Morgan Stanley TMT Conference Barcelona, 15 November 2012
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Morgan Stanley TMT Conference Barcelona, 15 November 2012 Dominik Asam Chief Financial Officer Table of Contents Infineon at a Glance Growth Outlook Results 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. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 2 Revenue Split by Division Q4 FY 2012 revenue: EUR 982m ATV IPC € 416m € 181m PMM CCS € 247m € 126m OOS+ C&E* € 12m * Other Operating Segments; Corporate and Eliminations. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 3 Decreasing Segment Result Margin due to High Investments [EUR m] Q3 FY12 Q4 FY12 FY 2012 Revenue 990 982 3,904 Segment Result 126 116 527 SR Margin 12.7% 11.8% 13.5% [EUR m] Net Income* 82 138 427 990 982 Investment 158 246 890 FCF from cont. -22 47 -219 126 116 operations Gross Cash 2,150 2,235 2,235 Q3 FY12 Q4 FY12 Revenue Segment Result Net Cash 1,907 1,940 1,940 * Net Income includes „income from discontinued operations, net of income taxes“ in Q3 FY12 EUR -8m, in Q4 FY12 EUR 9m and in FY 2012 EUR-5m. Net Income in Q4 FY12 includes income tax benefits of EUR 52m. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 4 Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS Distributors 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 5 Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 12% Infineon 25% Infineon 10% Mitsubishi 8% NXP 24% STMicro 9% Toshiba 7% Samsung 21% Freescale 8% STMicro 6% STMicro 18% NXP 6% Int. Rectifier 5% SHHIC 10% Calendar year 2011. Calendar year 2011. Calendar year 2011. Source: Strategy Analytics, April 2012. Source: IMS Research (an IHS company), Source: IMS Research (an IHS company), July 2012. August 2012. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 6 Table of Contents Infineon at a Glance Growth Outlook Results and Outlook 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 7 New Era: Multiple Factors Driving Demand for Power Semiconductors '90 – '10 '10 – '30 Changes Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content. Courtesy: Tesla Shift towards renewable energies requires orders of magnitude more high-power semis per MW of power generated. Higher efficiency in power conversion lowers CO2, material and electricity costs. Stronger demand for goods containing power semis due to faster increase in standard of living in BRIC countries. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 8 Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(11-15) = 4.8% +1.9% 100.7 92.6 97.3 82.4 87.5 80.9 8 8 74.4 76.8 8 9 18 9 9 17 17 59.5 9 8 16 13 15 15 8 12 9 42 44 36 39 28 29 31 33 21 16 19 20 19 19 20 20 21 22 2009 2010 2011 2012 2013 2014 2015 2016 2017 Europe APAC North America Japan ROW Source: IHS, October 2012. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 9 Rising Semiconductor Value Per Car Drives Market Semiconductor value per car by region Semiconductor value per car [USD per car] 329 World 247 CAGR 323 +2.0% China 200 +5.4% 2013 2012 223 CAGR Brazil Semiconductor market by segment 184 +4.9% [USD bn] 512 CAGR 8.2 CAGR Japan Powertrain 437 +4.0% 5.6 +10.1% 451 CAGR 11.3 CAGR Europe Safety 387 +3.9% 7.5 +10.8% 380 CAGR 8.2 CAGR S. Korea Body 332 +3.4% 6.1 +7.6% 452 CAGR 6.3 CAGR N. America +3.0% Infotainment 402 4.5 +8.9% 2015 2011 2015 2011 Source: Strategy Analytics, October 2012; including semiconductor sensors. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 10 Every Electricity Conversion Step Requires Infineon Components 1 Generation Grid Consumption Wind AC DC AC DC AC turbine [Hz] Generation Grid 2 Solar Generation to Grid to Generation inverter Generation Grid 3 [Hz] Variable speed drive Grid Consumption 4 [V] Power supply Grid 50/60 Hz [V] 5 ConsumptiontoGrid DC/DC conversion Consumption 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 11 Table of Contents Infineon at a Glance Growth Outlook Results and Outlook 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 12 After Record Revenues in 2011 Sales during 2012 Stay Almost Flat Revenue and Segment Result [EUR m] FY 2012 revenue split -5% by product category 1,038 986 990 982 946 19% 15% 15% 13% 12% 195 Power eControl others 141 144 126 116 Q4 Q1 Q2 Q3 Q4 FY11 FY12 Revenue Segment Result Segment Result margin 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 13 ATV Remains on High Level Steady Recovery in PMM Courtesy: Hyundai ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +5% 425 428 416 396 391 -16% -4% 256 247 216 222 227 233 +9% 196 174 177 181 17% 14% 15% 13% 11% 25% 18% 14% 14% 15% 116 112 122 126 23% 20% 16% 15% 14% 97 15% 14% 14% 13% 6% 66 55 63 54 47 49 64 16 6 14 18 18 39 27 26 26 40 32 33 37 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Revenue Segment Result Segment Result margin 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 14 Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011 Worldwide Automotive Semiconductor Ranking for 2011 9.8% 1. Renesas 13.8% -0.3%-pt 2. Infineon 9.8% +1.0%-pt 8.2% Infineon 3. STM 8.7% +0.4%-pt strengthened 5.7% 4. Freescale 7.9% -0.5%-pt world‘s #2 postion; 5. NXP 6.4% -0.4%-pt 3.9% 6. Bosch 5.8% +0.2%-pt rose from #8 to #4 7. TI (incl. NSM) 4.7% 0%-pt position in Japan. 1994 1998 2002 2011 Europe APAC & others* North America Japan 1. Infineon 14.7% 1. STM 10.1% 1. Freescale 13.8% 1. Renesas 35.1% 2. STM 11.3% 2. Infineon 9.0% 2. Infineon 8.5% 2. Toshiba 13.0% 3. Bosch 9.4% 3. Renesas 7.5% 3. STM 8.0% 3. Fujitsu 3.9% 4. Freescale 8.7% 4. Freescale 7.4% 4. Renesas 7.5% 4. Infineon 3.8% 5. NXP 8.2% 5. NXP 7.3% 5. NXP 6.7% 5. Rohm 3.6% 6. Renesas 8.0% 6. Bosch 5.7% 6. TI 6.0% 6. STM 3.6% 7. TI 6.8% 7. Toshiba 2.9% 7. Bosch 3.7% 7. ON 3.1% 8. ON Semi 3.0% 8. TI 2.6% 8. ON 3.3% 8. Sanken 2.9% Source: Strategy Analytics, April 2012 * According to Strategy Analytics this ranking also includes Russia, South America, Australia and further countries. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 15 Increasing Adoption of Infineon‟s 77 GHz SiGe Technology for Radar Applications RASIC serves rapid growth in advanced driver assistance systems Infineon’s Radar System IC (RASIC™) series consists of a group of highly-integrated functions for 77 GHz automotive radar sensors. With more than 1m devices shipped since 2009, Infineon is a market leader today and strengthens its future position with the recent release of a “77 GHz radar-in-package”. Multiple design-wins have been recorded at major automotive suppliers in the USA, Europe and Asia. 35 30 First 77 GHz 25 radar solution in 20 eWLB SMD 15 package. 10 5 radar sensors (millions) sensors radar Shipments of automotiveof Shipments 0 Bringing 77 GHz performance 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 to the short- and mid-range Short/Mid-Range Long-Range Source: Strategy Analytics, 2012 market. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 16 Infineon‟s Digital Power Management ICs Now Ramping for AC/DC Applications Enabling high-efficiency AC/DC conversion while reducing system costs uses digital control algorithms allowing system complexity reduction and flexibility to adapt to rapidly-changing market requirements. is tailored to offer our customers best in both system cost and efficiency over all load Component reduction through use of in a conditions. power adapter Target applications started volume shipments for power adapters. Design-in activities now ramping for LED lighting. 14 Nov 2012 Copyright © Infineon Technologies AG 2012. All rights reserved. Page 17 Integrity Guard has been nominated for the "German Future Prize 2012" Integrity Guard – Security for the connected world Infineon„s innovative Integrity Guard digital security technology has been nominated for the “German Future Prize 2012 - The Federal President`s Award for Innovation and Technology”.