Third Quarter FY 2013
Quarterly Update
Infineon Technologies AG
Investor Relations
Table of Contents
Infineon at a Glance
Market Update
Results and Outlook
Disclaimer:
This presentation contains forward-looking statements about the business, financial condition and earnings
performance of the Infineon Group.
These statements are based on assumptions and projections resting upon currently available information and
present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may
therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update
forward-looking statements.
Revenue Split by Division
Q3 FY 2013 revenue: EUR 1,022m
ATV
€ 459m
IPC
€ 173m
PMM
€ 266m
CCS
€ 119m
OOS+C&E*
€ 5m
* Other Operating Segments;
Corporate and Eliminations.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 3
Revenue above EUR 1bn;
Segment Result Margin Back above 10%
[EUR m]
Q3 FY12
Q2 FY13
Q3 FY13
Revenue
990
918
1,022
Segment Result
126
68
117
12.7%
7.4%
11.4%
Net Income*
82
33
77
Investment
158
65
71
FCF from cont.
operations
-22
73
135
Gross Cash
2,150
2,016
2,137
Net Cash
1,907
1,705
1,832
SR Margin
1022
918
68
Q2 FY13
Revenue
[EUR m]
117
Q3 FY13
Segment Result
* Net Income includes „income/loss from discont. operations, net of income taxes“ in Q3 FY12 EUR -8m, in Q2 FY13 EUR -3m and in Q3 FY13 -5m.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 4
Tight Customer Relationships are Based on
System Know-how and App Understanding
ATV
PMM
IPC
CCS
Distributors
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 5
Infineon Holds Top Positions in All
Target Markets
Automotive
Power
Chip Card
#2
#1
#1
Renesas
14%
9%
Infineon
8%
STMicro
Freescale
NXP
7%
6%
12%
Infineon
8%
Mitsubishi
7%
Toshiba
6%
STMicro
Int. Rectifier
5%
Infineon
25%
NXP
24%
21%
Samsung
18%
STMicro
SHHIC
10%
Calendar year 2012.
Calendar year 2011.
Calendar year 2011.
Source: Strategy Analytics, April 2013.
Source: IMS Research (an IHS company),
July 2012.
Source: IMS Research (an IHS company),
August 2012.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 6
Table of Contents
Infineon at a Glance
Market Update
Results and Outlook
Despite Europe, Global Car Production Up in
2013; Long-Term Prospects Still Healthy
Global car production (cars ≤ 6t)
[units m]
CAGR(12-16) = 4.2%
+2.0%
81.5
83.1
6,0
9,4
6,1
8,8
12,8
12,8
87.0
99.5
102.5
7,6
7,7
7,9
7,7
8,2
7,5
15,5
16,1
16,9
26,6
28,1
29,2
96.3
92.3
7,3
8,1
74.4
76.9
6,4
9,1
6,6
7,9
10,8
11,5
18,6
22,6
17,1
17,6
20,4
24,8
15,4
16,2
16,5
17,2
17,8
17,8
17,9
11,9
13,1
19,0
20,2
19,3
18,8
19,5
20,3
21,1
21,9
22,8
2010
2011
2012
2013
2014
2015
2016
2017
2018
Europe
North America
China
6,7
8,2
13,5
14,7
APAC ex China
Japan
RoW
.
Source: IHS, July 2013. www.ihs.com.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 8
Semiconductor Value-Per-Car Continues
to Increase
Semiconductor value per car by region
[USD]
Brazil
China
S. Korea
[USD]
209
184
CAGR
+3.3%
252
206
CAGR
+5.2%
367
332
CAGR
+2.5%
448
410
N. America
449
399
Europe
482
441
Japan
2016
CAGR
+2.2%
CAGR
+3.0%
CAGR
+2.2%
2012
Source: Strategy Analytics (SA): “Automotive Semiconductor Demand
Forecast 2011 – 2020”, July 2013; including semiconductor sensors.
2013-07-30
Semiconductor value per car
329
315
World
2013
CAGR
+2.5%
2012
Semiconductor market by segment
[USD bn]
7.9
6.0
Powertrain
CAGR
+7.2%
11.2
Safety*
Body**
8.2
CAGR
+8.2%
8.3
6.6
CAGR
+5.9%
6.5
4.9
Infotainment
2016
CAGR
+7.0%
2012
* Safety = “Safety” + “Chassis” according to SA definition.
** Body = “Body” + “Security” according to SA definition.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 9
Growth in Motor Controls Driven by Energy
Saving, Government Initiatives and Legislation
Industrial motor controls
Market description
[USD bn]
40
Others
CAGR(12-16) = 8.2%
Food & beverage, medical &
scientific, semiconductor
machinery, printing sector.
Comparatively low IGBT content.
30
Servo
Drives
20
Medium
Voltage
Drives
10
0
2012
2013
2014
2015
2016
AC Drives
Med. Voltage Drives
Servo Drives
others
AC
Drives
High precision motors for
general motion control and
CNC products.
600/1200 V IGBT devices.
Heavy industries (oil & gas,
metals, power generation).
High-power drives (up to 10 MW).
1.7/3.3/6.5 kV IGBT modules.
Fans, pumps, material
handling, packaging.
Mainly 600/1200 V IGBT
devices used.
Source: IHS (IMS Research): “The World Market for Industrial Automation Equipment – July 2013 Update”, July 2013.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 10
Even With EMEA Shrinking in 2013
Worldwide Demand is Growing
PV inverter installations by type
[GW]
[GW]
CAGR(12-16) = 15.0%
60
PV inverter installations by region
CAGR(12-16) = 15.0%
60
50
50
40
40
30
30
20
20
10
10
CAGR(12-16) = 16.3%
0
0
2012
2013
Utility-Scale
Medium Commerce
Residential
2014
2015
2016
Large Commerce
Small Commerce
2012
EMEA
2013
2014
2015
Americas
China
Japan
2016
RoW
Source: IHS (IMS Research): “PV Inverter – World Market Report – 2013 Report”, July 2013.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 11
Growth in Servers Compensates
Slowdown in PCs and Notebooks
PCs and Notebooks
Servers
[units m]
[units k]
CAGR(12-16) = -2.7%
CAGR(12-16) = 4.6%
12000
195
200
CAGR(12-16) = -7.7%
11500
80
10500
PCs
40
Notebooks
9500
60
10.546
10.004
9.672
9000
8500
0
8000
2012
2013
2014
2015
2016
Source: Gartner: “Desktop-Based PCs, Notebooks, Ultramobiles and
Tablets, Worldwide: 2011 – 2017”, 2Q13 Update, July 2013.
2013-07-30
11.099
10000
100
20
11.562
11000
131
141
155
134
137
120
147
140
168
160
133
147
180
2012
2013
2014
2015
2016
Source: Gartner: “Forecast: Servers, All Countries, 2011 – 2017”, 2Q13
Update, July 2013.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 12
Our Business With RF Components, Si-Mics
and Power Semis Fueled by Mobile Devices
Smartphones
Tablets*
[units m]
[units m]
CAGR(12-16) = 16.4%
1400
1283
1200
CAGR(12-16) = 36.2%
500
400
1189
414
1075
1000
932
800
350
300
276
600
700
200
202
400
100
200
0
0
2012
2013
2014
2015
2012
2016
Source: Strategy Analytics: “Global Smartphone Sales Forecast for 88
Countries: 2007 to 2017”, July 2013.
2013-07-30
120
2013
2014
2015
2016
The chart was created by Infineon based on Gartner research.
Source: Gartner: “Forecast: Desk-based PCs, Notebooks, Ultramobiles,
and Tablets, Worldwide, 2011 – 2017”, 2Q13 Update, July 2013.
*
Including Utility Tablets, Basic Tablets and Premium Tablets.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 13
Double-digit Growth in Payment and
Government ID; SIM Cards Flat
Smart card ICs
Government ID & healthcare
[USD bn]
4
[USD m]
1000
CAGR(12-16) = 10.1%
3
750
2
500
1
250
0
0
2012
2013
SIM Cards
e-Gov. & Healthcare
Others
2014
2015
2016
Payment & Banking
Condit. Access, Pay TV
Source: IMS Research (an IHS company): “Smart Card and IC Database
– World – 1Q13 Update”, June 2013. Microcontroller only.
2013-07-30
CAGR(12-16) = 14.5%
2012
2013
2014
2015
e-National ID
e-Passport
e-Healthcare Card
e-Other
2016
Source: IMS Research (an IHS company): “Electronic Government &
Healthcare ID Cards Market – World – 2012”, December 2012.
Microcontroller and memory.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 14
Table of Contents
Infineon at a Glance
Market Update
Results and Outlook
Return to Year-on-Year-Growth and
> 10% Segment Result Margin
Revenue and Segment Result
[EUR m]
FY 2012 revenue split
by product category
+3%
990
1.022
982
918
851
13%
5%
12%
7%
11%
Power
126
116
Q3
FY12
Q4
44
68
117
Q1
FY13
Q2
Q3
Revenue
2013-07-30
Segment Result
eControl
others
Segment Result Margin
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 16
Record Sales in ATV; IPC Returned to More
Normal Levels; Nice Margin Recovery in PMM
Courtesy: Daimler AG
ATV
IPC
[EUR m]
PMM
[EUR m]
CCS
[EUR m]
[EUR m]
+7%
428 416
13% 11%
424
459
377
5%
+14%
-2%
9% 11%
177 181
138 144
266
233 247 222 227
-2%
14% 15% 10% 12% 17%
122 126 108 108 119
173
15% 14% -4% -2% 8%
54
47
20
37 52
Q3 Q4 Q1 Q2
FY12
FY13
Q3
Revenue
2013-07-30
26
26
-5
-3
Q3 Q4 Q1 Q2
FY12
FY13
13
Q3
Segment Result
27
46
Q3 Q4 Q1 Q2
FY12
FY13
Q3
33
37
22
15% 14% 9%
7%
8%
18
7
10
18
10
Q3 Q4 Q1 Q2
FY12
FY13
Q3
Segment Result Margin
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 17
Automotive Semiconductor Market 2012:
Infineon #1 in Fastest-Growing Region APAC
World
($23.88bn)
1.
2.
3.
4.
5.
6.
7.
Renesas
Infineon
STMicro
Freescale
NXP
Bosch
TI
Europe
($8.04bn)
14.2%
9.1%
7.9%
7.0%
6.3%
5.7%
5.7%
North America
($4.49bn)
1.
2.
3.
4.
5.
6.
7.
Infineon
Bosch
STMicro
TI
Renesas
NXP
Freescale
Japan
($5.65bn)
APAC & others*
($5.70bn)
1.
2.
3.
4.
5.
6.
7.
13.0%
11.3%
10.0%
8.4%
7.8%
7.6%
7.4%
China
($2.82bn)
Infineon
STMicro
Renesas
NXP
Freescale
TI
Toshiba
9.4%
9.4%
9.0%
8.4%
7.4%
3.1%
3.0%
Korea
($1.81bn)
1.Freescale
12.5%
1.Renesas
33.3%
1.NXP
10.5%
1.Infineon 13.7%
2.Infineon
8.4%
2.Toshiba
13.0%
2.STMicro
10.0%
2.STMicro
6.8%
3.Renesas
8.2%
3.Fujitsu
4.5%
3.Renesas
9.5%
3.Freescale
6.7%
4.STMicro
8.1%
4.Sanken
3.9%
4.Freescale
9.2%
4.NXP
5.6%
5.TI
7.4%
5.Infineon
3.7%
5.Infineon
7.0%
5.Bosch
3.9%
Source: Strategy Analytics, April 2013. * According to Strategy Analytics this ranking also includes Russia, India, South America and further countries.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 18
Innovation Excellence and CSR is an Integral
Part of Infineon’s Corporate Strategy
“Sustainability Award”
by RobecoSAM
“Innovation Award”
by Continental
“Supplier Sustainability
Award” by Bombardier
Transportation
20 June 2013:
Infineon received the
“Sustainability Award” for
its progress in sustainability management.
Infineon is among the
15% most sustainable
companies worldwide.
26 June 2013:
The jury was particularly
impressed by the 3D
image sensor which allows
a complete new human
machine interface by the
usage of touchless gesture
recognition .
08 July 2013:
The jury recognized
Infineon’s high level of
product responsibility as
well as the positive
environmental effects its
assortment has meant for
sustainable mobility.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 19
DrBlade: Design-Wins for DC/DC Voltage
Regulation at Major Server Customers
DrBlade: the revolutionary chip-embedding technology
Design-wins for DrBlade, in combination with our digital power management ICs.
Based on Infineon’s outstanding manufacturing technology: thin wafer, galvanic
electroplating, laser-drilling, die-attach by diffusion-soldering.
Top view
Bottom view
computer tomography
©Infineon Technologies AG
©Infineon Technologies AG
©Infineon Technologies AG
Driver IC
computer tomography
Target applications: DC/DC voltage regulation for computing and telecom.
Contains driver IC and OptiMOS™ MOSFET half-bridge.
Small package size, low profile (0.6 mm), high power density, RoHS1) 2016 compliant.
1) RoHS = Restriction of Hazardous Substances.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 20
Guidance for Q4 FY13 and FY 2013
Outlook Q4 FY13
Outlook FY 2013
(compared to FY 2012)
Revenue
About EUR 1,050m.
Decline of about 1.5%.
Segment
Result
Margin
About 13%.
Just under 10%.
Investments in FY 2013
Just under EUR 400m.
D&A in FY 2013
About EUR 470m.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 21
Opex-to-Sales-Ratio
S and G&A
R&D
[EUR m]
139
140
120
121
119
108
115
116
123
123
122
15%
102
14%
100
80
13%
60
12%
40
11%
20
0
10%
Q3
FY12
Q4
Q1
FY13
Q2
Q3
General & Administration
2013-07-30
Q3
FY12
Selling
Q4
R&D
Copyright © Infineon Technologies AG 2013. All rights reserved.
Q1
FY13
Q2
Q3
% of sales
Page 23
DOI, DSO And DPO In Line With Our
Targets
Working capital*
Inventories
[EUR m]
[EUR m]
Q3 FY12
0
Q4
Q1 FY13
Q2
Q3
600
-17
-25
400
-117
-200
546
567
585
573
589
-333
-353
60
40
20
0
0
Q3 FY12
-600
Q4
Q1 FY13
Q2
Inventories
Trade accounts receivable
600
504
474
400
385
474
509
100
600
60
400
20
0
0
Q4
Q1 FY13
Q2
Trade accounts receivable
DOI*
Q3
DSO*
[days]
[EUR m]
80
40
200
Q3 FY12
Q3
Trade payables
[days]
[EUR m]
100
80
200
-400
[days]
100
615
516
430
454
455
80
60
40
200
20
0
0
Q3 FY12
Q4
Q1 FY13
Trade payables
Q2
Q3
DPO*
* For definition please see page 30.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 24
Investments in FY 2013 to be Reduced
Significantly
Investments*
D&A
[EUR m]
887
890
453
428
just under 400
336
325
~ 470
364
115
71
65
88
115
FY
2009
FY
2010
FY
2011
FY
2012
Q1
116
116
FY
2013
Q2
FY
2009
Q3
Full Year
FY
2010
FY
2011
FY
2012
FY
2013
Guidance
* For definition please see page 30.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 25
Gross Cash and Net Cash Increased Due
to Positive Free Cash Flow
Liquidity Development
Q4
Q1
FY13
Q2
1832
2137
2016
1832
200
207
1768
1768
2081
105*
104
211
1940
1940
2235
Net Cash
102
195
1907
1907
2150
Equity-linked
1705
100
103
140
Q3
FY12
Debt
1705
Gross Cash
[EUR m]
Q3
FY12
* Consists of convertible bond (nominal value EUR 113m; book value EUR 105m).
Increase in gross cash due to positive Free Cash Flow of EUR 135m reduced by negative
Cash flow from discontinued operations of EUR 6m and pay back of EUR 6m debt. Net
cash effect correspondingly higher.
Convertible bond due in May 2014.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 26
Total Gross Capital Returns of EUR 687m
Between FY 2011 and Q3 FY13
Total gross capital returns history
[EUR m]
350
308
300
109
250
212
200
26
150
130
100
50
109
80
27
0
Q1
FY11
Q2
26
20
16
50
50
Q3
Q4
Q1
FY12
CB 2014
2013-07-30
167
129
130
Q2
173
0
12
38
Q3
Q4
Q1
FY13
share buyback (via put options)
Copyright © Infineon Technologies AG 2013. All rights reserved.
20
62
0
Q2
129
Q3
38
FY11 FY12 FY13
dividends
Page 27
Target:
‘RoCE Above WACC’ Over the Cycle
RoCE* history
100%
80%
60%
40%
20%
0%
-20%
FY11: 62%
WACC: low teens %
64%
FY10: 30%
-9%
46%
27% 31%
Q1
FY10
Q2
Q3
Q4
82%
Q1
FY11
59%
Q2
53%
Q3
FY12: 22%
Q4
27% 25% 20% 27%
5%
7%
16%
Q1
FY12
Q1
FY13
Q2
Q3
Q2
Q3
Q4
Capital Employed* history
2,500 [EUR m]
1,760 1,889
2,000 1,496
1,629
1,456 1,499
1,273 1,397 1,196 1,347 1,239
1,500
2,035
2,239 2,274 2,216
1,000
500
0
Q1
FY10
Q2
Q3
Q4
Q1
FY11
Q2
Q3
Q4
Q1
FY12
Q2
Q3
Q4
Q1
FY13
Q2
Q3
* For definition please see page 30.
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 28
Infineon is a Long-Standing Member of
Europe’s Leading Sustainability Indices
FTSE4Good Index
Dow Jones Sustainability Index
Infineon is member of the Dow Jones
Sustainability Index since 2010.
Infineon is currently Europe’s one and only
semiconductor company member in the Dow
Jones Sustainability Indexes.
Infineon is semiconductor’s sector leader
worldwide in two environmental criteria:
Product stewardship,
Operational eco-efficiency.
February 2013: According to RobecoSAM, Infineon
is among the top 15% most sustainable
companies worldwide and therefore listed in the
Sustainable Yearbook for the third consecutive
year.
2013-07-30
Infineon was added to the
FTSE4Good Index Series on
24 September 2001. It was
confirmed by the FTSE4Good
Policy Committee in its March
2013 review that Infineon
continues to be a member of
the FTSE4Good Index.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 29
Notes
Investments =
'Purchase of property, plant and equipment‘
+ 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses
Capital Employed =
'Total assets’
– 'Cash and cash equivalents’
– 'Financial investments’
– 'Assets classified as held for sale’
– ('Total Current liabilities’
– 'Short-term debt and current maturities of long-term debt’
– 'Liabilities classified as held for sale‘)
Please note:
All positions in ’ ’ refer to the
respective accounting position and
therefore should be applied with
the positive or negative sign used
in the relevant accounting table.
RoCE =
NOPAT / Capital Employed =
('Income from continuing operations’
– 'financial income’
– 'financial expense‘)
/ Capital Employed
Working Capital =
('Total current assets‘
– 'Cash and cash equivalents‘
– ‘Financial investment‘
– 'Assets classified as held for sale')
– ('Total current liabilities‘
– 'Short term debt and current maturities of long-term debt‘
– 'Liabilities classified as held for sale')
DOI (inventory days; quarter-to-date) =
('Net Inventories' / 'Cost of goods sold') * 90
DSO (days sales outstanding; quarter-to-date) =
('Trade accounts receivable (net)' / 'revenue') * 90
DPO (days payables outstanding; quarter-to-date) =
('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 30
Financial Calendar
Date
Location
Event
28 Aug 2013
Frankfurt
Commerzbank Sector Conference Week
03 – 04 Sep 2013
London
Deutsche Bank European TMT Conference
Conference Call by Jochen Hanebeck
Division President, Automotive
18 Sep 2013
24 Sep 2013
Munich
Berenberg Bank and Goldman Sachs German Corporate
Conference
25 Sep 2013
Munich
Baader Investment Conference
12 Nov 2013*
Q4 FY13 and FY 2013 Results
18 – 19 Nov 2013
London
Company Roadshow
including presentation by Andreas Urschitz
Division President, Power Management & Multimarket
20 – 21 Nov 2013
Barcelona
Morgan Stanley TMT Conference
03 – 04 Dec 2013
Scottsdale, AZ
Credit Suisse Technology Conference
* provisional
2013-07-30
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 31
Institutional Investor Relations Contact
Ulrich Pelzer
Corporate Vice President
Finance, Treasury & Investor Relations
+49 89 234-26153
[email protected]
Joachim Binder
Senior Director
Investor Relations
+49 89 234-25649
[email protected]
Holger Schmidt
Manager
Investor Relations
+49 89 234-22332
[email protected]
Bernard Wang
31 July 2012
2013-07-30
Manager
+49 89 234-22669
Investor Relations
[email protected]
Copyright © Infineon Technologies 2012. All rights reserved.
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 32
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