First Quarter FY 2013 Quarterly Update. Infineon Technologies AG Investor Relations

Transcription

1 First Quarter FY 213 Quarterly Update Infineon Technologies AG Investor Relations

2 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. Page 2

3 Revenue Split by Division Q1 FY 213 revenue: EUR 851m ATV 377m CCS 18m IPC 138m PMM 222m OOS+C&E * 6m * Other Operating Segments; Corporate and Eliminations. Page 3

4 Low Revenue And Segment Result Due To Weak Markets [EUR m] Q1 FY12 Q4 FY12 Q1 FY13 Revenue Segment Result SR Margin 14.9% 11.8% 5.2% [EUR m] Net Income * Investment Q4 FY12 Revenue 44 Q1 FY13 Segment Result FCF from cont. operations Gross Cash 2,337 2,235 2,81 Net Cash 2,68 1,94 1,768 * Net Income includes income from discontinued operations, net of income taxes in Q1 FY12 EUR -8m, in Q4 FY12 EUR 9m and in Q1 FY13 EUR -7m. Net Income in Q4 FY12 includes income tax benefits of EUR 52m. Page 4

5 Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS Distributors 31 Jan 213 Copyright Infineon Technologies AG 212. All rights reserved. Page 5

6 Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 12% Infineon 25% Infineon 1% Mitsubishi 8% NXP 24% STMicro 9% Toshiba 7% Samsung 21% Freescale 8% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 1% Calendar year 211. Source: Strategy Analytics, April 212. Calendar year 211. Source: IMS Research (an IHS company), July 212. Calendar year 211. Source: IMS Research (an IHS company), August 212. Page 6

7 Table of Contents Infineon at a Glance Market Update Results and Outlook Page 7

8 Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy [units m] CAGR (12-16) = 4.5% ,3 6,6 9,1 7,9 1,8 11, ,9 6, 6,4 8,3 9,4 8,3 14, 12,8 13,4 17,1 17,6 18,6 2,3 22, ,3 8,6 8, 7,5 8,1 8,1 8,2 8,2 15,6 16,3 17, 14,9 24,9 26,6 28,1 29,2 11,9 13,1 15,4 15,9 16,2 17, 17,4 17,6 17,7 19, 2,2 19,2 18,6 19,4 2,4 21,3 22,1 22, Europe North America China APAC ex China Japan ROW Source: IHS, January Global car production (cars 6t) +1.6% Page 8

9 Semiconductor Value Per Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] Brazil China S. Korea N. America Europe Japan CAGR +3.4% CAGR +5.% CAGR +2.8% CAGR +2.3% CAGR +3.5% CAGR +2.9% [USD] Semiconductor market by segment [USD bn] World Powertrain Safety* Body** Infotainment % CAGR +8.6% CAGR +8.6% CAGR +6.% CAGR +7.4% Source: Strategy Analytics (SA): Automotive Semiconductor Demand Forecast , January 213; including semiconductor sensors. * Safety = Safety + Chassis according to SA definition. ** Body = Body + Security according to SA definition. Page 9

10 Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation Industrial motor controls Market description [USD bn] 4 CAGR (11-15) = 11.5% Others Food & beverage, medical & scientific, semiconductor machinery, printing sector. Comparatively low IGBT content. 3 2 Servo Drives High precision motors for general motion control and CNC products. 6/12 V IGBT devices. 1 Medium Voltage Drives Heavy industries (oil & gas, metals, power generation). High-power drives (up to 1 MW). 1.7/3.3/6.5 kv IGBT modules AC Drives Med. Voltage Drives Servo Drives Others AC Drives Fans, pumps, material handling, packaging. Mainly 6/12 V IGBT devices used. Source: IMS Research (an IHS company): Industrial Motor Controls Sourcebook 212 Edition, March Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 1

11 Wind: Drop in the US Due to Uncertainties in PTC; Solar: Growth WW Except of EU Wind power market PV inverter market [GW] [GW] CAGR (12-16) = -2.9% CAGR (12-16) = 17.4% Europe LatAm, Africa, Mid East APAC North America EMEA APAC Japan America Source: IHS: Global Wind Energy Market Forecast, June Source: IMS Reserch (an IHS company): The World Market for Photovoltaic Inverters 212, July Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 11

12 Mobile Devices are High-Growth Markets for Infineon s RPD *, Esp. Si-MEMS-Micros Smartphones Tablets ** [units m] 12 CAGR (12-16) = 14.5% [units m] 4 CAGR (12-16) = 31.3% Source: Strategy Analytics: Smartphone Sales Forecast by Type: Phablets and Superphones, October 212. * RPD = Business unit RF & Protection Devices ; part of PMM. The chart was created by Infineon based on Gartner research. Source: Gartner: Forecast: Devices by Operating System and User Type, Worldwide, , 4Q12 Update, December 212. ** Including Utility Tablets, Premium Tablets and Basic Tablets. Page 12

13 Double-digit Growth in Payment and Government ID; SIM Card Flat Smart card ICs Government ID & healthcare [USD bn] [USD m] 4 CAGR (12-16) = 9.5% 1 CAGR (12-16) = 14.5% Jan SIM Cards e-gov & Healthcare Others Payment & Banking Condit. Access, Pay TV Source: IMS Research (an IHS company): Smart Cards and Smart Card ICs World 212, August 212. µcontroller only e-national ID e-healthcare Card Copyright Infineon Technologies AG 213. All rights reserved. e-passport e-other Source: IMS Research (an IHS company): Electronic Government & Healthcare ID Cards Market World 212, December 212. µcontroller and memory. Page 13

14 Table of Contents Infineon at a Glance Market Update Results and Outlook Page 14

15 Lower Revenue And Segment Result Due To Market Weakness Revenue and Segment Result [EUR m] -1% FY 212 revenue split by product category % 15% 13% 12% 5% Q1 FY12 44 Q2 Q3 Q4 Q1 FY13 Power econtrol others Revenue Segment Result Segment Result margin Page 15

16 Stable Revenues in PMM, Encouraging Development in CCS Courtesy: Hyundai ATV IPC PMM CCS [EUR m] -4% [EUR m] [EUR m] [EUR m] % % % 15% 13% 11% 5% % 14% 14% 15% 1% 2% 16% 15% 14% -4% % % 15% 14% 6% 9% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q1 FY12 Q2 Q3 Q4 Q1 FY13 Revenue Segment Result Segment Result margin Page 16

17 Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 211 Worldwide Automotive Semiconductor Ranking for Renesas 2. Infineon 13.8% 9.8% -.3%-pt +1.%-pt 3. STM 4. Freescale 8.7% 7.9% +.4%-pt -.5%-pt 5. NXP 6.4% -.4%-pt 6. Bosch 5.8% +.2%-pt 7. TI (incl. NSM) 4.7% %-pt 3.9% 5.7% 8.2% 9.8% Infineon strengthened world s #2 postion; rose from #8 to #4 position in Japan Europe APAC & others* North America Japan 1. Infineon 14.7% 2. STM 11.3% 3. Bosch 9.4% 4. Freescale 8.7% 5. NXP 8.2% 6. Renesas 8.% 7. TI 6.8% 8. ON Semi 3.% 1. STM 1.1% 2. Infineon 9.% 3. Renesas 7.5% 4. Freescale 7.4% 5. NXP 7.3% 6. Bosch 5.7% 7. Toshiba 2.9% 8. TI 2.6% 1. Freescale 13.8% 2. Infineon 8.5% 3. STM 8.% 4. Renesas 7.5% 5. NXP 6.7% 6. TI 6.% 7. Bosch 3.7% 8. ON 3.3% 1. Renesas 35.1% 2. Toshiba 13.% 3. Fujitsu 3.9% 4. Infineon 3.8% 5. Rohm 3.6% 6. STM 3.6% 7. ON 3.1% 8. Sanken 2.9% Source: Strategy Analytics, April 212 * According to Strategy Analytics this ranking also includes Russia, South America, Australia and further countries. Page 17

18 XMC1 Completes Infineon s Portfolio of Industrial Microcontrollers performance / features / memory 32-bit TriCore AUDO NG AUDO F AUDO S AUDO MAX Industrial 32-bit XMC Family XMC4 Automotive 32-bit TriCore multi-core AURIX TC2xxx TriCore 16-bit C166 C16x XC16x XE16x XC2xxx ARM Cortex -M4 8-bit 851 compliant C5xx XC8 XC8 HOT XMC1 ARM Cortex -M Automotive production Industrial development 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 18

19 New Key Application Fields For XMC1: Focus on Low-end Industrial Control Sensors, actuators LED lighting Power conversion Motor control general purpose applications color control brightness control connectivity power supplies chargers induction cookers AC induction motors BLDC motors PMSM motors 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 19

20 Guidance for Q2 FY13 and FY 213 Outlook Q2 FY13* (compared to Q1 FY13) Outlook FY 213* (compared to FY 212) Revenue Mid single digit percentage increase. Mid-to-high single digit percentage decline. Segment Result / Margin Segment Result slightly up in absolute terms. Segment Result Margin in the mid-to-high single digits. Investments in FY 213 About EUR 4m. D&A in FY 213 About EUR 47m. * This outlook is based on an assumed Euro/US Dollar exchange rate of 1.3. Page 2

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22 Sequential Decline in OpEx as Cost Reduction Measures Were Implemented S and G&A R&D [EUR m] % 14% 8 13% 6 12% % Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q1 FY12 Q2 Q3 Q4 Q1 FY13 General & Administration Selling R&D % of sales 1% Page 22

23 Working Capital Increased Mainly Due To Lower Payables Working capital * Inventories [EUR m] Q1 FY12 Q2 Q3 Q4 Q1 FY [EUR m] Q1 FY12 Q2 Q3 Q4 Q1 FY13 Inventories DOI* [days] [EUR m] Trade and other receivables Q1 FY12 Q2 Q3 Q4 Q1 FY13 Trade and other receivables DSO* [days] [EUR m] Trade and other payables Q1 FY12 Q2 Q3 Q4 Q1 FY13 Trade and other payables DPO* [days] * For definition please see page 29 in appendix. Page 23

24 Investments in FY 213 to Be Reduced Significantly Investments * D&A [EUR m] ~ 47 ~ FY 29 FY 21 FY 211 FY 212 FY 213 FY 29 FY 21 FY 211 FY 212 FY 213 Q1 Full Year Guidance * For definition please see page 29 in appendix. Page 24

25 Gross Cash and Net Cash Position Lower But Still Comfortable Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash * Q1 FY12 Q2 Q3 Q4 Q1 FY13 * Consists of convertible bond (nominal value EUR 113m; book value EUR 12m). Gross cash decreased due to negative Free Cash Flow and buyback of shares via put options. Net cash impact correspondingly lower. Buyback of 6m shares for EUR 38m. In addition put options for 3m shares lapsed with EUR 1m premium received. Net increase in short and long-term debt of EUR 18m. Page 25

26 Average Price Per Underlying Share Below Volume Weighted Average Price (VWAP) End of Capital Return Program on 31 March 213. Total share buyback history via convertible bond and put options [shares m] [EUR] Q1 FY11 Q2 Q3 Q4 Q1 FY Q2 Q3 Q4 Q1 FY13 # of shares underlying the convertible [lhs] # of exercised options [lhs] cum. avg. price incl. opt. premium [rhs] cum. VWAP [rhs] Page 26

27 Total Gross Capital Returns of EUR 558m Between 211 And Q1 FY13 [EUR m] Total gross capital returns history Q1 FY Q2 Q3 Q4 Q1 FY12 38 Q2 Q3 Q4 Q1 FY CB 214 share buyback (via put options) dividends FY11 FY12 FY13 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 27

28 Development of Capital Employed and RoCE RoCE* history 1% 8% 6% 4% 2% % -2% -9% Q1 FY1 FY1: 3% 27% 31% 64% 46% Q2 Q3 Q4 Q1 FY11 FY11: 62% 59% 53% 82% Q2 Q3 Q4 Q1 FY12 FY12: 22% 27% 25% 2% WACC: low teens % 27% 5% Q2 Q3 Q4 Q1 FY13 Capital Employed* history 2,5 2, 1,5 1, 5 [EUR m] 2,35 2,239 1,889 1,76 1,629 1,496 1,456 1,499 1,273 1,397 1,347 1,196 1,239 Q1 FY1 Q2 Q3 Q4 Q1 FY11 Q2 Q3 Q4 Q1 FY12 Q2 Q3 Q4 Q1 FY13 * For definition please see page 29 in appendix. 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 28

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 ] 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') * 9 DSO (days sales outstanding; quarter-to-date) = ('Trade accounts receivables (net)' / 'revenue') * 9 DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 9 Page 29

30 Worldwide Front-end Manufacturing Sites Regensburg Employees: 1,81 Temps: 22 Capacity: 48k WSPM Technology: >2nm Complexity: 16 mask layers Products: Power Dresden Employees: 1,767 Temps: 168 Capacity: 45k WSPM Technology: >9nm Complexity: 3 mask layers Products: CMOS OOS 4% CCS 1% IPC 1% PMM 19% ATV 74% OOS 1% CCS 47% ATV 47% PMM 5% Villach Employees: 1,669 Temps: 331 Capacity: 12k WSPM Technology: >2nm Complexity: 11 mask layers Products: Power Kulim Employees: 1161 Temps: 172 Capacity: 85k WSPM Technology: >2nm Complexity: 12 mask layers Products: Power, CMOS IPC 24% OOS 2% PMM 24% ATV 5% Note : As of September 212. ATV 38% PMM 35% CCS 9% IPC 18% WSPM = Wafer Starts Per Month (2mm equivalent), typical technology. 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. Page 3

31 Worldwide Back-end Manufacturing Sites Morgan Hill, USA Employees: 121 Competence center RF power Warstein, Germany Employees: 852 High power, R&D Cegléd, Hungary Employees: 531 High power Wuxi, China Regensburg, Germany Employees: 779 Sensors, chip card, power, wafer level, R&D Employees: 1,666 Chip card, discretes Malacca, Malaysia Singapore Batam, Indonesia Employees: 6,828 Power, discretes, sensors, logic, R&D Employees: 1,23 Tester pool, R&D Employees: 2,283 Power leadframe Note : As of September 212. Page 31

32 Investments Driven by Capacity Additions and Maintenance Breakdown of total investments in FY12 of EUR 89m Capacity Innovation Quality Maintenance / facility Frontend Backend Intangible assets, capitalized R&D Others Page 32

33 Infineon Has a Long Track Record in Responsibility and Sustainability Dow Jones Sustainability Index Certifications Infineon is member of the Dow Jones Sustainability Index since 21. 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. 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. Based on our efforts for resources management, safety and health standards, Infineon received the EN ISO 141, OHSAS 181 and ISO 51* multi-site certification. 31 Jan 213 Copyright Infineon Technologies AG 213. All rights reserved. * ISO 51 in EU sites. Page 33

34 Financial Calendar Date Location Event 28 Feb 213 Munich Annual General Meeting Mar 213 London UBS European Technology Conference 2 May 213* Q2 FY13 Results 3 Jul 213* Q3 FY13 Results 28 Aug 213 Frankfurt Commerzbank Sector Conference Week 3 Sep 213 London Deutsche Bank European TMT Conference 25 Sep 213 Munich Baader Investment Conference 12 Nov 213* Q4 FY13 and FY 213 Results Nov 213 London Company Roadshow including presentation by Andreas Urschitz Division President, Power Management & Multimarket 2 22 Nov 213 Barcelona Morgan Stanley TMT Conference * provisional Page 34

35 Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations Joachim Binder Senior Director Investor Relations Holger Schmidt Manager Investor Relations Bernard Wang Manager Investor Relations 31 July 212 Copyright Infineon Technologies 212. All rights reserved. Page 35 Page 35