Third Quarter FY 2014 Quarterly Update

Transcription

Third Quarter FY 2014
Quarterly Update
Infineon Technologies AG
Investor Relations
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.
2014-07-30
Copyright © Infineon Technologies AG 2014. All rights reserved.
Page 2
Average Cycle Financial Targets
Going forward
Historical
CAGR(99-13) = ~8%
FY99
FY02
FY04
FY06
Revenue Growth:
FY08
FY10
FY12 FY14e
20%
Segment Result Margin:
14.4%
15%
10%
5%
0%
FY10
FY11
FY12
FY13
25%
20%
15%
10%
5%
0%
2014-07-30
FY14e
FY10
FY11
FY12
FY13
~15%
Investment-to-Sales:
15.1%
FY09
~8%
FY14e
~13%
Page 3
Revenue Split by Division
Q3 FY 2014 revenue: EUR 1,110m
IPC
€200m
ATV
€510m
Courtesy: BMW
CCS
€123m
PMM
€271m
OOS+C&E*
€6m
* Other Operating Segments;
Corporate and Eliminations.
2014-07-30
Page 4
Tight Customer Relationships are Based on
System Know-how and App Understanding
ATV
EMS partners
2014-07-30
IPC
PMM
CCS
Distribution partners
Page 5
Infineon Holds Top Positions in All Major
Product Categories
Automotive
semiconductors
Power
semiconductors
total market in 2013:
$25.1bn
$15.0bn
Renesas
13.3%
Infineon
STMicro
9.6%
7.9%
Infineon
Toshiba
Mitsubishi
Smart card ICs
$2.48bn
11.8%
NXP
7.0%
Infineon
NXP
7.4%
6.5%
21.7%
6.9%
STMicro
Freescale
32.3%
STMicro
5.6%
Fairchild
5.6%
Samsung
17.9%
16.5%
Automotive semiconductors incl.
semiconductor sensors.
Discrete power semiconductors
and power modules.
Microcontroller-based smart
card ICs.
Source: Strategy Analytics,
April 2014.
Source: IHS, December 2013.
Source: IHS, July 2014.
2014-07-30
Page 6
Table of Contents
 Growth Drivers
2014-07-30
Page 7
Growth in Car Production and Content-perCar Continues Unabated
Global car production (cars ≤ 6t)
[units m]
[USD]
CAGR(13-17) = 3.6%
6.0
9.0
87.8
5.8
9.1
90.9
6.4
8.3
94.0
7.0
7.8
7.9
14.8
14.2
12.7
12.7
21.3
23.2
25.0
16.2
17.0
17.2
17.5
19.5
20.0
20.5
2013
2014
2015
Europe
APAC ex China
97.6
6.6
13.4
28.1
26.7
Brazil
China
221
197
CAGR
+2.9%
269
217
CAGR
+5.5%
18.1
North
America
471
424
CAGR
+2.7%
21.0
21.8
Europe
469
413
CAGR
+3.2%
2016
2017
Japan
North America
Japan
China
RoW
Source: IHS, “Annual Light Vehicle Production and Sales 2007 –
2019”, July 2014 update.
2014-07-30
CAGR
+2.5%
357
324
World
+3.7%
84.7
Semiconductor value per car
491
450
2017
CAGR
+2.2%
2013
Source: Strategy Analytics, "Automotive Semiconductor
Demand Forecast 2012 – 2021", incl. semiconductor
sensors, update July 2014.
Page 8
In 2013, Infineon Gained Market Share in
All Addressed Product Categories
2013 automotive semiconductor
market by product category ($25.1bn)
Power
26%
Processor
25%
 “Power” and “Sensors” were the fastest
growing product categories with 8% and
7% growth y-y, respectively.
 Infineon remained market leader in
“Power” with 21.3% market share.
Sensors
15%
 Strong product portfolio in pressure and
Hall sensors led to significant market
share gain in “Sensors” of 1.0%-point.
others*
34%
Source: Strategy Analytics, April 2014.
* “others” include: opto, small-signal discretes, logic ICs, nonpower analog, memory, and other.
Market growth y-y
Power
Processor
Sensors
2014-07-30
8%
Infineon’s position 2013
#1
#3
2%
7%
#2
21.3%
8.7%
11.4%
Infineon’s change y-y
+0.3%-pt
+0.7%-pt
+1.0%-pt
Page 9
Infinon‘s Basic LED Driver Family Powers
Rear LED Lighting of Audi S1
 Rear lighting solution developed as
part of our long-running partnership
with Audi.
 Infineon‘s Basic LED drivers already
shipping in volume and are
expected to ramp in the coming
quarters as OEMs increasingly use
LEDs for exterior lighting.
Courtesy: Audi
Advantages of
Infineon’s Basic LED driver
 Reduces component count and
system complexity.
 Enables advanced diagnostic
functionality.
Courtesy: Audi
2014-07-30
 Reduces power consumption and
thus CO2.
Page 10
Wide Adoption of Premium Features, ADAS
and CO2 Reduction Drive ATV‘s Growth
Vehicle
production
Semiconductor content per car
Comfort, Premium
Courtesy: Bosch
~4% p.a.
ADAS
Courtesy: Bosch
CO2 reduction
Courtesy: BMW
2 – 4% p.a.
ATV:
~8%* p.a.
* Targeted growth rate of ~8% reflects ATV’s expectation that its strong competitive positioning will lead to market share gains.
Sources:
ADAS:
2014-05-13
IHS, Strategy Analytics, Infineon.
Advanced Driver Assistance Systems
Page 11
Drives, Home Appliances and Others Show
Strongest Growth Rates
Drives
Renewables
Traction
Home
Appliances
Others
~10% p.a.
> 5% p.a.
~5% p.a.
> 10% p.a.
> 10% p.a.
IPC:
2014-07-30
~10% p.a.
Page 12
Infineon is Samsung‘s Partner of Choice for
RF Components in its Flagship Smartphone
Infineon’s RF components in Samsung Galaxy S5

Infineon supports Samsung‘s flagship smartphone model
Galaxy S5 with up to eight RF components:

multiple SiGe low-noise amplifiers (LNAs) for boosting LTE data
rates

SiGe LNA for Global Navigation Satellite Systems, e.g. GPS

multiple RF CMOS switches
Courtesy: Samsung
Key advantages of Infineon’s RF components
 High-density chip design integrates both low-noise amplifiers and
associated discretes.
 LTE LNAs are specially designed to fully exploit the speed of the LTE
communication standard.
 New product generations with higher integration and smaller
footprint are introduced in next to no time.
2014-07-30
Page 13
PMM Aims to Outgrow Its Core Markets
Power Management
Computing
Lighting
Charger
TAM:
Mobile Communications
Mobile devices
> 7% p.a.
PMM:
TAM:
Cell. infrastructure
> 7% p.a.
~10%* p.a.
* Targeted growth rate of ~10% reflects PMM’s expectation that its strong competitive positioning will lead to market share gains.
Sources: IHS, ABI Research, Infineon.
2014-05-13
Page 14
Strong Growth in Payment Business and
also in Multiple Implementations of NFC
Strong momentum for
Infineon’s payment business
Infineon’s main NFC offerings on the rise
embedded SE
in SIM card
 Successful introduction and ramp of SLE
77-based products in 90nm technology.
 Payment business grew by ~40% yearon-year in Q3 FY14.
 Payment business remains well
positioned for further growth driven by

ongoing and accelerated roll out of
China UnionPay chip cards, mainly
dual-interface cards;

conversion of US magnetic stripebased cards to EMV* cards,
underway in H2 2014 / early 2015;

general trend towards dual-interface
cards (e.g. “girogo” in Germany).
* EMV = Europay MasterCard Visa, a global standard for
interoperability of chip-based cards and chip card
capable point-of-sale terminals and ATMs.
2014-07-30
 Design wins at
various smartphone
manufacturers for
embedded Secure
Element using
32-bit security
controller.
 Strong presence in
NFC SIM cards,
especially in planned China’s LTE
rollout combined
with mobile payment/transport.
Page 15
Growth in CCS Driven by All Application
Segments
High-end Mobile
Communication
Payment
Government
Identification
Embedded
Security
Expected growth [pieces]
~30%
CCS:
~15%
~15%
~20%
6-9% p.a.
Sources: IHS, ABI Research, Infineon.
2014-07-30
Page 16
Expected Growth Broadly In Line With
Historical Averages
ATV
Courtesy: BMW
~8% p.a.
Infineon:
IPC
PMM
CCS
~10% p.a.
6-9% p.a.
Courtesy: Bosch Rexroth
~10% p.a.
~8% p.a.
Sources: IHS, Strategy Analytics, ABI Research, Infineon.
2014-07-30
Page 17
Table of Contents
 Growth Drivers
2014-07-30
Page 18
Q3 FY14 Is Fifth Consecutive Quarter
of Year-On-Year Growth
Revenue and Segment Result
[EUR m]
FY 2013 revenue split
by product category
+9%
1.022
11%
1.053
1.051
1.110
984
14%
12%
14%
15%
117
148
116
146
170
Q3 FY13
Q4
Q1 FY14
Q2
Q3 FY14
Revenue
2014-07-30
Segment Result
Power
embed. Control
RF
others
Segment Result Margin
Page 19
Strong Growth in ATV
Margins in IPC Fully Recovered
ATV
IPC
[EUR m]
PMM
[EUR m]
CCS
[EUR m]
[EUR m]
+11%
459 455 452
484
510
+2%
+16%
173
197
266 271
179 185
238
252
271
+3%
200
17% 18%
11% 13% 12% 14% 14%
12% 15%
17%
119 129 108 121 123
8% 17% 15% 18% 20%
52
57
55
66
70
Q3 Q4 Q1 Q2 Q3
FY13
FY14
Revenue
2014-07-30
13
33
27
33
40
Q3 Q4 Q1 Q2 Q3
FY13
FY14
Segment Result
8%
46
49
29
37
46
Q3 Q4 Q1 Q2 Q3
FY13
FY14
10
9%
12
6%
6
7%
8%
8
10
Q3 Q4 Q1 Q2 Q3
FY13
FY14
Segment Result Margin
Page 20
Guidance for Q4 FY14 and FY 2014
Outlook Q4 FY14
Outlook FY 2014
(compared to Q3 FY14)
(compared to FY 2013)
Revenue
Increase between
3% and 7%.
Slightly above 11%.
Segment
Result
Margin
Between
15% and 17%.
Slightly above 14%.
(previously: “at least at
high end of 7-11% range”)
(previously: “at least at
high end of 11-14% range”)
Investments in FY 2014
About €650m.
D&A in FY 2014
€500m or slightly above.
2014-07-30
Page 21
Investment-to-Sales Ratio Will Drop From
~15% in the Past to ~13% in the Future
Investments and Investment-to-Sales Ratio
[EUR m]
1000
 catch-up after downturn
 pre-investments 300mm
 growth for FY11 – FY14
 lower capital intensity 300mm
versus 200mm
 increasing FE outsourcing share
 increasing BE outsourcing share
 productivity improvement
program implemented
750
500
20%
15.1%
13.0%
250
0
115
325
887
890
378
650
FY09
FY10
FY11
FY12
FY13
FY14
Fiscal Year
2014-07-30
5Y-avg % of sales
10%
future
Guidance % of sales
Page 22
Dividend Payments Will Rise by
4 to 6 €-Cents as Early as FY14
Dividend payments
[€-Cents]
16 - 18
12
12
12
FY11
FY12
FY13
 Higher sustainable
level of Free Cash
Flow frees up more
cash for increased
dividends.
10
FY10
2014-07-30
 Investment-to-sales
ratio reduced from
~15% to ~13%.
FY14e
Page 23
Opex-to-Sales-Ratio Well Within
Target Range
S, G&A1)
R&D2)
[EUR m]
139
140
120
115
115
114
121
140
133
136
141
15%
122
14%
100
13%
80
60
12%
40
11%
20
0
10%
Q3
FY13
Q4
Q1
FY14
Q2
General & Administration
Q3
Q3
FY13
Selling
Q4
R&D
Q1
FY14
Q2
Q3
% 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“.
2014-07-30
Page 25
DOI, DSO and DPO in Line With Our
Targets
Working capital*
[EUR m]
Inventories
[EUR m]
Q3FY13
Q4
Q1 FY14
Q2
Q3
600
0
-50
-16
-25
-100
20
0
529
553
100
80
60
40
200
20
0
0
Q4
Q1 FY14
Q2
Q1 FY14
Trade receivables
Q2
Q3
DOI*
Trade payables
400
Q3 FY13
Q4
Inventories
452
100
40
Q3 FY13
[days]
518
[days]
60
0
[EUR m]
509
680
80
Trade receivables
600
674
400
-123
-150
654
200
-75
-92
609
589
Q3
DSO*
[days]
[EUR m]
600
569
455
515
560
531
100
80
60
400
40
200
20
0
0
Q3 FY13
Q4
Q1 FY14
Trade payables
Q2
Q3
DPO*
* For definition please see page 31.
2014-07-30
Page 26
Investments Peaked in FY12,
D&A Still Increasing
Investments*
D&A
[EUR m]
1000
30%
887
890
800
~650
600
15.1%
15.1%
378
400
200
20%
325
453
11.9% 364
428
466
~500
336
144
131
154
11.6%
10%
126
115
129
120
0
0%
FY09 FY10 FY11 FY12 FY13 FY14e
Q1
Q2
Q3
Fiscal Year
Guidance
FY09 FY10 FY11 FY12 FY13 FY14e
5Y-avg % of sales
% of FY14 revenue guidance
2014-07-30
Page 27
Gross Cash and Net Cash Have Increased
Liquidity Development
Q1
FY14
Q2
2073
0*
190
0
188
2198
2279
1983
1832
2137
2286
Q4
Net Cash
38
193
195
200
Equity-linked
2263
108
105
Q3
FY13
Debt
2010
Gross Cash
2048
[EUR m]
Q3
* The remaining outstanding convertible bonds were converted by the end of January 2014.
 Increase in Gross Cash and Net Cash due to higher cash from
operating activities while investments were slightly lower.
2014-07-30
Page 28
Total Gross Capital Returns of EUR 851m
Between FY 2011 and FY 2014
Total gross capital returns history
 In November 2013, a new
EUR 300m capital returns
program with a maturity
until September 2015 was
started.
[EUR m]
687
350
300
250
308
 Per 30 June 2014, put
options for buyback of
10.5m shares outstanding.
109
212
200
26
150
100
164
129
129
38
35
FY13
9M FY14
130
173
50
20
62
0
FY11
FY12
convertible bond buyback
2014-07-30
167
share buyback (via put options)
dividends
Page 29
Target: 'RoCE Above WACC' Over the Cycle
RoCE* history
WACC: low teens %
30%
FY12: 22%
20%
27%
25%
20%
27%
27%
FY13: 14%
10%
16%
0%
Q1 FY12
Q2
Q3
Q4
5%
7%
Q1 FY13
Q2
Q3
21%
24%
17%
Q4
Q1 FY14
Q2
Q3
Capital Employed* history
2,500 [EUR m]
2,000
1,629
1,760
1,889
Q2
Q3
2,035
2,239
2,274
2,216
2,159
2,194
2,232
2,327
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
1,500
1,000
500
0 Q1 FY12
Q4
2014-07-30
Page 30
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')
RoCE =
NOPAT / Capital Employed =
('Income from continuing operations'
– 'financial income'
– 'financial expense')
/ Capital Employed
DOI (days of inventory; quarter-to-date) =
('Net Inventories' / 'Cost of goods sold') * 90
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.
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')
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
2014-07-30
Page 31
Infineon is a Long-standing Member of
Europe's Leading Sustainability Indices
Infineon’s most recent achievements
 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.
2014-07-30
 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 2001 and has been
confirmed as a member
since then.
Page 32
Financial Calendar
Date
Location
Event
Conference Call by Jochen Hanebeck, Division
President Automotive
17 Sep 2014*
23 Sep 2014
Munich
Baader Investment Conference
24 Sep 2014
Munich
Berenberg Bank and Goldman Sachs German
Corporate Conference
19 – 20 Nov 2014
Barcelona
Morgan Stanley TMT Conference
27 Nov 2014*
02 – 03 Dec 2014
Q4 FY14 and FY 2014 Results
Scottsdale, AZ
29 Jan 2015*
12 Feb 2015
Credit Suisse TMT Conference
Q1 FY15 Results
Munich
Annual General Meeting
* preliminary
2014-07-30
Page 33
Institutional Investor Relations Contact
Ulrich Pelzer
Corporate Vice President
Finance, Treasury &
Investor Relations
 +49 89 234-26153
 [email protected]
Joachim Binder
Senior Director
Investor Relations
 +49 89 234-25649
Holger Schmidt
Manager
Investor Relations
2014-07-30
 +49 89 234-22332
Page 34

Third Quarter FY 2014 Quarterly Update

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