First Quarter 2007 Roadshow. Ulrich Pelzer CVP Investor Relations

Transcription

1 First Quarter 2007 Roadshow Ulrich Pelzer CVP Investor Relations

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. Page 2

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

4 First Quarter FY 2007 Results: Rev. of EUR 2.13 bn; EBIT of EUR 216 m [EUR m] 1,606 1,606 Infineon Group (incl. Qimonda) 1,731 1,674 1,993 1,972 2,290 2,131 [EUR m] Infineon (excl. Qimonda) , , % % % -43-7% % 28 2% 49 1% 30 10% % % % -77 0% -4 0% -2-5% % % -9 Q2 FY05 Q3 FY05 Q4 FY05 Q1 Q2 Q3 Q4 Q1 FY07 Q2 FY05 Q3 FY05 Q4 FY05 Q1 Q2 Q3 Q4 Q1 FY07 Automotive, Industrial & Multimarket Communication Solutions Qimonda 1,232 1, % 51 10% 73 8% 57 9% 64 8% % -21-9% % % % % % 30 10% % 204*) 19% 225*) Q1 [EUR m] Q2 Q3 Q4 Q1 FY07 Q1 [EUR m] Q2 Q3 Q4 Q1 FY07 Q1 [EUR m] Q2 Q3 Q4 Q1 FY07 *)EBIT excl. minority interests Page 4

5 Second Quarter FY2007 Outlook as per 29-Jan-07 IFX Logic Revenues and EBIT excluding Qimonda and before charges are expected to remain at least flat. COM Revenues and EBIT flat q-o-q Customer ramp-ups mitigate typical seasonal decline in the wireless business; wireline business to be about flat AIM Revenues to increase slightly q-o-q; EBIT margin to improve. Auto to grow on ramp ups and seasonality despite continued U.S. auto weakness. Industrial & Multimarket and Security & ASIC to remain broadly flat. C & E EBIT loss before charges basically unchanged q-o-q. Charges: significantly less than the EUR 30 m expected originally for fiscal first quarter to be taken mainly for baseband restructuring. Page 5

6 Fiscal Year 2007 Outlook as per 29-Jan-07 COM EUR 40 m annualized cost savings to take effect likely from Jun Q 2007 onwards. Target: wireless break-even in Dec quarter AIM Expect cost for Perlach fab closure to disappear Sep Q Kulim fab to break-even middle 2007 calendar year. Chipcard to remain around break-even until new products introduced middle of 2007 calendar year. OOS/ C & E Revenues and EBIT in OOS to remain broadly unchanged. Charges well below EUR 30m in fiscal second quarter in C&E For FY2007 C&E EBIT before charges to be EUR -10m to EUR -15m per quarter. Page 6

7 Financial Structure of Infineon excluding Qimonda: Solid Financing Outlook for CapEx and D&A [EUR m] CapEx /Sales (%) 4Q % 1Q FY % FY FY % of sales D&A /Sales (%) % % in line with CapEx Financial structure: Logicbusiness for the past quarters [EUR m] Q2 FY 06 Q3 FY 06 Q4 FY 06 Q1 FY 07 Gross Cash Gross Debt Convertibles Net Debt Page 7

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

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 Protection and privacy of personal and company data Secure e-commerce and identification Automotive safety Page 9

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

11 AIM Growth Drivers Energy Efficiency Different governmental requirements: 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 Security Units (m) % +20% +50% Government, Health 1) Source: 1) EuroSmart ) Frost&Sullivan Financial Services, Retail, Loyalty 1) Contactless Technologies 2) Page 11

12 Infineon Businesses Communication Solutions Automotive, Industrial & Multimarket Mobile Phone Platforms Feature Phones Entry Phones Mobile Software RF Solutions RF Engine Tuner Systems Connectivity Broadband Access Automotive Microcontroller Automotive Power Sense & Control Industrial & Multimarket Power Management & Drives Discrete Semiconductors Security & ASICs ASIC, Design& Security Chip Card & Security ICs Page 12

13 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar) Page 13

14 Infineon Drives the Entire Broadband Access Chain Central Office Fiber Copper Home m IFX products: Geminax, Socrates, etc. IFX product: VINAX etc. IFX products: Danube, Amazon, Vinetic, SLIC-DC, Samurai, etc. Page 14

15 Broadband Access Design-Win Momentum Continues VDSL2 VINAX World s first VDSL2 RollOut with Deutsche Telekom on CO- and CPE-side in Germany World s second VDSL2 RollOut with Hyndai on CO- and CPE-side in Korea ADSL2+ GEMINAX-MAX ADSL & VoIP Amazon, Danube Design-Win at two customers based in APAC Major European customer 2 Design-Wins for ADSL & VoIP WiMax IAD Design-Win at major Japanese customer VoIP Vinetic Design-Wins at top tier IP-Phone vendors Major global customer SHDSL.bis Socrates-4e Leading Chinese DSLAM customer Major global customer, based in EU Page 15

16 RF Transceiver: CMOS Leadership Turns Into Design-Wins 2G / 2.5G GSM / GPRS 2.75G EDGE 3G WCDMA SMARTi SD SMARTi SD2 SMARTi PM SMARTi PM2 SMARTi 3G SMARTi 3GE 130nm CMOS 130nm CMOS 130nm CMOS Customer Samsung Customer Customer Customer Air Interface EDGE EDGE WCDMA WCDMA / EDGE Shipped more than 230m RF IC s in 2006 Nr.1 worldwide in RF transceivers World s first EDGE CMOS RF transceiver in volume LG (on platform) Panasonic (on platform) EDGE WCDMA / EDGE Selection of major design-wins World s first WCDMA CMOS RF transceiver in volume Page 16

17 Strength: RF/Baseband Integration and HSDPA 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 1Q CY07 CY integrated in one chip Page 17

18 Successful Ramp of Shipments to New Wireless Customers EDGE Platform: MP-E UMTS Platform: MP-EU Softbank 705P new: Softbank 706P Low-Cost: ULC1 Page 18

19 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar) Page 19

20 Worldwide Automotive Semiconductor Market Continues to Grow; Safety to Grow Fastest Market in USD bn +6.0% CAGR CAGR % 7.0% Infotainment navigation car radio Body air-conditioning window lifter dashboard light & illumination % Safety ABS airbag tire pressure sensor Source: Strategy Analytics 9/2005 (Infotainment = Driver Information + Audio) 4.5% Powertrain engine management transmission vehicle network Page 20

21 Worldwide Power Semiconductor Market Growth Forecast Market in USD bn +7% CAGR Source:IMS 9/2006 Page 21

22 Growth Driver for CoolMOS / OptiMOS: More Applications Require Power Efficiency CoolMOS for AC/DC power conversion OptiMOS for DC/DC voltage regulation CoolMOS 1st Gen. Lighting 1998 Server SMPS Motherboard +113% +32% +685% CoolMOS 2nd Gen. CoolMOS 3rd Gen. Computing (PC Silverbox) Server Notebook Adapter +107% +42% -16% Solar +41% Aviation Gaming +32% +20% Notebook Graphics Card Gaming +107% +4% +15% +43% Telecom Modules SFET1 OptiMOS-1 OptiMOS-2 OptiMOS-3 CoolMOS 4th Gen. Estimated Total Sales Growth (yoy) +20% Estimated Total Sales Growth (yoy) 2008 Page 22

23 Infineon s Track Record in Automotive and Power Semiconductor Market Shares Worldwide Automotive Semiconductor Marketshare Worldwide Power Semiconductor Marketshare 12.9% 12.9% 11.4% 9.4% 6.4% 8.4% 7.6% 6.8% 7.0% 7.1% 6.5% 7.9% 8.7% 9.3% 7.4% 6.5% 6.2% 8.0% 7.8% 7.6% 7.6% 7.0% 7.1% 7.2% 6.7% 6.9% 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 Page 23

24 Never stop thinking. Page 24

25 Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar) Page 25

26 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 Page 26

27 Key Financials Q3 F05 Q4 F05 Q1 F06 Q2 F06 Q3 F06 Q4 F06 Q1 F07 Sales (EUR m) , , EBIT (EUR m) EBIT margin -10,3% -8,4% 0,1% 0,7% -5,1% -16,4% -0,9% EBIT ex charges (EUR m) EBIT margin ex charges -2,9% -0,8% 0,3% 1,0% -2,2% -1,0% -0,9% D&A (EUR m) D&A / Sales (%) 17,7% 21,6% 15,1% 19,3% 17,5% 16,3% 16,9% CapEx (EUR m) NM CapEx / Sales (%) NA 11,1% 4,9% 29,5% 15,9% 16,4% 11,0% Gross Cash (EUR m) 1,374 1,264 1,426 1,427 1,585 1,481 Gross Debt (EUR m) 1,557 1,593 1,872 1,839 1,854 1,872 Net debt (EUR m) Employees 26,834 30,561 29,446 29,849 30,071 Page 27

28 Financial Calendar Feb 13, 2007 Presentation at 3GSM Barcelona Feb 15, 2007 Annual General Meeting Munich Mar 13, 2007 IFX Day Munich Apr 27, 2007* Interim Report FQ Jul 27, 2007* Interim Report FQ Nov 14, 2007* Interim Report FQ * = Preliminary Date Page 28