2006 Financial Year Roadshow

Transcription

1 2006 Financial Year Roadshow December 6th, 2006 Lehman Brothers Global Technology Conference San Francisco Dr. Wolfgang Ziebart President and CEO

2 Disclaimer Please note that while you are 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 expressed 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 Exchange Commission.

3 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

4 Q4 FY 06 Results: Revenues of EUR 2.29 bn and EBIT of EUR 30 m [EUR m] Infineon total [EUR m] COM 1,816 1,606 12% 211-7% ,606-15% ,731-2% -43 1,674-7% ,993 1% 28 1,972 2% 49 2,290 1% % -19 Q % -142 Q2-28% -88 Q3-14% -46 Q4-6% -21 Q1-9% -29 Q % -61 Q3-40% -120 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 [EUR m] AIM [EUR m] Qimonda 1, % 48 Q1 6% 36 Q2 4% 24 Q3 4% 27 Q4 8% 51 Q1 10% 73 Q2 8% 57 Q3 9% 64 Q4 26% 196 Q1 3% 17 Q2-19% -125 Q3 4% 34 Q4-17% -118 Q1 3% 30 Q2 10% 100 Q3 17% 204 Q4

5 Q1 F07 Outlook as per 16-Nov-06 IFX Logic Q1 F07 sales and EBIT excluding Qimonda and before charges to decrease. Main driver: impact of insolvency of BenQ Mobile s German subsidiary. COM Sales decline of around EUR 50 m q-o-q, loss of BenQ revenue. EBIT to decline given lower sales. AIM Revenues flat or down slightly q-o-q EBIT to decrease q-o-q. Reasons: seasonality, temporary weakness in US automotive demand, annual auto price breaks, Kulim ramp. C & E EBIT before charges to improve q-o-q. Charges of c. EUR 30 m expected relating to baseband re-org.

6 F2007 Outlook for Select Financial Parameters as per 16-Nov-06 COM EUR 40 m annualized cost savings to take effect likely from Jun Q 2007 onwards. Target: wireless break-even in Dec quarter Expect cost for Perlach fab closure to disappear Sep Q AIM Kulim fab to break-even mid-2007 calendar year. Chipcard to remain around break-even until new products introduced middle of 2007 calendar year. C & E Before charges, expect continued moderate q-o-q decline in C&E loss beyond Dec. quarter Total F2007 C&E expense before restructuring to be less than EUR -100 m.

7 Logic CapEx to equal D&A; solid Financing Outlook for CapEx and D&A [EUR m] [EUR m] Financial structure 1200 Logic- 800 business 400 for the past quarters CapEx D&A Q2 FY 06 Q3 FY 06 Q4 FY 06 Gross Cash Gross Debt Net Debt 269

8 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

9 Key Growth Drivers / Focus Areas Energy Efficiency (fuel / electricity) Improve fuel efficiency in cars Efficient power generation, transport, consumption Higher efficiency in electrical drives Mobility & Connectivity Mobile phones Broadband access Wireless connectivity Security & Safety Protection and privacy of personal and company data Secure e-commerce and identification Automotive safety

10 COM Growth Drivers 1500 Mobile Phone Units by air-interface Mobility Units (m) Others GSM/GPRS EDGE WCDMA / EDGE HSDPA / WCDMA / EDGE Source: Gartner 2006 Connectivity Units (m) Customer Premises Equipment Source: Infonetics Research 2006

11 AIM Growth Drivers Different governmental requirements: Energy Efficiency Security & Safety Europe: Euro 5 norm coming 2009 USA: Energy Star, July 2007, will require PC s to be 65% more power efficient than current models. Japan: already highest regulatory standards Units (m) % Government, Health 1) Source: 1) EuroSmart ) Frost&Sullivan % +50% Financial Services, Retail, Loyalty 1) Contactless Technologies 2)

12 Infineon Competencies Growth driver Energy Efficiency, Mobility & Connectivity, Security & Safety IFX target markets Automotive Industrial Electronics Chipcard & Security Mobile Phone Platforms RF Solutions Broadband Access IFX Key competencies Analog / Mixed Signal Power RF Embedded Control

13 Infineon Businesses Mobile Phone Platforms RF Solutions Broadband Communication Solutions Feature Phones Entry Phones Mobile Software RF Engine Tuner Systems Connectivity Access Automotive, Industrial & Multimarket Automotive Microcontroller Automotive Power Sense & Control Industrial & Multimarket Power Management & Drive Discrete Semiconductors Security & ASICs ASIC, Design & Security Chip Card & Security ICs

14 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

15 Infineon Drives the Entire Broadband Access Chain Central Office Fiber Copper m Home IFX products: Geminax, Socrates, etc. IFX product: VINAX etc. IFX products: Danube, Amazon, Vinetic, SLIC-DC, Samurai, etc.

16 Broadband Access Design-Win Momentum Continues VDSL2 VINAX ADSL2+ Geminax-MAX ADSL & VoIP Amazon, Danube VoIP Vinetic Design-Win at major Korean customers Top European customer Design-Win at two customers based in APAC Major European customer 4 Design-Wins for ADSL & VoIP 2 of the top 5 world wide ADSL-CPE Manufacturer Design-Wins at two Japanese customers Major global customer SHDSL.bis Socrates-4e Leading Chinese DSLAM customer Major global customer, based in EU

17 RF Transceiver: CMOS Leadership Turns Into Design-Wins 2 / 2.5 G GSM / GPRS SMARTi SD SMARTi SD G EDGE SMARTi PM SMARTi PM2 3 G WCDMA SMARTi 3G SMARTi 3GE Technology: 130nm CMOS 130nm CMOS 130nm CMOS Customer Samsung Air Interface EDGE Nr.1 worldwide in RF-Transceivers Customer Customer Customer EDGE WCDMA WCDMA / EDGE World s first EDGE CMOS RF-Transceiver in volume LG (on platform) Panasonic (on platform) Selection of major design-wins EDGE WCDMA / EDGE World s first WCDMA CMOS RF-Transceiver in volume

18 RF/Baseband Integration, HSDPA and More 2G / 2.5G GSM / GPRS 2.75G EDGE 3G UMTS 3.5G HSDPA Platform ULC1 ULC2 MP-E MP-EU MP-EH Baseband RF Transceiver Power Management E-GOLDradio E-Powerlite E-GOLDvoice (incl. SRAM) S-GOLDradio S-GOLD2 SMARTi PM SM-Power S-GOLD2 + co-processor SMARTi PM/3G SM-Power1.6 S-GOLD3H SMARTi 3GE SM-Power3 Protocol Stack Ramp up integrated in one chip 1H CY07 CY 2007+

19 Successful Ramp of Shipments to New Wireless Customers LG KE820 Based on IFX EDGE platform (MP-E) First model KG99 has been shipped to shops in China in early Oct More models to be launched Softbank 705P Based on IFX EDGE/3G platform (MP-EU) Available in Japan since early October 2006 Samsung D900 Based on IFX EDGE RF CMOS transceiver (SMARTi PM) Launched during Q4

20 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

21 Worldwide Automotive Semiconductor Market Continues to Grow; Safety is the Fastest Growing Segment Market in USD bn % CAGR CAGR Infotainment 4.0% Body 7.0% navigation car radio air-conditioning window lifter dashboard light & illumination Safety ABS 9.7% airbag tire pressure sensor Powertrain 4.5% engine management transmission vehicle network Source: Strategy Analytics 9/2005 (Infotainment = Driver Information + Audio)

22 Worldwide Power Semiconductor Market Growth Forecast Market in USD bn +7% CAGR Source:IMS 9/2006

23 Growth Driver for CoolMOS / OptiMOS: More and More Applications Require Power Efficiency CoolMOS for AC/DC power conversion OptiMOS for DC/DC voltage regulation CoolMOS 1st Gen. Server SMPS Lighting 1998 Motherboard +113% +32% +685% CoolMOS 2nd Gen. CoolMOS 3rd Gen Server Notebook Adapter +42% -16% Solar +107% +41% Notebook Graphics Card Gaming +107% Aviation +32% Computing (PC Silverbox) Telecom Modules SFET1 OptiMOS-1 OptiMOS-2 OptiMOS-3 +4% Gaming +20% +15% Estimated Total Sales Growth (yoy) Estimated Total Sales Growth (yoy) CoolMOS 4thGen. 2008

24 Infineon s Track Record in Automotive and Power Semiconductor Market Shares Worldwide Automotive Semiconductor Worldwide Power Semiconductor 12.9% 12.9% 11.4% 9.3% 9,4% 6.4% 7.0% 7.1% 6.8% 6.5% 7.6% 8.4% 7.9% 8.7% 7,4% 6,5% 6,2% 7,0% 6,9% 6,7% 8,0% 7,8% 7,6% 7,6% 7,1% 7,2% 8,4% 8,1% 4.8% 5.3% Bosch Renesas STM Infineon Freescale Toshiba STM IR Fairchild Infineon Source: Strategy Analytics 2006 Source: IMS 2006

25 Never stop thinking.

26 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

27 Profitable Growth: Infineon s AIM ex Security & ASICs* 400 Index 300 EBIT AIM ex Security & ASICs Sales AIM ex Security & ASICs (indexed: 1998 = 100) Total Sales SIA (indexed: 1998 = 100) *) Minimal inconsistencies possible due to changes in segment reporting

28 Key Financials Q3 F05 Q4 F05 Q1 F06 Q2 F06 Q3 F06 Q4 F06 Sales (EUR m) ,058 EBIT (EUR m) EBIT margin -10.3% -8.4% -5.1% -16.4% EBIT ex charges (EUR m) EBIT margin ex charges -2.9% -0.8% -2.2% -1.0% D&A (EUR m) D&A / Sales (%) 17.7% 17.5% 16.3% CapEx (EUR m) NM CapEx / Sales (%) NA 15.9% 16.4% PP&E (EUR m) 1,535 1,663 1,660 1,684 Working Capital (EUR m) Gross Cash (EUR m) 1,462 1,514 1,505 1,585 Gross Debt (EUR m) 1,557 1,872 1,839 1,854 Net debt (EUR m) Employees 26,834 29,446 29,849

29 Financial Calendar Jan 29, 2007* Interim Report FQ Munich Feb 13, 2007 Presentation at 3GSM Barcelona Feb 15, 2007 Annual General Meeting Munich Mar 12/13, 2007* IFX Day Campeon Munich Apr 27, 2007* Interim Report FQ Munich Jul 27, 2007* Interim Report FQ Munich Nov 14, 2007* Interim Report FQ Munich * = Preliminary Date