° Infineon Technologies Annual Report 2007 9
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INFINEON KEY DATA LIFE IS FUll OF 1 01 AS OF AND FOR THE FISCAL YEAR, ENDED SEPTEMBER 30 Fiscal year from October 1 to September 30 2006 2007 2007/2006 CHallEngeS As % of As % of Change € millions € millions net sales net sales in % MiLLIONS OF PEOPLE PLACE THEIR TRUST IN OUR PRODUCTS Net sales by region 7,929 7,682 (3) EVERY DAy – WHETHER THEY ARE AWARE OF IT OR NOT. Germany 1,327 17 1,164 15 (12) THEY FIND THEMSELVES USING OUR PRODUCTS WHENEVER Other Europe 1,360 17 1,218 16 (10) THEY ARE ON THE PHONE, PURCHASING GOODS wiTH North America 2,126 27 1,887 25 (11) THEIR CREDIT CARDS, OR JUST DRIVING THEIR CARS. OUR Asia-Pacific 2,498 31 2,632 34 5 PRODUCTS HELP THEM TO TALK AND SHARE THEIR DATA, Japan 461 6 661 9 43 WHETHER AT HOME, IN THE OFFICE, OR ON THE GO. Other 157 2 120 1 (24) AS DEVELOPERS AND MANUFACTURERS OF ELECTRONIC Net sales by segment COMPONENTS, WE TAKE ON THE CHALLENGES FACING OUR Automotive, Industrial & Multimarket 2,839 36 3,017 39 6 CUSTOMERS AND USERS. Communication Solutions 1,205 15 1,051 14 (13) Other Operating Segments 310 4 219 3 (29) Corporate and Eliminations (240) – – – (213) – – – 11 Infineon without Qimonda 4,114 52 4,074 53 (1) Qimonda 3,815 48 3,608 47 (5) Gross margin 2,075 26 1,590 21 (23) Research and development expenses 1,249 16 1,169 15 (6) Operating loss (56) (370) – – – Net loss (268) (368) (37) INFineON TECHNOLOgieS AG EBIT EBIT margin (15) — (256) (3) – – – Property, plant and equipment, net 3,764 3,647 (3) HEADQUARTERS ° Am Campeon 1 – 12, 85579 Neubiberg/Munich, Germany, Phone +49-89-234-0 Total assets 11,185 10,679 (5) CONTACT FOR INVESTORS AND ANALYSTS ° [email protected], Phone +49-89-234-26655, Fax +49-89-234-9552987 MEDIA CONTACT ° [email protected], Phone +49-89-234-28480, Fax +49-89-234-9554521 Total shareholders’ equity 5,315 4,914 (8) ViSIT US ON THE WEB ° www.infineon.com SOLUtiONS Net cash provided by operating activities 1,003 1,207 20 Net cash used in investing activities (853) (867) (2) 2007 INFineON TECHNOLOgieS Net cash provided by (used in) financing activities 762 (521) – – – Effect of foreign exchange rate changes (20) (40) (100) rt AnnUal REPOrt 2007 Free cash flow 2 (88) 207 + + + PO E Depreciation and amortization 1,405 1,276 (9) R Impairment charges 57 40 (30) Purchases of property, plant and equipment 1,253 1,375 10 al U Gross cash position 3 2,655 2,294 (14) Net cash position 4 650 582 (11) nn A Loss per share – basic and diluted in € (0.36) (0.49) (36) ° Dividend per share in € — — S Equity ratio 48% 46% (4) Return on equity 5 (5%) (7%) (60) gie O Return on assets 6 (2%) (3%) (33) L 7 O Equity-to-fixed-assets ratio 141% 134% (5) N Debt-to-equity ratio 8 38% 35% (8) Debt-to-total-capital ratio 9 18% 16% (11) CH E Return on Capital Employed (RoCE) 1 0 0% (4%) – – – T N O Employees 41,651 43,079 3 ine F 1 Columns may not add due to rounding. 2 Free cash flow = Net cash provided by operating activities minus net cash used in investing activities adjusted by purchases (proceeds from sales) of marketable securities N I available for sale. 3 Gross cash position = Cash and cash equivalents plus marketable securities. 4 Net cash position = Gross cash position minus short and long-term debt. 5 Return on equity = Net income (loss) divided by average shareholders’ equity. 6 Return on assets = Net income (loss) divided by average total assets. 7 Equity-to-fixed-assets ratio = Total shareholders’ equity divided by fixed assets. 8 Debt-to-equity ratio = Long-term and short-term debt divided by shareholders’ equity. 9 Debt-to-total-capital ratio = Long-term and short-term debt divided by total assets. 10 Return on Capital Employed (RoCE) = EBIT divided by capital employed. Infineon Technologies AG, Neubiberg, provides semiconductor and system solutions, focusing on three central needs of E our modern society: energy efficiency, communications and security. With some 43,000 employees worldwide (of whom NC INFINEON 13,500 work for Qimonda), Infineon achieved 7.68 billion euros in sales (of which 3.6 billion euros for Qimonda) in fiscal year 2007. The company’s shares are listed in Frankfurt and New York (NYSE) with the ticker symbol IFX. T A GLA A TECHNOLOGIES AG 2007: N EO N FI 1 2 2 APPLICATIONS PRODUCTS MARKET POSITION KEY CUSTOMERS COMPETITORS IN 001 OUR COmpANY 002 The Management Board of Infineon Technologies AG AUTOMOTIVE ° Powertrain (engine and transmission control) ° car AUTOMOTIVE ° Microcontrollers (8-bit, 16-bit, 32-bit) ° AUTOMOTIVE ° ABB, Arrow, Asustek, ° Atmel body and comfort electronics (steering, sunroof, light, air conditioning, discrete/highly integrated power semiconductors Autoliv, Avnet Fairchild, Freescale AIM No. 2 in automotive semi- ° ° 003 Letter to the Shareholders ° shocks, power windows) ° safety (ABS, airbags, ESP) ° multi media, (MOSFETs, IGBTs) ° voltage regulators ° sensors (pressure, Bosch International Rectifier AUTOMOTIVE, INDUSTRIAL & MULTIMARKET conductors (no. 1 in Europe) ° ° telematics and eCall temperature, inertia, magnetic field sensors) ° components ° Continental ° Mitsubishi ° 022 Focus Areas ° for bus systems (CAN, LIN, MOST, FlexRay) Leader in voltage regulators Delphi, Delta, Denso National Semiconductor, and power semiconductors ° ° ° ° INDUSTRIAL & MULTIMARKET ° Electric drive control ° modules ° Emerson NEC, NXP 030 Automotive, Industrial & Multimarket for energy transmission and conversion ° generation of renewable INDUSTRIAL & MULTIMARKET ° Microcontrollers (8-bit, Gemalto, ON Semiconductor INDUSTRIAL ° ° ° ° energy ° electric motor drives for washing machines, air conditioners 16-bit, 32-bit) ° power semiconductor ICs, discrete power Giesecke & Devrient Renesas 034 Communication Solutions & MULTIMARKET ° ° semiconductor components to control light sources, low-energy semiconductors ° IGBT and bipolar modules ° discrete ° Hella, Hitachi, Hyundai ° Samsung, ° 038 Qimonda ° lamps, and light-management systems ° medical equipment ° power small-signal semiconductors ° thyristors and diodes ° No. 1 in power semi- ° Kostal STMicroelectronics packs and power supplies for PCs, game consoles and entertainment sensors ° radio-frequency semiconductors conductors ° Lear, LG Electronics ° Texas Instruments, ° 042 Infineon 2007 (Chronicle) ° electronics No. 2 in all industrial ° Microsoft Toshiba ° ° SECURITY & ASICs ° Contact-based and contactless applications ° Nokia 044 The Infineon Share SECURITY & ASICs ° Chip-based cards in the fields of communi- security controllers (8-bit, 16-bit, 32-bit) ° security memory Oberthur Card Systems ° ° 046 Human Beings and the Environment ° cations, payment systems, identification ° object identification and ° RFID chips ° Trusted Platform Modules (TPM) ° HDD SECURITY & ASICs ° Philips logistics ° platform security for computers and networks ° customized controllers ° memory controllers ° customized chips with ° Rockwell, Rutronik ° 049 Our Employees ° components for hard disk drives and other peripheral devices for PCs security functions No. 1 in chip-card ICs ° Siemens, and for medical technology applications Silicon Application, ° 052 Infineon Worldwide ° Schneider Electric, Sony ° TRW ° ° AUTOMOTIVE INDUSTRIAL & SECURITY & ASICs ° Valeo, Visteon MULTIMARKET 055 FINAncIAL REVIEW ° 056 Contents ° ° 057 Report of the Supervisory Board ° WIRELESS COMMUNICATIONS ° Mobile phones of various classes WIRELESS COMMUNICATIONS ° Baseband processors, WIRELESS ° Alcatel-Lucent, Avnet ° Broadcom ° 062 Corporate Governance Report ° COM and communication standards ° cordless telephones ° television radio-frequency solutions and power management chips, COMMUNICATIONS ° Ericsson ° Conexant ° ° receivers ° navigation systems ° cellular basestations all additionally available as single-chip solutions, software Huawei Ericsson Mobile 066 Compensation Report COMMUNICATION SOLUTIONS No. 1 in radio-frequency ° ° as well as complete platforms for mobile phones ° chips for LG Electronics Platforms chips (230 million chips ° ° ° BROADBAND AccESS ° Analog telephony and ISDN ° integrated Bluetooth and WLAN ° chip sets for cordless telephones ° Matsushita, Motorola Freescale 072 Operating and Financial Review sold in 2006) ° ° voice and data communication ° broadband access technologies for analog and digital TV tuners for stationary and mobile TV Ningbo Bird, Nokia, LSI No. 6 in platforms for mobile ° ° ° 116 Consolidated Financial Statements ° network operators and individual customers ° cellular infrastructure ° receivers ° power transistors for cellular base stations ° Nokia Siemens Networks Mediatek phones (baseband processor, ° home networks GPS receivers ° BAW filters ° Samsung, Siemens, ° NXP ° 122 Notes to the Consolidated Financial Statements ° power management chips Silicon Application, Qualcomm and radio-frequency chips) ° BROADBAND AccESS ° Interface components for voice Sphairon ° STMicroelectronics ° 184 Consolidated Financial Data 2003 – 2007 ° communications in switching centers and terminal units Thomson Texas Instruments BROADBAND AccESS ° ° ° ° (e.g. CODECs, SLICs, ISDN, T/E) ° solutions for integrated ° ZTE 186 Financial and Technology Glossary voice and data communications solutions for VoIP sys- ° ° No. 1 in the addressed ° 194 Financial Calendar ° tem solutions for wireline broadband technologies (ADSL2, market in access networks ADSL2+, VDSL2) ° system solutions for DSL modems, (DSL, T/E carriers, analog ° ° routers, home gateways, WLAN access points line cards, etc.) WIRELESS BROADBAND AccESS COMMUNICATIONS AnnUAL REPORT 2007 PUBLISHED BY Infineon Technologies AG,