First Quarter FY 2014 Quarterly Update. Infineon Technologies AG Investor Relations

Transcription

1 First Quarter FY 2014 Quarterly Update Infineon Technologies AG Investor Relations

2 Table of Contents Infineon at a Glance Growth Drivers 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. Page 2

3 Revenue Split by Division Q1 FY 2014 revenue: EUR 984m ATV 452m CCS 108m PMM 238m IPC 179m OOS+C&E * 7m * Other Operating Segments; Corporate and Eliminations. Page 3

4 Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS EMS partners Distribution partners Page 4

5 Infineon Holds Top Positions in All Major Product Categories Automotive semiconductors total market in 2012: $23.9bn Power semiconductors total market in 2012: $15.0bn Smart card ICs total market in 2012: $2.24bn Renesas 14.2% Infineon 11.8% Infineon 24.1% Infineon 9.1% Toshiba 7.0% NXP 23.8% STMicro 7.9% Mitsubishi 6.9% Samsung 21.5% Freescale 7.0% STMicro 5.6% STMicro 17.1% NXP 6.3% Fairchild 5.6% SHHIC 6.3% Automotive semiconductors incl. semiconductor sensors. Source: Strategy Analytics, April Discrete power semiconductors and power modules. Source: IHS, December Microcontroller-based smart card ICs. Source: IHS, September Page 5

6 Table of Contents Infineon at a Glance Growth Drivers Results and Outlook Page 6

7 Growth in Car Production and Content-per- Car Continues Unabated Global car production (cars 6t) Semiconductor value per car [units m] CAGR (13-17) = 4.0% [USD] World CAGR +1.6% +3.4% Brazil China North America CAGR +2.3% CAGR +4.4% CAGR +2.4% Europe CAGR +2.9% Europe North America China APAC ex China Japan RoW Japan CAGR +2.0% Source: IHS, Annual Light Vehicle Production , January Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast ", incl. semiconductor sensors, January Page 7

8 EV/HEV Powertrain Contains $300 More Semi Content-per-Car vs Conventional Car [units k] EV/HEV car production CAGR (13-17) = 32.1% [USD m] EV/HEV powertrain semi market CAGR (13-17) = 25.1% Mild hybrid Plug-in hybrid Full hybrid Pure EV Mild hybrid Plug-in hybrid Full hybrid Pure EV Source: Strategy Analytics, Hybrid & Electric Vehicle Systems Demand Forecast 2007 to 2020, November Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast ", January Page 8

9 IGBTs: Double-Digit Growth For Modules; Discretes to Resume Growth After 2013 Dip Market development for discrete IGBTs and IGBT modules [USD m] CAGR (12-16) = 5.9% CAGR (12-16) = 11.4% IGBT Modules Discrete IGBTs Source: IHS, The World Market for Power Semiconductor Discretes and Modules, December Page 9

10 Infineon s addressable content per phone Higher Functionality in Mobile Devices Requires Additional Infineon Components Feature phone Smartphones MOSFETs and power management ICs Silicon MEMS microphones TVS diodes RF switches Low-noise amplifiers (LNA) Up to $2 High-density charger Smart high-density charger 2-3 microphones* 1-2 microphones* 2 microphones* ESD protection ESD protection 1 microphone ESD protection ESD protection 8-12 RF switch ports RF switch ports RF switch ports 2-4 RF switch ports 1 LNA 2-3 LNAs 3-10 LNAs GSM WCDMA * Does not include headsets, which typically require an additional microphone. LTE LTE advanced Page 10

11 Expected Growth Broadly In Line With Historical Averages ATV IPC PMM CCS Courtesy: BMW AG Courtesy: Bosch Rexroth ~7% p.a. >10% p.a. >10% p.a. ~5% p.a. Infineon: 8% p.a. Sources: IHS, Strategy Analytics, ABI Research, Infineon. Page 11

12 Table of Contents Infineon at a Glance Growth Drivers Results and Outlook Page 12

13 Profitability Better Than Expected in Q1 FY14 Revenue and Segment Result [EUR m] +16% FY 2013 revenue split by product category % 7% 11% 14% 12% Q1 FY13 Q2 Q3 Q4 Q1 FY14 Power RF embed. Control others Revenue Segment Result Segment Result Margin Page 13

14 ATV, IPC and PMM Recorded High Year-on- Year Growth ATV IPC PMM CCS [EUR m] +20% [EUR m] [EUR m] [EUR m] % 9% 11% 13% 12% 20 Q1 FY Q2 Q3 Q4 Q1 FY Q1 FY13 +30% Q2 Q3 Q4 Q1 FY14 Q1 FY13 +7% 10% 12% 17% 18% 12% -4% -2% 8% 17% 15% 7% 9% Q2 Q3 Q4 Q1 FY14 Q1 FY13 +0% 8% 9% 6% Q2 Q3 Q4 Q1 FY14 Revenue Segment Result Segment Result Margin Page 14

15 Guidance for Q2 FY14 and FY 2014 Outlook Q2 FY14 (compared to Q1 FY14) Outlook FY 2014 (compared to FY 2013) Revenue Mid single-digit percentage increase. Increase between 7% and 11%. Segment Result Margin Between 10% and 13%. Between 11% and 14%. Investments in FY 2014 About 650m. D&A in FY m or slightly above. Page 15

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17 Significant Year-on-Year Improvement in Financial Performance [EUR m] Q1 FY13 Q4 FY13 Q1 FY14 Revenue 851 1, Segment Result SR Margin 5.2% 14.1% 11.8% [EUR m] Net Income * Investment FCF from cont. operations Q4 FY13 Revenue Q1 FY14 Segment Result Gross Cash 2,081 2,286 2,279 Net Cash 1,768 1,983 2,048 * Net Income includes "income/loss from discontinued operations, net of income taxes" in Q1 FY13 EUR -7m, in Q4 FY13 EUR 3m and in Q1 FY14 EUR 2m. Page 17

18 Opex-to-Sales-Ratio Well Within Target Range [EUR m] S and G&A 1) R&D 2) % 14% 80 13% 60 12% % 0 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q1 FY13 Q2 Q3 Q4 Q1 FY14 10% General & Administration Selling R&D % of sales 1) Target range for SG&A: Low teens percentage of sales. 2) Target range for R&D: Low to mid teens percentage of sales. Page 18

19 Inventories Up due to High Productivity, DSO and DPO in Line With Our Targets Working capital * Inventories [EUR m] Q1 FY13 Q2 Q3 Q4 Q1 FY [EUR m] Q1 FY13 Q2 Q3 Q4 Q1 FY14 Inventories DOI* [days] Trade receivables Trade payables [EUR m] Q1 FY13 Q2 Q3 Q4 Q1 FY14 Trade receivables DSO* [days] [EUR m] Q1 FY13 Q2 Q3 Q4 Q1 FY14 Trade payables DPO* [days] * For definition please see page 24. Page 19

20 Future Investments Expected to Be About 15% of Sales Investments * D&A [EUR m] % % ~ % % ~500 20% 11.9% 10% FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 0% Q1 Fiscal Year Guidance 5Y-avg % of sales % of FY14 midpoint revenue guidance * For definition please see page 24. Page 20

21 Gross Cash Stable; Net Cash Increased Due to Conversion of Convertible Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash * Q1 FY13 Q2 Q3 Q4 Q1 FY14 * Consists of convertible bond (nominal value EUR 39m; book value EUR 38m). Increase in gross cash offset by repurchase of convertible bonds for EUR 35m. Net cash increased due to conversion of convertible bonds with nominal value of EUR 64m. Convertible bond: early redemption on 7 February Page 21

22 Total Gross Capital Returns of EUR 722m Between FY 2011 and Q1 FY14 Total gross capital returns history [EUR m] New EUR 300m capital return program started in November 2013 and will last until September FY11 FY12 FY13 Q1 FY14 convertible bond buyback share buyback (via put options) dividends Page 22

23 Target: 'RoCE above WACC' over the cycle RoCE* history 30% 20% 10% 0% FY12: 22% 27% 25% 20% 27% FY13: 14% WACC: low teens % 27% 16% 17% 5% 7% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Capital Employed* history 2,500 2,000 1,500 1, [EUR m] 2,239 2,274 2,216 2,035 2,159 2,194 1,629 1,760 1,889 Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Q1 FY14 * For definition please see page 24. Page 23

24 Notes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Capital Employed = 'Total assets' 'Cash and cash equivalents' 'Financial investments' 'Assets classified as held for sale' ('Total Current liabilities' 'Short-term debt and current maturities of long-term debt' 'Liabilities classified as held for sale') Please note: All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table. RoCE = NOPAT / Capital Employed = ('Income from continuing operations' 'financial income' 'financial expense') / Capital Employed Working Capital = ('Total current assets' 'Cash and cash equivalents' 'Financial investment' 'Assets classified as held for sale') ('Total current liabilities' 'Short term debt and current maturities of long-term debt' 'Liabilities classified as held for sale') DOI (inventory days; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') * 90 DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90 DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90 Page 24

25 Infineon is a Long-standing Member of Europe's Leading Sustainability Indices Infineon s most recent achievements New! January 2014: Infineon is listed in the Sustainability Yearbook for the fourth consecutive year and according to RobecoSAM, listed among the top 15% most sustainable companies worldwide. September 2013: Infineon was listed in the Dow Jones Sustainability Index for the fourth consecutive year. October 2013: oekom research has classified Infineon as Prime, which serves as an indicator of the quality of Infineon s performance in the social and environmental areas. Infineon was added to the FTSE4Good Index Series in March 2013: Infineon was confirmed as member of this index for the 12 th consecutive year. Page 25

26 Financial Calendar Date Location Event 13 Feb 2014 Munich Annual General Meeting 29 Apr 2014* Q2 FY14 Results 11 Jun 2014 Berlin Dt. Bank German, Swiss & Austrian Conference 17 Jun 2014 London JPMorgan Technology CEO Conference 30 Jul 2014* Q3 FY13 Results 09 Sep 2014 Frankfurt Commerzbank Sector Week 18 Nov 2014* Q4 FY14 and FY 2014 Results Nov 2014 Barcelona Morgan Stanley TMT Conference Dec 2014 Scottsdale, AZ Credit Suisse TMT Conference * provisional Page 26

27 Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations Joachim Binder Senior Director Investor Relations Holger Schmidt Manager Investor Relations Bernard Wang Senior Manager Investor Relations Copyright Infineon Technologies All rights reserved. Page 27 Page 27