Pr e s s Re l e a s e Big revenue jump on the back of strong demand and integration of International Rectifier Integration of International Rectifier well on track Q2 FY 2015: Revenue up by €355 million from €1,128 million to €1,483 million due to consolidation of International Rectifier, increased demand for Chip Card & Security products and positive currency development; Segment Result up from €169 million to €198 million; Segment Result Margin down quarter-onquarter from 15.0 percent to 13.4 percent Net income and earnings per share lower as a result of acquisition-related charges; adjusted earnings per share stable Outlook for Q3 FY 2015: Quarter-on-quarter revenue growth of between 7 and 11 percent and Segment Result Margin of 15 percent at the mid-point of the growth range Outlook for FY 2015: Based on an assumed exchange rate of US$ 1.10 to the euro, revenue growth of 36 percent, plus or minus 2 percentage points and Segment Result Margin of 15 percent expected at the mid-point of the growth range Neubiberg, Germany, May 5, 2015 – Infineon Technologies AG today reports its results for the second quarter of the 2015 fiscal year ended March 31, 2015. ”Infineon has recorded a big revenue jump in the second quarter. Business was running very well, with additional tailwinds provided by the acquisition of International Rectifier and the strong dollar”, stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. ”The signals we are receiving from our markets are generally positive. We are making good progress with the integration of International Rectifier. Our strategy is paying off and Infineon remains on a growth path.” For the Business and Trade Press: INFXX201505-052e 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- 3 mo nt hs end ed € in millions M ar 3 1, 15 1,483 198 13.4% 69 Revenue Segment Result Segment Result M argin [in %] Inco me fro m co ntinuing o peratio ns – sequential 3 mo nt hs end ed year-onyear 3 mo nt hs end ed +/- in % D ec 3 1, 14 +/- in % M ar 3 1, 14 31 17 (47) --- 1,128 169 15.0% 130 6 41 36 (39) 1,051 146 13.9% 114 --- 10 69 (49) 136 (44) 124 0.06 – 0.06 (50) – (50) 0.12 – 0.12 (40) --(45) 0.10 0.01 0.11 D ilut e d e a rnings pe r s ha re ( in e uro ) 0.06 – 0.06 (50) – (50) 0.12 – 0.12 (40) --(45) 0.10 0.01 0.11 A djus t e d e a rnings pe r s ha re ( in e uro ) - dilut e d 2 0.13 – 0.13 18 0.11 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 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 10. Scope of reporting Infineon's acquisition of 100 percent of the shares of (and related voting rights in) International Rectifier Corporation ("International Rectifier"), based in El Segundo, California (USA), announced on August 20, 2014, was closed on January 13, 2015. This press release therefore includes the results, assets, liabilities and cash flows of International Rectifier with effect from the acquisition date. International Rectifier's various lines of business have been fully integrated with Infineon's existing Automotive, Industrial Power Control and Power Management & Multimarket segments, whereby by far the largest proportion has been allocated to the Power Management & Multimarket segment. The figures presented for prior periods have not been adjusted. Review of Group financials for the second quarter of the 2015 fiscal year Second-quarter revenue of the Infineon Group grew by 31 percent to €1,483 million, compared to the €1,128 million reported one quarter earlier. The €355 million jump in revenue was attributable to the first-time consolidation of International Rectifier, strong organic revenue growth in the Chip Card & Security segment and the continued strengthening of the US dollar against the euro. Group revenue includes revenue of €199 million generated by International Rectifier from closing of the acquisition on January 13, 2015 up to the end of the quarter on March 31, 2015. For the Business and Trade Press: INFXX201505-052e 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- Segment Result improved by 17 percent from €169 million in the first quarter to €198 million in the second quarter of the current fiscal year. The first-time consolidation of International Rectifier as well as currency effects had a positive impact on Segment Result, whereas the normal round of selling price reductions partly offset the positive impact of the step-up in revenue. The previous quarter's Segment Result had also benefitted from the one-time positive impact arising from reduction in future rental expenses for the Group's Campeon headquarters. The Segment Result Margin came in at 13.4 percent, down from the first quarter’s 15.0 percent. In addition to the factors stated above, the decrease in Segment Result margin was also a consequence of the first-time consolidation of International Rectifier. Non-Segment Result decreased to a negative amount of €113 million due to additional acquisition-related depreciation and amortization and other expenses totaling €102 million following the acquisition of International Rectifier. Therefore, operating income declined quarter-on-quarter from €153 million to €85 million. Income from continuing operations fell on a similar scale from €130 million to €69 million in the second quarter of the 2015 fiscal year. Income from discontinued operations, after rounding, was €0 million, as a result of which second-quarter net income also amounted to €69 million. In the first quarter, Infineon reported income from discontinued operations amounting to €6 million and net income of €136 million. Earnings per share declined quarter-on-quarter from €0.12 to €0.06 (basic and diluted). Second-quarter adjusted earnings per share1 (diluted) amounted to €0.13. Acquisitionrelated depreciation and amortization and other expenses, net of tax, were eliminated for the purposes of calculating adjusted earnings per share (diluted). Investments – which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets – amounted to €150 million in the second quarter 2015, compared to the €141 million in the preceding quarter. Depreciation and amortization rose quarter-on-quarter from €141 million to €199 million, mainly due to the first-time inclusion of depreciation and amortization arising from the consolidation of International Rectifier. This figure includes an expense of €33 million recorded on assets recognized or revalued in conjunction with the purchase price allocation. 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 calculation of earnings per share pursuant to IFRS is presented in detail on page 10. For the Business and Trade Press: INFXX201505-052e 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- Free cash flow2 from cash flow from continuing operations deteriorated to a negative amount of €1,880 million in the second quarter, of which €1,864 million (after deduction of cash acquired) are related to the acquisition of International Rectifier. The equivalent figure for the free cash flow for the first quarter of the 2015 fiscal year was a negative €171 million. Net cash provided by operating activities from continuing operations was positive in the second quarter of the current fiscal year and amounted to €135 million. As a result of the purchase price payment for International Rectifier and the distribution of a dividend totaling €202 million in February, the gross cash position decreased from €2,107 million at December 31, 2014 to €1,656 million at March 31, 2015. Since part of the purchase price for International Rectifier has been financed with outside capital, short-term debt and long-term debt increased during the three-month period to €1,832 million. Reflecting these changes, the net cash position at the end of the second quarter was a negative €176 million, compared to a positive €1,917 million at December 31, 2014. Integration of International Rectifier The integration of International Rectifier into the Infineon Group is proceeding according to plan. At the latest in fiscal year 2017, International Rectifier’s margin contribution is expected to be at least in line with Infineon’s target of 15 percent Segment Result margin over the cycle. Sales has been integrated into one joint team since March. In addition, many key organizational changes have already been completed. Infineon has also started the optimization of the product portfolio. In March, the combined range of gallium nitride products was presented at the US trade fair for power electronics - APEC 2015, for example. Additionally, a comprehensive concept for the combined production network has been drawn up. We will be discontinuing manufacturing operations at Techview in Singapore by the end of the year. Production in Newport, Wales, will be running at full capacity until the end of calendar year 2016 and will then be phased out in 2017. In parallel, we are looking for a buyer to take over and continue to operate the factory. Outlook for the third quarter of the 2015 fiscal year Based on an assumed exchange rate of US$ 1.10 to the euro, Infineon expects quarteron-quarter revenue growth of between 7 and 11 percent in the third quarter of the 2015 fiscal year. All segments are forecast to make a contribution to the expected revenue 2 For definitions and the calculation of free cash flow and of the gross and net cash position, please see page 14. For the Business and Trade Press: INFXX201505-052e 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- growth. At the mid-point of the growth range, the Segment Result Margin is expected to be about 15 percent. Outlook for the 2015 fiscal year Based on an assumed exchange rate of US$ 1.10 (previously US$ 1.20) to the euro, Infineon forecasts year-on-year growth in revenue of 36 percent, plus or minus 2 percentage points. At the mid-point of the growth range, the Segment Result Margin is expected to be about 15 percent. All four operating segments will contribute to revenue growth. This outlook also includes International Rectifier's expected contribution to revenue in the period from January 13, 2015 to September 30, 2015. Investments during the 2015 fiscal year are expected to be in the region of €800 million. This figure includes investments in plant and equipment at existing factories and in intangible assets including capitalized development assets. Specifically included in these investments are €60 to €70 million for readying the second shell in Kulim, Malaysia, for volume production and €21 million for the purchase of Qimonda patents in conjunction with the settlement reached with the insolvency administrator of Qimonda AG. Depreciation and amortization will increase to around €750 million, mostly as a result of acquisition-related depreciation and amortization. For the Business and Trade Press: INFXX201505-052e 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- Segment earnings in the second quarter of the 2015 fiscal year in %of total revenue € in millions 3 mo nt hs end ed M ar 3 1, 15 sequential +/- in % 3 mo nt hs end ed D ec 3 1, 14 year-onyear +/- in % 3 mo nt hs end ed M ar 3 1, 14 Inf ine o n Revenue Segment Result 100 1,483 198 13.4% 31 17 1,128 169 15.0% 41 36 1,051 146 13.9% 41 598 64 10.7% 15 (11) 518 72 13.9% 24 (3) 484 66 13.6% 16 241 20 8.3% 27 (29) 190 28 14.7% 30 (39) 185 33 17.8% 31 464 82 17.7% 66 71 280 48 17.1% 84 +++ 252 37 14.7% 12 182 32 17.6% 38 78 132 18 13.6% 50 +++ 121 8 6.6% 0 4 2 - 4 2 (33) - 6 2 0 (6) (2) ----- 4 1 ----- 3 - Segment Result M argin [in %] A ut o m o t iv e ( A T V ) Segment Revenues Segment Result Segment Result M argin [in %] Indus t ria l P o we r C o nt ro l ( IP C ) 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 ) Segment Revenues Segment Result Segment Result M argin [in %] C hip C a rd & S e c urit y ( C C S ) 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 ATV segment revenue climbed quarter-on-quarter from €518 million to €598 million, partly due to the inclusion of International Rectifier and partly due to increasing seasonal demand and favorable currency effects. Recovering demand for new vehicles in Western Europe, adding to the already strong markets in China and North America, also had a positive impact. Segment Result fell from €72 million to €64 million. The secondquarter Segment Result Margin of 10.7 percent compares with the previous quarter’s 13.9 percent. The IPC segment recorded revenue of €241 million in the second quarter of the 2015 fiscal year, 27 percent higher than the €190 million achieved one quarter earlier. Revenue increased in all fields of application, with renewable energy experiencing particularly pronounced rises in demand. The substantial increase in revenue generated with major home appliances was partly due to the consolidation of International Rectifier, but also to some extent to increasing demand from customers. Segment Result fell from €28 million in the first quarter to €20 million in the second quarter of the current fiscal year. The Segment Result Margin amounted to 8.3 percent, compared with 14.7 percent in the previous quarter. For the Business and Trade Press: INFXX201505-052e 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- PMM segment revenue increased quarter-on-quarter by 66 percent from €280 million to €464 million, primarily as a result of the integration of International Rectifier. Demand for power supply products also grew due to seasonal factors. Business with products for mobile devices and cellular network infrastructure – which were not affected by the addition of International Rectifier’s business – recorded good growth. The Segment Result increased quarter-on-quarter from €48 million to €82 million. The Segment Result Margin improved from 17.1 percent to 17.7 percent. CCS segment revenue increased sharply from €132 million in the first quarter to €182 million in the second quarter of the 2015 fiscal year. The 38 percent increase was achieved entirely through organic growth, including significantly higher demand for payment cards on the one hand and good contributions from mobile communication, government ID and mobile security fields of application on the other. Segment Result rose in the second quarter to €32 million, compared to €18 million in the preceding quarter, while the Segment Result Margin improved from 13.6 percent to 17.6 percent. Analyst and press telephone conference Infineon will host a telephone conference call for analysts and investors (in English only) on May 5, 2015 at 9:30 am (CEST), 3:30 am (EST). During the call, the Infineon Management Board will present the Company’s results for the second quarter of the 2015 fiscal year. In addition, the Management Board will host a live telephone conference with the media at 11:00 am (CEST), 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 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: INFXX201505-052e 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- Infineon Financial Calendar (*preliminary) May 28, 2015 CCS Analyst Call by Stefan Hofschen, Division President Chip Card & Security May 28, 2015 J.P. Morgan Cazenove Investor Forum, Amsterdam Jun 2, 2015 DZ Bank Sustainable Technologies Conference, Zurich Jun 3, 2015 Danske Bank German Corporate Day, Copenhagen Jun 17, 2015 Deutsche Bank German, Swiss & Austrian Conference, Berlin Jul 30, 2015* Earnings Release for the Third Quarter of the 2015 Fiscal Year Sep 16, 2015 ATV Analyst Call by Jochen Hanebeck, Division President Automotive Sep 22, 2015 Baader Investment Conference, Munich Sep 23, 2015 Berenberg Bank and Goldman Sachs German Corporate Conference, Munich Nov 11 – 13, 2015 Morgan Stanley TMT Conference, Barcelona Nov 26, 2015* Earnings Release for the Fourth Quarter and Full 2015 Fiscal Year Nov 30 – Dec 3, 2015 Credit Suisse TMT Conference, Scottsdale/Arizona About Infineon Infineon Technologies AG is a world leader in semiconductors. Infineon offers products and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2014 fiscal year (ending September 30), the Company reported sales of euro 4.3 billion with about 29,800 employees worldwide. In January 2015, Infineon acquired US-based International Rectifier Corporation, a leading provider of power management technology, with revenues of US$1.1 billion (fiscal year 2014 ending June 29) and approximately 4,200 employees. 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 For the Business and Trade Press: INFXX201505-052e 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- FINANCIAL INFORMATION According to IFRS – Preliminary and Unaudited Consolidated Statement of Operations 3 mo nt hs end ed € in millions; except for the per share data M ar 3 1, 15 D ec 3 1, 14 6 mo nt hs end ed M ar 3 1, 14 M ar 3 1, 15 M ar 3 1, 14 1,483 (1,003) 480 (180) (214) 4 (5) 85 2 (18) 2 1,128 (701) 427 (139) (136) 6 (5) 153 6 (5) - 1,051 (653) 398 (136) (121) 6 (12) 135 2 (4) - 2,611 (1,704) 907 (319) (350) 10 (10) 238 7 (22) 2 2,035 (1,276) 759 (268) (236) 11 (23) 243 4 (13) - 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 71 154 133 225 234 Inco me tax (2) 69 (24) 130 (19) 114 (26) 199 (36) 198 - 6 10 6 13 69 136 124 205 211 1 68 136 124 1 204 211 B asic earnings per share (in euro ) attributable to shareho lders o f Infineo n Techno lo gies A G1: Weighted average shares o utstanding (in millio n) – basic B asic earnings per share (in euro ) fro m co ntinuing o peratio ns 1,122 0.06 1,122 0.12 1,117 0.10 1,122 0.18 1,100 0.18 B asic earnings per share (in euro ) fro m disco ntinued o peratio ns - - 0.01 - 0.01 0.06 0.12 0.11 0.18 0.19 1,124 0.06 1,123 0.12 1,123 0.10 1,123 0.18 1,124 0.18 - - 0.01 - 0.01 0.06 0.12 0.11 0.18 0.19 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 (lo ss) 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 Inco me (lo ss) 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 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: 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 The calculatio n fo r earnings per share is based o n unro unded figures. For the Business and Trade Press: INFXX201505-052e 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 - Segment Revenues and Segment Results Infineon defines Segment Result as operating income (loss) excluding asset impairments (net of reversals); impact on earnings of restructuring measures and closures (net); share-based compensation expense; acquisition-related depreciation/amortization and other expenses; gains (losses) on sales of assets, businesses, or interests in subsidiaries, and other income (expense), including litigation settlement 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 measures and clo sures, net Share-based co mpensatio n expenses A cquisitio n-related depreciatio n/amo rtizatio n and o ther expenses 6 m o nt hs e nde d M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 M a r 3 1, 15 M a r 3 1, 14 198 169 146 366 262 - (2) - (2) - (1) (2) (102) (2) (8) (3) (1) - (2) (3) (110) (7) (3) - - - 2 - 2 (8) 85 (4) 153 (9) 135 (11) 238 (11) 243 Gains (lo sses) o n sales o f assets, businesses, o r interests in subsidiaries, net Other inco me and expenses, 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 is influenced by amounts relating to purchase price allocations for acquisitions (in particular International Rectifier) as well as by other exceptional items. In order 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) 6 m o nt hs e nde d M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 M a r 3 1, 15 M a r 3 1, 14 68 130 114 198 202 - 2 - 2 - 1 2 102 2 8 3 1 - 2 3 110 7 3 - + Lo sses o n sales o f assets, businesses, o r interests in subsidiaries, net - - (2) - (2) + Other inco me and expenses, net 8 4 9 11 11 - Tax effects o n adjustments (32) (2) (1) (34) (2) 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 149 144 124 292 219 1,124 0.13 1,123 0.13 1,123 0.11 1,123 0.26 1,124 0.19 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 measures and clo sures, net + Share-based co mpensatio n expense + A cquisitio n-related depreciatio n/amo rtizatio n and o ther expenses Weighted-average number o f shares o utstanding – diluted A djus t e d e a rnings pe r s ha re ( in e uro ) – dilut e d 1 1 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 over and above the net income and earnings per share (diluted) determined in accordance with IFRS. For the Business and Trade Press: INFXX201505-052e 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 and six months ended March 31, 2015 and 2014 3 m o nt hs e nde d Revenue € in millions 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 6 m o nt hs e nde d M a r 3 1, 15 M a r 3 1, 14 +/ - in % M a r 3 1, 15 M a r 3 1, 14 +/ - in % 598 241 464 182 4 (6) 1,483 484 185 252 121 6 3 1,051 24 30 84 50 (33) --41 1,116 431 743 314 9 (2) 2,611 936 364 490 229 11 5 2,035 19 18 52 37 (18) --28 3 m o nt hs e nde d Segment Result € in millions 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 6 m o nt hs e nde d M a r 3 1, 15 M a r 3 1, 14 +/ - in % M a r 3 1, 15 M a r 3 1, 14 +/ - in % 64 20 82 32 2 (2) 198 66 33 37 8 2 146 (3) (39) +++ +++ --36 136 49 129 50 4 (2) 366 121 60 66 14 3 (2) 262 12 (18) 95 +++ 33 40 For the Business and Trade Press: INFXX201505-052e 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 - Revenues and Segment Result for the three months ended March 31, 2015 and December 31, 2014 3 m o nt hs e nde d Revenue € in millions 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 M a r 3 1, 15 D e c 3 1, 14 +/ - in % 598 241 464 182 4 (6) 1,483 518 190 280 132 4 4 1,128 15 27 66 38 --31 3 m o nt hs e nde d Segment Result € in millions 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 M a r 3 1, 15 D e c 3 1, 14 +/ - in % 64 20 82 32 2 (2) 198 72 28 48 18 2 1 169 (11) (29) 71 78 --17 Employees Infineo n Thereo f: Research and develo pment M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 34,928 5,652 30,493 4,978 28,096 4,653 For the Business and Trade Press: INFXX201505-052e 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 - Consolidated Statement of Financial Position € in millions M a r 3 1, 15 D e c 3 1, 14 S e p 3 0 , 14 738 918 739 1,013 10 228 21 3,667 2,028 1,827 36 395 165 4,451 8,118 1,393 714 486 755 9 337 21 3,715 1,653 277 35 378 136 2,479 6,194 1,058 1,360 581 707 7 221 3,934 1,700 250 35 378 141 2,504 6,438 39 35 35 677 315 60 187 1,278 1,793 537 167 75 84 2,656 3,934 572 259 68 198 1,132 155 383 5 69 58 670 1,802 648 590 69 261 1,603 151 379 5 70 72 677 2,280 2,258 5,222 (3,447) 182 (37) 4,178 6 4,184 8,118 2,255 5,415 (3,366) 129 (37) (9) 4,387 5 4,392 6,194 2,255 5,414 (3,502) 64 (37) (40) 4,154 4 4,158 6,438 A SSET S: Cash and cash equivalents Financial investments Trade receivable 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 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 P ut o ptio ns o n o wn 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: INFXX201505-052e 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 - Regional Sales Development 3 m o nt hs e nde d in % 6 m o nt hs e nde d M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 M a r 3 1, 15 M a r 3 1, 14 36% 37% 42% 37% 40% 16% 18% 21% 17% 20% 45% 46% 40% 45% 42% 22% 23% 19% 22% 20% 6% 13% 100% 6% 11% 100% 7% 11% 100% 6% 12% 100% 6% 12% 100% 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 T o tal 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 position in order to provide investors with a better understanding of its overall liquidity. The gross and net cash position is determined as follows from the Consolidated Statement of Financial Position: € in millions M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 738 918 1,656 1,393 714 2,107 327 1,871 2,198 39 35 21 1,793 -176 155 1,917 167 2,010 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 Free Cash Flow Infineon reports the free cash flow figure (defined as net cash provided by or used in operating activities and net cash used in or provided by investing activities – in both cases 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: 3 m o nt hs e nde d €in millions 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 f ro m c o nt inuing o pe ra t io ns 6 m o nt hs e nde d M a r 3 1, 15 D e c 3 1, 14 M a r 3 1, 14 M a r 3 1, 15 M a r 3 1, 14 135 (39) 203 96 361 (2,220) 205 (1,880) 513 (645) (171) (216) 64 51 (1,707) (440) (2,051) (392) 112 81 For the Business and Trade Press: INFXX201505-052e 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 - Consolidated Statement of Cash Flows 3 mo nt hs end ed € in millions M ar 3 1, 15 N e t inc o m e P lus/minus: lo ss (inco me) fro m disco ntinued o peratio ns, net o f inco me taxes D ec 3 1, 14 M ar 3 1, 14 69 - 136 (6) 124 (10) 199 2 16 1 (147) 37 (4) 36 (36) 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 1,393 738 141 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 1,393 126 19 2 (2) 2 (78) (21) 46 43 (39) 2 (1) (10) 203 (6) 197 (535) 471 (24) (130) 2 (216) (216) (1) 1 (6) 7 1 1 (129) (126) (126) (145) 472 327 A djustments to reco ncile net inco me (lo ss) to net cash pro vided by (used in) 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 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 ( 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 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 ( 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 n 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 Net change in related party financial receivables and payables 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 P ro ceeds fro m the issuance o f put o ptio ns o n o wn 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 increase (decrease) 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: INFXX201505-052e 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] - 16 - 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: INFXX201505-052e 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]