euro. At the mid-point of the revenue range, the Segment Result Margin is expected to come in at approximately 13 percent. Outlook for the 2016 fiscal year Based on an assumed average exchange rate of US$1.10 to the euro, Infineon expects an unchanged year-on-year revenue growth of around 13 percent (plus or minus 2 percentage points) for the 2016 fiscal year and a Segment Result Margin of 16 percent at the mid-point of the range for the forecast revenue growth. 1 Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS. The detailed calculation of adjusted earnings per share is presented on page 9. 2 For definitions and the calculation of free cash flow and of the gross and net cash position, please see page 12. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -4- The Power Management & Multimarket segment is expected to grow faster than the Group average. Revenue growth in the Industrial Power Control segment is forecast to be roughly in line with the Group average. The Automotive and Chip Card & Security segments are both expected to report growth below the Group average. The forecast includes the financial figures of International Rectifier for the full fiscal year. The results of operations for the 2015 fiscal year included figures for International Rectifier with effect from the closing of the acquisition on January 13, 2015. Investments in property, plant and equipment, intangible assets and capitalized development costs in the region of €850 million are planned for the 2016 fiscal year. The ratio for investments as a percentage of revenue (at the mid-point of the forecast range) is forecast at 13 percent. Depreciation and amortization are also expected to be in the region of €850 million. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -5- Segment earnings in the first quarter of the 2016 fiscal year € in millions in % of total revenue 3 mo nt hs end ed D ec 3 1, 15 sequential +/- in % 3 mo nt hs end ed Sep 3 0 , 15 year-onyear +/- in % 3 mo nt hs end ed D ec 3 1, 14 Inf ine o n Revenue Segment Result 100 1,556 220 14.1% (3) (23) 1,598 286 17.9% 38 30 1,128 169 15.0% 40 614 81 13.2% 0 (21) 613 102 16.6% 19 3 518 79 15.3% 16 249 23 9.2% (8) (41) 271 39 14.4% 31 (12) 190 26 13.7% 33 510 79 15.5% (5) (28) 535 110 20.6% 82 93 280 41 14.6% 11 173 35 20.2% (4) (8) 181 38 21.0% 31 75 132 20 15.2% 0 3 - 50 --- 2 1 (25) --- 4 2 0 7 2 +++ +++ (4) (4) 75 +++ 4 1 Segment Result M argin [in %] A ut o m o t iv e ( A T V ) 1 Segment Revenues Segment Result Segment Result M argin [in %] Indus t ria l P o we r C o nt ro l ( IP C ) 1 Segment Revenues Segment Result Segment Result M argin [in %] P o we r M a na ge m e nt & M ult im a rk e t ( P M M ) 1 Segment Revenues Segment Result Segment Result M argin [in %] C hip C a rd & S e c urit y ( C C S ) 1 Segment Revenues Segment Result Segment Result M argin [in %] O t he r O pe ra t ing S e gm e nt s ( O O S ) Segment Revenues Segment Result C o rpo ra t e a nd E lim ina t io ns ( C &E ) Segment Revenues Segment Result 1 The business with XM C industrial micro co ntro llers develo ped by A uto mo tive and Chip Card & Security was transferred to P o wer M anagement & M ultimarket and Industrial P o wer Co ntro l with effect fro m Octo ber 1, 2015. The previo us year’ s figures have been adjusted acco rdingly. Contrary to the expected usual seasonal dip, at €614 million, ATV segment revenue remained practically unchanged in the first quarter. Demand for vehicles in Europe and North America remained high, while markets in China saw a sharp rise. Demand for hybrid and electric vehicles in China was also buoyant in the first quarter, reflecting the fact that China is gradually becoming the world's largest market for electromobility. Segment Result decreased from €102 million in the fourth quarter of the previous fiscal year to €81 million in the first quarter of the current fiscal year. The Segment Result Margin of 13.2 percent was down compared with the previous quarter’s 16.6 percent. IPC segment revenue declined by 8 percent from €271 million to €249 million quarteron-quarter, in line with lower demand in all fields of application due to seasonal factors. Segment Result decreased from €39 million in the fourth quarter of the previous fiscal year to €23 million in the first quarter of the current fiscal year. The Segment Result Margin came in at 9.2 percent, compared to 14.4 percent one quarter earlier. Resolutions taken at the UN Climate Conference in Paris are expected to have a positive effect and should strengthen long-term growth prospects in the field of For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -6- renewable energy as well as energy efficiency for industrial machines and consumer appliances. Seasonal factors also resulted in a quarter-on-quarter reduction in PMM segment revenue from €535 million to €510 million. While revenue with mobile devices declined at a more pronounced rate than expected, revenue from power management products and in particular power amplifiers for base stations performed better than usual for this time of the year. Segment Result for the first quarter totaled €79 million, compared with €110 million in the preceding quarter, causing the Segment Result Margin to decline from 20.6 percent to 15.5 percent. CCS segment revenue decreased by only 4 percent quarter-on-quarter to €173 million, and thus at a less pronounced rate than the normal seasonal trend. Revenue one quarter earlier had amounted to €181 million. However compared to the previous year's first-quarter figure of €132 million, revenue was up by 31 percent. While payment, government ID and authentication recorded slight seasonal revenue declines, demand for SIM cards and security for mobile devices went up slightly. Segment Result decreased from €38 million in the fourth quarter to €35 million in the first quarter. The Segment Result Margin came in at 20.2 percent, compared to the previous quarter’s 21.0 percent. Analyst and press telephone conference Infineon will host a telephone conference call for analysts and investors (in English only) on February 2, 2016 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company’s results for the first quarter of the 2016 fiscal year. In addition, the Management Board will host a telephone conference with the media at 11:00 am (CET), 5:00 am (EST). It can be followed over the internet in both English and German. Both conferences will also be available live and for download on Infineon’s website at www.infineon.com/investor . The Q1 Investor Presentation is available (in English only) at: www.infineon.com/cms/en/about-infineon/investor/reporting/ For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -7- Infineon Financial Calendar (*preliminary) Feb 18, 2016 Feb 23, 2016 Mar 1 – 2, 2016 Mar 9, 2016 May 3, 2016* May 30, 2016 Jun 8 – 9, 2016 Jun 20, 2016 Aug 2, 2016* Nov 30, 2016* Annual General Meeting 2016, Munich Meetings at Mobile World Congress, Barcelona Morgan Stanley TMT Conference, San Francisco UBS European Technology Conference, London Earnings Release for the Second Quarter of the 2016 Fiscal Year Danske Bank German Corporate Day, Copenhagen Deutsche Bank German, Suisse & Austrian Conference, Berlin JPMorgan CEO Conference, London Earnings Release for the Third Quarter of the 2016 Fiscal Year Earnings Release for the Fourth Quarter and 2016 Fiscal Year About Infineon Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2015 fiscal year (ending September 30), the Company reported sales of about Euro 5.8 billion with some 35,400 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com This press release is available online at www.infineon.com/press Follow us: twitter.com/Infineon - facebook.com/Infineon - plus.google.com/+Infineon For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -8- FINANCIAL INFORMATION According to IFRS – Preliminary and Unaudited Consolidated Statement of Operations € in millions; except for the per share data 3 m o nt hs e nde d D ec 3 1, 15 Revenue Co st o f go o ds so ld G ro s s pro f it Research and develo pment expenses Selling, general and administrative expenses Other o perating inco me Other o perating expenses O pe ra t ing inc o m e Financial inco me Financial expenses Gain fro m investments acco unted fo r using the equity metho d Inc o m e f ro m c o nt inuing o pe ra t io ns be f o re inc o m e t a xe s Inco me tax Inc o m e f ro m c o nt inuing o pe ra t io ns Inco me fro m disco ntinued o peratio ns, net o f inco me taxes N e t inc o m e A ttributable to : No n-co ntro lling interests Shareho lders o f Infineo n Techno lo gies A G B asic earnings per share (in euro ) attributable to shareho lders o f Infineo n Techno lo gies A G 1: Weighted average shares o utstanding (in millio n) – basic B asic earnings per share (in euro ) fro m co ntinuing o peratio ns B asic earnings per share (in euro ) fro m disco ntinued o peratio ns B a s ic e a rnings pe r s ha re ( in e uro ) Diluted earnings per share (in euro ) attributable to shareho lders o f Infineo n Techno lo gies A G 1: Weighted average shares o utstanding (in millio n) – diluted Diluted earnings per share (in euro ) fro m co ntinuing o peratio ns Diluted earnings per share (in euro ) fro m disco ntinued o peratio ns D ilut e d e a rnings pe r s ha re ( in e uro ) 1 Sep 3 0 , 15 D ec 3 1, 14 1,556 (998) 558 (198) (200) 4 2 166 1 (13) 154 (2) 152 152 1,598 (974) 624 (197) (215) 14 (23) 203 2 (15) 1 191 131 322 3 325 1,128 (701) 427 (139) (136) 6 (5) 153 6 (5) 154 (24) 130 6 136 (1) 153 325 136 1,124 0.14 0.14 1,123 0.29 0.29 1,122 0.12 0.12 1,129 0.14 0.14 1,126 0.29 0.29 1,123 0.12 0.12 The calculatio n fo r earnings per share is based o n unro unded figures. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] -9- Segment Revenue and Segment Results Infineon defines Segment Result as operating income (loss) excluding the following: the net amount of asset impairments and reversals thereof; impact on earnings of restructuring and closures; share-based compensation expense; acquisition-related depreciation/amortization and other expenses; gains (losses) on sales of assets, businesses, or interests in subsidiaries as well as other income (expense), including litigation costs. Reconciliation of Total Segment Result to Operating Income 3 m o nt hs e nde d € in millions D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 220 286 169 (4) (17) (2) 9 (2) (56) (1) (2) (62) (2) (8) (1) (2) - 166 1 203 (4) 153 S e gm e nt R e s ult P lus/minus: Impairment o n assets including asstes classified as held fo r sale, net o f reversals Impact o n earnings o f restructuring and clo sures, net Share-based co mpensatio n expense A cquisitio n-related depreciatio n/amo rtizatio n and o ther expenses Gains (lo sses) o n sales o f assets, businesses, o r interests in subsidiaries, net Other inco me and expense, net O pe ra t ing inc o m e Reconciliation to adjusted earnings and adjusted earnings per share – diluted Earnings per share in accordance with IFRS are influenced by amounts relating to purchase price allocations for acquisitions (in particular International Rectifier) as well as by other exceptional items. To enable better comparability of operating performance over time, Infineon computes adjusted earnings per share (diluted) as follows: 3 m o nt hs e nde d € in millions (unless otherwise stated) E a rnings f ro m c o nt inuing o pe ra t io ns a t t ribut a ble t o s ha re ho lde rs o f Inf ine o n T e c hno lo gie s A G – dilut e d D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 153 322 130 4 17 2 (9) 2 56 1 2 62 2 8 P lus/minus: Impairments o n assets including assets classified as held fo r sale, net o f reversals Impact o n earnings o f restructuring and clo sures, net Share-based co mpensatio n expense A cquisitio n-related depreciatio n/amo rtizatio n and o ther expenses Lo sses (gains) o n sales o f assets, businesses, o r interests in subsidiaries, net Other inco me and expense, net Tax effects o n adjustments Revaluatio n o f deferred tax assets resulting fro m the earnings fo recast A djus t e d e a rnings f ro m c o nt inuing o pe ra t io ns a t t ribut a ble t o s ha re ho lde rs o f Inf ine o n T e c hno lo gie s A G – dilut e d Weighted-average number o f shares o utstanding – diluted A djusted earnings per share (in euro ) – diluted 1 1 1 2 - (6) (1) (11) 4 (2) (7) (209) - 194 185 144 1,129 0.17 1,126 0.16 1,123 0.13 The calculation of the adjusted earnings per share is based on unrounded figures. Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] - 10 - Revenue and Segment Result for the three months ended December 31, 2015 and 2014 and September 30, 2015 The business with XMC industrial microcontrollers developed by Automotive and Chip Card & Security was transferred to Power Management & Multimarket and Industrial Power Control with effect from October 1, 2015. The previous year’s figures have been adjusted accordingly. Revenue € in millions 3 m o nt hs e nde d A uto mo tive Industrial P o wer Co ntro l P o wer M anagement & M ultimarket Chip Card & Security Other Operating Segments Co rpo rate and Eliminatio ns T o tal Segment Result € in millions 3 m o nt hs e nde d D e c 3 1, 15 D e c 3 1, 14 +/ - in % D e c 3 1, 15 S e p 3 0 , 15 +/ - in % 614 249 510 173 3 7 1,556 518 190 280 132 4 4 1,128 19 31 82 31 (25) 75 38 614 249 510 173 3 7 1,556 613 271 535 181 2 (4) 1,598 (8) (5) (4) 50 +++ (3) 3 m o nt hs e nde d A uto mo tive Industrial P o wer Co ntro l P o wer M anagement & M ultimarket Chip Card & Security Other Operating Segments Co rpo rate and Eliminatio ns T o tal 3 m o nt hs e nde d D e c 3 1, 15 D e c 3 1, 14 +/ - in % D e c 3 1, 15 S e p 3 0 , 15 +/ - in % 81 23 79 35 2 220 79 26 41 20 2 1 169 3 (12) 93 75 --+++ 30 81 23 79 35 2 220 102 39 110 38 1 (4) 286 (21) (41) (28) (8) --+++ (23) Employees Infineo n Thereo f: Research and develo pment D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 35,565 5,867 35,424 5,778 30,493 4,978 For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] - 11 - Consolidated Statement of Financial Position € in millions D e c 3 1, 15 S e p 3 0 , 15 651 1,343 669 1,190 2 277 3 4,135 2,063 1,750 33 3 610 157 4,616 8,751 673 1,340 742 1,129 2 229 4,115 2,093 1,738 33 3 604 155 4,626 8,741 11 759 220 124 274 1,388 1,779 432 133 73 86 2,503 3,891 33 802 402 123 225 1,585 1,760 426 147 72 86 2,491 4,076 2,262 5,225 (2,743) 153 (37) 4,860 4,860 8,751 2,259 5,213 (2,897) 126 (37) 4,664 1 4,665 8,741 A SSET S: Cash and cash equivalents Financial investments Trade receivables Invento ries Inco me tax receivable Other current assets A ssets classified as held fo r sale T o t a l c urre nt a s s e t s P ro perty, plant and equipment Go o dwill and o ther intangible assets Investments acco unted fo r using the equity metho d No n-current inco me tax receivable Deferred tax assets Other no n-current assets T o t a l no n- c urre nt a s s e t s T o tal assets LIA B ILIT IE S A N D E Q UIT Y : Sho rt-term debt and current maturities o f lo ng-term debt Trade payables Sho rt-term pro visio ns Inco me tax payable Other current liabilities T o t a l c urre nt lia bilit ie s Lo ng-term debt P ensio n plans and similar co mmitments Deferred tax liabilities Lo ng-term pro visio ns Other no n-current liabilities T o t a l no n- c urre nt lia bilit ie s T o t a l lia bilit ie s Shareho lders' equity: Ordinary share capital A dditio nal paid-in capital A ccumulated deficit Other reserves Own shares E quit y a t t ribut a ble t o s ha re ho lde rs o f Inf ine o n T e c hno lo gie s A G No n-co ntro lling interests T o t a l e quit y T o t a l lia bilit ie s a nd e quit y For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] - 12 - Regional Revenue Development in % 3 m o nt hs e nde d D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 32% 33% 37% 15% 16% 18% 49% 47% 46% R e v e nue : Euro pe, M iddle East, A frica Therein: Germany A sia-P acific (w/o Japan) Therein: China Japan A mericas Therein: USA T o tal 25% 24% 23% 7% 12% 8% 12% 6% 11% 10% 10% 8% 100% 100% 100% Consolidated Statement of Cash Flows Gross and Net Cash Position The following table reconciles the gross cash position and net cash position (i.e. after deduction of debt). Since some liquid funds are held in the form of financial investments, which for IFRS purposes are not considered to be “cash and cash equivalents”, Infineon reports on its gross and net cash positions in order to provide investors with a better understanding of Infineon’s overall liquidity. The gross and net cash positions are determined as follows from the Consolidated Statement of Financial Position: € in millions Cash and cash equivalents Financial investments G ro s s c a s h po s it io n Less: Sho rt-term debt and current maturities o f lo ng-term debt Lo ng-term debt N e t c a s h po s it io n D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 651 1,343 1,994 673 1,340 2,013 1,393 714 2,107 11 1,779 204 33 1,760 220 35 155 1,917 Free Cash Flow Infineon reports the free cash flow figure defined as net cash provided by and/or used in operating activities and net cash provided by and/or used in investing activities, both from continuing operations, after adjusting for cash flows related to the purchase and sale of financial investments. Free cash flow serves as an additional performance indicator, since Infineon holds part of its liquidity in the form of financial investments. This does not mean that the free cash flow calculated in this way is available to cover other disbursements, since dividend, debt-servicing obligations and other fixed disbursements are not deducted. Free cash flow should not be seen as a replacement or superior performance indicator, but rather as an additional useful piece of information over and above the disclosure of the cash flow reported in the Consolidated Statement of Cash Flows, and as a supplementary disclosure to other liquidity performance indicators and other performance indicators derived from the IFRS figures. Free cash flow includes only amounts from continuing operations, and is derived as follows from the Consolidated Statement of Cash Flows: € in million 3 m o nt hs e nde d Net cash pro vided by (used in) o perating activities fro m co ntinuing o peratio ns Net cash pro vided by (used in) investing activities fro m co ntinuing o peratio ns P urchases o f (pro ceeds fro m sales o f) financial investments, net F re e C a s h F lo w D e c 3 1, 15 S e p 3 0 , 15 D e c 3 1, 14 175 (178) 3 0 429 (450) 198 177 (39) 513 (645) (171) For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] - 13 - Consolidated Statement of Cash Flows € in millions 3 mo nt hs end ed D ec 3 1, 15 N e t inc o m e M inus: inco me fro m disco ntinued o peratio ns, net o f inco me taxes Sep 3 0 , 15 D ec 3 1, 14 152 - 325 (3) 136 (6) 211 2 11 1 4 1 77 (56) (45) (182) 26 1 (5) (23) 175 (15) 160 (894) 891 (8) (29) (138) (178) (178) (8) 3 (16) 12 (9) (9) (27) 5 673 651 211 (131) 13 (7) 17 1 (11) (88) 55 35 36 2 (6) (20) 429 (2) 427 (298) 100 (3) (23) (256) 30 (450) (450) 1 3 (7) 1 (2) (2) (25) (2) 700 673 141 24 3 2 (3) 92 (46) (74) (191) (95) 3 (1) (24) (39) (140) (179) (135) 780 (7) (60) (81) 16 513 513 (1) 9 (5) (1) 2 2 336 (1) 1,058 1,393 A djustments to reco ncile net inco me to net cash pro vided by o perating activities: Depreciatio n and amo rtizatio n Inco me tax Net interest result Lo sses (gains) o n dispo sals o f pro perty, plant and equipment Impairment charges Other no n-cash result Change in trade receivables Change in invento ries Change in trade payables Change in pro visio ns Change in o ther assets and liabilities Interest received Interest paid Inco me tax paid N e t c a s h pro v ide d by ( us e d in) o pe ra t ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns N e t c a s h us e d in in o pe ra t ing a c t iv it ie s f ro m dis c o nt inue d o pe ra t io ns N e t c a s h pro v ide d by ( us e d in) o pe ra t ing a c t iv it ie s P urchases o f financial investments P ro ceeds fro m sales o f financial investments P urchases o f o ther equity investments A cquisitio ns o f businesses, net o f cash acquired P urchases o f intangible assets and o ther assets P urchases o f pro perty, plant and equipment P ro ceeds fro m sales o f pro perty, plant and equipment and o ther assets N e t c a s h pro v ide d by ( us e d in) inv e s t ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns N e t c a s h us e d in inv e s t ing a c t iv it ie s f ro m dis c o nt inue d o pe ra t io ns N e t c a s h pro v ide d by ( us e d in) inv e s t ing a c t iv it ie s Net change in sho rt-term debt P ro ceeds fro m issuance o f lo ng-term debt Repayments o f lo ng-term debt Change in cash depo sited as co llateral P ro ceeds fro m issuance o f o rdinary shares N e t c a s h pro v ide d by ( us e d in) f ina nc ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns N e t c a s h us e d in f ina nc ing a c t iv it ie s f ro m dis c o nt inue d o pe ra t io ns N e t c a s h pro v ide d by ( us e d in) f ina nc ing a c t iv it ie s Net chang in cash and cash equivalents Effect o f fo reign exchange rate changes o n cash and cash equivalents Cash and cash equivalents at beginning o f perio d C a s h a nd c a s h e quiv a le nt s a t e nd o f pe rio d For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected] - 14 - DISCLAIMER This press release 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 forwardlooking statements. Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. For the Business and Trade Press: INFXX201602-024e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 24123 +49 89 234 26655 Email: [email protected] [email protected]