Pr e s s Re l e a s e Revenue and earnings slightly better than expected Q2 FY 2016: Revenue of €1,611 million; Segment Result €228 million; Segment Result Margin 14.2 percent Outlook for Q3 FY 2016: Quarter-on-quarter revenue increase of 2 percent (plus or minus 2 percentage points), Segment Result Margin 16 percent at midpoint of the revenue guidance Outlook for FY 2016: In spite of a now assumed exchange rate of US$ 1.15 to the euro, year-on-year revenue growth of around 12 percent (plus or minus 2 percentage points) and Segment Result Margin between 15 and 16 percent at mid-point of the revenue guidance Neubiberg, Germany, May 3, 2016 – Infineon Technologies AG today reported results for the second quarter of its 2016 fiscal year (period ended March 31, 2016). € in millions 3 mo nt hs end ed M ar 3 1, 16 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 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 1,611 228 14.2% 177 3 180 sequential +/- in % 3 mo nt hs end ed D ec 3 1, 15 4 4 16 +++ 18 year-onyear +/- in % 9 15 3 mo nt hs end ed M ar 3 1, 15 1,556 220 14.1% 152 – 152 +++ +++ +++ 1,483 198 13.4% 65 – 65 0.16 – 0.16 14 – 14 0.14 – 0.14 +++ – +++ 0.06 – 0.06 D ilut e d e a rnings pe r s ha re ( in e uro ) 0.16 – 0.16 14 – 14 0.14 – 0.14 +++ – +++ 0.06 – 0.06 A djus t e d e a rnings pe r s ha re ( in e uro ) - dilut e d 2 0.18 6 0.17 38 0.13 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 1 The calculatio n fo r earnings per share and fo r adjusted 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. “We have come through a difficult quarter quite well. Revenue and earnings were both slightly better than expected,” stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. “Infineon is performing very well in next-generation technology areas with high For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -2- growth rates: electromobility, advanced driver assistance systems and renewable energy. In spite of a weaker US dollar and a rather flat semiconductor market we are going to show double-digit growth in revenues in the current fiscal year.” Review of Group financials for the second quarter of the 2016 fiscal year Revenue of the Infineon Group increased from €1,556 million to €1,611 million quarteron-quarter. The 4 percent increase was driven in particular by good revenue figures posted by the Automotive (ATV) segment. The Industrial Power Control (IPC) and Chip Card & Security (CCS) segments also recorded revenue growth, whereas Power Management & Multimarket (PMM) segment revenue was slightly down on the preceding quarter. The gross margin for the three-month period came in at 35.1 percent, compared with 35.9 percent in the previous quarter. The second-quarter figures include acquisitionrelated depreciation and amortization and other expenses attributable to the acquisition of International Rectifier amounting to €22 million. Segment Result increased slightly by 4 percent from €220 million to €228 million quarter-on-quarter, while the Segment Result Margin was 14.2 percent after 14.1 percent in the previous quarter. The negative non-segment result for the second quarter amounted to €54 million, unchanged from the preceding quarter. Of this result, €24 million related to the cost of goods sold, €3 million to research and development expenses and €24 million to selling, general and administrative expenses. Other operating income and other operating expenses amounted to a net expense of €3 million. The non-segment result includes €49 million of depreciation and amortization arising in conjunction with the purchase price allocation and other expenses for post-merger integration measures in conjunction with the acquisition of International Rectifier. Operating income improved from €166 million in the first quarter to €174 million in the second quarter of the current fiscal year. Income from continuing operations increased to €177 million, compared with €152 million in the first quarter. Income from discontinued operations amounted to €3 million, compared with a break-even amount of €0 million in the preceding quarter. Net income rose from €152 million in the first quarter to €180 million in the second quarter, largely as a result of the positive impact of tax income amounting to €21 million, resulting primarily from the reduction of deferred tax For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -3- liabilities relating to the acquisition of International Rectifier and from the reversal of allowances on deferred tax assets relating to German and foreign entities. Earnings per share (basic and diluted) increased from €0.14 to €0.16 quarter-on-quarter. Adjusted earnings per share1 (diluted) improved from €0.17 in the first quarter of the current fiscal year to €0.18 in the second. 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 assets – totaled €163 million, compared to €167 million in the first quarter of the current fiscal year. Depreciation and amortization were practically unchanged in the second quarter at €213 million, compared to the €211 million reported for the first quarter. Free cash flow2 from continuing operations increased to €45 million in the second quarter of the 2016 fiscal year, compared to the break-even figure reported for the previous three-month period. Net cash provided by operating activities from continuing operations increased quarter-on-quarter from €175 million to €195 million. As a result of the dividend payment amounting to €225 million in February, the gross cash position decreased to €1,803 million at March 31, 2016, compared with €1,994 million at the end of the first quarter. The net cash position declined accordingly over the three-month period from €204 million to €27 million. Outlook for the third quarter of the 2016 fiscal year In the third quarter of the 2016 fiscal year, Infineon expects a quarter-on-quarter revenue increase of 2 percent (plus or minus 2 percentage points). This forecast is now based on an assumed exchange rate of US$1.15 to the euro for the second half of the 2016 fiscal year. At the mid-point of the forecast revenue range, the Segment Result Margin is expected to come in at about 16 percent. 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 13. For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -4- Outlook for the 2016 fiscal year Based again on an assumed exchange rate of US$1.15 to the euro, Infineon expects year-on-year revenue growth of around 12 percent (plus or minus 2 percentage points) and a Segment Result Margin of between 15 and 16 percent at the mid-point of the forecast revenue range. The Power Management & Multimarket segment is expected to grow faster than the Group average. Revenue growth in the Industrial Power Control segment, and now also in the Automotive segment, is forecast to be roughly in line with the Group average. The Chip Card & Security segment is expected to report growth at a somewhat lower rate than the Group average. 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. Consequently, the ratio for investments as a percentage of revenue (at the mid-point of the forecast range) comes in at 13 percent. Depreciation and amortization are expected to be in the region of €850 million. For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -5- Segment earnings in the second quarter of the 2016 fiscal year € in millions in %of total revenue 3 mo nt hs end ed M ar 3 1, 16 sequential +/- in % 3 mo nt hs end ed D ec 3 1, 15 year-onyear +/- in % 3 mo nt hs end ed M ar 3 1, 15 Inf ine o n Revenue Segment Result 100 1,611 228 14.2% 4 4 1,556 220 14.1% 9 15 1,483 198 13.4% 42 670 94 14.0% 9 16 614 81 13.2% 12 31 598 72 12.0% 16 265 26 9.8% 6 13 249 23 9.2% 10 44 241 18 7.5% 31 496 74 14.9% (3) (6) 510 79 15.5% 7 (1) 464 75 16.2% 11 180 36 20.0% 4 3 173 35 20.2% (1) 9 182 33 18.1% 0 2 - (33) - 3 - (50) --- 4 2 0 (2) (2) ----- 7 2 67 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 - (6) (2) 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. ATV segment revenue increased by 9 percent to €670 million in the second quarter of the 2016 fiscal year, driven by strong demand. The equivalent figure for the preceding quarter was €614 million. Vehicle sales in Europe, North America and China – key markets for Infineon – grew at above-average rates compared to other regions. Segment Result improved from €81 million in the first quarter to €94 million in the second quarter of the current fiscal year. The Segment Result Margin came in at 14.0 percent, compared with 13.2 percent in the preceding three-month period. IPC segment revenue increased by 6 percent from €249 million in the first quarter to €265 million in the second quarter of the 2016 fiscal year, driven by stronger demand in traction, major home appliances and renewable energy. Revenue from products for electric drives remained flat. Segment Result improved from €23 million to €26 million quarter-on-quarter. The Segment Result Margin finished at 9.8 percent, compared with 9.2 percent one quarter earlier. For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -6- PMM segment revenue declined by 3 percent to €496 million in the second quarter. The equivalent figure for the preceding quarter was €510 million, driven by strong demand for products for DC-DC conversion. In the second quarter, this demand softened. Likewise, the demand for components for mobile devices was lower due to seasonal factors. A sharp increase in revenue from cellular network infrastructure and a modest improvement in AC-DC conversion driven by the installation of charging stations for electromobility in China could not fully compensate this decline. Segment Result amounted to €74 million in the second quarter compared to €79 million in the previous quarter. The Segment Result Margin decreased from 15.5 percent to 14.9 percent. CCS segment revenue grew by 4 percent to €180 million, compared to €173 million in the preceding quarter. Lower revenue from authentication business due to seasonal factors contrasted with increased demand in payment, government ID and security for mobile devices. Segment Result increased from €35 million in the first quarter to €36 million in the second quarter of the current fiscal year. The Segment Result Margin amounted to 20.0 percent, compared with 20.2 percent in the first quarter. Analyst and press telephone conference Infineon will host a telephone conference call for analysts and investors (in English only) on May 3, 2016 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company’s results for the second quarter of the 2016 fiscal year. In addition, the Management Board will host a live telephone conference with the media at 11:00 am (CEST), 5:00 am (EDT). 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 Q2 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/investor/reporting/index.html For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -7- Infineon Financial Calendar (* preliminary) May 23 – 24, 2016 JPMorgan Global TMT Conference, Boston May 25, 2016 Berenberg European Conference USA, Tarrytown (NY) May 26, 2016 Equita European Conference, Milan May 30, 2016 Danske Bank German Corporate Day, Copenhagen Jun 1, 2016 Berenberg TMT Conference, Zurich Jun 8 – 9, 2016 Deutsche Bank German, Suisse & Austrian Conference, Berlin Jun 15 – 16, 2016 Exane European CEO Conference, Paris Jun 20, 2016 JPMorgan CEO Conference, London Aug 2, 2016* Sep 1, 2016 Sep 21, 2016 Nov 16 – 17, 2016 Nov 23, 2016* Nov 29 – 30, 2016 Earnings Release for the Third Quarter of the 2016 Fiscal Year Commerzbank Sector Week, Frankfurt Baader Investment Conference, Munich Morgan Stanley TMT Conference, Barcelona Earnings Release for the Fourth Quarter and 2016 Fiscal Year Credit Suisse TMT Conference Scottsdale (AZ) 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 €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: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +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 mo nt hs end ed M ar 3 1, 16 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 D ec 3 1, 15 6 mo nt hs end ed M ar 3 1, 15 M ar 3 1, 16 M ar 3 1, 15 1,611 (1,045) 566 (195) (195) 4 (6) 174 1 (20) 1 156 21 177 3 180 1,556 (998) 558 (198) (200) 4 2 166 1 (13) 154 (2) 152 152 1,483 (1,005) 478 (180) (218) 4 (5) 79 2 (18) 2 65 65 65 3,166 (2,042) 1,124 (393) (395) 8 (4) 340 2 (33) 1 310 19 329 3 332 2,611 (1,706) 905 (319) (354) 10 (10) 232 7 (22) 2 219 (24) 195 6 201 180 (1) 153 1 64 (1) 333 1 200 1,125 0.16 0.16 1,124 0.14 0.14 1,122 0.06 0.06 1,124 0.30 0.30 1,122 0.18 0.18 1,130 0.16 0.16 1,129 0.14 0.14 1,124 0.06 0.06 1,129 0.30 0.30 1,123 0.18 0.18 The calculatio n o f earnings per share is based o n unro unded figures. For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] -9- Segment Revenues 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 Segment Result P lus/minus: Impairment 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 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 6 m o nt hs e nde d M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 M a r 3 1, 16 M a r 3 1, 15 228 220 198 448 366 (3) (4) - (8) (2) (1) (2) (47) 9 (2) (56) (1) (2) (108) 9 (4) (103) (2) (3) (116) - (1) - (1) - (1) 174 166 (8) 79 (1) 340 (11) 232 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 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 6 m o nt hs e nde d M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 M a r 3 1, 16 M a r 3 1, 15 177 153 64 330 194 3 4 - 8 2 1 2 47 (9) 2 56 1 2 108 (9) 4 103 2 3 116 - 1 - 1 - 1 (14) (6) 8 (33) 1 (20) 11 (35) (10) (7) - (17) - 207 194 150 401 293 1,130 0.18 1,129 0.17 1,124 0.13 1,129 0.36 1,123 0.26 The calculatio n o f the adjusted earnings per share is based o n unro unded 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: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 10 - Revenues and Segment Result for the three and six months ended March 31, 2016 and 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 6 m o nt hs e nde d M a r 3 1, 16 M a r 3 1, 15 +/ - in % M a r 3 1, 16 M a r 3 1, 15 +/ - in % 670 265 496 180 2 (2) 1,611 598 241 464 182 4 (6) 1,483 12 10 7 (1) (50) 67 9 1,285 513 1,006 353 4 5 3,166 1,115 431 744 314 9 (2) 2,611 15 19 35 12 (56) +++ 21 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 M argin [in %] 6 m o nt hs e nde d M a r 3 1, 16 M a r 3 1, 15 +/ - in % M a r 3 1, 16 M a r 3 1, 15 +/ - in % 94 26 74 36 (2) 228 14.2% 72 18 75 33 2 (2) 198 13.4% 31 44 (1) 9 --15 174 48 153 70 1 2 448 14.2% 151 45 115 53 4 (2) 366 14.0% 15 7 33 32 (75) +++ 22 For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 11 - Revenues and Segment Result for the three months ended March 31, 2016 and December 31, 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 M a r 3 1, 16 D e c 3 1, 15 +/ - in % 670 265 496 180 2 (2) 1,611 614 249 510 173 3 7 1,556 9 6 (3) 4 (33) --4 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 M argin [in %] M a r 3 1, 16 D e c 3 1, 15 +/ - in % 94 26 74 36 (2) 228 14.2% 81 23 79 35 2 220 14.1% 16 13 (6) 3 --4 Employees Infineo n Thereo f: Research and develo pment M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 35,978 5,993 35,565 5,867 34,928 5,652 For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 12 - Consolidated Statement of Financial Position € in millions M a r 3 1, 16 D e c 3 1, 15 S e p 3 0 , 15 A SSET S: 606 1,197 757 1,165 2 243 3,970 2,014 1,694 34 3 600 155 4,500 8,470 651 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 8,741 848 11 33 690 269 131 166 2,104 928 433 70 73 81 1,585 3,689 759 220 124 274 1,388 1,779 432 133 73 86 2,503 3,891 802 402 123 225 1,585 1,760 426 147 72 86 2,491 4,076 2,263 5,004 (2,563) 114 (37) 4,781 4,781 8,470 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 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: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 13 - Regional Revenue Development in % 6 m o nt hs e nde d 3 m o nt hs e nde d M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 M a r 3 1, 16 M a r 3 1, 15 35% 32% 36% 33% 37% 16% 15% 16% 16% 17% 46% 49% 45% 48% 45% 23% 25% 22% 24% 22% 6% 13% 7% 12% 6% 13% 6% 13% 6% 12% 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 10% 10% 11% 10% 10% 100% 100% 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 M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 606 1,197 1,803 651 1,343 1,994 738 918 1,656 848 928 1,776 27 11 1,779 1,790 204 39 1,793 1,832 (176) 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 T o t a l de bt N e t c a s h po s it io n 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 millions 3 mo nt hs e nde d Net cash pro vided by o perating activities fro m co ntinuing o peratio ns Net cash 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 6 mo nt hs e nde d M a r 3 1, 16 D e c 3 1, 15 M a r 3 1, 15 M a r 3 1, 16 M a r 3 1, 15 195 (5) (145) 45 175 (178) 3 0 135 (2,220) 205 (1,880) 370 (183) (142) 45 96 (1,707) (440) (2,051) For the Business and Trade Press: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 14 - Consolidated Statement of Cash Flows € in millions 3 mo nt hs end ed M ar 3 1, 16 N e t inc o m e M inus: inco me fro m disco ntinued o peratio ns, net o f inco me taxes D ec 3 1, 15 M ar 3 1, 15 180 (3) 152 - 65 - 213 (21) 19 3 2 (90) 17 (66) 54 (76) 1 (13) (25) 195 (1) 194 (1,011) 1,156 (28) (135) 13 (5) (5) 1 (5) 1 3 (225) (225) (225) (36) (9) 651 606 211 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) 5 673 651 203 16 1 (147) 38 (4) 36 (35) 2 (2) (38) 135 4 139 (495) 290 (7) (1,864) (24) (126) 6 (2,220) (2,220) 2 2,385 (807) 8 (202) 1,386 1,386 (695) 40 1,393 738 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 o n dispo sals o f pro perty, plant and equipment Dividends received fro m asso ciated co mpanies 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 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 pro v ide d by ( 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 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 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 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 Dividend payments 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 change 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: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected] - 15 - 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: INFXX201605-052e Worldwide Headquarters: Media Relations Investor Relations Name: Bernd Hops EU/APAC/USA/CAN Phone: +49 89 234 23888 +49 89 234 26655 Email: [email protected] [email protected]