Commerzbank Sector Conference Week Frankfurt, 28 August 2013 Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations
Table of Contents Overview Growth Drivers Financials 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 CCS 119m PMM 266m IPC 173m OOS+C&E * 5m * Other Operating Segments; Corporate and Eliminations. 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 SR Margin 12.7% 7.4% 11.4% 918 1022 [EUR m] Net Income * 82 33 77 Investment 158 65 71 68 Q2 FY13 Revenue 117 Q3 FY13 Segment Result FCF from cont. operations -22 73 135 Gross Cash 2,150 2,016 2,137 Net Cash 1,907 1,705 1,832 * 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. Page 4
Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS Distributors Page 5
Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 12% Infineon 25% Infineon 9% Mitsubishi 8% NXP 24% STMicro 8% Toshiba 7% Samsung 21% Freescale 7% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2012. Source: Strategy Analytics, April 2013. Calendar year 2011. Source: IMS Research (an IHS company), July 2012. Calendar year 2011. Source: IMS Research (an IHS company), August 2012. Page 6
Table of Contents Overview Growth Drivers Financials and Outlook
Despite Europe, Global Car Production Up in 2013; Long-Term Prospects Still Healthy 74.4 76.9 6,4 6,6 9,1 7,9 10,8 11,5 Global car production (cars 6t) [units m] (12-16) = 4.2% +2.0% 87.0 81.5 83.1 6,7 6,0 6,1 8,2 9,4 8,8 13,5 12,8 12,8 17,1 17,6 18,6 20,4 22,6 96.3 99.5 102.5 92.3 7,6 7,9 8,2 7,3 7,7 7,7 7,5 8,1 15,5 16,1 16,9 14,7 24,8 26,6 28,1 29,2 11,9 13,1 15,4 16,2 16,5 17,2 17,8 17,8 17,9 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 APAC ex China Japan RoW. Source: IHS, July 2013. www.ihs.com. Page 8
Semi Content Per Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] Brazil 209 184 +3.3% [USD] World 329 315 +2.5% China S. Korea N. America Europe Japan 252 206 367 332 448 410 449 399 482 441 +5.2% +2.5% +2.2% +3.0% +2.2% Semiconductor market by segment [USD bn] Powertrain Safety* Body** Infotainment 2013 2012 7.9 6.0 8.3 6.6 6.5 4.9 11.2 8.2 +7.2% +8.2% +5.9% +7.0% 2016 2012 2016 2012 Source: Strategy Analytics (SA): Automotive Semiconductor Demand Forecast 2011 2020, July 2013; including semiconductor sensors. * Safety = Safety + Chassis according to SA definition. ** Body = Body + Security according to SA definition. Page 9
Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation Industrial motor controls Market description [USD bn] 40 (12-16) = 8.2% Others Food & beverage, medical & scientific, semiconductor machinery, printing sector. Comparatively low IGBT content. 30 20 Servo Drives High precision motors for general motion control and CNC products. 600/1200 V IGBT devices. 10 Medium Voltage Drives Heavy industries (oil & gas, metals, power generation). High-power drives (up to 10 MW). 1.7/3.3/6.5 kv IGBT modules. 0 2012 2013 2014 2015 2016 AC Drives Med. Voltage Drives Servo Drives others AC Drives 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. Page 10
Growth in Servers Compensates Slowdown in PCs and Notebooks PCs 147 195 Notebooks 137 168 134 155 133 147 131 141 PCs and Notebooks Servers [units m] 200 (12-16) = -2.7% [units k] 12000 (12-16) = 4.6% 180 160 140 (12-16) = -7.7% 11500 11000 11.099 11.562 120 10500 10.546 100 80 60 40 10000 9500 9000 9.672 10.004 20 8500 0 2012 2013 2014 2015 2016 8000 2012 2013 2014 2015 2016 Source: Gartner: Desktop-Based PCs, Notebooks, Ultramobiles and Tablets, Worldwide: 2011 2017, 2Q13 Update, July 2013. Source: Gartner: Forecast: Servers, All Countries, 2011 2017, 2Q13 Update, July 2013. Page 11
Our Business With RF Components, Si-Mics and Power Semis Fuelled by Mobile Devices Smartphones Tablets * [units m] 1400 (12-16) = 16.4% [units m] 500 (12-16) = 36.2% 1200 1000 800 600 400 700 932 1075 1189 1283 400 300 200 202 276 350 414 200 100 120 0 2012 2013 2014 2015 2016 0 2012 2013 2014 2015 2016 Source: Strategy Analytics: Global Smartphone Sales Forecast for 88 Countries: 2007 to 2017, July 2013. 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. Page 12
Table of Contents Overview Growth Drivers Financials and Outlook
Return to Year-on-Year-Growth and > 10% Segment Result Margin Revenue and Segment Result [EUR m] +3% FY 2012 revenue split by product category 990 982 851 918 1.022 13% 12% 5% 7% 11% 126 116 Q3 FY12 Q4 44 68 Q1 FY13 Q2 117 Q3 Power econtrol others Revenue Segment Result Segment Result Margin Page 14
Record Sales in ATV; IPC Returned to More Normal Levels; Nice Margin Recovery in PMM Courtesy: Daimler AG ATV IPC PMM CCS [EUR m] +7% [EUR m] [EUR m] [EUR m] 428 416 377 424 459-2% +14% 13% 11% 5% 9% 11% 177 181 138 144 173 15% 14% -4% -2% 8% 54 47 37 52-3 13 20 26 26-5 233 247 266 222 227-2% 14% 15% 10% 12% 17% 122 126 108 108 119 15% 14% 9% 7% 8% 33 37 22 27 46 18 18 10 7 10 Q3 FY12 Q4 Q1 FY13 Q2 Q3 Q3 FY12 Q4 Q1 FY13 Q2 Q3 Q3 FY12 Q4 Q1 FY13 Q2 Q3 Q3 FY12 Q4 Q1 FY13 Q2 Q3 Revenue Segment Result Segment Result Margin Page 15
Investments Average ~15% of Sales Over a Cycle Investments in FY 2009 FY 2013 1000 750 500 250 0 Average investments-to-sales* (FY09 FY13) 115 325 33 887 890 42 58 18 97 292 845 832 15.1% just under 400 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 25% 20% 15% 10% 5% 0% reported Capex guided investments int. assets, cap. R&D Capex-to-sales [%] * Total investments (FY09 FY13): 2.597m. Total sales (FY09 FY13): 17.230m. Page 16
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. Page 17
Financial Calendar Date Location Event 03 04 Sep 2013 London Deutsche Bank European TMT Conference 18 Sep 2013 Conference Call by Jochen Hanebeck Division President, Automotive 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 Page 19
Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President +49 89 234-26153 Finance, Treasury & Investor Relations ulrich.pelzer@infineon.com Joachim Binder Senior Director +49 89 234-25649 Investor Relations joachim.binder@infineon.com Holger Schmidt Manager +49 89 234-22332 Investor Relations holger.schmidt@infineon.com Bernard Wang Manager +49 89 234-22669 Investor Relations bernard.wang@infineon.com 31 July 2012 Copyright Infineon Technologies 2012. All rights reserved. Page 20 Page 20