Investor and Analyst Call

Transcription

1 Investor and Analyst Call 11 June 2013 Dr. Stefan Hofschen Division President Chip Card & Security (CCS)

2 Table of Contents Infineon Chip Card & Security Overview Differentiation and Technology Growth Drivers and Focus Segments Summary 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 Q1 FY10 Q2 Q3 Q4 Q1 FY11 Q2 Q3 Q4 Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Chip Card & Security (CCS) at a Glance Revenue and Segment Result development Revenue by region * [EUR m] % 10% 13% 13% 14% 5% 6% 1% 3% % 15% 14% 9% 6% Americas APAC EMEA Japan CCS revenue CCS SR SR margin Top customers * fulfillment, FY 2012 Top distributors Page 3

4 Chip Card & Security Revenue by Application Revenue split by Application in FY 2012: EUR 457m Authentication Digital Tachograph Pay TV Trusted Computing (TPM) Mobile Com. (SIM) Mobile Payment (NFC) Embedded SE (NFC) Smart Metering Embedded Security Public Telephone National eid Government Identification Mobile Communications & Payment M2M Cellular ehealth / esocial card edriving License USB Tokens epassport Access Control Public Transport Smart card Payment Page 4

5 Infineon is Market Leader for Smart Card ICs in CY 2012 According to ABI Research Smart Card IC market share Smart Card IC market market shares by revenue TAM: $2,370m #2 Mobile Communic. Based on volume (TAM: 5.5bn pcs in CY12) Comp. B Infineon Comp. F 5% 20% 53% Comp. C 10.9% Comp. B 21.3% Comp. A 25.1% Infineon 25.4% #1 #2 Payment Based on volume (TAM: 1.4bn pcs in CY12) Government ID Based on volume (TAM: 493m pcs in CY12) Infineon Comp. A Comp. C Comp. A Infineon Comp. C 13% 15% 28% 32% 31% 51% Source: ABI Research, Smart Card & Secure ICs, 29 May #2 NFC Based on volume (TAM: 143m pcs in CY12) Comp. A Infineon Comp. C 19% 18% 57% Page 5

6 Table of Contents Infineon Chip Card & Security Overview Differentiation and Technology Growth Drivers and Focus Segments Summary Page 6

7 Innovations Based On Core Competencies Create Convincing Competitive Advantage Core competence Innovation Competitive advantages Security Digital security Protects against various attacks Reduces total cost of ownership Contactless Performance Mechanical robustness and long lifetime Simplifies card design and manufacturing Embedded Control Flexibility across the value chain Highest certified Flash in the market Outstanding reliability Page 7

8 Shrink and Outsourcing Improve Cost Competitiveness and Lower Capital Intensity Technology and foundry roadmap technology node 130nm In-house Foundry 90nm 200 mm, Dresden 300 mm, TSMC 65nm 200 mm, Dresden 40nm 300 mm, TSMC 300 mm, Global Foundries time Foundry share for FY [in volume]: ~10% ~45% ~65% Page 8

9 Table of Contents Infineon Chip Card & Security Overview Differentiation and Technology Growth Drivers and Focus Segments Summary Page 9

10 Mobile Communications Growth to Continue with Emerging Applications SIM market development [unit ICs m] 7000 CAGR (12-16) = 4.7% Comments CCS focuses on mid- and high-end SIM requiring Flash and cost-competitive manufacturing technologies. Emerging high-end applications such as NFC SIMs and machine-to-machine provide growth opportunities Machine-to-Machine Mobile Security (NFC SIM) SIM Source: IHS Inc. (IMS Research), Smart Card and IC Database World 1Q13 Update and Near Field Communications World 2013, March Page 10

11 Payment WW Migrating to Chip-based Solutions with Strong Dual I/F Penetration Payment market development [unit ICs m] 3500 CAGR (12-16) = 22.4% Comments Migration from magnetic stripe to EMV: Latin America, China, USA. Penetration in developing countries. Dual Interface market growth driven by convenience, mobile payment (infrastructure deployed) and convergence (e.g. transport) Contact-based Dual Interface Source: IHS Inc. (IMS Research), The World Market for Payment and Banking Cards 2012 Edition, July Page 11

12 Governments WW Adopt New Electronic Schemes for Nat. eids and ehealthcare Gov. ID market development [unit ICs m] 1000 CAGR (12-16) = 16.9% Comments Further national eid and ehealthcare schemes to roll out: Brazil, India, Japan, Russia, Turkey. Multi-application cards and biometrics will require very-high bit rates for fast contactless transaction times. Digital security: Integrity Guard Other (e.g. edriving License) ehealthcare National eid epassport Source: IHS Inc. (IMS Research), Electronic Government & Healthcare ID World 2012, December Page 12

13 Embedded Security Know-how Positions Infineon as Leader in New Markets Trusted Computing (TPM) Mobile Security (NFC) Authentication Critical Infrastructure Comments Cloud Computing, Mobile Payment and Connectivity drive the need for embedded security in the consumer market. New applications for security emerging: Smart Grid, Industrial Control, IT infrastructure, Vehicle-to-Vehicle communication etc. Infineon has strong embedded security know-how, with >10 years experience in TPM. Page 13

14 Infineon Chip Card & Security is Well Positioned for Continued Growth Mobile Communication Payment Government Identification Embedded Security Expected growth [in pieces] ~5%* ~20%* ~15%* >20% IFX Position** #2 #1 #2 not available CCS expects average revenue growth of 6-9% p.a. * Source: IMS Research, ** Source: ABI Researcj, May Page 14

15 Table of Contents Infineon Chip Card & Security Overview Differentiation and Technology Growth drivers and focus segments Summary Page 15

16 Summary Infineon is leading the Chip Card & Security market. We have a track record of sustained profitability. Competitive advantage based on technology leadership. Increasing foundry share with technologies at 90nm and below will reduce capital intensity. We grow in key markets in all regions. We are well positioned in emerging security markets. Page 16

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