Infineon Technologies AG Annual Report 2012 INFINEON at a GLANCE
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FACTOR Infineon Technologies AG Annual Report 2012 INFINEON AT A GLANCE INDUSTRIAL Page 38AUTOMOTIVE Page 48 POWER CONTROL APPLICATIONS APPLICATIONS • Powertrain (engine and transmission control, • Renewable energy generation (inverter for solar alternator, start-stop system) farms and large photovoltaic rooftop systems • Hybrid and electric vehicles (motor control, (> 3kW), inverter for wind turbines) battery management, charger) • Energy transmission (offshore windpark HVDC • Chassis and comfort electronics (power windows, lines, FACTS) suspension, air conditioning, lighting, steering, • Uninterruptable power supplies windshield wipers, sunroof, door electronics, • Industrial drives electronic control units) • Industrial vehicles (hybrid buses, agricultural vehicles, • Safety (ABS, airbag, ESC, electronically controlled heavy construction vehicles, mining vehicles) chassis suspension, electric power steering, • Traction (locomotives, high-speed trains, metro tire pressure monitoring system, radar-based trains, trams) driver assistance system) • Home appliances (induction cooking, induction rice cookers, air conditioning, washing machines) KEY CUSTOMERS ¹ KEY CUSTOMERS ¹ • Autoliv • Bosch • Continental • Delphi • Denso • ABB • Alstom • Bombardier • Delta • Emerson • Hella • Hyundai • Lear • Mitsubishi • TRW • Valeo • Enercon • Goldwind • Rockwell • Schneider Electric • Semikron • Siemens • SMA Solar Technology MAIN COMPETITORS ² MAIN COMPETITORS ² • Freescale • NXP • Renesas • STMicroelectronics • Fairchild • Fuji Electric • Mitsubishi • Semikron • STMicroelectronics MARKET POSITION ³ MARKET POSITION ³ 2 1 2 With a market share of 9.8 % With a market share With a market share Source: Strategy Analytics, April 2012 of 11.9 % for discrete of 19.4 % power semiconductors for IGBT modules and modules Source: IMS Research (an IHS company), August 2012 1 In alphabetical order. Infineon’s major distribution customers are Arrow, Avnet, Beijing Jingchuan, Tomen and WPG Holding. 2 In alphabetical order. 3 All figures for 2011 calender 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 2012 fiscal year (ending September 30), the Company reported revenues of 3.9 billion euros with close to 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). A GLANCE AT INFINEON POWER MANAGEMENT Page 58 Page 68 CHIP CARD & SECURITY & MULTIMARKET APPLICATIONS APPLICATIONS • Power supplies for computers (telecom, • Mobile communication servers, PCs, notebooks, tablet PCs) • Payment systems • Power supplies for consumer electronics • Near Field Communication (NFC) • Mobile devices for communication and • Electronic passports, ID cards, healthcare cards, navigation driver’s licenses • Cellular network infrastructure • Transport, ticketing, access control • Inverter for photovoltaic rooftop systems (< 3kW) • Trusted computing • Light management incl. LED lighting • Authentication (e.g. for pay TV, games consoles, accessories, spare parts, industrial control systems) KEY CUSTOMERS ¹ KEY CUSTOMERS ¹ • Dell • Delta • Emerson • Enphase • Ericsson • Beijing Watch Data • Gemalto • Giesecke & Devrient • Hewlett-Packard • Huawei • LG Electronics • Hewlett-Packard • Oberthur Technologies • Microsoft • Osram • Philips • Power One • Safran Morpho • US Government Printing Office • Quanta • Samsung • SMA Solar Technology MAIN COMPETITORS ² MAIN COMPETITORS ² • Fairchild • International Rectifier • NXP • Renesas • NXP • Samsung • STMicroelectronics • STMicroelectronics • Texas Instruments • Toshiba MARKET POSITION ³ MARKET POSITION ³ 1 1 With a market share of 12.1 % With a market share of 24.8 % for MOSFET power transistors for smartcard ICs Source: IMS Research (an IHS company), August 2012 Source: IMS Research (an IHS company), August 2012 INFINEON KEY DATA AS AND FOR THE FISCAL YEARS ENDED SEPTEMBER 30 (UNDER IFRS) ¹ Fiscal year from October 1 to September 30 2012 2011 2012/2011 € millions in % of € millions in % of Change revenue revenue in % Revenue by region 3,904 3,997 (2) A GLANCE AT INFINEON Europe, Middle East, Africa 1,732 44 1,920 48 (10) Therein: Germany 908 23 1,090 27 (17) Asia-Pacific (w/o Japan) 1,470 38 1,450 36 1 Therein: China 637 16 663 17 (4) Japan 252 6 202 5 25 Americas 450 12 425 11 6 Revenue by Segments 3,904 3,997 (2) Automotive 1,660 43 1,552 39 7 Industrial Power Control 728 19 797 20 (9) Power Management & Multimarket 929 24 1,003 25 (7) Chip Card & Security 457 12 428 11 7 Other Operating Segments 125 3 216 5 (42) Corporate and Eliminations 5 0 1 0 400 Gross profit/Gross margin 1,427 36.6 1,654 41.4 (14) Research and development expenses (455) 11.7 (439) 11.0 4 Selling, general and administrative expenses (475) 12.2 (449) 11.2 6 Operating income 455 736 (38) Income from continuing operations 432 744 (42) Income (loss) from discontinued operations, net of income taxes (5) 375 (101) Net income 427 1,119 (62) Segment Result/Segment Result Margin 527 13.5 786 19.7 (33) Property, plant and equipment 1,731 1,343 29 Total assets 5,898 5,873 0 Total equity 3,575 3,355 7 Net cash provided by operating activities from continuing operations 667 983 (32) Net cash used in investing activities from continuing operations (1,013) (2,499) (59) Net cash used in financing activities from continuing operations (199) (352) (43) Free cash flow ² (219) 106 (307) Depreciation and amortization 428 364 18 Purchases of property, plant and equipment and intangible assets and other assets (890) (887) 0 Gross cash position ³ 2,235 2,692 (17) Net cash position ⁴ 1,940 2,387 (19) Basic earnings per share in € 0.40 1.03 (61) Diluted earnings per share in € 0.39 0.98 (60) Dividend per share in € ⁵ 0.12 0.12 0 Equity ratio 60.6 % 57.1 % 6 Return on equity ⁶ 11.9 % 33.4 % (64) Return on assets ⁷ 7.2 % 19.1 % (62) Inventory intensity ⁸ 9.6 % 8.6 % 12 Debt-to-equity ratio ⁹ 8.3 % 9.1 % (9) Debt-to-total-capital ratio ¹⁰ 5.0 % 5.2 % (4) Return on Capital Employed (RoCE) ¹¹ 22.3 % 62.1 % (64) Employees Infineon as of September 30 26,658 25,720 4 1 Colums may not add due to rounding. 2 Free cash flow = Cash flow from operating activities from continuing operations and cash outflow from investing activities from continuing operations, excluding purchases or sales of financial investments. 3 Gross cash position = cash and cash equivalents and financial investments. 4 Net cash position = Gross cash position less short- and long-term debt. 5 A dividend per share of €0.12 for the 2012 fiscal year will be proposed to the Annual General Meeting on February 28, 2013. 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) = NOPAT (Net Operating Profit After Tax) divided by capital employed. ENERGY EFFICIENCY MOBILITY SECURITY Many of our products play a key role in customers’ applications. Our objective is to use our profound understanding of systems and applications to deliver a genuine competitive advantage to our customers. Differentiation by the most advanced manufacturing technologies. 2 INFINEON TECHNOLOGIES ANNUAL REPORT 2012 CONTENT 4 MANAGEMENT BOARD AND SUPERVISORY BOARD 4 Report of the Supervisory Board to the Annual General Meeting 12 The Management Board in the 2012 fi scal year 14 Letter to Shareholders 18 Interview with Dr. Reinhard Ploss and Peter Bauer GROUP MANAGEMENT 22 REPORT 22 THE INFINEON GROUP 24 Infi neon 2012 26 Strategy and fi nance – review and outlook 36 The segments 78 Research and development 85 Manufacturing 88 R&D and manufacturing sites 90 The Infi neon share 94 Non-fi nancial performance indicators 114 Infi neon worldwide 116 OUR 2012 FISCAL YEAR 118 Developments in the global economy and within the semiconductor industry in the 2012 fi scal year 120 Internal Management System 128 Review of results of operations 136 Segment performance 142 Review of fi nancial condition 144 Review of liquidity 147 Treasury and capital requirements 151 Overall statement of the Management Board with respect to our fi nancial condition as of the date of this report 152 Infi neon Technologies AG 154 Signifi cant events after the end of the reporting period 155 Report on expected developments, together with associated material risks and opportunities 176 Information pursuant to section 289, paragraph 4, and section 315, paragraph 4, of the German Commercial Code 186 Corporate Governance 195 Compensation Report 209 Forward-looking statements INFINEON TECHNOLOGIES GESCHÄFTSBERICHT 2012 3 CONTENT CONSOLIDATED FINANCIAL STATEMENTS 210 212 Consolidated Statement of Operations 213 Consolidated Statement of Comprehensive Income 214 Consolidated Statement of Financial Position 216 Consolidated Statement of Cash Flows 218 Consolidated Statement of Changes in Equity 220 Notes to the Consolidated Financial Statements 294 FURTHER INFORMATION 294 Responsibility statement by the Management Board 295 Auditor’s Report 296 Financial data 2009 – 2012 298 Financial glossary 300 Technology glossary 305 Financial calendar 305 Imprint 4 INFINEON TECHNOLOGIES ANNUAL REPORT 2012 MANAGEMENT