Infineon Communication On The Move

Transcription

1 Infineon Communication On The Move Slide -1- InfineonLehman Brothers 3W Conference June 1, 2005 Kin Wah Loh Member of the Management Board Infineon Technologies AG Prof. Hermann Eul Group VP and General Manager Communication Business Group

2 Disclaimer Please note that while you are listening to or reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those epressed or implied by such statements. Such risks and uncertainties include, but are not limited to the Risk Factors noted in the Company's Earnings Releases and the Company's filings with the Securities and Echange Commission. Slide -2-

3 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -3-

4 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -4-

5 With Major Steps Back On Track Major actions taken since management changes: Slide -5-! New organizational set-up to strengthen entrepreneurship and focus on profitable growth opportunities! With restructuring measures, loss making units or products to be eliminated: e.g. Fiber Optics and Optical Networking mostly sold; shut down of base station controller activity; in addition, sites in EU and U.S. to be restructured! Intensify customer engagement in order to further improve relations with top OEMs and ODMs worldwide! Increase engineering efficiency in order to re-focus R&D resources for rapid deployment to customer projects! Net steps: consolidation of design centers and further shift of both technology and manpower to lower cost levels

6 Digitalization Allows Technologies to Co-eist & Compete TV Voice Data Video FUTURE All services to share a common IP network Telephone Network IP Network Broadcast Network Co-eistence of technologies IP IP IP TV TV Wireline / Wireless, BT, DECT, WLAN Wireline, DSL, Ethernet Wireless Cellular, Broadcasting Slide -6- Bandwith Range depending on user requirements: Cost Fleibility Reliability Power consumption

7 Strategic Re-Positioning of Infineon Communication Broadband Wireline / Wireless " Providing end-to-end wireline and wireless broadband solutions " Eploit growth opportunities thru VoIP et al. and leverage know-how from wireless cellular business RF Connectivity " Etending the industry leadership in RF technology through building upon strength and long-time eperience in RF transceivers (RF Engine, Short Range, RF Power, RF Custom) Mobile Phone " Fast follower, catching up in 3G and multimedia " Broaden the customer base " Addressing solutions for the low-cost entry phone segment To develop, manufacture and market leading end-to-end semiconductor products and solutions for cellular, wireless and wired communications. Slide -7- To drive the convergence of voice, video, and data communications applications through the integration of wired and wireless networks, enabling enriched personal communication.

8 Infineon to Drive End-to-end Communication Solutions Broadband Wireline / Wireless RF Connectivity Mobile Phone Slide -8- " Complete DSL CO/CPE portfolio " One chipset family for all VoIP applications " Reference designs for ADSL2+ router, VoIP router and IP phones " Chipsets for T/E carrier, analog line cards and ISDN " RF transceivers and BAW filters for 2G and 3G mobile phones and wireless data modules " Power amplifiers and RF ASIC for 2G and 3G base stations " Bluetooth EDR, A-GPS and WLAN connectivity solutions " DECT/WDCT chipset " Analog and digital terrestrial tuner systems " Reference designs for GSM/GPRS, EDGE and UMTS standards " RF/Baseband singlechip and multimedia baseband SoC " Protocol stack and application framework software

9 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -9-

10 The Market Leader in RF Transceiver Total Mobile Phone Market 2000 to 2004 [units m] CY00 CY01 CY02 CY03 CY04 IFX RF transceiver IFX baseband RF BB Infineon's Market Share 21% 5% 10% 21% 7% 7% 11% 11% 26% 10% Slide -10- Source: Mobile phones: Gartner, January 2005 RF transceiver and baseband: Infineon, January 2005

11 Leading RF Transceivers' Transition to CMOS BiCMOS " Best cost efficiency " Highest production fleibility utilizing CMOS fabs CMOS Now available: UMTS SMARTi U SMARTi 3G 2002 Q GSM/EDGE SMARTi DC SMARTi PM Q rd Generation: Slide -11- GSM/GPRS SMARTi DC 2001 SMARTi SD (All dates refer to first customer samples available) SMARTi SD SMARTi SD3 Q t

12 CMOS RF Enabling Path Towards Highest Integration: Monolithic Integration of Baseband and RF Transceiver 2004 RF CMOS transceiver " In volume production " 130nm CMOS " Single-chip digital RF solution Baseband: " In volume production " 130nm CMOS " Integrates: - Digital baseband - Mied signal -SRAM Customer benefits: " Lower system cost " Smaller PCB area " Less compleity 2005 Single-chip: RF and baseband Slide -12-

13 Bundle Infineon's Strengths in RF Technologies RF Engines " Grow and epand market dominance in transceivers " Etend offering to complete RF engines / modules " Best-in-class cost position through RF CMOS Short-range Wireless " Leading position in DECT/WDCT " Sampling Bluetooth 2.0 single-chip with EDR functionality " Sampling world's first A-GPS RF/Baseband single-chip solution Highly skilled RF design engineers and leading-edge RF manufacturing technology Wireless Infrastructure " No. 2 in power amplifiers for cellular base stations " State-of-the-art RF power LDMOS technology " Thermally enhanced and low-cost packaging Tuner Systems " Leader in the fast growing digital terrestrial tuner market " Etend offering to a complete DVB-H/T-DMB front-end solution " Committed to the analog tuner market Slide -13-

14 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -14-

15 Low-cost Solutions For Strong Growing Markets Cell Market Segments Infineon Solutions 100% 80% 60% 40% 20% Mid Entry Ultra-high High Cost efficient UMTS/EDGE! CMOS RF single-chip transceiver! 2G/3G multimedia baseband platform! 2G/3G dual mode protocol stack Cost efficient GSM/EDGE! CMOS RF single-chip transceiver! 2.75G multimedia baseband! 2.75G protocol stack Slide -15- Ultra-low 0% Source: Strategy Analytics, 03/2005 Ultra low-cost phones! CMOS PA! CMOS RF/baseband single-chip! Memory optimised protocol stack

16 1st Single-chip RF/Baseband to Ramp in 2005 Already " Introduction at 3GSM in Feb. with true life working phones " Volume ramp-up at year-end Integrates: " RF CMOS transceiver SMARTi SD2 " Baseband E-GOLDlite Advantage over 2-chip solution: " 30% less board space " 30% lower bill of material Slide -16- Supports: " Up to GPRS class 12 " 1.3 Megapiel Camera " Dual color display " Polyphonic ringer " MP3 playback

17 Generic Scalable Roadmap for Multimedia Solutions Application Coprocessor EDGE/WCDMA Dual Mode 3G Phys. Layer WCDMA Application Coprocessor EDGE/WCDMA Dual Mode 3G Phys. Layer WCDMA Application Coprocessor EDGE/WCDMA/HSDPA Dual Mode 3G Phys. Layer HSDPA S-GOLD2 ARM9 208Mhz EDGE 2/5 MPl camera IF QVGA display IF Video streaming QCIF display S-GOLD3 ARM9 312MHz EDGE 2/5 MPl camera CIF display Video telephony S-GOLD5 ARM11 >4 MPl camera HVGA Display Video 30frm CIF TV out Ramless Display 3 D Grafic BT WiFi A- GPS BT WiFi A- GPS BT WiFi A- GPS Slide -17- Key Advantage Scalability betw. 2G, 3G and HSDPA based on the same core platform

18 Leading Position With Low-cost UMTS/EDGE Reference Design Modem Configuration " Based on IFX UMTS/EDGE platform: - Multimedia baseband - 3G co-processor - Power management - GSM/EDGE and UMTS RF transceivers - Dual-mode protocol stack " Low component count and small form factor Multimedia Features Slide -18- " 2 Megapiel digital still camera " Video playback / recording " Video streaming w/o companion " MPEG4, H.263, MP3, AAC++ " Voice recording / recognition " Polyphonic ringer (40 voices)

19 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -19-

20 Innovations Lead to Strong Growth in Broadband Access ADSL2+ for Central Office 2004: Significant market share increase ADSL lines [M] Q4 04 Q1 04 Q2 04 Q3 04 Q4 16% 14% 12% 10% 8% 6% 4% 2% 0% Market share [%] ADSL2+ for Cust. Prem. Equipment 2004: Successful market entry for ADSL2+ deployments based on ADMtek acquisition High growth in T/E business 2003: IFX +29.7%; market +5.4% 2004: IFX enjoyed further growth due to 3G infrastructure build-up IFX Market Share ADSL2+ customer base includes: " ECI Telecom " Siemens " ZTE Leading solutions for VoIP - VINETIC for VoIP CPE and line cards - INCA IP as VoIP telephone solution Slide -20- Sources: (ADSL) Dell'Oro 2005, IFX 2005; (T/E) Gartner 07/2004

21 The Most Complete Product Portfolio VoIP SHDSL ADSL2+ VDSL2 ATM 2 Ethernet VINETIC SOCRATES GEMINAX VINAX-CO CONVERGATE Voice Voice over IP SHDSL (with IP) () DSL&NP NP VoIP WLAN ADSL (with IP) () VDSL2 (with IP) Voice & DSP & ATM Voice & DSL & IP () AMAZON VINAX CPE VINETIC WildPass DSL Modem/Router wirel. DSL Gateway VoIP Router VoIP DSL Gateway Slide -21- wirel. DSL/VoIP Gateway

22 Intelligent Chipset Family For All Voices analog VoIP Applications VoIP Line Card/ IVD Packet Voice Infineon Solutions VINETIC VoIP VoIP Gateway Packet Voice SLICs analog IP PBX DSL, Fiber, Ethernet,... VINETIC VoIP analog IP phone analog digital ADM 5120 Controller AMAZON ADSL CPE Inca_IP VoIP SoC Slide -22-

23 Infineon First on VDSL2 Success Factors " Early availability with VINAX -the FIRST fully standard compliant VDSL2 chip solution - Full 30 MHz VDSL2 band width - ADSL2/2+ backwards compatible - Up to 20dBm transmit power - Long-reach VDSL via echo cancellation " Eperience - 4 million+ VDSL1 lines - 16% market share in ADSL CO solutions " Complete Solution - Etensive line-card and CPE solutions portfolio including: DSL, Comm. Processors, VoIP, WLAN, switch/phys and more Slide -23-

24 Our Agenda: Wireless and Wireline, Worldwide! Infineon Communication RF Connectivity Mobile Phones Broadband Access The Bottom Line Slide -24-

25 Epecting Flat to Down Revs and Improving EBIT for F3Q Revenue Share Q2 FY05 Revenues and EBIT Margin [EUR m] Slide % 3% 4% 0% Q1 FY04 Outlook for June-quarter / Q3 FY05: 3% 1% -16% -5% Q2 Q3 Q4 Q1 FY05-30% -43% Q2 " Revenues are epected to remain flat or to decrease slightly compared to Q2 FY05, mainly due to continued weak demand from some customers for mobile phone components. " EBIT is anticipated to remain significantly negative but to improve compared to Q2 FY05, as we epect our recently initiated efficiency programs to start impacting financial results positively. (1) Ecluding acquisition related epenses and net charges resulting primarily from reorganization measures. (1)

26 Infineon Communication On The Move Infineon COM made 1 st steps back on track Major RF engineering strengths combined With RF leadership into 1-chip, CMOS and 3G markets Increasing share in both wireline access segments Net design-wins and steps to be announced Slide -26-