Ready for Tomorrow Infineon at a Glance
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Infineon Technologies AG Annual Report 2013 READY FOR TOMORROW INFINEON AT A GLANCE Page 38 Page 44 INDUSTRIAL AUTOMOTIVE POWER CONTROL Applications Applications > Powertrain > Renewable energy generation > Hybrid and electric vehicles > Energy transmission and conversion > Chassis and comfort electronics > Uninterruptable power supplies > Safety > Industrial drives > Industrial vehicles > Traction > Home appliances Product range Product range > Microcontroller (8-bit, 16-bit, 32-bit) > IGBT module solutions including IGBT stacks for automotive and industrial applications > IGBT modules (high-power, > Software development platform DAVE™ medium-power and low-power) > Discrete power semiconductors > Discrete IGBTs > IGBT modules > Bare die business > Voltage regulator > Driver ICs > Power ICs > Bus interface devices (CAN, LIN, FlexRay) > Magnetic sensors > Pressure sensors > Wireless transmit and receive ICs (RF, radar) Key customers ¹ Key customers ¹ Autoliv / Bosch / Continental / Delphi / Denso / Hella / ABB / Alstom / Bombardier / Delta / Emerson / Hyundai / Lear / Mando / Mitsubishi / TRW / Valeo Enercon / Goldwind / Rockwell / Schneider Electric / Semikron / Siemens / SMA Solar Technology Market position ² Market position ² 2 1 With a market share of 9.1% With a market share of 11.8 % Source: Strategy Analytics, April 2013 for discrete power semiconductors and modules Source: IHS, September 2013 1 In alphabetical order. Infineon´s major distribution customers are Arrow, Avnet, Beijing Jingchuan, Tomen and WPG Holding. 2 All figures for 2012 calendar year. Infineon Technologies AG, Neubiberg (Germany), offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2013 fiscal year (ending September 30), the Company reported revenues of 3.84 billion euros with approximately 26,700 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX Inter national Premier (ticker symbol: IFNNY). Page 50 Page 56 INFINEON AT A GLANCE AT INFINEON POWER MANAGEMENT CHIP CARD & MULTIMARKET & SECURITY Applications Applications > Power supplies > Mobile communication > Mobile devices > Payment systems > Cellular network infrastructure > Security for mobile communication devices > Light management including LED lighting > Electronic passports, ID cards, > Inverters for photovoltaic rooftop systems (< 3 kW) healthcare cards, driver’s licences > Ticketing, access control > Trusted computing > Authentication Product range Product range > Discrete high-voltage power transistors > contact-based security controllers > Discrete low-voltage power transistors > contactless security controllers > Driver ICs > Dual-interface security controller > Control ICs (contact-based and contactless) > RF power transistors > Small-signal components > CMOS RF switches for antenna modules > MEMS and ASICs for silicon microphones > Customized chips (ASICs) Key customers ¹ Key customers ¹ AAC / Dell / Delta / Emerson / Ericsson / Beijing Watch Data / Gemalto / Giesecke & Devrient / Hewlett-Packard / Huawei / LG Electronics / Hewlett-Packard / Oberthur Technologies / Lite-On / Osram / Quanta / Samsung Safran Morpho / US Government Printing Office Market position ² Market position ² 2 1 With a market share of 12.7 % With a market share of 24.1 % for standard MOSFET power transistors microcontroller-based chip card ICs Source: IHS, September 2013 Source: IHS, September 2013 P An overview of our worldwide locations can be found on pages 112 and 113 in the chapter “Infineon worldwide”. Infineon key data as and for the fiscal years ended September 30 (under IFRS) ¹ Fiscal year from October 1 to September 30 2013 2012 2013/2012 € millions in % of € millions in % of Change revenue revenue in % Revenue by region 3,843 3,904 (2) Europe, Middle East, Africa 1,567 41 1,732 44 (10) Therein: Germany 795 21 908 23 (12) Asia-Pacific (w/o Japan) 1,560 40 1,470 38 6 Therein: China 710 18 637 16 11 Japan 227 6 252 6 (10) Americas 489 13 450 12 9 INFINEON AT A GLANCE AT INFINEON Revenue by Segment 3,843 3,904 (2) Automotive 1,714 44 1,660 43 3 Industrial Power Control 651 17 728 19 (11) Power Management & Multimarket 987 26 929 24 6 Chip Card & Security 463 12 457 12 1 Other Operating Segments 26 1 125 3 (79) Corporate and Eliminations 2 0 5 0 (60) Gross profit/Gross margin 1,323 34.4 1,427 36.6 (7) Research and development expenses (525) 13.7 (455) 11.7 15 Selling, general and administrative expenses (440) 11.4 (475) 12.2 (7) Operating income 325 455 (29) Income from continuing operations 283 432 (34) Loss from discontinued operations, net of income taxes (11) (5) (120) Net income 272 427 (36) Segment Result/Segment Result Margin 377 9.8 527 13.5 (28) Property, plant and equipment 1,600 1,731 (8) Total assets 5,905 5,898 – Total equity 3,776 3,575 6 Net cash provided by operating activities from continuing operations 610 667 (9) Net cash used in investing activities from continuing operations (328) (1,013) 68 Net cash used in financing activities from continuing operations (165) (199) 17 Free cash flow ² 235 (219) 207 Depreciation and amortization 466 428 9 Capital expenditure 378 890 (58) Gross cash position ³ 2,286 2,235 2 Net cash position ⁴ 1,983 1,940 2 Basic earnings per share in € 0.25 0.40 (38) Diluted earnings per share in € 0.25 0.39 (36) Dividend per share in € ⁵ 0.12 0.12 – Equity ratio 63.9 % 60.6 % 5 Return on equity ⁶ 7.2 % 11.9 % (40) Return on assets ⁷ 4.6 % 7.2 % (36) Inventory intensity ⁸ 10.3 % 9.6 % 7 Debt-to-equity ratio ⁹ 8.0 % 8.3 % (3) Debt-to-total-capital ratio ¹⁰ 5.1 % 5.0 % 3 Return on Capital Employed (RoCE) ¹¹ 14.1 % 22.3 % (37) Employees Infineon as of September 30 26,725 26,658 – 1 Columns may not add due to rounding. 2 Free cash flow: for definition G see glossary, page 284. 3 Gross cash position: for definition G see glossary, page 284. 4 Net cash position: for definition G see glossary, page 284. 5 A dividend per share of €0,12 for the 2013 fiscal year will be proposed to the Annual General Meeting on February 13, 2014. 6 Return on equity = net income divided by total equity. 7 Return on assets = net income divided by total assets. 8 Inventory intensity = inventories (net) divided by total assets. 9 Debt-to-equity ratio = long-term and short-term debt divided by total equity. 10 Debt-to-total-capital ratio = long-term and short-term debt divided by total assets. 11 Return on Capital Employed (RoCE): for definition G see glossary, page 284. We have learnt from past market cycles. With refocused business activities and improved cycle management, we are laying the groundwork for solid profitability over the entire cycle. As market and technology leader, Infineon is a pioneer in its field and the only company worldwide to operate 300-millimeter thin-wafer manufacturing for power semiconductors. This innovation not only gives us advan- tages in terms of productivity, but also the opportunity to grow in the years ahead. In addition to our technological strength, we intend to enhance our understanding of the factors that make our customers successful. We call this strategic evolution “Product to System”. Our business activities, operational excellence, highly efficient 300-millimeter manufacturing and strategic focus on “Product to System” make us: READY FOR TOMORROW 2 INFINEON TECHNOLOGIES ANNUAL REPORT 2013 ABOUT THIS REPORT ABOUT THIS REPORT Combined reporting This combined report documents Infineon’s economic, ecological and social performance during the 2013 fiscal year. With this report we want to demonstrate how sustainability contributes to Infineon’s success and how our activities in this area create value for all of our stakeholders. G 01 Sustainability Economy Sustainability Social Environment Report boundaries The reporting period covers the 2013 fiscal year – from October 1, 2012 to September 30, 2013. This report is published annually; the previous report was published in November 2012. Unless otherwise stated, the information and key performance indicators contained in this report relate to the 2013 fiscal year. In order to help readers identify and interpret trends, the report includes data for at least the last two years in the quantitative performance illustrations. Furthermore, the progression P see page 80 graphs included in the chapter “Sustainability at Infineon” illustrate the last five fiscal years’ performance. INFINEON TECHNOLOGIES ANNUAL REPORT 2013 3 ABOUT THIS REPORT Reporting requirements Infineon’s Group Management Report has been prepared in accordance with sections 315 and 315a of the German Commercial Code (“HGB”) and in accordance with German Accounting Standards no. 8, 15 and 17. The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). Infineon’s internal control system for financial reporting ensures the reliability of the information provided in the notes to the Consoli- dated Financial Statements. The non-financial performance information provided in this combined report has been reported on the basis of the G3.1 Guidelines of the Global Reporting Initiative (“GRI”). The GRI has confirmed that this report fulfills the requirements of the Application Level B+. P see page 296 The information contained in the Infineon Annual Report 2013 also serves as “Communi- cation on Progress” for the United Nations Global Compact. Infineon engages in continuous dialog with its stakeholders. We